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

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

15933 

Vol. 77, No. 53 

Monday, March 19, 2012 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

7 CFR Part 319 

[Docket No. APHIS–2007–0117] 

RIN 0579–AC90 

Importation of Wooden Handicrafts 

From China 

Correction 

In rule document 2012–4962 

beginning on page 12437 in the issue of 

Thursday, March 1, 2012 make the 

following correction: 

On page 12439, in the third column, 

in footnote 2, in the third line ‘‘https:// 

www.ippc.int/index.php?id=13399&tx_

publication_pi1*showUid]=133703&

frompage=13399&type=publication&

subtype=&L=0#item.’’ should read 

‘‘https://www.ippc.int/index.php?id=

13399&tx_publication_pi1[showUid]=

133703&frompage=13399&type=

publication&subtype=&L=0#item.’’ 

[FR Doc. C1–2012–4962 Filed 3–16–12; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF AGRICULTURE 

Farm Service Agency 

7 CFR Parts 761, 762, 764, 765, and 766 

RIN 0560–AI04 

Conservation Loan Program 

AGENCY: Farm Service Agency, USDA. 

ACTION: Final rule. 

SUMMARY: In September 2010, the Farm 

Service Agency (FSA) implemented the 

new Conservation Loan (CL) Program 

authorized by the Food, Conservation, 

and Energy Act of 2008 (the 2008 Farm 

Bill). FSA added the CL Program 

provisions to the existing direct and 

guaranteed loan regulations. The 

provisions provide CL program 

eligibility and servicing options for the 

direct and guaranteed loans made 

through the CL Program. FSA is 

amending the Farm Loan Programs 

(FLP) direct and guaranteed loan 

regulations for the CL Program based on 

public comments received on the 

interim rule. 

DATES: Effective Date: This rule is 

effective May 18, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Connie Holman; telephone: (202) 690– 

0756. Persons with disabilities who 

require alternative means for 

communication (Braille, large print, 

audio tape, etc.) should contact the 

USDA Target Center at (202) 720–2600 

(voice and TDD). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 5002 of the 2008 Farm Bill 

(Pub. L. 110–246) authorized the 

establishment of the CL Program by 

amending section 304 of the 

Consolidated Farm and Rural 

Development Act (CONACT, 7 U.S.C. 

1924). CL loan funds may be used to 

finance the cost of carrying out a 

qualified conservation project. FSA 

published an interim rule (75 FR 54005– 

54016) on September 3, 2010, to add CL 

loan making and servicing provisions to 

the existing direct and guaranteed loan 

regulations. The regulations in 7 CFR 

parts 761, 762, 764, 765, and 766 were 

amended. Those changes to the 

regulation were effective on September 

3, 2010. 

Subsequently, on May 13, 2011, FSA 

published a notice in the Federal 

Register (76 FR 27986) announcing that 

FSA was no longer accepting direct or 

guaranteed applications for the CL 

Program because of a lack of funding. 

On March 7, 2012, FSA published 

another notice in the Federal Register 

(77 FR 13530–13531) announcing that 

we are now accepting guaranteed loan 

applications. However, due to a lack of 

program funding, direct CL applications 

are not being accepted at this time. 

In this final rule, FSA addresses the 

comments received on the interim rule 

and the changes being made in response 

to those comments. The amended 

regulations will be used to service 

outstanding direct and guaranteed CLs 

and to process any new loan 

applications, subject to the availability 

of funding. 

Fifteen commenters submitted 

comments on the interim rule during 

the 60-day comment period. Comments 

were received from the Independent 

Community Bankers of America, 

National Sustainable Agriculture 

Coalition, Forestry Service Division of 

Oklahoma Department of Agriculture 

Food and Forestry, Natural Resources 

Conservation Service (NRCS), American 

Farmland Trust, the general public, and 

FSA employees. This rule was also 

included in the Joint Regional Tribal 

Consultation Strategy facilitated by 

USDA in seven regional consultation 

meetings from November 2010 through 

January 2011. 

The comments addressed multiple 

provisions of the rule. Many of the 

comments received during the comment 

period were supportive. The 

commenters supported many of the CL 

provisions such as the eligible uses for 

CL loan funds, the requirement for 

applicants to obtain an approved NRCS 

conservation plan, the exemption of 

‘‘test for credit’’ and ‘‘graduation’’ 

requirements from the program, loan 

limits, the streamlined CL application 

process, and the targeting of direct and 

guaranteed loan funds for certain 

producer types. 

A number of issues raised in the 

comments resulted in changes to the 

regulations. The overall changes are 

summarized below followed by a 

discussion of the individual comment 

issues and the responses. 

Summary of Amendments to the 

Regulations 

Part 761 provides the general and 

administrative regulations for both 

direct and guaranteed loans. The 

regulation in 7 CFR part 762 specifies 

requirements and procedures that apply 

to making and servicing Guaranteed 

Loans. The regulation in 7 CFR part 763 

specifies the requirements and 

procedures for direct loan making. FSA 

is making several amendments to these 

regulations based on the comments. 

FSA is making a minor amendment to 

the definition of ‘‘Conservation 

Practice’’ to coincide with the definition 

in NRCS regulations. FSA will add a 

definition of ‘‘Forest Stewardship 

Management Plan,’’ make a minor 

amendment to the definition of 

‘‘Conservation Project’’ to add a 

provision to allow conservation 


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