Rule2024-27225
Flax Revenue and Expanded Unit Options for Crop Insurance
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 27, 2024
Effective
November 30, 2024
Issuing agencies
Agriculture DepartmentFederal Crop Insurance Corporation
Abstract
The Federal Crop Insurance Corporation (FCIC) is amending its regulations to allow revenue coverage for flax under the Small Grain Crop Insurance Provisions, to combine written agreement deadlines in the Dry Bean Crop Insurance Provisions to match other insurance policies, to expand the availability of enterprise and optional units for some specialty and perennial crops, and to make clarifications and corrections to the Area Risk Protection Insurance, Basic Provisions; Common Crop Insurance Policy, Basic Provisions; and several Crop Provisions. The changes will be effective for the 2025 and succeeding crop years for crops with a contract change date on or after November 30, 2024. For all other crops, the changes to the policies made in this rule are applicable for the 2026 and succeeding crop years.
Full Text
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<title>Federal Register, Volume 89 Issue 229 (Wednesday, November 27, 2024)</title>
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[Federal Register Volume 89, Number 229 (Wednesday, November 27, 2024)]
[Rules and Regulations]
[Pages 93463-93470]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-27225]
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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.
========================================================================
Federal Register / Vol. 89, No. 229 / Wednesday, November 27, 2024 /
Rules and Regulations
[[Page 93463]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 407 and 457
RIN 0563-AC86
[Docket ID FCIC-24-0005]
Flax Revenue and Expanded Unit Options for Crop Insurance
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule with request for comments.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is amending its
regulations to allow revenue coverage for flax under the Small Grain
Crop Insurance Provisions, to combine written agreement deadlines in
the Dry Bean Crop Insurance Provisions to match other insurance
policies, to expand the availability of enterprise and optional units
for some specialty and perennial crops, and to make clarifications and
corrections to the Area Risk Protection Insurance, Basic Provisions;
Common Crop Insurance Policy, Basic Provisions; and several Crop
Provisions. The changes will be effective for the 2025 and succeeding
crop years for crops with a contract change date on or after November
30, 2024. For all other crops, the changes to the policies made in this
rule are applicable for the 2026 and succeeding crop years.
DATES: Effective date: This final rule is effective November 30, 2024.
Comment Date: We will consider comments that we receive by the
close of business January 27, 2025. 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="https://www.regulations.gov">https://www.regulations.gov</a> and search for Docket ID FCIC-24-0005. 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: Chandra Place; telephone (816) 926-
3875; or email <a href="/cdn-cgi/l/email-protection#9dfef5fcf3f9effcb3edf1fcfef8dde8eef9fcb3faf2eb"><span class="__cf_email__" data-cfemail="5b38333a353f293a752b373a383e1b2e283f3a753c342d">[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 is amending the following regulations:
<bullet> Area Risk Protection Insurance Basic Provisions (7 CFR
part 407);
<bullet> Common Crop Insurance Policy Basic Provisions (7 CFR
457.8);
<bullet> Small grain crop insurance provisions (7 CFR 457.101);
<bullet> Prune crop insurance provisions (7 CFR 457.133);
<bullet> Green pea crop insurance provisions (7 CFR 457.137);
<bullet> Northern potato crop insurance provisions (7 CFR 457.142);
<bullet> Central and Southern potato crop insurance provisions (7
CFR 457.147);
<bullet> Dry bean crop insurance provisions (7 CFR 457.150);
<bullet> Processing sweet corn crop insurance provisions (7 CFR
457.154); and
<bullet> Blueberry crop insurance provisions (7 CFR 457.166).
The changes to the crop insurance policies resulting from the
amendments in this rule are applicable for the 2025 and succeeding crop
years for crops with a contract change date on or after November 30,
2024. For all other crops, the changes to the crop insurance policies
resulting from the amendments in this rule are applicable for the 2026
and succeeding crop years.
Flax Revenue Coverage
The Small Grain Crop Provisions previously offered actual
production history (APH) coverage to buckwheat and flax; and offered
yield protection (YP), revenue protection (RP), and revenue protection
with harvest price exclusion (RP-HPE) to barley, oats, rye, and wheat.
In this Final Rule, FCIC is expanding revenue protection (RP and RP-
HPE) to flax, matching available coverage for barley, oats, rye, and
wheat.
The current APH coverage for flax is now converted to YP. For
producers who wish to maintain yield coverage, the only difference in
coverage is the price guarantee matches the projected price offered for
revenue protection (established approximately two weeks prior to the
sales closing date), instead of a price election established by the
Risk Management Agency (RMA) (established prior to the contract change
date).
With the availability of revenue protection for flax, the terms
``price election'' and ``production guarantee'' are no longer
applicable. Instead, the terms ``projected price,'' ``yield protection
guarantee,'' and ``revenue protection guarantee'' are applicable. These
changes appear in the following sections of the Small Grain Crop
Provisions: 3(a) and (b), 9(c), and 11(b) and (c).
[[Page 93464]]
FCIC is revising section 3(a) to remove the references to flax.
This provision previously stated that revenue protection is not
available for flax or buckwheat. FCIC is removing flax from the list of
crops because revenue coverage is now available for flax. FCIC is also
revising section 3(b) to add references to flax. These provisions
previously stated that revenue protection is available for barley,
oats, rye, and wheat. FCIC is adding flax to the list of crops in the
two places where the list occurs.
FCIC is revising section 9(c)(2)(i) to remove the reference to flax
and revise section 9(c)(2)(ii) to add a reference to flax. When a crop
does not have yield or revenue protection available, the price used for
determining coverage and any indemnity payments, including replanting
payments, is called the price election. For crops for which yield and
revenue protection are available, this price is called the projected
price. In section 9(c)(2)(i), the provision previously stated that the
replanting payment for flax will be determined by using the price
election. Under this rule, revenue and yield protection plans of
insurance are now available for flax; therefore, the price used is the
projected price. FCIC is revising section 9(c)(2)(i) to remove the
reference to flax. Section 9(c)(2)(ii) contains provisions applicable
to the projected price. FCIC is revising section 9(c)(2)(ii) to include
flax, as the projected price will now be used.
For crops for which yield and revenue protection are available, the
applicable terms for insurance coverage are yield protection guarantee
and revenue protection guarantee. For crops for which yield and revenue
protection are not available, the applicable term is production
guarantee. FCIC is revising sections 11(b)(1)(i), (ii), and (iii).
These sections refer to ``yield protection guarantee,'' ``production
guarantee,'' and ``revenue protection guarantee,'' respectively. The
references to flax in section 11(b)(1)(ii), which addresses production
guarantee, were removed and added to sections 11(b)(1)(i) and (iii),
which address yield protection guarantee and revenue protection
guarantee.
FCIC is also revising section 11(b)(3)(i) to add a reference to
flax and revising section 11(b)(3)(ii) to remove the reference to flax.
This change is consistent with the change in section 9(c)(2). Section
11(b)(3)(i) refers to computations using the projected price; section
11(b)(3)(ii) refers to computations using the price election. Flax was
removed from section 11(b)(3)(ii) and added to section 11(b)(3)(i) to
align with the proper terms for crops for which revenue protection is
available.
Section 11(c)(1)(i) explains what is included in appraised
production. Previously, flax was contained in a list of crops with
buckwheat. Those two crops had similar coverage and used the same crop
insurance terminology under the Small Grain Crop Provisions when
revenue coverage was not yet available for flax. Now, flax has been
removed from the list of crops containing buckwheat and added to the
list of crops containing barley, oats, rye, and wheat in two places
because allowing revenue coverage for flax makes coverage and crop
insurance terminology for that crop consistent with coverage and
terminology for barley, oats, rye, and wheat.
Dry Bean Written Agreement Deadlines
FCIC is combining written agreement deadlines to reduce confusion
and administrative complexity when a producer requests a written
agreement based on multiple criteria. Previously, the written agreement
deadline to add an insurable practice or type was the acreage reporting
date for new requests and the sales closing date for renewal requests;
however, the deadline to add an insurable dry bean type that is not on
the actuarial documents was the sales closing date. This created extra
paperwork and confusion in instances where a producer wanted to insure
a new dry bean type and under a practice that is not currently
available in the county. FCIC is combining the deadline for all written
agreements to match all other insurance policies with this type of
request, so that for the first year of coverage, the deadline is the
acreage reporting date and for subsequent years of coverage, the
deadline is the sales closing date.
Enterprise and Optional Units
The CCIP Basic Provisions allow enterprise units (EU) by organic
farming practice, beginning with the June 30, 2024, contract change
date. Unlike major row crops, optional units (OUs) by organic farming
practice were not available for most specialty and perennial crops due
to language in the Crop Provisions (CP) that superseded the standard OU
definition in the CCIP Basic Provisions. In this rule, FCIC is removing
limitations on OUs by organic farming practice and making
clarifications and edits for consistency with the EU and OU choices
provisions in the CCIP Basic Provisions in the following Crop
Provisions:
<bullet> Green pea crop insurance provisions (7 CFR 457.137); and
<bullet> Processing sweet corn crop insurance provisions (7 CFR
457.154).
These changes are responsive to organic growers and the Climate
Smart Initiative.
Clarifications and Corrections
FCIC is making the following corrections and clarifications in the
Small Grain Crop Provisions (7 CFR 457.101):
<bullet> Updating the effective crop year of the Crop Provisions;
<bullet> Removing the hyphen in the phrase ``initially-planted'' in
section 2(b) for consistency with the defined phrase in the Crop
Provisions;
<bullet> Making plain language clarifications in sections 5, 6, and
7;
<bullet> Combining the two introductory paragraphs in section 8
into one introductory paragraph;
<bullet> Replacing the word ``and'' with ``or'' in sections
11(d)(2)(i)(A) and 11(d)(2)(ii). Section 11(d) contains six
subparagraphs for deficiencies in quality for the small grain crop. The
list of deficiencies in quality varies by crop. In four of the six
subparagraphs, the last item in the list is preceded by ``or,'' while
in the other two paragraphs, the last item is preceded by ``and.'' FCIC
is changing the word ``and'' to ``or'' for consistency among
subparagraphs; and
<bullet> Replacing the word ``flaxseed'' with ``flax'' in section
11(d)(2)(E). This is the only instance of ``flaxseed,'' whereas
``flax'' is used elsewhere.
FCIC is making the following clarifications and corrections in the
Green pea crop insurance provision (7 CFR 457.137):
<bullet> Updating the effective crop year of the Crop Provisions;
<bullet> Removing the paragraph immediately preceding section 1,
which refers to the order of priority if a conflict exists among the
policy provisions. This same provision is contained in the Basic
Provisions. Therefore, the appearance here is duplicative and should be
removed. FCIC is clarifying which Basic Provisions apply by replacing
the aforementioned paragraph with an introductory sentence preceding
the Crop Provisions;
<bullet> Removing all instances of the phrase ``the provisions
of,'' ``the provisions contained in,'' and ``contained'' where a policy
reference follows;
<bullet> Revising the definition of ``good farming practices'' to
clarify that the definition in the Crop Provisions expands upon the
definition contained in the Basic Provisions because good farming
practices include the cultural practices required by the processor
contract;
[[Page 93465]]
<bullet> Revising the definition of ``practical to replant'' to
clarify that the definition in the Crop Provisions does not replace,
but rather expands upon the definition in the Basic Provisions, and
remove duplicative criteria that are already included in the definition
in the Basic Provisions;
<bullet> Revising the definition of ``processor contract'' to
replace the phrase ``a written agreement'' with the phrase ``a written
contract.'' The phrase ``written agreement'' is a specifically defined
term in the Basic Provisions and is not applicable to a processor
contract for green peas. This change is necessary to minimize confusion
between a written contract and a written agreement, which is a document
that alters designated terms of a policy as authorized under these
Basic Provisions, the Crop Provisions, or the Special Provisions for
the insured crop;
<bullet> Removing the phrase ``for determining indemnities'' from
the section heading for section 3. The section heading will now read
``Insurance Guarantees, Coverage, Levels, and Prices.'' The new section
heading is more accurate because insurance guarantees, coverage levels,
and prices are not exclusively used for determining indemnities. This
change is also for consistency with section headings of the same name
in other Crop Provisions;
<bullet> Replacing the reference to Special Provisions with
actuarial documents in section 3(a), since the price election
information referred to in this section is displayed in the actuarial
documents;
<bullet> Replacing abbreviated months (``Feb'' and ``Mar'') with
the full spelling for the months (``February'' and ``March'') in the
cancellation and termination date table, in section 5;
<bullet> Adding a hyphen to the adjective compound ``15-day'' as it
describes a ``15-day period'' in section 11(c); and
<bullet> Updating prices in the settlement of claim examples to be
more reflective of current crop prices and potential indemnities, in
section 12.
FCIC is making the following clarifications and corrections in the
Processing sweet corn crop insurance provisions (7 CFR 457.154):
<bullet> Updating the effective crop year of the Crop Provisions;
<bullet> Clarifying which Basic Provisions apply by adding an
introductory sentence preceding the Crop Provisions; and
<bullet> Adding a hyphen to the adjective compound ``15-day'' as it
describes a ``15-day period'' in section 11(c).
In addition, the Common Crop Insurance Regulations in 7 CFR part
457 were revised by a final rule with request for comments published in
the Federal Register on June 27, 2024 (89 FR 53822-53847). Changes were
made in that rule to the Area Risk Protection Insurance Basic
Provisions (7 CFR part 407), Common Crop Insurance Policy (Common Crop
Insurance Policy (CCIP) Basic Provisions (7 CFR 457.8), the General
Administrative Regulations in subpart J of part 400 (7 CFR 400.98), and
18 Crop Provisions. In reviewing the changes made, FCIC found some
incorrect references, missing words, missing parentheses, incorrect
paragraph designations, and an extra word. This rule will also make
these corrections in the following provisions:
<bullet> Area Risk Protection Insurance Basic Provisions (7 CFR
part 407);
<bullet> Common Crop Insurance Policy Basic Provisions (7 CFR
457.8);
<bullet> Prune crop insurance provisions (7 CFR 457.133);
<bullet> Northern potato crop insurance provisions (7 CFR 457.142);
<bullet> Central and Southern potato crop insurance provisions (7
CFR 457.147); and
<bullet> Blueberry crop insurance provisions (7 CFR 457.166).
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.
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.
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996, (also known as the Congressional Review Act) requires a
delay of the effective date of 60 days after publication to allow for
Congressional review. The Office of Information and Regulatory Affairs
has determined that this rule does not meet the criteria in 5 U.S.C.
804(2). Therefore, this final rule is effective on November 30, 2024.
Although not required by APA or any other law, FCIC has chosen to
request comments on this rule.
Executive Orders 12866, 13563, and 14094
Executive Order 12866, ``Regulatory Planning and Review,'' was
amended by and Executive Order 13563, ``Improving Regulation and
Regulatory Review,'' and Executive Order 14094, ``Modernizing
Regulatory Review.'' Executive Orders 12866 and 13563 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 emphasized 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) has designated this rule
as not significant under Executive Order 12866, ``Regulatory Planning
and Review,'' and therefore, OMB has not reviewed this rule and
analysis of the costs and benefits is not required under either
Executive Order 12866 or 13563.
Clarity of the Regulation
Executive Order 12866, as supplemented by Executive Order 13563,
requires each agency to write all rules in plain language. Executive
Order 14094 requires Federal agencies to increase and improve public
participation in the regulatory process. The Executive order's
objective is to improve public trust in the regulatory process by
reducing the risk or appearance of unequal or unfair influence in
regulatory development. Under Executive Order 14904, agencies must, to
the extent they can under law, seek out, assist with, and include your
input in the regulatory process. We welcome comments from public
(State, local, Tribal, and territorial) and private sector regulated
entities; members of underserved communities; consumers; workers and
labor organizations; businesses; and program beneficiaries, among
others. 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?
[[Page 93466]]
<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
The environmental impacts of this final rule have been considered
in a manner consistent with the provisions of the National
Environmental Policy 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(b)(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. For good farming
practice determinations, the administrative appeal provisions under 7
CFR part 11 do not apply.
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, to which this rule
applies is No. 10.450--Crop Insurance.
Paperwork Reduction Act of 1995
In accordance with the provisions of the Paperwork Reduction Act of
1995 (44 U.S.C. chapter 35, subchapter I), the rule does not change the
information collection approved by OMB under control numbers 0563-0053
and 0563-0083.
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.
Individuals 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 (voice and text telephone (TTY))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
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: (1)
mail to: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC
20250-9410; (2) fax: (202) 690-7442; or (3) email:
<a href="/cdn-cgi/l/email-protection#79090b161e0b18145710170d18121c390c0a1d18571e160f"><span class="__cf_email__" data-cfemail="5f2f2d30382d3e327136312b3e343a1f2a2c3b3e71383029">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
List of Subjects
7 CFR Part 407
Acreage allotments, Administrative practice and procedure, Barley,
Corn, Cotton, Crop insurance, Peanuts, Reporting and recordkeeping
requirements, Sorghum, Soybeans, Wheat.
7 CFR Part 457
Acreage allotments, Crop insurance, Reporting and recordkeeping
requirements.
Final Rule
For the reasons discussed above, FCIC amends 7 CFR parts 407 and
457, effective for the 2025 and succeeding crop years for crops with a
contract change date on or after November 30, 2024, and for the 2026
and succeeding crop years for all other crops, as follows:
[[Page 93467]]
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
0
1. The authority citation for part 407 continues to read as follows:
Authority: 7 U.S.C. 1506(l) and 1506(o).
0
2. Amend Sec. 407.9 as follows:
0
a. In section 5, in paragraph (c)(3), remove the words ``stated in
section 5(c)'' and add ``stated in section 5(c)(2)'' in their place;
and
0
b. In section 7, in paragraph (d)(2), remove ``;'' at the end of the
paragraph and add in its place ``; and''.
PART 457--COMMON CROP INSURANCE REGULATIONS
0
3. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
0
4. In Sec. 457.8, in the ``Common Crop Insurance Policy'', section 3,
in paragraph (i) introductory text, remove the words ``not applicable''
and add ``(not applicable'' in their place.
0
5. Amend Sec. 457.101 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Small Grain Crop Provisions'';
0
b. In section 2, in paragraph (b) remove the phrase ``initially-
planted'' and add the phrase ``initially planted'' in its place;
0
c. In section 3, revise paragraphs (a), (b) introductory text, and
(b)(1);
0
d. In section 5, in the table, remove the word ``thereof'' wherever it
appears and add the words ``of the named counties'' in its place;
0
e. In section 6 in paragraph (c)(2), remove the phrase ``set forth
herein'' and add the phrase ``described in these Crop Provisions'' in
its place;
0
f. In section 7 in paragraph (a) introductory text, remove the word
``thereof'' and add the words ``of a unit'' in its place;
0
g. In section 9:
0
i. In paragraph (c)(2)(i), remove the phrase ``flax or''; and
0
ii. In paragraph (c)(2)(ii), add the phrase ``, flax'' after the word
``barley'';
0
h. In section 11:
0
i. In paragraph (b)(1)(i), add the phrase ``, flax'' after the word
``barley'';
0
ii. In paragraph (b)(1)(ii), remove the phrase ``flax or'';
0
iii. In paragraph (b)(1)(iii), add the phrase ``, flax'' after the word
``barley'';
0
iv. In paragraph (b)(3)(i), add the phrase ``, flax'' after the word
``barley'';
0
v. In paragraph (b)(3)(ii), remove the phrase ``flax or'';
0
vi. Revise paragraph (c)(1)(i);
0
vii. In paragraph (d)(2)(i)(A), remove the phrase ``smutty, and
ergoty'' and add the phrase ``smutty, or ergoty'' in its place;
0
viii. In paragraph (d)(2)(i)(E), remove the word ``Flaxseed'' and add
the word ``Flax'' in its place; and
0
ix. In paragraph (d)(2)(ii), remove the phrase ``smutty, and ergoty''
and add the phrase ``smutty, or ergoty'' in its place.
The revisions and additions read as follows:
Sec. 457.101 Small grain crop insurance provisions.
The Small Grain Crop Insurance Provisions for the 2025 and
succeeding crop years for crops with a contract change date on or after
November 30, 2024, and for the 2026 and succeeding crop years with a
contract change date prior to November 30, 2024, are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Small Grain Crop Provisions
In return for your payment of premium and administrative fee for
coverage, these Small Grains Crop Provisions and corresponding
Commodity Exchange Price Provisions will be attached to and made part
of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
* * * * *
3. Insurance Guarantees, Coverage Levels, and Prices
(a) Revenue protection is not available for your buckwheat.
Therefore, if you elect to insure such crop by the sales closing date,
it will only be protected against a loss in yield.
(b) Revenue protection is available for barley, flax, oats, rye,
and wheat. Therefore, if you elect to insure your barley, flax, oats,
rye, or wheat:
(1) You must elect to insure your barley, flax, oats, rye, or wheat
with either revenue protection or yield protection by the sales closing
date; and
* * * * *
11. Settlement of Claim
* * * * *
(c) * * *
(1) * * *
(i) For buckwheat, and for barley, flax, oats, rye, or wheat under
yield protection, not less than the production guarantee (per acre),
and for barley, flax, oats, rye, or wheat under revenue protection, not
less than the amount of production that when multiplied by the harvest
price equals the revenue protection guarantee (per acre) for acreage:
* * * * *
0
6. Amend Sec. 457.133 as follows:
0
a. In the introductory text, remove the year ``2025'' and add the year
``2026'' in its place;
0
b. In section 1, revise the definition of ``Standard prunes''.
The revisions read as follows:
Sec. 457.133 Prune crop insurance provisions.
* * * * *
Definitions
* * * * *
Standard prunes. Any natural condition prunes:
(1) That grade ``C,'' ``U.S. Standard,'' or better in accordance
with the United States Standards for Grades of Dried Prunes; or
(2) That meet or exceed the grade standards in effect for the crop
year if a Marketing Order for California Prunes has been established
for the area in which the insured crop is grown.
* * * * *
0
7. Amend Sec. 457.137 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Green Pea Crop Provisions'';
0
b. In section 1:
0
i. Revise the definition of ``Good farming practices'';
0
ii. In the definition of ``Planted acreage,'' remove the word
``contained'';
0
iii. Revise the definitions of ``Practical to replant'' and ``Price
election''; and
0
iv. In the definition of ``Processor contract,'' remove the phrase ``A
written agreement'' and add the phrase ``A written contract'' in its
place;
0
c. In section 2:
0
i. In paragraph (a)(1), remove the word ``contained''; and
0
ii. Revise paragraphs (a)(2) and (b);
0
d. In section 3:
0
i. Revise the section heading;
0
ii. In paragraph (a), remove the phrase ``Special Provisions'' and add
the phrase ``actuarial documents'' in its place;
0
e. In section 5, in the table, replace the words ``Feb.'' and ``Mar.''
and add the words ``February'' and ``March'', respectively, in their
place;
0
f. In section 6, remove the phrase ``the provisions of'';
0
g. In section 8, introductory paragraph, remove the phrase ``the
provisions of'';
0
h. In section 9, introductory paragraph, remove the phrase ``the
provisions contained in'';
0
i. In section 10:
0
i. In the introductory paragraph, remove the phrase ``the provisions
of'';
0
ii. In paragraph (a)(4), remove the word ``contained''; and
0
iii. In paragraph (a)(8), remove the word ``contained'';
0
j. In section 11, in paragraph (c), remove the phrase ``15 day period''
and
[[Page 93468]]
add the phrase ``15-day period'' in its place; and
0
k. In section 12, revise paragraph (b)(7).
The revisions and additions read as follows:
Sec. 7 CFR 457.137 Green pea crop insurance provisions.
The Green Pea Crop Insurance Provisions for the 2025 and succeeding
crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation.
Green Pea Crop Provisions
In return for your payment of premium and administrative fee for
the coverage, these Green Pea Crop Provisions will be attached to and
made part of the Common Crop Insurance Policy, Basic Provisions (Basic
Provisions) subject to the terms and conditions in your policy.
* * * * *
1. Definitions
* * * * *
Good farming practices. In addition to the definition of ``good
farming practices'' in the Basic Provisions, the cultural practices
required by the processor contract.
* * * * *
Practical to replant. In addition to the definition of ``practical
to replant'' in the Basic Provisions, practical to replant is defined
as our determination, after loss or damage to the insured crop, based
on factors including, but not limited to, moisture availability, and
marketing window, that replanting the insured crop will allow the crop
to attain maturity prior to the calendar date for the end of the
insurance period. It will not be considered practical to replant unless
the replanted acreage can produce at least 75 percent of the approved
yield, and the processor agrees in writing that it will accept the
production from the replanted acreage.
Price election. In lieu of the definition of ``price election'' in
the Basic Provisions, price election is defined as the price per pound
stated in the processor contract (contracted price) for the
tenderometer reading, grade factor, or sieve size contained in the
Special Provisions.
* * * * *
Unit Division
(a) * * *
(2) Optional units may be established by:
(i) Organic and non-organic farming practices as provided in
Section 34(c)(3) of the Basic Provisions; or
(ii) Shell type and pod type for green peas if the shell type
acreage does not continue into the pod type acreage in the same rows or
planting pattern.
(b) For any processor contract that stipulates the number of acres
to be planted, in addition to or instead of, establishing optional
units as provided in Section 34(c) of the Basic Provisions, optional
units may be established by the shell type and pod type for green peas
if the shell type acreage does not continue into the pod type acreage
in the same rows or planting pattern.
Insurance Guarantees, Coverage Levels, and Prices
* * * * *
12. Settlement of Claim
* * * * *
(b) * * *
(7) Multiplying the result of section 12(b)(6) by your share.
For example:
You have a 100 percent share in 100 acres of shell type green peas
in the unit, with a guarantee of 4,000 pounds per acre and a price
election of $0.15 per pound. You are only able to harvest 200,000
pounds. Your indemnity would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000 pounds guarantee;
(2) 400,000 pounds x $0.15 price election = $60,000.00 value of
guarantee;
(3) Not applicable;
(4) 200,000 pounds x $0.15 price election = $30,000.00 value of
production to count;
(5) Not applicable;
(6) $60,000.00-$30,000.00 = $30,000.00 loss; and
(7) $30,000.00 x 100 percent = $30,000.00 indemnity payment.
You also have a 100 percent share in 100 acres of pod type green
peas in the same unit, with a guarantee of 5,000 pounds per acre and a
price election of $0.15 per pound. You are only able to harvest 450,000
pounds. Your total indemnity for both shell type and pod type green
peas would be calculated as follows:
(1) 100 acres x 4,000 pounds = 400,000 pounds guarantee for the
shell type, and 100 acres x 5,000 pounds = 500,000 pounds guarantee for
the pod type;
(2) 400,000 pounds guarantee x $0.15 price election = $60,000.00
value of guarantee for the shell type, and 500,000 pounds guarantee x
$0.15 price election = $75,000.00 value of guarantee for the pod type;
(3) $60,000.00 + $75,000.00 = $135,000.00 total value of guarantee;
(4) 200,000 pounds x $0.15 price election = $30,000.00 value of
production to count for the shell type; and 450,000 pounds x $0.15 =
$67,500.00 value of production to count for the pod type;
(5) $30,000.00 + $67,500.00 = $97,500.00 total value of production
to count;
(6) $135,000.00--$97,500.00 = $37,500.00 loss; and
(7) $37,500.00 loss x 100 percent = $37,500.00 indemnity payment.
* * * * *
0
8. Amend Sec. 457.142 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Northern Potato Crop Provisions'';
0
b. In section 11, revise paragraph (e)(2).
The revisions read as follows:
Sec. 457.142 Northern potato crop insurance provisions.
The Northern Potato Crop Insurance Provisions for the 2025 and
succeeding crop years in counties with a contract change date of
November 30, and for the 2026 and succeeding crop years in counties
with a contract change date of April 30, June 30, and September 30, are
as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Northern Potato Crop Provisions
In return for your payment of premium and administrative fee for
the coverage, these Northern Potato Crop Provisions will be attached to
and made part of the Common Crop Insurance Policy, Basic Provisions
(Basic Provisions) subject to the terms and conditions in your policy.
These provisions will be applicable in: Alaska; Humboldt, Modoc,
and Siskiyou Counties, California; Colorado; Connecticut; Idaho;
Indiana; Iowa; Kansas; Maine; Massachusetts; Michigan; Minnesota;
Montana; Nebraska; Nevada; San Juan County, New Mexico; New York; North
Dakota; Ohio; Oregon; Pennsylvania; Rhode Island; South Dakota; Utah;
Washington; Wisconsin; and Wyoming; and any other states or counties if
allowed by the Special Provisions.
* * * * *
11. Settlement of Claim
* * * * *
(e) * * *
(2) A grade inspection is completed no later than 21 days after the
end of insurance period (if the Northern Potato Storage Coverage
Endorsement is applicable, samples must be obtained within 60 days
after the end of insurance period and quality (grade) determinations
must be completed within 21 days of sampling; and
* * * * *
[[Page 93469]]
0
9. Amend Sec. 457.147 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Central and Southern Potato Crop Provisions'';
0
b. In section 12, revise the example after paragraph (b)(7) and before
paragraph (c).
The revision reads as follows:
Sec. 457.147 Central and Southern potato crop insurance provisions.
The Central and Southern Potato Crop Insurance Provisions for the
2025 and succeeding crop years in counties with a contract change date
of November 30, and for the 2026 and succeeding crop years in counties
with a contract change date of April 30, June 30, and September 30, are
as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation
Central and Southern Potato Crop Provisions
In return for your payment of premium and administrative fee for
the coverage, these Central and Southern Potato Crop Provisions will be
attached to and made part of the Common Crop Insurance Policy, Basic
Provisions (Basic Provisions) subject to the terms and conditions in
your policy.
These provisions will be applicable in Alabama; Arizona; all
California counties except Humboldt, Modoc, and Siskiyou; Delaware;
Florida; Georgia; Maryland; Missouri; New Jersey; all New Mexico
counties except San Juan; North Carolina; Oklahoma; Texas; and
Virginia; and other states or counties if allowed by the Special
Provisions.
* * * * *
12. Settlement of Claim
* * * * *
(b) * * *
(7) * * *
For example: You have a 100 percent share in 100 harvested acres of
potatoes in the unit, with a guarantee of 150 hundredweight per acre
and a price election of $4.00 per hundredweight. You are only able to
harvest 10,000 hundredweight. Your indemnity would be calculated as
follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee;
(2) 15,000 hundredweight x $4.00 price election = $60,000.00 value
of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count;
(6) $60,000.00-$40,000.00 = $20,000.00 loss; and
(7) $20,000.00 x 100 percent = $20,000.00 indemnity payment.
You also have a 100 percent share in 100 unharvested acres of
potatoes in the same unit, with a guarantee of 150 hundredweight per
acre and a price election of $3.60 per hundredweight. (The price
election for unharvested acreage is 90.0 percent of your elected price
election ($4.00 x 0.90 = $3.60.)) This unharvested acreage was
appraised at 35 hundredweight per acre for a total of 3,500
hundredweight as production to count. Your total indemnity for the
harvested and unharvested acreage would be calculated as follows:
(1) 100 acres x 150 hundredweight = 15,000 hundredweight guarantee
for the harvested acreage, and 100 acres x 150 hundredweight = 15,000
hundredweight guarantee for the unharvested acreage;
(2) 15,000 hundredweight guarantee x $4.00 price election =
$60,000.00 value of guarantee for the harvested acreage, and 15,000
hundredweight guarantee x $3.60 price election = $54,000.00 value of
guarantee for the unharvested acreage;
(3) $60,000.00 + $54,000.00 = $114,000.00 total value of guarantee;
(4) 10,000 hundredweight x $4.00 price election = $40,000.00 value
of production to count for the harvested acreage, and 3,500
hundredweight x $3.60 = $12,600.00 value of production to count for the
unharvested acreage;
(5) $40,000.00 + $12,600.00 = $52,600.00 total value of production
to count;
(6) $114,000.00-$52,600.00 = $61,400.00 loss; and
(7) $61,400.00 loss x 100 percent = $61,400.00 indemnity payment.
* * * * *
0
10. In Sec. 457.150, in the ``Dry bean crop insurance provisions'', in
section 7, revise paragraph (c) to read as follows:
Sec. 457.150 Dry bean crop insurance provisions.
* * * * *
7. Insured Crop
* * * * *
(c) In addition to the types of dry beans designated in the Special
Provisions, we will insure other types by written agreement if:
(1) The type you intend to plant has been demonstrated to be
adapted to the area. Evidence of adaptability must include:
(i) Results of test plots for two years and recommendations by a
university or seed company; or
(ii) Two years of production reports that indicate your experience
producing the type in your production area;
(2) You submit your production reports and prices received, or the
test plot results, and evidence of market potential, including the
price buyers are willing to pay for the type; and
(3) Both parties (you and us) enter into a written agreement
allowing insurance on the type in accordance with section 18 of the
Basic Provisions.
* * * * *
0
11. Amend Sec. 457.154 as follows:
0
a. Revise the introductory text and the undesignated text at the
beginning of the ``Processing Sweet Corn Crop Provisions'';
0
b. In section 2, revise paragraphs (a)(2) and (b); and
0
c. In section 11, in paragraph (c), remove the phrase ``15 day period''
and add the phrase ``15-day period'' in its place.
The revisions read as follows:
Sec. 457.154 Processing sweet corn crop insurance provisions.
The Processing Sweet Corn Crop Insurance Provisions for the 2025
and succeeding crop years are as follows:
United States Department of Agriculture
Federal Crop Insurance Corporation.
Processing Sweet Corn Crop Provisions
In return for your payment of premium and administrative fee for
the coverage, these Processing Sweet Corn Crop Provisions will be
attached to and made part of the Common Crop Insurance Policy, Basic
Provisions (Basic Provisions) subject to the terms and conditions in
your policy.
* * * * *
2. Unit Division
(a) * * *
(2) Section 34(c) of the Basic Provisions that allows optional
units is not applicable.
(b) For processor contracts that stipulate the number of acres to
be planted, optional units as provided in section 34(c) of the Basic
Provisions will apply.
* * * * *
0
12. Amend Sec. 457.166 as follows:
0
a. In the introductory text, remove the year ``2025'' and add the year
``2026'' in its place;
0
b. In section 1, revise the definition of ``prune''.
The revision reads as follows:
Sec. 457.166 Blueberry crop insurance provisions.
* * * * *
1. Definitions
* * * * *
Prune. A cultural practice performed to increase blueberry
production as follows:
(1) For lowbush blueberries, a process by which the acreage is
either burned or mowed; and
[[Page 93470]]
(2) For all other blueberries, a process by which parts of the bush
are cut off or the bush is cut back.
* * * * *
Marcia Bunger,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2024-27225 Filed 11-26-24; 8:45 am]
BILLING CODE 3410-08-P
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</html>Indexed from Federal Register on November 27, 2024.
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.