[Federal Register Volume 78, Number 175 (Tuesday, September 10, 2013)]
[Rules and Regulations]
[Pages 55171-55174]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21826]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

[Docket No. FCIC-12-0001]
RIN 0563-AC37


Common Crop Insurance Regulations; Processing Sweet Corn Crop 
Insurance Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the 
Common Crop Insurance Regulations, Processing Sweet Corn Crop Insurance 
Provisions. The intended effect of this action is to provide policy 
changes that better meet the needs of insured producers. The changes 
will be effective for the 2014 and succeeding crop years.

DATES: This rule is effective October 10, 2013.

FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Product Administration 
and Standards Division, Risk Management Agency, United States 
Department of Agriculture, P.O. Box 419205, Stop 0812, Room 421, Kansas 
City, MO 64141-6205, telephone (816) 926-7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be not-significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the OMB.

Paperwork Reduction Act of 1995

    Pursuant to the provisions of the Paperwork Reduction Act of 1995 
(44 U.S.C. chapter 35), the collections of information in this rule 
have been

[[Page 55172]]

approved by OMB under control number 0563-0053.

E-Government Act Compliance

    FCIC is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the 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.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. The review reveals that this regulation will not have 
substantial and direct effects on Tribal governments and will not have 
significant Tribal implications.

Regulatory Flexibility Act

    FCIC certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. Program 
requirements for the Federal crop insurance program are the same for 
all producers regardless of the size of their farming operation. For 
instance, all producers are required to submit an application and 
acreage report to establish their insurance guarantees and compute 
premium amounts, and all producers are required to submit a notice of 
loss and production information to determine the amount of an indemnity 
payment in the event of an insured cause of crop loss. Whether a 
producer has 10 acres or 1000 acres, there is no difference in the kind 
of information collected. To ensure crop insurance is available to 
small entities, the Federal Crop Insurance Act authorizes FCIC to waive 
collection of administrative fees from limited resource farmers. FCIC 
believes this waiver helps to ensure that small entities are given the 
same opportunities as large entities to manage their risks through the 
use of crop insurance. A Regulatory Flexibility Analysis has not been 
prepared since this regulation does not have an impact on small 
entities, and, therefore, this regulation is exempt from the provisions 
of the Regulatory Flexibility Act (5 U.S.C. 605).

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This final rule has been reviewed in accordance with Executive 
Order 12988 on civil justice reform. The provisions of this rule will 
not have a retroactive effect. The provisions of this rule will preempt 
State and local laws to the extent such State and local laws are 
inconsistent herewith. With respect to any direct action taken by FCIC 
or action by FCIC directing the insurance provider to take specific 
action under the terms of the crop insurance policy, the administrative 
appeal provisions published at 7 CFR part 11 or 7 CFR part 400, subpart 
J for determinations of good farming practices, as applicable, must be 
exhausted before any action against FCIC for judicial review may be 
brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.
    Background:
    This rule finalizes changes to the Common Crop Insurance 
Regulations (7 CFR part 457), Processing Sweet Corn Crop Insurance 
Provisions that were published by FCIC on May 11, 2012, as a notice of 
proposed rulemaking in the Federal Register at 77 FR 27658-27659. The 
public was afforded 30 days to submit comments after the regulation was 
published in the Federal Register.
    FCIC received a total of 22 comments from 4 commenters. The 
commenters were insurance providers, an insurance services 
organization, and a Regional Office of the Risk Management Agency 
(RMA). The public comments received regarding the proposed rule and 
FCIC's responses to the comments are as follows:

Order of Priority Statement

    Comment: Commenters recommended deleting the order of priority 
statement, as the order of priority is contained in the Common Crop 
Insurance Policy, Basic Provisions and the order of priority statement 
has been removed from other recently updated policies.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. No change has been made to the final rule.

Section 1--Definitions

    Comment: Commenters recommended eliminating unnecessary repetition 
of language contained in the definition of ``practical to replant''.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. Further, such a change would be substantive in nature and 
the public has not been provided an opportunity to comment. No change 
has been made to the final rule.
    Comment: Commenters stated that the proposed change to the ``price 
election'' definition makes no distinction between the ``base contract 
price'' and the ``price election''. Commenters further stated that the 
proposed definition could be read to mean that the producer must insure 
at 100 percent of the base contract price and cannot choose a lesser 
percentage. Commenters recommended adding language to the proposed 
definition to clarify that a producer may elect to insure a percentage 
of the base contract price.
    Response: FCIC considered this change but has determined that a 
revision to section 3 of the policy is more appropriate to address the 
issue raised by the commenters because this is more than a definitional 
change because it concerns an obligation of the policyholder to make 
the selection. No change has been made to the definition of ``price 
election''.
    Comment: One commenter recommended that FCIC add language to

[[Page 55173]]

the definition of ``price election'' stating the definition of ``price 
election'' may be otherwise defined by FCIC in the Special Provisions.
    Response: FCIC disagrees with the proposed change. In accordance 
with the order of priority contained in the Common Crop Insurance 
Policy, Basic Provisions, FCIC has the authority to provide the 
definition of ``price election'' in the Special Provisions, in lieu of 
the definition in the Basic Provisions. Therefore, no change has been 
made to the final rule.
    Comment: Commenters recommended that FCIC clarify the definition of 
``processor contract'' regarding different base contract prices on 
multiple contracts with the same processor that specify amounts of 
production.
    Response: FCIC agrees with the suggested change and recognizes that 
it addresses a conflict created by FCIC's proposed revision to the 
definition of ``price election''. FCIC has revised the definition to 
clarify how multiple contracts are handled under the policy.

Section 2--Unit Division

    Comment: Commenters recommended that FCIC clarify policy provisions 
regarding the availability of unit structures under sections 2(a) and 
2(b).
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. Further, such a change would be substantive in nature and 
the public has not been provided an opportunity to comment. No change 
has been made to the final rule.

Section 3--Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities

    Comment: Commenters recommended that FCIC adjust the provision in 
3(a) that limits the producer to selecting only one price election for 
all the processing sweet corn in the county to be consistent with the 
definition of ``price election'' proposed by FCIC. Commenters stated 
that the provision should instead limit the producer to selecting only 
one percentage of the price election for all the processing sweet corn 
in the county.
    Response: FCIC agrees with the suggested change and recognizes that 
it addresses a conflict created by FCIC's proposed revision to the 
definition of ``price election''. FCIC has revised the provision 
accordingly.
    Comment: One commenter recommended that FCIC review 3(b) in 
relation to the Dry Bean Crop Provisions to determine if similar 
language is appropriate for processing sweet corn.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision because the provision is question is specific to dry beans 
and is not applicable here. Further, such a change would be substantive 
in nature and the public has not been provided an opportunity to 
comment. No change has been made to the final rule.

Section 6--Report of Acreage

    Comment: One commenter recommended that FCIC revise section 6 to 
require the producer to report the base contract price on the acreage 
report.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. Further, such a change would be substantive in nature and 
the public has not been provided an opportunity to comment. No change 
has been made to the final rule.

Section 11--Duties in the Event of Damage or Loss

    Comment: Commenters recommended that FCIC clarify terminology in 
11(c).
    Response: Without more information FCIC is unable to determine what 
needs clarification. Further, no changes were proposed to this 
provision and the proposed change does not address a conflict or 
vulnerability in the provision, and any such change could be 
substantive in nature and the public has not been provided an 
opportunity to comment. No change has been made to the final rule.

Section 12--Settlement of Claim

    Comment: Commenters recommended that FCIC revise instructions and 
examples for settling claims due to the proposed change to the ``price 
election'' definition.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. Further, such a change would be substantive in nature and 
the public has not been provided an opportunity to comment. No change 
has been made to the final rule.

Section 14--Prevented Planting

    Comment: Commenters recommended eliminating the increased prevented 
planting coverage options for sweet corn.
    Response: No changes were proposed to this provision and the 
proposed change does not address a conflict or vulnerability in the 
provision. Further, such a change would be substantive in nature and 
the public has not been provided an opportunity to comment. No change 
has been made to the final rule.

List of Subjects in 7 CFR Part 457

    Crop insurance, Processing sweet corn policy, Price elections.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation amends 7 CFR part 457 effective for the 2014 and 
succeeding crop years 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.  457.154 as follows:
0
a. Amend the introductory text by removing ``1998'' and adding ``2014'' 
in its place;
0
b. Amend section 1 by adding a definition for ``price election'' in 
alphabetical order and revising the definition of ``processor 
contract'';
0
c. Amend section 3 by revising paragraph (a).
    The revised and added text reads as follows:


Sec.  457.154  Processing Sweet Corn crop insurance provisions.

* * * * *
    1. Definitions.
* * * * *
    Price election. In lieu of the definition of price election in the 
Basic Provisions, the price election will be the base contract price 
stated in your processor contract.
* * * * *
    Processor contract. A written agreement between the producer and a 
processor, containing at minimum:
    (a) The producer's commitment to plant and grow sweet corn, and to 
deliver the sweet corn production to the processor;
    (b) The processor's commitment to purchase all the production 
stated in the processor contract; and
    (c) A base contract price.
    Multiple contracts with the same processor that specify amounts of 
production will be considered as a single processor contract, unless 
the contracts are for different types. Your base contract price will be 
the weighted average of all applicable base contract prices.
* * * * *

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    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (a) You may select only one price election percentage for all the 
processing sweet corn in the county insured under this policy. The 
percentage of the maximum price election you choose for one type will 
be applicable to all other types insured under this policy.
* * * * *

    Signed in Washington, DC, on August 29, 2013.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2013-21826 Filed 9-9-13; 8:45 am]
BILLING CODE 3410-08-P