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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Rules and Regulations Federal Register

46335 

Vol. 79, No. 153 

Friday, August 8, 2014 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Part 1412 

RIN 0560–AI22 

Cotton Transition Assistance Program 

and General Provisions for Agriculture 

Risk Coverage and Price Loss 

Coverage Programs 

AGENCY: Commodity Credit Corporation 

and Farm Service Agency, USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements the new 

Cotton Transition Assistance Program 

(CTAP) authorized by the Agricultural 

Act of 2014 (the 2014 Farm Bill). It also 

includes general provisions needed to 

implement CTAP, the Agriculture Risk 

Coverage (ARC), and Price Loss 

Coverage (PLC) Programs. ARC and PLC 

will be implemented through a separate 

rulemaking and will provide benefits for 

other commodities. CTAP is a 

temporary program that provides 

payments to producers on farms for 

which cotton base acres were in 

existence as of September 30, 2013, as 

adjusted. It will operate for only the 

2014 crop year and in certain counties 

for the 2015 crop year, and is intended 

to be a transition for producers on farms 

with upland cotton base acres that were 

in existence as of September 30, 2013, 

between the previous Direct and 

Counter-cyclical Payments Program 

(DCP) and the new Stacked Income 

Protection Plan (STAX), which is 

authorized to begin no later than the 

2015 crop year. 

DATES: Effective Date: August 8, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Brent Orr; telephone: (202) 720–7641. 

Persons with disabilities who require 

alternative means for communication 

(Braille, large print, audiotape, etc.) 

should contact the USDA Target Center 

at (202) 720–2600 (voice and TDD). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 1119 of the 2014 Farm Bill 

(Pub. L. 113–79) authorizes CTAP for 

producers on farms ‘‘for which cotton 

base acres were in existence for the 2013 

crop year.’’ CTAP is only authorized for 

the 2014 crop year, and for the 2015 

crop year in counties where STAX is not 

available. STAX, as specified in section 

11017 of the 2014 Farm Bill, is required 

to become available no later than the 

2015 crop year, but is not required to 

provide coverage for every county in 

2015. (USDA’s Risk Management 

Agency is implementing STAX.) CTAP 

has some similarities to the direct 

payment aspect of DCP, for upland 

cotton only. The new ARC and PLC 

Programs authorized by sections 1116 

and 1117 of the 2014 Farm Bill, 

respectively, which are being 

implemented through separate 

rulemaking, provide benefits for the 

commodities, other than upland cotton, 

that were previously covered by DCP. 

The 2014 Farm Bill specifies that 

CTAP payments will be based on the 

farm’s upland cotton base acres that 

were ‘‘in existence for the 2013 crop 

year.’’ Accordingly, the 2014 CTAP 

payments will be made available to 

eligible producers on farms for which 

cotton base acres were in existence as of 

September 30, 2013, as adjusted. STAX 

is scheduled to be available in some 

counties beginning with the 2015 crop 

year; producers on a farm located in a 

county where STAX is available will not 

be eligible for CTAP for the 2015 crop 

year. In counties where STAX is not 

available for the 2015 crop year, 

producers on farms for which 2013 

upland cotton base acres were in 

existence as of September 30, 2013, as 

adjusted, will be eligible for 2015 CTAP 

payments after October 1, 2015. This 

rule specifies the eligibility 

requirements for CTAP, which are 

different for 2014 and 2015 because of 

the provision involving STAX 

availability. Similar to DCP, producers 

do not have to actually grow or harvest 

upland cotton to be eligible for CTAP. 

However, producers must have an 

interest in the upland cotton base acres 

on the farm and must meet or satisfy 

other payment eligibility requirements 

(including average adjusted gross 

income requirements, conservation 

compliance provisions, and actively 

engaged in farming) to be eligible for 

CTAP. 

The regulations for CTAP, ARC, and 

PLC will be specified in 7 CFR part 

1412. Some definitions and 

requirements for base acres that are 

needed for all three programs are 

specified in this rule. For example, as 

specified in the 2014 Farm Bill, base 

acres of upland cotton in effect on 

September 30, 2013, are defined as 

generic base acres for the purposes of 

ARC and PLC. As another example, 

provisions for double cropping and 

replacement crops are similar to those 

for DCP, but the definitions are being 

revised to remove references to DCP and 

to insert references to CTAP, ARC, and 

PLC. Additional terms ‘‘eligible 

subsequently planted crop acreage’’ and 

‘‘subsequently planted crop acreage’’ are 

added as those terms have different 

applicable meanings under the 2014 

Farm Bill. Under section 1114 of the 

2014 Farm Bill, subsequently planted 

crop acreage can be used as payment 

acres or for attributing generic base 

acres if the initial crop is any crop other 

than a covered commodity. These 

subsequently planted crop acres are 

termed ‘‘eligible subsequently planted 

crop acreage.’’ The term ‘‘subsequently 

planted crop acreage’’ is also added to 

distinguish it from ‘‘eligible 

subsequently planted crop acreage’’ by 

virtue of it following any planted and 

considered planted (P&CP) covered 

commodity not in an approved double 

cropping sequence. To reiterate, 

‘‘eligible subsequently planted crop 

acreage’’ may be used to determine 

payment acres under ARC or PLC and 

to attribute generic base acres on a farm; 

‘‘subsequently planted crop acreage’’ 

may be used to facilitate base acre 

reallocation. Common provisions in 7 

CFR 718 that apply to all FSA and CCC 

programs, including those for base acres 

and farm reconstitutions, apply to 

CTAP. 

Eligible Land and Payment Amounts for 

CTAP 

The eligible land for CTAP in 2014 

and 2015 is based on the farm’s upland 

cotton base acres that were in existence 

for the 2013 crop year, as of September 

30, 2013, adjusted, including, but not 

limited to, adjustments for expired, 

terminated, or released Conservation 

Reserve Program (CRP) land, and 

limited by the total number of cropland 


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acres on the farm (cropland is defined 

in 7 CFR 718.2). A producer’s share 

interest in cropland on a farm must be 

equal to or greater than that producer’s 

share interest in cotton base acres on the 

farm for that crop year, as reported on 

that farm’s acreage report. FSA will 

verify and confirm the producer’s share 

interest in cotton base acres reported on 

the CTAP application by comparing it to 

the producer’s share interest in the 

cropland as reported on that farm’s 

acreage report for that crop year. For 

example, if a farm has 50 base acres of 

cotton and two producers report equal 

shares of those 50 base acres of cotton, 

each must each have a 100 percent share 

interest in at least 25 reported cropland 

acres on that farm’s acreage report for 

the same crop year to support their 

reported share of cotton base acres on 

that farm. 

Section 1119(c) of the 2014 Farm Bill 

states that the CTAP payment amount is 

equal to the number of adjusted base 

acres of upland cotton divided by the 

national program yield for upland 

cotton of 597 pounds per acre times the 

transition assistance rate for upland 

cotton times the farm’s DCP yield, times 

a specified percentage payment rate. 

The 2014 Farm Bill specifies that the 

transition assistance rate of upland 

cotton is the June 12, 2013, midpoint 

estimate for the marketing year average 

price of upland cotton for the marketing 

year beginning August 1, 2013, less the 

December 10, 2013, midpoint estimate 

for the marketing year average price of 

upland cotton for the marketing year 

beginning August 1, 2013, as contained 

in the applicable World Agricultural 

Supply and Demand Estimates report 

published by USDA, multiplied by the 

national program yield for upland 

cotton of 597 pounds per acre. 

Mathematically, the 597 pounds per 

acre cancels out of the above equation. 

Accordingly, the transition assistance 

rate can be restated as simply the 

difference between the August 1, 2013, 

and the December 10, 2013, midpoint 

estimates. FSA has calculated the 

transition assistance rate to be $0.09 per 

pound. The payment rates, as specified 

in the 2014 Farm Bill are: 60 percent for 

the 2014 crop year and 36.5 percent for 

the 2015 crop year. Therefore, the 

payment per base acre of upland cotton 

for 2014 would be $0.09, times the 

farm’s DCP yield, times 60 percent. If 

the farm’s DCP yield was 500 pounds, 

that payment would be $27.00 an acre. 

For 2015 it would be $0.09, times the 

farm’s DCP yield, times 36.5 percent. If 

the farm’s DCP yield was 500 pounds, 

that payment would be $16.425 an acre. 

CTAP payments will be made to 

eligible producers on or after October 1 

of the crop year when upland cotton is 

or ordinarily would have been 

harvested. Similar to DCP, payment 

eligibility is based upon the number of 

upland cotton base acres, which are not 

required to be planted to cotton. As 

discussed earlier, eligibility for CTAP in 

2015 is determined in part by the 

availability of STAX. 

Eligible Acreage Reductions for ARC 

and PLC 

ARC and PLC have similar provisions 

to the former DCP with regard to 

planting flexibility and reductions for 

plantings of fruits, vegetables, and wild 

rice on base acres. The acreage 

reduction provisions apply to ARC and 

PLC, but not to CTAP. However, we are 

specifying them in this rule so that 

producers are informed of how generic 

acres and acreage reductions will be 

used in the payment calculations for 

ARC and PLC. 

Similar to DCP, the planting or 

harvesting of perennial or non-perennial 

fruits, vegetables (except mung beans 

and pulse crops), or wild rice will result 

in an acre for acre payment reduction 

for ARC and PLC (but not CTAP), unless 

an exception applies for double cropped 

acreage in approved double cropping 

counties. Under DCP, the reduction was 

applied beginning with the covered 

commodity or peanut acres with the 

lowest direct payment amount per acre 

until the acreage reduction amount was 

met. In addition, producers could agree 

to adjust the DCP acre reduction 

between covered commodities and 

peanuts on the farm, but only to the 

extent that the total acre reduction 

amount did not change for the farm, and 

all producers affected by the adjustment 

agreed to the adjustment in writing. 

Under CTAP, ARC, and PLC, as 

specified in the 2014 Farm Bill, peanuts 

are now a covered commodity, upland 

cotton is not a covered commodity, and 

what were upland cotton base acres 

under the 2008 Farm Bill are now 

generic base acres that will be counted 

as acres of covered commodities if 

planted (or considered planted). 

Therefore, determining the acres that 

have the lowest payment amount per 

acre for all covered commodities for 

ARC and PLC on the farm is more 

complicated than under DCP. 

This rule specifies that in determining 

reductions to base acres that are 

payment acres for ARC and PLC (only 

payment acres are reduced, not base 

acres) the acreage of any fruit or 

vegetable will first be attributed to 

cropland not having base acres, 

followed by base acres, before applying 

any payment acreage reduction that is 

required by this rule. The reduction will 

be attributed to each of the covered 

commodities on the farm having 

payment acres on a pro rata basis to 

reflect the ratio of the payment acres of 

the covered commodity on the farm to 

the total payment acres of all covered 

commodities on the farm. The 

reductions are required by the 2014 

Farm Bill; the pro rata procedure for 

determining the reductions is 

discretionary and within FSA’s 

authority. 

CTAP Payment Limits, Eligible Persons 

and Legal Entities 

As specified in the 2014 Farm Bill 

and in 7 CFR part 1400, payment limits 

and average adjusted gross income (AGI) 

limits apply to CTAP. CTAP payments 

in each of the 2014 and 2015 program 

years are limited to $40,000 per person 

or legal entity, similar to the $40,000 per 

person or legal entity limitation that 

applied to DCP under the 2008 Farm 

Bill. A person or legal entity is ineligible 

for payments if the person’s or legal 

entity’s AGI for the applicable 

compliance program year is in excess of 

$900,000. Similar to how AGI 

provisions applied to members of legal 

entities in the 2008 Farm Bill, under the 

2014 Farm Bill if a person with an 

indirect interest in a legal entity has AGI 

in excess of $900,000, the CTAP 

payments subject to AGI compliance 

provisions to the legal entity will be 

reduced as calculated based on the 

percent interest of the person in the 

legal entity receiving the payment. AGI 

will be calculated based on the average 

income for the 3 taxable years preceding 

the most immediately preceding 

complete taxable year for which benefits 

are requested. For example, the relevant 

years used to calculate AGI for 2014 

CTAP are the 2010, 2011, and 2012 tax 

years. For 2015 CTAP the relevant years 

are the 2011, 2012, and 2013 tax years. 

To be eligible for CTAP, each 

producer is required to be a person or 

legal entity who is actively engaged in 

farming and otherwise eligible for 

payment, as specified in 7 CFR part 

1400, and who complies with 

requirements including, but not limited 

to, those pertaining to highly erodible 

land conservation and wetland 

conservation provisions (commonly 

referred to as the conservation 

compliance provisions) specified in 7 

CFR part 12. 

Appeal regulations specified in 7 CFR 

parts 11 and 780 apply. FSA program 

requirements and determinations that 

are not in response to, or result from, an 

individual. disputable set of facts in an 

individual participant’s application for 

assistance are not matters that can be 

appealed. Crop insurance is not 


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required as a condition of eligibility for 

CTAP. 

Sharing CTAP Payments Between 

Multiple Producers on a Farm 

The procedures to determine shared 

payments will be similar to those used 

for DCP. Each eligible producer on a 

farm will be given the opportunity to 

apply for CTAP and receive CTAP 

payments determined to be fair and 

equitable as agreed to by all the 

producers on the farm and approved by 

the FSA county committee. Each 

producer leasing a farm is required to 

provide a copy of their written lease to 

the county committee and, in the 

absence of a written lease, is required to 

provide to the county committee a 

complete written description of the 

terms and conditions of any oral 

agreement or lease. An owner’s or 

landlord’s signature, as applicable, 

affirming a zero share on an application 

for CTAP may be accepted as evidence 

of a cash lease between the owner or 

landlord and tenant, as applicable, as 

determined by CCC. Such signature or 

signatures, if entered on the application 

for CTAP to satisfy the requirement of 

furnishing a written lease, is required to 

be entered on the application by 

October 7, 2014 for 2014 CTAP and by 

July 31, 2015, for 2015 CTAP. When a 

farm’s 2013 base acres of upland cotton 

are leased in 2014 or 2015 on a share 

basis, neither the landlord nor the 

tenant will receive 100 percent of CTAP 

for the farm. CCC will approve an 

application for CTAP and approve the 

division of payment when all the 

following, as applicable, occur or have 

been determined to have occurred: 

(1) Landlords, tenants, and 

sharecroppers sign the application and 

agree to the payment shares shown; and 

(2) CCC determines that the interests 

of tenants and sharecroppers are being 

protected; and 

(3) CCC determines that the payment 

shares do not circumvent either the 

provisions of this rule or the provisions 

of 7 CFR part 1400. 

Signup Deadlines for 2014 and 2015 

CTAP 

Section 1119 of the 2014 Farm Bill 

authorizes CTAP, which is not to be 

paid before October 1 of the calendar 

year in which the crop of upland cotton 

is harvested. This means that FSA 

cannot make 2014 CTAP payments 

before October 1, 2014. However, signup 

for payments can occur earlier. FSA is 

exercising discretion and establishing a 

signup deadline of October 7, 2014, for 

2014 CTAP so as to not delay CTAP 

payments. We anticipate that most 

producers who enrolled 2013 cotton 

base acres in 2013 DCP or the Average 

Crop Revenue Election (ACRE) Program 

will likely choose to apply for CTAP. 

For 2015 CTAP, the signup deadline 

will be July 31, 2015. 

Applications for CTAP are 

independent of any election and 

participation in ARC or PLC. It is 

possible for upland cotton base acres 

eligible for CTAP to also qualify as 

eligible generic base acres for ARC and 

PLC, and (more commonly) for a farm to 

have some cotton base acres eligible for 

CTAP and base acres for different 

commodities eligible for ARC and PLC. 

A producer needs to separately elect 

and enroll in ARC or PLC to be eligible 

for those benefits. The application for 

CTAP has no bearing on ARC or PLC 

elections or decision to participate in 

ARC or PLC. Likewise, persons or legal 

entities that enroll and elect ARC or PLC 

and who do not file an application for 

2014 or 2015 CTAP in accordance with 

this rule will not be paid for 2014 or 

2015 CTAP, even if those acres were 

eligible for CTAP. 

Miscellaneous and Conforming 

Amendments 

This rule revises 7 CFR part 1412, 

which had been the regulations for DCP 

and ACRE, and will now be the 

regulations for ARC, PLC, and CTAP. 

Many of the provisions that applied to 

DCP and ACRE will also apply to ARC, 

PLC, and CTAP, and are therefore 

included in this rule with the required 

revisions. These include the provisions 

for planting flexibility and double 

cropping, and provisions relating to 

tenants, sharecroppers, offsets, 

assignments, acreage, and production 

reporting. 

This rule revises definitions in 7 CFR 

part 1412 as required to implement 

ARC, PLC, and CTAP. For example, the 

definition of ‘‘contract period’’ is 

revised to specify the contract periods 

for 2014 through 2018 ARC and PLC. 

(CTAP uses applications; ARC and PLC 

use contracts.) A definition for generic 

base acres is added, as specified in the 

2014 Farm Bill. The definition of 

‘‘replacement crop’’ is revised to refer to 

both covered commodities and upland 

cotton, since cotton is no longer a 

covered commodity. A definition of 

‘‘temperate japonica rice’’ is added as a 

type of medium grain rice, as specified 

in the 2014 Farm Bill. 

Structure of the Regulation 

This rule revises 7 CFR part 1412, 

adding the regulations for CTAP and 

some of the regulations for ARC and 

PLC, and removing all the regulations 

for DCP and ACRE as discussed above. 

The revised 7 CFR part 1412 will use a 

similar subpart structure to the previous 

DCP and ACRE regulations. The new 

title of the part is ‘‘Agriculture Risk 

Coverage, Price Loss Coverage, and 

Cotton Transition Assistance Program.’’ 

Subpart A will cover general 

administration; subpart B will cover 

base acres; subpart C will cover yields 

for ARC and PLC; subpart D will cover 

ARC and PLC contract terms and 

enrollment provisions; subpart E will 

cover financial considerations including 

sharing payments; subpart F will cover 

violations; subpart G will cover PLC and 

ARC election; and subpart H will cover 

CTAP. Subparts C and G will be added 

in the separate rulemaking to implement 

the ARC and PLC Programs. This rule 

includes the sections needed to 

implement CTAP, and includes some 

sections that also apply to ARC and 

PLC, or that involve generic base acres 

as discussed above. Sections in 7 CFR 

part 1412 that apply only to ARC and 

PLC will be added in a subsequent 

rulemaking. 

Notice and Comment 

In general, the Administrative 

Procedure Act (5 U.S.C. 553) requires 

that a notice of proposed rulemaking be 

published in the Federal Register and 

interested persons be given an 

opportunity to participate in the 

rulemaking through submission of 

written data, views, or arguments with 

or without opportunity for oral 

presentation, except when the rule 

involves a matter relating to public 

property, loans, grants, benefits, or 

contracts. The regulations to implement 

the provisions of Title I and the 

administration of Title I of the 2014 

Farm Bill are exempt from the notice 

and comment provisions of 5 U.S.C. 553 

and the Paperwork Reduction Act (44 

U.S.C. chapter 35), as specified in 

section 1601(c)(2) of the 2014 Farm Bill. 

Effective Date 

The Administrative Procedure Act (5 

U.S.C. 553) provides generally that 

before rules are issued by Government 

agencies, the rule is required to be 

published in the Federal Register, and 

the required publication of a substantive 

rule is to be not less than 30 days before 

its effective date. One of the exceptions 

is when the agency finds good cause for 

not delaying the effective date. 

Subsection 1601(c)(2) of the 2014 Farm 

Bill makes this final rule exempt from 

notice and comment. Therefore, using 

the administrative procedure provisions 

in 5 U.S.C. 553, FSA finds that there is 

good cause for making this rule effective 

less than 30 days after publication in the 

Federal Register. This rule allows FSA 

to provide adequate notice to producers 


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46338 Federal Register / Vol. 79, No. 153 / Friday, August 8, 2014 / Rules and Regulations 

about the new CTAP regulation so they 

will be ready to begin sign-up for CTAP 

in summer 2014, so that payments can 

be provided as soon as possible on or 

after October 1, 2014. Therefore, to 

begin providing benefits to producers in 

a timely fashion, this final rule is 

effective when published in the Federal 

Register. 

Executive Orders 12866 and 13563 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

The Office of Management and Budget 

(OMB) designated this rule as 

economically significant under 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and therefore, 

OMB has reviewed this rule. This 

regulatory action is being taken to 

implement a major budgetary program 

required by the 2014 Farm Bill. 

Consistent with OMB guidance, this 

type of action is considered a budgetary 

transfer representing a payment from 

taxpayers to program beneficiaries 

unrelated to the provision of any goods 

or services in exchange for the payment. 

As such, there are no economic gains, 

because the benefits and payments to 

those who receive such a transfer are 

matched by the costs borne by 

taxpayers. The estimated transfer 

payments for CTAP provided by this 

rule are summarized below. The full 

cost benefit analysis is available on 

regulations.gov. 

Cost Benefit Analysis Summary 

CTAP payments are estimated to be 

$572.1 million for 2014 and $1.6 million 

for 2015. In 2013, approximately 

122,000 producers enrolled upland 

cotton base acres in DCP and ACRE. For 

2014, we estimate a similar number of 

producers and farms will apply for 2014 

CTAP payments totaling $572.1 million. 

For 2015, we estimate approximately 

18,000 producers with 2013 upland 

cotton base acres in areas where STAX 

has not yet been implemented will 

apply for CTAP payments totaling $1.6 

million. 

Some producers with cotton base 

acres did not enroll those acres in DCP 

and ACRE. If those producers apply for 

CTAP, meaning that every potentially 

eligible cotton base acre generates a 

CTAP payment, the estimates would be 

slightly higher, at $624 million for 2014 

and $1.8 million for 2015. 

There is a payment limit of $40,000 

per year per person or legal entity for 

CTAP. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601–612), as amended by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 

generally requires an agency to prepare 

a regulatory flexibility analysis of any 

rule subject to the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other statute, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This rule is not subject to the Regulatory 

Flexibility Act because CCC is not 

required by any law to publish a 

proposed rule for public comment for 

this rulemaking initiative. 

Environmental Review 

The environmental impacts of this 

rule have been considered in a manner 

consistent with the provisions of the 

National Environmental Policy Act 

(NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and FSA regulations for 

compliance with NEPA (7 CFR part 

799). FSA has determined that 

participation in programs similar to 

those currently found in 7 CFR 1412 

will not significantly affect the quality 

of the human environment (7 CFR part 

799.9(d)). Therefore no environmental 

assessment or environmental impact 

statement will be prepared. 

Executive Order 12372 

Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ requires consultation with 

State and local officials. The objectives 

of the Executive Order are to foster an 

intergovernmental partnership and a 

strengthened Federalism, by relying on 

State and local processes for State and 

local government coordination and 

review of proposed Federal Financial 

assistance and direct Federal 

development. For reasons specified in 

the Notice to 7 CFR part 3015, subpart 

V (48 FR 29115, June 24, 1983), the 

programs and activities within this rule 

are excluded from the scope of 

Executive Order 12372, which requires 

intergovernmental consultation with 

State and local officials. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. 

The rule will not have retroactive effect. 

Before any judicial action may be 

brought regarding the provisions of this 

rule, the administrative appeal 

provisions of 7 CFR parts 11 and 780 are 

to be exhausted. 

Executive Order 13132 

This rule has been reviewed under 

Executive Order 13132, ‘‘Federalism.’’ 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

Federal government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, except as required 

by law. Nor does this rule impose 

substantial direct compliance costs on 

State and local governments. Therefore, 

consultation with the States is not 

required. 

Executive Order 13175 

This rule has been reviewed in 

accordance with the requirements of 

Executive Order 13175, ‘‘Consultation 

and Coordination with Indian Tribal 

Governments.’’ Executive Order 13175 

requires Federal agencies to consult and 

coordinate with tribes on a governmentto-government basis on policies that 

have tribal implications, including 

regulations, legislative comments or 

proposed legislation, and other policy 

statements or actions that have 

substantial direct effects on one or more 

Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

FSA has assessed the impact of this 

rule on Indian tribes and determined 

that this rule does not, to our 

knowledge, have tribal implications that 

require tribal consultation under 

Executive Order 13175. If a Tribe 

requests consultation, FSA will work 

with the USDA Office of Tribal 

Relations to ensure meaningful 

consultation is provided where changes, 

additions, and modifications identified 

in this rule are not expressly mandated 

by the 2014 Farm Bill. 

The Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 


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actions on State, local, and Tribal 

governments, or the private sector. 

Agencies generally need to prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with Federal mandates that may 

result in expenditures of $100 million or 

more in any 1 year for State, local, or 

Tribal governments, in the aggregate, or 

to the private sector. UMRA generally 

requires agencies to consider 

alternatives and adopt the more cost 

effective or least burdensome alternative 

that achieves the objectives of the rule. 

This rule contains no Federal mandates, 

as defined in Title II of UMRA, for State, 

local, and Tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of UMRA. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA) 

This rule is a major rule under the 

Small Business Regulatory Enforcement 

Fairness Act of 1996, (Pub. L. 104–121, 

SBREFA). SBREFA normally requires 

that an agency delay the effective date 

of a major rule for 60 days from the date 

of publication to allow for 

Congressional review. Section 808 of 

SBREFA allows an agency to make a 

major regulation effective immediately 

if the agency finds there is good cause 

to do so. Section 1601(c)(3) of the 2014 

Farm Bill provides that the authority in 

Section 808 of SBREFA will be used in 

implementing the changes required by 

Title I of the 2014 Farm Bill, such as for 

the changes being made by this rule. 

Consistent with section 1601(c)(3) of the 

2014 Farm Bill, FSA therefore finds that 

it would be contrary to the public 

interest to delay the effective date of this 

rule because it would delay 

implementation of CTAP as specified in 

the 2014 Farm Bill. The regulation 

needs to be effective to provide 

adequate time for producers to be ready 

to begin the sign-up process in a timely 

fashion and make payments as soon as 

possible after October 1, 2014. 

Therefore, this rule is effective when 

published in the Federal Register. 

Federal Assistance Programs 

The title and number of the Federal 

Domestic Assistance Program found in 

the Catalog of Federal Domestic 

Assistance to which this rule applies 

are: 

10.113—Agriculture Risk Coverage 

10.112—Price Loss Coverage 

10.114—Cotton Transition Assistance 

Program 

Paperwork Reduction Act of 1995 

The regulations in this rule are 

exempt from the requirements of the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), as specified in subsection 

1601(c)(2)(B) of the 2014 Farm Bill, 

which provides that these regulations be 

promulgated and administered without 

regard to the Paperwork Reduction Act. 

E-Government Act Compliance 

FSA and CCC are committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. 

List of Subjects in 7 CFR Part 1412 

Cotton, Feed grains, Oilseeds, 

Peanuts, Price support programs, 

Reporting and recordkeeping 

requirements, Rice, Soil conservation, 

Wheat. 

For the reasons discussed above, CCC 

revises 7 CFR part 1412 to read as 

follows: 

PART 1412—AGRICULTURE RISK 

COVERAGE, PRICE LOSS COVERAGE, 

AND COTTON TRANSITION 

ASSISTANCE PROGRAMS 

Subpart A—General Provisions 

Sec. 

1412.1 Applicability, changes in law, 

interest, application, and contract 

provisions. 

1412.2 Administration. 

1412.3 Definitions. 

1412.4 Appeals. 

Subpart B—Establishment of Base Acres 

for a Farm for Covered Commodities 

1412.23 Base acres, generic base acres, and 

Conservation Reserve Program. 

1412.24 Limitation of total base acres and 

generic base acres on a farm. 

Subpart D— ARC and PLC Contract Terms 

and Enrollment Provisions for Covered 

Commodities 

1412.44 Notification of base acres. 

1412.45 Treatment of generic base acres. 

1412.46 Planting flexibility. 

1412.49 Matters of general applicability. 

Subpart E—Financial Considerations 

Including Sharing Payments 

1412.51 Limitation of payments. 

1412.54 Sharing of payments. 

1412.55 Provisions relating to tenants and 

sharecroppers. 

Subpart F—Violations and Compliance 

Provisions 

1412.61 Contract violations. 

1412.63 Contract or application liability. 

1412.64 Inaccurate representation, 

misrepresentation, and scheme or 

device. 

1412.65 Offsets and assignments. 

1412.66 Acreage and production reports, 

prevented planting, and notice of loss. 

1412.67 Compliance with highly erodible 

land and wetland conservation 

provisions. 

1412.68 Controlled substance violations. 

1412.69 Control of noxious weeds. 

Subpart H—CTAP 

1412.81 Administration. 

1412.82 Eligibility and CTAP application. 

1412.83 Sharing of CTAP payments. 

1412.84 Impact of CTAP application on 

ARC or PLC. 

1412.86 CTAP payments. 

1412.87 Transfer of land and succession-ininterest. 

1412.88 Executed CTAP application not in 

conformity with regulations. 

1412.89 Division of CTAP payments and 

provisions relating to tenants and 

sharecroppers. 

Authority: 7 U.S.C. 1508b, 7911–7912, 

7916, 8702, 8711–8712, 8751–8752, and 15 

U.S.C. 714b and 714c. 

Subpart A—General Provisions 

§ 1412.1 Applicability, changes in law, 

interest, application, and contract 

provisions. 

(a) This part specifies how base acres, 

generic base acres, and farm program 

payment yields are established or 

adjusted for the purpose of calculating 

payments for agriculture risk coverage 

(ARC) and price loss coverage (PLC) for 

covered commodities: Wheat, oats, and 

barley (including wheat, oats, and 

barley used for haying and grazing); 

corn; grain sorghum; long grain rice; 

medium grain rice; pulse crops; 

soybeans; other oilseeds; and peanuts. 

This part specifies how and when 

producers on a farm may make a onetime election on a farm to obtain either 

ARC or PLC (and if ARC, whether to 

receive ARC payments based on county 

coverage applicable on a covered 

commodity-by-commodity basis; or 

individual coverage applicable to all the 

covered commodities on a farm). 

(b) This part specifies how upland 

cotton base acres that were in existence 

for 2013, as adjusted, are determined for 

the purpose of making CTAP payments 

in 2014 and 2015 to eligible producers. 

(c) Payments otherwise provided for 

in this part are subject to changes made 

by law in rates, conditions, and 

eligibility notwithstanding any contract 

or application made under this part. 

However, any such modification may, as 

determined by CCC, allow producers the 

opportunity to withdraw their CTAP 

application or the ARC or PLC contract. 

(d) If any refund is due to CCC under 

this part, interest will be due from the 

date of the CCC disbursement except as 

determined by CCC. The provisions of 

this section will apply notwithstanding 

any other provision of this or any other 

part. In order to receive payment under 

this part a participant is required to 


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comply with the regulations in this part 

and any additional requirements 

imposed by the CTAP application or 

ARC or PLC contract. 

(e) For ARC and PLC, assistance 

under this part will be based on the 

administrative county of the farm and 

for CTAP, assistance under this part will 

be based on the physical location of the 

farm, as specified in part 718 of this 

title. 

§ 1412.2 Administration. 

(a) ARC, PLC, and CTAP are 

administered under the general 

supervision of the Executive VicePresident, CCC, and will be carried out 

by FSA State and county committees 

(State and county committees). 

(b) State and county committees, and 

representatives and their employees, do 

not have authority to modify or waive 

any of the provisions of the regulations 

of this part. 

(c) The State committee may take any 

action required by the regulations of this 

part that the county committee has not 

taken. The State committee will also: 

(1) Correct, or require a county 

committee to correct, any action taken 

by such county committee that is not in 

accordance with the regulations of this 

part; or 

(2) Require a county committee to 

withhold taking any action that is not in 

accordance with this part. 

(d) No provision or delegation to a 

State or county committee will preclude 

the Executive Vice President, or the 

Deputy Administrator, or a designee, 

from determining any question arising 

under the program or from reversing or 

modifying any determination made by a 

State or county committee. 

(e) The Deputy Administrator has the 

authority to permit State and county 

committees to waive or modify 

deadlines (except deadlines specified in 

a law) and other requirements not 

specified by law, in cases where 

lateness or failure to meet such other 

requirements does not adversely affect 

operation of the program. 

(1) Producers and participants have 

no right to a decision requesting an 

exception for a decision about waiving 

or modifying deadlines. The Deputy 

Administrator’s refusal to consider 

waiver or modification cases or 

circumstances or a decision not to 

exercise this discretionary authority 

under this section will not be 

considered an adverse decision and is 

not appealable. 

(2) CCC’s decision not to consider a 

case under this section will not 

constitute a failure to act under any law 

or regulation because participants have 

no right to a waiver or modification 

under this section, they likewise have 

no right to a decision on a request for 

waiver or modification. 

(f) A representative of CCC may 

execute the FSA application form titled 

‘‘Cotton Transition Assistance Program 

(CTAP) Application’’ only under the 

terms and conditions determined and 

announced by the Executive Vice 

President, CCC. Any application or 

contract that is not executed in 

accordance with such terms and 

conditions, including any alleged 

execution prior to or after the dates 

authorized by the Executive Vice 

President, CCC, is null and void and 

will not be considered to be an 

application or contract between CCC 

and the operator or any other producer 

on the farm. 

§ 1412.3 Definitions. 

The definitions in this section are 

applicable for all purposes of 

administering this part. The terms 

defined in part 718 of this title and part 

1400 of this chapter are also applicable, 

except where those definitions conflict 

with the definitions specified in this 

section. Where there is a conflict or a 

difference in definitions specified in 

this part and part 718 of this title or part 

1400 of this chapter, the regulations in 

this part will apply. 

2014 Farm Bill means the Agricultural 

Act of 2014 (Pub. L. 113–79). 

Agriculture risk coverage (or ARC) 

means coverage provided under 

subparts D and E of this part. 

Application means the CCC-approved 

form used by producers to apply for 

CTAP under subpart H of this part. 

ARC–CO means the Agriculture Risk 

Coverage elected with the county 

option. 

ARC–IC means the Agriculture Risk 

Coverage elected with the individual 

option. 

Base acres means, with respect to a 

covered commodity on a farm, the 

number of acres in effect on September 

30, 2013, as defined in the regulations 

in 7 CFR part 1412, subpart B that were 

in effect on that date, subject to any 

reallocation, adjustment, or reduction. 

Unless specifically stated otherwise, the 

term ‘‘base acres’’ includes any generic 

base acres when P&CP to a covered 

commodity or are eligible subsequently 

planted crop acreage. 

Considered planted means acreage 

approved as prevented planted in 

accordance with part 718 of this title. 

Contract or application means the 

CCC-approved forms and appendixes 

that constitute the CTAP application or 

agreement for participation in ARC or 

PLC Program, as applicable. 

Contract period means the 

compliance period specified for the 

contract or application for the particular 

program year, as designated on the 

contract or application. References to 

the ‘‘contract’’ or ‘‘application’’ period 

refer to the compliance period for the 

particular program year. The 

compliance period for the each program 

year is October 1 through September 30. 

For example, for the 2014 contract (and 

therefore for the 2014 program), the 

period that begins on October 1, 2013 

and ends on September 30, 2014. 

Contract year or program year means 

the particular year of the particular 

contract based on the compliance period 

for the contract or application. The 

compliance year will run from October 

1 to the following September 30 and 

will have the same name as the 

corresponding fiscal year. For example, 

the 2014 contract or program year will 

be October 1, 2013, through September 

30, 2014, and that year will also be 

considered the 2014 crop year. The 

same references will apply to all other 

years. 

County coverage means agriculture 

risk coverage (ARC–CO) elected under 

subpart D of this part with the county 

option. 

Covered commodity means wheat, 

oats, and barley (including wheat, oats, 

and barley used for haying and grazing), 

corn, grain sorghum, long grain rice, 

medium grain rice, pulse crops, 

soybeans, other oilseeds, and peanuts. 

Crop year means the relevant contract 

or application year. For example, the 

2014 crop year is the year that runs from 

October 1, 2013, through September 30, 

2014, and references to payments for 

that year refer to payments made under 

contracts or applications with the 

compliance year that runs during those 

dates. 

Deputy Administrator means the 

Deputy Administrator for Farm 

Programs, FSA, or a designee. 

Developed means: 

(1) Land has been approved by the 

local government for uses other than 

commercial agricultural uses; and 

(2) Construction activity has begun to 

install any aspect of the development, 

for example utilities or roadways. 

Direct payment yield for upland 

cotton means the farm’s upland cotton 

yield established as specified in the 

regulations for 7 CFR part 1412 that 

were in effect as of September 30, 2013. 

Double-cropping means for covered 

commodities, notwithstanding the 

meaning in subparts D and E of this part 

for fruits and vegetables, the planting of 

a covered commodity for harvest in a 

crop year, in cycle with another covered 

commodity on the same acres for 


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harvest in the same crop year in 

counties that have been determined to 

be areas where there is determined to be 

substantial, successful, and long-term 

double cropping of the crop and where 

the producer has followed customary 

production techniques and planting 

deadlines as determined by CCC (that is, 

using techniques and deadlines used by 

the majority of farmers in the region to 

double crop the particular crops 

involved). In a county determined 

capable of supporting such doublecropping of the covered commodities, as 

determined by CCC, both an initial crop 

and a subsequent crop will be 

considered planted or prevented 

planted acres for the purpose of this 

part. Notwithstanding any of the 

provisions of 7 CFR part 718, in those 

instances where the subsequently 

planted or approved prevented planted 

covered commodity cannot be 

recognized as double-cropped acreage 

under this definition, the subsequently 

planted crop acreage will not be 

considered planted or prevented 

planted. 

Dry peas means Austrian, wrinkled 

seed, yellow, Umatilla, and green peas, 

excluding peas grown for the fresh, 

canning, or frozen market. 

Eligible subsequently planted crop 

acreage means planted acres of a 

covered commodity that are a 

replacement crop to any crop other than 

a covered commodity. Eligible 

subsequently planted crop acreage is 

included as payment acres if the crop 

acreage is planted to a covered 

commodity as a replacement crop after 

the failure or prevented planting of any 

crop other than a covered commodity. 

Eligible subsequently planted crop 

acreage is used to determine payment 

acres and attribution of generic base 

acres under this part. 

Extra long staple cotton means cotton 

that is other than upland cotton and 

both the following: 

(1) Produced from pure strain 

varieties of the Barbadense species or 

any hybrid of the species, or other 

similar types of extra long staple cotton, 

designated by the Secretary, having 

characteristics needed for various end 

uses for which United States upland 

cotton is not suitable and grown in 

irrigated cotton-growing regions of the 

United States designated by the 

Secretary or other areas designated by 

the Secretary as suitable for the 

production of the varieties or types; and 

(2) Ginned on a roller-type gin or, if 

authorized by the Secretary, ginned on 

another type of gin for experimental 

purposes. 

Fiscal year means the year running 

from October 1 to the following 

September 30 and will be designated by 

the same calendar year in which it ends. 

For example, the 2014 fiscal year begins 

on October 1, 2013 and ends on 

September 30, 2014. 

Generic base acres means the number 

of base acres for upland cotton in effect 

on September 30, 2013, as defined in 

the regulations in 7 CFR part 1412, 

subpart B that were in effect on that 

date, subject to any adjustment or 

reduction under this part. Generic base 

acres are always the same amount as 

upland cotton base acres. Any 

adjustment in generic base acres on a 

farm will necessarily result in an 

adjustment in upland cotton base acres 

on the farm. 

Harvested means the producer has 

removed the crop from the field by 

hand, mechanically, or by grazing of 

livestock. The crop is considered 

harvested once it is removed from the 

field and placed in or on a truck or other 

conveyance or is consumed by livestock 

through the act of grazing. Crops 

normally placed in a truck or other 

conveyance and taken off the crop 

acreage, such as hay, are considered 

harvested when in the bale, whether 

removed from the field or not. 

Individual coverage means ARC 

(ARC–IC) elected under subpart D of 

this part with the individual option. 

Initial crop means acreage of a 

covered commodity or cotton planted or 

approved as prevented planted for 

harvest as peanuts, grain, or lint. The 

initial crop includes reseeded or 

replanted crop acreage. 

Medium grain rice means medium 

grain rice and includes short grain rice 

and temperate japonica rice. 

Other oilseed means a crop of 

sunflower seed, rapeseed, canola, 

safflower, flaxseed, mustard seed, 

crambe, sesame seed, or any oilseed 

designated by the Secretary. 

Payment acres mean: 

(1) For the purpose of ARC–CO and 

PLC, subject to planting flexibility 

provisions as specified § 1412.46, the 

payment acres for each covered 

commodity on a farm will be equal to 

85 percent of the base acres for the 

covered commodity on the farm. 

(2) For the purpose of ARC–IC, subject 

to planting flexibility provisions as 

specified in § 1412.46, the payment 

acres for a farm will be equal to 65 

percent of the base acres for all of the 

covered commodities on the farm. 

(3) For the purpose of CTAP under 

subpart H of this part, the payment acres 

for a farm are the base acres of upland 

cotton in effect on a farm on September 

30, 2013, subject to any adjustment or 

reduction under this part. 

Payment yield means for a farm for— 

(1) A covered commodity, the yield 

established under subpart C of this part; 

and 

(2) Upland cotton, the direct payment 

yield for upland cotton for the farm as 

of September 30, 2013. 

Planted and considered planted 

(P&CP) means, with respect to an 

acreage amount, the sum of the planted 

and prevented planted acres approved 

by the FSA county committee on the 

farm for a crop. For the purposes of this 

part, P&CP is limited to initially planted 

or prevented planted crop acreage, 

except for crops planted in an approved 

double-cropping sequence. Eligible 

subsequently planted crop acreage, 

replacement crop acreage, and 

subsequently planted crop acreage are 

each not included as P&CP. 

Price Loss Coverage (or PLC) means 

coverage provided under subpart D of 

this part. 

Pulse crop means dry peas, lentils, 

small chickpeas, and large chickpeas. 

Reference price means, with respect 

to a covered commodity for a crop year, 

the following for: 

(1) Wheat, $5.50 per bushel; 

(2) Corn, $3.70 per bushel; 

(3) Grain sorghum, $3.95 per bushel; 

(4) Barley, $4.95 per bushel; 

(5) Oats, $2.40 per bushel; 

(6) Long grain rice, $14.00 per 

hundredweight; 

(7) Medium grain rice, $14.00 per 

hundredweight; 

(8) Soybeans, $8.40 per bushel; 

(9) Other oilseeds, $20.15 per 

hundredweight; 

(10) Peanuts, $535.00 per ton; 

(11) Dry peas, $11.00 per 

hundredweight; 

(12) Lentils, $19.97 per 

hundredweight; 

(13) Small chickpeas, $19.04 per 

hundredweight; and 

(14) Large chickpeas, $21.54 per 

hundredweight. 

Replacement crop means the planting 

or approved prevented planting of any 

crop for harvest following the failure of 

planted crop acreage or prevented 

planted acreage of a covered commodity 

not in a recognized double-cropping 

sequence (as specified in this section). 

Replacement crops cannot generate 

payments under this part unless the 

replacement crop acreage meets the 

definition of eligible subsequently 

planted crop acreage as specified in this 

section. 

Reseeded or replanted crop means the 

second planting of a covered commodity 

on the same acreage after the first 

planting of that same crop has failed. 

STAX means Stacked Income 

Protection Plan, as specified in 7 U.S.C. 

1508b. A list of counties having farms 


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with upland cotton base acres for which 

STAX will not be made available in 

2015 will be available upon request 

from FSA. 

Subsequently planted crop acreage 

means planted acres of a covered 

commodity following an initial P&CP 

covered commodity. Subsequently 

planted crop acreage can be used for 

base reallocation for ARC and PLC 

under subpart B. 

Supportive and necessary contractual 

documents mean those documents 

including, but not limited to, those 

items substantiating the ARC or PLC 

contract or CTAP application such as 

leases, deeds, signatures of contract 

participants, owners, operators, and 

other tenant signatures, as determined 

by CCC. 

Temperate japonica rice means rice 

that is grown in high altitudes or 

temperate regions of high latitudes with 

cooler climate conditions, in the 

Western United States, as determined by 

CCC, for the purpose of the— 

(1) Reallocation of base acres under 

subpart B of this part; 

(2) Establishment of a reference price 

of 115 percent times the established 

reference price of medium grain rice 

and determining temperate japonica 

rice’s own effective price; and 

(3) Determination of the actual crop 

revenue and ARC guarantee under 

subparts D and E of this part. 

Upland cotton means cotton that is 

produced in the United States from 

other than pure strain varieties of the 

Barbadense species, any hybrid thereof, 

or any other variety of cotton in which 

one or more of these varieties 

predominate. In other words, it means 

any cotton that is not extra long staple 

cotton. 

§ 1412.4 Appeals. 

A participant may seek 

reconsideration and review of any 

individual program eligibility adverse 

determination made under this part in 

accordance with the appeal regulations 

found at parts 11 and 780 of this title. 

Subpart B—Establishment of Base Acres 

for a Farm for Covered Commodities 

§ 1412.23 Base acres, generic base acres, 

and Conservation Reserve Program. 

(a) Subject to paragraphs (b) and (c) of 

this section, CCC will annually adjust 

the base acres for covered commodities 

and generic base acres with respect to 

the farm by the number of production 

flexibility contract acres or base acres 

protected by a Conservation Reserve 

Program (CRP) contract that expired, 

was voluntarily terminated, or was early 

released. 

(b) The total base acres and generic 

base acres on a farm cannot exceed the 

limitation specified in § 1412.24. 

(c) Adjustments to (not reallocation 

of) base acres and generic base acres on 

a farm in accordance with this section 

are to be completed by no later than 

August 1 or other date as determined 

and announced by the CRP contract 

expired or was voluntarily terminated. 

(d) For the fiscal year in which an 

adjustment to base acres under this 

section is made, the producer of the 

farm may elect to receive ARC or PLC 

payments, in accordance with any ARC 

and PLC election made under section 

1115 of the 2014 Farm Bill with respect 

to the base acres added to the farm 

under this section, or a prorated 

payment under the CRP contract, but 

not both. For any farm that had all of its 

base acres reduced for participation in 

CRP, if the farm had no base acres or 

election in effect before an adjustment is 

made to put base acres of a covered 

commodity back on the farm, the 

owners of that farm will have an 

opportunity to reallocate base acres and 

the producers will have an opportunity 

to elect ARC or PLC within 30 days of 

being notified of the establishment of 

base acres on that farm before producers 

enroll base acres on that farm. 

§ 1412.24 Limitation of total base acres 

and generic base acres on a farm. 

(a) The sum of the following cannot 

exceed the total cropland acreage on the 

farm, plus approved double-cropped 

acreage for the farm: 

(1) The sum of all base acres and 

generic base acres (which are equal to 

upland cotton base acres used for CTAP) 

established for the farm in accordance 

with this part; plus 

(2) Any cropland acreage on the farm 

enrolled in a CRP contract in 

accordance with part 1410 of this 

chapter; plus 

(3) Any cropland acreage on the farm 

enrolled in a wetland reserve program 

contract in accordance with part 1467 of 

this chapter; plus 

(4) Any other acreage on the farm 

enrolled in a Federal conservation 

program for which payments are made 

in exchange for not producing an 

agricultural commodity on the acreage. 

(b) The Deputy Administrator will 

give the owner of the farm the 

opportunity to select the base acres or 

generic base acres (which are equal to 

upland cotton base acres used for CTAP) 

against which any reduction required in 

this section will be made. Absent the 

owner selecting the base acre or generic 

base acre for reduction, CCC will apply 

a pro-rata reduction against the base 

acres or generic base acres before 

computing and issuing any payments 

for the program year when a reduction 

becomes necessary. If a reduction is 

made to generic base acres on a farm, a 

corresponding equal reduction is made 

to upland cotton base acres. 

(c) In applying paragraph (a) of this 

section, CCC will take into account the 

practice of double cropping on a farm, 

as determined by CCC. 

(d) For base acre reductions: 

(1) Subject to the limitation in 

paragraph (d)(2) of this section, a 

permanent reduction of all or a portion 

of a farm’s base acres, including generic 

base acres (and the equal amount of 

upland cotton base acres), will be 

allowed when all owners of the farm 

execute and submit a written request for 

such reduction, on a CCC-approved 

standard, uniform form designated by 

CCC, to the FSA county office where the 

records for the farm are administratively 

maintained. 

(2) A permanent reduction of all or a 

portion of a farm’s base acres to negate 

or reduce a program violation is not 

allowed. 

(e) When base acres on a farm are 

converted to a non-agricultural 

commercial or industrial use, the total 

base acres on the farm will be reduced 

accordingly regardless of the submission 

of a request for such reduction. 

(f) The base acres and generic base 

acres (resulting in an equal amount of 

upland cotton base acres) on a farm will 

be proportionately reduced when it is 

determined that the land has been 

subdivided and developed for multiple 

residential units or other nonfarming 

uses if, in the judgment of the county 

committee, the size of the tracts and the 

density of the subdivision is such that 

the land is unlikely to return to the 

previous agricultural use, unless either 

of the following applies: 

(1) The producers on the farm 

demonstrate that the land remains 

devoted to commercial agricultural 

production or is likely to be returned to 

the previous agricultural use and such 

land has not been divided from the farm 

with a farm reconstitution performed 

according to part 718 of this title; or 

(2) A properly constituted or 

reconstituted farm contains sufficient 

land that has not yet been subdivided 

and developed for multiple residential 

units or other nonfarming uses, and the 

producers on the farm demonstrate that 

the land remains devoted to commercial 

agricultural production or is likely to be 

returned to the previous agricultural 

use. 


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Subpart D—ARC and PLC Contract Terms 

and Enrollment Provisions for Covered 

Commodities 

§ 1412.44 Notification of base acres. 

Prior to enrolling the farm in the 2014 

ARC or PLC program, the operator and 

each owner of record of a farm will be 

notified in writing of the number of base 

acres eligible for enrollment in a 

contract, unless such operator or owner 

of record of a farm requests in writing 

not to be furnished with the notice. The 

operator and each owner of record are 

responsible for notifying all other 

producers of a farm of the notice. 

§ 1412.45 Treatment of generic base acres. 

(a) ARC and PLC payments will only 

be made with respect to generic base 

acres P&CP to a covered commodity or 

eligible subsequently planted crop 

acreage for the crop year on a farm. 

(b) Generic base acres on a farm will 

be attributed to a covered commodity as 

follows: 

(1) If a single covered commodity is 

P&CP or eligible subsequently planted 

crop acreage and the total P&CP or 

eligible subsequently planted crop 

acreage exceeds the generic base acres 

on the farm, the generic base acres are 

attributed to that covered commodity in 

an amount equal to the total number of 

generic base acres on the farm. 

(2) If multiple covered commodities 

are P&CP or eligible subsequently 

planted crop acreage and the total 

number of acres P&CP or eligible 

subsequently planted crop acreage to all 

covered commodities on the farm 

exceeds the generic base acres on the 

farm, the generic base acres will be 

attributed to each of the covered 

commodities on the farm on a pro rata 

basis to reflect the ratio of: 

(i) The P&CP and eligible 

subsequently planted crop acreage to a 

covered commodity on the farm; to 

(ii) The total P&CP and eligible 

subsequently planted crop acreage to all 

covered commodities on the farm. 

(3) If the total number of P&CP and 

eligible subsequently planted crop 

acreage to all covered commodities on 

the farm does not exceed the generic 

base acres on the farm, the number of 

P&CP and eligible subsequently planted 

crop acreage to a covered commodity is 

attributed to that covered commodity. 

(c) When generic base acres are P&CP 

or eligible subsequently planted crop 

acreage to a covered commodity or 

when P&CP or eligible subsequently 

planted crop acreage to a covered 

commodity is attributed to generic base 

acres, the generic base acres are in 

addition to other base acres on the farm. 

§ 1412.46 Planting flexibility. 

(a) Any crop may be planted and 

harvested on base acres on a farm, 

except as limited in this section. Any 

crop may be planted on cropland in 

excess of the base acres on a farm. 

(b) Base acres may be hayed or grazed 

at any time. 

(c) Except as specified in paragraph 

(d) of this section, the planting or 

harvesting of perennial or harvesting of 

non-perennial fruits, vegetables (except 

mung beans and covered commodities), 

or wild rice, as determined by CCC, will 

result in an acre for acre payment 

reduction when such crop or crops are 

planted and or harvested, as applicable, 

on more than: 

(1) 15 percent of the base acres of a 

farm enrolled in ARC or PLC using 

county coverage; or 

(2) 35 percent of a farm enrolled in 

ARC using individual coverage. 

(d) Notwithstanding the provisions of 

paragraph (c) of this section, perennial 

fruits, vegetables, and wild rice may be 

planted or harvested on base acres of a 

farm and non-perennial fruits, 

vegetables, and wild rice may be 

harvested on base acres of a farm if a 

producer double-crops fruits, 

vegetables, or wild rice with a covered 

commodity in any region described in 

paragraph (e) of this section, in which 

case payment acres will not be reduced 

for the planting or harvesting of the 

fruit, vegetable, or wild rice. 

(e) Double-cropping for purposes of 

this section means planting for harvest 

non-perennial fruits, vegetables, or wild 

rice on the same acres in cycle with a 

planted covered commodity harvested 

for grain in a 12-month period under 

normal growing conditions for the 

region and being able to repeat the same 

cycle in the following 12-month period. 

For purposes of this part, the following 

counties have been determined to be 

regions having a history of doublecropping covered commodities or 

peanuts with fruits, vegetables, or wild 

rice. State committees have established 

the following counties as regions within 

their respective States: 

Alabama 

Baldwin, Barbour, Butler, Chambers, 

Chilton, Clarke, Covington, Cullman, 

Geneva, Greene, Houston, Jackson, 

Jefferson, Lee, Madison, Mobile, 

Montgomery, Randolph, Sumter, 

Talladega, Walker, and Washington. 

Alaska 

None. 

Arizona 

Cochise, Graham, Greenlee, LaPaz, 

Maricopa, Mohave, Pima, Pinal, and 

Yuma. 

Arkansas 

Ashley, Benton, Clay, Craighead, 

Crawford, Crittenden, Cross, 

Faulkner, Franklin, Greene, 

Independence, Jackson, Jefferson, 

Lawrence, Lee, Lincoln, Logan, 

Lonoke, Mississippi, Monroe, 

Phillips, Pulaski, St. Francis, 

Sebastian, Washington, Woodruff, and 

Yell. 

California 

Alameda, Amador, Butte, Colusa, Contra 

Costa, Fresno, Glenn, Imperial, Kern, 

Kings, Madera, Merced, Riverside, 

Sacramento, San Benito, San Joaquin, 

Santa Clara, Siskiyou, Solano, 

Sonoma, Stanislaus, Sutter, Tehama, 

Tulare, Yolo, and Yuba. 

Caribbean Office 

None. 

Colorado 

Otero. 

Connecticut 

None. 

Delaware 

All counties. 

Florida 

All counties except Monroe. 

Georgia 

All counties. 

Hawaii 

None. 

Idaho 

None. 

Illinois 

Bureau, Calhoun, Cass, Clark, Crawford, 

DeKalb, Edgar, Effingham, Gallatin, 

Iroquois, Jersey, Kankakee, Lawrence, 

LaSalle, Lee, Madison, Marion, 

Mason, Monroe, Randolph, St. Clair, 

Tazewell, Union, Vermilion, White, 

and Whiteside. 

Indiana 

Allen, Bartholemew, Daviess, Gibson, 

Jackson, Johnson, Knox, LaGrange, 

LaPorte, Madison, Marion, Martin, 

Miami, Posey, Ripley, Shelby, 

Sullivan, Vandenberg, and Warrick. 

Iowa 

Kossuth, Mitchell, Palo Alto, and 

Winnebago. 


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Kansas 

None. 

Kentucky 

All counties. 

Louisiana 

Avoyelles, Franklin, Grant, Morehouse, 

Rapides, Richland, and West Carroll. 

Maine 

None. 

Maryland 

Anne Arundel, Baltimore, Calvert, 

Caroline, Carroll, Cecil, Charles, 

Dorchester, Harford, Kent, Prince 

George’s, Queen Anne’s, St. Mary’s, 

Somerset, Talbot, Wicomico, and 

Worcester. 

Massachusetts 

None. 

Michigan 

St. Joseph and Kalamazoo. 

Minnesota 

Blue Earth, Brown, Carver, Chippewa, 

Cottonwood, Dakota, Dodge, 

Faribault, Fillmore, Freeborn, 

Goodhue, Houston, Kandiyohi, Le 

Sueur, Martin, McLeod, Meeker, 

Mower, Nicollet, Olmsted, Pope, 

Redwood, Renville, Rice, Scott, 

Sibley, Stearns, Steele, Swift, Waseca, 

Wabasha, Watonwan, and Winona. 

Mississippi 

All counties. 

Missouri 

Barton, Butler, Cape Girardeau, Dade, 

Dunklin, Jasper, Lawrence, 

Mississippi, New Madrid, Newton, 

Pemiscot, Perry, Ripley, Scott, and 

Stoddard. 

Montana 

None. 

Nebraska 

None. 

Nevada 

None. 

New Hampshire 

None. 

New Jersey 

Atlantic, Burlington, Camden, Cape 

May, Cumberland, Gloucester, 

Hunterdon, Mercer, Middlesex, 

Monmouth, Morris, Ocean, Salem, 

Somerset, Sussex, and Warren. 

New Mexico 

Chaves, Curry, Dona Ana, Eddy, 

Hidalgo, Lea, Luna, Quay, Roosevelt, 

San Juan, and Sierra. 

New York 

Cayuga, Columbia, Dutchess, Erie, 

Genesee, Greene, Livingston, 

Madison, Monroe, Niagara, Oneida, 

Onondaga, Ontario, Orange, Orleans, 

Putnam, Rensselaer, Saratoga, 

Schoharie, Seneca, Steuben, Suffolk, 

Tompkins, Ulster, Warren, 

Washington, Wayne, Westchester, 

Wyoming, and Yates. 

North Carolina 

Alamance, Alexander, Alleghany, 

Anson, Ashe, Beaufort, Bertie, Bladen, 

Brunswick, Burke, Cabarrus, 

Caldwell, Camden, Carteret, Caswell, 

Catawba, Chatham, Cherokee, 

Chowan, Clay, Cleveland, Columbus, 

Craven, Cumberland, Currituck, Dare, 

Davidson, Davie, Duplin, Edgecombe, 

Franklin, Gaston, Gates, Graham, 

Granville, Greene, Halifax, Harnett, 

Hertford, Hoke, Hyde, Iredell, 

Johnston, Jones, Lee, Lenoir, Lincoln, 

Macon, Martin, McDowell, 

Mecklenburg, Montgomery, Moore, 

Nash, New Hanover, Northampton, 

Onslow, Pamlico, Pasquotank, 

Pender, Perquimans, Person, Pitt, 

Richmond, Robeson, Rockingham, 

Rutherford, Sampson, Scotland, 

Stanly, Stokes, Tyrell, Union, Vance, 

Wake, Warren, Washington, Wayne, 

Wilkes, Wilson, and Yadkin. 

North Dakota 

None. 

Ohio 

Carroll, Champaign, Clermont, Fulton, 

Henry, Jackson, Lucas, Miami, 

Morgan, Muskingum, Scioto, Stark, 

Tuscarawas, and Vinton. 

Oklahoma 

Adair, Alfalfa, Beckham, Blaine, Bryan, 

Caddo, Canadian, Carter, Cherokee, 

Cleveland, Cotton, Custer, Delaware, 

Dewey, Ellis, Garfield, Garvin, Grady, 

Grant, Greer, Harmon, Haskell, 

Hughes, Jackson, Jefferson, Kay, 

Kingfisher, Kiowa, LeFlore, Logan, 

Love, McClain, McIntosh, Major, 

Marshall, Mayes, Muskogee, Noble, 

Nowata, Okmulgee, Osage, Pawnee, 

Payne, Pittsburg, Pottawatomie, Roger 

Mills, Rogers, Sequoyah, Stephens, 

Tillman, Tulsa, Wagoner, Washita, 

Woods, and Woodward. 

Oregon 

Morrow and Umatilla. 

Pennsylvania 

Adams, Bucks, Centre, Chester, Clinton, 

Columbia, Cumberland, Delaware, 

Erie, Franklin, Indiana, Lancaster, 

Montgomery, Montour, 

Northumberland, Schuylkill, Synder, 

Union, and York. 

Puerto Rico 

None. 

Rhode Island 

None. 

South Carolina 

All counties. 

South Dakota 

None. 

Tennessee 

Bledsoe, Cannon, Chester, Cocke, 

Coffee, Crockett, Dickson, Dyer, 

Fayette, Gibson, Giles, Greene, 

Grundy, Hardeman, Haywood, 

Jefferson, Knox, Lake, Lauderdale, 

Lawrence, Lincoln, Madison, Marion, 

Maury, McNairy, Obion, Overton, 

Pickett, Putnam, Rhea, Robertson, 

Rutherford, Sequatchie, Shelby, 

Sumner, Tipton, Unicoi, VanBuren, 

Warren, Washington, Wayne, White, 

Williamson, and Wilson. 

Texas 

Andrews, Atascosa, Austin, Bailey, 

Bexar, Brazoria, Briscoe, Brooks, 

Cameron, Castro, Chambers, 

Childress, Clay, Cochran, 

Collingsworth, Comanche, Crosby, 

Dallam, Dawson, Deaf Smith, Dickens, 

Dimmit, Donley, Duval, Fannin, 

Floyd, Foard, Frio, Gaines, Hale, Hall, 

Hansford, Hardeman, Hardin, Hartley, 

Haskell, Hemphill, Hidalgo, Hockley, 

Howard, Jefferson, Jim Hogg, Jim 

Wells, Kent, Kinney, Kleberg, Knox, 

Lamb, LaSalle, Liberty, Lubbock, 

Lynn, Martin, Maverick, Medina, 

Midland, Moore, Motley, Nueces, 

Ochiltree, Parmer, Pecos, Randall, 

Reeves, San Patricio, Sherman, Starr, 

Swisher, Terry, Uvalde, Washington, 

Webb, Wheeler, Willacy, Wilson, 

Yoakum, Zapata, and Zavala. 

Utah 

None. 

Vermont 

None. 

Virginia 

Accomack, Albemarle, Alleghany, 

Amelia, Amherst, Appomattox, 

Augusta, Bath, Bedford, Bland, 

Botetourt, Brunswick, Buchanan, 

Buckingham, Campbell, Caroline, 

Carroll, Charles City, Charlotte, 

Chesapeake, Chesterfield, Clarke, 

Craig, Culpeper, Cumberland, 

Dickenson, Dinwiddie, Essex, Fairfax, 

Fauquier, Floyd, Fluvanna, Franklin, 

Frederick, Giles, Gloucester, 

Goochland, Grayson, Greene, 


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Greensville, Halifax, Hanover, 

Henrico, Henry, Highland, Isle of 

Wight, James City, King and Queen, 

King George, King William, Lancaster, 

Lee, Loudoun, Louisa, Lunenburg, 

Madison, Mathews, Mecklenburg, 

Middlesex, Montgomery, Nelson, New 

Kent, Northampton, Northumberland, 

Nottoway, Orange, Page, Patrick, 

Pittsylvania, Powhatan, Prince 

Edward, Prince George, Prince 

William, Pulaski, Rappahannock, 

Richmond, Roanoke, Rockbridge, 

Rockingham, Russell, Scott, 

Shenandoah, Smyth, Southampton, 

Spotsylvania, Stafford, Suffolk, Surry, 

Sussex, Tazewell, Virginia Beach, 

Warren, Washington, Westmoreland, 

Wise, Wythe, and York. 

Washington 

Yakima. 

West Virginia 

None. 

Wisconsin 

Adams, Calumet, Columbia, Dane, 

Dodge, Fond du Lac, Green, Green 

Lake, Iowa, Kenosha, Milwaukee, 

Ozaukee, Portage, Racine, Richland, 

Rock, Sauk, Trempealeau, Walworth, 

Washington, Waukesha, Waushara, 

and Winnebago. 

Wyoming 

None. 

(f) The acreage of any fruit or 

vegetable specified in paragraph (h) of 

this section will first be attributed to 

cropland not having base acres, 

followed by base acres, before applying 

any payment acreage reduction required 

by paragraph (c) of this section. The 

reduction will be attributed to each of 

the covered commodities on the farm 

having payment acres on a pro rata basis 

to reflect the ratio of the payment acres 

of the covered commodity on the farm 

to the total payment acres of all covered 

commodities on the farm. No reductions 

are applicable to CTAP payments as 

specified in subpart H of this part. 

(g) For the purposes of this part, 

fruits, vegetables, and wild rice planted 

on payment acres of a farm under ARC 

or PLC Program contract: 

(1) Will be considered harvested at 

the time of planting, unless the 

producer pays a fee to cover the cost of 

a farm visit, as specified in part 718 of 

this title, to verify that the fruit, 

vegetable, or wild rice has been 

destroyed before harvest, as determined 

by CCC, or 

(2) Will not be considered as planted 

to a fruit, vegetable, or wild rice when 

reported by a producer on the farm with 

an intended use of green manure or 

forage, as determined by CCC, and a fee 

to cover the cost of a farm visit is paid 

by the producer, as specified in part 718 

of this title, to verify that the crop has 

not been harvested. 

(h) Unless otherwise specifically 

included as a covered commodity as 

specified in this part, fruits and 

vegetables include, but are not limited 

to, all nuts except peanuts, certain fruitbearing trees and: Acerola (barbados 

cherry), antidesma, apples, apricots, 

aragula, ariona (chokeberry), artichokes, 

asparagus, atemoya (custard apple), 

avocados, babaco papayas, bananas, 

beans (except soybeans, mung, adzuki, 

faba, and lupin), beets—other than 

sugar, blackberries, blackeye peas, 

blueberries, bok spare choy, 

boysenberries, breadfruit, broccoflower, 

broccolo-cavalo, broccoli, brussel 

sprouts, cabbage, cailang, caimito, 

calabaza, carambola (star fruit), 

calaboose, carob, carrots, cascadeberries, 

cauliflower, celeriac, celery, chayote, 

cherimoyas (sugar apples), canary 

melon, cantaloupes, cardoon, casaba 

melon, cassava, cherries, chinese bitter 

melon, chicory, chinese cabbage, 

chinese mustard, chinese water 

chestnuts, chufes, citron, citron melon, 

coffee, collards, cowpeas, crabapples, 

cranberries, cressie greens, crenshaw 

melons, cucumbers, currants, cushaw, 

daikon, dasheen, dates, dry edible 

beans, dunga, eggplant, elderberries, 

elut, endive, escarole, etou, feijoas, figs, 

gai lien, gailon, galanga, genip, 

gooseberries, grapefruit, grapes, 

guambana, guavas, guy choy, honeydew 

melon, huckleberries, jackfruit, 

jerusalem artichokes, jicama, jojoba, 

kale, kenya, kiwifruit, kohlrabi, 

kumquats, leeks, lemons, lettuce, 

limequats, limes, lobok, loganberries, 

longon, loquats, lotus root, lychee 

(litchi), mandarins, mangos, 

marionberries, mar bub, melongene, 

mesple, mizuna, mongosteen, moqua, 

mulberries, murcotts, mushrooms, 

mustard greens, nectarines, ny Yu, okra, 

olallieberries, olives, onions, opo, 

oranges, papaya, paprika, parsnip, 

passion fruits, peaches, pears, peas, all 

peppers, persimmon, persian melon, 

pimentos, pineapple, pistachios, 

plantain, plumcots, plums, 

pomegranates, potatoes, prunes, 

pummelo, pumpkins, quinces, 

radicchio, radishes, raisins, raisins 

(distilling), rambutan, rape greens, 

rapini, raspberries, recao, rhubarb, 

rutabaga, santa claus melon, salsify, 

saodilla, sapote, savory, scallions, 

shallots, shiso, spinach, squash, 

strawberries, suk gat, swiss chard, sweet 

corn, sweet potatoes, tangelos, 

tangerines, tangos, tangors, taniers, taro 

root, tau chai, teff, tindora, tomatillos, 

tomatoes, turnips, turnip greens, 

watercress, watermelons, white sapote, 

yam, and yam yu choy. 

§ 1412.49 Matters of general applicability. 

(a) The regulations in this part and 

CCC’s interpretation of the regulations 

in this part and internal agency 

directives issued to FSA State and 

county offices are matters of general 

applicability and are not individually 

appealable in administrative appeals 

according to §§ 11.3 and 780.5 of this 

title. Additionally, the regulations in 

this part and any decisions of CCC and 

FSA that are not based on specific facts 

derived from an individual participant’s 

application, contract, or file are not 

appealable under part 11 or part 780 of 

this title. Examples of such decisions 

include how the program is generally 

administered, signup deadlines, 

payment rates, or any other generally 

applicable matter or determination that 

is made by CCC or FSA for use in all 

similarly situated applications. The only 

extent by which the matters referenced 

in this section are reviewable 

administratively in an appeal forum is 

whether FSA’s or CCC’s decision to 

apply the generally applicable matter is 

factually accurate and in conformance 

with the regulations in this part. 

(b) The relief provisions of 7 CFR part 

718 are applicable only to ineligibility 

and noncompliance decisions. The 

relief provisions cannot be used to 

extend a benefit or assistance not 

otherwise available under law or not 

otherwise available to others who have 

satisfied or complied with every 

eligibility or compliance requirement of 

the provisions of this part. Equitable 

relief provisions of part 718 of this title 

cannot be used to obtain a review of 

either these regulations, the 

requirements of this part, the agency’s 

interpretations of this part, or 

compliance provisions of this part. 

Subpart E—Financial Considerations 

Including Sharing Payments 

§ 1412.51 Limitation of payments. 

(a) The provisions of part 1400 of this 

chapter apply to this part. Payments 

under this part cannot exceed the 

amounts specified in part 1400 of this 

chapter. 

(b) No person or legal entity may 

receive, directly or indirectly, more than 

$40,000 in CTAP payments in each of 

the 2014 and 2015 crop years. 

(c) For all covered commodities other 

than peanuts, the total amount of ARC 

and PLC payments received, directly or 

indirectly, by a person or legal entity 

(except a joint venture or general 

partnership) for any crop year together 


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with any marketing loan gains or loan 

deficiency payments for any and all 

commodities other than peanuts under 

subtitle B of title I of the 2014 Farm Bill 

cannot exceed $125,000. 

(d) For peanuts, the total amount of 

payments received, directly or 

indirectly, by a person or legal entity 

(except a joint venture or general 

partnership) for any crop year together 

with any marketing loan gains or loan 

deficiency payments under subtitle B of 

title I of the 2014 Farm Bill for peanuts 

cannot exceed $125,000. 

§ 1412.54 Sharing of payments. 

(a) Each eligible producer on a farm 

may apply for CTAP as specified in 

subpart H of this part and annually 

enroll in an ARC or PLC contract, as 

applicable, and receive assistance and 

payments determined to be fair and 

equitable as agreed to by all the 

producers on the farm and approved by 

the county committee. 

(b) Each person or legal entity leasing 

a farm who applies for CTAP or elects 

and enrolls in ARC or PLC is required 

to provide a copy of their written lease 

to the county committee and, in the 

absence of a written lease, is required to 

provide to the county committee a 

complete written description of the 

terms and conditions of any oral 

agreement or lease. An owner’s or 

landlord’s signature affirming a zero 

share on either an application for 

assistance or contract under this part, as 

applicable, may be accepted as evidence 

of a cash lease between the owner or 

landlord and tenant, as determined by 

CCC. For the purposes of obtaining 

payments under this part, the signature 

or signatures, if entered on the 

application or contract to satisfy the 

requirement of furnishing a written 

lease, are required to be provided by the 

application or enrollment deadline 

established by CCC for the assistance or 

payment. 

(c) When land on which base acres is 

leased on a share basis, neither the 

landlord nor the tenant is eligible to 

receive 100 percent of the CTAP 

payment or ARC or PLC contract 

payment for the farm. 

(d) CCC will approve an ARC or PLC 

contract for enrollment and approve the 

division of payment when CCC is 

satisfied and determines that all of the 

following apply: 

(1) The landlords, tenants, and 

sharecroppers sign the contract and 

agree to the payment shares shown on 

the contract; 

(2) The interests of tenants and 

sharecroppers are being protected; and 

(3) The payment shares shown on the 

application or contract do not 

circumvent either the provisions of this 

part or the provisions of part 1400 of 

this chapter. 

(4) If any civil dispute between 

persons, legal entities, or members of 

legal entities not involving CCC is 

known or suspected to exist that CCC 

believes might impact the eligibility of 

any person or legal entity or 

administration of ARC, PLC, or CTAP 

under this part, the Deputy 

Administrator on CCC’s behalf can elect 

to withhold making any determination 

on an application or contract until such 

time as the Deputy Administrator and 

CCC are satisfied that the dispute is 

resolved or no longer has any bearing on 

either the administration of ARC, PLC, 

or CTAP under this part or any eligible 

producer or potential eligible producer. 

A decision withheld under to this 

paragraph will not be construed to be a 

decision or adverse decision under any 

law or regulation nor will it be 

construed to be a failure of FSA or CCC 

to act under any law or regulation. 

(e) A lease will be considered to be a 

cash lease if the lease provides for only 

a guaranteed cash payment for a 

specified amount, or a fixed quantity of 

the crop (for example, pounds, or 

bushels per acre). 

(1) If a lease contains provisions that 

require the payment of rent on the basis 

of the amount of crop produced or the 

proceeds derived from the crop, or the 

interest such producer would have had 

if the crop had been produced, or 

combination thereof, the agreement will 

be considered to be a share lease. 

(2) If a lease provides for a guaranteed 

amount and a share of the crop or crop 

proceeds, the agreement will be 

considered a cash lease. 

(3) If the lease is a cash lease, the 

landlord is not eligible for assistance or 

payments under this part. The leasing of 

grazing or haying privileges is not 

considered cash leasing. 

(f) Shares of P&CP or eligible 

subsequently planted crop acreage of 

covered commodities on generic base 

acres will be determined based on the 

attribution in § 1412.45 and shares 

recorded on the report of acreage filed 

in accordance with § 1412.66. Shares of 

PLC and ARC–CO will be determined 

based on the shares entered on the 

contract. Shares of ARC–IC payments 

will be determined based on the shares 

recorded on the report of acreage filed 

as specified in § 1412.66. Further, each 

eligible producer having a share of 

P&CP or eligible subsequently planted 

crop acreage of covered commodities on 

a farm enrolled under an ARC or PLC 

Program contract has to do both of the 

following to be eligible for their share of 

a payment: 

(1) Unless otherwise already enrolled 

on the ARC or PLC Program contract, 

sign the ARC or PLC Program contract 

during the contract period; and 

(2) Have the producer’s share 

recorded on the report of acreage filed 

as required by part 718 of this title and 

§ 1412.66 of this part. 

(g) In a case where a producer has 

failed to sign an ARC or PLC Program 

contract by the signup deadline or 

contract period established for 

enrollment and participation for the 

producer’s reported share of P&CP acres 

or eligible subsequently planted crop 

acreage of covered commodities on a 

farm enrolled as specified in this part, 

that producer’s share will not receive 

any consideration for payment and will 

not generate any payment to the 

producer or to any other producer on 

the farm. 

(h) CCC’s approval of a CTAP 

application or ARC or PLC contract or 

shares under this part based on the 

representations of persons or legal 

entities signing the CTAP application, 

or ARC or PLC contract, or acreage 

report in no way implies or will be 

construed as CCC’s determination that 

the representations or assertions made 

by persons or legal entities signing the 

CTAP application, or ARC or PLC 

contract, or acreage report are correct or 

are approved as legitimate. Any and all 

assertions and representations of a 

person, persons, legal entity, or legal 

entities signing forms, applications, or 

contracts incidental to program 

participation in this part are always 

subject to review and scrutiny or spot 

check by CCC. CCC can at any time 

demand documentation to substantiate 

any representation made by any 

program participant under this part and 

recover unearned amounts that are 

determined to have been paid based on 

such erroneous representation. 

§ 1412.55 Provisions relating to tenants 

and sharecroppers. 

(a) No payment or assistance 

authorized under this part will be made 

by CCC if: 

(1) The landlord or operator has 

adopted a scheme or device for the 

purpose of depriving any tenant or 

sharecropper of the payments to which 

such person would otherwise be 

entitled under ARC, PLC, or CTAP. If 

any of such conditions occur or are 

discovered after payments have been 

made, all or any such part of the 

payments as the State committee may 

determine are required to be refunded to 

CCC; or 

(2) The landlord terminated a lease in 

violation of State law as determined by 

a State court. 


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(b) [Reserved] 

Subpart F—Violations and Compliance 

Provisions 

§ 1412.61 Contract violations. 

Violations of contract or application 

requirements will result in the 

termination or cancellation of the ARC 

or PLC contract or CTAP application, as 

applicable. Upon such termination or 

cancellation, all producers that signed 

the contract or application forfeit all 

rights to receive payments for the ARC 

or PLC contract or CTAP application 

and are required to refund all payments 

received, plus interest as specified in 

§ 1412.1(d) of this part, as determined in 

accordance with part 1403 of this 

chapter. 

§ 1412.63 Contract or application liability. 

All producers who signed an ARC or 

PLC Program contract or CTAP 

application made according to this part 

are jointly and severally liable for 

contract or application violations and 

resulting repayments and penalties. 

§ 1412.64 Inaccurate representation, 

misrepresentation, and scheme or device. 

(a) Producers are required to 

accurately report and certify 

information provided to CCC for ARC, 

PLC, and CTAP. Any form containing 

the signature of a person or legal entity 

that contains a preprinted certification 

statement on the form will be construed 

to be a representation and certification 

of and from the person or legal entity 

signing the form regardless of whether 

or not the person or legal entity 

personally made the entry or entries on 

the form. Errors in reporting may impact 

eligibility or extent of eligibility. 

Payments under this part will be based 

on the most correct information 

available. CCC’s issuing payments based 

on the face of a contract or application 

does not signify CCC’s approval of the 

representations made by participants. 

Producers are responsible for refunding, 

with interest as specified in § 1412.1(d) 

of this part, any program benefits that 

were paid based on incorrect program 

information. 

(b) For those cases in which FSA 

determines that an inaccurate 

representation or certification is due to 

a misrepresentation, scheme, or device, 

the person or legal entity or members of 

the legal entity will be ineligible to 

receive ARC, PLC, or CTAP payments 

and will have the person, legal entity’s 

or member’s interest in all contracts or 

applications terminated if it is 

determined that such person, legal 

entity, or member of the legal entity has 

done any of the following: 

(1) Adopted any scheme or device 

that tends to defeat the purpose of this 

part; 

(2) Made any fraudulent 

representation; 

(3) Misrepresented any fact affecting 

an ARC or PLC Program contract, CTAP 

application, or determination made 

under part 1400 of this chapter; or 

(4) Violated or been determined 

ineligible under § 1400.5 of this chapter. 

(c) Any remedies taken by FSA or 

CCC as specified in this section will be 

in addition to any other civil or other 

remedies that may be available, 

including, but not limited to, those 

provided in part 1400 of this chapter. 

§ 1412.65 Offsets and assignments. 

(a) Except as provided in paragraph 

(b) of this section, any payment or 

portion thereof to any person will be 

made without regard to questions of title 

under State law and without regard to 

any claim or lien against the crop, or 

proceeds thereof, in favor of the owner 

or any other creditor except agencies of 

the U.S. Government. The regulations 

governing offsets and withholdings in 

part 1403 of this chapter apply to 

contract payments. 

(b) Any participant entitled to any 

payment may assign any payments in 

accordance with regulations governing 

the assignment of payments in part 1404 

of this chapter. 

§ 1412.66 Acreage and production reports, 

prevented planting, and notices of loss. 

(a) An accurate report of all cropland 

acreage on the farm is required for ARC, 

PLC, and CTAP. How to submit the 

acreage report is specified in part 718 of 

this title. 

(b) Prevented planting acreage credit 

will only be available to acreage that 

CCC determines was prevented from 

being planted due to an eligible cause of 

loss. Acreage ineligible for prevented 

planted credit includes acreage not 

planted due to a management decision. 

Prevented planting acreage credit is 

subject to the provisions of part 718 of 

this title. 

§ 1412.67 Compliance with highly erodible 

land and wetland conservation provisions. 

The provisions of part 12 of this title 

apply to this part. 

§ 1412.68 Controlled substance violations. 

The provisions of part 718 of this title 

apply to this part. 

§ 1412.69 Control of noxious weeds. 

CTAP participants and enrolled ARC 

and PLC contract participants agree to 

effectively control noxious weeds and 

otherwise maintain the land on the farm 

in accordance with sound agricultural 

practices; and use the land on the farm 

for an agricultural or conserving use, 

and not for a nonagricultural 

commercial, industrial, or residential 

use. 

Subpart H—CTAP 

§ 1412.81 Administration. 

(a) The provisions of this part apply 

to this subpart, except for provisions 

that apply specifically to ARC and PLC 

only, for example, the yield and 

planting flexibility provisions apply 

specifically to ARC and PLC. To the 

extent that there is a conflict with the 

provisions of other subparts of this part 

and this subpart, the provisions of this 

subpart apply to CTAP. 

(b) CTAP payments as specified in 

this subpart will be made available for: 

(1) The 2014 crop year to eligible 

producers on farms in all counties; and 

(2) The 2015 crop year to eligible 

producers on farms only in counties 

where STAX is not available. 

§ 1412.82 Eligibility and CTAP application. 

(a) Eligibility. In addition to any 

general eligibility provisions in this 

part, to be eligible for CTAP the 

following conditions are required: 

(1) The producer is a person or legal 

entity who is actively engaged in 

farming and otherwise eligible for 

payment, as specified in 7 CFR part 

1400; 

(2) The producer is on a farm that has 

cotton base acres that were in existence 

as of September 30, 2013, as adjusted; 

and 

(3) The producer has an interest in the 

upland cotton base acres on the farm. 

(b) Producer’s share interest. A 

producer’s share interest in cropland on 

a farm must be equal to or greater than 

that producer’s share interest in cotton 

base acres on the farm for that crop year, 

as reported on that farm’s acreage 

report. 

(c) Application. To apply, submit the 

application and supportive and 

necessary contractual documents to the 

FSA county office: 

(1) For 2014 CTAP by October 7, 

2014; and 

(2) For 2015 CTAP, by July 31, 2015. 

§ 1412.83 Sharing of CTAP payments. 

(a) Each eligible producer on a farm 

may apply for and receive CTAP 

payments determined to be fair and 

equitable as agreed to by all producers 

on the farm and as approved by the 

county committee. 

(b) The provisions of § 1412.54 

regarding the classification of leases 

apply to CTAP. 

(c) Shares of CTAP payments will be 

determined based on shares recorded on 


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46348 Federal Register / Vol. 79, No. 153 / Friday, August 8, 2014 / Rules and Regulations 

the application for CTAP payments for 

the particular program year. The 

provisions of § 1412.54 apply to shares 

of CTAP payments. 

§ 1412.84 Impact of CTAP application on 

ARC or PLC. 

(a) Applications for CTAP do not 

establish eligibility for ARC or PLC. 

Interested producers are required to file 

documents that are specifically required 

for CTAP as specified on the CTAP 

application. An application for CTAP 

will not be considered an intent to 

participate in ARC or PLC and, 

conversely, an election or enrollment in 

ARC or PLC will not establish eligibility 

for CTAP. 

(b) [Reserved] 

§ 1412.86 CTAP payments. 

(a) In the case of producers on a farm 

who apply for CTAP as specified in this 

part, and where all other eligibility 

provisions have been satisfied, CCC will 

make CTAP payments available to the 

producers on a farm’s application as 

specified in this subpart. 

(b) CTAP payments for upland cotton 

producers on farms with eligible upland 

cotton base acres as specified in 

§ 1412.82(a) are equal to: 

(1) For 2014, the product of 

multiplying 60 percent of the farm’s 

upland cotton base acres, times the 

farm’s direct payment yield for upland 

cotton, times $0.09, times the producer’s 

share on the approved application; or 

(2) Where applicable for 2015 

according to this part and subpart, the 

product of multiplying 36.5 percent of 

the farm’s upland cotton base acres, 

times the farm’s direct payment yield 

for upland cotton, times $0.09, times the 

producer’s share on the approved 

application. 

§ 1412.87 Transfer of land and successionin-interest. 

(a) A succession in interest 

application for CTAP is required if there 

has been a change in the producer 

shares of upland cotton base acres in 

§ 1412.82(a) for 2014 or 2015, as 

applicable, due to: 

(1) A sale of land; 

(2) A change of producer, including a 

change in a partnership that increases or 

decreases the number of partners or 

changes who are partners; 

(3) A foreclosure, bankruptcy, or 

involuntary loss of the farm; 

(4) A change in producer shares to 

reflect changes in the producer’s share 

of the upland cotton base acres relevant 

to the originally approved application; 

or 

(5) Any other change determined by 

the Deputy Administrator to be a 

succession that will not adversely affect 

or defeat the purpose of CTAP. 

(b) A succession in interest to the 

CTAP application is not permitted if 

CCC determines that the change: 

(1) Results in a violation of the 

landlord-tenant provisions specified in 

§ 1412.55; or 

(2) Adversely affects or otherwise 

defeats the purpose of CTAP. 

(c) If a producer who is entitled to 

receive CTAP payments dies, becomes 

incompetent, or is otherwise unable to 

receive the payment, CCC will make the 

payment in accordance with part 707 of 

this title. 

(d) A producer or owner of an 

enrolled farm is required to inform the 

county committee of changes in interest 

in base acres of upland cotton as 

specified in § 1412.82(b) on the farm not 

later than: 

(1) August 1 of the fiscal year in 

which the change occurs if the change 

requires a reconstitution be completed 

in accordance with part 718 of this title; 

or 

(2) September 30 of the fiscal year in 

which the change occurs if the change 

does not require a reconstitution be 

completed in accordance with part 718 

of this title. 

(e) In any case in which a CTAP 

payment has previously been made to a 

predecessor, such payment will not be 

paid to the successor, unless such 

payment has been refunded in full by 

the predecessor. 

§ 1412.88 Executed application not in 

conformity with regulations. 

If, after a CTAP application is 

approved by CCC, it is discovered that 

such any information contained in the 

application is not in conformity with 

the provisions of this part, the 

provisions of this part will prevail. 

§ 1412.89 Division of CTAP payments and 

provisions relating to tenants and 

sharecroppers. 

(a) CTAP payments will be divided in 

the manner specified in the applicable 

application approved by CCC. CCC will 

ensure that 2014 or 2015 producers who 

would have a 2014 or 2015 reported 

share interest in cropland on the farm 

specified in § 1412.82(b) receive 

treatment that CCC deems to be 

equitable, as determined by CCC. CCC 

will refrain from acting on an 

application if, as determined by CCC, 

there is a disagreement among any 

person or legal entity applying as to the 

person’s or legal entity’s eligibility to 

apply as a tenant and there is 

insufficient evidence to indicate 

whether the person seeking 

participation as a tenant does or does 

not have a reported share interest in the 

cropland on the farm sufficient to cover 

the claimed share interest in cotton base 

acres of that farm as specified in 

§ 1412.82(b) in 2014 or 2015, as 

applicable. 

(b) CCC may remove an operator or 

tenant from an application under this 

subpart and part when the operator or 

tenant: 

(1) Requests, in writing to be removed 

from the application; 

(2) Files for bankruptcy and the 

trustee or debtor in possession fails to 

affirm the application, to the extent 

permitted by the provisions of 

applicable bankruptcy laws; 

(3) Dies during the 2014 or 2015 

program year and the Administrator of 

the estate fails to succeed to the 

application within a period of time 

determined by the Deputy 

Administrator; or 

(4) Is the subject of an order of a court 

of competent jurisdiction requiring the 

removal from the application under this 

part and subpart of the operator or 

tenant and such order is received by 

FSA, as determined by CCC. 

(c) In addition to the provisions in 

paragraph (b) of this section, tenants are 

required to maintain their tenancy 

throughout the crop year in order to 

remain on an application. Tenants who 

fail to maintain tenancy on the acreage 

under the application, including failure 

to comply with provisions under 

applicable State law, may be removed 

from an application by CCC. CCC will 

assume the tenancy is being maintained 

unless notified otherwise by a 

participant specified in the application. 

Signed on August 4, 2014. 

Juan M. Garcia, 

Executive Vice President, Commodity Credit 

Corporation, and Administrator, Farm 

Service Agency. 

[FR Doc. 2014–18719 Filed 8–6–14; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

19 CFR PART 101 

[CBP Dec. 14–09] 

Technical Amendment to the List of 

CBP Preclearance Offices in Foreign 

Countries: Addition of Abu Dhabi, 

United Arab Emirates 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 


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