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Federal Register / Vol. 86, No. 123 / Wednesday, June 30, 2021 / Rules and Regulations
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Comments Related to 85 FR 38749
38760 Published June 29, 2020
The first final rule with request for comment was published in the Federal Register on June 29, 2020, 85 FR
3874938760 amending the ARPI
Regulations; CCIP Basic Provisions; and the Common Crop Insurance Regulations, Coarse Grains Crop Insurance Provisions Coarse Grains Crop Provisions. Comments were received from five commenters. Three comments were from individuals, whose comments were unrelated to the rule. One comment was from an insurance company. The last comment was from a trade association. FCIC
addressed editorial comments in the final rule with request for comment published in the Federal Register on November 30, 2020, 85 FR 76420
76428. The public comments and FCIC
responses regarding the Coarse Grains Crop Provisions will be addressed in a future final rule. The non-editorial public comments received regarding the June 29, 2020, final rule with request for comment related to the ARPI Basic Provisions and CCIP Basic Provisions and FCICs responses to the comments are as follows:
Comment: In the definition of second crop a commenter questioned whether the 60 percent actual production history APH penalty to the first insured crop described in section 3i would be applicable when a cover crop or volunteer crop is hayed, grazed, silaged, etc.
Response: No changes were made to the APH penalty within the June 29, 2020 rule; therefore, no additional changes will be made.
Comment: A commenter asked for the term otherwise harvested to be defined as it is a key term used in first and second crop provisions and determinations in prevented planting situations. Currently, the term is defined in the Prevented Planting Standards Handbook PPSH, but this definition has changed in the past and is subject to change again unless codified in the Rule.
Response: FCIC does not agree and will not add the definition to the CCIP
Basic Provisions. The PPSH defines otherwise harvested as harvested for reasons other than for haying, grazing, or cutting for silage, haylage, or baleage.
This could be for grain, seed, etc. No change will be made.
Comment: A commenter suggested clarifying the double cropping provisions and the example in section 15h7 as it is unclear as to whether there is a precedence based on which of
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the two crops under different plans of insurance is the first insured crop.
Response: FCIC understands the confusion when considering two crops under different plans of insurance and needing to determine which crop is the first insured crop. As explained in the June 29, 2020, final rule, the change to section 15h7 was intended to address the provisions that each insured crop is required to follow to determine if the double cropping requirements have been met. Given the nature of the issues that can come up if the two crops are under different plans, FCIC is working with stakeholders to determine what change is appropriate. Any related change to the regulation will be in a future rulemaking.
Comment: A commenter had concerns regarding the phrase than determined in 15i in section 15i3. As item 15i3 is situated within 15i, it would be clearer if the specific items of this subsection was referenced.
Response: FCIC agrees and has clarified this section is referencing the introductory paragraph of section 15i.
Comment: Two commenters recommended removing the requirement of a notice of loss to be filed in the quality loss provisions contained in section 36a3.
Response: FCIC does not agree with the recommended change to remove the notice of loss provisions. The Quality Loss Option allows insureds to replace post-quality adjustment production amounts with pre-quality adjustment production amounts in their APH
database for a given crop year. Prequality adjustment and post-quality adjustment production amounts are entry items on the production worksheet that is completed by the AIP
during the loss adjustment process. To maintain program integrity and actuarial soundness, it is pertinent to capture consistent production amounts across various crops and diverse farming operations. If there is not a notice of loss filed when there is a quality loss, the AIP will not be able to capture the appropriate production amounts on the production worksheet that are required to elect the quality loss option. Without a notice of loss provision in place, AIPs will be inconsistent when determining acceptable production records that may qualify for the quality loss option, resulting in varying AIP determinations and disparate treatment amongst insureds.
When there is a payable loss, AIPs will submit the production report entries to FCIC using the Policy Acceptance Storage System PASS. In a situation where there is a quality loss, but not a payable loss, AIPs will have
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the completed production worksheet in their internal loss files to get the proper production amounts required to elect the quality loss option. No change will be made.
Comment: A commenter stated the requirement to give the AIP notice of loss to allow replacement of post-quality actual yields for the previous crop year is currently only stated within section 36. Section 14 contains the requirements regarding notices a producer must provide to their AIP in the event of a loss. As this is implied to be a function of the loss process, the provisions should be in section 14 as well, so the producer is provided proper communication of this requirement.
Response: FCIC agrees and is adding a new section 14b6 to state the producer must give the AIP a notice of loss due to an insurable cause in the year of the crop loss to replace postquality actual yields with actual yields prior to quality loss adjustment.
Comments Related to 85 FR 76420
76428 Published November 30, 2020
The second final rule with request for comment was published in the Federal Register on November 30, 2020, 85 FR
7642076428 amending the Area Risk Protection Insurance ARPI
Regulations; Common Crop Insurance Policy CCIP, Basic Provisions;
Common Crop Insurance Regulations, Sunflower Seed Crop Insurance Provisions Sunflower Seed Crop Provisions; and Common Crop Insurance Regulations, Dry Pea Crop Insurance Provisions Dry Pea Crop Provisions. Comments were received from three commenters. One from an individual who simply stated they agreed with the rule, one from a trade association, and one from an individual.
The public comments received regarding the November 30, 2020, final rule with request for comment and FCICs responses to the comments are as follows:
Comment: A commenter noted section 15h7 deals with situations where a planted second crop follows a first insured crop. As such, it would not be applicable to the provisions of section 17f4 in situations where both the 1st insured and 2nd crops were prevented from planting nor where a 1st insured crop was planted and a 2nd crop was prevented. It would therefore appear appropriate to add the text of section 15h7 to section 17f4.
Response: As stated above, FCIC is working with stakeholders to determine what change is appropriate in section 15h7 and plans to make corresponding changes in section 17f4. Any related change to the
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