Rule2022-25531
Increasing Crop Insurance Flexibility for Sugar Beets
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 28, 2022
Effective
November 28, 2022
Issuing agencies
Agriculture DepartmentFederal Crop Insurance Corporation
Abstract
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.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 227 (Monday, November 28, 2022)</title>
</head>
<body><pre>
[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25531]
========================================================================
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.
========================================================================
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.
-----------------------------------------------------------------------
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:
<bullet> Federal eRulemaking Portal: Go to <a href="http://www.regulations.gov">http://www.regulations.gov</a> 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 <a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Francie Tolle; telephone (816) 926-
7829; or email <a href="/cdn-cgi/l/email-protection#f89e8a99969b919dd68c9794949db88d8b9c99d69f978e"><span class="__cf_email__" data-cfemail="1d7b6f7c737e74783369727171785d686e797c337a726b">[email protected]</span></a>. 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:
<bullet> Are the requirements in the rule clearly stated? Are the
scope and intent of the rule clear?
<bullet> Does the rule contain technical language or jargon that is
not clear?
<bullet> Is the material logically organized?
<bullet> Would changing the grouping or order of sections or adding
headings make the rule easier to understand?
<bullet> Could we improve clarity by adding tables, lists, or
diagrams?
<bullet> Would more, but shorter, sections be better? Are there
specific sections that are too long or confusing?
<bullet> 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.
---------------------------------------------------------------------------
\1\ See <a href="https://sam.gov/content/assistance-listings">https://sam.gov/content/assistance-listings</a>.
---------------------------------------------------------------------------
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 <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#56191715162325323778313920"><span class="__cf_email__" data-cfemail="d59a949695a0a6b1b4fbb2baa3">[email protected]</span></a>.
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
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 28, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.