80_FR_81408 80 FR 81159 - Common Crop Insurance Regulations; Cotton Crop Insurance Provisions, Extra Long Staple Cotton Crop Insurance Provisions

80 FR 81159 - Common Crop Insurance Regulations; Cotton Crop Insurance Provisions, Extra Long Staple Cotton Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 80, Issue 249 (December 29, 2015)

Page Range81159-81162
FR Document2015-32308

The Federal Crop Insurance Corporation (FCIC) amends the Common Crop Insurance Regulations, Cotton Crop Insurance Provisions and Extra Long Staple (ELS) Cotton Crop Insurance Provisions. The intended effect of this action is to provide policy changes and to clarify existing policy provisions to better meet the needs of policyholders. As discussed further within this rule, FCIC received requests to simplify program administration consistent with evolving farming practices in cotton crop production. The changes will be effective for the 2017 and succeeding crop years.

Federal Register, Volume 80 Issue 249 (Tuesday, December 29, 2015) 
[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Rules and Regulations]
[Pages 81159-81162]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32308]



========================================================================
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. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

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Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / 
Rules and Regulations

[[Page 81159]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR part 457

[Docket No. FCIC-15-0001]
RIN 0563-AC47


Common Crop Insurance Regulations; Cotton Crop Insurance 
Provisions, Extra Long Staple Cotton Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations, Cotton Crop Insurance Provisions and 
Extra Long Staple (ELS) Cotton Crop Insurance Provisions. The intended 
effect of this action is to provide policy changes and to clarify 
existing policy provisions to better meet the needs of policyholders. 
As discussed further within this rule, FCIC received requests to 
simplify program administration consistent with evolving farming 
practices in cotton crop production. The changes will be effective for 
the 2017 and succeeding crop years.

DATES: This final rule is effective December 29, 2015. However, FCIC 
will accept written comments on this final rule until close of business 
February 29, 2016. FCIC may consider the comments received and may 
conduct additional rulemaking based on the comments.

ADDRESSES: FCIC prefers interested persons submit their comments 
electronically through the Federal eRulemaking Portal. Interested 
persons may submit comments, identified by Docket ID No. FCIC-15-0001, 
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.
    FCIC will post all comments received, including those received by 
mail, without change to http://www.regulations.gov, including any 
personal information provided. Once these comments are posted to this 
Web site, the public can access all comments at its convenience from 
this Web site. 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 interested persons are 
submitting comments electronically through the Federal eRulemaking 
Portal and want to attach a document, FCIC requests that the document 
attachment be in a text-based format. If interested persons 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 the submissions. For questions regarding attaching 
a document that is a scanned Adobe PDF file, please contact the Risk 
Management Agency (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 
entity, such as an association, business, labor union, etc.). 
Interested persons may review the complete User Notice and Privacy 
Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.

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

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the OMB.

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35, subchapter I), the collections of information in 
this rule have been approved by OMB under control number 0563-0053.

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 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. This regulation will not have substantial and direct 
effects on Tribal governments and will not have significant Tribal 
implications.

[[Page 81160]]

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 indemnity amount for 
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 (FCIA) 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 a significant impact on a 
substantial number of 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 2 CFR part 415, subpart C.

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 directing 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 Common Crop Insurance Regulations (7 CFR part 457) 
by revising 7 CFR 457.104 Cotton Crop Insurance Provisions and 7 CFR 
457.105 Extra Long Staple Cotton Crop Insurance Provisions to be 
effective for the 2017 and succeeding crop years. FCIC received 
requests to simplify program administration consistent with evolving 
farming practices in cotton crop production.
    FCIC is issuing this final rule without opportunity for prior 
notice and comment. The Administrative Procedure Act 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 public comment (5 U.S.C. 
553(a)(2)). However, FCIC is providing a 60-day comment period and 
invites interested persons to participate in this rulemaking by 
submitting written comments. FCIC may consider the comments received 
and may conduct additional rulemaking based on the comments.
    1. The changes to 7 CFR 457.104 Cotton Crop Insurance Provisions 
are as follows:
    (a) Section 9 (``Duties in the Event of Damage or Loss'')--FCIC is 
revising paragraph (a). The provisions require, in the event of damage 
or loss, the insured must leave cotton stalks intact for the insurance 
provider's inspection. FCIC has received requests to remove these 
provisions. The primary reasons provided to FCIC for removing the 
provisions include the following reasons:
     University extension in some regions recommends destroying 
the stalks as soon as possible after harvest to mitigate the 
possibility of insect infestation (specifically boll weevil);
     The provision requires cotton to be treated differently 
than other row crops, which do not require the insured to leave stalks 
intact for inspection;
     The provision was originally written to address multiple 
harvests on the same acreage, but today producers manage their cotton 
crops to result in harvest occurring once a year. Years ago, producers 
planted more late-maturing varieties and the bolls would open at 
different times during the harvest season causing a producer to pick 
the same acreage twice.
     Cotton farming practices have changed in some regions over 
the years and producers have grown accustomed to mowing the stalks 
immediately following the cotton picker; and
     Producers mow or shred cotton stalks so they can plant 
their winter grazing or cover crops. Since cotton stalks are woody, the 
sooner they can mow or shred the stalks, the sooner the stalks will 
begin to break down. When a cotton stalk inspection is required, a 
producer may have to wait up to two weeks before the field can be 
mowed. Depending on weather and individual circumstances, the stalk 
inspection is an inconvenience to producers and may interfere with 
timely completion of their normal operations and preparation for the 
winter/cover crop.
    FCIC recognizes the potential existence of these issues, but also 
recognizes there may be situations in which a cotton stalk inspection 
has merit or necessity. Therefore, FCIC is revising the provision to 
allow insurance companies discretion to require, in certain 
circumstances, that insureds leave the cotton stalks intact for company 
inspection. FCIC is also revising the provision to allow FCIC to 
include specific circumstances in the Special Provisions for which FCIC 
will require insureds to leave cotton stalks intact, and FCIC will 
require the company to conduct a cotton stalk inspection, making 
discretion inapplicable when any Special Provisions circumstance 
required by FCIC occurs.
    (b) Section 10 (``Settlement of Claim'')--FCIC is revising 
paragraph (c)(1)(i)(E). The current provision states production to 
count will include, among other things, all appraised production for 
acreage on which cotton stalks were destroyed in violation of section 
9. As discussed above, FCIC is revising section 9, which is applicable 
only if the AIP exercises its discretion under appropriate 
circumstances to require that insureds leave cotton stalks intact. FCIC 
is revising paragraph (c)(1)(i)(E) to state this provision applies only 
if section 9(a) applies.
    2. The changes to 7 CFR 457.105 Extra Long Staple Cotton Crop 
Insurance Provisions are as follows:
    (a) Section 6 (``Insurable Acreage'')--FCIC is revising paragraph 
(b) to correct a prior Federal Register official publication error that 
inadvertently resulted in missing language from this provision. The 
words ``. . . normally further care for the crop, must . . .'' were not 
properly published within

[[Page 81161]]

paragraph (b). This provision was intended to match the Cotton Crop 
Insurance Provisions language found at 7 CFR 457.104, section 6(b).
    (b) Section 9 (``Duties in the Event of Damage of Loss'')--FCIC is 
revising paragraph (a)(2). The provisions require, in the event of 
damage or loss, the insured must leave cotton stalks intact for the 
insurance provider's inspection. FCIC has received requests to remove 
these provisions. The primary reasons provided to FCIC for removing the 
provisions include the following reasons:
     University extension in some regions recommends destroying 
the stalks as soon as possible after harvest to mitigate the 
possibility of insect infestation (specifically boll weevil);
     The provision requires cotton to be treated differently 
than other row crops, which do not require the insured to leave stalks 
intact for inspection;
     The provision was originally written to address multiple 
harvests on the same acreage, but today producers manage their cotton 
crops to result in harvest occurring once a year. Years ago, producers 
planted more late-maturing varieties and the bolls would open at 
different times during the harvest season causing a producer to pick 
the same acreage twice.
     Cotton farming practices have changed in some regions over 
the years and producers have grown accustomed to mowing the stalks 
immediately following the cotton picker; and
     Producers mow or shred cotton stalks so they can plant 
their winter grazing or cover crops. Since cotton stalks are woody, the 
sooner they can mow or shred the stalks, the sooner the stalks will 
begin to break down. When a cotton stalk inspection is required, a 
producer may have to wait up to two weeks before the field can be 
mowed. Depending on weather and individual circumstances, the stalk 
inspection is an inconvenience to producers and may interfere with 
timely completion of their normal operations and preparation for the 
winter/cover crop.
    FCIC recognizes the potential existence of these issues, but also 
recognizes there may be situations in which a cotton stalk inspection 
has merit or necessity. Therefore, FCIC is revising the provision to 
allow insurance companies discretion to require, in certain 
circumstances, that insureds leave the cotton stalks intact for company 
inspection. FCIC is also revising the provision to allow FCIC to 
include specific circumstances in the Special Provisions for which FCIC 
will require insureds to leave cotton stalks intact, and FCIC will 
require the company to conduct a cotton stalk inspection, making 
discretion inapplicable when any Special Provisions circumstance 
required by FCIC occurs.
    (c) Section 10 (``Settlement of Claim'')--FCIC is revising 
paragraph (c)(1)(i)(E). The current provision says the production to 
count will include, among other things, all appraised production for 
acreage on which cotton stalks were destroyed in violation of section 
9. As discussed above, FCIC is revising section 9, which is applicable 
only if the AIP exercises its discretion under appropriate 
circumstances to require that insureds leave cotton stalks intact. FCIC 
is revising paragraph (c)(1)(i)(E) to state this provision applies only 
if section 9(a)(2) applies.
    (e) Section 12 (``Prevented Planting'')--FCIC is removing the 
reference to limited level of coverage in section 12(b) because it is 
no longer applicable.

List of Subjects in 7 CFR Part 457

    Crop insurance, Cotton, Reporting and recordkeeping requirements.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation amends 7 CFR part 457 effective for the 2017 and 
succeeding crop years as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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


0
2. Amend Sec.  457.104 as follows:
0
a. In the introductory text, by removing ``2011'' and adding ``2017'' 
in its place; and
0
b. By revising sections 9(a) and 10(c)(1)(i)(E).
    The revisions read as follows:


Sec.  457.104  Cotton crop insurance provisions.

* * * * *
    9. Duties in the Event of Damage or Loss
    (a) In addition to your duties under section 14 of the Basic 
Provisions, in the event of damage or loss, at our option or if 
required by FCIC in the Special Provisions, you may be required to 
leave the cotton stalks intact for our inspection. If applicable, the 
stalks must not be destroyed, and required samples must not be 
harvested, until the earlier of our inspection or 15 days after harvest 
of the balance of the unit is completed and written notice of probable 
loss given to us.
* * * * *
    10. Settlement of Claim
* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (E) If applicable, on which the cotton stalks are destroyed, in 
violation of section 9.
* * * * *
0
3. Amend Sec.  457.105 as follows:
0
a. In the introductory text, by removing ``2014'' and adding ``2017'' 
in its place;
0
b. By revising sections 6(b), 9(a)(2), 10(c)(1)(i)(E), and the last 
sentence in section 12(b).
    The revisions read as follows:


Sec.  457.105  Extra Long Staple Cotton crop insurance provisions.

* * * * *
    6. Insurable Acreage
* * * * *
    (b) Any acreage of the insured crop damaged before the final 
planting date, to the extent that a majority of producers in the area 
would not normally further care for the crop, must be replanted unless 
we agree that it is not practical to replant.
* * * * *
    9. Duties in the Event of Damage or Loss
    (a) * * *
    (2) At our option or if required by FCIC in the Special Provisions, 
you may be required to leave the cotton stalks intact for our 
inspection. If applicable, the stalks must not be destroyed, and 
required samples must not be harvested, until the earlier of our 
inspection or 15 days after harvest of the balance of the unit is 
completed and written notice of probable loss is given to us.
* * * * *
    10. Settlement of Claim
* * * * *
    (c) * * *
    (1) * * *
    (i) * * *
    (E) If applicable, on which the cotton stalks are destroyed, in 
violation of section 9.
* * * * *
    12. Prevented Planting
* * * * *
    (b) * * * If you have additional coverage and pay an additional 
premium, you may increase your prevented planting coverage to a level 
specified in the actuarial documents.


[[Page 81162]]


    Signed in Washington, DC, on December 17, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-32308 Filed 12-28-15; 8:45 am]
BILLING CODE 3410-08-P

81159 Rules and Regulations Federal Register Vol. 80, No. 249 Tuesday, December 29, 2015 This section of the FEDERAL REGISTER • Federal eRulemaking Portal: http:// Executive Order 12866 contains regulatory documents having general www.regulations.gov. Follow the This rule has been determined to be applicability and legal effect, most of which instructions for submitting comments. are keyed to and codified in the Code of not significant for the purposes of Federal Regulations, which is published under • Mail: Director, Product Executive Order 12866 and, therefore, it 50 titles pursuant to 44 U.S.C. 1510. Administration and Standards Division, has not been reviewed by the OMB. Risk Management Agency, United States Paperwork Reduction Act of 1995 The Code of Federal Regulations is sold by Department of Agriculture, P.O. Box the Superintendent of Documents. Prices of 419205, Kansas City, MO 64133–6205. Pursuant to the provisions of the new books are listed in the first FEDERAL Paperwork Reduction Act of 1995 (44 REGISTER issue of each week. FCIC will post all comments received, U.S.C. chapter 35, subchapter I), the including those received by mail, collections of information in this rule without change to http:// have been approved by OMB under DEPARTMENT OF AGRICULTURE www.regulations.gov, including any control number 0563–0053. personal information provided. Once Federal Crop Insurance Corporation these comments are posted to this Web E-Government Act Compliance site, the public can access all comments FCIC is committed to complying with 7 CFR part 457 at its convenience from this Web site. the E-Government Act of 2002, to All comments must include the agency promote the use of the Internet and [Docket No. FCIC–15–0001] name and docket number or Regulatory other information technologies to Information Number (RIN) for this rule. provide increased opportunities for For detailed instructions on submitting citizen access to Government RIN 0563–AC47 comments and additional information, information and services, and for other Common Crop Insurance Regulations; see http://www.regulations.gov. If purposes. Cotton Crop Insurance Provisions, interested persons are submitting comments electronically through the Unfunded Mandates Reform Act of Extra Long Staple Cotton Crop 1995 Insurance Provisions Federal eRulemaking Portal and want to attach a document, FCIC requests that Title II of the Unfunded Mandates AGENCY: Federal Crop Insurance the document attachment be in a text- Reform Act of 1995 (UMRA), establishes Corporation, USDA. based format. If interested persons want requirements for Federal agencies to ACTION: Final rule with request for to attach a document that is a scanned assess the effects of their regulatory comments. Adobe PDF file, it must be scanned as actions on State, local, and tribal text and not as an image, thus allowing governments and the private sector. SUMMARY: The Federal Crop Insurance FCIC to search and copy certain This rule contains no Federal mandates Corporation (FCIC) amends the portions of the submissions. For (under the regulatory provisions of title Common Crop Insurance Regulations, questions regarding attaching a II of the UMRA) for State, local, and Cotton Crop Insurance Provisions and document that is a scanned Adobe PDF tribal governments or the private sector. Extra Long Staple (ELS) Cotton Crop file, please contact the Risk Therefore, this rule is not subject to the Insurance Provisions. The intended Management Agency (RMA) Web requirements of sections 202 and 205 of effect of this action is to provide policy Content Team at (816) 823–4694 or by UMRA. changes and to clarify existing policy email at rmaweb.content@rma.usda.gov. Executive Order 13132 provisions to better meet the needs of Privacy Act: Anyone is able to search policyholders. As discussed further It has been determined under section the electronic form of all comments 1(a) of Executive Order 13132, within this rule, FCIC received requests received for any dockets by the name of to simplify program administration Federalism, that this rule does not have the person submitting the comment (or sufficient implications to warrant consistent with evolving farming signing the comment, if submitted on practices in cotton crop production. The consultation with the States. The behalf of an entity, such as an provisions contained in this rule will changes will be effective for the 2017 association, business, labor union, etc.). and succeeding crop years. not have a substantial direct effect on Interested persons may review the States, or on the relationship between DATES: This final rule is effective complete User Notice and Privacy the national government and the States, December 29, 2015. However, FCIC will Notice for Regulations.gov at http:// or on the distribution of power and accept written comments on this final www.regulations.gov/#!privacyNotice. responsibilities among the various rule until close of business February 29, levels of government. 2016. FCIC may consider the comments FOR FURTHER INFORMATION CONTACT: Tim received and may conduct additional Hoffmann, Product Management, Executive Order 13175 rulemaking based on the comments. Product Administration and Standards Division, Risk Management Agency, This rule has been reviewed in jstallworth on DSK7TPTVN1PROD with RULES ADDRESSES: FCIC prefers interested United States Department of accordance with the requirements of persons submit their comments Agriculture, Beacon Facility, Stop 0812, Executive Order 13175, Consultation electronically through the Federal Room 421, PO Box 419205, Kansas City, and Coordination with Indian Tribal eRulemaking Portal. Interested persons MO 64141–6205, telephone (816) 926– Governments. This regulation will not may submit comments, identified by 7730. have substantial and direct effects on Docket ID No. FCIC–15–0001, by any of Tribal governments and will not have the following methods: SUPPLEMENTARY INFORMATION: significant Tribal implications. VerDate Sep<11>2014 15:24 Dec 28, 2015 Jkt 238001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\29DER1.SGM 29DER1

81160 Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations Regulatory Flexibility Act Environmental Evaluation different times during the harvest This action is not expected to have a season causing a producer to pick the FCIC certifies that this regulation will same acreage twice. significant economic impact on the not have a significant economic impact • Cotton farming practices have on a substantial number of small quality of the human environment, changed in some regions over the years entities. Program requirements for the health, or safety. Therefore, neither an and producers have grown accustomed Federal crop insurance program are the Environmental Assessment nor an to mowing the stalks immediately same for all producers regardless of the Environmental Impact Statement is following the cotton picker; and size of their farming operation. For needed. • Producers mow or shred cotton instance, all producers are required to Background stalks so they can plant their winter submit an application and acreage grazing or cover crops. Since cotton FCIC amends the Common Crop report to establish their insurance stalks are woody, the sooner they can Insurance Regulations (7 CFR part 457) guarantees and compute premium mow or shred the stalks, the sooner the by revising 7 CFR 457.104 Cotton Crop amounts, and all producers are required stalks will begin to break down. When Insurance Provisions and 7 CFR 457.105 to submit a notice of loss and a cotton stalk inspection is required, a Extra Long Staple Cotton Crop producer may have to wait up to two production information to determine the Insurance Provisions to be effective for indemnity amount for an insured cause weeks before the field can be mowed. the 2017 and succeeding crop years. Depending on weather and individual of crop loss. Whether a producer has 10 FCIC received requests to simplify acres or 1000 acres, there is no circumstances, the stalk inspection is an program administration consistent with inconvenience to producers and may difference in the kind of information evolving farming practices in cotton collected. To ensure crop insurance is interfere with timely completion of their crop production. normal operations and preparation for available to small entities, the Federal FCIC is issuing this final rule without Crop Insurance Act (FCIA) authorizes the winter/cover crop. opportunity for prior notice and FCIC recognizes the potential FCIC to waive collection of comment. The Administrative administrative fees from limited existence of these issues, but also Procedure Act exempts rules ‘‘relating recognizes there may be situations in resource farmers. FCIC believes this to agency management or personnel or which a cotton stalk inspection has waiver helps to ensure that small to public property, loans, grants, merit or necessity. Therefore, FCIC is entities are given the same opportunities benefits, or contracts’’ from the statutory revising the provision to allow as large entities to manage their risks requirement for prior notice and insurance companies discretion to through the use of crop insurance. A opportunity for public comment (5 require, in certain circumstances, that Regulatory Flexibility Analysis has not U.S.C. 553(a)(2)). However, FCIC is insureds leave the cotton stalks intact been prepared since this regulation does providing a 60-day comment period and for company inspection. FCIC is also not have a significant impact on a invites interested persons to participate revising the provision to allow FCIC to substantial number of small entities, in this rulemaking by submitting written include specific circumstances in the and, therefore, this regulation is exempt comments. FCIC may consider the Special Provisions for which FCIC will from the provisions of the Regulatory comments received and may conduct require insureds to leave cotton stalks Flexibility Act (5 U.S.C. 605). additional rulemaking based on the intact, and FCIC will require the Federal Assistance Program comments. company to conduct a cotton stalk 1. The changes to 7 CFR 457.104 inspection, making discretion This program is listed in the Catalog Cotton Crop Insurance Provisions are as inapplicable when any Special of Federal Domestic Assistance under follows: Provisions circumstance required by No. 10.450. (a) Section 9 (‘‘Duties in the Event of FCIC occurs. Damage or Loss’’)—FCIC is revising (b) Section 10 (‘‘Settlement of Executive Order 12372 paragraph (a). The provisions require, in Claim’’)—FCIC is revising paragraph the event of damage or loss, the insured (c)(1)(i)(E). The current provision states This program is not subject to the must leave cotton stalks intact for the production to count will include, among provisions of Executive Order 12372, insurance provider’s inspection. FCIC other things, all appraised production which require intergovernmental has received requests to remove these for acreage on which cotton stalks were consultation with State and local provisions. The primary reasons destroyed in violation of section 9. As officials. See 2 CFR part 415, subpart C. provided to FCIC for removing the discussed above, FCIC is revising Executive Order 12988 provisions include the following section 9, which is applicable only if the reasons: AIP exercises its discretion under This rule has been reviewed in • University extension in some appropriate circumstances to require accordance with Executive Order 12988 regions recommends destroying the that insureds leave cotton stalks intact. on civil justice reform. The provisions stalks as soon as possible after harvest FCIC is revising paragraph (c)(1)(i)(E) to of this rule will not have a retroactive to mitigate the possibility of insect state this provision applies only if effect. The provisions of this rule will infestation (specifically boll weevil); section 9(a) applies. preempt State and local laws to the • The provision requires cotton to be 2. The changes to 7 CFR 457.105 Extra extent such State and local laws are treated differently than other row crops, Long Staple Cotton Crop Insurance inconsistent herewith. With respect to which do not require the insured to Provisions are as follows: any direct action taken by FCIC or leave stalks intact for inspection; (a) Section 6 (‘‘Insurable Acreage’’)— jstallworth on DSK7TPTVN1PROD with RULES action by FCIC directing the insurance • The provision was originally FCIC is revising paragraph (b) to correct provider to take specific action under written to address multiple harvests on a prior Federal Register official the terms of the crop insurance policy, the same acreage, but today producers publication error that inadvertently the administrative appeal provisions manage their cotton crops to result in resulted in missing language from this published at 7 CFR part 11 must be harvest occurring once a year. Years ago, provision. The words ‘‘. . . normally exhausted before any action against producers planted more late-maturing further care for the crop, must . . .’’ FCIC for judicial review may be brought. varieties and the bolls would open at were not properly published within VerDate Sep<11>2014 15:24 Dec 28, 2015 Jkt 238001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\29DER1.SGM 29DER1

Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations 81161 paragraph (b). This provision was company to conduct a cotton stalk completed and written notice of intended to match the Cotton Crop inspection, making discretion probable loss given to us. Insurance Provisions language found at inapplicable when any Special * * * * * 7 CFR 457.104, section 6(b). Provisions circumstance required by 10. Settlement of Claim (b) Section 9 (‘‘Duties in the Event of FCIC occurs. Damage of Loss’’)—FCIC is revising * * * * * (c) Section 10 (‘‘Settlement of paragraph (a)(2). The provisions require, (c) * * * Claim’’)—FCIC is revising paragraph in the event of damage or loss, the (c)(1)(i)(E). The current provision says (1) * * * insured must leave cotton stalks intact the production to count will include, (i) * * * for the insurance provider’s inspection. among other things, all appraised (E) If applicable, on which the cotton FCIC has received requests to remove production for acreage on which cotton stalks are destroyed, in violation of these provisions. The primary reasons stalks were destroyed in violation of section 9. provided to FCIC for removing the section 9. As discussed above, FCIC is * * * * * provisions include the following revising section 9, which is applicable ■ 3. Amend § 457.105 as follows: reasons: only if the AIP exercises its discretion • University extension in some under appropriate circumstances to ■ a. In the introductory text, by regions recommends destroying the removing ‘‘2014’’ and adding ‘‘2017’’ in require that insureds leave cotton stalks its place; stalks as soon as possible after harvest intact. FCIC is revising paragraph to mitigate the possibility of insect ■ b. By revising sections 6(b), 9(a)(2), (c)(1)(i)(E) to state this provision applies infestation (specifically boll weevil); 10(c)(1)(i)(E), and the last sentence in only if section 9(a)(2) applies. • The provision requires cotton to be section 12(b). treated differently than other row crops, (e) Section 12 (‘‘Prevented The revisions read as follows: which do not require the insured to Planting’’)—FCIC is removing the leave stalks intact for inspection; reference to limited level of coverage in § 457.105 Extra Long Staple Cotton crop • The provision was originally section 12(b) because it is no longer insurance provisions. written to address multiple harvests on applicable. * * * * * the same acreage, but today producers List of Subjects in 7 CFR Part 457 6. Insurable Acreage manage their cotton crops to result in * * * * * harvest occurring once a year. Years ago, Crop insurance, Cotton, Reporting and recordkeeping requirements. (b) Any acreage of the insured crop producers planted more late-maturing damaged before the final planting date, varieties and the bolls would open at Final Rule to the extent that a majority of different times during the harvest Accordingly, as set forth in the producers in the area would not season causing a producer to pick the preamble, the Federal Crop Insurance normally further care for the crop, must same acreage twice. • Cotton farming practices have Corporation amends 7 CFR part 457 be replanted unless we agree that it is changed in some regions over the years effective for the 2017 and succeeding not practical to replant. and producers have grown accustomed crop years as follows: * * * * * to mowing the stalks immediately 9. Duties in the Event of Damage or following the cotton picker; and PART 457—COMMON CROP Loss • Producers mow or shred cotton INSURANCE REGULATIONS (a) * * * stalks so they can plant their winter (2) At our option or if required by grazing or cover crops. Since cotton ■ 1. The authority citation for 7 CFR FCIC in the Special Provisions, you may stalks are woody, the sooner they can part 457 continues to read as follows: be required to leave the cotton stalks mow or shred the stalks, the sooner the Authority: 7 U.S.C. 1506(l) and 1506(o). intact for our inspection. If applicable, stalks will begin to break down. When the stalks must not be destroyed, and a cotton stalk inspection is required, a ■ 2. Amend § 457.104 as follows: required samples must not be harvested, producer may have to wait up to two ■ a. In the introductory text, by until the earlier of our inspection or 15 weeks before the field can be mowed. removing ‘‘2011’’ and adding ‘‘2017’’ in days after harvest of the balance of the Depending on weather and individual its place; and unit is completed and written notice of circumstances, the stalk inspection is an ■ b. By revising sections 9(a) and probable loss is given to us. inconvenience to producers and may 10(c)(1)(i)(E). * * * * * interfere with timely completion of their The revisions read as follows: normal operations and preparation for 10. Settlement of Claim § 457.104 Cotton crop insurance * * * * * the winter/cover crop. provisions. FCIC recognizes the potential (c) * * * existence of these issues, but also * * * * * (1) * * * recognizes there may be situations in 9. Duties in the Event of Damage or (i) * * * which a cotton stalk inspection has Loss (E) If applicable, on which the cotton merit or necessity. Therefore, FCIC is (a) In addition to your duties under stalks are destroyed, in violation of revising the provision to allow section 14 of the Basic Provisions, in the section 9. insurance companies discretion to event of damage or loss, at our option require, in certain circumstances, that or if required by FCIC in the Special * * * * * jstallworth on DSK7TPTVN1PROD with RULES insureds leave the cotton stalks intact Provisions, you may be required to leave 12. Prevented Planting for company inspection. FCIC is also the cotton stalks intact for our * * * * * revising the provision to allow FCIC to inspection. If applicable, the stalks must (b) * * * If you have additional include specific circumstances in the not be destroyed, and required samples coverage and pay an additional Special Provisions for which FCIC will must not be harvested, until the earlier premium, you may increase your require insureds to leave cotton stalks of our inspection or 15 days after prevented planting coverage to a level intact, and FCIC will require the harvest of the balance of the unit is specified in the actuarial documents. VerDate Sep<11>2014 15:24 Dec 28, 2015 Jkt 238001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\29DER1.SGM 29DER1

81162 Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 / Rules and Regulations Signed in Washington, DC, on December Division, (202) 649–6350; Priscilla Act (Dodd-Frank Act),1 and effective 17, 2015. Benner, Attorney, Legislative and July 21, 2011, CRA rulemaking authority Brandon Willis, Regulatory Activities Division, (202) for federal and state savings associations Manager, Federal Crop Insurance 649–5490; for persons who are deaf or was transferred from the OTS to the Corporation. hard of hearing, TTY, (202) 649–5597; OCC, and the OCC subsequently [FR Doc. 2015–32308 Filed 12–28–15; 8:45 am] or Bobbie K. Kennedy, Bank Examiner, republished, at 12 CFR 195, the CRA BILLING CODE 3410–08–P Compliance Policy Division, (202) 649– regulations applicable to those 5470, Office of the Comptroller of the institutions.2 In addition, the Dodd- Currency, 400 7th Street SW., Frank Act transferred responsibility for DEPARTMENT OF THE TREASURY Washington, DC 20219. supervision of savings and loan holding Board: Amal S. Patel, Senior companies and their non-depository Office of the Comptroller of the Supervisory Consumer Financial subsidiaries from the OTS to the Board Currency Services Analyst, (202) 912–7879; or and the Board subsequently amended its Nikita Pastor, Counsel, (202) 452–3667, CRA regulation to reflect this transfer of 12 CFR Parts 25 and 195 Division of Consumer and Community supervisory authority.3 Affairs, Board of Governors of the The threshold for small banks and [Docket ID OCC–2015–0025] Federal Reserve System, 20th Street and small savings associations was revised RIN 1557–AE01 Constitution Avenue NW., Washington, most recently in December 2014, and DC 20551. became effective January 1, 2015 (79 FR FEDERAL RESERVE SYSTEM FDIC: Patience R. Singleton, Senior 77852 (Dec. 29, 2014)). The current CRA Policy Analyst, Supervisory Policy regulations provide that banks and 12 CFR Part 228 Branch, Division of Depositor and savings associations that, as of [Regulation BB; Docket No. R–1526] Consumer Protection, (202) 898–6859; December 31 of either of the prior two or Richard M. Schwartz, Counsel, Legal calendar years, had assets of less than RIN 7100–AE40 Division, (202) 898–7424, Federal $1.221 billion are small banks or small Deposit Insurance Corporation, 550 17th savings associations. Small banks and FEDERAL DEPOSIT INSURANCE Street NW., Washington, DC 20429. small savings associations with assets of CORPORATION SUPPLEMENTARY INFORMATION: at least $305 million as of December 31 of both of the prior two calendar years 12 CFR Part 345 Background and Description of the and less than $1.221 billion as of RIN 3064–AD90 Joint Final Rule December 31 of either of the prior two The Agencies’ CRA regulations calendar years are intermediate small Community Reinvestment Act banks or intermediate small savings Regulations establish CRA performance standards for small and intermediate small banks associations. 12 CFR 25.12(u)(1), and savings associations. The CRA 195.12(u)(1), 228.12(u)(1), and AGENCY: Office of the Comptroller of the regulations define small and 345.12(u)(1). This joint final rule revises Currency, Treasury (OCC); Board of intermediate small banks and savings these thresholds. Governors of the Federal Reserve System (Board); and Federal Deposit associations by reference to asset-size During the period ending November Insurance Corporation (FDIC). criteria expressed in dollar amounts, 2015, the CPI–W decreased by 0.42 ACTION: Joint final rule; technical and they further require the Agencies to percent. As a result, the Agencies are amendment. publish annual adjustments to these revising 12 CFR 25.12(u)(1), dollar figures based on the year-to-year 195.12(u)(1), 228.12(u)(1), and SUMMARY: The OCC, the Board, and the change in the average of the CPI–W, not 345.12(u)(1) to make this annual FDIC (collectively, the Agencies) are seasonally adjusted, for each twelve- adjustment. Beginning January 1, 2016, amending their Community month period ending in November, with banks and savings associations that, as Reinvestment Act (CRA) regulations to rounding to the nearest million. 12 CFR of December 31 of either of the prior two adjust the asset-size thresholds used to 25.12(u)(2), 195.12(u)(2), 228.12(u)(2), calendar years, had assets of less than define ‘‘small bank’’ or ‘‘small savings and 345.12(u)(2). This adjustment $1.216 billion are small banks or small association’’ and ‘‘intermediate small formula was first adopted for CRA savings associations. Small banks and bank’’ or ‘‘intermediate small savings purposes by the OCC, the Board, and the small savings associations with assets of association.’’ As required by the CRA FDIC on August 2, 2005, effective at least $304 million as of December 31 regulations, the adjustment to the September 1, 2005. 70 FR 44256 (Aug. of both of the prior two calendar years threshold amount is based on the 2, 2005). The Agencies noted that the and less than $1.216 billion as of annual percentage change in the CPI–W is also used in connection with December 31 of either of the prior two Consumer Price Index for Urban Wage other federal laws, such as the Home calendar years are intermediate small Earners and Clerical Workers (CPI–W). Mortgage Disclosure Act. See 12 U.S.C. banks or intermediate small savings The Agencies also propose to make 2808; 12 CFR 1003.2. On March 22, associations. The Agencies also publish technical edits to remove obsolete 2007, and effective July 1, 2007, the current and historical asset-size references to the Office of Thrift former OTS, the agency then thresholds on the Web site of the Supervision (OTS) and update cross- responsible for regulating savings Federal Financial Institutions references to regulations implementing Examination Council at http:// jstallworth on DSK7TPTVN1PROD with RULES associations, adopted an annual certain Federal consumer financial laws adjustment formula consistent with that www.ffiec.gov/cra/. in their CRA regulations. of the other federal banking agencies in DATES: January 1, 2016. its CRA rule previously set forth at 12 1 Pub. L. 111–203, 124 Stat. 1376 (2010). FOR FURTHER INFORMATION CONTACT: CFR 563e. 72 FR 13429 (Mar. 22, 2007). 2 See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011). OCC: Margaret Hesse, Senior Counsel, Pursuant to the Dodd-Frank Wall 3 See Board interim final rule, 76 FR 56508 (Sept. Community and Consumer Law Street Reform and Consumer Protection 13, 2011). VerDate Sep<11>2014 15:24 Dec 28, 2015 Jkt 238001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\29DER1.SGM 29DER1


Document Created: 2015-12-29 10:15:46
Document Modified: 2015-12-29 10:15:46
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 final rule is effective December 29, 2015. However, FCIC will accept written comments on this final rule until close of business February 29, 2016. FCIC may consider the comments received and may conduct additional rulemaking based on the comments.
ContactTim Hoffmann, Product Management, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, PO Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730.
FR Citation80 FR 81159 
RIN Number0563-AC47
CFR AssociatedCrop Insurance; Cotton and Reporting and Recordkeeping Requirements
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