Area Risk Protection Insurance Regulations and Common Crop Insurance Policy Basic Provisions, 34606-34611 [2021-13939]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 86, Number 123 (Wednesday, June 30, 2021)]
[Rules and Regulations]
[Pages 34606-34611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13939]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 407 and 457

[Docket ID FCIC-21-0005]
RIN 0563-AC74


Area Risk Protection Insurance Regulations and Common Crop 
Insurance Policy Basic 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 Area 
Risk Protection Insurance (ARPI) Regulations and Common Crop Insurance 
Policy (CCIP), Basic Provisions. The intended effect of this action is 
to improve unit provisions and organic farming practice provisions, 
revise the definition of veteran farmer or rancher, and clarify 
provisions. The changes to the policy made in this rule are applicable 
for the 2022 and succeeding crop years for crops with a contract change 
date on or after June 30, 2021. For all other crops, the changes to the 
policy made in this rule are applicable for the 2023 and succeeding 
crop years.

DATES: 
    Effective date: This final rule is effective June 30, 2021.
    Comment date: We will consider comments that we receive by the 
close of business August 30, 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-21-0005. Follow the 
instructions for submitting comments.
     Mail: Director, Product Administration and Standards 
Division, Risk Management Agency (RMA), US Department of Agriculture, 
P.O. Box 419205, Kansas City, MO 64133-6205. In your comment, specify 
docket ID FCIC-21-0005.
    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

    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 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.
    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 (7 CFR 407) and the CCIP 
Basic Provisions (7 CFR 457.8). The changes to the policy made in this 
rule are applicable for the 2022 and succeeding crop years for crops 
with a contract change date on or after June 30, 2021. For all other 
crops, the changes to the policy made in this rule are applicable for 
the 2023 and succeeding crop years. These changes resulted from public 
comments received on two final rules with request for comment.

[[Page 34607]]

Comments Related to 85 FR 38749-38760 Published June 29, 2020

    The first final rule with request for comment was published in the 
Federal Register on June 29, 2020, (85 FR 38749-38760) amending the 
ARPI Regulations; CCIP Basic Provisions; and the Common Crop Insurance 
Regulations, Coarse Grains Crop Insurance Provisions (Coarse Grains 
Crop Provisions). Comments were received from five commenters. Three 
comments were from individuals, whose comments were unrelated to the 
rule. One comment was from an insurance company. The last comment was 
from a trade association. FCIC addressed editorial comments in the 
final rule with request for comment published in the Federal Register 
on November 30, 2020, (85 FR 76420-76428). The public comments and FCIC 
responses regarding the Coarse Grains Crop Provisions will be addressed 
in a future final rule. The non-editorial public comments received 
regarding the June 29, 2020, final rule with request for comment 
related to the ARPI Basic Provisions and CCIP Basic Provisions and 
FCIC's responses to the comments are as follows:
    Comment: In the definition of ``second crop'' a commenter 
questioned whether the 60 percent actual production history (APH) 
penalty to the first insured crop described in section 3(i) would be 
applicable when a cover crop or volunteer crop is hayed, grazed, 
silaged, etc.
    Response: No changes were made to the APH penalty within the June 
29, 2020 rule; therefore, no additional changes will be made.
    Comment: A commenter asked for the term ``otherwise harvested'' to 
be defined as it is a key term used in first and second crop provisions 
and determinations in prevented planting situations. Currently, the 
term is defined in the Prevented Planting Standards Handbook (PPSH), 
but this definition has changed in the past and is subject to change 
again unless codified in the Rule.
    Response: FCIC does not agree and will not add the definition to 
the CCIP Basic Provisions. The PPSH defines ``otherwise harvested'' as 
``harvested for reasons other than for haying, grazing, or cutting for 
silage, haylage, or baleage. This could be for grain, seed, etc.'' No 
change will be made.
    Comment: A commenter suggested clarifying the double cropping 
provisions and the example in section 15(h)(7) as it is unclear as to 
whether there is a precedence based on which of the two crops under 
different plans of insurance is the first insured crop.
    Response: FCIC understands the confusion when considering two crops 
under different plans of insurance and needing to determine which crop 
is the first insured crop. As explained in the June 29, 2020, final 
rule, the change to section 15(h)(7) was intended to address the 
provisions that each insured crop is required to follow to determine if 
the double cropping requirements have been met. Given the nature of the 
issues that can come up if the two crops are under different plans, 
FCIC is working with stakeholders to determine what change is 
appropriate. Any related change to the regulation will be in a future 
rulemaking.
    Comment: A commenter had concerns regarding the phrase ``than 
determined in 15(i)'' in section 15(i)(3). As item 15(i)(3) is situated 
within 15(i), it would be clearer if the specific item(s) of this 
subsection was referenced.
    Response: FCIC agrees and has clarified this section is referencing 
the introductory paragraph of section 15(i).
    Comment: Two commenters recommended removing the requirement of a 
notice of loss to be filed in the quality loss provisions contained in 
section 36(a)(3).
    Response: FCIC does not agree with the recommended change to remove 
the notice of loss provisions. The Quality Loss Option allows insureds 
to replace post-quality adjustment production amounts with pre-quality 
adjustment production amounts in their APH database for a given crop 
year. Pre-quality adjustment and post-quality adjustment production 
amounts are entry items on the production worksheet that is completed 
by the AIP during the loss adjustment process. To maintain program 
integrity and actuarial soundness, it is pertinent to capture 
consistent production amounts across various crops and diverse farming 
operations. If there is not a notice of loss filed when there is a 
quality loss, the AIP will not be able to capture the appropriate 
production amounts on the production worksheet that are required to 
elect the quality loss option. Without a notice of loss provision in 
place, AIPs will be inconsistent when determining acceptable production 
records that may qualify for the quality loss option, resulting in 
varying AIP determinations and disparate treatment amongst insureds.
    When there is a payable loss, AIPs will submit the production 
report entries to FCIC using the Policy Acceptance Storage System 
(PASS). In a situation where there is a quality loss, but not a payable 
loss, AIPs will have the completed production worksheet in their 
internal loss files to get the proper production amounts required to 
elect the quality loss option. No change will be made.
    Comment: A commenter stated the requirement to give the AIP notice 
of loss to allow replacement of post-quality actual yields for the 
previous crop year is currently only stated within section 36. Section 
14 contains the requirements regarding notices a producer must provide 
to their AIP in the event of a loss. As this is implied to be a 
function of the loss process, the provisions should be in section 14 as 
well, so the producer is provided proper communication of this 
requirement.
    Response: FCIC agrees and is adding a new section 14(b)(6) to state 
the producer must give the AIP a notice of loss due to an insurable 
cause in the year of the crop loss to replace post-quality actual 
yields with actual yields prior to quality loss adjustment.

Comments Related to 85 FR 76420-76428 Published November 30, 2020

    The second final rule with request for comment was published in the 
Federal Register on November 30, 2020, (85 FR 76420-76428) amending the 
Area Risk Protection Insurance (ARPI) Regulations; Common Crop 
Insurance Policy (CCIP), Basic Provisions; Common Crop Insurance 
Regulations, Sunflower Seed Crop Insurance Provisions (Sunflower Seed 
Crop Provisions); and Common Crop Insurance Regulations, Dry Pea Crop 
Insurance Provisions (Dry Pea Crop Provisions). Comments were received 
from three commenters. One from an individual who simply stated they 
agreed with the rule, one from a trade association, and one from an 
individual. The public comments received regarding the November 30, 
2020, final rule with request for comment and FCIC's responses to the 
comments are as follows:
    Comment: A commenter noted section 15(h)(7) deals with situations 
where a ``planted'' second crop follows a first insured crop. As such, 
it would not be applicable to the provisions of section 17(f)(4) in 
situations where both the 1st insured and 2nd crops were prevented from 
planting nor where a 1st insured crop was planted and a 2nd crop was 
prevented. It would therefore appear appropriate to add the text of 
section 15(h)(7) to section 17(f)(4).
    Response: As stated above, FCIC is working with stakeholders to 
determine what change is appropriate in section 15(h)(7) and plans to 
make corresponding changes in section 17(f)(4). Any related change to 
the

[[Page 34608]]

regulation will be in a future rulemaking.
    Comment: A commenter noted in section 17(e)(2) that an ``uninsured 
second crop'' would include: (1) A second crop planted after the Late 
Planting Period (LPP) or the Final Plant Date (if a LPP was not 
applicable); and (2) A second crop which an insured elected not to 
insure under the first and second crop provisions in order to preserve 
a 100% indemnity for the 1st insured crop. The commenter had program 
vulnerability concerns and suggested a clarification or that the 
provision be removed. The situation is rare, and the proposed remedy is 
unnecessary and has added significant complexity to the provision, 
along with increasing the likelihood the provisions will apply to 
situations other than those intended. This is due to the provision 
applying to every ``uninsured 2nd crop'' following a failed first 
insured crop.
    Response: This change was made to address the concern that in this 
situation the same physical acres are subtracted twice from the overall 
prevented planting eligible acres. This occurrence is extremely rare, 
but in years where widespread prevented planting is prevalent, such as 
in 2019, the provision provides important coverage for producers. No 
change will be made.
    Comment: A commenter recommended adding the phrase ``practice'' in 
section 17(f)(1)(iv) like section 17(f)(1)(i).
    Response: FCIC will revise section 17(f)(1)(iv) for consistency.
    Comment: A commenter suggested clarifying in section 17(f)(1) if 
proof of the rotation alone is sufficient or whether both proof of the 
rotation and inputs are required regarding the phrase ``or that acreage 
was part of a crop rotation.''
    Response: FCIC believes the wording is clear regarding the phrase 
``or that acreage was part of a crop rotation.'' The word ``or'' being 
used at the beginning of this phrase means that proof of rotation alone 
is sufficient. No change will be made.
    Comment: Regarding section 17(f)(8), a commenter requested a system 
be in place to support the increase in seeking and verifying this 
information for policies that have transferred between agents and AIPs.
    Response: FCIC encourages producers to work with their agent in 
providing documentation. AIPs have access to data that can assist with 
verifying insurance history. There are other methods such as satellite 
imagery that may be beneficial when proving if a crop was planted and 
harvested.
    Comment: A commenter disagreed with the change in section 17(f)(8) 
and stated it negatively impacted farmers in California by eliminating 
prevented planting payments to farmers who leased land that is 
fallowed, unless the fallowed land is farmed the next two years, 
regardless of water availability and other challenges inherent in 
production agriculture. The land will be eligible only if the entire 
leased acreage is in production in at least one year out of four. A 
commenter suggested to phase in the new ``1 in 4'' requirement over 4 
years to allow farmers who use prevented planting coverage sufficient 
time to modify existing farming practices as needed (e.g., install 
irrigation systems, acquire water, and secure related financing).
    Response: The ``1 in 4'' requirement applies specifically to 
physical acreage (land); not the producer, the lease, or the farming 
operation. No change will be made.
    In addition to the changes described above, FCIC has made the 
following changes:

ARPI Basic Provisions and CCIP Basic Provisions

    For both ARPI Basic Provisions (7 CFR 407) and CCIP Basic 
Provisions (7 CFR 457.8), FCIC is revising the definition of ``veteran 
farmer or rancher'' in section 1 to allow the spouse's veteran status 
not to impact whether a person is considered a veteran farmer or 
rancher. The provisions define ``person'' as an individual, 
partnership, association, corporation, estate, trust, or other legal 
entity, and wherever applicable, a State or a political subdivision or 
agency of a State. The word ``person'' does not include the United 
States Government or any agency thereof. The provisions state all 
entity substantial beneficial interest holders must qualify 
individually as a veteran. The change to the definition of ``veteran 
farmer or rancher'' will clarify the exception that allows a legal 
entity, comprised only of the veteran and their spouse, to qualify as a 
veteran farmer or rancher when a qualifying veteran has a non-veteran 
spouse. For example, a veteran starts farming and forms a corporation 
with their non-veteran spouse. The veteran meets the veteran farmer or 
rancher requirements, but the spouse is a non-veteran. With this 
change, their corporation would qualify as a veteran farmer or rancher.

ARPI Basic Provisions

    Other changes applicable only to the ARPI Basic Provisions (7 CFR 
407) are:
    Section 1--FCIC is revising the definition of ``acreage reporting 
date'' to replace the term ``actuarial documents'' with ``Special 
Provisions.'' This change is being made to be consistent with the CCIP 
Basic Provisions.
    FCIC is removing the definition of ``NASS'' (National Agricultural 
Statistics Service) for greater transparency regarding the data used to 
determine area yield guarantees and indemnities, because FCIC no longer 
uses NASS data but instead RMA data. In addition to removing the 
definition, FCIC is removing any references to NASS data throughout the 
provisions. Therefore, FCIC is removing paragraph 15(e) and 
redesignating paragraphs (f) and (g) as (e) and (f).

CCIP Basic Provisions

    Other changes applicable only to the CCIP Basic Provisions (7 CFR 
457.8) are:
    Section 34--FCIC is adding a new section 34(a)(4)(ix) to allow Crop 
Provisions to have enterprise units (EU) by practice, type, or other 
insurance features. In 2018, FCIC developed the multi-county enterprise 
unit (MCEU) endorsement. For the 2020 crop year, EUs by cropping 
practice for following another crop and not following another crop 
(FAC/NFAC) were made available in select grain sorghum and soybean 
counties. For the 2021 crop year, when a producer elects and fails to 
qualify for EUs on both irrigation or cropping practices they have an 
additional option to keep EU on practice that meets EU qualifications 
and have basic or optional units on the other practice that does not 
meet EU qualifications. For example, a producer elects EU for both FAC 
and NFAC cropping practices, but does not qualify for EU for both 
practices. If discovery for not qualifying is on or before the acreage 
reporting date, the producer has an additional option to elect an EU on 
one cropping practice and basic or optional units on the other cropping 
practice. FCIC continues to receive requests from stakeholders to add 
the EU structure for a crop or allow the EU structure on a different 
basis than currently allowed. FCIC continues to review these requests 
individually to determine the feasibility of implementing the EU 
request. With this change, FCIC will have the flexibility to make these 
subsequent EU changes in individual Crop Provisions.
    Section 37--FCIC is revising sections 37(c) and (e) to allow a 
producer to report acreage as certified organic, or as acreage in 
transition to organic, when the producer certifies that they have 
requested, in writing, a written certification or other written 
documentation from a certifying agent

[[Page 34609]]

on or before the acreage reporting date (ARD). The producer may notify 
their insurance agent by phone, email, text, or other electronic 
communication method. Following the notification, the organic plan or 
certificate must be in place prior to coverage ending in accordance 
with the policy. The producer's acreage will remain insured under the 
practice reported on the acreage reporting date unless they have a 
loss. If the producer has a loss and does not have a certificate or 
plan in place at the time the claim is finalized, then the acreage will 
be insured under the practice for which it qualifies.
    Currently, policy requires producers with certified organic or 
acreage in transition to organic to have written certification or 
written documentation from a certifying agent by the ARD which shows an 
organic plan is in effect for the acreage. Procedures allow that a 
certificate and plan must be in place each year to qualify for organic 
or organic transitional practices. A previous certificate or plan may 
be used to qualify for insurance until a plan can be updated by a 
certifying agent.
    The organic industry presented concerns to FCIC, Farm Service 
Agency, and Agricultural Marketing Service regarding producers' 
inability to have organic plans and certificates ``in effect'' by their 
crop insurance policy ARD due to COVID restrictions limiting travel and 
face to face interaction. To mitigate these concerns and provide 
flexibility, FCIC provided relief through Manager's Bulletins: MGR-20-
0013 and MGR-20-0026 and is incorporating the Manager's Bulletins in 
this rule. With this change, FCIC recognizes the on-going challenges 
that the organic producers face and provides flexibility, while also 
ensuring the Federal crop insurance program continues to serve as a 
vital risk management tool and organic regulations remain in effect.

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.
    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 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 June 30, 2021. 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.

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

[[Page 34610]]

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

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 2022 and succeeding crop years for crops with a 
contract change date on or after June 30, 2021, and for the 2023 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 by:
0
a. In section 1:
0
i. Revise the definition of ``acreage reporting date'';
0
ii. Remove the definition of ``NASS''; and
0
iii. Revise the definition of ``veteran farmer or rancher;''
0
b. In section 15:
0
i. Remove paragraph (e);
0
ii. Redesignate paragraphs (f) and (g) as paragraphs (e) and (f); and
0
iii. Revise redesignated paragraph (f).
    The revisions read as follows:


Sec.  407.9  Area risk protection insurance policy.

* * * * *
1. Definitions
* * * * *
    Acreage reporting date. The date contained in the Special 
Provisions by which you are required to submit your acreage report.
* * * * *
    Veteran farmer or rancher.
    (1) An individual who has served active duty in the United States 
Army, Navy, Marine Corps, Air Force, or Coast Guard, including the 
reserve components; was discharged or released under conditions other 
than dishonorable; and:
    (i) Has not operated a farm or ranch;
    (ii) Has operated a farm or ranch for not more than 5 years; or
    (iii) First obtained status as a veteran during the most recent 5-
year period.
    (2) A person, other than an individual, may be eligible for veteran 
farmer or rancher benefits if all substantial beneficial interest 
holders qualify individually as a veteran farmer or rancher in 
accordance with paragraph (1) of this definition; except in cases in 
which there is only a married couple, then a veteran and non-veteran 
spouse are considered a veteran farmer or rancher.
* * * * *
15. Yields
* * * * *
    (f) Yields used under this insurance program for a crop may be 
based on crop insurance data, other USDA data, or other data sources, 
if elected by FCIC.
* * * * *

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. In section 1 of the ``Common Crop Insurance Policy,'' revise the 
definition of ``veteran farmer or rancher'';
0
b. In section 14 of the ``Common Crop Insurance Policy,'' add paragraph 
(b)(6);
0
c. In section 15 of the ``Common Crop Insurance Policy,'' in paragraph 
(i)(3), add the phrase ``the introductory paragraph of section'' after 
the phrase ``than determined in'';

[[Page 34611]]

0
d. In section 17 of the ``Common Crop Insurance Policy,'' revise 
paragraph (f)(1)(iv);
0
e. In section 34 of the ``Common Crop Insurance Policy,'' add paragraph 
(a)(4)(ix); and
0
f. In section 37 of the ``Common Crop Insurance Policy,'' revise 
paragraphs (c) and (e).
    The additions and revisions read as follows:


Sec.  457.8  The application and policy.

* * * * *

Common Crop Insurance Policy

* * * * *
1. Definitions
* * * * *
    Veteran farmer or rancher. (1) An individual who has served active 
duty in the United States Army, Navy, Marine Corps, Air Force, or Coast 
Guard, including the reserve components; was discharged or released 
under conditions other than dishonorable; and:
    (i) Has not operated a farm or ranch;
    (ii) Has operated a farm or ranch for not more than 5 years; or
    (iii) First obtained status as a veteran during the most recent 5-
year period.
    (2) A person, other than an individual, may be eligible for veteran 
farmer or rancher benefits if all substantial beneficial interest 
holders qualify individually as a veteran farmer or rancher in 
accordance with paragraph (1) of this definition; except in cases in 
which there is only a married couple, then a veteran and non-veteran 
spouse are considered a veteran farmer or rancher.
* * * * *
14. Duties in the Event of Damage, Loss, Abandonment, Destruction, or 
Alternative Use of Crop or Acreage
* * * * *
    (b) * * *
    (6) You must give us notice in accordance with section 36(a)(3) to 
replace post-quality actual yields for previous crop years.
* * * * *
17. Prevented Planting
* * * * *
    (f) * * *
    (1) * * *
    (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, 
crop type, or follow both practices on the acreage (including, but not 
limited to inputs purchased, applied or available to apply, or that 
acreage was part of a crop rotation).
* * * * *
34. Units
    (a) * * *
    (4) * * *
    (ix) You may elect enterprise units as allowed by the Crop 
Provisions if provided in the actuarial documents.
* * * * *
37. Organic Farming Practices
* * * * *
    (c) You must provide the following organic records, as applicable:
    (1) By the acreage reporting date, except as allowed by section 
37(c)(2), you must have:
    (i) For certified organic acreage, a written certification in 
effect from a certifying agent indicating the name of the entity 
certified, effective date of certification, certificate number, types 
of commodities certified, and name and address of the certifying agent 
(A certificate issued to a tenant may be used to qualify a landlord or 
other similar arrangement).
    (ii) For transitional acreage, a certificate as described in 
section 37(c)(1)(i), or written documentation from a certifying agent 
indicating an organic plan is in effect for the acreage.
    (iii) For certified organic and transitional acreage, records from 
the certifying agent showing the specific location of each field of 
certified organic, transitional, buffer zone, and acreage not 
maintained under organic management.
    (2) If you do not meet the requirements in section 37(c)(1)(i) or 
(ii), you must provide documentation that you have requested, in 
writing, your written certification or organic plan by the acreage 
reporting date.
    (i) Your certificate or plan must be in effect prior to the earlier 
of the end of the insurance period or when coverage ends as provided in 
section 11(b).
    (ii) Your acreage will remain insured under the practice you 
reported on the acreage reporting date unless you have a loss. If you 
have a loss and do not have a certificate or plan in place at the time 
the claim is finalized in accordance with the applicable policy 
provisions, then your acreage will be insured under the practice for 
which it qualifies.
* * * * *
    (e) If any acreage qualifies as certified organic or transitional 
acreage on the date you report such acreage, and such certification is 
subsequently revoked or suspended by the certifying agent, or the 
certifying agent does not consider the acreage as transitional acreage 
for the remainder of the crop year, that acreage will remain insured 
under the reported practice for which it qualified at the time the 
acreage was reported. Any loss due to failure to comply with organic 
standards will be considered an uninsured cause of loss.
* * * * *

Richard H. Flournoy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 2021-13939 Filed 6-29-21; 8:45 am]
BILLING CODE 3410-08-P