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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Rules and Regulations
If the insured elects enterprise units by type and does not qualify for separate enterprise units, there are options based upon whether enterprise units are elected for one or multiple types and the timing of the discovery:
If the insured elects separate enterprise units for multiple types and the AIP discovers the enterprise unit qualifications are not separately met for all types:
1 On or before the acreage reporting date the insured may elect to insure:
a All types in which they elected an enterprise unit for meeting the requirements in section 34a4 of the Basic Provisions as separate enterprise units, and basic or optional units for any acreage that is not reported and insured as an enterprise unit, whichever the insured reports on the acreage report and for which the insured qualifies; or b One enterprise unit for all acreage of the crop in the county provided the insured meets the requirements in section 34a4 of the Basic Provisions;
or c Basic or optional units for all acreage of the crop in the county, whichever the insured reports on the acreage report and for which the insured qualifies.
2 After acreage reporting date, the insured will have one enterprise unit for all acreage of the crop in the county provided they meet the requirements in section 34a4 of the Basic Provisions.
If they dont meet the requirements in section 34a4, the AIP will assign a basic unit structure for all acreage of the crop in the county.
If an insured elects an enterprise unit for only one type and the AIP
discovers the enterprise unit qualifications are not met for that type:
1 On or before the acreage reporting date, the insureds unit division for all acreage of the crop in the county will be based on basic or optional units, whichever the insured reports on the acreage report and for which the insured qualifies; or 2 After the acreage reporting date, the AIP will assign the basic unit structure for all acreage of the crop in the county.
FCIC is also revising the first sentence in redesignated paragraph b to rephrase the language to eliminate the need to list all optional unit choices from the Basic Provisions. This allows the Small Grains Crop Provisions to follow the Basic Provisions optional unit division language when and if those provisions in the Basic Provisions are updated, without a new regulation.
In newly redesignated paragraph b, FCIC is revising the reference to section 34b of the Common Crop Insurance
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Policy Basic Provisions to 34c. Section 34c is the appropriate reference.
In newly redesignated paragraph b, FCIC is simplifying the paragraph by removing the list of insurable types that may be insured as separate optional units and replacing with a statement that separate optional units may be established by any insured wheat type as long as each optional unit contains only initially-planted acreage of the type. The insured type can be listed in the actuarial documents or insured by written agreement to qualify. This change is needed in the event the insured elects enterprise units by type but does not qualify for enterprise units.
6. Section 3FCIC is revising the lead-in to paragraph b2. This paragraph addresses counties that have both winter and spring sales closing dates. In some counties, the winter sales closing date only applies if the Winter Coverage Endorsement is elected. While these specific counties have a winter and a spring sales closing date listed in the actuarial documents, paragraph b2 is not referring to these counties.
Paragraph b2 is only intended to apply to those counties where both winter and spring sales closing dates are applicable regardless of the Winter Coverage Endorsement election.
Therefore, the lead-in is revised to include, in parenthesis, a statement that excludes dates specific to the Winter Coverage Endorsement.
FCIC is also revising paragraphs b2i and ii to replace the phrase insured fall planted acreage with the phrase insurable winter planted acreage. This paragraph provides guidance regarding the date by which producers can make changes to their insurance coverage depending on whether they have insured fall-planted acreage. The provisions state that if producers have insured fall-planted acreage, no changes can be made after the fall sales closing date. If producers do not have insured fall-planted acreage, then they can make changes up until the spring sales closing. All acreage of the crop in the county must be insured. Therefore, if the producer plants fall-planted acreage and it meets the insurability requirements in section 6, then it must be insured. FCIC
received input from AIPs that the phrase insured fall planted acreage indicates that if producers planted fall-planted acreage but do not insure it, then they have until the spring sales closing date to make changes to the insurance coverage on the spring-planted acreage.
That is not the intent of the provisions.
Therefore, FCIC is revising the language to indicate if producers planted insurable fall-planted acreage, then no
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changes may be made after the fall sales closing date. As explained above, fall is also being replaced with winter, as appropriate.
7. Section 5FCIC is removing the phrase Special Provisions and replacing it with the phrase actuarial documents. The cancellation and termination dates identified in this section are also found in the actuarial documents, rather than the Special Provisions. If FCIC determines that the cancellation or termination dates need to differ than what is provided in the Crop Provisions, then the modified date would be identified in the actuarial documents.
8. Section 6FCIC is removing paragraph e. This paragraph refers to the Malting Barley Price and Quality Endorsement MBPQE published at 7
CFR 457.118. The MBPQE is no longer available to barley producers. Another endorsement, Malting Barley Endorsement was approved by the FCIC
Board of Directors under Section 508h of the Federal Crop Insurance Act. The Malting Barley Endorsement replaced the MBPQE in 2016 and is not codified.
Therefore, theres no need to include a reference to the MBPQE within the Small Grains Crop Provisions.
9. Section 7FCIC is revising the lead-in sentence to paragraph a1 to remove the reference to oats. FCIC is adding oats to paragraph a2.
Paragraph a1 is for the crops for which there is only one planting season either winter or spring; whereas paragraph a2 is for the crops that have more than one planting season winter and spring. In all counties where oats are insured, FCIC insures winter-planted oats, spring-planted oats or both. Therefore, oats are more appropriately placed in paragraph a2
and are added within paragraph a2 in every place there is a reference to barley and wheat.
FCIC is also revising paragraphs a2ii and iii to change the phrase fall final planting date and fall and spring final planting dates to winter type and winter and spring types, respectively.
FCIC is revising paragraph a2iiiA to add the word acreage at the end of the following phrase: Any winter barley, oat or wheat. By adding acreage to this phrase, this lead-in phrase is consistent with the lead-in phrase in paragraph a2iiiB. FCIC
is also revising the phrase Any winter barley, oat or wheat to add a comma after oat.
FCIC is also adding paragraph a2iiiD. This paragraph addresses situations, in counties with both winter and spring types listed in the actuarial
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