Noninsured Crop Disaster Assistance Program, 21015-21019 [2013-08168]

Download as PDF 21015 Rules and Regulations Federal Register Vol. 78, No. 68 Tuesday, April 9, 2013 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. DEPARTMENT OF AGRICULTURE Commodity Credit Corporation 7 CFR Part 1437 RIN 0560–AI06 Noninsured Crop Disaster Assistance Program Commodity Credit Corporation and Farm Service Agency, USDA. ACTION: Interim Rule. tkelley on DSK3SPTVN1PROD with RULES AGENCY: SUMMARY: The Commodity Credit Corporation (CCC) is amending the regulations for the Noninsured Crop Disaster Assistance Program (NAP) to conform with policies implemented under the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill). The amendments concern requirements for coverage of native sod, increases in service fees, the multiple benefits limitation of the program, payment and income limitations, and eligibility for aquaculture losses caused by drought. Also, the rule makes clarifying amendments regarding the eligibility of wheat, barley, oats, or triticale acreage used for grazing and regarding the eligibility of tropical crops for benefits. The rule also clarifies the eligibility requirements for coverage in tropical regions. The amendments in this rule have already been implemented administratively. DATES: This rule is effective on April 9, 2013. Comments on this rule must be received on or before June 10, 2013. ADDRESSES: We invite you to submit comments on this interim rule. In your comment, please specify RIN 0560–AI06 and include the volume, date, and page number of this issue of the Federal Register. You may submit comments by either of the following methods: • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments. VerDate Mar<15>2010 16:04 Apr 08, 2013 Jkt 229001 • Mail: Steve Peterson, Branch Chief; Disaster Assistance Branch; Production, Emergencies, and Compliance Division; Farm Service Agency; U.S. Department of Agriculture, Mail Stop 0517, 1400 Independence Avenue SW, Washington, DC 20250–0517. Comments may be inspected on www.regulations.gov and at the mail address listed above, in Room 4746–S, between 8:00 a.m. and 4:30 p.m., Monday through Friday, except holidays. A copy of this interim rule is available through the Farm Service Agency (FSA) home page at http:// www.fsa.usda.gov/. FOR FURTHER INFORMATION CONTACT: Steve Peterson; telephone (202) 720– 5172. Persons with disabilities or who require alternative means for communications should contact the USDA Target Center at (202) 720–2600 (voice and TDD). SUPPLEMENTARY INFORMATION: Background NAP is operated by FSA for CCC under the authority section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). Section 196 requires that the Secretary of Agriculture operate NAP to provide coverage equivalent to the catastrophic risk protection otherwise available under section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)). NAP coverage is limited to crops that are commercial or agricultural in nature and for which crop insurance is not available. Qualifying losses must be due to drought, flood, or other natural disaster, as determined by the Secretary. NAP provides financial assistance to producers of ‘‘noninsurable crops’’ when low yields, loss of inventory, or prevented planting occur due to natural disasters. ‘‘Noninsurable crops’’ means, in this instance, crops not covered by the crop insurance program operated by the Risk Management Agency (RMA) of USDA. NAP coverage is not automatic; producers must apply for NAP and pay a service fee at their FSA county office to obtain coverage. NAP covers the amount of loss greater than 50 percent of expected production. The 2008 Farm Bill (Pub. L. No. 110– 246) made a number of NAP changes that were then implemented by FSA administratively. These amendments are required by sections 1206, 12020, PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 12027, 12028, 12033, and 15101 of the 2008 Farm Bill. This rule amends the regulations to be consistent with the 2008 Farm Bill and also makes other clarifying changes. Payment and Income Limitation Changes The general payment limit of $100,000 per participant per year is unchanged by the 2008 Farm Bill, but certain definitions are amended. Specifically, prior to the 2008 Farm Bill, a ‘‘person’’ could include some types of legal entities, while the 2008 Farm Bill defines a ‘‘person’’ as an individual, natural person and not a legal entity. Also, the adjusted gross income limit for NAP eligibility is changed by the 2008 Farm Bill for the 2009 and subsequent crop years such that a person or legal entity with an average adjusted gross nonfarm income that exceeds $500,000, or an average adjusted gross farm income that exceeds $750,000, is ineligible to receive NAP benefits. Similar changes required by the 2008 Farm Bill were already made for other FSA and CCC programs in separate rulemakings. Prior to 2009, there was also a $2 million eligibility-forpayments cap tied to adjusted gross revenue (as opposed to adjusted gross income) for NAP. That cap is removed with the 2008 Farm Bill, and is therefore removed in this rule. This rule amends the regulations to be consistent with the 2008 Farm Bill; the payment and income limitations as specified have already been implemented administratively. Native Sod Requirements The 2008 Farm Bill includes new native sod provisions. Under those provisions, the Governor of a State in the Prairie Pothole National Priority Area (specific counties within the States of Iowa, Minnesota, Montana, North Dakota, and South Dakota) may ‘‘elect’’ that native sod acreage that is tilled for the production of an annual crop will be ineligible for Federal crop insurance and for NAP benefits during the first 5 crop years of planting that annual crop. The NAP regulations are being amended accordingly to add those provisions, as required by the 2008 Farm Bill. So far, no Governor has made that election. This rule also adds a definition of ‘‘native sod,’’ consistent with the 2008 Farm Bill. E:\FR\FM\09APR1.SGM 09APR1 21016 Federal Register / Vol. 78, No. 68 / Tuesday, April 9, 2013 / Rules and Regulations Eligible Aquaculture Drought Losses This rule amends the regulations to reflect that, as specified 2008 Farm Bill, drought losses will be covered for aquaculture. Before the 2008 Farm Bill, that coverage was not available and those losses were therefore ineligible for payment. Service Fee Increase The 2008 Farm Bill also provides for increased NAP service fees. Those increased fees have been implemented administratively. The rule amends the regulations to reflect the increased fees. Multiple Benefits Exclusion FSA programs generally have a provision prohibiting producers from receiving payments from multiple programs for the same loss. However, most of the FSA disaster assistance programs authorized by the 2008 Farm Bill have an eligibility requirement that the applicant must have obtained crop insurance for all crops for which coverage was available, or NAP coverage if crop insurance was not available. If such coverage was not obtained, then the applicant may not be eligible for those disaster assistance programs. FSA has determined, therefore, that such programs were not intended to be covered by the general exclusion on multiple benefits as specified in the 2008 Farm Bill. Those provisions specify that NAP payments cannot be received for losses covered by other programs. However, applying the multiple benefits exclusion in the case of NAP coverage and disaster benefits would be meaningless or produce results that were not intended. The program has been operated accordingly and this rule amends the regulations to specifically exclude the permanent disaster assistance program benefits from the limitation on multiple benefits. Also, the amended regulations specify, consistent with actual practice, that certain FSA emergency loans are not considered multiple benefits and thus are not subject to the multiple benefit exclusion in the 2008 Farm Bill provisions that apply to NAP. tkelley on DSK3SPTVN1PROD with RULES Grazed Acreage Ineligible for NAP— Conforming Change This rule amends the regulations to reflect the 2008 Farm Bill provision that specifies that grazed-out wheat, barley, oats, or triticale crop acreage is ineligible for NAP payments. The ineligibility is for land where the producer has applied for grazing payments in lieu of a Loan Deficiency Payment (LDP) under other provisions of the 2008 Farm Bill. This limit is also VerDate Mar<15>2010 16:04 Apr 08, 2013 Jkt 229001 addressed in the current LDP regulations. Miscellaneous Clarifying Changes This rule also makes certain clarifying changes. This rule amends § 1437.9, ‘‘Causes of Loss,’’ to specify that inadequacy of irrigation as a condition for crops other than tree crops and perennials will be measured at the time of planting, not the beginning of the crop year. This amendment is made to more precisely test the cause of loss and reflects current policy since the lack of irrigation could not have been the source of the loss if there was water available at the time of planting (irrespective of whether there was or was not water available earlier in the crop year). This rule amends § 1437.301 ‘‘Value Loss,’’ and § 1437.305, ‘‘Ornamental Nursery,’’ to reflect changes in the definition of the period of time that constitutes a particular crop year for ornamental nursery. The change conforms with RMA crop insurance policy, consistent with the general purpose of NAP to supplement RMA coverage. That goal is facilitated by adopting similar policies for issues that appear in both programs. This is a technical change since a loss will be covered irrespective of when the loss occurs and this involves pinpointing the loss to a particular crop year. This rule amends § 1437.302, ‘‘Determining Payments,’’ to correct cross-references within that section. This rule amends § 1437.105, ‘‘Determining Payments for Low Yield,’’ to correct an error. The correction, which does not reduce payments for producers, corrects how salvage value is used in the calculation of payment. References to specific tropical regions and former territories are amended throughout subpart F ‘‘Determining Coverage in the Tropical Region.’’ The purpose of the amendments is to clarify eligibility requirements in tropical regions, while continuing to provide flexibility for the Deputy Administrator to determine where specific requirements apply. This rule amends § 1437.501, ‘‘Applicability; Definition of ‘Tropical Region’ and Additional Definitions,’’ to remove references to specific former U.S. territories in the definition of ‘‘tropical region’’ and to add a more general reference to other regions as determined by the Deputy Administrator. A parallel amendment is made to § 1437.504 ‘‘Notice of Loss for Covered Tropical Crops’’ to remove a reference to specific former territories. These amendments clarify that the requirements to document specific losses in former territories only apply if PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 the Deputy Administrator has determined that those regions are eligible tropical areas. Section 1437.503, ‘‘Covered Losses and Recordkeeping Requirements for Covered Tropical Crops,’’ is amended to add unspecified other tropical areas to the list of tropical regions for which the causes of loss (including value loss, prevented planting, and low yield) are the same as those as specified for nontropical crops in § 1437.9. The previous regulation covers only hurricanes, typhoons, and named tropical storms for these tropical regions, except as otherwise approved by the Deputy Administrator. This change reflects that the Deputy Administrator has routinely approved prevented planting, low yield, and other common losses in current U.S. territories and possessions, including Guam, American Samoa, and the Northern Mariana Islands, that are not specified in § 1437.503. This rule amends § 1437.505, ‘‘Application for Payment for the Tropical Region,’’ to add Guam, American Samoa, and the Northern Mariana Islands to the list of tropical regions for which producers are required to file an application for payment by the later of the date on which the notice of loss is filed or the date of the completion of harvest for the specific crop acreage that existed at the time of loss for which the notice of loss was filed. Previously, the current regulation, absent a waiver, required producers in Guam, American Samoa, and the Northern Mariana Islands to file an application for payment at the same time as the filing of the notice of loss because it was anticipated that the eligible causes of loss (hurricanes, typhoons, and named tropical storms in those areas) would reflect a 100 percent loss. Therefore, it made sense, and was cost efficient, to have the application for payments and verification made at the same time that the loss occurred. That is not necessarily the case for the common loss causes added with this rule. Losses may increase in the period after the actual disaster. This change will allow producers of tropical crops in those regions to file an application for payment upon completion of harvest in the case of low yield due to common loss causes as amended in § 1437.503. Of a more general nature, the previous regulations provided that, except as may be further limited by the Deputy Administrator, the tropical areas that would be covered would include certain former territories of the United States. The ‘‘except as may be further limited’’ language was provided to leave open the actual eligibility of losses in those areas. This rule provides greater clarity by not E:\FR\FM\09APR1.SGM 09APR1 Federal Register / Vol. 78, No. 68 / Tuesday, April 9, 2013 / Rules and Regulations tkelley on DSK3SPTVN1PROD with RULES listing these specific areas as eligible ‘‘except as limited,’’ but instead referring generally to other areas that may be eligible. This makes it clearer that tropical areas not specifically listed are eligible only if determined by the Deputy Administrator. NAP eligibility in the former territories requires a flexible approach by FSA, in consultation with RMA. Generally NAP is authorized to provide coverage in those places in which RMA crop insurance is not available. Under the RMA statutory authority, crop insurance could theoretically be made available in the territories and possessions of the United States and in certain former territories. However, RMA crop insurance is generally made available for crops that have a certain history and market presence. Because of those requirements, crop insurance is generally unavailable outside the 50 States and Puerto Rico on that ground (lack of history and market presence) rather than necessarily on a determination not to extend coverage to a geographical region. Should there be a request for NAP coverage outside those areas covered by RMA, FSA would have to consider whether RMA coverage would, if the conditions were otherwise appropriate, be made available in those areas. The regulations, as clarified, leave out specific references to the former territories and generally leave the scope of coverage in the former territories to the Deputy Administrator to determine or reconsider in light of the considerations noted above and in consultation with RMA as appropriate. That is, the regulations are designed to provide the Deputy Administrator with flexibility on that issue. interest to delay the effective date of this rule. All of the provisions in this rule have already been implemented administratively and all of the substantive changes are required by law. The points of clarification, which are not required by the 2008 Farm Bill, should not have an adverse impact on producers and are merely a restatement of current policy or of current rules. By issuing these regulations as an interim rule, FSA provides an opportunity for the public to comment. FSA will consider those comments to determine if further change or clarification is needed or to the extent that a commenter disagrees with the assessment of what statutory law requires with respect to the operation of the program. Notice and Comment In general, the Administrative Procedures Act (APA, 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. Such notice is not required when the agency for good cause finds that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. This rule implements provisions of the 2008 Farm Bill for which FSA has no discretion, and makes minor clarifications that are consistent with existing policy and implementation. Therefore, FSA finds that it would be impractical and contrary to the public Clarity of the Regulations VerDate Mar<15>2010 16:04 Apr 08, 2013 Jkt 229001 Executive Orders 12866 and 13563 Executive Order 12866, ‘‘Regulatory Planning and Review,’’ and Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects, distributive impacts, and equity). Executive Order 13563 emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget (OMB) designated this rule as not significant under Executive Order 12866, ‘‘Regulatory Planning and Review,’’ and therefore has not reviewed this rule. Executive Order 12866, as supplemented by Executive Order 13563, requires each agency to write all rules in plain language. In addition to your substantive comments on this interim rule, we invite your comments on how to make it easier to understand. For example: • Are the requirements in the rule clearly stated? Are the scope and intent of the rule clear? • Does the rule contain technical language or jargon that is not clear? • Is the material logically organized? • Would changing the grouping or order of sections or adding headings make the rule easier to understand? • Could we improve clarity by adding tables, lists, or diagrams? • Would more, but shorter, sections be better? Are there specific sections that are too long or confusing? PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 21017 • What else could we do to make the rule easier to understand? 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), generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to the notice and comment rulemaking requirements under the Administrative Procedure Act (5 U.S.C. 553) or any other law, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. FSA has determined that this rule will not have a significant impact on a substantial number of small entities. Provisions in this rule would not impact a substantial number of small entities to a greater extent than large entities. Limited resource farmers and ranchers will continue to be exempt from the service fees specified in this rule. Consequently, FSA has not prepared a regulatory flexibility analysis. Environmental Review FSA has determined that the provisions identified in this interim rule are administrative in nature, intended to improve the effectiveness and efficiency of the program without changing the basic scope of goals and does not constitute a major Federal action that would significantly affect the quality of the human environment. Therefore, 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 FSA regulations for compliance with NEPA (7 CFR part 799), no environmental assessment or environmental impact statement will be prepared. Executive Order 12372 Executive Order 12372, ‘‘Intergovernmental Review of Federal Programs,’’ requires consultation with State and local officials. 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 set forth in the 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 E:\FR\FM\09APR1.SGM 09APR1 21018 Federal Register / Vol. 78, No. 68 / Tuesday, April 9, 2013 / Rules and Regulations intergovernmental consultation with State and local officials. Unfunded Mandates Reform Act of 1995 (UMRA) Executive Order 12988 This rule has been reviewed under Executive Order 12988, ‘‘Civil Justice Reform.’’ The provisions of this rule will have preemptive effect with respect to any State or local laws, regulations, or policies that conflict with such provision or which otherwise impede their full implementation. However, it is not expected that with respect any current laws that there will be any such conflict. The rule will not have retroactive effect. Before any judicial action may be brought regarding this rule, all administrative remedies must be exhausted. 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 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 the UMRA. tkelley on DSK3SPTVN1PROD with RULES 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 national 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.’’ Executive Order 13175 imposes requirements on the development of regulatory policies that have Tribal implications or preempt Tribal laws. The policies contained in this rule do not, to our knowledge, preempt Tribal law. This rule was included in the October through December, 2010, Joint Regional Consultation Strategy facilitated by USDA that consolidated consultation efforts of 70 rules from the 2008 Farm Bill. USDA sent senior level agency staff to seven regional locations and consulted with Tribal leadership in each region on the rules. No issues about this rule were raised during that consultation. FSA will continue to respond in a timely and meaningful manner to all Tribal government requests for Tribal consultation about this rule and its implementation and will provide additional avenues, such as webinars and teleconferences, as requested, for collaborative conversations with Tribal leaders and their representatives about ways to improve this program and rule in Indian Country. VerDate Mar<15>2010 16:04 Apr 08, 2013 Jkt 229001 Subpart A—General Provisions 2. Amend § 1437.3 by adding, in alphabetical order, a definition for ‘‘native sod’’ to read as follows: ■ § 1437.3 Definitions. * * * * * Native sod means land on which the plant cover is composed principally of native grasses, grasslike plants, forbs, or shrubs suitable for grazing and browsing; and that has not been tilled for the production of an annual crop as of June 18, 2008. * * * * * ■ 3. Amend § 1437.4 by adding paragraphs (c), (d), and (e) to read as follows: § 1437.4 Eligibility. The amendments to 7 CFR part 1437 in this interim rule require no new information collection or changes to the currently approved information collection under OMB control number 0560–0175. * * * * (c) Except as specified in paragraph (d) of this section, the Governor of a State in the Prairie Pothole National Priority Area (Iowa, Minnesota, Montana, North Dakota, and South Dakota) may specify that native sod acreage that is tilled for the production of an annual crop will be ineligible for NAP benefits during the first 5 crop years of planting. (d) If the producer’s total native sod acreage is 5 acres or less, the eligibility restrictions for native sod specified in paragraph (c) of this section will not apply. (e) Wheat, barley, oats, or triticale crop acreage subject to an application for grazing payments under the program specified in part 1421, subpart D of this chapter, or successor program, is ineligible for NAP payments. E-Government Act Compliance § 1437.6 CCC is 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. ■ ■ Federal Assistance Programs The title and number of the Federal Assistance Program, as found in the Catalog of Federal Domestic Assistance, to which this rule applies, is: Noninsured Assistance 10.451. Paperwork Reduction Act of 1995 List of Subjects in 7 CFR part 1437 Agricultural commodities, Crop insurance, Disaster assistance, Fraud, Penalties, Reporting and recordkeeping requirements. For the reasons discussed above, 7 CFR part 1437 is amended as follows: PART 1437—NONINSURED CROP DISASTER ASSISTANCE PROGRAM 1. The authority citation for part 1437 is revised to read as follows: ■ Authority: 7 U.S.C. 1501–1508 and 7333; 15 U.S.C. 714–714m; 19 U.S.C. 2497, and 48 U.S.C. 1469a. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 * [Amended] 4. Amend § 1437.6(b), as follows: a. Remove the amount ‘‘$100’’, and add the amount ‘‘$250’’, in its place; ■ b. Remove the amount ‘‘$300’’, and add the amount ‘‘$750’’, in its place; and ■ c. Remove the amount ‘‘$900’’, and add the amount ‘‘$1875’’, in its place. § 1437.9 [Amended] 5. Amend § 1437.9 as follows: a. In paragraph (e)(6), remove the words ‘‘the beginning of the crop year’’ and add the words ‘‘time of planting’’, in their place, and ■ b. In paragraph (e)(7), remove the words ‘‘A loss’’ and add the words ‘‘Except as specified in § 1437.303, a loss’’, in their place. ■ 6. Revise § 1437.13(b) to read as follows: ■ ■ § 1437.13 Multiple benefits. * * E:\FR\FM\09APR1.SGM * 09APR1 * * Federal Register / Vol. 78, No. 68 / Tuesday, April 9, 2013 / Rules and Regulations (b) The limitation on multiple benefits specified in paragraph (a) of this section will not apply to: (1) Emergency Loans made under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961– 1970). (2) Supplemental Revenue Assistance Payments Program (SURE) payments as specified in part 760 of this title, (3) Livestock Forage Disaster Program (LFP) payments as specified in part 760 of this title, (4) Tree Assistance Program (TAP) payments as specified in part 760 of this title, or (5) Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) payments as specified in part 760 of this title. * * * * * ■ 7. Amend § 1437.14 as follows: ■ a. Revise paragraphs (a) and (b) introductory text; and ■ b. Remove paragraph (d). The revisions read as follows: § 1437.14 Payment and income limitations. (a) The provisions of part 1400 of this title apply to NAP. (b) For the 2008 and earlier crop years for which NAP was authorized, NAP payments will not be made to a person who has qualifying gross revenues in excess of $2 million for the most recent tax year preceding the year for which assistance is requested. Qualifying gross revenue means: * * * * * Determining payments for low (a) * * * (6) Adding the producer’s share of any salvage value and secondary use and subtracting the result from the result of paragraph (a)(5) of this section. * * * * * 9. Revise § 1437.301(b) to read as follows: tkelley on DSK3SPTVN1PROD with RULES § 1437.301 Value loss. * * * * * (b) The crop year for all value loss crops, except ornamental nursery as specified in § 1437.305, is October 1 through September 30. * * * * * VerDate Mar<15>2010 16:04 Apr 08, 2013 Jkt 229001 * * * * (e) Subtracting the result from paragraph (d) of this section from the producer’s share of any salvage value, if applicable. ■ 11. Amend § 1437.303 by adding paragraph (f) to read as follows: § 1437.303 Aquaculture, including ornamental fish. * * * * * (f) If all other eligibility provisions of this part are determined by FSA to be satisfied, assistance will be provided to producers for eligible NAP aquaculture crop losses that are the direct result of drought. ■ 12. Amend § 1437.305 by adding paragraph (g) to read as follows: § 1437.305 Ornamental nursery. * * * * * (g) For the 2010 and subsequent crops, the crop year for ornamental nursery is June 1 through May 31. [Amended] 15. Amend § 1437.503, in paragraphs (a) and (b), by removing the words ‘‘Hawaii and Puerto Rico’’ both times they appear and adding, in their place, the words ‘‘Hawaii, Puerto Rico, and other areas approved by the Deputy Administrator.’’ ■ § 1437.504 [Amended] 16. In § 1437.504(e), remove the words and punctuation ‘‘, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau’’. ■ 17. Revise § 1437.505 to read as follows: ■ § 1437.505 Application for payment for the tropical region. (a) For producers of covered tropical crops, except as specified in paragraph (b) of this section or approved in individual cases by the Deputy Administrator, an application for payment must be filed at the same time as the filing of the notice of loss required under §§ 1437.10 and 1437.504. (b) For producers in Puerto Rico, Hawaii, Guam, American Samoa, and the Northern Marianna Islands, an application for payment for such crops must be filed by the later of: (1) The date on which the notice of loss is filed in accordance with §§ 1437.10 and 1437.504, or (2) The date of the completion of harvest for the specific crop acreage that existed at the time of loss for which the notice of loss was filed. § 1437.501 Applicability; definition of ‘‘tropical region’’ and additional definitions. Signed on April 2, 2013. Candace Thompson, Acting Executive Vice President, Commodity Credit Corporation, and Acting Administrator, Farm Service Agency. [FR Doc. 2013–08168 Filed 4–8–13; 8:45 am] 13. Revise § 1437.501(b)(1) to read as follows: 8. Revise § 1437.105(a)(6) to read as follows: ■ Determining payments. * § 1437.503 ■ ■ Subpart D—Determining Coverage Using Value § 1437.302 Subpart F—Determining Coverage in the Tropical Region Subpart B—Determining Yield Coverage Using Actual Production History § 1437.105 yield. 10. Amend § 1437.302 as follows: a. In paragraph (b), remove the reference to ‘‘(a)(1)’’ and add a reference to ‘‘(a)’’ in its place; ■ b. In paragraph (c), remove the reference to ‘‘(a)(2)’’ and add a reference to ‘‘(b)’’ in its place; ■ c. In paragraph (d), remove the reference to ‘‘(a)(3)’’ and add a reference to ‘‘(c)’’ in its place; ■ d. Revise paragraph (e); and ■ e. Remove paragraph (f). The revision reads as follows: ■ ■ 21019 * * * * * (b) * * * (1) Tropical region includes, as may be further limited by the Deputy Administrator: Hawaii, American Samoa, Guam, the U.S. Virgin Islands, Puerto Rico, and the territories and possessions of the United States. Other areas may be included as determined by the Deputy Administrator to be required by law. References to specific areas elsewhere in this subpart will not limit the ability of the Deputy Administrator to limit the geographic scope of this subpart. * * * * * § 1437.502 [Amended] 14. In § 1437.502(c), remove the amount ‘‘$100.00’’ and add the amount ‘‘$250’’ in its place. ■ PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 BILLING CODE 3410–05–P FEDERAL RESERVE SYSTEM 12 CFR Part 240 [Docket No. R–1428] RIN 7100–AD 79 Retail Foreign Exchange Transactions (Regulation NN) Board of Governors of the Federal Reserve System. ACTION: Final rule. AGENCY: SUMMARY: The Board of Governors of the Federal Reserve System (‘‘Board’’) is adopting a final rule to permit banking organizations under its supervision to engage in off-exchange transactions in E:\FR\FM\09APR1.SGM 09APR1

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[Federal Register Volume 78, Number 68 (Tuesday, April 9, 2013)]
[Rules and Regulations]
[Pages 21015-21019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08168]



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Federal Register / Vol. 78, No. 68 / Tuesday, April 9, 2013 / Rules 
and Regulations

[[Page 21015]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1437

RIN 0560-AI06


Noninsured Crop Disaster Assistance Program

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

ACTION: Interim Rule.

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

SUMMARY: The Commodity Credit Corporation (CCC) is amending the 
regulations for the Noninsured Crop Disaster Assistance Program (NAP) 
to conform with policies implemented under the Food, Conservation, and 
Energy Act of 2008 (the 2008 Farm Bill). The amendments concern 
requirements for coverage of native sod, increases in service fees, the 
multiple benefits limitation of the program, payment and income 
limitations, and eligibility for aquaculture losses caused by drought. 
Also, the rule makes clarifying amendments regarding the eligibility of 
wheat, barley, oats, or triticale acreage used for grazing and 
regarding the eligibility of tropical crops for benefits. The rule also 
clarifies the eligibility requirements for coverage in tropical 
regions. The amendments in this rule have already been implemented 
administratively.

DATES: This rule is effective on April 9, 2013.
    Comments on this rule must be received on or before June 10, 2013.

ADDRESSES: We invite you to submit comments on this interim rule. In 
your comment, please specify RIN 0560-AI06 and include the volume, 
date, and page number of this issue of the Federal Register. You may 
submit comments by either of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
     Mail: Steve Peterson, Branch Chief; Disaster Assistance 
Branch; Production, Emergencies, and Compliance Division; Farm Service 
Agency; U.S. Department of Agriculture, Mail Stop 0517, 1400 
Independence Avenue SW, Washington, DC 20250-0517.
    Comments may be inspected on www.regulations.gov and at the mail 
address listed above, in Room 4746-S, between 8:00 a.m. and 4:30 p.m., 
Monday through Friday, except holidays. A copy of this interim rule is 
available through the Farm Service Agency (FSA) home page at http://www.fsa.usda.gov/.

FOR FURTHER INFORMATION CONTACT: Steve Peterson; telephone (202) 720-
5172. Persons with disabilities or who require alternative means for 
communications should contact the USDA Target Center at (202) 720-2600 
(voice and TDD).

SUPPLEMENTARY INFORMATION: 

Background

    NAP is operated by FSA for CCC under the authority section 196 of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7333). Section 196 requires that the Secretary of Agriculture operate 
NAP to provide coverage equivalent to the catastrophic risk protection 
otherwise available under section 508(b) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(b)). NAP coverage is limited to crops that are 
commercial or agricultural in nature and for which crop insurance is 
not available. Qualifying losses must be due to drought, flood, or 
other natural disaster, as determined by the Secretary.
    NAP provides financial assistance to producers of ``noninsurable 
crops'' when low yields, loss of inventory, or prevented planting occur 
due to natural disasters. ``Noninsurable crops'' means, in this 
instance, crops not covered by the crop insurance program operated by 
the Risk Management Agency (RMA) of USDA.
    NAP coverage is not automatic; producers must apply for NAP and pay 
a service fee at their FSA county office to obtain coverage. NAP covers 
the amount of loss greater than 50 percent of expected production.
    The 2008 Farm Bill (Pub. L. No. 110-246) made a number of NAP 
changes that were then implemented by FSA administratively. These 
amendments are required by sections 1206, 12020, 12027, 12028, 12033, 
and 15101 of the 2008 Farm Bill. This rule amends the regulations to be 
consistent with the 2008 Farm Bill and also makes other clarifying 
changes.

Payment and Income Limitation Changes

    The general payment limit of $100,000 per participant per year is 
unchanged by the 2008 Farm Bill, but certain definitions are amended. 
Specifically, prior to the 2008 Farm Bill, a ``person'' could include 
some types of legal entities, while the 2008 Farm Bill defines a 
``person'' as an individual, natural person and not a legal entity. 
Also, the adjusted gross income limit for NAP eligibility is changed by 
the 2008 Farm Bill for the 2009 and subsequent crop years such that a 
person or legal entity with an average adjusted gross nonfarm income 
that exceeds $500,000, or an average adjusted gross farm income that 
exceeds $750,000, is ineligible to receive NAP benefits. Similar 
changes required by the 2008 Farm Bill were already made for other FSA 
and CCC programs in separate rulemakings. Prior to 2009, there was also 
a $2 million eligibility-for-payments cap tied to adjusted gross 
revenue (as opposed to adjusted gross income) for NAP. That cap is 
removed with the 2008 Farm Bill, and is therefore removed in this rule. 
This rule amends the regulations to be consistent with the 2008 Farm 
Bill; the payment and income limitations as specified have already been 
implemented administratively.

Native Sod Requirements

    The 2008 Farm Bill includes new native sod provisions. Under those 
provisions, the Governor of a State in the Prairie Pothole National 
Priority Area (specific counties within the States of Iowa, Minnesota, 
Montana, North Dakota, and South Dakota) may ``elect'' that native sod 
acreage that is tilled for the production of an annual crop will be 
ineligible for Federal crop insurance and for NAP benefits during the 
first 5 crop years of planting that annual crop. The NAP regulations 
are being amended accordingly to add those provisions, as required by 
the 2008 Farm Bill. So far, no Governor has made that election. This 
rule also adds a definition of ``native sod,'' consistent with the 2008 
Farm Bill.

[[Page 21016]]

Eligible Aquaculture Drought Losses

    This rule amends the regulations to reflect that, as specified 2008 
Farm Bill, drought losses will be covered for aquaculture. Before the 
2008 Farm Bill, that coverage was not available and those losses were 
therefore ineligible for payment.

Service Fee Increase

    The 2008 Farm Bill also provides for increased NAP service fees. 
Those increased fees have been implemented administratively. The rule 
amends the regulations to reflect the increased fees.

Multiple Benefits Exclusion

    FSA programs generally have a provision prohibiting producers from 
receiving payments from multiple programs for the same loss. However, 
most of the FSA disaster assistance programs authorized by the 2008 
Farm Bill have an eligibility requirement that the applicant must have 
obtained crop insurance for all crops for which coverage was available, 
or NAP coverage if crop insurance was not available. If such coverage 
was not obtained, then the applicant may not be eligible for those 
disaster assistance programs. FSA has determined, therefore, that such 
programs were not intended to be covered by the general exclusion on 
multiple benefits as specified in the 2008 Farm Bill. Those provisions 
specify that NAP payments cannot be received for losses covered by 
other programs. However, applying the multiple benefits exclusion in 
the case of NAP coverage and disaster benefits would be meaningless or 
produce results that were not intended. The program has been operated 
accordingly and this rule amends the regulations to specifically 
exclude the permanent disaster assistance program benefits from the 
limitation on multiple benefits. Also, the amended regulations specify, 
consistent with actual practice, that certain FSA emergency loans are 
not considered multiple benefits and thus are not subject to the 
multiple benefit exclusion in the 2008 Farm Bill provisions that apply 
to NAP.

Grazed Acreage Ineligible for NAP--Conforming Change

    This rule amends the regulations to reflect the 2008 Farm Bill 
provision that specifies that grazed-out wheat, barley, oats, or 
triticale crop acreage is ineligible for NAP payments. The 
ineligibility is for land where the producer has applied for grazing 
payments in lieu of a Loan Deficiency Payment (LDP) under other 
provisions of the 2008 Farm Bill. This limit is also addressed in the 
current LDP regulations.

Miscellaneous Clarifying Changes

    This rule also makes certain clarifying changes. This rule amends 
Sec.  1437.9, ``Causes of Loss,'' to specify that inadequacy of 
irrigation as a condition for crops other than tree crops and 
perennials will be measured at the time of planting, not the beginning 
of the crop year. This amendment is made to more precisely test the 
cause of loss and reflects current policy since the lack of irrigation 
could not have been the source of the loss if there was water available 
at the time of planting (irrespective of whether there was or was not 
water available earlier in the crop year).
    This rule amends Sec.  1437.301 ``Value Loss,'' and Sec.  1437.305, 
``Ornamental Nursery,'' to reflect changes in the definition of the 
period of time that constitutes a particular crop year for ornamental 
nursery. The change conforms with RMA crop insurance policy, consistent 
with the general purpose of NAP to supplement RMA coverage. That goal 
is facilitated by adopting similar policies for issues that appear in 
both programs. This is a technical change since a loss will be covered 
irrespective of when the loss occurs and this involves pinpointing the 
loss to a particular crop year.
    This rule amends Sec.  1437.302, ``Determining Payments,'' to 
correct cross-references within that section. This rule amends Sec.  
1437.105, ``Determining Payments for Low Yield,'' to correct an error. 
The correction, which does not reduce payments for producers, corrects 
how salvage value is used in the calculation of payment.
    References to specific tropical regions and former territories are 
amended throughout subpart F ``Determining Coverage in the Tropical 
Region.'' The purpose of the amendments is to clarify eligibility 
requirements in tropical regions, while continuing to provide 
flexibility for the Deputy Administrator to determine where specific 
requirements apply. This rule amends Sec.  1437.501, ``Applicability; 
Definition of `Tropical Region' and Additional Definitions,'' to remove 
references to specific former U.S. territories in the definition of 
``tropical region'' and to add a more general reference to other 
regions as determined by the Deputy Administrator. A parallel amendment 
is made to Sec.  1437.504 ``Notice of Loss for Covered Tropical Crops'' 
to remove a reference to specific former territories. These amendments 
clarify that the requirements to document specific losses in former 
territories only apply if the Deputy Administrator has determined that 
those regions are eligible tropical areas.
    Section 1437.503, ``Covered Losses and Recordkeeping Requirements 
for Covered Tropical Crops,'' is amended to add unspecified other 
tropical areas to the list of tropical regions for which the causes of 
loss (including value loss, prevented planting, and low yield) are the 
same as those as specified for non-tropical crops in Sec.  1437.9. The 
previous regulation covers only hurricanes, typhoons, and named 
tropical storms for these tropical regions, except as otherwise 
approved by the Deputy Administrator. This change reflects that the 
Deputy Administrator has routinely approved prevented planting, low 
yield, and other common losses in current U.S. territories and 
possessions, including Guam, American Samoa, and the Northern Mariana 
Islands, that are not specified in Sec.  1437.503.
    This rule amends Sec.  1437.505, ``Application for Payment for the 
Tropical Region,'' to add Guam, American Samoa, and the Northern 
Mariana Islands to the list of tropical regions for which producers are 
required to file an application for payment by the later of the date on 
which the notice of loss is filed or the date of the completion of 
harvest for the specific crop acreage that existed at the time of loss 
for which the notice of loss was filed. Previously, the current 
regulation, absent a waiver, required producers in Guam, American 
Samoa, and the Northern Mariana Islands to file an application for 
payment at the same time as the filing of the notice of loss because it 
was anticipated that the eligible causes of loss (hurricanes, typhoons, 
and named tropical storms in those areas) would reflect a 100 percent 
loss. Therefore, it made sense, and was cost efficient, to have the 
application for payments and verification made at the same time that 
the loss occurred. That is not necessarily the case for the common loss 
causes added with this rule. Losses may increase in the period after 
the actual disaster. This change will allow producers of tropical crops 
in those regions to file an application for payment upon completion of 
harvest in the case of low yield due to common loss causes as amended 
in Sec.  1437.503.
    Of a more general nature, the previous regulations provided that, 
except as may be further limited by the Deputy Administrator, the 
tropical areas that would be covered would include certain former 
territories of the United States. The ``except as may be further 
limited'' language was provided to leave open the actual eligibility of 
losses in those areas. This rule provides greater clarity by not

[[Page 21017]]

listing these specific areas as eligible ``except as limited,'' but 
instead referring generally to other areas that may be eligible. This 
makes it clearer that tropical areas not specifically listed are 
eligible only if determined by the Deputy Administrator.
    NAP eligibility in the former territories requires a flexible 
approach by FSA, in consultation with RMA. Generally NAP is authorized 
to provide coverage in those places in which RMA crop insurance is not 
available. Under the RMA statutory authority, crop insurance could 
theoretically be made available in the territories and possessions of 
the United States and in certain former territories. However, RMA crop 
insurance is generally made available for crops that have a certain 
history and market presence. Because of those requirements, crop 
insurance is generally unavailable outside the 50 States and Puerto 
Rico on that ground (lack of history and market presence) rather than 
necessarily on a determination not to extend coverage to a geographical 
region. Should there be a request for NAP coverage outside those areas 
covered by RMA, FSA would have to consider whether RMA coverage would, 
if the conditions were otherwise appropriate, be made available in 
those areas. The regulations, as clarified, leave out specific 
references to the former territories and generally leave the scope of 
coverage in the former territories to the Deputy Administrator to 
determine or reconsider in light of the considerations noted above and 
in consultation with RMA as appropriate. That is, the regulations are 
designed to provide the Deputy Administrator with flexibility on that 
issue.

Notice and Comment

    In general, the Administrative Procedures Act (APA, 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. 
Such notice is not required when the agency for good cause finds that 
notice and public procedure thereon are impracticable, unnecessary, or 
contrary to the public interest.
    This rule implements provisions of the 2008 Farm Bill for which FSA 
has no discretion, and makes minor clarifications that are consistent 
with existing policy and implementation. Therefore, FSA finds that it 
would be impractical and contrary to the public interest to delay the 
effective date of this rule. All of the provisions in this rule have 
already been implemented administratively and all of the substantive 
changes are required by law. The points of clarification, which are not 
required by the 2008 Farm Bill, should not have an adverse impact on 
producers and are merely a restatement of current policy or of current 
rules. By issuing these regulations as an interim rule, FSA provides an 
opportunity for the public to comment. FSA will consider those comments 
to determine if further change or clarification is needed or to the 
extent that a commenter disagrees with the assessment of what statutory 
law requires with respect to the operation of the program.

Executive Orders 12866 and 13563

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

Clarity of the Regulations

    Executive Order 12866, as supplemented by Executive Order 13563, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on this interim rule, we invite your 
comments on how to make it easier to understand. For example:
     Are the requirements in the rule clearly stated? Are the 
scope and intent of the rule clear?
     Does the rule contain technical language or jargon that is 
not clear?
     Is the material logically organized?
     Would changing the grouping or order of sections or adding 
headings make the rule easier to understand?
     Could we improve clarity by adding tables, lists, or 
diagrams?
     Would more, but shorter, sections be better? Are there 
specific sections that are too long or confusing?
     What else could we do to make the rule easier to 
understand?

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), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other law, unless the agency certifies that the rule 
will not have a significant economic impact on a substantial number of 
small entities. FSA has determined that this rule will not have a 
significant impact on a substantial number of small entities. 
Provisions in this rule would not impact a substantial number of small 
entities to a greater extent than large entities. Limited resource 
farmers and ranchers will continue to be exempt from the service fees 
specified in this rule. Consequently, FSA has not prepared a regulatory 
flexibility analysis.

Environmental Review

    FSA has determined that the provisions identified in this interim 
rule are administrative in nature, intended to improve the 
effectiveness and efficiency of the program without changing the basic 
scope of goals and does not constitute a major Federal action that 
would significantly affect the quality of the human environment. 
Therefore, 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 FSA regulations 
for compliance with NEPA (7 CFR part 799), no environmental assessment 
or environmental impact statement will be prepared.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials. 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 set forth in the 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

[[Page 21018]]

intergovernmental consultation with State and local officials.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' The provisions of this rule will have preemptive 
effect with respect to any State or local laws, regulations, or 
policies that conflict with such provision or which otherwise impede 
their full implementation. However, it is not expected that with 
respect any current laws that there will be any such conflict. The rule 
will not have retroactive effect. Before any judicial action may be 
brought regarding this rule, all administrative remedies must be 
exhausted.

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 
national 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.'' Executive Order 13175 imposes requirements on the 
development of regulatory policies that have Tribal implications or 
preempt Tribal laws. The policies contained in this rule do not, to our 
knowledge, preempt Tribal law. This rule was included in the October 
through December, 2010, Joint Regional Consultation Strategy 
facilitated by USDA that consolidated consultation efforts of 70 rules 
from the 2008 Farm Bill. USDA sent senior level agency staff to seven 
regional locations and consulted with Tribal leadership in each region 
on the rules. No issues about this rule were raised during that 
consultation. FSA will continue to respond in a timely and meaningful 
manner to all Tribal government requests for Tribal consultation about 
this rule and its implementation and will provide additional avenues, 
such as webinars and teleconferences, as requested, for collaborative 
conversations with Tribal leaders and their representatives about ways 
to improve this program and rule in Indian Country.

Unfunded Mandates Reform Act of 1995 (UMRA)

    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 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 the UMRA.

Federal Assistance Programs

    The title and number of the Federal Assistance Program, as found in 
the Catalog of Federal Domestic Assistance, to which this rule applies, 
is: Noninsured Assistance 10.451.

Paperwork Reduction Act of 1995

    The amendments to 7 CFR part 1437 in this interim rule require no 
new information collection or changes to the currently approved 
information collection under OMB control number 0560-0175.

E-Government Act Compliance

    CCC is 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 1437

    Agricultural commodities, Crop insurance, Disaster assistance, 
Fraud, Penalties, Reporting and recordkeeping requirements.
    For the reasons discussed above, 7 CFR part 1437 is amended as 
follows:

PART 1437--NONINSURED CROP DISASTER ASSISTANCE PROGRAM

0
1. The authority citation for part 1437 is revised to read as follows:

    Authority: 7 U.S.C. 1501-1508 and 7333; 15 U.S.C. 714-714m; 19 
U.S.C. 2497, and 48 U.S.C. 1469a.

Subpart A--General Provisions

0
2. Amend Sec.  1437.3 by adding, in alphabetical order, a definition 
for ``native sod'' to read as follows:


Sec.  1437.3  Definitions.

* * * * *
    Native sod means land on which the plant cover is composed 
principally of native grasses, grasslike plants, forbs, or shrubs 
suitable for grazing and browsing; and that has not been tilled for the 
production of an annual crop as of June 18, 2008.
* * * * *

0
3. Amend Sec.  1437.4 by adding paragraphs (c), (d), and (e) to read as 
follows:


Sec.  1437.4  Eligibility.

* * * * *
    (c) Except as specified in paragraph (d) of this section, the 
Governor of a State in the Prairie Pothole National Priority Area 
(Iowa, Minnesota, Montana, North Dakota, and South Dakota) may specify 
that native sod acreage that is tilled for the production of an annual 
crop will be ineligible for NAP benefits during the first 5 crop years 
of planting.
    (d) If the producer's total native sod acreage is 5 acres or less, 
the eligibility restrictions for native sod specified in paragraph (c) 
of this section will not apply.
    (e) Wheat, barley, oats, or triticale crop acreage subject to an 
application for grazing payments under the program specified in part 
1421, subpart D of this chapter, or successor program, is ineligible 
for NAP payments.


Sec.  1437.6  [Amended]

0
4. Amend Sec.  1437.6(b), as follows:
0
a. Remove the amount ``$100'', and add the amount ``$250'', in its 
place;
0
b. Remove the amount ``$300'', and add the amount ``$750'', in its 
place; and
0
c. Remove the amount ``$900'', and add the amount ``$1875'', in its 
place.


Sec.  1437.9  [Amended]

0
5. Amend Sec.  1437.9 as follows:
0
a. In paragraph (e)(6), remove the words ``the beginning of the crop 
year'' and add the words ``time of planting'', in their place, and
0
b. In paragraph (e)(7), remove the words ``A loss'' and add the words 
``Except as specified in Sec.  1437.303, a loss'', in their place.

0
6. Revise Sec.  1437.13(b) to read as follows:


Sec.  1437.13  Multiple benefits.

* * * * *

[[Page 21019]]

    (b) The limitation on multiple benefits specified in paragraph (a) 
of this section will not apply to:
    (1) Emergency Loans made under subtitle C of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1961-1970).
    (2) Supplemental Revenue Assistance Payments Program (SURE) 
payments as specified in part 760 of this title,
    (3) Livestock Forage Disaster Program (LFP) payments as specified 
in part 760 of this title,
    (4) Tree Assistance Program (TAP) payments as specified in part 760 
of this title, or
    (5) Emergency Assistance for Livestock, Honeybees, and Farm-Raised 
Fish Program (ELAP) payments as specified in part 760 of this title.
* * * * *

0
7. Amend Sec.  1437.14 as follows:
0
a. Revise paragraphs (a) and (b) introductory text; and
0
b. Remove paragraph (d).
    The revisions read as follows:


Sec.  1437.14  Payment and income limitations.

    (a) The provisions of part 1400 of this title apply to NAP.
    (b) For the 2008 and earlier crop years for which NAP was 
authorized, NAP payments will not be made to a person who has 
qualifying gross revenues in excess of $2 million for the most recent 
tax year preceding the year for which assistance is requested. 
Qualifying gross revenue means:
* * * * *

Subpart B--Determining Yield Coverage Using Actual Production 
History

0
8. Revise Sec.  1437.105(a)(6) to read as follows:


Sec.  1437.105  Determining payments for low yield.

    (a) * * *
    (6) Adding the producer's share of any salvage value and secondary 
use and subtracting the result from the result of paragraph (a)(5) of 
this section.
* * * * *

Subpart D--Determining Coverage Using Value

0
9. Revise Sec.  1437.301(b) to read as follows:


Sec.  1437.301  Value loss.

* * * * *
    (b) The crop year for all value loss crops, except ornamental 
nursery as specified in Sec.  1437.305, is October 1 through September 
30.
* * * * *

0
10. Amend Sec.  1437.302 as follows:
0
a. In paragraph (b), remove the reference to ``(a)(1)'' and add a 
reference to ``(a)'' in its place;
0
b. In paragraph (c), remove the reference to ``(a)(2)'' and add a 
reference to ``(b)'' in its place;
0
c. In paragraph (d), remove the reference to ``(a)(3)'' and add a 
reference to ``(c)'' in its place;
0
d. Revise paragraph (e); and
0
e. Remove paragraph (f).
    The revision reads as follows:


Sec.  1437.302  Determining payments.

* * * * *
    (e) Subtracting the result from paragraph (d) of this section from 
the producer's share of any salvage value, if applicable.

0
11. Amend Sec.  1437.303 by adding paragraph (f) to read as follows:


Sec.  1437.303  Aquaculture, including ornamental fish.

* * * * *
    (f) If all other eligibility provisions of this part are determined 
by FSA to be satisfied, assistance will be provided to producers for 
eligible NAP aquaculture crop losses that are the direct result of 
drought.

0
12. Amend Sec.  1437.305 by adding paragraph (g) to read as follows:


Sec.  1437.305  Ornamental nursery.

* * * * *
    (g) For the 2010 and subsequent crops, the crop year for ornamental 
nursery is June 1 through May 31.

Subpart F--Determining Coverage in the Tropical Region

0
13. Revise Sec.  1437.501(b)(1) to read as follows:


Sec.  1437.501  Applicability; definition of ``tropical region'' and 
additional definitions.

* * * * *
    (b) * * *
    (1) Tropical region includes, as may be further limited by the 
Deputy Administrator: Hawaii, American Samoa, Guam, the U.S. Virgin 
Islands, Puerto Rico, and the territories and possessions of the United 
States. Other areas may be included as determined by the Deputy 
Administrator to be required by law. References to specific areas 
elsewhere in this subpart will not limit the ability of the Deputy 
Administrator to limit the geographic scope of this subpart.
* * * * *


Sec.  1437.502  [Amended]

0
14. In Sec.  1437.502(c), remove the amount ``$100.00'' and add the 
amount ``$250'' in its place.


Sec.  1437.503  [Amended]

0
15. Amend Sec.  1437.503, in paragraphs (a) and (b), by removing the 
words ``Hawaii and Puerto Rico'' both times they appear and adding, in 
their place, the words ``Hawaii, Puerto Rico, and other areas approved 
by the Deputy Administrator.''


Sec.  1437.504  [Amended]

0
16. In Sec.  1437.504(e), remove the words and punctuation ``, the 
Republic of the Marshall Islands, the Federated States of Micronesia, 
and the Republic of Palau''.

0
17. Revise Sec.  1437.505 to read as follows:


Sec.  1437.505  Application for payment for the tropical region.

    (a) For producers of covered tropical crops, except as specified in 
paragraph (b) of this section or approved in individual cases by the 
Deputy Administrator, an application for payment must be filed at the 
same time as the filing of the notice of loss required under Sec. Sec.  
1437.10 and 1437.504.
    (b) For producers in Puerto Rico, Hawaii, Guam, American Samoa, and 
the Northern Marianna Islands, an application for payment for such 
crops must be filed by the later of:
    (1) The date on which the notice of loss is filed in accordance 
with Sec. Sec.  1437.10 and 1437.504, or
    (2) The date of the completion of harvest for the specific crop 
acreage that existed at the time of loss for which the notice of loss 
was filed.

    Signed on April 2, 2013.
Candace Thompson,
Acting Executive Vice President, Commodity Credit Corporation, and 
Acting Administrator, Farm Service Agency.
[FR Doc. 2013-08168 Filed 4-8-13; 8:45 am]
BILLING CODE 3410-05-P