Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 9087 

DEPARTMENT OF AGRICULTURE 

Foreign Agricultural Service 

7 CFR Part 1580 

RIN 0551–AA80 

Trade Adjustment Assistance for 

Farmers 

AGENCY: Foreign Agricultural Service, 

USDA. 

ACTION: Interim rule. 

SUMMARY: This interim rule immediately 

implements the Trade Adjustment 

Assistance (TAA) for Farmers program 

as reauthorized by the American 

Recovery and Reinvestment Act of 2009 

(ARRA) and provides for the opening of 

a 30-day comment period. The ARRA 

modified the TAA for Farmers program 

as established by Subtitle C of Title I of 

the Trade Act of 2002, which amended 

the Trade Act of 1974. The rule 

establishes the procedures by which 

producers of raw agricultural 

commodities can petition for 

certification, apply for technical 

assistance, and receive cash benefits for 

the development and implementation of 

approved business adjustment plans. 

The Foreign Agricultural Service (FAS) 

is issuing this interim rule and 

providing for the opening of an interim 

rule comment period to ensure that an 

adequate opportunity to comment is 

provided all interested parties. After 

closure of the interim rule comment 

period and after consideration is 

provided to all comments received 

during the interim rule comment period, 

this rule will be adopted as final with 

or without change by publication in the 

Federal Register. 

DATES: Effective Date: March 1, 2010. 

Comment Date: Comments should be 

received on or before March 31, 2010, to 

be assured consideration. 

ADDRESSES: Comments should be 

mailed or delivered to The Trade 

Adjustment Assistance for Farmers 

Staff, Import Policies and Export 

Reporting Division, Office of Trade 

Programs, Foreign Agricultural Service, 

1400 Independence Avenue, SW., STOP 

1021, Washington, DC 20250–1021. 

Comments can also be e-mailed to 

tradeadjustment@fas.usda.gov. 

Comments received may be inspected 

between 10 a.m. and 4 p.m. in Suite 

100, 1250 Maryland Avenue, SW., 

Washington, DC 20034. 

FOR FURTHER INFORMATION CONTACT: The 

Trade Adjustment Assistance for 

Farmers Staff, Import Policies and 

Export Reporting Division, Office of 

Trade Programs, Foreign Agricultural 

Service, 1400 Independence Avenue, 

SW., STOP 1021; or by e-mail at 

tradeadjustment@fas.usda.gov; or by 

telephone at (202) 720–0638; or by fax 

at (202) 720–8461. 

SUPPLEMENTARY INFORMATION: 

Background 

The American Recovery and 

Reinvestment Act of 2009 (Pub. L. 111– 

5) reauthorizes and modifies the Trade 

Adjustment Assistance (TAA) for 

Farmers program and provides both 

technical assistance and cash benefits to 

producers as established by Subtitle C of 

Title I of the Trade Act of 2002 (Pub. L. 

107–210), which amended the Trade 

Act of 1974. The statute authorizes an 

appropriation of not more than $90 

million per year for the 2009 and 2010 

fiscal years, and $22.5 million for the 

period beginning October 1, 2010 and 

ending December 31, 2010 to carry out 

the program; including the U. S. 

Department of Agriculture (USDA) 

salaries and expenses. 

Under this rule, a group of producers 

may petition the Administrator (FAS) 

for trade adjustment assistance during 

the petition period announced in the 

Federal Register. Petitioners must 

submit data on either the national 

average price, or quantity of production, 

or value of production, or cash receipts 

for the agricultural commodity for the 

most recent marketing year for which 

data are available and the three 

preceding marketing years. FAS will 

first review the petition for 

appropriateness, completeness, and 

timeliness, before publishing a notice in 

the Federal Register that it has been 

accepted. The Economic Research 

Service (ERS) will then conduct a 

market study to verify the decline in the 

national average price, or quantity of 

production, or value of production, or 

cash receipts for the petitioned 

commodity, and to assess possible 

causes, taking into due account any 

special factors which may have affected 

prices, including imports, exports, 

production, changes in consumer 

preferences, weather conditions, 

diseases, and other relevant issues. ERS 

will report its findings to the 

Administrator (FAS) who will review 

and determine whether or not to certify 

the petitioning group’s eligibility for 

trade adjustment assistance. 

Upon certification of the petition, 

producers have 90 days to contact the 

Farm Service Agency (FSA) to apply for 

assistance. As soon as producers are 

found eligible, they may receive; (1) 

Training specifically tailored to their 

needs by the National Institute of Food 

and Agriculture (NIFA); and under 

certain circumstances (2) travel and per 

diem payments to help offset costs 

incurred to attend initial training. 

Depending on the commodity and the 

region, the training package may 

include technical publications in print 

or on-line, group seminars and 

presentations, one-on-one meetings, and 

assistance in the development of 

business adjustment plans. Producers 

who satisfy personal and farm income 

limits; complete the designated 

technical training; and develop and 

implement approved business plans are 

eligible for TAA for Farmers cash 

benefits. During the 36-month period 

following certification of the petition by 

the Administrator (FAS), a producer 

may receive not more than $12,000 for 

the development and implementation of 

business plans approved under the TAA 

for Farmers program. If the funding 

authorized by Congress is insufficient to 

pay 100 percent of all TAA for Farmers 

obligations during the fiscal year, the 

payments provided for business plan 

development and implementation will 

be reduced proportionately, as 

determined by the Administrator (FAS). 

Discussion of Comments 

FAS received sixteen comments on 

the proposed rule (74 FR 42799, August 

25, 2009) during the proposed rule 

comment period which ran from August 

25, 2009 through September 24, 2009. 

The comments focused on the following 

areas: 

Payment Limitations and Adjusted 

Gross Income 

Three respondents expressed concern 

with limitations currently capped at 

$65,000 per year for counter-cyclical 

and Average Crop Revenue Election 

(ACRE) payments, and recommended 

removing these limits for cash payments 

under the TAA for Farmers program. 

Respondents also recommended 

removing the average Adjusted Gross 

Income (AGI) requirement. Section 296 

of the Trade Act of 1974, as amended, 

specifically mandates limitations on 

assistance based on individual countercyclical, ACRE, and average AGI 

requirements as they are defined in the 

Food Security Act of 1985 (the 1985 

Act). Therefore, these regulatory limits 

are being retained. FAS further refined 

these provisions by inserting language 

that clarifies the differences that exist in 

counter-cyclical, ACRE, and average 

AGI requirements for certified petitions 

for the 2008 crop year, and certified 

petitions for subsequent crop years. 

The interim rule incorporates 

revisions to § 1580.301(d)(1) and (2) as 

contained in the proposed rule. The 

revision is for clarity and is consistent 

with the statutory authority for TAA for 

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9088 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 

Farmers. The statute provides that 

producers must demonstrate 

compliance that their average AGI does 

not exceed limits set forth in the 1985 

Act. The average AGI provisions of the 

1985 Act which are administered by the 

Commodity Credit Corporation pursuant 

to the regulations in 7 CFR part 1400 

provide an average AGI limit of $2.5 

million for 2008 crop programs and, for 

2009 and subsequent crops, limits of 

$500,000 for nonfarm average AGI and 

$750,000 farm average AGI. The 

proposed rule addressed the average 

AGI limits for 2009 and subsequent 

crops but did not include any reference 

to the $2.5 million average AGI limit 

applicable to 2008 crops. The interim 

rule at § 1580.301(d)(1) and (2) is 

amended so that the average AGI limits 

are specified for all crop years that 

might be certified for TAA for Farmers. 

For purposes of clarity, the interim 

rule incorporates revisions to the 

payment limitation provisions in 

§ 1580.301(e) as contained in the 

proposed rule. The statutory authority 

for TAA for Farmers provides that the 

total amount of payments made to a 

producer during any crop year may not 

exceed the limitations applicable to 

counter-cyclical payments and ACRE 

payments. For 2008 and 2009 and 

subsequent crop years, the payment 

limitation is $65,000. However, the 

proposed rule was not clear that the 

ACRE limitation is only effective for the 

2009 and subsequent crop commodities. 

The interim rule is therefore amended at 

§ 1580.301(e) to identify the payment 

limitation regulations applicable to the 

2008 crop separately from regulations 

applicable to 2009 and subsequent crop 

commodities. 

Specialty Crops 

One respondent inquired if this 

program is specific to specialty crops 

and if processors are eligible for 

program benefits. The purpose of TAA 

for Farmers is to assist producers of raw 

agricultural commodities, aquaculture 

products, or wild-caught aquatic 

species, adjust to imports by providing 

technical assistance and cash benefits, 

and preparing and implementing 

business adjustment plans. The interim 

rule leaves unchanged the eligibility 

requirements to exclude processors 

since the statute specifically limits 

program benefits to producers of raw 

agricultural commodities. 

Length of Intensive Training 

One respondent suggested that the 

Intensive Technical Assistance offered 

by NIFA be a minimum of 16 hours to 

accommodate the needs that would vary 

from applicant to applicant. The 

respondent felt that training must be at 

least 16 hours so that important 

information is covered that helps 

producers make the required 

adjustments in their agricultural 

businesses. The interim rule leaves the 

Intensive Technical Assistance training 

unchanged to provide the Administrator 

flexibility in developing a series of 

comprehensive courses to meet the 

needs of an individual producer and 

their particular circumstances. 

Further Revisions 

In addition to the changes made in 

response to the comments listed above, 

FAS made additional changes in the 

interim rule by adding three new 

definitions that were not included in the 

proposed rule, namely ‘‘County price 

maintained by the Secretary,’’ ‘‘Deputy 

Administrator,’’ and ‘‘NIFA.’’ 

The definition of ‘‘County price 

maintained by the Secretary’’ was added 

for consistency with the statute that 

provides for use of such price by 

producers to establish their eligibility, 

and to clarify that a maintained price 

might be obtained from any USDA 

agency that records commodity prices 

for the purpose of program 

administration. The proposed rule 

provided for use of prices ‘‘maintained 

by FSA,’’ but the new definition and 

revised rule allows for the use of prices 

maintained by other USDA agencies in 

addition to prices maintained by FSA. 

This definition is consistent with the 

interim rule provision at 

§ 1580.301(c)(3)(ii), under which a 

producer may establish benefit 

eligibility if there has been a decrease in 

the commodity price based on the 

county price, maintained by the 

Secretary on the date the petition was 

filed, compared to the county price for 

the 3 preceding marketing years. 

The interim rule incorporates a 

definition of ‘‘Deputy Administrator,’’ 

and adds a new provision at 

§ 1580.501(e) that provides authority for 

the Deputy Administrator of FSA to 

waive or modify non-statutory deadlines 

or other requirements where lateness to 

meet requirements by applicants does 

not adversely affect the operation of the 

program. This definition and authority 

were included in the interim rule 

governing the previous TAA program 

and are included in this interim rule to 

provide FSA flexibility in administering 

the application and payment processes 

for TAA for Farmers applicants. 

The interim rule incorporates a 

definition of ‘‘NIFA,’’ the National 

Institute of Food and Agriculture which 

was previously known as the 

Cooperative State Research, Education, 

and Extension Service (CSREES). This 

agency was renamed effective October 1, 

2009 and the definition is included for 

clarity because the name change is 

thought not to be commonly known by 

prospective program applicants. The 

definition of CSREES has been deleted 

because the name of the agency has 

been changed. 

Upon further consideration of the 

proposed rule, FAS also made some 

other revisions and clarifications in the 

interim rule. The definition of ‘‘Average 

price received by the producer’’ was 

modified to remove the requirement that 

prices received by the producer be ‘‘not 

weighted by production.’’ This change 

was made to reflect the likelihood that 

prices received by the producer at the 

point of first sale would be established 

based on current production levels, and 

thus would be weighted. 

In §§ 1580.201(d) and 1580.203(a) the 

word ‘‘accepted’’ was changed to ‘‘filed’’ 

to conform to the term usage in the 

statute. 

Clarification was made to 

§ 1580.301(c)(3)(ii) to define the date on 

which a petition is filed as the date on 

which the Administrator (FAS) accepts 

a petition for consideration as published 

in the Federal Register, and add a 

provision that if county prices are not 

available from within USDA, prices 

from other verifiable sources may be 

used. 

Upon further consideration of the 

proposed rule, FAS also decided not to 

conduct hearings with respect to 

appeals of adverse determinations. This 

change was made to minimize the 

potential burden upon the applicant and 

expedite FAS’ review in making a final 

determination. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) designated this rule as 

significant under Executive Order 12866 

and, therefore, it has been reviewed by 

OMB. A cost-benefit assessment for the 

proposed rule has been prepared and is 

available from the information contact 

cited above. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires agencies to prepare an analysis 

of the economic impact of any rule that 

is subject to notice and comment 

rulemaking, unless the agency certifies 

that the rule will not have a significant 

economic impact on a substantial 

number of small entities. The RFA does 

not apply to interim rules. As such, 

neither a regulatory flexibility analysis 

nor a certification is required at this 

time. FAS will prepare and publish its 

regulatory flexibility analysis or 

certification when this rule is finalized. 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 9089 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995, FAS has 

previously received approval from the 

OMB with respect to the information 

collection required to support this 

program. The information collection is 

described below: 

Title: Trade Adjustment Assistance 

for Farmers. 

OMB Control Number: 0551–0040. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988. The provisions 

of this rule would not have preemptive 

effect with respect to any State or local 

laws, regulations, or policies which 

conflict with such provision or which 

otherwise impede their full 

implementation. The rule would not 

have retroactive effect. Before any 

judicial action may be brought regarding 

this rule, all administrative remedies 

must be exhausted. 

National Environmental Policy Act 

The Administrator (FAS) has 

determined that this action will not 

have a significant effect on the quality 

of the human environment. Therefore, 

neither an Environmental Assessment 

nor an Environmental Impact Statement 

is necessary for this rule. 

Executive Orders 12372, 13083 and 

13084, and the Unfunded Mandates 

Reform Act (Pub. L. 104–4) 

These Executive Orders and Public 

Law 104–4 require consultation with 

State and local officials and Indian 

tribal governments. This rule does not 

impose an unfunded mandate or any 

other requirement on State, local or 

tribal governments. Accordingly, these 

programs are not subject to the 

provisions of Executive Order 12372, 

Executive Order 13083, and Executive 

Order 13084, or the Unfunded Mandates 

Reform Act. 

Executive Order 12630 

This Order requires careful evaluation 

of governmental actions that interfere 

with constitutionally protected property 

rights. This rule would not interfere 

with any property rights and, therefore, 

does not need to be evaluated on the 

basis of the criteria outlined in 

Executive Order 12630. 

List of Subjects in 7 CFR Part 1580 

Agricultural commodity imports; 

Reporting and recordkeeping 

requirements; and trade adjustment 

assistance. 

■ For reasons set out in the preamble, 7 

CFR part 1580 is revised to read as 

follows: 

Title 7—Agriculture 

PART 1580—TRADE ADJUSTMENT 

ASSISTANCE FOR FARMERS 

Sec. 

1580.101 General statement. 

1580.102 Definitions. 

1580.201 Petitions for trade adjustment 

assistance. 

1580.202 Hearings, petition reviews, and 

amendments. 

1580.203 Determination of eligibility and 

certification by the Administrator (FAS). 

1580.301 Application for trade adjustment 

assistance. 

1580.302 Technical assistance and services. 

1580.303 Adjustment assistance payments. 

1580.401 Subsequent year petition 

recertification. 

1580.501 Administration. 

1580.502 Maintenance of records, audits, 

and compliance. 

1580.503 Recovery of overpayments. 

1580.504 Debarment, suspension, and 

penalties. 

1580.505 Appeals. 

1580.506 Judicial review. 

1580.602 Paperwork Reduction Act 

assigned number. 

Authority: 19 U.S.C. 2401. 

§ 1580.101 General statement. 

This part provides regulations for the 

Trade Adjustment Assistance (TAA) for 

Farmers program as authorized by the 

Trade Act of 1974, amended by Subtitle 

C of Title I of the Trade Act of 2002 

(Pub. L. 107–210), and re-authorized 

and modified by the American Recovery 

and Reinvestment Act of 2009 (Pub. L. 

111–5). The regulations establish 

procedures by which a group of 

producers of raw agricultural 

commodities or fishermen (jointly 

referred to as ‘‘producers’’) can petition 

for certification of eligibility and 

through which individual producers 

covered by a certified petition can apply 

for technical assistance and cash 

benefits for the development and 

implementation of approved business 

adjustment plans. 

§ 1580.102 Definitions. 

As used in the part, the following 

terms mean: 

Agricultural commodity means any 

commodity in its raw or natural state; 

found in chapters 1, 3, 4, 5, 6, 7, 8, 10, 

12, 14, 23, 24, 41, 51, and 52 of the 

Harmonized Tariff Schedule of the 

United States (HTS). 

Articles like or directly competitive 

generally means products falling under 

the same HTS number used to identify 

the agricultural commodity in the 

petition. A ‘‘like’’ product means 

substantially identical in inherent or 

intrinsic characteristics, and the term 

‘‘directly competitive’’ means articles 

that are substantially equivalent for 

commercial purposes (i.e., adapted to 

the same uses and essentially 

interchangeable therefore). For fishery 

products, competition could be either 

from farm-raised or wild-caught 

products. 

Authorized representative means an 

entity that represents a group of 

agricultural commodity producers or 

fishermen. 

Average price received by the 

producer means the average of the 3 

marketing year prices per unit received 

by the producer from the first level of 

sales for the commodity. 

Cash receipts mean the value of 

commodity marketings during the 

calendar year, irrespective of the year of 

production, as calculated by the 

Economic Research Service of the 

USDA. 

Certification of eligibility means the 

date on which the Administrator (FAS) 

announces in the Federal Register or by 

Department news release, whichever 

comes first, a certification of eligibility 

to apply for trade adjustment assistance. 

Contributed importantly means a 

cause which is important, but not 

necessarily more important than any 

other cause. 

County price maintained by the 

Secretary means a daily price obtained 

from a USDA agency for the commodity 

and producer location, except that 

weekly or monthly prices may be used 

if daily prices are unavailable. 

Department means the U.S. 

Department of Agriculture. 

Deputy Administrator means the 

Deputy Administrator for Farm 

Programs of the Farm Service Agency 

(FSA). 

Family member means an individual 

to whom a producer is related as 

spouse, lineal ancestor, lineal 

descendent, or sibling, including: 

(1) Great grandparent; 

(2) Grandparent; 

(3) Parent; 

(4) Children, including legally 

adopted children; 

(5) Grandchildren; 

(6) Great grandchildren; 

(7) Sibling of the family member in 

the farming operation; and 

(8) Spouse of a person listed in 

paragraphs (1) through (7) of this 

definition. 

Filing period means the dates during 

which petitions may be submitted, as 

published in the Federal Register. 

FSA means the Farm Service Agency 

of the U.S. Department of Agriculture. 

Group means three or more producers 

who are not members of the same 

family. 

Impacted area means one or more 

States of the United States. 

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9090 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 

Marketing year means the marketing 

season or year designated by the 

Administrator (FAS) with respect to an 

agricultural commodity. In the case of 

an agricultural commodity that does not 

have a designated marketing year, a 

calendar year will be used. 

National average price means the 

average price paid to producers for an 

agricultural commodity in a marketing 

year as determined by the National 

Agricultural Statistics Service (NASS) of 

the U.S. Department of Agriculture, or 

the National Marine Fisheries Service of 

the National Oceanic and Atmospheric 

Administration, when available, or 

when unavailable, as determined by the 

Administrator (FAS). 

NIFA means the National Institute of 

Food and Agriculture, the Federal 

agency within the U.S. Department of 

Agriculture which administers the 

Federal agricultural extension programs. 

Producer means a person who shares 

in the risk of producing an agricultural 

commodity and is entitled to a share of 

the commodity for marketing; including 

an operator, a sharecropper, or a person 

who owns or rents the land on which 

the commodity is produced; or a person 

who reports gain or loss from the trade 

or business of fishing on the person’s 

annual Federal income tax return for the 

taxable year that most closely 

corresponds to the marketing year with 

respect to which a petition is filed. 

Raw or natural state means unaltered 

by any process other than cleaning, 

grading, coating, sorting, trimming, 

mixing, conditioning, drying, dehulling, 

shelling, chilling, cooling, blanching, 

irradiating, or fumigating. 

State Cooperative Extension Service 

means an organization established at the 

land-grant college or university under 

the Smith-Lever Act of May 8, 1914, as 

amended (7 U.S.C. 341–349); section 

209(b) of the Act of October 26, 1974, 

as amended (D.C. Code, through section 

31–1719(b)); or section 1444 of the 

National Agricultural Research, 

Extension, and Teaching Policy Act of 

1977, as amended (7 U.S.C. 3221). 

United States means the 50 States of 

the United States, the District of 

Columbia, and Puerto Rico. 

Value of production means the value 

of commodities produced during the 

crop year calculated as production times 

the marketing year average price. This 

may be equal to cash receipts when the 

crop year for the commodity runs from 

January through December. 

§ 1580.201 Petitions for trade adjustment 

assistance. 

(a) A group of producers in the United 

States or its authorized representative 

may file a petition for trade adjustment 

assistance. 

(b) Filings may be written or 

electronic, as provided for by the 

Administrator (FAS), and submitted to 

FAS no later than the last day of the 

filing period announced in the Federal 

Register. Petitions received after this 

date will be returned to the sender. 

(c) Petitions shall include the 

following information. 

(1) Name, business address, phone 

number, and e-mail address (if 

available) of each producer in the group, 

or its authorized representative. The 

petition shall identify a contact person 

for the group. 

(2) The agricultural commodity and 

its Harmonized Tariff Schedule of the 

United States (HTS) number. 

(3) The production area represented 

by the group or its authorized 

representative. The petition shall 

indicate if the group is filing on behalf 

of all producers in the United States, or 

if it is filing solely on behalf of all 

producers in a specifically identified 

impacted area. In the latter case, at least 

one member of the group must reside in 

each State within the impacted area. 

(4) The beginning and ending dates 

for the marketing year upon which the 

petition is based. A petition may be 

filed for only the most recent full 

marketing year for which data are 

available for national average prices, or 

quantity of production, or value of 

production, or cash receipts. 

(5) A justification statement 

explaining why the petitioners should 

be considered eligible for adjustment 

assistance. 

(6) Supporting information justifying 

the basis of the petition, including 

required data for the petitioned 

marketing year and the previous 3 

marketing years. 

(i) Whenever possible, the petitioners 

shall use national average data compiled 

by the National Agricultural Statistics 

Service (NASS) or the National Marine 

Fisheries Service (NMFS), to determine 

national average prices, or quantity of 

production, or value of production, or 

cash receipts. If NASS or NMFS has not 

compiled such data for the commodity, 

the petitioners shall provide alternative 

data for the marketing year under 

review and for the previous 3 marketing 

years, and identify the source of the 

data. In such cases the Administrator 

(FAS) shall determine if the alternative 

data is acceptable. 

(ii) If the petition is filed on behalf of 

producers in a specifically identified 

impacted area, the petitioners shall 

provide the national average prices or 

county prices if applicable, or quantity 

of production or value of production, or 

cash receipts for the petitioned 

commodity in the impacted area for the 

marketing year under review and for the 

previous 3 marketing years, and 

identification of the data source. 

(iii) The Administrator (FAS) may 

request petitioners to provide records to 

support their data. 

(d) Once the petition is received, the 

Administrator (FAS) shall determine if 

it meets the requirements of 

§ 1580.201(c) of this part, and if so, 

publish notice in the Federal Register 

that a petition has been filed and that an 

investigation is being initiated. The 

notice shall identify the agricultural 

commodity, including any like or 

directly competitive commodities, the 

marketing year being investigated, the 

data being used, and the production 

area covered by the petition. The notice 

may also announce the scheduling of a 

public hearing, if requested by the 

petitioner. If the petition does not meet 

the requirements of § 1580.201(c) of this 

part, the Administrator (FAS) shall 

notify as soon as practicable the contact 

person or the authorized representative 

for the group of the deficiencies. 

§ 1580.202 Hearings, petition reviews, and 

amendments. 

(a) If the petitioner, or any other 

person found by the Administrator 

(FAS) to have a substantial interest in 

the proceedings, submits not later than 

10 days after the date of publication of 

notice in the Federal Register under 

§ 1580.201(d) of this part, a request in 

writing for a hearing, the Administrator 

(FAS) shall provide for a public hearing 

and afford such interested person an 

opportunity to be present, to produce 

evidence, and to be heard. 

(b) If the petitioner or any other 

person having an interest in the 

proceedings takes issue with any of the 

information published in the Federal 

Register concerning the petition, such 

person may submit to the Administrator 

(FAS) their comments in writing or 

electronically for consideration by the 

Administrator (FAS) not later than 10 

days after the date of publication of 

notice in the Federal Register under 

§ 1580.201(d) of this part. 

(c) A producer or group of producers 

that resides outside of the State or 

region identified in the petition filed 

under paragraph (a) of this section, may 

file a request to become a party to that 

petition not later than 15 days after the 

date that the notice is published in the 

Federal Register under § 1580.201(d) of 

this part. The Administrator (FAS) may 

amend the original petition to expand 

the impacted area and include the 

additional filer, or consider it a separate 

filing. 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 9091 

(d) The Administrator (FAS) shall 

publish in the Federal Register as soon 

as practicable any changes to the 

original notice resulting from any 

actions taken under this section. 

§ 1580.203 Determination of eligibility and 

certification by the Administrator (FAS). 

(a) As soon as practicable after the 

petition has been filed, but in any event 

not later than 40 days after that date, the 

Administrator (FAS) shall certify a 

group of producers as eligible to apply 

for adjustment assistance under this 

chapter if the Administrator (FAS) 

determines: 

(1) At least one of the following: 

(i) The national average price of the 

agricultural commodity produced by the 

group during the most recent marketing 

year for which data are available is less 

than 85 percent of the average of the 

national average price for the 

commodity in the 3 marketing years 

preceding such marketing year; or 

(ii) The quantity of production of the 

agricultural commodity produced by the 

group during such marketing year is less 

than 85 percent of the average of the 

quantity of production of the 

commodity produced by the group in 

the 3 marketing years preceding such 

marketing year; or 

(iii) The value of production of the 

agricultural commodity produced by the 

group during such marketing year is less 

than 85 percent of the average value of 

production of the commodity produced 

by the group in the 3 marketing years 

preceding such marketing year; or 

(iv) The cash receipts for the 

agricultural commodity produced by the 

group during such marketing year are 

less than 85 percent of the average of the 

cash receipts for the commodity 

produced by the group in the 3 

marketing years preceding such 

marketing year; 

(2) The volume of imports of articles 

like or directly competitive with the 

agricultural commodity produced by the 

group in the marketing year with respect 

to which the group files the petition 

increased compared to the average 

volume of such imports during the 3 

marketing years preceding such 

marketing year; and 

(3) The increase in such imports 

contributed importantly to the decrease 

in the national average price, or quantity 

of production, or value of production, or 

cash receipts for, the agricultural 

commodity. 

(b) In any case in which there are 

separate classes of goods within an 

agricultural commodity, the 

Administrator (FAS) shall treat each 

class as a separate commodity in 

determining: 

(1) Group eligibility; 

(2) The national average price, or 

quantity of production, or value of 

production, or cash receipts; and 

(3) The volume of imports. 

(c) Upon making a determination, 

whether affirmative or negative, the 

Administrator (FAS) shall promptly 

publish in the Federal Register a 

summary of the determination, together 

with the reasons for making the 

determination. 

(d) In addition, the Administrator 

(FAS) shall notify producers covered by 

a certification how to apply for 

adjustment assistance. Notification 

methods may include direct mailings to 

known producers, messages to directly 

affected producer groups and 

organizations, electronic 

communications, Web site notices on 

the Internet, use of broadcast print 

media, and transmittal through local 

USDA offices. 

(e) Whenever a group of agricultural 

producers is certified as eligible to 

apply for assistance, the Administrator 

(FAS) shall notify NIFA, the 

Agricultural Marketing Service, and 

FSA who will assist in informing other 

producers about the TAA for Farmers 

program and how they may apply for 

trade adjustment assistance. 

§ 1580.301 Application for trade 

adjustment assistance. 

(a) Only producers covered by a 

certification of eligibility under 

§ 1580.203 of this title, may apply for 

adjustment assistance. 

(b) An eligible producer may submit 

an application for adjustment assistance 

by submitting to FSA a designated 

application form at any time after the 

certification date but not later than 90 

days after the certification date. If the 

90-day application period ends on a 

weekend or legal holiday, the producer 

may apply the following business day. 

(c) When submitting an application, 

the producer shall provide sufficient 

documentation to establish that: 

(1) The producer produced the 

agricultural commodity in the marketing 

year for which the petition is filed and 

in at least 1 of the 3 marketing years 

preceding that marketing year; 

(2) There has been a decrease in the 

quantity of the agricultural commodity 

produced by the producer in the 

marketing year for which the petition is 

certified from the most recent prior 

marketing year preceding that marketing 

year for which data is available; or 

(3) There has been a decrease in the 

price of the agricultural commodity 

based on: 

(i) The price received for the 

agricultural commodity by the producer 

during the marketing year with respect 

to which the petition is filed from the 

average price for the commodity 

received by the producer in the 3 

marketing years preceding that 

marketing year; or 

(ii) The effective posted county price 

maintained by the Secretary for the 

agricultural commodity on the date on 

which the Administrator (FAS) accepts 

a petition for consideration as published 

in the Federal Register from the average 

effective posted county level price for 

the commodity in the 3 marketing years 

preceding that date. If USDA prices are 

not available, prices from verifiable 

sources, including universities, 

cooperatives, or local markets, may be 

used. 

(4) If a petition is certified with 

respect to a commodity not produced by 

the producer every year, the producer 

may establish the average price received 

by the producer for the commodity in 

the 3 marketing years preceding the year 

in which the petition is filed by using 

annual price data for the 3 most recent 

marketing years in which the producer 

produced the commodity. 

(5) The producer must certify that the 

producer has not received cash benefits 

under the Trade Adjustment Assistance 

for Workers or Trade Adjustment 

Assistance for Firms programs; or TAA 

for Farmers benefits based on the 

production of an agricultural 

commodity covered by another TAA for 

Farmers petition. 

(d) The producer must certify that: 

(1) For petitions certified for 2008 

crops, their compliance with person 

determinations set forth in part 1400 of 

this title, subpart B and average adjusted 

gross income limitation requirements 

set forth in subpart G, effective July 18, 

1996. 

(2) For petitions certified for 2009 and 

subsequent crops, their average gross 

nonfarm income and average adjusted 

gross farm income meet requirements 

set forth in part 1400 of this title, 

subpart F, and payment limitation 

requirements set forth in part 1400 of 

this title, subparts A and B, effective 

December 29, 2008; and, 

(e) The total amount of payments 

made to a producer for which the 

application was approved may not 

exceed the limitations on payments 

applicable to: 

(1) For petitions certified for 2008 

crops, counter-cyclical payments, set 

forth in part 1400 of this title, subpart 

A, effective July 18, 1996. 

(2) For petitions certified for 2009 and 

subsequent crops, the counter-cyclical 

payments, including the Average Crop 

Revenue Election (ACRE) set forth in 

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part 1400 of this title, subparts A and B, 

effective December 29, 2008; and 

(f) If requested by FSA, a producer 

must provide documentation regarding 

average adjusted gross income and 

payment limitations. 

§ 1580.302 Technical assistance and 

services. 

(a) Initial Technical Assistance: A 

producer covered by a certification who 

has been determined by FSA to meet the 

requirements of § 1580.301 of this part, 

is eligible to receive Initial Technical 

Assistance through NIFA to be 

completed within 180 days of petition 

certification. Such assistance shall 

include information regarding: 

(1) Improving the yield and marketing 

of that agricultural commodity, and 

(2) The feasibility and desirability, of 

substituting one or more agricultural 

commodities for that agricultural 

commodity. 

(b) Intensive Technical Assistance: 

Upon completion of Initial Technical 

Assistance, a producer is eligible to 

participate in Intensive Technical 

Assistance. Intensive Technical 

Assistance shall consist of: 

(1) A series of courses to further assist 

the producer in improving the 

competitiveness of producing the 

agricultural commodity certified under 

§ 1580.203 of this part, or another 

agricultural commodity, and 

(2) Assistance in developing an initial 

business plan based on the courses 

completed under paragraph (a) of this 

section. 

(c) During Intensive Technical 

Assistance: NIFA shall deliver and the 

producer shall be required to attend a 

series of Intensive Technical Assistance 

workshops relevant to the 

circumstances of the producer. 

(d) Initial Business Plan: Upon 

completion of the Initial and Intensive 

Technical Assistance, the producer shall 

be required to develop an Initial 

Business Plan recommended by NIFA 

and approved by the Administrator 

(FAS) before receiving an adjustment 

assistance payment. The Initial Business 

Plan will: 

(1) Reflect the skills gained by the 

producer through the courses described 

in paragraph (c) of this section; and 

(2) Demonstrate how the producer 

will apply those skills to the 

circumstances of the producer. 

(e) Upon approval of the Initial 

Business Plan, the producer will receive 

an amount not to exceed $4,000 to 

implement the Initial Business Plan or 

develop a Long-Term Business 

Adjustment Plan. 

(f) A producer who completes the 

Intensive Technical Assistance and 

whose Initial Business Plan has been 

approved shall be eligible, in addition to 

the amount under paragraph (e) of this 

section, for assistance in developing a 

Long-Term Business Adjustment Plan. 

(g) Long-Term Business Adjustment 

Plan: The Long-Term Business 

Adjustment Plan shall: 

(1) Include steps reasonably 

calculated to materially contribute to 

the economic adjustment of the 

producer to changing market conditions; 

(2) Take into consideration the 

interests of the workers employed by the 

producer; and 

(3) Demonstrate that the producer will 

have sufficient resources to implement 

the business plan. 

(h) Upon recommendation by NIFA 

and approval of the producer’s LongTerm Business Adjustment Plan by the 

Administrator (FAS), the producer shall 

be entitled to receive an amount not to 

exceed $8,000 to implement their LongTerm Business Adjustment Plan. 

(i) The Initial Business Plan and LongTerm Business Adjustment Plan must be 

completed and approved within 36 

months after a petition is certified. 

(j) A producer shall not receive a 

combined total of more than $12,000 for 

the Initial Business Plan and the Long 

Term Business Adjustment Plan in the 

36-month period following petition 

certification. 

(k) The Administrator (FAS) may 

authorize supplemental assistance 

necessary to defray reasonable 

transportation and subsistence expenses 

incurred by a producer in connection 

with the initial technical assistance, if 

such initial technical assistance is 

provided at facilities that are not within 

normal commuting distance of the 

regular place of residence of the 

producer. NIFA and FSA will work with 

the producer and the Administrator 

(FAS) to facilitate application for and 

proper payment of reasonable allowable 

supplemental expenses. The 

Administrator (FAS) will not authorize 

payments to a producer: 

(1) For subsistence expenses that 

exceed the lesser of: 

(i) The actual per diem expenses for 

subsistence incurred by a producer; or 

(ii) The prevailing per diem allowance 

rate authorized under Federal travel 

regulations; or 

(2) For travel expenses that exceed the 

prevailing mileage rate authorized 

under the Federal travel regulations. 

§ 1580.303 Adjustment assistance 

payments. 

(a) If the Administrator (FAS) 

determines that insufficient 

appropriated fiscal year funds are 

available to provide maximum cash 

benefits to all eligible applicants, after 

having deducted estimated 

transportation and substance payments 

and administrative and technical 

assistance costs, the Administrator 

(FAS) shall prorate cash payments to 

producers for the approved initial and 

long-term business plans. 

(b) Any producer who may be entitled 

to a payment may assign their rights to 

such payment in accordance with 7 CFR 

part 1404 or successor regulations as 

designated by the Department. 

(c) In the case of death, incompetency, 

disappearance, or dissolution of a 

producer that is eligible to receive 

benefits in accordance with this part, 

such producer or producers specified in 

7 CFR part 707 may receive such 

benefits. 

§ 1580.401 Subsequent year petition 

recertification. 

(a) Prior to the anniversary of the 

petition certification date: 

(1) Groups or authorized 

representatives that provided the data to 

justify their initial petition shall provide 

the Administrator (FAS) data for the 

most recent marketing year, and 

(2) The Administrator (FAS) shall 

make a determination with respect to 

the re-certification of petitions for the 

subsequent year by applying criteria as 

set forth in § 1580.203 of this part for 

the most recent marketing year. 

(b) The Administrator (FAS) will 

promptly publish in the Federal 

Register the determination with the 

reasons for the determination. 

(c) If a petition is re-certified, only 

eligible producers who did not receive 

training and cash benefits under this 

program may apply. 

§ 1580.501 Administration. 

(a) The petition process will be 

administered by FAS. FAS will publish 

in the Federal Register the filing dates 

for commodity groups to file petitions. 

(b) FSA will administer the producer 

application and payment process. 

(c) State and county FSA committees 

and representatives do not have the 

authority to modify or waive any of the 

provisions of this part. 

(d) The technical assistance process 

and the recommendation for approval of 

all producer business plans will be 

under the general supervision of NIFA. 

NIFA may award the technical 

assistance and services to a state 

cooperative extension service. 

(e) The Deputy Administrator may, in 

consultation with the Administrator, 

FAS, authorize the State and County 

committees to waive or modify nonstatutory deadlines or other program 

requirements in cases where lateness or 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 9093 

failure to meet such other requirements 

by applicants does not adversely affect 

the operation of the program. 

§ 1580.502 Maintenance of records, audits, 

and compliance. 

(a) Producers making application for 

benefits under this program must 

maintain accurate records and accounts 

that will document that they meet all 

eligibility requirements specified 

herein, as may be requested. Such 

records and accounts must be retained 

for 2 years after the date of the final 

payment to the producer under this 

program. 

(b) At all times during regular 

business hours, authorized 

representatives of the U.S. Department 

of Agriculture or any agency thereof, the 

Comptroller General of the United 

States shall have access to the premises 

of the producer in order to inspect, 

examine, and make copies of the books, 

records, and accounts, and other written 

data as specified in paragraph (a) of this 

section. 

(c) Audits of certifications of average 

adjusted gross income may be 

conducted as necessary to determine 

compliance with the requirements of 

this subpart. As a part of this audit, 

income tax forms may be requested and 

if requested, must be supplied. If a 

producer has submitted information to 

FSA, including a certification from a 

certified public accountant or attorney, 

that relied upon information from a 

form previously filed with the Internal 

Revenue Service, such producer shall 

provide FSA a copy of any amended 

form filed with the Internal Revenue 

Service within 30 days of the filing. 

(d) If requested in writing by the U.S. 

Department of Agriculture or any 

agency thereof, or the Comptroller 

General of the United States, the 

producer shall provide all information 

and documentation the reviewing 

authority determines necessary to verify 

any information or certification 

provided under this subpart, including 

all documents referred to in 

§ 1580.301(c) of this part, within 30 

days. Acceptable production 

documentation may be submitted by 

facsimile, in person, or by mail and may 

include copies of receipts, ledgers, 

income statements, deposit slips, 

register tapes, invoices for custom 

harvesting, records to verify production 

costs, contemporaneous measurements, 

truck scale tickets, fish tickets, landing 

reports, and contemporaneous diaries 

that are determined acceptable. Failure 

to provide necessary and accurate 

information to verify compliance, or 

failure to comply with this part’s 

requirements, will result in ineligibility 

for all program benefits subject to this 

part for the year or years subject to the 

request. 

§ 1580.503 Recovery of overpayments. 

(a) If the Administrator (FAS) 

determines that any producer has 

received any payment under this 

program to which the producer was not 

entitled, or has expended funds 

received under this program for purpose 

that was not approved by the 

Administrator (FAS) such producer will 

be liable to repay such amount. The 

Administrator (FAS) may waive such 

repayment if it is determined that: 

(1) The payment was made without 

fault on the part of the producer; and 

(2) Requiring such repayment would 

be contrary to equity and good 

conscience. 

(b) Unless an overpayment is 

otherwise recovered, or waived under 

paragraph (a) of this section, the 

Administrator (FAS), shall recover the 

overpayment as a debt following the 

procedures in 7 CFR part 3. The 

requirement for demand and notice and 

opportunity for a hearing under the debt 

collection procedures in 7 CFR part 3 

shall satisfy the notice and hearing 

requirements under 19 U.S.C. 2401f(c), 

and the appeal procedures in § 1580.505 

of this part shall not apply to collection 

of overpayments 

§ 1580.504 Debarment, suspension, and 

penalties. 

(a) Generally. The regulations 

governing Governmentwide Debarment 

and Suspension (Nonprocurement), 7 

CFR part 3017, and Government 

Requirements for Drug-Free Workplace 

(Financial Assistance), 7 CFR part 3021, 

apply to this part. 

(b) Additional specific suspension 

and debarment provision for this 

program. In addition to any other 

debarment or suspension of a producer 

under paragraph (a) of this section, in 

connection with this program, if the 

Administrator (FAS) or a court of 

competent jurisdiction, determines that 

a producer: 

(1) Knowingly has made, or caused 

another to make, a false statement or 

representation of a material fact, or 

(2) Knowingly has failed, or caused 

another to fail, to disclose a material 

fact; and, as a result of such false 

statement or representation, or of such 

nondisclosure, such producer has 

received any payment under this 

program to which the producer was not 

entitled, the Administrator (FAS) shall 

suspend and debar such producer from 

any future payments under this 

program, as provided in 19 U.S.C. 

2401f(b). 

(c) Criminal penalty. Whoever makes 

a false statement of a material fact 

knowing it to be false, or knowingly 

fails to disclose a material fact, for the 

purpose of obtaining or increasing for 

himself or for any other producer any 

payments authorized to be furnished 

under this program shall be fined not 

more that $10,000 or imprisoned for not 

more than 1 year, or both. 

§ 1580.505 Appeals. 

(a) A producer adversely affected by 

a determination with respect to their 

application for trade adjustment 

assistance under § 1580.301 of this part 

or with respect to the receipt of 

technical assistance or payments under 

§ 1580.302 of this part may file a notice 

of appeal within 30 days of the date that 

the notification of the adverse 

determination was sent. 

(b) A producer may not seek judicial 

review of any adverse decision under 

this paragraph without receiving a final 

determination pursuant to this 

paragraph. 

§ 1580.506 Judicial review. 

Any producer aggrieved by a final 

agency determination under this part 

may appeal to the U.S. Court of 

International Trade for a review of such 

determination in accordance with its 

rules and procedures. 

§ 1580.602 Paperwork Reduction Act. 

The information collection 

requirements contained in this part have 

been approved by the Office of 

Management and Budget (OMB) under 

the provisions of 44 U.S.C. Chapter 35 

and been assigned OMB control number 

0551–0040. 

Dated: February 22, 2010. 

John D. Brewer, 

Administrator, Foreign Agricultural Service. 

[FR Doc. 2010–3984 Filed 2–26–10; 8:45 am] 

BILLING CODE 3410–10–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Regulation A] 

Extensions of Credit by Federal 

Reserve Banks 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

adopted final amendments to its 

Regulation A to reflect the Board’s 

approval of an increase in the primary 

credit rate at each Federal Reserve Bank. 

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