This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

31843 

Vol. 79, No. 106 

Tuesday, June 3, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 63 

[Doc. No. AMS–LPS–14–0028] 

National Sheep Industry Improvement 

Center 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule and request for 

comments. 

SUMMARY: As provided under the 

Agriculture Act of 2014 (2014 Farm 

Bill), the Agricultural Marketing Service 

(AMS) is amending the National Sheep 

Industry Improvement Center (NSIIC) 

regulations. This interim rule 

redesignates the statutory authority from 

section 375 of the Consolidated Farm 

and Rural Development Act to the 

Agricultural Marketing Act of 1946, 

amends the definition of the Act in the 

regulations consistent with the 

redesignated statutory authority, and 

amends the regulations by increasing 

the administrative cap for the use of the 

fund from 3 percent to 10 percent. 

DATES: Effective Date: This interim rule 

is effective June 4, 2014. 

Comment Date: Written comments on 

the regulatory provisions of this interim 

rule must be received by July 3, 2014. 

ADDRESSES: Interested persons are 

invited to submit comments concerning 

this interim rule. Comments must be 

posted on http://www.regulations.gov; 

or sent to Kenneth R. Payne, Director, 

Research and Promotion Division, 

Livestock, Poultry and Seed Program, 

AM, USDA, Room 2608–S, STOP 0251, 

1400 Independence Avenue SW., 

Washington, DC 20250–0251; via Fax to 

202/720–1125; or email to 

Kenneth.Payne@ams.usda.gov. 

All comments should reference the 

document number (AMS–LPS–14–0028) 

and the volume, date, and page number 

of this issue of the Federal Register and 

will be made available for public 

inspection at the aforementioned 

address during regular business hours or 

viewed at http://www.regulations.gov. 

All comments submitted in response to 

this rule will be included in the record 

and will be made available to the 

public. Please be advised that the 

identity of the individuals or entities 

submitting comments will be made 

public on the internet at the address 

provided above. 

FOR FURTHER INFORMATION CONTACT: 

Kenneth R. Payne, Director, Research 

and Promotion Division, Livestock, 

Poultry and Seed Program; Telephone 

202/720–5705; Fax: 202/720–1125; or 

email Kenneth.Payne@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: As 

provided under the 2014 Farm Bill, this 

interim rule redesignates the statutory 

authority for the program from section 

375 (7 U.S.C. 2008j) of the Consolidated 

Farm and Rural Development Act to 

section 210 of the Agricultural 

Marketing Act of 1946 (7 U.S.C. 1621– 

1627). In addition, the definition of 

‘‘Act’’ is amended under section 63.1 to 

be consistent with the redesignated 

statutory authority, and amends the 

regulations by increasing the 

administrative cap for the use of the 

fund from 3 percent to 10 percent. 

Executive Order 12866 and Executive 

Order 13563 

Executive Orders 12866 and 13563 

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 emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. This action has been 

designated as a ‘‘non-significant 

regulatory action’’ under of Executive 

Order 12866. Accordingly, the Office of 

Management and Budget (OMB) has 

waived the review process. 

Executive Order 13175 

This interim final rule has been 

reviewed in accordance with the 

requirements of Executive Order 13175, 

Consultation and Coordination with 

Indian Tribal Governments. The review 

reveals that this interim final rule would 

not have substantial and direct effects 

on Tribal Governments and would not 

have significant tribal implications. 

Executive Order 12988 

This interim final rule has been 

reviewed under Executive Order 12988, 

Civil Justice Reform. This action is not 

intended to have a retroactive effect. 

There are no administrative procedures 

which must be exhausted prior to any 

judicial challenge to the provisions of 

this rule. 

Executive Order 13132 

This interim rule has been reviewed 

under Executive Order 13132, 

Federalism, and 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 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601– 

612), the agency is required to examine 

the impact of regulatory actions on 

small entities. The purpose of the RFA 

is to fit regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be 

disproportionately burdened. 

Pursuant to the requirements set forth 

in the RFA, AMS has considered the 

economic effect of this action on small 

entities and has determined that this 

final rule will not have a significant 

impact on a substantial number of small 

entities. The purpose of the RFA is to 

fit regulatory action to the scale of 

businesses subject to such action in 

order that small businesses will not be 

unduly burdened. 

The U.S. Department of Agriculture’s 

(USDA), National Agricultural Statistics 

Service’s February 2013 publication of 

‘‘Farms, Land in Farms, and Livestock 

Operations’’ estimated that in 2012 the 

number of operations in the United 

States with sheep and goats totaled 

approximately 79,500 and 149,500, 

respectively and would be classified as 

small entities. 

The Small Business Administration 

defines, in 13 CFR 121, small 


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31844 Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations 

agricultural producers as those having 

annual receipts of no more than 

$750,000, and small agricultural service 

firms as those having annual receipts of 

no more than $7 million. Under these 

definitions, the majority of the 

producers that will be affected by this 

rule are considered small entities. 

The purpose of NSIIC is to: (1) 

Promote strategic development activities 

and collaborative efforts by private and 

State entities to maximize the impact of 

Federal assistance to strengthen and 

enhance the production and marketing 

of sheep or goat products in the United 

States; (2) Optimize the use of available 

human capital and resources within the 

sheep or goat industries; (3) Provide 

assistance to meet the needs of the 

sheep or goat industry for infrastructure 

development, business development, 

production, resource development, and 

market and environmental research; (4) 

Advance activities that empower and 

build the capacity of the U.S. sheep or 

goat industry to design unique 

responses to the special needs of the 

sheep or goat industries on both a 

regional and national basis; and (5) 

Adopt flexible and innovative 

approaches to solving the long-term 

needs of the United States sheep or goat 

industry. 

A Board of Directors (Board) manages 

and is responsible for the general 

supervision of the structure of the 

NSIIC, with oversight from USDA. The 

Board is comprised of seven voting 

members, of whom four would be active 

producers of sheep or goats in the 

United States, two would have expertise 

in finance and management, and one 

would have expertise in lamb, wool, 

goat, or goat product marketing. The 

Secretary of Agriculture (Secretary) 

appoints the voting members from 

nominations submitted by eligible 

organizations. There are also two nonvoting members on the Board, the Under 

Secretary of Agriculture for Marketing 

and Regulatory Programs and the Under 

Secretary of Agriculture for Research, 

Education, and Economics. 

As provided under the 2014 Farm 

Bill, AMS is amending NSIIC 

regulations at 7 CFR part 63. This 

interim rule redesignates (1) the 

statutory authority from section 375 (7 

U.S.C. 2008j) of the Consolidated Farm 

and Rural Development Act to the 

Agricultural Marketing Act of 1946 (7 

U.S.C. 1621–1627), (2) amends the 

definition of the Act under section 63.1 

consistent with the redesignated 

statutory authority, and (3) amends the 

regulations by increasing the 

administrative cap for the use of the 

fund from 3 percent to 10 percent. 

Accordingly, AMS has considered the 

economic impact of this rule on small 

entities. AMS has determined that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities as defined in 

the RFA. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (PRA) (44 U.S.C. 

Chapter 35), the reporting and 

recordkeeping requirements included in 

7 CFR part 63 were previously approved 

by OMB and were assigned control 

number 0581–0093. No additions have 

been made to the PRA. 

Background Information 

The NSIIC was initially authorized 

under the Consolidated Farm and Rural 

Development Act (Act). The Act, as 

amended, was passed as part of the 1996 

Farm Bill (Pub. Law 104–127). The 

initial legislation included a provision 

that privatized the NSIIC 10 years after 

its ratification or once the full 

appropriation of $50 million was 

disbursed. Subsequently, the NSIIC was 

privatized on September 30, 2006 (72 

FR 28945). 

In 2008, the NSIIC was re-established 

under Title XI of the Food, 

Conservation, and Energy Act of 2008 

(Pub. L. 110–246), also known as the 

2008 Farm Bill. Section 11009 of the 

2008 Farm Bill repealed the requirement 

in section 375(e)(6) of the Act to 

privatize the NSIIC. Additionally, the 

2008 Farm Bill provided for $1,000,000 

in mandatory funding for fiscal year 

2008 from the Commodity Credit 

Corporation for the NSIIC to remain 

available until expended, as well as 

authorization for appropriations in the 

amount of $10 million for each of fiscal 

years 2008 through 2012. In July 2010, 

USDA promulgated rules and 

regulations establishing the NSIIC, 

consistent with the Food, Conservation, 

and Energy Act of 2008 (75 FR 43031). 

The rule established the NSIIC and a 

Board that will manage and be 

responsible for the general supervision 

of the activities of the NSIIC, with 

oversight from the USDA. The NSIIC is 

authorized to use funds to make grants 

to eligible entities in accordance with a 

strategic plan. 

The authorizing legislation 

established in the United States 

Department of the Treasury (Treasury) 

the NSIIC Revolving Fund (Fund). The 

Fund was available to the NSIIC, 

without fiscal year limitation, to carry 

out the authorized programs and 

activities of the NSIIC. The law provides 

authority for amounts in the Fund to be 

used for direct loans, loan guarantees, 

cooperative agreements, equity interests, 

investments, repayable grants, and 

grants to eligible entities, either directly 

or through an intermediary, in 

accordance with a strategic plan 

submitted by the NSIIC to the Secretary. 

In accordance with the 2014 Farm Bill, 

AMS is amending the National Sheep 

Industry Improvement Center 

regulations at 7 CFR part 63 as provided 

for herein. 

The management of the NSIIC is 

vested in a Board that is appointed by 

the Secretary. The Secretary reviews 

and monitors compliance of the Board 

as provided under the Act and rules and 

regulations. The Board is composed of 

seven voting members, of whom four 

would be active producers of sheep or 

goats in the United States, two would 

have expertise in finance and 

management, and one would have 

expertise in lamb, wool, goat, or goat 

product marketing. The Board also 

includes two non-voting members, the 

Under Secretary of Agriculture for 

Marketing and Regulatory Programs and 

the Under Secretary of Agriculture for 

Research, Education, and Economics. 

The Secretary appoints the voting 

members from nominations submitted 

by eligible organizations. A member’s 

term of office shall be 3 years with a 

maximum of two terms. Board members 

initially served staggered terms of 1, 2, 

or 3 years, as determined by the 

Secretary. Only national organizations 

that (1) consist primarily of active sheep 

or goat producers in the United States 

and (2) have the primary interest of 

sheep or goat production in the United 

States can make nominations to the 

Board. 

The Board meets not less than once 

each fiscal year. Board members do not 

receive compensation for serving on the 

Board, but are reimbursed for travel, 

subsistence, and other necessary 

expenses. The Board is responsible for 

general supervision of the NSIIC; review 

of any contract and grant to be made or 

entered into by the NSIIC and any 

financial assistance provided to the 

NSIIC; making final decision—by 

majority vote—on whether or not to 

provide grants to an eligible entity; and 

developing and establishing a budget 

plan and long-term operating plan to 

carry out the goals of the NSIIC. 

The authorizing legislation establishes 

in the United States Treasury, the NSIIC 

Fund. The Fund is available to the 

NSIIC, without fiscal year limitation, to 

carry out the authorized programs and 

activities of the NSIIC. The law provides 

authority for amounts in the Fund to be 

used to carry out authorized program 

activities of the NSIIC. 

The current program authorizes a 

grant-only program administered by the 


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Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations 31845 

NSIIC Board. Based on funding, the 

Board announces that proposals may be 

submitted to the Board for consideration 

from eligible entities. The Board 

determines how funds are allocated. 

Proposals submitted to the Board must 

be consistent with the purpose of the 

NSIIC. 

Discussion of Interim Regulatory Text 

As provided under 2014 Farm Bill, 

the AMS is amending the National 

Sheep Industry Improvement Center 

regulations at 7 CFR Part 63. This 

interim rule redesignates (1) the 

statutory authority from section 375 (7 

U.S.C. 2008j) of the Consolidated Farm 

and Rural Development Act to the 

Agricultural Marketing Act of 1946 (7 

U.S.C. 1621–1627), (2) amends the 

definition of the Act under section 63.1 

consistent with the redesignated 

statutory authority, and (3) amends the 

regulations by increasing the 

administrative cap for the use of the 

funds from 3 percent to 10 percent. 

Pursuant to 5 U.S.C. 553, it is found 

and determined upon good cause that it 

is impracticable and contrary to the 

public interest to give preliminary 

notice prior to putting this rule into 

effect and that good cause exists for not 

postponing the effective date of this rule 

until 30 days after publication in the 

Federal Register because: (1) These 

changes need to be in effect as soon as 

possible because the next available 

funding opportunities are scheduled to 

begin in July; and (2) the amendments 

are necessary to implement provision 

under the 2014 Farm Bill. For these 

same reasons a 30-day comment period 

is deemed appropriate. 

List of Subjects in 7 CFR Part 63 

Administrative practice and 

procedure, Advertising, Lamb and lamb 

products, Goat and goat products, 

Consumer information, Marketing 

agreements, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, Chapter I of Title 7 of the 

Code of Federal Regulations is amended 

as follows: 

PART 63—NATIONAL SHEEP 

INDUSTRY IMPROVEMENT CENTER 

■ 1. Revise the authority for part 63 to 

read as follows: 

Authority: 7 U.S.C. 1621–1627. 

■ 2. Revise § 63.1, Act, to read as 

follows: 

§ 63.1 Act. 

Act means the Agricultural Marketing 

Act of 1946 (7 U.S.C. 1621–1627). 

■ 3. In § 63.301 revise paragraph (a)(6) 

to read as follows: 

§ 63.301 Use of Fund. 

* * * * * 

(a) * * * 

(6) For administration purposes, with 

a maximum 10 percent of the NSIIC 

Fund balance at the beginning of each 

fiscal year for the administration of the 

NSIIC; 

* * * * * 

Dated: May 27, 2014. 

Rex A. Barnes, 

Associate Administrator. 

[FR Doc. 2014–12589 Filed 6–2–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Rural Housing Service 

Rural Business-Cooperative Service 

Rural Utilities Service 

Farm Service Agency 

7 CFR Part 1951 

Rural Business-Cooperative Service 

Rural Utilities Service 

7 CFR Part 4274 

RIN 0570–AA86 

Intermediary Relending Program 

AGENCY: Rural Business-Cooperative 

Service, Rural Housing Service, Rural 

Utilities Service, and Farm Service 

Agency, USDA. 

ACTION: Direct final rule. 

SUMMARY: The Rural BusinessCooperative Service (RBS) amends its 

regulations for the Intermediary 

Relending Program (IRP). This action is 

critical to immediately address three 

major items. First, the Agricultural Act 

of 2014 incorporates the IRP into the 

Consolidated Farm and Rural 

Development Act (Con Act). Therefore 

the IRP will now be subject to the Con 

Act, Section 343(a)(13) ‘‘rural and rural 

area’’ definition. Second, the Agency is 

making the following changes based on 

an Office of Inspector General (OIG) 

audit: Removing part of the definition of 

revolved funds to eliminate public 

confusion on its applicability; providing 

stronger guidance on items that should 

be taken into consideration when 

approving subsequent loans; defining 

what is meant by promptly relending 

collections from loans made from the 

revolving loan fund account; and 

providing clarification when prior 

Agency concurrence is needed to make 

loans. Finally, the Agency is removing 

provisions for Rural Development Loan 

Fund (RDLF) servicing as there are no 

longer any active RDLF accounts. 

DATES: This direct final rule is effective 

September 2, 2014, unless RBS receives 

a written significant adverse comment 

or written notice of intent to submit a 

significant adverse comment on any 

provision other than the definition of 

‘‘rural or rural area’’ on or before August 

4, 2014. Since the definition of ‘‘rural or 

rural area’’ is statutory, RBS is unable to 

change the definition of ‘‘rural or rural 

area’’ even if significant adverse 

comments are received. 

If RBS receives a significant adverse 

comment on any provision of this rule 

other than the definition of ‘‘rural or 

rural area,’’ we will publish a timely 

document in the Federal Register 

informing the public that that provision 

will not take effect. The rule provisions 

that are not withdrawn will become 

effective on September 2, 2014, 

notwithstanding a significant adverse 

comment on any other provision, unless 

we determine that it would not be 

appropriate to do so. Any significant 

adverse comments will be addressed 

when RBS issues a final IRP rule to 

implement the proposed IRP rule that is 

also being published this date. 

ADDRESSES: You may submit adverse 

comments or notice of intent to submit 

adverse comments to this rule by any of 

the following methods: 

Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

Mail: Submit written comments via 

the U.S. Postal Service to the Branch 

Chief, Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, STOP 0742, 1400 

Independence Avenue SW., 

Washington, DC 20250–0742. 

Hand Delivery/Courier: Submit 

written comments via Federal Express 

Mail or other courier service requiring a 

street address to the Branch Chief, 

Regulations and Paperwork 

Management Branch, U.S. Department 

of Agriculture, 300 7th Street SW., 7th 

Floor, Washington, DC 20024. 

All written comments will be 

available for public inspection during 

regular work hours at 300 7th Street 

SW., 7th Floor address listed above. 

FOR FURTHER INFORMATION CONTACT: Lori 

A. Washington, Business Loan and 

Grant Analyst, Specialty Programs 

Division, Rural Business-Cooperative 

Service, U.S. Department of Agriculture, 

STOP 3225, 1400 Independence Ave. 


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