36550 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1400, 1411, 1427, 1439,

1464, 1479

RIN 0560–AG14

Agricultural Disaster and Market

Assistance

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Interim rule and final rule.

SUMMARY: This rule implements

agricultural disaster and market

assistance provisions of the Agriculture,

Rural Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2000 and the

Omnibus Consolidated Appropriations

Act, 2000. It will implement statutory

provisions related to cottonseed market

loss, a competitiveness program for

extra long staple (ELS) cotton,

warehouse-stored tobacco loss

assistance, pasture recovery, oilseeds

marketing loss, livestock disaster

assistance for contract growers and

emergency assistance for Harney

County, Oregon. It will also define the

base quality for upland cotton, finalize

existing regulations for the Livestock

Indemnity and American Indian

Livestock Feed Programs and reorganize

all of the Emergency Livestock

Assistance regulations to remove

obsolete regulations. Certain provisions

of this rule will be implemented as

interim rules and others as final rules.

See SUPPLEMENTARY INFORMATION for

details.

DATES: This rule is effective June 1,

2000, except for the amendments to

§ 1427.25, which is effective August 1,

2000.

Comments on the provisions of this

interim rule related to cottonseed

assistance, the competitiveness program

for ELS cotton, and flood assistance for

Harney County, Oregon must be

received by July 10, 2000 to be assured

of consideration. Comments on the

information collections for these

programs must be received by August 7,

2000.

ADDRESSES: Comments on the

regulations should be sent to: Tom

Witzig, Chief, Regulatory Review and

Foreign Investment Disclosure Branch,

Farm Service Agency (FSA), U.S.

Department of Agriculture, STOP 0540,

1400 Independence Ave., SW,

Washington, DC, 20250–0540, telephone

(202)205–5851, or by e-mail to:

tomlwitzig@wdc.fsa.usda.gov.

Comments can be inspected in Room

6734 South Building, Washington, DC,

between 7:30 a.m. and 4:30 p.m.,

Monday through Friday, except

holidays. Comments on the information

collection should be sent to the Desk

Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503 and to Tom

Witzig at the address above.

FOR FURTHER INFORMATION CONTACT: Tom

Witzig, Chief, Regulatory Review and

Foreign Investment Disclosure Branch,

FSA, USDA, STOP 0540, 1400

Independence Avenue, SW,

Washington, D.C. 20250–0540,

Telephone: (202) 205-5851; e-mail:

tomlwitzig@wdc.fsa.wdc.gov.

SUPPLEMENTARY INFORMATION:

Notice and Comment

Section 824 of Pub. L. 106–78 requires

that the regulations necessary to

implement Title VIII, Subtitle A of Pub.

L. 106–78 be issued as soon as

practicable and without regard to the

notice and comment provisions of 5

U.S.C. 553, or the Statement of Policy of

the Secretary of Agriculture (the

Secretary) effective July 24, 1971 (36 FR

13804) relating to notices of proposed

rulemaking and public participation in

rulemaking, or the Paperwork Reduction

Act. The provisions of this interim rule

related to tobacco warehouse assistance,

pasture recovery, oilseeds assistance,

and livestock assistance for contract

growers implement provisions of

Subtitle A and thus are issued as final

and are effective immediately.

The provisions of this interim rule

related to the Livestock Indemnity and

the American Indian Livestock Feed

Programs finalize regulations for which

interim rules were previously issued

and are thus issued as final. The public

comments to those interim rules are

addressed in the Background section of

this rule.

The provisions of this interim rule

related to 7 CFR 1400 and 7 CFR

1427.25 are simply technical

amendments to clarify the existing

regulations for consistent and efficient

administration and are thus issued as

final.

The provisions of this interim rule

related to the reorganization of 7 CFR

1439, Emergency Livestock Assistance,

simply remove obsolete regulations and

are thus issued as final.

The provisions of this interim rule

related to cottonseed assistance, the

competitiveness program for ELS cotton,

and flood assistance for Harney County,

Oregon are not exempt from the notice

and comment requirements, and are

issued as interim rules, effective

immediately, but public comments are

requested and will be considered before

the regulations are issued as final.

Comments on the provisions of this

interim rule related to cottonseed

assistance, the competitiveness program

for ELS cotton, and flood assistance for

Harney County, Oregon must be

received by July 10, 2000 to be assured

of consideration. Comments on the

information collections for these

programs must be received by August 7,

2000.

Executive Order 12866

This final rule is issued in

conformance with Executive Order

12866 and has been determined to be

economically significant and has been

reviewed by the Office of Management

and Budget. A cost-benefit assessment

was completed and is summarized after

the background section explaining the

actions this rule will take.

Federal Assistance Programs

The titles and numbers of the Federal

assistance programs, as found in the

Catalog of Federal Domestic Assistance,

to which this final rule applies are:

Commodity Loan Deficiency

Payments—10.051; Production

Flexibility Payments for Contract

Commodities—10.055; Conservation

Reserve Program—10.069, Disaster

Reserve Assistance—10.452.

Regulatory Flexibility Act

It has been determined that the

Regulatory Flexibility Act is not

applicable to this rule because USDA is

not required by 5 U.S.C. 553 or any

other provision of law to publish a

notice of proposed rulemaking with

respect to the subject matter of this rule.

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will have no significant impact

on the quality of the human

environment. Therefore, neither an

environmental assessment nor an

Environmental Impact Statement is

needed.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372,

which require intergovernmental

consultation with State and local

officials. See the notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Unfunded Mandates

The provisions of Title II of the

Unfunded Mandates Reform Act of 1995

are not applicable to this rule because

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36551

the USDA is not required by 5 U.S.C.

553 or any other provision of law to

publish a notice of proposed rulemaking

with respect to the subject matter of this

rule.

Small Business Regulatory Enforcement

Fairness Act of 1996

Section 824 of Pub. L. 106–78 requires

that the regulations necessary to

implement Title VIII, Subtitle A of Pub.

L. 106–78 be issued as soon as

practicable and without regard to the

notice and comment provisions of 5

U.S.C. 553 or the Statement of Policy of

the Secretary of Agriculture effective

July 24, 1971 (36 FR 13804) relating to

notices of proposed rulemaking and

public participation in rulemaking. It

also requires that the Secretary use the

provisions of 5 U.S.C. 808 (the Small

Business Regulatory Enforcement

Fairness Act (SBREFA)), which provides

that a rule may take effect at such time

as the agency may determine if the

agency finds for good cause that public

notice is impracticable, unnecessary, or

contrary to the public purpose, and thus

does not have to meet the requirements

of § 801 of SBREFA requiring a 60-day

delay for Congressional review of a

major regulation before the regulation

can go into effect. This interim rule is

considered a major rule for the purposes

of SBREFA. However, the regulations

for tobacco warehouse assistance,

pasture recovery, oilseeds assistance,

and livestock assistance for contract

growers implement provisions of

Subtitle A of Pub. L. 106–78. These

regulations affect the incomes of a large

number of agricultural producers who

have been hit hard by natural disasters

and poor market conditions.

Accordingly, because it would be

contrary to the public interest to delay

those provisions of this rule, as

expressed in Pub. L. 106–78, they are

issued as final and are effective

immediately.

The provisions of this interim rule for

cottonseed assistance, the

competitiveness program for ELS cotton,

and flood assistance for Harney County,

Oregon are not exempt from the notice

and comment or the Congressional

Review requirements. With respect to

these items, for which public comment

will be sought, it has been determined

that the new regulations should be made

effective immediately as in each one of

the cases further delay in making

benefits available would delay legislated

emergency relief. In the case of the

provision for extra long staple cotton,

the rule merely codifies a statutory

formula for relief. In the case of

cottonseed payments, the rule will

allow recovery in a timely manner for

damages that have already been

suffered, as will also be the case with

the relief provide for Harney County

producers. The new regulations,

however, are flexible enough to allow

the agency to suspend the new

provisions for these three new programs

in the event that cause for doing so

should appear in the comments. In the

meantime, however, should no such

cause appear, making the regulations

effective will allow the regulations to

proceed to be used to provide what

could be much needed and timely relief

for the parties involved, just as relief for

others has been provided through a

number of other new programs provided

for in recent legislation. Likewise, with

respect to the Small Business Regulatory

Enforcement Fairness Act (SBREFA),

which allows for a pre-issuance

Congressional review period for some

rules, it has been determined that this

rule should be made effective

immediately on all of its provisions as

a delay in implementing the rule would

be impracticable and contrary to the

public interest.

Paperwork Reduction Act

Section 824 of Pub. L. 106–78 requires

that the regulations implementing the

provisions of Subtitle A, Title VIII of

Pub. L. 106–78 are to be promulgated

without regard to the Paperwork

Reduction Act. This means that the

normal 60-day public comment period

and OMB approval of the information

collections required by this rule are not

required before the regulations may be

made effective. However, the 60-day

public comment period and OMB

approval under the provisions of 44

U.S.C. chapter 35 are still required after

the rule is published. The provisions of

this rule that are not mandated by

Subtitle A are subject to the normal

requirements of the Paperwork

Reduction Act. Those provisions are

cottonseed assistance, the

competitiveness program for ELS cotton,

and flood assistance for Harney County,

Oregon. Information Collection

Packages and requests for emergency

approval for those provisions have been

submitted to OMB and are summarized

as follows:.

Title: Emergency Assistance for

Harney County, Oregon (7 CFR part

1478)

OMB Control Number: 0560–NEW

Type of Request: Approval of a new

information collection.

Abstract: Emergency Assistance for

Harney County, Oregon is authorized

under H.R. 3194, P.L. 106–113 (113 Stat.

1501). To determine benefits due to

eligible producers requesting assistance

in accordance with regulations, FSA

proposes to use the CCC–454 (Flood

Compensation Program). The CCC–454

will be used to document the

verification of loss of production

because of flooding in 1999.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 2 hours per

producer.

Respondents: Producers of Harney

County, Oregon

Estimated Number of Respondents: 40

Estimated Number of Responses per

Respondents: 1

Estimated Total Annual Burden on

Respondents: 80 hours

Copies of the information collection

may be obtained from Helen Smith,

USDA–FSA–PECD, 1400 Independence

Avenue, S.W., STOP 0517, Washington,

D.C. 20250–0515: Telephone (202) 720–

7954 or e-mail

helen_smith@wdc.fsa.usda.gov.

Title: Cottonseed Payment Program

Application/Certification

OMB Control Number: 0560–NEW

Type of Request: Approval of a new

information collection.

Abstract: This new collection

instrument is the application and

certification form to be used by cotton

gins to request payments under the

Cottonseed Payment Program. The

information requested will be used to

determine the national payment rate

and to compute individual program

payment amounts for each applicant.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 40 minutes per

producer.

Respondents: Cotton Gins

Estimated Number of Respondents:

1,100

Estimated Number of Responses per

Respondent: 1

Estimated Total Annual Burden on

Respondents: 733 hours

Copies of the information collection

may be obtained from Gene Rosera,

USDA–FSA–PSD, 1400 Independence

Avenue, S.W., STOP 0512, Washington,

D.C. 20250: Telephone (202) 720–8481

or e-mail gene_rosera@wdc.fsa.usda.gov.

Title: ELS Cotton Competitiveness

Payment Program

OMB Control Number: 0560–NEW

Type of Request: Approval of a new

information collection

Abstract: This collection will enroll

Extra Long Staple (ELS) cotton exports

and textile manufacturers in the ELS

Cotton Competitiveness Payment

Program and allow them to report their

activity with respect to ELS cotton so

that proper payments can be made to

them. The ELS competitive payment

program was authorized by the

Consolidated Appropriations Act for

36552 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

Fiscal Year 2000, Pub.L. 106–113, and

was mandated to begin October 1, 1999.

A method has been devised to

determine each Tuesday whether a

payment should be made during the

following Wednesday-through-Tuesday

week and rate per pound of any

payment. In the period since October 1,

1999, were triggered only during the

period April 4, 2000, through May 2,

2000. Clearance of CCC–1045A (ELS

Cotton Exporter/Domestic User

Agreement) would facilitate enrollment

of the exporters and textile

manufacturing firms who wish to

participate.

Estimate of Burden: Public reporting

burden for this collection of information

is estimated to average 30 sminutes per

respondent.

Respondents: Cotton Exports and

Textile Manufacturers

Estimated Number of Respondents: 40

Estimated Number of Responses per

Respondents: 58

Estimated Total Annual Burden on

Respondents: 780 hours

Copies of the information collection

may be obtained from Wayne Bjorlie,

USDA–FSA–EPAS, 1400 Independence

Avenue, S.W., STOP 0515, Washington,

D.C. 20250–0515: Telephone (202) 720–

7954 or e-mail

wayne_bjorlie@wdc.fsa.usda.gov.

Proposed topics for comments for

each of the three information collections

are: (a) whether the collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(b) the accuracy of the agency’s estimate

of burden including the validity of the

methodology and assumptions used; (c)

ways to enhance the quality, utility, and

clarity of the information to be

collected; or (d) ways to minimize the

burden of the collection of information

on those who are to respond, including

the use of appropriate automated,

electronic, mechanical or other

technological collection techniques or

other forms of information technology.

Comments should be sent to the Desk

Officer for Agriculture, Office of

Information and Regulatory Affairs,

Office of Management and Budget,

Washington, D.C. 20503 and to Tom

Witzig, USDA–FSA–ORAS, 1400

Independence Avenue, S.W., STOP

0540, Washington, D.C. 20250–0540:

Telephone (202) 205–5851 or e-mail

tom_witzig@wdc.fsa.usda.gov.

Background

This rule will implement

requirements of the Agriculture, Rural

Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2000, (Pub. L. 106–

78), and the Omnibus Consolidated

Appropriations Act, 2000 (Pub. L. 106–

113) related to agricultural disaster and

market assistance for agricultural

producers. It will also implement

several other provisions of those and

other Acts that are related to but not in

themselves crop or market loss

assistance provisions. Crop and market

assistance provisions of the Acts that are

being implemented are the Cottonseed

Market Loss Assistance Program, the

competitiveness program for ELS cotton,

Warehouse-Stored Tobacco Loss

Assistance, the Pasture Recovery

Program, the Oilseeds Program,

emergency assistance for Harney

County, Oregon, and livestock

assistance for contract growers. This

rule will also finalize the existing

regulations for the Livestock Indemnity

and American Indian Livestock Feed

Programs, reorganize 7 CFR 1439,

Livestock Disaster Assistance, and make

clarifying amendments to 7 CFR 1400.

Descriptions of this rule’s provisions

follow.

1. 7 CFR Part 1400—Payment Limitation

and Payment Eligibility

Amendments are being made to 7 CFR

part 1400 to supplement and clarify the

existing regulations for consistent and

efficient administration. The revisions

are not considered significant in that no

additional requirements are imposed

upon the producers and no additional

responsibilities are placed on the Farm

Service Agency or USDA to administer

the provisions of this part. The table in

§ 1400.1(g) is being amended to include

the applicable limitation on cost-share

payments for conservation practices

under the Environmental Quality

Incentives Program (EQIP). Section

1400.2 is being amended to include the

requirement that all necessary forms be

submitted and applicable

determinations made before any

payments can be issued for the

programs subject to this part. The

section is further amended to include a

provision for the review of the

applicable forms and information

submitted by producers for the

determination of compliance with this

part.

2. 7 CFR Part 1411—Oilseeds Program

Section 804 of Pub. L. 106–78

provides generally that the Secretary

shall use $475 million of funds of the

Commodity Credit Corporation (CCC) to

make payments to producers of the 1999

crop of oilseeds who are eligible to

obtain a marketing assistance loan

under § 131 of the Agricultural Market

Transition Act (7 U.S.C. 7231). Section

804 further provides that a payment to

producers on a farm under that section

for an oilseed shall be equal to the

product obtained by multiplying (1) the

payment rate determined by the

Secretary, by (2) the acreage of the

producers on the farm for the oilseed, as

determined under the statute, by (3) the

producers’ yield for the oilseed, as

determined under the statute. With

respect to acreage, the statute provided

generally that the payment acreage of

the producers on the farm for an oilseed

shall be equal to the greater of (1) the

number of acres planted to the oilseed

by the producers on the farm during the

1997 crop year, as reported by the

producers on the farm to the Secretary

(including any acreage reports that are

filed late), or (2) the number of acres

planted to the oilseed by the producers

on the farm during the 1998 crop year,

as reported by the producers on the farm

to the Secretary (including any acreage

reports that are filed late). As an

exception, however, the statute provides

that in the case of producers on a farm

that planted acreage to an oilseed during

the 1999 crop year but did not plant that

oilseed in the 1997 or 1998 crop years,

the acreage of such ‘‘new’’ producers for

that oilseed shall be equal to the number

of acres planted to the oilseed by the

producers on the farm during the 1999

crop year, as reported by the producers

on the farm to the Secretary (including

any acreage reports that are filed late).

With respect to yield, the statute

provides that in the case of soybeans,

the yield of established eligible

producers (those with 1999 production

and production in 1997 or 1998) on a

farm shall be equal to the greatest of (1)

the average county yield per harvested

acre for each of the 1994 through 1998

crop years, excluding the crop year with

the highest yield per harvested acre and

the crop year with the lowest yield per

harvested acre, (2) the actual yield of the

producer for the 1997 crop year; or (3)

the actual yield of the producer for the

1998 crop year. For other oilseeds the

statute provides that the yield of

established producers shall be equal to

the greatest of (1) the average national

yield per harvested acre for each of the

1994 through 1998 crop years,

excluding the crop year with the highest

yield per harvested acre and the crop

year with the lowest yield per harvested

acre, (2) the actual yield of the producer

for the 1997 crop year; or (3) the actual

yield of the producer for the 1998 crop

year. For new producers, for all

oilseeds, the statute provides that the

yield will be the greater of (1) the

average county yield per harvested acre

for each of the 1994 through 1998 crop

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36553

years, excluding the crop year with the

highest yield per harvested acre and the

crop year with the lowest yield per

harvested acre; or (2) the actual yield of

the producers on the farm for the 1999

crop. Finally, the statute provides that

to the maximum extent available, the

Secretary shall use data provided by the

National Agricultural Statistics Service

to carry out the new program.

As provided in the legislation, only

those producers who planted an eligible

oilseed for the 1999 crop year will be

eligible for benefits under this program

and no more than $475 million may be

expended, subject further to such

administrative deductions as may apply.

Benefits will be determined by

multiplying the eligible producer’s

payment acreage times the applicable

yield by the applicable payment rate.

The final payment rate will be

determined by the Secretary after the

sign-up period, to allow the Secretary to

establish a rate that will limit total

payments to not more than the allocated

amount. Because proration can only be

made if all claims are made in a timely

fashion, no late-filed applications will

be permitted. Deadlines will be

announced by press release and

information about the program will be

available at local Farm Service Agency

offices.

If the producer is considered to be a

‘‘new’’ producer, the producer’s

qualifying acreage will be all acreage

planted by the producer on all farms in

which the producer has an interest for

the 1999 crop, adjusted to reflect partial

interests where there is more than one

producer on the same acreage. If the

producer is considered to be an

‘‘established’’ producer, the acreage,

similarly adjusted for partial interests,

will be the producer’s highest acreage

use in 1997 or 1998 at all locations for

that oilseed. In all cases, however, for

all oilseeds, the producer, in order to be

eligible for payment, must have actually

planted that particular oilseed for the

1999 crop year. Producers are eligible to

receive payments on more than one

oilseed so long as the producer shared

in the production of each such oilseed

for the 1999 crop year. A producer is

considered to be a new producer of an

oilseed if the producer shared in the

production of the oilseed for the 1999

crop year, but did not share in the

production of the oilseed on any farm

for the 1998 or 1997 crop years. The

producer is not considered to be a new

producer of an oilseed if the producer

shared in the production of an oilseed

on any farm in which the producer had

an interest in the 1999 crop year, and

shared in the production of that specific

oilseed in either or both of the 1998 or

1997 crop years. Acreage not planted to

an oilseed crop, even if that acreage was

approved as acreage for preventedplanting credit for some other purpose

(that is, was acreage on which planting

was prevented by circumstances beyond

the producer’s control, so called

‘‘prevented-planting acreage’’) does not

qualify for any benefit calculation under

this new program. That is, that acreage

will not qualify the producer for a

payment.

With respect to yields, the Secretary

will announce average soybean yields

for each county, and, for minor oilseeds,

a national average yield will be

announced. Producers may substitute

actual yields for average yields and, if

subject to a spot check, shall document

oilseed disposition on FSA–658 for all

planted acres for the year in question or

by providing RMA documentation with

proven yield information for all of the

planted acres in question. All

documentation must be approved by the

county committee. New producers may

receive an oilseed payment based on the

higher of the applicable average yield of

the control county for soybeans or

national average yield for all other

eligible oilseeds, or the producer’s

actual yield for all acreage for the 1999

crop year (if established to the county

committee’s satisfaction). An oilseed

producer who is not a new producer

may receive an oilseed payment based

on the higher of the applicable average

yield for the producer’s control county,

for soybeans or national average yield

for all other eligible oilseeds, or the

higher actual yield for all the producer’s

planted acreage of the oilseed for either

the 1997 or 1998 crop year (regardless

of which of those two years was used to

set the qualifying acreage).

As provided for in the statute,

producers are entitled to receive a

payment amount equal to the result of

multiplying the payment acreage, times

the payment yield, times the final

payment rate determined by the

Secretary. All persons must meet all

eligibility requirements and must, to

receive payments, be in compliance

with the provisions for highly-erodible

land, wetland conservation, and with

those regarding controlled substances

that are found in 7 CFR part 12 and 7

CFR 718.11. Additionally, a producer

who is determined to have intentionally

misrepresented any fact affecting a

program determination will not be

entitled to oilseed payments and must

refund all payments, plus interest, and

be subject to such other remedies as

may be allowed by law.

While the statute involved may be

open to several interpretations on

significant questions, these rules are

intended to provide for an efficient

administration of the program

consistent with the provisions of the

statute itself. Thus, for example, while

the references in the legislation to

producers ‘‘on a farm’’ could suggest

that the program was to be interpreted

as allowing producers to qualify

separately farm-by-farm, rather than

qualify on the basis of all farms in

which they have an interest, such an

interpretation would produce a windfall

for some producers (at the expense of

other producers) and would not seem to

be consistent with the intent of the

statute to have producers share in the

program based on actual production

levels. That is, while there are

references in the statute to ‘‘producers

on the farm’’ the statute does not itself

specify that the calculation of

production history will be limited to

what the producer produced on a

particular farm. There is a chance for a

windfall with a different interpretation

in that if a farmer produced soybeans for

1997 and 1998 on two different farms in

rotation or otherwise, that farm would

be able to receive a double benefit if the

producer could qualify for benefits for

each farm separately. Such a doubling of

benefit would be to the detriment of

other soybean producers who are to

share in the finite amount of money

available for the program, including

those that maybe have grown an equal

amount of soybeans in 1997 and 1998

but did so on the same ‘‘farm.’’

Also, with respect to yields for new

producers of oilseeds other than

soybeans, the statute does call for using

a county average yield if the producer

cannot prove a higher yield. However,

because county data for these other

oilseeds is limited, so as to raise doubts

about its reliability, national average

data will be considered to establish the

county yield for these oilseeds unless

there is adequate proof of a county yield

to the contrary, as determined by the

local county committee with State

Committee approval.

Also, this rule contains a special rule

with respect to powers of attorney. In

those instances in which, prior to the

issuance of this regulation, a producer

has signed a power of attorney on an

approved FSA form FSA–211 for a

person or entity indicating that such

power shall extend to ‘‘all above

programs’’, without limitation, such

power will be considered to extend to

this program unless within 14 days of

the issuance of this regulation the

person granting the power shall notify

the local FSA office that the grantee of

the power is not authorized to handle

transactions for this program for the

grantor. This will allow payments to be

36554 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

made quickly and efficiently while also

allowing a mechanism for the grantor of

the power to make program decisions

directly.

3. 7 CFR Part 1427—Cottonseed

Payment and Extra Long Staple Cotton

Competitiveness Payment Programs and

Definition of Base Quality for Upland

Cotton

A. Cottonseed Market Assistance

Section 104(a) of Pub. L. 106–113

provides authority for the Secretary to

provide assistance to producers or first

handlers of the 1999 crop of cottonseed.

This authority is being used to

implement a new program because of

the continuing low prices of cottonseed

that, in some cases, have been passed

along to cotton producers in the form of

increased ginning fees. Specifically, in

Pub. L. 106–113, Congress provided that

of the funds made available under § 802

of Pub. L. 106–78 that were not

otherwise needed to fully implement

that section, the Secretary may use up

to $4.7 million to carry out title IX of

Pub. L. 106–78. Further, however,

Congress provided that of the funds

made available under § 802 of Pub. L.

106–78 (excluding any funds authorized

by to carry out title IX of Pub. L. 106–

78) and under § 1111 of Pub. L. 105–277

not otherwise needed to fully

implement those sections, the Secretary

may provide assistance to producers or

first-handlers for the 1999 crop of

cottonseed. Both of those sections

provided for market loss assistance

through the making of supplemental

payments to person with contracts

under the Production Flexibility

Contract program operated by the

Department. Finally, in this respect the

Congress provided that if any funds

remained, the Secretary could use the

funds to provide for a new program for

extra long staple cotton, which is

addressed later in this rule.

Consistent with the legislation,

funding for the cottonseed program is

provided from a portion of the residual

funds authorized for Pub. L. 106–78 and

Pub. L. 105–277. Because outlays for

this program will be limited to a fixed

amount, all payments will be made only

after the total eligible quantity of

cottonseed can be determined from

approved applications.

The major provisions of this program

are as follows. CCC will announce an

application period during which U.S.

cotton gins may apply for cottonseed

payments based on the number of bales

of cotton and weight of lint ginned from

the 1999 cotton crop.

At the close of the application period,

based on the number of bales for which

payment is requested, CCC will estimate

the total national quantity of cottonseed

for payment. The payment rate per ton

of cottonseed and payments to

applicants will then be determined

based on total available program funds.

The resulting payments to cotton gins

will not be subject to any per-person

payment limitation. Applicants must

agree to share any payment received

with the producer of the cotton that was

the basis of the payment to the extent

that the effect of low cottonseed prices

was borne by the producer rather than

the gin. To the extent such funds will

go to individual producers, those funds

will be considered to have been

received by the applicant on behalf of

such producers. The recourse for

producers dissatisfied with the

distribution by the gin will be to make

use of whatever private civil remedies

they may possess against the gin. This

distribution has been settled upon in

light of the impossibility of making

timely, reasonable, and effective

individual determinations for each gin

and each bale of cotton as to how the

effect of cottonseed prices was actually

distributed. This is consistent with the

precise wording of the statute, which

appears to contemplate a distribution to

gins alone. In that regard, the statute

allows for payments to gins ‘‘or’’

producers, rather than to gins ‘‘and’’

producers.

B. Extra Long Staple Cotton

Competitiveness Payment Program

As indicated above, Congress

authorized the use of a particular source

of funds for a cottonseed program and

allowed any remaining funds to be used

for a new program for extra long staple

cotton. Specifically, within those limits,

Congress provided for this new program

by adding a new section, 136A, to the

Agricultural Market Transition Act.

That new section specifies that, within

funding limits, notwithstanding any

other provision of law, during the

period beginning October 1, 1999, and

ending July 31, 2003, the Secretary shall

carry out a program to maintain and

expand the domestic use of extra long

staple cotton produced in the United

States, to increase exports of extra long

staple cotton produced in the United

States, and to ensure that extra long

staple cotton produced in the United

States remains competitive in world

markets. Under the program, the statute

provides, the Secretary shall make

payments available whenever (1) for a

consecutive 4-week period, the world

market price for the lowest priced

competing growth of extra long staple

cotton (adjusted to United States quality

and location and for other factors

affecting the competitiveness of such

cotton), as determined by the Secretary,

is below the prevailing United States

price for a competing growth of extra

long staple cotton; and (2) the lowestpriced competing growth of extra long

staple cotton (adjusted to United States

quality and location), as determined by

the Secretary, is less than 134 percent of

the loan rate for extra long staple cotton.

Further, § 136 provides that the

Secretary shall make payments available

under this section to domestic users of

extra long staple cotton produced in the

United States and exporters of extra

long staple cotton produced in the

United States who enter into an

agreement with CCC to participate in

the program. Payments are, by the

statute, to be based on the amount of the

difference in the prices as determined

for the last week of the qualifying period

multiplied by the amount of

documented purchases by domestic

users and sales for export by exporters

made in the week following such 4-

week period. Finally, the statute

provides payments shall be made

through the issuance of cash or

marketing certificates, at the option of

eligible recipients of the payments. As

set out in the statute and as

implemented in the regulations

provided for in this rule, the program is

designed so that payments would trigger

in response to a deterioration in the

competitive position of U.S.-grown ELS

cotton in relation to foreign ELS cotton

growths. If non-U.S. prices move

sufficiently lower, or if U.S. spot prices

move sufficiently higher, payments to

exporters of U.S.-grown ELS cotton

would be triggered after four weeks

during which the U.S. spot price for a

specific quality of ELS cotton exceeds

the lowest adjusted foreign price

quotation for a comparable quality.

Exporters then would receive the

payment on every eligible bale shipped

while the program is triggered. U.S.

domestic mills also would receive the

payment on every eligible bale of U.S.-

grown ELS cotton opened during that

time.

C. Definition of Base Quality for Upland

Cotton

A base quality for upland cotton must

be defined so that a bale of upland

cotton showing any deviation from the

base quality may be properly valued for

purpose of determining a loan rate

under the marketing assistance loan

program for upland cotton. In an effort

to improve the quality of American raw

cotton for spinning, the cotton industry

recommended a redefinition of base

fiber strength and the introduction of

the length uniformity percentage for

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36555

purposes of the marketing loan. The

regulation at 7 CFR 1427.25 is being

revised to conform to the schedule of

loan premiums and discounts for the

2000 crop. Beginning August 1, 2000,

the definition of base strength will be

changed and a definition of base length

uniformity will be introduced. The

changes bring the regulation and the

loan schedule back into balance,

reestablishing the base quality at zero

premium/discount so that no additional

program cost will result.

4. 7 CFR Part 1439—Emergency

Livestock Assistance

A. Pasture Recovery Program

Section 805 of Pub. L. 106–78

provides that the Secretary shall use

$325 million of CCC funds to provide

assistance directly to livestock and dairy

producers, in a manner determined

appropriate by the Secretary, to

compensate the producers for economic

losses incurred during 1999. Further, in

§ 825 of the same legislation Congress

provided that of the funds provided in

§§ 801 and 805 of that Act, no less than

$200 million in assistance would be

required to be made in the form of

assistance to livestock producers for

losses due to drought or other natural

disasters. In § 801 of that Act, Congress,

without limitation to particular kinds of

production, authorized the use of $1.2

billion in Commodity Credit

Corporation funds to make emergency

financial assistance available to

producers on farms that have incurred

losses in a 1999 crop due to a disaster,

as determined by the Secretary. Pub. L.

106–113 appropriated an additional

$186 million to the sum provided for in

§ 801 of Pub. L. 106–113.

Pursuant to the authority contained in

Pub. L. No. 106–78, new Livestock

Indemnity and Livestock Assistance

Programs for losses incurred during

1999 were provided for in an omnibus

rule published on February 16, 2000 (65

FR 7942).

However, it has been further decided

that additional relief should be provided

for livestock interests under the

authority contained in Pub. L. 106–78.

To that end, this rule uses the

authorities set forth above to provide for

a new Pasture Recovery Program (PRP)

that is to be included in 7 CFR part 1439

and will provide payments to owners

and operators of pasture land on which

livestock is normally grazed who

suffered pasture losses due to drought

during calendar year 1999. Eligible

producers must agree to reestablish the

forage crop and maintain the crop for

three full years after the calendar year

of installation. PRP payments will be

authorized only in counties determined

eligible for the most recent Livestock

Assistance Program and approved for

assistance for 1999 losses due to

drought under the Emergency

Conservation Program that is provided

for in 7 CFR part 701. For the land to

be eligible, it must be established

pasture land on which livestock is

normally grazed but that was so

damaged or destroyed by drought or

related conditions that seeding is

required to reestablish a cover. Hayland

and rangeland will not be eligible, nor

will land operated by the Federal or a

State Government or a political

subdivisions of a State. To be an eligible

recipient of program benefits, the

applicant must be an owner or operator

of eligible land damaged or destroyed in

1999 who normally grazes livestock on

such land and such applicant must be

the person who will restore and

maintain the property for three full

years after the calendar year of

installation.

All conditions must be satisfied if a

person is to be eligible for a PRP

payment. For example, if an owner

leases pasture land to an operator for

grazing the operator’s livestock, then the

operator is eligible for a PRP payment

only if the operator reestablishes the

forage crop on the leased pasture land

and has a lease and the equipment

necessary to maintain the forage crop for

one full year after the calendar year of

installation. If an owner leases pasture

land to an operator who normally grazes

the operator’s livestock but the owner

agrees to reestablish the forage crop on

the pasture land, then neither the

operator nor the owner are eligible for

PRP benefits because neither can meet

all of the eligibility requirements. The

owner is ineligible because the owner

does not normally graze livestock on the

pasture land, and the operator is

ineligible because the operator did not

reestablish the forage crop on the

pasture land. Other restrictions will

apply as well in the administration of

the program. Among them, the land

must be in a county that was approved

for participation in the 1999 Livestock

Assistance Program (LAP), which was

provided for by a rule published on

February 16, 2000, and that county must

have had a 120-day payment period for

purposes of the 1999 LAP. Further, the

county in which the land is located

must be a county that, based on 1999

drought-induced losses, was approved

for participation in the Emergency

Conservation Program (ECP) by virtue of

an application submitted prior to March

1, 2000. The ECP is provided for in 7

CFR part 701.

This program will be subject to the

general provisions for emergency

livestock assistance programs found in

what will now be Subpart A of part

1439. That subpart is republished in this

rule. That subpart provides for

limitations on payments that are

effectively adopted in this rule by not

exempting the PRP from those

provisions. In addition limits on

payments are provided in the rules

themselves.

Accordingly, and in order to

efficiently maximize the use of program

funds for those farmers most in need of

relief, this new program, like others in

part 1439, will not be available to a

person whose annual gross revenue is in

excess of $2.5 million. Further,

however, benefits are limited to $2,500

per ‘‘person’’ determined according to

the ‘‘person’’ determination regulations

at 7 CFR part 1400 applicable to a

number of other USDA programs.

In order to receive payments,

applicants will be required to certify

that pasture land to be enrolled in the

PRP was so damaged or destroyed by

drought or related conditions during

calendar year 1999 that seeding is

required to reestablish the forage crop.

State Farm Service Agency (FSA)

committees will establish per-acre

payment rates equal to 50 percent of the

eligible area’s average cost of

reestablishing the approved forage crop

on eligible pasture land not to exceed

$75 per acre. The FSA Deputy

Administrator for Farm Programs may

approve higher per-acre payment rates

not to exceed $125 per acre. In no case

will per-acre payment rates exceed $125

per acre. Seeding and related fertilizing

requirements will be required to be

carried out according to standards for

agronomic practices and applicable

environmental laws and regulations.

Payments may be issued upon

certification by the participant that

approved practices to reestablish the

forage crop have been completed.

Certifications are subject to spot check

by FSA.

Signup periods for this new program

will be announced by CCC, but are

expected to be conducted no later than

the spring 2000 planting season for

affected regions. It is expected that all

seeding will be required to be

completed in calendar year 2000 by a

date announced by CCC. Because this

new program is operated under

authority contained in Pub. L. 106–78,

it is subject to the exemptions from

rulemaking and from the Paperwork

Reduction Act that are contained in

Pub. L. 106–78.

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B. Livestock Indemnity Program for

Contract Growers

Title I of Pub. L. 106–113 provided an

additional $10 million for the livestock

assistance authorized by § 805 of Pub. L.

106–78 and specified that this

additional amount could be used to

provide assistance to persons who raise

livestock owned by other persons so as

to provide relief for income losses

sustained with respect to such livestock

during 1999, if the Secretary finds that

such losses are the result of natural

disasters. In order to make use of that

authority, a new subpart for 7 CFR part

1439 is provided for in this rule that

will establish regulations for such relief.

The new Livestock Indemnity Program

for Contract Growers (CG–LIP) would

provide benefits to eligible livestock

producers who, due to a natural disaster

in calendar year 1999, sustained a loss

of income handling livestock in which

they did not have an ownership interest.

The loss must have been suffered in an

area that was the subject of a

Presidential or Secretarial disaster

declaration. Producers in contiguous

counties that were not designated as a

disaster area are not eligible for benefits.

Eligible livestock for purposes of the

program are beef and dairy cattle, sheep,

goats, swine, poultry (including eggproducing poultry), equine animals

used for food or in the production of

food, and buffalo and beefalo when

maintained on the same basis as beef

cattle. Such livestock must have been

handled pursuant to a contract between

the producer and owner. Applications

for benefits must be submitted at the

local county FSA office by May 1, 2000,

or such other date as established by

CCC. Livestock producers must provide

adequate proof of loss and of the

corresponding reduction in income.

Subject to the availability of funds,

payments shall be made in an amount

determined by multiplying the national

payment rate for the livestock category

as determined by CCC by the qualifying

loss. If the claims exceed the allotted

funds, claims may be prorated or

otherwise adjusted to account for the

limited funds. For the same reasons as

for the new Pasture Recovery Program,

the $2.5 million gross revenue test will

apply, as will a $40,000 per-person

payment limit. FSA may, as needed,

reduce benefits to avoid duplication

with other programs and may exclude

those claimants who were related to, or

affiliated with the owners of the

livestock so as to limit the program to

those contract producers who were truly

separate from the owners of the

livestock and thus did not benefit

directly or indirectly from other

livestock programs, which were ownerfocused.

C. General Revision of 7 CFR Part 1439

This rule also finalizes other

amendments recently made to part

1439. In a final rule published on March

19, 1999 (64 FR 13497), part 1439 was

generally reorganized. Also, that rule

provided for a new LAP program.

Thereafter, an interim rule was

published on August 31, 1999 (64 FR

47358), which provided for a new Flood

Compensation Program (FCP). Likewise,

the FCP was codified in part 1439. That

rule was followed in turn by an interim

rule published on November 1, 1999 (64

FR 58766), which provided for a new

Livestock Indemnity Program. In the

meantime, as indicated, Pub. L. 106–78

was enacted, which allowed for new

relief for livestock interests and led to

a new rule published on February 16,

2000 (65 FR 7942) that updated the LIP

and LAP regulations so as to provide for

the new LIP and LAP provisions.

The March 19, 1999 rule reorganizing

part 1439 took into account the

existence of the regulations published

on November 27, 1998 (63 FR 65524),

creating, by an interim rule, the

American Indian Livestock Feed

Program (AILFP), but did not finalize

those regulations. Hence, prior to this

time, there have been three interim rules

pending for part 1439: (1) The AILFP

rule of November 27, 1998, (2) the FCP

rule of August 31, 1999, and (3) the LIP

rule of November 1, 1999. For all three

interim rules, the comment periods are

closed and those rules are made final in

this rule.

With respect to comments, none were

received for the LIP and FCP rules.

Accordingly, and on further review, no

changes were needed in those

regulations. For the AILFP two

comments were received. First, the

comments suggested that the benefits of

the AILFP should not be limited to

tribal-governed land but should include

non-dependent lands that are now held

by private persons but were formerly

reservation. The AILFP is a very limited

program with very limited funds. This

comment was not adopted in light of the

limited funds available and also because

the limitations contained in the program

reflected the sovereign-to-sovereign

nature of this special program. Also,

citing Executive Order No. 13804, § 3(b),

a comment suggested that the tribes be

compensated for their AILFP efforts.

This comment was not adopted because

the program is not a regulatory program

but a voluntary program to which the

Executive Order does not apply. Also,

however, on reviewing the rule, it was

determined that a definition of

‘‘dependent Indian community’’ should

be added. Under the interim rule, a

‘‘dependent Indian community’’ is one

of the categories of land that are

considered under the rule to be ‘‘tribal

governed land.’’ In this new rule, that

phrase would be defined to mean a

limited category of Indian lands that are

neither reservations nor allotments and

are found by FSA to be: (a) Land set

aside by the Federal Government for the

use of Indians as Indian land; and (b)

under Federal superintendence.

With respect to the FCP, as all claims

in that program are past claims, there

does not appear to be a good reason to

republish the regulations. Hence, they

are removed by this rule, though such

removal will not affect any past,

pending, or future claims under that

program. Also, with respect to the

AILFP regulations, a provision has been

added to § 1439.902 so that the

regulations for that program will, except

for the change noted above, be the same

as they were in substance despite the

reorganization of part 1439. Also, for

consolidation purposes, the LIP

regulations have been renumbered.

Conforming amendments to existing

rules have also been added as needed to

reflect the reorganization of part 1439.

The language dealing with the

application deadline for the 1999 LAP

program was changed because of

changed circumstances. Also at various

places in the regulations provisions

have been added to make explicit that

nothing in the regulations will require

expenditures for programs beyond that

which is deemed appropriate by CCC

with respect to overall funding levels,

taking into account statutory limits.

5. 7 CFR Part 1464—Assistance for

Losses of Certain Warehouse-Stored

Tobacco

Section 803 of Pub. L. 106–78

authorized the Secretary to use $328

million of CCC funds to make payments

to States with tobacco producers whose

1999 poundage quotas or acreage

allotments for tobacco were reduced

from 1998 crop year levels due to a drop

in the national marketing quote or

poundage quota for their kind of

tobacco. In addition, Pub. L. 106–78

made provision for a number of other

programs, which were implemented by

a final rule published in the Federal

Register on February 16 (65 FR 7942).

The provisions dealing with the $328

million for tobacco producers were

codified at 7 CFR Part 1464, Subpart C.

Those regulations call for the funds to

be distributed by the individual States

with qualifying persons. This follows

the language of § 803, which basically

calls for the distribution of the funds to

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36557

be made in the same way that state

trusts are making $5 billion available to

tobacco growers using the so-called

‘‘Phase II’’ funds made available by

tobacco companies.

Section 803(c) of Pub. L. 106–78

defines those persons who were eligible

to receive the tobacco payments as being

those persons who own or operate, or

produce tobacco on, a farm: (A) For

which the quantity of quota allotted to

the farm under part I of subtitle B of title

III of the Agricultural Adjustment Act of

1938 (7 U.S.C. 1311 et seq.) was reduced

from the 1998 crop year to the 1999 crop

year; and (B) that was used for the

production of tobacco during the 1998

or 1999 crop year. As for the

distribution of the funds and amounts,

§ 803 called for the funds to be

distributed in the same way as the

States were or are distributing the socalled ‘‘Phase II’’ funds made available

by tobacco companies to producers

through state trusts.

While Pub. L. 106–78 was being

considered there was a series of severe

weather conditions in the flue-cured

tobacco growing area of North Carolina.

In particular, there were three

hurricanes that hit in quick succession,

leading to widespread flooding in that

area. That flooding destroyed some

1999-crop tobacco that had been

delivered to warehouses for sale by

producers under the customary auction

warehouse system. Some of this tobacco

had not yet, however, been sold at

auction and producers still held the risk

of loss on that tobacco even though the

tobacco had been harvested and thus

was not eligible for coverage under the

normal crop loss programs run by the

Department.

Subsequently, Pub. L. 106–113,

provided an additional $2.8 million for

tobacco assistance authorized by

§ 803(c)(1) of Pub. L. 106–78 and

provided ‘‘that the definition of eligible

persons in § 803(c)(2) of Pub. L. 106–78

shall include producers who have

suffered quality or quantity losses due

to natural disasters on crops harvested

and placed in a warehouse and not

sold.’’ The quoted language constitutes

essentially the entirety of the statutory

provision.

Literally, the new language would

only seem to simply add an additional

amount to the $328 provided for in

§ 803 without, as such, changing the

distribution method called for in § 803,

and would seem to be limited to a

technical adjustment of the eligibility

definition contained in § 803(c)(3).

However, the intent of the language

seems clearly, instead, given the

background set forth above and other

factors, to provide relief to those fluecured producers who had tobacco that

was still theirs in the flooded

warehouses but that was lost. This

would follow from the nature of the

language adopted, from the timing of the

bill and from the amount allotted. The

original $328 million roughly

corresponded to a dollar per pound for

all tobacco that met the eligibility

criteria of the original legislation and

the additional $2.8 million corresponds

to roughly a dollar per pound for the

amount of producer tobacco that

internal Department assessments made

prior to the passage of Pub. L. 106–113

indicated had been lost in flue-cured

warehouses in North Carolina as the

result of the three hurricanes. Damage of

the kind covered by the legislation

appears to be limited to North Carolina.

Furthermore, simply adding to the

definition of 803(c)(3) would not seem

to be purposeful in and of itself if that

addition was not meant to indicate a

separate kind of payment, since,

presumably all of the persons who lost

tobacco in the warehouses during the

natural disaster were persons who

already met the definition in 803(c)(3).

Rather, the addition only appears to

make sense as a method of indicating a

separate form of recovery for producers

whose incomes for the tobaccos covered

by § 803 were reduced by the warehouse

disasters caused by the floods. Of the

tobaccos covered in § 803 (those which,

nationally, had reduced quotas or

allotment for 1999), the only tobacco

that appears to have had any sort of

widespread 1999-crop loss in

warehouses due to a natural disaster at

or near the time that Pub. L. 106–113

enacted was flue-cured tobacco.

In addition, there is a limited amount

of funds made available by Pub. L. 106–

113, and no payment formula is

specified. Accordingly there is some

discretion involved in deciding which

claims to honor and how the funds will

be distributed. Further, timely decision

must be made about the distribution of

the funds so that the universe of claims

can be determined and the funds

apportioned.

To that end, this rule provides for the

$2.8 million to be distributed directly by

the Department and provides that,

except as determined by the Deputy

Administrator for Farm Program of the

Farm Service Agency upon petition,

payable only on flue-cured tobacco and

only for those losses in North Carolina

as a result of the recent hurricanes.

Because material damage appears to be

limited to North Carolina, normal

signup will be limited to that State.

However, there are references in the rule

to the ability of persons to petition the

Deputy Administrator for relief so as to

provide the leeway necessary in the

event that there are meritorious

circumstances of which the Department

is not aware that were widespread and

that should be considered to assure that

all claims are reviewed. In all cases,

requests for relief must meet the

deadlines provided for in the

regulations that are published in this

rule.

6. 7 CFR Part 1479—Flood Assistance

for Harney County, Oregon

In Pub. L. No. 106–113 Congress also

provided that CCC could use up to $1.09

million of its funds to provide

emergency assistance to producers on

farms located in Harney County,

Oregon, who suffered flood-related crop

and forage losses in 1999 and several

previous years and are expected to

suffer continuing economic losses until

the flood waters recede. Congress

provided that any amounts made

available should be for such losses for

such years as determined appropriate by

the Secretary to compensate such

producers for hay, grain, and pasture

losses due to the floods and for related

economic losses.

General regulations for programs of

this type are provided for in 7 CFR part

1478, 1999 Crop Disaster Program,

published on February 16, 2000 (65 FR

7942), which was a new part intended

to allow for a single-year disaster

program in accordance with Pub. L.

106–7.

The regulations set out in this rule

will provide for Harney County, in a

new part, 7 CFR part 1479,

compensation to producers whose land

was not usable from January 1, 1999

through December 31, 1999. To be

eligible for benefits, producers in

Harney County, Oregon, must have

owned or leased land that was intended

to be used for crop or forage production

or grazing during crop year 1999, and

which was subject to flooding January 1,

1999, through December 31, 1999, and

for which it is determined that due to

flood-related losses, the land was unfit

for crop or forage production, or grazing,

at all times during CY 1999. Producers

will be required to certify that the

acreage was unable to be used due to

flooding. In the new program, no

‘‘person’’, as ‘‘person’’ is defined in the

applicable regulations, will be able to

receive over $40,000 in program

payments and no person can receive any

payment if that person’s gross revenue

for 1998 was in excess of $2.5 million.

These limits will also insure the most

efficient use of funds for the producers

most in need. The applicant must be the

owner or lessee of the affected property

under a binding lease during the 1999

36558 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

crop year, and must still be the owner

or lessee of the land. Other restrictions

apply as well, including a requirement

that the land must have been unusable

for at least one other crop year in the

years 1994 though 1998, and must be

land that actually produced a crop, or

that was actually used for pasture, on or

after 1990.

Unadjusted payment rates will be

based on the average local rental rates

for crop land and pasture land, using,

where possible, 5-year data of the

National Agricultural Statistics Service.

Cost-Benefit Assessment

Summary

Outlays under the programs

implemented by this rule will total

approximately $616.5 million, of which

approximately $604 million will be

direct payments to producers. The

outlays for the Livestock Indemnity

Program and the American Indian

Livestock Feed Program, totaling $15.5

million, have, for the most part already

been made, and therefore do not

represent a new funding commitment.

The table summarizes the outlays and

the discussion following summarizes

the Cost/Benefit Assessments for each

program.

SUMMARY OF OUTLAYS

Program Outlays

Oilseeds Program ......................... 1 462.6

Cottonseed Payment Program ..... 74.0

ELS Cotton Competitiveness Program .......................................... 2 6.0

Pasture Recovery Program .......... 3 40.0

Livestock Indemnity Program for

Contract Growers ...................... 42.0

Finalization of Existing Livestock

Regulations ............................... 5 15.5

Warehouse-Stored Tobacco Assistance ..................................... 2.8

Harney Co., Ore. Emergency Assistance ..................................... 1.09

Total ....................................... 603.99

1After administrative expenses of approximately $12.4 million. 2Total of actual outlays up to May 4, 2000

and maximum expected outlays through September 30, 2000. 3 Reallocated from funding previously attributed to the 1999 Crop Disaster Program. 4After administrative expenses of approximately $100,000. 5 Includes $3 million for LIP in FY 1999 and

$12.5 million for AILFP for FY’s 1997 and subsequent years.

1999 Oilseed Market Loss Assistance

Program

U.S. oilseed producers are

experiencing serious financial hardship

as a result of low oilseed prices. The

farm-level market value of oilseed

production has dropped substantially

since the mid-1990’s. In fact, the farm

value of the 1999 U.S. oilseed crop was

down an estimated $5 billion, or 27

percent from the previous 5-year high

set in 1996, despite a 12-percent

increase in production. Some producers

have also had their financial problems

exacerbated by isolated weather

problems that reduced their 1999

production.

Section 804 of Pub. L. 106–78

authorized the use of $475 million in

Commodity Credit Corporation funds to

assist oilseed producers suffering from

reduced farm income as a result of large

supplies and low prices. To be eligible

for payments from these funds, a

producer must have produced an

oilseed in 1999 that is eligible to obtain

a marketing assistance loan under § 131

of the Agricultural Market Transition

Act (7 U.S.C. 7231). These oilseeds

include: soybeans, safflower seed,

canola, rapeseed, mustard seed,

sunflower seed, flaxseed, and crambe.

The payment rate determined by the

Secretary must consider the number of

eligible payment acres and payment

yields as well as the fixed amount of

Commodity Credit Corporation funds

authorized by Congress for the Oilseed

Program. Section 822 of Pub. L. 106–78

provides that the Secretary may reserve

up to $56 million of the amounts made

available under subtitle A to cover

administrative costs incurred by the

Farm Service Agency directly related to

carrying out that subtitle. For the

Oilseed Program the authorized amount

of $475 million will be reduced by

approximately $12.4 million to cover

administrative costs. After accounting

for administrative costs, direct

payments to producers under the

Oilseed Program are expected to total

approximately $462.6 million. Of this

total about $442.7 million (96 percent)

is expected to go to soybean producers.

The remaining $19.9 million will be

split among the producers of the other

minor oilseeds eligible for marketing

assistance. Payments to producers of

those oilseed are estimated to be $13.2

million for sunflower seed producers,

$3.8 million for canola producers, $1.7

million for safflower producers,

$938,923 for flaxseed producers,

$172,471 for mustard seed producers,

$112,990 for crambe producers, and

$16,260 for rapeseed producers. Because

assistance will be in the form of direct

payments, the program is expected to

result in a dollar-for-dollar increase in

farm income for oilseed producers.

Pre-enrollment estimates of per-unit

payment rates are expected to be highest

for safflower seed and mustard seed at

34 and 31 cents per hundredweight

(cwt.), respectively. The lowest per unit

rate is expected to be for flaxseed at 22

cents per cwt. (12 cents per bushel). The

pre-enrollment estimate for the soybean

payment rate is 24 cents per cwt. (14

cents per bushel). On a per-acre basis,

the safflower seed payment will be

highest among the various crops at

$6.13 per acre. The pre-enrollment

payment for soybeans is estimated at

$5.92 per acre. For the remaining

oilseeds, pre-enrollment estimates

indicate that per-acre payments will

range from a low of $2.55 for flaxseed

to a high of $3.69 for rapeseed.

Cottonseed Market Loss Assistance

The cottonseed support payment

program is designed to provide

payments to cotton ginners in response

to a severe decline in the price of

cottonseed in the 1999 crop year.

Throughout the Cotton Belt, in most

years, the value of the cottonseed that is

the by-product of the ginning process

has been accepted by cotton ginners as

payment in full for the cost of ginning

seed cotton. Unless they are members of

a co-operative gin (many are) or they

own or are partners in a gin, farmers do

not secure any benefit from the seed

other than to have their ginning costs

canceled.

This season, the average price of

cottonseed has dropped by about $48

per ton (37 percent) from the average

level received last year, and about $36

per ton (31 percent) from the average of

1994 through 1998. In the 1999 season,

cottonseed prices in many parts of the

Cotton Belt do not cover the cost of

ginning.

Cottonseed prices this season equate

to about $34 worth of seed per bale of

cotton lint produced, on a national

average. The national average ginning

cost for 1999 is estimated at $46 per

bale. Thus, the national average value of

cottonseed falls about $12 short of the

cost of ginning a bale of cotton. That is

the equivalent of about 2.5 cents per

pound of lint. For ginning services,

some farmers are being asked to pay in

cash to the ginner an additional 2 or 3

cents per pound of cotton lint beyond

the value of the seed, while, in other

cases, ginners are holding ginning bills

until they see how this payment

program will be implemented.

The most viable option to assist

cotton producers is a direct payment

program in which payments are made to

ginners. There are between 1,000 and

1,100 gins in the United States. About

25 percent of those are co-operatives.

Another 50 percent are owned as

corporations by farmers who gin their

own and their neighbors’ cotton. About

25 percent are independent gins.

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36559

Thus, farmers have a direct interest in

about 75 percent of the gins and can be

expected to receive nearly the full

benefit of payments made to the gins. In

the other 25 percent of gins where

farmers do not directly operate or share

in the ownership of the gins, farmers

still may be expected to receive a

substantial portion of the program

benefits because the gins may have held

the ginning bills pending the

implementation of this program, the

gins may rebate to farmers any ginning

bill already paid, or competition among

gins may dictate that any payments

beyond those needed to cover the

shortfall in seed prices will be rebated

to the gins customers.

Funding for this program is provided

from a portion of the residual funds

authorized for Pub. L. 106–78 and Pub.

L. 105–277. Approximately $74 million

of those funds will be available for

cottonseed payments for crop year 1999.

This will allow payments of

approximately $4 per bale of lint, or

about 1 cent per lb.

Extra Long Staple Cotton

Competitiveness Program

The program is designed so that

payments trigger in response to a

reduction in other world prices, as

specified in the legislation. In the period

since October 1, 1999, were triggered

only during the period April 4, 2000,

through May 2, 2000.

It is not possible to predict whether

there will be further reductions in

foreign prices, nor how large they will

be, nor how long they will last. There

would be no theoretical maximum

payment rate. However, during the 6-

week period April 4, 2000, through May

2, 2000, in which payments were

triggered, outlays were less than $1

million. For the remainder of FY 2000

(mid-May through September), the

program could incur from $3 million to

$5 million in outlays if there is no

drastic change in price relationships

currently being observed and if it

operates every week until September 30.

It is projected that ELS

competitiveness payments could

increase domestic use of American Pima

cotton by about 5,000 bales (about 3

percent) per year and exports by 25,000

bales (about 6 percent) per year. This

increase in disappearance could add

about 2 cents to the average price of

American Pima and reduce net lending

costs to CCC by about $25 million. Farm

receipts would rise by about $4 million

for the 1999 crop.

Funding for this program is provided

from a portion of the residual funds

authorized for Pub. L. 106–78 and Pub.

L. 105–277. Approximately $10 million

of those funds will be available for the

ELS Cotton Competitiveness Payment

Program.

Pasture Recovery Program

Weather-related disasters in calendar

year 1999 exacerbated the financial

crisis affecting the Nation’s agricultural

sector. Prolonged drought,

predominantly in the Mid-Atlantic and

Northeastern United States, left

livestock producers with destroyed or

severely damaged pasture. The purpose

of the Pasture Recovery Program (PRP)

is to provide payments to owners and

operators of pasture who suffered

pasture losses due to drought in 1999

and who reestablish the forage crop on

their pastures.

Funds to reestablish pasture damaged

by drought will be allocated from funds

provided for crop and livestock loss

assistance under Pub. L. 106–78 and

Pub. L. 106–113 that otherwise would

be committed to the Crop Disaster

Program, the Livestock Assistance

Program, or the Livestock Indemnity

Program.

PRP payments will be authorized only

in counties determined eligible for the

Livestock Assistance Program and

approved for the Emergency

Conservation Program. As of midJanuary, 2000, about 400 counties met

both of these requirements and about

30,000 producers had applied for the

1999 LAP. The funding level of $40

million will be met if slightly more than

half of the 30,000 eligible producers

receive the maximum payment of

$2,500 per person. To be eligible, land

must be established pasture land on

which livestock are normally grazed and

that was so damaged by drought that

seeding is required to reestablish a cover

crop. Neither hay land nor rangeland is

eligible.

Payment rates per acre will equal 50

percent of the eligible area’s average

cost of reestablishing the approved

forage crop and are not to exceed $125

per acre. FSA’s Deputy Administrator

for Farm Programs must approve

payment rates above $75 per acre.

The cost to reestablish pastures is

estimated to be between $100 and $250

per acre, depending on the tillage and

fertilization rates required. Most are

expected to fall between $100 and $150

per acre, which will allow producers a

payment rate of $50-$75 per acre. At an

average payment rate of $62.50 per acre

and subject to the $2,500 limitation

producers could reestablish pasture on

a maximum of 40 acres.

The Pasture Recovery Program will

provide benefits to livestock producers

who graze animals on land that has been

damaged by drought. It will partially

offset the cost of reestablishing a forage

crop where cover has been destroyed,

which will provide some reduction in

soil erosion due to wind and water.

Funding for the program will provide

payments for livestock producers who

have suffered losses due to drought.

Payments will be reduced for some

producers in some programs in order to

provide payments under PRP. Some

funding will be shifted from crop

programs to livestock producers and

some will be shifted from other

livestock producers to those using

pastures affected by drought.

Livestock Indemnity Program for

Contract Growers

Contract livestock growers are eligible

for assistance through the Livestock

Indemnity Program for Contract

Growers (CG–LIP) if livestock or poultry

lost on the farm exceeds normal

nationally-determined mortality rates,

and if the livestock or poultry lost were

on a farm in a region affected by a

natural disaster between January 1,

1999, and December 31, 1999.

The CG–LIP program will be

administered in a manner similar to the

1999 LIP program for livestock owners.

However, owing to the differing

financial interests between the owners

of livestock and poultry and contract

growers of the lost livestock and

poultry, payment rates will need to be

adjusted to reflect the losses suffered by

the contract growers. Generally,

payment rates per animal lost for

contract growers are expected to be less

than for the livestock and poultry

owners, reflecting the smaller peranimal investment (and loss) by contract

growers. Contract growers will be paid

on those losses exceeding normal

mortality. Based on the numbers of

livestock lost, claims are expected to be

approximately $2 million, well short of

the $10 million available. Consequently,

it is unlikely that payments will be

factored. On a sectoral basis, the

payments represent a small fraction of

the total value of livestock production.

However, for those contract growers

who actually suffered the losses, the

impact on their equity and cash flow

positions is significant. Indemnity

payments will assist contract growers

affected by the disaster in meeting their

financial obligations for inputs used in

the production of the lost livestock and

poultry, replace lost income, and to

service debt. It is assumed, in part as a

result of the CG-LIP, that contract

producers affected by the disaster would

remain in business and rebuild their

contract growing operations to their

previous size.

36560 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

Finalization of Existing Regulations for

the Livestock Indemnity Program and

American Indian Livestock Feed

Program

The Livestock Indemnity Program

(LIP) provides financial assistance to

livestock producers who suffered

significant financial losses due to

natural disasters between May 2, 1998,

and May 21, 1999. The impact of the

indemnity payments on livestock and

milk market prices and consumers is not

expected to be measurable. Farm

income was expected to be $3 million

higher, equaling the amount of

indemnity payments. Federal outlays

would also increase by the indemnity

payment of $3 million.

For those producers who actually

suffered the losses, the impact on their

equity and cash flow positions is

significant. Indemnity payments assist

producers affected by the disaster in

meeting their financial obligations for

inputs used in the production of the lost

livestock and to replace breeding stock.

It is assumed, in part as a result of LIP,

that producers affected by the disaster

would remain in business and rebuild

their foundation herds to their previous

size.

The American Indian Livestock Feed

Program (AILFP) provides assistance to

eligible livestock producers who have

suffered significant loss of livestock feed

production for 1997 and subsequent

years. Theses funds will help eligible

producers to meet financial obligations

against feed stocks purchased to

maintain livestock as a result of lost

feed production. It is expected that up

to 45,000 livestock producers will

receive assistance and be able to

maintain their herds. The impact of the

program on livestock and feed prices is

not expected to be measurable.

Aggregate American Indian farm income

losses will be somewhat reduced by

AILFP payments. Federal outlays for the

1997 and subsequent crop years might

total around $12.5 million, which will

be funded from the Feed Grain Disaster

Reserve.

Warehouse-Stored Tobacco Loss

Assistance

During the late summer and early fall

of 1999, three major hurricanes dropped

an unprecedented amount of rain in

North Carolina. A substantial amount of

warehouse-stored tobacco was

destroyed in the flooding that resulted.

Some producers, because they had

placed their tobacco in warehouses and

it had not been sold, suffered flood

losses to that tobacco. However, because

the tobacco had been harvested and

placed in a warehouse, those producers

were not eligible for disaster assistance

under FSA’s normal crop-loss programs

and the producers therefore incurred the

entire financial burden of the loss. Pub.

L. 106–113 appropriated an additional

$2.8 million to the assistance authorized

by § 803 of Pub. L. 106–78, which

authorized the Secretary to use $328

million of CCC funds to make payments

to States for the reduction of quota or

acreage allotted farms from the 1998

crop year to the 1999 crop year,

provided that producers who suffered

quality or quantity losses due to natural

disasters on crops harvested and placed

in a warehouse and not sold shall also

be eligible.

The $2.8 million will assist quota

holders and growers to roughly defray

production costs for crops lost in crop

year 1999 due to the flooding in auction

warehouses. The Tobacco Disaster

Assistance Program (TDAP) will pay

producers approximately $1 for each

pound of unsold 1999-crop tobacco lost

to warehouses flooded by the

hurricanes. Due to program provisions,

producers may carry these unmarketed

pounds over to crop year 2000.

Most tobacco operations are small

family-owned affairs. The tobacco

program run by the U.S. Department of

Agriculture, along with topological

limitations, limit the size of the typical

farm and substitutability of competing

crops. Accordingly, there currently may

be few alternatives for tobacco. With no

crop alternatives and little

diversification in tobacco-growing

regions, cash from the tobacco crop is

vital to these producers. To the extent

that the $2.8 million payment to

producers and quota-holders defrays

tobacco production costs, the TDAP

enhances solvency. The production

short-fall caused by the flooding is

expected to be made up in the following

year. In the short-term, the cost to the

government roughly equals the benefits

to the producers. In the longer term, to

the extent that these disaster payments

protect producers from bankruptcy,

there is a net benefit.

Flood Assistance for Harney County,

Oregon

Pub. L. 106–113 provides that the

Secretary may use no more than $1.09

million for disaster assistance to Harney

County. High precipitation during the

winter of 1998 and 1999 led to flooding

in the areas around Harney Lake and

Malheur Lake in Harney County,

Oregon. Heavy flooding began in

February 1999 and continued until June

when snow pack runoff slowed.

Such flooding can change the basic

character of the land and render the

land ineligible for other benefits or for

enrollment in programs like the

Conservation Reserve Program (CRP).

Generalized conditions of that sort can

produce tertiary effects in the local

community and accordingly, problems

such as those in Harney County have

been the source of considerable

attention and concern with respect to

the exercise of discretionary authorities

that may be available to the Secretary of

Agriculture.

The impact on ranches in Harney

County has been a loss of approximately

43,000 acres of pasture, 11,000 acres of

native grass hay, 200 acres of alfalfa hay,

and 200 acres of barley that were

prevented from being planted.

Approximately forty producers in

Harney County are expected to be

eligible for the program. Assistance

therefore will average about $25,000

each if total claims meet or exceed $1.09

million. The expected average is well

below the per-person payment limit of

$40,000. Assistance will be in addition

to assistance provided under other FSA

programs.

For further information, the following

individuals may be contacted regarding

the different parts of the Cost/Benefit

Assessment:

Livestock and Pasture Recovery—Dan

Colacicco, 202–720–6733

Cotton—Wayne Bjorlie, 202–720–7954

Cottonseed—Gene Rosera, 202–720–

8481

Harney County, Oregon—Brad Karmen,

202–720–4635

Oilseeds—Phil Sronce, 202–720–2711

Tobacco—Dan Stevens, 202–720–5291

List of Subjects

Part 1400

Agriculture, Grant programs—

agriculture, Loan programs—agriculture,

Price support programs, Reporting and

recordkeeping requirements.

Part 1411

Oilseeds, Production Flexibility

Contracts.

Part 1427

Cotton, Cottonseed, Loan programs/

agriculture, Price support programs,

Reporting and recordkeeping

requirements, Warehouses.

Part 1439

Animal feeds, Disaster assistance,

Livestock, Reporting and recordkeeping

requirements.

Part 1464

Imports, Loan programs—agriculture,

Price support programs, Reporting and

recordkeeping requirements, Tobacco.

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36561

Part 1479

Crop insurance, Disaster assistance,

Floods, Reporting and recordkeeping

requirements.

For the reasons set out in the

preamble, 7 CFR Chapter XIV is

amended as set forth below.

PART 1400—PAYMENT LIMITATION

AND PAYMENT ELIGIBILITY

1. The authority citation continues to

read as follows:

Authority: 7 U.S.C. 1308, 1308–1, and

1308–2; 16 U.S.C. 3834.

§ 1400.1 [Amended]

2. Amend the table in § 1400.1(g) by

adding a line to read, in the first

column, ‘‘Environmental Quality

Incentives Program (EQIP)’’, and, in the

second column, ‘‘10,000’’.

3. Amend § 1400.2 by redesignating

paragraphs (e) and (f) as (f) and (g),

respectively, and adding new

paragraphs (e) and (h) to read as follows:

§ 1400.2 Administration

* * * * *

(e) Benefits from programs subject to

this part may not be issued until all

required forms and necessary payment

eligibility and payment limitation

determinations are made.

* * * * *

(h) Reviews of farming operations and

corresponding documentation

submitted by program participants may

be conducted to determine compliance

with applicable statutes and regulations.

4. Add part 1411 to subchapter B of

7 CFR XIV to read as follows:

PART 1411—OILSEEDS PROGRAM

Subpart A—General Provisions

Sec.

1411.101 Applicability.

1411.102 Administration.

1411.103 Definitions.

1411.104 Misinformation and misaction.

1411.105 Appeals.

Subpart B—Eligibility Determinations

1411.201 Eligible producers.

1411.202 Violations, misrepresentation, or

scheme or device.

1411.203 Payment amount.

1411.204 Payment acreage.

1411.205 Payment yield.

Subpart C—Application for Payment

1411.301 Signup period.

1411.302 Submitting application.

1411.303 Late-filed acreage reports.

Subpart D—Miscellaneous

1411.401 Limitation of payments.

1411.402 Offsets and Assignments; Powers

of Attorney.

Authority: Sec. 804, Pub. L. 106–78, 113

Stat. 1178.

Subpart A—General Provisions

§ 1411.101 Applicability.

This part implements the oilseed

provisions enacted in section 804 of the

Agriculture, Rural Development, Food

and Drug Administration, and Related

Appropriations Act, 2000 (Public Law

106–78). That section provided funds to

allow for payments to producers who

planted eligible oilseeds in 1999 and

who meet other conditions of eligibility.

§ 1411.102 Administration.

(a) This part shall be administered by

CCC through the Farm Service Agency

Deputy Administrator for Farm

Programs under the general direction

and supervision of the Executive Vice

President, CCC. The program shall be

carried out in the field by State and

county committees of the Farm Service

Agency of the U.S. Department of

Agriculture.

(b) State and county committees, and

representatives and employees thereof,

do not have the authority to modify or

waive any of the provisions of the

regulations in this part, as amended or

supplemented.

(c) The State committee shall take any

action required by this part that has not

been taken by the county committee.

The State committee shall also:

(1) Correct, or require a county

committee to correct, any action taken

by such county committee that is not in

accordance with this part; or

(2) Require a county committee to

withhold taking any action that is not in

accordance with this part.

(d) No delegation in this section to a

State or county committee shall

preclude the Executive Vice President,

CCC, 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. The Deputy Administrator

may waive or modify deadlines or other

program requirements of this part to the

extent that such a waiver or

modification is otherwise permitted by

law and is determined to be appropriate

on the ground that it serves the goals of

the program or other goals, and does not

adversely affect the operation of the

program.

§ 1411.103 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the 1999

Oilseeds Program, and shall be used for

Oilseeds Program purposes only.

Definitions contained in parts 718 and

1412 of this title shall also apply but to

the extent that they conflict, the

definitions in this section govern with

respect to the Oilseeds Program in this

part.

Actual yield means an oilseed yield

certified by the producer on CCC–780,

and if subject to spot check,

documented by acceptable production

evidence provided by the producer for

all the producer’s planted acreage of the

oilseed for the year in which the yield

is proven. If subject to a certified yield

spot check, the producer must

document an actual yield on form FSA–

658 or present RMA documentation

indicating actual yields for all of the

producer’s planted acreage of the

oilseed for the year in which the yield

is proven.

Control county means the county that

for FSA administrative purposes will be

considered to be controlling for

purposes of making payment

determinations with respect to

particular applicants under the program

provided for in this part.

County average soybean yield means

an average yield approved by DAFP

using an Olympic average of the

county’s average soybean yield for each

of the crop years 1994 through 1998 as

determined by the State committee. To

the extent such data is available, data

from NASS shall be used.

DAFP means the Deputy

Administrator for Farm Programs, FSA.

Deputy Administrator means DAFP.

Eligible oilseed means one of the

following kinds of oilseeds: soybeans,

safflower seed, canola, rapeseed,

mustard seed, sunflower seed (oil and

confectionary), flaxseed, and crambe.

Established producer means a

producer who planted an oilseed for the

1999 crop year, and shared in the

production of that specific oilseed in

1997 or 1998.

National average oilseed yield means

the Olympic average yield for an eligible

oilseed using the National average

yields for the oilseed for the years 1994

through 1998. Such yields shall be

considered valid only if approved by

DAFP.

New producer means a producer who

planted an eligible oilseed for crop year

1999, but did not plant or share in the

production of that oilseed in 1997 or

1998. A producer may be a new

producer of one eligible oilseed, while

being an established producer for

another oilseed.

Oilseed Program Application means

form CCC–780.

Olympic average yield means the

average yield for the stated period, after

dropping the highest and lowest yields

of that period.

36562 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

RMA means the Risk Management

Agency of the United States Department

of Agriculture.

Sunflower seed acreage means the

total acreage planted to sunflower seed

on the farm in the applicable crop year

without regard to the type of market to

which the sunflower seed will be

committed, oil or confectionary use.

§ 1411.104 Misinformation and misaction.

The provisions of § 718.8 of this title

are applicable to this part, with respect

to performance based upon advice or

action of county or State committees.

§ 1411.105 Appeals.

A producer may obtain

reconsideration and review of any

adverse determination made under this

part in accordance with the appeal

regulations found at parts 11 and 780 of

this title.

Subpart B—Eligibility Determinations

§ 1411.201 Eligible producers.

(a) Section 804 of Public Law 106–78

authorizes the Secretary to make

payments to a producer who planted an

eligible oilseed in 1999. Accordingly,

producers of the 1999 crop of oilseeds

identified in § 1411.203 are eligible to

receive 1999 Oilseeds Program benefits,

providing the producer meets the

requirements of this part, and is in

compliance with part 12 of this title

regarding the conservation and

protection of highly erodible lands and

wetlands, and § 718.11 of this title

regarding denials of program benefits for

activities relating to the use of

controlled substances.

(b) Eligibility determinations made

under this part will be made for each

producer separately for each specific

eligible oilseed planted by that producer

in 1999. A producer is not eligible for

payment with respect to an oilseed that

the producer did not plant in 1999

regardless of whether the producer did

or did not plant that oilseed in 1997 or

1998.

§ 1411.202 Violations, misrepresentation,

or scheme or device.

Any person who is determined to

have intentionally misrepresented any

fact affecting a program determination

made in accordance with this part shall

not be entitled to oilseed payments

under this part and must refund all

payments, plus interest determined in

accordance with part 1403 of this

chapter (relating to debt settlement

polices and procedures).

§ 1411.203 Payment amount.

Subject to the availability of funds,

eligible persons can receive a payment

under this part. The payment amount

shall be equal to the payment rate

established under this part multiplied

by the producer’s payment acreage

multiplied, in turn, by the producer’s

payment yield. The payment rate shall

be determined by DAFP after the level

of program participation is known with

sufficient clarity to allow for the

calculation of the amount of payment

that can be made, by unit of production,

within the limits of the available funds.

To the extent practicable, separate

payment rates may be established for

separate eligible oilseeds. Payments can

be made only with respect to the

production of eligible oilseeds.

§ 1411.204 Payment acreage.

(a) The oilseed payment acreage for an

established producer shall, for a

particular oilseed, be the higher of the

two acreage amounts determined by

calculating, for the 1997 and 1998 crops

separately, the acreage determined to be

equal to the producer’s acreage for that

oilseed at all locations for that crop

year, adjusted to reflect interests that are

only partial interests in such acreage.

(b) The payment acreage for a new

producer of an eligible oilseed will be

the producer’s acreage for that oilseed

for the 1999 crop at all locations,

adjusted to reflect interests that are only

partial interests in such acreage.

(c) Acreage not planted to an oilseed

crop because of weather, or because of

crop rotation practices or other

management decisions, or because of

any other reason, shall not be treated as

qualifying production for determining a

person’s general eligibility for payment,

a person’s payment acreage, or for any

other reason under this part.

§ 1411.205 Payment yield.

(a) For purposes of making yield

determinations, under this part and for

purposes of this section in particular, a

producer’s ‘‘applicable average yield’’

shall be, with respect to soybeans, the

county average soybean yield. In the

case of other oilseeds, the ‘‘applicable

average yield’’ shall, for all persons

qualifying for payment, be the national

average oilseed yield for that oilseed.

National and county average yields may

be announced in advance of signup by

DAFP.

(b) A new producer’s payment yield

with respect to a particular eligible

oilseed shall be the higher of the:

(1) Applicable average yield for that

oilseed or

(2) Producer’s actual yield for the

1999 crop year.

(c) For established producers, the

producer’s payment yield for a

particular oilseed shall be the higher of:

(1) Applicable average yield; or

(2) The higher for the 1997 and 1998

crops of the producer’s actual yield

respectively for those crop years for all

acres of the oilseed planted by the

producer.

(d) In making determinations under

paragraph (c) of this section for

established producers, the choice of a

crop year history will not be limited to

the same history year chosen to set the

producer’s payment acres.

(e) Where actual yields are used for

purposes of establishing the producer’s

payment yields, the producer, if subject

to a yield spot check or otherwise asked

to do so, must document those actual

yields using form FSA–658 and must

establish those yields to the satisfaction

of the county committee.

(f) In making yield determinations,

the producer’s yields and payments may

be adjusted by DAFP and the county

and state committees, as necessary and

practicable to reflect instances in which

the producer has different yields at

different locations and to reflect partial

interests that the producer may have in

some acreages.

Subpart C—Application for Payment

§ 1411.301 Signup period.

A signup period shall be announced

by the Secretary. Late-filed applications

shall not be accepted so that DAFP may

establish, to the extent practicable, a

final payment rate that will limit total

payments to not more than the allocated

amount, which shall be, unless

determined otherwise by DAFP, $475

million minus such administrative

expenses as can be deducted by law and

minus such reserve as may be

determined needed to resolve disputes

and problematic claims.

§ 1411.302 Submitting application.

(a) Producers shall properly complete,

sign and file the application Form CCC–

780, and submit the application to the

Farm Service Agency during the signup

period.

(b) A separate CCC–780 is required for

each producer.

(c) For a producer to be considered to

have properly filed the application,

such applications must be filed by the

producer in the FSA county office

established as the control county for

that producer at the time of application.

§ 1411.303 Late-filed acreage reports.

Late-filed acreage reports may be

submitted for Oilseed Program purposes

no later than February 18, 2000, or as

determined by DAFP, provided that the

producer shall submit sufficient

documentation to verify the acreage to

the satisfaction of the county committee.

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36563

Subpart D—Miscellaneous

§ 1411.401 Limitation of payments.

(a) No more than the allotted funds

may be used for payments under this

part. However, no ‘‘per-person’’ limit on

payments shall apply nor shall there be

a gross revenue test as a condition of

payment for a person or entity.

(b) No person shall receive a payment

under this part except upon a properly

completed application properly

submitted to the Farm Service Agency

during the signup period announced by

the Secretary.

§ 1411.402 Offsets and assignments;

powers of attorney.

(a) Except as provided in paragraph

(b) of this section, any payment or

portion thereof to any person shall 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

found at part 1403 of this chapter shall

be applicable to contract payments.

(b) Any producer entitled to any

payment may assign any payments in

accordance with regulations governing

assignment of payment found at part

1404 of this chapter.

(c) In those instances in which, prior

to the issuance of this part, a producer

has signed a power of attorney on an

approved FSA–211 for a person or

entity indicating that such power shall

extend to ‘‘all above programs’’, without

limitation, such power will be

considered to extend to this program

unless by June 22, 2000 the person

granting the power notifies the local

FSA office for the control county that

the grantee of the power is not

authorized to handle transactions for

this program for the grantor.

PART 1427—COTTON

5. The authority citation for 7 CFR

part 1427 is revised to read as follows:

Authority: 7 U.S.C. 7231–7235–7237; 15

U.S.C. 714b and 714c; sec. 813 of Pub. L.

106–78, 113 Stat 1182; and sec. 104, Pub. L.

106–113.

6. In § 1427.25 revise paragraphs

(c)(1)(ii), (c)(2), (d)(1) introductory text,

(d)(2)(i), (d)(3)(ii), and (f)(2)(ii) to read as

follows:

§ 1427.25 Determination of the prevailing

world market price and the adjusted world

price for upland cotton.

* * * * *

(c) * * *

(1) * * *

(ii) The average price of M 13⁄32 inch,

leaf 3, (micronaire 3.5 through 3.6 and

4.3 through 4.9, strength 26.5 through

28.4 grams per tex, length uniformity 81

percent) cotton as quoted each Thursday

in the designated U.S. spot markets.

* * * * *

(2) The price determined in

accordance with paragraph (c)(1) of this

section shall be adjusted to reflect the

price of Strict Low Middling (SLM) 11⁄16

inch, leaf 4, (micronaire 3.5 through 3.6

and 4.3 through 4.9, strength 26.5

through 28.4 grams per tex, length

uniformity 81 percent) cotton (U.S. base

quality) by deducting the difference, as

announced by CCC, between the

applicable loan rate for a crop of upland

cotton for M 13⁄32 inch, leaf 3,

(micronaire 3.5 through 3.6 and 4.3

through 4.9, strength 26.5 through 28.4

grams per tex, length uniformity 81

percent) cotton and the loan rate for a

crop of upland cotton of the U.S. base

quality.

* * * * *

(d) * * *

(1) If the difference between the

average price quotations for the U.S.

Memphis territory and the California/

Arizona territory as quoted for M 13⁄32

inch cotton C.I.F. northern Europe and

the average price of M 13⁄32 inch, leaf 3,

(micronaire 3.5 through 3.6 and 4.3

through 4.9, strength 26.5 through 28.4

grams per tex, length uniformity 81

percent) cotton as quoted each Thursday

in the designated U.S. spot markets for

any week is:

* * * * *

(2) * * *

(i) May use the available northern

Europe quotation to determine the

difference between the average price

quotations for the U.S. Memphis

territory and the California/Arizona

territory as quoted for M 13⁄32 inch,

cotton C.I.F. northern Europe and the

average price of M 13⁄32 inch, leaf 3,

(micronaire 3.5 through 3.6 and 4.3

through 4.9, strength 26.5 through 28.4

grams per tex, length uniformity 81

percent) cotton as quoted each Thursday

in the designated U.S. spot markets for

that week, or

* * * * *

(3) * * *

(ii) the average price of M 13⁄32 inch,

leaf 3, (micronaire 3.5 through 3.6 and

4.3 through 4.9, strength 26.5 through

28.4 grams per tex, length uniformity 81

percent) cotton as quoted in the

designated U.S. spot markets, that week

will not be taken into consideration.

* * * * *

(f) * * *

(2) * * *

(ii) The difference between the

applicable loan rate for a crop of upland

cotton for M 13⁄32 inch, leaf 3,

(micronaire 3.5 through 3.6 and 4.3

through 4.9, strength 26.5 through 28.4

grams per tex, length uniformity 81

percent) cotton and the loan rate for a

crop of upland cotton for SLM 11⁄16

inch, leaf 4, (micronaire 3.5 through 3.6

and 4.3 through 4.9, strength 26.5

through 28.4 grams per tex, length

uniformity 81 percent) cotton.

* * * * *

7. Add subpart F to 7 CFR part 1427

to read as follows:

Subpart F—Cottonseed Payment

Program

Sec.

1427.1100 Applicability.

1427.1101 Administration.

1427.1102 Definitions.

1427.1103 Eligible cottonseed.

1427.1104 Eligible first handlers.

1427.1105 Payment application.

1427.1106 Total available program funds.

1427.1107 Applicant payment quantity.

1427.1108 Total payment quantity.

1427.1109 Payment Rate.

1427.1110 Payment calculation and form.

1427.1111 Liability of first handler.

§ 1427.1100 Applicability.

(a) The regulations in this subpart are

applicable to the 1999 crop of

cottonseed. These regulations set forth

the terms and conditions under which

the Commodity Credit Corporation

(CCC) shall provide payments to first

handlers who have applied to

participate in the cottonseed payment

program in accordance with section

104(a) of the Omnibus Consolidated

Appropriations Act, 2000 (Public Law

106–113). Additional terms and

conditions may be set forth in the

payment application that must be

executed by participants to receive

cottonseed payments.

(b) Payments shall be available only

for cottonseed produced and ginned in

the United States.

§ 1427.1101 Administration.

(a) The cottonseed payment program

shall be administered under the general

supervision of the Executive Vice

President, CCC (Administrator, FSA), or

a designee and shall be carried out by

FSA’s Kansas City Management Office

(KCMO) and Price Support Division

(PSD).

(b) The KCMO and PSD

representatives and employees thereof

do not have the authority to modify or

waive any of the provisions of the

regulations of this subpart.

(c) No provision or delegation herein

to KCMO or PSD shall preclude the

Executive Vice President, CCC, or a

36564 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

designee, from determining any

question arising under the program or

from reversing or modifying any

determination made by KCMO or PSD.

(d) The Executive Vice President,

CCC, or a designee, may authorize

KCMO or PSD to waive or modify

deadlines and other non-statutory

program requirements in cases where

lateness or failure to meet such other

requirements do not affect adversely the

operation of the cottonseed payment

program. The Executive Vice President

may suspend the program should cause

to do so appear as a result of a public

rulemaking or otherwise.

(e) A representative of CCC may

execute cottonseed payment program

applications and related documents

only under the terms and conditions

determined and announced by CCC.

(f) Payment applications and related

documents not executed in accordance

with the terms and conditions

determined and announced by CCC,

including any purported execution prior

to the date authorized by CCC, shall be

null and void.

(g) The Deputy Administrator for

Farm Programs, FSA, may waive or

modify non-statutory deadlines and

other non-statutory program

requirements in cases where lateness or

failure to meet such other program

requirements does not adversely affect

the operation of the cottonseed payment

program.

(h) This subpart shall be administered

only to the extent that it is determined

by the Executive Vice President, CCC,

that it is lawful and appropriate to

commit funds to the program from

sources specifically identified in the

authorizing legislation.

§ 1427.1102 Definitions.

The definitions set forth in this

section shall be applicable for purposes

of administering the 1999 cottonseed

payment program. The terms applied in

§§ 1427.3, 1427.52, and 1427.102 shall

be applicable to this subpart.

Cottonseed means the seed from any

variety of upland cotton and extra long

staple (ELS) cotton produced and

ginned in the United States.

Gin means a person (i.e., an

individual, partnership, association,

corporation, cooperative marketing

association, estate, trust, State or

political subdivision or agency thereof,

or other legal entity) that removes

cottonseed from cotton lint in

commercial quantities as determined by

CCC.

Number of bales means the absolute

number of ginned cotton bales based on

individual bale weights unadjusted to a

uniform bale weight.

Olympic average means the average

for the stated period after excluding the

highest and lowest values.

Ton means a unit of weight equal to

2,000 pounds avoirdupois (907.18

kilograms).

§ 1427.1103 Eligible cottonseed.

To be eligible for payments under this

subpart, cottonseed must:

(a) Have been grown in the United

States during the 1999-crop production

period.

(b) Have been ginned by the applicant

from 1999-crop cotton.

(c) Not have been destroyed or

damaged by fire, flood, or other events

such that its loss or damage was

compensated by other local, State, or

Federal government or private or public

insurance or disaster relief payments.

§ 1427.1104 Eligible first handlers.

(a) For the purpose of this subpart, an

eligible first handler of cottonseed shall

be a gin that ginned 1999-crop cotton.

(b) Applicants must comply with the

terms and conditions set forth in this

subpart and instructions issued by CCC,

and sign and submit an accurate, legible

and complete Cottonseed Payment

Program Application/Certification.

(c) Applicants must agree to share any

payment received with the producer of

the cotton that was the basis of the

payment to the extent that the effect of

low cottonseed prices was borne by the

producer rather than the gin. To the

extent that such funds will go to

individual producers, those funds will

be considered to have been received by

the applicant on behalf of such

producers.

§ 1427.1105 Payment application.

(a) Payments in accordance with this

subpart shall be made available to

eligible first handlers of cottonseed

based on information provided on a

Cottonseed Payment Program

Application/Certification.

(b) Payment applications must be

received within the program application

period announced by CCC. Applications

received after such application period

will not be accepted for payment.

(c) Cottonseed Payment Program

Application/Certifications may be

obtained from the CCC as announced by

news release. In order to participate in

the program authorized by this subpart,

first handlers of cottonseed must

execute the Cottonseed Payment

Program Application/Certification and

forward the original according to

announced instructions.

§ 1427.1106 Total available program funds.

The total available program fund shall

be determined by CCC based on the

funds available under section 802 of

Public Law 106–78 (excluding any

funds authorized to carry out title IX of

Public Law 106–78) and under section

1111 of Public Law 105–277 not

otherwise needed to fully implement

those sections.

§ 1427.1107 Applicant payment quantity.

(a) The applicant’s payment quantity

of cottonseed will be determined by

CCC based on the eligible number of

ginned cotton bales and cotton lint

weight indicated on the Cottonseed

Payment Application/Certification and/

or obtained by from the Agricultural

Marketing Service.

(b) The applicant’s payment quantity

of cottonseed shall be calculated by

multiplying:

(1) The applicant’s eligible weight of

lint, in tons, for which payment is

requested, as approved by CCC, by

(2) 1.59 (the 1994–98 Olympic average

ratio of estimated pounds of cottonseed

per pound of ginned cotton lint).

§ 1427.1108 Total payment quantity.

(a) The total quantity of 1999-crop

cottonseed produced in the United

States is eligible for payment under this

subpart. The total payment quantity of

cottonseed will be the total of eligible

quantities of cottonseed for which

applications for payment are received

within the application period

announced by CCC.

(b) The total payment quantity of

cottonseed shall be calculated by

multiplying:

(1) The eligible weight of cotton lint,

in tons, for which payment is requested

by all applicants, as approved by CCC,

by

(2) 1.59 (the 1994–98 Olympic average

ratio of estimated pounds of cottonseed

per pound of ginned cotton lint).

§ 1427.1109 Payment rate.

The payment rate (dollars per ton) for

the purpose of calculating payments

made available in accordance with this

subpart shall be determined by CCC by

dividing the total available program

funds, as determined by CCC, by

(a) The higher of:

(1) The total payment quantity, or

(2) The total quantity of 1999-crop

cottonseed, as estimated by CCC, or by

(b) A quantity of cottonseed

determined by CCC to provide

applicants with payments at a level

consistent with the statutory objectives.

§ 1427.1110 Payment calculation and form.

(a) Payments in accordance with this

subpart shall be determined for

individual applicants by multiplying:

(1) The payment rate, determined in

accordance with § 1427.1109, by

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36565

(2) The eligible payment quantity of

the applicant, determined in accordance

with § 1427.1107.

(b) After receipt of the application for

payment, together with required

supporting documents, CCC will issue

payments to the applicant, at the option

of the applicant, to the applicant’s mail

address or by electronic deposit to the

applicant’s account.

§ 1427.1111 Liability of first handler.

(a) If a first handler makes any

fraudulent representation in obtaining a

cottonseed payment, such payment

shall be refunded upon demand by CCC.

The first handler shall be liable for the

amount of the payment and applicable

interest on such payment, as determined

by CCC.

(b) Persons executing a joint payment

application will be jointly and severally

liable for any program violation,

ineligibility, or refund due CCC, and

each such person shall be and remain

liable for the repayment of the entire

payment of any amount due to CCC

until the payment is fully repaid,

without regard to such person’s claimed

share in the cottonseed payment.

(c) If the payment recipient is

suspected by CCC to have knowingly:

adopted any scheme or device to defeat

the purposes of this program; made any

fraudulent representation; or

misrepresented any fact affecting a

determination under this application,

CCC will notify the appropriate

investigating agencies of the United

States and take steps as deemed

necessary to protect the interests of the

government.

(d) If the payment applicant receives

a payment in excess of the entitled

payment, the applicant shall refund to

CCC an amount equal to the excess

payment, plus interest thereon, as

determined by CCC.

(e) From the date of the payment

application until the earlier of three

years after the date of the application or

July 31, 2003, the applicant shall keep

records and furnish such information

and reports relating to the application as

may be requested by CCC. After that

time, destruction of records shall be at

the party’s own risk. CCC may require

the retention of the records for a longer

period of time as the need arises. Such

records shall be available at all

reasonable times for an audit or

inspection by authorized representatives

of CCC, the United States Department of

Agriculture, or the Comptroller General

of the United States. Failure to keep, or

make available, such records may result

in refund to CCC of all payments

received, plus interest thereon, as

determined by CCC.

(f) Unless otherwise approved by

CCC, no Member or Delegate of

Congress or Resident Commissioner

shall be admitted to any share or part of

payments provided under this program

or to any benefit to arise therefrom,

except that this provision shall not be

construed to extend to their interest in

any incorporated company, if the

payment is for the general benefit of

such company, or to any benefit in

which it is determined by CCC such

person’s interest is that of a producer of

cotton.

8. Add subpart G to 7 CFR Part 1427

to read as follows:

Subpart G—Extra Long Staple (ELS) Cotton

Competitiveness Payment Program

Sec.

1427.1200 Applicability.

1427.1201 Administration.

1427.1202 Definitions.

1427.1203 Eligible ELS cotton.

1427.1204 Eligible domestic users and

exporters.

1427.1205 ELS Cotton Domestic User/

Exporter Agreement.

1427.1206 Form of payment.

1427.1207 Payment rate.

1427.1208 Payment.

Subpart G—Extra Long Staple (ELS)

Cotton Competitiveness Payment

Program

§ 1427.1200 Applicability.

(a) Except as specified by CCC, the

regulations in this subpart are

applicable to the period beginning June

8, 2000, unless the Executive Vice

President, CCC, shall apply the

regulations to an earlier period, but not

earlier than October 1, 1999, consistent

with the authorizing statute. These

regulations set forth the terms and

conditions under which CCC shall make

payments, in the form of commodity

certificates or cash, to eligible domestic

users and exporters of extra long staple

(ELS) cotton who have entered into an

ELS Cotton Domestic User/Exporter

Agreement with CCC to participate in

the ELS cotton competitiveness

payment program in accordance with

section 136A(c) of the Federal

Agriculture Improvement and Reform

Act of 1996 (Pub. L. 104–127).

(b) During the effective period of these

regulations, CCC may issue marketing

certificates or cash payments to

domestic users and exporters, at the

option of the recipient, in accordance

with this subpart in any week following

a consecutive 4-week period in which:

(1) The lowest adjusted Wednesday

through Tuesday average price

quotation for foreign growths (LFQ), as

quoted for ELS cotton, delivered C.I.F.

(cost, insurance and freight) Northern

Europe is less than the Wednesday

through Tuesday adjusted average

domestic spot price quotation for U.S.

Pima cotton, grade 3, staple 44,

micronaire 3.5 or higher, uncompressed,

F.O.B. warehouse; and

(2) The LFQ, determined in

accordance with § 1427.1207, is less

than 134 percent of the current crop

year loan level for the ELS cotton grade

3, staple 44, micronaire 3.5 or higher.

(c) Additional terms and conditions

may be set forth in the ELS Cotton

Domestic User/Exporter Agreement,

which must be executed by the

domestic user or exporter in order to

receive such payments.

(d) Forms that are used in

administering the ELS cotton

competitiveness payment program shall

be prescribed by CCC.

§ 1427.1201 Administration.

(a) The ELS cotton competitiveness

payment program shall be administered

under the general supervision of the

Executive Vice-President, CCC

(Administrator, FSA), or a designee and

shall be carried out by FSA’s Kansas

City Commodity Office (KCCO) and

Kansas City Management Office

(KCMO).

(b) The KCCO and KCMO, and

representatives and employees thereof,

do not have the authority to modify or

waive any of the provisions of the

regulations of this subpart.

(c) No provision or delegation herein

to KCCO or KCMO shall preclude the

Executive Vice President, CCC, or a

designee, from determining any

question arising under the program or

from reversing or modifying any

determination made by KCCO or KCMO.

(d) The Executive Vice President,

CCC, or a designee, may authorize

KCCO or KCMO to waive or modify

non-statutory deadlines and other nonstatutory program requirements in cases

where lateness or failure to meet such

other requirements do not affect

adversely the operation of the ELS

cotton competitiveness payment

program. In addition, the Executive Vice

President may suspend the program to

the extent that cause to do so may

appear as a result of a public rulemaking

or otherwise.

(e) A representative of CCC may

execute ELS cotton competitiveness

payment program payment applications,

ELS Cotton Domestic User/Exporter

Agreements and related documents only

under the terms and conditions

determined and announced by CCC.

(f) Payment applications, ELS Cotton

Domestic User/Exporter Agreements

and related documents not executed in

accordance with the terms and

36566 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

conditions determined and announced

by CCC, including any purported

execution prior to the date authorized

by CCC, shall be null and void.

(g) This program shall only be

administered to the extent that it is

determined by the Executive Vice

President, CCC, that it is lawful and

appropriate to commit funds to this

program from those sources specifically

identified as the funding source in the

authorizing legislation.

§ 1427.1202 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of program administration.

The terms defined in §§ 1427.3 and

1427.52 of this part and part 1413 of this

chapter shall also be applicable.

Adjusted spot price means the spot

price adjusted to reflect any lack of data

for grade 3 or staple 44 to make the

adjusted spot price comparable to a spot

price assuming grade 3 and staple 44. If

grade 3 spot price data are not available,

spot prices for grade 2, grade 1, or grade

4 will be used and will be adjusted by

the average difference between spot

prices for grade 3 and those for grade 2,

grade 1 or grade 4, as the case may be,

over the available observations during

the previous 12 months. If spot prices

for staple 44 are not available, spot

prices for staple 46 may be used and

will be adjusted by the average

difference between spot prices for staple

44 and those for staple 46 over the

available observations during the

previous 12 months.

Bale opening means the removal of

the bagging and ties from a bale of

eligible ELS cotton in the normal

opening area, immediately prior to use,

by a manufacturer in a building or

collection of buildings where the cotton

in the bale will be used in the

continuous process of manufacturing

raw cotton into cotton products in the

United States.

Consumption means, the use of

eligible ELS cotton by a domestic user

in the manufacture in the United States

of ELS cotton products.

Cotton product means any product

containing cotton fibers that result from

the use of an eligible bale of ELS cotton

in manufacturing.

Current shipment price means, during

the period in which two daily price

quotations are available for the LFQ for

the foreign growth quoted C.I.F.

Northern Europe, the price quotation for

cotton for shipment no later than

August/September of the current

calendar year.

Forward shipment price means,

during the period in which two daily

price quotations are available for the

LFQ for foreign growths quoted C.I.F.

Northern Europe, the price quotation for

cotton for shipment no earlier than

October/November of the current

calendar year.

LFQ means, during the period in

which only one daily price quotation is

available for the growth, the lowest

average for the preceding Wednesdaythrough-Tuesday week of the price

quotations for foreign growths of ELS

cotton, quoted C.I.F. Northern Europe,

after each respective average is adjusted

for quality differences between the

respective foreign growth and U.S.

Pima, grade 3, staple 44, micronaire 3.5

and higher, provided that the lowest

adjusted quotation becomes the LFQ

after it is further adjusted to reflect the

estimated cost of transportation between

an average U.S. location and northern

Europe.

(1) Current LFQ means the average for

the preceding Wednesday through

Tuesday of the current shipment prices

for the lowest adjusted foreign growth,

C.I.F. Northern Europe.

(2) Forward LFQ means the average

for the preceding Wednesday through

Tuesday of the forward shipment prices

for the lowest adjusted foreign growth

quoted C.I.F. Northern Europe.

Spot price means the WednesdayTuesday weekly average of the domestic

spot prices reported by the Agricultural

Marketing Service, USDA, for U.S.

Pima, grade 3, staple 44, micronaire 3.5

or higher, uncompressed, F.O.B.

warehouse, for the San Joaquin and

Desert Southwest markets. When both

San Joaquin Valley and Desert

Southwest spot quotations are available,

the U.S. quotation will be the average of

the two quotations. If only one

quotation is available, that quotation

will be used.

§ 1427.1203 Eligible ELS cotton.

(a) For the purposes of this subpart,

eligible ELS cotton is domestically

produced baled ELS cotton that is—

(1) Opened by an eligible domestic

user on or after October 1, 1999, or,

(2) Exported by an eligible exporter on

or after October 1, 1999, during a

Wednesday through Tuesday period in

which a payment rate, determined in

accordance with § 1427.1207, is in

effect, and that meets the requirements

of paragraphs (b) and (c) of this section;

(b) Eligible ELS cotton must be

either—

(1) Baled lint, including baled lint

classified by USDA’s Agricultural

Marketing Service as Below Grade;

(2) Loose;

(3) Semi-processed motes that are of

a quality suitable, without further

processing, for spinning, papermaking

or bleaching;

(4) Reginned (processed) motes.

(c) Eligible ELS cotton must not be—

(1) ELS Cotton with respect to which

a payment, in accordance with the

provisions of this subpart, has been

made available;

(2) Imported ELS cotton;

(3) Raw (unprocessed) motes;

(4) Semi-processed motes that are not

of a quality suitable, without further

processing, for spinning, papermaking

or bleaching;

(5) Textile mill wastes; or

(6) Semi-processed or reginned

(processed) motes that have been

blended with textile mill waste or other

fibers.

§ 1427.1204 Eligible domestic users and

exporters.

(a) For the purposes of this subpart,

the following persons shall be

considered to be eligible domestic users

and exporters of ELS cotton:

(1) A person regularly engaged in the

business of opening bales of eligible ELS

cotton for the purpose of manufacturing

such cotton into cotton products in the

United States (‘‘domestic user’’), who

has entered into an agreement with CCC

to participate in the ELS cotton

competitiveness payment program; or

(2) A person, including a producer or

a cooperative marketing association

approved in accordance with part 1425

of this chapter, regularly engaged in

selling eligible ELS cotton for

exportation from the United States

(‘‘exporter’’), who has entered into an

agreement with CCC to participate in

the ELS cotton competitiveness

payment program.

(b) Applications for payment in

accordance with this subpart must

contain documentation required by the

provisions of the ELS Cotton Domestic

User/Exporter Agreement and

instructions issued by CCC.

§ 1427.1205 ELS Cotton Domestic User/

Exporter Agreement.

(a) Payments in accordance with this

subpart shall be made available to

eligible domestic users and exporters

who have entered into an ELS Cotton

Domestic User/Exporter Agreement with

CCC and who have complied with the

terms and conditions set forth in this

subpart, the ELS Cotton Domestic User/

Exporter Agreement and instructions

issued by CCC.

(b) ELS Cotton Domestic User/

Exporter Agreements may be obtained

from the Cotton and Rice Branch,

Warehouse Contract Division, Kansas

City Commodity Office, P.O. Box

419205, Kansas City, Missouri 64141–

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36567

6205. Telephone requests for copies of

the agreement will be accepted at (816)

926–6662. In order to participate in the

program authorized by this subpart,

domestic users and exporters must

execute the ELS Cotton Domestic User/

Exporter Agreement and forward the

original and one copy to KCCO.

§ 1427.1206 Form of payment.

Payments in accordance with this

subpart shall be made available in the

form of commodity certificates issued in

accordance with part 1470 of this

chapter, or in cash, at the option of the

participant, as determined and

announced by CCC.

§ 1427.1207 Payment rate.

(a) The payment rate for purposes of

calculating the payments made in

accordance with this subpart shall be

determined as follows:

(1) Beginning the Tuesday following

August 1 and ending the week in which

the current LFQ and the forward LFQ

may first become available, the payment

rate shall be the difference between the

U.S. Pima spot price and the LFQ in the

fourth week of a consecutive 4-week

period in which the U.S. Pima spot

price exceeded the LFQ each week, and

the LFQ was less than 134 percent of the

current crop year loan level for U.S.

Pima cotton, grade 3, staple 44,

micronaire 3.5 or higher in all weeks of

the 4-week period; and

(2) Beginning the Wednesday through

Tuesday week after the week in which

the current LFQ and the forward LFQ

may first become available and ending

the Tuesday following July 31, the

payment rate shall be the difference

between the U.S. Pima spot price and

the current LFQ in the fourth week of

a consecutive 4-week period in which

the U.S. Pima spot price exceeded the

current LFQ each week, and the current

LFQ was less than 134 percent of the

current crop year loan level for U.S.

Pima grade 3, staple 44, micronaire 3.5

or higher in all weeks of the 4-week

period. If the current LFQ is not

available, the payment rate may be the

difference between the U.S. Pima spot

price and the forward LFQ.

(b) Whenever a 4-week period under

paragraph (a) of this section contains a

combination of LFQ for only for one to

three weeks and current LFQ and

forward LFQ only for one to three

weeks, such as may occur in the spring

when the LFQ price is succeeded by the

current LFQ and the forward LFQ

(‘‘Spring transition’’) and at the start of

a new marketing year when the current

LFQ and the forward LFQ are succeeded

by the LFQ (‘‘marketing year

transition’’), under paragraphs (a)(1) and

(a)(2) of this section, during both the

spring transition and the marketing year

transition periods, to the extent

practicable, the current LFQ in

combination with the LFQ shall be

taken into consideration during such 4-

week periods to determine whether a

payment is to be issued. During both the

spring transition and the marketing year

transition periods, if the current LFQ is

not available, the forward LFQ in

combination with the LFQ shall be

taken into consideration during such 4-

week periods to determine whether a

payment is to be issued.

(c) For purposes of this subpart, with

respect to the determination of the U.S.

Pima spot price, the LFQ, the current

LFQ and the forward LFQ:

(1) If daily quotations are not

available for one or more days of the 5-

day period, the available quotations

during the period will be used;

(2) If the U.S. Pima spot price is not

available or if none of the LFQ, current

LFQ or forward LFQ is available, the

payment rate shall be zero and shall

remain zero unless and until sufficient

U.S. Pima spot prices and/or LFQ again

become available, the U.S. Pima spot

price exceeds the LFQ, the current LFQ

or the forward LFQ, as the case may be,

and the LFQ, the current LFQ, or the

forward LFQ, as the case may be, is less

than 134 percent of the current crop

year loan rate for U.S. Pima for 4

consecutive weeks.

(d) Payment rates for loose, reginned

motes and semi-processed motes that

are of a quality suitable, without further

processing, for spinning, papermaking

or bleaching shall be based on a

percentage of the basic rate for baled

lint, as specified in the ELS Cotton

Domestic User/Exporter Agreement.

§ 1427.1208 Payment.

(a) Payments in accordance with this

subpart shall be determined by

multiplying:

(1) The payment rate, determined in

accordance with § 1427.127, by

(2) The net weight (gross weight

minus the weight of bagging and ties)

determined in accordance with

paragraph (b) of this section, of eligible

ELS cotton bales that are opened by an

eligible domestic user or sold for export

by an eligible exporter during the

Wednesday through Tuesday period

following a week in which a payment

rate is established.

(b) For the purposes of this subpart,

the net weight shall be determined

based upon:

(1) For domestic users, the weight on

which settlement for payment of the

ELS cotton was based (‘‘landed mill

weight’’);

(2) For reginned motes processed by

an end user who converted such motes,

without rebaling, to an end use in a

continuous manufacturing process, the

net weight of the reginned motes after

final cleaning;

(3) For exporters, the shipping

warehouse weight or the gin weight if

the ELS cotton was not placed in a

warehouse, of the eligible cotton unless

the exporter obtains and pays the cost

of having all the bales in the shipment

reweighed by a licensed weigher and

furnishes a copy of the certified

reweights.

(c) For the purposes of this subpart,

eligible ELS cotton will be considered—

(1) Purchased by the domestic user on

the date the bale is opened in

preparation for consumption; and

(2) Exported by the exporter on the

date that CCC determines is the date on

which the cotton is shipped for export.

(d) Payments in accordance with this

subpart shall be made available upon

application for payment and submission

of supporting documentation, including

proof of purchases and consumption of

eligible ELS cotton by the domestic user

or proof of export of eligible ELS cotton

by the exporter, as required by the

provisions of the ELS Cotton Domestic

User/Exporter Agreement issued by

CCC.

9. Revise 7 CFR part 1439 to read as

follows:

PART 1439—EMERGENCY LIVESTOCK

ASSISTANCE

Subpart A—General Provisions

Sec.

1439.1 Applicability and general statement.

1439.2 Administration.

1439.3 Definitions.

1439.4 Liens and claims of creditors.

1439.5 Assignments of payments.

1439.6 Appeals.

1439.7 Misrepresentation, scheme or

device.

1439.8 Refunds to CCC; joint and several

liability.

1439.9 Cumulative liability.

1439.10 Benefits limitation.

1439.11 Gross revenue limitation.

1439.12 Maintenance of books and records.

Subpart B—1998–99 Livestock Assistance

Program

1439.101 Applicability.

1439.102 Definitions.

1439.103 Application process.

1439.104 County committee determinations

of general applicability.

1439.105 Loss criteria.

1439.106 Livestock producer eligibility.

1439.107 Calculation of assistance.

1439.108 Availability of funds.

Subpart C—Livestock Indemnity Program

1439.201 Applicability.

1439.202 Administration.

36568 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

1439.203 Definitions.

1439.204 Sign-up period.

1439.205 Proof of loss.

1439.206 Indemnity benefits.

1439.207 Availability of funds.

1439.208 Limitations on payments.

Subpart D—Pasture Recovery Program

1439.301 Administration.

1439.302 Definitions.

1439.303 General description.

1439.304 Eligible persons.

1439.305 Eligible land.

1439.306 Duration of contracts.

1439.307–1439.319 [Reserved]

1439.320 Obligations of participant.

1439.321 Obligations of the Commodity

Credit Corporation.

1439.322 Eligible practices.

1439.323–1439.329 [Reserved]

1439.330 Signup.

1439.331 Applications for PRP contracts.

1439.332 PRP contract.

1439.333 Contract modifications.

1439.334–1439.339 [Reserved]

1439.340 Payments.

1439.341 Levels and rates for payments.

1439.342 Method of payment.

1439.344–1439.349 [Reserved]

1439.350 Payments to participants.

1439.351 Violations.

1439.352 Executed PRP contract not in

conformity with regulations.

1439.353 Performance based upon advice or

action of the Department.

1439.354 Access to land under contract.

1439.355 Miscellaneous.

Subpart E—Livestock Indemnity Program

for Contract Growers

1439.401 Applicability.

1439.402 [Reserved]

1439.403 Definitions.

1439.404 Application period.

1439.405 Proof of loss.

1439.406 Indemnity benefits.

1439.407 Proration of claims.

1439.408 Miscellaneous provisions.

Subparts F–H [Reserved]

Subpart I—American Indian Livestock Feed

Program

1439.900 [Reserved]

1439.901 Applicability.

1439.902 Administration.

1439.903 Definitions.

1439.904 Region.

1439.905 Responsibilities.

1439.906 Program availability.

1439.907 Eligibility.

1439.908 Payment application.

1439.909 Payments.

1439.910 Program suspension and

termination.

1439.911 Appeals.

1439.912—1439.915 [Reserved]

Authority: 15 U.S.C. 714b and 714c9; Pub.

L. 105–277, 112 Stat. 2681–42 through 44;

Pub. L. 106–31, 113 Stat. 57; Pub. L. 106–78,

113 Stat. 1135; and Pub. L. 106–113, 113 Stat.

1501.

Subpart A—General Provisions

§ 1439.1 Applicability and general

statement.

(a) The regulations in this part set

forth the terms and conditions

applicable to programs that may be

made available to livestock producers

under various statutory provisions.

Unless otherwise specified, the

regulations in this subpart shall apply to

all programs operated under this part.

(b) The regulations in this part 1439

in effect prior to March 17, 1999, (See

7 CFR Parts 1200 to 1599, revised as of

January 1, 1999) are applicable with

respect to any emergency livestock

assistance program that existed prior to

March 17, 1999. The part 1439

regulations in effect on January 1, 2000

(See 7 CFR Parts 1200 to 1599, revised

as of January 1, 2000) for the Flood

Compensation Program shall continue

to apply to all pending or new matters

under that program.

(c) Nothing in this subpart shall be

read as to require any expenditure of

funds for a program in an overall

amount greater than that determined to

be appropriate by CCC.

§ 1439.2 Administration.

(a) This part shall be administered by

CCC through, and as delegated to the

Deputy Administrator for Farm

Programs under the general direction

and supervision of the Executive Vice

President, CCC. The program shall be

carried out in the field by State and

county committees of the Farm Service

Agency of the U.S. Department of

Agriculture.

(b) State and county committees, and

representatives and employees thereof,

do not have the authority to modify or

waive any of the provisions of the

regulations in this part, as amended or

supplemented.

(c) The State committee shall take any

action required by this part that has not

been taken by the county committee.

The State committee shall also:

(1) Correct, or require a county

committee to correct, any action taken

by such county committee that is not in

accordance with this part; or

(2) Require a county committee to

withhold taking any action that is not in

accordance with this part.

(d) No delegation in this section to a

State or county committee shall

preclude the Executive Vice President,

CCC, 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. The Deputy Administrator

may waive or modify deadlines or other

program requirements of this part to the

extent that such a waiver or

modification is otherwise permitted by

law and is determined to be appropriate,

serves the goals of the program, and

does not adversely affect the operation

of the program.

§ 1439.3 Definitions.

The definitions set forth in this

section shall be applicable to all

subparts contained in this part unless

otherwise noted, or unless the

definitions conflict with the definitions

in subparts other than this subpart A, in

which case they shall not apply.

Carrying capacity means the number

of acres of pasture required to provide

15.7 pounds of feed grain equivalent per

day for one animal unit during the

period the pasture is normally grazed.

CCC means the Commodity Credit

Corporation.

Deputy Administrator or DAFP means

the Deputy Administrator for Farm

Programs, Farm Service Agency (FSA),

or a designee.

Equine animals used for food or in the

production of food means horses, mules,

and donkeys that are:

(1) Used commercially for human

food;

(2) Maintained for commercial sale to

processors of food for human

consumption; or

(3) Used in the production of food and

fiber on the owner’s farm, such as draft

horses, or cow ponies.

Executive Vice President means the

Executive Vice President, CCC, or a

designee of the Executive Vice

President.

FSA means the Farm Service Agency.

Livestock producer means a person

who is determined to receive 10 percent

or more of the person’s gross income, as

determined by the Secretary, from the

production of livestock and is:

(1) A citizen of, or legal resident alien

in the United States; or

(2) A farm cooperative, private

domestic corporation, partnership, or

joint operation in which a majority

interest is held by members,

stockholders, or partners who are

citizens of, or legal resident aliens in the

United States; any Indian tribe under

the Indian Self-Determination and

Education Assistance Act (25 U.S.C. 450

et seq.); any Indian organization or

entity chartered under the Indian

Reorganization Act (25 U.S.C. 461 et

seq.) or entity chartered under the

Indian Reorganization Act; any tribal

organization under the Indian SelfDetermination and Education

Assistance Act; and any economic

enterprise under the Indian Financing

Act of 1974 (25 U.S.C. 1451 et seq.).

Natural disaster means a generalized

disease, insect infestation, flood,

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36569

drought, fire, hurricane, earthquake,

storm, hot weather, or other natural

disaster.

Person means an individual or entity,

including any organization, of any kind,

provided that for per-person payment

limitations the rules in part 1400 of this

chapter shall be determinative in

defining who is considered to be a

separate person for such purposes.

Poultry means domesticated chickens,

including egg-producing poultry, ducks,

geese and turkeys.

Secretary means the Secretary of

Agriculture or a designee of the

Secretary.

Seeded small grain forage crops

means wheat, barley, oats, rye, and

triticale.

State committee, State office, county

committee, or county office, means the

respective FSA committee or office.

United States means all fifty states of

United States, the Commonwealth of

Puerto Rico, the Virgin Islands, Guam,

and the District of Columbia.

§ 1439.4 Liens and claims of creditors.

Any payment or benefit or portion

thereof due any person under this part

shall be allowed without regard to

questions of title under State law, and

without regard to any claim or lien in

favor of any person except agencies of

the U.S. Government.

§ 1439.5 Assignments of payments.

Payments that are earned by a person

under this part may be assigned in

accordance with the provisions of part

1404 of this chapter and the applicable

FSA or CCC forms for assignments.

§ 1439.6 Appeals.

Any person who is dissatisfied with a

determination made with respect to this

part may make a request for

reconsideration or appeal of such

determination in accordance with the

appeal regulations set forth at parts 780

and 11 of this title.

§ 1439.7 Misrepresentation, scheme or

device.

A person shall be ineligible to receive

assistance under any program under this

part, and be subject to such other

remedies as may be allowed by law, if,

with respect to such program, it is

determined by the State committee or

the county committee or an official of

FSA that such person has:

(a) Adopted any scheme or other

device that tends to defeat the purpose

of a program operated under this part;

(b) Made any fraudulent

representation with respect to such

program; or

(c) Misrepresented any fact affecting a

program determination.

§ 1439.8 Refunds to CCC; joint and several

liability.

(a) In the event there is a failure to

comply with any term, requirement, or

condition for payment or assistance

arising under this part, and if any

refund of a payment to CCC shall

otherwise become due in connection

with this part, all payments made in

regard to such matter shall be refunded

to CCC, together with interest as

determined in accordance with

paragraph (b) of this section and latepayment charges as provided for in part

1403 of this chapter.

(b) All persons with a financial

interest in the operation or in an

application for payment shall be jointly

and severally liable for any refund,

including related charges, that is

determined to be due CCC for any

reason under this part.

(c) Interest shall be applicable to

refunds required of the livestock owner

or other party receiving assistance or a

payment if CCC determines that

payments or other assistance were

provided to the owner and the owner

was not eligible for such assistance.

Such interest shall be charged at the rate

of interest that the United States

Treasury charges CCC for funds, as of

the date CCC made such benefits. Such

interest that is determined to be due

CCC shall accrue from the date such

benefits were made available by CCC to

the date of repayment or the date

interest increases in accordance with

part 1403 of this chapter. CCC may

waive the accrual of interest if CCC

determines that the cause of the

erroneous determination was not due to

any action of the livestock owner or

other individual or entity receiving

benefits.

(d) Interest otherwise determined due

in accordance with paragraph (c) of this

section may be waived with respect to

refunds required of the owner or other

program recipient because of

unintentional misaction on the part of

the owner or other individual or entity,

as determined by CCC.

(e) Late payment interest shall be

assessed on all refunds in accordance

with the provisions of, and subject to

the rates prescribed in part 1403 of this

chapter.

(f) Individuals or entities who are a

party to any program operated under

this part must refund to CCC any excess

payments made by CCC with respect to

such program.

(g) In the event that any request for

assistance or payment under this part

was established as a result of erroneous

information or a miscalculation, the

assistance or payment shall be

recomputed and any excess refunded

with applicable interest.

§ 1439.9 Cumulative liability.

The liability of any person for any

penalty under this part or for any refund

to CCC or related charge arising in

connection therewith shall be in

addition to any other liability of such

person under any civil or criminal fraud

statute or any other provision of law

including, but not limited to, 18 U.S.C.

286, 287, 371, 641, 651, 1001 and 1014;

15 U.S.C. 714m; and 31 U.S.C. 3729.

§ 1439.10 Benefits limitation.

The total amount of benefits that a

person, as determined in accordance

with part 1400 of this chapter, shall be

entitled to receive under any subpart

may not exceed $40,000 for any one loss

or year. Also, the Deputy Administrator

may take such action as needed,

whether or not specifically provided for,

to avoid a duplication of benefits under

the several programs provided for in

this part and may impose such crossprogram payment limitations as may be

consistent with the intent of this section

and this part.

§ 1439.11 Gross revenue limitation.

A person, as defined in part 1400 of

this chapter, who has annual gross

revenue in excess of $2.5 million shall

not be eligible to receive assistance

under this part. For the purpose of this

determination, annual gross revenue

means:

(a) With respect to a person who

receives more than 50 percent of such

person’s gross income from farming and

ranching, the total gross revenue

received from such operations; and

(b) With respect to a person who

receives 50 percent or less of such

person’s gross income from farming and

ranching, the total gross revenue from

all sources.

§ 1439.12 Maintenance of books and

records.

Livestock producers or any other

individual or entity seeking or receiving

assistance under this part shall maintain

and retain financial books and records

that will permit verification of all

transactions with respect to the

provisions of this part for at least 3 years

following the end of the calendar year

in which assistance was provided, or for

such additional period as CCC may

request. Destruction of records after that

date shall be at the risk of the producer

or other person receiving assistance. An

examination of such books and records

by a duly authorized representative of

the United States Government shall be

permitted at any time during business

hours.

36570 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

Subpart B—1998–99 Livestock

Assistance Program

§ 1439.101 Applicability.

(a) This subpart sets forth the terms

and conditions applicable to the 1998

Livestock Assistance Program

authorized by Public Law 105–277 and

the 1999 Livestock Assistance Program

authorized by the Public Law 106–78.

Benefits will be provided to eligible

livestock producers in the United States

but only in counties where a natural

disaster occurred, and that were

subsequently approved for relief under

this part by the Deputy Administrator

for Farm Programs. For purposes of

reference, the program authorized by

Public Law 105–277 shall be referred to

in this subpart as the 1998 LAP program

and that administered under Public Law

106–78 shall be referred to in this

subpart as the 1999 LAP program.

(b) The two LAP programs provided

for in this part will be treated as

separate programs for purposes of

payment limitations and for other

purposes relating to eligibility.

(c) A county must have suffered a 40-

percent or greater grazing loss for 3

consecutive months during the 1998

calendar year for 1998 LAP or for 3

consecutive months during the 1999

calendar year for the 1999 LAP, as a

result of damage due to a natural

disaster as determined by the Deputy

Administrator for Farm Programs, or a

designee. Grazing losses must have

occurred on native and improved

pasture with permanent vegetative cover

and other crops planted specifically for

the sole purpose of providing grazing for

livestock, but such losses do not include

losses on, or with respect to, seeded

small grain forage crops.

(d) To be eligible for assistance under

this subpart, a livestock producer’s

pastures in an eligible county must have

suffered at least a 40-percent loss of

normal carrying capacity for a minimum

of 3 consecutive months during the

relevant calendar year. The percent of

loss eligible for compensation shall not

exceed the maximum percentage of

grazing loss for the county as

determined by the county committee. In

addition, the producer will not be

compensated for that part of any loss

that would represent payment of a loss

greater than 80 percent.

(e) Unless otherwise specified or

determined by the Deputy

Administrator, a livestock producer is

not eligible to receive payments for the

same loss under both this subpart and

another Federal program.

§ 1439.102 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering this subpart.

The definitions in § 1439.3 shall also be

applicable, except where those

definitions conflict with the definitions

set forth in this subpart.

Application means the Form CCC–

740, Livestock Assistance Program

Application. The CCC–740 is available

at county FSA offices.

LAP means, depending on the

context, either the 1998 Livestock

Assistance Program provided for in this

subpart, the 1999 Livestock Assistance

Program provided for in this subpart, or

the overall 1998–99 Livestock

Assistance Program provided for in this

subpart.

Livestock means beef and dairy cattle,

buffalo and beefalo (when maintained

on the same basis as beef cattle), sheep,

goats, swine, and equine animals where

such equine animals are used

commercially for human food or kept

for the production of food or fiber on the

owner’s farm.

§ 1439.103 Application process.

(a) Livestock producers must submit a

completed application prior to the close

of business on March 31, 1999, for the

1998 LAP or, for the 1999 LAP, such

other date as established by the Deputy

Administrator, or by prior rule. The

application and any other supporting

documentation shall be submitted to the

county FSA office with administrative

authority over a producer’s eligible

grazing land or to the county FSA office

that maintains the farm records for the

livestock producer.

(b) Livestock producers shall certify

as to the accuracy of all the information

contained in the application, and

provide any other information to CCC

that the county FSA office or committee

deems necessary to determine the

livestock producer’s eligibility.

§ 1439.104 County committee

determinations of general applicability.

(a) County committees shall

determine whether due to natural

disasters their county has suffered a 40-

percent loss affecting pasture and

normal grazing crops for at least 3

consecutive months during the calendar

year 1998 for the 1998 LAP or calendar

year 1999 for the 1999 LAP. In making

this determination, county committees,

using the best information available

from sources including but not limited

to: the Extension Service, the Natural

Resources Conservation Service; the

Palmer Drought Index; and general

knowledge of local rainfall data, pasture

losses, grazing livestock movement out

of county, abnormal supplemental

feeding practices for livestock on

pasture and liquidation of grazing

livestock, shall determine the

percentage of grazing losses for pastures

on a county wide basis. The county

committee shall submit rainfall data,

percentage of grazing losses for each

general type of pasture, and the

weighted average percentage of grazing

loss for the county, with State

Committee concurrence, to the Deputy

Administrator on Form CCC–654. The

maximum grazing losses the county

committees shall submit on Form CCC–

654 is 80 percent. These determinations

shall be subject to review and approval

of the Deputy Administrator. For

purposes of this subpart, such counties

are called ‘‘eligible counties.’’

(b) In each county, the county

committee shall determine a LAP crop

year. The LAP crop year shall be that

period of time in a calendar year that

begins with the date grazing of new

growth pasture normally begins and

ends on the date grazing without

supplemental feeding normally ends in

the county.

(c) In and for each eligible county, the

county committee shall determine

normal carrying capacities for each type

of grazing or pasture during the LAP

crop year. The normal carrying capacity

for the LAP crop year shall be the

normal carrying capacity the county

committee determines could be

expected from pasture and normal

grazing crops for livestock for the LAP

crop year if a natural disaster had not

diminished the production of these

grazing crops.

(d) In each eligible county, the county

committee shall determine the payment

period for the county. The payment

period for the county shall be the period

of time during the county’s LAP crop

year where for 3 consecutive months

during 1998 for the 1998 LAP or during

1999 for the 1999 LAP, the carrying

capacity for grazing land or pasture was

reduced by 40 percent or more from the

normal carrying capacity.

§ 1439.105 Loss criteria.

(a) The grazing land for which a

livestock producer requests benefits

must be within the physical boundary of

the eligible county. Livestock producers

in unapproved counties contiguous to

an eligible county will not receive

benefits under this subpart.

(b) To be eligible for benefits under

this subpart, a livestock producer in an

eligible county must have suffered a loss

of grazing production equivalent to at

least a 40-percent loss of normal

carrying capacity for a minimum of 3

consecutive months.

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(c) A producer shall certify each type

of pasture and percentage of loss

suffered by each type on the

application. In establishing the

percentage of grazing loss, producers

shall consider the amount of available

grazing production during the LAP crop

year, whether more than the normal

acreage of grazing land was required to

support livestock during the LAP crop

year, and whether supplemental feeding

of livestock began earlier or later than

normal.

(d) The county committee shall

determine the producer’s grazing loss

and shall consider the amount of

available grazing production during the

LAP crop year, whether more than the

normal acreage of grazing land was

required to support livestock during the

LAP crop year, and whether

supplemental feeding of livestock began

earlier or later than normal. The county

committee shall request the producer to

provide proof of loss of grazing

production if the county committee

determines the producer’s certified loss

exceeds other similarly situated

livestock producers.

(e) The percentage of loss claimed by

a livestock producer shall not exceed

the maximum allowable percentage of

grazing loss for the county as

determined by the county committee in

accordance with § 1439.104(a).

Livestock producers will not receive

benefits under this subpart for any

portion of their loss that exceeds 80

percent of normal carrying capacity.

(f) Conservation Reserve Program

acres released for haying and/or grazing

and seeded small grain forage crops

shall not be used to calculate losses

under this subpart.

§ 1439.106 Livestock producer eligibility.

(a) Only one livestock producer will

be eligible for benefits under this

subpart with respect to an individual

animal.

(b) Only owners of livestock who

themselves provide the pasture or

grazing land, including cash leased

pasture or grazing land, for the livestock

may be considered as livestock

producers eligible to apply for benefits

under this subpart.

(c) An owner of livestock who uses

another person to provide pasture or

grazing land on a rate-of-gain basis is

not considered to be the livestock

producer eligible to apply for benefits

under this subpart.

(d) An owner who pledges livestock

as security for a loan shall be considered

as the person eligible to apply for

benefits under this subpart if all other

requirements of this part are met.

Livestock leased under a contractual

agreement that has been in effect at least

3 months and establishes an interest for

the lessee in such livestock shall be

considered as being owned by the

lessee.

(e) Livestock must have been owned

for at least 3 months before becoming

eligible for payment.

(f) The following entities are not

eligible for benefits under this subpart:

(1) State or local governments or

subdivisions thereof; or

(2) Any individual or entity who is a

foreign person as determined in

accordance with the provisions of

§§ 1400.501 and 1400.502 of this

chapter.

§ 1439.107 Calculation of assistance.

(a) The value of LAP assistance

determined with respect to a livestock

producer for each type and weight class

of livestock owned or leased by such

producer shall be the lesser of the

amount calculated under paragraph (b)

of this section (the total value of lost

feed needs for eligible livestock) or

calculated under paragraph (c) of this

section (the total value of lost eligible

pasture).

(b) The total value of lost feed needs

shall be the amount obtained by

multiplying:

(1) The number of days in the

payment period the livestock are owned

or, in the case of purchased livestock,

meet the 3-month ownership

requirement; by

(2) The daily feed grain equivalent per

animal (15.7 pounds of corn necessary

for a beef cow, factored for the weight

class and type of livestock, as

determined by CCC); by

(3) The 5-year national average market

price for corn (1998 LAP: $2.56 per

bushel, or $.0457 per pound; 1999 LAP:

$2.47 per bushel or $.0441 per pound);

by

(4) The number of eligible animals of

each type and weight range of livestock

owned or leased by the person; by

(5) The percent of the producer’s

grazing loss during the relevant period

as certified by the producer and

approved by the county committee in

accordance with § 1439.105.

(c) The total value of lost eligible

pasture shall be the amounts for each

type of pasture calculated by:

(1) Dividing the number of acres of

each pasture type by the carrying

capacity established for the pasture; and

multiplying:

(2) The result of paragraph (c)(1) of

this section for each pasture type; by

(3) The daily feed grain equivalent per

animal (15.7 pounds of corn necessary

for a beef cow, factored for the weight

class and type of livestock, as

determined by CCC); by

(4) The 5-year national average market

price for corn (1998 LAP: $2.56 per

bushel, or $.0457 per pound; 1999 LAP:

$2.47 per bushel or $.0441071 per

pound); by

(5) The applicable number of days in

the LAP payment period; by

(6) The percent of the producer’s

grazing loss during the relevant period

as certified by the producer and

approved by the county committee in

accordance with § 1439.105.

(d) The final payment shall be the

smaller of paragraph (b) of this section

or paragraph (c) of this section

multiplied by the national factor if

required under § 1439.108. The final

payment shall not exceed 50 percent of

the smaller of paragraph (b) or (c) of this

section determined prior to applying the

national factor provided for in

§ 1439.108.

(e) Seeded small grain forage crops

shall not be counted as grazing land

under paragraph (c) of this section with

respect to supporting eligible livestock.

(f) The number of equine animals that

are used to calculate benefits under this

subpart and in paragraph (a) of this

section are limited to the number

actually needed to produce food and

fiber on the producer’s farm or to breed

horses and mules to be used to produce

food and fiber on the owner’s farm, and

shall not include animals that are used

for recreational purposes or are running

wild or uncontrolled on land owned or

leased by the owner.

§ 1439.108 Availability of funds.

In the event that the total amount of

claims submitted under this subpart

shall in the case of the 1998 LAP exceed

$270 million or in the case of the 1999

LAP exceed the amount determined

appropriate by the Deputy

Administrator, then such payments

under such program shall be reduced by

a uniform national percentage. Such

payment reductions shall be after the

imposition of applicable payment

limitation provisions. Total 1999 LAP

payments shall be prorated with

payments for the Livestock Indemnity

Program, Phase II provided for in this

part such that total payments under the

two programs shall not exceed $200

million minus, as deemed appropriate,

other assistance provided to livestock

producers unless CCC makes additional

funds available.

Subpart C—Livestock Indemnity

Program

§ 1439.201 Applicability.

(a) This subpart sets forth the terms

and conditions applicable to the original

1999 Livestock Indemnity Program

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(hereafter ‘‘1999 Livestock Indemnity

Program, Phase I’’) and the 1999

Livestock Indemnity Program, Phase II.

Benefits will be provided under this

subpart only for losses (deaths) of

livestock occurring as a result of a

natural disasters in counties included in

the geographic area covered by a

qualifying natural disaster declaration:

(1) With respect to the 1999 Livestock

Indemnity Program (‘‘LIP’’), Phase I,

issued by the President of the United

States or the Secretary of Agriculture of

the United States in the period from

May 2, 1998, through May 21, 1999, or

(2) With respect to the 1999 Livestock

Indemnity Program (‘‘LIP’’), Phase II,

issued by the President of the United

States or the Secretary of Agriculture,

which declaration was requested

between May 22, 1999, through

December 31, 1999, inclusive, and

subsequently approved.

(b) Losses in contiguous counties, or

any other counties not the subject of the

declaration, will not be compensable.

Producers will be compensated by

livestock category as established by

CCC. The producer’s loss must be the

result of the declared disaster and in

excess of the normal losses, established

by CCC, for the producer’s livestock

operation. Losses to livestock due to

drought conditions are deemed to have

been avoidable and are not eligible for

benefits under the 1999 LIP, Phase II.

§ 1439.202 Administration.

Where circumstances preclude

compliance with § 1439.204 due to

circumstances beyond the applicant’s

control, the county or State committee

may request that relief be granted by the

Deputy Administrator under this

section. In such cases, except for

statutory deadlines and other statutory

requirements, the Deputy Administrator

may, in order to more equitably

accomplish the goals of this subpart,

waive or modify deadlines and other

program requirements if the failure to

meet such deadlines or other

requirements does not adversely affect

operation of the program and are not

prohibited by statute.

§ 1439.203 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering this subpart.

The terms defined in § 1439.3 shall also

be applicable, except where those

definitions conflict with the definitions

set forth in this subpart. The following

terms shall have the following

meanings:

Application means the Form CCC–

661, Livestock Indemnity Program

Application.

Livestock means beef and dairy cattle,

sheep, goats, swine, poultry (including

egg-producing poultry), equine animals

used for food or in the production of

food, and buffalo and beefalo when such

buffalo and beefalo are maintained on

the same basis and in the same manner

as beef cattle maintained for commercial

slaughter.

Livestock producer means one who

possesses a beneficial interest in eligible

livestock as defined in this subpart, has

a financial risk in the eligible livestock,

and is a citizen of, or legal resident alien

in, the United States. A farm

cooperative, private domestic

corporation, partnership, or joint

operation in which a majority interest is

held by members, stockholders, or

partners who are citizens of, or legal

resident aliens in, the United States, if

such cooperative, corporation,

partnership, or joint operation owns or

jointly owns eligible livestock or

poultry, will be considered livestock

producers. Any Native American tribe

(as defined in section 4(b) of the Indian

Self-Determination and Education

Assistance Act and Education

Assistance Act); any Native American

organization or entity chartered under

the Indian Reorganization Act or

chartered under the Indian

Reorganization Act; any tribal

organization under the Indian SelfDetermination and Education

Assistance Act; and any economic

enterprise under the Indian Financing

Act of 1974 will be considered livestock

producers so long as they meet the

terms of the definition.

§ 1439.204 Sign-up period.

A request for benefits under this

subpart must be submitted to the CCC

at the Farm Service Agency county FSA

office serving the county where the

livestock loss occurred. All applications

and supporting documentation must be

filed in the county FSA office prior to

the close of business on:

(a) November 1, 1999, or such other

date as established by CCC for 1999 LIP,

Phase I, or

(b) February 18, 2000, or such other

date as established by CCC for 1999 LIP,

Phase II.

§ 1439.205 Proof of loss.

(a) Livestock producers must, in

accordance with instructions issued by

the Deputy Administrator, provide

adequate proof that the:

(1) Loss of eligible livestock occurred

in an eligible county in the area of

Presidential designation or Secretarial

declaration;

(2) That the death of the eligible

livestock was reasonably related to the

recognized natural disaster; and

(3) The death of the livestock

occurred:

(i) Between May 2, 1998, and May 21,

1999 inclusive for 1999 LIP, or

(ii) For 1999 LIP, Phase II, due to a

disaster that was the subject of a

Presidential or Secretarial disaster

declaration, that was requested between

May 22, 1999, and December 31, 1999,

inclusive, and was subsequently

approved.

(b) The livestock producer shall

provide any available supporting

documents that will assist the county

committee, or is requested by the county

committee, in verifying the loss and

quantity of eligible livestock that

perished in the natural disaster.

Examples of supporting documentation

include, but are not limited to: purchase

records, veterinarian receipts, bank loan

papers, rendering truck certificates,

Federal Emergency Management Agency

and National Guard records, auction

barn receipts, and any other documents

available to confirm the presence of the

livestock and subsequent losses.

Certifications by third parties or the

producer and other such documentation

as the county committee determines to

be necessary in order to verify the

information provided by the producer

must also be submitted. Third-party

verifications may be accepted only if the

producer certifies in writing that there

is no other documentation available.

Third-party verification must be signed

by the party that is verifying the

information. Failure to provide

documentation that is satisfactory to the

county committee will result in the

disapproval of the application by the

county committee.

(c) Livestock producers shall certify

the accuracy of the information

provided. All information provided is

subject to verification and spot checks

by the CCC. A failure to provide

information requested by the county

committee or by agency officials is

cause for denial of any application filed

under this part.

§ 1439.206 Indemnity benefits.

(a) Livestock indemnity payments for

losses of eligible livestock as

determined by CCC are authorized to be

made to livestock producers who file an

application for the specific livestock

category in accordance with instructions

issued by the Deputy Administrator, if

the:

(1) Livestock producer submits an

approved proof of loss in accordance

with § 1439.205; and

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(2) County or State committee

determines that because of an eligible

disaster condition the livestock

producer had a loss in the specific

livestock category in excess of the

normal mortality rate established by

CCC, based on the number of animals in

the livestock category that were in the

producer’s inventory at the time of the

disaster.

(b) If the number of losses in the

animal category exceeds the normal

mortality rate established by CCC for

such category, the loss of livestock that

shall be used in making a payment shall

be the number of animal losses in the

animal category that exceed the normal

mortality threshold established by CCC.

(c) Payments shall be calculated by

multiplying the national payment rate

for the livestock category as determined

by CCC, by the number of qualifying

animals determined under (b) of this

section. Adjustments, if necessary, shall

apply in accordance with § 1439.207.

(d) Payments that are earned by a

person under the livestock indemnity

program may be assigned in accordance

with the provisions of part 1404 of this

chapter.

§ 1439.207 Availability of funds.

(a) In the event that the total amount

of eligible claims submitted under this

subpart exceeds the amount available as

specified in paragraph (b) of this

section, then each payment shall be

reduced by a uniform national

percentage.

(b) Amounts available for payments

under this subpart shall be:

(1) $3 million for 1999 LIP, Phase I or

(2) The amount determined to be

appropriate such that payments for LIP,

Phase II and the 1999 Livestock

Assistance Program provided for in this

part do not exceed $200 million as

specified in § 1439.108 minus other

adjustments as may be appropriate.

(c) Such payment reductions shall be

applied after the imposition of

applicable per-person payment

limitation provisions. Notwithstanding

any other provision of law, the payment

limits for Phase I and II shall be

considered separate limits except to the

extent, if any, that a producer’s recovery

under the 2 phases are for losses from

the same disaster.

§ 1439.208 Limitations on payments.

(a) No person, as determined in

accordance with part 1400 of this

chapter, may receive benefits for

livestock losses in excess of:

(1) $50,000 for 1999 LIP, or

(2) $40,000 for 1999 LIP, Phase II.

(b) No person may receive payments

under this subpart for the same losses

that the producer has received or will

receive compensation under any other

program provided for in this part.

Payments under this part for other

losses shall not, however, reduce the

amount payable under this part. As

provided for in § 1439.11, no person

shall be eligible to receive any payment

under this subpart if such person’s

annual gross revenue exceeds $2.5

million.

(c) Disaster benefits under this part

are not subject to administrative offset

under § 1403.8 of this chapter except as

otherwise provided by the Deputy

Administrator.

(d) No interest will be paid or accrue

on disaster benefits under this part that

are delayed or are otherwise not timely

issued unless otherwise mandated by

law.

Subpart D—Pasture Recovery Program

§ 1439.301 Administration.

(a) The regulations in this part will be

administered under the general

supervision and direction of the

Executive Vice President, CCC, and the

Administrator, Farm Service Agency

(FSA), through the Deputy

Administrator. In the field, the

regulations in this part will be

administered by the State and county

FSA committees (‘‘State committees’’

and ‘‘county committees’’, respectively).

(b) State executive directors, county

executive directors, and State and

county committees do not have the

authority to modify or waive any of the

provisions in this part unless

specifically authorized by the Deputy

Administrator.

(c) The State committee may take any

action authorized or required by this

part to be taken by the county

committee that has not been taken by

such committee, such as:

(1) Correct or require a county

committee to correct any action taken by

such county committee that is not in

accordance with this part; or

(2) Require a county committee to

withhold taking any action that is not in

accordance with this part.

(d) No delegation herein to a State or

county committee shall preclude the

Executive Vice President, CCC, and the

Administrator, FSA, or a designee, or

the Deputy Administrator from

determining any question arising under

this part or from reversing or modifying

any determination made by a State or

county committee.

(e) Data furnished by the applicants

will be used to determine eligibility for

program benefits. Although

participation in the PRP is voluntary,

program benefits will not be provided

unless the participant furnishes the

appropriate data.

(f) CCC may consult with other

Federal agencies, State agencies, or

other non-USDA sources for such

assistance as is determined by CCC to be

necessary to implement this part.

§ 1439.302 Definitions.

The following definitions shall be

applicable to this subpart:

Applicant means, unless the context

indicates otherwise, the owner or

operator.

Contract Period means the period of

time the PRP contract is in effect.

Federally-owned land means land

owned by the Federal Government or

any department, bureau, or agency

thereof, or any corporation whose stock

is wholly owned by the Federal

Government.

Forage crop means a perennial stand

of grasses or legumes that are intended

for use by livestock for grazing and are

customarily used for that purpose by

local producers.

Hayland means land that was or has

been routinely used to produce hay.

Livestock means beef and dairy cattle,

buffalo and beefalo (when maintained

on the same basis as beef cattle), sheep,

goats, swine, and equine animals used

commercially for human food or kept

for the production of food or fiber.

Local FSA office means the FSA office

in the local USDA service center in

which the FSA records are maintained

for the farm or ranch that includes the

pasture land that the applicant is

seeking to enroll in the PRP.

Operator means a person who is in

general control of the farming operation

on the farm, as determined by FSA for

CCC.

Owner means a person or entity who

is determined by FSA to have sufficient

legal ownership of the land, including a

person who is buying the acreage under

a purchase agreement; each spouse in a

community property State; each spouse

when spouses own property jointly; and

a person who has life-estate in the

property.

Participant means an owner or

operator or tenant who has entered into

a PRP contract.

Pasture land means generally

enclosed land devoted to a perennial

forage crop used and suitable for grazing

of livestock.

Payment means, unless the context

indicates otherwise, the payment

specified in the PRP contract that,

subject to the availability of funds, is

made to a participant to compensate

such participant for reestablishing an

approved forage crop on eligible pasture

land in the PRP.

36574 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

Practice means with respect to

practices to be approved for relief under

this subpart, an approved measure to

cost-effectively reseed pasture, and, in

conjunction with seeding, as necessary,

fertilize to reestablish a forage crop on

eligible pasture land damaged or

destroyed by drought, as determined by

CCC.

Rangeland means land having

indigenous, unimproved vegetation that

may be used or suitable for open

roaming and grazing of livestock.

State-owned land means land owned

by a State Government or any

department, bureau, or agency thereof,

including political subdivision of a

State, as determined by CCC.

State Technical Committee means

that committee established pursuant to

16 U.S.C. 3861 to provide information,

analysis, and recommendations to the

Department of Agriculture.

Technical assistance means the

assistance provided in connection with

the PRP to owners or operators by FSA

or other authorized designee of the

Secretary in determining the eligibility

of land and implementing and certifying

eligible practices.

§ 1439.303 General description.

Under the PRP, the CCC will enter

into contracts with eligible producers to

provide payments to assist producers to

reestablish the damaged or destroyed

pasture land to an approved forage crop.

Contracts will require the producer to

maintain the new crop for three full

years after the calendar year of

installation.

§ 1439.304 Eligible persons.

In order to be eligible to enter into a

PRP contract in accordance with this

part, a person must be an owner or

operator of eligible pasture land that

was damaged or destroyed by drought or

related conditions during calendar year

1999 and:

(a) Must normally graze livestock on

such pasture land; and

(b) If an operator of eligible land that

the operator does not own, must provide

satisfactory evidence that such operator

will be in control of such eligible

pasture land for the full term of the PRP

contract period.

§ 1439.305 Eligible land.

(a) Except as otherwise provided in

this section, as determined by CCC or

the Deputy Administrator, to be eligible

for the PRP, land must be pastureland

that:

(1) As determined by CCC, is located

within a county that was:

(i) Approved for participation in the

1999 Livestock Assistance Program;

(ii) Had a 1999 LAP payment period

of at least 120 days; and

(iii) As of March 1, 2000, was

approved for assistance under the

Emergency Conservation Program

provided for in 7 CFR part 701 because

of a 1999 drought designation, or was

later approved for such participation

based upon an application filed by

March 1, 2000, and based upon drought

damage suffered in 1999.

(2) Has been established pasture land

on which livestock is normally grazed

or on which the forage crop was so

damaged or destroyed by drought or

related conditions in calendar year 1999

that the forage crop will not return in

the 2000 grazing year, and seeding is

required to reestablish the forage crop,

as determined by the Deputy

Administrator;

(b) Notwithstanding paragraph (a) of

this section, land, as determined by CCC

or the Deputy Administrator, shall be

ineligible for enrollment if the pasture

land is:

(1) Federal-operated land;

(2) State-operated land;

(3) Hayland; or

(4) Rangeland, as determined by the

Deputy Administrator.

§ 1439.306 Duration of contracts.

Contracts under this subpart and their

forage crop maintenance requirements

shall run through December 31, 2003;

provided further that the installation of

the practice must be completed no later

than December 31, 2000.

§§ 1439.307–1439.319 [Reserved]

§ 1439.320 Obligations of participant.

All participants subject to a PRP

contract must agree to:

(a) Carry out the terms and conditions

of the PRP contract including carrying

out all approved practices and meeting

the schedule of dates for seeding and for

maintenance measures provided for in

the contract to establish and maintain

the approved forage crop;

(b) Comply with all requirements of

part 12 of this title;

(c) Do whatever else is necessary to

establish and maintain the required

forage crop according to the required

practice requirements on the land

subject to that contract and take such

other actions that may be required by

CCC throughout the PRP contract period

as needed to insure that the purposes of

the contract are met;

(d) Comply with noxious weed laws

of the applicable State or local

jurisdiction on such land;

(e) Control, subject to the contract, all

weeds, insects, pests and other

undesirable species to the extent

necessary to ensure that the

establishment and maintenance of the

approved forage crop is adequately

protected, as determined by CCC;

(f) Not harvest the re-seeded cover

crop at any time during the contract

period; and,

(g) Be jointly and severally

responsible with other persons

qualifying for payments under this

program on the same land for

compliance with such contract and the

provisions of this part and for any

refunds, payment adjustments, or

liquidated damages that may be

required for violations of any of the

terms and conditions of the PRP

contract.

§ 1439.321 Obligations of the Commodity

Credit Corporation.

Subject to the availability of funds,

CCC shall:

(a) Upon establishment of the

required forage crop, and provided all

other eligibility criteria have been met,

make PRP payments to participants in

accordance with the provisions of this

part; and

(b) Provide such technical assistance

as it determines necessary to assist the

participant in carrying out the PRP

contract.

§ 1439.322 Eligible practices.

Eligible practices are those practices

specified in the contract that meet all

quantity and quality standards needed

to cost-effectively:

(a) Reestablish the approved forage

crop, as determined by the Deputy

Administrator, on acreage subject to the

contract, including reseeding;

(b) Meet environmental laws and

regulations, as applicable, for the

contract period; and

(c) Accomplish other purposes of the

program as determined by the Deputy

Administrator.

§§ 1439.323–1439.329 [Reserved]

§ 1439.330 Signup.

Only applications for contracts

submitted during designated signup

periods as announced by CCC will be

approved.

§ 1439.331 Applications for PRP contracts.

Applicants may submit applications

to participate in the PRP subject to

§ 1439.330 of this part. Applications

may be automatically accepted upon

certification by the applicant that:

(a) The land meets the eligibility

requirements of § 1439.305; and

(b) The applicant meets the eligibility

requirements of § 1439.304; and

(c) The applicant certifies that the

pasture land to be enrolled in the PRP

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36575

was damaged or destroyed by drought or

related conditions in calendar year 1999

so that seeding is required to reestablish

the qualifying forage crop.

§ 1439.332 PRP contract.

(a) In order to enroll land in the PRP,

the participant must enter into a

contract with CCC.

(b) The PRP contract will be

comprised of:

(1) The terms and conditions for

participation in the PRP; and

(2) Any other materials or agreements

determined necessary by CCC.

(c) In order to enter into a PRP

contract, the applicant must submit an

application to participate at the local

FSA office in the USDA service center.

(d) The PRP contract must, within the

dates established by CCC, be signed by

the applicant.

(e) The Deputy Administrator is

authorized to approve PRP contracts on

behalf of CCC.

(f) As determined by CCC, PRP

contracts may be terminated before the

expiration date when:

(1) The owner loses control of, or

transfers, all or part of the acreage under

contract and the new owner does not

wish to continue the contract;

(2) The participant(s) voluntarily

request in writing to terminate the

contract and obtains the approval of

CCC subject to such conditions on

approval as may be imposed by CCC;

(3) The participant(s) are not in

compliance with the terms and

conditions of the contract;

(4) The same acreage is later enrolled

in another State, Federal, or local

conservation program, unless the

Deputy Administrator approves

otherwise;

(5) The PRP practice fails after a

certain time period, as determined by

the Deputy Administrator, and the CCC

determines the cost of restoring the

cover outweighs the benefits received

from the restoration; or

(6) The PRP contract was approved

based on erroneous eligibility

determinations.

(g) When a PRP contract is

terminated, the participant must, except

as agreed to by CCC, refund all or part

of the payments made with respect to

such contract plus interest thereon, as

determined by CCC, and shall pay

liquidated damages as provided for in

such contract. CCC, in its discretion,

may permit a lesser payment to the

extent that such a reduction will not

impair program operations.

§ 1439.333 Contract modifications.

By mutual agreement between CCC

and the participant, a PRP contract may

be modified in order to:

(a) Decrease acreage in the PRP;

(b) Facilitate the practical

administration of the PRP; or

(c) Accomplish the goals and

objectives of the PRP, as determined by

the Deputy Administrator.

§ 1439.334–1439.339 [Reserved]

§ 1439.340 Payments.

(a) Payments shall be made available

upon a determination by CCC that an

eligible practice, or an identifiable unit

thereof, has been established in

compliance with the appropriate

standards and specifications. Payments

will be prorated if requests for

assistance exceed available funding.

(b) Except as otherwise provided for

in this part, payments may be made

under the PRP only for the cost-effective

establishment or installation of an

eligible practice.

(c) Subject to the availability of funds,

payments shall be made in such amount

and in accordance with such time

schedule as may be agreed upon and

specified in the PRP contract.

(d) Payment shall be made on a peracre basis.

(e) The payment shall be divided

among the participants on a single

contract in the manner agreed upon in

such contract.

(f) The maximum amount of all

payments that a person may receive

under the PRP shall not exceed $2,500.

The regulations set forth at part 1400 of

this chapter shall be applicable in

making certain eligibility and ‘‘person’’

determinations as they apply to

payment limitations under this part.

(g) Payments shall be limited as

needed or appropriate to account for

mandatory or discretionary limits on

payments.

§ 1439.341 Levels and rates for payments.

(a) As determined by the Deputy

Administrator, CCC shall pay not more

than 50 percent of the average cost of

reestablishing the approved forage crop,

including reseeding, on eligible land.

(b) The average cost of performing a

practice may be determined by CCC

based on recommendations from the

State Technical Committee or on such

other basis as it deemed appropriate.

Such cost may be the average cost in a

State, a county, or a part of a county or

counties, as determined by the Deputy

Administrator.

(c) Notwithstanding paragraph (a) or

(b) of this section, no payment shall

exceed $75 per acre without approval of

the Deputy Administrator. In no case

shall a payment exceed $125 per acre.

§ 1439.342 Method of payment.

Payments made by CCC under this

part may be made in cash, in kind, in

commodity certificates, or any

combination of such methods of

payment in accordance with part 1401

of this chapter, unless otherwise

specified by CCC.

§§ 1439.343–1439.349 [Reserved]

§ 1439.350 Payments to participants.

Payments shall be made to the

participants responsible for the

establishment of the practice.

§ 1439.351 Violations.

(a) If a participant fails to carry out

the terms and conditions of a PRP

contract, CCC may terminate the PRP

contract.

(b) If the PRP contract is terminated

by CCC in accordance with this section

then, in addition to all such other

remedies as may be provided for in this

subpart or elsewhere:

(1) The participant shall forfeit all

rights to payments under such contract

and refund all payments previously

received together with interest; and

(2) Pay liquidated damages to CCC in

such amount as specified in the

contract.

(c) If the Deputy Administrator

determines such failure does not

warrant termination of such contract,

the Deputy Administrator may authorize

relief as the Deputy Administrator

deems appropriate.

(d) CCC may also terminate a PRP

contract without sanction if the

participant agrees to such termination

and CCC determines such termination to

be in the public interest.

(e) CCC may reduce a demand for a

refund under this section to the extent

CCC determines that such relief would

be appropriate and will not deter the

accomplishment of the goals of the

program.

§ 1439.352 Executed PRP contract not in

conformity with regulations.

If, after a PRP contract is approved by

CCC, CCC discovers that the PRP

contract is not in conformity with the

provisions of this part, the provisions of

the regulations shall prevail and the

contract may be terminated.

§ 1439.353 Performance based upon

advice or action of the Department.

The provisions of § 718.8 of this title

relating to performance based upon the

action or advice of a representative of

the Department shall be applicable to

this part.

§ 1439.354 Access to land under contract.

(a) The applicant or participant shall,

as requested, provide all representatives

36576 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

or designees of CCC with access to all

land that is:

(1) The subject of an application for

a contract under this part; or

(2) Under contract or otherwise

subject to this part.

(b) With respect to such land

identified in paragraph (a) of this

section, the participant or applicant

shall provide such representatives with

access to examine records with respect

to such land for the purpose of

determining compliance with the terms

and conditions of the PRP.

§ 1439.355 Miscellaneous.

(a) Any remedies permitted CCC

under this part shall be in addition to

any other remedy, including, but not

limited to criminal remedies, or actions

for damages in favor of CCC, or the

United States, as may be permitted by

law.

(b) Absent a scheme or device to

defeat the purpose of the program, when

an owner loses control of PRP acreage

due to foreclosure, the Deputy

Administrator may waive the demand

that could otherwise be made for

refunds.

(c) Payments under this subpart are

subject to provisions contained in

Subpart A of this part including, but not

limited to provisions concerning

misrepresentations, payment

limitations, limitations on eligibility

tied to the person’s gross income, and

refunds to CCC, liens, assignment of

payments, and appeals, and

maintenance of books and records. In

addition other parts of this chapter and

of chapter VII relating to payments in

event of death, the handling of claims,

and other matters may apply, as may

other provisions of law and regulation.

(d) Any payments not earned that

have been paid must be returned with

interest subject to such other remedies

as may be allowed by law.

(e) No interest will be paid or accrue

on benefits under this subpart that are

delayed or otherwise not timely issued

unless otherwise mandated by law.

(f) Nothing in this subpart shall

require a commitment of funds to this

subpart in excess of that determined to

be appropriate by the Deputy

Administrator and/or CCC.

(g) Any payment otherwise due under

this subpart will be reduced to the

extent that it is determined that such

payment produces a duplicate benefit

under another program operated by the

Department of Agriculture and that to

make such duplicate payment would be

contrary to the purposes of the program.

(h) In no instance, unless approved by

the Deputy Administrator in accordance

with law, may the amount expended

under this subpart exceed an amount

that, when added to the amounts

expended for the 1999 LAP payments

and for the Livestock Indemnity

Program, Phase II, exceeds $200 million.

(i) Payments under this subpart shall

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

found at part 1403 of this chapter shall

be applicable to contract payments

except to the extent that an exemption

if provided for by the Executive Vice

President, CCC.

(j) Any producer entitled to any

payment may assign any payments in

accordance with regulations governing

assignment of payment found at part

1404 of this chapter.

(k) In those instances in which, prior

to the issuance of this regulation, a

producer has signed a power of attorney

on an approved FSA–211 for a person

or entity indicating that such power

shall extend to ‘‘all above programs’’,

without limitation, such power will be

considered to extend to this program

unless by June 22, 2000 the person

granting the power notifies the local

FSA office for the control county that

the grantee of the power is not

authorized to handle transactions for

this program for the grantor.

Subpart E—Livestock Indemnity

Program for Contract Growers

§ 1439.401 Applicability.

This subpart sets forth the terms and

conditions of the Livestock Indemnity

Program for Contract Growers. Under

Title I of the Supplemental

Appropriations Act (Public Law 106–

113, 113 Stat. 1501), the Secretary is

specifically authorized to use $10

million to provide assistance to persons

who raise livestock owned by other

persons for income losses sustained

with respect to livestock during 1999 if

the Secretary finds that such losses are

the result of natural disasters. Utilizing

that authority, this subpart, accordingly,

allows for benefits to be paid, up to that

amount, to eligible producers that

sustained a loss of income directly

attributed to a reduction in the

production of livestock and livestock

products from livestock that were

entirely owned by others, due to or as

a result of natural disasters that

occurred from January 1 through

December 31, 1999, in those areas for

which a Presidential or Secretarial

Declaration was approved. Producers in

contiguous counties that were not

designated as a disaster area in their

own right are not eligible for benefits

under this part. Benefits will be

provided with respect to eligible

livestock where the death occurred in

the disaster area during January 1

through December 31, 1999, and where

the death was reasonably related to the

disaster that prompted the disaster

declaration as determined by the Deputy

Administrator of Farm Programs, or

designee. The livestock had to be in

possession of the applicant during the

time in which the disaster occurred.

§ 1439.402 [Reserved]

§ 1439.403 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering this Livestock

Indemnity Program for Contract

Growers. Definitions in § 1439.3 shall

also be applicable, except where those

definitions conflict with the definitions

set forth in this subpart. The following

terms shall have the following

meanings:

Application means the request for

benefits and the necessary

documentation supporting such a

request.

Contract means, with respect to

contracts for the handling of livestock,

an agreement between the livestock

producer or grower and the livestock

owner setting forth the specific terms,

conditions and obligations of the parties

involved regarding the production of

livestock and livestock products.

Deputy Administrator means Deputy

Administrator for Farm Programs, Farm

Service Agency (FSA), or a designee.

Eligible livestock means livestock that

are:

(1) Beef and dairy cattle, sheep, goats,

swine, poultry (including egg-producing

poultry), equine animals used for food

or in the production of food, and buffalo

and beefalo when buffalo and beefalo

are maintained on the same basis as beef

cattle, and

(2) Was produced by the applicant

subject to a contractual agreement

between the such producer or grower

and the livestock owner.

Eligible livestock producer means,

with respect to particular livestock, one,

other than the owner of the livestock,

who possesses an independent financial

interest in the eligible livestock or

products derived from such eligible

livestock, as defined and limited by the

terms and conditions of a contractual

agreement with the livestock owner; and

is a citizen or a legal resident alien of

the United States. Such producer may

be individual or may be a farm

cooperative, private domestic

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36577

corporation, partnership, or joint

operation in which the majority interest

is held by members, stockholders, or

partners who are citizens of, or legal

resident aliens in, the United States, if

such cooperative, corporation,

partnership, or joint operation possesses

a financial interest, but not as owner, in

the eligible livestock or products

derived from such eligible livestock.

Also such producer may also be an

Indian tribe (as defined in section 4(b)

of the Indian Self-Determination and

Education Assistance Act and Education

Assistance Act); an Indian organization

or entity chartered under the Indian

Reorganization Act or chartered under

the Indian Self-Determination and

Education Assistance Act; or an

economic enterprise under the Indian

Financing Act of 1974.

§ 1439.404 Application period.

(a) A request for benefits under this

subpart must be submitted to CCC at the

county FSA office serving the county

where the loss occurred. All requests for

benefits and supporting documentation

must be filed in the county FSA office

by May 1, 2000, or such other date as

established by CCC.

(b) Data furnished by the applicants

will be used to determine eligibility for

program benefits. Furnishing the data is

voluntary; however, without such data,

program benefits will not be approved

or provided.

§ 1439.405 Proof of loss.

(a) Livestock producers must, in

accordance with instructions issued by

the Deputy Administrator, provide

adequate proof that the loss of eligible

livestock or livestock products, and the

corresponding reduction of income,

occurred in the area of a Presidential

designation or Secretarial declaration

referred to in § 1439.401 and that the

death of the eligible livestock was

reasonably related to the recognized

natural disaster. The documentary

evidence of loss, quantity of the loss,

and type of eligible livestock claimed

for payment, shall be reported to CCC

together with any supporting

documentation under paragraph (b) of

this section.

(b) The livestock producer shall

provide any available supporting

documents that will assist the county

committee in verifying the loss and the

quantity of eligible livestock that

perished in the natural disaster.

Examples of supporting documentation

include, but are not limited to: written

contracts, production records,

veterinarian receipts, bank loan papers,

rendering truck receipts, Federal

Emergency Management Agency and

National Guard records, and any other

documents available to confirm the

presence of the livestock and the

subsequent losses. Certification of third

parties or the producer and other such

documentation as the county committee

determines to be necessary for the

verification of the information provided

by the applicant may be submitted,

subject to review and approval of the

county committee. Failure to provide

documentation that is satisfactory to the

county committee can result in

disapproval of the application by the

county committee.

(c) In all circumstances, livestock

producers shall certify to the accuracy

of the information provided. As

provided by various statutes, providing

a false certification to the government is

punishable by imprisonment, fines and

other penalties. All such remedies, as

well as all civil remedies, may be

applied. All information provided is

subject to verification and spot check by

the CCC.

§ 1439.406 Indemnity benefits.

(a) Payment under this part shall only

be made to livestock producers who file

a Certification of Livestock Losses for

Eligible Disaster—Contract Growers,

Form CCC–661B, for the specific

livestock category for which relief is

sought and file such form in accordance

with instructions issued by the Deputy

Administrator. In addition, payment

may be made only if:

(1) The livestock producer submits a

proof of loss that meets the

requirements of § 1439.405; and

(2) The county or State committee

determines that because of an eligible

disaster condition the livestock

producer had a loss in the specific

category in excess of the normal

mortality rate established by CCC, based

on the number of animals in the

livestock category that were in the

livestock producer’s inventory at the

time of the disaster event.

(b) If the number of losses in the

animal category exceeds the normal

mortality rate established by CCC for

such category, the loss of eligible

livestock that shall be used in making a

payment shall be the number of animal

losses in the category that exceed the

normal mortality threshold established

by CCC.

(c) Subject to the availability of funds,

payments shall be made in an amount

determined by multiplying: the national

payment rate for the livestock category

as determined by CCC by the amount

specified in paragraph (b) of this

section.

§ 1439.407 Proration of claims.

In the event that the funds made

available to satisfy claims shall be less

than the demand for such funds, the

Deputy Administrator may reduce all

claims by a uniform percentage to

account for the level of available funds,

or may take such other measures as he

deems appropriate to apportion the

funds among the claimants. Such

payment reductions as are made shall be

applied after the imposition of

applicable payment limitation

provisions.

§ 1439.408 Miscellaneous provisions.

(a) Payments under this subpart are

subject to provisions contained in

subpart A of this part including, but not

limited to provisions concerning

misrepresentations, payment

limitations, limitations on eligibility

tied to the person’s gross income, and

refunds to CCC, liens, assignment of

payments, and appeals, and

maintenance of books and records. In

addition other parts of this chapter and

of chapter VII of this title relating to

payments in event of death, the

handling of claims, and other matters

may apply, as may other provisions of

law and regulation.

(b) Any payments not earned that

have been paid must be returned with

interest subject to such other remedies

as may be allowed by law.

(c) No interest will be paid or accrue

on benefits under this subpart that are

delayed or otherwise not timely issued

unless otherwise mandated by law.

(d) Nothing in this subpart shall

require a commitment of funds to this

subpart in excess of that determined to

be appropriate by the Deputy

Administrator and/or CCC.

(e) The Deputy Administrator can

deny or adjust claims in those instances

in which the party seeking relief was

affiliated with or related to the owner of

the livestock if it is determined by the

Deputy Administrator that such action

is consistent with the purposes of this

subpart and may take such action as is

deemed appropriate to avoid overlap

with relief available under other

subparts in this part.

(f) In no instance, unless otherwise

approved by the Deputy Administrator,

will the amount to be expended under

this program exceed $10 million.

36578 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

Subparts F-H [Reserved]

Subpart I—American Indian Livestock

Feed Program

§ 1439.900 [Reserved].

§ 1439.901 Applicability.

This subpart sets forth the terms and

conditions of a government-togovernment program titled the

American Indian Livestock Feed

Program (AILFP). The AILFP has been

allocated a budget of $12.5 million.

Assistance will be available in those

regions that CCC determines have been

affected by natural disaster, and where

a determination is made by the Deputy

Administrator for Farm Programs that a

livestock feed emergency exists on tribal

land. Funds made available under the

AILFP shall be available beginning in

crop year 1997 and in subsequent crop

years. Payments may become available

as contracts with tribal governments are

approved. If any other benefits are

received from the Department of

Agriculture for the same loss, then

payments under this part will be

reduced accordingly. Payments will

terminate when funds have been

exhausted, without respect to the date of

any application, or of when any contract

has been entered into by any tribal

government and CCC. Applicants will

receive benefits on a first-come, firstserved basis.

§ 1439.902 Administration.

(a) This subpart shall be administered

by CCC under the general supervision of

the Deputy Administrator for Farm

Programs, Farm Service Agency (FSA).

This program shall be carried out in the

field as prescribed in these regulations

and as directed in the contract executed

between the applicable tribal

government and CCC, except that in the

event any contract provision conflicts

with these regulations, the regulations

shall apply.

(b) Tribal governments, their

representatives, and employees do not

have authority to modify or waive any

provisions of the regulations of this

subpart.

(c) State and county committees, and

representatives and employees thereof,

do not have the authority to modify or

waive any provisions of regulations of

this subpart.

(d) The Deputy Administrator may

authorize State and county committees

to waive or modify deadlines, and other

program requirements in cases where

the applicant or tribe, as applicable,

show that circumstances beyond the

applicant’s or tribe’s control precluded

compliance with the deadline and

where lateness or failure to meet such

other requirements does not adversely

affect the operation of the program.

(e) The tribal government will, in

accordance with this part and in

coordination with the U.S. Department

of the Interior, Bureau of Indian Affairs

(BIA) and FSA State and county

committees, recommend the

geographical size and shape of the

region where the natural disaster has

occurred, and whether the regional

eligibility requirement has been

satisfied. Documentation to support the

reported natural disaster shall be

provided by the State FSA office and

shall accompany the recommendation.

The recommendation of eligibility must

be acted on by the Deputy

Administrator.

(f) The Deputy Administrator will

determine all prices with respect to

implementing the AILFP.

(g) The FSA State committee will

determine crop yields and livestock

carrying capacity with respect to

implementing the AILFP.

(h) Participation in the AILFP by a

tribal government for either the tribal

government’s benefits or for the benefit

of any eligible owner is voluntary and

is with the understanding that CCC will

not reimburse the tribal government or

its members for any administrative costs

associated with the administration or

implementation of the program.

(i) The provisions of subpart A shall

not apply to this part; however the

following provisions of 7 CFR part 1439,

as in effect on January 1, 1999 (see 7

CFR Parts 1200 to 1599, revised as of

January 1, 1999) shall apply in the

conduct of this program: §§ 1439.3,

1439.11 through 1439.22, 1439.24 as

well as §§ 1439.6(i)(1)(i), 1439.8(a), and

1439.9(d) through (f). Further, from

those same regulations, the provisions

of §§ 1439.10(a) and 1439.15, as in effect

on January 1, 1999 (see 7 CFR Parts

1200 to 1599, revised as of January 1,

1999) shall apply as set forth in

§§ 1439.908 and 1439.909.

§ 1439.903 Definitions.

The definitions set forth in this

section shall be applicable to the

program authorized by this subpart. The

terms defined in § 1439.3 shall also be

applicable except where those

definitions conflict with the definitions

set forth in this subpart. The following

terms shall have the following

meanings:

Animal Unit (AU) means a standard

expression of livestock based on a net

energy maintenance requirement equal

to 13.6 megacalories per day.

Animal Unit Day (AUD) means an

expression of expected or actual

stocking rate equal to one day.

Approving official means a

representative of the tribal government

who is authorized to approve an

application for assistance made in

accordance with this subpart.

Carrying capacity means the stocking

rate expressed as acres per animal unit

that is consistent with maintaining or

improving vegetation or related

resources.

Dependent Indian Community means

a limited category of Indian lands that

are neither reservations nor allotments

and is:

(1) Land set aside by the Federal

Government for the use of Indians as

Indian land, and

(2) Under Federal superintendence.

Deputy Administrator means the

Deputy Administrator for Farm

Programs, FSA, or designee.

Disaster period means the length of

time that damaging weather, adverse

natural occurrence, or related condition

has a detrimental affect on the

production of livestock feed.

Eligible feed for assistance means any

type of feed (feed grain, oilseed meal,

premix, or mixed or processed feed,

liquid or dry supplemental feed,

roughage, pasture, or forage) that

provides net energy megacalories and

that is consistent with acceptable

feeding practices and was not produced

by the owner.

Eligible livestock means beef and

dairy cattle; buffalo and beefalo

maintained on the same basis as beef

cattle; equine animals used for food or

used directly in the production of food;

sheep; goats; and swine.

Eligible owner means an individual or

entity, including the tribe, eligible to

participate in this program, who:

(1) Contributes to the production of

eligible livestock or their products;

(2) Has such contributions at risk;

(3) Meets the criteria set forth in

§ 1439.907; and

(4) Meets eligibility criteria set forth

by the tribal government in an approved

contract.

Livestock feed emergency means a

situation in which a natural disaster

causes more than a 35-percent reduction

in the feed produced in a region

determined in accordance with

§ 1439.904 for a defined period, as

determined by CCC. Any loss of feed

production attributable to overgrazing or

other factors not considered to be a

natural disaster as specified in this

subpart shall not be included in the loss

used to determine if a livestock feed

emergency occurred.

Natural disaster means damaging

weather, including but not limited to

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drought, hail, excessive moisture,

freeze, tornado, hurricane, excessive

wind, or any combination thereof; or an

adverse natural occurrence such as

earthquake, flood, or volcanic eruption;

or a related condition, including but not

limited to heat, or insect infestation,

that occurs as a result of aforementioned

damaging weather or adverse natural

occurrence prior to or during the crop

year that directly causes, accelerates, or

exacerbates the reduction of livestock

feed production.

Net energy maintenance means the

appropriate amount of net energy

needed to meet the daily maintenance

needs for livestock based on the weight

range by type of eligible livestock as

provided in this section, as determined

by CCC.

Region means a geographic area

suffering a livestock feed emergency

because of natural disaster as

determined by a tribal government in

accordance with § 1439.904.

Tribal Governed Land means:

(1) All land within the limits of any

Indian reservation;

(2) Dependent Indian communities;

(3) Any lands title to which is either

held in trust by the United States for the

benefit of an Indian tribe or Indian, or

held by an Indian tribe or Indian subject

to a restriction by the United States on

alienation; and

(4) Land held by an Alaska Native,

Alaska Native Village or village or

regional corporation under the

provisions of the Alaska Native Claim

Settlement Act or other Act relating to

Alaska Natives.

Tribe means an Indian or Alaska

Native tribe, band, nation, pueblo,

village, or community that the Secretary

of the Interior acknowledges to exist as

an Indian tribe pursuant to the Federally

Recognized Indian Tribe List Act of

1994 (25 U.S.C. 479a).

Type and weight range means the

weight range by type of livestock and

appropriate amount of energy required

to provide the daily maintenance needs

for livestock, as follows:

Kind/type Weight range

(lbs.) Daily energy requirement

(1) Beef cattle (Buffalo/Beefalo):

Beef .............................................................. Less than 400 .................................................. 3.01 NEm Mcal.

Beef .............................................................. 400–799 ........................................................... 5.59 NEm Mcal.

Beef .............................................................. 800–1099 ......................................................... 7.31 NEm Mcal.

Beef .............................................................. 1100+ ............................................................... 10.75 NEm Mcal.

Beef, cow ..................................................... All ..................................................................... 13.60 NEm Mcal.

Beef, bull ...................................................... 1000+ ............................................................... 11.18 NEm Mcal.

(2) Dairy cattle:

Dairy ............................................................. Less than 400 .................................................. 3.01 NEm Mcal.

Dairy ............................................................. 400–799 ........................................................... 5.59 NEm Mcal.

Dairy ............................................................. 800–1099 ......................................................... 7.31 NEm Mcal.

Dairy ............................................................. 1100+ ............................................................... 10.75 NEm Mcal.

Dairy, cow .................................................... Less than 1100 ................................................ 23.22 NEl Mcal.

Dairy, cow .................................................... 11–1299 ........................................................... 26.66 NEl Mcal.

Dairy, cow .................................................... 1300–1499 ....................................................... 28.38 NEl Mcal.

Dairy, cow .................................................... 1500+ ............................................................... 29.67 NEl Mcal

Dairy, bull ..................................................... 1000+ ............................................................... 12.47 NEm Mcal.

(3) Equine:

Equine .......................................................... Less than 450 .................................................. 6.2 DE Mcal.

Equine .......................................................... 450–649 ........................................................... 8.9 DE Mcal.

Equine .......................................................... 650–874 ........................................................... 11.6 DE Mcal.

Equine .......................................................... 875+ ................................................................. 17.3 DE Mcal.

(4) Swine:

Swine ............................................................ Less than 45 .................................................... 780 DE Kcal.

Swine ............................................................ 45–124 ............................................................. 1630 DE Kcal.

Swine ............................................................ 125+ ................................................................. 2867 DE Kcal.

Swine, sow ................................................... 235+ ................................................................. 9854 DE Kcal.

Swine, boar .................................................. 235+ ................................................................. 5446 DE Kcal.

(5) Sheep:

Sheep ........................................................... Less than 44 .................................................... 0.34 NEm Mcal.

Sheep ........................................................... 44–82 ............................................................... 0.77 NEm Mcal.

Sheep ........................................................... 83+ ................................................................... 0.95 NEm Mcal.

Sheep, ewe .................................................. 150+ ................................................................. 2.66 NEm Mcal.

Sheep, ram ................................................... 150+ ................................................................. 1.46 NEm Mcal.

(6) Goats:

Goats ............................................................ Less than 44 .................................................... 0.43 NEm Mcal.

Goats ............................................................ 44–82 ............................................................... 0.95 NEm Mcal.

Goats ............................................................ 83+ ................................................................... 1.29 NEm Mcal.

Goats, doe .................................................... 125+ ................................................................. 3.00 NEm Mcal.

Goats, doe, dairy 1994 and subsequent

crop years.

125+ ................................................................. 4.47 NEm Mcal.

Goats, buck .................................................. 125+ ................................................................. 1.80 NEm Mcal.

§ 1439.904 Region.

(a) The size of a region will consist of:

(1) An entire reservation, even if the

reservation is less than 320,000 acres; or

(2) Contiguous acreage of at least

320,000 acres and include land acreage

of an Indian reservation or tribal

governed land. If a region is delineated

based on minimum size of 320,000

acres, the region shall be delineated

without regard to the boundary of a

reservation or tribal governed land. If

36580 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

the acreage affected by the natural

disaster does not meet the minimum

acreage requirement specified in this

paragraph (a)(2), acreage will be added

from surrounding land until the

minimum requirement is met.

(b) The region must:

(1) Include acreage affected by the

natural disaster that is the basis for the

region’s designation;

(2) Correspond to the shape of the

natural disaster to the maximum extent

possible;

(3) Be defined in a manner that does

not intentionally include or exclude

owners or crops;

(4) Contain some acreage of tribal

governed land; and

(5) Have suffered a livestock feed

emergency as defined in § 1439.903.

§ 1439.905 Responsibilities.

(a) During the operation of this

program, CCC shall:

(1) Provide weather data, crop yields

and carrying capacities to tribes

requesting such information;

(2) Review contracts submitted by

tribal governments requesting disaster

regions; and

(3) Act as an agent for disbursing

payments to eligible livestock owners in

approved disaster regions.

(b) Tribal governments shall be

responsible for:

(1) Approaching CCC to obtain a

contract to participate in the AILFP

based on the tribe’s voluntary decisions

that participation will benefit its

members;

(2) Gathering, organizing, and

reporting accurate information regarding

disaster conditions and region;

(3) Advising livestock owners in an

approved region that they may be

eligible for payments, in addition to the

method and requirements for filing

applications;

(4) Accepting applications for

payment from individual livestock

owners;

(5) Determining that the information

provided by individual livestock owners

on payment applications is accurate and

complete and that the owner is eligible

for payments under this program;

(6) Submitting only accurate and

complete payment applications to the

designated FSA office acting as an agent

for disbursing payments to eligible

livestock owners.

(c) The owner or authorized

representative, shall:

(1) Furnish all the information

specified on the payment application, as

requested by CCC;

(2) Provide any other information that

the tribal government deems necessary

to determine the owner’s eligibility; and

(3) Certify that purchased feed was or

will be fed to the owner’s eligible

livestock.

§ 1439.906 Program availability.

(a) When a tribal government

determines that a livestock feed

emergency exists due to a natural

disaster, the tribal government may

submit a properly completed contract

requesting approval of a region. All

contracts requesting region approval

must be submitted by the later of

December 28, 1998, or 30 days after the

end of the disaster period specified on

the contract.

(b) Properly completed contracts shall

consist of:

(1) A completed form CCC–453,

Contract To Participate; and

(2) A completed form CCC–648,

Region Designation And Feed Loss

Assessment; and

(3) Supportive documentation as

determined by CCC including, but not

limited to:

(i) A map of the region delineated in

accordance with § 1439.904;

(ii) Historical production data and

estimated or actual production data for

the disaster year;

(iii) Climatological data provided by

the State FSA office; and

(iv) A report of an on-site survey.

(c) The Deputy Administrator shall

make a determination as to whether a

livestock feed emergency exists not later

than 30 days after receipt of a properly

completed contract made in accordance

with this subpart and shall notify the

tribal government and State FSA office

of such determination as applicable.

(d) The feeding period provided in the

approved contract will be for a term not

to exceed 90 days, except as provided in

paragraph (e) of this section. The

feeding period shall not be extended if

the livestock feed emergency no longer

exists. Notwithstanding the duration of

any feeding period, assistance under

this subpart terminates immediately and

without notice when program funds are

exhausted as specified in § 1439.901.

(e) The tribal government may request

to extend the feeding period not to

exceed an additional 90 days for each

extension if disaster conditions have not

diminished significantly and a livestock

feed emergency continues.

§ 1439.907 Eligibility.

(a) An eligible owner must own or

jointly own the eligible livestock for

which payments under this subpart are

requested. Notwithstanding any other

provision of this subpart, livestock

leased under a contractual agreement

that has been in effect at least 6 months

prior to the date of application for

assistance made under this subpart shall

be considered as being owned by the

lessee if the lease:

(1) Requires the lessee to furnish the

feed for such livestock; and

(2) Provides for an interest in such

livestock, such as the right to market a

share of the increase in weight of

livestock.

(b) A State or non-tribal local

government or subdivision thereof, or

any individual or entity determined to

be ineligible in accordance with

§ 1400.501 of this chapter are not

eligible for benefits under this subpart.

(c) Any eligible owner of livestock,

including the tribe, may file a CCCapproved AILFP payment application

with the tribal government. When such

a payment application is filed, the

owner and an authorized tribal

government representative shall execute

the certification contained on such

payment application no later than the

deadline established by CCC upon

approval of the region.

(d) To be eligible for benefits under

this subpart, livestock owners must own

or lease tribal governed land in the

delineated region; and have had

livestock on such land at the time of

disaster that is the basis for the region’s

designation.

(e) Eligible livestock owners shall be

responsible for providing information to

the tribal government that accurately

reflects livestock feed purchases for

eligible livestock during the feeding

period. False or inaccurate information

may affect the owner’s eligibility.

§ 1439.908 Payment application.

(a) Except as provided in paragraph

(d) of this section, payment applications

from interested eligible owners must be:

(1) Submitted to the tribal government

by the owner no later than a date

announced by the tribe, such date being

no later than the applicable date in

§ 1439.907(c); and

(2) Submitted by the tribal

government to the office designated by

CCC no later than a date announced by

CCC; and

(3) Accompanied by valid receipts

substantiating purchase of eligible feed

for assistance. Valid receipts must also

be accompanied by the certification

referenced in § 1439.907(d)(3) and shall

contain:

(i) The date of feed purchase, which

must fall within the eligible feeding

period as approved on the contract;

(ii) The names and addresses of the

buyer and the vendor;

(iii) The type of feed purchased;

(iv) The quantity of the feed

purchased;

(v) The cost of the feed; and

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36581

(vi) The vendor’s signature if the

vendor is not licensed to conduct this

type of business transaction.

(b) The tribal government shall review

each payment application, as specified

by CCC, for completeness and accuracy.

Except as provided in paragraphs (c)

and/or (d) of this section, the tribal

government shall approve those eligible

owners and applications meeting the

requirements of this subpart.

(c) No approving tribal government

member shall review and approve a

payment application for any operation

for which such member has a direct or

indirect interest. Such payment

application may be reviewed for

approval by a member of the tribal

government who is not related to the

applicant by blood or marriage.

(d) Tribal governments do not have

the authority to approve a payment

application for any operation for which

the tribe has a direct or indirect interest.

Payment applications for tribal owned

livestock shall contain an original

signature of a member of the tribal

government, signing as representing all

owners of the tribal owned livestock,

who possesses the authority to sign

documents on behalf of the tribe and

shall be submitted to an office

designated by the Secretary for

approval.

(e) No payment application, as

specified by CCC, shall be approved

unless the owner meets all eligibility

requirements. Information submitted by

the owner and any other information,

including knowledge of the tribal

government concerning the owner’s

normal operations, shall be taken into

consideration in making

recommendations and approvals. If

either the payment application is

incomplete or information furnished by

the owner is incomplete or ambiguous

and sufficient information is not

otherwise available with respect to the

owner’s farming operation in order to

make a determination as to the owner’s

eligibility, the owner’s payment

application, as specified by CCC, shall

be denied. The tribal government shall

be responsible for notifying the owner of

the reason for the denial and shall

provide the owner an opportunity to

submit additional information as

requested.

(f) All payment applications, as

specified by CCC, approved by the tribal

government will be submitted to a

designated FSA office for calculation of

payment.

§ 1439.909 Payments.

(a) Provided all other eligibility

requirements of this subpart are met and

funds are available, all eligible payment

applications submitted to the designated

FSA office shall have payments issued

to the applicant by CCC.

(b) If any term, condition, or

requirement of these regulations or

contract are not met, payments and

benefits previously provided by CCC

that were not earned under the

provisions of the application shall be

refunded.

(c) Each owner’s share of the total

payment shall be indicated on the

application, and each owner shall

receive benefits or final payment from

CCC according to benefits or payments

earned under the provisions of the

application.

(d) CCC may reduce the benefits

payable to an applicant under this

program if CCC has made assistance

available to such applicant under any

other CCC program with respect to the

same natural disaster.

(e) The amount of assistance provided

to any owner shall not exceed the

smaller of either:

(1) The dollar amount of eligible

livestock feed purchased, as

documented by acceptable purchase

receipts, less the dollar amount of any

sale of livestock feed (whether

purchased or produced) by the owner

during the feeding period; or

(2) 30 percent of the amount

computed by multiplying:

(i) The number of animal units

determined on the basis of the number

of eligible livestock of each type and

weight range; by

(ii) The smaller of the number of days

the owners provided feed to eligible

livestock or the total days in the

contract’s feeding period; by

(iii) The Animal Unit Day value, as

established by the Deputy Administrator

for Farm Programs, less the dollar

amount of any sale of livestock feed

(whether purchased or produced) by the

owner during the feeding period.

(f) Payments issued in conjunction

with this program will not be subject to

offset for debts incurred through

participation in any other program

conducted by the Department of

Agriculture.

§ 1439.910 Program suspension and

termination.

(a) The tribal government that

requested the AILFP assistance, may at

any time during the operation of a

program recommend suspension or

termination of the program.

(b) The Deputy Administrator may

suspend or terminate the program at any

time if:

(1) The tribal government requests

termination or suspension; or

(2) Funding is exhausted.

§ 1439.911 Appeals.

Any person who is dissatisfied with a

CCC determination made with respect to

this subpart may make a request for

reconsideration or appeal of such

determination in accordance with part

780 of this chapter. Any person who is

dissatisfied with a determination made

by the tribal authority should seek

reconsideration of such determination

with the tribe. Decisions and

determinations made under this subpart

not rendered by CCC or FSA are not

appealable to the National Appeals

Division.

§§ 1439.912–1439.915 [Reserved].

PART 1464—TOBACCO

10. The authority citation for 7 CFR

part 1464 continues to read as follows:

Authority: 7 U.S.C. 1421, 1423, 1441, 1445,

1445–1 and 1445–2; 15 U.S.C. 714b, 714c.

11. Amend 7 CFR part 1464 by adding

a new subpart D to read as follows:

Subpart D—Tobacco Disaster Assistance

Program

Sec.

1464.300 [Reserved]

1464.301 Applicability and basic terms for

payment.

1464.302 Administration.

1464.303 Definitions.

1464.304 Loss requirements.

1464.305 Signup.

1464.306 Proof of loss.

1464.307 Benefits.

1464.308 [Reserved]

1464.309 Offsets and assignments.

1464.310 Misrepresentation and scheme or

device.

1464.311 Refunds to CCC.

1464.312 Cumulative liability.

1464.313 Estate, trusts, and minors.

1464.314 Death, incompetence, or

disappearance.

1464.315 Appeals.

Subpart D—Tobacco Disaster

Assistance Program

§ 1464.300 [Reserved]

§ 1464.301 Applicability and basic terms

for payments.

(a) This subpart sets forth the terms

and conditions of the Tobacco Disaster

Assistance Program (TDAP) authorized

by Public Law 106–113. That legislation

provides $2.8 million to the Commodity

Credit Corporation (CCC) to be made

available to eligible persons who have

suffered quality or quantity losses due

to natural disasters on tobacco crops

harvested and placed in a warehouse

and not sold.

(b) Payments from the $2.8 million

allotted to this program shall be made

to eligible persons in proportion, as

determined by the Executive Vice

President of CCC, to each person’s

36582 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

relative quantity of qualifying tobacco

losses suffered due to natural disasters

on crops harvested and placed in a

warehouse and not sold.

§ 1464.302 Administration.

(a) This subpart shall be administered

by CCC under the general supervision of

the Executive Vice President of the CCC

and the Deputy Administrator for Farm

Programs of the Farm Service Agency of

the Department of Agriculture (who

shall be hereafter referred to in this part

as the ‘‘Deputy Administrator’’). The

program shall be carried out in the field

by State and county Farm Service

Agency committees (State and county

committees).

(b) State and county committees, and

representatives and employees thereof,

do not have the authority to modify or

waive any of the provisions of the

regulations in this part, as amended or

supplemented.

(c) The State committee shall take any

action required by this part that has not

been taken by the county committee.

The State committee shall also:

(1) Correct, or require a county

committee to correct, any action taken

by such county committee that is not in

accordance with this part; or

(2) Require a county committee to

withhold taking any action that is not in

accordance with this part.

(d) No delegations herein to a State or

county committee shall preclude the

Executive Vice President, CCC, 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.

§ 1464.303 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the Tobacco

Disaster Assistance Program of this

subpart. The terms defined in § 723.104

of this title shall also be applicable,

except where those definitions conflict

with the definitions set forth in this

subpart. The following terms shall have

the following meanings:

Deputy Administrator means the

Deputy Administrator for Farm

Programs, Farm Service Agency (FSA),

or a designee.

Eligible tobacco means 1999

marketing year flue-cured tobacco,

(types 11, 12, 13 and 14).

Tobacco producer means one who

possesses a beneficial interest in eligible

tobacco as defined in this subpart.

§ 1464.304 Loss requirements.

Except as otherwise determined by

the Deputy Administrator consistent

with the provisions of Public Law. 106–

113 authorizing the payment of the $2.8

million, to qualify for payment under

this part, the person seeking the

payment must have had a loss of eligible

tobacco in 1999 in North Carolina due

to hurricanes Dennis, Floyd or Irene and

such loss must have been a quality or

quantity loss on crops harvested and

placed in a warehouse and not yet sold

at the time that the loss occurred in the

warehouse.

§ 1464.305 Signup.

(a) For losses in North Carolina (as

provided for in § 1464.304) a request for

benefits under this subpart must be

submitted to the CCC at the county FSA

office that is designated as the

administrative office for the farm on

which the tobacco was produced. All

requests for benefits and supporting

documentation must be filed in the

county FSA office by the date

established by the Deputy

Administrator. However, parties seeking

an exception to the normal rules of

eligibility in § 1464.304 shall, in lieu of

filing a claim with the county

committee, file a petition directly with

the Deputy Administrator. Such

petitions for exception must be filed by

the date established by the Deputy

Administrator for filing requests for

benefits and supporting documentation,

or fifteen days after the date of the

publication of this regulation,

whichever is later, in order to be

considered.

(b) Data furnished by the applicants

will be used to determine eligibility for

program benefits. Furnishing the data is

voluntary; however, without it program

benefits will not be provided.

§ 1464.306 Proof of loss.

(a) Tobacco producers must, in

accordance with instructions issued by

the Deputy Administrator, provide

adequate proof that they suffered the

claimed loss. The documentary

evidence of the loss, quantity of the loss

and type of tobacco claimed for

payment shall be reported to CCC

together with any supporting

documentation as may be required

under paragraph (b) of this section.

(b) The tobacco producer shall

provide any available supporting

documents that may be requested by the

Farm Service Agency county committee

for purposes of verifying the loss.

Examples of supporting documentation

include, but are not limited to: auction

barn floor sheets, transportation

receipts, and any other documents

available to confirm the presence of the

tobacco on the warehouse floor and the

subsequent losses. Certifications of third

parties or the producer and other such

documentation as the county committee

determines to be necessary in order to

verify the information provided by the

producer may be requested and be

subject to review by the county

committee. Failure to provide

documentation that is satisfactory to the

county committee will result in

disapproval of the application by the

county committee.

(c) In all circumstances, tobacco

producers shall certify the accuracy of

the information provided.

§ 1464.307 Benefits.

The payment amount shall be

determined by apportioning the

available funds on a poundage basis

among the timely claims that are filed,

with an allowance for a reserve to

handle disputes. The Deputy

Administrator may make a preliminary

payment before making a final payment

in which case later adjustments may be

made and a refund may be due from the

payee to the CCC after such an

adjustment.

§ 1464.308 [Reserved]

§ 1464.309 Offsets and assignments.

(a) Except as provided in paragraph

(b) of this section, any payment or

portion thereof to any person shall 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 that the

regulations governing offsets and

withholdings found at part 1403 of this

chapter shall be applicable to payments

made under this part and such offsets

and withholdings may be taken against

such payments.

(b) Any producer entitled to any

payment may assign the right to receive

such payments, in whole or in part, as

provided in part 1404 of this chapter.

§ 1464.310 Misrepresentation and scheme

or device.

(a) A producer who is determined to

have erroneously represented any fact

affecting a program determination made

in accordance with this part shall not be

entitled to payments and must refund

all payments, plus interest determined

in accordance with part 1403 of this

chapter.

(b) A producer who is determined to

have knowingly:

(1) Adopted any scheme or device

that tends to defeat the purpose of the

program;

(2) Made any fraudulent

representation; or

(3) Misrepresented any fact affecting a

program determination, shall refund to

Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations 36583

CCC all payments, plus interest

determined in accordance with part

1403 of this chapter received by such

producer with respect to all applications

and the producer’s interest in all

applications shall be terminated.

§ 1464.311 Refunds to CCC.

(a) Persons who are party to the

tobacco disaster assistance program

application must refund to CCC any

excess payments made by CCC with

respect to such application.

(b) In the event that a benefit under

this subpart was established as the

result of erroneous information

provided by any person, the benefit

must be repaid with any applicable

interest.

§ 1464.312 Cumulative liability.

The liability of any person for any

penalty under this part or for any refund

to CCC or related charge arising in

connection therewith shall be in

addition to any other liability of such

person under any civil or criminal fraud

statute or any other provision of law

including, but not limited to, 18 U.S.C.

286, 287, 371, 641, 1001; 15 U.S.C.

714m; and 31 U.S.C. 3729.

§ 1464.313 Estate, trusts, and minors.

(a) Program documents executed by

persons legally authorized to represent

estates or trusts will be accepted only if

such person furnishes evidence of the

authority to execute such documents.

(b) A minor who is a producer shall

be eligible for assistance under this

subpart only if such person meets one

of the following requirements:

(1) The right of majority has been

conferred on the minor by court

proceedings or by statute;

(2) A guardian has been appointed to

manage the minor’s property and the

applicable program documents are

executed by the guardian; or

(3) A bond is furnished under which

the surety guarantees any loss incurred

for which the minor would be liable had

the minor been an adult.

§ 1464.314 Death, incompetence, or

disappearance.

In the case of death, incompetence, or

disappearance, of any person who is

eligible to receive assistance in

accordance with this part, such person

or persons specified in part 707 of this

title may receive such assistance.

§ 1464.315 Appeals.

The appeal, reconsideration, or

review of all determinations made

under this part, except the eligibility

provisions for kinds of tobacco and

others for which there are no appeal

rights because they involve matters of

general applicability, shall be allowed

in accordance with parts 11 and 780 of

this title.

12. Add part 1479 to subchapter B of

7 CFR chapter XIV to read as follows:

PART 1479—HARNEY COUNTY

FLOOD ASSISTANCE

Sec.

1479.1 Applicability.

1479.2 Administration.

1479.3 Definitions.

1479.4 Application process.

1479.5 County committee determinations of

general applicability.

1479.6 Loss criteria.

1479.7 Producer eligibility.

1479.8 Calculation of assistance.

1479.9 Availability of funds; payments.

Authority: Sec. 207, Pub. L. 106–113, 113

Stat. 1501.

§ 1479.1 Applicability.

This subpart sets forth the terms and

conditions applicable to flood assistance

for Harney County, Oregon. Benefits

will be provided to eligible producers in

Harney County, Oregon, on land where

flooding occurred during the 1999 crop

year, and has been subject to flooding,

one of the years 1994 through 1998.

§ 1479.2 Administration.

(a) This program shall be, to the

extent practicable and to the extent not

inconsistent with the provisions of this

part, be administered in the same

manner as the program provided for in

7 CFR part 1478 utilizing the regulations

effective in that part as of March 1,

2000.

(b) The program will be administered

under the general supervision of the

Executive Vice President, Commodity

Credit Corporation (CCC), and shall be

carried out in the field by State and

county Farm Service Agency (FSA)

committees.

(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 State FSA committee shall

take any action required by this part that

has not been taken by a county FSA

committee. The State FSA committee

shall also:

(1) Correct or require a county FSA

committee to correct any action taken by

such county FSA committee that is not

in accordance with this part; and

(2) Require a county FSA committee

to withhold taking or reverse any action

that is not in accordance with this part.

(e) No delegation herein to a State or

county FSA committee shall prevent the

Deputy Administrator from determining

any question arising under the program

or from reversing or modifying any

determination made by a State or county

FSA committee.

(f) The Deputy Administrator may

authorize the State and county

committees to waive or modify

deadlines or other program

requirements in cases where lateness or

failure to meet such other requirements

does not adversely affect the operation

of the program or when, in his or her

discretion, it is determined that an

exception should be allowed to provide

for a more equitable distribution of

benefits consistent with the goals of the

program provided for in this part.

§ 1479.3 Definitions.

Terms in this part shall have the same

meanings as those defined in § 1478.1 of

this chapter. In addition, for purposes of

this part and notwithstanding any

contrary definitions in part 718 of this

title or part 1478 of this chapter:

Application means the Form CCC–

454, which was previously used for the

Flood Compensation Program formerly

provided for in this chapter, which form

shall now be used for the program

provided for in this part. The CCC–454

shall be used to collect the information

necessary to determine the total acres

flooded for purposes of this program.

Calendar year 1999 means January 1,

1999 through December 31, 1999.

Cropland means cropland as defined

in part 718 of this chapter.

Forage means growing vegetation

used for food for domestic animals.

NASS means the National

Agricultural Statistics Service.

§ 1479.4 Application process.

(a) Producers must submit a

completed application by the date

established by the Deputy

Administrator. The application and any

supporting documentation shall be

submitted to the county FSA office with

administrative authority over a

producer’s eligible flooded land or to

the county FSA office that maintains the

farm records for the producer.

(b) Producers shall certify as to the

accuracy of all the information being

requested in the application, and

provide any other information to CCC

that the county FSA office or committee

deems necessary to determine the

producer’s eligibility.

§ 1479.5 County committee determinations

of general applicability.

(a) County committees shall

determine whether land that is the

subject of the application is land that

has suffered flood-related production

losses during calendar year 1999, and is

at the same time land to which the

following apply:

36584 Federal Register / Vol. 65, No. 111 / Thursday, June 8, 2000 / Rules and Regulations

(1) It is land that otherwise would

have been used for crops or for pasture

and could not be used because it was

inaccessible, incapable of production, or

the production was unusable during CY

1999, due to flooding;

(2) The land was inaccessible,

incapable of production, or the

production was unusable any one of the

years 1994 through 1998, due to

flooding; and

(3) The land has, otherwise, a history

of actual crop production or use as

pastureland at some time since 1990.

(b) In making the determination called

for in paragraph (a) of this section, the

County committee shall use what it

considers to be the best information

available including but not limited to:

Extension Service; Natural Resources

Conservation Service; aerial

photography; rainfall data; and general

knowledge of losses due to flooding.

(c) If the county Committee makes an

affirmative determination under

paragraph (a) of this section, the

producer with the affected acreage shall

be considered an ‘‘eligible producer’’ for

purposes of this part.

(d) For purposes of setting rental rates

for calculations required to be made

elsewhere in this part the county

committee shall use the established

rental rates for Harney County, for

cropland and pasture-land. These rates

shall be reviewed by the State

Committee and may be equal to the

estimated 5-year average rental rates for

all such land of each type in the county.

The State Committee may take into

account rates established for the

Conservation Reserve Program operated

under 7 CFR part 1410 and ensure,

subject to paragraph (e) of this section,

that the rates are comparable. The

Deputy Administrator shall review and

may adjust the rates for reasonableness

and consistency.

(e) Except as provided by the Deputy

Administrator, rental rates shall be

established based on NASS data, if

available for 1999.

§ 1479.6 Loss criteria.

(a)(1) The flooded land for which a

producer requests benefits must be

within the physical boundary of Harney

County, Oregon.

(b) To be eligible for benefits under

this subpart, a producer in Harney

County and contiguous counties must

have a tract of land that meets all the

following criteria:

(1) The land is cropland or pasture

land intended to be used for the

production of feed for livestock (haying,

grazing, or feed grain production) or

other agricultural use in CY 1999 and

one of the years 1994 through 1998;

(2) The land, for calendar year 1999,

was inaccessible or unable to be used

for crop production, grazing, or haying,

or the production was unusable because

of flooding;

(3) The land has been owned, leased

or under a binding cash lease by the

producer for crop year 1999;

(4) The land is a contiguous parcel of

land with an area equal to one acre or

more;

(5) The land actually produced a crop,

or was used for pasture, during or after

the 1990 crop year.

(c) On the CCC–454 producers shall

be required to certify on each farm the

number of flooded cropland and noncropland acres for the farm in 1999.

(d) All determinations as to the

amount of land eligible for enrollment

and compensation under this subpart

are subject to approval by the county

committee.

(e) The county committee may use

any available documentation to make

the determinations under paragraphs (b)

and (c) of this section, including but not

limited to: maps, acreage reports, slides,

precipitation data, water table levels

and disaster reports.

§ 1439.7 Producer eligibility.

(a) Producers in Harney County will

be eligible to receive benefits under this

part only if they have suffered 1999-

crop losses of eligible crops as a result

of flooding.

(b) Payments made for losses suffered

by eligible producers under this subpart

shall be subject to the provisions of

§§ 1478.4 through 1478.12 of this

chapter, and their successor regulations,

except as otherwise provided in this

subpart.

(d) No person as defined and

determined under part 1400 of this

chapter may receive more than $40,000

under this subpart.

(e) No person as defined and

determined under part 1400 of this

chapter will be eligible for payment

under this subpart if that person’s

annual gross receipts for the 1998 tax

year were in excess of $2.5 million. That

determination shall be made in the

manner provided for in § 1478.6 of this

chapter.

(f) The following entities are not

eligible for benefits under this subpart:

(1) State or local governments or

subdivisions thereof; or

(2) Any individual or entity who is a

foreign person as determined in

accordance with the provisions of

§ 1400.501 and § 1400.502 of this

chapter.

§ 1479.8 Calculation of assistance.

(a) The unadjusted value of this

emergency assistance determined with

respect to the flooded land in Harney

County for each producer shall not

exceed the amount obtained by adding

paragraphs (b) and (c) of this section.

(b) For each eligible producer with

respect to the applicable qualifying

cropland, the number of qualifying acres

will be multiplied by the established

local payment rate for cropland, as

determined by the county Committee in

accordance with instructions of the

Deputy Administrator.

(c) For each eligible producer with

respect to the applicable qualifying

pastureland or other land that does not

meet the FSA definition of ‘‘cropland,’’

the number of qualifying acres will be

multiplied by the established payment

rate for ‘‘non-cropland’’ acres.

§ 1479.9 Availability of funds; payments.

In the event that the total amount of

claims submitted under this subpart

exceeds the $1.09 million appropriated

for the program provided for in this

part, payments otherwise calculated

under § 1478.8 shall be reduced by a

uniform percentage to allow for a

proration of claims within the

appropriated amount. Such payment

reductions shall be after the imposition

of applicable payment limitation

provisions. Applications for payment

must be submitted by the time and in

the manner specified by the Deputy

Administrator.

Signed at Washington, DC, on May 30,

2000.

Keith Kelly,

Executive Vice President, Commodity Credit

Corporation.

[FR Doc. 00–13934 Filed 6–1–00; 3:45 pm]

BILLING CODE 3410–05–P