Federal Register / Vol. 69, No. 23 / Wednesday, February 4, 2004 / Rules and Regulations 5263

Subpart A—Direct Farm Ownership 

Loan Policies, Procedures, and 

Authorizations

■ 8. Amend § 1943.4 by adding a 

definition of ‘‘participated in the 

business operations of a farm or ranch’’

to read as follows:

§ 1943.4 Definitions.

* * * * *

Participated in the business 

operations of a farm or ranch. An 

applicant has participated in the 

business operations of a farm or ranch 

if the applicant has: 

(1) Been the owner, manager or 

operator of a farm business for the year’s 

complete production and marketing 

cycle as evidenced by tax returns, FSA 

farm records or similar documentation; 

(2) Been employed as a farm manager 

or farm management consultant for the 

year’s complete production and 

marketing cycle; or 

(3) Participated in the operation of a 

farm by virtue of being raised on a farm 

or having worked on a farm with 

significant responsibility for the day-today decisions for the year’s complete 

production and marketing cycle, which 

may include selection of seed varieties, 

weed control programs, input suppliers, 

or livestock feeding programs or 

decisions to replace or repair 

equipment.

* * * * *

■ 9. Amend § 1943.12 by revising the 

introductory text in paragraphs (a)(6) and 

(b)(8) to read as follows:

§ 1943.12 Farm ownership loan eligibility 

requirements. 

(a) * * * 

(6) Have participated in the business 

operations of a farm or ranch for at least 

3 years out of the 10 years prior to the 

date the application is submitted and 

satisfy at least one of the following 

conditions:

* * * * *

(b) * * * 

(8) Have one or more members, 

constituting a majority interest in the 

business entity, who have participated 

in the business operations of a farm or 

ranch for at least 3 years out of the 10 

years prior to the date the application is 

submitted and satisfy at least one of the 

following conditions:

* * * * *

PART 1951—SERVICING AND 

COLLECTIONS

■ 10. The authority citation for part 1951 

continues to read as follows:

Authority: 5 U.S.C. 301; 7 U.S.C. 1932 

Note; 7 U.S.C. 1989; 31 U.S.C. 3716; 42 

U.S.C. 1480.

Subpart S—Farm Loan Programs 

Account Servicing Policies

■ 11. Amend § 1951.901 by revising the 

third sentence to read as follows:

§ 1951.901 Purpose.

* * * Shared Appreciation amortized 

payments (SA) may be reamortized in 

accordance with §§ 1951.907(e), 

1951.909(c)(6) and 1951.909(e)(2). 

***

* * * * *

■ 12. In § 1951.907, remove the second 

sentence and revise the third sentence of 

paragraph (c) introductory text, 

redesignate paragraph (e) as (f) and add 

a new paragraph (e) to read as follows:

§ 1951.907 Notice of loan service 

programs.

* * * * *

(c) * * * Delinquent borrowers who 

have also violated their loan agreements 

with the agency will be handled in 

accordance with paragraph (d) of this 

section. * * *

* * * * *

(e) The Agency will notify delinquent 

NP borrowers who have only SA 

amortization agreements within 15 days 

of the missed payment of their rights 

with regard to the debt. All items in 

paragraph (f)(5) of this section, with the 

exception of Attachments 2 or 4 of 

exhibit A and information for 

conservation contracts or debt 

settlement, must be submitted within 60 

days of such notice for the borrower to 

be considered for reamortization.

* * * * *

■ 13. Amend § 1951.909 by adding a new 

paragraph (c)(6) and revising the heading 

of (e)(2) to read as follows.

§ 1951.909 Processing primary loan 

service program requests.

* * * * *

(c) * * *

(6) Non-Program borrowers who have 

only SA amortization agreements must 

meet the requirements in paragraph 

(c)(1) of this section, have acted in good 

faith in attempting to repay the 

recapture amount, and develop a 

feasible plan. Borrowers who are not 

eligible under this paragraph will be 

notified of the adverse decision. After 

review rights are provided in 

accordance with § 1951.454, the account 

will be liquidated in accordance with 

§ 1951.468.

* * * * *

(e) * * *

(2) Reamortization of FO, SW, RL, 

RHF, EE, or EM loans made for real 

estate purposes and SA amortization 

agreements. ***

* * * * *

■ 14. Amend § 1951.914 by revising 

paragraphs (e) introductory text and 

(e)(11) to read as follows:

§ 1951.914 Servicing shared appreciation 

agreements.

* * * * *

(e) Shared appreciation amortization.

Shared appreciation due under this 

section may be amortized to a Nonprogram amortized payment unless the 

amount is due because of acceleration or 

the borrower ceases farming. The 

amount due may be amortized as an SA 

amortized payment under the following 

conditions:

* * * * *

(11) If a borrower with an SA 

amortized payment also has outstanding 

Farm Loan Programs loan and becomes 

delinquent or financially distressed in 

accordance with § 1951.906 or if a 

borrower with an SA amortized 

payment has no outstanding Farm Loan 

Programs loan and becomes delinquent 

on the SA amortized payment, the SA 

payment agreement may be reamortized 

in accordance with § 1951.909.

* * * * *

Dated: January 29, 2004. 

J.B. Penn, 

Under Secretary for Farm and Foreign 

Agricultural Services. 

Dated: January 16, 2004. 

Gilbert Gonzalez, 

Under Secretary for Rural Development.

[FR Doc. 04–1793 Filed 2–3–04; 8:45 am] 

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service 

Rural Housing Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Part 1940

Methodology and Formulas for 

Allocation of Loan and Grant Program 

Funds

AGENCY: Rural Business-Cooperative 

Service, USDA.

ACTION: Final rule.

SUMMARY: The Rural BusinessCooperative Service (RBS) is amending 

the regulation to recognize a transition 

5264 Federal Register / Vol. 69, No. 23 / Wednesday, February 4, 2004 / Rules and Regulations 

formula that will be used for allocating 

funds to State Offices. This action is 

needed due to the significant impact the 

use of the new 2000 U.S. Census data 

versus the 1990 U.S. Census data, used 

in previous years, will have on certain 

States’ allocations.

EFFECTIVE DATE: February 4, 2004.

FOR FURTHER INFORMATION CONTACT:

Sylvia Neal, Management Analyst, 

Business Program, U.S. Department of 

Agriculture, STOP 3221, 1400 

Independence Avenue, SW., 

Washington, DC 20250–3221, telephone 

(202) 720–2811, or by sending an e-mail 

message to sylvia.neal@usda.gov.

SUPPLEMENTARY INFORMATION: 

Classification 

This action is not subject to the 

provisions of Executive Order 12866 

since it involves only internal Agency 

management. This action is not 

published for prior notice and comment 

under the Administrative Procedure Act 

since it involves only internal Agency 

management and publication for 

comment is unnecessary and contrary to 

the public interest. 

Programs Affected 

The Catalog of Federal Domestic 

Assistance numbers for the programs 

impacted by this action are as follows:

10.768—Business and Industry Loans, 

and 

10.769—Rural Development Grants 

(RBEG) (TDG). 

Paperwork Reduction Act 

This final rule does not revise or 

impose any new information collection 

requirements from those previously 

approved by the Office of Management 

and Budget. 

Unfunded Mandates Reform Act 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA), Public 

Law 104–4, establishes requirements for 

Federal agencies to assess the effects of 

their regulatory actions on State, local 

and tribal governments, and the private 

sector. Under section 202 of the UMRA, 

the agency generally must prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with ‘‘Final mandates’’ that may 

result in expenditures to State, local, or 

tribal governments, in the aggregate, or 

to the private sector, of $100 million or 

more in any one year. When such a 

statement is needed for a rule, section 

205 of the UMRA generally requires the 

agency to identify and consider a 

reasonable number of regulatory 

alternatives and adopt the least 

burdensome alternative that achieves 

the objective of the rule. 

This rule contains no Federal 

mandates (under the regulatory 

provisions of Title II of the UMRA) for 

State, local and tribal governments, or 

the private sector. Thus, today’s rule is 

not subject to the requirements of 

sections 202 and 205 of the UMRA. 

Environmental Impact Statement 

This action has been reviewed in 

accordance with 7 CFR part 1940, 

subpart G, ‘‘Environmental Program.’’

The Agency has determined that this 

action does not constitute a major 

Federal action significantly affecting the 

quality of the human environment and 

in accordance with the National 

Environmental Policy Act of 1969, 

Public Law 91–190, an Environmental 

Impact Statement is not required. 

Discussion 

The Rural Business-Cooperative 

Service (RBS) is amending the 

regulation to recognize a transition 

formula that will be used for allocating 

funds to State Offices. The transition 

formula limits allocation shifts to any 

particular State in the event of changes 

from year to year of the basic formula, 

the basic criteria, or the weights given 

the criteria.

List of Subjects in 7 CFR Part 1940

Administrative practice and 

procedure, Agriculture, Allocations, 

Grant programs—Housing and 

community development, Loan 

programs—Agriculture, Rural areas.

■ Accordingly, Chapter XVIII, title 7, 

Code of Federal Regulations is amended 

as follows:

PART 1940—GENERAL

■ 1. The authority citation for part 1940 

continues to read as follows:

Authority: 5 U.S.C.; 7 U.S.C.; 1989, and 42 

U.S.C. 1480.

Subpart L—Methodology and 

Formulas for Allocation of Loan and 

Grant Program Funds

■ 2. Amend section 1940.589 by revising 

paragraph (d) to read as follows:

§ 1940.589 Rural Business Enterprise 

Grants.

* * * * *

(d) Transition formula. See 

§ 1940.552(d) of this subpart. The 

percentage range for the transition 

equals 30 percent (±15%).

* * * * *

Dated: January 23, 2004. 

John Rosso, 

Administrator, Rural Business-Cooperative 

Service.

[FR Doc. 04–2265 Filed 2–3–04; 8:45 am] 

BILLING CODE 3410–XY–P

DEPARTMENT OF AGRICULTURE

Farm Service Agency 

Rural Business-Cooperative Service 

Rural Housing Service 

Rural Utilities Service 

7 CFR Parts 1951, 1962, 1965 

RIN 0560–AG50 

Farm Loan Programs Account 

Servicing Policies—Elimination of 30-

Day Past-Due Period

AGENCY: Farm Service Agency, USDA.

ACTION: Final rule.

SUMMARY: The Farm Service Agency 

(FSA) is amending its regulations to 

eliminate the 30-day past-due period 

prior to a determination that the 

borrower is delinquent and clarify the 

use of the terms ‘‘delinquent’’ and ‘‘past 

due’’ with regard to direct loan servicing 

and offset. Because the regulation only 

allows debt writedown after a borrower 

becomes delinquent, this change would 

allow Farm Loan Programs (FLP) 

borrowers to receive debt writedown on 

the day after a missed payment, 

assuming all other primary loan 

servicing criteria are met, instead of 

waiting 31 days.

DATES: Effective March 5, 2004.

FOR FURTHER INFORMATION CONTACT:

Michael Cumpton, Senior Loan Officer, 

USDA, FSA, Loan Servicing and 

Property Management Division, STOP 

0523, 1400 Independence Avenue, SW., 

Washington, DC 20250–0523; telephone 

(202) 690–4014; e-mail: 

mike.cumpton@wdc.usda.gov. Persons 

with disabilities who require alternative 

means for communication (Braille, large 

print, audio tape, etc.) should contact 

the USDA Target Center at (202) 720–

2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This rule has been determined to be 

not significant and has not been 

reviewed by the Office of Management 

and Budget under Executive Order 

12866.