Notice2022-18200
Notice of Funding Availability; Transitional and Organic Grower Assistance
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Published
August 24, 2022
Issuing agencies
Agriculture DepartmentFederal Crop Insurance CorporationRisk Management Agency
Abstract
The Risk Management Agency (RMA), on behalf of the Federal Crop Insurance Corporation (FCIC), announces the availability of funding under the Transitional and Organic Grower Assistance (TOGA) Program. The TOGA Program aims to assist producers that transition to and continue using organic agricultural systems. To address the economic challenges that arose due to the COVID-19 pandemic, this crop insurance support to growers is a part of building more and better markets for American growers and consumers and increasing the resilience of the food supply chain. TOGA premium assistance will be applied to the premium billing statements for the 2023 reinsurance year, which covers applicable policies with sales closing dates from July 1, 2022, to June 30, 2023. For most eligible crops, the 2023 reinsurance year is also the 2023 crop year. However, a few crops are in the 2023 reinsurance year but cover a different crop year. Some examples include raisins, California avocados, macadamia nuts, and several citrus crops.
Full Text
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<title>Federal Register, Volume 87 Issue 163 (Wednesday, August 24, 2022)</title>
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[Federal Register Volume 87, Number 163 (Wednesday, August 24, 2022)]
[Notices]
[Pages 51960-51962]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18200]
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Notices
Federal Register
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Federal Register / Vol. 87, No. 163 / Wednesday, August 24, 2022 /
Notices
[[Page 51960]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
Risk Management Agency
[Docket No. FCIC-22-0003]
Notice of Funding Availability; Transitional and Organic Grower
Assistance
AGENCY: Federal Crop Insurance Corporation and Risk Management Agency,
U.S. Department of Agriculture (USDA).
ACTION: Notification of funding availability.
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SUMMARY: The Risk Management Agency (RMA), on behalf of the Federal
Crop Insurance Corporation (FCIC), announces the availability of
funding under the Transitional and Organic Grower Assistance (TOGA)
Program. The TOGA Program aims to assist producers that transition to
and continue using organic agricultural systems. To address the
economic challenges that arose due to the COVID-19 pandemic, this crop
insurance support to growers is a part of building more and better
markets for American growers and consumers and increasing the
resilience of the food supply chain. TOGA premium assistance will be
applied to the premium billing statements for the 2023 reinsurance
year, which covers applicable policies with sales closing dates from
July 1, 2022, to June 30, 2023. For most eligible crops, the 2023
reinsurance year is also the 2023 crop year. However, a few crops are
in the 2023 reinsurance year but cover a different crop year. Some
examples include raisins, California avocados, macadamia nuts, and
several citrus crops.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone: (816) 926-
7829; email: <a href="/cdn-cgi/l/email-protection#3d5b4f5c535e54581349525151587d484e595c135a524b"><span class="__cf_email__" data-cfemail="0a6c786b6469636f247e6566666f4a7f796e6b246d657c">[email protected]</span></a>. Persons with disabilities who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice) or (844) 433-2774 (toll-free
nationwide).
SUPPLEMENTARY INFORMATION:
Background
This document specifies the terms and conditions of the TOGA
Program. RMA, on behalf of FCIC, will administer the TOGA Program. The
TOGA program aims to assist producers that transition to and continue
using organic agricultural systems. To address the economic challenges
that arose due to the COVID-19 pandemic, this crop insurance support to
growers is a part of building more and better markets for American
growers and consumers and increasing the resilience of the food supply
chain. The TOGA Program provides the following benefits:
<bullet> For crops in transition to certified organic, premium
assistance of an additional 10 percentage points of premium subsidy;
and
<bullet> For organic grain and feed crops, an additional premium
subsidy of up to $5 per insured acre.
Funding is for crop policies for the 2023 reinsurance year. Funds
from Division N of the Consolidated Appropriations Act, 2021, (Pub. L.
116-260) will be used for the TOGA Program.
These crop insurance incentives amplify and assist producers
transitioning to organic agricultural systems as part of the
Administration's commitment to climate-smart agriculture. The premium
assistance will make crop insurance more affordable for growers as they
transition to organic agricultural systems and continue to produce
certified organic feed and grain crops. Participation in crop insurance
provides assurance to banks for loans to help producers secure the
funds they need to help pay operating costs.
For crops in transition, the premium assistance of an additional 10
percentage points of premium subsidy is similar to Beginning Farmer and
Rancher and Veteran Farmer and Rancher benefits. Targeting crops in
transition will help provide economic stability for producers as they
transition to certified organic. The 3-year transition period requires
producers to farm organically, while receiving a conventional price for
their crop despite employing organic practices.
For certified organic grain and feed crops, the premium assistance
subsidy of up to $5 per insured acre is consistent with the Pandemic
Cover Crop Program. Growing demand for organic products is outpacing
domestic supply. The United States is becoming reliant on imports,
particularly for grain and feed. Targeting organic grain and feed crops
offers an opportunity for increased production to meet growing demand.
Increasing local supply for these products allows for a shift in demand
for domestic products and away from imports.
Due to the complexity of Whole Farm Revenue Protection (WFRP)
policies covering more than one crop and some crops being reported in
different quantity measures, such as trees rather than acres, there is
a separate benefit for WFRP of an additional 10 percentage points of
premium subsidy.
Definitions
Approved Insurance Provider (AIP) means a legal entity that has
entered into a reinsurance agreement with FCIC for the applicable
reinsurance year and is authorized to sell and service policies or
plans of insurance under the Federal Crop Insurance Act.
Crop insurance policy means an insurance policy reinsured by FCIC
under the provisions of the Federal Crop Insurance Act, as amended. It
does not include private plans of insurance.
Crops in transition means crops eligible for the Federal crop
insurance program and insured and reported under the organic
transitional cropping practice.
Crop year means the period within which the insured crop is
normally grown and is designated by the calendar year in which the
insured crop is normally harvested.
Eligible insured certified organic acres means insured acres on
which the producer reported a qualifying organic grain or feed crop for
coverage during the 2023 reinsurance year.
Eligible producer means a producer meeting all the eligibility
requirements for the TOGA Program.
FCIC means the Federal Crop Insurance Corporation, a wholly owned
Government Corporation of USDA that administers the Federal crop
insurance program.
Insured acre(s) means the participant's share of insurable acreage
that is insured in accordance with a
[[Page 51961]]
crop insurance policy purchased from an AIP.
Organic grain and feed crops means crops eligible for the Federal
crop insurance program, insured and reported under the organic
certified cropping practice including alfalfa seed, barley, buckwheat,
canola, corn, cultivated wild rice, dry beans, dry peas, flax, forage
production, forage seeding, fresh market sweet corn, grain sorghum,
hybrid corn seed, hybrid popcorn seed, hybrid sorghum seed, hybrid
sweet corn seed, millet, oats, crops insured under the Pasture,
Rangeland, and Forage policy, peanuts, popcorn, rice, rye, safflower,
sesame, silage sorghum, soybeans, sunflowers, sweet corn, triticale,
wheat, and any other crop as determined by the RMA Administrator.
Person means 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. ``Person'' does not
include any government agency or the U.S. Government.
Reinsurance year means the year beginning July 1 and ending on June
30 of the following year, identified by the year containing June.
RMA means the Risk Management Agency, USDA.
TOGA means Transitional and Organic Grower Assistance.
USDA means United States Department of Agriculture.
WFRP means Whole Farm Revenue Protection including the Micro Farm
policy.
Eligibility for TOGA
To be eligible for premium assistance under the TOGA Program, the
participant must be a person who is eligible to receive Federal
benefits and who has purchased a 2023 reinsurance year additional
coverage crop insurance policy for crops in transition or a certified
organic grain or feed crop.
The added premium assistance for the TOGA Program can be in
addition to premium assistance received from any other premium subsidy
assistance sources.
WFRP policies with crops in transition or certified organic
practice crops are eligible for premium assistance of an additional 10
percentage points of premium subsidy. Eligible producers who have
individual crop insurance policies for crops in transition or organic
grain and feed crops in addition to their WFRP policy will receive the
premium assistance on both the individual crop insurance policies and
WFRP policy, as applicable.
Stacked Income Protection Plan (STAX) and Margin Protection (MP)
policies are only eligible for TOGA when insured as a standalone crop
insurance policy.
Ineligibility
Participants who are in violation of Highly Erodible Land or
Wetlands Conservation (16 U.S.C. 3811, 3812, and 3821) are not eligible
for premium support under the TOGA Program.
Supplemental Coverage Option, Enhanced Coverage Option, Post-
Application Coverage Endorsement, and Hurricane Insurance Protection--
Wind Index options or endorsements are not eligible for TOGA.
STAX and MP endorsements to underlying policies are not eligible
for TOGA.
Funding Available
The total funding available for the TOGA Program is $25 million.
When the total premium support sum of $25 million for the TOGA Program
are reached or may be reached, the RMA Administrator may suspend the
program at their sole discretion.
Calculating and Accounting TOGA Program Amounts
For eligible 2023 reinsurance year crop insurance policies, for
crops in transition, the TOGA Program will provide an additional 10
percentage points of premium subsidy, calculated on a total premium
basis for the crops in transition, with a maximum equal to the amount
of premium owed by the eligible producer. If the full amount under the
TOGA Program would result in a negative premium balance for the
producer, the TOGA Program amount will be limited to the full amount of
premium owed.
For eligible 2023 reinsurance year crop insurance policies, for
eligible insured certified organic acres, the TOGA Program will provide
an additional premium subsidy of $5 per insured acre, with a maximum
equal to the amount of premium owed by the producer. Amounts under the
TOGA Program are limited to the full amount of premium owed by the
producer for the eligible insured certified organic acres. If the full
amount under the TOGA Program would result in a negative premium
balance for the producer on a per insured acre basis, the TOGA Program
amounts will be limited to the full amount of premium owed on a per
insured acre basis.
For eligible 2023 reinsurance year WFRP policies with crops in
transition or certified organic practice, the TOGA Program will provide
an additional 10 percentage points of premium subsidy, calculated on a
total premium basis, with a maximum equal to the amount of premium owed
by the eligible producer. If the full amount under the TOGA Program
would result in a negative premium balance for the producer, the TOGA
Program amounts will be limited to the full amount of premium owed.
All other Federal premium assistance will be applied before TOGA
premium assistance. If the crop insurance policy is amended for any
reason, such as overreporting, the amount under the TOGA Program will
be based on the crop insurance policy after any such amendment.
The amount under the TOGA Program will not be paid directly to
participants but will be accounted for in calculating total producer
premium due from producers for the crop and reflected in their premium
bills, and as subject to the applicable premium billing date. All bills
still follow the same terms and conditions specified in the crop
insurance policy, regardless of the TOGA Program amounts.
The payment limitations in 7 CFR 760.1507 are not applicable to the
TOGA Program.
TOGA premium support will be provided via premium billing
adjustments on the applicable billing statements for crops in
transition and organic grain or feed crops. RMA will use all necessary
records provided by AIPs, including producer crop insurance forms to
determine eligibility. The eligible producers do not need to provide
any additional information to their crop insurance agent to enroll in
the TOGA Program.
If any TOGA Program amount is determined to be incorrect, the
amount will be recalculated until the applicable reinsurance year
annual settlement date, unless otherwise specified by the RMA
Administrator. After that date, the amount will be final except in
cases of misrepresentation, fraud, scheme, or device.
Paperwork Reduction Act Requirements
In accordance with the provisions of the Paperwork Reduction Act of
1995 (44 U.S.C. chapter 35, subchapter I), the notice does not change
the information collection approved by OMB under control numbers 0563-
0053.
Environmental Review
The environmental impacts of this final rule have been considered
in a manner consistent with the provisions of the National
Environmental Policy
[[Page 51962]]
Act (NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on
Environmental Quality (40 CFR parts 1500-1508), and because USDA will
be making the payments to producers, the USDA regulation for compliance
with NEPA (7 CFR part 1b). As specified in 7 CFR 1b.4, FCIC is
categorically excluded from the preparation of an Environmental
Assessment 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 notice will
not have a significant environmental effect. Therefore, FCIC will not
prepare an environmental assessment or environmental impact statement
for this action, and this notice serves as documentation of the
programmatic environmental compliance decision.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing,\1\ to which this document applies is
10.450--Crop Insurance.
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\1\ See <a href="https://sam.gov/content/assistance-listings">https://sam.gov/content/assistance-listings</a>.
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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 <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> 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: <a href="/cdn-cgi/l/email-protection#0c434d4f4c797f686d226b637a"><span class="__cf_email__" data-cfemail="eda2acaead989e898cc38a829b">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Marcia Bunger,
Manager, Federal Crop Insurance Corporation; and Administrator, Risk
Management Agency.
[FR Doc. 2022-18200 Filed 8-23-22; 8:45 am]
BILLING CODE 3410-08-P
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