[Federal Register Volume 76, Number 12 (Wednesday, January 19, 2011)]
[Proposed Rules]
[Pages 3046-3054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-930]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 76, No. 12 / Wednesday, January 19, 2011 / 
Proposed Rules

[[Page 3046]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 185

[Document No. AMS-TM-10-0088; TM-08-07]
RIN 0581-AC83


Farmers' Market Promotion Program Regulation; Notice of Request 
for Approval of a New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Notice of proposed rule making and request for comments.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would establish regulations for the 
Agricultural Marketing Service's Farmers' Market Promotion Program 
(FMPP). The FMPP is a competitive grant program that makes funds 
available to eligible entities for projects to establish, expand, and 
promote farmers markets, roadside stands, community-supported 
agriculture programs, agritourism activities, and other direct 
producer-to-consumer marketing opportunities. The proposed rule would 
establish eligibility and application requirements, the review and 
approval process, and grant administration procedures for the FMPP. 
Additionally in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. chapter 35), the Agricultural Marketing Service (AMS) announces 
its intention to request from the Office of Management and Budget (OMB) 
approval of a new information collection. Once approved, AMS will 
request OMB to merge this new collection into the currently approved 
information collection OMB 0581-0235, entitled Farmers' Market 
Promotion Program.

DATES: Comments received by March 21, 2011 will be considered. Pursuant 
to the Paperwork Reduction Act, comments on the information collection 
burden that would result from this action must be received by March 21, 
2011.

FOR FURTHER INFORMATION CONTACT: Contact Carmen Humphrey, Branch Chief, 
Marketing Grants and Technical Services Branch, Marketing Services 
Division, Transportation and Marketing Programs, Agricultural Marketing 
Service (AMS), USDA; 202/694-4000.

ADDRESSES: Interested parties may comment on the proposed rule using 
the following procedures:
    <bullet> Mail to: Errol Bragg, Director, Marketing Services 
Division, Transportation and Marketing Programs, AMS, USDA, 1800 M 
Street, NW., Room 3012-South Tower, Washington, DC, 20036; or
    <bullet> Internet: http://www.regulations.gov gov.
    <bullet> Written comments should reference docket number AMS-TM-10-
0088, TM-08-07; and the section number of the regulations the comment 
pertains to.
    <bullet> Clearly indicate whether you are in favor of or against 
the proposed rule and your reason for the comment. Include recommended 
changes, as appropriate, and any relevant documentation that supports 
your comments. Only relevant materials should be submitted.
    All comments submitted, including name and address, if provided, 
will be included in the record and made available to the public via 
http://www.regulations.gov.
    Pursuant to the Paperwork Reduction Act, comments regarding the 
accuracy of the burden estimate, ways to minimize the burden, including 
the use of automated collection techniques or other forms of 
information collection technology, or any other form of information 
collection, should be sent to the above address. In addition, comments 
concerning the information collection should also be sent to the Desk 
Office of Agriculture, Office of Information Technology and Regulatory 
Affairs, OMB, New Executive Office Building, 725 17th Street, NW., Room 
725, Washington, DC 20503.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The proposed rule has been determined to be not significant for the 
purposes of Executive Order 12866 and therefore has not been reviewed 
by the Office of Management and Budget.

Public Law 104-4

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) requires Federal agencies to prepare a written assessment of the 
costs, benefits, and other effects of proposed or final rules that 
include a Federal mandate likely to result in the expenditure by State, 
local, or tribal governments, in the aggregate, or by the private 
sector, of more than $100 million annually (adjusted for inflation with 
a base year of 1995). This proposed rule does not meet the definition 
of a Federal mandate because the resulting annual State expenditures 
would not exceed the $100 million threshold. The program is voluntary 
and local or tribal governments that choose to apply and qualify are 
eligible to receive grant funds.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
There are no administrative procedures that must be exhausted prior to 
any judicial challenge to the provisions of this rule.

Executive Order 12372

    This program is subject to Executive Order 12372, which requires 
intergovernmental consultation with State and local officials. (See 7 
CFR part 3015 subpart V).

Executive Order 13132

    It has been determined that this rule does not have sufficient 
Federalism implications to warrant the preparation of a Federalism 
Assessment. The provisions contained in this rule would not have a 
substantial direct effect on States or their political subdivisions or 
on the distribution of power and responsibilities among the various 
levels of government.

Regulatory Flexibility Act

    The AMS certifies that this rule will not have a significant 
economic impact on a substantial number of small entities as defined in 
the Regulatory Flexibility Act, Public Law 96-534, as amended (5 U.S.C. 
601 et. seq.) (RFA). The RFA defines three types of small entities: 
small businesses, small organizations, and small governmental 
jurisdictions.
    By nature of the FMPP grant program, this proposed rule would 
establish eligibility and application requirements for funding 
opportunities available to numerous small entities, including 
agricultural cooperatives, producer

[[Page 3047]]

networks, or producer associations; local governments; nonprofit 
corporations; public benefit corporations; economic development 
corporations; regional farmers' market authorities; and Tribal 
governments.
    Producer networks and producer associations were added to the 
eligible entity list under the 2008 Farm Bill. Since 2006, however, 
agricultural cooperatives represented just 4.4 percent, producer 
networks represented 0.4 percent, and producer associations represented 
only 0.3 percent of all applications received under FMPP. These 
entities represent a total of only 5.1 percent of all FMPP applicants. 
Over the past 4 years the majority of all applications, or 67.9 
percent, were received from nonprofit corporations. AMS anticipates 
this trend will continue each year through fiscal year 2012.
    AMS considers for-profit agricultural cooperatives, producer 
networks, and producer associations as almost exclusively small 
agricultural firms, defined by the Small Business Administration (SBA) 
(13 CFR 121.201) as those having annual receipts of less than 
$7,000,000 and that consist of a majority of small agricultural 
producers, defined by SBA as those having annual receipts of less than 
$750,000. The RFA defines a small organization as any not-for-profit 
enterprise that is independently owned and operated and not dominant in 
its field. The RFA also defines a small governmental jurisdiction as 
governments of cities, counties, town, townships, villages, school 
districts, or special districts with a population less than 50,000. AMS 
expects that these small organizations and governmental jurisdictions 
would represent or advocate on behalf of constituent groups comprised 
predominately of small producers.
    Additionally this proposed rule would establish procedures for 
these entities to apply for grant funds, provide a means of submitting 
payment requests, and define reporting requirements for awarded 
organizations. In addition, there are an estimated 69 peer reviewers 
who would be comprised of representatives from entities that are 
eligible to apply for FMPP grant funds and which AMS expects to be 
predominately small entities.
    The proposed rule would not unduly burden or impose any 
discriminatory requirements for these eligible small entities or erect 
barriers that would restrict their ability to compete for available 
grant funds in the market.

Catalog of Federal Domestic Assistance

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.168, Farmers' Market Promotion Program.

Authority for the Farmers' Market Promotion Program

    This program would provide grant funds to establish, expand, and 
promote direct producer-to-consumer marketing projects. The FMPP grant 
program is authorized by the Farmer-to-Consumer Direct Marketing Act of 
1976 (7 U.S.C. 3001-3006) and the amendment to the 1976 Act, the 
Farmers' Market Promotion Program (7 U.S.C. 3005).

Background

    The FMPP was created through amendments to the Farmer-to-Consumer 
Direct Marketing Act of 1976. The grants authorized by the FMPP, 
originally funded in 2006 and revised under the 2008 Farm Bill (the 
Food, Conservation, and Energy Act of 2008, Pub. L. 110-246), are 
targeted to help improve and expand domestic farmers markets, roadside 
stands, community-supported agriculture programs, agritourism 
activities, and other direct producer-to-consumer marketing 
opportunities.

Who administers FMPP, award grants, and oversees projects?

    AMS Transportation and Marketing Programs' Marketing Services 
Division administers and oversees the implementation of projects under 
FMPP.

Who Is eligible to apply for FMPP funds? ~ Eligible entities

    Eligible entities under FMPP are agricultural cooperatives, 
producer networks or associations (added under 2008 Farm Bill); local 
governments; nonprofit corporations; public benefit corporations; 
economic development corporations; regional farmers' market 
authorities; and Tribal governments. All entities must be owned, 
operated, and located within one of the 50 U.S. States or the District 
of Columbia.

Are matching funds required?

    No. Matching funds are allowed but not required under FMPP.

How can grant funds be used? ~ Eligible grant projects

    FMPP projects should be designed ``(A) to increase domestic 
consumption of agricultural commodities by improving and expanding, or 
assisting in the improvement and expansion of, domestic farmers' 
markets, roadside stands, community-supported agriculture programs, 
agri-tourism activities, and other direct producer-to-consumer market 
opportunities;'' or ``(B) to develop, or aid in the development of, new 
farmers' markets, roadside stands, community-supported agriculture 
programs, agri-tourism activities, and other direct producer-to-
consumer marketing opportunities.''

Are there restrictions and limitations to FMPP Funds usage? ~ 
Restrictions and limitations on grant funds

    Yes. FMPP funds cannot be used to pay for (1) the acquisition of 
land or the acquisition, construction, rehabilitation, or repair of a 
building or facility, (2) the development of and/or participation in 
political or lobbying activities, (3) projects already funded by 
another Federal agency, or (4) any activities prohibited by FAR 31.2 or 
7 CFR parts 3015, 3016, 3018, or 3019.

Is AMS subject to any special requirements, restrictions, and 
limitations related to electronic benefits transfer (EBT)? ~ EBT 
activities

    Yes. Pursuant to the 2008 Farm Bill, not less than 10 percent of 
the grant funds awarded by AMS in fiscal years 2008-2012 shall be used 
to support the implementation of electronic benefits transfer (EBT) for 
Federal nutrition programs at farmers markets. This limitation only 
affects AMS' ability to award grants, and not any specific grant once 
awarded. Eligible EBT projects must (1) not be used for funding the 
ongoing cost of carrying out any EBT project; and (2) demonstrate a 
plan to continue to provide EBT card access at one or more farmers 
markets following the receipt of a grant. AMS will designate these 
projects as `new EBT projects.' Existing EBT projects, therefore, are 
projects where a farmers market already has an EBT terminal or system 
in place.
    Although existing EBT projects are eligible and can be funded under 
FMPP, to be considered under or counted toward the 10 percent 
legislative mandate the projects must be a new EBT project(s) at 
farmers markets.

What are the application requirements? ~ Completed application package

    The following documentation must be submitted as an application 
package to AMS under FMPP:
    [cir] Standard Form 424 ``Application for Federal Assistance.'' AMS 
uses this information to determine the entity's eligibility for 
participation in the FMPP.
    [cir] Standard Form 424A ``Budget Information--Non-Construction 
Programs.'' AMS uses this information to assess the suitability of the 
budget for

[[Page 3048]]

the proposed project and to ensure it conforms to the program 
guidelines.
    [cir] Standard Form 424B, ``Assurances--Non-Construction 
Programs.'' AMS uses this information to certify that grant 
participants are complying with applicable program regulations.
    [cir] Project Proposal Narrative. The narrative must include a plan 
to show how the applicant will utilize FMPP grant funds. This narrative 
plan must also include a detailed, itemized supplemental budget summary 
that indicates the personnel being requested and any other items being 
requested for payment under FMPP. AMS provides instructions for 
completing the narrative and supplemental budget summary in their FMPP 
Guidelines annually, at the start of each new FMPP grant program year. 
All information about FMPP program requirements will also be made 
available at the FMPP Web site at http://www.ams.usda.gov/FMPP.
    [cir] Written Proof of Eligibility. Written proof of the 
applicant's eligibility from a State or Federal source is also required 
as part of the application package.
    [cir] Supporting Documents. Supporting documents, including letters 
of support, letters of project participation and implementation, and 
descriptions of the principal project manager and others involved in 
the project, are also strongly encouraged.

Can an organization submit multiple applications? ~ Maximum number of 
applications

    Yes. There is no limit to the number of applications or ideas an 
organization can submit to AMS. However, an organization can only 
receive one grant in a grant-funding year.
    When submitting multiple ideas, an applicant should submit similar 
ideas in one application package, i.e., an EBT start-up project may be 
submitted in one application, and a multiple market distribution 
project in a second application.

Is there a fee for applying for FMPP funds?

    No. An applicant does not have to pay any fees to submit an 
application for grant funds under FMPP. However there are costs that 
would include burden hours for the respondents to complete the FMPP 
application, and any additional costs to mail the application package 
to AMS by regular or express carrier, as needed.

How will grant applications be reviewed? ~ Review of grant applications

    Applications will be approved or rejected by AMS utilizing 
recommendations from entities that represent `peer' and Departmental or 
other Federal and State government employee reviewers.
    (a) `Peer reviewers' will be comprised of representatives from 
organizations that are eligible to apply for FMPP grant funds. These 
are: agricultural cooperative organizations, producer network 
organizations, and producer network associations organizations; local 
governments; nonprofit corporations; public benefit corporations; 
economic development corporations; regional farmers' market 
authorities; and Tribal governments. Peer reviewers will not be 
eligible to serve as a reviewer if they are (i) employed by, volunteer 
for, or serve as a board member or other type of committee/team member 
for the organization that submitted an application that same year under 
FMPP; or (ii) a proposed subcontractor or financial beneficiary in a 
budget from any organization submitting an application that same year 
under FMPP.
    (b) Reviewers will utilize the evaluation criteria provisions 
published annually in the FMPP Guidelines and Notice of Funds 
Available. The criteria may change based on the priorities for annual 
funding. AMS may request the applicant provide additional information 
or clarification.

Is there a contract or grant agreement with awardees? ~ Grant 
agreements

    Yes. AMS will enter into a grant agreement with awardees. The grant 
agreement is used as documentation of the agreed upon responsibilities 
of AMS and the awardee(s) performing the project work. AMS grant 
agreements will include, at a minimum, the following: the project(s) in 
the approved plan, the beginning date and ending date of the project 
work, the total amount of Federal financial assistance that will be 
awarded, and the terms and conditions pursuant to which AMS will fund 
the project(s).

Once an organization receives a grant when can they reapply? ~ 
Consecutive grants

    An organization or entity that has received an FMPP grant may apply 
for future grants, but only after the current (existing) grant has been 
completed and AMS has accepted and approved all documentation and 
reports. The entity may then re-apply 12 months from this acceptance 
and approval date. AMS will not provide two consecutive grants to any 
entity. AMS has developed this system in an effort to provide grant 
funding opportunities to as many new awardees each year as possible in 
order to support the rapidly growing number of farmers markets and 
other direct marketing organizations. This system has also been 
designed to avoid repeated funding of one entity for the same or 
similar project activities.
    Here are two examples: First, a grant awarded in fiscal year 2010 
for a 12-month project begins on October 1, 2010. The project is 
completed by September 30, 2011. All required documentation and reports 
are submitted and accepted by AMS no later than 90-days after project 
completion, i.e., December 31, 2011. The fiscal year 2010 awardee may 
then re-apply to FMPP after December 31, 2011, for the fiscal year 2012 
funding cycle.
    Second, if a 6-month grant extension is approved by AMS, the 
original 12-month fiscal year 2010 grant award would complete the 
project on March 30, 2012. All required documentation and reports are 
submitted and accepted by AMS no later than 90-days after project 
completion, i.e., June 30, 2012. The fiscal year 2010 awardee may then 
re-apply to FMPP until after July 1, 2012, for the fiscal year 2013 
funding cycle.

What are the awardee reporting requirements?

    Awardees are required to provide AMS the following written project 
and financial reports:
    <bullet> Semi-Annual Performance and Final Performance Reports. The 
Performance (progress) Report is written documentation required by 
awardees to notify AMS about the work activities and progress towards 
completing the awardees' established project workplan goals, 
objectives, and timelines. A performance report is required every six 
months after the start date of the grant agreement. A one-time final 
Performance Report is required to be submitted within 90 days after the 
ending date of the grant agreement. If the project is one year or less, 
then only one performance report and a final performance report are 
required. This information is utilized by AMS as final documentation of 
completion of the workplan goals, objectives, and activities.
    <bullet> Federal Financial Report and Final Financial Reports. A 
Federal Financial Report must be submitted every four months, after the 
receipt of Federal grant funds, until the expiration of the

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grant period, to provide the Agency information to monitor the 
financial status of the organization's grant project. A final Federal 
Financial Report is also required 90 days after the expiration date of 
the grant period. If the project is one year or less, then only two 
financial reports and a final Financial Report are required. The 
Financial Report includes the amount of Federal cash disbursements, 
receipts, and cash on hand; Federal expenditures and unobligated 
balances; and any program income earned during the reporting period. 
This information will be used by the Agency to determine the use of 
cash provided by FMPP and the organization's spending practices in 
correlation to the project performance reports.
    Each year FMPP grant funds are available AMS intends to publish a 
Notice in the Federal Register indicating: That applications may be 
submitted for participation in the competitive FMPP grant review 
process, and the maximum FMPP funding level available that fiscal year 
to applicants.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the FMPP information collection is currently approved by 
OMB control number 0581-0235 Farmers' Market Promotion Program, which 
is an estimated 20,892 total annual burden hours. AMS is requesting OMB 
approval of a new information collection. When the final rule is 
approved, AMS will request OMB to consolidate this NEW collection into 
the currently approved collection OMB 0581-0235 Farmers' Market 
Promotion Program. This request would create one voluntary form and 
eight mandatory forms:
    <bullet> Form ``TM-31, FMPP Supplemental Budget Summary and 
Instructions--For EBT Projects''--voluntary for applicants.
    <bullet> The ``FMPP Guidelines''--mandatory for applicants and 
awardees.
    <bullet> ``Written Proof of Eligibility''--mandatory for 
applicants.
    <bullet> ``Registration with the Central Contractor Registry''--
mandatory for applicants.
    <bullet> Form ``AMS-34, AMS Conflict-Of-Interest and 
Confidentiality Statement For Grant Reviewers''--mandatory for 
reviewers.
    <bullet> Form ``TM-32, FMPP Grant Peer Reviewer Qualifications 
Template''--mandatory for reviewers.
    <bullet> Form ``TM-33, FMPP Reviewer Declaration of Intent''--
mandatory for reviewers.
    <bullet> Form ``AMS-33, United States Department of Agriculture, 
Agricultural Marketing Service, Agreement Face Sheet''--mandatory for 
awardees.
    <bullet> Form ``TM-34, FMPP Grant Program, General Terms and 
Conditions''--mandatory for awardees.
    Title: Farmers' Market Promotion Program.
    OMB Number: 0581-NEW.
    Expiration Date of Approval: 3 years from approval.
    Type of Request: A new information collection.
    Abstract: The Farmers' Market Promotion Program (FMPP) was created 
through an amendment of the Farmer-to-Consumer Direct Marketing Act of 
1976. The grants authorized by the FMPP, originally funded in 2006 and 
revised under the 2008 Farm Bill, are targeted to help improve and 
expand domestic farmers markets, roadside stands, community-supported 
agriculture programs, agritourism activities, and other direct 
producer-to-consumer marketing opportunities. Entities eligible to 
apply are agricultural cooperatives, producer networks, producer 
associations, local governments, nonprofit corporations, public benefit 
corporations, economic development corporations, regional farmers 
market authorities, and Tribal governments.
    AMS provides voluntary forms to be used to complete the narrative 
and supplemental budget summary and requires that additional 
information be provided with the application. The forms are available 
via the AMS Web site at http://www.ams.usda.gov/FMPP:
    1. ``TM-31, FMPP Supplemental Budget Summary and Instructions--For 
EBT Projects Only''--AMS will create this new voluntary form for 
applicants developing and budget requests for new and existing EBT 
projects only and will include instructions for its use.
    2. ``Written Proof of Eligibility''--In addition to an explanation 
in the narrative of how the applicant/organization qualifies as an 
eligible entity, written proof from a State or Federal source must also 
be provided in the application package. This documentation may include, 
for example for a nonprofit, a copy of the organization's letter of 
determination from the State or Internal Revenue Service indicating the 
date of incorporation as a nonprofit.
    In addition to the requirements above, any applicant applying for 
Federal funding must register with the Central Contractor Registry at 
http://www.CCR.gov.
    3. Registration with Central Contractor Registry. The Central 
Contractor Registry (CCR) is the primary registrant database for the 
U.S. Federal Government. The CCR collects, validates, stores, and 
disseminates data in support of agency acquisition missions, including 
Federal agency contracts, grants, cooperative agreements, and other 
forms of Federal assistance and assistance awards. Whether applying for 
assistance awards, contracts, grants, or other business opportunities, 
all entities are considered ``registrants.''
    CCR has its origins in the Federal Financial Assistance Management 
Improvement Act of 1999, also known as Public Law 106-107. Both current 
and potential Federal government registrants and entities applying for 
assistance awards from the Federal government, via either Grants.gov or 
hard copy submission, are required to register with CCR in order to be 
awarded funds by the Federal government.
    The type of information requested by CCR includes, but is not 
limited to:
    a. General information, including organization DUNS number, Federal 
Tax Identification Number (TIN), location, employee numbers, and web 
site address.
    b. Corporate Information, including organization or business type 
and SBA-defined socioeconomic characteristics.
    c. Financial Information, including financial institution, American 
Banking Association (ABA) routing number, account number, remittance 
address, lock box number, automated clearing house (ACH) information, 
and credit card information.
    d. Point of Contact Information, including the primary and 
alternate points of contact and the electronic business, past 
performance, and government points of contact.
    Registrants are required to complete the one-time CCR registration 
to provide information relevant to procurement and financial 
transactions. CCR shares the data received from registrants with the 
Federal government. AMS will use this information in establishing its 
electronic (direct deposit) payment system. Note that the CCR 
registration does not guarantee business with the AMS/FMPP or any other 
Federal government agency.
    AMS will request potential grant reviewers to complete the 
following form:
    1. ``TM-32, FMPP Grant Peer Reviewer Qualifications Template''--AMS 
will utilize this mandatory form for reviewers to complete and submit 
their personal or work qualifications and resume. Reviewers must have a 
general knowledge of direct producer-to-consumer marketing that 
includes operational aspects of farmers markets,

[[Page 3050]]

farms and production/ranching, roadside stands, CSAs, agritourism, and/
or electronic benefits transfers projects. Reviewers will apply their 
knowledge and expertise in these areas to objectively assess 
applications and provide both a numeric score and written comments for 
each application.
    The form will contain a checklist for potential reviewers to 
identify their employment and experience. Boxes will be provided for 
potential reviewers to indicate (a) their area of experience or 
expertise, such as farmers market management; and (b) whether the 
person is a current or retired nonprofit, for-profit, or Federal/State 
government employee. As such, AMS will review and may revise the form 
annually. AMS may also request additional information or clarification 
from potential reviewers.
    The reviewer qualifications will be used to determine whether a 
reviewer is qualified to serve as part of the grant review process.
    AMS will also require anyone serving as a grant reviewer to comply 
with and sign the following:
    1. ``AMS-34, AMS Conflict-Of-Interest and Confidentiality Statement 
For Grant Reviewers''--This mandatory form for reviewers to sign 
indicates compliance with the conflict of interest and confidentiality 
requirements. Regarding confidentiality, reviewers must agree not to 
copy, quote, or otherwise use or disclose to anyone, any information 
from any application. Reviewers must also agree with the conflict of 
interest requirements, which include that the reviewer does not have: 
(1) A direct financial interest in the review outcome; or have direct 
and predictable financial interests in the outcome; (2) indirect 
interests with the organization or personnel submitting an application 
under FMPP; or (3) any relationship, such as a close personnel 
friendship, that may affect the reviewers' judgment or be seen as doing 
so by a reasonable person familiar with the relationship.
    2. ``TM-33, FMPP Reviewer Declaration of Intent''--AMS will utilize 
this mandatory form for reviewers to sign indicating they have not 
submitted an application under FMPP that funding year. Peer reviewers 
will not be eligible to serve as a reviewer if they are (i) employed 
by, volunteer for, or serve as a board member or other type of 
committee/team member for an organization that submitted an application 
that same year under FMPP; or (ii) a proposed subcontractor or 
financial beneficiary in a budget from any organization submitting an 
application that same year under FMPP.
    Before grant funds are dispersed, applicants that are selected 
(awardees) must comply with the terms and conditions of the grant and 
sign the grant agreement. The AMS will publish the ``FMPP Guidelines'' 
which contain information regarding how to complete a grant application 
package and the Agency's post-award requirements, along with a public 
notice of funds being made available. The FMPP Guidelines will be 
revised annually and posted on the AMS Web site at http://www.ams.usda.gov/FMPP. While this document is not signed, applicants 
must read and utilize this document to prepare their application and 
understand the terms and conditions of the grant award. The grant 
agreement will include:
    1. ``TM-34, FMPP Grant Program, General Terms and Conditions''--
This is a mandatory form for awardees indicating compliance with terms 
and conditions of the award and all Federal grant regulations and 
administrative requirements including 7 CFR parts 3015, 3016, 3018, 
3019; and FAR 31.2. (The burden hours for this new form are already 
accounted for under the OMB 0851-0235, Farmers' Market Promotion 
Program). The document also includes awardee assurances and 
certifications (thereby eliminating the Agency's need for applicants to 
sign forms AD-1047, AD-1048, and AD-1049); changes in project contacts, 
leaders, managers, and staff; cost principles; actions that need prior 
approval; performance monitoring; reporting requirements; and payment 
requirements.
    The FMPP Grant Program General Terms and Conditions may be updated 
annually to reflect mandatory additions and other changes made by 
regulatory or Office of Management and Budget grant requirements. The 
document is currently made available to applicants and awardees via the 
AMS website, and does not require a signature. It will also be 
included, by reference, the signed grant agreement face sheet.
    2. ``AMS-33, United States Department of Agriculture, Agricultural 
Marketing Service, Agreement Face Sheet''--This is a mandatory form for 
awardees to sign indicating compliance with terms and conditions of the 
grant award, project work approved, and receipt of grant funding. The 
sheet includes the grant authority; funding dollar amount; awardee and 
Federal contacts names, address, email addresses, and phone and fax 
numbers; agreement number; project title, objectives, and statement of 
work; project work beginning and ending dates; and awardee and AMS 
Associate Administrator signatures. Three (3) copies of this agreement 
are required with the awardee's and the AMS Associate Administrator's 
signatures and dated for each grant.
    The 2008 Farm Bill authorizes funding for grants under FMPP, 
allocating mandatory funds from the Commodity Credit Corporation, from 
2009 through 2012 with $5 million for each year of 2009 and 2010, and 
$10 million for each year of 2011 and 2012. With this increase in 
funding made available, and a focus of funding new EBT projects, AMS 
anticipates an increase in the number of applications being submitted 
and an increase in the burden hours. In fiscal year 2010, nearly one-
half of all the project ideas submitted for funding were for new or 
existing EBT-related project work.
    With the approval of this new collection and when the final notice 
is published, AMS will request that OMB consolidate these new burden 
hours into the currently approved information collection OMB 0581-0235.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 2.322 hours per response.
    Respondents: Same respondents as for the overall collection 
package: Agricultural Cooperatives, Producer Networks or Producer 
Associations; Local Governments; Nonprofit Corporations; Public Benefit 
Corporations; Economic Development Corporations; Regional Farmers' 
Market Authorities; and Tribal Governments.
    Estimated number of respondents: 1,575.
    Estimated total annual responses: 4,925.
    Estimated number of responses per respondent: 3.127.
    Estimated total annual burden on the respondents: 11,437 hours.
    AMS is committed to compliance with the Government Paperwork 
Elimination Act (GPEA) that requires Government agencies in general to 
provide the public the option of submitting information or transacting 
business electronically to the maximum extent possible.
    <bullet> Voluntary form TM-31 can be filled out electronically from 
the AMS Web site and printed out for submission. For Grants.gov 
applicants the proposal narrative and supplemental budget summary can 
also be filled out electronically and submitted as an attachment 
through Grants.gov during the FMPP application process. Additionally, 
Grants.gov applicants are not required to submit any additional (hard 
copy) paperwork to AMS.
    <bullet> Form TM-34 will be made available via the FMPP website and 
can be printed for awardees personal records. A copy of this form is 
provided by AMS

[[Page 3051]]

to awardees with the grant agreement. There is no need to return this 
form to AMS.
    <bullet> Form AMS-33 is completed by AMS and will be mailed to 
awardees for their original signature.
    <bullet> Forms AMS-34, TM-32, and TM-33 will be made available via 
the AMS Web site and, once signed by reviewers can be scanned, e-
mailed, or faxed to AMS.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the proposed regulations and USDA's oversight, including whether this 
information will have practical utility; (2) the accuracy of USDA's 
estimate of the burden of the proposed collection of information, 
including the validity of the methodology and assumptions used; (3) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (4) ways to minimize the burden of the collection of 
information on those who are to respond, including the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology.
    Comments concerning the information collection requirements 
contained in this action should reference OMB 0581-NEW and the Farmers' 
Market Promotion Program. In addition, the docket number, date, and 
page number of this issue of the Federal Register also should be 
referenced. Comments should be sent to the same address referenced in 
the ADDRESSES section of this rule.
    OMB is required to make a decision concerning the collection of 
information contained in this rule between 30 and 60 days after 
publication. Therefore, a comment to OMB is best assured of having its 
full affect if OMB receives it within 30 days of publication.
    This proposed rule would establish the FMPP grant process, as 
follows:

List of Subjects in 7 CFR Part 185

    Farmers' Market Promotion Program, FMPP, FMPP guidelines, FMPP 
application requirements, FMPP voluntary narrative and budget forms, 
FMPP reviewer information, reviewer confidentiality, FMPP grant 
agreement, and FMPP awardee grant acceptance terms and conditions.

    For the reasons set forth in the preamble, it is proposed that 
Chapter 1 of title 7 of the Code of Federal Regulations be amended by 
adding subchapter I and part 185 to read as follows:

Subchapter I--Grant Programs

PART 185--FARMERS' MARKET PROMOTION PROGRAM

Sec.
185.1 Grant program scope.
185.2 Definitions.
185.3 Eligible entities for grant funds.
185.4 Eligible grant project.
185.5 Eligible grant project--EBT activities.
185.6 Restrictions and limitations on grant funds.
185.7 Project narrative.
185.8 Completed application package.
185.9 Maximum number of applications.
185.10 Review of grant applications.
185.11 Grant agreements.
185.12 Consecutive grants.
185.13 Post award requirements.
185.14 Program income.
185.15 Reporting and oversight requirements.

    Authority: 7 U.S.C. 3001-3006.


Sec.  185.1  Grant program scope.

    Pursuant to the authority conferred by the Farmer-to-Consumer 
Direct Marketing Act of 1976 (7 U.S.C. 3001-3006) and the amendment to 
the 1976 Act, the Farmers' Market Promotion Program (7 U.S.C. 3005), 
AMS intends to make competitive grant funds available to eligible 
entities for projects to establish, expand, and promote farmers markets 
and direct producer-to-consumer marketing, in accordance with the terms 
and conditions set forth herein and other applicable Federal statutes 
and regulations including, but not limited to, 7 CFR parts 3015, 3016, 
3018, and 3019.


Sec.  185.2  Definitions.

    (a) Agency Fiscal Year means the Agricultural Marketing Service's 
operating year which begins on October 1 and ends on September 30.
    (b) AMS means the Agricultural Marketing Service of the United 
States Department of Agriculture.
    (c) Application means a grant application package, which includes 
all forms, narrative, budget, and other required information as 
specified in 7 CFR 185.8, that is submitted to AMS under the Farmers' 
Market Promotion Program (FMPP) for FMPP grant funds.
    (d) Awardee means the entity to which a grant is awarded and which 
is accountable for the use of the funds provided. The awardee is the 
entire legally eligible entity, even if only a particular component of 
the entity is designated in the grant agreement.
    (e) Agricultural cooperative means a group- or member-owned entity 
or business that provides, offers, or sells agricultural products or 
services for the mutual benefit of the members thereof.
    (f) Agritourism means the act of consumers visiting a working farm 
or any agricultural or agribusiness operation for the purpose of 
enjoyment, education, or active involvement in the activities of the 
farm or operation. Agritourism projects must meet the scope and 
eligible fund usages for the grant program prescribed in Sec.  185.1 
and 185.4.
    (g) Consumer means a person that buys goods or services and 
consumes it or uses it for direct personal use or ownership, rather 
than for resale or use in mass production and manufacturing.
    (h) Community-supported agriculture (CSA) program means a farm 
business(es) or group of farmers/producers that develop a partnership 
with consumers. Typically consumers pay for farm products in advance; 
and in turn, the farm business commits to supplying sufficient 
quantity, quality, and variety of products and delivering those 
products directly to the consumer or to a common distribution location 
for consumer pick-up.
    (i) Direct producer-to-consumer marketing means agricultural 
marketing enterprises where farmers or vendors sell their own products 
directly to consumers.
    (j) Economic development corporation means an organization whose 
mission is the improvement, maintenance, development and/or marketing 
or promotion of a specific geographic area.
    (k) Electronic benefits transfer (EBT) means an electronic system 
that allows a recipient to authorize transfer of their government 
benefits from a Federal/State account to a retailer/business account to 
pay for products authorized and received under food stamps and other 
government benefit programs.
    (l) Equipment means any tangible, nonexpendable, personal property, 
including exempt property charged directly to the grant having: A 
useful life of more than 1 year, and an acquisition cost of $5,000 or 
more per unit.
    (m) Existing EBT project means a farmers market, facility, or other 
establishment that already has electronic benefits transfer (EBT) 
terminals and an EBT system in place at the market, facility, or 
establishment.
    (n) Farmers market means a public and recurring assembly of 
farmers, their employees, and/or vendors that sell agricultural 
products that they have grown, raised, or produced, directly to 
consumers. The extent to which a farmer and/or vendor sells other 
farmer's food and/or other agricultural products to enhance the 
market's diversity is under the discretion of market management.
    (o) Grant agreement means the signed documentation that designates 
an agreement between AMS and the

[[Page 3052]]

awardee entity performing the awarded project work. The agreement will 
include, at a minimum: The approved project plan(s), the project dates, 
the total amount awarded, and the terms and conditions pursuant to 
which AMS funds the project(s).
    (p) Grant period means the period of time from when the grant 
agreement is signed until the completion of all projects submitted in 
the proposal narrative plan.
    (q) Indirect cost means cost(s) incurred for common or joint 
objectives that can not be readily identified with a particular final 
project cost objective.
    (r) Local government means any unit of local government within a 
State, including a county, borough, municipality, city, town, township, 
parish, local public authority, special district, school district, 
intrastate district, council of governments, and any other 
instrumentality of local government.
    (s) New EBT project means a new or start-up electronic benefits 
transfer (EBT) initiative at a farmers market where the facility has 
not initiated or implemented EBT.
    (t) Nonprofit corporation means any organization or institution, 
including nonprofits with State or IRS 501(c) status and accredited 
institutions of higher education, where no part of the net earnings of 
which inures to the benefit of any private shareholder or individual.
    (u) Program income means gross income earned by the awardee that is 
directly generated by a supporting activity or earned as a result of 
the grant award, in accordance with 7 CFR parts 3015, 3016, and 3019.
    (v) Producer association means an organization or other business 
entity that assists, represents, or serves producers or a producer 
network.
    (w) Producer network means a producer group- or member-owned 
organization or business entity that provides, offers, or sells 
agricultural products or services through a common distribution system 
for the mutual benefit of the members thereof.
    (x) Project means all proposed activities to be funded by the FMPP.
    (y) Proposal narrative means the written proposed project 
activities and planned use of funds submitted for funding in the grant 
application.
    (z) Public benefit corporation means a corporation organized to 
construct or operate a public improvement, the profits from which inure 
to the benefit of a State(s) or to the people thereof.
    (aa) Regional farmers' market authority means an entity that 
establishes and enforces regional, State, or county policies and 
jurisdiction over regional, State, or county farmers markets.
    (bb) Roadside stand means a stand or kiosk located along the side 
of a road where a farmer or other agricultural vendor sells 
agricultural and/or other agricultural products that they have grown, 
raised, or produced, directly to consumers.
    (cc) States means all 50 U.S. States and the District of Columbia.
    (dd) Supplies means any tangible, personal property other than 
equipment as defined in Sec.  185.2(l), excluding debt instruments and 
inventions defined in 7 CFR 3019.2(hh).
    (ee) Supplemental budget summary means a detailed, itemized list of 
personnel, travel, equipment, and/or other items or costs that are 
being requested for payment by FMPP funds to fulfill the proposed grant 
project activities. The supplemental budget summary is the budget 
portion of the project narrative, details of which are provided in 
Sec.  185.7(o), and is more specific in budget details than the 
required SF-424A budget.
    (ff) Tribal government means a governing body or a governmental 
agency of any Indian tribe, band, nation, or other organized group or 
community (including any native village as defined in section 3 of the 
Alaska Native Claims Settlement Act, 85 Stat. 688 (43 U.S.C. 1602)) 
certified by the Secretary of the Interior as eligible for the special 
programs and services provided through the Bureau of Indian Affairs.
    (gg) United States means any of the 50 states or the District of 
Columbia.


Sec.  185.3  Eligible entities for grant funds.

    (a) Eligible grant applicants are agricultural cooperatives, or 
producer networks or associations; local governments; nonprofit 
corporations; public benefit corporations; economic development 
corporations; regional farmers' market authorities; and Tribal 
Governments.
    (b) All entities must be owned, operated, and located within the 
United States.
    (c) Entities must provide written proof of their eligibility, from 
State or Federal sources, to be eligible for and/or receive grant 
funds.


Sec.  185.4  Eligible grant project.

    (a) To be eligible for a grant, the project(s) must establish, 
expand, or promote farmers markets or direct producer-to-consumer 
marketing activities within the United States. In general, the 
project(s) must increase domestic consumption of agricultural 
commodities by:
    (1) Improving and expanding, or assisting in the improvement and 
expansion of, domestic farmers markets, roadside stands, community-
supported agriculture programs, agritourism activities, or other direct 
producer-to-consumer market opportunities; or
    (2) Developing, or aiding in the development of, new farmers 
markets, roadside stands, community-supported agriculture programs, 
agritourism activities, or other direct producer-to-consumer marketing 
opportunities.
    (b) To be eligible for a grant, the project(s) must be completed 
within 24 calendar months after the grant agreement prescribed in Sec.  
185.11 is signed. The grant period is established by the approved 
project timelines submitted in the application proposal narrative and 
approved and documented by AMS in the grant agreement. For cause, 
however, an extension of the grant period not to exceed six (6) 
additional months may be granted by AMS on a case by case basis with a 
written request. Including the original 24-month grant period and any 
approved extensions, an FMPP grant period will not exceed 30 months 
(2.5 years).


Sec.  185.5  Eligible grant project--EBT activities.

    (a) All electronic benefits transfer (EBT) projects are eligible 
for grant funding.
    (b) Not less than 10 percent of the grant funds awarded by AMS in 
Agency fiscal years 2008 through 2012, however, shall be used to 
support the use of EBT for Federal nutrition assistance programs at 
farmers markets as follows:
    (1) The EBT project is a new or start-up EBT initiative at a 
farmers market;
    (2) The EBT projects must not be used for funding the ongoing cost 
of carrying out any EBT project; and
    (3) The applicant must also demonstrate a plan to continue to 
provide EBT card access at one or more farmers markets following the 
receipt of a grant.


Sec.  185.6  Restrictions and limitations on grant funds.

    (a) Grant funds may not be used to pay for:
    (1) The purchase, construction, rehabilitation, or repair of a 
building or facility.
    (2) The acquisition of land.
    (3) The development of and/or participation in political or 
lobbying activities (7 CFR part 3018).
    (4) Projects already funded by another Federal agency. An 
application that duplicates or overlaps substantially

[[Page 3053]]

with a project activity or application already reviewed and funded by 
another Federal agency will not be funded by FMPP.
    (5) Other activities prohibited by 7 CFR parts 3015, 3016, 3018, or 
3019.
    (b) Not more than 10 percent of the total funds budgeted of any 
proposal may be used for indirect costs. The supplemental budget 
summary narrative explanation must include an explanation of how the 
indirect cost rate was determined and what it includes.


Sec.  185.7  Project narrative.

    The project proposal narrative must include a plan to explain how 
FMPP grant funds will be used. The narrative must include:
    (a) Project Title. Must capture the primary focus of the project, 
and match the title provided on Form SF-424.
    (b) Organization Information. Provide the name of the organization 
applying for grant funds, contact name, mailing address, and telephone 
and fax number. Also provide the e-mail address for the person 
designated to answer questions about the organization's application, 
project information, and the proposed budget request.
    (c) Primary Project Manager Information. Provide the name, mailing 
address, telephone and fax number, and email address for the person(s) 
responsible for managing and/or overseeing the project.
    (d) Requested FMPP Funding and Matching Funding. Indicate the 
dollar amount requested from FMPP and the amount of matching funding 
(not required) that will be provided.
    (e) EBT, Equipment, Supplies, and Promotional Projects. Questions 
will be asked whether the project proposal includes a new or existing 
EBT component, equipment, supplies, and promotional items/services; 
applicants must indicate by answering Yes or No.
    (f) Entity Type/Eligibility Statement. Indicate the entity type of 
the applicant/organization. Provide an explanation of how the 
applicant/organization qualifies as an eligible entity. Although not 
required as part of the narrative, written proof of eligibility must 
also be provided from a State or Federal source in the application 
package. Applications that do not contain this documentation or provide 
sufficient information to determine the eligibility of the applicant 
will not be considered.
    (g) Executive Summary. Should not exceed 200 words and must include 
the following: A project description, goals to be accomplished, stages 
of work and resources required, and expected timeframe for completing 
all tasks and results.
    (h) Goals of the Project. Provide a clear statement (no more than 
two sentences) focusing on the ultimate goal(s) and objective(s) of the 
project.
    (i) Background Statement. Provide specific information affecting 
the project or projects. Describe past, current, and/or future events, 
conditions, or actions taken that justify the need for each project. 
Correlate the background and purpose of the activity to support the 
particular project issue.
    (j) Work-plan and Resource Requirements. Provide a statement that 
includes the planned scope of work, anticipated stages and timelines, 
and the resources required to complete the project. Identify who will 
do the work, whether collaborative arrangements or subcontractors will 
be used, the resource commitments of the collaborators, and the role(s) 
and responsibilities of each collaborator or project partner. Indicate 
in-kind and volunteer work. The anticipated stages/steps and timelines 
for each project activity must also be provided.
    (k) Expected Outcomes and Project Evaluation. Describe what is to 
be accomplished, the expected results, and how success will be measured 
at the completion of the project. The quantitative and qualitative 
evaluation measurement of the project's impact must be identified.
    (l) Beneficiaries. Describe which individuals, organizations, and/
or entities will benefit from the project outcome and how they will 
benefit.
    (m) Evaluation Criteria Statements (effective January 1, 2010). All 
applications will be evaluated against the criteria in the ``Proposal 
Evaluation Criteria,'' which can be found in the FMPP Guidelines at 
www.ams.usda.gov/FMPP. This criteria may be changed (annually) 
depending on the Agency's funding priorities. Use the evaluation 
criteria as headings. Address and summarize how the project addresses 
each criterion. Provide references in the work-plan and other narrative 
sections, as needed, to justify the merit of each criterion.
    (n) Existing and Pending Support (effective January 1, 2010). List 
all current and pending public or private support to which personnel 
identified in the narrative have committed portions of their time, 
whether or not salary support for persons involved is included in the 
FMPP budget request. An application that duplicates or overlaps 
substantially with an application already reviewed and funded by 
another Federal agency will not be funded under FMPP.
    (o) Supplemental Budget Summary. Provide sufficient detail about 
the budget categories listed on Form SF-424A. This budget is required 
and supplements, but does not replace, the SF-424A. All requested 
budget items and activities must:
    (1) Be itemized, listing separately each item, its costs, and use.
    (2) Correlate to the purpose/goals of the project and demonstrate 
that they are reasonable and adequate for the proposed work.
    (3) Not include matching funds or in-kind work and items.
    (4) Be substantiated in a written budget narrative.
    (p) Primary Proposal Activity. Each FMPP application must clearly 
identify the primary proposal activity. Identify only one specific 
activity that meets the proposal's main goal and objective.
    (q) Secondary Proposal Activity. List all other activities (as many 
as are applicable) that meet the remaining goals and objectives.


Sec.  185.8  Completed application package.

    Completed applications shall be clear and succinct and shall 
include the following documentation satisfactory to AMS.
    (a) Standard Form-424 ``Application for Federal Assistance.''
    (b) Standard Form-424A ``Budget Information--Non-Construction 
Programs.''
    (c) Standard Form SF-424B ``Assurances--Non-Construction 
Programs.''
    (d) Written proof of the applicant's eligibility (see 185.7(f)) 
from a State or Federal source.
    (e) A Project Proposal Narrative, which includes an itemized, 
detailed supplemental budget summary that indicates the items being 
requested for payment.
    (f) Any supporting documents are strongly encouraged, including:
    (1) Letters and/or other evidence of commitment and participation 
from cooperators, contractors, or resource providers.
    (2) Brief description(s) of experience or qualifications of project 
personnel and staff.


Sec.  185.9  Maximum number of applications.

    An organization may submit multiple applications annually to AMS 
for competitive review. An organization can only receive one FMPP 
grant, however, in the Agency's funding or fiscal year.


Sec.  185.10  Review of grant applications.

    All applications will undergo a competitive review and will be 
approved or rejected by AMS using recommendations from reviewers that 
represent `peer' and departmental or

[[Page 3054]]

other Federal and State government employee reviewers.
    (a) `Peer reviewers' will be representatives from organizations 
that are eligible to apply for FMPP grant funds, as provided in Sec.  
185.3.
    (b) Peer reviewers will not be eligible to serve as a reviewer if 
they are:
    (1) Employed by, volunteer for, or serve as a board member or other 
type of committee/team member for the organization that submitted an 
application that same year under FMPP; or
    (2) A proposed subcontractor or financial beneficiary in a budget 
from any organization submitting an application that same year under 
FMPP.
    (c) The reviewers will use the evaluation criteria and provide AMS 
application scores, comments, and recommendations. AMS may request the 
applicant provide additional information or clarification, as needed.


Sec.  185.11  Grant agreements.

    (a) After a competitive review and approval of grant projects and 
activities, AMS will enter into grant agreements with the selected 
applicants (awardees).
    (b) AMS grant agreements will include at a minimum the following:
    (1) The project(s) in the approved proposal narrative plan.
    (2) The beginning and ending dates of the project work.
    (3) Total amount of Federal financial assistance that will be 
awarded.
    (4) Terms and conditions pursuant to which AMS will fund the 
project(s).


Sec.  185.12  Consecutive grants.

    AMS will not award two consecutive grants to any organization or 
entity. Any entity that has received a grant award may apply for future 
grants after completion of the current grant project and 12 months 
after AMS has received and accepted all required documentation and 
reports for that current grant.


Sec.  185.13  Post award requirements.

    Awardees are also responsible for:
    (a) Diligently monitoring their performance to ensure that time 
schedules are being met, project work within designated time periods is 
being accomplished, and other performance measures are being achieved.
    (b) Ensuring that grant funds are used only for the activities 
covered by the approved project work and budget.
    (c) Ensuring that proper financial, personnel, procurement, 
monitoring, and recordkeeping procedures are followed.
    (d) Retaining all records pertaining to the FMPP grant for 3 years 
after the final financial status report has been submitted to and 
accepted by AMS.


Sec.  185.14  Program income.

    (a) Program income earned during the grant period shall be retained 
by the awardee and used to further the project objectives, unless 
otherwise specified in the terms and conditions of the award.
    (b) Awardees must account for program income earned in all 
financial statements to AMS in accordance with 7 CFR parts 3015, 3016, 
3018, and 3019.


Sec.  185.15  Reporting and oversight requirements.

    (a) Performance reports will be required of all awardees every 6 
months after the start date of the signed grant agreement until the 
expiration date of the grant period. If the project is one year or 
less, then only one performance report and a final performance report 
(see paragraph (b) of this section) are required. Each performance 
report shall include, but not be limited to, the following:
    (1) Briefly summarize activities performed, targets, and/or 
performance goals achieved for each objective during the reporting 
period for each project.
    (2) Note unexpected delays or impediments as well as favorable or 
unusual developments for each project.
    (3) Outline work to be performed during the next reporting period 
for each project.
    (4) Comment on the level of grant funds expended to date for each 
project.
    (b) A final performance report will be required by all awardees 
within 90 days following the expiration date of the grant period. The 
final progress report shall include the following:
    (1) A summary of the issue(s), problem(s), interest(s), or need(s) 
being examined.
    (2) How the issue(s) were addressed via the project(s).
    (3) Specific contributions, including time, energy, or other 
project assistance, of project partners.
    (4) Results, accomplishments, conclusions, and lessons learned for 
each project.
    (5) Description of who benefited from the project's accomplishments 
and a quantitative measure of the current or future benefits to be 
derived from the project.
    (6) Additional information available (e.g. publications, Web 
sites).
    (7) A contact person for each project with telephone number and e-
mail address.
    (c) ``Federal Financial Reports'' will be required every four 
months after the agreement start date until the expiration date of the 
grant period. If the project is one year or less, then only two 
financial reports and a final financial report (see paragraph (d) of 
this section) are required.
    (d) A final ``Federal Financial Report'' is required within 90 days 
following the expiration date of the grant period. The report will 
include a summary of all project financial information and program 
income received during the grant project.
    (e) AMS will monitor awardees, as it determines necessary, to 
assure that projects are completed in accordance with the approved 
project plan.
    (f) AMS, after reasonable notice to an awardee, may provide a 
written forfeiture of grant funds should an awardee fail to request 
and/or use grant funds within the first 8 months following the grant 
agreement start date.
    (g) If, after reasonable notice to an awardee and opportunity for 
response, AMS finds that there has been a failure by the awardee to 
comply substantially with any provision or requirement of the project 
plan, AMS may impose special conditions (7 CFR 3016.12, 3016.43, 
3019.14, or 3019.62) and/or disqualify, for one or more years, the 
awardee from participation and/or receipt of future grants under the 
FMPP.

    Dated: January 12, 2011.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2011-930 Filed 1-18-11; 8:45 am]
BILLING CODE 3410-02-P