[Federal Register Volume 91, Number 62 (Wednesday, April 1, 2026)]
[Rules and Regulations]
[Pages 16151-16156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-06277]
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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. 91, No. 62 / Wednesday, April 1, 2026 / Rules
and Regulations
[[Page 16151]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 400, 402, 407, and 457
[Docket No. FCIC-26-0067]
RIN 0563-AC91
Removal of Regulatory Overreach and Federal Crop Insurance Policy
Provisions
AGENCY: Federal Crop Insurance Corporation, U.S. Department of
Agriculture (USDA).
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is amending its
regulations regarding final agency determinations and interpretations
of the Federal Crop Insurance Act and its associated regulations. This
action is necessary to align agency procedures with Supreme Court
precedent and the Administrative Procedure Act, ensuring that
interpretive determinations are not improperly characterized as
legislative rules. The effect of this rule is to clarify that final
agency determinations are not matters of general applicability and are
binding only on the parties requesting them. Furthermore, this rule
removes provisions that previously attempted to make such
determinations binding on independent adjudicators, such as Federal
judges and the National Appeals Division. This final rule will also
remove Federal crop insurance policy provisions from the Code of
Federal Regulations (CFR). This action modernizes program
administration by discontinuing the practice of codifying detailed
insurance contracts in regulation. Policy terms will continue to be
published through official program materials and made available on the
Risk Management Agency (RMA) website. This change does not affect the
statutory authority of FCIC or the availability of crop insurance
coverage.
DATES: Effective May 1, 2026.
FOR FURTHER INFORMATION CONTACT: Chandra Place; telephone: (816) 926-
3875; email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Statutory Limitation of Section 506(r)
Section 506(r)(1) of the Federal Crop Insurance Act provides:
(1) Procedures Required.--The Corporation shall establish
procedures under which the Corporation will provide a final agency
determination in response to an inquiry regarding the interpretation by
the Corporation of this subtitle or any regulation issued under this
subtitle.
(2) Implementation.--Not later than 180 days after the date of
enactment of this subsection, the Corporation shall issue regulations
to implement this subsection. At a minimum, the regulations shall
establish--
(A) the manner in which inquiries described in paragraph (1) are
required to be submitted to the Corporation; and
(B) a reasonable maximum number of days within which the
Corporation will respond to all inquiries.
(3) Effect of Failure to Timely Respond.--If the Corporation fails
to respond to an inquiry in accordance with the procedures established
pursuant to this subsection, the person requesting the interpretation
of this subtitle or regulation may assume the interpretation is correct
for the applicable reinsurance year.
The Supreme Court of the United States's holding In Perez v.
Mortgage Bankers Ass'n, 575 U.S. 92 (2015), sets forth legal principles
applicable to FCIC's implementation of provision of the FCIC Act. The
Supreme Court noted that:
The APA establishes the procedures federal administrative agencies
use for ``rule making,'' defined as the process of ``formulating,
amending, or repealing a rule.'' Sec. 551(5). ``Rule,'' in turn, is
defined broadly to include ``statement[s] of general or particular
applicability and future effect'' that are designed to ``implement,
interpret, or prescribe law or policy.'' Sec. 551(4).
Section 4 of the APA, 5 U.S.C. 553, prescribes a three-step
procedure for so-called ``notice-and-comment rulemaking.'' First, the
agency must issue a ``[g]eneral notice of proposed rule making,''
ordinarily by publication in the Federal Register. Sec. 553(b).
Second, if ``notice [is] required,'' the agency must ``give interested
persons an opportunity to participate in the rule making through
submission of written data, views, or arguments.'' Sec. 553(c). An
agency must consider and respond to significant comments received
during the period for public comment. See Citizens to Preserve Overton
Park, Inc. v. Volpe, 401 U.S. 402, 416 (1971); Thompson v. Clark, 741
F. 2d 401, 408 (CADC 1984). Third, when the agency promulgates the
final rule, it must include in the rule's text ``a concise general
statement of [its] basis and purpose.'' Sec. 553(c). Rules issued
through the notice-and-comment process are often referred to as
``legislative rules'' because they have the ``force and effect of
law.'' Chrysler Corp. v. Brown, 441 U. S. 281, 302-303 (1979) (internal
quotation marks omitted).
Not all ``rules'' must be issued through the notice-and-comment
process. Section 4(b)(A) of the APA provides that, unless another
statute states otherwise, the notice-and-comment requirement ``does not
apply'' to ``interpretative rules, general statements of policy, or
rules of agency organization, procedure, or practice.'' 5 U.S.C.
553(b)(A). The term ``interpretative rule,'' or ``interpretive rule,''
is not further defined by the APA, and its precise meaning is the
source of much scholarly and judicial debate. See generally Pierce,
Distinguishing Legislative Rules From Interpretative Rules, 52 Admin.
L. Rev. 547 (2000); Manning, Nonlegislative Rules, 72 Geo. Wash. L.
Rev. 893 (2004). We need not, and do not, wade into that debate here.
For our purposes, it suffices to say that the critical feature of
interpretive rules is that they are ``issued by an agency to advise the
public of the agency's construction of the statutes and rules which it
administers.'' Shalala v. Guernsey Memorial Hospital, 514 U.S. 87, 99
(1995) (internal quotation marks omitted). The absence of a notice-and-
comment obligation makes the process of issuing interpretive rules
comparatively easier for agencies than issuing legislative rules. But
that convenience comes at a price: Interpretive rules ``do not have the
force and effect of law and are not accorded that weight in the
adjudicatory process.'' Ibid.
Section 506(r) of the FCIC Act requires FCIC to ``establish
procedures under which the Corporation will
[[Page 16152]]
provide a final agency determination in response to an inquiry
regarding the interpretation by the Corporation of this subtitle or any
regulation issued under this subtitle.'' In issuing regulations to
implement this requirement to ``establish procedures'' went well beyond
establishing procedures and issued regulations that attempted to
elevate final agency determinations to the status of a final rule and
to preclude administrative and even judicial review of certain FCIC
actions.
In implementing section 506(r) through issuance of regulations set
forth in 7 CFR part 400, most notably 7 CFR 400.766(b)(2), FCIC did not
adhere to the basic principles articulated by the Supreme Court and the
provisions of the Administrative Procedure Act in that it attempted to
make certain determinations and interpretations ``binding'', that is, a
final rule, in certain circumstances:
(2) All written final agency determinations issued by FCIC are
binding on all participants in the Federal crop insurance program for
the crop years the policy provisions are in effect. All written FCIC
interpretations and testimony from an employee of RMA are binding on
the parties to the dispute, including the arbitrator, mediator, judge,
or NAD.
The current regulations in subpart X of 7 CFR part 400 contemplate
the issuance of: 1. a ``final agency determination'', which prior to
the issuance of this final rule was considered to be a matter of
general applicability, and 2. a ``FCIC interpretation'' which is
applicable to only ``the parties to the dispute, including the
arbitrator, mediator, judge, or NAD.'' These terms are defined as
follows:
FCIC interpretation. An interpretation of a policy provision not
codified in the Code of Federal Regulations or any procedure used in
the administration of the Federal crop insurance program.
Final agency determination. Matters of general applicability
regarding FCIC's interpretation of provisions of the Act or any
regulation codified in the Code of Federal Regulations, including
certain policy provisions, which are applicable to all participants in
the Federal crop insurance program and the appeals process.
Under the revised regulation, because a final agency determination
issued pursuant to the process required by section 506(r) of the FCIC
Act is not a final rule, it is binding only on the parties that
requested such a determination. In revising these regulations to remove
references to the ``general applicability'' of such determinations,
there is no discernable difference between a ``final agency
determination'' and a ``FCIC interpretation.'' Accordingly, references
to a ``FCIC interpretation'' are deleted. Thus, a determination on a
matter outside the scope of section 506(r) is also binding only on a
party who requested the determination.
FCIC may not issue a regulation that affects the authority of other
Federal agencies and the Federal judiciary. Prior to the issuance of
this final rule, 7 CFR 400.766(b)(2) provided that ``written FCIC
interpretations and testimony from an employee of RMA are binding on .
. . [a Federal] judge . . . .'' There simply is no constitutional basis
for this provision.
The Federal Crop Insurance Reform and Department of Agriculture
Reorganization Act of 1994 established an independent administrative
appeal system within the Department of Agriculture to hear appeals from
certain agency determinations including most FCIC determinations. The
National Appeals Division (NAD) performs this function. Certain agency
determinations are not reviewable by NAD:
(d) Determination of Appealability of Agency Decisions.--If an
officer, employee, or committee of an agency determines that a decision
is not appealable and a participant appeals the decision to the
Director, the Director shall determine whether the decision is adverse
to the individual participant and thus appealable or is a matter of
general applicability and thus not subject to appeal. The determination
of the Director as to whether a decision is appealable shall be
administratively final. (emphasis added).
7 CFR 400.766(b)(3) provides:
All written final agency determinations that are published on RMA's
website are considered matters of general applicability and are not
appealable to NAD. Before obtaining judicial review of any final agency
determination, you must obtain an Administrative Final Determination
from the Director of NAD on the issue of whether the final agency
determination is a matter of general applicability.
This regulatory provision attempts to preclude review by NAD of a
determination that adversely affects a participant in a FCIC program by
posting the determination on a website and asserting that such a
determination is a matter of ``general applicability.'' The revised
regulation makes clear that a final agency determination made pursuant
to section 506(r) or outside of the purview of that section is
applicable only to the party that requested the determination.
Accordingly, such a determination is not a matter of general
applicability, and this regulatory provision is deleted.
Final agency determinations issued prior to April 1, 2026 are not
binding on any party other than the party requesting the determination
unless the determination has been incorporated by reference in a policy
that is in effect on the date of publication of this final rule.
Conflict With Executive Order 14219 and the Definition of Guidance
Executive Order 14219, ``Ensuring Lawful Governance and
Implementing the President's `Department of Government Efficiency'
Deregulatory Initiative,'' requires federal agencies to identify and
de-prioritize regulations that are not based on the ``best reading'' of
their underlying statutes.
Re-Evaluating the 2018 Final Rule Justification
In the 2018 Final Rule (83 FR 66590), RMA justified this binding
authority by stating that Section 506(r) gave ``FCIC express authority
to provide interpretations... and makes them binding on all
participants.'' However, RMA further stated that many policies are not
published as regulations and ``have the force of contracts but not
law.''
The Agency now determines that its previous interpretation--
concluding that the authority to issue an interpretation (granted in
Section 506(r)) inherently includes, for example, the authority to make
that interpretation binding on a judge--is not the ``best reading'' of
the Act. Such a requirement impedes the constitutional role of judges
and the statutory role of NAD to independently evaluate the law and
facts of a case.
To align with Executive Order 14219 and the statutory limits of 7
U.S.C. 1506(r), the Agency is striking the language in 7 CFR
400.766(b)(2) that purports to make FADs and employee testimony binding
on arbitrators, mediators, judges, and the NAD. This change ensures
that while FADs remain a vital tool for program consistency, they
function as persuasive guidance with respect to parties that were not
involved in the FAD request rather than an unlawful restriction on
judicial and quasi-judicial independence. Accordingly, the
determination set forth in the FAD is applicable to only the parties
involved in the request for the FAD and that determination is
appealable to NAD.
[[Page 16153]]
II. Modernization of Public Access and Regulatory Efficiency
History of the FCIC and CFR Publications
Congress established the Federal Crop Insurance Program in 1938
through the Federal Crop Insurance Act, enacted as part of the
Agricultural Adjustment Act of 1938 (Pub. L. 75-430). This legislation
created the FCIC as a wholly owned government corporation to provide
farmers with a means of managing production risk through federally
backed crop insurance. The initial program focused on wheat and
gradually expanded to other crops and regions over subsequent decades.
The creation of FCIC reflected a broader federal policy goal:
stabilizing farm income and promoting agricultural resilience during
periods of economic uncertainty and natural disaster. By offering
insurance against crop losses due to unavoidable perils, the program
aimed to reduce reliance on ad hoc disaster assistance and foster a
more predictable safety net for producers.
From its inception, FCIC operated under statutory authority and
published its insurance policies and related regulations in the CFR.
This practice was consistent with the requirements of the Federal
Register Act of 1935, which established the Federal Register as the
official journal for agency rules and notices, and later the
Administrative Procedure Act of 1946, which formalized rulemaking
procedures, including public notice and comment.
The Supreme Court's decision in Federal Crop Insurance Corp. v.
Merrill (1947) underscored the binding nature of these published
regulations, holding that policies promulgated and published in the
Federal Register were enforceable even against parties lacking actual
knowledge of their terms. This precedent reinforced the principle that
publication in the Federal Register provides constructive notice to all
affected persons.
Over time, however, the approach of codifying detailed insurance
policy terms in the CFR has become increasingly uncommon among federal
programs. This traditional method often leads to delays in implementing
necessary policy adjustments, creates administrative burden in
maintaining frequently updated regulations, and can result in policy
language becoming outdated before rulemaking processes are complete.
Most agencies now issue contractual terms through program materials
rather than rulemaking, as seen in analogous contexts such as FEMA's
flood reinsurance program, allowing for greater agility and
responsiveness to evolving program needs. RMA, which administers FCIC
programs today, is adopting this modernized approach to streamline
operations and reduce regulatory complexity.
Compliance With the E-Government Act of 2002
The E-Government Act of 2002 mandates that agencies use internet-
based information technologies to enhance the ``transparency,
accountability, and accessibility'' of Government information. Section
202 of the Act specifically requires agencies to provide the public
with ``timely and high-quality'' electronic access to information.
By removing voluminous, frequently updated policy provisions from
the static CFR and transitioning them to the RMA website, the Agency
fulfills the Act's mandate to improve the efficiency of service
delivery. The CFR is published annually and updated incrementally,
which creates a significant lag between policy updates and public
notification. In contrast, the RMA's electronic repository provides
real-time, searchable, and version-controlled access to the Common Crop
Insurance Policy (CCIP) and related endorsements, ensuring that
participants have the most current information available.
Reduction of Regulatory Redundancy and Administrative Burden
The Agency determines that the CFR is best utilized for legislative
rules that establish legal rights or obligations. Because individual
crop policies and endorsements function as contracts rather than
legislative rules, their presence in the CFR is not required by the
Administrative Procedure Act. Removing these provisions reduces the
overall size of the CFR, streamlining the regulatory landscape for
small entities and reducing the regulatory thicket that complicates
compliance.
This action does not alter the statutory authority of FCIC or the
availability of crop insurance coverage. Farmers will continue to
access policy terms through designated and easily discoverable official
program documents and the RMA website. RMA commits to maintaining a
comprehensive, user-friendly, and searchable online repository for all
current policy provisions and related materials. Non-policy provisions
related to Federal crop insurance are now consolidated in part 400.
Regulatory Matters
Administrative Procedure Act
FCIC has determined that good cause exists to issue this rule
without prior notice and comment pursuant to 5 U.S.C. 553(b)(3)(B).
This action is a procedural change that solely concerns the location
and method of publication for detailed policy provisions, rather than
their content or substance. The rule itself does not introduce, modify,
or remove any specific insurance coverage, eligibility criteria, or
producer obligations. Instead, it streamlines administrative processes
by relocating existing policy text from the CFR to official program
materials. Therefore, this rule does not alter substantive rights or
obligations of producers or other stakeholders, making prior public
notice and comment unnecessary and impracticable.
Executive Order 12866
The Office of Management and Budget (OMB) has designated this rule
as not significant under Executive Order 12866, ``Regulatory Planning
and Review.'' This determination is based on the finding that this
final rule is primarily administrative and procedural in nature, as it
merely relocates existing policy provisions from the Code of Federal
Regulations to official program materials.
Executive Order 13563
This rule is also consistent with the principles of Executive Order
13563, ``Improving Regulation and Regulatory Review,'' which directs
agencies to assess all costs and benefits of available regulatory
alternatives and select approaches that maximize net benefits. By
removing detailed policy text from the CFR, this action reduces
regulatory burden, streamlines program administration, and allows for
more efficient updates to policy terms, thereby enhancing the overall
effectiveness and responsiveness of the Federal Crop Insurance Program
without diminishing protections or benefits to producers.
Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
The Agency certifies that this rule will not have a significant
economic impact on a substantial number of small entities as defined by
the Regulatory Flexibility Act (RFA). This final rule is administrative
and procedural, focusing solely on the method and location of
publishing Federal crop insurance policy provisions. It does not
establish new substantive requirements, impose new compliance costs, or
alter the
[[Page 16154]]
eligibility, coverage, or financial obligations of producers or
Approved Insurance Providers, many of which are small entities. The
removal of text from the CFR is expected to reduce, rather than
increase, administrative burden for all entities by facilitating more
timely access to current policy terms. Therefore, a Regulatory
Flexibility Analysis is not required.
Congressional Review Act
This rule is not a major rule as defined by the Congressional
Review Act in 5 U.S.C. 804(2). It will not result in an annual effect
on the economy of $100 million or more; a major increase in costs or
prices for consumers, individual industries, Federal, State, or local
government agencies, or geographic regions; or significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign-based enterprises in domestic and export markets.
Accordingly, the Agency has submitted this rule and all required
supporting documentation to the Comptroller General of the United
States and both Houses of Congress prior to its effective date, as
required by 5 U.S.C. 801(a)(1).
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' This Executive Order requires agencies to consult
with tribal officials when rules have tribal implications, impose
substantial direct compliance costs on tribal governments, or affect
the relationship between the Federal Government and Indian tribes. The
Agency has determined that this rule does not have tribal implications
and does not impose substantial direct compliance costs on tribal
governments.
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995, this rule
does not impose any new or revise any existing ``collection of
information'' requirements as defined by the Act that would require
approval by OMB.
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 402
Administrative practice and procedure, Claims, Crop Insurance,
Disaster assistance, Fraud, Penalties, Reporting and recordkeeping
requirements.
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
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation amends 7 CFR parts 400, 402, 407, and 457 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), 1506(o).
0
2. Add subpart A, consisting of Sec. Sec. 400.10 through 400.17, to
read as follows:
Subpart A--Administration of Reinsured Crop Insurance Policies
Sec.
400.10 General statement.
400.11 Applicability.
400.12 Availability of Federal crop insurance.
400.13 Premium rates, amounts of protection, and coverage levels.
400.14 The contract.
400.15 The application and the policy.
400.16 Appropriation contingency.
400.17 Creditors.
Authority: 7 U.S.C. 1506(l), 1506(o).
Sec. 400.10 General statement.
(a) Catastrophic coverage. The Federal Crop Insurance Act, as
amended by the Federal Crop Insurance Reform Act of 1994 (Act),
requires the Federal Crop Insurance Corporation (FCIC) to implement a
catastrophic risk protection plan of insurance that provides a basic
level of insurance coverage to protect producers in the event of a
catastrophic crop loss due to loss of yield or prevented planting, if
provided by FCIC, provided the crop loss or prevented planting is due
to an insured cause of loss specified in the crop insurance policy. The
Catastrophic Risk Protection Endorsement is a continuous endorsement
that is effective in conjunction with a crop insurance policy for the
insured crop. Catastrophic risk protection coverage will be offered
through approved insurance providers if there are a sufficient number
available to service the area. If there are an insufficient number
available, as determined by the Secretary, local offices of the Farm
Service Agency will provide catastrophic risk protection coverage.
(b) Additional coverage. The Act directs FCIC to offer additional
coverage insurance policies that provide a level of coverage greater
than the level available under catastrophic risk protection. These
additional coverage policies may be offered on an individual loss
basis, an area loss basis, or an individual loss basis supplemented
with area loss coverage and may include margin coverage.
Sec. 400.11 Applicability.
The provisions of this part are applicable to each crop for which
Federal crop insurance coverage is available and for which the producer
elects such coverage.
Sec. 400.12 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 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 approved insurance providers
reinsured by FCIC that offer contracts containing the terms and
conditions approved by the FCIC. These contracts are clearly identified
as being reinsured by FCIC. FCIC may offer the contract for the
catastrophic level of coverage 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.
(c) Except as specified in the contract, no person may have in
force more than one Federal crop insurance contract on the same crop
for the same crop year in the same county.
(d) A person that has received a fee or penalty for violation of
the contract must repay all amounts received with interest at the rate
contained in the contract.
(e) An insured whose contract with FCIC or with a company reinsured
by
[[Page 16155]]
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.
(f) All applicants for insurance under the Act must advise the
agent, in writing, at the time of application, of any previous
applications for insurance or policies of insurance under the Act and
the present status of any such applications or insurance.
Sec. 400.13 Premium rates, amounts of protection, and coverage
levels.
(a) The Manager shall establish premium rates, production
guarantees or amounts of insurance, coverage levels, and prices at
which indemnities shall be computed for the insured crop which will be
included in the actuarial documents on file in the applicable agents'
office for the county and which may be changed from year to year.
(b) At the time the application for insurance is made, the
applicant will elect an amount of insurance or a coverage level and
price from among those contained in the actuarial documents for the
crop year.
Sec. 400.14 The contract.
(a) The insurance contract shall become effective upon the
acceptance by FCIC or the insurance provider of a complete, duly
executed application for insurance on a form prescribed or approved by
FCIC.
(b) Changes made in the contract shall not affect its continuity
from year to year.
(c) No indemnity shall be paid unless the insured complies with all
terms and conditions of the contract, except as provided in the policy.
(d) The forms required under this part and by the contract are
available at the office of the insurance provider, or such other
location as specified by FCIC, if applicable.
Sec. 400.15 The application and the policy.
(a) Application for insurance on a form prescribed by FCIC, or
approved by FCIC, must be made by any person who wishes to participate
in the program, to cover such person's share in the insured crop as
landlord, owner-operator, crop ownership interest, or tenant. No other
person's interest in the crop may be insured under an application
unless that person's interest is clearly shown on the application and
unless that other person's interest is insured in accordance with the
procedures of FCIC. The application must be submitted to FCIC or the
reinsured company through the crop insurance agent and must be
submitted on or before the applicable sales closing date on file.
(b) FCIC or the reinsured company may reject or discontinue the
acceptance of applications in any county or of any individual
application upon FCIC's determination that the insurance risk is
excessive.
Sec. 400.16 Appropriation contingency.
Notwithstanding the cancellation date stated in the policy, if
there are insufficient funds appropriated by the Congress to deliver
the crop insurance program, the policy will automatically terminate
without liability.
Sec. 400.17 Creditors.
An interest of a person in an insured crop existing by virtue of a
lien, mortgage, garnishment, levy, execution, bankruptcy, involuntary
transfer or other similar interest shall not entitle the holder of the
interest to any benefit under the contract.
Sec. 400.765 [Amended]
0
3. In 400.765, remove the definitions of ``FCIC interpretation'',
``Final agency determination'', and ``You''.
0
4. Revise Sec. Sec. 400.766 through 400.768 to read as follows:
Sec. 400.766 Basis and applicability.
(a) This subpart sets forth the procedure for a participant to make
a request for a final agency determination with respect to a:
(1) Provision of the Act;
(2) Provision of this part;
(3) Provision of a crop insurance policy re-insured by FCIC;
(4) Handbook, manual, memorandum, and a non-binding guidance
document issued by FCIC; and
(5) Bulletins issued to AIPs.
(b) A final agency determination is applicable to only the party
requesting such a determination.
(c)(1) A request for a final agency determination must be made as
provided in Sec. 400.767(a). FCIC will make a determination on the
request not later than 90 days after receipt of the request.
(2)(i) A request for a administrative review of a final agency
determination made under this section may be made by a producer or
applicant in accordance with subpart J or an appeal may be made to NAD
as provided in part 11 of this Title.
(ii) A request for a administrative review of a final agency
determination made under this section may be made by a reinsured
company.
(3) FCIC will provide a final agency determination with respect to
the crop year in which the request is made. If the crop insurance
policy or other FCIC action was effective in any of the immediately
preceding three crop years, the participant may request a determination
for such years. For example, for a request received in the 2027 crop
year, FCIC will consider a request for a final agency determination for
the 2027, 2026, 2025, and 2024 crop years. A request for an
interpretation that is outside of this timeframe will not be
considered.
(4) If statutory, regulatory, policy provision, or procedure has
changed during the time period for which an interpretation is
requested, FCIC will provide, at the request of the participant, a
final agency determination for each such crop year.
Sec. 400.767 Request for a final agency determination.
(a) A request for a final agency determination must:
(1) Be submitted to the Deputy Administrator as provided on RMA's
website at www.rma.usda.gov through one of the following methods:
(i) 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];
(2) Identify and quote the specific provision in the Act,
regulation, insurance policy provision, or procedure that is the
subject of the request. The request for a final agency determination
may pertain to only such provision unless other provisions are directly
related to the subject provision;
(3) State the crop, crop year(s), and plan of insurance applicable
to the request;
(4) State the name, address, and telephone number of a contact
person for the request;
(5) Contain the requestor's detailed interpretation of the specific
provision of the Act, regulation, crop insurance policy, or procedure
that is the subject of the request; and
(6) Not contain any specific facts, alleged conduct, or
hypothetical situations or the request will be returned to the
requestor without consideration.
(b) If multiple parties are involved in a dispute and have opposing
[[Page 16156]]
interpretations of a matter that FCIC may consider under this subpart,
a joint request for a final agency determination in one request is
encouraged. If multiple insured entities are parties to the dispute,
and the request for a final agency determination applies to all
parties, one request may be submitted for all insured entities. In this
case, the information required in paragraphs (a) and (c) of this
section must be provided for each person.
(c)(1) If the final agency determination will be used in a
judicial, mediation, or arbitration proceeding, the requestor must
identify:
(i) The type of proceeding and the date the proceeding is scheduled
to begin, or the earliest possible date the proceeding would likely
begin if a specific date has not been established; and
(ii) The name, address, telephone number, and or email address of a
contact person for each party to the dispute;
(2) A request for a final agency determination must be submitted
not later than 90 days before the date the mediation, or arbitration
proceeding in which the determination will be used is scheduled to
begin unless the parties elect to use the expedited review process
available under the AAA rules.
(3)(i) FCIC will cooperate to the extent practicable to accommodate
the schedule of a court, mediator, arbitrator, and NAD when a FCIC
matter is pending before such entity. A party requesting a final agency
determination should advise such entity that FCIC acts on requests for
final agency determinations within 90 days but cannot provide an exact
date on which such a determination will be issued.
(ii) During litigation, mediation, arbitration, and appeals before
NAD, if an issue arises and the presiding official determines that a
final agency determination may assist in the resolution of the dispute,
FCIC will honor a request for a final agency determination from such
entity. Such a request should conform, to the extent practicable, to
the provisions of paragraphs (a)(2) through (5) of this section. Such a
determination is not binding on the presiding official and is a
guidance document.
Sec. 400.768 FCIC response.
(a)(1) FCIC will not provide a final agency determination for any
request that contains specific factual information to situations or
cases, such as acts or failures to act of any participant under the
terms of a policy, procedure, or any reinsurance agreement. A properly
filed request will be reviewed by FCIC and a final agency determination
will be issued within 90 days of receipt of the request.
(2) FCIC will not consider any examples or hypotheticals provided
in the request because those are fact-specific and could be construed
as a finding of fact by FCIC. If an example or hypothetical is required
to illustrate an interpretation, FCIC will provide the example in the
interpretation.
(b)(1) If, in the sole judgment of FCIC, the request is unclear,
ambiguous, or incomplete, FCIC will not provide a final agency
determination and the requestor will be notified within 30 days of the
date of receipt by FCIC that the request is unclear, ambiguous, or
incomplete.
(2) When FCIC provides a notification under paragraph (b)(1) of
this section, the 90-day time period for FCIC to provide a response is
stopped on the date FCIC issues the notification. On the date FCIC
receives an acceptable request, FCIC has the balance of the days
remaining in the 90-day time period to provide a final agency
determination. For example, FCIC receives a request for a final agency
determination on January 10. On February 10, FCIC issues a notification
that the request is unclear. On March 10, FCIC receives an acceptable
request. FCIC has 60 days from March 10, the balance of the 90-day time
period, to provide a response.
(c) If FCIC does not provide a response within 90 days of receipt
of a request, the requested interpretation is applicable for the
applicable crop year. Additionally, in the case of a joint request for
a final agency determination when the requestors have differing
interpretations, if FCIC does not provide a response within 90 days,
neither party may assume their interpretation is correct.
(d) When issuing a final agency determination, FCIC will not
evaluate the insured, insurance provider, agent, or loss adjuster as it
relates to their performance in following FCIC policy provisions.
PART 402 [REMOVED AND RESERVED]
0
5. Remove and reserve part 402.
PART 407 [REMOVED AND RESERVED]
0
6. Remove and reserve part 407.
PART 457 [REMOVED AND RESERVED]
0
7. Remove and reserve part 457.
Heather Manzano,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2026-06277 Filed 3-31-26; 8:45 am]
BILLING CODE 3410-08-P