Area Risk Protection Insurance Regulations; Common Crop Insurance Policy Basic Provisions; Common Crop Insurance Regulations, Sunflower Seed Crop Insurance Provisions; and Common Crop Insurance Regulations, Dry Pea Crop Insurance Provisions, 76420-76428 [2020-26036]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 85, Number 230 (Monday, November 30, 2020)]
[Rules and Regulations]
[Pages 76420-76428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26036]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 407 and 457

RIN 0563-AC70
[Docket ID FCIC-20-0008]


Area Risk Protection Insurance Regulations; Common Crop Insurance 
Policy Basic Provisions; Common Crop Insurance Regulations, Sunflower 
Seed Crop Insurance Provisions; and Common Crop Insurance Regulations, 
Dry Pea Crop Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule with request for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the Area 
Risk Protection Insurance (ARPI) Regulations; Common Crop Insurance 
Policy (CCIP), Basic Provisions; Common Crop Insurance Regulations, 
Sunflower Seed Crop Insurance

[[Page 76421]]

Provisions (Sunflower Seed Crop Provisions); and Common Crop Insurance 
Regulations, Dry Pea Crop Insurance Provisions (Dry Pea Crop 
Provisions). The intended effect of this action is to improve prevented 
planting provisions, revise beginning farmer or rancher and veteran 
farmer or rancher provisions and clarify arbitration provisions. In 
addition to these changes, FCIC is making clarifications to the Dry Pea 
Crop Provisions and revising the cancellation and termination dates in 
the Sunflower Seed Crop Provisions. The changes to the policy made in 
this rule are applicable for the 2021 and succeeding crop years for 
crops with a contract change date on or after November 30, 2020. For 
all other crops, the changes to the policy made in this rule are 
applicable for the 2022 and succeeding crop years.

DATES: 
    Effective Date: This final rule is effective November 30, 2020.
    Comment Date: We will consider comments that we receive by the 
close of business January 29, 2021. FCIC may consider the comments 
received and may conduct additional rulemaking based on the comments.

ADDRESSES: We invite you to submit comments on this rule. You may 
submit comments by either of the following methods, although FCIC 
prefers that you submit comments electronically through the Federal 
eRulemaking Portal:
     Federal eRulemaking Portal: Go to https://www.regulations.gov/docket?D=FCIC-20-0008 and follow the instructions 
for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency, US Department of Agriculture, P.O. 
Box 419205, Kansas City, MO 64133-6205. In your comment, specify docket 
ID FCIC-20-0008.
    Comments will be available for viewing online at 
www.regulations.gov. Comments received will be posted without change, 
including any personal information provided. In addition, comments will 
be available for public inspection at the above address during business 
hours from 8 a.m. to 5 p.m., Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    FCIC serves America's agricultural producers through effective, 
market-based risk management tools to strengthen the economic stability 
of agricultural producers and rural communities. The Risk Management 
Agency (RMA) administers the FCIC regulations. FCIC is committed to 
increasing the availability and effectiveness of Federal crop insurance 
as a risk management tool. Approved Insurance Providers (AIPs) sell and 
service Federal crop insurance policies in every state and in Puerto 
Rico through a public-private partnership. FCIC reinsures the AIPs who 
share the risk associated with catastrophic losses due to major weather 
events. FCIC's vision is to secure the future of agriculture by 
providing world class risk management tools to rural America.
    Federal crop insurance policies typically consist of the Basic 
Provisions, the Crop Provisions, the Special Provisions, the Commodity 
Exchange Price Provisions, if applicable, other applicable endorsements 
or options, the actuarial documents for the insured agricultural 
commodity, the Catastrophic Risk Protection Endorsement, if applicable, 
and the applicable regulations published in 7 CFR chapter IV.
    FCIC amends the ARPI Basic Provisions, the CCIP Basic Provisions, 
the Sunflower Seed Crop Provisions, and the Dry Pea Crop Provisions. 
The changes to the policy made in this rule are applicable for the 2021 
and succeeding crop years for crops with a contract change date on or 
after November 30, 2020. For all other crops the changes to the policy 
made in this rule are applicable for the 2022 and succeeding crop 
years.

ARPI Basic Provisions

    The changes to the ARPI Basic Provisions (7 CFR part 407) are:
    FCIC is revising sections 23(d)(1), (2), and (5)(i) of the ARPI 
Basic Provisions to clarify the responsibility is on the producer to 
start dispute resolution through arbitration when the producer 
disagrees with an AIP determination. There has been confusion that this 
provision could require both the producer and the AIP to start 
arbitration prior to litigation.
    FCIC is also making non-substantive changes to the regulation. 
Examples include making references consistent, making grammatical 
corrections, and clarifying word changes. These revisions are editorial 
in nature and are intended to provide clarity to the regulation.

CCIP Basic Provisions

    The changes to the CCIP Basic Provisions (7 CFR part 457.8) are:
    FCIC is revising section 3(l) to allow a producer that qualifies as 
a beginning farmer or rancher (BFR), or veteran farmer or rancher 
(VFR), to receive a yield based on the actual production history (APH) 
of the previous producer of the crop or livestock on the acreage, if 
the BFR or VFR was previously involved in the decision-making or 
physical activities of the crop or livestock on any farm. Previously, 
the provisions specified that the APH history of the acreage could only 
be used if the BFR or VFR was previously involved on the specific 
acreage acquired.
    Prevented planting is a feature of many crop insurance plans that 
provides a partial payment to cover certain pre-plant costs for a crop 
that was prevented from being planted due to an insurable cause of 
loss. After unprecedented prevented planting in 2019, FCIC examined how 
to improve the prevented planting coverage within a policy. FCIC held 
discussions with stakeholders via a Prevented Planting Taskforce that 
included FCIC and industry representatives. The taskforce reviewed the 
previous policy, discussed impacts, and explored policy improvements. 
The goal of the taskforce was to improve coverage for producers when 
needed most, but not replace market incentives with government 
incentives, while maintaining program integrity. The taskforce 
identified several issues that are extremely uncommon but could occur 
in years when prevented planting is catastrophic and widespread. The 
following lists the changes in section 17 of the CCIP Basic Provisions:
    FCIC is revising section 17(e)(1)(i) to add a reference to the new 
provisions in section 17(e)(1)(ii)(E).
    FCIC is revising section 17(e)(1)(ii) to allow the use of an 
intended acreage report for the first 2 consecutive crop years the 
producer farms in a new county, instead of only the first year.
    The CCIP Basic Provisions define ``intended acreage report'' as a 
report of the acreage a producer intends to plant, by crop, for the 
current crop year and used solely for the purpose of establishing 
eligible prevented planting acreage, as required in section 17. 
Further, section 17 states that if the insured did not plant any crop 
in the county for which prevented planting coverage was available in 
the 4 most recent crop years, the producer must complete and submit an 
intended acreage report to the AIP by the sales closing date, or within 
10 days of land acquisition after the sales closing date, to establish 
the potential maximum number of eligible prevented planting acres.

[[Page 76422]]

    Based on the previous provision, when a producer adds new land in a 
new county, the producer could only indicate intended acres for the 
first year. An issue arises in the second year if the producer, 
following good farming practices for crop rotation, intends to plant a 
different crop. Because the producer only has 1 year of history in the 
county, the producer is limited in the amount of acreage (and type of 
crop) that can be claimed for prevented planting purposes.
    For example, a producer adds land in a new county. The first year, 
the producer files an intended acreage report for wheat and plants the 
entire acreage to wheat. The second year, the producer intends to plant 
corn, but is prevented from planting due to an insurable cause of loss. 
Under the previous regulations, the producer would not have any 
eligible prevented planting acreage for corn because they only have 
eligible wheat acres based on their first year's history in their APH 
database. The producer would receive a prevented planting payment based 
on the eligible wheat acres. This would result in a different prevented 
planting payment than the intended corn crop, which may not be 
reflective of their pre-plant costs.
    As specified above, FCIC will revise section 17(e)(1)(ii) to allow 
the producer to submit an intended acreage report for the first 2 
consecutive crop years the producer farms in a new county. In the above 
scenario, this will allow the producer to receive a prevented planting 
payment based on the acres contained on the intended acreage report for 
the second year and the payment will be based on corn. This change 
acknowledges rotational practices are a good farming practice. It will 
also result in more accurate prevented planting payments because they 
will be based on the producer's actual intended plantings for that 
year.
    FCIC is revising section 17(e)(2) to provide that if following a 
failed first insured crop, an uninsured second crop is planted on the 
same acres within the same crop year, the planted acres of the 
uninsured crop will not be subtracted from the eligible prevented 
planting acreage.
    Section 17(e)(2) of the CCIP Basic Provisions previously stated, 
``Any eligible acreage determined in accordance with section 17(e)(1) 
will be reduced by subtracting the number of acres of the crop (insured 
and uninsured) that are timely and late planted, including acreage 
specified in section 16(b).'' If following a failed first insured crop, 
the producer plants an uninsured second crop on the same acres within 
the same crop year; acres from both plantings (first insured crop and 
second uninsured crop) are subtracted from the eligible prevented 
planting acreage, even though it is the same physical land subtracted 
twice. On occasion, this can lead to the producer having acres that do 
not receive a prevented planting payment due to inadequate eligible 
prevented planting acres. This occurrence is extremely rare, but it 
affected a small number of producers in the 2019 crop year. To 
illustrate the rarity of these circumstances, for the reduction to 
apply under the previous regulation, all of the following must have 
been true for the producer:
    (1) Planted a first crop that fails,
    (2) Planted a second crop on the same acreage following the failed 
crop, and
    (3) Exhausted eligible prevented planting acres available to pay a 
claim.
    The underlying concern is that the same physical acres are 
subtracted twice from overall prevented planting eligible acres. To 
illustrate the inequity of the double subtraction, the following is a 
simple example of the previous provisions. A producer has 100 total 
acres of cropland (fields A & B) and intends to plant all 100 acres to 
corn. Based on production history, the producer also has 100 prevented 
planting eligible acres (50 for corn and 50 for soybeans). The producer 
plants 50 acres of corn in field A, resulting in 50 corn acres 
subtracted from eligible prevented planting acres. At this point, there 
are 50 soybean eligible prevented planting acres and zero corn eligible 
prevented planting acres. A flood destroys the 50 acres of corn in 
field A, the AIP determines it is not practical to replant, and the 
producer does not have to replant to retain insurance. The producer 
files a claim for indemnity for the crop loss and receives an indemnity 
for the field A 50 destroyed corn acres. Later, the producer plants the 
50 acres in field A to soybeans that are not insured. The second 
planting of field A (uninsured soybeans) would result in the 
subtraction of 50 acres of eligible prevented planting acres of 
soybeans. This equates to 100 eligible prevented planting acres being 
subtracted from the same 50 physical acres (field A); leaving 0 
eligible prevented planting acres remaining for the 50 physical acres 
prevented from planting in field B that remains unplanted.
    FCIC is removing the double subtraction on field A by no longer 
subtracting the uninsured second planting from eligible prevented 
planting acres. This would allow a prevented planting payment on field 
B, if those acres were unable to be planted, and if other policy 
provisions for prevented planting claims are met.
    To illustrate the inequity of the previous provisions in a 
different way, see the following scenarios below. These scenarios show 
the disparate treatment of two producers in the same situation, except 
that their 100 prevented planting eligible acres are for different 
crops. Scenario 1: Producer has 100 acres of corn prevented planting 
eligible acres and 0 acres of soybean prevented planting eligibility. 
There is no impact on prevented planting eligibility for field B. Since 
there are 0 acres of soybean eligible prevented planting acres, the 50 
planted acres of uninsured soybeans (field A) would not be subtracted 
from prevented planting eligibility. In this case, the producer would 
remain eligible for a prevented planting payment on the 50 acres of 
corn (field B) that were prevented from being planted.

----------------------------------------------------------------------------------------------------------------
                                                                      Planted
                      Crop                           Eligible       (insured &    Prevented from  Available  for
                                                       acres        uninsured)        planting        payment
----------------------------------------------------------------------------------------------------------------
Corn............................................             100              50              50              50
Soybeans........................................               0              50               0               0
----------------------------------------------------------------------------------------------------------------

    Scenario 2: A producer has 50 acres of prevented planting corn 
eligibility and 50 acres of prevented planting soybean eligibility; 
prevented planting eligibility is eliminated on field B. Previously, 
prevented planting eligible acres are reduced by planted acres of 
insured and uninsured crops, and the 50 acres of planted and then 
failed corn in field A would exhaust corn prevented planting 
eligibility. The planting of 50 acres of uninsured soybeans in field A 
would exhaust the soybean prevented planting eligibility as well. There 
would be no remaining eligible prevented

[[Page 76423]]

planting acres for the 50 acres of corn prevented from being planted in 
field B.

----------------------------------------------------------------------------------------------------------------
                                                                      Planted
                      Crop                           Eligible       (insured &    Prevented from  Available  for
                                                       acres        uninsured)        planting        payment
----------------------------------------------------------------------------------------------------------------
Corn............................................              50              50              50               0
Soybeans........................................              50              50               0               0
----------------------------------------------------------------------------------------------------------------

    Regulation change: For this example, the change to the regulation 
results in Scenario 2 having the same result as Scenario 1 with 50 
eligible acres of prevented planting soybeans which can be used to make 
the corn payment claimed. Changing this to not subtract the uninsured 
acres of soybeans planted on field A will be a more equitable treatment 
of producers under catastrophic loss conditions.

----------------------------------------------------------------------------------------------------------------
                                     Eligible         Planted         Planted        Prevented    Available  for
              Crop                     acres         (insured)      (uninsured)    from planting      payment
----------------------------------------------------------------------------------------------------------------
Corn............................              50              50               0              50               0
Soybeans........................              50               0              50               0              50
----------------------------------------------------------------------------------------------------------------

    FCIC is revising section 17(f)(1) to provide an exception if the 
producer can prove intent to plant based on inputs applied or available 
to apply, rotation, etc., the producer could then be paid a prevented 
planting payment based on their intended crop, even if it's different 
than the crop that was planted in the field.
    Previously, section 17(f)(1) of the CCIP Basic Provisions stated, 
``Any prevented planting acreage within a field that contains planted 
acreage will be considered to be acreage of the same crop, type, and 
practice that is planted in the field.''
    For example, a producer intends to plant a 100-acre field to corn, 
but it is too wet prior to the final plant date. Prior to the end of 
the late planting period for corn, she begins planting the field to 
soybeans. She planted 20 acres of soybeans before getting rained out. 
The producer submits a claim for the remaining 80 acres as prevented 
planting corn. The producer does not have history of producing both 
corn and soybeans in the same field in the same crop year. Prevented 
planting is common to the area and the producer has adequate corn 
prevented planting eligible acres to cover the 80 acres prevented from 
planting.
    As a result, the producer has receipts for seed and other inputs to 
prove intent to plant corn. She expects to be paid prevented planting 
for corn at a higher per acre amount on 80 acres. However, because she 
planted 20 acres of soybeans in the same field as her prevented 
planting claim, section 17(f)(1) requires the 80 acres to be considered 
soybeans and be paid at a lower per acre amount. The previous provision 
may have incentivized the producer to not plant soybeans in order to 
maintain the higher prevented planting payment on corn. Revising the 
provision could reduce prevented planting payments when this situation 
arises in the future.
    With the revisions to section 17(f)(1) to provide an exception if 
the producer can prove intent to plant by inputs applied or available 
to apply, rotation, etc., in the example, the producer could provide 
documentation that fertilizer application, seed purchases, historical 
crop rotation patterns, etc. were consistent with intentions to plant 
corn. The producer could then be paid using available corn prevented 
planting acres, rather than having to consider the prevented planting 
acres soybeans.
    FCIC is adding a new section 17(f)(5)(iii) to clarify prevented 
planting coverage will not be provided if the act of haying or grazing 
a cover crop contributed to the acreage being prevented from planting 
or the cover crop was otherwise harvested prior to the end of the late 
planting period. In a previous final rule, section 17(f)(5)(ii) was 
revised to remove the words ``or cover'' following the word 
``volunteer,''. In addition, FCIC removed a Special Provisions 
statement that read: ``In lieu of Section 17(f)(5)(ii) of the Common 
Crop Insurance Basic Provisions, haying or grazing a cover crop will 
not impact eligibility for a prevented planting payment provided such 
action did not contribute to the acreage being prevented from 
planting.'' FCIC received comments regarding concerns this change could 
lead to misunderstanding and unforeseen consequences. Some may 
interpret this to mean that a cover crop could be hayed or grazed even 
if the act contributed to the acreage being prevented from planting or 
that a cover crop could be otherwise harvested prior to the end of the 
late planting period. Therefore, the additional language incorporates 
the previous Special Provisions statements.
    FCIC is revising section 17(f)(8) to implement the ``1 in 4'' 
requirement nationwide (beyond just the Prairie Pothole National 
Priority Area discussed below). Acreage must be physically available 
for planting to be eligible for a prevented planting payment. The ``1 
in 4'' requirement is contained in a Special Provisions statement and 
is an extension of the CCIP Basic Provisions that the acreage must be 
physically available for planting. The ``1 in 4'' requirement states 
that the acreage must have been planted to a crop, insured, and 
harvested (or if not harvested, adjusted for claim purposes due to an 
insurable cause of loss) in at least 1 out of the previous 4 crop 
years.
    The ``1 in 4'' requirement has been in place since the 2012 crop 
year in the Prairie Pothole National Priority Area, which encompasses 
the states of Iowa, Minnesota, Montana, North Dakota, and South Dakota. 
The requirement in that area addressed prevented planting payments that 
were repeatedly made on acreage not physically available for planting 
(that is, acreage that is perpetually wet, such as potholes). Adding 
the language to the CCIP Basic Provisions for national applicability 
will allow for equal treatment for all areas of the United States and 
further mitigate waste, fraud and abuse for all acreage that is not 
physically available for planting to a crop to be insured. The Special 
Provisions statement had a requirement that the acreage must have been 
harvested, or if not harvested, was adjusted for claim purposes under 
the

[[Page 76424]]

authority of the Act due to an insured cause of loss (other than a 
cause of loss related to flood or excess moisture). FCIC identified 
perpetual drought conditions as a vulnerability and received requests 
to expand the ``1 in 4'' requirement in previous years. Therefore, FCIC 
added that in order to meet the ``1 in 4'' requirement, claim purposes 
could not be ``due to drought'' to address prevented planting payments 
that were repeatedly made on acreage not physically available for 
planting on perpetually dry acreage when a crop was not harvested. This 
incorporates provisions from a Special Provisions statement and as a 
result, the Special Provisions statement is removed.
    FCIC is revising section 20(a) and 20(b)(1) to clarify the 
responsibility is on the producer to start dispute resolution through 
arbitration when the producer disagrees with an AIP determination. The 
AIP is the only party that makes a determination so the producer is the 
only party to the contract that could disagree with the determination 
the AIP made. There has been confusion that this provision could 
require both the producer and the AIP to start arbitration prior to 
litigation.
    FCIC is also making non-substantive changes to the regulation. 
Examples include making references consistent, making grammatical 
corrections, and clarifying word changes. These revisions are editorial 
in nature and are intended to provide clarity to the regulation.

Sunflower Seed Crop Insurance Provisions

    FCIC is revising section 4 of the Sunflower Seed Crop Insurance 
Provisions (7 CFR part 457.108) to change the cancellation and 
termination dates in 4 Texas counties from March 15 to January 31 to 
align with the January 31 sales closing date in these counties. This 
change is being made after a data mining exercise where FCIC identified 
that the sales closing date and cancellation/termination date did not 
match in these 4 counties.
    FCIC is also making non-substantive changes to the regulation, 
including removing commas and correcting a spelling error.

Dry Pea Crop Insurance Provisions

    FCIC is making non-substantive changes in the Dry Pea Crop 
Insurance Provisions (7 CFR part 457.140). Examples include making 
technical corrections and clarifying language changes. Changes were 
made to the Dry Pea Crop Insurance Provisions in a Final rule with 
request for comments, published in the Federal Register on June 26, 
2020 (85 FR 38276). In reviewing the changes made, FCIC found some of 
the changes described in that rule were not made in the Code of Federal 
Regulations. Additionally, FCIC received comments to that final rule 
and is making revisions that are editorial in nature are intended to 
provide clarity to the regulation. There are other comments that FCIC 
received in response to the final rule published June 26, 2020, that 
FCIC is continuing to review.

Effective Date and Notice and Comment

    The Administrative Procedure Act (APA, 5 U.S.C. 553) provides that 
the notice and comment and 30-day delay in the effective date 
provisions do not apply when the rule involves specified actions, 
including matters relating to contracts. This rule governs contracts 
for crop insurance policies and therefore falls within that exemption. 
Although not required by APA or any other law, FCIC has chosen to 
request comments on this rule.
    For major rules, the Congressional Review Act requires a delay to 
the effective date of 60 days after publication to allow for 
Congressional review. This rule is not a major rule under the 
Congressional Review Act, as defined by 5 U.S.C. 804(2). Therefore, 
this final rule is effective November 30, 2020.

Executive Orders 12866, 13563, 13771 and 13777

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives, and if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' established a federal 
policy to alleviate unnecessary regulatory burdens on the American 
people.
    The Office of Management and Budget (OMB) designated this rule as 
not significant under Executive Order 12866, ``Regulatory Planning and 
Review,'' and therefore, OMB has not reviewed this rule and analysis of 
the costs and benefits is not required under either Executive Order 
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 savings from deregulatory actions. As this rule 
is designated as not significant, it is not subject to Executive Order 
13771. In a general response to the requirements of Executive Order 
13777, USDA created a Regulatory Reform Task Force, 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 ongoing approach. FCIC reviewed this regulation 
and made changes to improve any provision that was determined to be 
outdated, unnecessary, or ineffective.

Clarity of the Regulation

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

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
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 APA and no other law 
requires that a proposed rule be published for this rulemaking 
initiative.

[[Page 76425]]

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) and the 
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508). FCIC conducts programs and activities that have been determined 
to have no individual or cumulative effect on the human environment. As 
specified in 7 CFR 1b.4, FCIC is categorically excluded from the 
preparation of an Environmental Analysis or Environmental Impact 
Statement unless the FCIC Manager (agency head) determines that an 
action may have a significant environmental effect. The FCIC Manager 
has determined this rule will not have a significant environmental 
effect. Therefore, FCIC will not prepare an environmental assessment or 
environmental impact statement for this action and this rule serves as 
documentation of the programmatic environmental compliance decision.

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. Before any judicial actions may be brought 
regarding the provisions of this rule, the administrative appeal 
provisions of 7 CFR part 11 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 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.
    RMA has assessed the impact of this rule on Indian Tribes and 
determined that this rule does not, to our knowledge, have Tribal 
implications that require Tribal consultation under E.O. 13175. The 
regulation changes do not have Tribal implications that preempt Tribal 
law and are not expected have a substantial direct effect on one or 
more Indian Tribes. If a Tribe requests consultation, RMA will work 
with the USDA Office of Tribal Relations to ensure meaningful 
consultation is provided where changes, additions and modifications 
identified in this rule are not expressly mandated by Congress.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions 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 Program

    The title and number of the Federal Domestic Assistance Program 
listed in the Catalog of Federal Domestic Assistance to which this rule 
applies is No. 10.450--Crop Insurance.

Paperwork Reduction Act of 1995

    In accordance with the provisions of the Paperwork Reduction Act of 
1995 (44 U.S.C. chapter 35, subchapter I), the rule does not change the 
information collection approved by OMB under control numbers 0563-0053.

E-Government Act Compliance

    FCIC 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

7 CFR Part 407

    Acreage allotments, Administrative practice and procedure, Barley, 
Corn, Cotton, Crop insurance, Peanuts, Reporting and recordkeeping 
requirements, Sorghum, Soybeans, Wheat.

7 CFR Part 457

    Acreage allotments, Crop insurance, Reporting and recordkeeping 
requirements.

Final Rule

    For the reasons discussed above, FCIC amends 7 CFR parts 407 and 
457, effective for the 2021 and succeeding crop years for crops with a 
contract change date on or after November 30, 2020, and for the 2022 
and succeeding crop years for all other crops, as follows:

PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS

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

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


0
2. Amend Sec.  407.9 as follows:
0
a. In section 1:
0
i. In the definition of ``Code of Federal Regulations (CFR)'', remove 
the phrase ``https://ecfr.gpoaccess.gov/'' and add ``https://www.ecfr.gov/'' in its place;
0
ii. In the definition of ``total premium'', remove the phrase ``section 
7(e)(1)'' and add ``section 7(d)(1)'' in its place;
0
b. In section 2:

[[Page 76426]]

0
i. In paragraph (k)(1)(ii), remove the phrase ``sections (k)(2)(i)(A), 
(B) or (D)'' and add ``sections 2(k)(2)(i)(A), (B), or (D)'' in its 
place; and
0
ii. In paragraph (k)(2)(ii), add a comma following the phrase 
``2(k)(2)(i)(A), (B)''; and
0
c. In section 13, revise paragraph (d)(1);
0
d. In section 23 [Reinsured policies], revise paragraph (d)(1) 
introductory text, (d)(2), and (d)(5)(i).
    The revisions read as follows:


Sec.  407.9  Area risk protection insurance policy.

* * * * *
13. Indemnity and Premium Limitations
* * * * *
    (d) * * *
    (1) If the records you provided are from acreage you double cropped 
in at least two of the last four crop years, you may apply your history 
of double cropping to any acreage of the insured crop in the county 
(for example you have 100 cropland acres in the county and have double 
cropped wheat and soybeans on all 100 acres in the county and you 
acquire an additional 100 acres in the county, you can apply your 
history of 100 double cropped acres to any of the 200 acres in the 
county); or
* * * * *
[Reinsured Policies]
23. Mediation, Arbitration, Appeal, Reconsideration, and Administrative 
and Judicial Review
* * * * *
    (d) * * *
    (1) If you do not agree with any determination not covered by 
sections 23(a) and (c), the disagreement may be resolved through 
mediation. To resolve any dispute through mediation, you and we must 
both:
* * * * *
    (2) If the disagreement cannot be resolved through mediation, or 
you and we do not agree to mediation, you must timely seek resolution 
through arbitration in accordance with the rules of the American 
Arbitration Association (AAA), unless otherwise stated in this 
subsection or rules are established by FCIC for this purpose. Any 
mediator or arbitrator with a familial, financial or other business 
relationship to you or us, or our agent or loss adjuster, is 
disqualified from hearing the dispute.
* * * * *
    (5) * * *
    (i) You must initiate arbitration proceedings within 1 year of the 
date we denied your claim or rendered the determination with which you 
disagree, whichever is later;
* * * * *

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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


0
4. Amend Sec.  457.8 as follows:
0
a. Under the heading ``FCIC Policies'', in the first paragraph, remove 
the phrase ``on the RMA's website'' and add ``on RMA's website'' in its 
place;
0
b. Under the heading ``Reinsured Policies'', in the first paragraph, 
remove the phrase ``bulletins) published on the RMA's website'' and add 
``bulletins), published on RMA's website'' in its place;
0
c. In section 1:
0
i. Revise the definition of ``approved yield'';
0
ii. In the definition of ``Code of Federal Regulations (CFR)'', remove 
the website address of ``https://www.access.gpo.gov/'' and add ``https://www.ecfr.gov/'' in its place;
0
iii. In the definition of ``RMA's website'', add the word ``or'' 
following the website address of ``www.rma.usda.gov;''
0
iv. Revise the definition of ``second crop'';
0
d. In section 3, in paragraph (l)(1), remove the phrase ``acreage you 
were previously involved with'' and add ``new acreage'' in its place;
0
e. Revise section 15(i)(1);
0
f. In section 17:
0
i. In section 17(e)(1)(i), add the phrase ``, unless you qualify for 
the exception in section 17(e)(1)(ii)(E)'' at the end of the paragraph 
before the colon;
0
ii. In section 17(e)(1)(i)(B)(3), remove the phrase ``you lease the 
previous year and continue to leased'' and add ``you leased the 
previous year and continue to lease'' in its place;
0
iii. Add paragraphs (e)(1)(ii)(E) and (F);
0
iv. Revise paragraph (e)(2);
0
v. In paragraph (f)(1) introductory text, remove the phrase ``to be'';
0
vi. In paragraph (f)(1)(ii), remove the word ``or'' at the end of the 
paragraph;
0
vii. Revise paragraph (f)(1)(iii);
0
viii. Add paragraph (f)(1)(iv);
0
ix. Revise paragraph (f)(4)(ii) introductory text and (f)(4)(ii)(A);
0
x. Add paragraph (f)(5)(iii);
0
xi. Add paragraphs (f)(8)(i) and (ii);
0
g. In section 18, in paragraph (f)(1)(iii), add a comma following the 
phrase ``for the crop''; and
0
h. In section 20 [For reinsured policies]:
0
i. Revise paragraph (a) introductory text;
0
ii. Revise paragraph (b)(1);
    The revisions and additions read in part as follows:


Sec.  457.8  The application and policy.

* * * * *

Common Crop Insurance Policy

* * * * *
1. Definitions.
* * * * *
    Approved yield. The actual production history (APH) yield, 
calculated and approved by the verifier, used to determine the 
production guarantee by summing the yearly actual, assigned, adjusted 
or unadjusted transitional yields and dividing the sum by the number of 
yields contained in the database, which will always contain at least 
four yields. The database may contain up to 10 consecutive crop years 
of actual or assigned yields. The approved yield may have yield options 
elected under section 36, revisions according to section 3, or other 
limitations according to FCIC procedures applied when calculating the 
approved yield.
* * * * *
    Second crop. With respect to a single crop year, the next 
occurrence of planting any agricultural commodity for harvest following 
a first insured crop on the same acreage. The second crop may be the 
same or a different agricultural commodity as the first insured crop, 
except the term does not include a replanted crop. If following a first 
insured crop, a cover crop that is planted on the same acreage and 
harvested for grain or seed is considered a second crop. A cover crop 
that is covered by FSA's noninsured crop disaster assistance program 
(NAP) or receives other USDA benefits associated with forage crops will 
be considered a second crop. A crop meeting the conditions stated in 
this definition is considered to be a second crop regardless of whether 
or not it is insured.
* * * * *
    15. Production Included in Determining an Indemnity and Payment 
Reductions
* * * * *
    (i) * * *
    (1) If the records you provided are from acreage you double cropped 
in at least two of the last four crop years, you may apply your history 
of double cropping to any acreage of the insured crop in the county 
(for example, you have 100 cropland acres in the county

[[Page 76427]]

and have double cropped wheat and soybeans on all 100 acres in the 
county and you acquire an additional 100 acres in the county, you can 
apply your history of 100 double cropped acres to any of the 200 acres 
in the county); or
* * * * *
17. Prevented Planting
* * * * *
    (e) * * *
    (1) * * *
    (ii) * * *
    (E) If you were eligible to file an intended acreage report the 
first crop year, you may file an intended acreage report for the second 
crop year. If you choose to file an intended acreage report for the 
second crop year, the number of eligible acres will be the number of 
acres specified on your intended acreage report and not the number of 
eligible acres determined in accordance with section 17(e)(1)(i).
    (F) You cannot file an intended acreage report more than 2 
consecutive crop years.
* * * * *
    (2) Any eligible acreage determined in accordance with section 
17(e)(1) will be reduced by subtracting the number of acres of the crop 
(insured and uninsured) that are timely and late planted, including 
acreage specified in section 16(b), unless your first insured crop 
failed and you plant an uninsured second crop on the same acres within 
the same crop year, the acres for the uninsured second crop will not be 
subtracted from the eligible prevented planting acreage.
* * * * *
    (f) * * *
    (1) * * *
    (iii) The insured crop planted in the field would not have been 
planted on the remaining prevented planting acreage (e.g., where due to 
Crop Provisions, Special Provisions, or processor contract 
specifications rotation requirements would not be met, or you already 
planted the total number of acres specified in the processor contract); 
or
    (iv) The acreage that was prevented from being planted constitutes 
at least 20 acres or 20 percent of the total insurable acreage in the 
field and you provide proof that you intended to plant another crop or 
crop type on the acreage (including, but not limited to inputs 
purchased, applied or available to apply, or that acreage was part of a 
crop rotation).
* * * * *
    (4) * * *
    (ii) For the insured crop that is prevented from being planted, you 
provide records acceptable to us of acreage and production that show 
(your double cropping history is limited to the highest number of acres 
double cropped within the applicable four-year period unless your 
double cropping history is determined in accordance with section 
15(i)(3)):
    (A) You have double cropped acreage in at least 2 of the last 4 
crop years in which the insured crop that is prevented from being 
planted in the current crop year was grown (you may apply your history 
of double cropping to any acreage of the insured crop in the county 
(for example, you have 100 cropland acres in the county and have double 
cropped wheat and soybeans on all 100 acres and you acquire an 
additional 100 acres in the county, you can apply your history of 100 
double cropped acres to any of the 200 acres in the county)); or
* * * * *
    (5) * * *
    (iii) The act of haying or grazing a cover crop contributed to the 
acreage being prevented from being planted or the cover crop was 
otherwise harvested prior to the end of the late planting period.
* * * * *
    (8) * * *
    (i) In order for acreage to be considered physically available for 
planting, the acreage must:
    (A) Be free of trees, rocky outcroppings, or other factors that 
prevent proper and timely preparation of the seedbed for planting and 
harvest of the crop in the crop year;
    (B) Not be enrolled in a USDA program that removes the acreage from 
crop production;
    (C) Not be planted to a perennial crop (i.e., trees or vines either 
planted on the acreage, or not removed from the acreage in a proper or 
timely manner, thus preventing the timely planting of a crop for the 
crop year);
    (D) Not have pasture, rangeland or forage in place (see section 
17(f)(6));
    (E) In at least 1 of the 4 most recent crop years immediately 
preceding the current crop year, have been planted to a crop:
    (1) Using recognized good farming practices;
    (2) Insured under the authority of the Act; and
    (3) That was harvested, or if not harvested, was adjusted for claim 
purposes under the authority of the Act due to an insured cause of loss 
(other than a cause of loss related to flood, excess moisture, drought, 
or other cause of loss specified in the Special Provisions).
    (ii) Once any acreage does not satisfy the criteria set-forth in 
section 17(f)(8)(i)(E)(1), (2), and (3) in 1 of the 4 most recent crop 
years immediately preceding the current crop year, such acreage will be 
considered physically unavailable for planting until the acreage has 
been planted to a crop in accordance with 17(f)(8)(i)(E)(1), (2), and 
(3) for 2 consecutive crop years.
* * * * *
[For Reinsured Policies]
20. Mediation, Arbitration, Appeal, Reconsideration, and Administrative 
and Judicial Review
    (a) If you do not agree with any determination made by us except 
those specified in section 20(d) or (e), the disagreement may be 
resolved through mediation in accordance with section 20(g). If the 
disagreement cannot be resolved through mediation, or you and we do not 
agree to mediation, you must timely seek resolution through arbitration 
in accordance with the rules of the American Arbitration Association 
(AAA), except as provided in sections 20(c) and (f), and unless rules 
are established by FCIC for this purpose. Any mediator or arbitrator 
with a familial, financial or other business relationship to you or us, 
or our agent or loss adjuster, is disqualified from hearing the 
dispute.
* * * * *
    (b) * * *
    (1) You must initiate arbitration proceedings within 1 year of the 
date we denied your claim or rendered the determination with which you 
disagree, whichever is later;
* * * * *

0
4. Amend Sec.  457.108 as follows:
0
a. In the introductory text, remove the year ``2017'' and add ``2021'' 
in its place;
0
b. In section 1, in the definition of ``planted acreage'', remove the 
word ``ini'' and add ``in'' in its place;
0
c. Revise section 4;
0
d. In section 11:
0
i. In paragraph (c)(iv)(A), remove the comma following the phrase ``in 
locations acceptable to us'';
0
ii. In paragraph (d)(3)(i), remove the comma following the phrase ``or 
conditions''.
    The revision reads as follows:


Sec.  457.108  Sunflower seed crop insurance provisions.

* * * * *

0
5. Cancellation and Termination Dates.
    In accordance with section 2 of the Basic Provisions, the 
cancellation and termination dates are:

[[Page 76428]]



------------------------------------------------------------------------
                                                   Cancellation and
              State and county                    termination dates
------------------------------------------------------------------------
Hidalgo, Jim Wells, Nueces, and Starr        January 31.
 Counties, Texas.
All other Texas counties and all other       March 15.
 States.
------------------------------------------------------------------------

* * * * *

0
6. Amend Sec.  457.140 as follows
0
a. In section 1, in the definition of ``price election'', remove the 
phrase ``the provisions of'';
0
b. In section 2, remove the phrase ``FSA farm serial number'' and add 
the phrase ``FSA farm number'' in its place;
0
c. In section 3, in paragraph (b)(1), remove the word ``documentsdo'' 
and add ``documents do'' in its place;
0
d. In section 7:
0
i. In paragraph (a)(2)(ii), remove the word ``and'' at the end of the 
paragraph;
0
ii. Revise paragraphs (a)(3) and (a)(4);
0
iii. In paragraph (c), remove the phrase ``the sales closing date'' and 
add the phrase ``its sales closing date'' in its place;
0
e. In section 8:
0
i. In paragraph (c) introductory text, remove the ``al'' at the end of 
the paragraph;
0
ii. In paragraph (c)(2), remove the phrase ``to be'';
0
iii. In paragraph (d), remove the word ``fall'' and add ``fall-
planted'' in its place;
0
f. In section 9:
0
i. Remove one of the duplicate section 9 headings ``Insurance Period'';
0
ii. In paragraph (a), remove the phrase ``fall and spring-planted 
types'' and add ``fall-planted and spring-planted types'' in its place;
0
e. In section 11, in paragraph (a)(6), remove the phrase ``fall-planted 
dry pea acreage'' and add ``fall-planted types'' in its place;
0
h. In section 13:
0
i. In Example 2, paragraph (3), remove the comma and add a semi-colon 
in its place and add a semi-colon at the end of the paragraph;
0
ii. In Example 2, paragraph (6), remove the number ``1.0'' and add 
``1.00'' in its place;
0
iii. In Example 2, paragraph (7), remove the comma and add a semi-colon 
in its place;
0
iv. In paragraph (e) introductory text, remove the phrase ``If applying 
a moisture adjustment, it'' and add ``Any adjustment for moisture'' in 
its place;
0
i. In section 14, in paragraph (a), remove the word ``fall'' and add 
``fall-planted'' in its place;
0
j. In section 15:
0
i. In paragraph (d), remove the phrase ``both a both fall and spring-
planted types'' and add ``both fall-planted and spring-planted types'' 
in its place; and
0
ii. In paragraph (e)(4), remove the phrase ``insured fall-
plantedacreage'' and add ``insured fall-planted acreage'' in its place.
    The revision read as follows:


Sec.  457.108  Dry pea crop insurance provisions.

* * * * *
7. Insured Crop
    (a) * * *
    (3) That are not planted to plow down, graze, harvest as hay, or 
otherwise not planted for harvest as a mature dry pea crop; and
    (4) That are not (unless allowed by the Special Provisions or by 
written agreement):
    (i) Interplanted with another crop;
    (ii) Planted into an established grass or legume; or
    (iii) Planted as a nurse crop.
* * * * *

Martin Barbre,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2020-26036 Filed 11-27-20; 8:45 am]
BILLING CODE 3410-08-P