Increasing Crop Insurance Flexibility for Sugar Beets, 72859-72862 [2022-25531]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 87, Number 227 (Monday, November 28, 2022)]
[Rules and Regulations]
[Pages 72859-72862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25531]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 87, No. 227 / Monday, November 28, 2022 / 
Rules and Regulations

[[Page 72859]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AC81
[Docket ID FCIC-22-0009]


Increasing Crop Insurance Flexibility for Sugar Beets

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, Sugar Beet Crop Insurance 
Provisions. This rule will reinstate stage guarantees and make the 
stage removal option permanent to ensure all producers have maximum 
flexibility to obtain the crop insurance coverage they need for their 
operation. The changes will be effective for the 2023 and succeeding 
crop years for counties with a contract change date on or after 
November 30, 2022, and for the 2024 and succeeding crop years for 
counties with a contract change date prior to November 30, 2022.

DATES: 
    Effective date: November 28, 2022.
    Comment date: We will consider comments that we receive by the 
close of business January 27, 2023. 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 going through the Federal eRulemaking Portal as 
follows:
     Federal eRulemaking Portal: Go to https://www.regulations.gov and search for Docket ID FCIC-22-0009. Follow the 
instructions for submitting comments.
    All comments will be posted without change and will be publicly 
available on 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. 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. 
Throughout this rule, the terms ``Crop Provisions,'' ``Special 
Provisions,'' and ``policy'' are used as defined in the Common Crop 
Insurance Policy (CCIP) Basic Provisions in 7 CFR 457.8. Additional 
information and definitions related to Federal crop insurance policies 
are in 7 CFR 457.8.
    FCIC amends the Common Crop Insurance Regulations by revising 7 CFR 
457.109 Sugar Beet Crop Insurance Provisions to be effective for the 
2023 and succeeding crop years for counties with a contract change date 
on or after November 30, 2022, and for the 2024 and succeeding crop 
years for counties with a contract change date prior to November 30, 
2022.
    The changes to 7 CFR 457.109 Sugar Beet Crop Insurance Provisions 
are to reintroduce stage guarantees and add a new section with a stage 
removal option.
    Stage guarantees provide progressive yield production guarantees 
for the crop as production costs accumulate through the growing season. 
For sugar beets, the first stage provides a 60% production guarantee 
from the date of planting until the earlier of thinning or 90 days 
after planting in California, or until July 1 in all other States. The 
final stage provides a 100% production guarantee thereafter. During the 
first stage, producers would have incurred fewer input costs. A lower 
stage guarantee during that time is more reflective of their costs. By 
the time the crop reaches the final stage, the majority of the 
producer's costs would already have been incurred and the higher (100%) 
production guarantee is more reflective of their inputs. Because 
indemnity payments are lower for losses during the first stage, stage 
guarantees provide a lower-cost crop insurance option for producers. 
The lower premium costs are allowed in exchange for receiving a lower 
guarantee (60%) for losses that occur during the first stage of the 
crop's growth.
    Following discussions with the American Sugar Beet Growers 
Association, FCIC removed stage guarantees from the Crop Provisions in 
the Common Crop Insurance Regulations; Sugar Beet Crop Insurance 
Provisions final rule, published in the Federal Register on September 
10, 2018 (83 FR 45535). In response to public comments, FCIC made 
additional changes in the Common Crop Insurance Regulations; Sugar Beet 
Crop Insurance Provisions final rule published in the Federal Register 
on November 29, 2019 (84 FR 65627). At that time, public comments 
favored the removal of stage guarantees from the policy. Prior to the 
2018 final rule, there had been a Sugar Beet Stage Removal Option Pilot 
(SBSROP) endorsement to the Crop Provisions that allowed a producer to 
pay extra premium in exchange for removal of stage guarantees from 
their policy (and thereby receive the final stage guarantee for 
insurable losses incurred at any time during the growing season). At 
that time, FCIC determined a large majority of producers elected the 
SBSROP endorsement and sugar beet producers expressed interest in 
permanently removing stage guarantees from the policy. Since the 
removal of stage guarantees with the 2018 final

[[Page 72860]]

rule, however, FCIC has heard complaints from a small number of 
producers that they can no longer afford to purchase the level of 
coverage they once benefitted from. The few producers who had not 
previously purchased the stage removal option have faced hardships from 
the higher cost of insurance.
    In this rule, FCIC will reinstate stage guarantees and make the 
stage removal option permanent to ensure all producers have maximum 
flexibility to obtain the crop insurance coverage they need for their 
operation. The specific changes to the Crop Provisions to allow 
optional stage guarantees include:
    FCIC is adding a definition for ``production guarantee (per acre)'' 
which specifies: (1) First stage production guarantee--The final stage 
production guarantee multiplied by 60 percent; and (2) Final stage 
production guarantee--The number of pounds of raw sugar determined by 
multiplying the approved yield per acre by the coverage level 
percentage you elect.
    FCIC is specifying how production guarantees are computed for 
polices with stage guarantees in section 3. The production guarantees 
are progressive by stages and increase at specified intervals to the 
final stage. The first stage has a guarantee of 60 percent (60%) of the 
final stage production guarantee. The first stage extends from planting 
until the earlier of thinning or 90 days after planting in California; 
and July 1 in all other States. The final stage has a guarantee of 100 
percent (100%) of the final stage production guarantee. The final stage 
applies to all insured sugar beets that complete the first stage. Any 
acreage of sugar beets damaged in the first stage to the extent that 
growers in the area would not normally further care for the sugar beets 
will be deemed to have been destroyed, even though you may continue to 
care for it. The production guarantee for such acreage will not exceed 
the first stage production guarantee.
    FCIC is specifying how annual premiums are computed for policies 
with stage guarantees in a new section 7. The new section 7 ``Annual 
Premiums'' matches the corresponding section 7 in the Basic Provisions. 
As a result of inserting a new section into the Crop Provisions, FCIC 
is redesignating subsequent sections of the Crop Provisions as sections 
8 through 16. In lieu of the premium computation method contained in 
section 7 of the Basic Provisions, the annual premium amount is 
computed by multiplying the final stage production guarantee by the 
price election, the premium rate, the insured acreage, your share at 
the time of planting, and any applicable premium adjustment factors 
contained in the actuarial documents.
    FCIC is clarifying that replanting payments determinations for 
policies with stage guarantees are based on whether the remaining stand 
will produce at least 90 percent of the final stage production 
guarantee, by adding ``final stage'' to describe which production 
guarantee is the basis of the determination in section 12.
    FCIC is clarifying how to determine production to count in the 
settlement of a claim for a policy with stage guarantees in section 
14(c). Only appraised production in excess of the difference between 
the first and final stage production guarantee for acreage that does 
not qualify for the final stage guarantee will be counted, except that 
appraised production will be counted not less than the production 
guarantee:
    1. That is abandoned;
    2. Put to another use without our consent;
    3. That is damaged solely by uninsured causes; or
    4. For which the producer fails to provide acceptable production 
records that are acceptable to the AIP.
    FCIC is adding a new section 17 ``Stage Removal Option'' to provide 
the option to remove stage guarantees. Under the stage removal option, 
the production guarantee (per acre) will be the final stage guarantee; 
any provisions referring to the first stage production guarantee are 
not applicable. The stage removal option is only available to 
policyholders with additional coverage. The option is not available 
with the Catastrophic Risk Protection Endorsement and an election of 
the Catastrophic Risk Protection Endorsement is considered a 
cancellation of the stage removal option. The option must be elected by 
the sales closing date for the first year it is in effect. Coverage 
under the option is continuously provided in subsequent years, unless 
cancelled by the policyholder by the cancellation date. All insurable 
acreage of sugar beets in the county will be included under the option 
unless any acreage is specifically excluded by the Special Provisions. 
The premium adjustment factor in the actuarial documents for the stage 
removal option will apply to the annual premium computation method 
specified in section 7.
    In addition, this rule will make corrections to grammatical and 
spelling errors and will remove the erroneous and duplicative text from 
sections 6 and 14. In the redesignated section 6, the section title and 
provision (a)(3) from the redesignated section 7 were erroneously 
placed at the end of the introductory paragraph. In the redesignated 
section 14, the text ``(f) * * *'' erroneously appears between 
paragraphs (f)(1) and (2). This rule corrects those errors.

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. 
Although not required by APA or any other law, FCIC has chosen to 
request comments on this rule.
    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.

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 emphasizes 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. Therefore, OMB has not 
reviewed this rule and analysis of the costs and benefits is not 
required under either Executive Order 12866 or Executive Order 13563.

[[Page 72861]]

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 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 Assistance Listing,\1\ to which this 
rule applies is No. 10.450--Crop Insurance.
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    \1\ See https://sam.gov/content/assistance-listings.
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Paperwork Reduction Act of 1995

    The purpose of the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35, subchapter I), among other things, are to minimize the 
paperwork burden on individuals, and to require Federal agencies to 
request and receive approval from the Office of Management and Budget 
(OMB) prior to collecting information from ten or more persons. This 
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.

[[Page 72862]]

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

0
1. The authority citation for 7 CFR part 457 continues to read as 
follows:

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


0
2. Amend Sec.  457.109 as follows:
0
a. In the introductory text, remove the phrase ``2019 and succeeding 
crop years in states with a November 30 contract change date and for 
the 2020'' and add the phrase ``2023 and succeeding crop years in 
states with a November 30 contract change date and for the 2024'' in 
its place;
0
b. In section 1, add a definition for ``Production guarantee (per 
acre)'' in alphabetical order;
0
c. Revise sections 3 and 6;
0
d. Redesignate sections 7 through 15 as sections 8 through 16;
0
e. Add a new section 7;
0
f. In newly redesignated section 10, remove the words ``actuarial 
documents'' and add ``Special Provisions'' in their place;
0
g. In the newly redesignated section 12, in paragraph (a), remove the 
words ``(90%) of the production guarantee'' and add ``(90%) of the 
final stage production guarantee'' in their place;
0
h. In the newly redesignated section 14:
0
i. In paragraph (a)(2), remove the word ``havested'' and add 
``harvested'' in its place;
0
ii. Redesignate paragraph (c)(1)(iv) as paragraph (c)(1)(v);
0
iii. Add a new paragraph (c)(1)(iv); and
0
iv. In paragraph (f) introductory text, remove the words ``actuarial 
documents'' and add ``Special Provisions'' in its place;
0
v. Remove ``(f)***'' following paragraph (f)(1);
0
i. Add section 17.
    The revisions and additions read as follows:


Sec.  457.109  Sugar Beet Crop Insurance Provisions.

* * * * *
    1. Definitions
* * * * *
    Production guarantee (per acre):
    (1) First stage production guarantee--The final stage production 
guarantee multiplied by 60 percent.
    (2) Final stage production guarantee--The number of pounds of raw 
sugar determined by multiplying the approved yield per acre by the 
coverage level percentage you elect.
* * * * *
3. Insurance Guarantees, Coverage Levels, and Prices
    (a) In addition to the requirements of section 3 of the Basic 
Provisions, you may select only one price election for all the sugar 
beets in the county insured under this policy.
    (b) The production guarantees are progressive by stages and 
increase at specified intervals to the final stage. The stages are:
    (1) First stage, with a guarantee of 60 percent (60%) of the final 
stage production guarantee, extends from planting until:
    (i) The earlier of thinning or 90 days after planting in 
California; and
    (ii) July 1 in all other States.
    (2) Final stage, with a guarantee of 100 percent (100%) of the 
final stage production guarantee, applies to all insured sugar beets 
that complete the first stage.
    (c) The production guarantee will be expressed in pounds of raw 
sugar.
    (d) Any acreage of sugar beets damaged in the first stage to the 
extent that growers in the area would not normally further care for the 
sugar beets will be deemed to have been destroyed, even though you may 
continue to care for it. The production guarantee for such acreage will 
not exceed the first stage production guarantee.
* * * * *
6. Report of Acreage
    In addition to the requirements of section 6 of the Basic 
Provisions, you must provide a copy of all production agreements to us 
on or before the acreage reporting date.
7. Annual Premium
    In lieu of the premium computation method contained in section 7 of 
the Basic Provisions, the annual premium amount is computed by 
multiplying the final stage production guarantee by the price election, 
the premium rate, the insured acreage, your share at the time of 
planting, and any applicable premium adjustment factors contained in 
the actuarial documents.
* * * * *
    14. * * *
    (c) * * *
    (1) * * *
    (iv) Only appraised production in excess of the difference between 
the first and final stage production guarantee for acreage that does 
not qualify for the final stage guarantee will be counted, except that 
all production from acreage subject to paragraphs (c)(1)(i) and (ii) of 
this section will be counted; and
* * * * *
17. Stage Removal Option
    (a) Applicability:
    (1) You must have an additional coverage policy to elect this 
option.
    (2) You must elect this option in writing on or before the sales 
closing date for the first year it is in effect.
    (3) This election is continuous, in accordance with section 2 of 
the Basic Provisions, unless canceled by the cancellation date. Your 
election of the Catastrophic Risk Protection Endorsement for your sugar 
beets in any crop year will be deemed to be cancellation of this option 
by you.
    (4) All insurable acreage of sugar beets in the county will be 
included under this option unless any acreage is specifically excluded 
by the Special Provisions.
    (b) Insurance Guarantees:
    (1) The production guarantee (per acre) will be the final stage 
guarantee.
    (2) The terms and conditions contained in sections 3(b) and 3(d) do 
not apply under this option.
    (c) Premium Adjustment Factor: The premium adjustment factor in the 
actuarial documents for the stage removal option will apply to the 
premium computation method in section 7.
    (d) Settlement of Claim:
    (1) The ``respective production guarantee'' referenced in section 
14(b) will be the final stage guarantee.
    (2) The terms and conditions of section 14(c)(1)(iv) do not apply 
under this option.

Marcia Bunger,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2022-25531 Filed 11-25-22; 8:45 am]
BILLING CODE 3410-08-P