[Federal Register Volume 65, Number 111 (Thursday, June 8, 2000)]
[Rules and Regulations]
[Pages 36550-36584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13934]



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Part III





Department of Agriculture





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Commodity Credit Corporation



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7 CFR Part 1400 et al.



Agricultural Disaster and Market Assistance; Interim Final Rule

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

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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.

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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 Sec. 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: <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="5f2b3032000028362b2536381f283b3c71392c3e712a2c3b3e71383029">[email protected]</a>. 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: <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="fd899290a2a28a948987949abd8a999ed39b8e9cd38a999ed39a928b">[email protected]</a>.

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

[[Page 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 Sec. 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 
<a href="/cdn-cgi/l/email-protection#6c0409000902331f010518042c1b080f420a1f0d42191f080d420b031a"><span class="__cf_email__" data-cfemail="ed8588818883b29e80849985ad9a898ec38b9e8cc3989e898cc38a829b">[email protected]</span></a>.
    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 
<a href="/cdn-cgi/l/email-protection#5136343f340e233e22342330112635327f3722307f242235307f363e27"><span class="__cf_email__" data-cfemail="fd9a989398a28f928e988f9cbd8a999ed39b8e9cd3888e999cd39a928b">[email protected]</span></a>.
    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

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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 
<a href="/cdn-cgi/l/email-protection#c9bea8b0a7ac96aba3a6bba5a0ac89beadaae7afbaa8e7bcbaada8e7aea6bf"><span class="__cf_email__" data-cfemail="dbacbaa2b5be84b9b1b4a9b7b2be9bacbfb8f5bda8baf5aea8bfbaf5bcb4ad">[email protected]</span></a>.
    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 <a href="/cdn-cgi/l/email-protection#d0a4bfbd8fa7b9a4aab9b790a7b4b3feb6a3b1fea5a3b4b1feb7bfa6"><span class="__cf_email__" data-cfemail="f0849f9daf8799848a9997b0879493de968391de85839491de979f86">[email protected]</span></a>.

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 
Sec. 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 Sec. 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

[[Page 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 prevented-planting 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

[[Page 36554]]

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 Sec. 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 Sec. 802 of Pub. L. 106-78 (excluding any funds 
authorized by to carry out title IX of Pub. L. 106-78) and under 
Sec. 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 lowest-priced 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, Sec. 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

[[Page 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 Sec. 825 of the same legislation Congress 
provided that of the funds provided in Secs. 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 Sec. 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 Sec. 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.

[[Page 36556]]

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 Sec. 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 egg-producing 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 owner-
focused.
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, Sec. 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 Sec. 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 Sec. 803, which basically calls for the distribution of the 
funds to

[[Page 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, Sec. 803 called for 
the funds to be distributed in the same way as the States were or are 
distributing the so-called ``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 Sec. 803(c)(1) of Pub. L. 106-78 
and provided ``that the definition of eligible persons in 
Sec. 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 Sec. 803 without, as 
such, changing the distribution method called for in Sec. 803, and 
would seem to be limited to a technical adjustment of the eligibility 
definition contained in Sec. 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 flue-cured 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 Sec. 803 were reduced by the warehouse 
disasters caused by the floods. Of the tobaccos covered in Sec. 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

[[Page 36558]]

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.............     \4\2.0
Finalization of Existing Livestock Regulations...............   \5\ 15.5
Warehouse-Stored Tobacco Assistance..........................        2.8
Harney Co., Ore. Emergency Assistance........................       1.09
                                                              ----------
    Total....................................................    603.99
------------------------------------------------------------------------
\1\ After administrative expenses of approximately $12.4 million.
\2\ Total 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.
\4\ After 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 Sec. 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.

[[Page 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 mid-January, 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 per-animal 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.

[[Page 36560]]

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 Sec. 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.

[[Page 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.


Sec. 1400.1  [Amended]

    2. Amend the table in Sec. 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 Sec. 1400.2 by redesignating paragraphs (e) and (f) as (f) 
and (g), respectively, and adding new paragraphs (e) and (h) to read as 
follows:


Sec. 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


Sec. 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.


Sec. 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.


Sec. 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.

[[Page 36562]]

    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.


Sec. 1411.104  Misinformation and misaction.

    The provisions of Sec. 718.8 of this title are applicable to this 
part, with respect to performance based upon advice or action of county 
or State committees.


Sec. 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


Sec. 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 
Sec. 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 Sec. 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.


Sec. 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).


Sec. 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.


Sec. 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.


Sec. 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


Sec. 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.


Sec. 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.


Sec. 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.

[[Page 36563]]

Subpart D--Miscellaneous


Sec. 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.


Sec. 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 Sec. 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:


Sec. 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 1\3/32\ 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) 1\1/16\ 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 1\3/32\ 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 1\3/32\ inch cotton C.I.F. northern Europe and the average price 
of M 1\3/32\ 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 
1\3/32\ inch, cotton C.I.F. northern Europe and the average price of M 
1\3/32\ 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 1\3/32\ 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 1\3/32\ 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 1\1/16\ 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.


Sec. 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.


Sec. 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

[[Page 36564]]

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.


Sec. 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 Secs. 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).


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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).


Sec. 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).


Sec. 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.


Sec. 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 Sec. 1427.1109, 
by

[[Page 36565]]

    (2) The eligible payment quantity of the applicant, determined in 
accordance with Sec. 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.


Sec. 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


Sec. 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 Sec. 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.


Sec. 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 non-
statutory 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

[[Page 36566]]

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.


Sec. 1427.1202  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of program administration. The terms defined in 
Secs. 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 Wednesday-through-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 Wednesday-Tuesday 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.


Sec. 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 Sec. 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.


Sec. 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.


Sec. 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-

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 1427.1208  Payment.

    (a) Payments in accordance with this subpart shall be determined by 
multiplying:
    (1) The payment rate, determined in accordance with Sec. 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.

[[Page 36568]]

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


Sec. 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.


Sec. 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.


Sec. 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 Self-
Determination 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,

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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 late-payment 
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.


Sec. 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.


Sec. 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 cross-program payment limitations as may be consistent with the 
intent of this section and this part.


Sec. 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.


Sec. 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.

[[Page 36570]]

Subpart B--1998-99 Livestock Assistance Program


Sec. 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.


Sec. 1439.102  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering this subpart. The definitions in 
Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.

[[Page 36571]]

    (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 
Sec. 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.


Sec. 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 Secs. 1400.501 and 1400.502 of 
this chapter.


Sec. 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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.


Sec. 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


Sec. 1439.201  Applicability.

    (a) This subpart sets forth the terms and conditions applicable to 
the original 1999 Livestock Indemnity Program

[[Page 36572]]

(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.


Sec. 1439.202  Administration.

    Where circumstances preclude compliance with Sec. 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.


Sec. 1439.203  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering this subpart. The terms defined in 
Sec. 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 
Self-Determination 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.


Sec. 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.


Sec. 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.


Sec. 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 Sec. 1439.205; and

[[Page 36573]]

    (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 
Sec. 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.


Sec. 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 Sec. 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.


Sec. 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 Sec. 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 Sec. 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


Sec. 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.


Sec. 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.

[[Page 36574]]

    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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Secs. 1439.307-1439.319  [Reserved]


Sec. 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.


Sec. 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.


Sec. 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.


Secs. 1439.323-1439.329  [Reserved]


Sec. 1439.330  Signup.

    Only applications for contracts submitted during designated signup 
periods as announced by CCC will be approved.


Sec. 1439.331  Applications for PRP contracts.

    Applicants may submit applications to participate in the PRP 
subject to Sec. 1439.330 of this part. Applications may be 
automatically accepted upon certification by the applicant that:
    (a) The land meets the eligibility requirements of Sec. 1439.305; 
and
    (b) The applicant meets the eligibility requirements of 
Sec. 1439.304; and
    (c) The applicant certifies that the pasture land to be enrolled in 
the PRP

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 1439.334-1439.339  [Reserved]


Sec. 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 per-acre 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.


Sec. 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.


Sec. 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.


Secs. 1439.343-1439.349  [Reserved]


Sec. 1439.350  Payments to participants.

    Payments shall be made to the participants responsible for the 
establishment of the practice.


Sec. 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.


Sec. 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.


Sec. 1439.353  Performance based upon advice or action of the 
Department.

    The provisions of Sec. 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.


Sec. 1439.354  Access to land under contract.

    (a) The applicant or participant shall, as requested, provide all 
representatives

[[Page 36576]]

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.


Sec. 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


Sec. 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.


Sec. 1439.402  [Reserved]


Sec. 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 Sec. 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

[[Page 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.


Sec. 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.


Sec. 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 Sec. 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.


Sec. 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 Sec. 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.


Sec. 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.


Sec. 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.

[[Page 36578]]

Subparts F-H [Reserved]

Subpart I--American Indian Livestock Feed Program


Sec. 1439.900  [Reserved].


Sec. 1439.901  Applicability.

    This subpart sets forth the terms and conditions of a government-
to-government 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, first-served 
basis.


Sec. 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: Secs. 1439.3, 1439.11 
through 1439.22, 1439.24 as well as Secs. 1439.6(i)(1)(i), 1439.8(a), 
and 1439.9(d) through (f). Further, from those same regulations, the 
provisions of Secs. 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 Secs. 1439.908 and 1439.909.


Sec. 1439.903  Definitions.

    The definitions set forth in this section shall be applicable to 
the program authorized by this subpart. The terms defined in 
Sec. 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 Sec. 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 Sec. 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

[[Page 36579]]

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 Sec. 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        125+................................  4.47 NEm Mcal.
     subsequent crop years.
    Goats, buck.....................  125+................................  1.80 NEm Mcal.
----------------------------------------------------------------------------------------------------------------

Sec. 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

[[Page 36580]]

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 
Sec. 1439.903.


Sec. 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.


Sec. 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 
Sec. 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 Sec. 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.


Sec. 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 Sec. 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 CCC-approved 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.


Sec. 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 Sec. 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 Sec. 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

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 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.


Secs. 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


Sec. 1464.300  [Reserved]


Sec. 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

[[Page 36582]]

relative quantity of qualifying tobacco losses suffered due to natural 
disasters on crops harvested and placed in a warehouse and not sold.


Sec. 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.


Sec. 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 Sec. 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.


Sec. 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.


Sec. 1464.305  Signup.

    (a) For losses in North Carolina (as provided for in Sec. 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 
Sec. 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.


Sec. 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.


Sec. 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.


Sec. 1464.308  [Reserved]


Sec. 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.


Sec. 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

[[Page 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 1479.3  Definitions.

    Terms in this part shall have the same meanings as those defined in 
Sec. 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.


Sec. 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.


Sec. 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:

[[Page 36584]]

    (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.


Sec. 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 non-cropland 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.


Sec. 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 Secs. 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 Sec. 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 Sec. 1400.501 and Sec. 1400.502 of 
this chapter.


Sec. 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.


Sec. 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 Sec. 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


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