[Federal Register Volume 90, Number 227 (Friday, November 28, 2025)]
[Rules and Regulations]
[Pages 54523-54544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-21482]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 227 / Friday, November 28, 2025 /
Rules and Regulations
[[Page 54523]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 400, 407, and 457
[Docket ID FCIC-25-0068]
RIN 0563-AC89
Expanding Access to Risk Protection (EARP)
AGENCY: Federal Crop Insurance Corporation, U.S. Department of
Agriculture (USDA).
ACTION: Final rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is amending its
regulations to implement changes required by the One Big Beautiful Bill
Act and to update, streamline, and clarify several crop insurance
policies. The changes include clarifying the harvest price methodology,
deregulating regionalized program dates and moving that information to
the Special Provisions, removing regulatory barriers to direct
marketing, incorporating quality adjustment and claims processes,
updating FCIC contact information used to request interpretations of
policy, and making plain language clarifications and corrections to
Subpart X--Interpretations of Statutory Provisions, Policy Provisions,
and Procedures; the Area Risk Protection Insurance, Basic Provisions;
the Common Crop Insurance Policy, Basic Provisions; and several Crop
Provisions. In addition, the changes include removing buy-up coverage
for prevented planting in the crop insurance program. The changes will
be effective for the 2026 and succeeding crop years for crops with a
contract change date on or after November 30, 2025. For all other
crops, the changes to the policies made in this rule are applicable for
the 2027 and succeeding crop years.
DATES:
Effective date: This final rule is effective November 30, 2025.
Comment Date: FCIC will accept comments on this rule until close of
business January 27, 2026. 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. You may
submit comments by going through the Federal eRulemaking Portal as
follows:
Federal eRulemaking Portal: Go to https://www.regulations.gov and search for Docket ID FCIC-25-0068. Follow the
instructions for submitting comments.
All comments received will be posted without change and will be
publicly available on https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Chandra Place; telephone: (816) 926-
3875; email: [email protected]. Individuals with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY mode))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Basic Provisions Changes: Area Risk Protection Insurance (ARPI)
and Common Crop Insurance Policy (CCIP)
A. One Big Beautiful Bill Act Implementation
B. Harvest Prices for Revenue Protection
C. Production Reporting When the AIP Is Changing
D. Reducing Administrative Burden Regarding Prevented Planting
E. Written Agreement Deadline Clarification
F. Unit Eligibility Clarification
G. Definitions
H. Duplicative Provisions
III. Dispute Resolution Changes: Subpart X--Interpretations of
Statutory Provisions, Policy Provisions, and Procedures; Area Risk
Protection Insurance (ARPI), Basic Provisions; and Common Crop
Insurance Policy (CCIP), Basic Provisions
IV. Crop Provisions Changes
A. Deregulating Dates
B. Direct Marketing
C. Cotton
D. Sugar Beets
E. Safflower
F. Fresh Market Tomatoes Guaranteed Production Plan
G. Green Pea
H. Fresh Market Tomato Dollar Plan
I. Fresh Market Pepper
J. Forage Seeding
K. Canola and Rapeseed
V. Clarifications and Corrections
VI. Removal of Buy-Up Coverage on Prevented Planting
VII. Regulatory Analyses
A. Notice and Comment and Effective Date
B. Executive Orders 12866, 13563, and 14192
C. Environmental Review
D. Executive Order 13175
E. Unfunded Mandates Reform Act
F. Paperwork Reduction Act Requirements
G. E-Government Act Compliance
I. 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. 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 risks
associated with catastrophic losses. 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 (CEPP), 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.
The Basic Provisions provide underlying policy terms and conditions
applicable to many insurable commodities. Specifically, the Area Risk
Protection Insurance (ARPI) Basic Provisions apply to policies with
area-based coverage, typically established at the county level, and the
Common Crop Insurance Policy (CCIP) Basic Provisions apply to policies
that provide individualized coverage. Where the terms and conditions
are the same, FCIC changes both the ARPI and CCIP Basic Provisions in
this rule. The Crop Provisions identify which Basic
[[Page 54524]]
Provisions are applicable and establish specific provisions of
insurance for each insurable commodity. The Special Provisions and
actuarial documents establish county-level provisions for each
insurable commodity. Administrative regulations published in 7 CFR
chapter IV apply to the entire Federal Crop Insurance Program. Subpart
X is the administrative regulation that provides a mechanism for
requesting interpretations of crop insurance policies and procedures.
FCIC is amending the following regulations:
Subpart X--Interpretations of Statutory Provisions, Policy
Provisions, and Procedures (7 CFR 400.765-768);
Area Risk Protection Insurance Regulations (7 CFR part
407);
Common Crop Insurance Regulations (7 CFR part 457);
Cotton crop insurance provisions (7 CFR 457.104);
Sugar beet crop insurance provisions (7 CFR 457.109);
Safflower crop insurance provisions (7 CFR 457.125);
Guaranteed production plan of fresh market tomato crop
insurance provisions (7 CFR 457.128);
Green pea crop insurance provisions (7 CFR 457.137);
Fresh market tomato (dollar plan) crop insurance
provisions (7 CFR 457.139);
Fresh market pepper crop insurance provisions (7 CFR
457.148);
Forage seeding crop insurance provisions (7 CFR 457.151);
and
Canola and rapeseed crop insurance provisions (7 CFR
457.161).
Definitions specific to Subpart X are located in 7 CFR 400.765,
definitions specific to the ARPI Basic Provisions and corresponding
Crop Provisions are located in 7 CFR 407.9, and definitions specific to
the CCIP Basic Provisions and corresponding Crop Provisions are located
in 7 CFR 457.8. Throughout this rule, the terms ``Crop Provisions,''
``Special Provisions,'' and ``policy'' are used as defined in the CCIP
Basic Provisions in 7 CFR 457.8.
The changes to crop insurance policies resulting from the
amendments in this rule are applicable for the 2026 and succeeding crop
years for crops with a contract change date on or after November 30,
2025. For all other crops, the changes to the crop insurance policies
resulting from the amendments in this rule are applicable for the 2027
and succeeding crop years.
II. Basic Provisions Changes: Area Risk Protection Insurance (ARPI) and
Common Crop Insurance Policy (CCIP)
The changes to the Basic Provisions are described below, with
important changes impacting both the ARPI and CCIP Basic Provisions
discussed first, followed by changes impacting only the CCIP Basic
Provisions, and clarifications and corrections last.
A. One Big Beautiful Bill Act Implementation
On July 4, 2025, President Trump signed into law H.R. 1 (Pub. L.
119-21), also known as the One Big Beautiful Bill Act (OBBBA). FCIC is
amending the Area Risk Protection Insurance Regulations (7 CFR 407) by
revising the ARPI Basic Provisions as shown in 7 CFR 407.9 and the
Common Crop Insurance Regulations (7 CFR part 457) by revising the CCIP
Basic Provisions as shown in 7 CFR 457.8, to implement changes to the
Federal Crop Insurance Act made by OBBBA. These changes to the Federal
Crop Insurance Act include expanding benefits for beginning farmers and
ranchers. The Risk Management Agency (RMA) is also implementing section
10501 (Beginning Farmer and Rancher Benefit) of OBBBA in Manager's
Bulletin MGR-25-006 with an amendment to the CCIP and ARPI Basic
Provisions.
For up to 10 crop years, beginning farmers or ranchers will receive
an additional 5 percentage point premium subsidy for the first two crop
years, an additional 3 percentage point premium subsidy the third crop
year, and an additional 1 percentage point premium subsidy the fourth
crop year. Thus, when considering the existing beginning farmer or
rancher benefits as well as the additional beginning farmer or rancher
benefits provided by OBBBA, beginning farmers or ranchers will be
eligible to receive a total additional premium subsidy of 15 percentage
points in the first two crop years, 13 percentage points in the third
crop year, 11 percentage points in the fourth crop year, and 10
percentage points in the fifth through tenth crop years, as opposed to
receiving a flat 10 percentage points of additional premium subsidy for
5 years under previous policy.
In this rule, FCIC is revising the definition of ``beginning farmer
or rancher'' in section 1 of the CCIP Basic Provisions and section 1 of
the ARPI Basic Provisions to increase the eligibility period of a
beginning farmer or rancher who has not actively operated and managed a
farm or ranch in any State, with an insurable interest in a crop or
livestock as an owner-operator, landlord, tenant, or sharecropper, from
5 crop years to 10 crop years. FCIC is also revising section 7(h) of
the ARPI Basic Provisions and 7(g) of the CCIP Basic Provisions to add
the descriptive heading, ``Additional premium subsidy''.
B. Harvest Prices for Revenue Protection
FCIC is amending the Area Risk Protection Insurance Regulations (7
CFR 407) by revising the ARPI Basic Provisions as shown in 7 CFR 407.9
and the Common Crop Insurance Regulations (7 CFR part 457) by revising
the CCIP Basic Provisions as shown in 7 CFR 457.8, to clarify that for
revenue protection coverage, the harvest price will be set equal to the
projected price when data are not available to follow the approved
methodology. Projected price and harvest price are defined in section 1
of the ARPI Basic Provisions and section 1 of the CCIP Basic
Provisions, and they are determined in accordance with the CEPP.
With revenue protection coverage, a policyholder is eligible for an
indemnity payment when there is a revenue loss, such as when the
harvest price is less than the projected price (minus the applicable
deductible). The projected price is typically established prior to the
growing season with data available before planting begins and the
harvest price is established during the harvest and delivery period.
The approved methodology and data sources for determining the projected
and harvest prices are included in the policy (specifically, in the
CEPP) provided to producers prior to their deadline for purchasing
insurance, so producers can make informed decisions about their
coverage. The policy previously specified that if the harvest price
cannot be calculated according to the CEPP, the harvest price ``will be
determined and announced by FCIC.'' This phrase did not provide
producers with advance notice about how the harvest price would be
determined if the price cannot be calculated following the approved
methodology.
In this rule, FCIC is establishing in section 12(d) of the ARPI
Basic Provisions and section 3(c)(5)(ii) of the CCIP Basic Provisions
that, if data are not available to follow the approved methodology, the
harvest price will be set equal to the projected price, essentially
removing revenue coverage, and the policyholder's premium will be
updated and refunded, as applicable, as if they had purchased yield
protection. With these changes, producers will have assurance that they
will receive the protection they pay for, even if data do not support
revenue coverage at the time of harvest.
[[Page 54525]]
C. Production Reporting When the AIP Is Changing
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising the CCIP Basic Provisions as shown in 7 CFR 457.8, in
section 3(f)(1)(ii) to add an exception so that policyholders who
transfer their policy to a new AIP for the upcoming year do not need to
provide end of year production reporting to the current (and soon-to-be
prior) AIP if they do not have a claim. This change provides procedural
relief made at the request of stakeholders. Previously, the policy
required the policyholder to report their current crop year's
production to their current AIP, even if they had transferred their
policy to a new AIP for the upcoming year. Concerns were raised that
once a policyholder initiates a transfer to a new AIP, both the
policyholder and current AIP would prefer to end the business
relationship and allow the new AIP to be responsible for administering
the production report. Undoing the requirement to continue to report to
the current AIP prevents against potential retribution by the Agent the
producer has severed ties with. This change to allow policyholders to
revert to reporting prior year production information to the new AIP
only and not requiring the new AIP to provide production information to
the ceding AIP was developed to address concerns and feedback from
AIPs, agents, and policyholders in multiple conferences, meetings, and
individual requests for relief. This is an added protection for the
producer participating in crop insurance. Production reporting for
claims purposes and any audit is unchanged and will continue with the
current (and soon-to-be prior) AIP for the current year.
D. Reducing Administrative Burden Regarding Prevented Planting
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising the CCIP Basic Provisions as shown in 7 CFR 457.8 to
remove an overly burdensome administrative requirement to verify that
the acreage was insured in the past based on the ``1 in 4'' rule
regarding prevented planting payments.
For a policyholder to be eligible for a prevented planting payment,
the CCIP Basic Provisions require that the acreage must be physically
available for planting. The ``1 in 4'' rule is one part of the
eligibility requirement to prove that the acreage is physically
available for planting. Previously, the ``1 in 4'' rule required that
in at least 1 out of the previous 4 years the acreage must have been:
1. Planted to a crop;
2. Insured; and
3. Harvested, or if not harvested, adjusted for claim purposes due
to an insured cause of loss (other than a cause of loss related to
flood, excess moisture, drought, or other cause of loss specified in
the Special Provisions).
The specific requirement that the acreage had been ``insured''
presented substantial challenges to AIPs and producers. If the same
operator maintains control of the acreage, proving insurance history on
the acreage was relatively simple. However, it was difficult to prove
that the acreage had been insured for beginning farmers or ranchers or
in any case where the operator for the acreage changed in the previous
4 years.
FCIC is removing the requirement that the acreage had been insured
in section 17(f)(8)(i)(E)(2) and 17(f)(8)(ii) of the CCIP Basic
Provisions to relieve producers and AIPs of the administrative burden
of verifying insurance history while maintaining program integrity by
continuing verification of planted and harvested history. All other
eligibility requirements to prove that the acreage is physically
available for planting remain the same.
E. Written Agreement Deadline Clarification
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising the CCIP Basic Provisions as shown in 7 CFR 457.8, to
clarify the deadline for submitting written agreement requests for
insuring a crop in a county that does not currently offer the policy
(often known as an XC written agreement). Typically, the deadline for
submitting written agreement requests is the cancellation date for the
crop policy being requested. In counties where the crop policy is not
available, the cancellation date is not always known or as appropriate
as it might be due to agronomic differences across locations. Prior to
this rule, the CCIP Basic Provisions were confusing and unnecessarily
restrictive in terms of what crops could be used as a proxy. For
example, if the Crop Provisions specify a cancellation date for ``all
other states,'' that cancellation date may not be appropriate for the
crop in the county requested by the written agreement. The same crop in
a nearby state could be a better proxy for the deadline.
FCIC is clarifying that section 18(e)(2)(ii) of the CCIP Basic
Provisions applies when neither the Crop Provisions, nor the Special
Provisions, provide a cancellation date for the county. FCIC is also
clarifying that the cancellation date for the requested crop or other
insurable crops with similar agronomic conditions may be used as the
written agreement deadline, regardless of whether that crop is located
in the same state.
F. Unit Eligibility Clarification
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising the CCIP Basic Provisions as shown in 7 CFR 457.8, to
clarify enterprise unit eligibility in section 34(a)(2)(i) and (ii) and
to add the descriptive heading, ``Whole Farm Unit'' to 34(a)(3) of the
CCIP Basic Provisions. Previously, the CCIP Basic Provisions stated
that the acreage was eligible for enterprise units if the criteria
establishing ``the basis for'' optional units were met (for example,
the acreage was located in two or more sections, if ``sections are the
basis for optional units''). Use of the phrase ``basis for'' could be
inferred to mean that the policyholder had to elect optional units
based on that criteria, which is an incorrect interpretation. In order
to be used for enterprise unit eligibility, optional units must only be
``available by'' that criteria.
FCIC is revising the CCIP Basic Provisions so that the regulation
uses consistent language with the Crop Insurance Handbook to avoid any
potential confusion regarding ``the basis'' for a requirement to have
optional units established in order to qualify for enterprise units,
when actually the policyholder is only required to have optional units
available to qualify for enterprise units. This rule confirms a
clarification that FCIC previously issued in the FCIC 18010 Crop
Insurance Handbook, which states that the eligibility for enterprise
units relies upon the availability of optional units where the insured
acreage is located.
G. Definitions
FCIC is amending the Area Risk Protection Insurance Regulations (7
CFR 407) by revising the ARPI Basic Provisions as shown in 7 CFR 407.9
and the Common Crop Insurance Regulations (7 CFR part 457) by revising
the CCIP Basic Provisions as shown in 7 CFR 457.8, to clarify and add
definitions.
FCIC is clarifying the definition of ``application'' in section 1
of the CCIP Basic Provisions by moving cancellation and termination
requirements to section 2 (Life of Policy, Cancellation, and
Termination). Previously, the definition of ``application'' in section
1 of the CCIP
[[Page 54526]]
Basic Provisions included requirements for submitting a new application
when a policy is cancelled or terminated. These requirements are more
appropriately included in section 2(f)(4) of the CCIP Basic Provisions
to match how the requirements are specified in the equivalent section
of the ARPI Basic Provisions. Relocating the requirements provides
greater clarity and transparency, while the requirements remain
unchanged.
FCIC is clarifying the definition of ``cancellation date'' in
section 1 of the CCIP Basic Provisions and section 1 of the ARPI Basic
Provisions. Prior to this rule, the definition of ``cancellation date''
only indicated that termination was a reason that a policy would not
continue for a subsequent year. FCIC is amending the definition to add
the term ``or voided'' to show that voidance is also a reason that a
policy would not automatically continue for a subsequent year.
Additional information on cancellation and termination is available in
section 2 of the ARPI Basic Provisions in 7 CFR 407.9 and section 2 of
the CCIP Basic Provisions in 7 CFR 457.8.
FCIC is adding definitions for ``cancellation'' and ``termination''
in section 1 of the ARPI Basic Provisions in 7 CFR 407.9 and section 1
of the CCIP Basic Provisions in 7 CFR 457.8 to provide a clear
definition of the words used throughout the regulations. ``Void'' is
already defined in Section 1 of the ARPI Basic Provisions in 7 CFR
407.9 and section 1 of the CCIP Basic Provisions in 7 CFR 457.8.
H. Duplicative Provisions
FCIC is amending the Area Risk Protection Insurance Regulations (7
CFR 407) and the Common Crop Insurance Regulations (7 CFR part 457) by
revising 7 CFR 407.2 and 7 CFR 457.2 to remove duplicative provisions.
Specifically, FCIC is removing paragraph (d) from 407.2 and paragraph
(d) from 457.2 and redesignating subsequent paragraphs in both parts.
Both removed paragraphs included requirements and instructions on which
policy remains active and which policy is void if duplicate policies
are found. Provisions addressing duplicate policies were already
included in 18(b) of the ARPI Basic Provisions and section 22(a) of the
CCIP Basic Provisions. The duplicative language is unnecessary and
therefore removed from 7 CFR 407.2 and 7 CFR 457.2.
III. Dispute Resolution Changes: Subpart X--Interpretations of
Statutory Provisions, Policy Provisions, and Procedures; Area Risk
Protection Insurance (ARPI), Basic Provisions; and Common Crop
Insurance Policy (CCIP), Basic Provisions
FCIC is amending Subpart X--Interpretations of Statutory
Provisions, Policy Provisions, and Procedures (7 CFR 400.765-768); Area
Risk Protection Insurance Regulations (7 CFR 407) by revising the ARPI
Basic Provisions as shown in 7 CFR 407.9; and the Common Crop Insurance
Regulations (7 CFR part 457) by revising the CCIP Basic Provisions as
shown in 7 CFR 457.8, to clarify what happens if an FCIC interpretation
or final agency determination is not requested or followed during a
dispute.
In accordance with Executive Order 14192, Unleashing Prosperity
Through Deregulation, this rule reduces regulatory and administrative
burdens during dispute resolution between policyholders and AIPs by
clarifying FCIC's role and removing ambiguity about the Federal
Arbitration Act (FAA) (9 U.S.C. 10 and 11).
The Federal Crop Insurance Act requires FCIC to interpret Federal
crop insurance policy provisions (7 U.S.C. 1506(r)). Subpart X
establishes FCIC's requirements for the public to request such
interpretations and FCIC's process for responding to such requests in
the form of a ``final agency determination'' for codified provisions or
an ``FCIC interpretation'' for non-codified provisions. These terms are
defined in 7 CFR 400.765.
The ``automatic nullification'' rule contained in Subpart X exceeds
the statutory authority provided in the Federal Crop Insurance Act and
places FCIC in the role of overruling arbitration awards if either the
policyholder or AIP believes that the arbitrator or judge did not
adhere to FCIC's interpretation in their decision. While the Basic
Provisions allow an aggrieved party to seek nullification of a failed
arbitration, the FAA provides the sole statutory framework for vacating
arbitration awards. The FAA authority is usurped, and finality of
arbitration is compromised, when parties can use the policy
interpretation process to nullify awards with the automatic
nullification rule. Rescinding the ``automatic nullification'' rule
reduces administrative and regulatory obstacles to policyholders and
their AIPs in finalizing a dispute through the courts. Therefore, in 7
CFR 400.766 and 400.767, sections 20(a) and (c) of the CCIP Basic
Provisions, and section 23(d) of the ARPI Basic Provisions, FCIC is
revising the provisions so that arbitration awards can only be
challenged in accordance with the FAA. In addition, FCIC is clarifying
the authority of the arbitrator. An arbitrator does not have the
authority to interpret the policy or FCIC procedure. Further, an
arbitrator does not have the authority to disregard or fail to comply
with an FCIC interpretation or final agency determination issued in
accordance with 7 CFR part 400, subpart X.
In addition, FCIC is adding a definition of ``FAA'' in the ARPI
Basic Provisions and CCIP Basic Provisions and updating the ways to
submit a request for a final agency determination and FCIC
interpretations by revising the mailing address and deleting the
facsimile number in 7 CFR 400.767.
IV. Crop Provisions Changes
FCIC is amending several Crop Provisions as described in the
sections below. For specific changes that FCIC is making in more than
one Crop Provision, the context and justification for the change is
provided under a descriptive sub-heading for that change. Under each
Crop Provision where the change appears, FCIC lists the descriptive
sub-heading. For changes that FCIC is making in a single Crop
Provision, the change is described only under its respective Crop
Provision sub-heading.
A. Deregulating Dates
FCIC is amending certain Crop Provisions to relocate contract
change dates, end of insurance period (EOIP) dates, cancellation dates,
and termination dates to the Special Provisions in cases where there
are regional differences in insurance coverage across the country. The
Special Provisions are the part of the policy that provide county-level
policy provisions, compared to the Crop Provisions which are
generalized for the crop anywhere it is grown and insured. These dates
are already published in the Special Provisions for each crop and
county where insurance is available. Maintaining a separate list of
these dates in the regulations is duplicative and can be error-prone.
Maintaining these dates only in the Special Provisions allows FCIC to
be more responsive and efficient to regional changes in agronomic
conditions, technology, or production practices that justify localized
date changes specific to an insurable county. Special Provisions are
located on the RMA website, and policyholders also receive the Special
Provisions for their county with their policy. This change will make it
easier for policyholders to
[[Page 54527]]
quickly find relevant dates in the Special Provisions without having to
sort through program dates that are irrelevant to their county.
B. Direct Marketing
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.139, Fresh Market Tomato (Dollar Plan) Crop
Insurance Provisions and 7 CFR 457.148, Fresh Market Pepper Crop
Insurance Provisions to allow direct marketing.
This change removes barriers to crop insurance for specialty crop
producers who directly market their crops. FCIC conducted a review of
specialty crops to identify any crop insurance restrictions on
producers' ability to engage in direct marketing. Restrictions were
identified for two specialty crops, fresh market tomatoes and fresh
market peppers, where the Crop Provisions prohibited insurance for
these two commodities if producers sell them directly to consumers.
FCIC is revising the Crop Provisions to allow Special Provisions
authorizing insurance in certain locations for fresh market tomatoes
and peppers sold directly to consumers. This change allows FCIC to
assess local market conditions to identify specific areas where
insurance could be offered in the future for tomatoes and peppers sold
for direct marketing.
C. Cotton
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.104, Cotton Crop Insurance Provisions, to
move cancellation dates, termination dates, and EOIP dates to the
Special Provisions, as explained in the ``Deregulating Dates''
paragraph above, and to incorporate a Special Provisions statement
regarding quality adjustment into section 10 (Settlement of Claim) of
the Crop Provisions. This rule does not change the quality adjustment
or claims process that has been in place since the 2018 crop year, but
rather, moves the quality adjustment calculation to the Crop
Provisions.
Adverse weather conditions impacting cotton producers in the
Southeast in 2015 and 2016 resulted in complaints that FCIC's cotton
quality adjustment did not meet the needs of producers. This led to a
request for FCIC to consider alternative methods for adjusting poor
quality cotton, and in response, FCIC examined data and quality loss
procedures in other existing policies with similar quality adjustment
provisions to determine an appropriate change. Working with grower
groups, FCIC considered alternatives and increased the 85 percent price
threshold (as described in section 10(d)(1)-(3)) to 90 percent and
removed the 85 percent deductible. FCIC implemented this change using
Special Provisions for the 2018 crop year and this rule incorporates
the change into the Crop Provisions, minimizing the need to include the
information in multiple locations.
FCIC is also making the following corrections and clarifications in
the Cotton Crop Provisions (7 CFR 457.104):
Removing the phrase ``for determining indemnities'' from
the section heading for section 2. The section heading will now read
``Insurance Guarantees, Coverage, Levels, and Prices.'' The new section
heading is more accurate because insurance guarantees, coverage levels,
and prices are not exclusively used for determining indemnities. This
change is also consistent with section headings of the same name in
other Crop Provisions;
Correcting the misspelling of the word ``measures'' in
section 8(d); and
Replacing the word ``subsection'' with ``section'' in
section 10(c)(1)(iii).
D. Sugar Beets
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.109, Sugar Beet Crop Insurance Provisions to
move the cancellation and termination dates to the Special Provisions,
as explained in the ``Deregulating Dates'' paragraph above, and to make
the following corrections and clarifications:
Removing the definition of ``crop year'' from the Crop
Provisions because it is duplicative of the same definition in the CCIP
Basic Provisions;
Correcting paragraph references in section 2 and 14(c);
and
Correcting the limit on adjusted production to apply to
the applicable Actual Production History (APH) database when the early
harvest adjustment option is elected by the policyholder. The early
harvest adjustment has a cap (or limit) on the amount the yield may be
increased that is designed to ensure that policyholders' APH guarantees
are not inflated. Previously, section 18(b)(5) based the limit on the
approved yield for the unit. For sugar beets, the unit is the insurable
acreage of the sugar beets used to establish the production guarantee,
premium, and indemnity. However, units are not the appropriate basis
for the yield limit, because a single approved yield may not be
calculated for a unit, which may contain multiple types and practices.
The most appropriate methodology for establishing the limit is the
approved yield from the applicable APH database for each insurable type
and practice. FCIC previously issued a procedural correction revising
the yield limit to use the applicable APH database. FCIC is revising
the Crop Provisions to align with the procedural correction.
E. Safflower
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.125, Safflower Crop Insurance Provisions by
moving the contract change date from December 31 to November 30 in
section 3 to match other spring crops to improve administrative
efficiency for AIPs, agents, and the FCIC.
As explained in the ``Deregulating Dates'' paragraph above, FCIC is
moving cancellation and termination dates to the Special Provisions.
FCIC added an example immediately following section 11(b) in the
Settlement of Claim section to show how an indemnity is calculated to
be consistent with other Crop Provisions.
FCIC is also making the following corrections and clarifications in
the Safflower Crop Insurance Provisions (7 CFR 457.125):
Removing the definition of ``nurse crop (companion crop)''
in section 1 as this term is not used in the Crop Provisions;
Replacing the phrase ``agree in writing'' in section 6(a)
with the defined term ``written agreement.'' ``Written agreement'' is
specifically defined in the CCIP Basic Provisions. The use of ``agree
in writing'' was intended to mean that the producer must have a written
agreement;
Removing a duplicate listing of replanting payment factors
from section 9(b). The replant payment factors are also included in the
policy in the actuarial documents. Keeping the replanting payment
factors in the actuarial documents, without duplicating the factors in
the regulation, improves administrative efficiency and reduces errors
in updating the payment factors in the future; and
Removing section 11(d)(3)(ii) and renumbering subsequent
paragraphs as there was a Special Provisions statement excluding this
provision, making it obsolete. Upon removing 11(d)(3)(ii), that portion
of the Special Provisions statement will also be removed.
F. Fresh Market Tomatoes Guaranteed Production Plan
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.128, Guaranteed Production Plan of Fresh
Market Tomato Crop Insurance Provisions to
[[Page 54528]]
move the cancellation dates, termination dates, and the EOIP date to
the Special Provisions along with extending the EOIP date for
Tennessee, extending the cancellation and termination dates for South
Carolina by approximately 45 days, and updating insurable types of
tomatoes to include ``grape'' types.
As explained in the ``Deregulating Dates'' paragraph above, FCIC is
moving the cancellation dates, termination dates, and the EOIP date to
the Special Provisions. Upon moving these dates to the Special
Provisions, FCIC is extending the EOIP date for Tennessee from
September 20 to October 15 and extending the cancellation and
termination dates for South Carolina by approximately 45 days.
Extending insurance in Tennessee protects producers from hurricanes in
late September and early October, when there is still a small portion
of the liability remaining in the field. By revising the cancellation
and termination dates for South Carolina, FCIC is effectively extending
the sales period by approximately 45 days. This change aligns the sales
period for South Carolina with neighboring counties in North Carolina,
providing additional time for producers to purchase insurance, and
reducing confusion for producers and AIPs who operate in both South
Carolina and North Carolina.
FCIC is adding the ``grape'' type of tomatoes to the Crop
Provisions. Adding the ``grape'' type of tomato to the Crop Provisions
adds clarity to the policy because this type is already insurable
through the Special Provisions.
FCIC is also making the following corrections and clarifications in
the Fresh Market Tomato Production Guaranteed Plan Crop Provisions (7
CFR 457.128):
Clarifying the availability of optional units by
establishing an exhaustive list of the criteria by which an optional
unit may and may not be established in section 2(b); and
Removing a duplicate listing of replanting payment factors
from section 12(b). The replant payment factors are also included in
the policy in the actuarial documents. Keeping the replanting payment
factors in the actuarial documents, without duplicating them in the
regulation, improves administrative efficiency and reduces errors in
updating the factors in the future.
G. Green Pea
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.137, Green Pea Crop Insurance Provisions, to
move cancellation and termination dates to the Special Provisions, as
explained in the ``Deregulating Dates'' paragraph above and to make the
following corrections and clarifications:
Clarifying the definition of ``production guarantee (per
acre)'' to indicate the production guarantee per acre is specified in
pounds; and
Clarifying the availability of optional units by
establishing an exhaustive list of the criteria by which an optional
unit may and may not be established in section 2(b).
H. Fresh Market Tomato Dollar Plan
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.139, Fresh Market Tomato (Dollar Plan) Crop
Insurance Provisions to allow the Special Provisions to provide
insurance for production sold through direct marketing, as explained in
the ``Direct Marketing'' paragraph above and moving the cancellation
date and termination date to the Special Provisions, as explained in
the ``Deregulating Dates'' paragraph above. FCIC is also making the
following corrections and clarifications:
Clarifying the availability of optional units by
establishing an exhaustive list of the criteria by which an optional
unit may or may not be established in section 2(b); and
Correcting the policy location for the replanting payment
amount to the actuarial documents, not the Special Provisions.
I. Fresh Market Pepper
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.148, Fresh Market Pepper Crop Insurance
Provisions to facilitate crop insurance expansion, particularly to East
Coast states, by moving cancellation dates and termination dates to the
Special Provisions, as explained in the ``Deregulating Dates''
paragraph above, and adding a new contract change date reflective of
the growing season in certain East Coast states. FCIC is also allowing
the Special Provisions to provide insurance for production sold through
direct marketing, as described in the ``Direct Marketing'' paragraph
above.
This rule seeks to facilitate crop insurance expansion to
additional states, particularly on the East Coast. FCIC is adding a new
contract change date in the Crop Provisions and moving the termination
dates and cancellation dates to the Special Provisions, where they will
be updated on a county basis for future expansions. Previously, crop
insurance for fresh market peppers was only available in southeastern
states where peppers have a different growing season than in states
further north. Producers, particularly in Northeastern states, have
indicated that the previous program dates were a barrier to obtaining
crop insurance.
FCIC is also making the following corrections and clarifications in
the Fresh Market Pepper Crop Provisions (7 CFR 457.148):
Clarifying the definition of ``crop year'' to encompass
growing seasons in certain East Coast states. The crop year covers all
planting periods shown in the Special Provisions for the county and is
identified by the calendar year of harvest for the latest planting
period;
Clarifying the definition of ``harvest'' so that it only
refers to picking peppers that are mature;
Expanding the definition of ``planting period'' to include
planting in certain East Coast states in the summer season;
Clarifying the definition of ``practical to replant'' to
show that for fresh market peppers, an AIP may consider crop marketing
windows, in addition to the criteria established in the CCIP Basic
Provisions, in their determination of whether the crop is practical to
replant;
Clarifying the availability of optional units by
establishing an exhaustive list of the criteria by which an optional
unit may or may not be established in section 2(b);
Allowing the EOIP to be modified in the Special
Provisions;
Correcting the policy location for the replanting payment
amount to the actuarial documents, not the Special Provisions; and
Moving the percentage of production to be counted for
catastrophic risk protection coverage to the actuarial documents.
J. Forage Seeding
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.151, Forage Seeding Crop Insurance
Provisions to move the cancellation and termination dates to the
Special Provisions, as explained in the ``Deregulating Dates''
paragraph above. FCIC is also clarifying the definition of ``crop
year'' to show that it is in lieu of the same definition in the CCIP
Basic Provisions.
K. Canola and Rapeseed
FCIC is amending the Common Crop Insurance Regulations (7 CFR part
457) by revising 7 CFR 457.161, Canola and Rapeseed Crop Provisions to
move the cancellation and termination dates to
[[Page 54529]]
the Special Provisions, as explained in the ``Deregulating Dates''
paragraph above. FCIC is also making the following corrections and
clarifications:
Changing the phrase ``in accordance with'' to ``by'' in
the definition of ``canola'' to show that the genus is ``defined by''
the Official U.S. Standards for Grain; and
Removing a duplicate listing of replanting payment amounts
from section 10(b). The replant payment amounts are also included in
the policy in the actuarial documents. Keeping the replanting payment
amounts in the actuarial documents, without duplicating them in the
regulation, improves administrative efficiency and reduces errors in
updating the amounts in the future.
V. Clarifications and Corrections
Throughout this rule, FCIC is making several corrections and
clarifications for plain language and adherence to the Government
Printing Office Style Manual. FCIC is providing an overview of these
corrections and clarifications here:
Revising references to ``the Corporation'' and ``Federal
Crop Insurance Corporation'' to ``FCIC'' as defined in 7 CFR part 400,
the ARPI Basic Provisions, and the CCIP Basic Provisions;
Reducing redundancy, eliminating potential conflicts, and
clarifying definitions that appear in both the Basic Provisions and
individual Crop Provisions, by removing duplicative definitions, or
adding the phrases ``in addition to'' or ``in lieu of'' to applicable
definitions within Crop Provisions;
Clarifying which Basic Provisions apply by adding an
introductory sentence preceding the Crop Provisions and updating the
effective year within the introductory sentence to show the year to
which the changes in the Crop Provisions apply;
Removing the introductory sentence explaining the order of
priority in individual Crop Provisions because it is duplicative of the
CCIP Basic Provisions, which already include the priority order of
policy provisions;
To conform with the Government Publishing Office Style
Manual:
[cir] Correcting the capitalization of ``states'' to ``States'';
[cir] Changing the spelling of numbers to numerals;
[cir] Correcting ``a'' to ``an'' or vice versa preceding an
acronym;
[cir] Correcting punctuation;
[cir] Removing parentheticals repeating a numerical percentage
following a spelled out percentage;
To improve clarity in writing for plain language:
[cir] Replacing ``herein,'' ``therein,'' and ``thereof'' with
descriptive phrases;
[cir] Replacing ``e.g.'' with ``for example'';
[cir] Replacing ``in excess of'' with ``exceeding'';
[cir] Replacing ``in compliance'' with ``complies'';
[cir] Removing unnecessary words and phrases, such as ``contained
in,'' and ``the provisions of'' when referring to regulatory provisions
by number;
Updating crop years in examples with more current years;
Clarifying the settlement of claim examples in Crop
Provisions by clarifying where the example begins and ends, updating
prices to be more reflective of current crop prices and potential
indemnities, correcting the defined term ``production guarantee (per
acre)'' as applicable, or clarifying which steps of the examples are
not applicable;
Correcting paragraph numbering in definitions;
Correcting outdated statute references; and
Removing duplicative provisions.
VI. Removal of Buy-Up Coverage on Prevented Planting
Prevented planting is a de facto coverage in all crop insurance
policies. Increased coverage above the basic level, referred to as
``buy-up'' coverage, is an option that is provided administratively by
RMA in annual notifications. Producers that elect buy-up coverage pay a
slightly higher premium to qualify for an indemnity payment that is 5
percent more than the basic coverage. However, the buy-up coverage is
mainly benefitting farmers in the Dakotas seeking to plant in the
Prairie Pothole Region, where the majority of prevented planting crop
insurance payments are made. This is no longer needed because Congress
has a history of addressing wide-spread flooding through ad-hoc
disaster assistance, such as the 2019 Supplemental bill that funded
prevented planting ``top-off'' payments, providing an additional 10 to
15 percent to eligible producers who had already received prevented
planting indemnities.
VII. Regulatory Analyses
A. Notice and Comment and Effective Date
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.
This rule is exempt from the regulatory analysis requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA).
The exemption under section 553 for matters related to contracts
extends to the regulatory analysis requirement for this rule.
The Office of Management and Budget (OMB) found this rule meets the
criteria in 5 U.S.C. 804(2) of the Congressional Review Act (CRA). The
CRA, at 5 U.S.C. 808(2) allows an agency to make such regulations
effective immediately if the agency finds there is good cause to do so.
USDA has determined that such good cause exists here because the rule
changes relate to matters of a contract. Postponing the effective date
of the rule would result in a one-year delay in providing the benefits
of the rule to American farmers and ranchers. Therefore, USDA is not
required to delay the effective date for 60 days from the date of
publication to allow for Congressional review. Accordingly, this rule
is effective upon publication in the Federal Register.
Therefore, this final rule is effective on November 30, 2025.
Although not required by APA or any other law, FCIC has chosen to
request comments on this rule.
B. Executive Orders 12866, 13563, and 14192
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 14192
``Unleashing Prosperity Through Deregulation'' announced the
Administration policy to significantly reduce the private expenditures
required to comply with Federal regulations to secure America's
economic prosperity and national security and the highest possible
quality of life for each citizen and to alleviate unnecessary
regulatory burdens placed on the American people. In line with
[[Page 54530]]
the Executive Order requirements, the Agency chose this regulatory
approach to harmonize rules and procedures, maximize flexibility, and
increase efficiency by alleviating unnecessary regulatory burdens.
The requirements in Executive Orders 12866 and 13563 for the
analysis of costs and benefits apply to rules that are determined to be
significant or economically significant. This rule has been designated
as not significant and therefore, OMB has not reviewed this rule and
analysis of the costs and benefits is not required.
C. 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), and the USDA
regulation for compliance with NEPA (7 CFR part 1b). As specified in 7
CFR parts 1b.3(f) and 1b.4(a)(3), FCIC is categorically excluded from
the preparation of an Environmental Assessment or Environmental Impact
Statement unless the FCIC Manager (agency head) determines that an
action may have a significant environmental effect or an extraordinary
circumstance exists. The FCIC Manager has determined this rule will not
have a significant environmental effect and no extraordinary
circumstances exist. Therefore, FCIC will not prepare an environmental
assessment or environmental impact statement for this action and this
documents the programmatic environmental compliance finding of
applicability and no extraordinary circumstances (FANEC).
D. 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 require Tribal consultation at this time. If a Tribe
requests consultation, RMA will work with the USDA Office of Tribal
Relations to ensure meaningful consultation is provided.
E. Unfunded Mandates Reform Act
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.
F. Paperwork Reduction Act Requirements
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;
Expiration Date: 3/31/2026, 0563-0083; Expiration Date: 11/30/2026, and
0563-0055; Expiration Date: 11/30/25 (currently at OMB seeking approval
to renew collection). No new information will be collected through this
rule. All information has already been collected.
G. E-Government Act Compliance
RMA is committed to complying with the E-Government Act of 2002, 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.
Federal Assistance Program
The title and number of the Assistance Listing, to which this rule
applies is No. 10.450--Crop Insurance.
List of Subjects
7 CFR Part 400
Acreage allotments, Administrative practice and procedure, Claims,
Crop insurance, Drug traffic control, Fraud, Government employees,
Income taxes, Intergovernmental relations, Penalties, Reporting and
recordkeeping requirements, Wages.
7 CFR Part 407
Acreage allotments, Administrative practice and procedure, Barley,
Corn, Cotton, Crop insurance, Peanuts, Reporting and recordkeeping
requirements, Sorghum, Soybeans, Wheat.
7 CFR Part 457
Acreage allotments, Crop insurance, Reporting and recordkeeping
requirements.
Final Rule
For the reasons discussed above, FCIC amends 7 CFR parts 400, 407,
and 457, effective for the 2026 and succeeding crop years for crops
with a contract change date on or after November 30, 2025, and for the
2027 and succeeding crop years for all other crops, as follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
0
1. The authority citation for part 400 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
Subpart X--Interpretations of Statutory Provisions, Policy
Provisions, and Procedures
0
2. Add an authority citation for subpart X to read as follows:
Authority: 7 U.S.C. 1506(l), 1506(o), and 1506(r).
0
3. Amend Sec. 400.765 as follows:
0
a. In the definition of ``approved insurance provider'', remove the
first instance of the word ``FCIC'' and add ``the Federal Crop
Insurance Corporation (FCIC)'' in its place; and
0
b. Add a definition of ``FAA'' in alphabetical order.
The addition reads as follows:
Sec. 400.765 Definitions.
* * * * *
FAA. The Federal Arbitration Act found at 9 U.S.C. 1 et seq.
* * * * *
0
4. Amend Sec. 400.766 as follows:
0
a. Revise paragraph (a);
0
b. In paragraphs (b) introductory text and (b)(1) introductory text,
remove the words ``a FCIC'' wherever they appear and add ``an FCIC'' in
their place;
0
c. Revise paragraph (b)(1)(i);
0
d. Remove paragraphs (b)(3) and (4);
0
e. Redesignate paragraphs (b)(5) and (6) as paragraphs (b)(3) and (4);
0
f. In newly redesignated paragraph (b)(4) introductory text, remove the
words ``a FCIC'' and add ``an FCIC'' in their place;
[[Page 54531]]
0
g. In newly redesignated paragraph (b)(4)(i), remove the words ``an
administrative review'' and add ``administrative review'' in their
place;
0
h. In newly redesignated paragraph (b)(4)(iv), remove the words ``a
FCIC'' and add ``an FCIC'' in their place; and
0
i. Add paragraphs (c) and (d).
The revisions and additions read as follows:
Sec. 400.766 Basis and applicability.
(a) The regulations in this part prescribe the rules and criteria
for obtaining a final agency determination or an FCIC interpretation.
(1) FCIC will provide a final agency determination or an FCIC
interpretation, as applicable, for statutory, regulatory, or other
policy provisions or procedures that were in effect during the 4 most
recent crop years from the crop year in which your request was
submitted. For example, for a request received in the 2025 crop year,
FCIC will consider requests for the 2025, 2024, 2023, and 2022 crop
years.
(2) If FCIC determines a request is outside the scope of crop years
authorized in paragraph (a)(1) of this section, you will be notified
within 30 days of the date of receipt by FCIC.
(3) If the statutory, regulatory, or other policy provisions or
procedures have changed for the time period you seek an interpretation
you must submit a separate request for each policy provision or
procedure by year. For example, if you seek an interpretation of
section 6(b) of the Small Grains Crop Provisions for the 2022 through
2025 crop years but the policy provisions were revised starting with
the 2024 crop year, you must submit two requests, one for the 2022 and
2023 crop years and another for the 2024 and 2025 crop years.
(b) * * *
(1) * * *
(i) The parties are required to seek an interpretation of the
disputed provision from FCIC in accordance with this subpart. (This may
require that the parties seek a stay of the proceedings until an
interpretation is provided, if such proceedings have been initiated.);
and
* * * * *
(c) With respect to the authority of an arbitrator selected to
resolve a dispute under any FCIC reinsured policy that involves a
disputed policy provision or FCIC procedure:
(i) The arbitrator does not have the authority to interpret policy
provisions or FCIC procedure; and
(ii) The arbitrator exceeds their authority if they interpret
policy provisions or FCIC procedure or if the arbitrator disregards or
fails to comply with a final agency determination or an FCIC
interpretation issued in accordance with this subpart.
(d) The FAA governs any judicial review of an arbitration award
involving a policy issued under the authority of the Act.
* * * * *
0
5. Amend Sec. 400.767 as follows:
0
a. Revise paragraph (a)(1);
0
b. In paragraph (a)(3), remove the words ``a FCIC'' and add ``an FCIC''
in their place;
0
c. In paragraph (a)(4), remove the words ``interpretation (You'' and
add ``interpretation. (You'' in their place, and remove the words ``are
required);'' and add ``are required.);'' in their place;
0
g. In paragraph (b)(1), remove the text ``(e.g.,'' and add ``(for
example,'' in its place;
0
h. Remove paragraph (b)(3)(ii);
0
i. Redesignate paragraph (b)(3)(iii) as paragraph (b)(3)(ii);
0
j. Revise newly redesignated paragraph (b)(3)(ii);
0
k. In paragraph (b)(4), remove the text ``; and'' and add a period in
its place; and
0
l. Remove paragraph (b)(5).
The revisions read as follows:
Sec. 400.767 Requestor obligations.
(a) * * *
(1) Be submitted to the Deputy Administrator using the guidelines
provided on RMA's website at www.rma.usda.gov through one of the
following methods:
(i) In writing by certified mail or overnight delivery, to the
Deputy Administrator, Risk Management Agency, United States Department
of Agriculture, P.O. Box 419205, Kansas City, MO 64141-6205; or
(ii) By electronic mail at [email protected];
* * * * *
(b) * * *
(3) * * *
* * * * *
(ii) Notwithstanding paragraph (b) of this section, if during the
mediation, arbitration, or litigation, an issue arises that requires a
final agency determination or FCIC interpretation, the mediator,
arbitrator, judge, or magistrate must promptly request a final agency
determination or FCIC interpretation in accordance with Sec.
400.767(a).
* * * * *
0
6. Amend Sec. 400.768 as follows:
0
a. In paragraph (c), remove the word ``sixty'' and add ``60'' in its
place;
0
b. In paragraph (d), remove the words ``a FCIC'' and add ``an FCIC'' in
their place;
0
c. In paragraphs (e) and (f), remove the words ``a FCIC'' wherever they
appear and add ``FCIC'' in their place; and
0
d. Revise paragraph (i).
The revision reads as follows:
Sec. 400.768 FCIC obligations.
* * * * *
(i) When issuing a final agency determination or FCIC
interpretation, FCIC will not evaluate the insured, insurance provider,
agent, or loss adjuster as it relates to their performance in following
FCIC policy provisions or procedures. Interpretations will not include
any analysis of whether the insured, insurance provider, agent, or loss
adjuster complied with the policy provision or procedure in question.
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
0
7. The authority citation for part 407 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
8. Amend Sec. 407.2 as follows:
0
a. In paragraph (a) remove the words ``Federal Crop Insurance Act (7
U.S.C. 1501-1524) (Act)'' and add ``Federal Crop Insurance Act (7
U.S.C. 1501-1524), as amended (Act)'' in their place;
0
b. In paragraph (b), remove the words ``the FCIC'' and add ``FCIC'' in
their place;
0
c. Remove paragraph (d); and
0
d. Redesignate paragraphs (e) through (g) as paragraphs (d) through
(f).
0
9. In Sec. 407.8, revise paragraph (b).
The revision reads as follows:
Sec. 407.8 The application and policy.
* * * * *
(b) FCIC or the insurance provider may reject, no longer accept
applications, or cancel existing insurance contracts upon FCIC's
determination that the insurance risk is excessive. Such determination
must be made not later than 15 days before the cancellation date for
the crop and may be made on an area, county, State, or crop basis.
* * * * *
0
10. Amend Sec. 407.9 as follows:
0
a. Remove the text ``e.g.'' wherever it appears and add ``for example''
in its place;
0
b. In the second paragraph of the ``Reinsured Policies'' section that
precedes Terms and Conditions:
0
1. Remove the words ``the Risk Management Agency (RMA's)'' and add
``RMA's'' in their place; and
0
2. Remove the words ``No state'' and add ``No State'' in their place;
0
c. In section 1:
[[Page 54532]]
0
1. Revise the definition ``Beginning farmer or rancher'';
0
2. Add a definition of ``Cancellation'' in alphabetical order;
0
3. In the definition of ``Cancellation date'', remove the words ``or
terminated'' and add ``or terminated or voided'' in their place;
0
4. In the definition of ``Cooperative Extension System'', remove the
words ``state office located at each state's land-grant university,''
and add ``State office located at each State's land-grant university,''
in their place;
0
5. In the definition of ``County'', remove the word ``state'' and add
``State'' in its place;
0
6. Add a definition of ``FAA'' in alphabetical order;
0
7. In the definition of ``Perennial crop'', remove the word ``one'' and
add ``1'' in its place;
0
8. In the definition of ``Person'', remove the words ``agency thereof''
and add ``government agency'' in their place;
0
9. In the definition of ``Prohibited substance'', remove the words
``organic, transitional or'' and add ``organic, transitional, or'' in
their place;
0
10. In the definition of ``State'', remove the words ``state shown''
and add ``State shown'' in their place;
0
11. In the definition of ``Substantial beneficial interest'', remove
the words ``state dissolution'' and add ``State dissolution'' in their
place; and
0
12. Add the definition of ``Termination'' in alphabetical order;
0
d. In section 2:
0
1. In paragraph (d)(3), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
2. In paragraph (k)(2)(i)(A), remove the words ``billing date for the
crop year'' and add ``billing date for the crop year.'' in their place;
0
3. In paragraph (k)(2)(i)(B), remove the words ``delinquent debt'' and
add ``delinquent debt.'' in their place;
0
4. Revise paragraph (k)(2)(i)(D);
0
5. In paragraph (l)(3)(ii), remove the words ``or on after'' and add
``or on or after'' in their place; and
0
6. Revise paragraph (p)(2);
0
e. In section 5, in paragraph (c) introductory text, remove the word
``states'' and add ``States'' in its place;
0
f. In section 7, revise paragraph (h);
0
g. In section 12, revise paragraph (d);
0
h. In section 13:
0
1. In paragraph (c)(4), remove the words ``two of the last four''
wherever they appear and add ``2 of the last 4'' in their place;
0
2. In paragraph (d) introductory text, remove the word ``four-year''
and add ``4-year'' in its place;
0
3. In paragraphs (d)(1) and (d)(2), remove the words ``two of the last
four'' wherever they appear and add ``2 of the last 4'' in their place;
0
4. In paragraph (d)(3)(i), remove the words ``2019 and 50 of those
acres were double cropped with soybeans; and 100 acres of wheat planted
in 2020'' and add ``2024 and 50 of those acres were double cropped with
soybeans; and 100 acres of wheat planted in 2025'' in their place;
0
5. In paragraph (d)(3)(ii), remove the words ``2019 and 70 divided by
100 equals 70 percent of the first insured crop acres that were double
cropped in 2020'' and add ``2024 and 70 divided by 100 equals 70
percent of the first insured crop acres that were double cropped in
2025'' in their place;
0
6. In paragraph (d)(3)(iv), remove the year ``2021'' and add ``2026''
in its place; and
0
7. In paragraph (e), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
i. In section 21, in paragraphs (b) and (c), remove the word ``three''
wherever it appears and add ``3'' in its place;
0
j. In section 23 [FCIC Policies], in paragraph (d)(1), remove the word
``one'' and add ``1'' in its place;
0
k. In section 23 [Reinsured Policies]:
0
1. In paragraphs (b)(2)(ii)(C) and (c), remove the word ``one''
wherever it appears and add ``1'' in its place;
0
2. Revise paragraph (d)(3)(ii) and (d)(4)(ii);
0
3. In paragraph (d)(5)(ii), remove the words ``judicial review'' and
add ``a judicial review as described in section 23(g)'' in their place;
0
4. In paragraph (d)(5)(iii), remove the words ``judicial review is
sought, suit must be filed not later than one year'' and add ``a
judicial review as described in section 23(g) is sought, suit must be
filed not later than 1 year'' in their place;
0
5. Revise paragraph (d)(6);
0
6. In paragraph (e), remove the word ``state'' and add ``State'' in its
place; and
0
7. In paragraph (g), remove the text ``SW.'' and add ``SW'' in its
place;
0
l. In section 24, in paragraph (b), remove the text ``(41 U.S.C.
7611)'' and add ``(41 U.S.C. 7109)'' in its place;
0
m. In section 30, revise Step 9: Calculate the Payment Factor of the
Area Revenue Protection example; and
0
n. In section 31, remove the period at the end of the section heading;
The revisions and additions read as follows:
Sec. 407.9 Area risk protection insurance policy.
* * * * *
1. Definitions
* * * * *
Beginning farmer or rancher. An individual who has not actively
operated and managed a farm or ranch in any State, with an insurable
interest in a crop or livestock as an owner-operator, landlord, tenant,
or sharecropper for more than 10 crop years. An individual's insurable
interest in any crop year may be excluded at the request of the
individual if the interest was held by the individual while: (1) under
the age of 18; (2) in full-time military service of the United States;
or (3) in post-secondary education. A person other than an individual
may be eligible for beginning farmer or rancher benefits if there is at
least one individual substantial beneficial interest holder and all
individual substantial beneficial interest holders qualify as a
beginning farmer or rancher.
* * * * *
Cancellation. When the policy is no longer in effect as of the
cancellation date.
* * * * *
FAA. The Federal Arbitration Act found at 9 U.S.C. 1 et seq.
* * * * *
Termination. When the policy is no longer in effect as of the date
specified in the policy.
* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
(k) * * *
(2) * * *
(i) * * *
(D) For execution of a written payment agreement and failure to
make any scheduled payment, the termination date for the crop year
prior to the crop year in which you failed to make the scheduled
payment (for this purpose only, the crop year will start the day after
the termination date and end on the next termination date, for example,
if the termination date is November 30 and you fail to make a payment
on November 15, 2025, your policy will terminate on November 30, 2024,
for the 2025 crop year).
* * * * *
(p) * * *
(2) Since applications for crop insurance cannot be accepted after
the sales closing date, if you make any payment, or you otherwise
become eligible, after the sales closing date, you cannot apply for
insurance until the next crop year. For example, for the 2025 crop
year, if crop A, with a termination date of October 31, 2024, and crop
B, with a termination date of March 15, 2025, are insured and you do
not pay the premium for crop A by the termination date, you are
ineligible for crop insurance as of October 31, 2024,
[[Page 54533]]
and crop A's policy is terminated as of that date. Crop B's policy does
not terminate until March 15, 2025, and an indemnity for the 2024 crop
year may still be owed. You will not be eligible to apply for crop
insurance for any crop until after the amounts owed are paid in full or
you have your debts discharged in bankruptcy.
* * * * *
7. Annual Premium and Administrative Fees
* * * * *
(h) Additional premium subsidy--If you qualify as a beginning
farmer or rancher, or veteran farmer or rancher, the premium subsidy
that you would otherwise receive will be increased, unless otherwise
specified in the Special Provisions. If you qualify as:
(1) A beginning farmer or rancher, your premium subsidy will be
increased by:
(i) 15 percentage points for the first through second crop years;
(ii) 13 percentage points for the third crop year;
(iii) 11 percentage points for the fourth crop year; and
(iv) 10 percentage points for the fifth through tenth crop years;
(2) A veteran farmer or rancher, your premium subsidy will be
increased by 10 percentage points; or
(3) Both a beginning farmer or rancher and a veteran farmer or
rancher, your premium subsidy will equal that of the beginning farmer
or rancher, which is equivalent or higher.
* * * * *
12. Triggers, Final Policy Protection, Payment Factor, and Indemnity
Calculations
* * * * *
(d) If the harvest price cannot be calculated for the current crop
year under the provisions contained in the CEPP:
(1) Notice will be provided on RMA's website;
(2) The harvest price will equal the projected price; and
(3) Your premium will be recalculated as though you had elected
Area Yield Protection. Any premium previously paid exceeding the new
amount will be returned to you.
* * * * *
[Reinsured policies]
23. Mediation, Arbitration, Appeal, Reconsideration, and Administrative
and Judicial Review
* * * * *
(d) * * *
(3) * * *
(ii) An arbitrator does not have the authority to:
(A) Interpret the policy or FCIC procedure; or
(B) Disregard or fail to comply with a final agency determination
or FCIC interpretation issued in accordance with 7 CFR part 400,
subpart X. An arbitration award that is inconsistent with section 23
may be appealed in accordance with the FAA.
* * * * *
(4) * * *
(ii) The arbitrator does not have the power to issue an award that
does not conform to section 23. Failure of the arbitrator to provide
such written statement may be appealed in accordance with the FAA.
* * * * *
(6) The FAA governs arbitrations initiated under section
23(d)(5)(i) and any decision rendered in arbitration is binding on you
and us unless vacated, modified, or corrected, in accordance with the
FAA.
* * * * *
30. Examples
* * * * *
Area Revenue Protection example:
* * * * *
Step 9: Calculate the Payment Factor
Formula: (Trigger revenue minus final county revenue) divided by
(trigger revenue minus (expected county yield times the greater of
projected or harvest price times loss limit factor)) equals payment
factor
($484.65-$342.75) / ($484.65-(141.4 x $4.57 x .18)) = .385 payment
factor
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS
0
11. The authority citation for part 457 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
12. Amend Sec. 457.2 as follows:
0
a. Revise paragraphs (a) and (b);
0
b. Remove paragraph (d);
0
c. Redesignate paragraphs (e) through (g) as paragraphs (d) through
(f); and
0
d. Revise newly redesignated paragraph (e).
The revisions read as follows:
Sec. 457.2 Availability of Federal crop insurance.
(a) Insurance shall be offered under the provisions of this section
on the insured crop in counties within the limits prescribed by and in
accordance with the provisions of the Federal Crop Insurance Act (7
U.S.C. 1501-1524), as amended (Act). The crops and counties shall be
designated by the Manager of the Federal Crop Insurance Corporation
(FCIC) from those approved by the Board of Directors of FCIC.
(b) The insurance is offered through companies reinsured by FCIC
that offer contracts containing the same terms and conditions as the
contract set out in this part. These contracts are clearly identified
as being reinsured by FCIC. FCIC may offer the contract for the
catastrophic level of coverage contained in this part and part 402 of
this chapter directly to the insured through local offices of the
Department of Agriculture only if the Secretary determines that the
availability of local agents is not adequate. Those contracts are
specifically identified as being offered by FCIC.
* * * * *
(e) An insured whose contract with FCIC or with a company reinsured
by FCIC under the Act has been terminated because of violation of the
terms of the contract is not eligible to obtain multiple peril crop
insurance under the Act with FCIC or with a company reinsured by FCIC
unless the insured can show that the default in the prior contract was
cured prior to the sales closing date of the contract applied for or
unless the insured can show that the termination was improper and
should not result in subsequent ineligibility.
* * * * *
0
13. Amend Sec. 457.7, by removing the words ``the Corporation''
wherever they appear and adding ``FCIC'' in their place.
0
14. Amend Sec. 457.8 as follows:
0
a. Remove the text ``e.g.'' wherever it appears and add ``for example''
in its place;
0
b. In paragraph (a), remove the words ``the Corporation'' wherever they
appear and add ``FCIC'' in their place;
0
c. Under the heading ``FCIC Policies'', in the second paragraph, remove
the words ``refer to the Federal Crop Insurance Corporation'' and add
``refer to FCIC'' in their place;
0
d. Under the heading ``Reinsured Policies'', in the first paragraph,
remove the words ``No state'' and add ``No State'' in their place;
0
e. In section 1:
0
1. In the definition of ``APH base period'', remove the words ``four,
up to a maximum of ten,'' and add ``4, up to a maximum of 10,'' in
their place;
0
2. Revise the definitions of ``Application'' and ``Beginning farmer or
rancher'';
0
3. Add a definition of ``Cancellation'' in alphabetical order;
0
4. In the definition of ``Cancellation date'', remove the words ``or
[[Page 54534]]
terminated'' and add ``or terminated or voided'' in their place;
0
5. In the definition of ``Continuous production reports'', remove the
word ``herein'' and add ``in this definition'' in its place;
0
6. In the definition of ``County'', remove the word ``state'' and add
``State'' in its place;
0
7. Add a definition of ``FAA'' in alphabetical order;
0
8. In the definition of ``New producer'', remove the word ``two'' and
add ``2'' in its place;
0
9. In the definition of ``Perennial crop'', remove the word ``one'' and
add ``1'' in its place;
0
10. In the definition of ``Person'', remove the words ``agency
thereof'' and add ``government agency'' in their place;
0
11. In the definition of ``Prohibited substance'', remove the words
``organic, transitional or'' and add ``organic, transitional, or'' in
their place;
0
12. In the definition of ``Replanted crop'', in paragraph (1)(i),
remove the words ``by the policy and'' and add ``by the policy, and''
in their place;
0
13. In the definition of ``Representative sample'', remove the words
``instances we'' and add ``instances, we'' in their place;
0
14. In the definition of ``State'', remove the words ``state shown''
and add ``State shown'' in their place; and
0
15. Add a definition of ``Termination'' in alphabetical order;
0
f. In section 2:
0
1. In paragraph (b)(7)(iii), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
2. In paragraph (b)(10) introductory text, remove the words ``a SSN or
EIN'' and add ``an SSN or EIN'' in their place;
0
3. In paragraph (f)(1)(ii), remove the words ``sections 2(f)(2)(i)(A),
(B) or (D)'' and add ``sections 2(f)(2)(i)(A), (B), or (D)'' in their
place;
0
4. In paragraph (f)(2)(i)(A), remove the words ``billing date for the
crop year'' and add ``billing date for the crop year.'' in their place;
0
5. In paragraph (f)(2)(i)(B), remove the words ``delinquent debt'' and
add ``delinquent debt.'' in their place;
0
6. Revise paragraph (f)(2)(i)(D);
0
7. Revise paragraph (f)(4) and (5); and
0
8. In paragraph (g)(3)(i), remove the words ``cancellation date and''
and add ``cancellation date, and'' in their place;
0
g. In section 3:
0
1. Revise paragraph (c)(5)(ii);
0
2. Revise paragraph (f)(1)(ii);
0
3. In paragraph (h)(2)(ii), remove the word ``two'' and add ``2'' in
its place;
0
4. In paragraph (h)(3)(ii), remove the word ``herein'' and add ``in
section 3(h)(3)(i)'' in its place; and
0
5. In paragraph (i) introductory text, remove the words ``applicable)
to'' and add ``applicable to'' in their place;
0
h. In section 4, revise paragraph (b);
0
i. In section 5:
0
1. In paragraph (b)(5) introductory text, remove the word ``four'' and
add ``4'' in its place;
0
2. In paragraph (b)(5)(i)(A), remove the word ``three'' and add ``3''
in its place;
0
3. In paragraph (b)(5)(i)(B), remove the word ``two'' and add ``2'' in
its place;
0
4. In paragraph (b)(5)(i)(C), remove the word ``one'' and add ``1'' in
its place; and
0
5. In paragraph (c)(3), remove the word ``four'' and add ``4'' in its
place;
0
j. In section 6:
0
1. In paragraph (d)(1), remove the words ``without our consent
(Consent'' and add ``without our consent. (Consent'' in their place and
remove the words ``by the policy)'' and add ``by the policy.)'' in
their place; and
0
2. In paragraph (h), remove the words ``prevented planting payment or
replanting payment'' and add ``prevented planting payment, or
replanting payment'' in their place;
0
k. In section 7:
0
1. In paragraph (e)(1), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
2. In paragraph (e)(4)(iii), remove the word ``one'' and add ``1'' in
its place; and
0
3. Revise paragraph (g);
0
l. In section 8, in paragraph (b)(2), remove the words ``premium rate,
etc.)'' and add ``premium rate, etc.)'' in their place;
0
m. In section 9, in paragraph (c) introductory text, remove the word
``states'' and add ``States'' in its place;
0
n. In section 10, in paragraph (a)(2)(ii) introductory text, remove the
words ``power of attorney, etc.)'' and add ``power of attorney, etc.)''
in their place;
0
o. In section 12:
0
1. In paragraph (a), remove the words ``fire, terrorism, etc.)'' and
add ``fire, terrorism, etc.)'' in their place; and
0
2. In paragraph (c), remove the words ``designed limits (For'' and add
``designed limits. (For'' in their place;
0
p. In section 14:
0
1. In paragraph (e)(3)(i), remove the words ``in the unit (When'' and
add ``in the unit. (When'' in their place; and
0
2. In paragraph (i), remove the words ``the Federal Crop Insurance
Corporation'' and add ``FCIC'' in their place;
0
q. In section 15:
0
1. In paragraphs (h)(5)(ii), (i)(1), and (i)(2) remove the words ``two
of the last four'' wherever they appear and add ``2 of the last 4'' in
their place;
0
2. In paragraph (i)(3)(i), remove the words ``2019 and 50 of those
acres were double cropped with soybeans; and 100 acres of wheat planted
in 2020'' and add ``2024 and 50 of those acres were double cropped with
soybeans; and 100 acres of wheat planted in 2025'' in their place;
0
3. In paragraph (i)(3)(ii), remove the words ``2019 and 70 divided by
100 equals 70 percent of the first insured crop acres that were double
cropped in 2020'' and add ``2024 and 70 divided by 100 equals 70
percent of the first insured crop acres that were double cropped in
2025'' in their place;
0
4. In paragraph (i)(3)(iv), remove the year ``2021'' and add ``2026''
in its place; and
0
5. In paragraph (j), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
r. In section 17:
0
1. In paragraph (d)(1)(ii)(A)(2), remove the words ``Service or'' and
add ``Service, or'' in their place;
0
2. In paragraph (e)(1)(i) introductory text, remove the words ``one or
more of the four'' and add ``1 or more of the 4'' in their place;
0
3. In paragraph (e)(1)(i)(A), remove the words ``one of the four'' and
add ``1 of the 4'' in their place;
0
4. In paragraph (e)(1)(i)(C), remove the words ``sections
17(e)(1)(i)(B)(1), (2) and (3)'' and add ``sections 17(e)(1)(i)(B)(1),
(2), and (3)'' in their place;
0
5. In paragraph (e)(1)(ii) introductory text and (e)(1)(iii)(A)(2),
remove the word ``four'' wherever it appears and add ``4'' in its
place;
0
6. In paragraph (f)(1)(i), remove the words ``one of the four'' and add
``1 of the 4'' in their place;
0
7. In paragraph (f)(4)(ii) introductory text, remove the word ``four''
and add ``4'' in its place;
0
8. In paragraph (f)(8)(i)(E)(1), add the word ``and'' at the end;
0
9. Remove paragraph (f)(8)(i)(E)(2);
0
10. Redesignate paragraph (f)(8)(i)(E)(3) as paragraph (f)(8)(i)(E)(2);
0
11. Remove paragraph (f)(8)(ii);
0
12. Redesignate paragraph (f)(8)(iii) as (f)(8)(ii);
0
13. Revise newly redesignated paragraph (f)(8)(ii); and
0
14. In paragraph (f)(11) introductory text and (f)(11)(i), remove the
words ``one of the four'' wherever they appear and add ``1 of the 4''
in their place;
0
s. In section 18:
0
1. In paragraph (d)(4), remove the words ``insurance provider (No'' and
add ``insurance provider. (No'' in their place and remove the words
``this section)'' and add ``this section.)'' in their place;
0
2. Revise paragraph (e)(2)(ii);
0
3. In paragraph (f)(2)(i) introductory text and paragraph (f)(2)(i)(B),
remove
[[Page 54535]]
the word ``three'' wherever it appears and add ``3'' in its place;
0
4. In paragraph (f)(2)(i)(B)(3), remove the word ``ten'' and add ``10''
in its place;
0
5. In paragraph (f)(2)(ii) introductory text and paragraph
(f)(2)(ii)(B), remove the word ``three'' wherever it appears and add
``3'' in its place;
0
6. In paragraph (f)(2)(ii)(B)(3), remove the word ``ten'' and add
``10'' in its place;
0
7. Revise paragraph (f)(2)(ii)(C); and
0
8. In paragraph (k)(2), remove the text ``i.e.'' and add ``i.e.'' in
its place;
0
t. In section 20 [For FCIC Policies], in paragraphs (d) and (e)(1),
remove the word ``one'' wherever it appears and add ``1'' in its place;
0
u. In section 20 [For Reinsured Policies]:
0
1. Revise paragraph (a)(1)(ii);
0
2. Revise paragraph (a)(2);
0
3. In paragraph (b)(2), remove the words ``judicial review'' and add
``a judicial review as described in section 20(i)'' in their place;
0
4. In paragraph (b)(3), remove the words ``judicial review is sought,
suit must be filed not later than one year'' and add ``a judicial
review as described in section 20(i) is sought, suit must be filed not
later than 1 year'' in their place;
0
5. Revise paragraph (c);
0
6. In paragraphs (d)(2)(ii)(C) and (e)(1), remove the word ``one''
wherever it appears and add ``1'' in its place;
0
7. In paragraph (f), remove the word ``state'' and add ``State'' in its
place; and
0
8. In paragraph (i), remove the words ``USDA/RMA/Deputy Administrator
of Compliance/Stop 0806, 1400 Independence Avenue SW, Washington, DC
20250-0806'' and add ``USDA/RMA/Deputy Administrator for Compliance/
Stop 0806, 1400 Independence Avenue SW, Washington, DC 20250-0806'' in
their place;
0
v. In section 21:
0
1. In paragraph (b)(1), remove the word ``three'' and add ``3'' in its
place;
0
2. Revise paragraph (b)(2); and
0
3. In paragraph (c), remove the word ``three'' and add ``3'' in its
place;
0
w. In section 26, remove the text ``(41 U.S.C. 7611)'' and add ``(41
U.S.C. 7109)'' in its place;
0
x. In section 34:
0
1. In paragraph (a)(1)(iii), remove the word ``herein;'' and add ``in
section 34(a).'' in its place;
0
2. Revise paragraphs (a)(2)(i)(A) through (G);
0
3. In paragraph (a)(2)(ii), remove the words ``if sections are the
basis for optional units'' and add ``if optional units are available by
sections'' in their place;
0
4. Revise paragraph (a)(3) introductory text; and
0
5. In paragraph (b)(2), add a period following the words ``report for
that crop year'';
0
y. In section 36, revise paragraphs (a)(1)(i) and (ii); and
0
z. In section 37, in paragraph (g), remove the words ``in excess of''
and add ``exceeding'' in their place.
The revisions and additions read as follows:
Sec. 457.8 The application and policy.
* * * * *
Common Crop Insurance Policy
* * * * *
1. Definitions
* * * * *
Application. The form required to be completed by you and accepted
by us before insurance coverage commences. This form must be completed
and filed in your agent's office not later than the sales closing date
of the initial insurance year for each crop for which insurance
coverage is requested.
* * * * *
Beginning farmer or rancher. An individual who has not actively
operated and managed a farm or ranch in any State, with an insurable
interest in a crop or livestock as an owner-operator, landlord, tenant,
or sharecropper for more than 10 crop years. An individual's insurable
interest in any crop year may be excluded at the request of the
individual if the interest was held by the individual while: (1) under
the age of 18; (2) in full-time military service of the United States;
or (3) in post-secondary education. A person other than an individual
may be eligible for beginning farmer or rancher benefits if there is at
least one individual substantial beneficial interest holder and all
individual substantial beneficial interest holders qualify as a
beginning farmer or rancher.
* * * * *
Cancellation. When the policy is no longer in effect as of the
cancellation date.
* * * * *
FAA. The Federal Arbitration Act found at 9 U.S.C. 1 et seq.
* * * * *
Termination. When the policy is no longer in effect as of the date
specified in the policy.
* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
(f) * * *
(2) * * *
(i) * * *
(D) For execution of a written payment agreement and failure to
make any scheduled payment, the termination date for the crop year
prior to the crop year in which you failed to make the scheduled
payment (for this purpose only, the crop year will start the day after
the termination date and end on the next termination date, for example,
if the termination date is November 30 and you fail to make a payment
on November 15, 2025, your policy will terminate on November 30, 2024,
for the 2025 crop year).
* * * * *
(4) If cancellation, voidance, or termination of insurance coverage
occurs for any reason, including but not limited to indebtedness,
suspension, debarment, disqualification, cancellation by you or us, or
violation of the controlled substance provisions of the Food Security
Act of 1985, a new application must be filed for the crop.
(i) Insurance coverage will not be provided if you are ineligible
under the contract or under any Federal statute or regulation.
(ii) After you become eligible for crop insurance, if you want to
obtain coverage for your crops, you must submit a new application on or
before the sales closing date for the crop (since applications for crop
insurance cannot be accepted after the sales closing date, if you make
any payment after the sales closing date, you cannot apply for
insurance until the next crop year).
(5) For example, for the 2025 crop year, if crop A, with a
termination date of October 31, 2024, and crop B, with a termination
date of March 15, 2025, are insured and you do not pay the premium for
crop A by the termination date, you are ineligible for crop insurance
as of October 31, 2024, and crop A's policy is terminated as of that
date. Crop B's policy does not terminate until March 15, 2025, and an
indemnity for the 2024 crop year may still be owed. If you enter into a
written payment agreement on September 25, 2025, the earliest date by
which you can obtain crop insurance for crop A is to apply for crop
insurance by the October 31, 2025, sales closing date and for crop B is
to apply for crop insurance by the March 15, 2026, sales closing date.
If you fail to make a payment that was scheduled to be made on April 1,
2026, your policy will terminate as of October 31, 2025, for crop A,
and March 15, 2026, for crop B, and no indemnity, prevented planting
payment, or replanting payment will be due for that crop year for
either crop. You will not
[[Page 54536]]
be eligible to apply for crop insurance for any crop until after the
amounts owed are paid in full or you have your debts discharged in
bankruptcy.
* * * * *
3. Insurance Guarantees, Coverage Levels, and Prices
* * * * *
(c) * * *
(5) * * *
(ii) For the harvest price:
(A) Notice will be provided on RMA's website;
(B) The harvest price will equal the projected price; and
(C) Your premium will be recalculated as though you had elected
yield protection. Any premium previously paid exceeding the new amount
will be returned to you.
* * * * *
(f) * * *
(1) * * *
(ii) If you are an insured who transferred your policy to us for
the current crop year, you may, without penalty, report your completed
and signed production report for the prior crop year to us on or before
the production reporting date instead of providing a completed and
signed production report to your previous insurance provider by the
insured's production reporting date.
* * * * *
4. Contract Changes
* * * * *
(b) Any changes in policy provisions, amounts of insurance, premium
rates, program dates, price elections or the Commodity Exchange Price
Provisions, if applicable, can be viewed on RMA's website not later
than the contract change date contained in the Crop Provisions except:
(1) As specified in section 3; or
(2) To correct clear errors (for example, the price for oats was
announced at $25.00 per bushel instead of $2.50 per bushel or the final
planting date should be May 10 but the final planting date in the
Special Provisions states August 10).
* * * * *
7. Annual Premium and Administrative Fees
* * * * *
(g) Additional premium subsidy--If you qualify as a beginning
farmer or rancher, or veteran farmer or rancher, the premium subsidy
that you would otherwise receive will be increased, unless otherwise
specified in the Special Provisions. If you qualify as:
(1) A beginning farmer or rancher, your premium subsidy will be
increased by:
(i) 15 percentage points for the first through second crop years;
(ii) 13 percentage points for the third crop year;
(iii) 11 percentage points for the fourth crop year; and
(iv) 10 percentage points for the fifth through tenth crop years;
(2) A veteran farmer or rancher, your premium subsidy will be
increased by 10 percentage points; or
(3) Both a beginning farmer or rancher and a veteran farmer or
rancher, your premium subsidy will equal that of the beginning farmer
or rancher, which is equivalent or higher.
* * * * *
17. Prevented Planting
* * * * *
(f) * * *
(8) * * *
(ii) Once any acreage does not satisfy the requirements in section
17(f)(8)(i)(E), such acreage will be considered physically unavailable
for planting until the acreage has been planted to a crop in accordance
with 17(f)(8)(i)(E) for 2 consecutive crop years.
* * * * *
18. Written Agreements
* * * * *
(e) * * *
(2) * * *
(ii) 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 or Special Provisions do not provide a cancellation date for
the county, the cancellation date for the requested crop or other
insurable crops with similar agronomic conditions that have similar
final planting and harvesting dates will be applicable); or
* * * * *
(f) * * *
(2) * * *
(ii) * * *
(C) If you (or anyone with a substantial beneficial interest in
you) have at least 1 year of production records, but less than 3 years
of production records, for the crop in the county or area but have
production records for a similar crop in the county or area such that
the combination of both sets of records results in at least 3 years of
production records, you must provide the information required in
sections 18(f)(2)(i)(A) and (B) for the years you (or anyone with a
substantial beneficial interest in you) planted the crop (or produced a
crop if the crop is a perennial crop) in the county or area and the
information required in sections 18(f)(2)(ii)(A) and (B) regarding the
similar crop for the remaining years; and
* * * * *
[For Reinsured Policies]
20. Mediation, Arbitration, Appeal, Reconsideration, and
Administrative and Judicial Review
(a) * * *
(1) * * *
(ii) An arbitrator does not have the authority to:
(A) Interpret the policy or FCIC procedures; or
(B) Disregard or fail to comply with a final agency determination
or FCIC interpretation issued in accordance with 7 CFR part 400,
subpart X. An arbitration award that is inconsistent with section 20
may be appealed in accordance with the FAA.
* * * * *
(2) Unless the dispute is resolved through mediation, the
arbitrator must provide to you and us a written statement describing
the issues in dispute, the factual findings, the determinations and the
amount and basis for any award and breakdown by claim for any award.
The statement must also include any amounts awarded for interest. The
arbitrator does not have the authority to issue an award that does not
conform to section 20. Failure of the arbitrator to provide such
written statement may be appealed in accordance with the FAA. All
agreements reached through settlement, including those resulting from
mediation, must be in writing and contain at a minimum a statement of
the issues in dispute and the amount of the settlement.
* * * * *
(c) The FAA governs arbitrations initiated under section 20(b)(1)
and any decision rendered in arbitration is binding on you and us
unless vacated, modified, or corrected in accordance with the FAA.
* * * * *
21. Access to Insured Crop and Records, and Record Retention
* * * * *
(b) * * *
(2) All records used to establish the amount of production you
certified on your production reports used to compute your approved
yield for 3 years after the calendar date for the end of the insurance
period for the crop year for which you initially certified such
records, unless such records have already been provided to us. (For
example, if you are a new insured and
[[Page 54537]]
you certify 2017 through 2020 crop year production records in 2021 to
determine your approved yield for the 2021 crop year, you must retain
all records from the 2017 through 2020 crop years through the 2024 crop
year. If you subsequently certify records of the 2021 crop year in 2022
to determine your approved yield for the 2022 crop year, you must
retain the 2021 crop year records through the 2025 crop year and so
forth for each subsequent year of production records certified.); and
* * * * *
34. Units
(a) * * *
(2) * * *
(i) * * *
(A) Two or more sections, if optional units are available by
sections where the insured acreage is located;
(B) Two or more section equivalents, if optional units are
available by section equivalents where the insured acreage is located
or are applicable to the insured acreage;
(C) Two or more FSA farm numbers, if optional units are available
by FSA farm numbers where the insured acreage is located;
(D) Any combination of two or more sections, section equivalents,
or FSA farm numbers, if optional units are available by more than one
of these where the acreage is located or are applicable to the insured
acreage (for example, if a portion of your acreage is located where
optional units are allowed by sections and another portion of your
acreage is located where optional units are allowed by FSA farm
numbers, you may qualify for an enterprise unit based on a combination
of these two parcels);
(E) One section, section equivalent, or FSA farm number that
contains at least 660 planted acres of the insured crop. You may
qualify under this paragraph based only on the type of parcel that is
utilized to establish optional units where your insured acreage is
located (for example, if optional units are available by two or more
sections where the insured acreage is located, you may qualify for an
enterprise unit if you have at least 660 planted acres of the insured
crop in one section);
(F) Two or more units established by written agreement; or
(G) Two or more non-contiguous parcels of land, if optional units
by non-contiguous parcels of land are allowed by the Crop Provisions or
Special Provisions and optional units are available where the insured
acreage is located;
* * * * *
(3) Whole-Farm Unit--For a whole-farm unit:
* * * * *
36. Yield Options
* * * * *
(a) * * *
(1) * * *
(i) Each election made in section 36(a)(1) must be made on or
before the production reporting date for the insured crop and each such
election will remain in effect for succeeding crop years unless
canceled by the production reporting date for the succeeding crop year.
If you cancel an election, the actual yield will be used in the APH
database. For example, if you elected to substitute yields in your APH
database for the 2024 and 2025 crop years, for any subsequent crop
year, you can elect to cancel the substitution for either or both crop
years.
(ii) Each excluded actual yield will be replaced with a yield equal
to 60 percent of the applicable transitional yield for the crop year in
which the yield is being replaced, unless you qualify as a beginning
farmer or rancher, or veteran farmer or rancher, in which case the
excluded actual yield will be replaced with a yield equal to 80 percent
of the applicable transitional yield for the crop year in which the
yield is being replaced. (For example, if you elect to exclude a 2024
crop year actual yield, the transitional yield in effect for the 2024
crop year in the county will be used. If you also elect to exclude a
2025 crop year actual yield, the transitional yield in effect for the
2025 crop year in the county will be used.) The replacement yields will
be used in the same manner as actual yields for the purpose of
calculating the approved yield.
* * * * *
0
15. Amend Sec. 457.104 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Cotton Crop Provisions'';
0
b. In the definitions of ``Planted acreage'' and ``Production guarantee
(per acre)'', remove the word ``contained'';
0
c. In section 2, revise the section heading;
0
d. Revise section 4;
0
e. In section 6, in the introductory text, remove the words ``the
provisions of'';
0
f. In section 7, revise paragraph (b);
0
g. In section 8:
0
1. In the introductory text, remove the words ``the provisions of'';
and
0
2. In paragraph (d), remove the word ``meaures'' and add ``measures''
in its place;
0
h. In section 10:
0
1. Revise paragraph (b)(6) and the example paragraphs between
paragraphs (b)(6) and (c);
0
2. In paragraph (c)(1)(iii), remove the word ``subsection'' and add
``section'' in its place;
0
3. In paragraph (c)(1)(iv)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place and remove the words ``to count)'' and
add ``to count.)'' in their place; and
0
4. Revise paragraph (d); and
0
i. In section 11, in paragraph (a), remove the words ``the provisions
of.''
The revisions read as follows:
Sec. 457.104 Cotton crop insurance provisions.
The Cotton Crop Insurance Provisions for the 2026 and succeeding
crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Cotton Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Cotton Crop Provisions and corresponding Commodity
Exchange Price Provisions will be attached to and made part of the
Common Crop Insurance Policy, Basic Provisions (Basic Provisions)
subject to the terms and conditions in your policy.
* * * * *
2. Insurance Guarantees, Coverage Levels, and Prices
* * * * *
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are specified in the Special
Provisions.
* * * * *
7. Insurance Period
* * * * *
(b) In accordance with section 11 of the Basic Provisions, the
calendar date for the end of the insurance period is specified in the
Special Provisions.
* * * * *
10. Settlement of Claim
* * * * *
(b) * * *
(6) Multiplying the result of section 10(b)(5) by your share.
Example for Section 10(b)
You have 100 percent share in 50 acres of cotton in the unit with a
production guarantee (per acre) of 525 pounds, your projected price is
$.75 per pound, your harvest price is $.80 per
[[Page 54538]]
pound, and your production to count is 25,000 pounds.
If you elected yield protection:
(1) 50 acres x (525-pound production guarantee (per acre) x $.75
per pound projected price) = $19,687.50 value of the production
guarantee;
(2) Not applicable;
(3) 25,000-pound production to count x $.75 per pound projected
price = $18,750.00 value of the production to count;
(4) Not applicable;
(5) $19,687.50-$18,750.00 = $937.50;
(6) $937.50 x 1.000 share = $938.00 indemnity; or
If you elected revenue protection:
(1) 50 acres x (525-pound production guarantee (per acre) x $.80
per pound harvest price) = $21,000.00 revenue protection guarantee;
(2) Not applicable;
(3) 25,000-pound production to count x $.80 per pound harvest price
= $20,000.00 value of the production to count;
(4) Not applicable;
(5) $21,000.00-$20,000.00 = $1,000.00;
(6) $1,000.00 x 1.000 share = $1,000.00 indemnity payment.
End of example.
* * * * *
(d) Mature white cotton may be adjusted for quality when production
has been damaged by insured causes. Such production to count will be
reduced if Price A is less than 90 percent of Price B.
(1) Price B will be established by adding the current year's Farm
Service Agency (FSA) premiums or discounts associated with the
predominant cotton quality characteristics contained in the Special
Provisions to the current year's FSA Upland Cotton National Average
Loan Rate, or as specified in the Special Provisions.
(2) Price A is defined as the loan value per pound for the bale
determined in accordance with the FSA Schedule of Premiums and
Discounts for the applicable crop year, or as specified in the Special
Provisions.
(3) If eligible for adjustment, the amount of production to count
will be determined by multiplying the number of pounds of such
production by the factor derived from dividing Price A by Price B.
* * * * *
0
16. Amend Sec. 457.109 as follows:
0
a. In the regulation heading, remove the words ``Beet Crop Insurance
Provisions'' and add ``beet crop insurance provisions'' in their place;
0
b. Revise the introductory text and the undesignated text at the
beginning of the ``Sugar Beet Crop Provisions'';
0
c. In section 1:
0
1. Remove the definition of ``Crop year'';
0
2. In the definition of ``Planted acreage'', remove the word
``contained''; and
0
3. In the definition of ``Practical to replant'', remove the words ``in
section 1 of the'' and add ``in the'' in their place;
0
d. In section 2, remove the word ``section 34'' and add ``section
34(b)'' in its place;
0
e. In section 3:
0
1. In paragraph (b)(1) introductory text, remove the text ``(60%)'';
and
0
2. In paragraph (b)(2), remove the text ``(100%)'';
0
f. In section 4, remove the words ``the provisions of'', and remove the
word ``states'' and add ``States'' in its place;
0
g. In section 5, remove the words ``August 31 for California and March
15 for all other states'' and add ``specified in the Special
Provisions'' in their place;
0
h. In section 8, in paragraphs (b)(1) and (b)(4), remove the words ``of
these Crop Provisions'' wherever they appear;
0
i. In section 9, in the introductory text, remove the words ``the
provisions of'';
0
j. In section 11, in the introductory text, remove the words ``the
provisions of'';
0
k. In section 12:
0
1. Revise the section heading; and
0
2. In paragraph (a), remove the text ``(90%)'';
0
l. In section 14:
0
1. In paragraph (b)(1), remove the words ``production guarantee'' and
add ``production guarantee (per acre)'' in their place;
0
2. Revise paragraph (c)(1)(iv); and
0
3. In paragraph (c)(1)(v)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place, and remove the words ``to count)'' and
add ``to count.)'' in their place;
0
m. In section 18, in paragraphs (b)(5)(i), (ii), and (iii), remove the
word ``unit'' wherever it appears and add ``applicable APH database''
in its place.
The revisions read as follows:
Sec. 457.109 Sugar beet crop insurance provisions.
The Sugar Beet Crop Insurance Provisions effective for the 2026 and
succeeding crop years in States with a November 30 contract change date
and for the 2027 and succeeding crop years in all other States, are as
follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Sugar Beet Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Sugar Beet Crop Provisions will be attached to and made
part of the Common Crop Insurance Policy, Basic Provisions subject to
the terms and conditions in your policy.
* * * * *
12. Replanting Payment
* * * * *
14. Settlement of Claim
* * * * *
(c) * * *
(1) * * *
(iv) Only appraised production exceeding the difference between the
first and final stage production guarantee for acreage that does not
qualify for the final stage guarantee will be counted, except that all
production from acreage subject to section 14(c)(1)(i) and (ii) will be
counted; and
* * * * *
0
17. Amend Sec. 457.125 as follows:
0
a. Revise the undesignated text preceding section 1;
0
b. In section 1:
0
1. Remove the definition of ``Nurse crop (companion crop)''; and
0
2. In the definition of ``Value per pound'', remove the words ``in
excess of'' and add ``exceeding'' in their place;
0
c. Revise sections 2 through 4;
0
d. In section 5, in the introductory text, remove the words ``(Insured
Crop)'';
0
e. In section 6:
0
1. In the introductory text, remove the words ``the provisions of
section 9 (Insurable Acreage)'' and add ``section 9'' in their place;
and
0
2. In paragraph (a), remove the words ``we agree in writing'' and add
``by written agreement'' in their place;
0
f. In section 7, remove the words ``the provisions of section 11
(Insurance Period)'' and add ``section 11'' in their place;
0
g. In section 8, in the introductory text, remove the words ``the
provisions of section 12 (Causes of Loss)'' and add ``section 12'' in
their place;
0
h. In section 9:
0
1. In paragraph (a), remove the words ``(Replanting Payment)''; and
0
2. Revise paragraph (b);
0
i. In section 10, remove the words ``(Duties in the Event of Damage or
Loss)''; and
0
j. In section 11:
0
1. Revise paragraph (b)(7);
0
2. Add example paragraphs between (b)(7) and (c);
0
3. In paragraph (c)(1)(iv)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place and remove the words ``to count)'' and
add ``to count.)'' in their place;
[[Page 54539]]
0
4. In paragraphs (d)(1) and (2)(ii), remove the words ``in excess of''
wherever they appear and add ``exceeding'' in their place;
0
5. Remove paragraph (d)(3)(ii);
0
6. Redesignate paragraphs (d)(3)(iii) through (v) as paragraphs
(d)(3)(ii) through (iv);
0
7. In newly redesignated paragraph (d)(3)(iii)(C), remove the words
``is in compliance'' and add ``complies'' in their place;
0
8. In paragraph (d)(4) introductory text, remove the words ``in
sections 11(d) (2) and (3)'' and add ``in sections 11(d)(2) and (3)''
in their place; and
0
9. In paragraph (d)(4)(ii)(A)(3), remove the word ``one'' and add ``1''
in its place.
The revisions and additions read as follows:
Sec. 457.125 Safflower crop insurance provisions.
The Safflower Crop Insurance Provisions for the 2026 and succeeding
crop years for counties with a contract change date of November 30, and
for the 2027 and succeeding crop years for counties with a contract
change date of August 31, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Safflower Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Safflower Crop Provisions will be attached to and made
part of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
* * * * *
2. Insurance Guarantees, Coverage Levels, and Prices
In addition to the requirements of section 3 of the Basic
Provisions (Sec. 457.8), you may select only 1 price election for all
the safflower in the county insured under this policy unless the
Special Provisions provide different price elections by type, in which
case you may select 1 price election for each safflower type designated
in the Special Provisions. The price elections you choose for each type
must have the same percentage relationship to the maximum price offered
by us for each type. For example, if you choose 100 percent of the
maximum price election for 1 type, you must also choose 100 percent of
the maximum price election for all other types.
3. Contract Changes
In accordance with section 4 of the Basic Provisions (Sec. 457.8),
the contract change date is August 31 preceding the cancellation date
for California, and November 30 preceding the cancellation date for all
other States.
4. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are specified in the Special
Provisions.
* * * * *
9. Replanting Payment
* * * * *
(b) The amount of the replanting payment per acre will be the
lesser of the actual cost of replanting or:
(1) The following values:
(i) The percentage of production guarantee (per acre) stated in the
actuarial documents multiplied by your production guarantee (per acre);
or
(ii) The number of pounds (per acre) stated in the actuarial
documents;
(2) Multiplied by your price election; and
(3) Multiplied by your insured share.
* * * * *
11. Settlement of Claim
* * * * *
(b) * * *
(7) Multiplying the result in section 11(b)(6) by your share.
Example for Section 11(b)
You have a 100 percent share in 400 acres of safflower in the unit,
with a 700-pound production guarantee (per acre) and a price election
of $0.25 per pound. Due to insurable causes, you are only able to
harvest 200,000 pounds of safflower. Your indemnity would be calculated
as follows:
(1) 400 acres x 700 pounds = 280,000 pounds production guarantee;
(2) 280,000 pounds x $0.25 per pound price election = $70,000 value
of the production guarantee;
(3) $70,000 value of the production guarantee;
(4) 200,000 pounds x $0.25 per pound = $50,000 value of production
to count;
(5) $50,000 value of production to count;
(6) $70,000-$50,000 = $20,000 loss; and
(7) $20,000 x 1.000 share = $20,000 indemnity payment.
End of example.
* * * * *
0
18. Amend Sec. 457.128 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Guaranteed Production Plan of Fresh Market Tomato
Crop Provisions'';
0
b. In section 1:
0
1. In the definition of ``Acre'', remove the words ``Forty-three
thousand five hundred sixty (43,560)'' and add ``43,560'' in their
place and remove the word ``six'' wherever it appears and add ``6'' in
its place;
0
2. In the definition of ``Mature green tomato'', redesignate paragraphs
(a) through (d) as paragraphs (1) through (4);
0
3. Revise the definition of ``Potential production''; and
0
4. In the definition of ``Practical to replant'', remove the words ``of
``Practical to replant'' contained in section 1 of'' and add ``in'' in
their place;
0
c. In section 2:
0
1. Revise paragraph (b); and
0
2. Add paragraph (c);
0
d. In section 3:
0
1. In paragraph (b) introductory text, remove the words ``production
guarantees per acre'' and add ``production guarantees (per acre)'' in
their place;
0
2. In paragraph (b)(2), remove the word ``states'' and add ``States''
in its place;
0
3. In paragraph (c), remove the words ``production guarantee'' and add
``production guarantee (per acre)'' in their place; and
0
4. In paragraph (d), remove the words ``cherry, roma'' and add
``cherry, grape, roma'' in their place;
0
e. Revise section 5;
0
f. In section 6, in paragraph (a), remove the words ``the provisions
of'';
0
g. In section 7, remove the words ``contained in the Basic Provisions
(Sec. 457.8), for'' and add ``in the Basic Provisions (Sec. 457.8)
for'' in their place and remove the words ``production guarantee'' and
add ``production guarantee (per acre)'' in their place;
0
h. In section 8, in paragraph (e)(4), remove the words ``Cherry, roma''
and add ``Cherry, grape, roma'' in their place;
0
i. In section 9:
0
1. In paragraph (a) introductory text, remove the words ``the
provisions of''; and
0
2. In paragraphs (a)(2)(i)(B) and (b), remove the words ``one of the
three'' wherever they appear and add ``1 of the 3'' in their place;
0
j. In section 10:
0
1. In the introductory text, remove the words ``the provisions of'';
and
0
2. Revise paragraph (b)(7);
0
k. In section 11, in paragraph (a) introductory text, remove the words
``the provisions of'';
0
l. In section 12:
0
1. In paragraph (a), remove the words ``in excess of'' and add
``exceeding'' in their place;
[[Page 54540]]
0
2. Revise paragraph (b); and
0
3. In paragraph (c), remove the words ``contained in section 13'' and
add ``in section 13'' in their place;
0
m. In section 13:
0
1. In paragraphs (b)(1) and (c)(1)(i) introductory text, remove the
words ``production guarantee'' wherever they appear and add
``production guarantee (per acre)'' in their place;
0
2. Revise paragraph (c)(1)(iii)(A);
0
3. In paragraph (c)(1)(iii)(B), remove the words ``cherry, roma'' and
add ``cherry, grape, roma,'' in their place;
0
4. In paragraph (c)(1)(v)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place and remove the words ``to count)'' and
add ``to count.)'' in their place;
0
5. Revise paragraph (c)(2)(ii)(A); and
0
6. In paragraph (c)(2)(ii)(B), remove the words ``cherry, roma'' and
add ``cherry, grape, roma'' in their place.
The revisions read as follows:
Sec. 457.128 Guaranteed production plan of fresh market tomato crop
insurance provisions.
The Guaranteed Production Plan of Fresh Market Tomato Crop
Insurance Provisions for the 2026 and succeeding crop years for all
counties with a contract change date of December 31, and for the 2027
and succeeding crop years for all counties with a contract change date
of September 30, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Guaranteed Production Plan of Fresh Market Tomato Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Guaranteed Production Plan of Fresh Market Tomato Crop
Provisions will be attached to and made part of the Common Crop
Insurance Policy, Basic Provisions (Basic Provisions) subject to the
terms and conditions in your policy.
1. Definitions
* * * * *
Potential production. The number of cartons per acre of mature
green or ripe tomatoes that the tomato plants would have produced by
the end of the insurance period:
(1) With a classification size of 6 x 7 (2\8/32\ inch minimum
diameter) or larger for all types except cherry, grape, roma, or plum;
or
(2) Meeting the criteria specified in the Special Provisions for
cherry, grape, roma, or plum types.
* * * * *
2. Unit Division
* * * * *
(b) Optional units may be established by:
(1) Land location as provided in section 34(c)(1) of the Basic
Provisions;
(2) Organic or non-organic farming practices as provided in section
34(c)(3) of the Basic Provisions; or
(3) Combination of land location and organic farming practices as
provided in section 34(c)(4) of the Basic Provisions.
(c) Optional units by irrigation practice as provided in 34(c)(2)
of the Basic Provisions are not applicable.
* * * * *
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are specified in the Special
Provisions.
* * * * *
10. Insurance Period
* * * * *
(b) * * *
(7) The date shown in the Special Provisions.
* * * * *
12. Replanting Payment
* * * * *
(b) The maximum amount of the replanting payment per acre will be
the lesser of:
(1) Your actual cost of replanting; or
(2) The number of cartons (per acre) stated in the actuarial
documents multiplied by your:
(i) Price election; and
(ii) Insured share.
* * * * *
13. Settlement of Claim
* * * * *
(c) * * *
(1) * * *
(iii) * * *
(A) With a classification size of 6 x 7 (2\8/32\ inch minimum
diameter) or larger and that would grade 85 percent or better U.S. No.
1 for types other than cherry, grape, roma, or plum; or
* * * * *
(2) * * *
(ii) * * *
(A) That grades 85 percent or better U.S. No. 1 with a
classification size of 6 x 7 (2\8/32\ inch minimum diameter) or larger
for all types except cherry, grape, roma, or plum; or
* * * * *
0
19. Amend Sec. 457.137 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Green Pea Crop Provisions'';
0
b. In section 1:
0
1. In the definition of ``Good farming practices'', remove the words
``of ``good farming practices'';
0
2. In the definition of ``Pod type'', remove the text ``e.g.'' and add
``for example'' in its place;
0
3. In the definition of ``Practical to replant'', remove the words ``of
``practical to replant'' in the'' and add ``in the'' in their place;
0
4. In the definition of ``Price election'', remove the words ``of
``price election''''; and
0
5. Revise the definitions of ``Processor contract'' and ``Production
guarantee (per acre)'';
0
c. In section 2:
0
1. In paragraph (a)(1)(ii), remove the words ``in excess of'' and add
``exceeding'' in their place;
0
2. In paragraph (a)(2)(i), remove the word ``Section'' and add
``section'' in its place;
0
3. Add paragraph (a)(3); and
0
4. In paragraph (b), remove the word ``Section'' and add ``section'' in
its place;
0
d. Revise section 5;
0
e. In section 10, in paragraph (a)(4), remove the words ``not
covered)'' and add ``not covered.)'' in their place;
0
f. In section 12:
0
1. Revise paragraph (b)(7) and the example paragraphs between
paragraphs (b)(7) and (c); and
0
2. In paragraph (c)(1)(iv)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place and remove the words ``to count)'' and
add ``to count.)'' in their place.
The revisions and additions read as follows:
Sec. 457.137 Green pea crop insurance provisions.
The Green Pea Crop Insurance Provisions for the 2026 and succeeding
crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Green Pea Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Green Pea Crop Provisions will be attached to and made
part of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
1. Definitions
* * * * *
Processor contract.
(1) A written contract between the producer and a processor,
containing at a minimum:
[[Page 54541]]
(i) The producer's commitment to plant and grow green peas, and to
deliver the green pea production to the processor;
(ii) The processor's commitment to purchase all the production
stated in the processor contract; and
(iii) A base contract price.
(2) Multiple contracts with the same processor that specify amounts
of production will be considered as a single processor contract unless
the contracts are for different types of green peas.
Production guarantee (per acre). In accordance with the definition
in the Basic Provisions, the production guarantee (per acre) is
specified in pounds. For shell type peas, the weight will be determined
after shelling.
* * * * *
2. Unit Division
(a) * * *
(3) Optional units by land location as provided in section 34(c)(1)
of the Basic Provisions and irrigation practice as provided in section
34(c)(2) of the Basic Provisions are not applicable.
* * * * *
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are specified in the Special
Provisions.
* * * * *
12. Settlement of Claim
* * * * *
(b) * * *
(7) Multiplying the result of section 12(b)(6) by your share.
Example for Section 12(b)
You have a 100 percent share in 100 acres of shell type green peas
in the unit, with a 4,000-pound production guarantee (per acre) and a
price election of $0.15 per pound. You are only able to harvest 200,000
pounds. Your indemnity would be calculated as follows:
(1) 100 acres x 4,000 pound production guarantee (per acre) =
400,000 pound production guarantee;
(2) 400,000 pounds x $0.15 per pound price election = $60,000.00
value of the production guarantee;
(3) Not applicable;
(4) 200,000 pounds x $0.15 per pound price election = $30,000.00
value of production to count;
(5) Not applicable;
(6) $60,000.00-$30,000.00 = $30,000.00 loss; and
(7) $30,000.00 x 1.000 share = $30,000.00 indemnity payment.
You also have a 100 percent share in 100 acres of pod type green
peas in the same unit, with a 5,000-pound production guarantee (per
acre) and a price election of $0.15 per pound. You are only able to
harvest 450,000 pounds. Your total indemnity for both shell type and
pod type green peas would be calculated as follows:
(1) 100 acres x 4,000 pound production guarantee (per acre) =
400,000 pound production guarantee for the shell type, and 100 acres x
5,000 pound production guarantee (per acre) = 500,000 pound production
guarantee for the pod type;
(2) 400,000 pound production guarantee x $0.15 per pound price
election = $60,000.00 value of the production guarantee for the shell
type, and 500,000 pound production guarantee x $0.15 per pound price
election = $75,000.00 value of the production guarantee for the pod
type;
(3) $60,000.00 + $75,000.00 = $135,000.00 total value of the
production guarantee;
(4) 200,000 pounds x $0.15 per pound price election = $30,000.00
value of production to count for the shell type; and 450,000 pounds x
$0.15 per pound = $67,500.00 value of production to count for the pod
type;
(5) $30,000.00 + $67,500.00 = $97,500.00 total value of production
to count;
(6) $135,000.00-$97,500.00 = $37,500.00 loss; and
(7) $37,500.00 loss x 1.000 share = $37,500.00 indemnity payment.
End of example.
* * * * *
0
20. Amend Sec. 457.139 as follows:
0
a. Revise the undesignated text preceding section 1;
0
b. In section 1:
0
1. In the definition of ``acre'', remove the words ``six feet''
wherever they appear and add the words ``6 feet'' in their place;
0
2. In the definition of ``crop year'' remove the word ``contained'';
and
0
3. In the definition of ``direct marketing'', remove the words
``contained in section 1 of'' and add ``in'' in their place;
0
c. In section 2:
0
1. Revise paragraph (b); and
0
2. Add paragraph (c);
0
d. In section 3, in paragraph (c), remove the word ``contained'';
0
e. In section 5, remove the words ``July 31'' and add ``specified in
the Special Provisions'' in their place;
0
f. In section 7, remove the words ``contained in section 7'' and add
``in section 7'' in their place and remove the text ``e.g.'' and add
``for example'' in its place;
0
g. In section 8:
0
1. In paragraph (b)(5) introductory text, remove the words ``one of the
three'' and add ``1 of the 3'' in their place; and
0
2. In paragraph (c)(3), remove the words ``direct marketing'' and add
``direct marketing, unless otherwise provided by Special Provisions''
in their place;
0
h. In section 9, in paragraph (a), remove the words ``section 9 of the
Basic Provisions, that'' and add ``the provisions of section 9 of the
Basic Provisions that'' in their place and remove the words ``one of
the three'' and add ``1 of the 3'' in their place;
0
i. In section 12:
0
1. Revise the section heading; and
0
2. Revise paragraphs (a) and (b);
0
j. In section 13, in the introductory text, remove the word
``contained'';
0
k. In section 14, in paragraph (c)(2)(iv)(A), remove the words ``be
used)'' and add ``be used.)'' in their place;
0
l. In section 16, revise paragraph (b) introductory text.
The revisions and additions read as follows:
Sec. 457.139 Fresh market tomato (dollar plan) crop insurance
provisions.
The Fresh Market Tomato (Dollar Plan) Crop Insurance Provisions for
the 2027 and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Fresh Market Tomato (Dollar Plan) Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Fresh Market Tomato (Dollar Plan) Crop Provisions will
be attached to and made part of the Common Crop Insurance Policy, Basic
Provisions (Basic Provisions), subject to the terms and conditions in
your policy.
* * * * *
2. Unit Division
* * * * *
(b) Optional units may be established by:
(1) Land location as provided in section 34(c)(1) of the Basic
Provisions;
(2) Organic or non-organic farming practices as provided in section
34(c)(3) of the Basic Provisions; or
(3) Combination of land location and organic farming practices as
provided in section 34(c)(4) of the Basic Provisions.
(c) Optional units by irrigation practice as provided in 34(c)(2)
of the Basic Provisions are not applicable.
* * * * *
[[Page 54542]]
12. Replanting Payment
(a) In accordance with section 13 of the Basic Provisions, a
replanting payment is allowed if the crop is damaged by an insurable
cause of loss to the extent that more than 50 percent of the plant
stand will not produce tomatoes and it is practical to replant.
(b) The maximum amount of the replanting payment per acre will be
the lesser of:
(1) Your actual cost of replanting; or
(2) The dollar amount (per acre) stated in the actuarial documents
multiplied by your insured share.
* * * * *
16. Minimum Value Option
* * * * *
(b) In lieu of sections 14(c)(3) and (4), the total value of
harvested production will be determined as follows:
* * * * *
0
21. Amend Sec. 457.148 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Fresh Market Pepper Crop Provisions'';
0
b. In section 1:
0
1. Revise the definition of ``Crop year'';
0
2. In the definition of ``Harvest'', remove the words ``of peppers''
and add ``of mature bell peppers'' in their place;
0
3. In the definition of ``Planted acreage'', remove the words
``contained in ;section 1 of the Basic Provisions'' and add ``in the
Basic Provisions'' in their place;
0
4. In the definition of ``Planting period'', remove the words ``fall,
winter or spring-planted peppers'' and add ``spring, summer, fall, or
winter planted peppers'' in their place;
0
5. Revise the definition of ``Practical to replant'';
0
c. In section 2:
0
1. Revise paragraph (b);
0
2. Add paragraph (c);
0
d. In section 3:
0
1. In paragraph (a), remove the words ``(Insurance Guarantees, Coverage
Levels, and Prices for Determining Indemnities)'';
0
2. In paragraph (c), remove the words ``contained in section 3
(Insurance Guarantees, Coverage Levels, and Prices for Determining
Indemnities)'' and add ``in section 3'' in their place;
0
e. Revise sections 4 and 5;
0
f. In section 6, in the introductory text, remove the words ``(Report
of Acreage)'';
0
g. In section 7, remove the words ``contained in section 7 (Annual
Premium and Administrative Fees)'' and add ``in section 7'' in their
place;
0
h. In section 8:
0
1. In the introductory text, remove the words ``(Insured Crop)'';
0
2. In paragraph (c) introductory text, add a colon at the end;
0
3. In paragraph (c)(4), remove the words ``direct marketing'' and add
``direct marketing, unless otherwise allowed by the Special
Provisions'' in their place;
0
i. In section 9:
0
1. In paragraph (a), remove the words ``(Insurable Acreage)'';
0
2. In paragraph (b) introductory text, remove the words ``the
provisions of section 9 (Insurable Acreage)'' and add ``section 9'' in
their place;
0
j. In section 10:
0
1. In the introductory text, remove the words ``the provisions of
section 11 (Insurance Period)'' and add ``section 11'' in their place;
0
2. Revise paragraph (f);
0
k. In section 11:
0
1. In paragraph (a) introductory text, remove the words ``the
provisions of section 12 (Causes of Loss)'' and add ``section 12'' in
their place;
0
2. In paragraph (b) introductory text, remove the words ``(Causes of
Loss)'';
0
l. In section 12:
0
1. Revise the section heading;
0
2. In paragraph (a), remove the words ``(Replanting Payment)'';
0
3. Revise paragraph (b);
0
4. In paragraph (c), remove the words ``contained in section 13
(Replanting Payments)'' and add ``in section 13'' in their place;
0
m. In section 13, in the introductory text, remove the words
``contained in section 14 (Duties in the Event of Damage or Loss)'' and
add ``section 14'' in their place;
0
n. In section 14:
0
1. Revise paragraph (b)(4)(ii); and
0
2. In paragraph (c)(2)(iv)(A), remove the words ``actual production
(If'' and add ``actual production. (If'' in their place and remove the
words ``be used)'' and add ``be used.)'' in their place;
0
o. In section 16, in paragraph (b) introductory text, remove the words
``the provisions contained in''.
The revisions and additions read as follows:
Sec. 457.148 Fresh market pepper crop insurance provisions.
The Fresh Market Pepper Crop Insurance Provisions for the 2026 and
succeeding crop years for all counties with a contract change date of
November 30, and for the 2027 and succeeding crop years for all
counties with a contract change date of April 30, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Fresh Market Pepper Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Fresh Market Pepper Crop Provisions will be attached to
and made part of the Common Crop Insurance Policy, Basic Provisions
(Basic Provisions) subject to the terms and conditions in your policy.
1. Definitions
* * * * *
Crop year. In lieu of the definition in the Basic Provisions, a
period of time that begins on the first day of the earliest planting
period and continues through the end of insurance period for the latest
planting period shown in the Special Provisions in your county. The
crop year is designated by the calendar year in which fresh market
peppers grown during the latest planting period would normally be
harvested.
* * * * *
Practical to replant. In addition to the definition in the Basic
Provisions (Sec. 457.8), we may consider marketing windows when
determining if it is practical to replant.
* * * * *
2. Unit Division
* * * * *
(b) Optional units may be established by:
(1) Land location as provided in section 34(c)(1) of the Basic
Provisions;
(2) Organic or non-organic farming practices as provided in section
34(c)(3) of the Basic Provisions; or
(3) Combination of land location and organic farming practices as
provided in section 34(c)(4) of the Basic Provisions.
(c) Optional units by irrigation practice as provided in 34(c)(2)
of the Basic Provisions are not applicable.
* * * * *
4. Contract Changes
In accordance with section 4 of the Basic Provisions (Sec. 457.8),
the contract change date is April 30 preceding the July 31 cancellation
date and November 30 preceding the March 15 cancellation date.
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions (Sec. 457.8),
the cancellation and termination dates are specified in the Special
Provisions.
* * * * *
[[Page 54543]]
10. Insurance Period
* * * * *
(f) Unless otherwise provided in the Special Provisions, the
calendar date for the end of the insurance period is:
(1) 165 days after the date of direct-seeding or replanting with
seed; or
(2) 150 days after the date of transplanting or replanting with
transplants.
* * * * *
12. Replanting Payment
* * * * *
(b) The maximum amount of the replanting payment per acre will be
the lesser of:
(1) Your actual cost of replanting; or
(2) The dollar amount (per acre) stated in the actuarial documents
multiplied by your insured share.
* * * * *
14. Settlement of Claim
* * * * *
(b) * * *
(4) * * *
(ii) For catastrophic risk protection coverage, the result of
multiplying the total value of production to be counted (see section
14(c)) by the percentage contained in the actuarial documents; and
* * * * *
0
22. Amend Sec. 457.151 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Forage Seeding Crop Provisions'';
0
b. In section 1:
0
1. In the definition of ``Adequate stand'', redesignate paragraphs (a)
and (b) as (1) and (2);
0
2. In the definition of ``Crop year'', remove the words ``The period''
and add ``In lieu of the definition in the Basic Provisions, the
period'' in their place; and
0
3. In the definition of ``Sales closing date'', remove the words
``contained in the Basic'' and add ``in the Basic'' in their place;
0
c. In section 3:
0
1. Remove the period at the end of the section heading; and
0
2. Remove the word ``contained'' in paragraph (c);
0
d. Revise section 5;
0
e. In section 6:
0
1. Remove the period at the end of the section heading; and
0
2. Remove the words ``of the provisions'';
0
f. In section 8:
0
1. Remove the period at the end of the section heading; and
0
2. Remove the words ``the provisions of'';
0
g. In section 9(c), remove the words ``Special Provisions (You'' and
add ``Special Provisions. (You'' in their place and remove the words
``harvest date)'' and add ``harvest date.)'' in their place;
0
h. In section 10, in the introductory text, remove the words ``the
provisions of'';
0
i. In section 11;
0
1. In the introductory text, remove the words ``the provisions
contained in''; and
0
2. In paragraph (a)(4) introductory text, remove the word ``states''
and add ``States'' in its place;
0
j. In section 12, remove the period at the end of the section heading;
0
k. In section 13:
0
1. Remove the period at the end of the section heading; and
0
2. Revise paragraph (b) and the example between paragraph (b) and
section 14.
The revisions read as follows:
Sec. 457.151 Forage seeding crop insurance provisions.
The Forage Seeding Crop Insurance Provisions for the 2026 and
succeeding crop years for all counties with a contract change date of
November 30, and for the 2027 and succeeding crop years for all
counties with a contract change date of April 30, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Forage Seeding Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Forage Seeding Crop Provisions will be attached to and
made part of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
* * * * *
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are specified in the Special
Provisions.
* * * * *
13. Settlement of Claim
* * * * *
(b) Totaling the results in section 13(a).
Example for Section 13
Assume you have a 100 percent share in 30 acres of type A forage in
the unit, with an amount of insurance of $100 per acre. At the time of
loss, the following findings are established: 10 acres had a remaining
stand of 75 percent of an adequate stand or greater. 20 acres had a
remaining stand less than 75 percent but more than 55 percent of an
adequate stand.
You also have a 100 percent share in 20 acres of type B forage in
the unit, with an amount of insurance of $90 per acre. 10 acres had a
remaining stand of 75 percent of an adequate stand or greater. 10 acres
had a remaining stand less than 55 percent of an adequate stand.
Your indemnity would be calculated as follows:
1. 30 acres x $100 per acre = $3,000 amount of insurance for type
A; 20 acres x $90 per acre = $1,800 amount of insurance for type B;
2. 10 acres with 75% of an adequate stand or greater x $100 per
acre = $1,000 for type A; 10 acres with 75% of an adequate stand or
greater x $90 per acre = $900 for type B;
3. 20 acres with less than 75% but greater than 55% of an adequate
stand x $100 per acre x 50 percent = $1,000 for type A; 0 acres with
less than 75% but greater than 55% of an adequate stand x $90 per acre
x 50 percent = $0 for type B;
4. $1,000 + $1,000 = $2,000 reduction for type A; $900 + $0 = $900
reduction for type B;
5. $3,000-$2,000 = $1,000 for type A; $1,800-$900 = $900 for type B
6. $1,000x1.000 share = $1,000 for type A; $900 x 1.000 share =
$900 for type B; and
7. $1,000 + $900 = $1,900 total indemnity.
End of example.
* * * * *
0
23. Amend Sec. 457.161 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Canola and Rapeseed Crop Provisions'';
0
b. In section 1:
0
1. In the definition of ``Canola'', remove the words ``in accordance
with'' and add ``by'' in their place;
0
2. In the definition of ``Latest final planting date'', redesignate
paragraphs (a) through (c) as paragraphs (1) through (3);
0
3. In the definitions of ``Planted acreage'' and ``Prevented
planting'', remove the word ``contained'' wherever it appears; and
0
4. In the definition of ``Price of damaged production'', remove the
words ``of these crop provisions'';
0
c. Revise section 5;
0
d. Revise sections 10(a) and (b);
0
e. In section 12:
0
1. In the Example for section 12(b) between paragraphs (b)(6) and (c),
remove the words ``1,350 pound production guarantee'' wherever it
appears and add ``1,350-pound
[[Page 54544]]
production guarantee (per acre)'' in its place, remove the text
``$17,550.00-$13,260.00'' and add ``$17,550.00-$13,260.00'' in its
place, and remove the text ``$17,550.00-$12,240.00'' and add
``$17,550.00-$12,240.00'' in its place;
0
2. In paragraph (c)(1)(iv)(A), remove the words ``to us (The'' and add
``to us. (The'' in their place and remove the words ``to count)'' and
add ``to count.)'' in their place;
0
3. In paragraph (d)(1), remove the words ``in excess of'' and add
``exceeding'' in their place; and
0
4. In paragraph (d)(3)(iv)(C), remove the words ``is in compliance''
and add ``complies'' in their place.
The revision reads as follows:
Sec. 457.161 Canola and rapeseed crop insurance provisions.
The Canola and Rapeseed Crop Insurance Provisions for the 2026 and
succeeding crop years for counties with a contract change date of
November 30, and for the 2027 and succeeding crop years for counties
with a contract change date of June 30, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Canola and Rapeseed Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Canola and Rapeseed Crop Provisions and corresponding
Commodity Exchange Price Provisions will be attached to and made part
of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
* * * * *
5. Cancellation and Termination Dates
In accordance with section 2 of the Basic Provisions, the
cancellation and termination dates are specified in the Special
Provisions.
* * * * *
10. Replanting Payment
(a) A replanting payment is allowed as follows:
(1) You must comply with all requirements regarding replanting
payments in section 13 of the Basic Provisions;
(2) The insured crop must be damaged by an insurable cause of loss
to the extent that the remaining stand will not produce at least 90
percent of the production guarantee for the acreage; and
(3) The replanted crop must be seeded at a rate sufficient to
achieve a total (undamaged and new seeding) plant population that is
considered appropriate by agricultural experts for the insured crop,
type, and practice.
(b) Your actual cost will not be used to determine your replanting
payment. The amount of the replanting payment per acre will be:
(1) The lesser of the following values:
(i) The percentage of production guarantee (per acre) stated in the
actuarial documents multiplied by your production guarantee (per acre);
or
(ii) The number of pounds (per acre) stated in the actuarial
documents;
(2) Multiplied by your projected price; and
(3) Multiplied by your share.
* * * * *
Richard Fordyce,
Under Secretary, Farm Production and Conservation.
[FR Doc. 2025-21482 Filed 11-26-25; 8:45 am]
BILLING CODE 3410-08-P