80_FR_73864 80 FR 73637 - Area Risk Protection Insurance (ARPI) Regulations; ARPI Basic Provisions and ARPI Forage Crop Insurance Provisions

80 FR 73637 - Area Risk Protection Insurance (ARPI) Regulations; ARPI Basic Provisions and ARPI Forage Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 80, Issue 227 (November 25, 2015)

Page Range73637-73639
FR Document2015-29652

The Federal Crop Insurance Corporation (FCIC) amends the Area Risk Protection Insurance (ARPI) Regulations; ARPI Basic Provisions and ARPI Forage Crop Insurance Provisions. The intended effect of this action is to meet the goals of the Acreage Crop Reporting Streamlining Initiative (ACRSI), which is a United States Department of Agriculture initiative and required by Agricultural Act of 2014 (2014 Farm Bill), by aligning ARPI Forage Production with the Actual Production History Forage Production Crop Insurance Provisions and to address language contained in section 12305(b)(1)(B) of the 2014 Farm Bill that prohibits FCIC from offering the catastrophic (CAT) level of coverage for any crops or grasses used for grazing. The changes will be effective for the 2017 and succeeding crop years.

Federal Register, Volume 80 Issue 227 (Wednesday, November 25, 2015)
[Federal Register Volume 80, Number 227 (Wednesday, November 25, 2015)]
[Rules and Regulations]
[Pages 73637-73639]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-29652]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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having general applicability and legal effect, most of which are keyed 
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Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / 
Rules and Regulations

[[Page 73637]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 407

[Docket No. FCIC-15-0003]
RIN 0563-AC49


Area Risk Protection Insurance (ARPI) Regulations; ARPI Basic 
Provisions and ARPI Forage Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the Area 
Risk Protection Insurance (ARPI) Regulations; ARPI Basic Provisions and 
ARPI Forage Crop Insurance Provisions. The intended effect of this 
action is to meet the goals of the Acreage Crop Reporting Streamlining 
Initiative (ACRSI), which is a United States Department of Agriculture 
initiative and required by Agricultural Act of 2014 (2014 Farm Bill), 
by aligning ARPI Forage Production with the Actual Production History 
Forage Production Crop Insurance Provisions and to address language 
contained in section 12305(b)(1)(B) of the 2014 Farm Bill that 
prohibits FCIC from offering the catastrophic (CAT) level of coverage 
for any crops or grasses used for grazing. The changes will be 
effective for the 2017 and succeeding crop years.

DATES: This rule is effective November 25, 2015. Written comments and 
opinions on this rule will be accepted until close of business January 
25, 2016. FCIC will consider the comments received and may conduct 
additional rulemaking based on the comments.

ADDRESSES: FCIC prefers that comments be submitted electronically 
through the Federal eRulemaking Portal. You may submit comments, 
identified by Docket ID No. FCIC-15-0003 by any of the following 
methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
    All comments received, including those received by mail, will be 
posted without change to http://www.regulations.gov, including any 
personal information provided, and can be accessed by the public. All 
comments must include the agency name and docket number or Regulatory 
Information Number (RIN) for this rule. For detailed instructions on 
submitting comments and additional information, see http://www.regulations.gov. If you are submitting comments electronically 
through the Federal eRulemaking Portal and want to attach a document, 
we ask that it be in a text-based format. If you want to attach a 
document that is a scanned Adobe PDF file, it must be scanned as text 
and not as an image, thus allowing FCIC to search and copy certain 
portions of your submissions. For questions regarding attaching a 
document that is a scanned Adobe PDF file, please contact the RMA Web 
Content Team at (816) 823-4694 or by email at 
[email protected].
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person submitting 
the comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). You may review the complete 
User Notice and Privacy Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Director, Product 
Management, Product Administration and Standards Division, Risk 
Management Agency, United States Department of Agriculture, Beacon 
Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141-
6205, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Notice and Comment

    We are issuing this final rule without prior notice and opportunity 
for comment. The Administrative Procedure Act (APA) exempts rules 
``relating to agency management or personnel or to public property, 
loans, grants, benefits, or contracts'' from the statutory requirement 
for prior notice and opportunity for comment. 5 U.S.C. 553(a)(2). 
However, FCIC is providing a 60-day comment period and we invite you to 
participate in this rulemaking by submitting written comments. We will 
consider the comments we receive and may conduct additional rulemaking 
based on the comments.

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
rule is not-significant for the purpose of Executive Order 12866 and, 
therefore, it has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), the collections of information in this rule 
have been approved by OMB under control number 0563-0085.

E-Government Act Compliance

    FCIC 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.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the 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.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on

[[Page 73638]]

States, or on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this regulation will not have 
substantial and direct effects on Tribal governments and will not have 
significant Tribal implications.

Regulatory Flexibility Act

    FCIC certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. Program 
requirements for the Federal crop insurance program are the same for 
all producers regardless of the size of their farming operation. For 
instance, all producers are required to submit an application and 
acreage report to establish their insurance guarantees and compute 
premium amounts, and all producers are required to submit a notice of 
loss and production information to determine the amount of an indemnity 
payment in the event of an insured cause of crop loss. Whether a 
producer has 10 acres or 1000 acres, there is no difference in the kind 
of information collected. To ensure crop insurance is available to 
small entities, the Federal Crop Insurance Act authorizes FCIC to waive 
collection of administrative fees from limited resource farmers. FCIC 
believes this waiver helps to ensure that small entities are given the 
same opportunities as large entities to manage their risks through the 
use of crop insurance. A Regulatory Flexibility Analysis has not been 
prepared since this regulation does not have an impact on small 
entities, and therefore, this regulation is exempt from the provisions 
of the Regulatory Flexibility Act (5 U.S.C. 605).

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988 on civil justice reform. The provisions of this rule will not 
have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. With respect to any direct action taken by FCIC 
or action by FCIC to require the insurance provider to take specific 
action under the terms of the crop insurance policy, the administrative 
appeal provisions published at 7 CFR part 11 must be exhausted before 
any action against FCIC for judicial review may be brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    FCIC amends the Area Risk Protection Insurance Regulations (7 CFR 
part 407) by revising Sec.  407.9 Area Risk Protection Insurance Policy 
and Sec.  407.13 Forage Crop Insurance Provisions to be effective for 
the 2017 succeeding crop years. The revisions meet certain goals of 
ACRSI, which include elimination of duplicate information collection, 
simplification of producer reporting, and incorporating language 
contained in section 12305(b)(1)(B) of the 2014 Farm Bill prohibiting 
FCIC from offering the CAT level of coverage for any crops or grasses 
used for grazing.
    Previously, changes made to the Federal crop insurance policies 
codified in the Code of Federal Regulations were required to be 
implemented through the rulemaking process. Such action was not 
required by the Administrative Procedures Act because contracts were 
exempt from notice and comment rulemaking and the crop insurance policy 
is a contract. However, a prior Secretary of Agriculture published a 
notice in the Federal Register stating that the Department of 
Agriculture would, to the maximum extent practicable, use the notice 
and comment rulemaking process when making program changes, including 
those involving contracts. FCIC has complied with this notice over the 
subsequent years. Recently, the current Secretary of Agriculture has 
published a notice in the Federal Register rescinding the prior notice, 
thereby making contracts again exempt from the notice and comment 
rulemaking process. However, FCIC values the input it receives through 
comments and has elected to solicit comments to this final rule. FCIC 
will consider all of the comments that are received and may conduct 
additional rulemaking based on the comments.
    For these reasons, these policy changes are effective upon 
publication at the Office of the Federal Register.
    The specific revisions to Area Risk Protection Insurance Policy (7 
CFR 407.9) are as follows:
    1. Section 8--FCIC is revising paragraph (e)(2). The current 
provisions regarding the insured's ability to revise an acreage report 
state that consent may only be provided if the information on the 
acreage report is clearly transposed, or the insured provides adequate 
evidence that the insurance company or someone from USDA has committed 
an error regarding the information on the acreage report. FCIC is 
revising this provision to include language that gives FCIC the 
flexibility through the Crop Provisions or through the Special 
Provisions to provide additional circumstances for which insureds may 
revise their acreage reports. This change is necessary due to changes 
in the ARPI Forage Crop Provisions stated below that allow acreage 
reports be revised when the acreage has suffered winterkill. FCIC is 
also revising the paragraph to improve readability.
    The specific changes to ARPI Forage crop insurance provisions (7 
CFR 407.13) are as follows:
    1. Section 1--FCIC is revising the definition of ``harvest.'' The 
definition of ``harvest'' states ``removal of the forage from the 
field, and rotational grazing.''
    However, the 2014 Farm Bill prohibits FCIC from offering the CAT 
level of coverage for any crops or grasses used for grazing. Further, 
the Noninsured Crop Assistance Program (NAP) offers coverage at the CAT 
and additional levels of coverage. To avoid confusion between the 
benefits available, FCIC is removing the option to purchase coverage 
for grazing at the additional and CAT level of coverage so that forage 
producers are eligible for at least the CAT level of coverage offered 
under other USDA programs. Therefore, FCIC is removing the term 
``rotational grazing,'' from the definition of ``harvest'' and removing 
the definition of ``rotational grazing'' so that FCIC can continue to 
offer the CAT level of coverage to forage producers who do not graze 
acreage.
    2. Section 5--FCIC is moving the cancellation date, termination 
date and contract change date 60 days earlier: For the termination and 
cancellation dates,

[[Page 73639]]

from November 30 to September 30, and for the contact change date, from 
August 31 to June 30. A goal under ACRSI is to establish one acreage 
reporting date for each commodity that will be used for USDA programs. 
For perennial forage, ACRSI established two commodities for perennial 
forage: an established stand and fall-seeded commodity; and a spring-
seeded commodity. Each commodity requires its own acreage reporting 
date: One in the fall and one in the spring, respectively. In order to 
be insured under the ARPI forage policy, perennial forage must have an 
established stand for insurance to attach. Therefore, its acreage 
reporting date needs to be in the fall in order for its acreage 
reporting date to align with the acreage reporting date for established 
stand perennial forage insured under other plans of insurance. The 
acreage reporting date for established stand and fall-seeded perennial 
forage insured under other plans of insurance FCIC offers is set at 
November 15 or December 15, depending on the state. The fall date is 
necessary for the other perennial forage plans of insurance because 
those plans of insurance provide coverage for damage due to winterkill. 
Therefore, FCIC must require producers to report their acreage prior to 
the possibility of an occurrence of winterkill. In order to move the 
acreage reporting date, which is contained in the actuarial documents, 
from the current date of July 15 to November 15 or December 15, 
depending on the state, FCIC must also make adjustments in the Crop 
Provisions to these other program dates: cancellation and termination 
dates and the contract change date. This change will make the program 
dates for forage insured under ARPI consistent with the program dates 
for forage insured under other plans of insurance.
    3. Section 6--FCIC is removing this section and add another in its 
place. The current section 6 addresses when premium is earned and 
payable, and overrides section 7(e) in the ARPI Basic Provisions. Basic 
Provisions section 7(e) states that premium is earned and payable at 
the time coverage begins, whereas section 6 of the Forage Crop 
Provisions states that premium is earned and payable on the acreage 
reporting date. Coverage for forage begins on the date the insurance 
company accepts the application, which is in the fall. Currently, 
premium for forage is not earned and payable at the time coverage 
begins, but rather on the acreage reporting date, which is 
approximately eight months after insureds submit their applications. 
Premium is earned and payable on the acreage reporting date because 
insureds have the opportunity at acreage reporting date to opt out of 
coverage if they can establish that their acreage was damaged by 
winterkill by reporting such acreage as uninsurable on the acreage 
report. Insureds do not owe premium on acreage damaged by winterkill if 
they report such acreage on the acreage report as uninsurable. Insureds 
do not know if their acreage is damaged by winterkill until mid-to-late 
spring. If insureds report such acreage as uninsurable, then they are 
not required to pay premium on that acreage. FCIC proposes to remove 
these provisions, which then makes section 7(e) of the Basic Provisions 
applicable. Therefore, premium will be earned and payable at the time 
coverage begins. This change will make forage insured under ARPI 
consistent with forage insured under the APH plan of insurance. As a 
result of another revision discussed below, insureds will have an 
opportunity to revise their acreage reports after the acreage reporting 
date to report their acreage damaged by winterkill as uninsurable 
acreage if they do not wish to insure that acreage and pay premium on 
it.
    FCIC is adding a new section 6 titled ``Report of Acreage.'' The 
provisions in section 6 will allow insureds to submit a revised acreage 
report by a date specified in the Special Provisions if they want to 
report their acreage damaged by winterkill as uninsurable acreage. FCIC 
anticipates the date specified in the Special Provisions to be May 15. 
Without this provision, insureds would be required to insure and pay 
premium on acreage they currently are not required to insure under the 
ARPI Forage Crop Provisions.

List of Subjects in 7 CFR Part 407

    Crop insurance, Reporting and recordkeeping requirements.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation amends 7 CFR part 407 effective for the 2017 and 
succeeding crop years as follows:

PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS

0
1. The authority citation for 7 CFR part 407 continues to read as 
follows:

    Authority:  7 U.S.C. 1506(1), 1506(o).


0
2. Amend Sec.  407.9 by:
0
a. In the introductory text, removing ``2014'' and adding ``2017'' in 
its place; and
0
b. In section 8, revising paragraph (e)(2).
    The revisions read as follows:


Sec.  407.9  Area risk protection insurance policy.

* * * * *
    8. Report of Acreage and Production
* * * * *
    (e) * * *
    (2) Consent may only be provided:
    (i) If the information on the acreage report is clearly transposed;
    (ii) If you provide adequate evidence that we have or someone from 
USDA has committed an error regarding the information on your acreage 
report;
    (iii) If allowed in the Crop Provisions; or
    (iv) As otherwise provided in the Special Provisions; and
* * * * *

0
3. Amend Sec.  407.13 by:
0
a. In the introductory text, removing ``2014'' and adding ``2017'' in 
its place;
0
b. In section 1:
0
i. Revising the definition of ``Harvest''; and
0
ii. Removing the definition of ``Rotational grazing''; and
0
c. Revising sections 5 and 6.
    The revisions read as follows:


Sec.  407.13  Area risk protection insurance for forage.

* * * * *
    1. Definitions
* * * * *
    Harvest. Removal of the forage from the field. Harvest does not 
include grazing.
* * * * *
    5. Program Dates
    September 30 is the cancellation and termination date for all 
states, unless the date is specified differently in the Special 
Provisions. The contract change date is June 30 for all states, unless 
the date is specified differently in the Special Provisions.
    6. Report of Acreage
    In addition to section 8(e)(2) of the Area Risk Protection 
Insurance Basic Provisions, regarding the ability to revise an acreage 
report you have submitted to us, we may provide you consent to revise 
your acreage report to indicate acreage damaged by winterkill that was 
not harvested (no cutting taken) as uninsurable acreage. You must 
submit a revised acreage report on or before the date specified in the 
Special Provisions.

    Signed in Washington, DC, on November 13, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-29652 Filed 11-24-15; 8:45 am]
 BILLING CODE 3410-08-P



                                                                                                                                                                                                 73637

                                                Rules and Regulations                                                                                         Federal Register
                                                                                                                                                              Vol. 80, No. 227

                                                                                                                                                              Wednesday, November 25, 2015



                                                This section of the FEDERAL REGISTER                    submit comments, identified by Docket                 Procedure Act (APA) exempts rules
                                                contains regulatory documents having general            ID No. FCIC–15–0003 by any of the                     ‘‘relating to agency management or
                                                applicability and legal effect, most of which           following methods:                                    personnel or to public property, loans,
                                                are keyed to and codified in the Code of                   • Federal eRulemaking Portal: http://              grants, benefits, or contracts’’ from the
                                                Federal Regulations, which is published under           www.regulations.gov. Follow the                       statutory requirement for prior notice
                                                50 titles pursuant to 44 U.S.C. 1510.
                                                                                                        instructions for submitting comments.                 and opportunity for comment. 5 U.S.C.
                                                The Code of Federal Regulations is sold by                 • Mail: Director, Product                          553(a)(2). However, FCIC is providing a
                                                the Superintendent of Documents. Prices of              Administration and Standards Division,                60-day comment period and we invite
                                                new books are listed in the first FEDERAL               Risk Management Agency, United States                 you to participate in this rulemaking by
                                                REGISTER issue of each week.                            Department of Agriculture, P.O. Box                   submitting written comments. We will
                                                                                                        419205, Kansas City, MO 64133–6205.                   consider the comments we receive and
                                                                                                           All comments received, including                   may conduct additional rulemaking
                                                DEPARTMENT OF AGRICULTURE                               those received by mail, will be posted                based on the comments.
                                                                                                        without change to http://
                                                Federal Crop Insurance Corporation                      www.regulations.gov, including any                    Executive Order 12866
                                                                                                        personal information provided, and can                  The Office of Management and Budget
                                                7 CFR Part 407                                          be accessed by the public. All comments               (OMB) has determined that this rule is
                                                [Docket No. FCIC–15–0003]                               must include the agency name and                      not-significant for the purpose of
                                                                                                        docket number or Regulatory                           Executive Order 12866 and, therefore, it
                                                RIN 0563–AC49                                           Information Number (RIN) for this rule.               has not been reviewed by OMB.
                                                Area Risk Protection Insurance (ARPI)                   For detailed instructions on submitting               Paperwork Reduction Act of 1995
                                                Regulations; ARPI Basic Provisions                      comments and additional information,
                                                                                                        see http://www.regulations.gov. If you                  Pursuant to the provisions of the
                                                and ARPI Forage Crop Insurance                                                                                Paperwork Reduction Act of 1995 (44
                                                Provisions                                              are submitting comments electronically
                                                                                                        through the Federal eRulemaking Portal                U.S.C. chapter 35), the collections of
                                                AGENCY:  Federal Crop Insurance                         and want to attach a document, we ask                 information in this rule have been
                                                Corporation, USDA.                                      that it be in a text-based format. If you             approved by OMB under control
                                                ACTION: Final rule with request for                     want to attach a document that is a                   number 0563–0085.
                                                comments.                                               scanned Adobe PDF file, it must be                    E-Government Act Compliance
                                                                                                        scanned as text and not as an image,
                                                SUMMARY:   The Federal Crop Insurance                                                                            FCIC is committed to complying with
                                                                                                        thus allowing FCIC to search and copy
                                                Corporation (FCIC) amends the Area                                                                            the E-Government Act of 2002, to
                                                                                                        certain portions of your submissions.
                                                Risk Protection Insurance (ARPI)                                                                              promote the use of the Internet and
                                                                                                        For questions regarding attaching a
                                                Regulations; ARPI Basic Provisions and                                                                        other information technologies to
                                                                                                        document that is a scanned Adobe PDF
                                                ARPI Forage Crop Insurance Provisions.                                                                        provide increased opportunities for
                                                                                                        file, please contact the RMA Web
                                                The intended effect of this action is to                                                                      citizen access to Government
                                                                                                        Content Team at (816) 823–4694 or by
                                                meet the goals of the Acreage Crop                                                                            information and services, and for other
                                                                                                        email at rmaweb.content@rma.usda.gov.
                                                Reporting Streamlining Initiative                          Privacy Act: Anyone is able to search              purposes.
                                                (ACRSI), which is a United States                       the electronic form of all comments                   Unfunded Mandates Reform Act of
                                                Department of Agriculture initiative and                received for any dockets by the name of               1995
                                                required by Agricultural Act of 2014                    the person submitting the comment (or                    Title II of the Unfunded Mandates
                                                (2014 Farm Bill), by aligning ARPI                      signing the comment, if submitted on                  Reform Act of 1995 (UMRA) establishes
                                                Forage Production with the Actual                       behalf of an association, business, labor             requirements for Federal agencies to
                                                Production History Forage Production                    union, etc.). You may review the                      assess the effects of their regulatory
                                                Crop Insurance Provisions and to                        complete User Notice and Privacy                      actions on State, local, and tribal
                                                address language contained in section                   Notice for Regulations.gov at http://                 governments and the private sector.
                                                12305(b)(1)(B) of the 2014 Farm Bill that               www.regulations.gov/#!privacyNotice.                  This rule contains no Federal mandates
                                                prohibits FCIC from offering the                        FOR FURTHER INFORMATION CONTACT: Tim                  (under the regulatory provisions of title
                                                catastrophic (CAT) level of coverage for                Hoffmann, Director, Product                           II of the UMRA) for State, local, and
                                                any crops or grasses used for grazing.                  Management, Product Administration                    tribal governments or the private sector.
                                                The changes will be effective for the                   and Standards Division, Risk                          Therefore, this rule is not subject to the
                                                2017 and succeeding crop years.                         Management Agency, United States                      requirements of sections 202 and 205 of
                                                DATES: This rule is effective November                  Department of Agriculture, Beacon                     UMRA.
                                                25, 2015. Written comments and                          Facility, Stop 0812, Room 421, P.O. Box
                                                opinions on this rule will be accepted                  419205, Kansas City, MO 64141–6205,                   Executive Order 13132
jstallworth on DSK7TPTVN1PROD with RULES




                                                until close of business January 25, 2016.               telephone (816) 926–7730.                               It has been determined under section
                                                FCIC will consider the comments                         SUPPLEMENTARY INFORMATION:                            1(a) of Executive Order 13132,
                                                received and may conduct additional                                                                           Federalism, that this rule does not have
                                                rulemaking based on the comments.                       Notice and Comment                                    sufficient implications to warrant
                                                ADDRESSES: FCIC prefers that comments                     We are issuing this final rule without              consultation with the States. The
                                                be submitted electronically through the                 prior notice and opportunity for                      provisions contained in this rule will
                                                Federal eRulemaking Portal. You may                     comment. The Administrative                           not have a substantial direct effect on


                                           VerDate Sep<11>2014   15:12 Nov 24, 2015   Jkt 238001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\25NOR1.SGM   25NOR1


                                                73638        Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations

                                                States, or on the relationship between                  Executive Order 12988                                 FCIC values the input it receives
                                                the national government and the States,                    This rule has been reviewed in                     through comments and has elected to
                                                or on the distribution of power and                     accordance with Executive Order 12988                 solicit comments to this final rule. FCIC
                                                responsibilities among the various                      on civil justice reform. The provisions               will consider all of the comments that
                                                levels of government.                                   of this rule will not have a retroactive              are received and may conduct
                                                                                                                                                              additional rulemaking based on the
                                                Executive Order 13175                                   effect. The provisions of this rule will
                                                                                                                                                              comments.
                                                                                                        preempt State and local laws to the
                                                                                                                                                                 For these reasons, these policy
                                                  This rule has been reviewed in                        extent such State and local laws are                  changes are effective upon publication
                                                accordance with the requirements of                     inconsistent herewith. With respect to                at the Office of the Federal Register.
                                                Executive Order 13175, Consultation                     any direct action taken by FCIC or                       The specific revisions to Area Risk
                                                and Coordination with Indian Tribal                     action by FCIC to require the insurance               Protection Insurance Policy (7 CFR
                                                Governments. The review reveals that                    provider to take specific action under                407.9) are as follows:
                                                this regulation will not have substantial               the terms of the crop insurance policy,                  1. Section 8—FCIC is revising
                                                and direct effects on Tribal governments                the administrative appeal provisions                  paragraph (e)(2). The current provisions
                                                and will not have significant Tribal                    published at 7 CFR part 11 must be                    regarding the insured’s ability to revise
                                                implications.                                           exhausted before any action against                   an acreage report state that consent may
                                                                                                        FCIC for judicial review may be brought.              only be provided if the information on
                                                Regulatory Flexibility Act
                                                                                                        Environmental Evaluation                              the acreage report is clearly transposed,
                                                   FCIC certifies that this regulation will                                                                   or the insured provides adequate
                                                                                                          This action is not expected to have a               evidence that the insurance company or
                                                not have a significant economic impact                  significant economic impact on the
                                                on a substantial number of small                                                                              someone from USDA has committed an
                                                                                                        quality of the human environment,                     error regarding the information on the
                                                entities. Program requirements for the                  health, or safety. Therefore, neither an
                                                Federal crop insurance program are the                                                                        acreage report. FCIC is revising this
                                                                                                        Environmental Assessment nor an                       provision to include language that gives
                                                same for all producers regardless of the                Environmental Impact Statement is
                                                size of their farming operation. For                                                                          FCIC the flexibility through the Crop
                                                                                                        needed.                                               Provisions or through the Special
                                                instance, all producers are required to
                                                                                                        Background                                            Provisions to provide additional
                                                submit an application and acreage
                                                                                                                                                              circumstances for which insureds may
                                                report to establish their insurance                        FCIC amends the Area Risk Protection               revise their acreage reports. This change
                                                guarantees and compute premium                          Insurance Regulations (7 CFR part 407)                is necessary due to changes in the ARPI
                                                amounts, and all producers are required                 by revising § 407.9 Area Risk Protection              Forage Crop Provisions stated below
                                                to submit a notice of loss and                          Insurance Policy and § 407.13 Forage                  that allow acreage reports be revised
                                                production information to determine the                 Crop Insurance Provisions to be                       when the acreage has suffered
                                                amount of an indemnity payment in the                   effective for the 2017 succeeding crop                winterkill. FCIC is also revising the
                                                event of an insured cause of crop loss.                 years. The revisions meet certain goals               paragraph to improve readability.
                                                Whether a producer has 10 acres or                      of ACRSI, which include elimination of                   The specific changes to ARPI Forage
                                                1000 acres, there is no difference in the               duplicate information collection,                     crop insurance provisions (7 CFR
                                                kind of information collected. To ensure                simplification of producer reporting,                 407.13) are as follows:
                                                crop insurance is available to small                    and incorporating language contained in                  1. Section 1—FCIC is revising the
                                                entities, the Federal Crop Insurance Act                section 12305(b)(1)(B) of the 2014 Farm               definition of ‘‘harvest.’’ The definition
                                                authorizes FCIC to waive collection of                  Bill prohibiting FCIC from offering the               of ‘‘harvest’’ states ‘‘removal of the
                                                administrative fees from limited                        CAT level of coverage for any crops or                forage from the field, and rotational
                                                resource farmers. FCIC believes this                    grasses used for grazing.                             grazing.’’
                                                waiver helps to ensure that small                          Previously, changes made to the                       However, the 2014 Farm Bill prohibits
                                                entities are given the same opportunities               Federal crop insurance policies codified              FCIC from offering the CAT level of
                                                as large entities to manage their risks                 in the Code of Federal Regulations were               coverage for any crops or grasses used
                                                through the use of crop insurance. A                    required to be implemented through the                for grazing. Further, the Noninsured
                                                Regulatory Flexibility Analysis has not                 rulemaking process. Such action was                   Crop Assistance Program (NAP) offers
                                                been prepared since this regulation does                not required by the Administrative                    coverage at the CAT and additional
                                                not have an impact on small entities,                   Procedures Act because contracts were                 levels of coverage. To avoid confusion
                                                and therefore, this regulation is exempt                exempt from notice and comment                        between the benefits available, FCIC is
                                                from the provisions of the Regulatory                   rulemaking and the crop insurance                     removing the option to purchase
                                                Flexibility Act (5 U.S.C. 605).                         policy is a contract. However, a prior                coverage for grazing at the additional
                                                                                                        Secretary of Agriculture published a                  and CAT level of coverage so that forage
                                                Federal Assistance Program                              notice in the Federal Register stating                producers are eligible for at least the
                                                                                                        that the Department of Agriculture                    CAT level of coverage offered under
                                                  This program is listed in the Catalog                 would, to the maximum extent                          other USDA programs. Therefore, FCIC
                                                of Federal Domestic Assistance under                    practicable, use the notice and comment               is removing the term ‘‘rotational
                                                No. 10.450.                                             rulemaking process when making                        grazing,’’ from the definition of
                                                Executive Order 12372                                   program changes, including those                      ‘‘harvest’’ and removing the definition
                                                                                                        involving contracts. FCIC has complied                of ‘‘rotational grazing’’ so that FCIC can
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                                                  This program is not subject to the                    with this notice over the subsequent                  continue to offer the CAT level of
                                                provisions of Executive Order 12372,                    years. Recently, the current Secretary of             coverage to forage producers who do not
                                                which require intergovernmental                         Agriculture has published a notice in                 graze acreage.
                                                consultation with State and local                       the Federal Register rescinding the                      2. Section 5—FCIC is moving the
                                                officials. See the Notice related to 7 CFR              prior notice, thereby making contracts                cancellation date, termination date and
                                                part 3015, subpart V, published at 48 FR                again exempt from the notice and                      contract change date 60 days earlier: For
                                                29115, June 24, 1983.                                   comment rulemaking process. However,                  the termination and cancellation dates,


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                                                             Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Rules and Regulations                                              73639

                                                from November 30 to September 30, and                   payable on the acreage reporting date                     The revisions read as follows:
                                                for the contact change date, from August                because insureds have the opportunity
                                                31 to June 30. A goal under ACRSI is to                 at acreage reporting date to opt out of               § 407.9    Area risk protection insurance
                                                                                                                                                              policy.
                                                establish one acreage reporting date for                coverage if they can establish that their
                                                each commodity that will be used for                    acreage was damaged by winterkill by                  *       *      *    *    *
                                                USDA programs. For perennial forage,                    reporting such acreage as uninsurable                    8. Report of Acreage and Production
                                                ACRSI established two commodities for                   on the acreage report. Insureds do not                *       *      *    *    *
                                                perennial forage: an established stand                  owe premium on acreage damaged by                        (e) * * *
                                                and fall-seeded commodity; and a                        winterkill if they report such acreage on                (2) Consent may only be provided:
                                                spring-seeded commodity. Each                           the acreage report as uninsurable.                       (i) If the information on the acreage
                                                commodity requires its own acreage                      Insureds do not know if their acreage is              report is clearly transposed;
                                                reporting date: One in the fall and one                 damaged by winterkill until mid-to-late                  (ii) If you provide adequate evidence
                                                in the spring, respectively. In order to be             spring. If insureds report such acreage               that we have or someone from USDA
                                                insured under the ARPI forage policy,                   as uninsurable, then they are not                     has committed an error regarding the
                                                perennial forage must have an                           required to pay premium on that                       information on your acreage report;
                                                established stand for insurance to                      acreage. FCIC proposes to remove these                   (iii) If allowed in the Crop Provisions;
                                                attach. Therefore, its acreage reporting                provisions, which then makes section                  or
                                                date needs to be in the fall in order for               7(e) of the Basic Provisions applicable.                 (iv) As otherwise provided in the
                                                its acreage reporting date to align with                Therefore, premium will be earned and                 Special Provisions; and
                                                the acreage reporting date for                          payable at the time coverage begins.                  *       *      *    *    *
                                                established stand perennial forage                      This change will make forage insured                  ■ 3. Amend § 407.13 by:
                                                insured under other plans of insurance.                 under ARPI consistent with forage                     ■ a. In the introductory text, removing
                                                The acreage reporting date for                          insured under the APH plan of                         ‘‘2014’’ and adding ‘‘2017’’ in its place;
                                                established stand and fall-seeded                       insurance. As a result of another                     ■ b. In section 1:
                                                perennial forage insured under other                    revision discussed below, insureds will               ■ i. Revising the definition of ‘‘Harvest’’;
                                                plans of insurance FCIC offers is set at                have an opportunity to revise their                   and
                                                November 15 or December 15,                             acreage reports after the acreage                     ■ ii. Removing the definition of
                                                depending on the state. The fall date is                reporting date to report their acreage                ‘‘Rotational grazing’’; and
                                                necessary for the other perennial forage                damaged by winterkill as uninsurable                  ■ c. Revising sections 5 and 6.
                                                plans of insurance because those plans                  acreage if they do not wish to insure                    The revisions read as follows:
                                                of insurance provide coverage for                       that acreage and pay premium on it.
                                                                                                           FCIC is adding a new section 6 titled              § 407.13    Area risk protection insurance for
                                                damage due to winterkill. Therefore,                                                                          forage.
                                                FCIC must require producers to report                   ‘‘Report of Acreage.’’ The provisions in
                                                                                                        section 6 will allow insureds to submit               *     *     *     *     *
                                                their acreage prior to the possibility of
                                                                                                        a revised acreage report by a date                      1. Definitions
                                                an occurrence of winterkill. In order to
                                                move the acreage reporting date, which                  specified in the Special Provisions if                *     *     *     *     *
                                                is contained in the actuarial documents,                they want to report their acreage                       Harvest. Removal of the forage from
                                                from the current date of July 15 to                     damaged by winterkill as uninsurable                  the field. Harvest does not include
                                                November 15 or December 15,                             acreage. FCIC anticipates the date                    grazing.
                                                depending on the state, FCIC must also                  specified in the Special Provisions to be             *     *     *     *     *
                                                make adjustments in the Crop                            May 15. Without this provision,                         5. Program Dates
                                                Provisions to these other program dates:                insureds would be required to insure                    September 30 is the cancellation and
                                                cancellation and termination dates and                  and pay premium on acreage they                       termination date for all states, unless the
                                                the contract change date. This change                   currently are not required to insure                  date is specified differently in the
                                                will make the program dates for forage                  under the ARPI Forage Crop Provisions.                Special Provisions. The contract change
                                                insured under ARPI consistent with the                  List of Subjects in 7 CFR Part 407                    date is June 30 for all states, unless the
                                                program dates for forage insured under                                                                        date is specified differently in the
                                                                                                          Crop insurance, Reporting and                       Special Provisions.
                                                other plans of insurance.
                                                                                                        recordkeeping requirements.                             6. Report of Acreage
                                                   3. Section 6—FCIC is removing this
                                                                                                        Final Rule                                              In addition to section 8(e)(2) of the
                                                section and add another in its place.
                                                                                                                                                              Area Risk Protection Insurance Basic
                                                The current section 6 addresses when                       Accordingly, as set forth in the                   Provisions, regarding the ability to
                                                premium is earned and payable, and                      preamble, the Federal Crop Insurance                  revise an acreage report you have
                                                overrides section 7(e) in the ARPI Basic                Corporation amends 7 CFR part 407                     submitted to us, we may provide you
                                                Provisions. Basic Provisions section 7(e)               effective for the 2017 and succeeding                 consent to revise your acreage report to
                                                states that premium is earned and                       crop years as follows:                                indicate acreage damaged by winterkill
                                                payable at the time coverage begins,
                                                                                                        PART 407—AREA RISK PROTECTION                         that was not harvested (no cutting
                                                whereas section 6 of the Forage Crop
                                                                                                        INSURANCE REGULATIONS                                 taken) as uninsurable acreage. You must
                                                Provisions states that premium is earned
                                                                                                                                                              submit a revised acreage report on or
                                                and payable on the acreage reporting
                                                                                                        ■ 1. The authority citation for 7 CFR                 before the date specified in the Special
                                                date. Coverage for forage begins on the
                                                                                                        part 407 continues to read as follows:                Provisions.
                                                date the insurance company accepts the
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                                                application, which is in the fall.                          Authority: 7 U.S.C. 1506(1), 1506(o).               Signed in Washington, DC, on November
                                                Currently, premium for forage is not                                                                          13, 2015.
                                                                                                        ■  2. Amend § 407.9 by:
                                                earned and payable at the time coverage                 ■  a. In the introductory text, removing              Brandon Willis,
                                                begins, but rather on the acreage                       ‘‘2014’’ and adding ‘‘2017’’ in its place;            Manager, Federal Crop Insurance
                                                reporting date, which is approximately                  and                                                   Corporation.
                                                eight months after insureds submit their                ■ b. In section 8, revising paragraph                 [FR Doc. 2015–29652 Filed 11–24–15; 8:45 am]
                                                applications. Premium is earned and                     (e)(2).                                               BILLING CODE 3410–08–P




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Document Created: 2018-03-01 11:15:24
Document Modified: 2018-03-01 11:15:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule with request for comments.
DatesThis rule is effective November 25, 2015. Written comments and opinions on this rule will be accepted until close of business January 25, 2016. FCIC will consider the comments received and may conduct additional rulemaking based on the comments.
ContactTim Hoffmann, Director, Product Management, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141- 6205, telephone (816) 926-7730.
FR Citation80 FR 73637 
RIN Number0563-AC49
CFR AssociatedCrop Insurance and Reporting and Recordkeeping Requirements

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