Crop Insurance Update: FCIC Finalizes Changes to Federal Crop Insurance

Written by M. Sean High - Staff Attorney

On August 12, 2016, the United States Department of Agriculture (USDA) Federal Crop Insurance Corporation (FCIC) published notice in the Federal Register (81 FR 53657) of a final rule changing the Code of Federal Regulation’s General Administrative Regulation—Subpart V—Submission of Policies, Provisions of Policies, Rates of Premium, and Non-Reinsured Supplemental Policies (7 CFR part 400, subpart V). 

According to FCIC, the final rule provides greater clarity of “existing regulations [and] lessen[s] the burden on submitters of crop insurance policies, provisions of policies, or rates of premium under section 508(h) of the [Federal Crop Insurance] Act (Act).” FCIC stated that the final rule also supplies “guidance on the submission and payment for concept proposals under section 522 of the Act” and furnishes “provisions for submission and approval of index-based weather plans of insurance as authorized by section 523(i) of the Act,” Finally, FCIC declared that the final rule “incorporate[s] changes that are consistent with those made in the Common Crop Insurance Policy Basic Provisions.”  

According to FCIC, the final rule’s changes to 7 CFR part 400, subpart V are the result of a notice of proposed rulemaking published in the Federal Register on February 25, 2015, which provided the public with a 60 day comment period (80 FR 10008—10022).  FCIC stated that the agency received 80 comments on the proposed rule from 10 commenters including: “insurance providers, insurance organizations, grower organizations, crop insurance product developers, and a business council.”

The effective date for the final rule is August 12, 2016.