34606 Federal Register / Vol. 86, No. 123 / Wednesday, June 30, 2021 / Rules and Regulations 

percent for any 24-month period no 

earlier than the same period the ETA 

uses to designate LSAs for the current 

fiscal year. 

(4) Effective date of certain waivers. In 

areas for which the State certifies that 

data from the BLS or the BLS 

cooperating agency show a most recent 

12 month average unemployment rate 

over 10 percent; or the area has been 

designated as a Labor Surplus Area by 

the Department of Labor’s Employment 

and Training Administration for the 

current fiscal year, the State may begin 

to operate the waiver at the time the 

waiver request is submitted. FNS will 

contact the State if the waiver must be 

modified. 

(5) Duration of waiver. In general, 

waivers will be approved for one year. 

The duration of a waiver should bear 

some relationship to the documentation 

provided in support of the waiver 

request. FNS will consider approving 

waivers for up to one year based on 

documentation covering a shorter 

period, but the State agency must show 

that the basis for the waiver is not a 

seasonal or short term aberration. We 

reserve the right to approve waivers for 

a shorter period at the State agency’s 

request or if the data is insufficient. We 

reserve the right to approve a waiver for 

a longer period if the reasons are 

compelling. 

(6) Areas covered by waivers. States 

may define areas to be covered by 

waivers. We encourage State agencies to 

submit data and analyses that 

correspond to the defined area. If 

corresponding data does not exist, State 

agencies should submit data that 

corresponds as closely to the area as 

possible. 

* * * * * 

(h) Adjustments. FNS will make 

adjustments as follows: 

(1) Caseload adjustments. FNS will 

adjust the number of exemptions 

estimated for a State agency under 

paragraph (g)(2) of this section during a 

fiscal year if the number of SNAP 

recipients in the State varies from the 

State’s caseload by more than 10 

percent, as estimated by FNS. 

(2) Exemption adjustments. During 

each fiscal year, FNS will adjust the 

number of exemptions allocated to a 

State agency based on the number of 

exemptions in effect in the State for the 

preceding fiscal year. 

(i) If the State agency does not use all 

of its exemptions by the end of the fiscal 

year, FNS will increase the estimated 

number of exemptions allocated to the 

State agency for the subsequent fiscal 

year by the remaining balance. 

(ii) If the State agency exceeds its 

exemptions by the end of the fiscal year, 

FNS will reduce the estimated number 

of exemptions allocated to the State 

agency for the subsequent fiscal year by 

the corresponding number. 

* * * * * 

Cynthia Long, 

Acting Administrator, Food and Nutrition 

Service. 

[FR Doc. 2021–14045 Filed 6–29–21; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Parts 407 and 457 

[Docket ID FCIC–21–0005] 

RIN 0563–AC74 

Area Risk Protection Insurance 

Regulations and Common Crop 

Insurance Policy Basic Provisions 

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 Area 

Risk Protection Insurance (ARPI) 

Regulations and Common Crop 

Insurance Policy (CCIP), Basic 

Provisions. The intended effect of this 

action is to improve unit provisions and 

organic farming practice provisions, 

revise the definition of veteran farmer or 

rancher, and clarify provisions. The 

changes to the policy made in this rule 

are applicable for the 2022 and 

succeeding crop years for crops with a 

contract change date on or after June 30, 

2021. For all other crops, the changes to 

the policy made in this rule are 

applicable for the 2023 and succeeding 

crop years. 

DATES:

Effective date: This final rule is 

effective June 30, 2021. 

Comment date: We will consider 

comments that we receive by the close 

of business August 30, 2021. 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 either of the following 

methods, although FCIC prefers that you 

submit comments electronically through 

the Federal eRulemaking Portal: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov and search 

for Docket ID FCIC–21–0005. Follow the 

instructions for submitting comments. 

• Mail: Director, Product 

Administration and Standards Division, 

Risk Management Agency (RMA), US 

Department of Agriculture, P.O. Box 

419205, Kansas City, MO 64133–6205. 

In your comment, specify docket ID 

FCIC–21–0005. 

Comments will be available for 

viewing online at www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Francie Tolle; telephone (816) 926– 

7829; or email francie.tolle@usda.gov. 

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, marketbased risk management tools to 

strengthen the economic stability of 

agricultural producers and rural 

communities. The Risk Management 

Agency (RMA) administers the FCIC 

regulations. 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. 

FCIC amends the ARPI Basic 

Provisions (7 CFR 407) and the CCIP 

Basic Provisions (7 CFR 457.8). The 

changes to the policy made in this rule 

are applicable for the 2022 and 

succeeding crop years for crops with a 

contract change date on or after June 30, 

2021. For all other crops, the changes to 

the policy made in this rule are 

applicable for the 2023 and succeeding 

crop years. These changes resulted from 

public comments received on two final 

rules with request for comment. 


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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 

38749–38760) 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 FCIC’s 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 

3(i) 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 

15(h)(7) as it is unclear as to whether 

there is a precedence based on which of 

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 15(h)(7) 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 15(i)’’ in section 15(i)(3). As item 

15(i)(3) is situated within 15(i), it would 

be clearer if the specific item(s) of this 

subsection was referenced. 

Response: FCIC agrees and has 

clarified this section is referencing the 

introductory paragraph of section 15(i). 

Comment: Two commenters 

recommended removing the 

requirement of a notice of loss to be 

filed in the quality loss provisions 

contained in section 36(a)(3). 

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 

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 14(b)(6) 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 

76420–76428) 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 

FCIC’s responses to the comments are as 

follows: 

Comment: A commenter noted section 

15(h)(7) 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 

17(f)(4) 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 

15(h)(7) to section 17(f)(4). 

Response: As stated above, FCIC is 

working with stakeholders to determine 

what change is appropriate in section 

15(h)(7) and plans to make 

corresponding changes in section 

17(f)(4). Any related change to the 


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regulation will be in a future 

rulemaking. 

Comment: A commenter noted in 

section 17(e)(2) that an ‘‘uninsured 

second crop’’ would include: (1) A 

second crop planted after the Late 

Planting Period (LPP) or the Final Plant 

Date (if a LPP was not applicable); and 

(2) A second crop which an insured 

elected not to insure under the first and 

second crop provisions in order to 

preserve a 100% indemnity for the 1st 

insured crop. The commenter had 

program vulnerability concerns and 

suggested a clarification or that the 

provision be removed. The situation is 

rare, and the proposed remedy is 

unnecessary and has added significant 

complexity to the provision, along with 

increasing the likelihood the provisions 

will apply to situations other than those 

intended. This is due to the provision 

applying to every ‘‘uninsured 2nd crop’’ 

following a failed first insured crop. 

Response: This change was made to 

address the concern that in this 

situation the same physical acres are 

subtracted twice from the overall 

prevented planting eligible acres. This 

occurrence is extremely rare, but in 

years where widespread prevented 

planting is prevalent, such as in 2019, 

the provision provides important 

coverage for producers. No change will 

be made. 

Comment: A commenter 

recommended adding the phrase 

‘‘practice’’ in section 17(f)(1)(iv) like 

section 17(f)(1)(i). 

Response: FCIC will revise section 

17(f)(1)(iv) for consistency. 

Comment: A commenter suggested 

clarifying in section 17(f)(1) if proof of 

the rotation alone is sufficient or 

whether both proof of the rotation and 

inputs are required regarding the phrase 

‘‘or that acreage was part of a crop 

rotation.’’ 

Response: FCIC believes the wording 

is clear regarding the phrase ‘‘or that 

acreage was part of a crop rotation.’’ The 

word ‘‘or’’ being used at the beginning 

of this phrase means that proof of 

rotation alone is sufficient. No change 

will be made. 

Comment: Regarding section 17(f)(8), 

a commenter requested a system be in 

place to support the increase in seeking 

and verifying this information for 

policies that have transferred between 

agents and AIPs. 

Response: FCIC encourages producers 

to work with their agent in providing 

documentation. AIPs have access to data 

that can assist with verifying insurance 

history. There are other methods such as 

satellite imagery that may be beneficial 

when proving if a crop was planted and 

harvested. 

Comment: A commenter disagreed 

with the change in section 17(f)(8) and 

stated it negatively impacted farmers in 

California by eliminating prevented 

planting payments to farmers who 

leased land that is fallowed, unless the 

fallowed land is farmed the next two 

years, regardless of water availability 

and other challenges inherent in 

production agriculture. The land will be 

eligible only if the entire leased acreage 

is in production in at least one year out 

of four. A commenter suggested to phase 

in the new ‘‘1 in 4’’ requirement over 4 

years to allow farmers who use 

prevented planting coverage sufficient 

time to modify existing farming 

practices as needed (e.g., install 

irrigation systems, acquire water, and 

secure related financing). 

Response: The ‘‘1 in 4’’ requirement 

applies specifically to physical acreage 

(land); not the producer, the lease, or 

the farming operation. No change will 

be made. 

In addition to the changes described 

above, FCIC has made the following 

changes: 

ARPI Basic Provisions and CCIP Basic 

Provisions 

For both ARPI Basic Provisions (7 

CFR 407) and CCIP Basic Provisions (7 

CFR 457.8), FCIC is revising the 

definition of ‘‘veteran farmer or 

rancher’’ in section 1 to allow the 

spouse’s veteran status not to impact 

whether a person is considered a 

veteran farmer or rancher. The 

provisions define ‘‘person’’ as an 

individual, partnership, association, 

corporation, estate, trust, or other legal 

entity, and wherever applicable, a State 

or a political subdivision or agency of a 

State. The word ‘‘person’’ does not 

include the United States Government 

or any agency thereof. The provisions 

state all entity substantial beneficial 

interest holders must qualify 

individually as a veteran. The change to 

the definition of ‘‘veteran farmer or 

rancher’’ will clarify the exception that 

allows a legal entity, comprised only of 

the veteran and their spouse, to qualify 

as a veteran farmer or rancher when a 

qualifying veteran has a non-veteran 

spouse. For example, a veteran starts 

farming and forms a corporation with 

their non-veteran spouse. The veteran 

meets the veteran farmer or rancher 

requirements, but the spouse is a nonveteran. With this change, their 

corporation would qualify as a veteran 

farmer or rancher. 

ARPI Basic Provisions 

Other changes applicable only to the 

ARPI Basic Provisions (7 CFR 407) are: 

Section 1—FCIC is revising the 

definition of ‘‘acreage reporting date’’ to 

replace the term ‘‘actuarial documents’’ 

with ‘‘Special Provisions.’’ This change 

is being made to be consistent with the 

CCIP Basic Provisions. 

FCIC is removing the definition of 

‘‘NASS’’ (National Agricultural 

Statistics Service) for greater 

transparency regarding the data used to 

determine area yield guarantees and 

indemnities, because FCIC no longer 

uses NASS data but instead RMA data. 

In addition to removing the definition, 

FCIC is removing any references to 

NASS data throughout the provisions. 

Therefore, FCIC is removing paragraph 

15(e) and redesignating paragraphs (f) 

and (g) as (e) and (f). 

CCIP Basic Provisions 

Other changes applicable only to the 

CCIP Basic Provisions (7 CFR 457.8) are: 

Section 34—FCIC is adding a new 

section 34(a)(4)(ix) to allow Crop 

Provisions to have enterprise units (EU) 

by practice, type, or other insurance 

features. In 2018, FCIC developed the 

multi-county enterprise unit (MCEU) 

endorsement. For the 2020 crop year, 

EUs by cropping practice for following 

another crop and not following another 

crop (FAC/NFAC) were made available 

in select grain sorghum and soybean 

counties. For the 2021 crop year, when 

a producer elects and fails to qualify for 

EUs on both irrigation or cropping 

practices they have an additional option 

to keep EU on practice that meets EU 

qualifications and have basic or optional 

units on the other practice that does not 

meet EU qualifications. For example, a 

producer elects EU for both FAC and 

NFAC cropping practices, but does not 

qualify for EU for both practices. If 

discovery for not qualifying is on or 

before the acreage reporting date, the 

producer has an additional option to 

elect an EU on one cropping practice 

and basic or optional units on the other 

cropping practice. FCIC continues to 

receive requests from stakeholders to 

add the EU structure for a crop or allow 

the EU structure on a different basis 

than currently allowed. FCIC continues 

to review these requests individually to 

determine the feasibility of 

implementing the EU request. With this 

change, FCIC will have the flexibility to 

make these subsequent EU changes in 

individual Crop Provisions. 

Section 37—FCIC is revising sections 

37(c) and (e) to allow a producer to 

report acreage as certified organic, or as 

acreage in transition to organic, when 

the producer certifies that they have 

requested, in writing, a written 

certification or other written 

documentation from a certifying agent 


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on or before the acreage reporting date 

(ARD). The producer may notify their 

insurance agent by phone, email, text, or 

other electronic communication 

method. Following the notification, the 

organic plan or certificate must be in 

place prior to coverage ending in 

accordance with the policy. The 

producer’s acreage will remain insured 

under the practice reported on the 

acreage reporting date unless they have 

a loss. If the producer has a loss and 

does not have a certificate or plan in 

place at the time the claim is finalized, 

then the acreage will be insured under 

the practice for which it qualifies. 

Currently, policy requires producers 

with certified organic or acreage in 

transition to organic to have written 

certification or written documentation 

from a certifying agent by the ARD 

which shows an organic plan is in effect 

for the acreage. Procedures allow that a 

certificate and plan must be in place 

each year to qualify for organic or 

organic transitional practices. A 

previous certificate or plan may be used 

to qualify for insurance until a plan can 

be updated by a certifying agent. 

The organic industry presented 

concerns to FCIC, Farm Service Agency, 

and Agricultural Marketing Service 

regarding producers’ inability to have 

organic plans and certificates ‘‘in effect’’ 

by their crop insurance policy ARD due 

to COVID restrictions limiting travel and 

face to face interaction. To mitigate 

these concerns and provide flexibility, 

FCIC provided relief through Manager’s 

Bulletins: MGR–20–0013 and MGR–20– 

0026 and is incorporating the Manager’s 

Bulletins in this rule. With this change, 

FCIC recognizes the on-going challenges 

that the organic producers face and 

provides flexibility, while also ensuring 

the Federal crop insurance program 

continues to serve as a vital risk 

management tool and organic 

regulations remain in effect. 

Effective Date and Notice and Comment 

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. 

For major rules, the Congressional 

Review Act requires a delay to 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 June 30, 2021. 

Although not required by APA or any 

other law, FCIC has chosen to request 

comments on this rule. 

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 

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) 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. In addition to 

your substantive comments on this rule, 

we invite your comments on how to 

make the rule easier to understand. For 

example: 

• Are the requirements in the rule 

clearly stated? Are the scope and intent 

of the rule clear? 

• Does the rule contain technical 

language or jargon that is not clear? 

• Is the material logically organized? 

• Would changing the grouping or 

order of sections or adding headings 

make the rule easier to understand? 

• Could we improve clarity by adding 

tables, lists, or diagrams? 

• Would more, but shorter, sections 

be better? Are there specific sections 

that are too long or confusing? 

• 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 


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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 Federal 

Domestic Assistance Program listed in 

the Catalog of Federal Domestic 

Assistance 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. 

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 https://

www.usda.gov/oascr/how-to-file-aprogram-discrimination-complaint 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: OAC@

usda.gov. 

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 2022 and succeeding 

crop years for crops with a contract 

change date on or after June 30, 2021, 

and for the 2023 and succeeding crop 

years for all other crops, as follows: 

PART 407—AREA RISK PROTECTION 

INSURANCE REGULATIONS 

■ 1. The authority citation for 7 CFR 

part 407 continues to read as follows: 

Authority: 7 U.S.C. 1506(l) and 1506(o). 

■ 2. Amend § 407.9 by: 

■ a. In section 1: 

■ i. Revise the definition of ‘‘acreage 

reporting date’’; 

■ ii. Remove the definition of ‘‘NASS’’; 

and 

■ iii. Revise the definition of ‘‘veteran 

farmer or rancher;’’ 

■ b. In section 15: 

■ i. Remove paragraph (e); 

■ ii. Redesignate paragraphs (f) and (g) 

as paragraphs (e) and (f); and 

■ iii. Revise redesignated paragraph (f). 

The revisions read as follows: 

§ 407.9 Area risk protection insurance 

policy. 

* * * * * 

1. Definitions 

* * * * * 

Acreage reporting date. The date 

contained in the Special Provisions by 

which you are required to submit your 

acreage report. 

* * * * * 

Veteran farmer or rancher. 

(1) An individual who has served 

active duty in the United States Army, 

Navy, Marine Corps, Air Force, or Coast 

Guard, including the reserve 

components; was discharged or released 

under conditions other than 

dishonorable; and: 

(i) Has not operated a farm or ranch; 

(ii) Has operated a farm or ranch for 

not more than 5 years; or 

(iii) First obtained status as a veteran 

during the most recent 5-year period. 

(2) A person, other than an 

individual, may be eligible for veteran 

farmer or rancher benefits if all 

substantial beneficial interest holders 

qualify individually as a veteran farmer 

or rancher in accordance with paragraph 

(1) of this definition; except in cases in 

which there is only a married couple, 

then a veteran and non-veteran spouse 

are considered a veteran farmer or 

rancher. 

* * * * * 

15. Yields 

* * * * * 

(f) Yields used under this insurance 

program for a crop may be based on 

crop insurance data, other USDA data, 

or other data sources, if elected by FCIC. 

* * * * * 

PART 457—COMMON CROP 

INSURANCE REGULATIONS 

■ 3. The authority citation for part 457 

continues to read as follows: 

Authority: 7 U.S.C. 1506(l) and 1506(o). 

■ 4. Amend § 457.8 as follows: 

■ a. In section 1 of the ‘‘Common Crop 

Insurance Policy,’’ revise the definition 

of ‘‘veteran farmer or rancher’’; 

■ b. In section 14 of the ‘‘Common Crop 

Insurance Policy,’’ add paragraph (b)(6); 

■ c. In section 15 of the ‘‘Common Crop 

Insurance Policy,’’ in paragraph (i)(3), 

add the phrase ‘‘the introductory 

paragraph of section’’ after the phrase 

‘‘than determined in’’; 


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Federal Register / Vol. 86, No. 123 / Wednesday, June 30, 2021 / Rules and Regulations 34611 

■ d. In section 17 of the ‘‘Common Crop 

Insurance Policy,’’ revise paragraph 

(f)(1)(iv); 

■ e. In section 34 of the ‘‘Common Crop 

Insurance Policy,’’ add paragraph 

(a)(4)(ix); and 

■ f. In section 37 of the ‘‘Common Crop 

Insurance Policy,’’ revise paragraphs (c) 

and (e). 

The additions and revisions read as 

follows: 

§ 457.8 The application and policy. 

* * * * * 

Common Crop Insurance Policy 

* * * * * 

1. Definitions 

* * * * * 

Veteran farmer or rancher. (1) An 

individual who has served active duty 

in the United States Army, Navy, 

Marine Corps, Air Force, or Coast 

Guard, including the reserve 

components; was discharged or released 

under conditions other than 

dishonorable; and: 

(i) Has not operated a farm or ranch; 

(ii) Has operated a farm or ranch for 

not more than 5 years; or 

(iii) First obtained status as a veteran 

during the most recent 5-year period. 

(2) A person, other than an 

individual, may be eligible for veteran 

farmer or rancher benefits if all 

substantial beneficial interest holders 

qualify individually as a veteran farmer 

or rancher in accordance with paragraph 

(1) of this definition; except in cases in 

which there is only a married couple, 

then a veteran and non-veteran spouse 

are considered a veteran farmer or 

rancher. 

* * * * * 

14. Duties in the Event of Damage, Loss, 

Abandonment, Destruction, or 

Alternative Use of Crop or Acreage 

* * * * * 

(b) * * * 

(6) You must give us notice in 

accordance with section 36(a)(3) to 

replace post-quality actual yields for 

previous crop years. 

* * * * * 

17. Prevented Planting 

* * * * * 

(f) * * * 

(1) * * * 

(iv) The acreage that was prevented 

from being planted constitutes at least 

20 acres or 20 percent of the total 

insurable acreage in the field and you 

provide proof that you intended to plant 

another crop, crop type, or follow both 

practices on the acreage (including, but 

not limited to inputs purchased, applied 

or available to apply, or that acreage was 

part of a crop rotation). 

* * * * * 

34. Units 

(a) * * * 

(4) * * * 

(ix) You may elect enterprise units as 

allowed by the Crop Provisions if 

provided in the actuarial documents. 

* * * * * 

37. Organic Farming Practices 

* * * * * 

(c) You must provide the following 

organic records, as applicable: 

(1) By the acreage reporting date, 

except as allowed by section 37(c)(2), 

you must have: 

(i) For certified organic acreage, a 

written certification in effect from a 

certifying agent indicating the name of 

the entity certified, effective date of 

certification, certificate number, types of 

commodities certified, and name and 

address of the certifying agent (A 

certificate issued to a tenant may be 

used to qualify a landlord or other 

similar arrangement). 

(ii) For transitional acreage, a 

certificate as described in section 

37(c)(1)(i), or written documentation 

from a certifying agent indicating an 

organic plan is in effect for the acreage. 

(iii) For certified organic and 

transitional acreage, records from the 

certifying agent showing the specific 

location of each field of certified 

organic, transitional, buffer zone, and 

acreage not maintained under organic 

management. 

(2) If you do not meet the 

requirements in section 37(c)(1)(i) or 

(ii), you must provide documentation 

that you have requested, in writing, 

your written certification or organic 

plan by the acreage reporting date. 

(i) Your certificate or plan must be in 

effect prior to the earlier of the end of 

the insurance period or when coverage 

ends as provided in section 11(b). 

(ii) Your acreage will remain insured 

under the practice you reported on the 

acreage reporting date unless you have 

a loss. If you have a loss and do not 

have a certificate or plan in place at the 

time the claim is finalized in accordance 

with the applicable policy provisions, 

then your acreage will be insured under 

the practice for which it qualifies. 

* * * * * 

(e) If any acreage qualifies as certified 

organic or transitional acreage on the 

date you report such acreage, and such 

certification is subsequently revoked or 

suspended by the certifying agent, or the 

certifying agent does not consider the 

acreage as transitional acreage for the 

remainder of the crop year, that acreage 

will remain insured under the reported 

practice for which it qualified at the 

time the acreage was reported. Any loss 

due to failure to comply with organic 

standards will be considered an 

uninsured cause of loss. 

* * * * * 

Richard H. Flournoy, 

Acting Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. 2021–13939 Filed 6–29–21; 8:45 am] 

BILLING CODE 3410–08–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 741 

[NCUA 2020–0114] 

RIN 3133–AF30 

Capitalization of Interest in Connection 

With Loan Workouts and Modifications 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending its regulations to remove the 

prohibition on the capitalization of 

interest in connection with loan 

workouts and modifications. The final 

rule also establishes documentation 

requirements to help ensure that the 

addition of unpaid interest to the 

principal balance of a mortgage loan 

does not hinder the borrower’s ability to 

become current on the loan. The Board 

has also taken the opportunity afforded 

by the rulemaking to make several 

technical changes to the regulations to 

improve their clarity and update certain 

references. The final rule follows 

publication of the December 4, 2020, 

proposed rule and takes into 

consideration the public comments on 

the proposed rule. After careful 

consideration, the Board has decided to 

adopt the proposed rule without change. 

DATES: Effective July 30, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Policy: Alison L. Clark, Chief 

Accountant, and Timothy C. Segerson, 

Deputy Director, Office of Examinations 

and Insurance, at (703) 518–6360; Legal: 

Ariel Pereira and Gira Bose, Senior Staff 

Attorneys, Office of General Counsel, at 

(703) 518–6540. 

SUPPLEMENTARY INFORMATION: 

I. Background: The Board’s December 4, 

2020, Proposed Rule 

II. Legal Authority 

III. Discussion of Public Comments Received 

on the December 4, 2020, Proposed Rule 

IV. This Final Rule 


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