Catastrophic Risk Protection Endorsement; Group Risk Plan of Insurance Regulations; and the Common Crop Insurance Regulations, Basic Provisions, 70861-70865 [E8-27845]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Rules and Regulations]
[Pages 70861-70865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27845]



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                                                Federal Register
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Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / 
Rules and Regulations

[[Page 70861]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 402, 407 and 457

RIN 0563-AC19


Catastrophic Risk Protection Endorsement; Group Risk Plan of 
Insurance Regulations; and the Common Crop Insurance Regulations, Basic 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Interim rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Catastrophic Risk Protection Endorsement, the Group Risk Plan of 
Insurance Regulations, and the Common Crop Insurance Regulations, Basic 
Provisions to revise those provisions affected by the changes mandated 
by the Food, Conservation, and Energy Act of 2008 (Farm Bill 2008).

DATES: This rule is effective November 19, 2008. Written comments and 
opinions on this rule will be accepted until the close of business 
January 23, 2009 and will be considered when the rule is to be made 
final.

ADDRESSES: Interested persons are invited to submit comments, titled 
``2008 Farm Bill Interim Rule,'' by any of the following methods:
     By Mail to: Director, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, Beacon Facility--Mail Stop 0812, Room 421, PO Box 419205, 
Kansas City, MO 64141-6205.
     By Express Mail to: Director, Product Administration and 
Standards Division, Risk Management Agency, United States Department of 
Agriculture, Beacon Facility, Stop 0812, 9240 Troost Avenue, Kansas 
City, MO 64131-3055.
     E-Mail: DirectorPDD@rma.usda.gov.
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
    A copy of each response will be available for public inspection and 
copying from 7 a.m. to 4:30 p.m., CST, Monday through Friday, except 
holidays, at 6501 Beacon Drive, Stop 0812, Room 421, Kansas City, MO 
64133-4676.

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

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be non-significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the Office of Management and Budget (OMB).
    The purpose of this rule is to implement changes to the crop 
insurance program as mandated by the Farm Bill 2008. The changes within 
this rule will not have a significant impact on a large number of 
insured producers as follows: (1) Incorporates a new definition of 
``organic crop'' in the Basic Provisions; however, this revision will 
have no impact on organic producers or the insurance coverage currently 
afforded to them; (2) Clarifies that lawsuits by producers for denials 
of claims under section 508(j)(2) of the Act can only be brought 
against FCIC or the Secretary in the United States district court when 
a claim is denied by an approved insurance provider. Prior provisions 
were not clear with respect to when a producer could directly sue FCIC 
and this change simply clarifies such and will have little, if any 
impact, on producers over the current provisions; (3) Allows producers 
with farm-stored production to elect to extend the settlement of their 
claim for up to four months after the last date on which claims may be 
submitted under the policy. This change simply means producers no 
longer have to get the approved insurance provider's approval to delay 
settlement of the claim and is only limited to cases where there is 
farm-stored production, thereby not impacting a large number of insured 
producers; and (4) Provides at the election of the Governor of a State 
designated within the Prairie Pothole National Priority Area, native 
sod acreage located in a county contained within the Prairie Pothole 
National Priority Area that is tilled for the production of an annual 
crop will be ineligible for crop insurance during the first 5 crop 
years of planting. The Prairie Pothole National Priority Area consists 
of specific counties within the States of Iowa, Minnesota, Montana, 
North Dakota or South Dakota. This change will not have a significant 
impact on a large number of insured producers since it only impacts 
specific acreage of native sod tilled by insured producers in certain 
counties in only these 5 States and only at the election of the 
Governors of these States.

Paperwork Reduction Act of 1995

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

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

[[Page 70862]]

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.

Regulatory Flexibility Act

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

Federal Assistance Program

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

Executive Order 12372

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

Executive Order 12988

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

Environmental Evaluation

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

Background

    On May 22, 2008, the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) was enacted. FCIC must revise those provisions of the 
Catastrophic Risk Protection Endorsement (CAT Endorsement), Group Risk 
Plan of Insurance Regulations (GRP), and the Common Crop Insurance 
Regulations Basic Provisions (Basic Provisions) to implement program 
changes mandated by the 2008 Farm Bill and clarify existing policy 
provisions. Provisions in the 2008 Farm Bill that require revisions in 
the regulations are as follows:
    a. Section 12001 of the 2008 Farm Bill contains a definition of 
``organic crop'' that will require this definition to be incorporated 
in the Basic Provisions.
    b. Section 12013 of the 2008 Farm Bill clarifies that lawsuits by 
producers for denials of claims under section 508(j)(2) of the Act can 
only be brought against FCIC or the Secretary in the United States 
district court when a claim is denied by an approved insurance provider 
on behalf of the Federal Crop Insurance Corporation. Prior provisions 
were not clear with respect to when a producer could directly sue FCIC. 
This rule clarifies that it is only if FCIC elects to get involved in 
the claims process or directs the approved insurance provider to pay 
the claim for a certain amount or deny the claim that FCIC can be sued 
by the producer directly. In all other cases, the producer's lawsuit 
would remain only against the approved insurance provider.
    c. Section 12014 of the 2008 Farm Bill allows producers with farm-
stored production to elect to extend the settlement of their claim for 
up to four months after the last date on which claims may be submitted 
under the policy. Currently, claims must be submitted by 60 days after 
the end of the insurance period, unless an extension has been requested 
by the producer and granted by the approved insurance provider. This 
change means that the producers no longer have to get the approved 
insurance provider's approval to delay settlement of the claim. 
However, this delay is limited to cases where there is farmed-stored 
production.
    d. Section 12020 of the 2008 Farm Bill stated that, at the election 
of the Governor of a State designated within the Prairie Pothole 
National Priority Area, native sod acreage located in a county 
contained within the Prairie Pothole National Priority Area that is 
tilled for the production of an annual crop will be ineligible for crop 
insurance during the first 5 crop years of planting. Native sod is 
defined as land on which the plant cover is composed principally of 
native grasses, grass-like plants, forbs, or shrubs suitable for 
grazing and browsing; and that has not been tilled for the production 
of an annual crop as of the date of enactment of the 2008 Farm Bill. 
Areas of 5 acres or less are exempt from the terms of the provision. 
The Prairie Pothole National Priority Area consists of specific 
counties within the States of Iowa, Minnesota, Montana, North Dakota or 
South Dakota as specified on the RMA Web site at https://www.rma.usda.gov/. The 2008 Farm Bill is specific in that, at the 
election of the Governors of these states, any acreage of native sod 
that is tilled for production of an annual crop after the date of 
enactment will be ineligible for insurance for the first 5 crops years 
of planting. Therefore, the Governors of these states will be contacted 
by the RMA and encouraged to make this election by February 15, 2009 
(30 days before the March 15, 2009, sales closing date for the 2009 
crop year) so that insured producers may make timely and appropriate 
insurance decisions with respect to their farming operation. If the 
decision to implement the provisions is made after this date, any 
producer who insured native sod that had been tilled after enactment of 
the 2008 Farm Bill may be required to repay any indemnities or other 
payments made on native sod acreage during the period the acreage is 
ineligible for insurance, and approved insurance providers may be 
required to remove such acreage from the insurance policy and refund 
any premium for such acreage. Further, if a Governor makes an election 
under section 508(o) of the Act to make acreage of native sod planted 
to an annual crop no longer eligible for crop insurance for the 
specified period, such election will be announced by FCIC via a 
Manager's Bulletin and posted on the RMA Web site at https://www.rma.usda.gov/.
    To implement these provisions, FCIC is revising the CAT 
Endorsement, GRP

[[Page 70863]]

policy and the Basic Provisions, and making such other conforming 
amendments as are necessary to incorporate such changes.
    Good cause is shown to make this rule effective upon filing for 
public inspection at the Office of the Federal Register. Good cause to 
make the rule effective upon filing at the Office of the Federal 
Register exists when the 30 day delay in the effective date is 
impracticable, unnecessary, or contrary to the public interest. The 
changes in this rule are statutorily mandated.
    With respect to the provisions of this rule, it would be contrary 
to the public interest to delay its implementation. If FCIC is required 
to delay the implementation of this rule 30 days after the date it is 
published, the provisions of this rule could not be implemented until 
the next crop year for those crops having a contract change date prior 
to the effective date of this publication. This would mean that the 
affected producers would be without the benefits described above for an 
additional year.
    For the reasons stated above, good cause exists to make these 
policy changes effective upon filing with the Office of the Federal 
Register.
    The amendments in this rule are applicable for the 2009 and 
succeeding crop years for all crops with a contract change date on or 
after the effective date of this rule, and for the 2010 and succeeding 
crop years for all crops with a contract change date prior to the 
effective date of this rule.
    1. The specific changes to the Catastrophic Risk Protection 
Endorsement (7 CFR part 402) are as follows:
    a. Section 1--FCIC is deleting the definitions of ``crop of 
economic significance,'' ``insurance is available,'' and ``linkage 
requirement.'' These provisions are only used in relation to the 
linkage requirements. Section 508(b)(7) of the Act and the new disaster 
programs included in the 2008 Farm Bill do require the purchase of crop 
insurance to be eligible for certain USDA benefits. However, the 
question of eligibility is for the other farm programs to enforce, not 
crop insurance. Therefore, those other programs should specify the 
conditions of eligibility, including the requirement to purchase 
insurance. Including it in the crop insurance policy is not effective 
because the producer must purchase the policy to know of the linkage 
requirement and by that time the issue is effectively rendered moot. 
Removing provisions dealing with ``linkage'' will also prevent any 
conflicts between the crop insurance policy provisions and other USDA 
program requirements. As a result, FCIC will be removing all provisions 
relating to linkage from the policy;
     b. Section 2--FCIC is removing section 2(a)(1) because the General 
Crop Insurance Policy (7 CFR 401.8) referenced in these provisions no 
longer exists;
    c. Section 4--FCIC is removing section 4(a) because the provisions 
were only relevant for the 1995 through 1998 crop years and are no 
longer applicable.
    FCIC is also revising sections 4(b) and (c) (redesignated sections 
4(a) and (b)) to remove the reference to different catastrophic risk 
protection (CAT) coverage levels for the 1995 through 1998 crop years 
versus the 1999 and succeeding crop years;
    d. Section 6--FCIC is revising section 6(e) to remove the reference 
to section 12. Section 12 is removed by this rule because, as stated 
above, any requirement that the producer obtain crop insurance to be 
eligible for another USDA program benefit is more appropriately 
contained in the rules for such program, not the crop insurance policy; 
therefore, this reference is no longer needed;
    e. Section 7--FCIC is removing current section 7(b) because tobacco 
marketing cards are no longer being used by the Farm Service Agency.
    FCIC is revising redesignated section 7(b) to remove the reference 
to linkage requirements. As stated above, any requirement that the 
producer obtain crop insurance to be eligible for another USDA program 
benefit is more appropriately contained in the rules for such program, 
not the crop insurance policy;
    f. FCIC is removing current section 9(b) because section 35 of the 
Basic Provisions contains similar provisions. Therefore, this language 
is redundant;
    g. Section 10--FCIC is revising section 10(b) to remove provisions 
indicating a new application is required after a policy has been 
voided. When a policy is void, it means no coverage is in place for a 
certain crop year, but does not automatically mean the policy is 
canceled or terminated for succeeding crop years. FCIC is also removing 
provisions referring to the waiver of disaster assistance because the 
waiver is no longer being used by the Farm Service Agency;
    h. Section 11--FCIC is revising section 11(a) to remove the 
reference to the Late Planting Agreement Option because the option no 
longer exists; and
    i. FCIC is removing section 12 because, as stated above, any 
requirement that the producer obtain crop insurance to be eligible for 
another USDA program benefit is more appropriately contained in the 
rules for such program, not the crop insurance policy. This will 
prevent any conflicts between the crop insurance policy provisions and 
other USDA program requirements.
    2. The specific changes to the Group Risk Plan of Insurance 
Regulations (7 CFR part 407) are as follows:
    a. Section 1--FCIC is adding the definition of ``native sod'' and 
``Prairie Pothole National Priority Area'' consistent with section 
12020 of the 2008 Farm Bill. FCIC is also adding the definition of 
``organic crop'' and revising the definition of ``organic farming 
practice'' consistent with section 12001 of the 2008 Farm Bill;
    b. Section 3--FCIC is adding a new section 3(d) to specify when 
native sod is ineligible for crop insurance in accordance with section 
12020 of the 2008 Farm Bill;
    c. Section 16 [Reinsured policy]--FCIC is revising section 16(e) to 
specify lawsuits must be filed in the United States district court when 
an approved insurance provider denies a claim on behalf of the Federal 
Crop Insurance Corporation consistent with section 12013 of the 2008 
Farm Bill; and
    d. Section 20--FCIC is removing this section and reserving it 
because it relates to the linkage requirements that the producer obtain 
crop insurance to be eligible for another USDA program benefit because 
such provisions are more appropriately contained in the rules for such 
program, not the crop insurance policy.
    3. The specific changes to the Common Crop Insurance Regulations, 
Basic Provisions (7 CFR part 457) are as follows:
    a. Section 1--FCIC is revising the definition of ``catastrophic 
risk protection'' to remove the language pertaining to the requirement 
for CAT coverage to be eligible for other USDA programs and the waiver 
of disaster assistance because the waiver is no longer being used by 
the Farm Service Agency. FCIC is adding the definition of ``native 
sod'' and ``Prairie Pothole National Priority Area'' consistent with 
section 12020 of the 2008 Farm Bill. FCIC is also adding the definition 
of ``organic crop'' and revising the definition of ``organic farming 
practice'' consistent with section 12001 of the 2008 Farm Bill;
    b. Section 3--FCIC is removing the language referring to linkage 
and crops of economic significance in section 3(b)(1) because, as 
stated above, any requirement that the producer obtain crop insurance 
to be eligible for another USDA program benefit is more

[[Page 70864]]

appropriately contained in the rules for such program, not the crop 
insurance policy;
    c. Section 9--FCIC is adding a new section 9(e) to specify when 
native sod is ineligible for crop insurance consistent with section 
12020 of the 2008 Farm Bill;
    d. Section 14--FCIC is revising section 14(c) (Your Duties) to 
specify producers with farm-stored production can elect to extend the 
settlement of their claim for up to four months after the last date on 
which claims may be submitted under the policy consistent with section 
12014 of the 2008 Farm Bill;
    e. Section 20 [Reinsured Policies]--FCIC is revising section 20(e) 
to specify lawsuits must be filed in the United States district court 
when an approved insurance provider denies a claim on behalf of the 
Federal Crop Insurance Corporation consistent with section 12013 of the 
2008 Farm Bill; and
    f. Section 35--FCIC is removing the reference to an additional 
coverage plan of insurance in section 35(a). With the removal of 
section 9(b) of the Catastrophic Risk Protection Endorsement, the 
language in section 35(a) will apply to both catastrophic risk 
protection and additional levels of coverage.

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

    Crop insurance, Reporting and recordkeeping requirements.

Interim Rule

0
Accordingly, as set forth in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR parts 402, 407 and 457 as follows:

PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT

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

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


0
2. Amend Sec.  402.4 as follows:
0
a. Amend section 1 by removing the definitions of ``crop of economic 
significance;'' ``insurance is available;'' and ``linkage 
requirement;''
0
b. Amend section 2 by removing section 2(a)(1) and redesignating 
sections 2(a)(2), (3), and (4) as sections 2(a)(1), (2), and (3), 
respectively;
0
c. Amend section 4 by removing section 4(a) and redesignating sections 
4(b), (c), (d), and (e) as sections 4(a), (b), (c), and (d), 
respectively;
0
d. Amend redesignated section 4(a) by removing the phrase ``for the 
1999 and subsequent crop years,'';
0
e. Revise redesignated section 4(b);
0
f. Amend section 6(e) by removing the phrase ``as set out in section 
12, and all such benefits already received for the crop year must be 
refunded'';
0
g. Amend section 7 by removing section 7(b) and redesignating section 
7(c) as section 7(b);
0
h. Amend redesignated section 7(b) introductory text by removing the 
phrase ``to satisfy linkage requirements'';
0
i. Amend section 9 by removing section 9(b) and redesignating section 
9(a) as introductory text to section 9 (remove the paragraph 
designation ``(a)'');
0
j. Revise section 10(b);
0
k. Amend section 11(a) by removing the phrase ``, except the Late 
Planting Agreement Option''; and
0
l. Remove section 12.
    The revised text reads as follows:


Sec.  402.4  Catastrophic Risk Protection Endorsement Provisions.

* * * * *
    4. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (b) If the crop policy denominates coverage in dollars per acre or 
other measure, or any other alternative method of coverage, such 
coverage will be converted to the amount of coverage that would be 
payable at fifty percent (50%) of your approved yield indemnified at 
fifty-five percent (55%) of the expected market price.
* * * * *
    10. Concealment or Fraud.
* * * * *
    (b) The voidance will be effective for the crop year during which 
any such act or omission occurred.
* * * * *

PART 407--GROUP RISK PLAN OF INSURANCE REGULATIONS

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

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


0
2. Amend Sec.  407.9 as follows:
0
a. Amend section 1 by adding definitions of ``native sod,'' ``organic 
crop,'' and ``Prairie Pothole National Priority Area'' and revising the 
definition of ``organic farming practice;''
0
b. Amend section 3 by adding a new paragraph (d);
0
c. Amend section 16(a) introductory text [Reinsured policy] by adding 
the phrase ``or (e)'' after the phrase ``section 16(d)'';
0
d. Amend section 16(a)(1) introductory text [Reinsured policy] by 
adding the phrase ``or (e)'' after the phrase ``section 16(d)'';
0
e. Revise section 16(e) [Reinsured policy]; and
0
f. Remove and reserve section 20.
    The revised and added text reads as follows:


Sec.  407.9  Group risk plan common policy.

* * * * *
    1. Definitions.
* * * * *
    Native sod. Acreage on which the plant cover is composed 
principally of native grasses, grass-like plants, forbs, or shrubs 
suitable for grazing and browsing, and that has no record of being 
tilled (determined in accordance with FSA records) for the production 
of an annual crop on or before May 22, 2008.
* * * * *
    Organic crop. An agricultural commodity that is organically 
produced consistent with section 2103 of the Organic Foods Production 
Act of 1990 (7 U.S.C. 6502).
    Organic farming practice. A system of plant production practices 
used to produce an organic crop that is approved by a certifying agent 
in accordance with 7 CFR part 205.
* * * * *
    Prairie Pothole National Priority Area. Consists of specific 
counties within the States of Iowa, Minnesota, Montana, North Dakota or 
South Dakota as specified on the RMA Web site at https://www.rma.usda.gov/.
* * * * *
    3. Insured and Insurable Acreage.
* * * * *
    (d) If the Governor of a State designated within the Prairie 
Pothole National Priority Area elects to make section 508(o) of the Act 
effective for the State, any native sod acreage greater than 5 acres 
located in a county contained within the Prairie Pothole National 
Priority Area that has been tilled for the production of an annual crop 
after May 22, 2008, is not insurable for the first 5 crop years of 
planting following the date the native sod acreage is tilled. If the 
Governor makes this election after you have received an indemnity or 
other payment for native sod acreage, you may be required to repay the 
amount received and any premium for such acreage may be refunded to 
you.
* * * * *
    [Reinsured policy]
    16. Mediation, Arbitration, Appeals, and Administrative and 
Judicial Review.
* * * * *

[[Page 70865]]

    (e) Except as provided in section 16(d), if you disagree with any 
other determination made by FCIC or any claim where FCIC is directly 
involved in the claims process or directs us in the resolution of the 
claim, you may obtain an administrative review in accordance with 7 CFR 
part 400, subpart J (administrative review) or appeal in accordance 
with 7 CFR part 11 (appeal).
    (1) If you elect to bring suit after completion of any appeal, such 
suit must be filed against FCIC not later than one year after the date 
of the decision rendered in such appeal.
    (2) Such suit must be brought in the United States district court 
for the district in which the insured acreage is located.
    (3) Under no circumstances can you recover any attorney fees or 
other expenses, or any punitive, compensatory or any other damages from 
FCIC.
* * * * *
    20. [Reserved]
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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


0
2. Amend Sec.  457.8 as follows:
0
a. Amend section 1 by adding the definitions of ``native sod,'' 
``organic crop,'' and ``Prairie Pothole National Priority Area'' and 
revising the definitions of ``catastrophic risk protection'' and 
``organic farming practice;''
0
b. Amend section 3(b)(1) by removing the last sentence;
0
c. Amend section 9 by adding a new paragraph (e);
0
d. Revise section 14(c) (Your Duties);
0
e. Amend section 20(a) introductory text [For Reinsured Policies] by 
adding the phrase ``or (e)'' after the phrase ``section 20(d)'';
0
f. Amend section 20(a)(1) introductory text [For Reinsured Policies] by 
adding the phrase ``or (e)'' after the phrase ``section 20(d)'';
0
g. Revise section 20(e) [For Reinsured Policies]; and
0
h. Amend section 35(a) by removing the phrase ``under an additional 
coverage plan of insurance''.
    The revised and added text reads as follows:


Sec.  457.8  The application and policy.

    1. Definitions.
* * * * *
    Catastrophic risk protection. The minimum level of coverage offered 
by FCIC.
* * * * *
    Native sod. Acreage on which the plant cover is composed 
principally of native grasses, grass-like plants, forbs, or shrubs 
suitable for grazing and browsing, and that has no record of being 
tilled (determined in accordance with FSA records) for the production 
of an annual crop on or before May 22, 2008.
* * * * *
    Organic crop. An agricultural commodity that is organically 
produced consistent with section 2103 of the Organic Foods Production 
Act of 1990 (7 U.S.C. 6502).
    Organic farming practice. A system of plant production practices 
used to produce an organic crop that is approved by a certifying agent 
in accordance with 7 CFR part 205.
* * * * *
    Prairie Pothole National Priority Area. Consists of specific 
counties within the States of Iowa, Minnesota, Montana, North Dakota or 
South Dakota as specified on the RMA Web site at https://www.rma.usda.gov/.
* * * * *
    9. Insurable Acreage.
* * * * *
    (e) Notwithstanding the provisions in section 9(a)(1), if the 
Governor of a State designated within the Prairie Pothole National 
Priority Area elects to make section 508(o) of the Act effective for 
the State, any native sod acreage greater than 5 acres located in a 
county contained within the Prairie Pothole National Priority Area that 
has been tilled for the production of an annual crop after May 22, 
2008, is not insurable for the first 5 crop years of planting following 
the date the native sod acreage is tilled. If the Governor makes this 
election after you have received an indemnity or other payment for 
native sod acreage, you may be required to repay the amount received 
and any premium for such acreage may be refunded to you.
* * * * *
    14. Duties in the Event of Damage, Loss, Abandonment, Destruction, 
or Alternative Use of Crop or Acreage.
    Your Duties--
* * * * *
    (c) In addition to complying with the notice requirements, you must 
submit a claim for indemnity declaring the amount of your loss:
    (1) Not later than 60 days after the end of the insurance period 
unless, prior to the end of the 60 day period, you:
    (i) Request an extension in writing and we agree to such request 
(Extensions will only be granted if the amount of loss cannot be 
determined within such time period because the information needed to 
determine the amount of the loss is not available.); or
    (ii) Have farm-stored production and elect, in writing, to delay 
measurement of your farm-stored production and settlement of any 
potential associated claim for indemnity (Extensions will be granted 
for this purpose up to 180 days after the end of the insurance 
period.); and
    (2) That includes all information we require to settle the claim. 
Failure to submit a claim or provide the required information will 
result in no indemnity, prevented planting payment or replant payment 
(even though no indemnity or other payment is due, you will still be 
required to pay the premium due under the policy for the unit).
* * * * *
    [For Reinsured Policies]
    20. Mediation, Arbitration, Appeal, Reconsideration, and 
Administrative and Judicial Review.
* * * * *
    (e) Except as provided in section 20(d), if you disagree with any 
other determination made by FCIC or any claim where FCIC is directly 
involved in the claims process or directs us in the resolution of the 
claim, you may obtain an administrative review in accordance with 7 CFR 
part 400, subpart J (administrative review) or appeal in accordance 
with 7 CFR part 11 (appeal).
    (1) If you elect to bring suit after completion of any appeal, such 
suit must be filed against FCIC not later than one year after the date 
of the decision rendered in such appeal.
    (2) Such suit must be brought in the United States district court 
for the district in which the insured acreage is located.
    (3) Under no circumstances can you recover any attorney fees or 
other expenses, or any punitive, compensatory or any other damages from 
FCIC.
* * * * *

    Signed in Washington, DC on November 18, 2008.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. E8-27845 Filed 11-19-08; 4:15 pm]
BILLING CODE 3410-08-P