Common Crop Insurance Regulations; Small Grains Crop Insurance Provisions, 33485-33491 [2021-13113]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 86, Number 120 (Friday, June 25, 2021)]
[Rules and Regulations]
[Pages 33485-33491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13113]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket ID FCIC-21-0002]
RIN 0563-AC73


Common Crop Insurance Regulations; Small Grains Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, U.S. Department of 
Agriculture (USDA).

ACTION: Final rule with request for comments.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations, Small Grains Crop Insurance 
Provisions and Malting Barley Price and Quality Endorsement. For the 
Small Grains Crop Insurance Provisions, the intended effect of this 
action is to allow enterprise units by type for wheat, to clarify 
policy provisions for consistency with other crop provisions that offer 
coverage on both winter and spring-planted acreage of the crop. For the 
Malting Barley Price and Quality Endorsement, the intended effect is to 
remove and reserve this section. The changes will be effective for the 
2022 and succeeding crop years.

DATES: 
    Effective date: June 25, 2021.
    Comment date: We will consider comments that we receive by the 
close of business August 24, 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 and search for Docket ID FCIC-21-0002. Follow the 
instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency (RMA), U.S. Department of Agriculture, 
P.O. Box 419205, Kansas City, MO 64133-6205. In your comment, specify 
docket ID FCIC-21-0002.
    Comments will be available for viewing online at 
www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email [email protected]. Persons with disabilities who 
require alternative means for communication should contact the USDA 
Target Center at (202) 720-2600 or 844-433-2774 (toll-free nationwide).

SUPPLEMENTARY INFORMATION:

Background

    The FCIC serves America's agricultural producers through effective, 
market-based risk management tools to strengthen the economic stability 
of agricultural producers and rural communities. FCIC is committed to 
increasing the availability and effectiveness of Federal crop insurance 
as a risk management tool. Approved Insurance Providers (AIP) sell and 
service Federal crop insurance policies in every state through a 
public-private partnership. FCIC reinsures the AIPs who share the risks 
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.
    FCIC amends the Common Crop Insurance Regulations by revising 7 CFR 
457.101, Small Grains Crop Insurance Provisions, and by removing and 
reserving 7 CFR 457.118, Malting Barley Price and Quality Endorsement, 
to be effective for the 2022 and succeeding crop years.
    The changes to 7 CFR 457.101, Small Grains Crop Insurance 
Provisions, are as follows:
    1. Throughout the Crop Provisions, FCIC is replacing all references 
of the ``fall'' type with ``winter'' type. Fall and spring-planted 
acreage are insured under the ``winter'' commodity type and ``spring'' 
commodity type, respectively, in the actuarial documents. This change 
is necessary for consistency between the Crop Provisions and actuarial 
documents.
    2. Throughout the Crop Provisions, FCIC is replacing the phrase 
``initially planted'' with the phrase ``initially-planted,'' where 
appropriate.
    3. Throughout the Crop Provisions, FCIC is replacing all references 
of ``growers'' with ``producers'' to be consistent with the terminology 
used in the Common Crop Insurance Policy Basic Provisions.
    4. Section 1--FCIC is revising the definition of ``Khorasan'' by 
replacing the phrase ``is considered to be'' with ``is considered.'' 
The phrase ``to be'' is not necessary.
    FCIC is revising the definition of ``latest final planting date'' 
to replace all references to fall and spring-planted acreage to winter 
and spring types. This change will eliminate any confusion of whether a 
winter final planting date exists in the actuarial documents if the 
Winter Coverage Endorsement is not selected. For example, Asotin 
County, Washington lists a winter final planting date for barley that 
is only applicable if the Winter Coverage Endorsement is elected. 
Otherwise, there is no applicable date in the fall and only spring 
final planting dates exist for the spring types. The intent of these 
provisions is to address when a county has both winter and spring types 
designated in the Special Provisions, regardless if the Winter Coverage 
Endorsement is elected.
    FCIC is revising the definition of ``small grains'' to allow the 
flexibility to insure additional small grains varieties that are not 
currently listed in the actuarial documents. This allows for insurance 
coverage to be offered via actuarial documents for varieties currently 
not insured when data become available, and it is appropriate to do so.
    5. Section 2--FCIC is designating the undesignated paragraph in 
section 2 as paragraph (b) and adding a new paragraph (a) to allow 
enterprise units by type for wheat. For example, if insured has winter 
and spring types, they may elect one enterprise unit for the spring 
type or one enterprise unit for the winter type, or separate enterprise 
units for both types.
    For the wheat types, allowing separate enterprise units allows 
producers to be indemnified separately by type. The benefit for 
producers is that a loss on one type will not be offset by the gain on 
another type.
    If an insured elects enterprise units by type, these enterprise 
units are not allowed to be further divided by practice and the insured 
may not elect enterprise or optional units by irrigation practices for 
the policy.
    Additionally, the insured must separately meet the requirements in 
section 34(a)(4) of the Basic Provision for each enterprise unit they 
elect to have.

[[Page 33486]]

    If the insured elects enterprise units by type and does not qualify 
for separate enterprise units, there are options based upon whether 
enterprise units are elected for one or multiple types and the timing 
of the discovery:
     If the insured elects separate enterprise units for 
multiple types and the AIP discovers the enterprise unit qualifications 
are not separately met for all types:
    (1) On or before the acreage reporting date the insured may elect 
to insure:
    (a) All types in which they elected an enterprise unit for meeting 
the requirements in section 34(a)(4) of the Basic Provisions as 
separate enterprise units, and basic or optional units for any acreage 
that is not reported and insured as an enterprise unit, whichever the 
insured reports on the acreage report and for which the insured 
qualifies; or
    (b) One enterprise unit for all acreage of the crop in the county 
provided the insured meets the requirements in section 34(a)(4) of the 
Basic Provisions; or
    (c) Basic or optional units for all acreage of the crop in the 
county, whichever the insured reports on the acreage report and for 
which the insured qualifies.
    (2) After acreage reporting date, the insured will have one 
enterprise unit for all acreage of the crop in the county provided they 
meet the requirements in section 34(a)(4) of the Basic Provisions. If 
they don't meet the requirements in section 34(a)(4), the AIP will 
assign a basic unit structure for all acreage of the crop in the 
county.
     If an insured elects an enterprise unit for only one type 
and the AIP discovers the enterprise unit qualifications are not met 
for that type:
    (1) On or before the acreage reporting date, the insured's unit 
division for all acreage of the crop in the county will be based on 
basic or optional units, whichever the insured reports on the acreage 
report and for which the insured qualifies; or
    (2) After the acreage reporting date, the AIP will assign the basic 
unit structure for all acreage of the crop in the county.
    FCIC is also revising the first sentence in redesignated paragraph 
(b) to rephrase the language to eliminate the need to list all optional 
unit choices from the Basic Provisions. This allows the Small Grains 
Crop Provisions to follow the Basic Provisions optional unit division 
language when and if those provisions in the Basic Provisions are 
updated, without a new regulation.
    In newly redesignated paragraph (b), FCIC is revising the reference 
to section 34(b) of the Common Crop Insurance Policy Basic Provisions 
to 34(c). Section 34(c) is the appropriate reference.
    In newly redesignated paragraph (b), FCIC is simplifying the 
paragraph by removing the list of insurable types that may be insured 
as separate optional units and replacing with a statement that separate 
optional units may be established by any insured wheat type as long as 
each optional unit contains only initially-planted acreage of the type. 
The insured type can be listed in the actuarial documents or insured by 
written agreement to qualify. This change is needed in the event the 
insured elects enterprise units by type but does not qualify for 
enterprise units.
    6. Section 3--FCIC is revising the lead-in to paragraph (b)(2). 
This paragraph addresses counties that have both winter and spring 
sales closing dates. In some counties, the winter sales closing date 
only applies if the Winter Coverage Endorsement is elected. While these 
specific counties have a winter and a spring sales closing date listed 
in the actuarial documents, paragraph (b)(2) is not referring to these 
counties. Paragraph (b)(2) is only intended to apply to those counties 
where both winter and spring sales closing dates are applicable 
regardless of the Winter Coverage Endorsement election. Therefore, the 
lead-in is revised to include, in parenthesis, a statement that 
excludes dates specific to the Winter Coverage Endorsement.
    FCIC is also revising paragraphs (b)(2)(i) and (ii) to replace the 
phrase ``insured fall planted acreage'' with the phrase ``insurable 
winter planted acreage.'' This paragraph provides guidance regarding 
the date by which producers can make changes to their insurance 
coverage depending on whether they have insured fall-planted acreage. 
The provisions state that if producers have insured fall-planted 
acreage, no changes can be made after the fall sales closing date. If 
producers do not have insured fall-planted acreage, then they can make 
changes up until the spring sales closing. All acreage of the crop in 
the county must be insured. Therefore, if the producer plants fall-
planted acreage and it meets the insurability requirements in section 
6, then it must be insured. FCIC received input from AIPs that the 
phrase ``insured fall planted acreage'' indicates that if producers 
planted fall-planted acreage but do not insure it, then they have until 
the spring sales closing date to make changes to the insurance coverage 
on the spring-planted acreage. That is not the intent of the 
provisions. Therefore, FCIC is revising the language to indicate if 
producers planted insurable fall-planted acreage, then no changes may 
be made after the fall sales closing date. As explained above, ``fall'' 
is also being replaced with ``winter,'' as appropriate.
    7. Section 5--FCIC is removing the phrase ``Special Provisions'' 
and replacing it with the phrase ``actuarial documents.'' The 
cancellation and termination dates identified in this section are also 
found in the actuarial documents, rather than the Special Provisions. 
If FCIC determines that the cancellation or termination dates need to 
differ than what is provided in the Crop Provisions, then the modified 
date would be identified in the actuarial documents.
    8. Section 6--FCIC is removing paragraph (e). This paragraph refers 
to the Malting Barley Price and Quality Endorsement (MBPQE) published 
at 7 CFR 457.118. The MBPQE is no longer available to barley producers. 
Another endorsement, Malting Barley Endorsement was approved by the 
FCIC Board of Directors under Section 508(h) of the Federal Crop 
Insurance Act. The Malting Barley Endorsement replaced the MBPQE in 
2016 and is not codified. Therefore, there's no need to include a 
reference to the MBPQE within the Small Grains Crop Provisions.
    9. Section 7--FCIC is revising the lead-in sentence to paragraph 
(a)(1) to remove the reference to oats. FCIC is adding oats to 
paragraph (a)(2). Paragraph (a)(1) is for the crops for which there is 
only one planting season (either winter or spring); whereas paragraph 
(a)(2) is for the crops that have more than one planting season (winter 
and spring). In all counties where oats are insured, FCIC insures 
winter-planted oats, spring-planted oats or both. Therefore, oats are 
more appropriately placed in paragraph (a)(2) and are added within 
paragraph (a)(2) in every place there is a reference to barley and 
wheat.
    FCIC is also revising paragraphs (a)(2)(ii) and (iii) to change the 
phrase ``fall final planting date'' and ``fall and spring final 
planting dates'' to ``winter type'' and ``winter and spring types,'' 
respectively.
    FCIC is revising paragraph (a)(2)(iii)(A) to add the word 
``acreage'' at the end of the following phrase: ``Any winter barley, 
oat or wheat.'' By adding ``acreage'' to this phrase, this lead-in 
phrase is consistent with the lead-in phrase in paragraph 
(a)(2)(iii)(B). FCIC is also revising the phrase ``Any winter barley, 
oat or wheat'' to add a comma after ``oat.''
    FCIC is also adding paragraph (a)(2)(iii)(D). This paragraph 
addresses situations, in counties with both winter and spring types 
listed in the actuarial

[[Page 33487]]

documents, when acreage of the winter type is planted after the end of 
the late planting period. The Basic Provisions says that any acreage 
planted after the end of the late planting period may be insured if the 
producer chooses to insure it. If insured, then the acreage will be 
insured with a reduced guarantee equal to the production guarantee 
times the prevented planting coverage level percentage specified in the 
actuarial documents. In counties with both winter and spring types 
listed in the actuarial documents, winter types are not eligible for 
prevented planting so there is no prevented planting coverage level 
percentage listed in the actuarial documents to assign to it. Without a 
prevented planting coverage level, section 8(b)(2) of the Basic 
Provisions applies and the winter types are not insurable (e.g., the 
appropriate rates are not available to insure the crop). This new 
provision allows the acreage to be insured in the spring as the spring 
type, if the producer chooses to insure it and the AIP determines there 
is an adequate stand. This change treats all producers similarly to 
producers who plant winter types in counties with only a spring type 
listed in the actuarial documents.
    FCIC is revising paragraph (a)(2)(iv) by revising the phrase ``. . 
.any acreage of spring barley, oat or wheat. . .'' to read ``. . .any 
spring barley, oat or wheat acreage. . .'' Similarly, FCIC is revising 
paragraph (a)(2)(v) by revising the phrase ``. . .any acreage of winter 
barley, oat or wheat. . .'' to read ``. . .any winter barley, oat or 
wheat acreage. . .'' These revisions are consistent with revisions made 
in paragraph (a)(2)(iii).
    In paragraphs (a)(2)(iv) and (v), FCIC is replacing the phrase 
``spring final planting date'' with ``spring type'' in both places to 
be consistent with changes elsewhere in the Crop Provisions.
    Also in paragraph (a)(2)(v), FCIC is revising the phrase ``is not 
insured'' to ``will not be insured.'' This is consistent with the 
language that was added in paragraph (a)(2)(iii)(D).
    FCIC is also revising paragraph (a)(2)(v) to remove the phrase 
``agree in writing'' as this could be misinterpreted to mean a written 
agreement, which is not the intent of the language, and could result in 
providing insurance via written agreement when it was not intended or 
appropriate. FCIC is replacing that phrase with language to clarify the 
AIP must inspect and give written confirmation that the acreage has an 
adequate stand in the spring to produce the yield used to determine 
your production guarantee. These clarifications will reduce the 
likelihood of fraud, waste, and abuse.
    FCIC is revising paragraph (a)(2)(v)(D) by revising the phrase ``. 
. . any acreage of such winter barley, oat or wheat. . .'' to read ``. 
. .any such winter barley, oat, or wheat acreage . . .'' These 
revisions are consistent with revisions made in paragraphs (a)(2)(iii)-
(v).
    FCIC is also revising paragraphs (a)(2)(v) introductory text and 
(a)(2)(v)(A), (B), and (D) to change all references of ``fall planted'' 
to ``winter'' for consistency with changes elsewhere.
    FCIC is revising paragraph (a)(2)(v)(E) to change the reference of 
``fall planted acreage'' to ``winter planted acreage'' for consistency 
with changes elsewhere.
    10. Section 9--FCIC is replacing the phrase ``winter coverage 
endorsement'' with ``Winter Coverage Endorsement'' because it is the 
title of an endorsement.
    FCIC is replacing the phrase ``spring final planting date'' with 
the phrase ``spring type'' in paragraph (a)(4) to accurately refer to 
the Special Provisions where insurable types and practices are listed.
    FCIC is revising paragraph (b). The phrase ``fall final planting 
date (including final planting dates in December, January and 
February)'' is replaced with ``winter type'' to accurately refer to the 
Special Provisions where insurable types and practices are listed.
    FCIC is revising paragraph (e) to replace the phrase ``crop type'' 
with ``type'' in the five places it appears. This is the only paragraph 
in the Crop Provisions where ``crop type'' is used. For consistency 
throughout the Crop Provisions, the word ``crop'' is removed.
    11. Section 11--FCIC is adding paragraph (d)(1)(v) to provide 
flexibility in the Special Provisions to update the moisture levels for 
each crop if it is determined that a level should be different than 
what is provided in the Crop Provisions.
    FCIC is revising paragraph (d)(4) by replacing the phrase 
``contained in'' with the phrase ``calculated in accordance with.'' The 
current provisions state that the quality adjustment factor is 
contained in the Special Provisions. However, there is no such factor 
stated in the Special Provisions. Instead, the quality adjustment 
factor is calculated using several different steps that are contained 
in the Special Provisions.
    12. Section 13--FCIC is removing the phrase ``spring final planting 
date'' and replacing it with the phrase ``spring type.'' FCIC is also 
revising the paragraph to move the first sentence to the end of the 
paragraph for ease of reading.

Comments Requested on Whether To Retain Section 9(a)(5)

    Section 9(a)(5) states that damage must occur after the winter 
final planting date for the producer to be eligible for a replant 
payment, in counties with both winter and spring final planting dates. 
Provisions in section 7(a)(2)(iii) provide guidance on whether a crop 
should be replanted if damage occurs any time before the spring final 
planting date, which would also encompass any time before the winter 
final planting date since the winter final planting date comes before 
the spring final planting date in the crop year. As such, a producer is 
required to replant if damage occurs prior to the winter final planting 
date; however, no replanting payment is made in that timeframe. FCIC 
has received requests to remove this provision, thereby allowing 
replanting payments to be made in situations where damage occurs prior 
to the winter final planting date in counties with both winter and 
spring final planting dates. FCIC has also received opposing feedback 
requesting the provision remain intact because it is difficult or 
impossible to make a determination prior to the winter final planting 
date that acreage needs to be replanted or that it is practical to 
replant, except in cases of widespread weather events.
    In addition to consideration of the future of section 9(a)(5), 
there are other provisions that may be affected by its removal. Section 
9(b) states that no replanting payment is available in any circumstance 
for damage in counties with only a winter final planting date. 
Producers in these counties, like producers in counties with both 
winter and spring final planting dates, are required to replant if 
damage occurs prior to the winter final planting date, but no 
replanting payment is available. FCIC has received opposition to remove 
this provision, which, if removed, would allow replanting payments 
prior to the winter final planting date. In addition to the same 
opposing feedback FCIC received regarding removal of section 9(a)(5), 
FCIC also received feedback that in counties where only a winter type 
is insurable, there is a short window to replant a damaged crop. 
Replanting in these counties may contribute to later planting dates 
when soil temperatures may be too low for germination. Unlike in 
counties where both winter and spring types are insurable, there is not 
an opportunity for producers to replant a damaged winter crop in the 
spring to retain coverage using the winter guarantee.

[[Page 33488]]

    Further, the Winter Coverage Endorsement (WCE) provides optional 
coverage for barley and wheat producers from the winter final planting 
date until the spring final planting date in counties with both winter 
and spring final planting dates. If damage occurs during the WCE 
coverage period, the producer has three options: (1) Continue to care 
for the damaged crop and coverage will continue under the terms of the 
Basic Provisions, the Small Grains Crop Insurance Provisions and the 
WCE; (2) replant the damaged acreage and receive a replanting payment; 
or (3) destroy all remaining acreage and accept an appraised amount of 
production determined in accordance with section 11(c)(1) of the Small 
Grains Crop Insurance Provisions to count against the unit production 
guarantee. The Common Crop Insurance Policy Basic Provisions says that 
no replanting payment will be made on acreage on which one replanting 
payment has already been allowed for the crop year. Assume section 
9(a)(5) is removed, damage occurs prior to the winter final planting 
date, and a replanting payment is made. If the same acreage that 
received a replanting payment is damaged during the WCE coverage 
period, then the producer's options under the WCE have been narrowed 
down to two as he likely will not choose to replant knowing he will not 
receive a replanting payment. When the producer elected the WCE at 
sales closing time, he would have expected three options in the event 
of damage.
    Finally, in general, a replanting payment will not be made if 
acreage is damaged and that acreage was planted before the earliest 
planting date if an earliest planting date is listed in the actuarial 
documents. There are counties with both winter and spring final 
planting dates that currently do not have an earliest planting date 
listed for the winter type. If section 9(a)(5) is removed, it is 
unclear if producers will plant earlier than they have historically 
planted knowing that there is a potential for a replanting payment if 
the crop fails before the winter final planting date.
    Specifically, FCIC requests comments on the following questions; 
please provide any data and information that supports your comments:
    1. Should FCIC provide a replanting payment for the winter type 
prior to the winter final planting date (i.e., by removing section 
9(a)(5))?
    2. If section 9(a)(5) is removed, while section 9(b) is left 
intact, what concerns do you have that producers who plant a winter 
type in both counties would be treated differently regarding replanting 
payments: Where producers in counties with both winter and spring final 
planting dates would receive a replanting payment prior to the winter 
final planting date and producers in counties with only a winter final 
planting date would not receive a replanting payment prior to the 
winter final planting date?
    3. If section 9(a)(5) is removed, what concerns do you have that 
the producer may not be eligible for a replanting payment under the WCE 
if he has already received a replanting payment on the same acreage?
    4. If section 9(a)(5) is removed, will FCIC need to create an 
earliest planting date for the winter types in counties where no 
earliest planting date exists to require that producers plant no 
earlier than a specific date in order to be eligible for a replanting 
payment?

Effective Date, Notice and Comment, and Exemptions

    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.
    This rule is exempt from the regulatory analysis requirements of 
the Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the 
Small Business Regulatory Enforcement Fairness Act of 1996.
    For major rules, the Congressional Review Act requires a delay 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 on the date of publication in the Federal Register. Although 
not required by APA or any other law, FCIC has chosen to request 
comments on this rule.

Executive Orders 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. The requirements in 
Executive Orders 12866 and 13563 for the analysis of costs and benefits 
apply to rules that are determined to be significant.
    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.

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?

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.

[[Page 33489]]

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 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.

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and USDA civil rights 
regulations and policies, USDA, its Agencies, offices, and employees, 
and institutions participating in or administering USDA programs are 
prohibited from discriminating based on race, color, national origin, 
religion, sex, gender identity (including gender expression), sexual 
orientation, disability, age, marital status, family or parental 
status, income derived from a public assistance program, political 
beliefs, or reprisal or retaliation for prior civil rights activity, in 
any program or activity conducted or funded by USDA (not all bases 
apply to all programs). Remedies and complaint filing deadlines vary by 
program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible Agency or USDA TARGET Center at (202) 720-2600 or 844-433-
2774 (toll-free nationwide). Additionally, program information may be 
made available in languages other than English.To file a program 
discrimination complaint, complete the USDA Program Discrimination 
Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and at any USDA office 
or write a letter addressed to USDA and provide in the letter all the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by mail to: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR Part 457

    Acreage allotments, Crop insurance, Reporting and recordkeeping 
requirements.

Final Rule

    For the reasons discussed above, FCIC amends 7 CFR part 457 as 
follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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1. The authority citation for 7 CFR part 457 continues to read as 
follows:

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


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2. Amend Sec.  457.101 as follows:
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a. Revise the introductory text;
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b. In section 1:
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i. In the definition of ``Khorasan'', remove the phrase ``to be'';
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ii. Revise the definition of ``Latest final planting date''; and
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iii. In the definition of ``Small grains'', add the phrase ``or as 
otherwise specified in the actuarial documents'' at the end;
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c. Revise section 2;
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d. In section 3:
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i. In paragraph (a), remove the semicolon at the end and add a period 
in its place; and
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ii. Revise paragraph (b)(2);
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e. In section 5, in the introductory text, remove the phrase ``Special 
Provisions'' and add in its place the phrase ``actuarial documents'';
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f. In section 6, remove paragraph (e);
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g. In section 7:
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i. In paragraph (a)(1) introductory text, remove the word ``oats,'' and 
add a comma after ``flax''; and
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ii. Revise paragraphs (a)(2) introductory text, (a)(2)(ii) thorough 
(iv), (c)(2)(v) introductory text, and (c)(2)(v)(A), (B), (D), and (E);
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h. In section 9:
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i. In paragraph (a)(2), remove the phrase ``winter coverage 
endorsement'' and add in its place the phrase ``Winter Coverage 
Endorsement'';
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ii. In paragraph (a)(4), remove the phrase ``final planting date'' and 
add in its place the word ``type'';
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iii. In paragraph (a)(5), remove the word ``fall'' and add the word 
``winter'' in all places where it appears;
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iv. Revise paragraph (b);
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v. In paragraph (c)(2)(i), add a comma after ``flax''; and
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vi. In paragraph, (e) remove the phrase ``crop type'' and add the word 
``type'' in all places where it appears;
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i. In section 11:
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i. Revise paragraphs (d)(1)(iii) and (iv);

[[Page 33490]]

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ii. Add paragraph (d)(1)(v); and
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iii. In paragraph (d)(4), remove the phrase ``contained in'' and add in 
its place the phrase ``calculated in accordance with'';
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j. In section 12, remove the word ``fall'' and add the word ``winter'' 
in all places where it appears; and
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k. Revise section 13.
    The revisions and additions read as follows:


Sec.  457.101  Small grains crop insurance provisions.

    The Small Grains Crop Insurance Provisions for the 2022 and 
succeeding crop years are as follows:
* * * * *
    1. Definitions.
* * * * *
    Latest final planting date. (a) The final planting date for the 
spring type in all counties for which the Special Provisions designate 
a spring type only;
    (b) The final planting date for the winter type in all counties for 
which the Special Provisions designate a winter type only; or
    (c) The final planting date for the spring type in all counties for 
which the Special Provisions designate both spring and winter types.
* * * * *
    2. Unit Division.
    (a) In addition to enterprise units provided in section 34(a) of 
the Basic Provisions, for wheat only, you may elect separate enterprise 
units by type, as provided in this section, if allowed by the actuarial 
documents. If you elect enterprise units by type, you may not elect 
enterprise or optional units by irrigation practices.
    (1) You may elect separate enterprise units by type unless 
otherwise specified in the Special Provisions. For example, if you have 
winter and spring types, you may elect one enterprise unit for the 
spring type or one enterprise unit for the winter type, or separate 
enterprise units for both types. Any acreage which is not reported and 
insured as an enterprise unit will be insured as basic or optional 
units, if requirements are met. For example, if you only have winter 
and spring types, you may have an enterprise unit for the winter type 
acreage and basic or optional units for the spring type acreage.
    (2) You must separately meet the requirements in section 34(a)(4) 
of the Basic Provisions for each enterprise unit.
    (3) If you elected separate enterprise units for multiple types and 
we discover enterprise unit qualifications are not separately met for 
all types in which you elected enterprise unit and such discovery is 
made:
    (i) On or before the acreage reporting date, you may elect to 
insure:
    (A) All types in which you elected an enterprise unit for meeting 
the requirements in section 34(a)(4) as separate enterprise units, and 
basic or optional units for any acreage that is not reported and 
insured as an enterprise unit, whichever you report on your acreage 
report and for which you qualify;
    (B) One enterprise unit for all acreage of the crop in the county 
provided you meet the requirements in section 34(a)(4); or
    (C) Basic or optional units for all acreage of the crop in the 
county, whichever you report on your acreage report and for which you 
qualify; or
    (ii) At any time after the acreage reporting date, your unit 
structure will be one enterprise unit for all acreage of the crop in 
the county provided you meet the requirements in section 34(a)(4). 
Otherwise, we will assign the basic unit structure for all acreage of 
the crop in the county.
    (4) If you elected an enterprise unit for only one type and we 
discover you do not qualify for an enterprise unit for that type and 
such discovery is made:
    (i) On or before the acreage reporting date, your unit division for 
all acreage of the crop in the county will be based on basic or 
optional units, whichever you report on your acreage report and for 
which you qualify; or
    (ii) At any time after the acreage reporting date, we will assign 
the basic unit structure for all acreage of the crop in the county.
    (b) In addition to, or instead of, establishing optional units as 
provided in section 34(c) of the Basic Provisions, for wheat only, 
separate optional units may be established for each wheat type 
(designated in actuarial documents and including any type insured by 
written agreement) if each optional unit contains only initially-
planted acreage of the type.
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (b) * * *
    (2) In counties with both winter and spring sales closing dates for 
the insured crop (excluding counties that have a spring sales closing 
date and a winter sales closing date only applicable to the Winter 
Coverage Endorsement):
    (i) If you do not have any insurable winter-planted acreage of the 
insured crop, you may change your coverage level, or your percentage of 
projected price (if you have yield protection), or elect revenue 
protection or yield protection, until the spring sales closing date; or
    (ii) If you have any insurable winter-planted acreage of the 
insured crop, you may not change your coverage level, or your 
percentage of projected price (if you have yield protection), or elect 
revenue protection or yield protection, after the winter sales closing 
date. Winter-planted acreage of the insured crop must be reported and 
insured if it meets the requirements in section 6.
* * * * *
    7. Insurance Period.
* * * * *
    (a) * * *
    (2) For barley, oat, and wheat, the following limitations apply:
* * * * *
    (ii) Whenever the Special Provisions designate only a winter type, 
any acreage of winter barley, oats, or wheat damaged before such final 
planting date, to the extent that producers in the area would normally 
not further care for the crop, must be replanted to a winter type of 
the insured crop unless we agree that replanting is not practical.
    (iii) Whenever the Special Provisions designate both winter and 
spring types:
    (A) Any winter barley, oat, or wheat acreage that is damaged before 
the spring final planting date, to the extent that producers in the 
area would normally not further care for the crop, must be replanted to 
a winter type of the insured crop to maintain insurance based on the 
winter type unless we agree that replanting is not practical. If it is 
not practical to replant to the winter type of barley, oats, or wheat, 
but is practical to replant to a spring type, you must replant to a 
spring type to keep your insurance based on the winter type in force.
    (B) Any winter barley, oat, or wheat acreage that is replanted to a 
spring type of the same crop when it was practical to replant the 
winter type will be insured as the spring type and the production 
guarantee, premium, projected price, and harvest price applicable to 
the spring type will be used. In this case, the acreage will be 
considered to be initially planted to the spring type.
    (C) Notwithstanding sections 7(a)(2)(iii)(A) and (B), if you have 
elected coverage under a barley or wheat Winter Coverage Endorsement 
(if available in the county), insurance will be in accordance with the 
endorsement.
    (D) Any winter barley, oat, or wheat acreage planted after the end 
of the late planting period will not be insured unless you request such 
coverage on or before the spring sales closing date, and we inspect and 
determine that the

[[Page 33491]]

acreage has an adequate stand in the spring to produce the yield used 
to determine your production guarantee. However, if we fail to inspect 
the acreage by the spring final planting date, insurance will attach as 
specified in section 7(a)(2)(iii)(D)(3).
    (1) Your request for coverage must include the location and number 
of acres of winter barley, oats, or wheat.
    (2) The winter barley, oats, or wheat will be insured as a spring 
type for the purpose of the production guarantee, premium, projected 
price, and harvest price, if applicable.
    (3) Insurance will attach to such acreage on the date we determine 
an adequate stand exists or on the spring final planting date if we do 
not determine adequacy of the stand by the spring final planting date.
    (iv) Whenever the Special Provisions designate a spring type, any 
spring barley, oat, or wheat acreage damaged before such final planting 
date, to the extent that producers in the area would normally not 
further care for the crop, must be replanted to a spring type of the 
insured crop unless we agree that replanting is not practical.
    (v) Whenever the Special Provisions designate only a spring type, 
any winter barley, oat, or wheat acreage will not be insured unless you 
request such coverage on or before the spring sales closing date, and 
we inspect and give written confirmation that the acreage has an 
adequate stand in the spring to produce the yield used to determine 
your production guarantee. However, if we fail to inspect the acreage 
by the spring final planting date, insurance will attach as specified 
in section 7(a)(2)(v)(C).
    (A) Your request for coverage must include the location and number 
of acres of winter barley, oats, or wheat.
    (B) The winter barley, oats, or wheat will be insured as a spring 
type for the purpose of the production guarantee, premium, projected 
price, and harvest price, if applicable.
* * * * *
    (D) Any such winter barley, oats, or wheat acreage that is damaged 
after it is accepted for insurance but before the spring final planting 
date, to the extent that producers in the area would normally not 
further care for the crop, must be replanted to a spring type of the 
insured crop unless we agree it is not practical to replant.
    (E) If winter-planted acreage is not to be insured it must be 
recorded on the acreage report as uninsured winter-planted acreage.
* * * * *
    9. Replanting Payments.
* * * * *
    (b) No replanting payment will be made for acreage initially 
planted to a winter type of the insured crop (including rye) in any 
county for which the Special Provisions contain only a winter type.
* * * * *
    11. Settlement of Claim.
* * * * *
    (d) * * *
    (1) * * *
    (iii) 14.0 percent for oats;
    (iv) 16.0 percent for rye and buckwheat; or
    (v) As otherwise provided in the Special Provisions.
* * * * *
    13. Prevented Planting.
    Your prevented planting coverage will be a percentage specified in 
the actuarial documents of your production guarantee for timely planted 
acreage. If you have additional coverage and pay an additional premium, 
you may increase your prevented planting coverage if such additional 
coverage is specified in the actuarial documents. In counties for which 
the Special Provisions designate a spring type, your prevented planting 
production guarantee will be based on your approved yield for spring-
planted acreage of the insured crop.


Sec.  457.118  [Removed and Reserved]

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3. Remove and reserve Sec.  457.118.

Richard Flournoy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2021-13113 Filed 6-24-21; 8:45 am]
BILLING CODE 3410-08-P