Conservation Compliance, 22873-22885 [2015-09599]
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22873
Rules and Regulations
Federal Register
Vol. 80, No. 79
Friday, April 24, 2015
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
Office of the Secretary
7 CFR Part 12
RIN 0560–AI26
Conservation Compliance
Office of the Secretary and
Farm Service Agency, USDA.
ACTION: Interim rule.
AGENCY:
This rule amends the U.S.
Department of Agriculture (USDA)
regulations that specify the conservation
compliance requirements that
participants in USDA programs must
meet to be eligible for certain USDA
benefits. The USDA benefits to which
conservation compliance requirements
currently apply include marketing
assistance loans, farm storage facility
loans, and payments under commodity,
disaster, and conservation programs.
The conservation compliance
requirements apply to land that is either
highly erodible land (HEL) or that is
wetlands. This rule amends the
regulations to implement the
Agricultural Act of 2014 (2014 Farm
Bill) provisions that: make the eligibility
for Federal crop insurance premium
subsidy benefits subject to conservation
compliance requirements; and convert
the wetland mitigation banking pilot to
a program and authorizes $ 10 million
for the Secretary to operate a wetland
mitigation banking program. This rule
specifies the conservation compliance
requirements, exemptions, and
deadlines that apply in determining
eligibility for Federal crop insurance
premium subsidy from the Federal Crop
Insurance Corporation (FCIC). This rule
also modifies easement provisions
relating to mitigation banks as specified
in the 2014 Farm Bill, and clarifies
provisions regarding the extent of
agency discretion with respect to certain
violations.
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SUMMARY:
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Effective date: April 24, 2015.
Date to certify compliance for Federal
crop insurance premium subsidy for
2016 reinsurance year: June 1, 2015.
Comment date: We will consider
comments that we receive by June 23,
2015.
ADDRESSES: We invite you to submit
comments on this interim rule. In your
comment, include the Regulation
Identifier Number (RIN) and the
volume, date, and page number of this
issue of the Federal Register. You may
submit comments by any of the
following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
online instructions for submitting
comments.
• Mail, hand delivery, or courier:
Daniel McGlynn, Production,
Emergencies and Compliance Division,
Farm Service Agency (FSA), United
States Department of Agriculture
(USDA), MAIL STOP 0517, 1400
Independence Avenue SW.,
Washington, DC 20250–0517.
Comments will be available online at
https://www.regulations.gov. In addition,
comments will be available for public
inspection at the above address during
business hours from 8 a.m. to 5 p.m.,
Monday through Friday, except
holidays. A copy of this interim rule is
available through the FSA home page at
https://www.fsa.usda.gov/.
FOR FURTHER INFORMATION CONTACT:
Daniel McGlynn; telephone: (202) 720
7641. Persons with disabilities who
require alternative means for
communication should contact the
USDA Target Center at (202) 720–2600.
SUPPLEMENTARY INFORMATION:
DATES:
Background
The conservation compliance
provisions in the current regulations at
7 CFR part 12 were originally
authorized by the Food Security Act of
1985 (Pub. L. 99–198, referred to as the
1985 Farm Bill). Generally, the
regulations specify that a person is
ineligible for certain USDA benefits if
they undertake certain activities relating
to HEL and wetlands, specifically those
involving planting agricultural
commodities on HEL or a wetland, or
converting a wetland for agricultural
purposes.
HEL is cropland, hayland or pasture
that can erode at excessive rates. As
specified in § 12.21, soil map units and
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the erodibility index are used as the
basis for identifying HEL. The
erodibility index is a numerical value
that expresses the potential erodibility
of a soil in relation to its soil loss
tolerance value without consideration of
applied conservation practices or
management. A field is identified as
highly erodible if it contains a critical
amount of soil map units with an
erodibility index of eight or more. If a
producer has a field identified as HEL,
that producer is required to maintain a
conservation system of practices that
keeps erosion rates at a substantial
reduction of soil loss in order to receive
certain USDA benefits. Additional
information can be found at https://
www.nrcs.usda.gov/wps/portal/nrcs/
detail/wi/programs/?cid=nrcs142p2_
020795.
A ‘‘wetland’’ is an area that has a
predominance of wet soils; is inundated
or saturated by surface or groundwater
at a frequency and duration sufficient to
support a prevalence of water tolerant
vegetation typically adapted for life in
saturated soil conditions; and under
normal circumstances supports a
prevalence of such vegetation.
The major difference between the
prior regulations for conservation
compliance in 7 CFR part 12 and this
rule is that persons who seek eligibility
for Federal crop insurance premium
subsidy must comply with the
conservation compliance requirements
as specified in this rule. Many persons
who obtain Federal crop insurance
already receive benefits from other
USDA programs, for example, FSA
programs that also require compliance
with the conservation compliance rules.
Therefore, this new requirement will
only be a change for those persons who
will be required to comply with the
conservation compliance rules for the
first time because of the 2014 Farm Bill.
The amendments made by section
2611 of the 2014 Farm Bill to the
conservation compliance rules only
apply to eligibility for FCIC paid
premium subsidy. In addition, the time
between the final determination of a
violation and the loss of eligibility for
Federal crop insurance premium
subsidy is different from the other
conservation compliance rules as
described below. Therefore, while a
violation of conservation compliance
rules may not trigger an immediate loss
of Federal crop insurance premium
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subsidy, it may trigger an immediate
loss of other USDA program benefits,
including any FSA and Natural
Resources Conservation Service (NRCS)
benefits specified in 7 CFR 12.4(d) and
(e). Nothing in this rule changes
violations that may result from other
laws or regulations under the
responsibility of another Federal
government agency.
This interim rule amends the
conservation compliance regulations in
7 CFR part 12 to:
(1) Implement 2014 Farm Bill (Pub. L.
113–79) provisions that make the
eligibility for Federal crop insurance
premium subsidies subject to
conservation compliance provisions;
(2) Modify easement provisions
relating to mitigation banks as specified
in the 2014 Farm Bill; and
(3) Clarify provisions regarding the
extent of agency discretion with respect
to certain violations.
This rule also implements sections
2609 and 2611 of the 2014 Farm Bill
which amend provisions related to
wetland mitigation banking and clarifies
provisions regarding the extent of
agency discretion with respect to certain
violations. The provisions in this rule
apply to all actions taken after February
7, 2014 (the date of enactment of the
2014 Farm Bill) by persons participating
in USDA’s crop insurance program.
FSA handles conservation compliance
administrative functions, while
technical determinations regarding HEL
and wetlands are made by NRCS. The
2014 Farm Bill extends conservation
compliance requirements to the
eligibility for Federal crop insurance
premium subsidy. Federal crop
insurance is authorized by the Federal
Crop Insurance Act (FCIA) (7 U.S.C.
1501–1524). The Federal crop insurance
program is administered by the Risk
Management Agency (RMA) on behalf of
FCIC. Persons can obtain Federally
subsidized crop insurance from
Approved Insurance Providers (AIP),
which are approved by RMA, on behalf
of FCIC, to sell and service Federal crop
insurance policies. The Federal crop
insurance policies issued by these AIP
are reinsured by FCIC in accordance
with the FCIA. The FCIA also authorizes
FCIC to subsidize Federal crop
insurance premiums charged for the
coverage provided by the Federal crop
insurance policies reinsured by FCIC.
FCIC published an interim rule on
July 1, 2014, (79 FR 37155–37166) that
amended the Federal crop insurance
regulations to implement the same
conservation compliance provisions
from section 2611 of the 2014 Farm Bill
as this rule in 7 CFR parts 400, 402, 407,
and 457. This rule is needed to make
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conforming changes to the general
USDA regulations in 7 CFR part 12 that
apply to programs from multiple USDA
agencies.
New Federal Crop Insurance Subsidy
Conservation Compliance Eligibility
Provisions
Section 2611 of the 2014 Farm Bill
links conservation compliance to
eligibility for Federal crop insurance
premium subsidies paid by FCIC.
Section 2611 provides exemptions and
extended deadlines for certain persons
to achieve compliance.
Persons who have not participated in,
and were not affiliated with any person
who participated in, any USDA program
for which conservation compliance was
a requirement will have additional time
to develop and comply with an NRCS
approved conservation plan for HEL.
Section 2611(a)(2)(C) of the 2014 Farm
Bill provides that persons who are
subject to the HEL conservation
requirements for the first time solely
because of the linkage of conservation
compliance to eligibility for Federal
crop insurance premium subsidy will
have 5 reinsurance years to develop and
comply with a conservation plan
approved by NRCS before they become
ineligible for Federal crop insurance
premium subsidies.
The beginning of the 5 reinsurance
year period depends on whether a HEL
determination was made on any of the
land in the person’s farming operation
and whether administrative appeal
rights have been exhausted for that
determination. The 5 reinsurance year
period begins:
• For persons who have no land with
an NRCS HEL determination, the 5
reinsurance years begins the start of the
reinsurance year (July 1) following the
date NRCS makes a HEL determination
and the person exhausts all their
administrative appeals.
• For persons who have any land for
which a NRCS HEL determination has
been made and all administrative
appeals have been exhausted, the 5
reinsurance years begins the start of the
reinsurance year (July 1) following the
date the person certifies compliance
with FSA to be eligible for USDA
benefits subject to the conservation
compliance provisions.
Any affiliated person of a person
requesting benefits that are subject to
HEL and wetland conservation
provisions must also be in compliance
with those provisions. Such affiliated
persons must also file a Form AD–1026
if the affiliated person has a separate
farming interest. ‘‘Affiliated persons’’
include, with some exceptions, the
spouse and minor child of the person;
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the partnership, joint venture, or other
enterprise in which the person, spouse,
or minor child of the person has an
ownership interest or financial interest;
and a trust in which the individual,
business enterprise, or any person,
spouse, or minor child is a beneficiary
or has a financial interest. In the case of
a violation, the offending person and
affiliated persons such as spouses and
entities in which the offending person
has an interest will lose benefits at all
their farming operation locations, not
just the locale of the violation.
In addition to the time lags and
deadlines applicable to initial
compliance with this new conservation
compliance requirement, there are
exemptions and reasonable timeframes
to comply for later conservation
compliance issues. The exemptions and
timelines described below apply only to
eligibility for Federal crop insurance
premium subsidies, and not compliance
requirements for other USDA programs.
As specified in the 2014 Farm Bill and
in this rule, ineligibility for Federal crop
insurance premium subsidy because of
a conservation compliance violation,
whether associated with HEL or
wetlands, will apply to reinsurance
years after the date of a final
determination of a violation, including
all administrative appeals. Reinsurance
years start on July 1 of any given year
and end the following June 30. As an
example, suppose that USDA
determines that a violation occurred
during the 2017 calendar year, and the
determination is final, including all
administrative appeals, on November
15, 2017, which is during the 2018
reinsurance year. The person will be
ineligible for Federal crop insurance
premium subsidy no earlier than the
2019 reinsurance year, which begins on
July 1, 2018, and will remain ineligible
until the violation is remedied. The
person will remain eligible for a
premium subsidy on any policies with
a sales closing date before July 1, 2018.
In the case of wetland conservation
requirements, as noted earlier,
ineligibility for premium subsidy due to
a violation of the wetland conservation
provisions will be limited to wetland
conservation violations that occur after
February 7, 2014, and for which a final
determination has been made and
administrative appeals have been
exhausted. The 2014 Farm Bill also
provides a limited exemption for
wetland conservation violations that
occur after February 7, 2014, but before
Federal crop insurance for an
agricultural commodity becomes
available to the person for the first time.
This exemption provides up to 2
reinsurance years to mitigate such
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conversions. This rule specifies that
USDA will consider Federal crop
insurance to be ‘‘available’’ to the
person if in any county in which the
person had any interest in any acreage
there is an FCIC-approved policy or
plan of insurance available on the
county actuarial documents that provide
insurance for the crop, or the person
obtained a written agreement to insure
the crop in any county.
A person that is subject to wetland
conservation provisions for the first
time as a result of the 2014 Farm Bill
will have 2 reinsurance years after the
reinsurance year in which the final
determination of violation is made,
including all administrative appeals, to
initiate a mitigation plan to remedy or
mitigate the violation before they
become ineligible for Federal crop
insurance premium subsidies.
Persons not subject to the wetland
conservation provisions for the first
time as a result of the 2014 Farm Bill
will have 1 reinsurance year after the
reinsurance year in which the final
determination of violation is made,
including all administrative appeals, to
initiate a mitigation plan to remedy or
mitigate the violation before they
become ineligible for Federal crop
insurance premium subsidies.
Persons determined ineligible for
premium subsidy paid by FCIC for a
reinsurance year will be ineligible for a
premium subsidy on all their policies
and plans of insurance, unless the
specific exemptions apply.
The 2014 Farm Bill included tenant
relief provisions applicable to the
wetland conservation provisions, but
only for Federal crop insurance
premium subsidies. In addition, the
2014 Farm Bill amendments made the
HEL tenant relief provisions applicable
to eligibility for Federal crop insurance
premium subsidies. In both cases, the
tenant relief provisions provide that the
Secretary may limit ineligibility only to
the farm that is the basis for the
ineligibility. Federal crop insurance
policies under FCIA are constructed on
the basis of persons, counties, and units,
which may include multiple farms.
Although the 2014 Farm Bill used the
word ‘‘farm,’’ FCIC does not allow for
differing terms of insurance on a ‘‘farm’’
basis, and therefore, does not provide
premium subsides on such basis.
Therefore, with regard to Federal crop
insurance premium subsidy, application
of the tenant relief provisions will be
achieved through a prorated reduction
of premium subsidy on all of a person’s
policies and plans of insurance.
Specifically, a tenant’s or sharecropper’s
premium subsidy on all policies and
plans of insurance will be reduced, in
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lieu of ineligibility for all premium
subsidy, when the tenant or
sharecropper made a good faith effort to
comply with the conservation
compliance provisions, the owner of the
farm refuses to allow the tenant or
sharecropper to comply with the
provisions, FSA determines there is no
scheme or device, and the tenant or
sharecropper complies with the
provisions that are under their control.
The reduction in premium subsidy will
be determined by comparing the total
number of cropland acres on the farm
on which the violation occurs to the
total number of cropland acres on all
farms in the nation in which the tenant
or sharecropper has an interest. The
farms and cropland acres used to
determine the reduction percentage will
be the farms and cropland acres of the
tenant or sharecropper for the
reinsurance year in which the tenant or
sharecropper is determined ineligible.
The percentage reduction will be
applied to all policies and plans of
insurance of the tenant or sharecropper
in the reinsurance year subsequent to
the reinsurance year in which the tenant
or sharecropper is determined
ineligible. A landlord’s premium
subsidy on all policies and plans of
insurance will be prorated in the same
manner when the landlord is
determined in violation because of the
actions or inactions of their tenant or
sharecropper.
Persons who were subject to HEL
conservation requirements in the past
because they participated in USDA
programs, stopped participating in those
programs before February 7, 2014, but
would have been in violation of the HEL
requirements had they continued
participation in such programs after
February 7, 2014, have 2 reinsurance
years to develop and comply with a
conservation plan approved by NRCS
before they become ineligible for
Federal crop insurance premium
subsidies. The 2 reinsurance years
begins the start of the reinsurance year
(July 1) following the date the person
certifies compliance with FSA to be
eligible for USDA benefits subject to the
conservation compliance provisions.
For some wetland conversions that
impact less than 5 acres on the entire
farm, a person may regain eligibility for
Federal crop insurance premium
subsidy by making a payment equal to
150 percent of the cost of mitigation of
the converted wetland in lieu of
restoring or mitigating the lost wetland
functions and values. The applicability
of this exemption is at the discretion
and approval of NRCS and the funds
will be deposited in an account to be
used later for wetland restoration. This
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exception is in lieu of the mitigation
actions that a person would otherwise
be required to conduct to restore the lost
wetland functions and values of the
converted wetland. While it provides
flexibility to a person for how to remedy
a small acreage violation, the text of the
exception indicates that the intention of
the 2014 Farm Bill is to limit the scope
of its availability, specifying that it
applies to any violation that ‘‘impacts
less than 5 acres of the entire farm.’’ To
ensure that this exception can be
appropriately tracked and limit the
potential for its abuse, the regulation
specifies that a person is limited to only
one exemption per farm. This is a
discretionary change USDA is making to
ensure the integrity of the intention that
it impacts less than 5 acres of the entire
farm and not just 5 acres per occurrence,
which could add up to impacting much
more than the intended 5 acres.
Additionally, USDA clarifies in the
regulation that the payment to the fund
is not refundable, even if the person
subsequently restores the wetland that
had been converted. This exemption
applies only to eligibility for Federal
crop insurance premium subsidies.
For wetland conservation violations,
if the person acted in good faith and
without intent to commit the violation,
FSA may waive the ineligibility
provisions for 2 reinsurance years to
allow the person to remedy or mitigate
the converted wetland.
What Federal Crop Insurance
Participants Must Do To Remain
Eligible for Premium Subsidies
As required by section 2611 of the
2014 Farm Bill, all persons seeking
eligibility for Federal crop insurance
premium subsidy must have on file a
certification of compliance (AD–1026) at
the local FSA office.
For the 2016 and every subsequent
reinsurance year, the deadline to file a
Form AD–1026 is June 1 prior to the
reinsurance year. Outreach and
informational materials for the 2016
reinsurance year will include
information on how to contact the local
FSA office. Persons must have a Form
AD–1026 on file with FSA on or before
the June 1 prior to the beginning of a
given reinsurance year (which begins on
July 1). A person will have until the first
applicable crop insurance sales closing
date to provide the information for a
Form AD–1026 if the person either is
unable to file a Form AD–1026 by June
1 due to circumstances beyond the
person’s control, or the person in good
faith filed a Form AD–1026 and FSA
subsequently determined that additional
information is needed but the person is
unable to comply by July 1 due to
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circumstances beyond the person’s
control. A new AD–1026 only needs to
be filed if a change in the farming
operation has occurred that results in
the previously filed AD–1026 being
incorrect, or there has been a violation
of the HEL or wetland conservation
provisions negating the previously filed
AD–1026.
On Form AD–1026, persons selfcertify compliance with HEL and
wetland conservation requirements. If
the person indicates on the form that
they have conducted an activity that
might lead to a violation, such as
creating new drainage systems, land
leveling, filling, dredging, land clearing,
excavation, or stump removal since
1985 on their land, they will be asked
for additional information that will be
forwarded to NRCS for evaluation. If
NRCS fails to complete an evaluation of
the person’s Form AD–1026, or
successor form in a timely manner after
all documentation has been provided to
NRCS, the person will not be ineligible
for Federal crop insurance premium
subsidies for a policy or plan of
insurance for a violation that occurred
prior to NRCS completing the
evaluation.
Failure to timely file a Form AD–1026
will result in ineligibility for Federal
crop insurance premium subsidies for
the entire reinsurance year, unless the
person can demonstrate they began
farming for the first time after June 1 but
prior to the beginning of the reinsurance
year. For example, a person who started
farming for the first time on June 15,
2015, will be eligible for Federal crop
insurance premium subsidies for the
2016 reinsurance year without a Form
AD–1026 on file with FSA. However, in
that case, the person must file Form
AD–1026 with FSA on or before June 1,
2016 to be eligible for premium subsidy
for the 2017 reinsurance year.
Failure to notify USDA and revise the
Form AD–1026 when required may
result in assessment of a monetary
penalty, as determined by NRCS, but the
penalty will never exceed the total
amount of Federal crop insurance
premium subsidy paid by FCIC for the
person on all policies and plans of
insurance for all years the person is
determined to have been in violation.
The monetary penalty is assessed for
wetland conservation compliance only.
USDA Service Centers will provide
additional information and assistance to
persons in meeting compliance
requirements. USDA will determine a
person’s eligibility for premium subsidy
paid by FCIC at a time that is as close
to the beginning of the next reinsurance
year (July 1) as practical. The
determination will be based on FSA and
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NRCS determinations regarding
conservation compliance. For example,
a person who has a determination of
ineligibility that is final on June 1, 2015,
(2015 reinsurance year) will, unless
otherwise exempted, be ineligible for
premium subsidy effective July 1, 2015,
the start of the 2016 reinsurance year,
and will not be eligible for any premium
subsidy for any policies or plans of
insurance during the 2016 reinsurance
year. Even if the person becomes
compliant during the 2016 reinsurance
year, the person will not be eligible for
premium subsidy until the 2017
reinsurance year, starting on July 1,
2016.
For acts or situations of noncompliance or failure to certify
compliance according to this part,
ineligibility for Federal crop insurance
premium subsidies will be applied
beginning with the 2016 reinsurance
year for any Federally reinsured policy
or plan of insurance with a sales closing
date on or after July 1, 2015.
Changes to Mitigation Bank Program
Required by the 2014 Farm Bill
The rule also implements section
2609 of the 2014 Farm Bill, which
amends provisions related to wetland
mitigation banking. Wetland mitigation
banking is a form of environmental
market trading where wetlands are
created, enhanced, or restored to create
marketable wetland credits (acres and
functions). The 1985 Farm Bill, the
Clean Water Act, and some State
wetland laws specify that negative
impacts to existing wetlands can be
mitigated by providing restored,
enhanced, or created wetlands as
compensation for the losses. The
replacement of impacted wetlands with
new wetlands is called wetland
mitigation. Wetland mitigation banking
is a type of wetland mitigation where
wetlands are created, enhanced, or
restored prior to impacts and the
wetlands are sold to those required to
compensate for the impacts. These
credits are sold to others as
compensation for unavoidable wetland
impacts. For more information on the
existing wetlands mitigation banking
program, see https://www.nrcs.usda.gov/
wps/portal/nrcs/main/national/water/
wetlands/wmb/.
As specified in the current
regulations, persons may maintain their
payment eligibility for most USDA
benefits if the wetland values, acreage,
and functions of any wetland
conversion activity are adequately
mitigated, as determined by NRCS,
through the restoration of a converted
wetland, the enhancement of an existing
wetland, or the creation of a new
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wetland. However, agricultural
mitigation options are limited, and, to
date, mitigation banks are not abundant
nor are they readily accessible. Section
2609 of the 2014 Farm Bill provides $10
million of the USDA’s Commodity
Credit Corporation funds to operate a
mitigation banking program and allows
USDA to have third parties hold the
wetland mitigation easements, rather
than USDA itself.
NRCS is modifying the mitigation
bank provisions in this rule to clarify
who may hold title to wetland
mitigation easements under the wetland
conservation provisions. The existing
regulations require that the person grant
an easement to USDA to protect the
wetland that is providing the mitigation
of wetland functions and benefits.
Section 2609 of the 2014 Farm Bill
specifies that USDA is no longer
required to hold the easements in a
mitigation bank. Therefore, this rule
amends 7 CFR 12.5 to authorize other
qualifying entities, which are
recognized by USDA, to hold mitigation
banking easements granted by a person
who wishes to maintain payment
eligibility under the wetland
conservation provision, and remove the
requirement that an easement be granted
to USDA for mitigation sites when part
of a mitigation banking program that is
operated by USDA.
To encourage the development of
mitigation banks, USDA will implement
a prioritized and competitive mitigation
banking program through an
Announcement of Program Funding that
focuses on agricultural wetlands.
Application selection criteria will
emphasize areas with the greatest
opportunities for using wetland banking
mitigation for agricultural purposes.
General Provisions and Technical
Clarifications
This rule updates the general
applicability section by removing
unneeded references. Regulation
changes in this rule do not affect past
obligations and liabilities. Reference to
certain former territories of the United
States are removed because they were
covered by 1985 Farm Bill provisions as
trust territories only and no longer have
that status.
This rule also makes a minor revision
to the ineligibility determination for
wetland conservation violations to make
the regulation consistent with the
statutory requirement; the change is to
clarify the limited circumstances for
which partial ineligibility may apply
instead of complete ineligibility. Section
1221(b) of the 1985 Farm Bill (16 U.S.C.
3821) allows the Secretary to determine
whether all or a part of a person’s
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benefits will be lost because of
violations for producing an agricultural
commodity on a converted wetland.
There are two types of wetland
conservation violations in 16 U.S.C.
3821 that may result in ineligibility for
some or all of a person’s benefits; those
violations are production on converted
wetland (16 U.S.C. 3821(a)) and wetland
conversion (16 U.S.C. 3821(d)) for the
purpose of agricultural production. The
consequences for the two types of
wetland conservation violations are not
the same. For production on converted
wetland, 16 U.S.C. 3821(a)(2) specifies
that the person’s ineligibility is to be in
an amount determined by the Secretary
to be proportionate to the severity of the
violation and 16 U.S.C. 3821(b) further
specifies that if a person is determined
to have produced an agricultural
commodity on converted wetland, the
Secretary determines which of, and the
amount of, benefits for which the person
will be ineligible due to that violation.
For a wetland conversion violation, 16
U.S.C. 3821(d) provides that if a person
converts a wetland making the
production of an agricultural
commodity possible on such converted
wetland, the person will be ineligible
for benefits for that crop year and all
subsequent crop years. There is no
authority under 16 U.S.C. 3821 for the
Secretary to make a determination of
only partial ineligibility for a wetland
conversion violation, or allow a
reduction in benefits proportionate to
the severity of the violation or a limited
reduction to certain benefits or amounts
instead of complete ineligibility. Unless
an exemption applies, a wetland
conversion violation results in
ineligibility for all benefits for the year
of violation and all subsequent years. In
the past, the text in § 12.4(c) has been
used by persons who have been
determined to have converted a wetland
to argue that the Secretary has
discretion to partially reduce
ineligibility for a wetland conversion in
the same manner allowed by 16 U.S.C.
3821 for a violation of production on
converted wetland. There is no such
discretion authorized under 16 U.S.C.
3821 for a wetland conversion;
therefore, the reference to a potential
reduction in ineligibility for wetland
conversion is being removed by this
rule. The specific change is to remove
the reference to paragraph (a)(3) for the
potential ineligibility reduction.
A section with obsolete information
on information collection requirements
is removed.
Notice and Comment
In general, the Administrative
Procedure Act (5 U.S.C. 553) requires
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that a notice of proposed rulemaking be
published in the Federal Register and
interested persons be given an
opportunity to participate in the
rulemaking through submission of
written data, views, or arguments with
or without opportunity for oral
presentation, except when the rule
involves a matter relating to public
property, loans, grants, benefits, or
contracts. Section 2608 of the 2014
Farm Bill requires that the programs of
Title II be implemented by interim rules
effective on publication with an
opportunity for notice and comment.
Comments Requested
The primary purpose of this rule is to
revise USDA conservation compliance
regulations to incorporate the 2014
Farm Bill provisions that make persons
receiving Federal crop insurance
premium subsidies subject to
conservation compliance requirements.
As noted above, FCIC published an
interim rule on July 1, 2014, that
amended Federal crop insurance
regulations to implement this provision
from section 2611 of the 2014 Farm Bill.
This rule is making conforming changes
to the general USDA regulations in 7
CFR part 12 that apply to programs from
multiple USDA agencies.
The amendments made by section
2611 of the 2014 Farm Bill, and
included in this rule, extend the
existing conservation compliance
requirements to apply to FCIC premium
subsidy recipients. Section 2611 does
not include any changes to the existing
requirements for conservation
compliance (often referred to as
‘‘Sodbuster’’ and ‘‘Swampbuster’’)
specified in the 1985 Farm Bill and in
16 U.S.C. 3801–3824, the definition of
HEL, the Wetland Conservation
Program, or other conservation
programs. However, in the context of
making the regulatory changes required
by section 2611, we are requesting
comments on specific changes USDA
could consider making.
For example, all persons who produce
agricultural commodities are required to
protect all cropland classified as HEL
from excessive erosion as a condition of
eligibility for USDA programs. On lands
which have a cropping history prior to
December 23, 1985, compliance
conservation systems must result in a
‘‘substantial reduction’’ in soil erosion.
On lands converted to crop production
after December 23, 1985, compliance
conservation systems must result in ‘‘no
substantial increase’’ in soil erosion.
USDA has a goal of working with
farmers to help them stay in compliance
or bring them into compliance through
progressive planning and
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implementation. We welcome
comments on what additional steps
USDA could take to achieve these goals.
Agricultural production techniques
have changed significantly since the
passage of the 1985 Farm Bill. While
conservation systems provide a
substantial reduction in soil erosion, are
there additional conservation activities
that USDA could consider to ensure that
agricultural production and soil erosion
reduction goals from HEL soils are met?
As another example, since December
23, 1985, the ‘‘Swampbuster’’ provision
helps preserve the environmental
functions and values of wetlands,
including flood control, sediment
control, groundwater recharge, water
quality, wildlife habitat, recreation, and
esthetics. Agricultural production
techniques have changed significantly
since the passage of the 1985 Farm Bill.
Are there additional steps USDA should
consider to ensure these benefits for
wetlands are retained?
In your comments, please suggest
specific alternatives and provide data, if
available, for the suggestion as it relates
to the goals of conservation compliance.
Specifically, USDA requests comments
on the following questions:
• What information could USDA
collect to simplify the conservation
compliance process, expedite
determinations, and allow the USDA to
identify more complex determination
requests to evaluate first?
• What information could USDA
reasonably collect that would provide
more information on derived
conservation benefits from conservation
compliance activities? What would be
the burden of collecting that
information?
• With the addition of new persons
being subject to conservation
compliance requirements, how should
USDA prioritize the evaluation of the
submitted Form AD–1026 information?
USDA is also requesting comments on
conservation compliance for the
retrospective review of regulations
initiative. In accordance with Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review,’’ and Executive
Order 13610, ‘‘Identifying and Reducing
Regulatory Burdens,’’ USDA continues
to review its existing regulations as well
as its methods for gathering information.
This evaluation helps USDA to measure
its effectiveness in implementing its
regulations. The review will continue to
focus on:
• Identifying whether information
technology can be used to replace paper
submissions with electronic
submissions;
• Streamlining or redesigning existing
information collecting methods in order
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to reduce any burdens on the public for
participating in and complying with
USDA programs;
• Reducing duplication through
increased data sharing and harmonizing
programs that have similar regulatory
requirements; and
• Providing increased regulatory
flexibility to achieve desired program
outcomes and save money.
Please provide information on these
issues in your comment as specified in
the ADDRESSES section. Specific
comments addressing the issues raised
above are most helpful; all comments
are welcome. Proposals for alternatives
should address data sources, costs, and
the provisions of the 2014 Farm Bill that
support the alternative. The following
suggestions may be helpful for
preparing your comments:
• Explain your views as clearly as
possible.
• Describe any assumptions that you
used.
• Provide any technical information
and data on which you based your
views.
• Provide specific examples to
illustrate your points.
• Offer specific alternatives to the
current regulations or policies and
indicate the source of necessary data,
the estimated cost of obtaining the data,
and how the data can be verified.
• Submit your comments to be
received by FSA by the comment period
deadline.
Effective Date
The Administrative Procedure Act (5
U.S.C. 553) provides generally that
before rules are issued by Government
agencies, the rule is required to be
published in the Federal Register, and
the required publication of a substantive
rule is to be not less than 30 days before
its effective date. However, Section 2608
of the 2014 Farm Bill provides that this
interim rule be effective on publication.
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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.
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The Office of Management and Budget
(OMB) designated this rule as
significant under Executive Order
12866, ‘‘Regulatory Planning and
Review,’’ and, therefore, OMB has
reviewed this rule. A summary of the
cost-benefit analysis of this rule is
provided below and the full cost benefit
analysis is available on regulations.gov.
Cost Benefit Analysis Summary
Estimated costs to persons and the
government through 2020 are expected
to be between $55 million and $86.5
million for the conservation compliance
requirements and $10 million for the
wetlands mitigation banking that
reflects new authority to operate or
work with third parties to operate a
wetland mitigation banking program.
These are the total costs, not annual
costs. While the $10 million may
increase wetland mitigation bank
activity, the negligible amount in the
agricultural context to date makes it
impossible to estimate the impact this
will have on conservation compliance
costs.
Implementing the 2014 Farm Bill
provisions for conservation compliance
is expected to result in benefits of
extending HEL and wetland
conservation provisions to up to 1.5
million acres of HEL and 1.1 million
acres of wetlands, which could reduce
soil erosion, enhance water quality, and
create wildlife habitat.
For the conservation compliance
requirements, given that most persons
who have Federal crop insurance are
already subject to conservation
compliance due to participation in other
USDA programs, the benefits as a whole
are expected to extend HEL and wetland
conservation provisions to up to 1.5
million acres of HEL and 1.1 million
acres of wetlands and could reduce soil
erosion, enhance water quality, and
create wildlife habitat. Ecological
benefits could be measurable on
individual properties if those properties
were not previously subject to
conservation compliance and were not
in compliance, which is not expected to
be common. We estimate that between
16,000 and 25,000 persons or entities
will be impacted by the expanded
requirements, and that slightly less than
a third of those producers will need a
conservation plan.
The conservation compliance
provisions have been in place since
1985, and the interim rule will not
impose any new compliance costs on
persons that were already in
compliance. There will be increased
training and staffing costs associated
with ensuring that NRCS staff conduct
HEL and wetland determinations
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correctly for persons who receive
subsidy premiums for Federal crop
insurance. Government costs for making
wetlands and HEL determinations,
developing conservation plans for
producers, providing technical
assistance, and providing financial
assistance with implementation costs
for conservation practices, are expected
to total between $19.7 million and $30.9
million between 2015 and 2020.
Producers’ costs for implementing
conservation practices to achieve
compliance are estimated at between
$35.3 million and $55.5 million
between 2015 and 2020, for a one-time
overall cost to the government and to
producers combined of $55 million to
$86.5 million.
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 whenever an agency is required by
the Administrative Procedure Act or any
other law to publish a proposed rule,
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. All conservation compliance
eligibility requirements are the same for
all persons regardless of the size of their
farming operation. This rule is not
subject to the Regulatory Flexibility Act
because the Secretary of Agriculture and
FSA are not required by any law to
publish a proposed rule for this
rulemaking initiative.
National Environmental Policy Act
(NEPA)
The environmental impacts of this
rule have been considered in a manner
consistent with the provisions of 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). The 2014 Farm
Bill mandates the expansion of current
conservation compliance requirements
to apply to persons who obtain
subsidized Federal crop insurance
under FCIA and it slightly modifies the
existing wetlands ‘‘Mitigation Banking’’
program to remove the requirement that
USDA hold easements in the mitigation
program. These are mandatory
provisions and USDA does not have
discretion over whether or not they are
implemented. We have determined that
the limited discretion in the way in
which the mandatory provisions can be
implemented are administrative
clarifications of aspects that were not
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defined in the mandatory provisions;
therefore, they are not subject to review
under NEPA. As such, USDA will not
prepare an environmental assessment or
environmental impact statement for this
regulatory action.
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. This program is not
subject to Executive Order 12372, which
requires consultation with State and
local officials. See the notice related to
7 CFR part 3015, subpart V, published
in the Federal Register on June 24, 1983
(48 FR 29115).
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule will not preempt State
or local laws, regulations, or policies
unless they present an irreconcilable
conflict with this rule. The rule has
retroactive effect in that the provisions
in this rule apply to all actions taken
after February 7, 2014, (the date of
enactment of the 2014 Farm Bill) by
USDA program participants. Before any
judicial action may be brought regarding
the provisions of this rule, appeal
provisions of 7 CFR parts 11, 614, and
780 must be exhausted.
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Executive Order 13132
This rule has been reviewed under
Executive Order 13132, ‘‘Federalism.’’
The policies contained in this rule do
not have any substantial direct effect on
States, on the relationship between the
Federal government and the States, or
on the distribution of power and
responsibilities among the various
levels of government. 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 in
accordance with Executive Order 13175,
‘‘Consultation and Coordination with
Indian Tribal Governments.’’ Executive
Order 13175 requires Federal agencies
to consult and coordinate with tribes on
a government-to-government basis on
policies that have tribal implications,
including regulations, legislative
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comments or proposed legislation, and
other policy statements or actions that
have substantial direct effects on one or
more Indian tribes, on the relationship
between the Federal Government and
Indian tribes or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.
USDA has assessed the impact of this
rule on Indian tribes and determined
that this rule does not, to our
knowledge, have tribal implications that
require tribal consultation under
Executive Order 13175. If a Tribe
requests consultation, FSA, NRCS, or
RMA will work with the USDA Office
of Tribal Relations to ensure meaningful
consultation is provided where changes,
additions, and modifications identified
in this rule are not expressly mandated
by the 2014 Farm Bill.
The Unfunded Mandates Reform Act of
1995
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA, Pub. L.
104–4) requires Federal agencies to
assess the effects of their regulatory
actions on State, local, and Tribal
governments, or the private sector.
Agencies generally need to 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 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 Unfunded Mandates Reform
Act of 1995 (UMRA, Pub. L. 104–4). In
addition, the Secretary of Agriculture is
not required to publish a notice of
proposed rulemaking for this rule.
Therefore, this rule is not subject to the
requirements of sections 202 and 205 of
UMRA.
Federal Assistance Programs
This rule has a potential impact on
participants for many programs listed in
the Catalog of Federal Domestic
Assistance in the Agency Program Index
under the Department of Agriculture.
Paperwork Reduction Act
Section 2608 of the 2014 Farm Bill
provides that regulations issued under
Title II—Conservation are exempt from
the requirements of the Paperwork
Reduction Act (44 U.S.C. Chapter 35).
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E-Government Act Compliance
USDA 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 12
Administrative practice and
procedure, Coastal zone, Crop
insurance, Flood plains, Loan
programs—agriculture, Price support
programs, Reporting and recordkeeping
requirements, Soil conservation.
For the reasons explained above,
USDA amends 7 CFR part 12 as follows:
PART 12—HIGHLY ERODIBLE LAND
CONSERVATION AND WETLAND
CONSERVATION
1. The authority citation for 7 CFR
part 12 is revised to read as follows:
■
Authority: 16 U.S.C. 3801, 3811–12, 3812a,
3813–3814, and 3821–3824.
2. Revise the heading for part 12 to
read as set forth above.
■ 3. In § 12.2(a) add definitions, in
alphabetical order, for ‘‘Approved
insurance provider,’’ ‘‘FCIC,’’
‘‘Reinsurance year,’’ and ‘‘RMA’’ to read
as follows:
■
§ 12.2
Definitions.
(a) * * *
Approved insurance provider means a
private insurance company that has
been approved and reinsured by FCIC to
provide insurance coverage to persons
participating in programs authorized by
the Federal Crop Insurance Act, as
amended (7 U.S.C. 1501–1524).
*
*
*
*
*
FCIC means the Federal Crop
Insurance Corporation, a wholly owned
corporation within USDA whose
programs are administered by RMA.
*
*
*
*
*
Reinsurance year means a 1-year
period beginning July 1 and ending on
June 30 of the following year, identified
by reference to the year containing June.
*
*
*
*
*
RMA means the Risk Management
Agency, an agency within USDA that
administers the programs of the FCIC
through which Federally reinsured crop
insurance is provided to American
farmers and ranchers.
*
*
*
*
*
■ 4. Revise § 12.3 to read as follows:
§ 12.3
Applicability.
(a) The provisions of this part apply
to all land, including Indian tribal land,
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in the 50 States, the District of
Columbia, the Commonwealth of Puerto
Rico, Guam, the Virgin Islands of the
United States, American Samoa, and the
Commonwealth of the Northern Mariana
Islands.
(b) The rules in this part are
applicable to all current and future
determinations on matters within the
scope of this part. Nothing in these rules
relieves any person of any liability
under previous versions of these rules.
(c) Notwithstanding paragraph (b) of
this section, for the purpose of
eligibility for Federal crop insurance
premium subsidy for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524), the
provisions of this part apply to final
HEL and wetland conservation
determinations, including all
administrative appeals, after February 7,
2014, on matters within the scope of
this part.
(1) For acts or situations of noncompliance or failure to certify
compliance according to this part,
ineligibility for Federal crop insurance
premium subsidies will be applied
beginning with the 2016 reinsurance
year for any Federally reinsured policy
or plan of insurance with a sales closing
date on or after July 1, 2015.
(2) [Reserved]
■ 5. Amend § 12.4 as follows:
■ a. In paragraph (a), introductory text,
remove the cross reference ‘‘in § 12.5’’
and add the cross reference ‘‘in §§ 12.5
or 12.13’’ in its place;
■ b. In paragraph (a)(2), remove the
words ‘‘on wetland’’ and add the words
‘‘on a wetland’’ in their place;
■ c. In paragraph (c):
■ i. At the beginning of the first and
second sentences, remove the words ‘‘A
person’’ and add the words ‘‘Except as
provided in § 12.13, a person’’ in their
place;
■ ii. In the first and second sentences,
remove the words ‘‘shall be’’ and
replace them with the word ‘‘is’’;
■ iii. In the third sentence, remove the
cross reference ‘‘or (a)(3)’’; and
■ iv. In the fourth sentence, remove the
words ‘‘shall be considered to’’ and
replace it with the word ‘‘will be
considered in’’;
■ d. Revise paragraph (d)(1);
■ e. In paragraph (d)(5), remove the
period at its end and add the word and
punctuation ‘‘and;’’ in its place;
■ f. Add paragraph (d)(6); and
■ g. Remove paragraph (f) and
redesignate paragraphs (g) and (h) as
paragraphs (f) and (g), respectively.
The revisions and addition read as
follows:
§ 12.4
*
Determination of ineligibility.
*
*
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*
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(d) * * *
(1) Contract payments, marketing
assistance loans, and any type of price
support or payment made available
under the Agricultural Act of 2014, the
Commodity Credit Corporation Charter
Act (15 U.S.C. 714b and 714c), or
successor Acts.
*
*
*
*
*
(6) Federal crop insurance premium
subsidies for a policy or plan of
insurance offered under the Federal
Crop Insurance Act (7 U.S.C. 1501–
1524).
*
*
*
*
*
§ 12.5
[Amended]
6. Amend § 12.5 as follows:
a. In paragraph (b)(4)(i)(C), remove the
word ‘‘pilot’’; and
■ b. In paragraph (b)(4)(i)(E), add the
words and punctuation ‘‘or in the case
of a mitigation bank operated under a
USDA program, an entity approved by
USDA,’’ immediately after the word
‘‘USDA’’.
■ 7. Amend § 12.6 as follows:
■ a. Revise paragraph (a);
■ b. In paragraph (b)(3)(x), add the
words ‘‘plan or’’ immediately before the
word ‘‘system’’;
■ c. In paragraph (c)(1), remove the
words ‘‘Deputy Chief for Natural
Resources Conservation Programs’’ and
add the words ‘‘Associate Chief for
Conservation’’ in their place;
■ d. In paragraph (c)(2)(iii)(B), remove
the word ‘‘By’’; and
■ e. Add paragraphs (c)(10), (f), and (g).
The revision and additions read as
follows:
■
■
§ 12.6
Administration.
(a) General. In general determinations
will be made as follows:
(1) Except as provided in paragraph
(a)(2) of this section, a determination of
ineligibility for benefits in accordance
with the provisions of this part will be
made by the agency of USDA to which
the person has applied for benefits. All
determinations required to be made
under the provisions of this part will be
made by the agency responsible for
making such determinations, as
provided in this section.
(2) Eligibility for Federal crop
insurance premium subsidies will be
based on final determinations, including
all administrative appeals, made by
NRCS and FSA. Neither RMA, FCIC,
approved insurance providers, or any
employee, agent, or contractors thereof,
will make any determination regarding
compliance with the highly erodible
land or wetland provisions of this part,
unless specifically provided for in
§ 12.13.
*
*
*
*
*
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(c) * * *
(10) NRCS will operate a program or
work with third parties to establish
mitigation banks to assist persons in
complying with §§ 12.4(c) and
12.5(b)(4). Persons will be able to access
mitigation banks established or
approved through this program without
requiring the Secretary to hold an
easement in a mitigation bank.
*
*
*
*
*
(f) Administration by RMA. The
provisions of this part that are
applicable to RMA will be administered
under the general supervision of the
Administrator, RMA.
(1) Eligibility for Federal crop
insurance premium subsidies will be
based on the person’s:
(i) Accurate and timely filing of a
certification of compliance (Form AD–
1026 or successor form) with the
conservation compliance provisions;
and
(ii) Compliance with the conservation
compliance provisions.
(2) Ineligibility for Federal crop
insurance premium subsidies due to
violations of the conservation
compliance provisions will be based on
final determinations, including all
administrative appeals, made by NRCS
and FSA as provided in this part.
(3) Neither RMA nor FCIC will make
any determination of eligibility
regarding compliance with the highly
erodible land or wetland provisions in
this part, unless specifically provided
for in § 12.13.
(4) RMA will provide the applicable
information regarding determinations
made by NRCS and FSA to the
appropriate approved insurance
providers to ensure those
determinations affecting Federal crop
insurance premium subsidy eligibility
are implemented according to this part.
(g) Approved insurance providers. No
approved insurance provider or any
employee, agent, or contractor of an
approved insurance provider will:
(1) Make any determination of
eligibility regarding compliance with
the highly erodible land or wetland
provisions of this part; or
(2) Be responsible or liable for a
person’s eligibility for Federal crop
insurance premium subsidy under this
part, except in cases of fraud,
misrepresentation, or scheme and
device by the approved insurance
provider or any employee, agent, or
contractor thereof.
■ 8. Amend § 12.7 as follows:
■ a. In paragraph (a)(2), remove the
cross reference ‘‘under § 12.5’’ and add
the cross reference ‘‘under §§ 12.5 or
12.13’’ in its place; and
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■
b. Add paragraph (d).
The revision reads as follows:
§ 12.7
Certification of compliance.
*
*
*
*
*
(d) Timely filing. In order for a person
to be determined eligible for Federal
crop insurance premium subsidies for a
policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C.
1501–1524), the person must have Form
AD–1026 or successor form on file with
FSA, as specified in § 12.13.
■ 9. Amend § 12.9 as follows:
■ a. Revise paragraphs (a) and (b)(1);
■ b. Redesignate paragraph (b)(2) as
paragraph (b)(3);
■ c. Add paragraph (b)(2);
■ d. In newly redesignated paragraph
(b)(3), remove the word ‘‘renter’’ both
times it appears, and add the word
‘‘sharecropper’’ in its place.
The revisions and addition read as
follows:
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§ 12.9
Landlords and tenants.
(a) Landlord eligibility. Landlord
eligibility will include the following:
(1) Except as provided in paragraph
(a)(2) of this section, the ineligibility of
a tenant or sharecropper for:
(i) Program benefits (as specified in
§ 12.4) except as provided in paragraph
(a)(1)(ii) of this section will not cause a
landlord to be ineligible for USDA
program benefits accruing with respect
to land other than those in which the
tenant or sharecropper has an interest;
and
(ii) Federal crop insurance premium
subsidies for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524)
will, in lieu of ineligibility for premium
subsidy, result in a reduction in the
amount of premium subsidy paid by
FCIC on all policies and plans of
insurance for the landlord.
(A) The percentage reduction will be
determined by comparing the total
number of cropland acres on the farm
on which the violation occurred to the
total number of cropland acres on all
farms in which landlord has an interest,
as determined by FSA.
(B) The farms and cropland acres used
to determine the premium subsidy
reduction percentage will be the farms
and cropland acres of the landlord for
the reinsurance year in which the tenant
or sharecropper is determined
ineligible.
(C) The percentage reduction will be
applied to all policies and plans of
insurance of the landlord in the
reinsurance year subsequent to the
reinsurance year in which the tenant or
sharecropper is determined ineligible.
(D) If the landlord and tenant or
sharecropper are insured under the
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same policy, the landlord will be
ineligible for premium subsidy on that
policy in lieu of a percentage reduction
on that policy.
(2) If the production of an agricultural
commodity on highly erodible land or
converted wetland by the landlord’s
tenant or sharecropper is required under
the terms and conditions of the
agreement between the landlord and
such tenant or sharecropper and such
agreement was entered into after
December 23, 1985, or if the landlord
has acquiesced in such activities by the
tenant or sharecropper:
(i) The provisions of paragraph
(a)(1)(i) of this section will not be
applicable to a landlord; and
(ii) A landlord will be ineligible for
premium subsidy on all policies and
plans of insurance in the reinsurance
year subsequent to the reinsurance year
in which the tenant or sharecropper is
determined ineligible.
(b) Tenant or sharecropper eligibility.
Tenant or sharecropper eligibility will
include the following:
(1) If all of the requirements in
paragraph (b)(2) of this section are met:
(i) The ineligibility of a tenant or
sharecropper, except as provided in
paragraph (b)(1)(ii) of this section, may
be limited to the program benefits listed
in § 12.4(b) accruing with respect to
only the farm on which the violation
occurred; and
(ii) In lieu of ineligibility for Federal
crop insurance premium subsidies for
all policies or plans of insurance under
the Federal Crop Insurance Act (7 U.S.C.
1501–1524), the premium subsidy on all
policies and plans of insurance of the
ineligible tenant or sharecropper will be
reduced.
(A) The percentage reduction will be
determined by comparing the total
number of cropland acres on the farm
on which the violation occurred to the
total number of cropland acres on all
farms in which tenant or sharecropper
has an interest, as determined by FSA.
(B) The farms and cropland acres used
to determine the premium subsidy
reduction percentage will be the farms
and cropland acres of the tenant or
sharecropper for the reinsurance year in
which the tenant or sharecropper is
determined ineligible.
(C) The percentage reduction will be
applied to all policies and plans of
insurance of the tenant or sharecropper
in the reinsurance year subsequent to
the reinsurance year in which the tenant
or sharecropper is determined
ineligible.
(D) If the landlord and tenant or
sharecropper are insured under the
same policy, the tenant or sharecropper
will be ineligible for premium subsidy
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on that policy in lieu of a percentage
reduction on that policy.
(2) The provisions of paragraph (b)(1)
of this section will not apply unless all
the following are met:
(i) The tenant or sharecropper shows
that a good-faith effort was made to
comply by developing an approved
conservation plan for the highly
erodible land in a timely manner and
prior to any violation of the provisions
of this part;
(ii) The owner of such farm refuses to
apply such a plan and prevents the
tenant or sharecropper from
implementing certain practices that are
a part of the approved conservation
plan; and
(iii) FSA determines that the lack of
compliance is not a part of a scheme or
device as described in § 12.10.
*
*
*
*
*
■ 10. Add § 12.13 to read as follows:
§ 12.13 Special Federal crop insurance
premium subsidy provisions.
(a) General. The provisions and
exemptions in this section are only
applicable to Federal crop insurance
premium subsidies for a policy or plan
of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524). The
exemptions in this section are in
addition to any that apply under § 12.5.
Any conflict between this section and
another will be resolved by applying
this section, but only for Federal crop
insurance premium subsidies. Any
exemptions or relief under this section
apply to Federal crop insurance
premium subsidies and do not apply to
other benefits even for the same person
for the same crop year or reinsurance
year. Unless otherwise specified in this
section, the provisions in this section
apply to both highly erodible land and
wetlands.
(b) Ineligibility for failing to certify
compliance. Subject to paragraphs (b)(2)
and (3) of this section, failing to certify
compliance as specified in § 12.7 will
result in ineligibility as follows:
(1) A Form AD–1026, or successor
form, for the person must be on file with
FSA on or before June 1 prior to the
beginning of the reinsurance year (July
1) in order for the person to be eligible
for any Federal crop insurance premium
subsidies for the reinsurance year.
Failure to file Form AD–1026, or
successor form, with FSA on or before
June 1 prior to the beginning of the
reinsurance year (July 1) will result in
ineligibility for premium subsidies for
the entirety of that reinsurance year.
(2) A person will have until the first
applicable crop insurance sales closing
date to provide information necessary
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for the person’s filing of a Form AD–
1026 if the person:
(i) Is unable to file a Form AD–1026
by June 1 due to circumstances beyond
the person’s control, as determined by
FSA; or
(ii) Files a Form AD–1026 by June 1
in good faith and FSA subsequently
determines that additional information
is needed, but the person is unable to
comply by July 1 due to circumstances
beyond the control of the person.
(3) A person who does not have Form
AD–1026, or successor form, on file
with FSA on or before June 1 prior to
the beginning of the reinsurance year
may be eligible for Federal crop
insurance premium subsidy for the
subsequent reinsurance year if the
person can demonstrate they began
farming for the first time after June 1 but
prior to the beginning of the reinsurance
year (July 1). For example, a person who
started farming for the first time on June
15, 2015, will be eligible for Federal
crop insurance premium subsidies for
the 2016 reinsurance year without a
Form AD–1026 on file with FSA.
However, in that case, the person must
file Form AD–1026 with FSA on or
before June 1, 2016 to be eligible for
premium subsidy for the 2017
reinsurance year.
(c) Ineligibility for violations. If a
person is ineligible due to a violation of
the provisions of this part, the timing
and results will be as follows:
(1) Unless an exemption in this
section or § 12.5 applies, ineligibility for
Federal crop insurance premium
subsidy for a policy or plan of insurance
under the Federal Crop Insurance Act (7
U.S.C. 1501–1524) due to a violation of
the provisions of this part will:
(i) Not apply to the reinsurance year
in which the violation occurred or any
reinsurance year prior to the date of the
final determination of a violation,
including all administrative appeals of
the determination, as determined by
NRCS or FSA as applicable; and
(ii) Only apply to reinsurance years
subsequent to the date of a final
determination of a violation, including
all administrative appeals of the
determination, as determined by NRCS
or FSA as applicable. A person who is
in violation of the provisions of this
part, as determined by FSA or NRCS, in
a reinsurance year, will, unless
otherwise exempted, be ineligible for
any Federal crop insurance premium
subsidy beginning with the subsequent
reinsurance year. For example, a person
who is determined to be in violation of
the provisions of this part and has
exhausted all administrative appeals on
June 1, 2015, (2015 reinsurance year)
will, unless otherwise exempted, be
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ineligible for Federal crop insurance
premium subsidy effective July 1, 2015,
the start of the 2016 reinsurance year,
and will not be eligible for any Federal
crop insurance premium subsidy for any
policy or plan of insurance during the
2016 reinsurance year. Even if the
person becomes compliant during the
2016 reinsurance year, the person will
not be eligible for Federal crop
insurance premium subsidy until the
2017 reinsurance year starting on July 1,
2016.
(2) Eligibility for Federal crop
insurance premium subsidy for a policy
or plan of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501–
1524) due to a violation of the
provisions of this part will be based on
FSA and NRCS final determinations,
including all administrative appeals,
regarding compliance with the
provisions of this part.
(3) The amount of premium subsidy
for an insured person will be reduced
when any person with a substantial
beneficial interest in the insured person
is ineligible for premium subsidy under
this part. The amount of reduction will
be commensurate with the ineligible
person’s substantial beneficial interest
in the insured person. The ineligible
person’s substantial beneficial interest
in the insured person will be
determined according to the policy
provisions of the insured person.
(4) Administrative appeals include
appeals made in accordance with
§ 12.12 and part 11 of this title, but do
not include any judicial review or
appeal, or any other legal action.
(d) Exemption to develop and comply
with an approved HEL conservation
plan. The following exemptions provide
a delay in the requirement to develop
and comply with an NRCS approved
HEL conservation plan for certain
persons.
(1) Persons subject to the provisions
of this part regarding highly erodible
land, specifically those related to
section 1211(a) of the Food Security Act
of 1985, as amended, for the first time
solely due to amendments to that
section by section 2611(a) of the
Agricultural Act of 2014 (16 U.S.C.
3811(a)(1)), will have 5 reinsurance
years after the date the person is
determined to have HEL and has
exhausted all administrative appeals, if
applicable, to develop and comply with
a conservation plan approved by NRCS
before being ineligible for Federal crop
insurance premium subsidies. The
additional time to develop and comply
with a conservation plan approved by
NRCS applies only to persons who have
not previously been subject to the
highly erodible land conservation
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provisions of this part. The additional
time provided in this paragraph does
not apply to any person who had any
interest in any land or crop, including
an affiliated person, that was subject to
the provisions of this part before
February 7, 2014. The 5 reinsurance
years to develop and comply with a
conservation plan approved by NRCS
starts:
(i) For persons who have no land with
an NRCS HEL determination, the 5
reinsurance years begins the start of the
reinsurance year (July 1) following the
date NRCS makes a HEL determination
and the person exhausts all their
administrative appeals; or
(ii) For persons who have any land for
which an NRCS HEL determination has
been made and all administrative
appeals have been exhausted, the 5
reinsurance years begins the start of the
reinsurance year (July 1) following the
date the person certifies compliance
with FSA to be eligible for USDA
benefits subject to the conservation
compliance provisions.
(2) Persons who meet all the following
criteria will have 2 reinsurance years
from the start of the reinsurance year
(July 1) following the date the person
certifies compliance with FSA to be
eligible for USDA benefits subject to the
conservation compliance provisions to
develop and comply with a
conservation plan approved by NRCS
before being ineligible for Federal crop
insurance premium subsidies:
(i) Were subject to the provisions of
this part regarding highly erodible land,
specifically those related to section
1211(a) of the Food Security Act of 1985
(16 U.S.C. 3811(a)(1)), as amended, any
time before February 7, 2014;
(ii) Before February 7, 2014, stopped
participating in all USDA programs
subject to the provisions of this part
regarding highly erodible land;
(iii) Would have been in violation of
the provisions of this part regarding
highly erodible land had they continued
to participate in those programs after
February 7, 2014; and
(iv) Are currently in violation of the
provisions of this part regarding highly
erodible land.
(e) Exemption for prior wetland
conversions completed prior to February
7, 2014. No person will be ineligible for
Federal crop insurance premium
subsidies for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524) for:
(1) Converting a wetland if the
wetland conversion was completed, as
determined by NRCS, before February 7,
2014; or
(2) Planting or producing an
agricultural commodity on a converted
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wetland if the wetland conversion was
completed, as determined by NRCS,
before February 7, 2014.
(f) Exemption for wetland conversion
that impacts less than 5 acres. The
following exemption is for wetland
conversion that impacts less than 5
acres of an entire farm:
(1) In lieu of ineligibility for Federal
crop insurance premium subsidies for a
policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C.
1501–1524) due to a wetland conversion
violation or concurrent with a planned
wetland conversion occurring after
February 7, 2014, a person may, if
approved by NRCS, pay a contribution
to NRCS in an amount equal to 150
percent of the cost of mitigating the
converted wetland, as determined by
NRCS.
(2) A person is limited to only one
exemption, as determined by NRCS,
described in paragraph (f)(1) of this
section per farm.
(3) NRCS will not refund this
payment even if the person later
conducts actions which will mitigate
the earlier conversion.
(g) Exemption for wetland conversion
when a policy or plan of insurance is
available to a person for the first time.
The following exemption is for wetland
conversion when a policy or plan of
insurance is available to the person for
the first time.
(1) When a policy or plan of insurance
that provides coverage for an
agricultural commodity is available to
the person, including as a person who
is a substantial beneficial interest
holder, for the first time after February
7, 2014, as determined by RMA,
ineligibility for Federal crop insurance
premium subsidies for such policy or
plan of insurance due to a wetland
conversion violation will only apply to
wetland conversions that are completed,
as determined by NRCS, after the date
the policy or plan of insurance first
becomes available to the person.
(2) The exemption described in
paragraph (g)(1) of this section:
(i) Applies only to the policy or plan
of insurance that becomes available to
the person for the first time after
February 7, 2014, as determined by
RMA;
(ii) Does not exempt or otherwise
negate the person’s ineligibility for
Federal crop insurance premium
subsidies on any other policy or plan of
insurance; and
(iii) Applies only if the person takes
steps necessary, as determined by
NRCS, to mitigate all wetlands
converted after February 7, 2014, in a
timely manner, as determined by NRCS,
but not to exceed 2 reinsurance years.
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(3) For the purposes of the paragraph
(g)(1) of this section:
(i) A policy or plan of insurance is
considered to have been available to the
person after February 7, 2014, if, after
February 7, 2014, in any county in
which the person had any interest in
any acreage, including as a person who
is a substantial beneficial interest
holder:
(A) There was a policy or plan of
insurance available on the county
actuarial documents that provided
coverage for the agricultural commodity;
or
(B) The person obtained a written
agreement to insure the agricultural
commodity in any county; and
(ii) Changing, adding, or removing
options, endorsements, or coverage to
an existing policy or plan of insurance
will not be considered as a policy or
plan of insurance being available for the
first time to a person.
(h) Wetland conversion mitigation
exemption. Unless another exemption
applies, the following exemption
provides additional time to mitigate
wetland conversions.
(1) A person determined to be in
violation of the provisions of this part
due to a wetland conversion occurring
after February 7, 2014, will have 1
reinsurance year after the final
determination of violation, including all
administrative appeals, as determined
by NRCS, to initiate a mitigation plan to
remedy the violation, as determined by
NRCS, before becoming ineligible for
Federal crop insurance premium
subsidies for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524.).
For example, if in May 2017, after NRCS
has determined that a person is in
violation for converting a wetland and
the person has exhausted all
administrative appeals, the person will
have until June 30, 2018, to initiate a
mitigation plan to remedy the violation
before becoming ineligible for Federal
crop insurance premium subsidies
starting with the 2019 reinsurance year.
(2) Notwithstanding paragraph (h)(1)
of this section, if a person determined
to be in violation of the provisions of
this part due to a wetland conversion
occurring after February 7, 2014, as
determined by NRCS, and is subject to
the provisions of this part for the first
time solely due to section 2611(b) of the
Agricultural Act of 2014, such person
will have 2 reinsurance years after the
final determination of violation,
including all administrative appeals, as
determined by NRCS, to be
implementing all practices in a
mitigation plan to remedy the violation,
as determined by NRCS, before
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22883
becoming ineligible for Federal crop
insurance premium subsidies for a
policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C.
1501–1524).
(3) Administrative appeals include
appeals made in accordance with
§ 12.12 and part 11 of this title, but do
not include any judicial review or
appeal, or any other legal action.
(i) Good faith exemption. The
following is a good faith exemption for
wetland conservation:
(1) A person determined by FSA or
NRCS to be in violation, including all
administrative appeals, of the
provisions of this part due to converting
a wetland after February 7, 2014, or
producing an agricultural commodity on
a wetland that was converted after
February 7, 2014, may regain eligibility
for Federal crop insurance premium
subsidies for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524) if
all of the following criteria are met:
(i) FSA determines that such person
acted in good faith and without the
intent to violate the wetland
conservation provisions of this part;
(ii) NRCS determines that the person
is implementing all practices in a
mitigation plan to remedy or mitigate
the violation within an agreed-to period,
not to exceed 2 reinsurance years; and
(iii) The good faith determination of
the FSA county or State committee has
been reviewed and approved by the
applicable State Executive Director,
with the technical concurrence of the
State Conservationist; or District
Director, with the technical concurrence
of the area conservationist.
(2) In determining whether a person
acted in good faith under paragraph
(i)(1)(i) of this section, FSA will
consider such factors as whether:
(i) The characteristics of the site were
such that the person should have been
aware that a wetland existed on the
subject land;
(ii) NRCS had informed the person
about the existence of a wetland on the
subject land;
(iii) The person has a record of
violating the wetland provisions of this
part or other Federal, State, or local
wetland provisions; or
(iv) There exists other information
that demonstrates the person acted with
the intent to violate the wetland
conservation provisions of this part.
(3) After the requirements of
paragraph (i)(1) of this section are met,
FSA may waive applying the
ineligibility provisions of this section to
allow the person to implement the
mitigation plan approved by NRCS. The
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waiver will apply for up to two
reinsurance years.
(j) Landlord and Tenant wetland
violations relief. The following provides
landlord and tenant relief for wetland
violations:
(1) Except as provided in (j)(2) of this
section, the ineligibility of a tenant or
sharecropper for Federal crop insurance
premium subsidies for a policy or plan
of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524)
will, in lieu of ineligibility for premium
subsidy, result in a reduction in the
amount of premium subsidy paid by
FCIC on all policies and plans of
insurance for the landlord.
(i) The percentage reduction will be
determined by comparing the total
number of cropland acres on the farm
on which the violation occurred to the
total number of cropland acres on all
farms in which landlord has an interest,
as determined by FSA.
(ii) The farms and cropland acres used
to determine the premium subsidy
reduction percentage will be the farms
and cropland acres of the landlord for
the reinsurance year in which the tenant
or sharecropper is determined
ineligible.
(iii) The percentage reduction will be
applied to all policies and plans of
insurance of the landlord in the
reinsurance year subsequent to the
reinsurance year in which the tenant or
sharecropper is determined ineligible.
(iv) If the landlord and tenant or
sharecropper are insured under the
same policy, the landlord will be
ineligible for premium subsidy on that
policy in lieu of a percentage reduction
on that policy.
(2) A landlord will be ineligible for
the premium subsidy on all policies and
plans of insurance in the reinsurance
year subsequent to the reinsurance year
in which the tenant or sharecropper is
determined ineligible if the production
of an agricultural commodity on a
converted wetland by the landlord’s
tenant or sharecropper is required under
the terms and conditions of the
agreement between the landlord and
such tenant or sharecropper and such
agreement was entered into after
February 7, 2014, or if the landlord has
acquiesced in such activities by the
tenant or sharecropper.
(3) If all the requirements in
paragraph (j)(4) of this section are met,
in lieu of ineligibility for Federal crop
insurance premium subsidies for all
policies or plans of insurance under the
Federal Crop Insurance Act (7 U.S.C.
1501–1524) for producing or planting an
agricultural commodity on a wetland
converted after February 7, 2014, the
premium subsidy on all policies and
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plans of insurance of the ineligible
tenant or sharecropper will be reduced.
(i) The percentage reduction will be
determined by comparing the total
number of cropland acres on the farm
on which the violation occurred to the
total number of cropland acres on all
farms in which tenant or sharecropper
has an interest, as determined by FSA.
(ii) The farms and cropland acres used
to determine the premium subsidy
reduction percentage will be the farms
and cropland acres of the tenant or
sharecropper for the reinsurance year in
which the tenant or sharecropper is
determined ineligible.
(iii) The percentage reduction will be
applied to all policies and plans of
insurance of the tenant or sharecropper
in the reinsurance year subsequent to
the reinsurance year in which the tenant
or sharecropper is determined
ineligible.
(iv) If the landlord and tenant or
sharecropper are insured under the
same policy, the tenant or sharecropper
will be ineligible for premium subsidy
on that policy in lieu of a percentage
reduction on that policy.
(4) The provisions of paragraph (j)(3)
of this section will not apply unless all
the following are met:
(i) The tenant or sharecropper shows
that a good-faith effort was made to
comply by developing a plan, approved
by NRCS, for the restoration or
mitigation of the converted wetland in
a timely manner and prior to any
violation;
(ii) The owner of such farm refuses to
apply such a plan and prevents the
tenant or sharecropper from
implementing the approved plan;
(iii) FSA determines the lack of
compliance is not a part of a scheme or
device as described in § 12.10; and
(iv) The tenant or sharecropper
actively applies the practices and
measures of the approved plan that are
within their control.
(k) Evaluation of certification. NRCS
will evaluate the certification in a
timely manner.
(1) A person who properly completes,
signs, and files Form AD–1026, or
successor form, with FSA certifying
compliance with the provisions of this
part will be eligible for Federal crop
insurance premium subsidies for a
policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C.
1501–1524) during the period of time
such certification is being evaluated by
NRCS, if an evaluation is required.
(2) A person will not be ineligible for
Federal crop insurance premium
subsidies for a policy or plan of
insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501–1524) if:
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(i) NRCS fails to complete a required
evaluation of the person’s Form AD–
1026, or successor form in a timely
manner after all documentation has
been provided to NRCS; and
(ii) The person is subsequently
determined to have been in violation of
the provisions of this part during the
time NRCS was completing the
evaluation.
(3) The relief from ineligibility
provided in paragraph (k)(2) of this
section:
(i) Applies only to violations that
occurred prior to or during the time
NRCS is completing the required
evaluation;
(ii) Does not apply to any violations
that occur subsequent to NRCS
completing the evaluation;
(iii) Does not apply if FSA or NRCS
determines the person employed,
adopted, or participated in employing or
adopting a scheme or device, as
provided in § 12.10, to evade the
provisions of this part or to become
eligible for the relief provided in
paragraph (k)(2) of this section; and
(iv) Does not apply if the required
evaluation is delayed due to unfavorable
site conditions for the evaluation of
soils, hydrology, or vegetation.
(l) Failing to notify FSA of a change.
Requirements to pay equitable
contribution for failing to notify FSA of
a change are as follows.
(1) A person who fails to notify FSA
of any change that could alter their
status as compliant with the provisions
of this part and is subsequently
determined, by FSA or NRCS, to have
committed a violation of the wetland
conservation provisions of this part after
February 7, 2014, will be required to
pay to NRCS an equitable contribution.
(2) The amount of equitable
contribution will be determined by
NRCS, but will not exceed the total
amount of Federal crop insurance
premium subsidy paid by FCIC on
behalf of the person for all policies and
plans of insurance for all years in which
the person is determined to have been
in violation.
(3) A person who fails to pay the full
equitable contribution amount by the
due date determined by NRCS will be
ineligible for Federal crop insurance
premium subsidy on any policy or plan
of insurance beginning with the
subsequent reinsurance year. The
person will be ineligible for Federal
crop insurance premium subsidy for the
entire reinsurance year even if full
payment of the equitable contribution
amount is received by NRCS during the
reinsurance year.
E:\FR\FM\24APR1.SGM
24APR1
Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Rules and Regulations
§ 12.31
[Amended]
SUPPLEMENTARY INFORMATION:
11. Amend § 12.31(b)(1), as follows:
a. Remove the words ‘‘in the National
List of Plant Species that Occur in
Wetlands’’ and add the words ‘‘in the
National Wetland Plant List, or (as
determined by NRCS) successor
publication’’ in their place; and
■ b. Remove the words ‘‘may be
obtained upon request from the U.S.
Fish and Wildlife Service at National
Wetland Inventory, Monroe Bldg. Suite
101, 9720 Executive Center Drive, St.
Petersburg, Florida 33702’’ and add the
words ‘‘may be accessed at: https://
rsgisias.crrel.usace.army.mil/NWPL/’’ in
their place.
■
■
§ 12.34
■
[Removed]
12. Remove § 12.34.
Signed on April 20, 2015.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2015–09599 Filed 4–23–15; 08:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
7 CFR Part 319
[Docket No. APHIS–2012–0014]
RIN 0579–AD68
Importation of Papayas From Peru
Animal and Plant Health
Inspection Service, USDA.
ACTION: Final rule.
AGENCY:
We are amending the
regulations to allow, under certain
conditions, the importation of
commercial consignments of fresh
papayas from Peru into the continental
United States. The conditions for the
importation of papayas from Peru will
include requirements for approved
production locations; field sanitation;
hot water treatment; procedures for
packing and shipping the papayas; and
fruit fly trapping in papaya production
areas. This action will allow for the
importation of papayas from Peru while
continuing to provide protection against
the introduction of quarantine pests into
the continental United States.
DATES: Effective May 26, 2015.
FOR FURTHER INFORMATION CONTACT: Ms.
Dorothy Wayson, Senior Regulatory
Coordination Specialist, Regulatory
Coordination and Compliance, PPQ,
APHIS, 4700 River Road, Unit 133,
Riverdale, MD 20737–1231; (301) 851–
2036.
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
15:47 Apr 23, 2015
Jkt 235001
Background
The regulations in ‘‘Subpart–Fruits
and Vegetables’’ (7 CFR 319.56–1
through 319.56–71, referred to below as
the regulations) prohibit or restrict the
importation of fruits and vegetables into
the United States from certain parts of
the world to prevent the introduction
and dissemination of plant pests that are
new to or not widely distributed within
the United States. The national plant
protection organization (NPPO) of Peru
has requested that the Animal and Plant
Health Inspection Service (APHIS)
amend the regulations to allow fresh
papayas (Carica papaya) to be imported
from Peru into the continental United
States.
On August 9, 2013, we published in
the Federal Register (78 FR 48628–
48631, Docket No. APHIS–2012–0014) a
proposal 1 to amend the regulations to
allow, under certain conditions, the
importation of commercial
consignments of fresh papayas from
Peru into the continental United States.
Consistent with the risk management
document that accompanied the
proposed rule, we proposed to require
that the papayas be subjected to a
systems approach to pest mitigation.
This proposed systems approach
included requirements to produce the
papayas at places of production
registered with the NPPO of Peru,
required packing procedures designed
to exclude quarantine pests, and
required fruit fly trapping, field
sanitation, and hot water treatment to
remove pests of concern from the
pathway. We proposed to allow only
commercial consignments of papayas to
be imported from Peru and to require
that consignments of papayas from Peru
be accompanied by a phytosanitary
certificate issued by the NPPO of Peru
stating that the papayas were grown,
packed, and shipped in accordance with
the proposed requirements.
We solicited comments concerning
our proposal for 60 days ending October
8, 2013. We received one comment by
that date, from a private citizen. The
commenter supported the risk
mitigation approach in the proposed
rule, but suggested that an integrated
pest management approach might also
be effective at managing the risk
associated with Ceratitis capitata, the
Mediterranean fruit fly.
We based the proposed risk
mitigations on those in § 319.56–25,
which have allowed the pest-free
1 To view the proposed rule and the comment we
received, go to https://www.regulations.gov/
#!docketDetail;D=APHIS-2012-0014.
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
22885
importation of papaya from certain areas
of Brazil, Central America, Colombia,
and Ecuador. We are open to alternative
approaches of mitigating C. capitata,
although we would need a request from
the NPPO of Peru to be submitted in
accordance with § 319.5 to begin
considering such approaches.
Therefore, for the reasons given in the
proposed rule and in this document, we
are adopting the proposed rule as a final
rule, without change.
Executive Order 12866 and Regulatory
Flexibility Act
This final rule has been determined to
be not significant for the purposes of
Executive Order 12866 and, therefore,
has not been reviewed by the Office of
Management and Budget.
In accordance with the Regulatory
Flexibility Act, we have analyzed the
potential economic effects of this action
on small entities. The analysis is
summarized below. Copies of the full
analysis are available on the
Regulations.gov Web site (see footnote 1
in this document for a link to
Regulations.gov) or by contacting the
person listed under FOR FURTHER
INFORMATION CONTACT.
This final rule will allow the
importation of fresh papaya fruit from
Peru into the continental United States.
Papaya is a relatively minor crop in the
United States that is primarily grown in
Hawaii and, to a lesser extent, in
Florida. Very small acreages of papaya
are found in Texas and California.
Peru is expected to ship up to 36
metric tons of fresh papaya to the
United States per year. This amount will
be equivalent to less than 0.03 percent
of net imports of fresh papaya by the
United States in 2012. With U.S. net
imports estimated to be at least eight
times as large as U.S. fresh papaya
production, any market effects of such
a relatively negligible change in papaya
imports are as likely to impact foreign
suppliers as they are U.S. producers. In
addition, effects for the majority of U.S.
papaya producers, who are located in
Hawaii, will be further muted by the
prohibition on entry of fresh papaya
from Peru into that State. While most,
if not all, U.S. papaya farms are small
entities, we expect this final rule to have
a very minor impact regardless of the
size of operation.
Under these circumstances, the
Administrator of the Animal and Plant
Health Inspection Service has
determined that this action will not
have a significant economic impact on
a substantial number of small entities.
E:\FR\FM\24APR1.SGM
24APR1
Agencies
[Federal Register Volume 80, Number 79 (Friday, April 24, 2015)]
[Rules and Regulations]
[Pages 22873-22885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09599]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 80, No. 79 / Friday, April 24, 2015 / Rules
and Regulations
[[Page 22873]]
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 12
RIN 0560-AI26
Conservation Compliance
AGENCY: Office of the Secretary and Farm Service Agency, USDA.
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the U.S. Department of Agriculture (USDA)
regulations that specify the conservation compliance requirements that
participants in USDA programs must meet to be eligible for certain USDA
benefits. The USDA benefits to which conservation compliance
requirements currently apply include marketing assistance loans, farm
storage facility loans, and payments under commodity, disaster, and
conservation programs. The conservation compliance requirements apply
to land that is either highly erodible land (HEL) or that is wetlands.
This rule amends the regulations to implement the Agricultural Act of
2014 (2014 Farm Bill) provisions that: make the eligibility for Federal
crop insurance premium subsidy benefits subject to conservation
compliance requirements; and convert the wetland mitigation banking
pilot to a program and authorizes $ 10 million for the Secretary to
operate a wetland mitigation banking program. This rule specifies the
conservation compliance requirements, exemptions, and deadlines that
apply in determining eligibility for Federal crop insurance premium
subsidy from the Federal Crop Insurance Corporation (FCIC). This rule
also modifies easement provisions relating to mitigation banks as
specified in the 2014 Farm Bill, and clarifies provisions regarding the
extent of agency discretion with respect to certain violations.
DATES: Effective date: April 24, 2015.
Date to certify compliance for Federal crop insurance premium
subsidy for 2016 reinsurance year: June 1, 2015.
Comment date: We will consider comments that we receive by June 23,
2015.
ADDRESSES: We invite you to submit comments on this interim rule. In
your comment, include the Regulation Identifier Number (RIN) and the
volume, date, and page number of this issue of the Federal Register.
You may submit comments by any of the following methods:
Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the online instructions for submitting
comments.
Mail, hand delivery, or courier: Daniel McGlynn,
Production, Emergencies and Compliance Division, Farm Service Agency
(FSA), United States Department of Agriculture (USDA), MAIL STOP 0517,
1400 Independence Avenue SW., Washington, DC 20250-0517.
Comments will be available online at https://www.regulations.gov. In
addition, comments will be available for public inspection at the above
address during business hours from 8 a.m. to 5 p.m., Monday through
Friday, except holidays. A copy of this interim rule is available
through the FSA home page at https://www.fsa.usda.gov/.
FOR FURTHER INFORMATION CONTACT: Daniel McGlynn; telephone: (202) 720
7641. Persons with disabilities who require alternative means for
communication should contact the USDA Target Center at (202) 720-2600.
SUPPLEMENTARY INFORMATION:
Background
The conservation compliance provisions in the current regulations
at 7 CFR part 12 were originally authorized by the Food Security Act of
1985 (Pub. L. 99-198, referred to as the 1985 Farm Bill). Generally,
the regulations specify that a person is ineligible for certain USDA
benefits if they undertake certain activities relating to HEL and
wetlands, specifically those involving planting agricultural
commodities on HEL or a wetland, or converting a wetland for
agricultural purposes.
HEL is cropland, hayland or pasture that can erode at excessive
rates. As specified in Sec. 12.21, soil map units and the erodibility
index are used as the basis for identifying HEL. The erodibility index
is a numerical value that expresses the potential erodibility of a soil
in relation to its soil loss tolerance value without consideration of
applied conservation practices or management. A field is identified as
highly erodible if it contains a critical amount of soil map units with
an erodibility index of eight or more. If a producer has a field
identified as HEL, that producer is required to maintain a conservation
system of practices that keeps erosion rates at a substantial reduction
of soil loss in order to receive certain USDA benefits. Additional
information can be found at https://www.nrcs.usda.gov/wps/portal/nrcs/detail/wi/programs/?cid=nrcs142p2_020795.
A ``wetland'' is an area that has a predominance of wet soils; is
inundated or saturated by surface or groundwater at a frequency and
duration sufficient to support a prevalence of water tolerant
vegetation typically adapted for life in saturated soil conditions; and
under normal circumstances supports a prevalence of such vegetation.
The major difference between the prior regulations for conservation
compliance in 7 CFR part 12 and this rule is that persons who seek
eligibility for Federal crop insurance premium subsidy must comply with
the conservation compliance requirements as specified in this rule.
Many persons who obtain Federal crop insurance already receive benefits
from other USDA programs, for example, FSA programs that also require
compliance with the conservation compliance rules. Therefore, this new
requirement will only be a change for those persons who will be
required to comply with the conservation compliance rules for the first
time because of the 2014 Farm Bill.
The amendments made by section 2611 of the 2014 Farm Bill to the
conservation compliance rules only apply to eligibility for FCIC paid
premium subsidy. In addition, the time between the final determination
of a violation and the loss of eligibility for Federal crop insurance
premium subsidy is different from the other conservation compliance
rules as described below. Therefore, while a violation of conservation
compliance rules may not trigger an immediate loss of Federal crop
insurance premium
[[Page 22874]]
subsidy, it may trigger an immediate loss of other USDA program
benefits, including any FSA and Natural Resources Conservation Service
(NRCS) benefits specified in 7 CFR 12.4(d) and (e). Nothing in this
rule changes violations that may result from other laws or regulations
under the responsibility of another Federal government agency.
This interim rule amends the conservation compliance regulations in
7 CFR part 12 to:
(1) Implement 2014 Farm Bill (Pub. L. 113-79) provisions that make
the eligibility for Federal crop insurance premium subsidies subject to
conservation compliance provisions;
(2) Modify easement provisions relating to mitigation banks as
specified in the 2014 Farm Bill; and
(3) Clarify provisions regarding the extent of agency discretion
with respect to certain violations.
This rule also implements sections 2609 and 2611 of the 2014 Farm
Bill which amend provisions related to wetland mitigation banking and
clarifies provisions regarding the extent of agency discretion with
respect to certain violations. The provisions in this rule apply to all
actions taken after February 7, 2014 (the date of enactment of the 2014
Farm Bill) by persons participating in USDA's crop insurance program.
FSA handles conservation compliance administrative functions, while
technical determinations regarding HEL and wetlands are made by NRCS.
The 2014 Farm Bill extends conservation compliance requirements to the
eligibility for Federal crop insurance premium subsidy. Federal crop
insurance is authorized by the Federal Crop Insurance Act (FCIA) (7
U.S.C. 1501-1524). The Federal crop insurance program is administered
by the Risk Management Agency (RMA) on behalf of FCIC. Persons can
obtain Federally subsidized crop insurance from Approved Insurance
Providers (AIP), which are approved by RMA, on behalf of FCIC, to sell
and service Federal crop insurance policies. The Federal crop insurance
policies issued by these AIP are reinsured by FCIC in accordance with
the FCIA. The FCIA also authorizes FCIC to subsidize Federal crop
insurance premiums charged for the coverage provided by the Federal
crop insurance policies reinsured by FCIC.
FCIC published an interim rule on July 1, 2014, (79 FR 37155-37166)
that amended the Federal crop insurance regulations to implement the
same conservation compliance provisions from section 2611 of the 2014
Farm Bill as this rule in 7 CFR parts 400, 402, 407, and 457. This rule
is needed to make conforming changes to the general USDA regulations in
7 CFR part 12 that apply to programs from multiple USDA agencies.
New Federal Crop Insurance Subsidy Conservation Compliance Eligibility
Provisions
Section 2611 of the 2014 Farm Bill links conservation compliance to
eligibility for Federal crop insurance premium subsidies paid by FCIC.
Section 2611 provides exemptions and extended deadlines for certain
persons to achieve compliance.
Persons who have not participated in, and were not affiliated with
any person who participated in, any USDA program for which conservation
compliance was a requirement will have additional time to develop and
comply with an NRCS approved conservation plan for HEL. Section
2611(a)(2)(C) of the 2014 Farm Bill provides that persons who are
subject to the HEL conservation requirements for the first time solely
because of the linkage of conservation compliance to eligibility for
Federal crop insurance premium subsidy will have 5 reinsurance years to
develop and comply with a conservation plan approved by NRCS before
they become ineligible for Federal crop insurance premium subsidies.
The beginning of the 5 reinsurance year period depends on whether a
HEL determination was made on any of the land in the person's farming
operation and whether administrative appeal rights have been exhausted
for that determination. The 5 reinsurance year period begins:
For persons who have no land with an NRCS HEL
determination, the 5 reinsurance years begins the start of the
reinsurance year (July 1) following the date NRCS makes a HEL
determination and the person exhausts all their administrative appeals.
For persons who have any land for which a NRCS HEL
determination has been made and all administrative appeals have been
exhausted, the 5 reinsurance years begins the start of the reinsurance
year (July 1) following the date the person certifies compliance with
FSA to be eligible for USDA benefits subject to the conservation
compliance provisions.
Any affiliated person of a person requesting benefits that are
subject to HEL and wetland conservation provisions must also be in
compliance with those provisions. Such affiliated persons must also
file a Form AD-1026 if the affiliated person has a separate farming
interest. ``Affiliated persons'' include, with some exceptions, the
spouse and minor child of the person; the partnership, joint venture,
or other enterprise in which the person, spouse, or minor child of the
person has an ownership interest or financial interest; and a trust in
which the individual, business enterprise, or any person, spouse, or
minor child is a beneficiary or has a financial interest. In the case
of a violation, the offending person and affiliated persons such as
spouses and entities in which the offending person has an interest will
lose benefits at all their farming operation locations, not just the
locale of the violation.
In addition to the time lags and deadlines applicable to initial
compliance with this new conservation compliance requirement, there are
exemptions and reasonable timeframes to comply for later conservation
compliance issues. The exemptions and timelines described below apply
only to eligibility for Federal crop insurance premium subsidies, and
not compliance requirements for other USDA programs. As specified in
the 2014 Farm Bill and in this rule, ineligibility for Federal crop
insurance premium subsidy because of a conservation compliance
violation, whether associated with HEL or wetlands, will apply to
reinsurance years after the date of a final determination of a
violation, including all administrative appeals. Reinsurance years
start on July 1 of any given year and end the following June 30. As an
example, suppose that USDA determines that a violation occurred during
the 2017 calendar year, and the determination is final, including all
administrative appeals, on November 15, 2017, which is during the 2018
reinsurance year. The person will be ineligible for Federal crop
insurance premium subsidy no earlier than the 2019 reinsurance year,
which begins on July 1, 2018, and will remain ineligible until the
violation is remedied. The person will remain eligible for a premium
subsidy on any policies with a sales closing date before July 1, 2018.
In the case of wetland conservation requirements, as noted earlier,
ineligibility for premium subsidy due to a violation of the wetland
conservation provisions will be limited to wetland conservation
violations that occur after February 7, 2014, and for which a final
determination has been made and administrative appeals have been
exhausted. The 2014 Farm Bill also provides a limited exemption for
wetland conservation violations that occur after February 7, 2014, but
before Federal crop insurance for an agricultural commodity becomes
available to the person for the first time. This exemption provides up
to 2 reinsurance years to mitigate such
[[Page 22875]]
conversions. This rule specifies that USDA will consider Federal crop
insurance to be ``available'' to the person if in any county in which
the person had any interest in any acreage there is an FCIC-approved
policy or plan of insurance available on the county actuarial documents
that provide insurance for the crop, or the person obtained a written
agreement to insure the crop in any county.
A person that is subject to wetland conservation provisions for the
first time as a result of the 2014 Farm Bill will have 2 reinsurance
years after the reinsurance year in which the final determination of
violation is made, including all administrative appeals, to initiate a
mitigation plan to remedy or mitigate the violation before they become
ineligible for Federal crop insurance premium subsidies.
Persons not subject to the wetland conservation provisions for the
first time as a result of the 2014 Farm Bill will have 1 reinsurance
year after the reinsurance year in which the final determination of
violation is made, including all administrative appeals, to initiate a
mitigation plan to remedy or mitigate the violation before they become
ineligible for Federal crop insurance premium subsidies.
Persons determined ineligible for premium subsidy paid by FCIC for
a reinsurance year will be ineligible for a premium subsidy on all
their policies and plans of insurance, unless the specific exemptions
apply.
The 2014 Farm Bill included tenant relief provisions applicable to
the wetland conservation provisions, but only for Federal crop
insurance premium subsidies. In addition, the 2014 Farm Bill amendments
made the HEL tenant relief provisions applicable to eligibility for
Federal crop insurance premium subsidies. In both cases, the tenant
relief provisions provide that the Secretary may limit ineligibility
only to the farm that is the basis for the ineligibility. Federal crop
insurance policies under FCIA are constructed on the basis of persons,
counties, and units, which may include multiple farms. Although the
2014 Farm Bill used the word ``farm,'' FCIC does not allow for
differing terms of insurance on a ``farm'' basis, and therefore, does
not provide premium subsides on such basis. Therefore, with regard to
Federal crop insurance premium subsidy, application of the tenant
relief provisions will be achieved through a prorated reduction of
premium subsidy on all of a person's policies and plans of insurance.
Specifically, a tenant's or sharecropper's premium subsidy on all
policies and plans of insurance will be reduced, in lieu of
ineligibility for all premium subsidy, when the tenant or sharecropper
made a good faith effort to comply with the conservation compliance
provisions, the owner of the farm refuses to allow the tenant or
sharecropper to comply with the provisions, FSA determines there is no
scheme or device, and the tenant or sharecropper complies with the
provisions that are under their control. The reduction in premium
subsidy will be determined by comparing the total number of cropland
acres on the farm on which the violation occurs to the total number of
cropland acres on all farms in the nation in which the tenant or
sharecropper has an interest. The farms and cropland acres used to
determine the reduction percentage will be the farms and cropland acres
of the tenant or sharecropper for the reinsurance year in which the
tenant or sharecropper is determined ineligible. The percentage
reduction will be applied to all policies and plans of insurance of the
tenant or sharecropper in the reinsurance year subsequent to the
reinsurance year in which the tenant or sharecropper is determined
ineligible. A landlord's premium subsidy on all policies and plans of
insurance will be prorated in the same manner when the landlord is
determined in violation because of the actions or inactions of their
tenant or sharecropper.
Persons who were subject to HEL conservation requirements in the
past because they participated in USDA programs, stopped participating
in those programs before February 7, 2014, but would have been in
violation of the HEL requirements had they continued participation in
such programs after February 7, 2014, have 2 reinsurance years to
develop and comply with a conservation plan approved by NRCS before
they become ineligible for Federal crop insurance premium subsidies.
The 2 reinsurance years begins the start of the reinsurance year (July
1) following the date the person certifies compliance with FSA to be
eligible for USDA benefits subject to the conservation compliance
provisions.
For some wetland conversions that impact less than 5 acres on the
entire farm, a person may regain eligibility for Federal crop insurance
premium subsidy by making a payment equal to 150 percent of the cost of
mitigation of the converted wetland in lieu of restoring or mitigating
the lost wetland functions and values. The applicability of this
exemption is at the discretion and approval of NRCS and the funds will
be deposited in an account to be used later for wetland restoration.
This exception is in lieu of the mitigation actions that a person would
otherwise be required to conduct to restore the lost wetland functions
and values of the converted wetland. While it provides flexibility to a
person for how to remedy a small acreage violation, the text of the
exception indicates that the intention of the 2014 Farm Bill is to
limit the scope of its availability, specifying that it applies to any
violation that ``impacts less than 5 acres of the entire farm.'' To
ensure that this exception can be appropriately tracked and limit the
potential for its abuse, the regulation specifies that a person is
limited to only one exemption per farm. This is a discretionary change
USDA is making to ensure the integrity of the intention that it impacts
less than 5 acres of the entire farm and not just 5 acres per
occurrence, which could add up to impacting much more than the intended
5 acres. Additionally, USDA clarifies in the regulation that the
payment to the fund is not refundable, even if the person subsequently
restores the wetland that had been converted. This exemption applies
only to eligibility for Federal crop insurance premium subsidies.
For wetland conservation violations, if the person acted in good
faith and without intent to commit the violation, FSA may waive the
ineligibility provisions for 2 reinsurance years to allow the person to
remedy or mitigate the converted wetland.
What Federal Crop Insurance Participants Must Do To Remain Eligible for
Premium Subsidies
As required by section 2611 of the 2014 Farm Bill, all persons
seeking eligibility for Federal crop insurance premium subsidy must
have on file a certification of compliance (AD-1026) at the local FSA
office.
For the 2016 and every subsequent reinsurance year, the deadline to
file a Form AD-1026 is June 1 prior to the reinsurance year. Outreach
and informational materials for the 2016 reinsurance year will include
information on how to contact the local FSA office. Persons must have a
Form AD-1026 on file with FSA on or before the June 1 prior to the
beginning of a given reinsurance year (which begins on July 1). A
person will have until the first applicable crop insurance sales
closing date to provide the information for a Form AD-1026 if the
person either is unable to file a Form AD-1026 by June 1 due to
circumstances beyond the person's control, or the person in good faith
filed a Form AD-1026 and FSA subsequently determined that additional
information is needed but the person is unable to comply by July 1 due
to
[[Page 22876]]
circumstances beyond the person's control. A new AD-1026 only needs to
be filed if a change in the farming operation has occurred that results
in the previously filed AD-1026 being incorrect, or there has been a
violation of the HEL or wetland conservation provisions negating the
previously filed AD-1026.
On Form AD-1026, persons self-certify compliance with HEL and
wetland conservation requirements. If the person indicates on the form
that they have conducted an activity that might lead to a violation,
such as creating new drainage systems, land leveling, filling,
dredging, land clearing, excavation, or stump removal since 1985 on
their land, they will be asked for additional information that will be
forwarded to NRCS for evaluation. If NRCS fails to complete an
evaluation of the person's Form AD-1026, or successor form in a timely
manner after all documentation has been provided to NRCS, the person
will not be ineligible for Federal crop insurance premium subsidies for
a policy or plan of insurance for a violation that occurred prior to
NRCS completing the evaluation.
Failure to timely file a Form AD-1026 will result in ineligibility
for Federal crop insurance premium subsidies for the entire reinsurance
year, unless the person can demonstrate they began farming for the
first time after June 1 but prior to the beginning of the reinsurance
year. For example, a person who started farming for the first time on
June 15, 2015, will be eligible for Federal crop insurance premium
subsidies for the 2016 reinsurance year without a Form AD-1026 on file
with FSA. However, in that case, the person must file Form AD-1026 with
FSA on or before June 1, 2016 to be eligible for premium subsidy for
the 2017 reinsurance year.
Failure to notify USDA and revise the Form AD-1026 when required
may result in assessment of a monetary penalty, as determined by NRCS,
but the penalty will never exceed the total amount of Federal crop
insurance premium subsidy paid by FCIC for the person on all policies
and plans of insurance for all years the person is determined to have
been in violation. The monetary penalty is assessed for wetland
conservation compliance only.
USDA Service Centers will provide additional information and
assistance to persons in meeting compliance requirements. USDA will
determine a person's eligibility for premium subsidy paid by FCIC at a
time that is as close to the beginning of the next reinsurance year
(July 1) as practical. The determination will be based on FSA and NRCS
determinations regarding conservation compliance. For example, a person
who has a determination of ineligibility that is final on June 1, 2015,
(2015 reinsurance year) will, unless otherwise exempted, be ineligible
for premium subsidy effective July 1, 2015, the start of the 2016
reinsurance year, and will not be eligible for any premium subsidy for
any policies or plans of insurance during the 2016 reinsurance year.
Even if the person becomes compliant during the 2016 reinsurance year,
the person will not be eligible for premium subsidy until the 2017
reinsurance year, starting on July 1, 2016.
For acts or situations of non-compliance or failure to certify
compliance according to this part, ineligibility for Federal crop
insurance premium subsidies will be applied beginning with the 2016
reinsurance year for any Federally reinsured policy or plan of
insurance with a sales closing date on or after July 1, 2015.
Changes to Mitigation Bank Program Required by the 2014 Farm Bill
The rule also implements section 2609 of the 2014 Farm Bill, which
amends provisions related to wetland mitigation banking. Wetland
mitigation banking is a form of environmental market trading where
wetlands are created, enhanced, or restored to create marketable
wetland credits (acres and functions). The 1985 Farm Bill, the Clean
Water Act, and some State wetland laws specify that negative impacts to
existing wetlands can be mitigated by providing restored, enhanced, or
created wetlands as compensation for the losses. The replacement of
impacted wetlands with new wetlands is called wetland mitigation.
Wetland mitigation banking is a type of wetland mitigation where
wetlands are created, enhanced, or restored prior to impacts and the
wetlands are sold to those required to compensate for the impacts.
These credits are sold to others as compensation for unavoidable
wetland impacts. For more information on the existing wetlands
mitigation banking program, see https://www.nrcs.usda.gov/wps/portal/nrcs/main/national/water/wetlands/wmb/.
As specified in the current regulations, persons may maintain their
payment eligibility for most USDA benefits if the wetland values,
acreage, and functions of any wetland conversion activity are
adequately mitigated, as determined by NRCS, through the restoration of
a converted wetland, the enhancement of an existing wetland, or the
creation of a new wetland. However, agricultural mitigation options are
limited, and, to date, mitigation banks are not abundant nor are they
readily accessible. Section 2609 of the 2014 Farm Bill provides $10
million of the USDA's Commodity Credit Corporation funds to operate a
mitigation banking program and allows USDA to have third parties hold
the wetland mitigation easements, rather than USDA itself.
NRCS is modifying the mitigation bank provisions in this rule to
clarify who may hold title to wetland mitigation easements under the
wetland conservation provisions. The existing regulations require that
the person grant an easement to USDA to protect the wetland that is
providing the mitigation of wetland functions and benefits. Section
2609 of the 2014 Farm Bill specifies that USDA is no longer required to
hold the easements in a mitigation bank. Therefore, this rule amends 7
CFR 12.5 to authorize other qualifying entities, which are recognized
by USDA, to hold mitigation banking easements granted by a person who
wishes to maintain payment eligibility under the wetland conservation
provision, and remove the requirement that an easement be granted to
USDA for mitigation sites when part of a mitigation banking program
that is operated by USDA.
To encourage the development of mitigation banks, USDA will
implement a prioritized and competitive mitigation banking program
through an Announcement of Program Funding that focuses on agricultural
wetlands. Application selection criteria will emphasize areas with the
greatest opportunities for using wetland banking mitigation for
agricultural purposes.
General Provisions and Technical Clarifications
This rule updates the general applicability section by removing
unneeded references. Regulation changes in this rule do not affect past
obligations and liabilities. Reference to certain former territories of
the United States are removed because they were covered by 1985 Farm
Bill provisions as trust territories only and no longer have that
status.
This rule also makes a minor revision to the ineligibility
determination for wetland conservation violations to make the
regulation consistent with the statutory requirement; the change is to
clarify the limited circumstances for which partial ineligibility may
apply instead of complete ineligibility. Section 1221(b) of the 1985
Farm Bill (16 U.S.C. 3821) allows the Secretary to determine whether
all or a part of a person's
[[Page 22877]]
benefits will be lost because of violations for producing an
agricultural commodity on a converted wetland. There are two types of
wetland conservation violations in 16 U.S.C. 3821 that may result in
ineligibility for some or all of a person's benefits; those violations
are production on converted wetland (16 U.S.C. 3821(a)) and wetland
conversion (16 U.S.C. 3821(d)) for the purpose of agricultural
production. The consequences for the two types of wetland conservation
violations are not the same. For production on converted wetland, 16
U.S.C. 3821(a)(2) specifies that the person's ineligibility is to be in
an amount determined by the Secretary to be proportionate to the
severity of the violation and 16 U.S.C. 3821(b) further specifies that
if a person is determined to have produced an agricultural commodity on
converted wetland, the Secretary determines which of, and the amount
of, benefits for which the person will be ineligible due to that
violation. For a wetland conversion violation, 16 U.S.C. 3821(d)
provides that if a person converts a wetland making the production of
an agricultural commodity possible on such converted wetland, the
person will be ineligible for benefits for that crop year and all
subsequent crop years. There is no authority under 16 U.S.C. 3821 for
the Secretary to make a determination of only partial ineligibility for
a wetland conversion violation, or allow a reduction in benefits
proportionate to the severity of the violation or a limited reduction
to certain benefits or amounts instead of complete ineligibility.
Unless an exemption applies, a wetland conversion violation results in
ineligibility for all benefits for the year of violation and all
subsequent years. In the past, the text in Sec. 12.4(c) has been used
by persons who have been determined to have converted a wetland to
argue that the Secretary has discretion to partially reduce
ineligibility for a wetland conversion in the same manner allowed by 16
U.S.C. 3821 for a violation of production on converted wetland. There
is no such discretion authorized under 16 U.S.C. 3821 for a wetland
conversion; therefore, the reference to a potential reduction in
ineligibility for wetland conversion is being removed by this rule. The
specific change is to remove the reference to paragraph (a)(3) for the
potential ineligibility reduction.
A section with obsolete information on information collection
requirements is removed.
Notice and Comment
In general, the Administrative Procedure Act (5 U.S.C. 553)
requires that a notice of proposed rulemaking be published in the
Federal Register and interested persons be given an opportunity to
participate in the rulemaking through submission of written data,
views, or arguments with or without opportunity for oral presentation,
except when the rule involves a matter relating to public property,
loans, grants, benefits, or contracts. Section 2608 of the 2014 Farm
Bill requires that the programs of Title II be implemented by interim
rules effective on publication with an opportunity for notice and
comment.
Comments Requested
The primary purpose of this rule is to revise USDA conservation
compliance regulations to incorporate the 2014 Farm Bill provisions
that make persons receiving Federal crop insurance premium subsidies
subject to conservation compliance requirements. As noted above, FCIC
published an interim rule on July 1, 2014, that amended Federal crop
insurance regulations to implement this provision from section 2611 of
the 2014 Farm Bill. This rule is making conforming changes to the
general USDA regulations in 7 CFR part 12 that apply to programs from
multiple USDA agencies.
The amendments made by section 2611 of the 2014 Farm Bill, and
included in this rule, extend the existing conservation compliance
requirements to apply to FCIC premium subsidy recipients. Section 2611
does not include any changes to the existing requirements for
conservation compliance (often referred to as ``Sodbuster'' and
``Swampbuster'') specified in the 1985 Farm Bill and in 16 U.S.C. 3801-
3824, the definition of HEL, the Wetland Conservation Program, or other
conservation programs. However, in the context of making the regulatory
changes required by section 2611, we are requesting comments on
specific changes USDA could consider making.
For example, all persons who produce agricultural commodities are
required to protect all cropland classified as HEL from excessive
erosion as a condition of eligibility for USDA programs. On lands which
have a cropping history prior to December 23, 1985, compliance
conservation systems must result in a ``substantial reduction'' in soil
erosion. On lands converted to crop production after December 23, 1985,
compliance conservation systems must result in ``no substantial
increase'' in soil erosion. USDA has a goal of working with farmers to
help them stay in compliance or bring them into compliance through
progressive planning and implementation. We welcome comments on what
additional steps USDA could take to achieve these goals. Agricultural
production techniques have changed significantly since the passage of
the 1985 Farm Bill. While conservation systems provide a substantial
reduction in soil erosion, are there additional conservation activities
that USDA could consider to ensure that agricultural production and
soil erosion reduction goals from HEL soils are met?
As another example, since December 23, 1985, the ``Swampbuster''
provision helps preserve the environmental functions and values of
wetlands, including flood control, sediment control, groundwater
recharge, water quality, wildlife habitat, recreation, and esthetics.
Agricultural production techniques have changed significantly since the
passage of the 1985 Farm Bill. Are there additional steps USDA should
consider to ensure these benefits for wetlands are retained?
In your comments, please suggest specific alternatives and provide
data, if available, for the suggestion as it relates to the goals of
conservation compliance. Specifically, USDA requests comments on the
following questions:
What information could USDA collect to simplify the
conservation compliance process, expedite determinations, and allow the
USDA to identify more complex determination requests to evaluate first?
What information could USDA reasonably collect that would
provide more information on derived conservation benefits from
conservation compliance activities? What would be the burden of
collecting that information?
With the addition of new persons being subject to
conservation compliance requirements, how should USDA prioritize the
evaluation of the submitted Form AD-1026 information?
USDA is also requesting comments on conservation compliance for the
retrospective review of regulations initiative. In accordance with
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
and Executive Order 13610, ``Identifying and Reducing Regulatory
Burdens,'' USDA continues to review its existing regulations as well as
its methods for gathering information. This evaluation helps USDA to
measure its effectiveness in implementing its regulations. The review
will continue to focus on:
Identifying whether information technology can be used to
replace paper submissions with electronic submissions;
Streamlining or redesigning existing information
collecting methods in order
[[Page 22878]]
to reduce any burdens on the public for participating in and complying
with USDA programs;
Reducing duplication through increased data sharing and
harmonizing programs that have similar regulatory requirements; and
Providing increased regulatory flexibility to achieve
desired program outcomes and save money.
Please provide information on these issues in your comment as
specified in the ADDRESSES section. Specific comments addressing the
issues raised above are most helpful; all comments are welcome.
Proposals for alternatives should address data sources, costs, and the
provisions of the 2014 Farm Bill that support the alternative. The
following suggestions may be helpful for preparing your comments:
Explain your views as clearly as possible.
Describe any assumptions that you used.
Provide any technical information and data on which you
based your views.
Provide specific examples to illustrate your points.
Offer specific alternatives to the current regulations or
policies and indicate the source of necessary data, the estimated cost
of obtaining the data, and how the data can be verified.
Submit your comments to be received by FSA by the comment
period deadline.
Effective Date
The Administrative Procedure Act (5 U.S.C. 553) provides generally
that before rules are issued by Government agencies, the rule is
required to be published in the Federal Register, and the required
publication of a substantive rule is to be not less than 30 days before
its effective date. However, Section 2608 of the 2014 Farm Bill
provides that this interim rule be effective on publication.
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
significant under Executive Order 12866, ``Regulatory Planning and
Review,'' and, therefore, OMB has reviewed this rule. A summary of the
cost-benefit analysis of this rule is provided below and the full cost
benefit analysis is available on regulations.gov.
Cost Benefit Analysis Summary
Estimated costs to persons and the government through 2020 are
expected to be between $55 million and $86.5 million for the
conservation compliance requirements and $10 million for the wetlands
mitigation banking that reflects new authority to operate or work with
third parties to operate a wetland mitigation banking program. These
are the total costs, not annual costs. While the $10 million may
increase wetland mitigation bank activity, the negligible amount in the
agricultural context to date makes it impossible to estimate the impact
this will have on conservation compliance costs.
Implementing the 2014 Farm Bill provisions for conservation
compliance is expected to result in benefits of extending HEL and
wetland conservation provisions to up to 1.5 million acres of HEL and
1.1 million acres of wetlands, which could reduce soil erosion, enhance
water quality, and create wildlife habitat.
For the conservation compliance requirements, given that most
persons who have Federal crop insurance are already subject to
conservation compliance due to participation in other USDA programs,
the benefits as a whole are expected to extend HEL and wetland
conservation provisions to up to 1.5 million acres of HEL and 1.1
million acres of wetlands and could reduce soil erosion, enhance water
quality, and create wildlife habitat. Ecological benefits could be
measurable on individual properties if those properties were not
previously subject to conservation compliance and were not in
compliance, which is not expected to be common. We estimate that
between 16,000 and 25,000 persons or entities will be impacted by the
expanded requirements, and that slightly less than a third of those
producers will need a conservation plan.
The conservation compliance provisions have been in place since
1985, and the interim rule will not impose any new compliance costs on
persons that were already in compliance. There will be increased
training and staffing costs associated with ensuring that NRCS staff
conduct HEL and wetland determinations correctly for persons who
receive subsidy premiums for Federal crop insurance. Government costs
for making wetlands and HEL determinations, developing conservation
plans for producers, providing technical assistance, and providing
financial assistance with implementation costs for conservation
practices, are expected to total between $19.7 million and $30.9
million between 2015 and 2020. Producers' costs for implementing
conservation practices to achieve compliance are estimated at between
$35.3 million and $55.5 million between 2015 and 2020, for a one-time
overall cost to the government and to producers combined of $55 million
to $86.5 million.
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 whenever an agency is required by the
Administrative Procedure Act or any other law to publish a proposed
rule, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
All conservation compliance eligibility requirements are the same for
all persons regardless of the size of their farming operation. This
rule is not subject to the Regulatory Flexibility Act because the
Secretary of Agriculture and FSA are not required by any law to publish
a proposed rule for this rulemaking initiative.
National Environmental Policy Act (NEPA)
The environmental impacts of this rule have been considered in a
manner consistent with the provisions of 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). The 2014 Farm Bill mandates the expansion of current conservation
compliance requirements to apply to persons who obtain subsidized
Federal crop insurance under FCIA and it slightly modifies the existing
wetlands ``Mitigation Banking'' program to remove the requirement that
USDA hold easements in the mitigation program. These are mandatory
provisions and USDA does not have discretion over whether or not they
are implemented. We have determined that the limited discretion in the
way in which the mandatory provisions can be implemented are
administrative clarifications of aspects that were not
[[Page 22879]]
defined in the mandatory provisions; therefore, they are not subject to
review under NEPA. As such, USDA will not prepare an environmental
assessment or environmental impact statement for this regulatory
action.
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. This program is not subject to Executive Order 12372,
which requires consultation with State and local officials. See the
notice related to 7 CFR part 3015, subpart V, published in the Federal
Register on June 24, 1983 (48 FR 29115).
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule will not preempt State or local laws,
regulations, or policies unless they present an irreconcilable conflict
with this rule. The rule has retroactive effect in that the provisions
in this rule apply to all actions taken after February 7, 2014, (the
date of enactment of the 2014 Farm Bill) by USDA program participants.
Before any judicial action may be brought regarding the provisions of
this rule, appeal provisions of 7 CFR parts 11, 614, and 780 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
Federal government and the States, or on the distribution of power and
responsibilities among the various levels of government. 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 in accordance with Executive Order
13175, ``Consultation and Coordination with Indian Tribal
Governments.'' Executive Order 13175 requires Federal agencies to
consult and coordinate with tribes on a government-to-government basis
on policies that have tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian tribes, on the relationship between the Federal Government
and Indian tribes or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
USDA has assessed the impact of this rule on Indian tribes and
determined that this rule does not, to our knowledge, have tribal
implications that require tribal consultation under Executive Order
13175. If a Tribe requests consultation, FSA, NRCS, or RMA will work
with the USDA Office of Tribal Relations to ensure meaningful
consultation is provided where changes, additions, and modifications
identified in this rule are not expressly mandated by the 2014 Farm
Bill.
The Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4) requires Federal agencies to assess the effects of their
regulatory actions on State, local, and Tribal governments, or the
private sector. Agencies generally need to 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 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 Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L.
104-4). In addition, the Secretary of Agriculture is not required to
publish a notice of proposed rulemaking for this rule. Therefore, this
rule is not subject to the requirements of sections 202 and 205 of
UMRA.
Federal Assistance Programs
This rule has a potential impact on participants for many programs
listed in the Catalog of Federal Domestic Assistance in the Agency
Program Index under the Department of Agriculture.
Paperwork Reduction Act
Section 2608 of the 2014 Farm Bill provides that regulations issued
under Title II--Conservation are exempt from the requirements of the
Paperwork Reduction Act (44 U.S.C. Chapter 35).
E-Government Act Compliance
USDA 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 12
Administrative practice and procedure, Coastal zone, Crop
insurance, Flood plains, Loan programs--agriculture, Price support
programs, Reporting and recordkeeping requirements, Soil conservation.
For the reasons explained above, USDA amends 7 CFR part 12 as
follows:
PART 12--HIGHLY ERODIBLE LAND CONSERVATION AND WETLAND CONSERVATION
0
1. The authority citation for 7 CFR part 12 is revised to read as
follows:
Authority: 16 U.S.C. 3801, 3811-12, 3812a, 3813-3814, and 3821-
3824.
0
2. Revise the heading for part 12 to read as set forth above.
0
3. In Sec. 12.2(a) add definitions, in alphabetical order, for
``Approved insurance provider,'' ``FCIC,'' ``Reinsurance year,'' and
``RMA'' to read as follows:
Sec. 12.2 Definitions.
(a) * * *
Approved insurance provider means a private insurance company that
has been approved and reinsured by FCIC to provide insurance coverage
to persons participating in programs authorized by the Federal Crop
Insurance Act, as amended (7 U.S.C. 1501-1524).
* * * * *
FCIC means the Federal Crop Insurance Corporation, a wholly owned
corporation within USDA whose programs are administered by RMA.
* * * * *
Reinsurance year means a 1-year period beginning July 1 and ending
on June 30 of the following year, identified by reference to the year
containing June.
* * * * *
RMA means the Risk Management Agency, an agency within USDA that
administers the programs of the FCIC through which Federally reinsured
crop insurance is provided to American farmers and ranchers.
* * * * *
0
4. Revise Sec. 12.3 to read as follows:
Sec. 12.3 Applicability.
(a) The provisions of this part apply to all land, including Indian
tribal land,
[[Page 22880]]
in the 50 States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the Virgin Islands of the United States, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
(b) The rules in this part are applicable to all current and future
determinations on matters within the scope of this part. Nothing in
these rules relieves any person of any liability under previous
versions of these rules.
(c) Notwithstanding paragraph (b) of this section, for the purpose
of eligibility for Federal crop insurance premium subsidy for a policy
or plan of insurance under the Federal Crop Insurance Act (7 U.S.C.
1501-1524), the provisions of this part apply to final HEL and wetland
conservation determinations, including all administrative appeals,
after February 7, 2014, on matters within the scope of this part.
(1) For acts or situations of non-compliance or failure to certify
compliance according to this part, ineligibility for Federal crop
insurance premium subsidies will be applied beginning with the 2016
reinsurance year for any Federally reinsured policy or plan of
insurance with a sales closing date on or after July 1, 2015.
(2) [Reserved]
0
5. Amend Sec. 12.4 as follows:
0
a. In paragraph (a), introductory text, remove the cross reference ``in
Sec. 12.5'' and add the cross reference ``in Sec. Sec. 12.5 or
12.13'' in its place;
0
b. In paragraph (a)(2), remove the words ``on wetland'' and add the
words ``on a wetland'' in their place;
0
c. In paragraph (c):
0
i. At the beginning of the first and second sentences, remove the words
``A person'' and add the words ``Except as provided in Sec. 12.13, a
person'' in their place;
0
ii. In the first and second sentences, remove the words ``shall be''
and replace them with the word ``is'';
0
iii. In the third sentence, remove the cross reference ``or (a)(3)'';
and
0
iv. In the fourth sentence, remove the words ``shall be considered to''
and replace it with the word ``will be considered in'';
0
d. Revise paragraph (d)(1);
0
e. In paragraph (d)(5), remove the period at its end and add the word
and punctuation ``and;'' in its place;
0
f. Add paragraph (d)(6); and
0
g. Remove paragraph (f) and redesignate paragraphs (g) and (h) as
paragraphs (f) and (g), respectively.
The revisions and addition read as follows:
Sec. 12.4 Determination of ineligibility.
* * * * *
(d) * * *
(1) Contract payments, marketing assistance loans, and any type of
price support or payment made available under the Agricultural Act of
2014, the Commodity Credit Corporation Charter Act (15 U.S.C. 714b and
714c), or successor Acts.
* * * * *
(6) Federal crop insurance premium subsidies for a policy or plan
of insurance offered under the Federal Crop Insurance Act (7 U.S.C.
1501-1524).
* * * * *
Sec. 12.5 [Amended]
0
6. Amend Sec. 12.5 as follows:
0
a. In paragraph (b)(4)(i)(C), remove the word ``pilot''; and
0
b. In paragraph (b)(4)(i)(E), add the words and punctuation ``or in the
case of a mitigation bank operated under a USDA program, an entity
approved by USDA,'' immediately after the word ``USDA''.
0
7. Amend Sec. 12.6 as follows:
0
a. Revise paragraph (a);
0
b. In paragraph (b)(3)(x), add the words ``plan or'' immediately before
the word ``system'';
0
c. In paragraph (c)(1), remove the words ``Deputy Chief for Natural
Resources Conservation Programs'' and add the words ``Associate Chief
for Conservation'' in their place;
0
d. In paragraph (c)(2)(iii)(B), remove the word ``By''; and
0
e. Add paragraphs (c)(10), (f), and (g).
The revision and additions read as follows:
Sec. 12.6 Administration.
(a) General. In general determinations will be made as follows:
(1) Except as provided in paragraph (a)(2) of this section, a
determination of ineligibility for benefits in accordance with the
provisions of this part will be made by the agency of USDA to which the
person has applied for benefits. All determinations required to be made
under the provisions of this part will be made by the agency
responsible for making such determinations, as provided in this
section.
(2) Eligibility for Federal crop insurance premium subsidies will
be based on final determinations, including all administrative appeals,
made by NRCS and FSA. Neither RMA, FCIC, approved insurance providers,
or any employee, agent, or contractors thereof, will make any
determination regarding compliance with the highly erodible land or
wetland provisions of this part, unless specifically provided for in
Sec. 12.13.
* * * * *
(c) * * *
(10) NRCS will operate a program or work with third parties to
establish mitigation banks to assist persons in complying with
Sec. Sec. 12.4(c) and 12.5(b)(4). Persons will be able to access
mitigation banks established or approved through this program without
requiring the Secretary to hold an easement in a mitigation bank.
* * * * *
(f) Administration by RMA. The provisions of this part that are
applicable to RMA will be administered under the general supervision of
the Administrator, RMA.
(1) Eligibility for Federal crop insurance premium subsidies will
be based on the person's:
(i) Accurate and timely filing of a certification of compliance
(Form AD-1026 or successor form) with the conservation compliance
provisions; and
(ii) Compliance with the conservation compliance provisions.
(2) Ineligibility for Federal crop insurance premium subsidies due
to violations of the conservation compliance provisions will be based
on final determinations, including all administrative appeals, made by
NRCS and FSA as provided in this part.
(3) Neither RMA nor FCIC will make any determination of eligibility
regarding compliance with the highly erodible land or wetland
provisions in this part, unless specifically provided for in Sec.
12.13.
(4) RMA will provide the applicable information regarding
determinations made by NRCS and FSA to the appropriate approved
insurance providers to ensure those determinations affecting Federal
crop insurance premium subsidy eligibility are implemented according to
this part.
(g) Approved insurance providers. No approved insurance provider or
any employee, agent, or contractor of an approved insurance provider
will:
(1) Make any determination of eligibility regarding compliance with
the highly erodible land or wetland provisions of this part; or
(2) Be responsible or liable for a person's eligibility for Federal
crop insurance premium subsidy under this part, except in cases of
fraud, misrepresentation, or scheme and device by the approved
insurance provider or any employee, agent, or contractor thereof.
0
8. Amend Sec. 12.7 as follows:
0
a. In paragraph (a)(2), remove the cross reference ``under Sec. 12.5''
and add the cross reference ``under Sec. Sec. 12.5 or 12.13'' in its
place; and
[[Page 22881]]
0
b. Add paragraph (d).
The revision reads as follows:
Sec. 12.7 Certification of compliance.
* * * * *
(d) Timely filing. In order for a person to be determined eligible
for Federal crop insurance premium subsidies for a policy or plan of
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501-1524),
the person must have Form AD-1026 or successor form on file with FSA,
as specified in Sec. 12.13.
0
9. Amend Sec. 12.9 as follows:
0
a. Revise paragraphs (a) and (b)(1);
0
b. Redesignate paragraph (b)(2) as paragraph (b)(3);
0
c. Add paragraph (b)(2);
0
d. In newly redesignated paragraph (b)(3), remove the word ``renter''
both times it appears, and add the word ``sharecropper'' in its place.
The revisions and addition read as follows:
Sec. 12.9 Landlords and tenants.
(a) Landlord eligibility. Landlord eligibility will include the
following:
(1) Except as provided in paragraph (a)(2) of this section, the
ineligibility of a tenant or sharecropper for:
(i) Program benefits (as specified in Sec. 12.4) except as
provided in paragraph (a)(1)(ii) of this section will not cause a
landlord to be ineligible for USDA program benefits accruing with
respect to land other than those in which the tenant or sharecropper
has an interest; and
(ii) Federal crop insurance premium subsidies for a policy or plan
of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501-1524)
will, in lieu of ineligibility for premium subsidy, result in a
reduction in the amount of premium subsidy paid by FCIC on all policies
and plans of insurance for the landlord.
(A) The percentage reduction will be determined by comparing the
total number of cropland acres on the farm on which the violation
occurred to the total number of cropland acres on all farms in which
landlord has an interest, as determined by FSA.
(B) The farms and cropland acres used to determine the premium
subsidy reduction percentage will be the farms and cropland acres of
the landlord for the reinsurance year in which the tenant or
sharecropper is determined ineligible.
(C) The percentage reduction will be applied to all policies and
plans of insurance of the landlord in the reinsurance year subsequent
to the reinsurance year in which the tenant or sharecropper is
determined ineligible.
(D) If the landlord and tenant or sharecropper are insured under
the same policy, the landlord will be ineligible for premium subsidy on
that policy in lieu of a percentage reduction on that policy.
(2) If the production of an agricultural commodity on highly
erodible land or converted wetland by the landlord's tenant or
sharecropper is required under the terms and conditions of the
agreement between the landlord and such tenant or sharecropper and such
agreement was entered into after December 23, 1985, or if the landlord
has acquiesced in such activities by the tenant or sharecropper:
(i) The provisions of paragraph (a)(1)(i) of this section will not
be applicable to a landlord; and
(ii) A landlord will be ineligible for premium subsidy on all
policies and plans of insurance in the reinsurance year subsequent to
the reinsurance year in which the tenant or sharecropper is determined
ineligible.
(b) Tenant or sharecropper eligibility. Tenant or sharecropper
eligibility will include the following:
(1) If all of the requirements in paragraph (b)(2) of this section
are met:
(i) The ineligibility of a tenant or sharecropper, except as
provided in paragraph (b)(1)(ii) of this section, may be limited to the
program benefits listed in Sec. 12.4(b) accruing with respect to only
the farm on which the violation occurred; and
(ii) In lieu of ineligibility for Federal crop insurance premium
subsidies for all policies or plans of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524), the premium subsidy on all policies
and plans of insurance of the ineligible tenant or sharecropper will be
reduced.
(A) The percentage reduction will be determined by comparing the
total number of cropland acres on the farm on which the violation
occurred to the total number of cropland acres on all farms in which
tenant or sharecropper has an interest, as determined by FSA.
(B) The farms and cropland acres used to determine the premium
subsidy reduction percentage will be the farms and cropland acres of
the tenant or sharecropper for the reinsurance year in which the tenant
or sharecropper is determined ineligible.
(C) The percentage reduction will be applied to all policies and
plans of insurance of the tenant or sharecropper in the reinsurance
year subsequent to the reinsurance year in which the tenant or
sharecropper is determined ineligible.
(D) If the landlord and tenant or sharecropper are insured under
the same policy, the tenant or sharecropper will be ineligible for
premium subsidy on that policy in lieu of a percentage reduction on
that policy.
(2) The provisions of paragraph (b)(1) of this section will not
apply unless all the following are met:
(i) The tenant or sharecropper shows that a good-faith effort was
made to comply by developing an approved conservation plan for the
highly erodible land in a timely manner and prior to any violation of
the provisions of this part;
(ii) The owner of such farm refuses to apply such a plan and
prevents the tenant or sharecropper from implementing certain practices
that are a part of the approved conservation plan; and
(iii) FSA determines that the lack of compliance is not a part of a
scheme or device as described in Sec. 12.10.
* * * * *
0
10. Add Sec. 12.13 to read as follows:
Sec. 12.13 Special Federal crop insurance premium subsidy provisions.
(a) General. The provisions and exemptions in this section are only
applicable to Federal crop insurance premium subsidies for a policy or
plan of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501-
1524). The exemptions in this section are in addition to any that apply
under Sec. 12.5. Any conflict between this section and another will be
resolved by applying this section, but only for Federal crop insurance
premium subsidies. Any exemptions or relief under this section apply to
Federal crop insurance premium subsidies and do not apply to other
benefits even for the same person for the same crop year or reinsurance
year. Unless otherwise specified in this section, the provisions in
this section apply to both highly erodible land and wetlands.
(b) Ineligibility for failing to certify compliance. Subject to
paragraphs (b)(2) and (3) of this section, failing to certify
compliance as specified in Sec. 12.7 will result in ineligibility as
follows:
(1) A Form AD-1026, or successor form, for the person must be on
file with FSA on or before June 1 prior to the beginning of the
reinsurance year (July 1) in order for the person to be eligible for
any Federal crop insurance premium subsidies for the reinsurance year.
Failure to file Form AD-1026, or successor form, with FSA on or before
June 1 prior to the beginning of the reinsurance year (July 1) will
result in ineligibility for premium subsidies for the entirety of that
reinsurance year.
(2) A person will have until the first applicable crop insurance
sales closing date to provide information necessary
[[Page 22882]]
for the person's filing of a Form AD-1026 if the person:
(i) Is unable to file a Form AD-1026 by June 1 due to circumstances
beyond the person's control, as determined by FSA; or
(ii) Files a Form AD-1026 by June 1 in good faith and FSA
subsequently determines that additional information is needed, but the
person is unable to comply by July 1 due to circumstances beyond the
control of the person.
(3) A person who does not have Form AD-1026, or successor form, on
file with FSA on or before June 1 prior to the beginning of the
reinsurance year may be eligible for Federal crop insurance premium
subsidy for the subsequent reinsurance year if the person can
demonstrate they began farming for the first time after June 1 but
prior to the beginning of the reinsurance year (July 1). For example, a
person who started farming for the first time on June 15, 2015, will be
eligible for Federal crop insurance premium subsidies for the 2016
reinsurance year without a Form AD-1026 on file with FSA. However, in
that case, the person must file Form AD-1026 with FSA on or before June
1, 2016 to be eligible for premium subsidy for the 2017 reinsurance
year.
(c) Ineligibility for violations. If a person is ineligible due to
a violation of the provisions of this part, the timing and results will
be as follows:
(1) Unless an exemption in this section or Sec. 12.5 applies,
ineligibility for Federal crop insurance premium subsidy for a policy
or plan of insurance under the Federal Crop Insurance Act (7 U.S.C.
1501-1524) due to a violation of the provisions of this part will:
(i) Not apply to the reinsurance year in which the violation
occurred or any reinsurance year prior to the date of the final
determination of a violation, including all administrative appeals of
the determination, as determined by NRCS or FSA as applicable; and
(ii) Only apply to reinsurance years subsequent to the date of a
final determination of a violation, including all administrative
appeals of the determination, as determined by NRCS or FSA as
applicable. A person who is in violation of the provisions of this
part, as determined by FSA or NRCS, in a reinsurance year, will, unless
otherwise exempted, be ineligible for any Federal crop insurance
premium subsidy beginning with the subsequent reinsurance year. For
example, a person who is determined to be in violation of the
provisions of this part and has exhausted all administrative appeals on
June 1, 2015, (2015 reinsurance year) will, unless otherwise exempted,
be ineligible for Federal crop insurance premium subsidy effective July
1, 2015, the start of the 2016 reinsurance year, and will not be
eligible for any Federal crop insurance premium subsidy for any policy
or plan of insurance during the 2016 reinsurance year. Even if the
person becomes compliant during the 2016 reinsurance year, the person
will not be eligible for Federal crop insurance premium subsidy until
the 2017 reinsurance year starting on July 1, 2016.
(2) Eligibility for Federal crop insurance premium subsidy for a
policy or plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501-1524) due to a violation of the provisions of this part
will be based on FSA and NRCS final determinations, including all
administrative appeals, regarding compliance with the provisions of
this part.
(3) The amount of premium subsidy for an insured person will be
reduced when any person with a substantial beneficial interest in the
insured person is ineligible for premium subsidy under this part. The
amount of reduction will be commensurate with the ineligible person's
substantial beneficial interest in the insured person. The ineligible
person's substantial beneficial interest in the insured person will be
determined according to the policy provisions of the insured person.
(4) Administrative appeals include appeals made in accordance with
Sec. 12.12 and part 11 of this title, but do not include any judicial
review or appeal, or any other legal action.
(d) Exemption to develop and comply with an approved HEL
conservation plan. The following exemptions provide a delay in the
requirement to develop and comply with an NRCS approved HEL
conservation plan for certain persons.
(1) Persons subject to the provisions of this part regarding highly
erodible land, specifically those related to section 1211(a) of the
Food Security Act of 1985, as amended, for the first time solely due to
amendments to that section by section 2611(a) of the Agricultural Act
of 2014 (16 U.S.C. 3811(a)(1)), will have 5 reinsurance years after the
date the person is determined to have HEL and has exhausted all
administrative appeals, if applicable, to develop and comply with a
conservation plan approved by NRCS before being ineligible for Federal
crop insurance premium subsidies. The additional time to develop and
comply with a conservation plan approved by NRCS applies only to
persons who have not previously been subject to the highly erodible
land conservation provisions of this part. The additional time provided
in this paragraph does not apply to any person who had any interest in
any land or crop, including an affiliated person, that was subject to
the provisions of this part before February 7, 2014. The 5 reinsurance
years to develop and comply with a conservation plan approved by NRCS
starts:
(i) For persons who have no land with an NRCS HEL determination,
the 5 reinsurance years begins the start of the reinsurance year (July
1) following the date NRCS makes a HEL determination and the person
exhausts all their administrative appeals; or
(ii) For persons who have any land for which an NRCS HEL
determination has been made and all administrative appeals have been
exhausted, the 5 reinsurance years begins the start of the reinsurance
year (July 1) following the date the person certifies compliance with
FSA to be eligible for USDA benefits subject to the conservation
compliance provisions.
(2) Persons who meet all the following criteria will have 2
reinsurance years from the start of the reinsurance year (July 1)
following the date the person certifies compliance with FSA to be
eligible for USDA benefits subject to the conservation compliance
provisions to develop and comply with a conservation plan approved by
NRCS before being ineligible for Federal crop insurance premium
subsidies:
(i) Were subject to the provisions of this part regarding highly
erodible land, specifically those related to section 1211(a) of the
Food Security Act of 1985 (16 U.S.C. 3811(a)(1)), as amended, any time
before February 7, 2014;
(ii) Before February 7, 2014, stopped participating in all USDA
programs subject to the provisions of this part regarding highly
erodible land;
(iii) Would have been in violation of the provisions of this part
regarding highly erodible land had they continued to participate in
those programs after February 7, 2014; and
(iv) Are currently in violation of the provisions of this part
regarding highly erodible land.
(e) Exemption for prior wetland conversions completed prior to
February 7, 2014. No person will be ineligible for Federal crop
insurance premium subsidies for a policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501-1524) for:
(1) Converting a wetland if the wetland conversion was completed,
as determined by NRCS, before February 7, 2014; or
(2) Planting or producing an agricultural commodity on a converted
[[Page 22883]]
wetland if the wetland conversion was completed, as determined by NRCS,
before February 7, 2014.
(f) Exemption for wetland conversion that impacts less than 5
acres. The following exemption is for wetland conversion that impacts
less than 5 acres of an entire farm:
(1) In lieu of ineligibility for Federal crop insurance premium
subsidies for a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524) due to a wetland conversion
violation or concurrent with a planned wetland conversion occurring
after February 7, 2014, a person may, if approved by NRCS, pay a
contribution to NRCS in an amount equal to 150 percent of the cost of
mitigating the converted wetland, as determined by NRCS.
(2) A person is limited to only one exemption, as determined by
NRCS, described in paragraph (f)(1) of this section per farm.
(3) NRCS will not refund this payment even if the person later
conducts actions which will mitigate the earlier conversion.
(g) Exemption for wetland conversion when a policy or plan of
insurance is available to a person for the first time. The following
exemption is for wetland conversion when a policy or plan of insurance
is available to the person for the first time.
(1) When a policy or plan of insurance that provides coverage for
an agricultural commodity is available to the person, including as a
person who is a substantial beneficial interest holder, for the first
time after February 7, 2014, as determined by RMA, ineligibility for
Federal crop insurance premium subsidies for such policy or plan of
insurance due to a wetland conversion violation will only apply to
wetland conversions that are completed, as determined by NRCS, after
the date the policy or plan of insurance first becomes available to the
person.
(2) The exemption described in paragraph (g)(1) of this section:
(i) Applies only to the policy or plan of insurance that becomes
available to the person for the first time after February 7, 2014, as
determined by RMA;
(ii) Does not exempt or otherwise negate the person's ineligibility
for Federal crop insurance premium subsidies on any other policy or
plan of insurance; and
(iii) Applies only if the person takes steps necessary, as
determined by NRCS, to mitigate all wetlands converted after February
7, 2014, in a timely manner, as determined by NRCS, but not to exceed 2
reinsurance years.
(3) For the purposes of the paragraph (g)(1) of this section:
(i) A policy or plan of insurance is considered to have been
available to the person after February 7, 2014, if, after February 7,
2014, in any county in which the person had any interest in any
acreage, including as a person who is a substantial beneficial interest
holder:
(A) There was a policy or plan of insurance available on the county
actuarial documents that provided coverage for the agricultural
commodity; or
(B) The person obtained a written agreement to insure the
agricultural commodity in any county; and
(ii) Changing, adding, or removing options, endorsements, or
coverage to an existing policy or plan of insurance will not be
considered as a policy or plan of insurance being available for the
first time to a person.
(h) Wetland conversion mitigation exemption. Unless another
exemption applies, the following exemption provides additional time to
mitigate wetland conversions.
(1) A person determined to be in violation of the provisions of
this part due to a wetland conversion occurring after February 7, 2014,
will have 1 reinsurance year after the final determination of
violation, including all administrative appeals, as determined by NRCS,
to initiate a mitigation plan to remedy the violation, as determined by
NRCS, before becoming ineligible for Federal crop insurance premium
subsidies for a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524.). For example, if in May 2017, after
NRCS has determined that a person is in violation for converting a
wetland and the person has exhausted all administrative appeals, the
person will have until June 30, 2018, to initiate a mitigation plan to
remedy the violation before becoming ineligible for Federal crop
insurance premium subsidies starting with the 2019 reinsurance year.
(2) Notwithstanding paragraph (h)(1) of this section, if a person
determined to be in violation of the provisions of this part due to a
wetland conversion occurring after February 7, 2014, as determined by
NRCS, and is subject to the provisions of this part for the first time
solely due to section 2611(b) of the Agricultural Act of 2014, such
person will have 2 reinsurance years after the final determination of
violation, including all administrative appeals, as determined by NRCS,
to be implementing all practices in a mitigation plan to remedy the
violation, as determined by NRCS, before becoming ineligible for
Federal crop insurance premium subsidies for a policy or plan of
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501-1524).
(3) Administrative appeals include appeals made in accordance with
Sec. 12.12 and part 11 of this title, but do not include any judicial
review or appeal, or any other legal action.
(i) Good faith exemption. The following is a good faith exemption
for wetland conservation:
(1) A person determined by FSA or NRCS to be in violation,
including all administrative appeals, of the provisions of this part
due to converting a wetland after February 7, 2014, or producing an
agricultural commodity on a wetland that was converted after February
7, 2014, may regain eligibility for Federal crop insurance premium
subsidies for a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524) if all of the following criteria are
met:
(i) FSA determines that such person acted in good faith and without
the intent to violate the wetland conservation provisions of this part;
(ii) NRCS determines that the person is implementing all practices
in a mitigation plan to remedy or mitigate the violation within an
agreed-to period, not to exceed 2 reinsurance years; and
(iii) The good faith determination of the FSA county or State
committee has been reviewed and approved by the applicable State
Executive Director, with the technical concurrence of the State
Conservationist; or District Director, with the technical concurrence
of the area conservationist.
(2) In determining whether a person acted in good faith under
paragraph (i)(1)(i) of this section, FSA will consider such factors as
whether:
(i) The characteristics of the site were such that the person
should have been aware that a wetland existed on the subject land;
(ii) NRCS had informed the person about the existence of a wetland
on the subject land;
(iii) The person has a record of violating the wetland provisions
of this part or other Federal, State, or local wetland provisions; or
(iv) There exists other information that demonstrates the person
acted with the intent to violate the wetland conservation provisions of
this part.
(3) After the requirements of paragraph (i)(1) of this section are
met, FSA may waive applying the ineligibility provisions of this
section to allow the person to implement the mitigation plan approved
by NRCS. The
[[Page 22884]]
waiver will apply for up to two reinsurance years.
(j) Landlord and Tenant wetland violations relief. The following
provides landlord and tenant relief for wetland violations:
(1) Except as provided in (j)(2) of this section, the ineligibility
of a tenant or sharecropper for Federal crop insurance premium
subsidies for a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524) will, in lieu of ineligibility for
premium subsidy, result in a reduction in the amount of premium subsidy
paid by FCIC on all policies and plans of insurance for the landlord.
(i) The percentage reduction will be determined by comparing the
total number of cropland acres on the farm on which the violation
occurred to the total number of cropland acres on all farms in which
landlord has an interest, as determined by FSA.
(ii) The farms and cropland acres used to determine the premium
subsidy reduction percentage will be the farms and cropland acres of
the landlord for the reinsurance year in which the tenant or
sharecropper is determined ineligible.
(iii) The percentage reduction will be applied to all policies and
plans of insurance of the landlord in the reinsurance year subsequent
to the reinsurance year in which the tenant or sharecropper is
determined ineligible.
(iv) If the landlord and tenant or sharecropper are insured under
the same policy, the landlord will be ineligible for premium subsidy on
that policy in lieu of a percentage reduction on that policy.
(2) A landlord will be ineligible for the premium subsidy on all
policies and plans of insurance in the reinsurance year subsequent to
the reinsurance year in which the tenant or sharecropper is determined
ineligible if the production of an agricultural commodity on a
converted wetland by the landlord's tenant or sharecropper is required
under the terms and conditions of the agreement between the landlord
and such tenant or sharecropper and such agreement was entered into
after February 7, 2014, or if the landlord has acquiesced in such
activities by the tenant or sharecropper.
(3) If all the requirements in paragraph (j)(4) of this section are
met, in lieu of ineligibility for Federal crop insurance premium
subsidies for all policies or plans of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524) for producing or planting an
agricultural commodity on a wetland converted after February 7, 2014,
the premium subsidy on all policies and plans of insurance of the
ineligible tenant or sharecropper will be reduced.
(i) The percentage reduction will be determined by comparing the
total number of cropland acres on the farm on which the violation
occurred to the total number of cropland acres on all farms in which
tenant or sharecropper has an interest, as determined by FSA.
(ii) The farms and cropland acres used to determine the premium
subsidy reduction percentage will be the farms and cropland acres of
the tenant or sharecropper for the reinsurance year in which the tenant
or sharecropper is determined ineligible.
(iii) The percentage reduction will be applied to all policies and
plans of insurance of the tenant or sharecropper in the reinsurance
year subsequent to the reinsurance year in which the tenant or
sharecropper is determined ineligible.
(iv) If the landlord and tenant or sharecropper are insured under
the same policy, the tenant or sharecropper will be ineligible for
premium subsidy on that policy in lieu of a percentage reduction on
that policy.
(4) The provisions of paragraph (j)(3) of this section will not
apply unless all the following are met:
(i) The tenant or sharecropper shows that a good-faith effort was
made to comply by developing a plan, approved by NRCS, for the
restoration or mitigation of the converted wetland in a timely manner
and prior to any violation;
(ii) The owner of such farm refuses to apply such a plan and
prevents the tenant or sharecropper from implementing the approved
plan;
(iii) FSA determines the lack of compliance is not a part of a
scheme or device as described in Sec. 12.10; and
(iv) The tenant or sharecropper actively applies the practices and
measures of the approved plan that are within their control.
(k) Evaluation of certification. NRCS will evaluate the
certification in a timely manner.
(1) A person who properly completes, signs, and files Form AD-1026,
or successor form, with FSA certifying compliance with the provisions
of this part will be eligible for Federal crop insurance premium
subsidies for a policy or plan of insurance under the Federal Crop
Insurance Act (7 U.S.C. 1501-1524) during the period of time such
certification is being evaluated by NRCS, if an evaluation is required.
(2) A person will not be ineligible for Federal crop insurance
premium subsidies for a policy or plan of insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501-1524) if:
(i) NRCS fails to complete a required evaluation of the person's
Form AD-1026, or successor form in a timely manner after all
documentation has been provided to NRCS; and
(ii) The person is subsequently determined to have been in
violation of the provisions of this part during the time NRCS was
completing the evaluation.
(3) The relief from ineligibility provided in paragraph (k)(2) of
this section:
(i) Applies only to violations that occurred prior to or during the
time NRCS is completing the required evaluation;
(ii) Does not apply to any violations that occur subsequent to NRCS
completing the evaluation;
(iii) Does not apply if FSA or NRCS determines the person employed,
adopted, or participated in employing or adopting a scheme or device,
as provided in Sec. 12.10, to evade the provisions of this part or to
become eligible for the relief provided in paragraph (k)(2) of this
section; and
(iv) Does not apply if the required evaluation is delayed due to
unfavorable site conditions for the evaluation of soils, hydrology, or
vegetation.
(l) Failing to notify FSA of a change. Requirements to pay
equitable contribution for failing to notify FSA of a change are as
follows.
(1) A person who fails to notify FSA of any change that could alter
their status as compliant with the provisions of this part and is
subsequently determined, by FSA or NRCS, to have committed a violation
of the wetland conservation provisions of this part after February 7,
2014, will be required to pay to NRCS an equitable contribution.
(2) The amount of equitable contribution will be determined by
NRCS, but will not exceed the total amount of Federal crop insurance
premium subsidy paid by FCIC on behalf of the person for all policies
and plans of insurance for all years in which the person is determined
to have been in violation.
(3) A person who fails to pay the full equitable contribution
amount by the due date determined by NRCS will be ineligible for
Federal crop insurance premium subsidy on any policy or plan of
insurance beginning with the subsequent reinsurance year. The person
will be ineligible for Federal crop insurance premium subsidy for the
entire reinsurance year even if full payment of the equitable
contribution amount is received by NRCS during the reinsurance year.
[[Page 22885]]
Sec. 12.31 [Amended]
0
11. Amend Sec. 12.31(b)(1), as follows:
0
a. Remove the words ``in the National List of Plant Species that Occur
in Wetlands'' and add the words ``in the National Wetland Plant List,
or (as determined by NRCS) successor publication'' in their place; and
0
b. Remove the words ``may be obtained upon request from the U.S. Fish
and Wildlife Service at National Wetland Inventory, Monroe Bldg. Suite
101, 9720 Executive Center Drive, St. Petersburg, Florida 33702'' and
add the words ``may be accessed at: https://
rsgisias.crrel.usace.army.mil/NWPL/'' in their place.
Sec. 12.34 [Removed]
0
12. Remove Sec. 12.34.
Signed on April 20, 2015.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2015-09599 Filed 4-23-15; 08:45 am]
BILLING CODE 3410-05-P