83_FR_40812 83 FR 40653 - Seed Cotton Changes to Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) Programs

83 FR 40653 - Seed Cotton Changes to Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) Programs

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

Federal Register Volume 83, Issue 159 (August 16, 2018)

Page Range40653-40659
FR Document2018-17681

This rule revises the eligibility requirements, enrollment procedures, and payment calculation for ARC and PLC required to conform with the Bipartisan Budget Act of 2018 (BBA). BBA amends the Agricultural Act of 2014 (the 2014 Farm Bill) to add seed cotton as a covered commodity and remove generic base acres from ARC and PLC. This rule also amends provisions to include seed cotton yields, allocation of generic base acres, election of ARC-County Option (ARC-CO) or PLC for seed cotton base acres, and enrollment for 2018. This rule also makes some minor, clarifying changes to the administration section.

Federal Register, Volume 83 Issue 159 (Thursday, August 16, 2018)
[Federal Register Volume 83, Number 159 (Thursday, August 16, 2018)]
[Rules and Regulations]
[Pages 40653-40659]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17681]



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Rules and Regulations
                                                Federal Register
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Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / 
Rules and Regulations

[[Page 40653]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1412

RIN 0560-AI40


Seed Cotton Changes to Agriculture Risk Coverage (ARC), Price 
Loss Coverage (PLC) Programs

AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Final rule.

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

SUMMARY: This rule revises the eligibility requirements, enrollment 
procedures, and payment calculation for ARC and PLC required to conform 
with the Bipartisan Budget Act of 2018 (BBA). BBA amends the 
Agricultural Act of 2014 (the 2014 Farm Bill) to add seed cotton as a 
covered commodity and remove generic base acres from ARC and PLC. This 
rule also amends provisions to include seed cotton yields, allocation 
of generic base acres, election of ARC-County Option (ARC-CO) or PLC 
for seed cotton base acres, and enrollment for 2018. This rule also 
makes some minor, clarifying changes to the administration section.

DATES: 
    Effective Date: August 16, 2018.
    2018 ARC and PLC signup deadline: September 28, 2018.

FOR FURTHER INFORMATION CONTACT: Brent Orr; telephone, (202) 720-7641. 
Persons with disabilities who require alternative means for 
communication should contact the USDA Target Center at (202) 720-2600 
(voice).

SUPPLEMENTARY INFORMATION: 

Background

    The ARC Program is an income support program which provides 
payments on historical base acres when actual crop revenue for a 
covered commodity declines below a specified guarantee level. The PLC 
Program provides payments on historical base acres when the price for a 
covered commodity declines below its ``reference price.'' Eligible 
producers were required to make a decision to participate in either ARC 
or PLC, but not both, for the 2014 through 2018 crop years. ARC and PLC 
are Commodity Credit Corporation (CCC) programs administered by the 
Farm Service Agency (FSA).
    The regulation in 7 CFR part 1412 as implemented in 2014 for the 
ARC and PLC Programs specified covered commodities authorized by the 
2014 Farm Bill (Pub L. 113-79; 7 U.S.C. 9011-9019). BBA amends the 2014 
Farm Bill by adding seed cotton as a ``covered commodity'' for the 2018 
crop year. Since seed cotton will be included in the existing ARC or 
PLC programs, FSA must establish certain program values including 
yields and prices to implement the changes.
    Upland cotton, which had previously been a covered commodity under 
prior FSA administered CCC commodity programs, was no longer a covered 
commodity beginning with the 2014 Farm Bill; therefore, producers with 
historical upland cotton base acres were ineligible for assistance 
under ARC and PLC. Base acres of upland cotton under the Food, 
Conservation, and Energy Act of 2008 (2008 Farm Bill) in effect as of 
September 30, 2013, subject to any adjustment or reduction, became 
``generic base acres'' beginning with the 2014 crop year. Under terms 
of BBA, if a covered commodity, including seed cotton, was not planted 
or prevented from being planted on the farm during the 2009 through 
2016 years, the generic base acres become unassigned base acres, which 
are not eligible for any ARC or PLC benefits. Generic base acres no 
longer exist beginning with the 2018 crop year.

Seed Cotton Changes; PLC Yield; Generic Base Acres Allocation

    In order for an owner to take advantage of the BBA provisions for 
seed cotton, BBA specifies that a covered commodity, including seed 
cotton, must have been planted or prevented from being planted on the 
farm during the 2009 through 2016 years. If the farm had land enrolled 
under a Conservation Reserve Program contract and base acres were 
reduced as a result of that enrollment during the 2009 through 2016 
years, the owner of that farm may allocate generic base acres to seed 
cotton base acres or other base acres based on the provisions of BBA.
    PLC requires a reference price for all covered commodities; BBA has 
established a reference price for seed cotton of $0.367 per pound.
    Determining a covered commodity yield is a necessary component to 
PLC. As amended, the 2014 Farm Bill and 7 CFR 1412.31 provide that the 
farm PLC yield for seed cotton will be initially set at 2.4 times the 
payment yield for upland cotton established under the 2008 Farm Bill (7 
U.S.C. 8714(e)(3)). As amended, the 2014 Farm Bill and 7 CFR 1412.33, 
specify that any current owner of the farm has a one-time option to 
update the PLC yield. Any current owner of a farm may update the PLC 
yield, which was the counter-cyclical payment yield under the former 
Direct and Counter-cyclical Program, by certifying pounds of upland 
cotton lint in years in which upland cotton was planted on base acres 
from 2008 through 2012, which will then be averaged. Years in which the 
producer had no planted acres are not included in the simple average 
computation. The average yield for 2008 through 2012, excluding years 
in which no upland cotton was grown, will be multiplied by 90 percent, 
and the result will be multiplied by 2.4 to obtain a new PLC payment 
yield of pounds of seed cotton.
    In addition to updating the payment yield, current owners of a farm 
with generic base acres will be allowed to determine how those generic 
base acres are allocated as base acres of other covered commodities on 
the farm. As specified in BBA and in Sec.  1412.25, there are three 
options as follows; the producers may choose only one for allocating 
generic base acres on the farm:
    1. Multiply the number of generic base acres in crop year 2018 by 
80 percent to determine a total for seed cotton base acres. The 
remaining 20 percent will become unassigned base acres.
    2. If a farm has history of planting upland cotton from 2009 
through 2012 and the simple average of planted and prevented from being 
planted upland cotton during that time period is greater than 80 
percent of the generic base acre total in crop year 2018, generic base 
acres may be allocated to seed cotton

[[Page 40654]]

base acres based on that simple average, not to exceed 100 percent of 
the generic base acres on the farm. If the simple average is less than 
100 percent of the number of generic base acres, the residual generic 
base acres will become unassigned base acres.
    3. Allocate the generic base acres on the farm to the 4-year simple 
average of the planted and prevented from planted covered commodities 
on the farm during the 2009 through 2012 crop years. The allocation is 
based on the share of each covered commodity in the total of covered 
commodities planted on the farm multiplied by the number of generic 
base acres on the farm. Years in which there were no covered 
commodities planted on generic acres will be used in the calculation of 
the simple average. Using this option eliminates unassigned base acres 
on the farm. For example:
    a. A farm has 100 cropland acres, 100 generic base acres, and had 
the following planted acres:
    [cir] For 2009, 25 acres of upland cotton and 75 acres of corn;
    [cir] For 2010, 75 acres of upland cotton and 25 acres of corn;
    [cir] For 2011, no acres of covered commodities; and
    [cir] For 2012, 100 acres of upland cotton.
    b. The simple average of the two planted covered commodities is 25 
acres of corn and 50 acres of upland cotton.
    c. Corn, from b. above, is 33.33 percent of the total covered 
commodities planted on the farm (25 divided by 75 equals 33.33 
percent), leaving 66.67 percent planted to upland cotton.
    d. Completing the calculation, 33.33 percent times 100 generic base 
acres equals 33.33 base acres of corn and 66.67 percent multiplied by 
100 generic base acres equals 66.67 base acres of seed cotton.
    If an owner fails to make an allocation of generic base acres and 
has a covered commodity, including seed cotton, that was planted or 
prevented from being planted during the 2009 through 2016 crop years, 
seed cotton base acres will be determined by FSA using the first option 
listed above, as is required by BBA.

PLC and ARC-CO Election, Allocation by FSA and Enrollment

    After the yield update and base acre allocation is completed, all 
current producers on a farm with seed cotton base acres, except for 
farms having a valid ARC-Individual Farm Option (ARC-IC) election, must 
affirmatively and unanimously elect PLC or ARC-CO for seed cotton base 
acres during the single election period following a similar method to 
the previous election process in 2015. As required by BBA, if a 
unanimous election is not made, the producers on the farm will be 
deemed to have elected PLC for the seed cotton base acres for the 2018 
crop year as specified in 7 CFR 1412.74; if the farm is enrolled for 
2018, it will be deemed to have PLC or ARC-CO benefits, as may be 
applicable for any covered commodity (including seed cotton), based on 
any valid or default election on the farm. This provision is specified 
in the 2014 Farm Bill and is not changed by BBA; neither FSA nor CCC 
has any discretion to specify a different policy for farms that do not 
have a valid election made during the election period. During the 
previous election period under the 2014 Farm Bill, the producers on 
farms with generic base acres had the opportunity to make an election 
on all 21 covered commodities or have a default election of PLC apply; 
those elections remain in place and therefore, for the 2018 crop year 
it will only be necessary for all current producers on the farm to make 
an election of PLC or ARC-CO for seed cotton base acres. New elections 
for ARC-IC or for other covered commodities will not be permitted. 
Farms having a valid election of ARC-IC will continue to have ARC-IC as 
the election for the entire farm and for all covered commodities 
including seed cotton that was added as a covered commodity effective 
with the 2018 crop year for the life of the 2014 Farm Bill.
    Implementing these changes is a multi-step process and all steps 
must be completed in order by the appropriate person or legal entity as 
follows:
    1. FSA will make a determination that a covered commodity was 
planted or prevented planted on the farm from 2009 through 2016;
    2. FSA will make a determination of the planting history of covered 
commodities on the farm from 2008 through 2012;
     2008 through 2012 is for calculating a seed cotton PLC 
yield, and
     2009 through 2012 is for determining how generic base 
acres on a farm may be allocated;
    3. A current owner will make an allocation of generic base acres 
according to Sec.  1412.25;
    4. A current owner will make a determination of the PLC yield and 
update of that yield according to 7 CFR 1412.31;
    5. The current producer(s) will make an election of either PLC or 
ARC-CO for seed cotton base acres according to Sec.  1412.71; and
    6. The current producer(s) will enroll the applicable farm for the 
2018 crop year according to Sec.  1412.41.
    As indicated above, the last step in the multi-step process is to 
enroll the farm for 2018. To participate in 2018, all eligible 
producers on farms must enroll following allocation and election to be 
potentially eligible for PLC and ARC benefits. BBA was enacted on 
February 9, 2018, and 2018 PLC and ARC enrollment had already begun. 
However, because BBA changed the conditions of contract participation 
for any farms having generic base acres, all farms having generic base 
acres that previously enrolled for 2018 must go through the process 
outlined above and, after that process is completed, reenroll the farm 
for 2018. Previous 2018 enrollments of farms having generic base acres 
will not be recognized as valid, as the provisions of BBA eliminate 
generic base acres. CCC has no authority to enter into 2018 contracts 
having generic base acres. As was the case with previous crop year 
enrollments, enrollments of portions of a farm are not allowed.

General Eligibility Requirements

    The general eligibility requirements are explained in the ARC or 
PLC contract appendix and in 7 CFR part 1412, except for adding seed 
cotton to the list of covered commodities.

Sharing Payments

    Each eligible producer on a farm will be given the opportunity to 
enroll in ARC or PLC for a payment share determined to be fair and 
equitable as agreed to by all the producers on the farm and approved by 
the county committee. As specified in Sec.  1412.54(b), each producer 
leasing a farm must provide the FSA county committee with a copy of 
their written lease or, in the absence of a written lease, must provide 
a complete written description of the terms and conditions of any oral 
agreement or lease. The general eligibility requirements are explained 
in the ARC or PLC contract appendix and on 7 CFR part 1412, except for 
adding seed cotton to the list of a covered commodity. An owner's or 
landlord's signature, as applicable, affirming a zero share on a 
contract may be accepted as evidence of a cash lease between the owner 
or landlord and tenant, as applicable, as determined by FSA. For farms 
with seed cotton base acres, such signature or signatures, if entered 
on the contract to satisfy the requirement of furnishing a written 
lease, must be entered on the application by September 30, 2018.

[[Page 40655]]

Signup Deadline

    The signup deadline is September 28, 2018 for 2018 ARC and PLC.

Notice and Comment

    In general, the Administrative Procedure Act (5 U.S.C. 553) 
requires that a notice of proposed rulemaking be published in the 
Federal Register and interested persons be given an opportunity to 
participate in the rulemaking through submission of written data, 
views, or arguments with or without opportunity for oral presentation, 
except when the rule involves a matter relating to public property, 
loans, grants, benefits, or contracts. This rule involved matters 
relating to benefits and is therefore being published as a final rule 
without the prior opportunity for comments. In addition, the 
regulations to implement the provisions of Title I and the 
administration of Title I of the 2014 Farm Bill are exempt from the 
notice and comment provisions of 5 U.S.C. 553 and the Paperwork 
Reduction Act (44 U.S.C. chapter 35), as specified in section 
1601(c)(2) of the 2014 Farm Bill.

Executive Orders 12866, 13563, 13771 and 13777

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' established a federal 
policy to alleviate unnecessary regulatory burdens on the American 
people.
    The Office of Management and Budget (OMB) designated this rule as 
economically significant under Executive Order 12866, ``Regulatory 
Planning and Review,'' and therefore, OMB has reviewed this rule. The 
costs and benefits of this rule are summarized below. The full cost 
benefit analysis is available on regulations.gov.
    Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' requires that in order to manage the private costs 
required to comply with Federal regulations that for every new 
significant or economically significant regulation issued, the new 
costs must be offset by the elimination of at least two prior 
regulations. The OMB guidance in M-17-21, dated April 5, 2017, 
specifies that ``transfer rules'' are not covered by Executive Order 
13771. Transfer rules are Federal spending regulatory actions that 
cause only income transfers between taxpayers and program 
beneficiaries. Therefore, this is considered a transfer rule by OMB and 
is not covered by Executive Order 13771.

Cost Benefit Analysis Summary

    Estimates of transfer payments from these ARC and PLC programs are 
based on supply, demand and price conditions and FSA projections for 
the 2018 crop. Based on the projections, the net increase in 2018-crop 
ARC and PLC payments is expected to be around $743 million. Allocation 
of generic base is expected to increase ARC and PLC payments by $1,067 
million ($917 million for seed cotton and $150 million for other 
covered commodities) with offsets of $324 million from eliminating ARC 
and PLC payments on attributed generic base.
    The changes are expected to have marginal impacts on supply, 
demand, and prices because the impacts are spread across the covered 
commodities and acreage shifts are expected to represent a small 
percentage of the respective covered commodity planted acreage. Peanut 
planted acreage is expected to decrease by approximately 15 percent, 
but peanut prices are not expected to change significantly because of 
ample peanut supplies. Peanut acres are expected to shift to other 
commodities such as corn and soybeans with greater market returns 
because eliminating generic base decouples ARC and PLC payments from 
planting decisions. Most seed cotton base acres are expected to elect 
and enroll in PLC.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA, 
Pub. L. 104-121), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule whenever an agency is required by the 
Administrative Procedure Act or any other law to publish a proposed 
rule, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule is not subject to the Regulatory Flexibility Act because 
neither CCC nor FSA are not required by Administrative Procedure Act or 
any law to publish a proposed rule for this rulemaking.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
the FSA regulations for compliance with NEPA (7 CFR part 799). This 
final rule will revise ARC and PLC, as mandated by BBA, to add a single 
commodity, seed cotton. The legislative intent for revising ARC and PLC 
programs is to provide income support to the same group of producers 
that were previously eligible for the earlier and now-discontinued 
programs, direct and counter-cyclical payment program and average crop 
revenue election program. On February 22, 2017, FSA completed an 
environmental review of ARC and PLC. FSA has determined that the 
addition of the commodity to the programs does not alter the 
environmental impacts, as assessed, or the related decisions. 
Therefore, FSA will not prepare a new environmental evaluation, 
assessment, or impact statement for this regulatory action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affect by proposed Federal financial assistance. The 
objectives of the Executive Order are to foster an intergovernmental 
partnership and a strengthened Federalism, by relying on State and 
local processes for State and local government coordination and review 
of proposed Federal Financial assistance and direct Federal 
development. For reasons specified in the final rule related notice to 
7 CFR part 3015, subpart V (48 FR 29115, June 24, 1983), the programs 
and activities within this rule are excluded from the scope of 
Executive Order 12372 which requires intergovernmental consultation 
with State and local officials.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. The rule will not have retroactive effect. 
Before any judicial action may be brought regarding the provisions of 
this rule, the administrative appeal provisions of 7 CFR parts 11 and 
780 must be exhausted.

[[Page 40656]]

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed for compliance with Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' The Executive Order 13175 requires to consult and 
coordinate with tribes on a government-to-government basis on policies 
that have tribal implications, including regulations, legislative 
comments 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.
    FSA has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to our knowledge, have tribal 
implications that required tribal consultation under Executive Order 
13175. If a tribe requests consultation, FSA will work with USDA Office 
of Tribal Relations to ensure meaningful consultation is provided.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State local, and Tribal governments or the 
private sector. Agencies generally must prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

SBREFA

    This rule is a major rule under the SBREFA (Pub. L. 104-121). 
SBREFA normally requires that an agency delay the effective date of a 
major rule for 60 days from the date of publication to allow for 
Congressional review. Section 808 of SBREFA allows an agency to make a 
major regulation effective immediately if the agency finds there is 
good cause to do so. Section 1601(c)(3) of the 2014 Farm Bill provides 
that the authority in Section 808 of SBREFA be used in implementing the 
changes required by Title I of the 2014 Farm Bill, as amended, such as 
for the changes being made by this rule. Consistent with section 
1601(c)(3) of the 2014 Farm Bill, FSA therefore finds that it would be 
contrary to the public interest to delay the effective date of this 
rule because it would delay implementation of seed cotton as a covered 
commodity for ARC and PLC as required by the 2014 Farm Bill, as 
amended. The regulation needs to be effective to provide adequate time 
for producers to update base acres and yields in preparation for 
enrollment for 2018. Therefore, this rule is effective on the September 
30, 2018.

Federal Assistance Programs

    The title and number of the Federal Domestic Assistance Program 
found in the Catalog of Federal Domestic Assistance to which this rule 
applies are:

10.112--Price Loss Coverage
10.113--Agriculture Risk Coverage

Paperwork Reduction Act of 1995

    The regulations in this rule are exempt from the requirements of 
the Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in 
section 1601(c) of the 2014 Farm Bill, which provides that these 
regulations be promulgated and administered without regard to the 
Paperwork Reduction Act.

E-Government Act Compliance

    FSA and CCC are committed to complying with the E-Government Act, 
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.

List of Subjects in 7 CFR Part 1412

    Cotton, Feed grains, Oilseeds, Peanuts, Price support programs, 
Reporting and recordkeeping requirements, Rice, Soil conservation, 
Wheat.

    For the reasons discussed above, CCC amends 7 CFR part 1412 as 
follows:

PART 1412--AGRICULTURE RISK COVERAGE, PRICE LOSS COVERAGE, AND 
COTTON TRANSITION ASSISTANCE PROGRAMS

0
1. The authority citation for part 1412 continues to read as follows:

    Authority: 7 U.S.C. 1508b, 7911-7912, 7916, 8702, 8711-8712, 
8751-8752, and 15 U.S.C. 714b and 714c.

Subpart A--General Provisions

0
 2. Amend Sec.  1412.1 as follows:
0
a. In paragraph (a), remove the words and punctuation ``, generic base 
acres,'' and add the words and punctuation ``seed cotton;'' immediately 
before the words ``pulse crops''.
0
b. Revise paragraph (b).
0
c. In paragraph (c), remove the words ``CTAP application or the'';
0
d. In paragraph (d), remove the words ``CTAP application or''; and
0
e. In paragraph (e), remove the words and punctuation ``and for CTAP, 
assistance under this part will be based on the physical location of 
the farm, as specified in part 718 of this title''.
    The revision reads as follows:


Sec.  1412.1   Applicability, changes in law, interest, application, 
and contract provisions.

* * * * *
    (b) For crop year 2018, this part specifies how:
    (1) Generic base acres are allocated to seed cotton base acres and 
unassigned base acres (generic base acres are not in effect for crop 
year 2018);
    (2) A payment yield for seed cotton base acres is established;
    (3) An election is made on seed cotton base acres; and
    (4) Contracts are enrolled with seed cotton base acres.
* * * * *

0
3. Amend Sec.  1412.2 as follows:
0
a. In paragraph (a), remove the words and punctuation ``, PLC, and 
CTAP'' and add the words ``and PLC'' in their place; and
0
b. Revise paragraphs (e) and (f).
    The revisions read as follows:


Sec.  1412.2   Administration.

* * * * *
    (e) The Deputy Administrator has the authority to permit State and 
county committees to waive or modify any non-statutory deadline 
specified in this part.
    (f) Items of general applicability to program participants, 
including, but not

[[Page 40657]]

limited to, application periods, application deadlines, internal 
operating guidelines issued to State and county offices, prices, 
yields, and payment factors established for ARC or PLC, are not subject 
to appeal in accordance with part 780 of this title.

0
4. Amend Sec.  1412.3 as follows:
0
a. Remove the definitions of ``2014 farm structure'' and 
``Application'';
0
b. In the definition of ``Base acres'', revise the last sentence;
0
c. In the definition of ``Contract period'', remove the words ``or 
application'' and words and punctuation ``or ``application'' '', and 
remove the word ``the'' immediately before the words ``each program 
year'';
0
d. Add the definition of ``Counter-cyclical payment yield'' in 
alphabetical order;
0
e. In the definition of ``Covered commodity'', add the words and 
punctuation ``seed cotton,'' immediately before the words ``pulse 
crops'';
0
f. Remove the definition of ``Eligible subsequently planted crop 
acreage'';
0
g. In the definition of ``Generic base acres'', remove the last two 
sentences and add in their place one new sentence;
0
h. In the definition of ``Initial crop'', remove the words ``or 
cotton'';
0
i. In paragraph (3) of the definition of ``Marketing year'', add the 
words and punctuation ``, seed cotton,'' immediately after the word 
``Peanuts'';
0
j. In the definition of ``Payment acres'', remove paragraph (3);
0
k. Revise the definition of ``Payment yield'';
0
l. Amend the definition of ``Reference price'' as follows:
0
i. In paragraph (13) remove the word ``and'';
0
ii. In paragraph (14) remove the punctuation ``.'' and add in its place 
the words and punctuation ``; and''; and
0
iii. Add new paragraph (15);
0
m. Add the definition of ``Seed cotton'' in alphabetical order;
0
n. In the definition of ``Supportive and necessary contractual 
documents'', remove the words ``or CTAP application''; and
0
o. Add the definition of ``Unassigned base acres'' in alphabetical 
order.
    The revisions and additions read as follows:


Sec.  1412.3   Definitions.

* * * * *
    Base acres * * * The term ``base acres'' includes any unassigned 
base acres.
* * * * *
    Counter-cyclical payment yield means the farm's upland cotton yield 
as specified in the regulations for 7 CFR part 1412 that were in effect 
as of September 30, 2013.
* * * * *
    Generic base acres * * * For 2018, generic base acres are subject 
to allocation according to Sec.  1412.25.
* * * * *
    Payment yield means for a farm for a covered commodity, the yield 
established under subpart C of this part.
* * * * *
    Reference price * * *
    (15) Seed cotton, $0.367 per pound.
* * * * *
    Seed cotton means unginned upland cotton that includes both lint 
and seed.
* * * * *
    Unassigned base acres means the number of acres derived from 
generic base acres where no ARC or PLC payments are generated or 
earned.
* * * * *

Subpart B--Establishment of Base Acres for a Farm for Covered 
Commodities

0
5. Amend Sec.  1412.23 as follows:
0
a. Revise the section heading; and
0
b. In paragraphs (a), (b), and (c), remove the words ``and generic base 
acres'' in each place they appear.
    The revision reads as follows:


Sec.  1412.23   Base acres, and Conservation Reserve Program.

* * * * *

0
6. Amend Sec.  1412.24 as follows:
0
a. Revise the section heading;
0
b. In paragraph (a)(1), remove the words and punctuation ``and generic 
base acres (which are equal to upland cotton base acres used for 
CTAP)'';
0
c. Revise paragraph (b);
0
d. In paragraph (d)(1), remove the words and punctuation ``, including 
generic base acres (and the equal amount of upland cotton base 
acres),''; and
0
e. In paragraph (f), remove the words and punctuation ``and generic 
base acres (resulting in an equal amount of upland cotton base 
acres)''.
    The revisions read as follows:


Sec.  1412.24   Limitation of total base acres on a farm.

* * * * *
    (b) The Deputy Administrator will give the owner of the farm the 
opportunity to select the base acres against which any reduction 
required in this section will be made. Absent the owner selecting the 
base acres for reduction, CCC will apply a pro-rata reduction against 
the base acres before computing and issuing any payments for the 
program year when a reduction becomes necessary.
* * * * *

0
7. Revise Sec.  1412.25 to read as follows:


Sec.  1412.25   Allocation of generic base acres on a farm and updating 
of records.

    (a) Any or all of the current owner(s) of a farm with generic base 
acres adjusted as of February 9, 2018, will have a one-time opportunity 
in an allocation period as announced by FSA, if a covered commodity 
including upland cotton was planted or prevented from being planted 
during the 2009 through 2016 crop years, to:
    (1) Allocate the farm's generic base acres to seed cotton base 
acres in a quantity equal to the greater of:
    (i) 80 percent of the generic base acres on the farm; or
    (ii) The average number of upland cotton acres planted and 
prevented from being planted on the farm during the 2009 through 2012 
crop years, not to exceed the total generic base acres on the farm; or
    (2) Allocate base acres for covered commodities, including seed 
cotton, by applying paragraph (e) of this section.
    (b) Under no circumstances will the allocation of generic base 
acres on a farm as specified in paragraph (a) of this section result in 
any increase in total base acres on a farm. Additionally, if any 
current owner submits a written statement that conflicts with the 
allocation request or expresses written disagreement with the 
allocation filed according to paragraph (a) of this section, no 
allocation will be approved for the farm unless all the current owners 
of the farm provide FSA with written evidence of the dispute resolution 
during the allocation period.
    (c) FSA will provide the farm operator and owners of record with a 
summary of all covered commodities P&CP acres and subsequently planted 
crop acreage for the 2008 through 2012 crop years (as reported to FSA 
on acreage reports filed with FSA in each of those years). Acreage not 
reported to FSA by producers will not be included in the summary. The 
summary of records specified in paragraph (c) of this section is 
intended to assist current owners of farms with the one-time 
opportunity for generic base acre allocation as provided in this 
section. Any current owner of a farm may also at any time visit the FSA 
county office and request to obtain a copy of the summary referenced in 
paragraph (c) of this section.
    (d) Current owners will be provided a one-time opportunity to 
update the records identified in paragraph (c) of this section during 
the allocation period, provided that there are crop

[[Page 40658]]

insurance records (or other verifiable documentation available to 
support those requested updates). In the event that an update to a 
farm's P&CP acres of a covered commodity for 2009 through 2012 causes 
any payment under another FSA or CCC program to become unearned, the 
overpayment must be refunded to FSA or CCC in accordance with the rules 
for that program and the FSA or CCC regulations governing overpayment 
(7 CFR parts 718 and 1403).
    (e) After an update as specified in paragraph (d) of this section, 
the owner may allocate the farm's generic base acres during the 
allocation period based on a proration of each covered commodity's P&CP 
acres or subsequently planted crop acreage in crop years 2009 through 
2012 to the total P&CP acres or subsequently planted crop acreage of 
all covered commodities during that time.
    (f) Current owners can allocate generic base acres at any time 
during the allocation period without receiving or requesting the 
summary records, and, therefore, failure to receive a summary record 
from FSA is not grounds for appeal or extension of the allocation 
period.
    (g) The option to allocate generic base acres is an ``all or 
nothing'' decision for the farm. Generic base acres will not be 
retained, partially or in whole. A decision by any current owner to 
allocate generic base acres on a farm in accordance with this section 
is final and binding if made according to this section during the 
allocation period unless that allocation is withdrawn in writing by 
that current owner or another current owner. If another current owner 
subsequently files a different allocation request in whatever time 
remains in the stated allocation period or if there are conflicting 
allocation requests of current owners in the allocation period, FSA 
will not make the allocation unless the conflict is resolved via 
written agreement between the current owners who filed the conflicting 
requests. In the event that a resolution is not presented, the 
provisions of paragraph (h) of this section will take effect. In the 
case of submitting evidence of resolution, the written agreement must 
be filed with FSA in the allocation period. Any and all updates and 
allocation requests mentioned in this section are subject to review and 
approval or disapproval by FSA for CCC.
    (h) In the event that an owner fails to make an allocation 
according to this part and the farm has met the planting requirement in 
paragraph (a) of this section, the farm will receive an allocation of 
seed cotton base acres in accordance with paragraph (a)(1)(i) of this 
section.

Subpart C--Establishment of Price Loss Coverage Yields and 
Submitting Production

0
8. Amend Sec.  1412.31 as follows:
0
a. In paragraph (a), remove the word ``The'' and add the words ``Except 
for seed cotton'' in its place and remove ``Sec.  1412.33 or Sec.  
1412.34, whichever is applicable'' and add ``Sec.  1412.34'' in their 
place.
0
b. Redesignate paragraph (b) as paragraph (c) and add new paragraph 
(b).
0
c. In newly redesignated paragraph (c), remove the words and 
punctuation ``or for which a covered commodity is planted on generic 
base acres,''.


Sec.  1412.31   PLC yields for covered commodities.

* * * * *
    (b) The PLC yield for seed cotton on the farm is equal to the 
counter-cyclical payment yield established for upland cotton on the 
farm as in effect September 30, 2013, times 2.4, unless the PLC yield 
is updated as specified in Sec.  1421.33.
* * * * *

0
9. Amend Sec.  1412.32 as follows:
0
a. Revise the section heading;
0
b. In paragraph (a), remove the words and punctuation ``(except generic 
base acres),''; and
0
c. In paragraph (e), remove the reference to ``Sec.  1412.35'' and add 
``Sec.  1412.36'' in its place.
    The revision reads as follows:


Sec.  1412.32   Updating PLC yield for all covered commodities except 
seed cotton.

* * * * *


Sec.  Sec.  1412.33 through 1412.35  [Redesignated as Sec. Sec.  
1412.34 through 1412.36]

0
10. Redesignate Sec. Sec.  1412.33 through 1412.35 as Sec. Sec.  
1412.34 through 1412.36.

0
11. Add new Sec.  1412.33 to read as follows:


Sec.  1412.33   Updating PLC yield for seed cotton.

    (a) For a farm that has seed cotton base acres as adjusted, in 
excess of zero acres, a current owner of the farm has a one-time 
opportunity in a specified period, as announced by FSA, to update the 
PLC yield equal to 90 percent of the upland cotton's 2008 through 2012 
average yield per planted acre, excluding from the average any year 
that no acreage was planted to upland cotton, times 2.4. If the yield 
per planted acre in any of the years 2008 through 2012 is less than 75 
percent of the average of the county yield, then 75 percent of the 
average of the 2008 through 2012 county yields will be substituted for 
that year.
    (b) The current owner of the farm may retain the PLC yield or 
update the PLC yield.
    (c) PLC yields are exclusively used for PLC. However, any owner of 
a farm can update the seed cotton PLC yield as specified in paragraph 
(a) of this section, regardless of program election, enrollment, or 
participation.
    (d) A decision by any current owner of a farm to update the seed 
cotton PLC yield as specified in this section is final and binding 
unless that decision to update the yield is withdrawn by that current 
owner or a different yield update is made by that current owner or 
another current owner. If that current owner or another current owner 
requests a different PLC yield update for the covered commodity during 
the yield update period specified in paragraph (a) of this section, 
that update will become final.
    (e) All PLC yield updates are subject to review and approval by FSA 
as specified in Sec.  1412.36. FSA's decision to issue payments based 
on the PLC yield updated by an owner is subject to verification and 
spot check by FSA at any time.
    (f) Yield updates in this section will be permitted using the 
current owner's certification of yield. The certification is subject to 
spot check or verification by FSA at any time. If selected for spot 
check or verification, the owner must submit evidence specified in 
Sec.  1412.35 to support the certified yield.


Sec.  1412.34   [Amended]

0
12. In newly redesignated Sec.  1412.34(b)(2)(i) and (c), remove each 
cross reference to ``Sec.  1412.34'' and add ``Sec.  1412.35'' in their 
place.

Subpart D--ARC and PLC Contract Terms and Enrollment Provisions for 
Covered Commodities

0
13. Amend Sec.  1412.41 as follows:
0
a. Revise paragraph (a)(2);
0
b. In paragraph (b), remove the words and punctuation ``June 1 of the 
applicable contract year,'' and add in their place ``September 30, 
2018,'';
0
c. In paragraph (e), remove ``2015 or subsequent'' and add ``2018'' in 
its place, and remove ``2015 and subsequent crop year''; and
0
d. Add paragraph (f).
    The revision and addition read as follows:


Sec.  1412.41   ARC or PLC program contract.

    (a) * * *

[[Page 40659]]

    (2) For program year 2018, the enrollment period will end on 
September 30, 2018.
    (i) Eligible producers must execute and submit an ARC or PLC 
program contract not later than September 30, 2018, for fiscal year 
2018 contracts.
    (ii) Except as stated in this section, enrollment is not allowed 
after September 30 of the fiscal year in which the ARC or PLC payments 
are requested. FSA will not process offers of enrollment for a contract 
period after the contract period has ended. This is not a compliance 
provision but a rule of general applicability and will apply to every 
offer to contract in each contract year.
* * * * *
    (f) Any 2018 contract for a farm that includes generic base acres, 
whether or not that contract was approved on behalf of CCC, is invalid 
and withdrawn. Eligible producers on farms that had generic base acres 
must enroll in accordance with paragraph (a) of this section after 
allocation has been completed. Any contract executed before allocation 
in Sec.  1412.25 will not be recognized by CCC for any purpose.


Sec.  Sec.  1412.44 and 1412.45   [Removed and Reserved]

0
14. Remove and reserve Sec. Sec.  1412.44 and 1412.45.


Sec.  1412.46   [Amended]

0
15. In Sec.  1412.46 (f), remove the last sentence.

Subpart E--Financial Considerations Including Sharing Payments


Sec.  1412.51   [Amended]

0
16. Amend Sec.  1412.51 as follows:
0
a. Remove paragraph (b);
0
b. Redesignate paragraphs (c) through (e) as (b) through (d), and;
0
c. In newly redesignated paragraph (d), remove the words ``including 
any generic base acres''.


Sec.  1412.52   [Amended]

0
17. In Sec.  1412.52(a), remove the words ``each of the 2014 through'' 
and add the word ``the'' in their place.

0
18. Amend Sec.  1412.53 as follows:
0
a. In paragraph (a) introductory text, remove ``each of the 2014 
through'' and add ``the'' in their place;
0
b. In paragraph (b) introductory text, remove ``each of the 2014 
through'' and add ``the'' in their place; and
0
c. Revise paragraph (e).
    The revision reads as follows:


Sec.  1412.53   ARC payment provisions.

* * * * *
    (e) FSA has determined the irrigated and non-irrigated counties and 
crops for the 2018 program year.
* * * * *


Sec.  1412.54   [Amended]

0
19. Amend Sec.  1412.54 as follows;
0
a. In paragraph (a), remove the words ``apply for CTAP as specified in 
subpart H of this part and annually'';
0
b. In paragraph (b), remove the words ``applies for CTAP or elects 
and'';
0
c. In paragraph (c), remove the words ``CTAP payment or'';
0
d. In paragraph (d)(4), remove the words ``ARC, PLC, or CTAP'' and add 
the words ``ARC or PLC'' in their place both times they appear;
0
e. In paragraph (f) introductory text, remove the first sentence;
0
f. In paragraph (f)(2), remove the words ``of this part''; and
0
f. In paragraph (h), remove the words ``a CTAP application or'' and add 
the word ``an'' in their place, and remove the words and punctuation 
``CTAP application, or'' in both places.


Sec.  1412.55   [Amended]

0
20. In Sec.  1412.55(a)(1), remove the words and punctuations ``ARC, 
PLC, or CTAP'', and add ``ARC or PLC'' in their place.

Subpart F--Violations and Compliance Provisions


Sec.  1412.61   [Amended]

0
21. In Sec.  1412.61, remove ``or CTAP application, as applicable'' and 
remove ``or CTAP application''.


Sec.  1412.63   [Amended]

0
22. In Sec.  1412.63, remove the words ``or CTAP application''.


Sec.  1412.64   [Amended]

0
23. Amend Sec.  1412.64 as follows:
0
a. In paragraph (a), remove ``ARC, PLC, and CTAP'' and add ``ARC or 
PLC'' in its place, and remove the words ``or application'';
0
b. In paragraph (b) introductory text, remove ``ARC, PLC, or CTAP'' and 
add ``ARC or PLC'' in its place; and
0
c. In paragraph (b)(3), remove the words and punctuation ``, CTAP 
application,''.


Sec.  1412.66   [Amended]

0
24. In Sec.  1412.66(a), remove ``ARC, PLC, and CTAP'' and add ``ARC or 
PLC'' in their place.


Sec.  1412.69   [Amended]

0
25. In Sec.  1412.69, remove ``CTAP participants and enrolled'' and add 
``Enrolled'' in its place.

Subpart G--ARC and PLC Election

0
26. Amend Sec.  1412.71 as follows:
0
a. Remove paragraph (c);
0
b. Redesignate paragraph (d) as paragraph (c);
0
c. In newly redesignated paragraph (c), remove the first sentence, 
remove ``The'' and add ``In general, a'' in its place; and
0
d. Add new paragraph (d).
    The addition reads as follows:


Sec.  1412.71   Election of ARC or PLC.

* * * * *
    (d) Beginning with the 2018 crop year, a valid election for seed 
cotton is required for all current producers on a farm where seed 
cotton is added as a covered commodity, as specified in Sec.  1412.25, 
unless the farm contains a valid ARC-IC election. A valid ARC-IC 
election on a farm is for all covered commodities and will include the 
added covered commodity of seed cotton. This election is for seed 
cotton only. All other covered commodities on a farm with seed cotton 
base acres have an election on file and will be bound by that prior 
election. The election by all current producers is to obtain:
    (1) PLC for seed cotton base acres, or
    (2) ARC-CO for seed cotton base acres.
* * * * *

0
27. In Sec.  1412.74, add paragraph (c) to read as follows:


Sec.  1412.74   Failure to make election.

* * * * *
    (c) If a valid election is not made for seed cotton base acres on a 
farm, the producers of seed cotton base acres on the farm are deemed to 
have elected PLC for acres allocated on the farm to seed cotton for the 
2018 crop year.

Steven Peterson,
Acting Administrator, Farm Service Agency.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2018-17681 Filed 8-15-18; 8:45 am]
 BILLING CODE 3410-05-P



                                                                                                                                                                                               40653

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 83, No. 159

                                                                                                                                                            Thursday, August 16, 2018



                                              This section of the FEDERAL REGISTER                    acres when the price for a covered                    that farm may allocate generic base
                                              contains regulatory documents having general            commodity declines below its                          acres to seed cotton base acres or other
                                              applicability and legal effect, most of which           ‘‘reference price.’’ Eligible producers               base acres based on the provisions of
                                              are keyed to and codified in the Code of                were required to make a decision to                   BBA.
                                              Federal Regulations, which is published under           participate in either ARC or PLC, but                    PLC requires a reference price for all
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                      not both, for the 2014 through 2018 crop              covered commodities; BBA has
                                              The Code of Federal Regulations is sold by              years. ARC and PLC are Commodity                      established a reference price for seed
                                              the Superintendent of Documents.                        Credit Corporation (CCC) programs                     cotton of $0.367 per pound.
                                                                                                      administered by the Farm Service                         Determining a covered commodity
                                                                                                      Agency (FSA).                                         yield is a necessary component to PLC.
                                              DEPARTMENT OF AGRICULTURE                                  The regulation in 7 CFR part 1412 as               As amended, the 2014 Farm Bill and 7
                                                                                                      implemented in 2014 for the ARC and                   CFR 1412.31 provide that the farm PLC
                                              Commodity Credit Corporation                            PLC Programs specified covered                        yield for seed cotton will be initially set
                                                                                                      commodities authorized by the 2014                    at 2.4 times the payment yield for
                                              7 CFR Part 1412                                         Farm Bill (Pub L. 113–79; 7 U.S.C.                    upland cotton established under the
                                              RIN 0560–AI40                                           9011–9019). BBA amends the 2014                       2008 Farm Bill (7 U.S.C. 8714(e)(3)). As
                                                                                                      Farm Bill by adding seed cotton as a                  amended, the 2014 Farm Bill and 7 CFR
                                              Seed Cotton Changes to Agriculture                      ‘‘covered commodity’’ for the 2018 crop               1412.33, specify that any current owner
                                              Risk Coverage (ARC), Price Loss                         year. Since seed cotton will be included              of the farm has a one-time option to
                                              Coverage (PLC) Programs                                 in the existing ARC or PLC programs,                  update the PLC yield. Any current
                                                                                                      FSA must establish certain program                    owner of a farm may update the PLC
                                              AGENCY:  Farm Service Agency and                                                                              yield, which was the counter-cyclical
                                                                                                      values including yields and prices to
                                              Commodity Credit Corporation, USDA.                                                                           payment yield under the former Direct
                                                                                                      implement the changes.
                                              ACTION: Final rule.                                        Upland cotton, which had previously                and Counter-cyclical Program, by
                                                                                                      been a covered commodity under prior                  certifying pounds of upland cotton lint
                                              SUMMARY:    This rule revises the
                                                                                                      FSA administered CCC commodity                        in years in which upland cotton was
                                              eligibility requirements, enrollment
                                                                                                      programs, was no longer a covered                     planted on base acres from 2008 through
                                              procedures, and payment calculation for
                                                                                                      commodity beginning with the 2014                     2012, which will then be averaged.
                                              ARC and PLC required to conform with
                                                                                                      Farm Bill; therefore, producers with                  Years in which the producer had no
                                              the Bipartisan Budget Act of 2018
                                                                                                      historical upland cotton base acres were              planted acres are not included in the
                                              (BBA). BBA amends the Agricultural
                                                                                                      ineligible for assistance under ARC and               simple average computation. The
                                              Act of 2014 (the 2014 Farm Bill) to add
                                                                                                      PLC. Base acres of upland cotton under                average yield for 2008 through 2012,
                                              seed cotton as a covered commodity and
                                                                                                      the Food, Conservation, and Energy Act                excluding years in which no upland
                                              remove generic base acres from ARC
                                                                                                      of 2008 (2008 Farm Bill) in effect as of              cotton was grown, will be multiplied by
                                              and PLC. This rule also amends
                                                                                                      September 30, 2013, subject to any                    90 percent, and the result will be
                                              provisions to include seed cotton yields,
                                                                                                      adjustment or reduction, became                       multiplied by 2.4 to obtain a new PLC
                                              allocation of generic base acres, election
                                                                                                      ‘‘generic base acres’’ beginning with the             payment yield of pounds of seed cotton.
                                              of ARC-County Option (ARC–CO) or
                                                                                                      2014 crop year. Under terms of BBA, if                   In addition to updating the payment
                                              PLC for seed cotton base acres, and
                                                                                                      a covered commodity, including seed                   yield, current owners of a farm with
                                              enrollment for 2018. This rule also
                                                                                                      cotton, was not planted or prevented                  generic base acres will be allowed to
                                              makes some minor, clarifying changes to
                                                                                                      from being planted on the farm during                 determine how those generic base acres
                                              the administration section.
                                                                                                      the 2009 through 2016 years, the generic              are allocated as base acres of other
                                              DATES:                                                  base acres become unassigned base                     covered commodities on the farm. As
                                                 Effective Date: August 16, 2018.                     acres, which are not eligible for any                 specified in BBA and in § 1412.25, there
                                                 2018 ARC and PLC signup deadline:                    ARC or PLC benefits. Generic base acres               are three options as follows; the
                                              September 28, 2018.                                     no longer exist beginning with the 2018               producers may choose only one for
                                              FOR FURTHER INFORMATION CONTACT:                        crop year.                                            allocating generic base acres on the
                                              Brent Orr; telephone, (202) 720–7641.                                                                         farm:
                                              Persons with disabilities who require                   Seed Cotton Changes; PLC Yield;                          1. Multiply the number of generic
                                              alternative means for communication                     Generic Base Acres Allocation                         base acres in crop year 2018 by 80
                                              should contact the USDA Target Center                      In order for an owner to take                      percent to determine a total for seed
                                              at (202) 720–2600 (voice).                              advantage of the BBA provisions for                   cotton base acres. The remaining 20
                                              SUPPLEMENTARY INFORMATION:                              seed cotton, BBA specifies that a                     percent will become unassigned base
                                                                                                      covered commodity, including seed                     acres.
                                              Background                                              cotton, must have been planted or                        2. If a farm has history of planting
sradovich on DSK3GMQ082PROD with RULES




                                                The ARC Program is an income                          prevented from being planted on the                   upland cotton from 2009 through 2012
                                              support program which provides                          farm during the 2009 through 2016                     and the simple average of planted and
                                              payments on historical base acres when                  years. If the farm had land enrolled                  prevented from being planted upland
                                              actual crop revenue for a covered                       under a Conservation Reserve Program                  cotton during that time period is greater
                                              commodity declines below a specified                    contract and base acres were reduced as               than 80 percent of the generic base acre
                                              guarantee level. The PLC Program                        a result of that enrollment during the                total in crop year 2018, generic base
                                              provides payments on historical base                    2009 through 2016 years, the owner of                 acres may be allocated to seed cotton


                                         VerDate Sep<11>2014   15:45 Aug 15, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\16AUR1.SGM   16AUR1


                                              40654            Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations

                                              base acres based on that simple average,                single election period following a                       6. The current producer(s) will enroll
                                              not to exceed 100 percent of the generic                similar method to the previous election               the applicable farm for the 2018 crop
                                              base acres on the farm. If the simple                   process in 2015. As required by BBA, if               year according to § 1412.41.
                                              average is less than 100 percent of the                 a unanimous election is not made, the                    As indicated above, the last step in
                                              number of generic base acres, the                       producers on the farm will be deemed                  the multi-step process is to enroll the
                                              residual generic base acres will become                 to have elected PLC for the seed cotton               farm for 2018. To participate in 2018, all
                                              unassigned base acres.                                  base acres for the 2018 crop year as                  eligible producers on farms must enroll
                                                 3. Allocate the generic base acres on                specified in 7 CFR 1412.74; if the farm               following allocation and election to be
                                              the farm to the 4-year simple average of                is enrolled for 2018, it will be deemed               potentially eligible for PLC and ARC
                                              the planted and prevented from planted                  to have PLC or ARC–CO benefits, as                    benefits. BBA was enacted on February
                                              covered commodities on the farm                         may be applicable for any covered                     9, 2018, and 2018 PLC and ARC
                                              during the 2009 through 2012 crop                       commodity (including seed cotton),                    enrollment had already begun.
                                              years. The allocation is based on the                   based on any valid or default election                However, because BBA changed the
                                              share of each covered commodity in the                  on the farm. This provision is specified              conditions of contract participation for
                                              total of covered commodities planted on                 in the 2014 Farm Bill and is not                      any farms having generic base acres, all
                                              the farm multiplied by the number of                    changed by BBA; neither FSA nor CCC                   farms having generic base acres that
                                              generic base acres on the farm. Years in                has any discretion to specify a different             previously enrolled for 2018 must go
                                              which there were no covered                             policy for farms that do not have a valid             through the process outlined above and,
                                              commodities planted on generic acres                    election made during the election                     after that process is completed, reenroll
                                              will be used in the calculation of the                  period. During the previous election                  the farm for 2018. Previous 2018
                                              simple average. Using this option                       period under the 2014 Farm Bill, the                  enrollments of farms having generic
                                              eliminates unassigned base acres on the                 producers on farms with generic base                  base acres will not be recognized as
                                              farm. For example:                                      acres had the opportunity to make an                  valid, as the provisions of BBA
                                                 a. A farm has 100 cropland acres, 100                election on all 21 covered commodities                eliminate generic base acres. CCC has no
                                              generic base acres, and had the                         or have a default election of PLC apply;              authority to enter into 2018 contracts
                                              following planted acres:                                those elections remain in place and                   having generic base acres. As was the
                                                 Æ For 2009, 25 acres of upland cotton                therefore, for the 2018 crop year it will             case with previous crop year
                                              and 75 acres of corn;                                   only be necessary for all current                     enrollments, enrollments of portions of
                                                 Æ For 2010, 75 acres of upland cotton                producers on the farm to make an                      a farm are not allowed.
                                              and 25 acres of corn;                                   election of PLC or ARC–CO for seed
                                                 Æ For 2011, no acres of covered                      cotton base acres. New elections for                  General Eligibility Requirements
                                              commodities; and                                        ARC–IC or for other covered
                                                 Æ For 2012, 100 acres of upland                                                                              The general eligibility requirements
                                                                                                      commodities will not be permitted.                    are explained in the ARC or PLC
                                              cotton.                                                 Farms having a valid election of ARC–
                                                 b. The simple average of the two                                                                           contract appendix and in 7 CFR part
                                                                                                      IC will continue to have ARC–IC as the                1412, except for adding seed cotton to
                                              planted covered commodities is 25 acres
                                                                                                      election for the entire farm and for all              the list of covered commodities.
                                              of corn and 50 acres of upland cotton.
                                                                                                      covered commodities including seed
                                                 c. Corn, from b. above, is 33.33                                                                           Sharing Payments
                                                                                                      cotton that was added as a covered
                                              percent of the total covered
                                                                                                      commodity effective with the 2018 crop                   Each eligible producer on a farm will
                                              commodities planted on the farm (25
                                                                                                      year for the life of the 2014 Farm Bill.              be given the opportunity to enroll in
                                              divided by 75 equals 33.33 percent),
                                                                                                         Implementing these changes is a                    ARC or PLC for a payment share
                                              leaving 66.67 percent planted to upland
                                                                                                      multi-step process and all steps must be              determined to be fair and equitable as
                                              cotton.
                                                 d. Completing the calculation, 33.33                 completed in order by the appropriate                 agreed to by all the producers on the
                                              percent times 100 generic base acres                    person or legal entity as follows:                    farm and approved by the county
                                              equals 33.33 base acres of corn and                        1. FSA will make a determination that              committee. As specified in § 1412.54(b),
                                              66.67 percent multiplied by 100 generic                 a covered commodity was planted or                    each producer leasing a farm must
                                              base acres equals 66.67 base acres of                   prevented planted on the farm from                    provide the FSA county committee with
                                              seed cotton.                                            2009 through 2016;                                    a copy of their written lease or, in the
                                                 If an owner fails to make an allocation                 2. FSA will make a determination of                absence of a written lease, must provide
                                              of generic base acres and has a covered                 the planting history of covered                       a complete written description of the
                                              commodity, including seed cotton, that                  commodities on the farm from 2008                     terms and conditions of any oral
                                              was planted or prevented from being                     through 2012;                                         agreement or lease. The general
                                              planted during the 2009 through 2016                       • 2008 through 2012 is for calculating             eligibility requirements are explained in
                                              crop years, seed cotton base acres will                 a seed cotton PLC yield, and                          the ARC or PLC contract appendix and
                                              be determined by FSA using the first                       • 2009 through 2012 is for                         on 7 CFR part 1412, except for adding
                                              option listed above, as is required by                  determining how generic base acres on                 seed cotton to the list of a covered
                                              BBA.                                                    a farm may be allocated;                              commodity. An owner’s or landlord’s
                                                                                                         3. A current owner will make an                    signature, as applicable, affirming a zero
                                              PLC and ARC–CO Election, Allocation                     allocation of generic base acres                      share on a contract may be accepted as
                                              by FSA and Enrollment                                   according to § 1412.25;                               evidence of a cash lease between the
                                                 After the yield update and base acre                    4. A current owner will make a                     owner or landlord and tenant, as
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                                              allocation is completed, all current                    determination of the PLC yield and                    applicable, as determined by FSA. For
                                              producers on a farm with seed cotton                    update of that yield according to 7 CFR               farms with seed cotton base acres, such
                                              base acres, except for farms having a                   1412.31;                                              signature or signatures, if entered on the
                                              valid ARC-Individual Farm Option                           5. The current producer(s) will make               contract to satisfy the requirement of
                                              (ARC–IC) election, must affirmatively                   an election of either PLC or ARC–CO for               furnishing a written lease, must be
                                              and unanimously elect PLC or ARC–CO                     seed cotton base acres according to                   entered on the application by September
                                              for seed cotton base acres during the                   § 1412.71; and                                        30, 2018.


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                                                               Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations                                        40655

                                              Signup Deadline                                         significant regulation issued, the new                Environmental Review
                                                The signup deadline is September 28,                  costs must be offset by the elimination                  The environmental impacts of this
                                              2018 for 2018 ARC and PLC.                              of at least two prior regulations. The                final rule have been considered in a
                                                                                                      OMB guidance in M–17–21, dated April                  manner consistent with the provisions
                                              Notice and Comment                                      5, 2017, specifies that ‘‘transfer rules’’            of the National Environmental Policy
                                                In general, the Administrative                        are not covered by Executive Order                    Act (NEPA, 42 U.S.C. 4321–4347), the
                                              Procedure Act (5 U.S.C. 553) requires                   13771. Transfer rules are Federal
                                                                                                                                                            regulations of the Council on
                                              that a notice of proposed rulemaking be                 spending regulatory actions that cause
                                                                                                                                                            Environmental Quality (40 CFR parts
                                              published in the Federal Register and                   only income transfers between
                                                                                                                                                            1500–1508), and the FSA regulations for
                                              interested persons be given an                          taxpayers and program beneficiaries.
                                                                                                                                                            compliance with NEPA (7 CFR part
                                              opportunity to participate in the                       Therefore, this is considered a transfer
                                                                                                                                                            799). This final rule will revise ARC and
                                              rulemaking through submission of                        rule by OMB and is not covered by
                                                                                                                                                            PLC, as mandated by BBA, to add a
                                              written data, views, or arguments with                  Executive Order 13771.
                                                                                                                                                            single commodity, seed cotton. The
                                              or without opportunity for oral                         Cost Benefit Analysis Summary                         legislative intent for revising ARC and
                                              presentation, except when the rule                         Estimates of transfer payments from                PLC programs is to provide income
                                              involves a matter relating to public                    these ARC and PLC programs are based                  support to the same group of producers
                                              property, loans, grants, benefits, or                   on supply, demand and price conditions                that were previously eligible for the
                                              contracts. This rule involved matters                   and FSA projections for the 2018 crop.                earlier and now-discontinued programs,
                                              relating to benefits and is therefore                   Based on the projections, the net                     direct and counter-cyclical payment
                                              being published as a final rule without                 increase in 2018-crop ARC and PLC                     program and average crop revenue
                                              the prior opportunity for comments. In                  payments is expected to be around $743                election program. On February 22, 2017,
                                              addition, the regulations to implement                  million. Allocation of generic base is                FSA completed an environmental
                                              the provisions of Title I and the                       expected to increase ARC and PLC                      review of ARC and PLC. FSA has
                                              administration of Title I of the 2014                   payments by $1,067 million ($917                      determined that the addition of the
                                              Farm Bill are exempt from the notice                    million for seed cotton and $150 million              commodity to the programs does not
                                              and comment provisions of 5 U.S.C. 553                  for other covered commodities) with                   alter the environmental impacts, as
                                              and the Paperwork Reduction Act (44                     offsets of $324 million from eliminating              assessed, or the related decisions.
                                              U.S.C. chapter 35), as specified in                     ARC and PLC payments on attributed                    Therefore, FSA will not prepare a new
                                              section 1601(c)(2) of the 2014 Farm Bill.               generic base.                                         environmental evaluation, assessment,
                                              Executive Orders 12866, 13563, 13771                       The changes are expected to have                   or impact statement for this regulatory
                                              and 13777                                               marginal impacts on supply, demand,                   action.
                                                                                                      and prices because the impacts are
                                                Executive Order 12866, ‘‘Regulatory                                                                         Executive Order 12372
                                                                                                      spread across the covered commodities
                                              Planning and Review,’’ and Executive                    and acreage shifts are expected to                       Executive Order 12372,
                                              Order 13563, ‘‘Improving Regulation                     represent a small percentage of the                   ‘‘Intergovernmental Review of Federal
                                              and Regulatory Review,’’ direct agencies                respective covered commodity planted                  Programs,’’ requires consultation with
                                              to assess all costs and benefits of                     acreage. Peanut planted acreage is                    State and local officials that would be
                                              available regulatory alternatives and, if               expected to decrease by approximately                 directly affect by proposed Federal
                                              regulation is necessary, to select                      15 percent, but peanut prices are not                 financial assistance. The objectives of
                                              regulatory approaches that maximize                     expected to change significantly because              the Executive Order are to foster an
                                              net benefits (including potential                       of ample peanut supplies. Peanut acres                intergovernmental partnership and a
                                              economic, environmental, public health                  are expected to shift to other                        strengthened Federalism, by relying on
                                              and safety effects, distributive impacts,               commodities such as corn and soybeans                 State and local processes for State and
                                              and equity). Executive Order 13563                      with greater market returns because                   local government coordination and
                                              emphasized the importance of                            eliminating generic base decouples ARC                review of proposed Federal Financial
                                              quantifying both costs and benefits, of                 and PLC payments from planting                        assistance and direct Federal
                                              reducing costs, of harmonizing rules,                   decisions. Most seed cotton base acres                development. For reasons specified in
                                              and of promoting flexibility. Executive                 are expected to elect and enroll in PLC.              the final rule related notice to 7 CFR
                                              Order 13777, ‘‘Enforcing the Regulatory                                                                       part 3015, subpart V (48 FR 29115, June
                                              Reform Agenda,’’ established a federal                  Regulatory Flexibility Act                            24, 1983), the programs and activities
                                              policy to alleviate unnecessary                            The Regulatory Flexibility Act (5                  within this rule are excluded from the
                                              regulatory burdens on the American                      U.S.C. 601–612), as amended by the                    scope of Executive Order 12372 which
                                              people.                                                 Small Business Regulatory Enforcement                 requires intergovernmental consultation
                                                The Office of Management and Budget                   Fairness Act of 1996 (SBREFA, Pub. L.                 with State and local officials.
                                              (OMB) designated this rule as                           104–121), generally requires an agency
                                              economically significant under                          to prepare a regulatory flexibility                   Executive Order 12988
                                              Executive Order 12866, ‘‘Regulatory                     analysis of any rule whenever an agency                  This rule has been reviewed under
                                              Planning and Review,’’ and therefore,                   is required by the Administrative                     Executive Order 12988, ‘‘Civil Justice
                                              OMB has reviewed this rule. The costs                   Procedure Act or any other law to                     Reform.’’ This rule will not preempt
                                              and benefits of this rule are summarized                publish a proposed rule, unless the                   State or local laws, regulations, or
                                              below. The full cost benefit analysis is                agency certifies that the rule will not               policies unless they represent an
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                                              available on regulations.gov.                           have a significant economic impact on                 irreconcilable conflict with this rule.
                                                Executive Order 13771, ‘‘Reducing                     a substantial number of small entities.               The rule will not have retroactive effect.
                                              Regulation and Controlling Regulatory                   This rule is not subject to the Regulatory            Before any judicial action may be
                                              Costs,’’ requires that in order to manage               Flexibility Act because neither CCC nor               brought regarding the provisions of this
                                              the private costs required to comply                    FSA are not required by Administrative                rule, the administrative appeal
                                              with Federal regulations that for every                 Procedure Act or any law to publish a                 provisions of 7 CFR parts 11 and 780
                                              new significant or economically                         proposed rule for this rulemaking.                    must be exhausted.


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                                              40656            Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations

                                              Executive Order 13132                                   private sector. Therefore, this rule is not           requirements, Rice, Soil conservation,
                                                This rule has been reviewed under                     subject to the requirements of sections               Wheat.
                                              Executive Order 13132, ‘‘Federalism.’’                  202 and 205 of UMRA.                                    For the reasons discussed above, CCC
                                              The policies contained in this rule do                  SBREFA                                                amends 7 CFR part 1412 as follows:
                                              not have any substantial direct effect on
                                              States, on the relationship between the                    This rule is a major rule under the                PART 1412—AGRICULTURE RISK
                                              Federal government and the States, or                   SBREFA (Pub. L. 104–121). SBREFA                      COVERAGE, PRICE LOSS COVERAGE,
                                              on the distribution of power and                        normally requires that an agency delay                AND COTTON TRANSITION
                                              responsibilities among the various                      the effective date of a major rule for 60             ASSISTANCE PROGRAMS
                                              levels of government, except as required                days from the date of publication to
                                                                                                      allow for Congressional review. Section               ■ 1. The authority citation for part 1412
                                              by law. Nor does this rule impose                                                                             continues to read as follows:
                                              substantial direct compliance costs on                  808 of SBREFA allows an agency to
                                              State and local governments. Therefore,                 make a major regulation effective                       Authority: 7 U.S.C. 1508b, 7911–7912,
                                              consultation with the States is not                     immediately if the agency finds there is              7916, 8702, 8711–8712, 8751–8752, and 15
                                                                                                      good cause to do so. Section 1601(c)(3)               U.S.C. 714b and 714c.
                                              required.
                                                                                                      of the 2014 Farm Bill provides that the
                                              Executive Order 13175                                   authority in Section 808 of SBREFA be                 Subpart A—General Provisions
                                                This rule has been reviewed for                       used in implementing the changes
                                                                                                                                                            ■  2. Amend § 1412.1 as follows:
                                              compliance with Executive Order                         required by Title I of the 2014 Farm Bill,
                                                                                                                                                            ■  a. In paragraph (a), remove the words
                                              13175, ‘‘Consultation and Coordination                  as amended, such as for the changes
                                                                                                                                                            and punctuation ‘‘, generic base acres,’’
                                              with Indian Tribal Governments.’’ The                   being made by this rule. Consistent with
                                                                                                                                                            and add the words and punctuation
                                              Executive Order 13175 requires to                       section 1601(c)(3) of the 2014 Farm Bill,
                                                                                                                                                            ‘‘seed cotton;’’ immediately before the
                                              consult and coordinate with tribes on a                 FSA therefore finds that it would be
                                                                                                                                                            words ‘‘pulse crops’’.
                                              government-to-government basis on                       contrary to the public interest to delay
                                                                                                                                                            ■ b. Revise paragraph (b).
                                              policies that have tribal implications,                 the effective date of this rule because it
                                                                                                                                                            ■ c. In paragraph (c), remove the words
                                              including regulations, legislative                      would delay implementation of seed
                                                                                                                                                            ‘‘CTAP application or the’’;
                                              comments proposed legislation, and                      cotton as a covered commodity for ARC
                                                                                                                                                            ■ d. In paragraph (d), remove the words
                                              other policy statements or actions that                 and PLC as required by the 2014 Farm
                                                                                                                                                            ‘‘CTAP application or’’; and
                                              have substantial direct effects on one or               Bill, as amended. The regulation needs                ■ e. In paragraph (e), remove the words
                                              more Indian tribes, on the relationship                 to be effective to provide adequate time              and punctuation ‘‘and for CTAP,
                                              between the Federal Government and                      for producers to update base acres and                assistance under this part will be based
                                              Indian tribes or on the distribution of                 yields in preparation for enrollment for              on the physical location of the farm, as
                                              power and responsibilities between the                  2018. Therefore, this rule is effective on            specified in part 718 of this title’’.
                                              Federal government and Indian tribes.                   the September 30, 2018.                                  The revision reads as follows:
                                                FSA has assessed the impact of this                   Federal Assistance Programs
                                              rule on Indian tribes and determined                                                                          § 1412.1 Applicability, changes in law,
                                              that this rule does not, to our                           The title and number of the Federal                 interest, application, and contract
                                                                                                      Domestic Assistance Program found in                  provisions.
                                              knowledge, have tribal implications that
                                              required tribal consultation under                      the Catalog of Federal Domestic                       *      *     *    *     *
                                              Executive Order 13175. If a tribe                       Assistance to which this rule applies                    (b) For crop year 2018, this part
                                              requests consultation, FSA will work                    are:                                                  specifies how:
                                              with USDA Office of Tribal Relations to                 10.112—Price Loss Coverage                               (1) Generic base acres are allocated to
                                              ensure meaningful consultation is                       10.113—Agriculture Risk Coverage                      seed cotton base acres and unassigned
                                              provided.                                                                                                     base acres (generic base acres are not in
                                                                                                      Paperwork Reduction Act of 1995                       effect for crop year 2018);
                                              The Unfunded Mandates Reform Act of                                                                              (2) A payment yield for seed cotton
                                                                                                        The regulations in this rule are
                                              1995                                                                                                          base acres is established;
                                                                                                      exempt from the requirements of the
                                                 Title II of the Unfunded Mandates                    Paperwork Reduction Act (44 U.S.C.                       (3) An election is made on seed cotton
                                              Reform Act of 1995 (UMRA, Pub. L.                       Chapter 35), as specified in section                  base acres; and
                                              104–4) requires Federal agencies to                     1601(c) of the 2014 Farm Bill, which                     (4) Contracts are enrolled with seed
                                              assess the effects of their regulatory                  provides that these regulations be                    cotton base acres.
                                              actions on State local, and Tribal                      promulgated and administered without                  *      *     *    *     *
                                              governments or the private sector.                      regard to the Paperwork Reduction Act.                ■ 3. Amend § 1412.2 as follows:
                                              Agencies generally must prepare a                                                                             ■ a. In paragraph (a), remove the words
                                              written statement, including a cost                     E-Government Act Compliance
                                                                                                                                                            and punctuation ‘‘, PLC, and CTAP’’
                                              benefit analysis, for proposed and final                   FSA and CCC are committed to                       and add the words ‘‘and PLC’’ in their
                                              rules with Federal mandates that may                    complying with the E-Government Act,                  place; and
                                              result in expenditures of $100 million or               to promote the use of the internet and                ■ b. Revise paragraphs (e) and (f).
                                              more in any 1 year for State, local, or                 other information technologies to                        The revisions read as follows:
                                              Tribal governments, in the aggregate, or                provide increased opportunities for
                                              to the private sector. UMRA generally                   citizen access to Government                          § 1412.2   Administration.
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                                              requires agencies to consider                           information and services, and for other               *      *    *     *     *
                                              alternatives and adopt the more cost                    purposes.                                               (e) The Deputy Administrator has the
                                              effective or least burdensome alternative                                                                     authority to permit State and county
                                                                                                      List of Subjects in 7 CFR Part 1412
                                              that achieves the objectives of the rule.                                                                     committees to waive or modify any non-
                                              This rule contains no Federal mandates,                   Cotton, Feed grains, Oilseeds,                      statutory deadline specified in this part.
                                              as defined in Title II of UMRA, for State,              Peanuts, Price support programs,                        (f) Items of general applicability to
                                              local, and Tribal governments or the                    Reporting and recordkeeping                           program participants, including, but not


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                                                               Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations                                         40657

                                              limited to, application periods,                        specified in the regulations for 7 CFR                for the program year when a reduction
                                              application deadlines, internal                         part 1412 that were in effect as of                   becomes necessary.
                                              operating guidelines issued to State and                September 30, 2013.                                   *     *    *     *     *
                                              county offices, prices, yields, and                     *     *     *     *    *                              ■ 7. Revise § 1412.25 to read as follows:
                                              payment factors established for ARC or                     Generic base acres * * * For 2018,
                                              PLC, are not subject to appeal in                       generic base acres are subject to                     § 1412.25 Allocation of generic base acres
                                              accordance with part 780 of this title.                                                                       on a farm and updating of records.
                                                                                                      allocation according to § 1412.25.
                                              ■ 4. Amend § 1412.3 as follows:                                                                                  (a) Any or all of the current owner(s)
                                                                                                      *     *     *     *    *
                                              ■ a. Remove the definitions of ‘‘2014                                                                         of a farm with generic base acres
                                                                                                         Payment yield means for a farm for a
                                              farm structure’’ and ‘‘Application’’;                                                                         adjusted as of February 9, 2018, will
                                                                                                      covered commodity, the yield
                                              ■ b. In the definition of ‘‘Base acres’’,                                                                     have a one-time opportunity in an
                                                                                                      established under subpart C of this part.
                                              revise the last sentence;                                                                                     allocation period as announced by FSA,
                                                                                                      *     *     *     *    *                              if a covered commodity including
                                              ■ c. In the definition of ‘‘Contract                       Reference price * * *
                                              period’’, remove the words ‘‘or                                                                               upland cotton was planted or prevented
                                                                                                         (15) Seed cotton, $0.367 per pound.                from being planted during the 2009
                                              application’’ and words and
                                                                                                      *     *     *     *    *                              through 2016 crop years, to:
                                              punctuation ‘‘or ‘‘application’’ ’’, and
                                                                                                         Seed cotton means unginned upland                     (1) Allocate the farm’s generic base
                                              remove the word ‘‘the’’ immediately
                                                                                                      cotton that includes both lint and seed.              acres to seed cotton base acres in a
                                              before the words ‘‘each program year’’;
                                                                                                      *     *     *     *    *                              quantity equal to the greater of:
                                              ■ d. Add the definition of ‘‘Counter-
                                                                                                         Unassigned base acres means the                       (i) 80 percent of the generic base acres
                                              cyclical payment yield’’ in alphabetical                                                                      on the farm; or
                                              order;                                                  number of acres derived from generic
                                                                                                      base acres where no ARC or PLC                           (ii) The average number of upland
                                              ■ e. In the definition of ‘‘Covered                                                                           cotton acres planted and prevented from
                                              commodity’’, add the words and                          payments are generated or earned.
                                                                                                                                                            being planted on the farm during the
                                              punctuation ‘‘seed cotton,’’ immediately                *     *     *     *    *                              2009 through 2012 crop years, not to
                                              before the words ‘‘pulse crops’’;                                                                             exceed the total generic base acres on
                                              ■ f. Remove the definition of ‘‘Eligible                Subpart B—Establishment of Base
                                                                                                      Acres for a Farm for Covered                          the farm; or
                                              subsequently planted crop acreage’’;                                                                             (2) Allocate base acres for covered
                                              ■ g. In the definition of ‘‘Generic base                Commodities
                                                                                                                                                            commodities, including seed cotton, by
                                              acres’’, remove the last two sentences                                                                        applying paragraph (e) of this section.
                                                                                                      ■ 5. Amend § 1412.23 as follows:
                                              and add in their place one new                                                                                   (b) Under no circumstances will the
                                                                                                      ■ a. Revise the section heading; and
                                              sentence;                                                                                                     allocation of generic base acres on a
                                                                                                      ■ b. In paragraphs (a), (b), and (c),
                                              ■ h. In the definition of ‘‘Initial crop’’,                                                                   farm as specified in paragraph (a) of this
                                                                                                      remove the words ‘‘and generic base
                                              remove the words ‘‘or cotton’’;                                                                               section result in any increase in total
                                                                                                      acres’’ in each place they appear.
                                              ■ i. In paragraph (3) of the definition of                                                                    base acres on a farm. Additionally, if
                                                                                                        The revision reads as follows:
                                              ‘‘Marketing year’’, add the words and                                                                         any current owner submits a written
                                              punctuation ‘‘, seed cotton,’’                          § 1412.23 Base acres, and Conservation                statement that conflicts with the
                                              immediately after the word ‘‘Peanuts’’;                 Reserve Program.                                      allocation request or expresses written
                                              ■ j. In the definition of ‘‘Payment                     *     *     *     *      *                            disagreement with the allocation filed
                                              acres’’, remove paragraph (3);                          ■ 6. Amend § 1412.24 as follows:                      according to paragraph (a) of this
                                              ■ k. Revise the definition of ‘‘Payment                                                                       section, no allocation will be approved
                                                                                                      ■ a. Revise the section heading;
                                              yield’’;                                                ■ b. In paragraph (a)(1), remove the                  for the farm unless all the current
                                              ■ l. Amend the definition of ‘‘Reference                words and punctuation ‘‘and generic                   owners of the farm provide FSA with
                                              price’’ as follows:                                     base acres (which are equal to upland                 written evidence of the dispute
                                              ■ i. In paragraph (13) remove the word                  cotton base acres used for CTAP)’’;                   resolution during the allocation period.
                                              ‘‘and’’;                                                ■ c. Revise paragraph (b);                               (c) FSA will provide the farm operator
                                              ■ ii. In paragraph (14) remove the                      ■ d. In paragraph (d)(1), remove the                  and owners of record with a summary
                                              punctuation ‘‘.’’ and add in its place the              words and punctuation ‘‘, including                   of all covered commodities P&CP acres
                                              words and punctuation ‘‘; and’’; and                    generic base acres (and the equal                     and subsequently planted crop acreage
                                              ■ iii. Add new paragraph (15);                          amount of upland cotton base acres),’’;               for the 2008 through 2012 crop years (as
                                              ■ m. Add the definition of ‘‘Seed                       and                                                   reported to FSA on acreage reports filed
                                              cotton’’ in alphabetical order;                         ■ e. In paragraph (f), remove the words               with FSA in each of those years).
                                              ■ n. In the definition of ‘‘Supportive and              and punctuation ‘‘and generic base acres              Acreage not reported to FSA by
                                              necessary contractual documents’’,                      (resulting in an equal amount of upland               producers will not be included in the
                                              remove the words ‘‘or CTAP                              cotton base acres)’’.                                 summary. The summary of records
                                              application’’; and                                         The revisions read as follows:                     specified in paragraph (c) of this section
                                              ■ o. Add the definition of ‘‘Unassigned                                                                       is intended to assist current owners of
                                              base acres’’ in alphabetical order.                     § 1412.24    Limitation of total base acres on        farms with the one-time opportunity for
                                                 The revisions and additions read as                  a farm.                                               generic base acre allocation as provided
                                              follows:                                                *     *     *     *    *                              in this section. Any current owner of a
                                                                                                        (b) The Deputy Administrator will                   farm may also at any time visit the FSA
                                              § 1412.3   Definitions.                                 give the owner of the farm the                        county office and request to obtain a
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                                              *     *     *    *    *                                 opportunity to select the base acres                  copy of the summary referenced in
                                                Base acres * * * The term ‘‘base                      against which any reduction required in               paragraph (c) of this section.
                                              acres’’ includes any unassigned base                    this section will be made. Absent the                    (d) Current owners will be provided a
                                              acres.                                                  owner selecting the base acres for                    one-time opportunity to update the
                                              *     *     *    *    *                                 reduction, CCC will apply a pro-rata                  records identified in paragraph (c) of
                                                Counter-cyclical payment yield means                  reduction against the base acres before               this section during the allocation
                                              the farm’s upland cotton yield as                       computing and issuing any payments                    period, provided that there are crop


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                                              40658            Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations

                                              insurance records (or other verifiable                  accordance with paragraph (a)(1)(i) of                the average of the county yield, then 75
                                              documentation available to support                      this section.                                         percent of the average of the 2008
                                              those requested updates). In the event                                                                        through 2012 county yields will be
                                              that an update to a farm’s P&CP acres of                Subpart C—Establishment of Price                      substituted for that year.
                                              a covered commodity for 2009 through                    Loss Coverage Yields and Submitting                      (b) The current owner of the farm may
                                              2012 causes any payment under another                   Production                                            retain the PLC yield or update the PLC
                                              FSA or CCC program to become                                                                                  yield.
                                              unearned, the overpayment must be                       ■  8. Amend § 1412.31 as follows:                        (c) PLC yields are exclusively used for
                                              refunded to FSA or CCC in accordance                    ■  a. In paragraph (a), remove the word               PLC. However, any owner of a farm can
                                              with the rules for that program and the                 ‘‘The’’ and add the words ‘‘Except for                update the seed cotton PLC yield as
                                              FSA or CCC regulations governing                        seed cotton’’ in its place and remove                 specified in paragraph (a) of this
                                              overpayment (7 CFR parts 718 and                        ‘‘§ 1412.33 or § 1412.34, whichever is                section, regardless of program election,
                                              1403).                                                  applicable’’ and add ‘‘§ 1412.34’’ in                 enrollment, or participation.
                                                 (e) After an update as specified in                  their place.                                             (d) A decision by any current owner
                                              paragraph (d) of this section, the owner                ■ b. Redesignate paragraph (b) as                     of a farm to update the seed cotton PLC
                                              may allocate the farm’s generic base                    paragraph (c) and add new paragraph                   yield as specified in this section is final
                                              acres during the allocation period based                (b).                                                  and binding unless that decision to
                                              on a proration of each covered                          ■ c. In newly redesignated paragraph                  update the yield is withdrawn by that
                                              commodity’s P&CP acres or                               (c), remove the words and punctuation                 current owner or a different yield
                                              subsequently planted crop acreage in                    ‘‘or for which a covered commodity is                 update is made by that current owner or
                                              crop years 2009 through 2012 to the                     planted on generic base acres,’’.                     another current owner. If that current
                                              total P&CP acres or subsequently                                                                              owner or another current owner
                                                                                                      § 1412.31 PLC yields for covered
                                              planted crop acreage of all covered                     commodities.                                          requests a different PLC yield update for
                                              commodities during that time.                                                                                 the covered commodity during the yield
                                                 (f) Current owners can allocate                      *      *     *     *     *
                                                                                                         (b) The PLC yield for seed cotton on               update period specified in paragraph (a)
                                              generic base acres at any time during the                                                                     of this section, that update will become
                                              allocation period without receiving or                  the farm is equal to the counter-cyclical
                                                                                                      payment yield established for upland                  final.
                                              requesting the summary records, and,                                                                             (e) All PLC yield updates are subject
                                              therefore, failure to receive a summary                 cotton on the farm as in effect
                                                                                                      September 30, 2013, times 2.4, unless                 to review and approval by FSA as
                                              record from FSA is not grounds for                                                                            specified in § 1412.36. FSA’s decision to
                                              appeal or extension of the allocation                   the PLC yield is updated as specified in
                                                                                                      § 1421.33.                                            issue payments based on the PLC yield
                                              period.                                                                                                       updated by an owner is subject to
                                                 (g) The option to allocate generic base              *      *     *     *     *                            verification and spot check by FSA at
                                              acres is an ‘‘all or nothing’’ decision for             ■ 9. Amend § 1412.32 as follows:                      any time.
                                              the farm. Generic base acres will not be                ■ a. Revise the section heading;                         (f) Yield updates in this section will
                                              retained, partially or in whole. A                      ■ b. In paragraph (a), remove the words               be permitted using the current owner’s
                                              decision by any current owner to                        and punctuation ‘‘(except generic base                certification of yield. The certification is
                                              allocate generic base acres on a farm in                acres),’’; and                                        subject to spot check or verification by
                                              accordance with this section is final and               ■ c. In paragraph (e), remove the                     FSA at any time. If selected for spot
                                              binding if made according to this                       reference to ‘‘§ 1412.35’’ and add                    check or verification, the owner must
                                              section during the allocation period                    ‘‘§ 1412.36’’ in its place.                           submit evidence specified in § 1412.35
                                              unless that allocation is withdrawn in                     The revision reads as follows:                     to support the certified yield.
                                              writing by that current owner or another
                                              current owner. If another current owner                 § 1412.32 Updating PLC yield for all                  § 1412.34   [Amended]
                                              subsequently files a different allocation               covered commodities except seed cotton.
                                                                                                                                                            ■  12. In newly redesignated
                                              request in whatever time remains in the                 *      *      *      *       *
                                              stated allocation period or if there are                                                                      § 1412.34(b)(2)(i) and (c), remove each
                                              conflicting allocation requests of current              § § 1412.33 through 1412.35 [Redesignated             cross reference to ‘‘§ 1412.34’’ and add
                                              owners in the allocation period, FSA                    as §§ 1412.34 through 1412.36]                        ‘‘§ 1412.35’’ in their place.
                                              will not make the allocation unless the                 ■ 10. Redesignate §§ 1412.33 through                  Subpart D—ARC and PLC Contract
                                              conflict is resolved via written                        1412.35 as §§ 1412.34 through 1412.36.                Terms and Enrollment Provisions for
                                              agreement between the current owners                    ■ 11. Add new § 1412.33 to read as                    Covered Commodities
                                              who filed the conflicting requests. In the              follows:
                                              event that a resolution is not presented,                                                                     ■ 13. Amend § 1412.41 as follows:
                                              the provisions of paragraph (h) of this                 § 1412.33    Updating PLC yield for seed              ■ a. Revise paragraph (a)(2);
                                              section will take effect. In the case of                cotton.
                                                                                                                                                            ■ b. In paragraph (b), remove the words
                                              submitting evidence of resolution, the                    (a) For a farm that has seed cotton                 and punctuation ‘‘June 1 of the
                                              written agreement must be filed with                    base acres as adjusted, in excess of zero             applicable contract year,’’ and add in
                                              FSA in the allocation period. Any and                   acres, a current owner of the farm has                their place ‘‘September 30, 2018,’’;
                                              all updates and allocation requests                     a one-time opportunity in a specified                 ■ c. In paragraph (e), remove ‘‘2015 or
                                              mentioned in this section are subject to                period, as announced by FSA, to update                subsequent’’ and add ‘‘2018’’ in its
                                              review and approval or disapproval by                   the PLC yield equal to 90 percent of the              place, and remove ‘‘2015 and
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                                              FSA for CCC.                                            upland cotton’s 2008 through 2012                     subsequent crop year’’; and
                                                 (h) In the event that an owner fails to              average yield per planted acre,                       ■ d. Add paragraph (f).
                                              make an allocation according to this                    excluding from the average any year that                The revision and addition read as
                                              part and the farm has met the planting                  no acreage was planted to upland                      follows:
                                              requirement in paragraph (a) of this                    cotton, times 2.4. If the yield per
                                              section, the farm will receive an                       planted acre in any of the years 2008                 § 1412.41   ARC or PLC program contract.
                                              allocation of seed cotton base acres in                 through 2012 is less than 75 percent of                   (a) * * *


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                                                               Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Rules and Regulations                                              40659

                                                (2) For program year 2018, the                          (e) FSA has determined the irrigated                ■  a. Remove paragraph (c);
                                              enrollment period will end on                           and non-irrigated counties and crops for              ■  b. Redesignate paragraph (d) as
                                              September 30, 2018.                                     the 2018 program year.                                paragraph (c);
                                                (i) Eligible producers must execute                   *     *    *    *    *                                ■ c. In newly redesignated paragraph
                                              and submit an ARC or PLC program                                                                              (c), remove the first sentence, remove
                                              contract not later than September 30,                   § 1412.54    [Amended]                                ‘‘The’’ and add ‘‘In general, a’’ in its
                                              2018, for fiscal year 2018 contracts.                   ■  19. Amend § 1412.54 as follows;                    place; and
                                                (ii) Except as stated in this section,                ■  a. In paragraph (a), remove the words              ■ d. Add new paragraph (d).
                                              enrollment is not allowed after                         ‘‘apply for CTAP as specified in subpart                 The addition reads as follows:
                                              September 30 of the fiscal year in which                H of this part and annually’’;
                                                                                                      ■ b. In paragraph (b), remove the words               § 1412.71   Election of ARC or PLC.
                                              the ARC or PLC payments are requested.
                                              FSA will not process offers of                          ‘‘applies for CTAP or elects and’’;                   *     *     *     *     *
                                                                                                      ■ c. In paragraph (c), remove the words                 (d) Beginning with the 2018 crop year,
                                              enrollment for a contract period after
                                                                                                      ‘‘CTAP payment or’’;                                  a valid election for seed cotton is
                                              the contract period has ended. This is                  ■ d. In paragraph (d)(4), remove the
                                              not a compliance provision but a rule of                                                                      required for all current producers on a
                                                                                                      words ‘‘ARC, PLC, or CTAP’’ and add                   farm where seed cotton is added as a
                                              general applicability and will apply to                 the words ‘‘ARC or PLC’’ in their place
                                              every offer to contract in each contract                                                                      covered commodity, as specified in
                                                                                                      both times they appear;                               § 1412.25, unless the farm contains a
                                              year.                                                   ■ e. In paragraph (f) introductory text,
                                                                                                                                                            valid ARC–IC election. A valid ARC–IC
                                              *      *    *     *     *                               remove the first sentence;                            election on a farm is for all covered
                                                (f) Any 2018 contract for a farm that                 ■ f. In paragraph (f)(2), remove the
                                                                                                                                                            commodities and will include the added
                                              includes generic base acres, whether or                 words ‘‘of this part’’; and
                                                                                                      ■ f. In paragraph (h), remove the words
                                                                                                                                                            covered commodity of seed cotton. This
                                              not that contract was approved on                                                                             election is for seed cotton only. All
                                              behalf of CCC, is invalid and                           ‘‘a CTAP application or’’ and add the
                                                                                                      word ‘‘an’’ in their place, and remove                other covered commodities on a farm
                                              withdrawn. Eligible producers on farms                                                                        with seed cotton base acres have an
                                              that had generic base acres must enroll                 the words and punctuation ‘‘CTAP
                                                                                                      application, or’’ in both places.                     election on file and will be bound by
                                              in accordance with paragraph (a) of this                                                                      that prior election. The election by all
                                              section after allocation has been                       § 1412.55    [Amended]                                current producers is to obtain:
                                              completed. Any contract executed                                                                                (1) PLC for seed cotton base acres, or
                                                                                                      ■ 20. In § 1412.55(a)(1), remove the
                                              before allocation in § 1412.25 will not                                                                         (2) ARC–CO for seed cotton base
                                                                                                      words and punctuations ‘‘ARC, PLC, or
                                              be recognized by CCC for any purpose.                                                                         acres.
                                                                                                      CTAP’’, and add ‘‘ARC or PLC’’ in their
                                              § § 1412.44 and 1412.45      [Removed and               place.                                                *     *     *     *     *
                                              Reserved]                                                                                                     ■ 27. In § 1412.74, add paragraph (c) to
                                                                                                      Subpart F—Violations and Compliance                   read as follows:
                                              ■ 14. Remove and reserve §§ 1412.44                     Provisions
                                              and 1412.45.                                                                                                  § 1412.74   Failure to make election.
                                                                                                      § 1412.61    [Amended]
                                              § 1412.46   [Amended]                                                                                         *     *      *     *     *
                                                                                                      ■  21. In § 1412.61, remove ‘‘or CTAP
                                                                                                                                                              (c) If a valid election is not made for
                                              ■ 15. In § 1412.46 (f), remove the last                 application, as applicable’’ and remove
                                                                                                                                                            seed cotton base acres on a farm, the
                                              sentence.                                               ‘‘or CTAP application’’.
                                                                                                                                                            producers of seed cotton base acres on
                                              Subpart E—Financial Considerations                      § 1412.63    [Amended]                                the farm are deemed to have elected
                                              Including Sharing Payments                              ■  22. In § 1412.63, remove the words                 PLC for acres allocated on the farm to
                                                                                                      ‘‘or CTAP application’’.                              seed cotton for the 2018 crop year.
                                              § 1412.51   [Amended]
                                                                                                      § 1412.64    [Amended]                                Steven Peterson,
                                              ■ 16. Amend § 1412.51 as follows:                                                                             Acting Administrator, Farm Service Agency.
                                                                                                      ■ 23. Amend § 1412.64 as follows:
                                              ■ a. Remove paragraph (b);                              ■ a. In paragraph (a), remove ‘‘ARC,                  Robert Stephenson,
                                              ■ b. Redesignate paragraphs (c) through
                                                                                                      PLC, and CTAP’’ and add ‘‘ARC or PLC’’                Executive Vice President, Commodity Credit
                                              (e) as (b) through (d), and;                            in its place, and remove the words ‘‘or               Corporation.
                                              ■ c. In newly redesignated paragraph                    application’’;                                        [FR Doc. 2018–17681 Filed 8–15–18; 8:45 am]
                                              (d), remove the words ‘‘including any                   ■ b. In paragraph (b) introductory text,              BILLING CODE 3410–05–P
                                              generic base acres’’.                                   remove ‘‘ARC, PLC, or CTAP’’ and add
                                              § 1412.52   [Amended]                                   ‘‘ARC or PLC’’ in its place; and
                                                                                                      ■ c. In paragraph (b)(3), remove the
                                              ■  17. In § 1412.52(a), remove the words                words and punctuation ‘‘, CTAP                        FEDERAL RESERVE SYSTEM
                                              ‘‘each of the 2014 through’’ and add the                application,’’.
                                              word ‘‘the’’ in their place.                                                                                  12 CFR Part 226
                                              ■ 18. Amend § 1412.53 as follows:                       § 1412.66    [Amended]
                                                                                                                                                            Truth in Lending (Regulation Z)
                                              ■ a. In paragraph (a) introductory text,                ■ 24. In § 1412.66(a), remove ‘‘ARC,
                                              remove ‘‘each of the 2014 through’’ and                 PLC, and CTAP’’ and add ‘‘ARC or PLC’’                CFR Correction
                                              add ‘‘the’’ in their place;                             in their place.
                                              ■ b. In paragraph (b) introductory text,
                                                                                                                                                            ■ In Title 12 of the Code of Federal
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                                                                                                      § 1412.69    [Amended]                                Regulations, Parts 220 to 229, revised as
                                              remove ‘‘each of the 2014 through’’ and
                                              add ‘‘the’’ in their place; and                         ■  25. In § 1412.69, remove ‘‘CTAP                    of January 1, 2018, on page 414, in
                                                                                                      participants and enrolled’’ and add                   § 226.43, paragraph (1) after paragraph
                                              ■ c. Revise paragraph (e).
                                                                                                      ‘‘Enrolled’’ in its place.                            (b)(2) and before paragraph (b)(3) is
                                                 The revision reads as follows:
                                                                                                                                                            removed.
                                              § 1412.53   ARC payment provisions.                     Subpart G—ARC and PLC Election                        [FR Doc. 2018–17793 Filed 8–15–18; 8:45 am]
                                              *      *     *       *      *                           ■   26. Amend § 1412.71 as follows:                   BILLING CODE 1301–00–D




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Document Created: 2018-08-16 01:02:47
Document Modified: 2018-08-16 01:02:47
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.
DatesEffective Date: August 16, 2018.
ContactBrent Orr; telephone, (202) 720-7641. Persons with disabilities who require alternative means for communication should contact the USDA Target Center at (202) 720-2600 (voice).
FR Citation83 FR 40653 
RIN Number0560-AI40
CFR AssociatedCotton; Feed Grains; Oilseeds; Peanuts; Price Support Programs; Reporting and Recordkeeping Requirements; Rice; Soil Conservation and Wheat

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