83 FR 45535 - Common Crop Insurance Regulations; Sugar Beet Crop Insurance Provisions

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation

Federal Register Volume 83, Issue 175 (September 10, 2018)

Page Range		45535-45539
FR Document		2018-19152
The Federal Crop Insurance Corporation (FCIC) amends the Common Crop Insurance Regulations, Sugar Beet Crop Insurance Provisions (Crop Provisions). The intended effect of this action is to update existing policy provisions and definitions to better reflect current agricultural practices. The changes will be effective for the 2019 and succeeding crop years in states with a November 30 contract change date and for the 2020 and succeeding crop years in all other states.
Federal Register, Volume 83 Issue 175 (Monday, September 10, 2018)
[Federal Register Volume 83, Number 175 (Monday, September 10, 2018)]
[Rules and Regulations]
[Pages 45535-45539]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19152]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 83, No. 175 / Monday, September 10, 2018 / 
Rules and Regulations

[[Page 45535]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR part 457

[Docket No. FCIC-18-0001]
RIN 0563-AC55


Common Crop Insurance Regulations; Sugar Beet Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations, Sugar Beet Crop Insurance Provisions 
(Crop Provisions). The intended effect of this action is to update 
existing policy provisions and definitions to better reflect current 
agricultural practices. The changes will be effective for the 2019 and 
succeeding crop years in states with a November 30 contract change date 
and for the 2020 and succeeding crop years in all other states.

DATES: This final rule is effective November 30, 2018. However, FCIC 
will accept written comments on this final rule until close of business 
October 10, 2018. FCIC will consider these comments and make changes to 
the rule if warranted.

ADDRESSES: FCIC prefers that interested persons submit comments 
electronically through the Federal eRulemaking Portal. Interested 
persons may submit comments, identified by Docket ID No. FCIC-18-0001, 
by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
All comments received, including those received by mail, will be posted 
without change to http://www.regulations.gov, including any personal 
information provided. Once these comments are posted to this website, 
the public can access all comments at its convenience from this 
website. All comments must include the agency name and docket number or 
Regulatory Information Number (RIN) for this rule. For detailed 
instructions on submitting comments and additional information, see 
http://www.regulations.gov. If interested persons are submitting 
comments electronically through the Federal eRulemaking Portal and want 
to attach a document, FCIC requests use of a text-based format. If 
interested persons wish to attach a document that is a scanned Adobe 
PDF file, it must be scanned as text and not as an image, thus allowing 
FCIC to search and copy certain portions of the submissions. For 
questions regarding attaching a document that is a scanned Adobe PDF 
file, please contact the Risk Management Agency (RMA) Web Content Team 
at (816) 823-4694 or by email at [email protected].
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person submitting 
the comment (or signing the comment, if submitted on behalf of an 
association, business, labor union, etc.). Interested persons may 
review the complete User Notice and Privacy Notice for Regulations.gov 
at http://www.regulations.gov/#!privacyNotice.

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

SUPPLEMENTARY INFORMATION: 

Background

    FCIC amends the Common Crop Insurance Regulations (7 CFR part 457) 
by revising 7 CFR 457.109 Sugar Beet Crop Insurance Provisions (Crop 
Provisions), to be effective for the 2019 and succeeding crop years in 
states with a November 30 contract change date and for the 2020 and 
succeeding crop years in all other states. The intended effect of this 
action is to update existing policy provisions and definitions to 
better reflect current agricultural practices.
    The changes are as follows:
    1. FCIC is removing the paragraph immediately preceding section 1, 
which refers to the order of priority if a conflict exists among the 
policy provisions. This same provision is contained in the Basic 
Provisions. Therefore, the appearance here is duplicative and should be 
removed from the Crop Provisions.
    2. FCIC is removing parentheticals identifying the titles of 
sections of the Basic Provisions throughout the Crop Provisions as the 
parenthetical section name is unnecessary and removing these titles 
will prevent FCIC from having to revise the Crop Provisions should 
these section titles change in the Basic Provisions.
    3. Section 1--FCIC is revising the definition of ``Crop Year.'' The 
previous definition required a reference to specific counties, as the 
crop year was defined differently for several California counties. In 
2013, the actuarial information that made insurance available was 
removed from all California counties except Imperial County, which has 
the same definition of ``crop year'' as used in all remaining insurable 
states and counties. Consequently, the revised definition removes 
references to specific counties such that all insurable counties have 
the same definition of ``crop year.''
    FCIC is removing the definition of ``Local Market Price'' as this 
term is no longer used in the Crop Provisions.
    FCIC is revising the definition of ``Practical to Replant.'' FCIC 
is removing those provisions that are duplicative of the definition in 
the Basic Provisions and leaves the requirement that it is practical to 
replant if the terms of the processor contract can be met.
    FCIC is adding a definition of ``Processor Contract'' and removing 
the definition of ``Sugar Beet Processor Contract.'' FCIC has 
identified several different Crop Provisions contain a variation of a 
definition for a ``processor contract,'' which has created ambiguity 
across Crop Provisions, and poses challenges for insurance providers to 
administer the program consistently across different crops. The 
definition of ``processor contract'' matches the definition found in 
other Crop Provisions, in order to improve

[[Page 45536]]

standardization of language regarding use of contracts across crop 
insurance programs. References throughout the Crop Provisions will be 
revised accordingly. The new definition also requires that contracts be 
executed by the acreage reporting date, which is consistent with all 
other crop insurance policies that insure contract crops. Contracts 
must be executed by the acreage reporting date so that liabilities and 
prices can be established for the purpose of determining guarantees and 
premium.
    FCIC is removing the definition of ``Production Guarantee (per 
acre).'' The definition is contained in the Basic Provisions. This 
definition was previously necessary due to inclusion of stage 
guarantees, which, as stated below, have been removed from the policy. 
Further, as stated below, section 3 specifies that the production 
guarantee is expressed in pounds of raw sugar.
    FCIC is removing the definitions of ``Standardized Ton'' and 
``Ton.'' The definitions are no longer necessary, since, as stated 
below, FCIC is changing the basis of insurance from ``tons'' to 
``pounds of raw sugar'' in section 3(c).
    FCIC is removing the definition of ``Thinning'' as this term is no 
longer used in the Crop Provisions.
    4. Section 3--FCIC is revising the basis of insurance from 
``standardized tons'' to ``pounds of raw sugar.'' This change is made 
to align the policy with the current sugar beet industry standard for 
payment. All references to the basis of insurance throughout the Crop 
Provisions will consequently be revised.
    FCIC is removing stage guarantees from the policy. FCIC had 
previously offered an option to obtain coverage without the stage 
guarantees for an additional premium. FCIC has observed an increasing 
number of sugar beet producers electing the stage removal option, such 
that very few producers have coverage with stage guarantees. Removal of 
stage guarantees from the policy will better reflect the risk 
management needs of producers and simplify their existing coverage 
options. Premiums will be revised to reflect the removal of the stage 
guarantees from the policy.
    5. Section 4--FCIC is removing references to a July 15 contract 
change date because, since 2013, this date was removed from the 
actuarial information for all counties. Additionally, FCIC proposes to 
edit the remaining date references to apply to states instead of 
counties. The edit does not change any county dates, merely provides 
consistency in reference to states or counties within the Crop 
Provisions and actuarial documents.
    6. Section 5--FCIC is removing the table of county-specific 
cancellation and termination dates since many of the counties with 
differing cancellation and termination dates no longer have insurance 
for sugar beets. With the removal of insurance from these counties, 
there are only two remaining cancellation and termination dates, so the 
provisions have been revised to only refer to these dates. The revision 
will not result in any changed dates for counties where insurance for 
sugar beets is currently available.
    7. Section 6--FCIC is removing and reserving this section. With the 
removal of stage guarantees, this section is no longer necessary. The 
premium computation method appears in the Basic Provisions and will 
reflect this removal.
    8. Section 7--In section 7(b)(2), FCIC is replacing ``duly 
promulgated'' with ``executed and adopted'' and ``sets forth'' with 
``contains.'' FCIC is also adding the modifier ``corporate'' to 
``resolution.'' This revised terminology uses more common language, 
makes clear the connection to later uses of the term ``corporate 
resolution,'' and provides consistency with other Crop Provisions.
    9. Section 8--FCIC is removing the parenthetical in 8(b) referring 
to counties without a final planting date because all insurable 
counties now have a specified final planting date.
    10. Section 9--FCIC is removing the list of end of insurance dates 
by geographic region and instead referring to the calendar date shown 
in the actuarial documents for the end of the insurance period. This 
change will simplify the provision and allow FCIC to timely provide 
area-specific dates, allow for future program expansion, and provide 
greater flexibility to adjust end of insurance period dates to new or 
evolving regional conditions as needed in the future.
    11. Section 11--In section 11(b), FCIC is removing the formula for 
calculating a replanting payment and replacing it with the phrase 
``dollar amount of the replant payment is specified in the Special 
Provisions'' because the costs for replanting the crop may vary by 
county or region and this change gives FCIC the flexibility to ensure 
that the costs of replanting are reflected in the actuarial documents 
and adjusted as needed.
    12. Section 12--FCIC is decapitalizing the words ``in the'' in the 
section heading for consistency throughout these Crop Provisions. In 
section 12(b), FCIC is adding a comma after ``processor contract'' to 
separate the two requirements. This change provides clarity on the 
issue of provision of contracts or corporate resolutions for specific 
entity types: For non-processors, a processor contract is required. For 
insureds who are also processors, a corporate resolution is required.
    13. Section 13--In section 13(c)(1)(iii) FCIC is removing the 
parenthetical following the term ``unharvested production,'' which is 
no longer necessary due to the use of pounds of raw sugar as the basis 
of insurance, removal of stage guarantees, and the inclusion of an 
early harvest factor.
    FCIC is removing section 13(c)(1)(iv), which is unnecessary due to 
the removal of stage guarantees. This also results in the redesignation 
of section 13(c)(1)(v) as section 13(c)(1)(iv).
    In section 13(d) and (e), FCIC is revising the language to clarify 
the determination of production to count by referring to pounds of raw 
sugar and including the use of the raw sugar percentage specified in 
the Special Provisions only if a sugar test is not performed or is not 
deemed acceptable.
    FCIC is adding a new subsection (f) to allow for an ``early harvest 
factor.'' The addition of this factor comes in response to a lack of 
clarity in the event of the periodic decisions by sugar beet processors 
to request a portion of their contracted acres be harvested early. In 
these events, the actual harvested beets are often lower in weight and 
sugar content, resulting in what could appear to be a production loss. 
This provision provides more clear guidance for insurance providers in 
the event of early harvested acres and eliminates the unnecessary 
reduction in grower APH. The adjustment for early harvest will not be 
made if the sugar beets are damaged by an insurable cause of loss and 
leaving the crop in the field would reduce production, and cannot 
result in a production to count in excess of the insured's actual 
production history. Further, the adjustment will only be made in the 
event that the portion of a unit harvested early exceeds a percentage 
of acreage threshold specified in the actuarial documents.
    14. Section 14--FCIC is removing and reserving this section. This 
section was necessary because of the distinction between certain 
counties in California. Now that insurance is no longer available in 
those counties, the provision is no longer necessary and the late 
planting provisions in the Basic Provisions will apply.
    15. Section 15--FCIC is removing section 15(a), because insurance 
is no longer available for those counties that

[[Page 45537]]

previously had a July 15 contract change date.
Effective Date
    The FCIC is issuing this final rule without opportunity for prior 
notice and comment. The Administrative Procedure Act (APA) exempts 
rules ``relating to agency management or personnel or to public 
property, loans, grants, benefits, or contracts'' from the statutory 
requirement for prior notice and opportunity for public comment (5 
U.S.C. 553(a)(2)). A Federal crop insurance policy is a contract and is 
thus exempt from APA notice-and-comment procedures. Previously, changes 
made to the Federal crop insurance policies codified in the Code of 
Federal Regulations were required to be implemented through the notice-
and-comment rulemaking process. Such action was not required by the 
APA, which exempts contracts. Rather, the requirement originated with a 
notice USDA published in the Federal Register on July 24, 1971 (36 FR 
13804), stating that the Department of Agriculture would, to the 
maximum extent practicable, use the notice-and-comment rulemaking 
process when making program changes, including those involving 
contracts. FCIC complied with this notice over the subsequent years. On 
October 28, 2013, USDA published a notice in the Federal Register (78 
FR 64194) rescinding the prior notice, thereby making contracts again 
exempt from the notice-and-comment rulemaking process. This exemption 
applies to the 30-day notice prior to implementation of a rule. 
Therefore, the policy changes made by this final rule are effective 
upon publication in the Federal Register.
    However, FCIC is providing a 30-day comment period and invites 
interested persons to participate in this rulemaking by submitting 
written comments. FCIC will consider the comments received and may 
conduct additional rulemaking based on the comments.
    The changes will be effective for the 2019 and succeeding crop 
years in states with a November 30 contract change date and for the 
2020 and succeeding crop years in all other states.

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 not significant under Executive Order 12866, ``Regulatory Planning 
and Review,'' and, therefore, OMB has not reviewed this rule. The rule 
is not subject to Executive Order 13771, ``Reducing Regulation and 
Controlling Regulatory Costs.''

Paperwork Reduction Act of 1995

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

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act of 2002, 
to promote the use of the internet and other information technologies 
to provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the UMRA) for State, local, and 
tribal governments or the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal Government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes. FCIC has assessed the 
impact of this rule on Indian tribes and determined that this rule does 
not, to our knowledge, have tribal implications that require tribal 
consultation under E.O. 13175. If a Tribe requests consultation, FCIC 
will work with the Office of Tribal Relations to ensure meaningful 
consultation is provided where changes, additions and modifications 
identified herein are not expressly mandated by Congress.

Regulatory Flexibility Act

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

[[Page 45538]]

Federal Assistance Program

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

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See 2 CFR part 415, subpart C.

Executive Order 12988

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

Environmental Evaluation

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

List of Subjects in 7 CFR Part 457

    Crop insurance, Sugar Beet, Reporting and recordkeeping 
requirements.

Final Rule

    Accordingly, as set forth in the preamble, FCIC amends 7 CFR part 
457 effective for the 2019 and succeeding crop years in states with a 
November 30 contract change date and for the 2020 and succeeding crop 
years in all other states as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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


0
2. Amend Sec.  457.109 as follows:
0
a. In the introductory text remove the phrase ``for the 2017 and 
succeeding crop years in counties with a contract change date of 
November 30, and for the 2018 and succeeding crop years in counties 
with a contract change date of April 30'' and add the phrase ``for 
effective for the 2019 and succeeding crop years in states with a 
November 30 contract change date and for the 2020 and succeeding crop 
years in all other states.'' in its place;
0
b. Remove the undesignated paragraph immediately following the heading 
``Sugar Beet Crop Provisions'';
0
c. In section 1:
0
i. Revise the definition of ``crop year'';
0
ii. Remove the definition of ``local market price'';
0
iii. Revise definition of ``practical to replant'';
0
iv. Add a definition of ``processor contract'' in alphabetical order; 
and
0
v. Remove the definitions of ``production guarantee (per acre)'', 
``standardized ton'', ``sugar beet processor contract'', ``thinning'', 
and ``ton'';
0
d. In section 2 remove the term ``sugar beet'' in all three instances;
0
e. Revise sections 3 through 5:
0
f. Remove and reserve section 6;
0
g. In section 7:
0
i. In paragraph (a) introductory text, remove the parenthetical 
``(Insured Crop)''; and
0
ii. Revise paragraphs (a)(3) and (b)(2);
0
h. In section 8:
0
i. In the introductory text, remove the parenthetical ``(Insurable 
Acreage)''; and
0
ii. In paragraph (b) remove the parenthetical ``(or within 30 days of 
initial planting for those counties without a final planting date)'';
0
i. Revise section 9;
0
j. In section 10 introductory text, remove the parenthetical ``(Causes 
of Loss)'';
0
k. In section 11:
0
i. In paragraph (a), remove the parenthetical ``(Replanting Payment)'' 
and the term ``final stage''; and
0
ii. Revise paragraph (b);
0
l. In section 12:
0
i. In the introductory text, remove parenthetical ``(Duties in the 
Event of Damage or Loss)''; and
0
ii. Revise paragraph (b);
0
m. In section 13:
0
i. In paragraph (c) introductory text, remove the parenthetical ``(in 
standardized tons)'';
0
ii. In paragraph (c)(1)(iii), remove the parenthetical ``(unharvested 
production that is appraised prior to the earliest delivery date that 
the processor accepts harvested production will not be eligible for a 
conversion to standardized tons in accordance with section 13 (d) and 
(e))'';
0
iii. Remove paragraph (c)(1)(iv);
0
iv. Redesignate paragraph (c)(1)(v) as (c)(1)(iv);
0
v. Revise paragraphs (d) and (e); and
0
vi. Add paragraph (f);
0
n. Remove and reserve section 14; and
0
o. Revise section 15.
    The revisions and additions read as follows:


Sec.  457.109  Sugar Beet Crop Insurance Provisions.

* * * * *
    1. Definitions
    Crop year. The period within which the sugar beets are normally 
grown, which is designated by the calendar year in which the sugar 
beets are normally harvested.
* * * * *
    Practical to replant. In addition to the definition in section 1 of 
the Basic Provisions, it will not be considered practical to replant if 
production from the replanted acreage cannot be delivered under the 
terms of the processor contract, or 30 days after the initial planting 
date for all counties where a late planting period is not applicable, 
unless replanting is generally occurring in the area.
* * * * *
    Processor contract. A written agreement between you and the 
processor, executed on or before the acreage reporting date, which is 
in effect for the crop year, containing at a minimum:
    (1) Your commitment to plant, grow, and deliver the sugar beet 
production to the processor;
    (2) The processor's commitment to purchase the production stated in 
the contract; and
    (3) A price or formula for a price based on third party data that 
will be paid to you for the production stated in the contract.
* * * * *
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
    (a) In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election for all the sugar 
beets in the county insured under this policy.
    (b) The production guarantee will be expressed in pounds of raw 
sugar.
    4. Contract Changes
    In accordance with the provisions of section 4 of the Basic 
Provisions, the contract change date is April 30 preceding the 
cancellation date for California and November 30 preceding the 
cancellation date for all other states.
    5. Cancellation and Termination Dates
    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are August 31 for California and 
March 15 for all other states.
* * * * *
    7. Insured Crop
* * * * *
    (a) * * *
    (3) That are grown under a contract and are not excluded from the 
processor

[[Page 45539]]

contract at any time during the crop year; and
* * * * *
    (b) * * *
    (2) The Board of Directors or officers of the processor must have 
adopted and executed a corporate resolution that contains essentially 
the same terms as a processor contract. Such corporate resolution will 
be considered a processor contract under the terms of the sugar beet 
crop insurance policy;
* * * * *
    9. Insurance Period
    In accordance with section 11 of the Basic Provisions, the dates 
for the end of insurance period are contained in the actuarial 
documents.
* * * * *
    11. Replanting Payments
* * * * *
    (b) The dollar amount of the replant payment is specified in the 
Special Provisions.
* * * * *
    12. Duties in the Event of Damage or Loss
* * * * *
    (b) You must provide a copy of your processor contract, or 
corporate resolution if you are the processor.
    13. Settlement of Claim
* * * * *
    (d) Harvested production or unharvested production that is 
appraised after the earliest delivery date that the processor accepts 
harvested production and that meets the minimum acceptable standards 
contained in the processor contract or corporate resolution will be 
converted to pounds of raw sugar by multiplying the tons of such 
production by 2,000 and by the average percentage of raw sugar to 
determine the production to count. The average percentage of raw sugar 
will be determined from tests performed by the processor at the time of 
delivery.
    (1) If individual tests of raw sugar content are not made at the 
time of delivery, the average percent of raw sugar may be based on the 
results of previous tests performed by the processor during the crop 
year if it is determined that such results are representative of the 
total production.
    (2) If not representative, the average percent of raw sugar will 
equal the raw sugar content percent shown in the Special Provisions.
    (e) Harvested production or unharvested production that is 
appraised after the earliest delivery date that the processor accepts 
harvested production and that does not meet the minimum acceptable 
standards contained in the processor contract or corporate resolution 
due to an insured peril will be converted to pounds of raw sugar by 
multiplying the tons of such damaged production by 2,000 and by the 
average percent of raw sugar contained in such production.
    (1) If individual tests of raw sugar content are not made at the 
time of delivery, the average percent of raw sugar may be based on the 
results of previous tests performed by the processor during the crop 
year if it is determined that such results are representative of the 
total production.
    (2) If not representative, the average percent of raw sugar will 
equal the raw sugar content percent shown in the Special Provisions.
    (f) Production lost due to harvest prior to full maturity. If the 
percentage of insured acreage in the unit harvested prior to full 
maturity exceeds the threshold specified in the actuarial documents, 
production to count from such acreage will be determined by increasing 
the amount of harvested production by 1 percent per day for each day 
the sugar beets were harvested prior to the date the sugar beets would 
have reached full maturity.
    (1) The date the sugar beets would have reached full maturity will 
be considered to be 45 days prior to the calendar date for the end of 
the insurance period, unless otherwise specified in the Special 
Provisions.
    (2) This adjustment will not be made if the sugar beets are damaged 
by an insurable cause of loss and leaving the crop in the field would 
reduce production.
    (3) The adjustment cannot result in production to count in excess 
of the insured's actual production history;
* * * * *
    15. Prevented Planting
    Your prevented planting coverage will be a percentage specified in 
the actuarial documents of your production guarantee for timely planted 
acreage. If you have additional levels of coverage and pay an 
additional premium, you may increase your prevented planting coverage 
if such additional coverage is specified in the actuarial documents.

Martin R. Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2018-19152 Filed 9-7-18; 8:45 am]
 BILLING CODE 3410-08-P
Federal Register / Vol. 83, No. 175 / Monday, September 10, 2018 / Rules and Regulations 45537

previously had a July 15 contract change economic, environmental, public health Executive Order 13175
date. and safety effects, distributive impacts, This rule has been reviewed in
and equity). Executive Order 13563 accordance with the requirements of
Effective Date
emphasized the importance of Executive Order 13175, ‘‘Consultation
The FCIC is issuing this final rule quantifying both costs and benefits, of
without opportunity for prior notice and and Coordination with Indian Tribal
reducing costs, of harmonizing rules, Governments.’’ Executive Order 13175
comment. The Administrative and of promoting flexibility. Executive
Procedure Act (APA) exempts rules requires Federal agencies to consult and
Order 13777, ‘‘Enforcing the Regulatory coordinate with tribes on a government-
‘‘relating to agency management or Reform Agenda,’’ established a federal
personnel or to public property, loans, to-government basis on policies that
policy to alleviate unnecessary have tribal implications, including
grants, benefits, or contracts’’ from the regulatory burdens on the American
statutory requirement for prior notice regulations, legislative comments or
people. The Office of Management and proposed legislation, and other policy
and opportunity for public comment (5 Budget (OMB) designated this rule as
U.S.C. 553(a)(2)). A Federal crop statements or actions that have
not significant under Executive Order substantial direct effects on one or more
insurance policy is a contract and is 12866, ‘‘Regulatory Planning and
thus exempt from APA notice-and- Indian tribes, on the relationship
Review,’’ and, therefore, OMB has not between the Federal Government and
comment procedures. Previously, reviewed this rule. The rule is not
changes made to the Federal crop Indian tribes or on the distribution of
subject to Executive Order 13771, power and responsibilities between the
insurance policies codified in the Code ‘‘Reducing Regulation and Controlling
of Federal Regulations were required to Federal Government and Indian tribes.
Regulatory Costs.’’ FCIC has assessed the impact of this
be implemented through the notice-and-
comment rulemaking process. Such Paperwork Reduction Act of 1995 rule on Indian tribes and determined
action was not required by the APA, that this rule does not, to our
Pursuant to the provisions of the knowledge, have tribal implications that
which exempts contracts. Rather, the Paperwork Reduction Act of 1995 (44
requirement originated with a notice require tribal consultation under E.O.
U.S.C. chapter 35, subchapter I), the 13175. If a Tribe requests consultation,
USDA published in the Federal Register
collections of information in this rule FCIC will work with the Office of Tribal
on July 24, 1971 (36 FR 13804), stating
have been approved by OMB under Relations to ensure meaningful
that the Department of Agriculture
control number 0563–0053. consultation is provided where changes,
would, to the maximum extent
practicable, use the notice-and-comment E-Government Act Compliance additions and modifications identified
rulemaking process when making herein are not expressly mandated by
FCIC is committed to complying with Congress.
program changes, including those
the E-Government Act of 2002, to
involving contracts. FCIC complied with Regulatory Flexibility Act
promote the use of the internet and
this notice over the subsequent years.
other information technologies to FCIC certifies that this regulation will
On October 28, 2013, USDA published
provide increased opportunities for not have a significant economic impact
a notice in the Federal Register (78 FR
citizen access to Government on a substantial number of small
64194) rescinding the prior notice,
information and services, and for other entities. Program requirements for the
thereby making contracts again exempt
purposes. Federal crop insurance program are the
from the notice-and-comment
rulemaking process. This exemption Unfunded Mandates Reform Act of same for all producers regardless of the
applies to the 30-day notice prior to 1995 size of their farming operation. For
implementation of a rule. Therefore, the instance, all producers are required to
policy changes made by this final rule Title II of the Unfunded Mandates submit an application and acreage
are effective upon publication in the Reform Act of 1995 (UMRA), establishes report to establish their insurance
Federal Register. requirements for Federal agencies to guarantees and compute premium
However, FCIC is providing a 30-day assess the effects of their regulatory amounts, and all producers are required
comment period and invites interested actions on State, local, and tribal to submit a notice of loss and
persons to participate in this rulemaking governments and the private sector. production information to determine the
by submitting written comments. FCIC This rule contains no Federal mandates indemnity amount for an insured cause
will consider the comments received (under the regulatory provisions of title of crop loss. Whether a producer has 10
and may conduct additional rulemaking II of the UMRA) for State, local, and acres or 1000 acres, there is no
based on the comments. tribal governments or the private sector. difference in the kind of information
The changes will be effective for the Therefore, this rule is not subject to the collected. To ensure crop insurance is
2019 and succeeding crop years in states requirements of sections 202 and 205 of available to small entities, the Federal
with a November 30 contract change UMRA. Crop Insurance Act (FCIA) authorizes
date and for the 2020 and succeeding FCIC to waive collection of
Executive Order 13132
crop years in all other states. administrative fees from limited
It has been determined under section resource farmers. FCIC believes this
Executive Orders 12866, 13563, 13771 1(a) of Executive Order 13132, waiver helps to ensure that small
and 13777 Federalism, that this rule does not have entities are given the same opportunities
Executive Order 12866, ‘‘Regulatory sufficient implications to warrant as large entities to manage their risks
Planning and Review,’’ and Executive consultation with the States. The through the use of crop insurance. A
Order 13563, ‘‘Improving Regulation provisions contained in this rule will Regulatory Flexibility Analysis has not
daltland on DSKBBV9HB2PROD with RULES

and Regulatory Review,’’ direct agencies not have a substantial direct effect on been prepared since this regulation does
to assess all costs and benefits of States, or on the relationship between not have a significant impact on a
available regulatory alternatives and, if the national government and the States, substantial number of small entities,
regulation is necessary, to select or on the distribution of power and and, therefore, this regulation is exempt
regulatory approaches that maximize responsibilities among the various from the provisions of the Regulatory
net benefits (including potential levels of government. Flexibility Act (5 U.S.C. 605).

VerDate Sep<11>2014 16:01 Sep 07, 2018 Jkt 244001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\10SER1.SGM 10SER1
Document Created: 2018-09-08 00:43:31
Document Modified: 2018-09-08 00:43:31
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule with request for comments.
Dates		This final rule is effective November 30, 2018. However, FCIC will accept written comments on this final rule until close of business October 10, 2018. FCIC will consider these comments and make changes to the rule if warranted.
Contact		Chandra Mason, Chief, Policy Administration Branch, Product Administration and Standards Division, Risk Management Agency, United States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, P.O. Box 419205, Kansas City, MO 64141- 6205, telephone (816) 926-7730.
FR Citation		83 FR 45535
RIN Number		0563-AC55
CFR Associated		Crop Insurance; Sugar Beet and Reporting and Recordkeeping Requirements
83 FR 45535 - Common Crop Insurance Regulations; Sugar Beet Crop Insurance Provisions

DEPARTMENT OF AGRICULTUREFederal Crop Insurance Corporation

Federal Register Volume 83, Issue 175 (September 10, 2018)

DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
