82_FR_55948 82 FR 55723 - Catastrophic Risk Protection Endorsement; Area Risk Protection Insurance Regulations; and the Common Crop Insurance Regulations, Basic Provisions

82 FR 55723 - Catastrophic Risk Protection Endorsement; Area Risk Protection Insurance Regulations; and the Common Crop Insurance Regulations, Basic Provisions

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 82, Issue 225 (November 24, 2017)

Page Range55723-55734
FR Document2017-25330

The Federal Crop Insurance Corporation (FCIC) amends the Catastrophic Risk Protection Endorsement, the Area Risk Protection Insurance Basic Provisions, and the Common Crop Insurance Policy Basic Provisions to revise and clarify policy provisions and reduce burden on producers choosing to insure their crops. The changes to the policy made in this rule are applicable for the 2018 and succeeding crop years for all crops with a 2018 contract change date on or after the effective date of the rule, and for the 2019 and succeeding crop years for all crops with a 2018 contract change date prior to the effective date of the rule.

Federal Register, Volume 82 Issue 225 (Friday, November 24, 2017)
[Federal Register Volume 82, Number 225 (Friday, November 24, 2017)]
[Rules and Regulations]
[Pages 55723-55734]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25330]



========================================================================
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. 

========================================================================


Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / 
Rules and Regulations

[[Page 55723]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 402, 407, and 457

[Docket No. FCIC-17-0004]
RIN 0563-AC56


Catastrophic Risk Protection Endorsement; Area Risk Protection 
Insurance Regulations; and the Common Crop Insurance Regulations, Basic 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Catastrophic Risk Protection Endorsement, the Area Risk Protection 
Insurance Basic Provisions, and the Common Crop Insurance Policy Basic 
Provisions to revise and clarify policy provisions and reduce burden on 
producers choosing to insure their crops. The changes to the policy 
made in this rule are applicable for the 2018 and succeeding crop years 
for all crops with a 2018 contract change date on or after the 
effective date of the rule, and for the 2019 and succeeding crop years 
for all crops with a 2018 contract change date prior to the effective 
date of the rule.

DATES: This final rule is effective November 24, 2017. However, FCIC 
will accept written comments on this final rule until close of business 
January 23, 2018. 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-17-0004, 
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 rmaweb.content@rma.usda.gov.
    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: 

Background

    1. FCIC is revising section 6(f) to the CAT Endorsement (7 CFR part 
402) to remove the date of June 1 from the conservation compliance 
provisions and instead refer to the premium billing date. This will 
provide more flexibility to policyholders and allow the conservation 
compliance certification process for crop insurance to be administered 
more consistently with the way it is administered for other USDA 
programs. Under the new provisions, policyholders must still have a 
valid AD-1026 on file with the Farm Service Agency (FSA) for the 
reinsurance year to be eligible for premium subsidy; however, the AD-
1026 does not have to be completed by June 1 of the preceding 
reinsurance year. While June 1 was believed to be an appropriate 
timeframe in which the AD-1026 needed to be signed, after two years 
since initial implementation a more streamlined approach is warranted 
to provide administrative efficiencies for both producers and FCIC/FSA 
without impacting the appropriate determinations of compliance. 
Insurance providers can confirm whether a policyholder has a valid AD-
1026 on file, via data received from FCIC, as of the premium billing 
date, and any policyholder without an AD-1026 on file will be billed 
the full unsubsidized premium. To effectuate these changes, FCIC has 
revised section 6(f)(2) to clarify the date by which producers must be 
determined to be eligible for premium subsidy. FCIC has also added 
section 6(f)(2)(i)(A) to remove the June 1 deadline from the FCIC 
language providing exceptions from the requirement to file an AD-1026 
for producers who are new to farming, new to crop insurance, a new 
entity, or have not previously been required to file form AD-1026 and 
to specify that policyholders must certify to the exception by the 
premium billing date. The FCIC exceptions allow new producers 
certifying they meet the exception criteria by the premium billing date 
to receive premium subsidy for the initial reinsurance year while 
providing the flexibility to file form AD-1026 with FSA by the premium 
billing date of the subsequent reinsurance year to maintain premium 
subsidy eligibility. Subparagraph (B) was added to section 6(f)(2)(i) 
to reference FSA relief provisions

[[Page 55724]]

contained in 7 CFR part 12 that provide additional time to file an AD-
1026 if producers are unable to file due to circumstances beyond their 
control and provides additional time to provide required information if 
the AD-1026 is timely filed but the producer is unable to timely 
provide the information due to circumstances beyond their control. FCIC 
has determined these changes will have no impact on the proper 
determinations of conservation compliance regarding Highly Erodible 
Land/Wetland Compliance violations under 7 CFR part 12. These changes 
are intended to increase the opportunity for producers to comply with 
the form AD-1026 conservation compliance certification requirement and 
decrease the likelihood of producers who have not committed a violation 
from becoming ineligible for premium subsidy.
    2. The specific changes to the Area Risk Protection Insurance Basic 
Provisions (7 CFR part 407) are as follows:
    (a) Section 1--FCIC is revising the definition of ``good farming 
practices'' for clarification by removing the reference to an organic 
plan, because an organic plan and good farming practice determinations 
serve two different purposes. An organic plan is a written plan that 
describes organic farming practices, but does not necessarily provide a 
comprehensive list of good farming practices. FCIC is also reorganizing 
the definition to improve readability.
    FCIC is revising the definition of ``limited resource farmer'' by 
updating the Web site for the USDA definition because the Web site 
address had become out of date.
    FCIC is revising the name of the definition of ``RMA's Web site'' 
to ``RMA's Web site'' because the uncapitalized, one-word term is more 
commonly used. FCIC is also correcting references to this term 
throughout the policy.
    (b) Section 2--FCIC is revising section 2(j) to add a new paragraph 
(2) that clarifies that with the policyholder's consent the premium and 
administrative fees can be offset from any indemnity due the 
policyholder even if the offset occurs before the fees are billed. This 
change clarifies the issues raised in Final Agency Determination-147 
and allows insurance providers the latitude to contact the policyholder 
and inquire as to whether the policyholder would agree to have the 
``unbilled'' administrative fees and premium offset from the remaining 
amount of the loss. FCIC is redesignating paragraph 2(j)(2) as 2(j)(3).
    FCIC is revising section 2(k)(2)(i)(D) to update the years used in 
the example so that it reflects more recent crop years.
    FCIC is revising section 2(k)(3)(ii) to reference subpart U 
regarding written payment agreements and deleting the parenthetical 
from this provision. FCIC is removing the prohibition on a policyholder 
entering into a written payment agreement if they previously failed to 
make a scheduled payment under any payment agreement to give insurance 
providers the flexibility to enter into these agreements. Subpart U 
provides information regarding written payment agreements. Subpart U 
provides that only one written payment agreement is permitted per 
termination date. Subpart U also provides other requirements for 
written payment agreements such as a written payment agreement cannot 
exceed two years in duration and a written payment agreement cannot be 
modified after it has been executed. Subpart U does not restrict a 
policyholder from entering into a written payment agreement if they 
previously failed to make a payment under an agreement. By referring to 
subpart U, FCIC will not need to make updates to the Basic Provisions 
when changes are made to subpart U.
    FCIC is revising section 2(p)(2) to update the years used in the 
example so that it reflects more recent crop years.
    (c) Section 7--FCIC is revising section 7(i) to remove the date of 
June 1 from the conservation compliance provisions and instead refer to 
the premium billing date. This will provide more flexibility to 
policyholders and allow the conservation compliance certification 
process for crop insurance to be administered more consistently with 
the way it is administered for other USDA programs. Under the new 
provisions, policyholders must still have a valid AD-1026 on file with 
FSA for the reinsurance year to be eligible for premium subsidy; 
however, the AD-1026 does not have to be completed by June 1 of the 
preceding reinsurance year. While June 1 was believed to be an 
appropriate timeframe in which the AD-1026 needed to be signed, after 
two years since initial implementation a more streamlined approach is 
warranted to provide administrative efficiencies for both producers and 
FCIC/FSA without impacting the appropriate determinations of 
compliance. Insurance providers can confirm whether a policyholder has 
a valid AD-1026 on file, via data received from FCIC, as of the premium 
billing date, and a policyholder without an AD-1026 on file will be 
billed the full unsubsidized premium. To effectuate these changes FCIC 
has revised section 7(i)(2) to clarify the date by which producers must 
be determined to be eligible for premium subsidy. FCIC has also added 
section 7(i)(2)(i)(A) to remove the June 1 deadline from the FCIC 
language providing exceptions from the requirement to file an AD-1026 
for producers who are new to farming, new to crop insurance, a new 
entity, or have not previously been required to file form AD-1026 and 
to specify that policyholders must certify to the exception by the 
premium billing date. The FCIC exceptions allow new producers 
certifying they meet the exception criteria by the premium billing date 
to receive premium subsidy for the initial reinsurance year while 
providing the flexibility to file form AD-1026 with FSA by the premium 
billing date of the subsequent reinsurance year to maintain premium 
subsidy eligibility. Subparagraph (B) was added to section 7(i)(2)(i) 
to reference FSA relief provisions contained in 7 CFR part 12 that 
provide additional time to file an AD-1026 if producers are unable to 
file due to circumstances beyond their control and provides additional 
time to provide required information if the AD-1026 is timely filed but 
the producer is unable to timely provide the information due to 
circumstances beyond their control. FCIC has determined these changes 
will have no impact on the proper determinations of conservation 
compliance regarding Highly Erodible Land/Wetland Compliance 
violations. These changes are intended to increase the opportunity for 
producers to comply with the form AD-1026 conservation compliance 
certification requirement and decrease the likelihood of producers who 
have not committed a violation from becoming ineligible for premium 
subsidy.
    3. The changes to the Common Crop Insurance Regulations, Basic 
Provisions (7 CFR part 457) are as follows:
    (a) Preamble--FCIC is revising the order of priority in the 
preamble to include the actuarial documents. By definition, the 
actuarial documents are a part of the policy and should be included in 
the order of priority. The actuarial documents will follow the Special 
Provisions in the order of priority.
    (b) Section 1--FCIC is revising the definition of ``Cooperative 
Extension System'' by replacing the reference to the ``Cooperative 
State Research, Education, and Extension Service'' to the ``National 
Institute of Food and Agriculture.'' This change is being made to 
reference the correct entity.

[[Page 55725]]

    FCIC is revising the name of the definition of ``FSA farm serial 
number'' to ``FSA farm number'' because the term ``FSA farm serial 
number'' is no longer used. FCIC is also correcting references to this 
term throughout the policy.
    FCIC is revising the definition of ``good farming practices'' for 
clarification by removing the reference to an organic plan, because an 
organic plan and good farming practice determinations serve two 
different purposes. An organic plan is a written plan that describes 
organic farming practices, but does not necessarily provide a 
comprehensive list of good farming practices. FCIC is also reorganizing 
the definition to improve readability.
    FCIC is revising the definition of ``price election'' by replacing 
the phrase ``Special Provisions, or in an addendum thereto'' with the 
phrase ``actuarial documents'' because price elections are contained in 
the actuarial documents.
    FCIC is revising the definition of ``replanted crop'' to address 
how to calculate production to count in the event of a claim if the 
insurance provider determines it is not practical to replant and the 
policyholder plants the acreage to the same insured crop.
    The rules surrounding ``practical to replant'' are designed for a 
failed crop to be replanted with the replant expenses covered by the 
insurance policy. In most cases, if there is a reasonable chance 
harvesting some production from the replanted crop and thereby provides 
assistance for impacted policyholders to grow the crop they intended. 
This assists policyholders while potentially reducing costs for the 
taxpayer, potentially lowers premium rates, and provides the potential 
for growers to have higher insurance guarantees in subsequent years 
than would otherwise be the case. If there is not a reasonable chance 
of at least some production, then the policyholder should not replant 
the crop.
    If, later, the policyholder decides to replant the crop for the 
same intended use, then the policyholder is indicating that there is a 
reasonable chance of some production. Any production from the replanted 
crop is applied against the losses from the initial crop.
    In relation to ``replanted crops,'' concerns have been raised that 
if an insurance provider determines that it is not practical to replant 
a crop and the policyholder plants the acreage to the same insured 
crop, it is possible the replanted crop could have less production to 
count than the appraised production on the initially planted crop. 
Allowing the policyholder to receive the larger claim, creates a moral 
hazard situation, where the policyholders could receive a larger 
indemnity from replanting a crop when it may not be practical to do so. 
It is not the intent of FCIC to pay producers a full indemnity for a 
crop and then they successfully plant and harvest the same crop for the 
same intended use after the late planting period. Therefore, FCIC has 
determined the indemnity should be based on the greater of: (1) The 
appraised production on the initially planted crop; (2) the subsequent 
appraisal of the replanted crop if the replanted crop is not harvested; 
or (3) the harvested production from the replanted crop.
    FCIC is also revising the definition of ``replanted crop'' to 
accommodate growing practices of producers. The rationale behind 
``replanted crop'' rules is to ensure that producers are not paid a 
full indemnity and subsequently plant the same crop for the same 
purpose to harvest. If a producer plants the same crop, then a full 
indemnity should not be paid on the initially planted crop and FCIC 
should ensure that taxpayer losses are lessened if the second attempt 
to plant the crop results in a better yield than the initially planted 
crop.
    Specifically, FCIC is revising the definition of ``replanted crop'' 
to state unless otherwise specified in the Special Provisions, the crop 
will be considered an insured replanted crop and no replanting payment 
will be paid if the insurance provider has determined: (1) It is not 
practical to replant the insured crop, and (2) the policyholder chooses 
to plant the acreage to the same insured crop within or prior to the 
late planting period, or after the final planting date if no late 
planting period is applicable.
    FCIC is making this change to clarify that anytime the acreage is 
replanted to the same crop within or prior to the late planting period, 
it will be considered a replanted crop. However, FCIC also recognizes 
that in some situations a producer replants the same crop much later 
and for a different purpose. For example, a crop is damaged and it is 
determined not practical to replant. However, after the late planting 
period, conditions allow a policyholder to plant a crop with no 
intention of harvesting for grain but rather the chance of harvesting 
for livestock feed. This revision will allow a claim to be paid for the 
initially seeded crop and not be impacted by the late planted crop 
which was never intended to be harvested as grain.
    Additionally, the revisions provides FCIC flexibility to clarify by 
Special Provisions certain situations where a crop is replanted to the 
same crop and when it will or will not be considered a replanted crop. 
This flexibility addressed those crops that have no late planting 
period or late planting periods that are a few days.
    FCIC is revising the name of the definition of ``RMA's Web site'' 
to ``RMA's Web site'' because the uncapitalized, one-word term is more 
commonly used. FCIC is also correcting references to this term 
throughout the policy.
    (c) Section 2--FCIC is revising section 2(e) to add a new paragraph 
(2) that clarifies that with the policyholder's consent the premium and 
administrative fees can be offset from any prevented planting or 
indemnity due the policyholder even if the offset occurs before the 
fees are billed. This change clarifies the issues raised in Final 
Agency Determination-147 and allows insurance providers the latitude to 
contact the policyholder and inquire as to whether the policyholder 
would agree to have the ``unbilled'' administrative fees and premium 
offset from the remaining amount of the loss.
    FCIC is revising section 2(f)(2)(i)(D) to update the years used in 
the example to reflect more recent crop years.
    FCIC is revising section 2(f)(3)(ii) to reference subpart U 
regarding written payment agreements and deleting the parenthetical 
from this provision. FCIC is removing the prohibition that does not 
allow a policyholder to enter into a written payment agreement if they 
previously failed to make a payment under an agreement to give 
insurance providers the flexibility to enter into these agreements. 
Subpart U provides information regarding written payment agreements. 
Subpart U provides that only one written payment agreement is permitted 
per termination date. It also provides other requirements for written 
payment agreements such as a written payment agreement cannot exceed 
two years in duration and a written payment agreement cannot be 
modified after it has been executed. Subpart U does not restrict a 
policyholder from entering into a written payment agreement if they 
previously failed to make a payment under an agreement. By referring to 
subpart U, FCIC will not need to make updates to the Basic Provisions 
when changes are made to subpart U.
    FCIC is revising section 2(f)(5) to update the years used in the 
example to reflect more recent crop years.
    FCIC is removing section 2(j) because this provision is unnecessary 
since there are no longer maximum allowable amounts of administrative 
fees. Previously, when there were caps, there needed to be a way to 
inform insurance

[[Page 55726]]

providers when the cap had been met in those situations where the 
policyholder insured with more than one insurance provider. FCIC is 
redesignating paragraph 2(k) as 2(j).
    (d) Section 3--FCIC is revising section 3(f)(3) to allow these 
provisions to be changed in the Special Provisions. This change 
provides flexibility to amend the production reporting dates and the 
manner in which production reports are submitted if it is determined 
appropriate to better meet the needs of the program and policyholders.
    FCIC is revising section 3(h)(1) by changing the reference of 
``valid basis'' to ``valid agronomic basis'' to be consistent with 
section 3(h)(2). This will allow FCIC to require the same basis for 
supporting both the excessive yields and inconsistent yields and will 
clarify that factors related to the soil and crop productivity will be 
considered when determining whether yields should be considered 
acceptable.
    (e) Section 6--FCIC is revising section 6(a)(3) to add a new 
paragraph (iii) that provides if the policyholder planted the insured 
crop on or within five days prior to the final planting date and the 
final planting date is five or fewer days prior to the acreage 
reporting date, the policyholder must submit an acreage report no later 
than five days after the acreage reporting date. This allows 
policyholders adequate time to submit their acreage reports if the 
insured crop's acreage reporting date is the same as or closely follows 
the final planting date.
    (f) Section 7--FCIC is revising section 7(h) to remove the date of 
June 1 from the conservation compliance provisions and instead refer to 
the premium billing date. This will provide more flexibility to 
policyholders and allows the conservation compliance certification 
process for crop insurance to be administered more consistently with 
the way it is administered for other USDA programs. Under the new 
provisions, policyholders must still have a valid AD-1026 on file with 
FSA for the reinsurance year to be eligible for premium subsidy; 
however, the AD-1026 does not have to be completed by June 1 of the 
preceding reinsurance year. While June 1 was believed to be an 
appropriate timeframe in which the AD-1026 needed to be signed, after 
two years since initial implementation a more streamlined approach is 
warranted to provide administrative efficiencies for both producers and 
FCIC/FSA without impacting the appropriate determinations of 
compliance. Insurance providers can confirm whether a policyholder has 
a valid AD-1026 on file, via data received from FCIC, as of the premium 
billing date, and any policyholder without an AD-1026 on file will be 
billed the full unsubsidized premium. To effectuate these changes, FCIC 
has revised section 7(h)(2) to clarify the date by which producers must 
be determined to be eligible for premium subsidy. FCIC has also added 
section 7(h)(2)(i)(A) to remove the June 1 deadline from the FCIC 
language providing exceptions from the requirement to file an AD-1026 
for producers who are new to farming, new to crop insurance, a new 
entity, or have not previously been required to file form AD-1026 and 
to specify that policyholders must certify to the exception by the 
premium billing date. The FCIC exceptions allow new producers 
certifying they meet the exception criteria by the premium billing date 
to receive premium subsidy for the initial reinsurance year while 
providing the flexibility to file form AD-1026 with FSA by the premium 
billing date of the subsequent reinsurance year to maintain premium 
subsidy eligibility. Subparagraph (B) was added to section 7(h)(2)(i) 
to reference FSA relief provisions contained in 7 CFR part 12 that 
provide additional time to file an AD-1026 if producers are unable to 
file due to circumstances beyond their control and provides additional 
time to provide required information if the AD-1026 is timely filed but 
the producer is unable to timely provide the information due to 
circumstances beyond their control. FCIC has determined these changes 
will have no impact on the proper determinations of conservation 
compliance regarding Highly Erodible Land/Wetland Compliance 
violations. These changes are intended to increase the opportunity for 
producers to comply with the form AD-1026 conservation compliance 
certification requirement and decrease the likelihood of producers who 
have not committed a violation from becoming ineligible for premium 
subsidy.
    (g) Section 9--FCIC is revising section 9(a)(2)(viii)(A) by 
changing the reference to the ``Group Risk Protection Plan of 
Insurance'' to ``Area Risk Protection Insurance'' because the Group 
Risk Protection Plan of Insurance was replaced with Area Risk 
Protection Insurance for the 2014 and succeeding crop years.
    (h) Section 17--FCIC is revising section 17(f)(9) by changing the 
reference to ``manpower'' to ``labor'' to update the term to be gender 
neutral.
    (i) Section 18--FCIC is revising sections 18(c)(1) and (2) by 
replacing the phrase ``Special Provisions, or in an addendum thereto'' 
with the phrase ``actuarial documents'' as price elections are 
contained in the actuarial documents.
    FCIC is revising section 18(e)(2)(i)(B) to remove the requirement 
that a written agreement to insure acreage that is greater than five 
percent of the planted acreage in the unit where the acreage has not 
been planted and harvested or insured in any of the three previous crop 
years (commonly referred to as new breaking acreage) must be requested 
by the acreage reporting date. The Special Provisions have previously 
been utilized to require a written agreement on such acreage be 
requested by the sales closing date. By removing this language from 
this section, the deadline to request this type of written agreement 
will revert to section 18(a), making the deadline the sales closing 
date and allowing the Special Provisions statement to be removed.
    FCIC is removing section 18(e)(3) because any additional land or 
additional crop must meet the request deadlines of section 18(a) or 
18(e) regardless of whether the additional land or additional crop will 
be added to an existing written agreement or a request for a written 
agreement. Therefore, this language is not needed.
    FCIC is revising section 18(f)(1)(ii) to remove language regarding 
the information needed to determine the approved yield. By specifying 
that the completed actual production history (APH) must be based on 
verifiable records of actual yields for the crop and county, the APH 
already contains the information needed to determine the approved 
yield. The revision is made because the language is redundant.
    FCIC is also revising section 18(f)(1)(ii) to remove the 
requirement of the policyholder's signature on the completed APH 
submitted with the written agreement request. The policyholder 
certifies to the insurance provider each year the yields on the APH for 
the year the crop is produced and any required signatures are obtained 
by the insurance provider from the policyholder at that time. Requiring 
a policyholder's signature on the APH for a written agreement request 
is redundant.
    FCIC is revising section 18(f)(1)(iii) to add ``the crop'' as an 
option for evidence of adaptability. Making this change clarifies that 
for situations when the crop is not insurable, evidence of adaptability 
can only be required for the crop itself, and is not required to be 
broken down by practice, type, or variety. The current practice, type, 
or variety language is intended for when the crop may be insurable, but 
the

[[Page 55727]]

requested practice, type, or variety is not.
    FCIC is removing section 18(f)(1)(vi) to clarify that ``all other 
information'' is not a requirement to obtain a written agreement. The 
policyholder may still provide any other information they wish to 
support their request for written agreement, but the policyholder is 
only required to submit the information identified in sections 18(f).
    FCIC is revising section 18(f)(2)(i) to clarify this section is not 
only applicable to crops previously planted, it is also applicable to 
perennial crops that have previously produced a crop. Due to the nature 
of how long some perennial crops take to produce after planting the 
crop, specifying ``perennial crops that have previously produced a 
crop'' instead of ``planted'' clarifies the language for how perennial 
crops are affected.
    FCIC is also revising section 18(f)(2)(i) to allow an entity to use 
the production history from a substantial beneficial interest in the 
entity that has a history of growing the crop to qualify for a written 
agreement. This revision will allow a newly formed entity a pathway to 
qualify for a written agreement, whereas previously the newly formed 
entity was required to grow the crop, or a similar crop, for a minimum 
of three years before the new entity could qualify, even if substantial 
beneficial interests of the entity had previously grown the crop.
    FCIC is revising section 18(f)(2)(i)(A) to remove the requirement 
of the policyholder's signature on the completed APH submitted with the 
written agreement request. If the policyholder has insured the crop in 
the county or area, then the yields used on the APH have already been 
certified by the policyholder each year the production report was 
provided, and any required signatures are obtained by the insurance 
provider from the policyholder at that time. If the crop was not 
insured, then verifiable records must be submitted with the written 
agreement request. In both cases, requiring a policyholder's signature 
on the APH for a written agreement request is redundant. Therefore, 
removing the APH signature requirement increases efficiency for written 
agreement requests and is less burdensome to the policyholder.
    FCIC is also revising section 18(f)(2)(i)(A) of the Basic 
Provisions to state the completed APH is based on verifiable production 
records of actual yields for the crop to be consistent with the APH 
requirement for other written agreement request types.
    FCIC is revising section 18(f)(2)(i)(B) to clarify this section is 
also applicable to perennial crops that have previously produced a 
crop. As stated above, due to the nature of how long some perennial 
crops take to produce after planting the crop, specifying ``perennial 
crops that have previously produced a crop'' instead of ``planted'' 
clarifies the language for how perennial crops are affected.
    FCIC is revising section 18(f)(2)(i)(B)(2) to remove the 
requirement that the policyholder must insure the crop for the three 
previous crop years before they can substitute a year of insurance 
experience for a year of verifiable records. This change will allow the 
policyholder to use their insured crop's information for any year that 
the policyholder has insured the crop instead of providing verifiable 
records. For example, if the policyholder has produced the requested 
crop for three years and insured the requested crop for one year, 
verifiable records only have to be submitted for the two years the 
requested crop was not insured. For the year that the crop was insured 
the policyholder does not have to provide verifiable records.
    FCIC is also revising section 18(f)(2)(i)(B)(2) to allow an entity 
to use the production history from a substantial beneficial interest in 
the entity that has a history of growing the crop to qualify for a 
written agreement. As stated above, this revision will allow a newly 
formed entity a pathway to qualify for a written agreement, whereas 
previously the newly formed entity was required to grow the crop, or a 
similar crop, for a minimum of three years before the new entity could 
qualify, even if substantial beneficial interests of the entity had 
previously grown the crop.
    FCIC is adding a new section 18(f)(2)(i)(B)(3) to state that FCIC 
will not consider any crop year in which the crop was planted outside 
of the most recent ten crop years as a year of previously planting the 
crop, or produced a crop if the crop is a perennial crop, unless 
verifiable production records are provided, or the crop was insured for 
that crop year. This change reduces the burden on policyholders by not 
requiring them to bring in the requested crop verifiable records from 
over ten years ago, which would allow the use of similar crop 
provisions in section 18(f)(2)(ii) to fulfill the requirement if the 
policyholder has not grown the requested crop for three crop years in 
the last ten years, even if the policyholder produced the requested 
crop more than ten years ago.
    FCIC is revising section 18(f)(2)(ii) to clarify this section is 
not only applicable to crops previously planted, it is also applicable 
to perennial crops that have previously produced a crop. As stated 
above, due to the nature of how long some perennial crops take to 
produce after the crop is planted, specifying ``perennial crops that 
have previously produced a crop'' instead of ``planted'' clarifies the 
language for how perennial crops are affected.
    FCIC is also revising section 18(f)(2)(ii) to allow an entity to 
use the production history from a substantial beneficial interest in 
the entity that has a history of growing the crop to qualify for a 
written agreement. As stated above, this revision will allow a newly 
formed entity a pathway to qualify for a written agreement, whereas 
previously the newly formed entity was required to grow the crop, or a 
similar crop, for a minimum of three years before the new entity could 
qualify, even if substantial beneficial interests of the entity had 
previously grown the crop.
    FCIC is revising section 18(f)(2)(ii)(A) to remove the requirement 
of the policyholder's signature on the completed APH submitted with the 
written agreement request. As stated above, if the policyholder has 
insured the crop in the county or area, then the yields used on the APH 
have already been certified to the insurance provider each year the 
production report was provided, and any required signatures are 
obtained by the insurance provider from the policyholder at that time. 
If the crop was not insured, then verifiable records must be submitted 
with the written agreement request. In both cases, requiring a 
policyholder's signature on the APH for a written agreement request is 
redundant.
    FCIC is removing sections 18(f)(2)(ii)(A)(1) and (2) from section 
18(f)(2)(ii)(A). This change makes the similar crop language consistent 
with the requested crop language in section 18(f)(2)(i). A policyholder 
will now be able to provide a completed APH for a similar crop that was 
grown in the area even if the similar crop was also grown in the 
county, the same as is allowed for the requested crop.
    FCIC is revising section 18(f)(2)(ii)(B) to clarify this section is 
not only applicable to crops previously planted, it is also applicable 
to perennial crops that have previously produced a crop. As stated 
above, due to the nature of how long some perennial crops take to 
produce after planting the crop, specifying ``produced for perennial 
crops'' instead of ``planted'' clarifies the language for how perennial 
crops are affected.

[[Page 55728]]

    FCIC is revising section 18(f)(2)(ii)(B)(2) to be consistent with 
the changes made in section 18(f)(2)(i)(B)(2) above, which is removing 
the requirement that the policyholder must insure the crop for the 
three previous crop years before they can substitute a year of 
insurance experience for a year of verifiable records. Revising this 
section to be consistent with section 18(f)(2)(i)(B)(2) makes this 
change apply to the similar crop language the same as the requested 
crop language. This change will allow the policyholder to use their 
insured similar crop's information for any year that the policyholder 
has insured the similar crop instead of providing verifiable records.
    FCIC is also revising section 18(f)(2)(ii)(B)(2) to allow an entity 
to use the production history from a substantial beneficial interest in 
the entity that has a history of growing the similar crop to qualify 
for a written agreement. As stated above, this revision will allow a 
newly formed entity a pathway to qualify for a written agreement, 
whereas previously the newly formed entity was required to grow the 
crop, or a similar crop, for a minimum of three years before the new 
entity could qualify, even if substantial beneficial interests of the 
entity had previously grown the crop.
    FCIC is adding a new section 18(f)(2)(ii)(B)(3) to be consistent 
with the changes made in section 18(f)(2)(i)(B)(3), which is to state 
that FCIC will not consider any crop year in which the crop was planted 
outside of the most recent ten crop years as a year of previously 
planting the crop, or having produced a crop if the crop is a perennial 
crop, unless verifiable production records are provided, or the crop 
was insured for that crop year. Revising this section to be consistent 
with section 18(f)(2)(i)(B)(3) makes this change apply to the similar 
crop language the same as the requested crop language.
    FCIC is revising section 18(f)(2)(ii)(C) to allow an entity to use 
the production history from a substantial beneficial interest in the 
entity that has a history of growing the crop to qualify for a written 
agreement. As stated above, this revision will allow a newly formed 
entity a pathway to qualify for a written agreement, whereas previously 
the newly formed entity was required to grow the crop, or a similar 
crop, for a minimum of three years before the new entity could qualify, 
even if substantial beneficial interests of the entity had previously 
grown the crop.
    FCIC is also revising section 18(f)(2)(ii)(C) to clarify this 
section is not only applicable to crops previously planted, it is also 
applicable to perennial crops that have previously produced a crop. As 
stated above, due to the nature of how long some perennial crops take 
to produce after planting the crop, specifying ``perennial crops that 
have previously produced a crop'' instead of ``planted'' clarifies the 
language for how perennial crops are affected.
    FCIC is removing section 18(f)(2)(vi) to be consistent with the 
changes made in section 18(f)(1)(vi) above. This will clarify that 
``all other information'' is not a requirement to obtain a written 
agreement. The policyholder may still provide any other information 
they wish to support their request for written agreement but the 
policyholder is only required to submit the information identified in 
sections 18(f).
    FCIC is removing section 18(g)(3) because any additional land or 
additional crop must meet the request deadlines of section 18(a) or 
18(e) whether or not the additional land or additional crop will be 
added to an existing written agreement or a request for a written 
agreement. Therefore, this language is not needed.
    FCIC is revising section 18(h)(2) to clarify the APH history used 
to determine 50 percent of the transitional yield for the crop, type, 
and practice can be from either the county or a similar county. 
Currently this provision only looks at similar counties. This will 
allow a broader review of the policyholder's APH history to determine 
whether at least 50 percent of the transitional yield for the crop, 
type, and practice has been produced.
    FCIC is also revising section 18(h)(2) to clarify that this 
provision only applies when the crop has been previously grown. The 
provision appeared to deny a written agreement if the policyholder had 
not previously grown the requested crop, type or practice, because if 
the requested crop, type or practice had not previously been grown it 
could not have made 50 percent of the transitional yield. These changes 
now clearly state that a policyholder will not be denied a written 
agreement under this provision if they have not grown the crop, type, 
and practice.
    FCIC is revising section 18(h)(4) to clarify this provision is also 
applicable if a similar crop was not previously grown in the area. As 
previously written, it appeared like a written agreement would 
automatically be denied when the actual crop was not grown. This 
conflicted with the similar crop provisions in section 18(f)(2)(ii) 
where a similar crop can be used to qualify a written agreement request 
for counties without actuarial documents for the crop when the 
requested crop had not been grown, or had not been grown long enough to 
complete the required three years of records. This change now clarifies 
that a denial will take place when the crop, or a similar crop, has not 
been grown, which removes any conflict with the similar crop 
provisions.
    FCIC is also revising section 18(h)(4) to allow the crop or similar 
crop to be grown in the area, as growing the crop or similar crop in 
the area can qualify a policyholder in the county even if they have not 
grown the crop in the requested county.
    FCIC is removing from section 18(h)(4) the phrase ``based on sales 
receipts, contemporaneous feeding records or a contract for the crop.'' 
By listing these options out it limits what can be shown as evidence of 
a market. If the policyholder is new to the area or is growing a new 
crop and qualifying based on a similar crop, they would not have sales 
receipts, contemporaneous feeding records, and unlikely to have a 
contract for the requested crop as most crops do not require a 
contract. Section 18(f)(2)(iv) already requires the name, location of, 
and approximate distance to the place the crop will be sold, which 
identifies the market for the crop.
    FCIC is revising section 18(h)(5) to allow a written agreement 
request to be denied for a particular practice or type if that practice 
or type is not adapted to the county. The current language only 
specified crop, thus if the crop was adapted to the county it could be 
assumed that all practices or types are automatically considered 
adapted. This change allows the ability to deny a written agreement 
request if a particular practice or type of a crop is not adapted to 
the county, even if other practices or types of the crop are adapted to 
the county.
    (j) Section 21--FCIC is revising section 21(b)(2) to update the 
years used in the example to reflect more recent crop years.
    (k) Section 34--FCIC is revising sections 34(a)(4)(viii), 
(viii)(A), and (viii)(B) to allow a policyholder to select an 
enterprise unit for either irrigated or non-irrigated practice and 
choose the most appropriate unit structure on the other practice, be it 
a separate enterprise unit or optional or basic units. Previously, FCIC 
only allowed an enterprise unit for all acreage of the crop in the 
county. In the Agricultural Act of 2014, Congress mandated that FCIC 
allow separate enterprise units by irrigated and non-irrigated 
practices. Currently, FCIC requires that all acreage

[[Page 55729]]

of the crop in the county be insured as an enterprise unit, one for all 
the irrigated acreage in the county and one for all the non-irrigated 
acreage in the county. Policyholders have made it clear to FCIC that, 
requiring all irrigated and non-irrigated acreage to separately qualify 
as enterprise units and to be eligible for separate enterprise units by 
practice both must be insured as enterprise units is not affording 
policyholders the flexibility to tailor their insurance coverage to 
meet their risk management needs. Policyholders have identified 
situations where both the irrigated and non-irrigated acreage do not 
qualify as enterprise units and they are left with a single enterprise 
unit for all the acreage and situations where having separate 
enterprise units for irrigated and non-irrigated acreage simply does 
not meet their risk management needs. Policyholders argue that to meet 
their risk management needs they need to be allowed to qualify for an 
enterprise unit for the practice that they determine best meets their 
risk management needs and another type unit for the other practice. 
FCIC agrees that irrigated and non-irrigated practices have inherently 
different risks, and some perils such as drought that can impact a non-
irrigated crop may be distinctly different from those that may impact 
an irrigated crop such that an enterprise unit structure may only be an 
appropriate risk management alternative for one of the practices, but 
not both. In the best interest of policyholders and to allow the 
flexibility to match as closely as possible the inherently different 
risks for irrigated and non-irrigated practices, FCIC is revising the 
provisions to allow a policyholder to elect the most appropriate unit 
structure for each practice.
    FCIC is revising section 34(a)(4)(viii)(C) to make this section 
applicable only if the policyholder elected separate enterprise units 
for irrigated and non-irrigated practices and it is discovered the 
policyholder does not qualify for an enterprise unit for the irrigated 
or non-irrigated practices.
    FCIC is adding a new section 34(a)(4)(viii)(D) to state what 
happens when a policyholder elected an enterprise unit on one practice 
(irrigated or non-irrigated) and a different unit structure on the 
other practice and it is discovered the policyholder does not qualify 
for an enterprise unit for the irrigated or non-irrigated practice. If 
it is discovered the policyholder does not qualify for an enterprise 
unit on or before the acreage reporting date, the policyholder's unit 
division will be based on basic or optional units, whichever they 
report on their acreage report and qualify for. If it is discovered the 
policyholder does not qualify for an enterprise unit at any time after 
the acreage reporting date, the insurance provider will assign the 
basic unit structure.

Effective Date

    The FCIC is issuing this final rule without opportunity for prior 
notice and 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 public comment (5 
U.S.C. 553(a)(2)). A Federal crop insurance policy is a contract and is 
thus exempt from APA notice-and-comment procedures. Previously, changes 
made to the Federal crop insurance policies codified in the Code of 
Federal Regulations were required to be implemented through the notice-
and-comment rulemaking process. Such action was not required by the 
APA, which exempts contracts. Rather, the requirement originated with a 
notice USDA published in the Federal Register on July 24, 1971 (36 FR 
13804), 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 complied with this notice over the subsequent years. On 
October 28, 2013, USDA published a notice in the Federal Register (78 
FR 64194) rescinding the prior notice, thereby making contracts again 
exempt from the notice-and-comment rulemaking process. This exemption 
applies to the 30-day notice prior to implementation of a rule. 
Therefore, the policy changes made by this final rule are effective 
upon publication in the Federal Register.
    However, FCIC is providing a 30-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.

Executive Orders 12866, 13563, and 13771

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. The Office of 
Management and Budget (OMB) designated this rule as not significant 
under Executive Order 12866, ``Regulatory Planning and Review,'' and 
therefore, OMB has not reviewed this rule. The rule is not subject to 
Executive Order 13771, ``Reducing Regulation and Controlling Regulatory 
Costs.''

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.'' Executive Order 13175

[[Page 55730]]

requires Federal agencies to consult and coordinate with tribes on a 
government-to-government basis on policies that have tribal 
implications, including regulations, legislative comments or proposed 
legislation, and other policy statements or actions that have 
substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes or on the 
distribution of power and responsibilities between the Federal 
Government and Indian tribes.
    The Federal Crop Insurance Corporation has assessed the impact of 
this rule on Indian tribes and determined that this rule does not, to 
our knowledge, have tribal implications that require tribal 
consultation under EO 13175. If a Tribe requests consultation, the 
Federal Crop Insurance Corporation will work with the Office of Tribal 
Relations to ensure meaningful consultation is provided where changes, 
additions and modifications identified herein are not expressly 
mandated by Congress.

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.

List of Subjects in 7 CFR Parts 402, 407, and 457

    Crop insurance, Reporting and recordkeeping requirements.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation amends 7 CFR parts 402, 407, and 457 as follows:

PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT

0
1. The authority citation for 7 CFR part 402 continues to read as 
follows:

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


0
2. Amend Sec.  402.4 by revising section 6(f) to read as follows:


Sec.  402.4  Catastrophic Risk Protection Endorsement Provisions.

* * * * *
    6. Annual Premium and Administrative Fees
* * * * *
    (f) You will be responsible for payment of the premium established 
for the coverage provided under this endorsement if:
    (1) USDA determines you have committed a violation of the highly 
erodible land conservation or wetland conservation provisions of 7 CFR 
part 12 as amended by the Agricultural Act of 2014; or
    (2) You have not filed form AD-1026 with FSA for the reinsurance 
year by the premium billing date.
    (i) Notwithstanding section 6(f)(2), you may be eligible for 
premium subsidy without having a timely filed form AD-1026:
    (A) For the initial reinsurance year if you certify by the premium 
billing date for your policy that you meet the qualifications as 
outlined in FCIC approved procedures for producers who are new to 
farming, new to crop insurance, a new entity, or have not previously 
been required to file form AD-1026; or
    (B) If FSA approves relief for failure to timely file due to 
circumstances beyond your control or failure to timely provide adequate 
information to complete form AD-1026 in accordance with the provisions 
contained in 7 CFR part 12.
    (ii) To be eligible for premium subsidy paid on your behalf by 
FCIC, it is your responsibility to assure you meet all the requirements 
for:
    (A) Compliance with the conservation provisions specified in 
section 6(f)(1) of this section; and
    (B) Filing form AD-1026 to be properly identified as in compliance 
with the conservation provisions specified in section 6(f)(1) of this 
section.
* * * * *

PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS

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

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


0
4. Amend Sec.  407.9 as follows:
0
a. Remove the phrase ``website'' wherever it appears and add the word 
``Web site'' in its place;
0
b. In section 1:
0
i. Revise the definition of ``Good farming practices''; and
0
ii. In the definition of ``Limited resource farmer'', remove ``http://www.lrftool.sc.egov.usda.gov or a successor Web site'' and add ``http:/
/lrftool.sc.egov.usda.gov/LRP_Definition.aspx'' in its place;
0
c. In section 2:
0
i. Redesignate paragraph (j)(2) as paragraph (j)(3);
0
ii. Add a new paragraph (j)(2);
0
iii. In paragraph (k)(2)(i)(D), remove the date of ``2011'' and add the 
date ``2019'' in its place and remove the date of ``2010'' and add the 
date of ``2018'' in its place in each instance these dates appear in 
the paragraph;

[[Page 55731]]

0
iv. Revise paragraph (k)(3)(ii); and
0
v. In paragraph (p)(2), remove the date of ``2012'' and add the date 
``2018'' in its place and remove the date of ``2013'' and add the date 
of ``2019'' in its place in each instance these dates appear in the 
paragraph;
0
d. Revise section 7(i).
    The revisions and additions reads as follows:


Sec.  407.9  Area risk protection insurance policy.

* * * * *
    1. Definitions
* * * * *
    Good farming practices. The production methods utilized to produce 
the insured crop, type, and practice and allow it to make normal 
progress toward maturity, which are those generally recognized by 
agricultural experts or organic agricultural experts, depending on the 
practice, for the area. We may, or you may request us to, contact FCIC 
to determine if production methods will be considered ``good farming 
practices.''
* * * * *
    2. Life of Policy, Cancellation, and Termination
* * * * *
    (j) * * *
    (2) If you and we agree, your premium and administrative fees can 
be offset from any indemnity due you even if it is prior to the billing 
date of the premium and administrative fees.
* * * * *
    (k) * * *
    (3) * * *
    (ii) Execute a written payment agreement in accordance with 7 CFR 
part 400, subpart U, and make payments in accordance with the 
agreement; or
* * * * *
    7. Annual Premium and Administrative Fees
* * * * *
    (i) You will be ineligible for any premium subsidy paid on your 
behalf by FCIC for any policy issued by us if:
    (1) USDA determines you have committed a violation of the highly 
erodible land conservation or wetland conservation provisions of 7 CFR 
part 12 as amended by the Agricultural Act of 2014; or
    (2) You have not filed form AD-1026 with FSA for the reinsurance 
year by the premium billing date.
    (i) Notwithstanding section 7(i)(2), you may be eligible for 
premium subsidy without having a timely filed form AD-1026:
    (A) For the initial reinsurance year if you certify by the premium 
billing date for your policy that you meet the qualifications as 
outlined in FCIC approved procedures for producers who are new to 
farming, new to crop insurance, a new entity, or have not previously 
been required to file form AD-1026; or
    (B) If FSA approves relief for failure to timely file due to 
circumstances beyond your control or failure to timely provide adequate 
information to complete form AD-1026 in accordance with the provisions 
contained in 7 CFR part 12.
    (ii) To be eligible for premium subsidy paid on your behalf by 
FCIC, it is your responsibility to assure you meet all the requirements 
for:
    (A) Compliance with the conservation provisions specified in 
section 7(i)(1) of this section; and
    (B) Filing form AD-1026 to be properly identified as in compliance 
with the conservation provisions specified in section 7(i)(1) of this 
section.
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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


0
6. Amend Sec.  457.8, in the Common Crop Insurance Policy, as follows:
0
a. Remove the phrase ``Web site'' wherever it appears and add the word 
``Web site'' in its place;
0
b. Remove the phrase ``replant payment'' wherever it appears and add 
the phrase ``replanting payment'' in its place;
0
c. Under the heading ``Reinsured Policies,'' revise the third 
paragraph;
0
d. In section 1:
0
i. In the definition of ``Actual Production History (APH),'' remove 
``(G)'' and add ``G'' in its place;
0
ii. In the definition of ``Cooperative Extension System,'' remove the 
phrase ``Cooperative State Research, Education and Extension Service'' 
and add the phrase ``National Institute of Food and Agriculture'' in 
its place;
0
iii. Remove the definition for ``FSA farm serial number'';
    iv. Add the definition for ``FSA farm number''; and
0
v. Revise the definitions of ``Good farming practices,'' ``Price 
election,'' and ``Replanted crop'';
0
e. In section 2:
0
i. Redesignate paragraph (e)(2) as paragraph (e)(3);
0
ii. Add a new paragraph (e)(2);
0
iii. In paragraph (f)(2)(i)(D), remove the date of ``2011'' and add the 
date ``2019'' in its place in both places and remove the date of 
``2010'' and add the date ``2018'' in its place;
0
iv. Revise paragraph (f)(3)(ii);
0
v. In paragraph (f)(5), remove the date of ``2010'' and add the date 
``2018'' in its place, remove the date of ``2011'' and add the date of 
``2019'' in its place, and remove the date of ``2012'' and add the date 
of ``2020'' in its place, in each instance these dates appear in the 
paragraph;
0
vii. Remove paragraph (j); and
0
viii. Redesignate paragraph (k) as paragraph (j);
0
f. In section 3:
0
i. In paragraph (f)(3), add the phrase ``, unless otherwise specified 
in the Special Provisions'' following the phrase ``by the production 
reporting date''; and
0
ii. In paragraph (h)(1), add the term ``agronomic'' following the 
phrase ``you cannot prove there is a valid'';
0
g. In section 6:
0
i. In paragraph (a)(3)(i), remove the term ``and'' following the 
semicolon at the end of the paragraph;
0
ii. In paragraph (a)(3)(ii)(C), remove ``(5)'' and remove the period at 
the end of the paragraph and add ``; and'' in its place;
0
iii. Add paragraph (a)(3)(iii); and
0
iv. In paragraph (c)(5), remove the term ``serial'' following the 
phrase ``FSA farm'';
0
h. Revise section 7(h);
0
i. In section 9(a)(2)(viii)(A), remove the phrase ``the Group Risk 
Protection Plan of Insurance or successor provisions'' and add the 
phrase ``Area Risk Protection Insurance'' in its place;
0
j. In section 17(f)(9) introductory text, remove the term ``manpower'' 
and add the term ``labor'' in its place;
0
k. In section 18:
0
i. In paragraphs (c)(1) and (2), remove the phrase ``Special 
Provisions, or an addendum thereto,'' and add the phrase ``actuarial 
documents'' in its place wherever it appears;
0
ii. In paragraph (e)(1), add the term ``or'' to the end of the 
paragraph following the semicolon;
0
iii. Revise paragraph (e)(2)(i)(B);
0
iv. In paragraph (e)(2)(iii), remove the term ``or'' following the 
semicolon;
0
v. Remove paragraph (e)(3);
0
vi. Revise paragraph (f)(1)(ii);
0
vii. In paragraph (f)(1)(iii), add the phrase ``the crop,'' following 
the phrase ``to provide insurance for'';
0
viii. In paragraph (f)(1)(iv), remove the term ``serial'' following the 
phrase ``FSA farm'' and add the term ``and'' at the end of the 
paragraph following the semicolon;
0
ix. In paragraph (f)(1)(v), remove the term ``and'' following the 
semicolon at the end of the paragraph;
0
x. Remove paragraph (f)(1)(vi);

[[Page 55732]]

0
xi. Revise paragraphs (f)(2)(i), (f)(2)(ii) introductory text, and 
(f)(2)(ii)(A) through (C);
0
xii. In paragraph (f)(1)(iv), add the term ``and'' at the end of the 
paragraph following the semicolon;
0
xiii. Remove paragraph (f)(2)(vi);
0
xiv. In paragraph (g)(2), add the term ``or'' at the end of the 
paragraph following the semicolon;
0
xv. Remove paragraph (g)(3);
0
xvi. Redesignate paragraph (g)(4) as (g)(3);
0
xvii. Revise paragraphs (h)(2) and (4); and
0
xviii. In paragraph (h)(5), add the phrase ``, practice, or type'' 
following the phrase ``experts determine the crop'';
0
l. Revise section 21(b)(2); and
0
m. In section 34:
0
i. In paragraphs (a)(4)(i)(C), (D), and (E) and (a)(4)(ii), remove the 
term ``serial'' following the phrase ``FSA farm'' wherever it appears;
0
ii. Revise paragraph (a)(4)(viii); and
0
iii. In paragraphs (c)(1)(ii) and (c)(2) and (3), remove the term 
``serial'' following the phrase ``FSA farm'' wherever it appears.
    The revisions and additions reads as follows:


Sec.  457.8  The application and policy.

* * * * *
    Common Crop Insurance Policy
* * * * *
    Reinsured Policies
* * * * *
    AGREEMENT TO INSURE: In return for the payment of the premium, and 
subject to all of the provisions of this policy, we agree with you to 
provide the insurance as stated in this policy. If there is a conflict 
between the Act, the regulations published at 7 CFR chapter IV, and the 
procedures as issued by FCIC, the order of priority is: (1) The Act; 
(2) the regulations; and (3) the procedures as issued by FCIC, with (1) 
controlling (2), etc. If there is a conflict between the policy 
provisions published at 7 CFR part 457 and the administrative 
regulations published at 7 CFR part 400, the policy provisions 
published at 7 CFR part 457 control. If a conflict exists among the 
policy, the order of priority is: (1) The Catastrophic Risk Protection 
Endorsement, as applicable; (2) the Special Provisions; (3) the 
actuarial documents; (4) the Commodity Exchange Price Provisions, as 
applicable; (5) the Crop Provisions; and (6) these Basic Provisions, 
with (1) controlling (2), etc.
* * * * *
    1. Definitions
* * * * *
    FSA farm number. The number assigned to the farm by the local FSA 
office.
* * * * *
    Good farming practices. The production methods utilized to produce 
the insured crop and allow it to make normal progress toward maturity 
and produce at least the yield used to determine the production 
guarantee or amount of insurance, including any adjustments for late 
planted acreage, which are those generally recognized by agricultural 
experts or organic agricultural experts, depending on the practice, for 
the area. We may, or you may request us to, contact FCIC to determine 
if production methods will be considered ``good farming practices.''
* * * * *
    Price election. The amount contained in the actuarial documents 
that is the value per pound, bushel, ton, carton, or other applicable 
unit of measure for the purposes of determining premium and indemnity 
under the policy. A price election is not applicable for crops for 
which revenue protection is available.
* * * * *
    Replanted crop. (1) The same agricultural commodity replanted on 
the same acreage as the insured crop for harvest in the same crop year 
if:
    (i) The replanting is specifically made optional by the policy and 
you elect to replant the crop and insure it under the policy covering 
the first insured crop; or
    (ii) Replanting is required by the policy.
    (2) Unless otherwise specified in the Special Provisions, the crop 
will be considered an insured replanted crop and no replanting payment 
will be paid if we have determined it is not practical to replant the 
insured crop and you choose to plant the acreage to the same insured 
crop within or prior to the late planting period or after the final 
planting date if no late planting period is applicable. If we determine 
it is not practical to replant and you plant the acreage to the same 
insured crop, any indemnity will be based on the greater of:
    (i) Our appraised production on the initially planted crop;
    (ii) Our subsequent appraisal of the replanted crop if the 
replanted crop is not harvested; or
    (iii) The harvested production from the replanted crop.
* * * * *
    2. Life of Policy, Cancellation, and Termination
* * * * *
    (e) * * *
    (2) If you and we agree, your premium and administrative fees can 
be offset from any indemnity or prevented planting payment due you even 
if it is prior to the billing date of the premium and administrative 
fees.
* * * * *
    (f) * * *
    (3) * * *
    (ii) Execute a written payment agreement, in accordance with 7 CFR 
part 400, subpart U, and make payments in accordance with the 
agreement; or
* * * * *
    6. Report of Acreage
    (a) * * *
    (3) * * *
    (iii) If you plant the insured crop on or within five days prior to 
the final planting date and the final planting date is five or fewer 
days prior to the acreage reporting date, you must submit an acreage 
report no later than five days after the acreage reporting date (for 
example, if the final planting date contained in the Special Provisions 
is July 10, the acreage reporting date contained in the Special 
Provisions is July 15 and you plant the insured crop on July 9, you 
have until July 20 to submit an acreage report for the insured crop).
* * * * *
    7. Annual Premium and Administrative Fees
* * * * *
    (h) You will be ineligible for any premium subsidy paid on your 
behalf by FCIC for any policy issued by us if:
    (1) USDA determines you have committed a violation of the highly 
erodible land conservation or wetland conservation provisions of 7 CFR 
part 12 as amended by the Agricultural Act of 2014; or
    (2) You have not filed form AD-1026 with FSA for the reinsurance 
year by the premium billing date.
    (i) Notwithstanding section 7(h)(2), you may be eligible for 
premium subsidy without having a timely filed form AD-1026:
    (A) For the initial reinsurance year if you certify by the premium 
billing date for your policy that you meet the qualifications as 
outlined in FCIC approved procedures for producers who are new to 
farming, new to crop insurance, a new entity, or have not previously 
been required to file form AD-1026; or
    (B) If FSA approves relief for failure to timely file due to 
circumstances beyond your control or failure to timely provide adequate 
information to complete form AD-1026 in accordance with the provisions 
contained in 7 CFR part 12.
    (ii) To be eligible for premium subsidy paid on your behalf by 
FCIC, it

[[Page 55733]]

is your responsibility to assure you meet all the requirements for:
    (A) Compliance with the conservation provisions specified in 
section 7(h)(1) of this section; and
    (B) Filing form AD-1026 to be properly identified as in compliance 
with the conservation provisions specified in section 7(h)(1) of this 
section.
* * * * *
    18. Written Agreements
* * * * *
    (e) * * *
    (2) * * *
    (i) * * *
    (B) Establish optional units in accordance with FCIC procedures 
that otherwise would not be allowed or change the premium rate or 
transitional yield for designated high-risk land;
* * * * *
    (f) * * *
    (1) * * *
    (ii) A completed APH (only for crop policies that require APH) 
based on verifiable records of actual yields for the crop and county 
for which the written agreement is being requested (the actual yields 
do not necessarily have to be from the same physical acreage for which 
you are requesting a written agreement), and verifiable records of 
actual yields if required by FCIC;
* * * * *
    (2) * * *
    (i) For a crop you (or anyone with a substantial beneficial 
interest in you) have previously planted (or produced a crop if the 
crop is a perennial crop) in the county or area for at least three 
years:
    (A) A completed APH (only for crop policies that require APH) based 
on verifiable production records of actual yields for the crop; and
    (B) Verifiable production records for at least the three most 
recent crop years in which the crop was planted (or produced a crop if 
the crop is a perennial crop):
    (1) The verifiable production records do not necessarily have to be 
from the same physical acreage for which you are requesting a written 
agreement;
    (2) Verifiable production records do not have to be submitted for 
any year you (or anyone with a substantial beneficial interest in you) 
have insured the crop in the county or area and have certified the 
yields on the applicable production reports or the yields are based on 
your insurance claim (although you are not required to submit 
production records, you still must maintain production records in 
accordance with section 21); and
    (3) FCIC will not consider any crop year in which the crop was 
planted (or produced a crop if the crop is a perennial crop) outside of 
the most recent ten crop years as a year of previously planting the 
crop (or having produced a crop if the crop is a perennial crop), 
unless verifiable production records are provided, or the crop was 
insured for that crop year;
    (ii) For a crop you (or anyone with a substantial beneficial 
interest in you) have not previously planted (or produced a crop if the 
crop is a perennial crop) in the county or area for at least three 
years:
    (A) A completed APH (only for crop policies that require APH) based 
on verifiable production records of actual yields for the similar crop;
    (B) Verifiable production records for at least the three most 
recent crop years in which the similar crop was planted (or produced a 
crop if the crop is a perennial crop) in the county or area:
    (1) The verifiable production records for the similar crop do not 
necessarily have to be from the same physical acreage for which you are 
requesting a written agreement;
    (2) Verifiable production records do not have to be submitted for 
any crop year you (or anyone with a substantial beneficial interest in 
you) have insured the similar crop in the county or area and have 
certified the yields on the applicable production reports or the yields 
are based on your insurance claim (although you are not required to 
submit production records, you still must maintain production records 
in accordance with section 21); and
    (3) FCIC will not consider any crop year in which the similar crop 
was planted (or produced a crop if the crop is a perennial crop) 
outside of the most recent ten crop years as a year of previously 
planting the similar crop (or having produced a crop if the crop is a 
perennial crop), unless verifiable production records are provided, or 
the similar crop was insured, for that crop year;
    (C) If you (or anyone with a substantial beneficial interest in 
you) have at least one year of production records, but less than three 
years of production records, for the crop in the county or area but 
have production records for a similar crop in the county or area such 
that the combination of both sets of records results in at least three 
years of production records, you must provide the information required 
in sections 18(f)(2)(i)(A) and (B) for the years you (or anyone with a 
substantial beneficial interest in you) planted the crop (or produced a 
crop if the crop is a perennial crop) in the county or area and the 
information required in sections 18(f)(2)(ii)(A) and (B) regarding the 
similar crop for the remaining years; and
* * * * *
    (h) * * *
    (2) Your APH history demonstrates you have not produced at least 50 
percent of the transitional yield for the crop, type, and practice 
obtained from the county, or a county with similar agronomic conditions 
and risk exposure, when previously grown;
* * * * *
    (4) The crop, or a similar crop, was not previously grown in the 
county or area, or there is no evidence of a market for the crop 
(applicable only for counties without actuarial documents); or
* * * * *
    21. Access to Insured Crop and Records, and Record Retention
* * * * *
    (b) * * *
    (2) All records used to establish the amount of production you 
certified on your production reports used to compute your approved 
yield for three years after the calendar date for the end of the 
insurance period for the crop year for which you initially certified 
such records, unless such records have already been provided to us 
(e.g., if you are a new insured and you certify 2015 through 2018 crop 
year production records in 2019 to determine your approved yield for 
the 2019 crop year, you must retain all records from the 2015 through 
2018 crop years through the 2022 crop year. If you subsequently certify 
records of the 2019 crop year in 2020 to determine your approved yield 
for the 2020 crop year, you must retain the 2019 crop year records 
through the 2023 crop year and so forth for each subsequent year of 
production records certified); and
* * * * *
    34. Units.
    (a) * * *
    (4) * * *
    (viii) If allowed by the actuarial documents, you may elect 
separate enterprise units for irrigated or non-irrigated practices.
    (A) You may elect one enterprise unit for all irrigated practices 
or one enterprise unit for all non-irrigated practices or enterprise 
units for both.
    (B) You must separately meet the requirements in section 34(a)(4) 
for each enterprise unit.
    (C) If you elected separate enterprise units for both irrigated and 
non-irrigated practices and we discover you do not qualify for an 
enterprise unit for the irrigated or non-irrigated practice and such 
discovery is made:

[[Page 55734]]

    (1) On or before the acreage reporting date, you may elect to 
insure all acreage of the crop in the county in one enterprise unit 
provided you meet the requirements in section 34(a)(4), or your unit 
division will be based on basic or optional units, whichever you report 
on your acreage report and qualify for; or
    (2) At any time after the acreage reporting date, your unit 
structure will be one enterprise unit provided you meet the 
requirements in section 34(a)(4). Otherwise, we will assign the basic 
unit structure.
    (D) If you elected an enterprise unit on one practice (irrigated or 
non-irrigated) and a different unit structure on the other practice and 
we discover you do not qualify for an enterprise unit for the irrigated 
or non-irrigated practice and such discovery is made:
    (1) On or before the acreage reporting date, your unit division 
will be based on basic or optional units, whichever you report on your 
acreage report and qualify for; or
    (2) At any time after the acreage reporting date, we will assign 
the basic unit structure.
* * * * *

    Signed in Washington, DC, on November 16, 2017.
Heather Manzano,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2017-25330 Filed 11-22-17; 8:45 am]
 BILLING CODE 3410-08-P



                                                                                                                                                                                              55723

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 82, No. 225

                                                                                                                                                            Friday, November 24, 2017



                                              This section of the FEDERAL REGISTER                       • Federal eRulemaking Portal: http://              Background
                                              contains regulatory documents having general            www.regulations.gov. Follow the                          1. FCIC is revising section 6(f) to the
                                              applicability and legal effect, most of which           instructions for submitting comments.
                                              are keyed to and codified in the Code of                                                                      CAT Endorsement (7 CFR part 402) to
                                              Federal Regulations, which is published under              • Mail: Director, Product                          remove the date of June 1 from the
                                              50 titles pursuant to 44 U.S.C. 1510.                   Administration and Standards Division,                conservation compliance provisions and
                                                                                                      Risk Management Agency, United States                 instead refer to the premium billing
                                              The Code of Federal Regulations is sold by              Department of Agriculture, P.O. Box                   date. This will provide more flexibility
                                              the Superintendent of Documents.                        419205, Kansas City, MO 64133–6205.                   to policyholders and allow the
                                                                                                         FCIC will post all comments received,              conservation compliance certification
                                                                                                      including those received by mail,                     process for crop insurance to be
                                              DEPARTMENT OF AGRICULTURE                                                                                     administered more consistently with the
                                                                                                      without change to http://
                                              Federal Crop Insurance Corporation                      www.regulations.gov, including any                    way it is administered for other USDA
                                                                                                      personal information provided. Once                   programs. Under the new provisions,
                                              7 CFR Parts 402, 407, and 457                           these comments are posted to this Web                 policyholders must still have a valid
                                                                                                      site, the public can access all comments              AD–1026 on file with the Farm Service
                                              [Docket No. FCIC–17–0004]                               at its convenience from this Web site.                Agency (FSA) for the reinsurance year
                                                                                                      All comments must include the agency                  to be eligible for premium subsidy;
                                              RIN 0563–AC56
                                                                                                      name and docket number or Regulatory                  however, the AD–1026 does not have to
                                                                                                      Information Number (RIN) for this rule.               be completed by June 1 of the preceding
                                              Catastrophic Risk Protection                                                                                  reinsurance year. While June 1 was
                                              Endorsement; Area Risk Protection                       For detailed instructions on submitting
                                                                                                      comments and additional information,                  believed to be an appropriate timeframe
                                              Insurance Regulations; and the                                                                                in which the AD–1026 needed to be
                                              Common Crop Insurance Regulations,                      see http://www.regulations.gov. If
                                                                                                      interested persons are submitting                     signed, after two years since initial
                                              Basic Provisions                                                                                              implementation a more streamlined
                                                                                                      comments electronically through the
                                              AGENCY:  Federal Crop Insurance                                                                               approach is warranted to provide
                                                                                                      Federal eRulemaking Portal and want to
                                              Corporation, USDA.                                                                                            administrative efficiencies for both
                                                                                                      attach a document, FCIC requests that
                                                                                                                                                            producers and FCIC/FSA without
                                              ACTION: Final rule with request for                     the document attachment be in a text-
                                                                                                                                                            impacting the appropriate
                                              comments.                                               based format. If interested persons want
                                                                                                                                                            determinations of compliance.
                                                                                                      to attach a document that is a scanned
                                              SUMMARY:    The Federal Crop Insurance                                                                        Insurance providers can confirm
                                                                                                      Adobe PDF file, it must be scanned as
                                              Corporation (FCIC) amends the                                                                                 whether a policyholder has a valid AD–
                                                                                                      text and not as an image, thus allowing
                                              Catastrophic Risk Protection                                                                                  1026 on file, via data received from
                                                                                                      FCIC to search and copy certain
                                              Endorsement, the Area Risk Protection                                                                         FCIC, as of the premium billing date,
                                                                                                      portions of the submissions. For                      and any policyholder without an AD–
                                              Insurance Basic Provisions, and the                     questions regarding attaching a
                                              Common Crop Insurance Policy Basic                                                                            1026 on file will be billed the full
                                                                                                      document that is a scanned Adobe PDF                  unsubsidized premium. To effectuate
                                              Provisions to revise and clarify policy                 file, please contact the Risk
                                              provisions and reduce burden on                                                                               these changes, FCIC has revised section
                                                                                                      Management Agency (RMA) Web                           6(f)(2) to clarify the date by which
                                              producers choosing to insure their                      Content Team at (816) 823–4694 or by
                                              crops. The changes to the policy made                                                                         producers must be determined to be
                                                                                                      email at rmaweb.content@rma.usda.gov.                 eligible for premium subsidy. FCIC has
                                              in this rule are applicable for the 2018                   Privacy Act: Anyone is able to search
                                              and succeeding crop years for all crops                                                                       also added section 6(f)(2)(i)(A) to
                                                                                                      the electronic form of all comments                   remove the June 1 deadline from the
                                              with a 2018 contract change date on or                  received for any dockets by the name of
                                              after the effective date of the rule, and                                                                     FCIC language providing exceptions
                                                                                                      the person submitting the comment (or                 from the requirement to file an AD–1026
                                              for the 2019 and succeeding crop years                  signing the comment, if submitted on
                                              for all crops with a 2018 contract change                                                                     for producers who are new to farming,
                                                                                                      behalf of an entity, such as an                       new to crop insurance, a new entity, or
                                              date prior to the effective date of the                 association, business, labor union, etc.).
                                              rule.                                                                                                         have not previously been required to file
                                                                                                      Interested persons may review the                     form AD–1026 and to specify that
                                              DATES:  This final rule is effective                    complete User Notice and Privacy                      policyholders must certify to the
                                              November 24, 2017. However, FCIC will                   Notice for Regulations.gov at http://                 exception by the premium billing date.
                                              accept written comments on this final                   www.regulations.gov/#!privacyNotice.                  The FCIC exceptions allow new
                                              rule until close of business January 23,                                                                      producers certifying they meet the
                                                                                                      FOR FURTHER INFORMATION CONTACT:    Tim
                                              2018. FCIC may consider the comments                                                                          exception criteria by the premium
                                                                                                      Hoffmann, Product Management,
                                              received and may conduct additional                                                                           billing date to receive premium subsidy
                                                                                                      Product Administration and Standards
                                              rulemaking based on the comments.                                                                             for the initial reinsurance year while
                                                                                                      Division, Risk Management Agency,
sradovich on DSK3GMQ082PROD with RULES




                                              ADDRESSES: FCIC prefers interested                      United States Department of                           providing the flexibility to file form
                                              persons submit their comments                           Agriculture, Beacon Facility, Stop 0812,              AD–1026 with FSA by the premium
                                              electronically through the Federal                      Room 421, PO Box 419205, Kansas City,                 billing date of the subsequent
                                              eRulemaking Portal. Interested persons                  MO 64141–6205, telephone (816) 926–                   reinsurance year to maintain premium
                                              may submit comments, identified by                      7730.                                                 subsidy eligibility. Subparagraph (B)
                                              Docket ID No. FCIC–17–0004, by any of                                                                         was added to section 6(f)(2)(i) to
                                              the following methods:                                  SUPPLEMENTARY INFORMATION:                            reference FSA relief provisions


                                         VerDate Sep<11>2014   16:12 Nov 22, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\24NOR1.SGM   24NOR1


                                              55724            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                              contained in 7 CFR part 12 that provide                    FCIC is revising section 2(k)(2)(i)(D) to          these changes FCIC has revised section
                                              additional time to file an AD–1026 if                   update the years used in the example so               7(i)(2) to clarify the date by which
                                              producers are unable to file due to                     that it reflects more recent crop years.              producers must be determined to be
                                              circumstances beyond their control and                     FCIC is revising section 2(k)(3)(ii) to            eligible for premium subsidy. FCIC has
                                              provides additional time to provide                     reference subpart U regarding written                 also added section 7(i)(2)(i)(A) to
                                              required information if the AD–1026 is                  payment agreements and deleting the                   remove the June 1 deadline from the
                                              timely filed but the producer is unable                 parenthetical from this provision. FCIC               FCIC language providing exceptions
                                              to timely provide the information due to                is removing the prohibition on a                      from the requirement to file an AD–1026
                                              circumstances beyond their control.                     policyholder entering into a written                  for producers who are new to farming,
                                              FCIC has determined these changes will                  payment agreement if they previously                  new to crop insurance, a new entity, or
                                              have no impact on the proper                            failed to make a scheduled payment                    have not previously been required to file
                                              determinations of conservation                          under any payment agreement to give                   form AD–1026 and to specify that
                                              compliance regarding Highly Erodible                    insurance providers the flexibility to                policyholders must certify to the
                                              Land/Wetland Compliance violations                      enter into these agreements. Subpart U                exception by the premium billing date.
                                              under 7 CFR part 12. These changes are                  provides information regarding written                The FCIC exceptions allow new
                                              intended to increase the opportunity for                payment agreements. Subpart U                         producers certifying they meet the
                                              producers to comply with the form AD–                   provides that only one written payment                exception criteria by the premium
                                              1026 conservation compliance                            agreement is permitted per termination                billing date to receive premium subsidy
                                              certification requirement and decrease                  date. Subpart U also provides other                   for the initial reinsurance year while
                                              the likelihood of producers who have                    requirements for written payment                      providing the flexibility to file form
                                              not committed a violation from                          agreements such as a written payment                  AD–1026 with FSA by the premium
                                              becoming ineligible for premium                         agreement cannot exceed two years in                  billing date of the subsequent
                                              subsidy.                                                duration and a written payment                        reinsurance year to maintain premium
                                                 2. The specific changes to the Area                  agreement cannot be modified after it                 subsidy eligibility. Subparagraph (B)
                                              Risk Protection Insurance Basic                         has been executed. Subpart U does not                 was added to section 7(i)(2)(i) to
                                              Provisions (7 CFR part 407) are as                      restrict a policyholder from entering                 reference FSA relief provisions
                                              follows:                                                into a written payment agreement if                   contained in 7 CFR part 12 that provide
                                                 (a) Section 1—FCIC is revising the                   they previously failed to make a                      additional time to file an AD–1026 if
                                              definition of ‘‘good farming practices’’                payment under an agreement. By                        producers are unable to file due to
                                              for clarification by removing the                       referring to subpart U, FCIC will not                 circumstances beyond their control and
                                              reference to an organic plan, because an                need to make updates to the Basic                     provides additional time to provide
                                              organic plan and good farming practice                  Provisions when changes are made to                   required information if the AD–1026 is
                                              determinations serve two different                      subpart U.                                            timely filed but the producer is unable
                                              purposes. An organic plan is a written                     FCIC is revising section 2(p)(2) to
                                                                                                                                                            to timely provide the information due to
                                              plan that describes organic farming                     update the years used in the example so
                                                                                                                                                            circumstances beyond their control.
                                              practices, but does not necessarily                     that it reflects more recent crop years.
                                                                                                         (c) Section 7—FCIC is revising section             FCIC has determined these changes will
                                              provide a comprehensive list of good
                                                                                                      7(i) to remove the date of June 1 from                have no impact on the proper
                                              farming practices. FCIC is also
                                                                                                      the conservation compliance provisions                determinations of conservation
                                              reorganizing the definition to improve
                                                                                                      and instead refer to the premium billing              compliance regarding Highly Erodible
                                              readability.
                                                 FCIC is revising the definition of                   date. This will provide more flexibility              Land/Wetland Compliance violations.
                                              ‘‘limited resource farmer’’ by updating                 to policyholders and allow the                        These changes are intended to increase
                                              the Web site for the USDA definition                    conservation compliance certification                 the opportunity for producers to comply
                                              because the Web site address had                        process for crop insurance to be                      with the form AD–1026 conservation
                                              become out of date.                                     administered more consistently with the               compliance certification requirement
                                                 FCIC is revising the name of the                     way it is administered for other USDA                 and decrease the likelihood of
                                              definition of ‘‘RMA’s Web site’’ to                     programs. Under the new provisions,                   producers who have not committed a
                                              ‘‘RMA’s Web site’’ because the                          policyholders must still have a valid                 violation from becoming ineligible for
                                              uncapitalized, one-word term is more                    AD–1026 on file with FSA for the                      premium subsidy.
                                              commonly used. FCIC is also correcting                  reinsurance year to be eligible for                      3. The changes to the Common Crop
                                              references to this term throughout the                  premium subsidy; however, the AD–                     Insurance Regulations, Basic Provisions
                                              policy.                                                 1026 does not have to be completed by                 (7 CFR part 457) are as follows:
                                                 (b) Section 2—FCIC is revising section               June 1 of the preceding reinsurance                      (a) Preamble—FCIC is revising the
                                              2(j) to add a new paragraph (2) that                    year. While June 1 was believed to be                 order of priority in the preamble to
                                              clarifies that with the policyholder’s                  an appropriate timeframe in which the                 include the actuarial documents. By
                                              consent the premium and                                 AD–1026 needed to be signed, after two                definition, the actuarial documents are
                                              administrative fees can be offset from                  years since initial implementation a                  a part of the policy and should be
                                              any indemnity due the policyholder                      more streamlined approach is warranted                included in the order of priority. The
                                              even if the offset occurs before the fees               to provide administrative efficiencies                actuarial documents will follow the
                                              are billed. This change clarifies the                   for both producers and FCIC/FSA                       Special Provisions in the order of
                                              issues raised in Final Agency                           without impacting the appropriate                     priority.
                                              Determination-147 and allows insurance                  determinations of compliance.                            (b) Section 1—FCIC is revising the
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                                              providers the latitude to contact the                   Insurance providers can confirm                       definition of ‘‘Cooperative Extension
                                              policyholder and inquire as to whether                  whether a policyholder has a valid AD–                System’’ by replacing the reference to
                                              the policyholder would agree to have                    1026 on file, via data received from                  the ‘‘Cooperative State Research,
                                              the ‘‘unbilled’’ administrative fees and                FCIC, as of the premium billing date,                 Education, and Extension Service’’ to
                                              premium offset from the remaining                       and a policyholder without an AD–1026                 the ‘‘National Institute of Food and
                                              amount of the loss. FCIC is                             on file will be billed the full                       Agriculture.’’ This change is being made
                                              redesignating paragraph 2(j)(2) as 2(j)(3).             unsubsidized premium. To effectuate                   to reference the correct entity.


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                                                               Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations                                          55725

                                                 FCIC is revising the name of the                     larger claim, creates a moral hazard                  when it will or will not be considered
                                              definition of ‘‘FSA farm serial number’’                situation, where the policyholders could              a replanted crop. This flexibility
                                              to ‘‘FSA farm number’’ because the term                 receive a larger indemnity from                       addressed those crops that have no late
                                              ‘‘FSA farm serial number’’ is no longer                 replanting a crop when it may not be                  planting period or late planting periods
                                              used. FCIC is also correcting references                practical to do so. It is not the intent of           that are a few days.
                                              to this term throughout the policy.                     FCIC to pay producers a full indemnity                   FCIC is revising the name of the
                                                 FCIC is revising the definition of                   for a crop and then they successfully                 definition of ‘‘RMA’s Web site’’ to
                                              ‘‘good farming practices’’ for                          plant and harvest the same crop for the               ‘‘RMA’s Web site’’ because the
                                              clarification by removing the reference                 same intended use after the late planting             uncapitalized, one-word term is more
                                              to an organic plan, because an organic                  period. Therefore, FCIC has determined                commonly used. FCIC is also correcting
                                              plan and good farming practice                          the indemnity should be based on the                  references to this term throughout the
                                              determinations serve two different                      greater of: (1) The appraised production              policy.
                                              purposes. An organic plan is a written                  on the initially planted crop; (2) the                   (c) Section 2—FCIC is revising section
                                              plan that describes organic farming                     subsequent appraisal of the replanted                 2(e) to add a new paragraph (2) that
                                              practices, but does not necessarily                     crop if the replanted crop is not                     clarifies that with the policyholder’s
                                              provide a comprehensive list of good                    harvested; or (3) the harvested                       consent the premium and
                                              farming practices. FCIC is also                         production from the replanted crop.                   administrative fees can be offset from
                                              reorganizing the definition to improve                     FCIC is also revising the definition of            any prevented planting or indemnity
                                              readability.                                            ‘‘replanted crop’’ to accommodate                     due the policyholder even if the offset
                                                 FCIC is revising the definition of                   growing practices of producers. The                   occurs before the fees are billed. This
                                              ‘‘price election’’ by replacing the phrase              rationale behind ‘‘replanted crop’’ rules             change clarifies the issues raised in
                                              ‘‘Special Provisions, or in an addendum                 is to ensure that producers are not paid              Final Agency Determination-147 and
                                              thereto’’ with the phrase ‘‘actuarial                   a full indemnity and subsequently plant               allows insurance providers the latitude
                                              documents’’ because price elections are                 the same crop for the same purpose to                 to contact the policyholder and inquire
                                              contained in the actuarial documents.                   harvest. If a producer plants the same                as to whether the policyholder would
                                                 FCIC is revising the definition of                   crop, then a full indemnity should not                agree to have the ‘‘unbilled’’
                                              ‘‘replanted crop’’ to address how to                    be paid on the initially planted crop and             administrative fees and premium offset
                                              calculate production to count in the                    FCIC should ensure that taxpayer losses               from the remaining amount of the loss.
                                              event of a claim if the insurance                       are lessened if the second attempt to                    FCIC is revising section 2(f)(2)(i)(D) to
                                              provider determines it is not practical to              plant the crop results in a better yield              update the years used in the example to
                                              replant and the policyholder plants the                 than the initially planted crop.                      reflect more recent crop years.
                                              acreage to the same insured crop.                          Specifically, FCIC is revising the                    FCIC is revising section 2(f)(3)(ii) to
                                                 The rules surrounding ‘‘practical to                 definition of ‘‘replanted crop’’ to state             reference subpart U regarding written
                                              replant’’ are designed for a failed crop                unless otherwise specified in the                     payment agreements and deleting the
                                              to be replanted with the replant                        Special Provisions, the crop will be                  parenthetical from this provision. FCIC
                                              expenses covered by the insurance                       considered an insured replanted crop                  is removing the prohibition that does
                                              policy. In most cases, if there is a                    and no replanting payment will be paid                not allow a policyholder to enter into a
                                              reasonable chance harvesting some                       if the insurance provider has                         written payment agreement if they
                                              production from the replanted crop and                  determined: (1) It is not practical to                previously failed to make a payment
                                              thereby provides assistance for                         replant the insured crop, and (2) the                 under an agreement to give insurance
                                              impacted policyholders to grow the crop                 policyholder chooses to plant the                     providers the flexibility to enter into
                                              they intended. This assists                             acreage to the same insured crop within               these agreements. Subpart U provides
                                              policyholders while potentially                         or prior to the late planting period, or              information regarding written payment
                                              reducing costs for the taxpayer,                        after the final planting date if no late              agreements. Subpart U provides that
                                              potentially lowers premium rates, and                   planting period is applicable.                        only one written payment agreement is
                                              provides the potential for growers to                      FCIC is making this change to clarify              permitted per termination date. It also
                                              have higher insurance guarantees in                     that anytime the acreage is replanted to              provides other requirements for written
                                              subsequent years than would otherwise                   the same crop within or prior to the late             payment agreements such as a written
                                              be the case. If there is not a reasonable               planting period, it will be considered a              payment agreement cannot exceed two
                                              chance of at least some production, then                replanted crop. However, FCIC also                    years in duration and a written payment
                                              the policyholder should not replant the                 recognizes that in some situations a                  agreement cannot be modified after it
                                              crop.                                                   producer replants the same crop much                  has been executed. Subpart U does not
                                                 If, later, the policyholder decides to               later and for a different purpose. For                restrict a policyholder from entering
                                              replant the crop for the same intended                  example, a crop is damaged and it is                  into a written payment agreement if
                                              use, then the policyholder is indicating                determined not practical to replant.                  they previously failed to make a
                                              that there is a reasonable chance of                    However, after the late planting period,              payment under an agreement. By
                                              some production. Any production from                    conditions allow a policyholder to plant              referring to subpart U, FCIC will not
                                              the replanted crop is applied against the               a crop with no intention of harvesting                need to make updates to the Basic
                                              losses from the initial crop.                           for grain but rather the chance of                    Provisions when changes are made to
                                                 In relation to ‘‘replanted crops,’’                  harvesting for livestock feed. This                   subpart U.
                                              concerns have been raised that if an                    revision will allow a claim to be paid for               FCIC is revising section 2(f)(5) to
                                              insurance provider determines that it is                the initially seeded crop and not be                  update the years used in the example to
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                                              not practical to replant a crop and the                 impacted by the late planted crop which               reflect more recent crop years.
                                              policyholder plants the acreage to the                  was never intended to be harvested as                    FCIC is removing section 2(j) because
                                              same insured crop, it is possible the                   grain.                                                this provision is unnecessary since there
                                              replanted crop could have less                             Additionally, the revisions provides               are no longer maximum allowable
                                              production to count than the appraised                  FCIC flexibility to clarify by Special                amounts of administrative fees.
                                              production on the initially planted crop.               Provisions certain situations where a                 Previously, when there were caps, there
                                              Allowing the policyholder to receive the                crop is replanted to the same crop and                needed to be a way to inform insurance


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                                              55726            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                              providers when the cap had been met in                  FCIC, as of the premium billing date,                 ‘‘actuarial documents’’ as price elections
                                              those situations where the policyholder                 and any policyholder without an AD–                   are contained in the actuarial
                                              insured with more than one insurance                    1026 on file will be billed the full                  documents.
                                              provider. FCIC is redesignating                         unsubsidized premium. To effectuate                      FCIC is revising section 18(e)(2)(i)(B)
                                              paragraph 2(k) as 2(j).                                 these changes, FCIC has revised section               to remove the requirement that a written
                                                 (d) Section 3—FCIC is revising section               7(h)(2) to clarify the date by which                  agreement to insure acreage that is
                                              3(f)(3) to allow these provisions to be                 producers must be determined to be                    greater than five percent of the planted
                                              changed in the Special Provisions. This                 eligible for premium subsidy. FCIC has                acreage in the unit where the acreage
                                              change provides flexibility to amend the                also added section 7(h)(2)(i)(A) to                   has not been planted and harvested or
                                              production reporting dates and the                      remove the June 1 deadline from the                   insured in any of the three previous
                                              manner in which production reports are                  FCIC language providing exceptions                    crop years (commonly referred to as
                                              submitted if it is determined                           from the requirement to file an AD–1026               new breaking acreage) must be
                                              appropriate to better meet the needs of                 for producers who are new to farming,                 requested by the acreage reporting date.
                                              the program and policyholders.                          new to crop insurance, a new entity, or               The Special Provisions have previously
                                                 FCIC is revising section 3(h)(1) by                  have not previously been required to file             been utilized to require a written
                                              changing the reference of ‘‘valid basis’’               form AD–1026 and to specify that                      agreement on such acreage be requested
                                              to ‘‘valid agronomic basis’’ to be                      policyholders must certify to the                     by the sales closing date. By removing
                                              consistent with section 3(h)(2). This will              exception by the premium billing date.                this language from this section, the
                                              allow FCIC to require the same basis for                The FCIC exceptions allow new                         deadline to request this type of written
                                              supporting both the excessive yields                    producers certifying they meet the                    agreement will revert to section 18(a),
                                              and inconsistent yields and will clarify                exception criteria by the premium                     making the deadline the sales closing
                                              that factors related to the soil and crop               billing date to receive premium subsidy               date and allowing the Special
                                              productivity will be considered when                    for the initial reinsurance year while                Provisions statement to be removed.
                                              determining whether yields should be                    providing the flexibility to file form                   FCIC is removing section 18(e)(3)
                                              considered acceptable.                                  AD–1026 with FSA by the premium                       because any additional land or
                                                 (e) Section 6—FCIC is revising section               billing date of the subsequent                        additional crop must meet the request
                                              6(a)(3) to add a new paragraph (iii) that               reinsurance year to maintain premium
                                              provides if the policyholder planted the                                                                      deadlines of section 18(a) or 18(e)
                                                                                                      subsidy eligibility. Subparagraph (B)                 regardless of whether the additional
                                              insured crop on or within five days                     was added to section 7(h)(2)(i) to
                                              prior to the final planting date and the                                                                      land or additional crop will be added to
                                                                                                      reference FSA relief provisions                       an existing written agreement or a
                                              final planting date is five or fewer days               contained in 7 CFR part 12 that provide
                                              prior to the acreage reporting date, the                                                                      request for a written agreement.
                                                                                                      additional time to file an AD–1026 if                 Therefore, this language is not needed.
                                              policyholder must submit an acreage                     producers are unable to file due to
                                              report no later than five days after the                                                                         FCIC is revising section 18(f)(1)(ii) to
                                                                                                      circumstances beyond their control and                remove language regarding the
                                              acreage reporting date. This allows                     provides additional time to provide
                                              policyholders adequate time to submit                                                                         information needed to determine the
                                                                                                      required information if the AD–1026 is
                                              their acreage reports if the insured                                                                          approved yield. By specifying that the
                                                                                                      timely filed but the producer is unable
                                              crop’s acreage reporting date is the same                                                                     completed actual production history
                                                                                                      to timely provide the information due to
                                              as or closely follows the final planting                                                                      (APH) must be based on verifiable
                                                                                                      circumstances beyond their control.
                                              date.                                                                                                         records of actual yields for the crop and
                                                                                                      FCIC has determined these changes will
                                                 (f) Section 7—FCIC is revising section                                                                     county, the APH already contains the
                                                                                                      have no impact on the proper
                                              7(h) to remove the date of June 1 from                                                                        information needed to determine the
                                                                                                      determinations of conservation
                                              the conservation compliance provisions                                                                        approved yield. The revision is made
                                                                                                      compliance regarding Highly Erodible
                                              and instead refer to the premium billing                                                                      because the language is redundant.
                                                                                                      Land/Wetland Compliance violations.
                                              date. This will provide more flexibility                These changes are intended to increase                   FCIC is also revising section
                                              to policyholders and allows the                         the opportunity for producers to comply               18(f)(1)(ii) to remove the requirement of
                                              conservation compliance certification                   with the form AD–1026 conservation                    the policyholder’s signature on the
                                              process for crop insurance to be                        compliance certification requirement                  completed APH submitted with the
                                              administered more consistently with the                 and decrease the likelihood of                        written agreement request. The
                                              way it is administered for other USDA                   producers who have not committed a                    policyholder certifies to the insurance
                                              programs. Under the new provisions,                     violation from becoming ineligible for                provider each year the yields on the
                                              policyholders must still have a valid                   premium subsidy.                                      APH for the year the crop is produced
                                              AD–1026 on file with FSA for the                           (g) Section 9—FCIC is revising section             and any required signatures are
                                              reinsurance year to be eligible for                     9(a)(2)(viii)(A) by changing the reference            obtained by the insurance provider from
                                              premium subsidy; however, the AD–                       to the ‘‘Group Risk Protection Plan of                the policyholder at that time. Requiring
                                              1026 does not have to be completed by                   Insurance’’ to ‘‘Area Risk Protection                 a policyholder’s signature on the APH
                                              June 1 of the preceding reinsurance                     Insurance’’ because the Group Risk                    for a written agreement request is
                                              year. While June 1 was believed to be                   Protection Plan of Insurance was                      redundant.
                                              an appropriate timeframe in which the                   replaced with Area Risk Protection                       FCIC is revising section 18(f)(1)(iii) to
                                              AD–1026 needed to be signed, after two                  Insurance for the 2014 and succeeding                 add ‘‘the crop’’ as an option for
                                              years since initial implementation a                    crop years.                                           evidence of adaptability. Making this
                                              more streamlined approach is warranted                     (h) Section 17—FCIC is revising                    change clarifies that for situations when
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                                              to provide administrative efficiencies                  section 17(f)(9) by changing the                      the crop is not insurable, evidence of
                                              for both producers and FCIC/FSA                         reference to ‘‘manpower’’ to ‘‘labor’’ to             adaptability can only be required for the
                                              without impacting the appropriate                       update the term to be gender neutral.                 crop itself, and is not required to be
                                              determinations of compliance.                              (i) Section 18—FCIC is revising                    broken down by practice, type, or
                                              Insurance providers can confirm                         sections 18(c)(1) and (2) by replacing the            variety. The current practice, type, or
                                              whether a policyholder has a valid AD–                  phrase ‘‘Special Provisions, or in an                 variety language is intended for when
                                              1026 on file, via data received from                    addendum thereto’’ with the phrase                    the crop may be insurable, but the


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                                                               Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations                                          55727

                                              requested practice, type, or variety is                    FCIC is revising section 18(f)(2)(i)(B)               FCIC is revising section 18(f)(2)(ii) to
                                              not.                                                    to clarify this section is also applicable            clarify this section is not only
                                                 FCIC is removing section 18(f)(1)(vi)                to perennial crops that have previously               applicable to crops previously planted,
                                              to clarify that ‘‘all other information’’ is            produced a crop. As stated above, due                 it is also applicable to perennial crops
                                              not a requirement to obtain a written                   to the nature of how long some                        that have previously produced a crop.
                                              agreement. The policyholder may still                   perennial crops take to produce after                 As stated above, due to the nature of
                                              provide any other information they wish                 planting the crop, specifying ‘‘perennial             how long some perennial crops take to
                                              to support their request for written                    crops that have previously produced a                 produce after the crop is planted,
                                              agreement, but the policyholder is only                 crop’’ instead of ‘‘planted’’ clarifies the           specifying ‘‘perennial crops that have
                                              required to submit the information                      language for how perennial crops are                  previously produced a crop’’ instead of
                                              identified in sections 18(f).                           affected.                                             ‘‘planted’’ clarifies the language for how
                                                 FCIC is revising section 18(f)(2)(i) to                 FCIC is revising section                           perennial crops are affected.
                                              clarify this section is not only                        18(f)(2)(i)(B)(2) to remove the                          FCIC is also revising section
                                              applicable to crops previously planted,                 requirement that the policyholder must                18(f)(2)(ii) to allow an entity to use the
                                              it is also applicable to perennial crops                insure the crop for the three previous                production history from a substantial
                                              that have previously produced a crop.                   crop years before they can substitute a               beneficial interest in the entity that has
                                              Due to the nature of how long some                      year of insurance experience for a year               a history of growing the crop to qualify
                                              perennial crops take to produce after                   of verifiable records. This change will               for a written agreement. As stated above,
                                              planting the crop, specifying ‘‘perennial               allow the policyholder to use their                   this revision will allow a newly formed
                                              crops that have previously produced a                   insured crop’s information for any year               entity a pathway to qualify for a written
                                              crop’’ instead of ‘‘planted’’ clarifies the             that the policyholder has insured the                 agreement, whereas previously the
                                              language for how perennial crops are                    crop instead of providing verifiable                  newly formed entity was required to
                                              affected.                                               records. For example, if the                          grow the crop, or a similar crop, for a
                                                 FCIC is also revising section 18(f)(2)(i)            policyholder has produced the                         minimum of three years before the new
                                              to allow an entity to use the production                requested crop for three years and                    entity could qualify, even if substantial
                                              history from a substantial beneficial                   insured the requested crop for one year,              beneficial interests of the entity had
                                                                                                      verifiable records only have to be                    previously grown the crop.
                                              interest in the entity that has a history
                                                                                                      submitted for the two years the                          FCIC is revising section 18(f)(2)(ii)(A)
                                              of growing the crop to qualify for a
                                                                                                      requested crop was not insured. For the               to remove the requirement of the
                                              written agreement. This revision will                                                                         policyholder’s signature on the
                                                                                                      year that the crop was insured the
                                              allow a newly formed entity a pathway                                                                         completed APH submitted with the
                                                                                                      policyholder does not have to provide
                                              to qualify for a written agreement,                                                                           written agreement request. As stated
                                                                                                      verifiable records.
                                              whereas previously the newly formed                        FCIC is also revising section                      above, if the policyholder has insured
                                              entity was required to grow the crop, or                18(f)(2)(i)(B)(2) to allow an entity to use           the crop in the county or area, then the
                                              a similar crop, for a minimum of three                  the production history from a                         yields used on the APH have already
                                              years before the new entity could                       substantial beneficial interest in the                been certified to the insurance provider
                                              qualify, even if substantial beneficial                 entity that has a history of growing the              each year the production report was
                                              interests of the entity had previously                  crop to qualify for a written agreement.              provided, and any required signatures
                                              grown the crop.                                         As stated above, this revision will allow             are obtained by the insurance provider
                                                 FCIC is revising section 18(f)(2)(i)(A)              a newly formed entity a pathway to                    from the policyholder at that time. If the
                                              to remove the requirement of the                        qualify for a written agreement, whereas              crop was not insured, then verifiable
                                              policyholder’s signature on the                         previously the newly formed entity was                records must be submitted with the
                                              completed APH submitted with the                        required to grow the crop, or a similar               written agreement request. In both
                                              written agreement request. If the                       crop, for a minimum of three years                    cases, requiring a policyholder’s
                                              policyholder has insured the crop in the                before the new entity could qualify,                  signature on the APH for a written
                                              county or area, then the yields used on                 even if substantial beneficial interests of           agreement request is redundant.
                                              the APH have already been certified by                  the entity had previously grown the                      FCIC is removing sections
                                              the policyholder each year the                          crop.                                                 18(f)(2)(ii)(A)(1) and (2) from section
                                              production report was provided, and                        FCIC is adding a new section                       18(f)(2)(ii)(A). This change makes the
                                              any required signatures are obtained by                 18(f)(2)(i)(B)(3) to state that FCIC will             similar crop language consistent with
                                              the insurance provider from the                         not consider any crop year in which the               the requested crop language in section
                                              policyholder at that time. If the crop                  crop was planted outside of the most                  18(f)(2)(i). A policyholder will now be
                                              was not insured, then verifiable records                recent ten crop years as a year of                    able to provide a completed APH for a
                                              must be submitted with the written                      previously planting the crop, or                      similar crop that was grown in the area
                                              agreement request. In both cases,                       produced a crop if the crop is a                      even if the similar crop was also grown
                                              requiring a policyholder’s signature on                 perennial crop, unless verifiable                     in the county, the same as is allowed for
                                              the APH for a written agreement request                 production records are provided, or the               the requested crop.
                                              is redundant. Therefore, removing the                   crop was insured for that crop year. This                FCIC is revising section 18(f)(2)(ii)(B)
                                              APH signature requirement increases                     change reduces the burden on                          to clarify this section is not only
                                              efficiency for written agreement                        policyholders by not requiring them to                applicable to crops previously planted,
                                              requests and is less burdensome to the                  bring in the requested crop verifiable                it is also applicable to perennial crops
                                              policyholder.                                           records from over ten years ago, which                that have previously produced a crop.
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                                                 FCIC is also revising section                        would allow the use of similar crop                   As stated above, due to the nature of
                                              18(f)(2)(i)(A) of the Basic Provisions to               provisions in section 18(f)(2)(ii) to fulfill         how long some perennial crops take to
                                              state the completed APH is based on                     the requirement if the policyholder has               produce after planting the crop,
                                              verifiable production records of actual                 not grown the requested crop for three                specifying ‘‘produced for perennial
                                              yields for the crop to be consistent with               crop years in the last ten years, even if             crops’’ instead of ‘‘planted’’ clarifies the
                                              the APH requirement for other written                   the policyholder produced the                         language for how perennial crops are
                                              agreement request types.                                requested crop more than ten years ago.               affected.


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                                              55728            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                                FCIC is revising section                              not only applicable to crops previously               qualify a written agreement request for
                                              18(f)(2)(ii)(B)(2) to be consistent with                planted, it is also applicable to                     counties without actuarial documents
                                              the changes made in section                             perennial crops that have previously                  for the crop when the requested crop
                                              18(f)(2)(i)(B)(2) above, which is                       produced a crop. As stated above, due                 had not been grown, or had not been
                                              removing the requirement that the                       to the nature of how long some                        grown long enough to complete the
                                              policyholder must insure the crop for                   perennial crops take to produce after                 required three years of records. This
                                              the three previous crop years before                    planting the crop, specifying ‘‘perennial             change now clarifies that a denial will
                                              they can substitute a year of insurance                 crops that have previously produced a                 take place when the crop, or a similar
                                              experience for a year of verifiable                     crop’’ instead of ‘‘planted’’ clarifies the           crop, has not been grown, which
                                              records. Revising this section to be                    language for how perennial crops are                  removes any conflict with the similar
                                              consistent with section 18(f)(2)(i)(B)(2)               affected.                                             crop provisions.
                                              makes this change apply to the similar                     FCIC is removing section 18(f)(2)(vi)                 FCIC is also revising section 18(h)(4)
                                              crop language the same as the requested                 to be consistent with the changes made                to allow the crop or similar crop to be
                                              crop language. This change will allow                   in section 18(f)(1)(vi) above. This will              grown in the area, as growing the crop
                                              the policyholder to use their insured                   clarify that ‘‘all other information’’ is             or similar crop in the area can qualify
                                              similar crop’s information for any year                 not a requirement to obtain a written                 a policyholder in the county even if
                                              that the policyholder has insured the                   agreement. The policyholder may still                 they have not grown the crop in the
                                              similar crop instead of providing                       provide any other information they wish               requested county.
                                              verifiable records.                                     to support their request for written                     FCIC is removing from section
                                                FCIC is also revising section                         agreement but the policyholder is only                18(h)(4) the phrase ‘‘based on sales
                                              18(f)(2)(ii)(B)(2) to allow an entity to use            required to submit the information                    receipts, contemporaneous feeding
                                              the production history from a                           identified in sections 18(f).                         records or a contract for the crop.’’ By
                                              substantial beneficial interest in the                     FCIC is removing section 18(g)(3)                  listing these options out it limits what
                                              entity that has a history of growing the                because any additional land or                        can be shown as evidence of a market.
                                              similar crop to qualify for a written                   additional crop must meet the request                 If the policyholder is new to the area or
                                              agreement. As stated above, this                        deadlines of section 18(a) or 18(e)                   is growing a new crop and qualifying
                                              revision will allow a newly formed                      whether or not the additional land or                 based on a similar crop, they would not
                                              entity a pathway to qualify for a written               additional crop will be added to an                   have sales receipts, contemporaneous
                                              agreement, whereas previously the                       existing written agreement or a request               feeding records, and unlikely to have a
                                              newly formed entity was required to                     for a written agreement. Therefore, this              contract for the requested crop as most
                                              grow the crop, or a similar crop, for a                 language is not needed.                               crops do not require a contract. Section
                                              minimum of three years before the new                      FCIC is revising section 18(h)(2) to               18(f)(2)(iv) already requires the name,
                                              entity could qualify, even if substantial               clarify the APH history used to                       location of, and approximate distance to
                                              beneficial interests of the entity had                  determine 50 percent of the transitional              the place the crop will be sold, which
                                              previously grown the crop.                              yield for the crop, type, and practice can            identifies the market for the crop.
                                                FCIC is adding a new section                          be from either the county or a similar                   FCIC is revising section 18(h)(5) to
                                              18(f)(2)(ii)(B)(3) to be consistent with                county. Currently this provision only                 allow a written agreement request to be
                                              the changes made in section                             looks at similar counties. This will                  denied for a particular practice or type
                                              18(f)(2)(i)(B)(3), which is to state that               allow a broader review of the                         if that practice or type is not adapted to
                                              FCIC will not consider any crop year in                 policyholder’s APH history to determine               the county. The current language only
                                              which the crop was planted outside of                   whether at least 50 percent of the                    specified crop, thus if the crop was
                                              the most recent ten crop years as a year                transitional yield for the crop, type, and            adapted to the county it could be
                                              of previously planting the crop, or                     practice has been produced.                           assumed that all practices or types are
                                              having produced a crop if the crop is a                    FCIC is also revising section 18(h)(2)             automatically considered adapted. This
                                              perennial crop, unless verifiable                       to clarify that this provision only                   change allows the ability to deny a
                                              production records are provided, or the                 applies when the crop has been                        written agreement request if a particular
                                              crop was insured for that crop year.                    previously grown. The provision                       practice or type of a crop is not adapted
                                              Revising this section to be consistent                  appeared to deny a written agreement if               to the county, even if other practices or
                                              with section 18(f)(2)(i)(B)(3) makes this               the policyholder had not previously                   types of the crop are adapted to the
                                              change apply to the similar crop                        grown the requested crop, type or                     county.
                                              language the same as the requested crop                 practice, because if the requested crop,                 (j) Section 21—FCIC is revising
                                              language.                                               type or practice had not previously been              section 21(b)(2) to update the years used
                                                FCIC is revising section 18(f)(2)(ii)(C)              grown it could not have made 50                       in the example to reflect more recent
                                              to allow an entity to use the production                percent of the transitional yield. These              crop years.
                                              history from a substantial beneficial                   changes now clearly state that a                         (k) Section 34—FCIC is revising
                                              interest in the entity that has a history               policyholder will not be denied a                     sections 34(a)(4)(viii), (viii)(A), and
                                              of growing the crop to qualify for a                    written agreement under this provision                (viii)(B) to allow a policyholder to select
                                              written agreement. As stated above, this                if they have not grown the crop, type,                an enterprise unit for either irrigated or
                                              revision will allow a newly formed                      and practice.                                         non-irrigated practice and choose the
                                              entity a pathway to qualify for a written                  FCIC is revising section 18(h)(4) to               most appropriate unit structure on the
                                              agreement, whereas previously the                       clarify this provision is also applicable             other practice, be it a separate enterprise
                                              newly formed entity was required to                     if a similar crop was not previously                  unit or optional or basic units.
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                                              grow the crop, or a similar crop, for a                 grown in the area. As previously                      Previously, FCIC only allowed an
                                              minimum of three years before the new                   written, it appeared like a written                   enterprise unit for all acreage of the crop
                                              entity could qualify, even if substantial               agreement would automatically be                      in the county. In the Agricultural Act of
                                              beneficial interests of the entity had                  denied when the actual crop was not                   2014, Congress mandated that FCIC
                                              previously grown the crop.                              grown. This conflicted with the similar               allow separate enterprise units by
                                                FCIC is also revising section                         crop provisions in section 18(f)(2)(ii)               irrigated and non-irrigated practices.
                                              18(f)(2)(ii)(C) to clarify this section is              where a similar crop can be used to                   Currently, FCIC requires that all acreage


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                                                               Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations                                        55729

                                              of the crop in the county be insured as                 report and qualify for. If it is discovered           and safety effects, distributive impacts,
                                              an enterprise unit, one for all the                     the policyholder does not qualify for an              and equity). Executive Order 13563
                                              irrigated acreage in the county and one                 enterprise unit at any time after the                 emphasized the importance of
                                              for all the non-irrigated acreage in the                acreage reporting date, the insurance                 quantifying both costs and benefits, of
                                              county. Policyholders have made it                      provider will assign the basic unit                   reducing costs, of harmonizing rules,
                                              clear to FCIC that, requiring all irrigated             structure.                                            and of promoting flexibility. The Office
                                              and non-irrigated acreage to separately                                                                       of Management and Budget (OMB)
                                                                                                      Effective Date
                                              qualify as enterprise units and to be                                                                         designated this rule as not significant
                                              eligible for separate enterprise units by                  The FCIC is issuing this final rule                under Executive Order 12866,
                                              practice both must be insured as                        without opportunity for prior notice and              ‘‘Regulatory Planning and Review,’’ and
                                              enterprise units is not affording                       comment. The Administrative                           therefore, OMB has not reviewed this
                                              policyholders the flexibility to tailor                 Procedure Act (APA) exempts rules                     rule. The rule is not subject to Executive
                                              their insurance coverage to meet their                  ‘‘relating to agency management or                    Order 13771, ‘‘Reducing Regulation and
                                              risk management needs. Policyholders                    personnel or to public property, loans,               Controlling Regulatory Costs.’’
                                              have identified situations where both                   grants, benefits, or contracts’’ from the
                                              the irrigated and non-irrigated acreage                 statutory requirement for prior notice                Paperwork Reduction Act of 1995
                                              do not qualify as enterprise units and                  and opportunity for public comment (5                   Pursuant to the provisions of the
                                              they are left with a single enterprise unit             U.S.C. 553(a)(2)). A Federal crop                     Paperwork Reduction Act of 1995 (44
                                              for all the acreage and situations where                insurance policy is a contract and is                 U.S.C. chapter 35, subchapter I), the
                                              having separate enterprise units for                    thus exempt from APA notice-and-                      collections of information in this rule
                                              irrigated and non-irrigated acreage                     comment procedures. Previously,                       have been approved by OMB under
                                              simply does not meet their risk                         changes made to the Federal crop                      control number 0563–0053.
                                              management needs. Policyholders argue                   insurance policies codified in the Code
                                              that to meet their risk management                      of Federal Regulations were required to               E-Government Act Compliance
                                              needs they need to be allowed to qualify                be implemented through the notice-and-                   FCIC is committed to complying with
                                              for an enterprise unit for the practice                 comment rulemaking process. Such                      the E-Government Act of 2002, to
                                              that they determine best meets their risk               action was not required by the APA,                   promote the use of the Internet and
                                              management needs and another type                       which exempts contracts. Rather, the                  other information technologies to
                                              unit for the other practice. FCIC agrees                requirement originated with a notice                  provide increased opportunities for
                                              that irrigated and non-irrigated practices              USDA published in the Federal Register                citizen access to Government
                                              have inherently different risks, and                    on July 24, 1971 (36 FR 13804), stating               information and services, and for other
                                              some perils such as drought that can                    that the Department of Agriculture                    purposes.
                                              impact a non-irrigated crop may be                      would, to the maximum extent
                                                                                                      practicable, use the notice-and-comment               Unfunded Mandates Reform Act of
                                              distinctly different from those that may
                                                                                                      rulemaking process when making                        1995
                                              impact an irrigated crop such that an
                                              enterprise unit structure may only be an                program changes, including those                         Title II of the Unfunded Mandates
                                              appropriate risk management alternative                 involving contracts. FCIC complied with               Reform Act of 1995 (UMRA), establishes
                                              for one of the practices, but not both. In              this notice over the subsequent years.                requirements for Federal agencies to
                                              the best interest of policyholders and to               On October 28, 2013, USDA published                   assess the effects of their regulatory
                                              allow the flexibility to match as closely               a notice in the Federal Register (78 FR               actions on State, local, and tribal
                                              as possible the inherently different risks              64194) rescinding the prior notice,                   governments and the private sector.
                                              for irrigated and non-irrigated practices,              thereby making contracts again exempt                 This rule contains no Federal mandates
                                              FCIC is revising the provisions to allow                from the notice-and-comment                           (under the regulatory provisions of title
                                              a policyholder to elect the most                        rulemaking process. This exemption                    II of the UMRA) for State, local, and
                                              appropriate unit structure for each                     applies to the 30-day notice prior to                 tribal governments or the private sector.
                                              practice.                                               implementation of a rule. Therefore, the              Therefore, this rule is not subject to the
                                                 FCIC is revising section                             policy changes made by this final rule                requirements of sections 202 and 205 of
                                              34(a)(4)(viii)(C) to make this section                  are effective upon publication in the                 UMRA.
                                              applicable only if the policyholder                     Federal Register.
                                              elected separate enterprise units for                      However, FCIC is providing a 30-day                Executive Order 13132
                                              irrigated and non-irrigated practices and               comment period and invites interested                   It has been determined under section
                                              it is discovered the policyholder does                  persons to participate in this rulemaking             1(a) of Executive Order 13132,
                                              not qualify for an enterprise unit for the              by submitting written comments. FCIC                  Federalism, that this rule does not have
                                              irrigated or non-irrigated practices.                   may consider the comments received                    sufficient implications to warrant
                                                 FCIC is adding a new section                         and may conduct additional rulemaking                 consultation with the States. The
                                              34(a)(4)(viii)(D) to state what happens                 based on the comments.                                provisions contained in this rule will
                                              when a policyholder elected an                                                                                not have a substantial direct effect on
                                              enterprise unit on one practice (irrigated              Executive Orders 12866, 13563, and
                                                                                                                                                            States, or on the relationship between
                                              or non-irrigated) and a different unit                  13771
                                                                                                                                                            the national government and the States,
                                              structure on the other practice and it is                 Executive Order 12866, ‘‘Regulatory                 or on the distribution of power and
                                              discovered the policyholder does not                    Planning and Review,’’ and Executive                  responsibilities among the various
                                              qualify for an enterprise unit for the                  Order 13563, ‘‘Improving Regulation                   levels of government.
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                                              irrigated or non-irrigated practice. If it is           and Regulatory Review,’’ direct agencies
                                              discovered the policyholder does not                    to assess all costs and benefits of                   Executive Order 13175
                                              qualify for an enterprise unit on or                    available regulatory alternatives and, if               This rule has been reviewed in
                                              before the acreage reporting date, the                  regulation is necessary, to select                    accordance with the requirements of
                                              policyholder’s unit division will be                    regulatory approaches that maximize                   Executive Order 13175, ‘‘Consultation
                                              based on basic or optional units,                       net benefits (including potential                     and Coordination with Indian Tribal
                                              whichever they report on their acreage                  economic, environmental, public health                Governments.’’ Executive Order 13175


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                                              55730            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                              requires Federal agencies to consult and                Executive Order 12372                                 12 as amended by the Agricultural Act
                                              coordinate with tribes on a government-                   This program is not subject to the                  of 2014; or
                                              to-government basis on policies that                    provisions of Executive Order 12372,                     (2) You have not filed form AD–1026
                                              have tribal implications, including                     which require intergovernmental                       with FSA for the reinsurance year by the
                                              regulations, legislative comments or                    consultation with State and local                     premium billing date.
                                              proposed legislation, and other policy                  officials. See 2 CFR part 415, subpart C.                (i) Notwithstanding section 6(f)(2),
                                              statements or actions that have                                                                               you may be eligible for premium
                                              substantial direct effects on one or more               Executive Order 12988                                 subsidy without having a timely filed
                                              Indian tribes, on the relationship                         This rule has been reviewed in                     form AD–1026:
                                              between the Federal Government and                      accordance with Executive Order 12988                    (A) For the initial reinsurance year if
                                              Indian tribes or on the distribution of                 on civil justice reform. The provisions               you certify by the premium billing date
                                              power and responsibilities between the                  of this rule will not have a retroactive              for your policy that you meet the
                                              Federal Government and Indian tribes.                   effect. The provisions of this rule will              qualifications as outlined in FCIC
                                                The Federal Crop Insurance                                                                                  approved procedures for producers who
                                                                                                      preempt State and local laws to the
                                              Corporation has assessed the impact of                                                                        are new to farming, new to crop
                                                                                                      extent such State and local laws are
                                              this rule on Indian tribes and                                                                                insurance, a new entity, or have not
                                                                                                      inconsistent herewith. With respect to
                                              determined that this rule does not, to                                                                        previously been required to file form
                                                                                                      any direct action taken by FCIC or
                                              our knowledge, have tribal implications                                                                       AD–1026; or
                                                                                                      action by FCIC directing the insurance
                                              that require tribal consultation under                                                                           (B) If FSA approves relief for failure
                                              EO 13175. If a Tribe requests                           provider to take specific action under
                                                                                                      the terms of the crop insurance policy,               to timely file due to circumstances
                                              consultation, the Federal Crop                                                                                beyond your control or failure to timely
                                              Insurance Corporation will work with                    the administrative appeal provisions
                                                                                                      published at 7 CFR part 11 must be                    provide adequate information to
                                              the Office of Tribal Relations to ensure                                                                      complete form AD–1026 in accordance
                                              meaningful consultation is provided                     exhausted before any action against
                                                                                                      FCIC for judicial review may be brought.              with the provisions contained in 7 CFR
                                              where changes, additions and                                                                                  part 12.
                                              modifications identified herein are not                 Environmental Evaluation                                 (ii) To be eligible for premium
                                              expressly mandated by Congress.                                                                               subsidy paid on your behalf by FCIC, it
                                                                                                        This action is not expected to have a
                                              Regulatory Flexibility Act                              significant economic impact on the                    is your responsibility to assure you meet
                                                                                                      quality of the human environment,                     all the requirements for:
                                                 FCIC certifies that this regulation will                                                                      (A) Compliance with the conservation
                                              not have a significant economic impact                  health, or safety. Therefore, neither an
                                                                                                      Environmental Assessment nor an                       provisions specified in section 6(f)(1) of
                                              on a substantial number of small                                                                              this section; and
                                              entities. Program requirements for the                  Environmental Impact Statement is
                                                                                                      needed.                                                  (B) Filing form AD–1026 to be
                                              Federal crop insurance program are the                                                                        properly identified as in compliance
                                              same for all producers regardless of the                List of Subjects in 7 CFR Parts 402, 407,             with the conservation provisions
                                              size of their farming operation. For                    and 457                                               specified in section 6(f)(1) of this
                                              instance, all producers are required to
                                                                                                        Crop insurance, Reporting and                       section.
                                              submit an application and acreage
                                              report to establish their insurance                     recordkeeping requirements.                           *       *    *     *     *
                                              guarantees and compute premium                          Final Rule                                            PART 407—AREA RISK PROTECTION
                                              amounts, and all producers are required
                                                                                                        Accordingly, as set forth in the                    INSURANCE REGULATIONS
                                              to submit a notice of loss and
                                              production information to determine the                 preamble, the Federal Crop Insurance
                                                                                                      Corporation amends 7 CFR parts 402,                   ■ 3. The authority citation for 7 CFR
                                              indemnity amount for an insured cause                                                                         part 407 continues to read as follows:
                                              of crop loss. Whether a producer has 10                 407, and 457 as follows:
                                                                                                                                                                Authority: 7 U.S.C. 1506(l), 1506(o).
                                              acres or 1000 acres, there is no                        PART 402—CATASTROPHIC RISK
                                              difference in the kind of information                                                                         ■  4. Amend § 407.9 as follows:
                                                                                                      PROTECTION ENDORSEMENT
                                              collected. To ensure crop insurance is                                                                        ■  a. Remove the phrase ‘‘website’’
                                              available to small entities, the Federal                ■ 1. The authority citation for 7 CFR                 wherever it appears and add the word
                                              Crop Insurance Act (FCIA) authorizes                    part 402 continues to read as follows:                ‘‘Web site’’ in its place;
                                              FCIC to waive collection of                                                                                   ■ b. In section 1:
                                                                                                          Authority: 7 U.S.C. 1506(l), 1506(o).             ■ i. Revise the definition of ‘‘Good
                                              administrative fees from limited
                                              resource farmers. FCIC believes this                    ■ 2. Amend § 402.4 by revising section                farming practices’’; and
                                              waiver helps to ensure that small                       6(f) to read as follows:                              ■ ii. In the definition of ‘‘Limited
                                              entities are given the same opportunities                                                                     resource farmer’’, remove ‘‘http://
                                                                                                      § 402.4 Catastrophic Risk Protection                  www.lrftool.sc.egov.usda.gov or a
                                              as large entities to manage their risks                 Endorsement Provisions.
                                              through the use of crop insurance. A                                                                          successor Web site’’ and add ‘‘http://
                                              Regulatory Flexibility Analysis has not                 *     *    *     *     *                              lrftool.sc.egov.usda.gov/LRP_
                                              been prepared since this regulation does                  6. Annual Premium and                               Definition.aspx’’ in its place;
                                              not have a significant impact on a                      Administrative Fees                                   ■ c. In section 2:
                                              substantial number of small entities,                   *     *    *     *     *                              ■ i. Redesignate paragraph (j)(2) as
                                              and, therefore, this regulation is exempt                 (f) You will be responsible for                     paragraph (j)(3);
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                                              from the provisions of the Regulatory                   payment of the premium established for                ■ ii. Add a new paragraph (j)(2);
                                              Flexibility Act (5 U.S.C. 605).                         the coverage provided under this                      ■ iii. In paragraph (k)(2)(i)(D), remove
                                                                                                      endorsement if:                                       the date of ‘‘2011’’ and add the date
                                              Federal Assistance Program                                (1) USDA determines you have                        ‘‘2019’’ in its place and remove the date
                                                This program is listed in the Catalog                 committed a violation of the highly                   of ‘‘2010’’ and add the date of ‘‘2018’’
                                              of Federal Domestic Assistance under                    erodible land conservation or wetland                 in its place in each instance these dates
                                              No. 10.450.                                             conservation provisions of 7 CFR part                 appear in the paragraph;


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                                                               Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations                                         55731

                                              ■  iv. Revise paragraph (k)(3)(ii); and                 approved procedures for producers who                 ■  iv. Revise paragraph (f)(3)(ii);
                                              ■  v. In paragraph (p)(2), remove the date              are new to farming, new to crop                       ■  v. In paragraph (f)(5), remove the date
                                              of ‘‘2012’’ and add the date ‘‘2018’’ in                insurance, a new entity, or have not                  of ‘‘2010’’ and add the date ‘‘2018’’ in
                                              its place and remove the date of ‘‘2013’’               previously been required to file form                 its place, remove the date of ‘‘2011’’ and
                                              and add the date of ‘‘2019’’ in its place               AD–1026; or                                           add the date of ‘‘2019’’ in its place, and
                                              in each instance these dates appear in                     (B) If FSA approves relief for failure             remove the date of ‘‘2012’’ and add the
                                              the paragraph;                                          to timely file due to circumstances                   date of ‘‘2020’’ in its place, in each
                                              ■ d. Revise section 7(i).                               beyond your control or failure to timely              instance these dates appear in the
                                                 The revisions and additions reads as                 provide adequate information to                       paragraph;
                                              follows:                                                complete form AD–1026 in accordance                   ■ vii. Remove paragraph (j); and
                                                                                                      with the provisions contained in 7 CFR                ■ viii. Redesignate paragraph (k) as
                                              § 407.9   Area risk protection insurance
                                              policy.
                                                                                                      part 12.                                              paragraph (j);
                                                                                                         (ii) To be eligible for premium                    ■ f. In section 3:
                                              *       *    *     *     *                              subsidy paid on your behalf by FCIC, it               ■ i. In paragraph (f)(3), add the phrase
                                                 1. Definitions                                       is your responsibility to assure you meet             ‘‘, unless otherwise specified in the
                                              *       *    *     *     *                              all the requirements for:                             Special Provisions’’ following the
                                                 Good farming practices. The                             (A) Compliance with the conservation               phrase ‘‘by the production reporting
                                              production methods utilized to produce                  provisions specified in section 7(i)(1) of            date’’; and
                                              the insured crop, type, and practice and                this section; and                                     ■ ii. In paragraph (h)(1), add the term
                                              allow it to make normal progress toward                    (B) Filing form AD–1026 to be                      ‘‘agronomic’’ following the phrase ‘‘you
                                              maturity, which are those generally                     properly identified as in compliance                  cannot prove there is a valid’’;
                                              recognized by agricultural experts or                   with the conservation provisions                      ■ g. In section 6:
                                              organic agricultural experts, depending                 specified in section 7(i)(1) of this                  ■ i. In paragraph (a)(3)(i), remove the
                                              on the practice, for the area. We may, or               section.                                              term ‘‘and’’ following the semicolon at
                                              you may request us to, contact FCIC to                  *       *    *     *     *                            the end of the paragraph;
                                              determine if production methods will be                                                                       ■ ii. In paragraph (a)(3)(ii)(C), remove
                                              considered ‘‘good farming practices.’’                  PART 457—COMMON CROP                                  ‘‘(5)’’ and remove the period at the end
                                              *       *    *     *     *                              INSURANCE REGULATIONS                                 of the paragraph and add ‘‘; and’’ in its
                                                 2. Life of Policy, Cancellation, and                                                                       place;
                                              Termination                                             ■ 5. The authority citation for 7 CFR
                                                                                                      part 457 continues to read as follows:                ■ iii. Add paragraph (a)(3)(iii); and
                                              *       *    *     *     *                                                                                    ■ iv. In paragraph (c)(5), remove the
                                                 (j) * * *                                                Authority: 7 U.S.C. 1506(l) and 1506(o).
                                                                                                                                                            term ‘‘serial’’ following the phrase ‘‘FSA
                                                 (2) If you and we agree, your premium                ■  6. Amend § 457.8, in the Common                    farm’’;
                                              and administrative fees can be offset                   Crop Insurance Policy, as follows:                    ■ h. Revise section 7(h);
                                              from any indemnity due you even if it                   ■ a. Remove the phrase ‘‘Web site’’                   ■ i. In section 9(a)(2)(viii)(A), remove
                                              is prior to the billing date of the                     wherever it appears and add the word                  the phrase ‘‘the Group Risk Protection
                                              premium and administrative fees.                        ‘‘Web site’’ in its place;                            Plan of Insurance or successor
                                              *       *    *     *     *                              ■ b. Remove the phrase ‘‘replant                      provisions’’ and add the phrase ‘‘Area
                                                 (k) * * *                                            payment’’ wherever it appears and add                 Risk Protection Insurance’’ in its place;
                                                 (3) * * *                                            the phrase ‘‘replanting payment’’ in its              ■ j. In section 17(f)(9) introductory text,
                                                 (ii) Execute a written payment                       place;                                                remove the term ‘‘manpower’’ and add
                                              agreement in accordance with 7 CFR                      ■ c. Under the heading ‘‘Reinsured                    the term ‘‘labor’’ in its place;
                                              part 400, subpart U, and make payments                  Policies,’’ revise the third paragraph;               ■ k. In section 18:
                                              in accordance with the agreement; or                    ■ d. In section 1:                                    ■ i. In paragraphs (c)(1) and (2), remove
                                                                                                      ■ i. In the definition of ‘‘Actual                    the phrase ‘‘Special Provisions, or an
                                              *       *    *     *     *
                                                 7. Annual Premium and                                Production History (APH),’’ remove                    addendum thereto,’’ and add the phrase
                                              Administrative Fees                                     ‘‘(G)’’ and add ‘‘G’’ in its place;                   ‘‘actuarial documents’’ in its place
                                                                                                      ■ ii. In the definition of ‘‘Cooperative
                                              *       *    *     *     *                                                                                    wherever it appears;
                                                                                                      Extension System,’’ remove the phrase                 ■ ii. In paragraph (e)(1), add the term
                                                 (i) You will be ineligible for any                   ‘‘Cooperative State Research, Education
                                              premium subsidy paid on your behalf                                                                           ‘‘or’’ to the end of the paragraph
                                                                                                      and Extension Service’’ and add the                   following the semicolon;
                                              by FCIC for any policy issued by us if:                 phrase ‘‘National Institute of Food and
                                                 (1) USDA determines you have                                                                               ■ iii. Revise paragraph (e)(2)(i)(B);
                                                                                                      Agriculture’’ in its place;
                                              committed a violation of the highly                                                                           ■ iv. In paragraph (e)(2)(iii), remove the
                                                                                                      ■ iii. Remove the definition for ‘‘FSA
                                              erodible land conservation or wetland                                                                         term ‘‘or’’ following the semicolon;
                                                                                                      farm serial number’’;
                                              conservation provisions of 7 CFR part                                                                         ■ v. Remove paragraph (e)(3);
                                                                                                         iv. Add the definition for ‘‘FSA farm
                                              12 as amended by the Agricultural Act                                                                         ■ vi. Revise paragraph (f)(1)(ii);
                                                                                                      number’’; and
                                              of 2014; or                                             ■ v. Revise the definitions of ‘‘Good                 ■ vii. In paragraph (f)(1)(iii), add the
                                                 (2) You have not filed form AD–1026                  farming practices,’’ ‘‘Price election,’’              phrase ‘‘the crop,’’ following the phrase
                                              with FSA for the reinsurance year by the                and ‘‘Replanted crop’’;                               ‘‘to provide insurance for’’;
                                              premium billing date.                                   ■ e. In section 2:                                    ■ viii. In paragraph (f)(1)(iv), remove the
                                                 (i) Notwithstanding section 7(i)(2),                 ■ i. Redesignate paragraph (e)(2) as                  term ‘‘serial’’ following the phrase ‘‘FSA
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                                              you may be eligible for premium                         paragraph (e)(3);                                     farm’’ and add the term ‘‘and’’ at the
                                              subsidy without having a timely filed                   ■ ii. Add a new paragraph (e)(2);                     end of the paragraph following the
                                              form AD–1026:                                           ■ iii. In paragraph (f)(2)(i)(D), remove              semicolon;
                                                 (A) For the initial reinsurance year if              the date of ‘‘2011’’ and add the date                 ■ ix. In paragraph (f)(1)(v), remove the
                                              you certify by the premium billing date                 ‘‘2019’’ in its place in both places and              term ‘‘and’’ following the semicolon at
                                              for your policy that you meet the                       remove the date of ‘‘2010’’ and add the               the end of the paragraph;
                                              qualifications as outlined in FCIC                      date ‘‘2018’’ in its place;                           ■ x. Remove paragraph (f)(1)(vi);



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                                              55732            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                              ■  xi. Revise paragraphs (f)(2)(i), (f)(2)(ii)             FSA farm number. The number                        from any indemnity or prevented
                                              introductory text, and (f)(2)(ii)(A)                    assigned to the farm by the local FSA                 planting payment due you even if it is
                                              through (C);                                            office.                                               prior to the billing date of the premium
                                              ■ xii. In paragraph (f)(1)(iv), add the                 *       *    *     *     *                            and administrative fees.
                                              term ‘‘and’’ at the end of the paragraph                   Good farming practices. The                        *       *     *    *      *
                                              following the semicolon;                                production methods utilized to produce                   (f) * * *
                                              ■ xiii. Remove paragraph (f)(2)(vi);                    the insured crop and allow it to make                    (3) * * *
                                              ■ xiv. In paragraph (g)(2), add the term                normal progress toward maturity and                      (ii) Execute a written payment
                                              ‘‘or’’ at the end of the paragraph                      produce at least the yield used to                    agreement, in accordance with 7 CFR
                                              following the semicolon;                                determine the production guarantee or                 part 400, subpart U, and make payments
                                              ■ xv. Remove paragraph (g)(3);                          amount of insurance, including any                    in accordance with the agreement; or
                                              ■ xvi. Redesignate paragraph (g)(4) as                  adjustments for late planted acreage,                 *       *     *    *      *
                                              (g)(3);                                                 which are those generally recognized by                  6. Report of Acreage
                                              ■ xvii. Revise paragraphs (h)(2) and (4);               agricultural experts or organic                          (a) * * *
                                              and                                                     agricultural experts, depending on the                   (3) * * *
                                              ■ xviii. In paragraph (h)(5), add the                   practice, for the area. We may, or you                   (iii) If you plant the insured crop on
                                              phrase ‘‘, practice, or type’’ following                may request us to, contact FCIC to                    or within five days prior to the final
                                              the phrase ‘‘experts determine the                      determine if production methods will be               planting date and the final planting date
                                              crop’’;                                                 considered ‘‘good farming practices.’’                is five or fewer days prior to the acreage
                                              ■ l. Revise section 21(b)(2); and                                                                             reporting date, you must submit an
                                              ■ m. In section 34:
                                                                                                      *       *    *     *     *
                                                                                                         Price election. The amount contained               acreage report no later than five days
                                              ■ i. In paragraphs (a)(4)(i)(C), (D), and
                                                                                                      in the actuarial documents that is the                after the acreage reporting date (for
                                              (E) and (a)(4)(ii), remove the term                                                                           example, if the final planting date
                                                                                                      value per pound, bushel, ton, carton, or
                                              ‘‘serial’’ following the phrase ‘‘FSA                                                                         contained in the Special Provisions is
                                                                                                      other applicable unit of measure for the
                                              farm’’ wherever it appears;                                                                                   July 10, the acreage reporting date
                                                                                                      purposes of determining premium and
                                              ■ ii. Revise paragraph (a)(4)(viii); and
                                                                                                      indemnity under the policy. A price                   contained in the Special Provisions is
                                              ■ iii. In paragraphs (c)(1)(ii) and (c)(2)
                                                                                                      election is not applicable for crops for              July 15 and you plant the insured crop
                                              and (3), remove the term ‘‘serial’’                                                                           on July 9, you have until July 20 to
                                              following the phrase ‘‘FSA farm’’                       which revenue protection is available.
                                                                                                      *       *    *     *     *                            submit an acreage report for the insured
                                              wherever it appears.                                                                                          crop).
                                                 The revisions and additions reads as                    Replanted crop. (1) The same
                                              follows:                                                agricultural commodity replanted on the               *       *     *    *      *
                                                                                                      same acreage as the insured crop for                     7. Annual Premium and
                                              § 457.8   The application and policy.                   harvest in the same crop year if:                     Administrative Fees
                                              *     *     *      *      *                                (i) The replanting is specifically made            *       *     *    *      *
                                                Common Crop Insurance Policy                          optional by the policy and you elect to                  (h) You will be ineligible for any
                                              *     *     *      *      *                             replant the crop and insure it under the              premium subsidy paid on your behalf
                                                Reinsured Policies                                    policy covering the first insured crop; or            by FCIC for any policy issued by us if:
                                                                                                         (ii) Replanting is required by the                    (1) USDA determines you have
                                              *     *     *      *      *                             policy.
                                                AGREEMENT TO INSURE: In return                                                                              committed a violation of the highly
                                                                                                         (2) Unless otherwise specified in the              erodible land conservation or wetland
                                              for the payment of the premium, and                     Special Provisions, the crop will be
                                              subject to all of the provisions of this                                                                      conservation provisions of 7 CFR part
                                                                                                      considered an insured replanted crop                  12 as amended by the Agricultural Act
                                              policy, we agree with you to provide the                and no replanting payment will be paid
                                              insurance as stated in this policy. If                                                                        of 2014; or
                                                                                                      if we have determined it is not practical                (2) You have not filed form AD–1026
                                              there is a conflict between the Act, the                to replant the insured crop and you                   with FSA for the reinsurance year by the
                                              regulations published at 7 CFR chapter                  choose to plant the acreage to the same               premium billing date.
                                              IV, and the procedures as issued by                     insured crop within or prior to the late                 (i) Notwithstanding section 7(h)(2),
                                              FCIC, the order of priority is: (1) The                 planting period or after the final                    you may be eligible for premium
                                              Act; (2) the regulations; and (3) the                   planting date if no late planting period              subsidy without having a timely filed
                                              procedures as issued by FCIC, with (1)                  is applicable. If we determine it is not              form AD–1026:
                                              controlling (2), etc. If there is a conflict            practical to replant and you plant the                   (A) For the initial reinsurance year if
                                              between the policy provisions                           acreage to the same insured crop, any                 you certify by the premium billing date
                                              published at 7 CFR part 457 and the                     indemnity will be based on the greater                for your policy that you meet the
                                              administrative regulations published at                 of:                                                   qualifications as outlined in FCIC
                                              7 CFR part 400, the policy provisions                      (i) Our appraised production on the                approved procedures for producers who
                                              published at 7 CFR part 457 control. If                 initially planted crop;                               are new to farming, new to crop
                                              a conflict exists among the policy, the                    (ii) Our subsequent appraisal of the               insurance, a new entity, or have not
                                              order of priority is: (1) The Catastrophic              replanted crop if the replanted crop is               previously been required to file form
                                              Risk Protection Endorsement, as                         not harvested; or                                     AD–1026; or
                                              applicable; (2) the Special Provisions;                    (iii) The harvested production from                   (B) If FSA approves relief for failure
                                              (3) the actuarial documents; (4) the                    the replanted crop.                                   to timely file due to circumstances
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                                              Commodity Exchange Price Provisions,                    *       *    *     *     *                            beyond your control or failure to timely
                                              as applicable; (5) the Crop Provisions;                    2. Life of Policy, Cancellation, and               provide adequate information to
                                              and (6) these Basic Provisions, with (1)                Termination                                           complete form AD–1026 in accordance
                                              controlling (2), etc.                                                                                         with the provisions contained in 7 CFR
                                                                                                      *       *    *     *     *
                                              *     *     *      *      *                                (e) * * *                                          part 12.
                                                1. Definitions                                           (2) If you and we agree, your premium                 (ii) To be eligible for premium
                                              *     *     *      *      *                             and administrative fees can be offset                 subsidy paid on your behalf by FCIC, it


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                                                               Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations                                        55733

                                              is your responsibility to assure you meet               produced a crop if the crop is a                      similar crop for the remaining years;
                                              all the requirements for:                               perennial crop) outside of the most                   and
                                                 (A) Compliance with the conservation                 recent ten crop years as a year of                    *      *      *    *     *
                                              provisions specified in section 7(h)(1) of              previously planting the crop (or having                  (h) * * *
                                              this section; and                                       produced a crop if the crop is a                         (2) Your APH history demonstrates
                                                 (B) Filing form AD–1026 to be                        perennial crop), unless verifiable                    you have not produced at least 50
                                              properly identified as in compliance                    production records are provided, or the               percent of the transitional yield for the
                                              with the conservation provisions                        crop was insured for that crop year;                  crop, type, and practice obtained from
                                              specified in section 7(h)(1) of this                       (ii) For a crop you (or anyone with a              the county, or a county with similar
                                              section.                                                substantial beneficial interest in you)               agronomic conditions and risk
                                              *       *    *     *    *                               have not previously planted (or                       exposure, when previously grown;
                                                 18. Written Agreements                               produced a crop if the crop is a
                                                                                                      perennial crop) in the county or area for             *      *      *    *     *
                                              *       *    *     *    *                                                                                        (4) The crop, or a similar crop, was
                                                 (e) * * *                                            at least three years:
                                                 (2) * * *                                               (A) A completed APH (only for crop                 not previously grown in the county or
                                                 (i) * * *                                            policies that require APH) based on                   area, or there is no evidence of a market
                                                 (B) Establish optional units in                      verifiable production records of actual               for the crop (applicable only for
                                              accordance with FCIC procedures that                    yields for the similar crop;                          counties without actuarial documents);
                                              otherwise would not be allowed or                          (B) Verifiable production records for              or
                                              change the premium rate or transitional                 at least the three most recent crop years             *      *      *    *     *
                                              yield for designated high-risk land;                    in which the similar crop was planted                    21. Access to Insured Crop and
                                              *       *    *     *    *                               (or produced a crop if the crop is a                  Records, and Record Retention
                                                 (f) * * *                                            perennial crop) in the county or area:                *      *      *    *     *
                                                 (1) * * *                                               (1) The verifiable production records                 (b) * * *
                                                 (ii) A completed APH (only for crop                  for the similar crop do not necessarily                  (2) All records used to establish the
                                              policies that require APH) based on                     have to be from the same physical                     amount of production you certified on
                                              verifiable records of actual yields for the             acreage for which you are requesting a
                                                                                                                                                            your production reports used to
                                              crop and county for which the written                   written agreement;
                                                                                                                                                            compute your approved yield for three
                                              agreement is being requested (the actual                   (2) Verifiable production records do
                                                                                                      not have to be submitted for any crop                 years after the calendar date for the end
                                              yields do not necessarily have to be                                                                          of the insurance period for the crop year
                                              from the same physical acreage for                      year you (or anyone with a substantial
                                                                                                      beneficial interest in you) have insured              for which you initially certified such
                                              which you are requesting a written                                                                            records, unless such records have
                                              agreement), and verifiable records of                   the similar crop in the county or area
                                                                                                      and have certified the yields on the                  already been provided to us (e.g., if you
                                              actual yields if required by FCIC;                                                                            are a new insured and you certify 2015
                                              *       *    *     *    *                               applicable production reports or the
                                                                                                      yields are based on your insurance                    through 2018 crop year production
                                                 (2) * * *                                                                                                  records in 2019 to determine your
                                                 (i) For a crop you (or anyone with a                 claim (although you are not required to
                                                                                                      submit production records, you still                  approved yield for the 2019 crop year,
                                              substantial beneficial interest in you)                                                                       you must retain all records from the
                                              have previously planted (or produced a                  must maintain production records in
                                                                                                      accordance with section 21); and                      2015 through 2018 crop years through
                                              crop if the crop is a perennial crop) in                                                                      the 2022 crop year. If you subsequently
                                              the county or area for at least three                      (3) FCIC will not consider any crop
                                                                                                      year in which the similar crop was                    certify records of the 2019 crop year in
                                              years:                                                                                                        2020 to determine your approved yield
                                                 (A) A completed APH (only for crop                   planted (or produced a crop if the crop
                                                                                                      is a perennial crop) outside of the most              for the 2020 crop year, you must retain
                                              policies that require APH) based on                                                                           the 2019 crop year records through the
                                              verifiable production records of actual                 recent ten crop years as a year of
                                                                                                      previously planting the similar crop (or              2023 crop year and so forth for each
                                              yields for the crop; and                                                                                      subsequent year of production records
                                                 (B) Verifiable production records for                having produced a crop if the crop is a
                                                                                                      perennial crop), unless verifiable                    certified); and
                                              at least the three most recent crop years
                                              in which the crop was planted (or                       production records are provided, or the               *      *      *    *     *
                                              produced a crop if the crop is a                        similar crop was insured, for that crop                  34. Units.
                                              perennial crop):                                        year;                                                    (a) * * *
                                                 (1) The verifiable production records                   (C) If you (or anyone with a                          (4) * * *
                                              do not necessarily have to be from the                  substantial beneficial interest in you)                  (viii) If allowed by the actuarial
                                              same physical acreage for which you are                 have at least one year of production                  documents, you may elect separate
                                              requesting a written agreement;                         records, but less than three years of                 enterprise units for irrigated or non-
                                                 (2) Verifiable production records do                 production records, for the crop in the               irrigated practices.
                                              not have to be submitted for any year                   county or area but have production                       (A) You may elect one enterprise unit
                                              you (or anyone with a substantial                       records for a similar crop in the county              for all irrigated practices or one
                                              beneficial interest in you) have insured                or area such that the combination of                  enterprise unit for all non-irrigated
                                              the crop in the county or area and have                 both sets of records results in at least              practices or enterprise units for both.
                                              certified the yields on the applicable                  three years of production records, you                   (B) You must separately meet the
                                              production reports or the yields are                    must provide the information required                 requirements in section 34(a)(4) for each
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                                              based on your insurance claim                           in sections 18(f)(2)(i)(A) and (B) for the            enterprise unit.
                                              (although you are not required to submit                years you (or anyone with a substantial                  (C) If you elected separate enterprise
                                              production records, you still must                      beneficial interest in you) planted the               units for both irrigated and non-irrigated
                                              maintain production records in                          crop (or produced a crop if the crop is               practices and we discover you do not
                                              accordance with section 21); and                        a perennial crop) in the county or area               qualify for an enterprise unit for the
                                                 (3) FCIC will not consider any crop                  and the information required in sections              irrigated or non-irrigated practice and
                                              year in which the crop was planted (or                  18(f)(2)(ii)(A) and (B) regarding the                 such discovery is made:


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                                              55734            Federal Register / Vol. 82, No. 225 / Friday, November 24, 2017 / Rules and Regulations

                                                 (1) On or before the acreage reporting               ACTION:   Joint final rule.                           seq.) through their CRA regulations. See
                                              date, you may elect to insure all acreage                                                                     12 CFR parts 25, 195, 228, and 345. The
                                              of the crop in the county in one                        SUMMARY:    The Office of the Comptroller             CRA is designed to encourage regulated
                                              enterprise unit provided you meet the                   of the Currency (OCC), the Board of                   financial institutions to help meet the
                                              requirements in section 34(a)(4), or your               Governors of the Federal Reserve                      credit needs of the local communities in
                                              unit division will be based on basic or                 System (Board), and the Federal Deposit               which an institution is chartered. The
                                              optional units, whichever you report on                 Insurance Corporation (FDIC)                          CRA regulations establish the
                                              your acreage report and qualify for; or                 (collectively, the Agencies) are                      framework and criteria by which the
                                                 (2) At any time after the acreage                    amending their regulations                            Agencies assess a financial institution’s
                                              reporting date, your unit structure will                implementing the Community                            record of helping to meet the credit
                                              be one enterprise unit provided you                     Reinvestment Act (CRA). The Agencies                  needs of its community, including low-
                                              meet the requirements in section                        are modifying the existing definitions of             and moderate-income neighborhoods,
                                              34(a)(4). Otherwise, we will assign the                 ‘‘home mortgage loan’’ and ‘‘consumer                 consistent with safe and sound
                                              basic unit structure.                                   loan,’’ related cross references, and the             operations. Under the CRA regulations,
                                                 (D) If you elected an enterprise unit                public file content requirements to                   the Agencies apply different evaluation
                                              on one practice (irrigated or non-                      conform to recent revisions made by the               standards for financial institutions of
                                              irrigated) and a different unit structure               Consumer Financial Protection Bureau                  different asset sizes and types.
                                              on the other practice and we discover                   (Bureau) to Regulation C, which                          The Agencies also publish the
                                              you do not qualify for an enterprise unit               implements the Home Mortgage                          Interagency Questions and Answers
                                              for the irrigated or non-irrigated practice             Disclosure Act (HMDA). This final rule                Regarding Community Reinvestment to
                                              and such discovery is made:                             also removes obsolete references to the               provide guidance on the interpretation
                                                 (1) On or before the acreage reporting               Neighborhood Stabilization Program                    and application of the CRA regulations
                                              date, your unit division will be based on               (NSP).                                                to agency personnel, financial
                                              basic or optional units, whichever you                  DATES:  This rule is effective on January             institutions, and the public.
                                              report on your acreage report and                                                                                On September 20, 2017, the Agencies
                                                                                                      1, 2018.
                                              qualify for; or                                                                                               published a joint notice of proposed
                                                                                                      FOR FURTHER INFORMATION CONTACT:                      rulemaking to amend their regulations
                                                 (2) At any time after the acreage
                                                                                                         OCC: Emily R. Boyes, Attorney,                     implementing the CRA.1 The Agencies
                                              reporting date, we will assign the basic
                                                                                                      Community and Consumer Law                            proposed to amend the definitions of
                                              unit structure.
                                                                                                      Division, (202) 649–6350; Allison                     ‘‘home mortgage loan’’ and ‘‘consumer
                                              *      *     *     *    *                               Hester-Haddad, Counsel, Legislative and               loan’’ and the public file content
                                                Signed in Washington, DC, on November                 Regulatory Activities Division, (202)                 requirements to conform to revisions
                                              16, 2017.                                               649–5490; for persons who are deaf or                 made by the Bureau to its Regulation C,
                                              Heather Manzano,                                        hearing impaired, TTY, (202) 649–5597;                which implements HMDA (2015 HMDA
                                              Acting Manager, Federal Crop Insurance                  or Vonda J. Eanes, Director for CRA and               Rule).2 The Agencies also proposed to
                                              Corporation.                                            Fair Lending Policy, Compliance Risk                  make technical amendments to remove
                                              [FR Doc. 2017–25330 Filed 11–22–17; 8:45 am]            Policy Division, (202) 649–5470, Office               unnecessary cross references as a result
                                              BILLING CODE 3410–08–P                                  of the Comptroller of the Currency, 400               of the proposed amended definitions,
                                                                                                      7th Street SW., Washington, DC 20219.                 and to remove an obsolete reference to
                                                                                                         Board: Amal S. Patel, Senior                       the NSP. The comment period for the
                                              DEPARTMENT OF THE TREASURY                              Supervisory Consumer Financial                        Agencies’ joint proposed rulemaking
                                                                                                      Services Analyst, Division of Consumer                ended on October 20, 2017.
                                              Office of the Comptroller of the                        and Community Affairs, (202) 912–                        Together, the Agencies received two
                                              Currency                                                7879; Cathy Gates, Senior Project                     comment letters on the proposed
                                                                                                      Manager, Division of Consumer and                     amendments. One comment was from a
                                              12 CFR Parts 25 and 195                                 Community Affairs, (202) 452–2099,                    community organization and the other
                                              [Docket ID OCC–2017–0008]                               Board of Governors of the Federal                     from a financial institution. Both
                                                                                                      Reserve System, 20th Street and                       commenters supported the changes
                                              RIN 1557–AE15                                           Constitution Avenue NW., Washington,                  proposed by the Agencies. The
                                                                                                      DC 20551.                                             commenters also made additional
                                              FEDERAL RESERVE SYSTEM                                     FDIC: Patience R. Singleton, Senior                suggestions not related to the proposal.
                                                                                                      Policy Analyst, Supervisory Policy                    These comments are explained in more
                                              12 CFR Part 228                                         Branch, Division of Depositor and                     detail in the sections they relate to. As
                                              [Docket No. R–1574]                                     Consumer Protection, (202) 898–6859;                  explained below, the Agencies are
                                                                                                      Sharon B. Vejvoda, Senior Examination                 finalizing the amendments as proposed.
                                              RIN 7100–AE84
                                                                                                      Specialist, Examination Branch,
                                                                                                      Division of Depositor and Consumer                    II. Amendments To Conform the CRA
                                              FEDERAL DEPOSIT INSURANCE                                                                                     Regulations to Recent Revisions to the
                                              CORPORATION                                             Protection, (202) 898–3881; Richard M.
                                                                                                      Schwartz, Counsel, Legal Division, (202)              Bureau’s Regulation C
                                              12 CFR Part 345                                         898–7424; or Sherry Ann Betancourt,                   Definition of ‘‘Home Mortgage Loan’’
                                                                                                      Counsel, Legal Division, (202) 898–                     The CRA regulations specify the type
                                              RIN 3064–AE58                                           6560, Federal Deposit Insurance                       of lending and other activities that
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                                                                                                      Corporation, 550 17th Street NW.,                     examiners evaluate to assess a financial
                                              Community Reinvestment Act
                                                                                                      Washington, DC 20429.                                 institution’s CRA performance. The
                                              Regulations
                                                                                                      SUPPLEMENTARY INFORMATION:                            regulations provide several categories of
                                              AGENCY:  Office of the Comptroller of the
                                              Currency, Treasury; Board of Governors                  I. Background
                                                                                                                                                              1 82FR 43910 (Sept. 20, 2017).
                                              of the Federal Reserve System; and                        The OCC, the Board, and the FDIC                      2 See80 FR 66127 (Oct. 28, 2015), as amended by
                                              Federal Deposit Insurance Corporation.                  implement the CRA (12 U.S.C. 2901 et                  82 FR 19142 (Aug. 24, 2017).



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Document Created: 2017-11-22 23:33:44
Document Modified: 2017-11-22 23:33:44
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 November 24, 2017. However, FCIC will accept written comments on this final rule until close of business January 23, 2018. 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 Citation82 FR 55723 
RIN Number0563-AC56
CFR Citation7 CFR 402
7 CFR 407
7 CFR 457
CFR AssociatedCrop Insurance and Reporting and Recordkeeping Requirements

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