Federal Register - June 25, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 120 / Friday, June 25, 2021 / Rules and Regulations documents, when acreage of the winter type is planted after the end of the late planting period. The Basic Provisions says that any acreage planted after the end of the late planting period may be insured if the producer chooses to insure it. If insured, then the acreage will be insured with a reduced guarantee equal to the production guarantee times the prevented planting coverage level percentage specified in the actuarial documents. In counties with both winter and spring types listed in the actuarial documents, winter types are not eligible for prevented planting so there is no prevented planting coverage level percentage listed in the actuarial documents to assign to it. Without a prevented planting coverage level, section 8b2 of the Basic Provisions applies and the winter types are not insurable e.g., the appropriate rates are not available to insure the crop. This new provision allows the acreage to be insured in the spring as the spring type, if the producer chooses to insure it and the AIP determines there is an adequate stand. This change treats all producers similarly to producers who plant winter types in counties with only a spring type listed in the actuarial documents.
FCIC is revising paragraph a2iv by revising the phrase . . .any acreage of spring barley, oat or wheat. . . to read . . .any spring barley, oat or wheat acreage. . . Similarly, FCIC is revising paragraph a2v by revising the phrase . . .any acreage of winter barley, oat or wheat. . . to read . . .any winter barley, oat or wheat acreage. . . These revisions are consistent with revisions made in paragraph a2iii.
In paragraphs a2iv and v, FCIC
is replacing the phrase spring final planting date with spring type in both places to be consistent with changes elsewhere in the Crop Provisions.
Also in paragraph a2v, FCIC is revising the phrase is not insured to will not be insured. This is consistent with the language that was added in paragraph a2iiiD.
FCIC is also revising paragraph a2v to remove the phrase agree in writing as this could be misinterpreted to mean a written agreement, which is not the intent of the language, and could result in providing insurance via written agreement when it was not intended or appropriate. FCIC is replacing that phrase with language to clarify the AIP
must inspect and give written confirmation that the acreage has an adequate stand in the spring to produce the yield used to determine your production guarantee. These
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clarifications will reduce the likelihood of fraud, waste, and abuse.
FCIC is revising paragraph a2vD
by revising the phrase . . . any acreage of such winter barley, oat or wheat. . .
to read . . .any such winter barley, oat, or wheat acreage . . . These revisions are consistent with revisions made in paragraphs a2iiiv.
FCIC is also revising paragraphs a2v introductory text and a2vA, B, and D to change all references of fall planted to winter for consistency with changes elsewhere.
FCIC is revising paragraph a2vE
to change the reference of fall planted acreage to winter planted acreage for consistency with changes elsewhere.
10. Section 9FCIC is replacing the phrase winter coverage endorsement with Winter Coverage Endorsement because it is the title of an endorsement.
FCIC is replacing the phrase spring final planting date with the phrase spring type in paragraph a4 to accurately refer to the Special Provisions where insurable types and practices are listed.
FCIC is revising paragraph b. The phrase fall final planting date including final planting dates in December, January and February is replaced with winter type to accurately refer to the Special Provisions where insurable types and practices are listed.
FCIC is revising paragraph e to replace the phrase crop type with type in the five places it appears. This is the only paragraph in the Crop Provisions where crop type is used.
For consistency throughout the Crop Provisions, the word crop is removed.
11. Section 11FCIC is adding paragraph d1v to provide flexibility in the Special Provisions to update the moisture levels for each crop if it is determined that a level should be different than what is provided in the Crop Provisions.
FCIC is revising paragraph d4 by replacing the phrase contained in with the phrase calculated in accordance with. The current provisions state that the quality adjustment factor is contained in the Special Provisions. However, there is no such factor stated in the Special Provisions. Instead, the quality adjustment factor is calculated using several different steps that are contained in the Special Provisions.
12. Section 13FCIC is removing the phrase spring final planting date and replacing it with the phrase spring type. FCIC is also revising the paragraph to move the first sentence to the end of the paragraph for ease of reading.
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Comments Requested on Whether To Retain Section 9a5
Section 9a5 states that damage must occur after the winter final planting date for the producer to be eligible for a replant payment, in counties with both winter and spring final planting dates. Provisions in section 7a2iii provide guidance on whether a crop should be replanted if damage occurs any time before the spring final planting date, which would also encompass any time before the winter final planting date since the winter final planting date comes before the spring final planting date in the crop year. As such, a producer is required to replant if damage occurs prior to the winter final planting date; however, no replanting payment is made in that timeframe. FCIC has received requests to remove this provision, thereby allowing replanting payments to be made in situations where damage occurs prior to the winter final planting date in counties with both winter and spring final planting dates. FCIC has also received opposing feedback requesting the provision remain intact because it is difficult or impossible to make a determination prior to the winter final planting date that acreage needs to be replanted or that it is practical to replant, except in cases of widespread weather events.
In addition to consideration of the future of section 9a5, there are other provisions that may be affected by its removal. Section 9b states that no replanting payment is available in any circumstance for damage in counties with only a winter final planting date.
Producers in these counties, like producers in counties with both winter and spring final planting dates, are required to replant if damage occurs prior to the winter final planting date, but no replanting payment is available.
FCIC has received opposition to remove this provision, which, if removed, would allow replanting payments prior to the winter final planting date. In addition to the same opposing feedback FCIC received regarding removal of section 9a5, FCIC also received feedback that in counties where only a winter type is insurable, there is a short window to replant a damaged crop.
Replanting in these counties may contribute to later planting dates when soil temperatures may be too low for germination. Unlike in counties where both winter and spring types are insurable, there is not an opportunity for producers to replant a damaged winter crop in the spring to retain coverage using the winter guarantee.
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