Noninsured Crop Disaster Assistance Program, 12213-12221 [2020-04103]
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Federal Register / Vol. 85, No. 41 / Monday, March 2, 2020 / Rules and Regulations
subject of the importation varies, and
the species used to produce the plant
product is unknown, the name of each
species of plant that may have been
used to produce the plant product;
(2) If the species of plant used to
produce the plant product that is the
subject of the importation is commonly
taken from more than one country, and
the country from which the plant was
taken and used to produce the plant
product is unknown, the name of each
country from which the plant may have
been taken; and
(3) If a paper or paperboard plant
product includes recycled plant
product, the average percent recycled
content without regard for the species or
country of origin of the recycled plant
product, in addition to the information
for the non-recycled plant content
otherwise required by this section.
(c) Guidance on completion and
submission of the declaration form can
be found on the APHIS website at
https://www.aphis.usda.gov/plant_
health/lacey_act.
(Approved by the Office of Management
and Budget under control number 0579–
0349)
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§ 357.4 Exceptions from the declaration
requirement.
Plants and products containing plant
materials are excepted from the
declaration requirement if:
(a) The plant is used exclusively as
packaging material to support, protect,
or carry another item, unless the
packaging material itself is the item
being imported; or
(b) The plant material in a product
represents no more than 5 percent of the
total weight of the individual product
unit, provided that the total weight of
the plant material in an entry of
products in the same 10-digit provision
of the Harmonized Tariff Schedule of
the United States does not exceed 2.9
kilograms.
(c) A product will not be eligible for
an exception under paragraph (b) of this
section if it contains plant material
listed:
(1) In an appendix to the Convention
on International Trade in Endangered
Species of Wild Fauna and Flora (27
UST 1087; TIAS 8249);
(2) As an endangered or threatened
species under the Endangered Species
Act of 1973 (16 U.S.C. 1531 et seq.); or
(3) Pursuant to any State law that
provides for the conservation of species
that are indigenous to the State and are
threatened with extinction.
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Done in Washington, DC, this 24th day of
February 2020.
Greg Ibach,
Under Secretary for Marketing and Regulatory
Programs.
[FR Doc. 2020–04165 Filed 2–28–20; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1437
[Docket No. CCC–2019–0005]
RIN 0560–AI48
Noninsured Crop Disaster Assistance
Program
Commodity Credit Corporation
and Farm Service Agency, USDA.
ACTION: Final rule.
AGENCY:
This rule implements changes
to the Noninsured Crop Disaster
Assistance Program (NAP) as required
by the Agriculture Improvement Act of
2018 (the 2018 Farm Bill). The rule
makes buy-up coverage levels available
for 2019 and future years, increases
service fees, and extends the service fee
waiver and premium reduction to
eligible veterans. The rule includes the
changes to the payment limitation and
native sod provisions and clarifies when
NAP coverage is available for crops
when certain crop insurance is available
under the Federal Crop Insurance Act.
This rule is adding provisions for
eligibility and program requirements for
new producers or producers with less
than 1-year growing experience with a
new crop (for example, most hemp
producers). This rule also makes some
additional minor changes to clarify
existing NAP requirements and improve
program integrity.
DATES: Effective: March 2, 2020.
FOR FURTHER INFORMATION CONTACT:
Tona Huggins, (202) 720–7641;
Tona.Huggins@usda.gov. Persons with
disabilities who require alternative
means for communication should
contact the USDA Target Center at (202)
720–2600 (voice).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
NAP provides financial assistance to
producers of noninsurable crops to
protect against natural disasters that
result in crop losses or prevent crop
planting. FSA administers NAP for the
Commodity Credit Corporation (CCC) as
authorized by section 196 of the Federal
Agriculture Improvement and Reform
Act of 1996, as amended (7 U.S.C.
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12213
7333). NAP is administered under the
general supervision of the FSA
Administrator and is carried out by FSA
State and county committees.
NAP is available for crops for which
catastrophic risk protection and
additional coverage under the Federal
Crop Insurance Act (7 U.S.C. 1508(b)
and (c), and (h)) are not available or, if
such coverage is available, it is only
available under a policy that is in a
‘‘pilot’’ program category, provides
coverage for specific intervals based on
weather indexes or under a whole farm
plan of insurance. The eligibility for
NAP coverage is limited to:
• Crops other than livestock that are
commercially produced for food and
fiber, and
• Other specific crops including
floricultural, ornamental nursery, and
Christmas tree crops, turfgrass sod, seed
crops, aquaculture (including
ornamental fish), sea grass and sea oats,
camelina, sweet sorghum, biomass
sorghum, and industrial crops
(including those grown expressly for the
purpose of producing a feedstock for
renewable biofuel, renewable electricity,
or biobased products).
Qualifying losses to eligible NAP
crops must be due to an eligible cause
of loss as specified in 7 CFR part 1437,
which includes damaging weather
(drought, hurricane, freeze, etc.) or
adverse natural occurrence (volcanic
eruption, flood, etc.). In order to be
eligible for a NAP payment, producers
must first apply for NAP coverage and
submit the required NAP service fee or
service fee waiver to their FSA county
office by the application closing date for
their crop. The NAP application for
coverage must be completed, including
submission of the service fee or a
service fee waiver, before NAP coverage
can begin. Losses occurring outside a
coverage period are not eligible for NAP
assistance. Producers who choose not to
obtain NAP coverage for a crop are not
eligible for NAP assistance for the crop.
This rule does not change the core
provisions of NAP.
The 2018 Farm Bill (Pub. L. 115–334)
made several changes to NAP. This rule
amends the NAP regulations to be
consistent with those changes. The
mandatory changes make ‘‘buy-up’’
coverage available for 2019 and later
crop years, allowing producers to buy
additional NAP coverage for a premium,
resulting in a risk management product
that has equivalent coverage levels to
some types of crop insurance offered by
the Risk Management Agency (RMA).
This rule also implements the 2018
Farm Bill’s provisions regarding
payment limitation, increased service
fees, a service fee waiver and a premium
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reduction for eligible veterans, the
beginning of the coverage period,
benefit restrictions for crops grown on
native sod acreage, and the availability
of NAP coverage for crops for which
crop insurance is available under the
Federal Crop Insurance Act. This rule
also makes some additional minor
changes to clarify existing NAP
requirements and improve program
integrity.
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Eligibility of Crops Not Covered by
Federal Crop Insurance
This rule implements changes
required by the 2018 Farm Bill with
regard to NAP crop eligibility. The 2018
Farm Bill specifies that NAP is available
for crops for which catastrophic risk
protection is not available under section
508(b) of the Federal Crop Insurance Act
and additional coverage under
subsections 508(c) and 508(h) is not
available or, if such coverage is
available, it is only available under a
policy that is in a ‘‘pilot’’ program
category, provides coverage for specific
intervals based on weather indexes or
under a whole farm plan of insurance.
This rule amends provisions at
§§ 1437.1 and 1437.4 to be consistent
with the 2018 Farm Bill.
Buy-Up Coverage Levels and Premiums
Prior to the 2014 Farm Bill, NAP
provided only catastrophic coverage
(basic 50/55 coverage), which is based
on the amount of loss that exceeds 50
percent of expected production at 55
percent of the average market price for
the crop. The 2014 Farm Bill changes
authorized additional higher levels of
coverage (‘‘buy-up’’ coverage) ranging
from 50 to 65 percent of production, in
5 percent increments, at 100 percent of
the average market price. However, that
buy-up coverage was only available for
2015 through 2018. The 2018 Farm Bill
makes buy-up coverage available for
2019 and future crop years. This rule
amends § 1437.5 to remove the reference
to 2015 through 2018 program years to
be consistent with the 2018 Farm Bill.
As under the 2014 Farm Bill, crops and
grasses intended for grazing are
specifically excluded from buy-up
coverage.
To obtain buy-up coverage, producers
are required to pay a premium, equal to
5.25 percent times the level of coverage,
in addition to the NAP service fee. The
50 percent premium reduction for
beginning, limited resource, and
socially disadvantaged farmers or
ranchers specified in the regulation
continues to apply for 2019 and future
years. The 2018 Farm Bill and this rule
also extend the premium reduction to
eligible veteran farmer or ranchers as
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defined in 7 CFR 718.2. To qualify for
the waiver, a veteran must have either
been farming for 10 years or less or
achieved veteran status in the past 10
years.
Because the application closing dates
for all 2019 crops and some 2020 crops
passed prior to the announcement of
2018 Farm Bill provisions that
authorized the availability of buy-up
NAP coverage, FSA allowed producers
of those crops to retroactively obtain
buy-up coverage for 2019 and 2020. On
April 8, 2019, FSA announced an
extended application period for buy-up
coverage for those crops through a press
release and extensive outreach efforts.
Producers were required to submit an
application for coverage requesting buyup coverage and pay the applicable
service fee by May 24, 2019. Basic 50/
55 coverage was not affected by the
2018 Farm Bill and was available prior
to the application closing dates;
therefore, the application closing dates
for basic 50/55 coverage were not
extended.
Service Fees
This rule amends the NAP service
fees in § 1437.7 as required by the 2018
Farm Bill. The service fee has increased
from $250 to $325 per crop, from $750
to $825 maximum per producer per
county, and from $1,875 to $1,950
maximum per producer for all counties.
FSA implemented the service fee
increase administratively on April 8,
2019.
Prior to this rule, the NAP service fee
was waived for beginning, limited
resource, and socially disadvantaged
farmers. That waiver continues to apply
for those groups for 2019 and future
years, and is also made available to
eligible veteran farmers as defined in 7
CFR 718.2.
Payment and Income Limitation
The 2018 Farm Bill establishes
payment and income limitations that
apply to 2018 and subsequent crop,
program, or fiscal year benefits. FSA is
implementing the payment and income
limitations through a separate final rule
to be published in the Federal Register.
The payment and income limitations are
specified in 7 CFR part 1400.
The 2018 Farm Bill established
separate payment limitations for NAP
assistance. The total NAP payment
amount for all crops with basic 50/55
coverage is limited to $125,000 per
person or legal entity, directly or
indirectly. The total NAP payment
amount for all crops with buy-up
coverage is limited to $300,000 per
person or legal entity, directly or
indirectly. A producer may elect
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different coverage levels for different
crops; therefore, both payment
limitations may apply to the same
person or legal entity. For example, a
person or legal entity that is a producer
may elect basic 50/55 coverage for green
peppers, a buy-up coverage level of 55/
100 for cantaloupe, and a buy-up
coverage level of 65/100 for tomatoes. In
that case, the producer could receive an
annual per person or legal entity
payment of up to $125,000 for eligible
losses to green peppers, and a total
payment of up to $300,000 for eligible
losses to cantaloupe and tomatoes.
Attribution of payments specified in 7
CFR part 1400 applies in administering
the payment limitation. The average
adjusted gross income (AGI) limit for
most FSA and CCC programs, including
NAP, is $900,000.
Native Sod
The 2014 Farm Bill introduced native
sod provisions that required increased
NAP service fees and premiums and
also reduced the actual production
history and only applied, per the 2014
Farm Bill, to certain producers in Iowa,
Minnesota, Montana, Nebraska, North
Dakota, and South Dakota. The 2014
Farm Bill applied those provisions to
native sod tilled for production of
annual crops after February 7, 2014, in
any year in the first 4 years of cropping.
The 2018 Farm Bill continues the
previous policy under the 2014 Farm
Bill for native sod tilled for annual crop
production from February 7, 2014,
through December 20, 2018. It also
applies the provisions to native sod
tilled for production of any crop
enrolled in NAP after December 20,
2018, for no more than 4 years during
the first 10 years of cropping. As under
the 2014 Farm Bill, the NAP service fee
and premiums for crops planted on
acreage subject to these provisions will
be 200 percent of the amount calculated
according to § 1437.7, with the premium
not to exceed the maximum amount of
5.25 percent times the payment
limitation. This rule also amends the
definition of native sod to be consistent
with the new provisions. The 2018 Farm
Bill does not change the de minimis
acreage exemption, which applies to
areas of 5 acres or less, meaning that for
these areas are exempt from the native
sod provision.
Coverage Period
Prior to the 2018 Farm Bill, the NAP
coverage period could not begin earlier
than 30 days after a producer filed a
NAP application for coverage. The 2018
Farm Bill changed this requirement to
specify that the application for coverage
must be filed ‘‘by an appropriate
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deadline before the beginning of the
coverage period, as determined by the
Secretary.’’ This rule amends § 1437.6 to
specify that a coverage period could
now begin as soon as one calendar day
after an application for coverage is filed,
provided that the NAP-covered crop has
an otherwise defined coverage period
that would ordinarily accommodate that
start date. This rule also specifies that
the coverage period for honey will begin
the later of one calendar day after the
date the application for coverage is
filed, one calendar day after the
application closing date, or the date the
colonies are set in place for honey
production.
Hemp Eligibility
The 2018 Farm Bill defines ‘‘hemp’’
as the plant species Cannabis sativa L.
and any part of that plant, including the
seeds thereof and all derivatives,
extracts, cannabinoids, isomers, acids,
salts, and salts of isomers, whether
growing or not, with a delta-9
tetrahydrocannabinol (THC)
concentration of not more than 0.3
percent on a dry weight basis. The 2018
Farm Bill allows commercial hemp
production if the crop is grown in
compliance with a State, Tribal, or
federal plan. Beginning with the 2020
crop year, hemp will be considered an
eligible crop under NAP similar other
NAP crops for which catastrophic risk
protection and additional coverage
under the Federal Crop Insurance Act (7
U.S.C. 1508(b) and (c), and (h)) are not
available or, if such coverage is
available, it is only available under a
policy that provides coverage for
specific intervals based on weather
indexes or under a whole farm plan of
insurance. This rule adds a new section
containing hemp eligibility and program
requirements at § 1437.108 and defines
‘‘hemp,’’ ‘‘hemp processor,’’ ‘‘hemp
processor contract,’’ and ‘‘THC’’ in
§ 1437.3.
NAP only offers coverage to eligible
hemp, which must be grown under a
Federal, State, or Tribal plan. Those
plans require a license. Therefore, to be
eligible for NAP coverage, the hemp
must be grown under an official
certification or license issued by the
applicable governing authority, the
producer must have a hemp processor
contract for the crop by the acreage
reporting date, and the crop must be
planted for harvest as hemp in
accordance with that contract. If a
producer is also a hemp processor, a
corporate resolution including an
adoption of the terms specified in this
rule for a hemp processor contract by
the Board of Directors or officers will be
considered a hemp processor contract.
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Hemp producers must provide the
certification or license number and a
copy of the certificate or license, and
copies of all hemp processor contracts
by the acreage reporting date. As for all
crops, one of the NAP eligibility
requirements is proof of marketability.
To be marketed, hemp must be
processed. Therefore, proof of
marketability of the hemp crop is shown
by the contract the producer has with a
hemp processor. Hemp is not eligible for
NAP benefits if the crop has a THC level
above 0.3 percent; therefore, producers
must also submit copies of THC test
results taken at harvest, which are
required under applicable State, Tribal,
and federal plans. Due to the risk of
transmission of crop diseases that do
not have adequate treatment options for
hemp, hemp is not eligible for NAP if
it is grown on acres on which Cannabis,
canola, dry beans, dry peas, mustard,
rapeseed, soybeans in certain states
specified by FSA, or sunflowers were
grown the preceding crop year. Hemp is
not eligible for NAP benefits if the
producer’s certification or license is
terminated or suspended during the
crop year.
Growing History Requirement for BuyUp Coverage
FSA is making an additional change
to § 1437.5 to limit buy-up coverage to
crops with at least one year of
successful growing history. The 2018
Farm Bill re-authorized buy-up NAP
coverage and at the same time increased
the payment limitation for crops with
buy-up coverage levels from $125,000 to
$300,000 per crop year. Therefore, and
consistent with how some crop
insurance products are first made
available to producers of new crops, to
safeguard against potential program
abuse and ensure that the higher level
of coverage and increased payment
limitation is only made available to
those who have at least demonstrated an
ability to produce the crop successfully
absent disaster, FSA is making this
change. Such ability is reflected in their
previous successful production of the
crop. Accordingly, the producer must
have successfully produced the crop in
a prior crop year in order to be eligible
to purchase buy-up NAP coverage for
that crop. Production of a crop is
‘‘successful’’ if there is some
documented record that proves that the
producer was able to produce at least 50
percent of the county expected yield of
the crop in the county in a prior crop
year, unless the producer’s crop suffered
a loss due to an eligible cause of loss in
§ 1437.10.
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Additional Changes
In addition to the changes required by
the 2018 Farm Bill, this rule makes
several additional changes to improve
program integrity and clarify NAP
requirements. FSA is making changes to
specify that lightning is an eligible
cause of loss and wildfire is an eligible
related condition when it occurs with
an eligible cause of loss listed in
§ 1437.10(b)(1) or (2). It also specifies
that failure to harvest and market a crop
due to lack of a sufficient plan for
harvesting and marketing given the kind
of crop, amount of crop, and time that
all production may be mature and ready
for harvest, the perishability of the crop,
and the means or the resources to carry
out that plan is an ineligible cause of
loss. These changes to eligible and
ineligible causes of loss are intended to
clarify existing policy and do not
change how FSA administers NAP.
This rule clarifies in § 1437.7 that the
premium for buy-up coverage for value
loss crops will be based on the lesser of
the maximum dollar value for which a
producer requests coverage, subject to
the applicable payment limitation, times
the coverage level, times the 5.25
percent premium. This change corrects
the regulation to conform to the statute
and current NAP policy. It removes
duplicate provisions for the premium
calculation for value loss crops in
§ 1437.301.
Throughout this rule, FSA is
clarifying that the certain requirements
specific to hand-harvested crops that
require notification of damage or loss
within 72 hours of the date damage or
loss first becomes apparent will as well
as certain appraisal requirements will
also apply to rapidly deteriorating
crops. Because hand-harvested crops are
typically also crops that deteriorate
quickly in the field, this change does
not substantially alter the crops subject
to these requirements. This rule amends
§ 1437.11 to require that for handharvested or rapidly deteriorating crops,
a producer must request an appraisal
and release of unharvested acreage
within 72 hours after the acreage is
abandoned. This change is needed in
order for FSA to obtain an accurate
appraisal of potential production before
the crop begins to deteriorate. This rule
does not change the current provision
for crops that are not hand-harvested or
rapidly deteriorating, which requires the
producer to request an appraisal within
15 calendar days. This rule corrects
§ 1437.11 to apply the requirement for
filing a notice of loss to producers of
value loss crops, in addition to
producers of yield-based crops. This
correction is needed to ensure that all
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crop losses are timely reported and FSA
has adequate time to ensure that an
appraisal is completed.
For clarity, this rule also adds a
definition of ‘‘abandoned’’ in § 1437.3,
which is consistent with how FSA has
previously interpreted this term.
This rule adds provisions to § 1437.7
to specify when an acreage report must
be filed. These requirements reflect
current NAP policy. This rule adds
provisions to § 1437.8 to require
producers to provide acceptable
evidence of their risk in the crop and
ability and intent to harvest, transport,
and market their expected production
determined based on the approved yield
of the crop, or their inventory for value
loss crops. Acceptable evidence
includes documentation such as
receipts for seed and fertilizer and
contracts for harvest labor or transport
of the crop. FSA is making this
clarifying change to be consistent with
the intent of NAP, which is to provide
assistance to producers who have a
legitimate risk in their crops based on
what they would have reasonably been
expected to successfully produce and
market.
This rule amends § 1437.12 to specify
that FSA will establish the average
market price for a crop by obtaining
market prices for the 5 consecutive crop
years beginning with the most recent
year for which price data is available.
This change is consistent with current
implementation of NAP and is intended
to provide flexibility when price data
for a crop is unavailable for the
immediately preceding crop year.
Under § 1437.16, when a producer has
adopted a scheme or device or made
fraudulent misrepresentations or
misrepresented facts to FSA, that
producer must refund a NAP payment
with interest and other amounts as
determined appropriate to the
circumstances by FSA. This rule
amends those provisions to specify that
FSA may assess liquidated damages of
10 percent of an expected NAP payment
in those situations.
FSA has become aware that there are
locations for which there are no
independent assessors or assessments
available from which collective loss
determinations can be made for the
geographical area. Therefore, to provide
flexibility when two independent
assessments of grazed forage acreage
conditions cannot be obtained, this rule
clarifies in § 1437.401 that when there is
no similar mechanically harvested
forage acreage on a farm or similar farms
in the area and no independent
assessments, FSA may use alternative
methods for establishing the collective
percentage of loss as, determined by the
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Deputy Administrator. Additionally,
FSA is amending § 1437.401 to specify
that if a NAP-covered producer seeks a
NAP payment for forage crop acreage
intended for grazing determined based
on the collective percentage of loss, the
producer is only required to file an
application for payment. A notice of
loss will not be required unless the
NAP-covered producer wants a NAP
payment determined based on the NAPcovered producer’s unit production
similar to any other NAP-covered crop.
This rule removes provisions in
§ 1437.503 that made prevented
planting coverage available in Hawaii,
Puerto Rico, and other tropical areas
approved by the Deputy Administrator
for Farm Programs. Common program
provisions in § 718.103(a) provide that
in order to be eligible for coverage for
prevented planting, an eligible cause of
loss must have occurred before the final
planting date for the crop or, in the case
of multiple plantings, the harvest date of
the first planting in the applicable
planting period. Multiple planting
periods and final planting dates are not
applicable to covered tropical crops;
therefore, tropical crops cannot be
eligible for prevented planting coverage.
This rule also amends § 1437.502 to
refer to the maximum service fee per
crop per administrative county provided
in § 1437.7.
This rule also specifies that the
regulation is applicable to the 2019 and
subsequent crop years, and makes minor
technical corrections to § 1437.5.
Streamlining Reporting and Premium
Prices
The 2018 Farm Bill directed FSA to
establish a streamlined process for the
submission of records and acreage
reports for diverse production systems,
such as those typical of urban
production systems, other small-scale
production systems, and direct-toconsumer production systems. FSA is
currently reviewing its existing policies
to determine how the process can be
simplified while continuing to meet all
other statutory requirements. Any
changes made will be announced in
separate rulemaking.
The 2018 Farm Bill also amended the
payment provisions for crops with buyup coverage levels to specify that
payments will be based on ‘‘the average
market price, contract price, or other
premium price (such as a local, organic,
or direct market price, as elected by the
producer).’’ The average market price
has been typically established on a
state-by-state basis, meaning that all
NAP payments for a crop and, if
applicable, for an intended use within a
state would be based on the same
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average market price. Average market
prices are based on the best available
data (including National Agricultural
Statistics Service (NASS) data, National
Institute of Food and Agriculture (NIFA)
data, knowledge of local markets, etc.)
and are comparable (though not
required to be equal) to established
Federal Crop Insurance Corporation
(FCIC) prices.
Beginning with the 2015 crop year,
FSA had the ability to establish separate
average market prices within a State that
more closely reflected the prices
obtained by producers based on specific
situations, such as the use of different
farming practices (conventional or
organic) and sales to different markets
(such as direct sales to consumers at
farm stands or farmer’s markets). An
organic price option is currently
available for crops regardless of whether
they have basic 50/55 NAP coverage or
buy-up NAP coverage, and a direct
market option is currently available for
crops with buy-up coverage. FSA
currently offers a contract marketing
percentage option for producers with
buy-up coverage, which results in a
payment based on an established
average market price for fresh and
processed intended uses. This is based
on a producer’s contracted uses of the
crop for that crop year, but does not use
a producer’s individual contract price to
calculate a NAP payment.
Effective Date, Notice and Comment,
and Paperwork Reduction Act
As specified in 7 U.S.C. 9091, the
regulations to implement the provisions
of Title I and the administration of Title
I of the 2018 Farm Bill are:
• Exempt from the notice and
comment provisions of 5 U.S.C. 553,
• Exempt from the Paperwork
Reduction Act (44 U.S.C. chapter 35),
and
• To use the authority in 5 U.S.C. 808
related to Congressional review and any
potential delay in the effective date.
The APA provides that the 30-day
delay in the effective date and notice
and comment provisions do not apply
when the rule involves specified
actions, including matters relating to
benefits. This rule governs NAP
payments and therefore falls within that
exemption.
The authority provided in 5 U.S.C.
808 provides that when an agency finds
for good cause that notice and public
procedure are impracticable,
unnecessary, or contrary to the public
interest, that the rule may take effect at
such time as the agency determines. Due
to the nature of the rule, the mandatory
requirements of the 2018 Farm Bill, and
the need to implement the regulations
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expeditiously to provide assistance to
producers, FSA and CCC find that
notice and public procedure are
contrary to the public interest.
The Office of Management and Budget
(OMB) designated this rule as not major
under the Congressional Review Act, as
defined by 5 U.S.C. 804(2). Therefore,
FSA is not required to delay the
effective date for 60 days from the date
of publication to allow for
Congressional review.
Accordingly, this rule is effective
upon publication in the Federal
Register.
Executive Orders 12866, 13563, 13771
and 13777
Executive Order 12866, ‘‘Regulatory
Planning and Review,’’ and Executive
Order 13563, ‘‘Improving Regulation
and Regulatory Review,’’ direct agencies
to assess all costs and benefits of
available regulatory alternatives and, if
regulation is necessary, to select
regulatory approaches that maximize
net benefits (including potential
economic, environmental, public health
and safety effects, distributive impacts,
and equity). Executive Order 13563
emphasized the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. The
requirements in Executive Orders 12866
and 13573 for the analysis of costs and
benefits to loans apply to rules that are
determined to be significant. Executive
Order 13777, ‘‘Enforcing the Regulatory
Reform Agenda,’’ established a federal
policy to alleviate unnecessary
regulatory burdens on the American
people.
The Office of Management and Budget
(OMB) designated this rule as not
significant under Executive Order
12866, ‘‘Regulatory Planning and
Review,’’ and therefore, OMB has not
reviewed this rule and an analysis of
costs and benefits to loans is not
required under either Executives Orders
12866 or 13563.
Executive Order 13771, ‘‘Reducing
Regulation and Controlling Regulatory
Costs,’’ requires that in order to manage
the private costs required to comply
with Federal regulations that for every
new significant or economically
significant regulation issued, the new
costs must be offset by the elimination
of at least two prior regulations. As this
rule is designated not significant, it is
not subject to Executive Order 13771. In
general response to the requirements of
Executive Order 13777, USDA created a
Regulatory Reform Task Forces, and
USDA agencies were directed to remove
barriers, reduce burdens, and provide
better customer service both as part of
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the regulatory reform of existing
regulations and as an on-going
approach. FSA reviewed this
regulations and made changes to
improve any provision that was
determined to be outdated, unnecessary,
or ineffective.
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 analysis of any rule
whenever an agency is required by APA
or any other law to publish a proposed
rule, unless the agency certifies that the
rule will not have a significant
economic impact on a substantial
number of small entities. This rule is
not subject to the Regulatory Flexibility
Act because as noted above, this rule is
exempt from notice and comment
rulemaking requirements of the APA
and no other law requires that a
proposed rule be published for this
rulemaking initiative.
Environmental Review
In general, the environmental impacts
of rules are to be considered in a
manner consistent with the provisions
of the National Environmental Policy
Act (NEPA, 42 U.S.C. 4321–4347), the
regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508), and FSA regulations for
compliance with NEPA (7 CFR part
799). Some of the changes being made
in the rule were self-enacting and have
already been implemented
administratively. FSA has determined
that participation in programs similar to
those found in 7 CFR 1437 will not
significantly affect the quality of the
human environment (7 CFR part
799.9(d)). In addition, most of these
changes are mandatory with limited or
no discretionary decisions regarding
implementation. Therefore, they are not
subject to review under NEPA.
Additional changes will not have a
significant impact on the quality of the
human environment either individually
or cumulatively. The environmental
responsibilities for each prospective
farmers will not change from the current
process followed for all farm program
actions. Therefore, FSA will not prepare
an environmental assessment or
environmental impact statement on this
rule.
The changes proposed include
clarifications regarding eligible losses
and causes of loss (types of natural
disasters). FSA has likewise determined
that these efforts do not constitute major
Federal actions that would significantly
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12217
affect the quality of the human
environment, individually or
cumulatively, because of their context
and the anticipated intensity of impacts.
Executive Order 12372
Executive Order 12372,
‘‘Intergovernmental Review of Federal
Programs,’’ requires consultation with
State and local officials that would be
directly affected by proposed Federal
financial assistance. The objectives of
the Executive Order are to foster an
intergovernmental partnership and a
strengthened Federalism, by relying on
State and local processes for State and
local government coordination and
review of proposed Federal financial
assistance and direct Federal
development. For reasons specified in
the final rule related notice regarding 7
CFR part 3015, subpart V (48 FR 29115,
June 24, 1983), the programs and
activities in this rule are excluded from
the scope of Executive Order 12372.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, ‘‘Civil Justice
Reform.’’ This rule will not preempt
State or local laws, regulations, or
policies unless they represent an
irreconcilable conflict with this rule.
This rule does not have retroactive
effect. Before any judicial actions may
be brought regarding the provisions of
this rule, the administrative appeal
provisions of 7 CFR parts 11 and 780 are
to 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, except as required
by law. Nor does this rule impose
substantial direct compliance costs on
State and local governments. Therefore,
consultation with the States is not
required.
Executive Order 13175
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, ‘‘Consultation
and Coordination with Indian Tribal
Governments.’’ Executive Order 13175
requires Federal agencies to consult and
coordinate with tribes on a governmentto-government basis on policies that
have Tribal implications, including
regulations, legislative comments or
proposed legislation, and other policy
statements or actions that have
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substantial direct effects on one or more
Indian Tribes, on the relationship
between the Federal Government and
Indian Tribes or on the distribution of
power and responsibilities between the
Federal Government and Indian Tribes.
FSA has assessed the impact of this
rule on Indian Tribes and determined
that this rule has Tribal implications
that require Tribal consultation under
Executive Order 13175. Tribal
consultation for this rule was included
in the 2018 Farm Bill consultation held
on May 1, 2019, at the National Museum
of American Indian, in Washington DC.
USDA Under Secretary for the Farm
Production and Conservation mission
area, as part of Title I session. There
were no specific comments from Tribes
on this rule during Tribal consultation.
If a Tribe requests additional
consultation, FSA 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 law.
Unfunded Mandates
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 of State, local, and Tribal
governments or the private sector.
Agencies generally must prepare a
written statement, including cost
benefits analysis, for proposed and final
rules with Federal mandates that may
result in expenditures of $100 million or
more in any 1 year for State, local or
Tribal governments, in the aggregate, or
to the private sector. UMRA generally
requires agencies to consider
alternatives and adopt the more cost
effective or least burdensome alternative
that achieves the objectives of the rule.
This rule contains no Federal mandates,
as defined in Title II of UMRA, for State,
local and Tribal governments or the
private sector. Therefore, this rule is not
subject to the requirements of sections
202 and 205 of UMRA.
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Federal Assistance Programs
The title and number of the Federal
Assistance Program found in the Catalog
of Federal Domestic Assistance, to
which this rule applies, is: 10.451—
Noninsured Assistance.
E-Government Act Compliance
FSA 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.
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List of Subjects in 7 CFR part 1437
Acreage allotments, Agricultural
commodities, Crop insurance, Disaster
assistance, Fraud, Penalties, Reporting
and recordkeeping requirements.
For the reasons as stated in the
preamble, CCC amends 7 CFR part 1437
as follows:
PART 1437—NONINSURED CROP
DISASTER ASSISTANCE PROGRAM
1. The authority citation for part 1437
continues to read as follows:
■
Authority: 7 U.S.C. 1501–1508 and 7333;
15 U.S.C. 714–714m; 19 U.S.C. 2497, and 48
U.S.C. 1469a.
Subpart A—General Provisions
2. Amend § 1437.1 as follows:
a. Revise paragraph (b); and
b. In paragraph (c), remove ‘‘2015’’
and add ‘‘2019’’ in its place.
The revision reads as follows:
■
■
■
§ 1437.1
Applicability.
*
*
*
*
*
(b) The provisions in this part are
applicable to eligible producers and
eligible crops for which catastrophic
risk protection is not available under
subsection (b) of section 508 of the
Federal Crop Insurance Act (7 U.S.C.
1508) and additional coverage under
subsections (c) and (h) of section 508 or,
if coverage is available, it is only
available under a policy that provides
coverage for specific intervals based on
weather indexes or under a whole farm
plan of insurance.
*
*
*
*
*
■ 3. Amend § 1437.3 as follows:
■ a. Add the definitions of
‘‘Abandoned’’, ‘‘Hemp’’, ‘‘Hemp
processor’’, ‘‘Hemp processor contract’’,
and ‘‘THC’’ in alphabetical order; and
■ b. In the definition of ‘‘Native sod’’,
remove the words ‘‘for the production of
an annual crop through February 7,
2014’’.
The additions read as follows:
§ 1437.3
Definitions.
*
*
*
*
*
Abandoned means to have
discontinued care for a crop or provided
care so insignificant as to provide no
benefit to the crop, or failed to harvest
in a timely manner.
*
*
*
*
*
Hemp means the plant Cannabis
sativa L. and any part of that plant,
including the seeds thereof and all
derivatives, extracts, cannabinoids,
isomers, acids, salts, and salts of
isomers, whether growing or not, with a
THC concentration of not more than 0.3
percent on a dry weight basis.
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Hemp processor means any business
enterprise regularly engaged in
processing hemp that possesses all
licenses and permits for processing
hemp required by the applicable state or
Federal governing authority, and that
possesses facilities, or has contractual
access to such facilities with enough
equipment to accept and process
contracted hemp within a reasonable
amount of time after harvest.
Hemp processor contract means a
legal written agreement executed
between the producer and hemp
processor engaged in the production
and processing of hemp containing at a
minimum:
(1) The producer’s promise to plant
and grow hemp and to deliver all hemp
to the hemp processor;
(2) The hemp processor’s promise to
purchase the hemp produced by the
producer; and
(3) A base contract price, or method
to derive a value that will be paid to the
producer for the production as specified
in the processor’s contract.
(4) For a producer who is also a hemp
processor, a corporate resolution by the
Board of Directors or officers of the
hemp processor will be considered a
hemp processor contract if it contains
the required terms listed in this
definition.
*
*
*
*
*
THC means delta-9
tetrahydrocannabinol.
*
*
*
*
*
■ 4. Amend § 1437.4 as follows:
■ a. Revise paragraph (a)(4)(i);
■ b. Remove paragraph (a)(4)(ii);
■ c. Redesignate paragraphs (a)(4)(iii)
and (a)(4)(iv) as (a)(4)(ii) and (a)(4)(iii),
respectively;
■ d. Revise paragraph (c);
■ e. Redesignate paragraphs (d) and (e)
as (e) and (f), respectively;
■ f. Add new paragraph (d); and
■ g. In newly redesignated paragraph
(e), remove ‘‘paragraph (c)’’ and add
‘‘paragraph (d)’’ in its place.
The revisions and addition read as
follows.
§ 1437.4
Eligibility.
(a) * * *
(4) * * *
(i) Catastrophic risk protection and
additional coverage under the Federal
Crop Insurance Act (7 U.S.C. 1508(b),
(c), and (h)) are not available or, if
coverage is available, it is only available
under a policy that provides coverage
for specific intervals based on weather
indexes or under a whole farm plan of
insurance; or
*
*
*
*
*
(c) Except as specified in paragraph
(e) of this section, paragraph (d) of this
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section will apply to native sod acreage
in Iowa, Minnesota, Montana, Nebraska,
North Dakota, and South Dakota that
has been tilled:
(1) During the first 4 crop years of
planting for native sod acreage that has
been tilled for the production of an
annual crop during the period beginning
on February 8, 2014, and ending on
December 20, 2018; and
(2) For not more than any 4 crop years
for native sod acreage that has been
tilled for the production of any crop
after December 20, 2018:
(i) During the first 10 crop years after
the initial tillage; and
(ii) For which a NAP applicant must
submit a service fee or NAP premium
for a crop on that acreage.
(d) For acreage specified in paragraph
(c) of this section:
(1) The approved yield will be
determined by using a yield equal to 65
percent of the producer’s T-yield for the
annually planted crop; and
(2) The service fee or premium for the
annual covered crop planted on native
sod will be equal to 200 percent of the
amount determined in § 1437.7, as
applicable, but the premium will not
exceed the maximum amount specified
in § 1437.7(d)(2).
*
*
*
*
*
■ 5. Amend § 1437.5 as follows:
■ a. In paragraph (d) introductory text,
remove the words ‘‘For 2015 through
2018 crop years, producers’’ and add the
words ‘‘Subject to paragraph (e) of this
section, producers’’ in their place; and
■ b. In paragraph (d)(1), remove the
word ‘‘your’’ and add the word ‘‘the’’ in
its place;
■ c. Redesignate paragraphs (e) and (f)
as paragraphs (f) and (g), respectively;
■ d. Add new paragraph (e).
The addition reads as follows:
§ 1437.5
Coverage levels.
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*
*
*
*
*
(e) A producer cannot obtain buy-up
coverage for a crop if the producer has
not successfully produced the crop in a
previous year for which documentation
exists and that documentation shows
that the crop can be successfully grown
by the producer in the county.
Production of the crop is considered to
be successful if the producer produced
at least 50 percent of the county
expected yield for the same county for
which buy-up coverage is sought, unless
the producer suffered a loss on the crop
due to an eligible cause of loss in
§ 1437.10. If not already provided to
FSA for any reason including NAP
coverage or assistance, the producer
must submit documentation showing
successful growing of the crop in a
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previous year and, in the event a loss
due to an eligible cause of loss was
sustained, submit documentation of that
loss satisfying the requirements of
§ 1437.11.
*
*
*
*
*
■ 6. Amend § 1437.6 as follows:
■ a. In paragraph (a) introductory text,
remove the phrase ‘‘30 days’’ and add
the phrase ‘‘1 calendar day’’ in its place;
■ b. In paragraph (a)(2), remove the
phrase ‘‘30 days’’ and add the phrase
‘‘30 calendar days’’ in its place;
■ c. In paragraphs (b)(1)(i), (c), and (d),
remove the phrase ‘‘30 calendar days’’
each time it appears and add the phrase
‘‘1 calendar day’’ in its place;
■ d. Revise paragraph (e);
■ e. In paragraph (f), remove the phrase
‘‘30 calendar days’’ and add the phrase
‘‘1 calendar day’’ in its place both times
it appears;
■ f. In paragraph (g), remove the phrase
‘‘30 calendar days’’ and add the phrase
‘‘1 calendar day’’ in its place, and
remove the phrase ‘‘30 days’’ and add
the phrase ‘‘1 calendar day’’ in its place;
and
■ g. Revise paragraph (h).
The revisions read as follows:
§ 1437.6
Coverage period.
*
*
*
*
*
(e) Honey. Except as provided in
paragraph (h) of this section, the
coverage period for honey begins the
later of 1 calendar day after the date of
the application for coverage is filed; 1
calendar day after the application
closing date; or the date the colonies are
set in place for honey production. The
coverage ends the last day of the crop
year.
*
*
*
*
*
(h) 2019 and 2020 crop years. For the
2019 and 2020 crop years only, if a
crop’s application closing date is before
April 8, 2019, the coverage period of the
crop will be as specified in paragraphs
(a) through (g) of this section except that
the date coverage begins will be
retroactive as long as the application for
coverage is filed by the application
closing date as specified in § 1437.7(i).
This limited retroactive coverage for the
2019 and 2020 crop years only will
begin 1 calendar day after the
established application closing date,
which would be the same as if they had
filed by the deadlines as specified in
paragraphs (a) through (g) of this
section.
■ 7. Amend § 1437.7 as follows:
■ a. Revise the section heading and
paragraphs (b) and (e);
■ b. In paragraph (g), remove the words
‘‘and socially’’ and add the word
‘‘socially’’ in their place, and remove
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12219
the words ‘‘ranchers will’’ and add the
words ‘‘ranchers, and veteran farmers
and ranchers will’’ in their place;
■ c. Revise paragraph (i); and
■ d. Add paragraphs (j), (k), and (l).
The revisions and additions read as
follows:
§ 1437.7 Application for coverage, service
fee, premium, transfers of coverage, and
acreage report.
*
*
*
*
*
(b) The service fee or request for
service fee waiver specified in
paragraph (g) of this section must
accompany the application for coverage
in order for it to be considered filed.
The service fee is:
(1) For applications filed by April 7,
2019, $250 per crop per administrative
county, up to $750 per producer per
administrative county, not to exceed
$1,875 per producer; and
(2) For applications filed on or after
April 8, 2019, $325 per crop per
administrative county, up to $825 per
producer per administrative county, not
to exceed $1,950 per producer.
*
*
*
*
*
(e) For value loss crops, premiums
will be equal to the lesser of:
(1) The product obtained by
multiplying:
(i) A 5.25-percent premium fee; and
(ii) The applicable payment limit; or
(2) The sum of the premiums for each
eligible crop, with the premium for each
eligible crop obtained by multiplying:
(i) The maximum dollar value for
which coverage is sought by the
applicant;
(ii) The coverage level elected by the
producer; and
(iii) A 5.25-percent premium fee.
*
*
*
*
*
(i) For the 2019 and 2020 crop years,
if a crop’s application closing date is
before April 8, 2019, FSA will accept
applications for coverage without regard
to whether or not the application for
coverage was filed by the crop’s
application closing date, provided that
the application for coverage includes
buy-up coverage according to
§ 1437.5(d) and is filed by May 24, 2019.
Except as specifically stated in this rule,
the provisions of this paragraph do not
apply to crops having an application
closing date established on or after April
8, 2019, or to applications for coverage
that do not include buy-up coverage as
an option selected by the applicant. The
coverage period for applications for
coverage filed according to this
paragraph will be as specified in
§ 1437.6.
(j) An accurate acreage report must be
filed for each crop included on an
application for coverage by the earliest
of:
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(1) The acreage reporting date for the
crop announced by FSA;
(2) 15 calendar days before the onset
of harvest or grazing of the crop acreage
being reported; or
(3) The established normal harvest
date for the end of the coverage period.
(k) Applications for coverage for
hemp are governed by this part.
(l) Applications for coverage that were
filed with FSA for all crops other than
hemp that were covered under the
regulations in effect at the time of filing
and which meet all the other
requirements of this section will be
recognized by FSA.
■ 8. Amend § 1437.8 as follows:
■ a. In paragraph (a) introductory text,
remove the words ‘‘records of crop
acreage’’ and add the words ‘‘accurate
records of crop acreage’’ in their place
and revise the last sentence.
■ b. In paragraph (b)(1), remove the
words ‘‘crops must’’ and add the words
‘‘or rapidly deteriorating crops, as
determined by the Deputy
Administrator, must’’ in their place, and
remove the words ‘‘hand-harvested crop
acreage’’ and add the words ‘‘acreage of
hand-harvested or rapidly deteriorating
crops’’ in their place;
■ c. In paragraph (c)(1), remove the
word ‘‘and’’;
■ d. In paragraph (c)(2), remove the
period at the end of the paragraph and
add a semicolon in its place; and
■ e. Add paragraphs (c)(3) and (c)(4).
The revision and additions read as
follows:
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§ 1437.8
Records.
(a)* * * A certification of an amount
of production itself is not a record of
production. Certifications must be
accompanied by a record of production;
records of production’’ in their place;
*
*
*
*
*
(c) * * *
(3) The producer’s risk in the crop;
and
(4) The producer’s ability and intent
to harvest, transport, and market the
crop’s expected production determined
by using the approved yield or
inventory of the crop or commodity.
*
*
*
*
*
■ 9. Amend § 1437.10 as follows:
■ a. Redesignate paragraphs (b)(1)(viii)
and (b)(1)(ix) as paragraphs (b)(1)(ix)
and (b)(1)(x), respectively;
■ b. Add new paragraph (b)(1)(viii);
■ c. In newly redesignated paragraph
(b)(1)(ix), remove the cross reference
‘‘(viii)’’ and add the reference ‘‘(ix)’’ in
its place;
■ d. In paragraph (b)(3)(iv), remove the
word ‘‘or’’;
■ e. Redesignate paragraph (b)(3)(v) as
paragraph (b)(3)(vi);
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Jkt 250001
f. Add new paragraph (b)(3)(v);
g. In paragraph (d)(15), remove the
words ‘‘practices; or’’ and add the word
‘‘practices;’’ in their place;
■ h. In paragraph (d)(16), remove the ‘‘.’’
and add ‘‘; or’’ in its place; and
■ i. Add paragraph (d)(17).
The additions read as follows:
■
■
§ 1437.10
Causes of loss.
*
*
*
*
*
(b) * * *
(1) * * *
(viii) Lightning;
*
*
*
*
*
(3) * * *
(v) Wildfire; or
*
*
*
*
*
(d) * * *
(17) Failure to harvest or market the
crop due to lack of a sufficient plan or
resources.
*
*
*
*
*
■ 10. Amend § 1437.11 as follows:
■ a. In paragraph (a) and paragraph (b)
introductory text, remove the word
‘‘hand-harvested’’ and add the words
‘‘hand-harvested or rapidly
deteriorating’’ both times they appear;
■ b. In paragraph (b)(2), remove the
word ‘‘claims’’ add the words ‘‘claims
and value loss claims’’ in its place; and
■ c. Revise paragraph (d)(2)(ii).
The revision reads as follows:
§ 1437.11 Notice of loss, appraisal
requirements, and application for payment.
*
*
*
*
*
(d) * * *
(2) * * *
(ii) Within 72 hours after the acreage
is abandoned for hand-harvested or
rapidly deteriorating crops, or within 15
calendar days after the acreage is
abandoned for all other crops;
*
*
*
*
*
§ 1437.12
[Amended]
11. Amend § 1437.12 as follows:
a. In paragraph (b)(1), remove the
words ‘‘immediately preceding the crop
year of coverage, if available’’ and add
the words ‘‘beginning with the most
recent year for which price data is
available’’ in their place; and
■ b. In paragraph (b)(4), remove the
words ‘‘immediately preceding the
previous crop year’’ and add the words
‘‘beginning with the most recent year for
which price data is available’’ in their
place.
■ 12. In § 1437.16, amend paragraph (d)
by adding two sentences to the end of
the paragraph to read as follows:
■
■
§ 1437.16
*
Miscellaneous provisions.
*
*
(d) * * *
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*
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*
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FSA may assess liquidated damages of
10 percent of the projected or received
NAP payment for the crop or
commodity in violation. Liquidated
damages are in addition to any refund
of program benefits and are not
considered a penalty.
*
*
*
*
*
Subpart B—Determining Yield
Coverage Using Actual Production
History
■
13. Add § 1437.108 to read as follows.
§ 1437.108
Hemp.
(a) Hemp is eligible for NAP coverage
only if the hemp is:
(1) Grown under an official
certification or license issued by the
applicable governing authority that
permits the production of the hemp;
(2) Grown under a hemp processor
contract executed by the applicable
acreage reporting date; and
(3) Planted for harvest as hemp in
accordance with the requirements of the
hemp processor contract and the
production management practices of the
hemp processor.
(b) In addition to all other
requirements under this part, a producer
who obtains NAP coverage for hemp
must submit by the acreage reporting
date:
(1) The certification or license
number;
(2) A copy of the certification form or
official license issued by the applicable
governing authority authorizing the
producer to produce hemp; and
(3) A copy of each fully executed
hemp processor contract.
(c) A producer must submit THC test
results taken at harvest of the hemp
crop. If the producer does not submit
the THC test results, that production
will not be included in the producer’s
actual yield for the purpose of
determining a producer’s APH under
§ 1437.101.
(d) Hemp is not eligible for NAP
coverage if it is planted on acres on
which Cannabis, canola, dry beans, dry
peas, mustard, rapeseed, soybeans in
states as determined by the Deputy
Administrator, or sunflowers were
grown the preceding crop year.
(e) Hemp that has a THC level above
0.3 percent:
(1) Is not eligible for NAP benefits;
and
(2) Is not included in the producer’s
actual yield for the purpose of
determining a producer’s APH under
§ 1437.101.
(f) Hemp will be ineligible for NAP
payment for that NAP crop year if the
producer’s certification or license is
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02MRR1
Federal Register / Vol. 85, No. 41 / Monday, March 2, 2020 / Rules and Regulations
terminated or suspended during that
NAP crop year.
SECURITIES AND EXCHANGE
COMMISSION
Subpart D—Determining Coverage
Using Value
17 CFR Part 200
§ 1437.301
[Release Nos. 33–10757; 34–88245; IA–
5446; IC–33802]
[Amended]
■
14. In § 1437.301, remove paragraph
(d).
Delegation of Authority to the General
Counsel of the Commission
Subpart E—Determining Coverage of
Forage Intended for Animal
Consumption
AGENCY:
15. Amend § 1437.401 as follows:
a. In paragraph (f)(2), remove the word
‘‘conditions’’ and add the words
‘‘conditions, or by alternative methods
as determined by the Deputy
Administrator’’ in its place; and
■ b. Add paragraph (g).
The addition reads as follows:
SUMMARY:
■
■
§ 1437.401
Forage.
*
*
*
*
*
(g) For those NAP covered
participants who seek to have a NAP
payment determined based on
paragraph (f)(2) of this section, a notice
of loss under § 1437.11 will not be
required; only an application for
payment must be filed. Unless
otherwise expressed by the NAP
covered participant, FSA will presume
the participant to want assistance for
grazed forage determined according to
paragraph (f)(2) of this section.
Subpart F—Determining Coverage in
the Tropical Region
§ 1437.502
[Amended]
16. Amend § 1437.502 as follows:
■ a. In paragraph (b), remove ‘‘December
1’’ and add ‘‘December 31’’ in its place.
■ b. In paragraph (c), remove the words
‘‘per county per crop year, a maximum
service fee of $250’’ and add the words
‘‘the maximum service fee per crop per
county provided at § 1437.7’’ in their
place.
■
§ 1437.503
[Amended]
17. In § 1437.503(a), remove the words
‘‘crops, other than in Hawaii, Puerto
Rico, and other areas approved by the
Deputy Administrator, except as
approved by the Deputy Administrator
in special cases’’ and add the word
‘‘crops’’ in their place.
khammond on DSKJM1Z7X2PROD with RULES
■
Richard Fordyce,
Administrator, Farm Service Agency.
Robert Stephenson,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2020–04103 Filed 2–28–20; 8:45 am]
BILLING CODE 3410–05–P
VerDate Sep<11>2014
15:57 Feb 28, 2020
Jkt 250001
Securities and Exchange
Commission.
ACTION: Final rule.
The Securities and Exchange
Commission (‘‘Commission’’) is revising
regulations with respect to the
delegations of authority to the
Commission’s General Counsel. The
revisions are a result of the
Commission’s experience with its
bankruptcy program and they are
intended to conserve Commission
resources by delegating to staff the
discretion to file objections in
bankruptcy cases with respect to the
frequently recurring issue of non-debtor
third-party releases. The revisions will
expedite and enhance the effectiveness
of the Commission’s bankruptcy
program by enabling staff to meet
bankruptcy court deadlines that affect
issues important to the Commission.
DATES: Effective March 2, 2020.
FOR FURTHER INFORMATION CONTACT:
Morgan Bradylyons, Bankruptcy
Counsel, and Tracey Hardin, Assistant
General Counsel for Appellate Litigation
and Bankruptcy, Office of the General
Counsel, (202) 551–7926, Securities and
Exchange Commission, 100 F Street NE,
Washington, DC 20549–9040.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission is revising the
delegations of authority to its General
Counsel as a result of the Commission’s
experience with its bankruptcy program.
The revisions are intended to increase
the efficiency of the Commission’s
operations by delegating to staff the
discretion to file objections in
bankruptcy cases with respect to the
frequently recurring issue of non-debtor
third-party releases. The revisions will
expedite and enhance the effectiveness
of the Commission’s bankruptcy
program by enabling staff to meet
bankruptcy court deadlines that affect
issues important to the Commission.
Congress has authorized such delegation
by Public Law 87–592, 76 Stat. 394, 15
U.S.C. 78d–1(a), which provides that the
Commission ‘‘shall have the authority to
delegate, by published order or rule, any
of its functions to . . . an employee or
employee board, including functions
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
12221
with respect to hearing, determining,
ordering, certifying, reporting, or
otherwise acting as to any work,
business or matter.’’
Accordingly, the Commission is
amending its rules to delegate authority
to the General Counsel to file objections
in bankruptcy cases with respect to the
routine, recurring issue of non-debtor
third-party release provisions. Under
this delegation, the General Counsel (or,
under his or her direction, such persons
as might be designated from time to
time by the Chairman of the
Commission) would authorize the staff,
in bankruptcy cases, to take the
following actions with respect to plan or
settlement provisions that have the
effect of releasing, exculpating,
discharging, or permanently enjoining
actions against non-debtor third parties
in contravention of Section 524(e) of the
Bankruptcy Code or applicable law: (1)
Object to approval of disclosure
statements, including on the basis that
the disclosure statement lacks adequate
information under Section 1125(b) to
support such release provisions; (2)
object to confirmation of bankruptcy
plans; or (3) object to approval of
settlements.
Notwithstanding this delegation, the
General Counsel may submit any matter
he or she believes appropriate to the
Commission. Furthermore, any action
taken by the General Counsel pursuant
to delegated authority would be subject
to Commission review as provided by
Rules 430 and 431 of the Commission’s
Rules of Practice, 17 CFR 201.430–
201.431 and 15 U.S.C. 78d–1(b).
II. Administrative Law Matters
The Commission finds, in accordance
with the Administrative Procedure Act
(‘‘APA’’), that these revisions relate
solely to agency organization,
procedure, or practice and do not
constitute a substantive rule. 5 U.S.C.
553(b)(3)(A). Accordingly, the APA’s
provisions regarding notice of
rulemaking, opportunity for public
comment, and advance publication of
the amendments prior to their effective
date are not applicable. These changes
are therefore effective on March 2, 2020.
For the same reason, and because these
amendments do not affect the rights or
obligations of non-agency parties, the
provisions of the Small Business
Regulatory Enforcement Fairness Act
are not applicable. 5 U.S.C. 804(3)(C)
(the term ‘‘rule’’ does not include ‘‘any
rule of agency organization, procedure,
or practice that does not substantially
affect the rights or obligations of nonagency parties.’’) Additionally, the
provisions of the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq., which apply
E:\FR\FM\02MRR1.SGM
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Agencies
[Federal Register Volume 85, Number 41 (Monday, March 2, 2020)]
[Rules and Regulations]
[Pages 12213-12221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04103]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1437
[Docket No. CCC-2019-0005]
RIN 0560-AI48
Noninsured Crop Disaster Assistance Program
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements changes to the Noninsured Crop Disaster
Assistance Program (NAP) as required by the Agriculture Improvement Act
of 2018 (the 2018 Farm Bill). The rule makes buy-up coverage levels
available for 2019 and future years, increases service fees, and
extends the service fee waiver and premium reduction to eligible
veterans. The rule includes the changes to the payment limitation and
native sod provisions and clarifies when NAP coverage is available for
crops when certain crop insurance is available under the Federal Crop
Insurance Act. This rule is adding provisions for eligibility and
program requirements for new producers or producers with less than 1-
year growing experience with a new crop (for example, most hemp
producers). This rule also makes some additional minor changes to
clarify existing NAP requirements and improve program integrity.
DATES: Effective: March 2, 2020.
FOR FURTHER INFORMATION CONTACT: Tona Huggins, (202) 720-7641;
[email protected]. Persons with disabilities who require
alternative means for communication should contact the USDA Target
Center at (202) 720-2600 (voice).
SUPPLEMENTARY INFORMATION:
Background
NAP provides financial assistance to producers of noninsurable
crops to protect against natural disasters that result in crop losses
or prevent crop planting. FSA administers NAP for the Commodity Credit
Corporation (CCC) as authorized by section 196 of the Federal
Agriculture Improvement and Reform Act of 1996, as amended (7 U.S.C.
7333). NAP is administered under the general supervision of the FSA
Administrator and is carried out by FSA State and county committees.
NAP is available for crops for which catastrophic risk protection
and additional coverage under the Federal Crop Insurance Act (7 U.S.C.
1508(b) and (c), and (h)) are not available or, if such coverage is
available, it is only available under a policy that is in a ``pilot''
program category, provides coverage for specific intervals based on
weather indexes or under a whole farm plan of insurance. The
eligibility for NAP coverage is limited to:
Crops other than livestock that are commercially produced
for food and fiber, and
Other specific crops including floricultural, ornamental
nursery, and Christmas tree crops, turfgrass sod, seed crops,
aquaculture (including ornamental fish), sea grass and sea oats,
camelina, sweet sorghum, biomass sorghum, and industrial crops
(including those grown expressly for the purpose of producing a
feedstock for renewable biofuel, renewable electricity, or biobased
products).
Qualifying losses to eligible NAP crops must be due to an eligible
cause of loss as specified in 7 CFR part 1437, which includes damaging
weather (drought, hurricane, freeze, etc.) or adverse natural
occurrence (volcanic eruption, flood, etc.). In order to be eligible
for a NAP payment, producers must first apply for NAP coverage and
submit the required NAP service fee or service fee waiver to their FSA
county office by the application closing date for their crop. The NAP
application for coverage must be completed, including submission of the
service fee or a service fee waiver, before NAP coverage can begin.
Losses occurring outside a coverage period are not eligible for NAP
assistance. Producers who choose not to obtain NAP coverage for a crop
are not eligible for NAP assistance for the crop. This rule does not
change the core provisions of NAP.
The 2018 Farm Bill (Pub. L. 115-334) made several changes to NAP.
This rule amends the NAP regulations to be consistent with those
changes. The mandatory changes make ``buy-up'' coverage available for
2019 and later crop years, allowing producers to buy additional NAP
coverage for a premium, resulting in a risk management product that has
equivalent coverage levels to some types of crop insurance offered by
the Risk Management Agency (RMA). This rule also implements the 2018
Farm Bill's provisions regarding payment limitation, increased service
fees, a service fee waiver and a premium
[[Page 12214]]
reduction for eligible veterans, the beginning of the coverage period,
benefit restrictions for crops grown on native sod acreage, and the
availability of NAP coverage for crops for which crop insurance is
available under the Federal Crop Insurance Act. This rule also makes
some additional minor changes to clarify existing NAP requirements and
improve program integrity.
Eligibility of Crops Not Covered by Federal Crop Insurance
This rule implements changes required by the 2018 Farm Bill with
regard to NAP crop eligibility. The 2018 Farm Bill specifies that NAP
is available for crops for which catastrophic risk protection is not
available under section 508(b) of the Federal Crop Insurance Act and
additional coverage under subsections 508(c) and 508(h) is not
available or, if such coverage is available, it is only available under
a policy that is in a ``pilot'' program category, provides coverage for
specific intervals based on weather indexes or under a whole farm plan
of insurance. This rule amends provisions at Sec. Sec. 1437.1 and
1437.4 to be consistent with the 2018 Farm Bill.
Buy-Up Coverage Levels and Premiums
Prior to the 2014 Farm Bill, NAP provided only catastrophic
coverage (basic 50/55 coverage), which is based on the amount of loss
that exceeds 50 percent of expected production at 55 percent of the
average market price for the crop. The 2014 Farm Bill changes
authorized additional higher levels of coverage (``buy-up'' coverage)
ranging from 50 to 65 percent of production, in 5 percent increments,
at 100 percent of the average market price. However, that buy-up
coverage was only available for 2015 through 2018. The 2018 Farm Bill
makes buy-up coverage available for 2019 and future crop years. This
rule amends Sec. 1437.5 to remove the reference to 2015 through 2018
program years to be consistent with the 2018 Farm Bill. As under the
2014 Farm Bill, crops and grasses intended for grazing are specifically
excluded from buy-up coverage.
To obtain buy-up coverage, producers are required to pay a premium,
equal to 5.25 percent times the level of coverage, in addition to the
NAP service fee. The 50 percent premium reduction for beginning,
limited resource, and socially disadvantaged farmers or ranchers
specified in the regulation continues to apply for 2019 and future
years. The 2018 Farm Bill and this rule also extend the premium
reduction to eligible veteran farmer or ranchers as defined in 7 CFR
718.2. To qualify for the waiver, a veteran must have either been
farming for 10 years or less or achieved veteran status in the past 10
years.
Because the application closing dates for all 2019 crops and some
2020 crops passed prior to the announcement of 2018 Farm Bill
provisions that authorized the availability of buy-up NAP coverage, FSA
allowed producers of those crops to retroactively obtain buy-up
coverage for 2019 and 2020. On April 8, 2019, FSA announced an extended
application period for buy-up coverage for those crops through a press
release and extensive outreach efforts. Producers were required to
submit an application for coverage requesting buy-up coverage and pay
the applicable service fee by May 24, 2019. Basic 50/55 coverage was
not affected by the 2018 Farm Bill and was available prior to the
application closing dates; therefore, the application closing dates for
basic 50/55 coverage were not extended.
Service Fees
This rule amends the NAP service fees in Sec. 1437.7 as required
by the 2018 Farm Bill. The service fee has increased from $250 to $325
per crop, from $750 to $825 maximum per producer per county, and from
$1,875 to $1,950 maximum per producer for all counties. FSA implemented
the service fee increase administratively on April 8, 2019.
Prior to this rule, the NAP service fee was waived for beginning,
limited resource, and socially disadvantaged farmers. That waiver
continues to apply for those groups for 2019 and future years, and is
also made available to eligible veteran farmers as defined in 7 CFR
718.2.
Payment and Income Limitation
The 2018 Farm Bill establishes payment and income limitations that
apply to 2018 and subsequent crop, program, or fiscal year benefits.
FSA is implementing the payment and income limitations through a
separate final rule to be published in the Federal Register. The
payment and income limitations are specified in 7 CFR part 1400.
The 2018 Farm Bill established separate payment limitations for NAP
assistance. The total NAP payment amount for all crops with basic 50/55
coverage is limited to $125,000 per person or legal entity, directly or
indirectly. The total NAP payment amount for all crops with buy-up
coverage is limited to $300,000 per person or legal entity, directly or
indirectly. A producer may elect different coverage levels for
different crops; therefore, both payment limitations may apply to the
same person or legal entity. For example, a person or legal entity that
is a producer may elect basic 50/55 coverage for green peppers, a buy-
up coverage level of 55/100 for cantaloupe, and a buy-up coverage level
of 65/100 for tomatoes. In that case, the producer could receive an
annual per person or legal entity payment of up to $125,000 for
eligible losses to green peppers, and a total payment of up to $300,000
for eligible losses to cantaloupe and tomatoes.
Attribution of payments specified in 7 CFR part 1400 applies in
administering the payment limitation. The average adjusted gross income
(AGI) limit for most FSA and CCC programs, including NAP, is $900,000.
Native Sod
The 2014 Farm Bill introduced native sod provisions that required
increased NAP service fees and premiums and also reduced the actual
production history and only applied, per the 2014 Farm Bill, to certain
producers in Iowa, Minnesota, Montana, Nebraska, North Dakota, and
South Dakota. The 2014 Farm Bill applied those provisions to native sod
tilled for production of annual crops after February 7, 2014, in any
year in the first 4 years of cropping. The 2018 Farm Bill continues the
previous policy under the 2014 Farm Bill for native sod tilled for
annual crop production from February 7, 2014, through December 20,
2018. It also applies the provisions to native sod tilled for
production of any crop enrolled in NAP after December 20, 2018, for no
more than 4 years during the first 10 years of cropping. As under the
2014 Farm Bill, the NAP service fee and premiums for crops planted on
acreage subject to these provisions will be 200 percent of the amount
calculated according to Sec. 1437.7, with the premium not to exceed
the maximum amount of 5.25 percent times the payment limitation. This
rule also amends the definition of native sod to be consistent with the
new provisions. The 2018 Farm Bill does not change the de minimis
acreage exemption, which applies to areas of 5 acres or less, meaning
that for these areas are exempt from the native sod provision.
Coverage Period
Prior to the 2018 Farm Bill, the NAP coverage period could not
begin earlier than 30 days after a producer filed a NAP application for
coverage. The 2018 Farm Bill changed this requirement to specify that
the application for coverage must be filed ``by an appropriate
[[Page 12215]]
deadline before the beginning of the coverage period, as determined by
the Secretary.'' This rule amends Sec. 1437.6 to specify that a
coverage period could now begin as soon as one calendar day after an
application for coverage is filed, provided that the NAP-covered crop
has an otherwise defined coverage period that would ordinarily
accommodate that start date. This rule also specifies that the coverage
period for honey will begin the later of one calendar day after the
date the application for coverage is filed, one calendar day after the
application closing date, or the date the colonies are set in place for
honey production.
Hemp Eligibility
The 2018 Farm Bill defines ``hemp'' as the plant species Cannabis
sativa L. and any part of that plant, including the seeds thereof and
all derivatives, extracts, cannabinoids, isomers, acids, salts, and
salts of isomers, whether growing or not, with a delta-9
tetrahydrocannabinol (THC) concentration of not more than 0.3 percent
on a dry weight basis. The 2018 Farm Bill allows commercial hemp
production if the crop is grown in compliance with a State, Tribal, or
federal plan. Beginning with the 2020 crop year, hemp will be
considered an eligible crop under NAP similar other NAP crops for which
catastrophic risk protection and additional coverage under the Federal
Crop Insurance Act (7 U.S.C. 1508(b) and (c), and (h)) are not
available or, if such coverage is available, it is only available under
a policy that provides coverage for specific intervals based on weather
indexes or under a whole farm plan of insurance. This rule adds a new
section containing hemp eligibility and program requirements at Sec.
1437.108 and defines ``hemp,'' ``hemp processor,'' ``hemp processor
contract,'' and ``THC'' in Sec. 1437.3.
NAP only offers coverage to eligible hemp, which must be grown
under a Federal, State, or Tribal plan. Those plans require a license.
Therefore, to be eligible for NAP coverage, the hemp must be grown
under an official certification or license issued by the applicable
governing authority, the producer must have a hemp processor contract
for the crop by the acreage reporting date, and the crop must be
planted for harvest as hemp in accordance with that contract. If a
producer is also a hemp processor, a corporate resolution including an
adoption of the terms specified in this rule for a hemp processor
contract by the Board of Directors or officers will be considered a
hemp processor contract.
Hemp producers must provide the certification or license number and
a copy of the certificate or license, and copies of all hemp processor
contracts by the acreage reporting date. As for all crops, one of the
NAP eligibility requirements is proof of marketability. To be marketed,
hemp must be processed. Therefore, proof of marketability of the hemp
crop is shown by the contract the producer has with a hemp processor.
Hemp is not eligible for NAP benefits if the crop has a THC level above
0.3 percent; therefore, producers must also submit copies of THC test
results taken at harvest, which are required under applicable State,
Tribal, and federal plans. Due to the risk of transmission of crop
diseases that do not have adequate treatment options for hemp, hemp is
not eligible for NAP if it is grown on acres on which Cannabis, canola,
dry beans, dry peas, mustard, rapeseed, soybeans in certain states
specified by FSA, or sunflowers were grown the preceding crop year.
Hemp is not eligible for NAP benefits if the producer's certification
or license is terminated or suspended during the crop year.
Growing History Requirement for Buy-Up Coverage
FSA is making an additional change to Sec. 1437.5 to limit buy-up
coverage to crops with at least one year of successful growing history.
The 2018 Farm Bill re-authorized buy-up NAP coverage and at the same
time increased the payment limitation for crops with buy-up coverage
levels from $125,000 to $300,000 per crop year. Therefore, and
consistent with how some crop insurance products are first made
available to producers of new crops, to safeguard against potential
program abuse and ensure that the higher level of coverage and
increased payment limitation is only made available to those who have
at least demonstrated an ability to produce the crop successfully
absent disaster, FSA is making this change. Such ability is reflected
in their previous successful production of the crop. Accordingly, the
producer must have successfully produced the crop in a prior crop year
in order to be eligible to purchase buy-up NAP coverage for that crop.
Production of a crop is ``successful'' if there is some documented
record that proves that the producer was able to produce at least 50
percent of the county expected yield of the crop in the county in a
prior crop year, unless the producer's crop suffered a loss due to an
eligible cause of loss in Sec. 1437.10.
Additional Changes
In addition to the changes required by the 2018 Farm Bill, this
rule makes several additional changes to improve program integrity and
clarify NAP requirements. FSA is making changes to specify that
lightning is an eligible cause of loss and wildfire is an eligible
related condition when it occurs with an eligible cause of loss listed
in Sec. 1437.10(b)(1) or (2). It also specifies that failure to
harvest and market a crop due to lack of a sufficient plan for
harvesting and marketing given the kind of crop, amount of crop, and
time that all production may be mature and ready for harvest, the
perishability of the crop, and the means or the resources to carry out
that plan is an ineligible cause of loss. These changes to eligible and
ineligible causes of loss are intended to clarify existing policy and
do not change how FSA administers NAP.
This rule clarifies in Sec. 1437.7 that the premium for buy-up
coverage for value loss crops will be based on the lesser of the
maximum dollar value for which a producer requests coverage, subject to
the applicable payment limitation, times the coverage level, times the
5.25 percent premium. This change corrects the regulation to conform to
the statute and current NAP policy. It removes duplicate provisions for
the premium calculation for value loss crops in Sec. 1437.301.
Throughout this rule, FSA is clarifying that the certain
requirements specific to hand-harvested crops that require notification
of damage or loss within 72 hours of the date damage or loss first
becomes apparent will as well as certain appraisal requirements will
also apply to rapidly deteriorating crops. Because hand-harvested crops
are typically also crops that deteriorate quickly in the field, this
change does not substantially alter the crops subject to these
requirements. This rule amends Sec. 1437.11 to require that for hand-
harvested or rapidly deteriorating crops, a producer must request an
appraisal and release of unharvested acreage within 72 hours after the
acreage is abandoned. This change is needed in order for FSA to obtain
an accurate appraisal of potential production before the crop begins to
deteriorate. This rule does not change the current provision for crops
that are not hand-harvested or rapidly deteriorating, which requires
the producer to request an appraisal within 15 calendar days. This rule
corrects Sec. 1437.11 to apply the requirement for filing a notice of
loss to producers of value loss crops, in addition to producers of
yield-based crops. This correction is needed to ensure that all
[[Page 12216]]
crop losses are timely reported and FSA has adequate time to ensure
that an appraisal is completed.
For clarity, this rule also adds a definition of ``abandoned'' in
Sec. 1437.3, which is consistent with how FSA has previously
interpreted this term.
This rule adds provisions to Sec. 1437.7 to specify when an
acreage report must be filed. These requirements reflect current NAP
policy. This rule adds provisions to Sec. 1437.8 to require producers
to provide acceptable evidence of their risk in the crop and ability
and intent to harvest, transport, and market their expected production
determined based on the approved yield of the crop, or their inventory
for value loss crops. Acceptable evidence includes documentation such
as receipts for seed and fertilizer and contracts for harvest labor or
transport of the crop. FSA is making this clarifying change to be
consistent with the intent of NAP, which is to provide assistance to
producers who have a legitimate risk in their crops based on what they
would have reasonably been expected to successfully produce and market.
This rule amends Sec. 1437.12 to specify that FSA will establish
the average market price for a crop by obtaining market prices for the
5 consecutive crop years beginning with the most recent year for which
price data is available. This change is consistent with current
implementation of NAP and is intended to provide flexibility when price
data for a crop is unavailable for the immediately preceding crop year.
Under Sec. 1437.16, when a producer has adopted a scheme or device
or made fraudulent misrepresentations or misrepresented facts to FSA,
that producer must refund a NAP payment with interest and other amounts
as determined appropriate to the circumstances by FSA. This rule amends
those provisions to specify that FSA may assess liquidated damages of
10 percent of an expected NAP payment in those situations.
FSA has become aware that there are locations for which there are
no independent assessors or assessments available from which collective
loss determinations can be made for the geographical area. Therefore,
to provide flexibility when two independent assessments of grazed
forage acreage conditions cannot be obtained, this rule clarifies in
Sec. 1437.401 that when there is no similar mechanically harvested
forage acreage on a farm or similar farms in the area and no
independent assessments, FSA may use alternative methods for
establishing the collective percentage of loss as, determined by the
Deputy Administrator. Additionally, FSA is amending Sec. 1437.401 to
specify that if a NAP-covered producer seeks a NAP payment for forage
crop acreage intended for grazing determined based on the collective
percentage of loss, the producer is only required to file an
application for payment. A notice of loss will not be required unless
the NAP-covered producer wants a NAP payment determined based on the
NAP-covered producer's unit production similar to any other NAP-covered
crop.
This rule removes provisions in Sec. 1437.503 that made prevented
planting coverage available in Hawaii, Puerto Rico, and other tropical
areas approved by the Deputy Administrator for Farm Programs. Common
program provisions in Sec. 718.103(a) provide that in order to be
eligible for coverage for prevented planting, an eligible cause of loss
must have occurred before the final planting date for the crop or, in
the case of multiple plantings, the harvest date of the first planting
in the applicable planting period. Multiple planting periods and final
planting dates are not applicable to covered tropical crops; therefore,
tropical crops cannot be eligible for prevented planting coverage. This
rule also amends Sec. 1437.502 to refer to the maximum service fee per
crop per administrative county provided in Sec. 1437.7.
This rule also specifies that the regulation is applicable to the
2019 and subsequent crop years, and makes minor technical corrections
to Sec. 1437.5.
Streamlining Reporting and Premium Prices
The 2018 Farm Bill directed FSA to establish a streamlined process
for the submission of records and acreage reports for diverse
production systems, such as those typical of urban production systems,
other small-scale production systems, and direct-to-consumer production
systems. FSA is currently reviewing its existing policies to determine
how the process can be simplified while continuing to meet all other
statutory requirements. Any changes made will be announced in separate
rulemaking.
The 2018 Farm Bill also amended the payment provisions for crops
with buy-up coverage levels to specify that payments will be based on
``the average market price, contract price, or other premium price
(such as a local, organic, or direct market price, as elected by the
producer).'' The average market price has been typically established on
a state-by-state basis, meaning that all NAP payments for a crop and,
if applicable, for an intended use within a state would be based on the
same average market price. Average market prices are based on the best
available data (including National Agricultural Statistics Service
(NASS) data, National Institute of Food and Agriculture (NIFA) data,
knowledge of local markets, etc.) and are comparable (though not
required to be equal) to established Federal Crop Insurance Corporation
(FCIC) prices.
Beginning with the 2015 crop year, FSA had the ability to establish
separate average market prices within a State that more closely
reflected the prices obtained by producers based on specific
situations, such as the use of different farming practices
(conventional or organic) and sales to different markets (such as
direct sales to consumers at farm stands or farmer's markets). An
organic price option is currently available for crops regardless of
whether they have basic 50/55 NAP coverage or buy-up NAP coverage, and
a direct market option is currently available for crops with buy-up
coverage. FSA currently offers a contract marketing percentage option
for producers with buy-up coverage, which results in a payment based on
an established average market price for fresh and processed intended
uses. This is based on a producer's contracted uses of the crop for
that crop year, but does not use a producer's individual contract price
to calculate a NAP payment.
Effective Date, Notice and Comment, and Paperwork Reduction Act
As specified in 7 U.S.C. 9091, the regulations to implement the
provisions of Title I and the administration of Title I of the 2018
Farm Bill are:
Exempt from the notice and comment provisions of 5 U.S.C.
553,
Exempt from the Paperwork Reduction Act (44 U.S.C. chapter
35), and
To use the authority in 5 U.S.C. 808 related to
Congressional review and any potential delay in the effective date.
The APA provides that the 30-day delay in the effective date and
notice and comment provisions do not apply when the rule involves
specified actions, including matters relating to benefits. This rule
governs NAP payments and therefore falls within that exemption.
The authority provided in 5 U.S.C. 808 provides that when an agency
finds for good cause that notice and public procedure are
impracticable, unnecessary, or contrary to the public interest, that
the rule may take effect at such time as the agency determines. Due to
the nature of the rule, the mandatory requirements of the 2018 Farm
Bill, and the need to implement the regulations
[[Page 12217]]
expeditiously to provide assistance to producers, FSA and CCC find that
notice and public procedure are contrary to the public interest.
The Office of Management and Budget (OMB) designated this rule as
not major under the Congressional Review Act, as defined by 5 U.S.C.
804(2). Therefore, FSA is not required to delay the effective date for
60 days from the date of publication to allow for Congressional review.
Accordingly, this rule is effective upon publication in the Federal
Register.
Executive Orders 12866, 13563, 13771 and 13777
Executive Order 12866, ``Regulatory Planning and Review,'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review,''
direct agencies to assess all costs and benefits of available
regulatory alternatives and, if regulation is necessary, to select
regulatory approaches that maximize net benefits (including potential
economic, environmental, public health and safety effects, distributive
impacts, and equity). Executive Order 13563 emphasized the importance
of quantifying both costs and benefits, of reducing costs, of
harmonizing rules, and of promoting flexibility. The requirements in
Executive Orders 12866 and 13573 for the analysis of costs and benefits
to loans apply to rules that are determined to be significant.
Executive Order 13777, ``Enforcing the Regulatory Reform Agenda,''
established a federal policy to alleviate unnecessary regulatory
burdens on the American people.
The Office of Management and Budget (OMB) designated this rule as
not significant under Executive Order 12866, ``Regulatory Planning and
Review,'' and therefore, OMB has not reviewed this rule and an analysis
of costs and benefits to loans is not required under either Executives
Orders 12866 or 13563.
Executive Order 13771, ``Reducing Regulation and Controlling
Regulatory Costs,'' requires that in order to manage the private costs
required to comply with Federal regulations that for every new
significant or economically significant regulation issued, the new
costs must be offset by the elimination of at least two prior
regulations. As this rule is designated not significant, it is not
subject to Executive Order 13771. In general response to the
requirements of Executive Order 13777, USDA created a Regulatory Reform
Task Forces, and USDA agencies were directed to remove barriers, reduce
burdens, and provide better customer service both as part of the
regulatory reform of existing regulations and as an on-going approach.
FSA reviewed this regulations and made changes to improve any provision
that was determined to be outdated, unnecessary, or ineffective.
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 analysis
of any rule whenever an agency is required by APA or any other law to
publish a proposed rule, unless the agency certifies that the rule will
not have a significant economic impact on a substantial number of small
entities. This rule is not subject to the Regulatory Flexibility Act
because as noted above, this rule is exempt from notice and comment
rulemaking requirements of the APA and no other law requires that a
proposed rule be published for this rulemaking initiative.
Environmental Review
In general, the environmental impacts of rules are to be considered
in a manner consistent with the provisions of the National
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations
of the Council on Environmental Quality (40 CFR parts 1500-1508), and
FSA regulations for compliance with NEPA (7 CFR part 799). Some of the
changes being made in the rule were self-enacting and have already been
implemented administratively. FSA has determined that participation in
programs similar to those found in 7 CFR 1437 will not significantly
affect the quality of the human environment (7 CFR part 799.9(d)). In
addition, most of these changes are mandatory with limited or no
discretionary decisions regarding implementation. Therefore, they are
not subject to review under NEPA.
Additional changes will not have a significant impact on the
quality of the human environment either individually or cumulatively.
The environmental responsibilities for each prospective farmers will
not change from the current process followed for all farm program
actions. Therefore, FSA will not prepare an environmental assessment or
environmental impact statement on this rule.
The changes proposed include clarifications regarding eligible
losses and causes of loss (types of natural disasters). FSA has
likewise determined that these efforts do not constitute major Federal
actions that would significantly affect the quality of the human
environment, individually or cumulatively, because of their context and
the anticipated intensity of impacts.
Executive Order 12372
Executive Order 12372, ``Intergovernmental Review of Federal
Programs,'' requires consultation with State and local officials that
would be directly affected by proposed Federal financial assistance.
The objectives of the Executive Order are to foster an
intergovernmental partnership and a strengthened Federalism, by relying
on State and local processes for State and local government
coordination and review of proposed Federal financial assistance and
direct Federal development. For reasons specified in the final rule
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June
24, 1983), the programs and activities in this rule are excluded from
the scope of Executive Order 12372.
Executive Order 12988
This rule has been reviewed under Executive Order 12988, ``Civil
Justice Reform.'' This rule will not preempt State or local laws,
regulations, or policies unless they represent an irreconcilable
conflict with this rule. This rule does not have retroactive effect.
Before any judicial actions may be brought regarding the provisions of
this rule, the administrative appeal provisions of 7 CFR parts 11 and
780 are to 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, except as
required by law. Nor does this rule impose substantial direct
compliance costs on State and local governments. Therefore,
consultation with the States is not required.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments.'' Executive Order 13175 requires Federal agencies
to consult and coordinate with tribes on a government-to-government
basis on policies that have Tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have
[[Page 12218]]
substantial direct effects on one or more Indian Tribes, on the
relationship between the Federal Government and Indian Tribes or on the
distribution of power and responsibilities between the Federal
Government and Indian Tribes.
FSA has assessed the impact of this rule on Indian Tribes and
determined that this rule has Tribal implications that require Tribal
consultation under Executive Order 13175. Tribal consultation for this
rule was included in the 2018 Farm Bill consultation held on May 1,
2019, at the National Museum of American Indian, in Washington DC. USDA
Under Secretary for the Farm Production and Conservation mission area,
as part of Title I session. There were no specific comments from Tribes
on this rule during Tribal consultation. If a Tribe requests additional
consultation, FSA 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
law.
Unfunded Mandates
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 of State, local, and Tribal governments or the
private sector. Agencies generally must prepare a written statement,
including cost benefits analysis, for proposed and final rules with
Federal mandates that may result in expenditures of $100 million or
more in any 1 year for State, local or Tribal governments, in the
aggregate, or to the private sector. UMRA generally requires agencies
to consider alternatives and adopt the more cost effective or least
burdensome alternative that achieves the objectives of the rule. This
rule contains no Federal mandates, as defined in Title II of UMRA, for
State, local and Tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
UMRA.
Federal Assistance Programs
The title and number of the Federal Assistance Program found in the
Catalog of Federal Domestic Assistance, to which this rule applies, is:
10.451--Noninsured Assistance.
E-Government Act Compliance
FSA is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
List of Subjects in 7 CFR part 1437
Acreage allotments, Agricultural commodities, Crop insurance,
Disaster assistance, Fraud, Penalties, Reporting and recordkeeping
requirements.
For the reasons as stated in the preamble, CCC amends 7 CFR part
1437 as follows:
PART 1437--NONINSURED CROP DISASTER ASSISTANCE PROGRAM
0
1. The authority citation for part 1437 continues to read as follows:
Authority: 7 U.S.C. 1501-1508 and 7333; 15 U.S.C. 714-714m; 19
U.S.C. 2497, and 48 U.S.C. 1469a.
Subpart A--General Provisions
0
2. Amend Sec. 1437.1 as follows:
0
a. Revise paragraph (b); and
0
b. In paragraph (c), remove ``2015'' and add ``2019'' in its place.
The revision reads as follows:
Sec. 1437.1 Applicability.
* * * * *
(b) The provisions in this part are applicable to eligible
producers and eligible crops for which catastrophic risk protection is
not available under subsection (b) of section 508 of the Federal Crop
Insurance Act (7 U.S.C. 1508) and additional coverage under subsections
(c) and (h) of section 508 or, if coverage is available, it is only
available under a policy that provides coverage for specific intervals
based on weather indexes or under a whole farm plan of insurance.
* * * * *
0
3. Amend Sec. 1437.3 as follows:
0
a. Add the definitions of ``Abandoned'', ``Hemp'', ``Hemp processor'',
``Hemp processor contract'', and ``THC'' in alphabetical order; and
0
b. In the definition of ``Native sod'', remove the words ``for the
production of an annual crop through February 7, 2014''.
The additions read as follows:
Sec. 1437.3 Definitions.
* * * * *
Abandoned means to have discontinued care for a crop or provided
care so insignificant as to provide no benefit to the crop, or failed
to harvest in a timely manner.
* * * * *
Hemp means the plant Cannabis sativa L. and any part of that plant,
including the seeds thereof and all derivatives, extracts,
cannabinoids, isomers, acids, salts, and salts of isomers, whether
growing or not, with a THC concentration of not more than 0.3 percent
on a dry weight basis.
Hemp processor means any business enterprise regularly engaged in
processing hemp that possesses all licenses and permits for processing
hemp required by the applicable state or Federal governing authority,
and that possesses facilities, or has contractual access to such
facilities with enough equipment to accept and process contracted hemp
within a reasonable amount of time after harvest.
Hemp processor contract means a legal written agreement executed
between the producer and hemp processor engaged in the production and
processing of hemp containing at a minimum:
(1) The producer's promise to plant and grow hemp and to deliver
all hemp to the hemp processor;
(2) The hemp processor's promise to purchase the hemp produced by
the producer; and
(3) A base contract price, or method to derive a value that will be
paid to the producer for the production as specified in the processor's
contract.
(4) For a producer who is also a hemp processor, a corporate
resolution by the Board of Directors or officers of the hemp processor
will be considered a hemp processor contract if it contains the
required terms listed in this definition.
* * * * *
THC means delta-9 tetrahydrocannabinol.
* * * * *
0
4. Amend Sec. 1437.4 as follows:
0
a. Revise paragraph (a)(4)(i);
0
b. Remove paragraph (a)(4)(ii);
0
c. Redesignate paragraphs (a)(4)(iii) and (a)(4)(iv) as (a)(4)(ii) and
(a)(4)(iii), respectively;
0
d. Revise paragraph (c);
0
e. Redesignate paragraphs (d) and (e) as (e) and (f), respectively;
0
f. Add new paragraph (d); and
0
g. In newly redesignated paragraph (e), remove ``paragraph (c)'' and
add ``paragraph (d)'' in its place.
The revisions and addition read as follows.
Sec. 1437.4 Eligibility.
(a) * * *
(4) * * *
(i) Catastrophic risk protection and additional coverage under the
Federal Crop Insurance Act (7 U.S.C. 1508(b), (c), and (h)) are not
available or, if coverage is available, it is only available under a
policy that provides coverage for specific intervals based on weather
indexes or under a whole farm plan of insurance; or
* * * * *
(c) Except as specified in paragraph (e) of this section, paragraph
(d) of this
[[Page 12219]]
section will apply to native sod acreage in Iowa, Minnesota, Montana,
Nebraska, North Dakota, and South Dakota that has been tilled:
(1) During the first 4 crop years of planting for native sod
acreage that has been tilled for the production of an annual crop
during the period beginning on February 8, 2014, and ending on December
20, 2018; and
(2) For not more than any 4 crop years for native sod acreage that
has been tilled for the production of any crop after December 20, 2018:
(i) During the first 10 crop years after the initial tillage; and
(ii) For which a NAP applicant must submit a service fee or NAP
premium for a crop on that acreage.
(d) For acreage specified in paragraph (c) of this section:
(1) The approved yield will be determined by using a yield equal to
65 percent of the producer's T-yield for the annually planted crop; and
(2) The service fee or premium for the annual covered crop planted
on native sod will be equal to 200 percent of the amount determined in
Sec. 1437.7, as applicable, but the premium will not exceed the
maximum amount specified in Sec. 1437.7(d)(2).
* * * * *
0
5. Amend Sec. 1437.5 as follows:
0
a. In paragraph (d) introductory text, remove the words ``For 2015
through 2018 crop years, producers'' and add the words ``Subject to
paragraph (e) of this section, producers'' in their place; and
0
b. In paragraph (d)(1), remove the word ``your'' and add the word
``the'' in its place;
0
c. Redesignate paragraphs (e) and (f) as paragraphs (f) and (g),
respectively;
0
d. Add new paragraph (e).
The addition reads as follows:
Sec. 1437.5 Coverage levels.
* * * * *
(e) A producer cannot obtain buy-up coverage for a crop if the
producer has not successfully produced the crop in a previous year for
which documentation exists and that documentation shows that the crop
can be successfully grown by the producer in the county. Production of
the crop is considered to be successful if the producer produced at
least 50 percent of the county expected yield for the same county for
which buy-up coverage is sought, unless the producer suffered a loss on
the crop due to an eligible cause of loss in Sec. 1437.10. If not
already provided to FSA for any reason including NAP coverage or
assistance, the producer must submit documentation showing successful
growing of the crop in a previous year and, in the event a loss due to
an eligible cause of loss was sustained, submit documentation of that
loss satisfying the requirements of Sec. 1437.11.
* * * * *
0
6. Amend Sec. 1437.6 as follows:
0
a. In paragraph (a) introductory text, remove the phrase ``30 days''
and add the phrase ``1 calendar day'' in its place;
0
b. In paragraph (a)(2), remove the phrase ``30 days'' and add the
phrase ``30 calendar days'' in its place;
0
c. In paragraphs (b)(1)(i), (c), and (d), remove the phrase ``30
calendar days'' each time it appears and add the phrase ``1 calendar
day'' in its place;
0
d. Revise paragraph (e);
0
e. In paragraph (f), remove the phrase ``30 calendar days'' and add the
phrase ``1 calendar day'' in its place both times it appears;
0
f. In paragraph (g), remove the phrase ``30 calendar days'' and add the
phrase ``1 calendar day'' in its place, and remove the phrase ``30
days'' and add the phrase ``1 calendar day'' in its place; and
0
g. Revise paragraph (h).
The revisions read as follows:
Sec. 1437.6 Coverage period.
* * * * *
(e) Honey. Except as provided in paragraph (h) of this section, the
coverage period for honey begins the later of 1 calendar day after the
date of the application for coverage is filed; 1 calendar day after the
application closing date; or the date the colonies are set in place for
honey production. The coverage ends the last day of the crop year.
* * * * *
(h) 2019 and 2020 crop years. For the 2019 and 2020 crop years
only, if a crop's application closing date is before April 8, 2019, the
coverage period of the crop will be as specified in paragraphs (a)
through (g) of this section except that the date coverage begins will
be retroactive as long as the application for coverage is filed by the
application closing date as specified in Sec. 1437.7(i). This limited
retroactive coverage for the 2019 and 2020 crop years only will begin 1
calendar day after the established application closing date, which
would be the same as if they had filed by the deadlines as specified in
paragraphs (a) through (g) of this section.
0
7. Amend Sec. 1437.7 as follows:
0
a. Revise the section heading and paragraphs (b) and (e);
0
b. In paragraph (g), remove the words ``and socially'' and add the
word ``socially'' in their place, and remove the words ``ranchers
will'' and add the words ``ranchers, and veteran farmers and ranchers
will'' in their place;
0
c. Revise paragraph (i); and
0
d. Add paragraphs (j), (k), and (l).
The revisions and additions read as follows:
Sec. 1437.7 Application for coverage, service fee, premium,
transfers of coverage, and acreage report.
* * * * *
(b) The service fee or request for service fee waiver specified in
paragraph (g) of this section must accompany the application for
coverage in order for it to be considered filed. The service fee is:
(1) For applications filed by April 7, 2019, $250 per crop per
administrative county, up to $750 per producer per administrative
county, not to exceed $1,875 per producer; and
(2) For applications filed on or after April 8, 2019, $325 per crop
per administrative county, up to $825 per producer per administrative
county, not to exceed $1,950 per producer.
* * * * *
(e) For value loss crops, premiums will be equal to the lesser of:
(1) The product obtained by multiplying:
(i) A 5.25-percent premium fee; and
(ii) The applicable payment limit; or
(2) The sum of the premiums for each eligible crop, with the
premium for each eligible crop obtained by multiplying:
(i) The maximum dollar value for which coverage is sought by the
applicant;
(ii) The coverage level elected by the producer; and
(iii) A 5.25-percent premium fee.
* * * * *
(i) For the 2019 and 2020 crop years, if a crop's application
closing date is before April 8, 2019, FSA will accept applications for
coverage without regard to whether or not the application for coverage
was filed by the crop's application closing date, provided that the
application for coverage includes buy-up coverage according to Sec.
1437.5(d) and is filed by May 24, 2019. Except as specifically stated
in this rule, the provisions of this paragraph do not apply to crops
having an application closing date established on or after April 8,
2019, or to applications for coverage that do not include buy-up
coverage as an option selected by the applicant. The coverage period
for applications for coverage filed according to this paragraph will be
as specified in Sec. 1437.6.
(j) An accurate acreage report must be filed for each crop included
on an application for coverage by the earliest of:
[[Page 12220]]
(1) The acreage reporting date for the crop announced by FSA;
(2) 15 calendar days before the onset of harvest or grazing of the
crop acreage being reported; or
(3) The established normal harvest date for the end of the coverage
period.
(k) Applications for coverage for hemp are governed by this part.
(l) Applications for coverage that were filed with FSA for all
crops other than hemp that were covered under the regulations in effect
at the time of filing and which meet all the other requirements of this
section will be recognized by FSA.
0
8. Amend Sec. 1437.8 as follows:
0
a. In paragraph (a) introductory text, remove the words ``records of
crop acreage'' and add the words ``accurate records of crop acreage''
in their place and revise the last sentence.
0
b. In paragraph (b)(1), remove the words ``crops must'' and add the
words ``or rapidly deteriorating crops, as determined by the Deputy
Administrator, must'' in their place, and remove the words ``hand-
harvested crop acreage'' and add the words ``acreage of hand-harvested
or rapidly deteriorating crops'' in their place;
0
c. In paragraph (c)(1), remove the word ``and'';
0
d. In paragraph (c)(2), remove the period at the end of the paragraph
and add a semicolon in its place; and
0
e. Add paragraphs (c)(3) and (c)(4).
The revision and additions read as follows:
Sec. 1437.8 Records.
(a)* * * A certification of an amount of production itself is not a
record of production. Certifications must be accompanied by a record of
production; records of production'' in their place;
* * * * *
(c) * * *
(3) The producer's risk in the crop; and
(4) The producer's ability and intent to harvest, transport, and
market the crop's expected production determined by using the approved
yield or inventory of the crop or commodity.
* * * * *
0
9. Amend Sec. 1437.10 as follows:
0
a. Redesignate paragraphs (b)(1)(viii) and (b)(1)(ix) as paragraphs
(b)(1)(ix) and (b)(1)(x), respectively;
0
b. Add new paragraph (b)(1)(viii);
0
c. In newly redesignated paragraph (b)(1)(ix), remove the cross
reference ``(viii)'' and add the reference ``(ix)'' in its place;
0
d. In paragraph (b)(3)(iv), remove the word ``or'';
0
e. Redesignate paragraph (b)(3)(v) as paragraph (b)(3)(vi);
0
f. Add new paragraph (b)(3)(v);
0
g. In paragraph (d)(15), remove the words ``practices; or'' and add the
word ``practices;'' in their place;
0
h. In paragraph (d)(16), remove the ``.'' and add ``; or'' in its
place; and
0
i. Add paragraph (d)(17).
The additions read as follows:
Sec. 1437.10 Causes of loss.
* * * * *
(b) * * *
(1) * * *
(viii) Lightning;
* * * * *
(3) * * *
(v) Wildfire; or
* * * * *
(d) * * *
(17) Failure to harvest or market the crop due to lack of a
sufficient plan or resources.
* * * * *
0
10. Amend Sec. 1437.11 as follows:
0
a. In paragraph (a) and paragraph (b) introductory text, remove the
word ``hand-harvested'' and add the words ``hand-harvested or rapidly
deteriorating'' both times they appear;
0
b. In paragraph (b)(2), remove the word ``claims'' add the words
``claims and value loss claims'' in its place; and
0
c. Revise paragraph (d)(2)(ii).
The revision reads as follows:
Sec. 1437.11 Notice of loss, appraisal requirements, and application
for payment.
* * * * *
(d) * * *
(2) * * *
(ii) Within 72 hours after the acreage is abandoned for hand-
harvested or rapidly deteriorating crops, or within 15 calendar days
after the acreage is abandoned for all other crops;
* * * * *
Sec. 1437.12 [Amended]
0
11. Amend Sec. 1437.12 as follows:
0
a. In paragraph (b)(1), remove the words ``immediately preceding the
crop year of coverage, if available'' and add the words ``beginning
with the most recent year for which price data is available'' in their
place; and
0
b. In paragraph (b)(4), remove the words ``immediately preceding the
previous crop year'' and add the words ``beginning with the most recent
year for which price data is available'' in their place.
0
12. In Sec. 1437.16, amend paragraph (d) by adding two sentences to
the end of the paragraph to read as follows:
Sec. 1437.16 Miscellaneous provisions.
* * * * *
(d) * * *
FSA may assess liquidated damages of 10 percent of the projected or
received NAP payment for the crop or commodity in violation. Liquidated
damages are in addition to any refund of program benefits and are not
considered a penalty.
* * * * *
Subpart B--Determining Yield Coverage Using Actual Production
History
0
13. Add Sec. 1437.108 to read as follows.
Sec. 1437.108 Hemp.
(a) Hemp is eligible for NAP coverage only if the hemp is:
(1) Grown under an official certification or license issued by the
applicable governing authority that permits the production of the hemp;
(2) Grown under a hemp processor contract executed by the
applicable acreage reporting date; and
(3) Planted for harvest as hemp in accordance with the requirements
of the hemp processor contract and the production management practices
of the hemp processor.
(b) In addition to all other requirements under this part, a
producer who obtains NAP coverage for hemp must submit by the acreage
reporting date:
(1) The certification or license number;
(2) A copy of the certification form or official license issued by
the applicable governing authority authorizing the producer to produce
hemp; and
(3) A copy of each fully executed hemp processor contract.
(c) A producer must submit THC test results taken at harvest of the
hemp crop. If the producer does not submit the THC test results, that
production will not be included in the producer's actual yield for the
purpose of determining a producer's APH under Sec. 1437.101.
(d) Hemp is not eligible for NAP coverage if it is planted on acres
on which Cannabis, canola, dry beans, dry peas, mustard, rapeseed,
soybeans in states as determined by the Deputy Administrator, or
sunflowers were grown the preceding crop year.
(e) Hemp that has a THC level above 0.3 percent:
(1) Is not eligible for NAP benefits; and
(2) Is not included in the producer's actual yield for the purpose
of determining a producer's APH under Sec. 1437.101.
(f) Hemp will be ineligible for NAP payment for that NAP crop year
if the producer's certification or license is
[[Page 12221]]
terminated or suspended during that NAP crop year.
Subpart D--Determining Coverage Using Value
Sec. 1437.301 [Amended]
0
14. In Sec. 1437.301, remove paragraph (d).
Subpart E--Determining Coverage of Forage Intended for Animal
Consumption
0
15. Amend Sec. 1437.401 as follows:
0
a. In paragraph (f)(2), remove the word ``conditions'' and add the
words ``conditions, or by alternative methods as determined by the
Deputy Administrator'' in its place; and
0
b. Add paragraph (g).
The addition reads as follows:
Sec. 1437.401 Forage.
* * * * *
(g) For those NAP covered participants who seek to have a NAP
payment determined based on paragraph (f)(2) of this section, a notice
of loss under Sec. 1437.11 will not be required; only an application
for payment must be filed. Unless otherwise expressed by the NAP
covered participant, FSA will presume the participant to want
assistance for grazed forage determined according to paragraph (f)(2)
of this section.
Subpart F--Determining Coverage in the Tropical Region
Sec. 1437.502 [Amended]
0
16. Amend Sec. 1437.502 as follows:
0
a. In paragraph (b), remove ``December 1'' and add ``December 31'' in
its place.
0
b. In paragraph (c), remove the words ``per county per crop year, a
maximum service fee of $250'' and add the words ``the maximum service
fee per crop per county provided at Sec. 1437.7'' in their place.
Sec. 1437.503 [Amended]
0
17. In Sec. 1437.503(a), remove the words ``crops, other than in
Hawaii, Puerto Rico, and other areas approved by the Deputy
Administrator, except as approved by the Deputy Administrator in
special cases'' and add the word ``crops'' in their place.
Richard Fordyce,
Administrator, Farm Service Agency.
Robert Stephenson,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2020-04103 Filed 2-28-20; 8:45 am]
BILLING CODE 3410-05-P