[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Rules and Regulations]
[Pages 81159-81162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32308]
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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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 80, No. 249 / Tuesday, December 29, 2015 /
Rules and Regulations
[[Page 81159]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR part 457
[Docket No. FCIC-15-0001]
RIN 0563-AC47
Common Crop Insurance Regulations; Cotton Crop Insurance
Provisions, Extra Long Staple Cotton Crop Insurance Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the
Common Crop Insurance Regulations, Cotton Crop Insurance Provisions and
Extra Long Staple (ELS) Cotton Crop Insurance Provisions. The intended
effect of this action is to provide policy changes and to clarify
existing policy provisions to better meet the needs of policyholders.
As discussed further within this rule, FCIC received requests to
simplify program administration consistent with evolving farming
practices in cotton crop production. The changes will be effective for
the 2017 and succeeding crop years.
DATES: This final rule is effective December 29, 2015. However, FCIC
will accept written comments on this final rule until close of business
February 29, 2016. FCIC may consider the comments received and may
conduct additional rulemaking based on the comments.
ADDRESSES: FCIC prefers interested persons submit their comments
electronically through the Federal eRulemaking Portal. Interested
persons may submit comments, identified by Docket ID No. FCIC-15-0001,
by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Director, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
FCIC will post all comments received, including those received by
mail, without change to http://www.regulations.gov, including any
personal information provided. Once these comments are posted to this
Web site, the public can access all comments at its convenience from
this Web site. All comments must include the agency name and docket
number or Regulatory Information Number (RIN) for this rule. For
detailed instructions on submitting comments and additional
information, see http://www.regulations.gov. If interested persons are
submitting comments electronically through the Federal eRulemaking
Portal and want to attach a document, FCIC requests that the document
attachment be in a text-based format. If interested persons want to
attach a document that is a scanned Adobe PDF file, it must be scanned
as text and not as an image, thus allowing FCIC to search and copy
certain portions of the submissions. For questions regarding attaching
a document that is a scanned Adobe PDF file, please contact the Risk
Management Agency (RMA) Web Content Team at (816) 823-4694 or by email
at [email protected].
Privacy Act: Anyone is able to search the electronic form of all
comments received for any dockets by the name of the person submitting
the comment (or signing the comment, if submitted on behalf of an
entity, such as an association, business, labor union, etc.).
Interested persons may review the complete User Notice and Privacy
Notice for Regulations.gov at http://www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Product Management,
Product Administration and Standards Division, Risk Management Agency,
United States Department of Agriculture, Beacon Facility, Stop 0812,
Room 421, PO Box 419205, 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, subchapter I), the collections of information in
this rule have been approved by OMB under control number 0563-0053.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act of 2002,
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. This regulation will not have substantial and direct
effects on Tribal governments and will not have significant Tribal
implications.
[[Page 81160]]
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 indemnity amount for
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 (FCIA) 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 a significant impact on a
substantial number of 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 2 CFR part 415, subpart C.
Executive Order 12988
This 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 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
FCIC amends the Common Crop Insurance Regulations (7 CFR part 457)
by revising 7 CFR 457.104 Cotton Crop Insurance Provisions and 7 CFR
457.105 Extra Long Staple Cotton Crop Insurance Provisions to be
effective for the 2017 and succeeding crop years. FCIC received
requests to simplify program administration consistent with evolving
farming practices in cotton crop production.
FCIC is issuing this final rule without opportunity for prior
notice and comment. The Administrative Procedure Act exempts rules
``relating to agency management or personnel or to public property,
loans, grants, benefits, or contracts'' from the statutory requirement
for prior notice and opportunity for public comment (5 U.S.C.
553(a)(2)). However, FCIC is providing a 60-day comment period and
invites interested persons to participate in this rulemaking by
submitting written comments. FCIC may consider the comments received
and may conduct additional rulemaking based on the comments.
1. The changes to 7 CFR 457.104 Cotton Crop Insurance Provisions
are as follows:
(a) Section 9 (``Duties in the Event of Damage or Loss'')--FCIC is
revising paragraph (a). The provisions require, in the event of damage
or loss, the insured must leave cotton stalks intact for the insurance
provider's inspection. FCIC has received requests to remove these
provisions. The primary reasons provided to FCIC for removing the
provisions include the following reasons:
University extension in some regions recommends destroying
the stalks as soon as possible after harvest to mitigate the
possibility of insect infestation (specifically boll weevil);
The provision requires cotton to be treated differently
than other row crops, which do not require the insured to leave stalks
intact for inspection;
The provision was originally written to address multiple
harvests on the same acreage, but today producers manage their cotton
crops to result in harvest occurring once a year. Years ago, producers
planted more late-maturing varieties and the bolls would open at
different times during the harvest season causing a producer to pick
the same acreage twice.
Cotton farming practices have changed in some regions over
the years and producers have grown accustomed to mowing the stalks
immediately following the cotton picker; and
Producers mow or shred cotton stalks so they can plant
their winter grazing or cover crops. Since cotton stalks are woody, the
sooner they can mow or shred the stalks, the sooner the stalks will
begin to break down. When a cotton stalk inspection is required, a
producer may have to wait up to two weeks before the field can be
mowed. Depending on weather and individual circumstances, the stalk
inspection is an inconvenience to producers and may interfere with
timely completion of their normal operations and preparation for the
winter/cover crop.
FCIC recognizes the potential existence of these issues, but also
recognizes there may be situations in which a cotton stalk inspection
has merit or necessity. Therefore, FCIC is revising the provision to
allow insurance companies discretion to require, in certain
circumstances, that insureds leave the cotton stalks intact for company
inspection. FCIC is also revising the provision to allow FCIC to
include specific circumstances in the Special Provisions for which FCIC
will require insureds to leave cotton stalks intact, and FCIC will
require the company to conduct a cotton stalk inspection, making
discretion inapplicable when any Special Provisions circumstance
required by FCIC occurs.
(b) Section 10 (``Settlement of Claim'')--FCIC is revising
paragraph (c)(1)(i)(E). The current provision states production to
count will include, among other things, all appraised production for
acreage on which cotton stalks were destroyed in violation of section
9. As discussed above, FCIC is revising section 9, which is applicable
only if the AIP exercises its discretion under appropriate
circumstances to require that insureds leave cotton stalks intact. FCIC
is revising paragraph (c)(1)(i)(E) to state this provision applies only
if section 9(a) applies.
2. The changes to 7 CFR 457.105 Extra Long Staple Cotton Crop
Insurance Provisions are as follows:
(a) Section 6 (``Insurable Acreage'')--FCIC is revising paragraph
(b) to correct a prior Federal Register official publication error that
inadvertently resulted in missing language from this provision. The
words ``. . . normally further care for the crop, must . . .'' were not
properly published within
[[Page 81161]]
paragraph (b). This provision was intended to match the Cotton Crop
Insurance Provisions language found at 7 CFR 457.104, section 6(b).
(b) Section 9 (``Duties in the Event of Damage of Loss'')--FCIC is
revising paragraph (a)(2). The provisions require, in the event of
damage or loss, the insured must leave cotton stalks intact for the
insurance provider's inspection. FCIC has received requests to remove
these provisions. The primary reasons provided to FCIC for removing the
provisions include the following reasons:
University extension in some regions recommends destroying
the stalks as soon as possible after harvest to mitigate the
possibility of insect infestation (specifically boll weevil);
The provision requires cotton to be treated differently
than other row crops, which do not require the insured to leave stalks
intact for inspection;
The provision was originally written to address multiple
harvests on the same acreage, but today producers manage their cotton
crops to result in harvest occurring once a year. Years ago, producers
planted more late-maturing varieties and the bolls would open at
different times during the harvest season causing a producer to pick
the same acreage twice.
Cotton farming practices have changed in some regions over
the years and producers have grown accustomed to mowing the stalks
immediately following the cotton picker; and
Producers mow or shred cotton stalks so they can plant
their winter grazing or cover crops. Since cotton stalks are woody, the
sooner they can mow or shred the stalks, the sooner the stalks will
begin to break down. When a cotton stalk inspection is required, a
producer may have to wait up to two weeks before the field can be
mowed. Depending on weather and individual circumstances, the stalk
inspection is an inconvenience to producers and may interfere with
timely completion of their normal operations and preparation for the
winter/cover crop.
FCIC recognizes the potential existence of these issues, but also
recognizes there may be situations in which a cotton stalk inspection
has merit or necessity. Therefore, FCIC is revising the provision to
allow insurance companies discretion to require, in certain
circumstances, that insureds leave the cotton stalks intact for company
inspection. FCIC is also revising the provision to allow FCIC to
include specific circumstances in the Special Provisions for which FCIC
will require insureds to leave cotton stalks intact, and FCIC will
require the company to conduct a cotton stalk inspection, making
discretion inapplicable when any Special Provisions circumstance
required by FCIC occurs.
(c) Section 10 (``Settlement of Claim'')--FCIC is revising
paragraph (c)(1)(i)(E). The current provision says the production to
count will include, among other things, all appraised production for
acreage on which cotton stalks were destroyed in violation of section
9. As discussed above, FCIC is revising section 9, which is applicable
only if the AIP exercises its discretion under appropriate
circumstances to require that insureds leave cotton stalks intact. FCIC
is revising paragraph (c)(1)(i)(E) to state this provision applies only
if section 9(a)(2) applies.
(e) Section 12 (``Prevented Planting'')--FCIC is removing the
reference to limited level of coverage in section 12(b) because it is
no longer applicable.
List of Subjects in 7 CFR Part 457
Crop insurance, Cotton, Reporting and recordkeeping requirements.
Final Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation amends 7 CFR part 457 effective for the 2017 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) and 1506(o).
0
2. Amend Sec. 457.104 as follows:
0
a. In the introductory text, by removing ``2011'' and adding ``2017''
in its place; and
0
b. By revising sections 9(a) and 10(c)(1)(i)(E).
The revisions read as follows:
Sec. 457.104 Cotton crop insurance provisions.
* * * * *
9. Duties in the Event of Damage or Loss
(a) In addition to your duties under section 14 of the Basic
Provisions, in the event of damage or loss, at our option or if
required by FCIC in the Special Provisions, you may be required to
leave the cotton stalks intact for our inspection. If applicable, the
stalks must not be destroyed, and required samples must not be
harvested, until the earlier of our inspection or 15 days after harvest
of the balance of the unit is completed and written notice of probable
loss given to us.
* * * * *
10. Settlement of Claim
* * * * *
(c) * * *
(1) * * *
(i) * * *
(E) If applicable, on which the cotton stalks are destroyed, in
violation of section 9.
* * * * *
0
3. Amend Sec. 457.105 as follows:
0
a. In the introductory text, by removing ``2014'' and adding ``2017''
in its place;
0
b. By revising sections 6(b), 9(a)(2), 10(c)(1)(i)(E), and the last
sentence in section 12(b).
The revisions read as follows:
Sec. 457.105 Extra Long Staple Cotton crop insurance provisions.
* * * * *
6. Insurable Acreage
* * * * *
(b) Any acreage of the insured crop damaged before the final
planting date, to the extent that a majority of producers in the area
would not normally further care for the crop, must be replanted unless
we agree that it is not practical to replant.
* * * * *
9. Duties in the Event of Damage or Loss
(a) * * *
(2) At our option or if required by FCIC in the Special Provisions,
you may be required to leave the cotton stalks intact for our
inspection. If applicable, the stalks must not be destroyed, and
required samples must not be harvested, until the earlier of our
inspection or 15 days after harvest of the balance of the unit is
completed and written notice of probable loss is given to us.
* * * * *
10. Settlement of Claim
* * * * *
(c) * * *
(1) * * *
(i) * * *
(E) If applicable, on which the cotton stalks are destroyed, in
violation of section 9.
* * * * *
12. Prevented Planting
* * * * *
(b) * * * If you have additional coverage and pay an additional
premium, you may increase your prevented planting coverage to a level
specified in the actuarial documents.
[[Page 81162]]
Signed in Washington, DC, on December 17, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-32308 Filed 12-28-15; 8:45 am]
BILLING CODE 3410-08-P