Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65709

assessment rate, but concluded that the

Committee could run out of funds with

the implementation of the volume

regulation program. In deriving the

recommended assessment rate increase,

the Committee used the actual

assessable production for the crop year

at 6,355,413 barrels. This amount plus

adequate supplies in the reserve will be

sufficient to cover budgeted expenses.

Funds in the reserve (currently $45,000)

will be kept within the approximately

one year’s operational expenses

permitted by the order (§ 929.42(a)).

This action continues the increase in

the assessment obligation imposed on

handlers. While assessments impose

some additional costs on handlers, the

costs are minimal and uniform on all

handlers. Some of the additional costs

may be passed on to producers.

However, these costs are offset by the

benefits derived by the operation of the

marketing order. In addition, the

Committee’s meeting was widely

publicized throughout the cranberry

industry and all interested persons were

invited to attend the meeting and

participate in Committee deliberations

on all issues. Like all Committee

meetings, the March 30, 2000, meeting

was a public meeting and all entities,

both large and small, were able to

express views on this issue.

This action imposes no additional

reporting or recordkeeping requirements

on either small or large cranberry

handlers. As with all Federal marketing

order programs, reports and forms are

periodically reviewed to reduce

information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule.

An interim final rule concerning this

action was published in the Federal

Register on August 8, 2000. Finally, the

interim final rule was made available

through the Internet by the Office of the

Federal Register. A 60-day comment

period was provided for interested

persons to respond to the interim final

rule. The comment period ended on

October 10, 2000, and no comments

were received.

A small business guide on complying

with fruit, vegetable, and specialty crop

marketing agreements and orders may

be viewed at http://www.ams.usda.gov/

fv/moab.html. Any questions about the

compliance guide should be sent to Jay

Guerber at the previously mentioned

address in the FOR FURTHER INFORMATION

CONTACT section.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found that good cause exists for not

postponing the effective date of this

action until 30 days after publication in

the Federal Register because: (1) The

1999–2000 fiscal period ended August

31, 2000, and all assessable cranberries

acquired by handlers during that period

have been assessed; (2) handlers are

aware of this action which was

unanimously recommended by the

Committee at a public meeting and is

similar to other assessment rate actions

issued in past years; and (3) an interim

final rule was published on this action

which provided for a 60-day comment

period; no comments were received.

List of Subjects in 7 CFR Part 929

Marketing agreements, Cranberries,

Reporting and recordkeeping

requirements.

PART 929—CRANBERRIES GROWN IN

THE STATES OF MASSACHUSETTS,

RHODE ISLAND, CONNECTICUT, NEW

JERSEY, WISCONSIN, MICHIGAN,

MINNESOTA, OREGON,

WASHINGTON, AND LONG ISLAND IN

THE STATE OF NEW YORK

Accordingly, the interim final rule

amending 7 CFR Part 929 which was

published at 65 FR 48349 on August 8,

2000, is adopted as a final rule without

change.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 00–28142 Filed 11–1–00; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

7 CFR Parts 1411, 1421, 1427, 1434,

1439, and 1447

RIN 0560–AG18

2000 Crop Agricultural Disaster and

Market Assistance

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Final rule.

SUMMARY: This rule implements

provisions of the Agricultural Risk

Protection Act of 2000 (ARPA) related to

oilseeds payments, peanut marketing

assistance, honey recourse loans, crop

and pasture flood compensation, and

the expansion of eligibility for loan

deficiency payments, for the 2000 crop

year only, to include producers whose

cropland is not covered by a production

flexibility contract. Other provisions of

the APRA will be implemented under

separate rules.

EFFECTIVE DATE: October 27, 2000.

FOR FURTHER INFORMATION CONTACT: Tom

Witzig, Chief, Regulatory Review and

Foreign Investment Disclosure Branch,

USDA/FSA/ORAS/RRFIDB/STOP 0540,

1400 Independence Ave., SW,

Washington, DC, 20250–0540, telephone

(202)205–5851, or by e-mail to:

tom_witzig@wdc.fsa.usda.gov.

SUPPLEMENTARY INFORMATION:

Notice and Comment

Section 263 of the ARPA requires that

these regulations are to be promulgated

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. These

regulations are thus issued as final.

Executive Order 12866

This final rule has been determined to

be economically significant under

Executive Order 12866 and has been

reviewed by the Office of Management

and Budget (OMB). 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 and Loan Deficiency

Payments—10.051; Production

Flexibility Payments for Contract

Commodities—10.055; 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.

65710 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

Executive Order 12372

The programs administered under the

regulations contained in this rule are

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. There are

no such mandates set out in this rule

and because 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 263 of the ARPA requires that

the regulations necessary to implement

title II of the ARPA be issued as soon

as practicable after the date of

enactment and without regard to the

notice and comment provision 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

the notice of proposed rulemaking and

public participation in rulemaking. It

also requires the Secretary to use the

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

Business Regulatory Enforcement

Fairness Act (SBREFA)), which provide

that a rule may take effect at such time

as the agency may determine if the

agency finds for good cause that public

notice is impracticable, unnecessary, or

contrary to the public purpose, and thus

does not have to meet the requirements

of § 801 of SBREFA requiring a 60-day

delay for Congressional review of a

major regulation before the regulation

can go into effect. This final rule is

considered major for the purposes of

SBREFA. However, these regulations

affect a large number of agricultural

producers who have been significantly

impacted by natural disasters and poor

market conditions. Accordingly, it

would be contrary to the public interest

to delay the provisions of this rule

because of the nature of the relief

involved and such delay would be

contrary to the expressed terms of the

legislation. This rule is issued as a final

rule and is effective immediately.

Executive Order 13132

It has been determined that this rule

does not have sufficient Federalism

implications to warrant the preparation

of a Federalism Assessment. The

provisions contained in this rule will

not have a substantial direct effect on

States or their political subdivisions, or

on the distribution of power and

responsibilities among the various

levels of Government.

Paperwork Reduction Act

Section 263 of the ARPA requires that

these regulations be promulgated and

the programs administered without

regard to the Paperwork Reduction Act.

This means that the information to be

collected from the public to implement

these programs and the burden, in time

and money, the collection of the

information would have on the public

does not have to be approved by the

Office of Management and Budget or be

subject to the normal requirement for a

60-day public comment period.

Background

This rule will implement the

requirements of the Agricultural Risk

Protection Act of 2000 (Pub. L. 106–224)

related to oilseeds payments, peanut

marketing assistance, honey recourse

loans, crop and pasture flood

compensation, and for the 2000 crop

year only, the expansion of eligibility

for loan deficiency payments to include

producers whose cropland is not

covered by a production flexibility

contract. Generally, those rules follow,

where applicable, existing rules as this

will allow for ease of administration and

speed in making the payments,

consistent with the intent of the statute

and with the lack of any indication,

except as may be noted, of

Congressional dissatisfaction with the

existing programs. In making these

corrections and changes however to

existing regulations the rules will, at

least in some cases, remove from the

Code of Federal Regulations, the

authority citation for the previous

programs. This housekeeping matter is

not intended to, and does not, change

the operation of the previous programs

to the extent that there are any lingering

issues or disputes with respect to such

programs.

1. 7 CFR 1411—Oilseeds Program

Section 202 of the ARPA provides

that ‘‘[t]he Secretary shall use

$500,000,000 of funds of the

Commodity Credit Corporation to make

payments to producers of the 2000 crop

of oilseeds that are eligible to obtain a

marketing assistance loan under section

131 of the Agricultural Market

Transition Act’’ (AMTA) (7 U.S.C.

7231). A similar program for the 1999

crop of oilseeds, established by section

804 of the Agriculture, Rural

Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2000 (Pub. L. 106–

78), was codified in 7 CFR 1411 by

publication of a final rule on June 8,

2000 (65 FR 36550). This rule provides

for a 2000 Oilseeds Program similar to

the 1999 program. Specifically, this rule

revises: (1) the definition of ‘‘Eligible

oilseed’’ to include sesame; (2) crop

years referenced in the part 1411

definitions of ‘‘County average soybean

yield’’, ‘‘Established producer’’,

‘‘National average oilseed yield’’, and

‘‘New producer’’ in § 1411.103; (3) crop

years used in determining ‘‘eligible

producers’’ in § 1411.201, ‘‘payment

acreage’’ in § 1411.204, and ‘‘payment

yield’’ in § 1411.205; (4) the program

funding references in § 1411.301 from

$475 million to $500 million; and (5)

the provisions relating to the final date

for submission of late-file acreage

reports as set out in § 1411.303 to set,

in effect, a new deadline for the new

program.

The regulations for this program

follow the basic procedures and rules of

the preceding oilseed program as the

authorizing statute for the new program

is the same in all material aspects,

except for one aspect, as the prior

program. The one difference is that

established producer payments are

based on the activities occurring in

three prior crop years (1997–99) rather

than only two prior crop years as was

the case for the preceding program. The

regulations incorporate that change but

also differ from those for the preceding

program in that they add sesame as one

of the oilseeds for which payments can

be made. Sesame was excluded under

the prior program because the relevant

statutory provisions for the new and old

programs specified that the only

oilseeds which would be eligible for

payments would be those which were

eligible to qualify a producer for a

market assistance loan under section

131 of the AMTA, 7 U.S.C. 7231. Under

that part of AMTA, the Secretary is

allowed to make loans on ‘‘loan

commodities’’ and ‘‘loan commodities’’

are defined in section 102 of the AMTA,

7 U.S.C. 7202, to include ‘‘oilseed’’ and

the term ‘‘oilseed’’ is defined in section

102 to mean ‘‘soybeans, sunflower seed,

rapeseed, canola, safflower, flaxseed,

mustard seed, or if designated by the

Secretary, other oilseeds.’’ Previously,

the Secretary has designated crambe for

inclusion as one of the ‘‘other’’ oilseeds

which can generate AMTA loans and it

has been determined, recently to so

designate sesame as well. Accordingly,

the new oilseed program covers sesame

whereas the old program did not.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65711

2. 7 CFR 1421 and 1427—2000 Crop

Eligibility for Loan Deficiency Payments

Rules governing loan deficiency

payments (LDP’s) are codified in 7 CFR

part 1421 for commodities other than

cotton and in subpart A of 7 CFR part

1427 for cotton. These regulations are

modified in this rule to implement

section 206 of the ARPA, which

amended provisions of the AMTA

related to LDP’s under the marketing

assistance loan program for agricultural

producers. Prior to the new law, under

the provisions of AMTA, except in the

case of oilseeds, only producers growing

contract commodities on farms covered

by a production flexibility contract

(PFC) were eligible to receive LDP’s.

Section 206(a) of the ARPA amends the

AMTA to allow producers of contract

commodities not eligible for a marketing

assistance loan (that is contract

commodities produced on farms not

covered by a PFC) to receive LDP’s, but

for the 2000 crop year only. Further

however, section 206 specifies, under

the heading ‘‘Transition’’ that a payment

to a producer newly-eligible for a

payment under the new provisions for

non-PFC farms that harvested a

commodity on or before the date that is

30 days after the promulgation of new

rules implementing the new law shall

be determined as of the date the

producer lost beneficial interest in the

commodity, as determined by the

Secretary. Section 206 then specifies,

however, that otherwise, a producer

shall be eligible for a payment only if

the producer has a ‘‘beneficial interest’’

in the commodity, as determined by the

Secretary. Normally, under existing

rules, the farmer must have control of

the commodity at the time that the

payment is requested but that which

appears to be addressed by the statute

is that farmers on non-PFC farms may

have already marketed part of this year’s

crop at a time at which they could not

have made a request for a loan

deficiency payment since it was only

the change of law provided for in

section 206 that permitted such a

payment. Accordingly, so that the rules

will be in accordance with the intent of

the statute without going so far as to

provide what would appear to be,

otherwise, unintended benefits not

possessed by other payees, this rule

modifies parts 1421 and 1427 so as to

allow payments to be made for eligible

commodities non-PFC farms without

having to meet the normal control

requirements. However, this is limited.

It only applies so long as, in conformity

with the statute, the crops were

harvested by that date which is 30 days

after the publication of this rule. For

such commodities, the payment will be

made as of the date at which the farmer

lost control or ‘‘beneficial interest’’ of

the commodity. For crops marketed

after that date, the farmer must, just like

with producers on PFC farms, have

control of the crop at the time that the

payment is requested. It should be

noted, however, that these amendments

will still, in all cases, as does the statute,

limit payments to those persons who are

considered to be the ‘‘producers’’ of the

commodity. Thus, the status of contract

growers is not changed. Such growers

continue to be ineligible for payments.

Instead, the amendments reflect a

change with respect to the handling of

non-PFC farms only and allow for a

transition for those farms to

accommodate the change circumstances

for this crop year. These changes are

similar to changes that were

implemented for the 1999 crop year

under separate legislative authority.

Those 1999-crop rules were published

in a February 16, 2000, rule (65 FR

7942) as corrected on March 15, 2000

(65 FR 13865).

3. 7 CFR 1434—Honey Recourse Loan

Program

Section 204(c) of the ARPA provides

that ‘‘[t]he Secretary shall use funds of

the Commodity Credit Corporation to

make available recourse loans to

producers of the 2000 crop of honey on

fair and reasonable terms and

conditions, as determined by the

Secretary.’’ Section 1122 of the

Agriculture, Rural Development, Food

and Drug Administration, and Related

Agencies Appropriation Act of 1999

established a similar program for the

1998 crop of honey to assist producers

in marketing their honey during a

period of low prices. Regulations

implementing the 1998 program were

codified in 7 CFR 1434 by a final rule

published on March 8, 1999 (64 FR

10293). Subsequently, the program was

made available for the 1999 crop of

honey by section 801 of the Agriculture,

Rural Development, Food and Drug

Administration, and Related Agencies

Appropriations Act, 2000. The final rule

implementing the 1999 program by

amending 7 CFR 1434 was issued on

February 16, 2000 (65 FR 7942). The

2000 program will be operated in the

same manner as the 1999 program and

this rule amends 7 CFR 1434 by revising

the dates referenced within the

regulation.

4. 7 CFR 1439—2000 Flood

Compensation Program

Section 257 of the ARPA authorizes

the Secretary to use not more than $24

million of funds of the Commodity

Credit Corporation to compensate

producers for losses resulting from longterm flooding. Areas impacted by

generalized flooding since 1992 due to,

for example, the expansion of the

boundaries of natural bodies of water

such as Devil’s Lake in North Dakota

and Day County and surrounding areas

in South Dakota, have been the subject

of considerable attention and concern.

Such flooding can change the basic

character of the land and render it

ineligible for other benefits or for

enrollment in programs like the

Conservation Reserve Program.

The 1998 Flood Compensation

Program (FCP), codified in 7 CFR 1439

by an interim rule published on August

31, 1999 (64 FR 47358), was designed to

provide assistance to producers who

had incurred losses as a result of such

flooding. The program provided

compensation to eligible producers

whose ‘‘land was inaccessible or unfit

for crop production, grazing, or haying

because of flooding or excess moisture

during all of the period beginning

October 1, 1997, through August 1,

1999.’’ Subsequently, a final rule

published on June 8, 2000 (65 FR 36550)

reorganized 7 CFR 1439 and removed

the regulations related to the 1998 FCP

because they were considered to be

obsolete because the application

deadline had passed.

This rule implements section 257 of

the ARPA by implementing the 2000

FCP, which will be codified in subpart

F of 7 CFR 1439. The new program will

be operated in the same manner as the

1998 FCP with the exception (as

required by ARPA) that the program

will only be available in counties

approved under the 1998 FCP. The 2000

FCP provides compensation to eligible

producers whose land was not usable

from October 1, 1999, through

September 30, 2000. Under the

provisions of the 2000 FCP, as required

by the law no ‘‘person’’, as ‘‘person’’ is

defined in the applicable regulations,

will be able to receive over $40,000.

Also, no person can receive any

payment if that person’s gross revenue

for 1999, as determined in conformity

with the rules, was in excess of $2.5

million. Consistent with the new law,

the applicant must be the owner or

lessee under a binding lease, of

cropland or pastureland that was used

for the production of at least one of the

production years 1992–99, but that has

been engulfed in the period after 1992,

and such person must have owned or

leased the land continuously since

October 1, 1999 and must still be the

owner or lessee of the land. Other

restrictions apply as well. To avoid the

possibility of over-compensation for the

65712 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

same losses, producers will not be

eligible to receive payments under this

subpart and other programs for losses

that occurred during FY 2000. As

provided for in the new law, unadjusted

payment rates will be equal to the

average county cash rental rate per acre

established by the National Agricultural

Statistical Service for the 2000 crop

year. For cases where such rate is not

available, the rule provides for an

alternative calculation method.

5. 7 CFR 1447—Peanut Marketing

Assistance Program

Section 204(a) of the ARPA provides

that ‘‘[t]he Secretary shall use funds of

the Commodity Credit Corporation to

provide payments to producers of quota

peanuts or additional peanuts to

partially compensate the producers for

continuing low commodity prices, and

increasing costs of production for the

2000 crop year.’’ The ARPA specifies

that the payment rate shall be equal to

$30.50 per ton for quota peanuts and

$16.00 per ton for additional peanuts. In

order to implement this program,

regulations codified at 7 CFR part 1447,

which implemented a similar program

for the 1999 crop year, are amended by

revising the time-frame for filing an

application, the payment rate for quota

and additional peanuts, and the years

from which actual yields may be used

in establishing the yield used in the

payment calculation. The 1999 crop

rules were set out in the February 16,

2000, rule (65 FR 7942).

Cost-Benefit Assessment

Summary

Outlays under the programs

implemented by this rule will total

approximately $626 million. The table

summarizes the outlays, while a

summary of the Cost/Benefit

Assessment for each program follows.

SUMMARY OF OUTLAYS

Program Outlays

Oilseeds Program ......................... 500.0

2000 Crop Eligibility for Loan Deficiency Payments ..................... 40.3

Honey Recourse Loan Program ... 0.0

2000 Flood Compensation Program .......................................... 24.0

Peanut Marketing Assistance Program .......................................... 61.6

Total ....................................... 625.9

2000 Oilseed Program

U.S. oilseed producers are

experiencing serious financial hardships

as a result of low oilseed prices. The

farm-level market value of oilseed

production has dropped substantially

since the mid-1990’s. The farm value of

the 1999 oilseed crop was down an

estimated $5.3 billion, or 29 percent,

from the previous 5-year high set in

1996, despite a 12-percent increase in

production. Projections for the 2000

crop put farm value up 6 percent from

1999, but this is with a projected 13-

percent increase in production from

1999. Farm value for the 2000 oilseed

crop is projected down more than $4.5

billion, or 25 percent, from 1996,

despite a 26 percent increase in

production during the period.

In passing ARPA, Congress

recognized the financial hardships being

faced by oilseed producers and the

inability of the AMTA payment

mechanism to provide market loss

payments to these producers. Section

202 of ARPA authorized the use of $500

million in CCC funds to assist oilseed

producers suffering from reduced farm

incomes as a result of large supplies and

low prices. To be eligible for payments

from these funds, a producer must

produce an oilseed in 2000 that is

eligible for marketing assistance loans

under section 131 of AMTA (7 U.S.C.

7231). Oilseeds specifically designated

as eligible for marketing assistance loans

under section 102 of AMTA (7 U.S.C.

7202) are soybeans, safflower seed,

canola, rapeseed, mustard seed,

sunflower seed, and flaxseed. For the

2000 crop, the Secretary has also used

his authority under section 102 to

designate both crambe and sesame as an

‘‘other’’ oilseed, making them eligible

for marketing assistance loans and

oilseed program payments.

Oilseed program benefits for a

producer are determined by multiplying

the payment acreage, times a payment

yield, times a payment rate determined

by the Secretary. Payment acreage for an

eligible established producer—a

producer who also produced oilseeds in

1997, 1998, and/or 1999—is based on

the higher of that producers’ 1997, 1998,

or 1999 acreage. For an eligible

producer who was a new producer in

2000, payment acreage is based on that

producer’s 2000 acreage. Payment yield

for an established soybean producer is

the higher of that producer’s actual

yield in 1997, 1998, or 1999, or the

Olympic average yield for that

producer’s county for the years 1995

through 1999. (The Olympic average is

the average annual yield for the stated

period after excluding the highest and

lowest years.) Payment yield for a new

soybean producer in 2000 is the higher

of that producer’s 2000 yield or the

producer’s county 1995–99 Olympic

average yield. For an established

producer of other eligible oilseeds,

payment yield is the higher of that

producers’ 1997, 1998, or 1999 yield, or

the Olympic average of the national

yield for the years 1995 through 1999

for the crop for which the payment is

being made. Payment yield for a new

producer of an eligible oilseed other

than soybeans in 2000 is the higher of

that producer’s 2000 yield, or the 1995–

99 Olympic average national yield for

the oilseed.

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

CCC funds authorized by Congress for

the Oilseed Program.

The Oilseed Program as prescribed by

Congress in ARPA clearly lays out total

available funding for direct producer

payments and procedures for

determining payment acreage and yield

as did the 2000 Appropriations Act. For

this reason no options were considered

regarding these aspects of the program.

As was the case with the 2000

Appropriations Act, ARPA leaves to the

Secretary’s discretion the method used

to establish the payment rates under the

2000 Oilseed Program. This latitude

results in at least two options or

alternative methods for determining the

payment rate by crop for the various

types of eligible oilseeds. Under the first

option, payment rates would be based

on production volumes with the same

per unit payment rate offered for all

types of oilseeds. The second option

would tie payment rates among the

types of oilseeds to each crop’s relative

market value using Olympic average

farm prices for the 1995 through 1999

marketing years. The second option was

selected because it incorporates into the

payment rate calculation some measure

of relative market value for each type of

oilseed. This method was also used to

determine the 1999 oilseed payment

rate. Tying the payment rate to market

value was thought to be more equitable

to producers of higher value minor

oilseeds because prices are much more

volatile and quality issues much more

important in the markets for these crops.

The budgetary impact of the Oilseed

Program will total $500 million. The

largest share of total payments will go

to soybean producers who, based on

pre-enrollment estimates, are expected

to receive $477,933,976 or 96 percent of

the total payments (Table 3). Preenrollment estimates for payments to

minor oilseed producers are as follows:

$14,516,899 for sunflower seed

producers, $4,266,230 for canola

producers, $1,749,382 for safflower

producers, $1,136,675 for flaxseed

producers, $193,049 for mustard seed

producers, $124,066 for crambe

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65713

producers, $16,753 for rapeseed

producers, and $62,969 for sesame

producers. Because this assistance will

be in the form of direct payments, the

program is expected to result in a dollarfor-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

35 and 33 cents per hundredweight

(cwt), respectively. The lowest per unit

rate is expected to be for flaxseed at 22

cents per cwt (13 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 payments will be highest for

soybeans and safflower at $5.96 and

$5.92 per acre, respectively. For the

remaining oilseeds, pre-enrollment

estimates indicate that per acre

payments will range from a low of $2.70

for mustard seed to a high of $3.65 for

sunflower seed.

Final payment acreage and yield will

depend upon enrollment. If actual

enrollment data indicate that claims are

different than $500,000,000, a national

factor will be applied so outlays equal

$500,000,000. This factor could be

greater than or less than 1.

2000 Crop Eligibility for Loan Deficiency

Payments

The Federal Agriculture Improvement

and Reform Act of 1996 (the 1996 Act)

provided farms with base acreage for the

1996 crop the option to sign production

flexibility contracts (PFC) for the 1996–

2002 crops of wheat, corn, grain

sorghum, barley, oats, upland cotton,

and rice. Producers on farms enrolled in

a PFC receive PFC payments that are

based on the contract acres enrolled and

the program yield for the contract

commodity on the farm. In addition,

these producers are eligible to receive

commodity loan benefits for any

contract commodity produced on the

farm.

Results from the one-time sign-up for

production flexibility payments, and

thus, eligibility to receive loan benefits,

suggest that most eligible cropland was

enrolled in the program. Of the eligible

1996 cropland base, 98.8 percent was

enrolled.

Section 135 of the 1996 Act specifies

that a producer may elect to receive a

loan deficiency payment (LDP) on a

quantity of an eligible commodity rather

than placing the commodity under loan.

Commodities eligible for a nonrecourse

marketing assistance loan include PFC

commodities (wheat, rice, upland

cotton, corn, grain sorghum, barley, and

oats) and oilseeds, including soybeans,

crambe, sesame, and minor oilseeds

(sunflower seed, canola, flaxseed,

mustard seed, safflower, and rapeseed).

Under the terms of section 135, as

enacted, to receive an LDP on

production of a PFC commodity, the

farm on which the commodity was

produced must have eligible cropland

covered by a PFC.

Section 206 of the ARPA, however,

expands the eligibility of producers of

contract commodities to receive LDPs.

Under the ARPA, any producer of a

contract commodity, whether or not the

commodity was produced on a farm

with eligible cropland covered by a PFC,

is eligible to receive LDPs on all

production of contract commodities on

the farm for the 2000 crop only.

It was assumed that all cropland

suitable for production of contract

commodities was included in the total

base acres eligible for enrollment in a

PFC. Thus, the potential cropland

which could become eligible for LDPs

under the provisions of the 2000 Act is

represented by the crop base that was

not enrolled in a PFC. Based on this

assumption, an additional 2,603,649

acres of contract commodities grown

during 2000/01 will be eligible for LDPs.

Because the 1996 Act provided nearly

complete planting flexibility to

producers, the mix of crops grown on

the additional LDP eligible cropland is

unlikely to match the base acreage in

1996. It is assumed that the mix of crops

on the additional eligible acres is

similar to the crop mix planted

nationally. In addition, it is assumed

that the average yield of each contract

commodity grown on these acres is

equal to the national average yield, and

the LDP rate is equal to the national

average LDP rate. Producers on farms

which do not have a PFC are expected

to request payments at about half the

rate of producers on farms with a PFC.

The additional amount of LDPs which

will likely be paid under the extension

of eligibility provided by the APRA is

estimated at $43 million and these

benefits will be received by an

additional 100,000 producers.

Because the additional LDP eligibility

was not extended until after the 2000

crop had been planted, no change in

supply, demand, or prices are expected

under this program. Thus, the only

impact on crop producers is the

additional LDP payments which will

increase farm income by a

corresponding amount. Food prices are

expected to be unaffected by the

extension of eligibility of LDPs because

supply, demand, and crop prices are

unaffected.

Honey Recourse Loan Program

The ARPA provides that recourse

loans shall be provided for the 2000

crop of honey on fair and reasonable

terms and conditions. It further provides

that the loan rate shall be 85 percent of

the average price of honey during the 5-

crop year period preceding the 2000

crop year, excluding the crop years in

which the average price was the highest

and the lowest.

The 2000-Crop Honey Recourse Loan

Program (2000 Honey Program) will be

administered in the same manner as the

1999-Honey Recourse Loan Program

(1999 Honey Program). The 1999 Honey

Program requires that the repayment of

a loan shall include repayment of

principal and interest. The loans must

be repaid and honey may not be

delivered to the CCC in satisfaction of

the loan obligation. Loans will mature

no later than 9 months following the

month in which the loan is disbursed.

Thus, loan principal can be held for a

maximum of 10 months. Uniform

Storage Agreements for honey

warehouses will not apply. Interest will

be charged at the rate paid by CCC plus

1 percentage point. There will not be

loan premiums and discounts. If a loan

is not repaid, CCC will conduct a local

sale of the honey used as loan collateral.

If the sales proceeds do not equal or

exceed the amount owed by the

producer, a claim will be established.

Effective August 1995, China agreed

to limit its exports to the United States

and to establish a price floor on such

exports. That agreement was credited by

the domestic honey industry for

resulting in the price increases, from an

annual average price of 52.8 cents for

1994, to 68.5 cents for 1995, and 88.8

cents for 1996. However, prices then

began falling, to 75.2 cents for 1997,

65.5 cents for 1998, and 59.9 cents for

1999. Honey prices reported in June

2000 by the National Honey Market

News (published by the Agricultural

Marketing Service) have been in the

range of 40–60 cents per pound, down

about 3 cents from a year ago. Producers

see these lower prices resulting from

abundant and cheap imports, now

primarily from Argentina. Imports make

up about 40 percent of the honey

consumed in the United States.

The 2000-crop loan rate will be

unchanged from last year at 59.0 cents

per pound based on the 1995 through

1999 prices and the statutory formula.

With the current relatively low price for

honey, the 2000-crop loan rate is

expected to exceed most current market

prices. This exposes CCC to the

possibility of losses if loans are

defaulted on and the proceeds from sale

65714 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

of the honey are not large enough to

cover the loan amount and interest

expense. Loan default expenses are

budgeted for in the program, but none

has occurred in the past.

Producers who use the 2000-crop loan

program will benefit from the reduced

borrowing costs compared with

commercial loans. Estimates of this

interest savings are based on an

assumed commercial rate of prime plus

2 percentage points. Currently, a honey

producer would be charged 7.25 percent

by CCC compared to 11.24 percent by a

commercial lender. This 4-percentage

point difference on program loan

principal of $12 million (same as loaned

in 1999) is equivalent to loan interest

savings to the sector of about $400,000,

if all loans are held the full 10 months.

Producers may also gain from

circumstances where commercial credit

may not be available to them.

Program advocates assert that the

primary benefit of the program is to

allow producers to delay marketings to

take advantage of any subsequent

market price increases. A market-price

increase of about 3.2 cents per pound

would be needed to recover the loan

interest if the loan is held to maturity.

Current market prices are relatively low

due to continued imports of cheap

honey from China and Argentina.

Domestic honey prices are closely

related to prices of imports because of

sizeable quantities imported. For the

1992–1995 period, honey imports

represented about 42 percent of total

domestic honey consumption. Without

higher foreign honey prices, it would

seem likely that domestic honey prices

will remain low in spite of the 2000

Honey Loan Program. The amount of

honey estimated to be put under loan is

not sufficient to create upward price

pressure. With prices expected to be

unaffected by the loan program,

domestic consumers will not be

impacted.

2000 Flood Compensation Program

Legislation creating the 1998 Flood

Compensation Program (1998 FCP)

authorized the Secretary of Agriculture

to provide financial assistance to

eligible producers in North and South

Dakota that incurred multi-year crop

and grazing losses due to continuous

flooding. Continuation of such flooding

in these States has resulted in the need

for further compensation to producers

whose covered land has been unusable

for agricultural production during the

2000 crop year. Section 257 of the

Agricultural Risk Protection Act of 2000

(Pub. L. 106–224) authorizes the

Secretary to provide assistance to these

producers under the 2000 Flood

Compensation Program (2000 FCP).

Reports from State Farm Service

Agency offices project that about

500,000 acres in North Dakota and

729,987 acres in South Dakota will be

flooded continuously during the 2000

crop year (i.e., flooding will have

occurred from October 1, 1999, through

September 30, 2000). These reports also

suggest that about 12,000 producers are

likely to be eligible for assistance.

Under the 2000 FCP, payments will

be provided to eligible producers in the

approved counties based on the quantity

of cropland and pasture that was

incapable of agricultural production due

to flooding during the 2000 crop year.

Per-acre payment rates will equal the

average cash rental rate established for

the county by the National Agricultural

Statistics Service for the 2000 crop year.

One rate per county will be established

for cropland and another rate for

pasture. Any person with gross receipts

in excess of $2.5 million for calendar

year 1999 will not be eligible. The

maximum payment amount for eligible

persons is $40,000, however, the sum of

all payments cannot exceed $24 million.

Therefore, based on the projection of

12,000 eligible producers, the average

payment per producer will be $2,000.

Peanut Marketing Assistance Program

The 2000 Peanut marketing

Assistance Program will provide $61.6

million in financial assistance to an

estimated 40,000 producers who have

experienced increased costs of

production and lower market prices

over the last five years. While peanut

yields on average have increased about

200 pounds per acre, this increase has

not ameliorated the impact of the quota

price support freeze and increased cost

of production. Payments under the

program will be based on produced and

considered produced peanuts at the

rates of $30.50 per ton for quota peanuts

and $16.00 per ton for additional

peanuts. Payments will assist peanut

producers in meeting their financial

obligations and are not likely to affect

the market price for peanut products.

No measurable impact is likely for

consumers.

List of Subjects

Part 1411

Loan programs—agriculture, Oilseeds,

Price support programs, Reporting and

recordkeeping requirements.

Part 1421

Feed grains, Loan programs—

agriculture, Oilseeds, Peanuts, Price

support programs, Reporting and

recordkeeping requirements, Rice,

Wheat.

Part 1427

Cotton, Loan programs—agriculture,

Price support programs, Reporting and

recordkeeping requirements.

Part 1434

Honey, Loan programs—agriculture,

Price support programs, Reporting and

recordkeeping requirements.

Part 1439

Animal feeds, Disaster assistance,

Grant programs—agriculture, Livestock,

Reporting and recordkeeping

requirements.

Part 1447

Disaster assistance, Peanuts, Price

support programs, Reporting and

recordkeeping requirements.

For the reasons set out in the

preamble, Chapter XIV is amended as

set forth below.

PART 1411—OILSEEDS PROGRAM

1. The authority citation for 7 CFR

part 1411 is revised to read as follows:

Authority: Sec. 202, Pub. L. 106–224.

2. Revise § 1411.101 to read as

follows:

§ 1411.101 Applicability.

This part implements the oilseed

provisions enacted in section 202 of the

Agricultural Risk Protection Act of 2000

(Public Law 106–224), which provides

funds to allow for payments to

producers who planted eligible oilseeds

in 2000 and who meet other conditions

of eligibility.

3. Amend § 1411.103 to revise the

introductory paragraph and definitions

of ‘‘County average soybean yield’’,

‘‘Eligible oilseed’’, ‘‘Established

producer’’, ‘‘National average oilseed

yield’’, and ‘‘New producer’’, to read as

follows:

§ 1411.103 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the 2000

Oilseeds Program, and shall be used for

Oilseeds Program purposes only.

Although the definitions contained in

parts 718 and 1412 of this title also

apply, to the extent that the definitions

in this section differ from the

definitions in parts 718 and 1412 of this

title, the definitions in this section

apply rather than the definitions in

parts 718 and 1412 of this title.

* * * * *

County average soybean yield means

an average yield approved by DAFP

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65715

using an Olympic average of the

county’s average soybean yield for each

of the crop years 1995 through 1999 as

determined by the State committee. To

the extent such data is available, data

from NASS shall be used.

* * * * *

Eligible oilseed means one of the

following kinds of oilseeds: soybeans,

safflower seed, canola, rapeseed,

mustard seed, sunflower seed (oil and

confectionary), flaxseed, crambe, and

sesame.

Established producer means a

producer who planted an oilseed for the

2000 crop year, and shared in the

production of that specific oilseed in

1997, 1998, or 1999.

National average oilseed yield means

the Olympic average yield for an eligible

oilseed using the National average

yields for the oilseed for the years 1995

through 1999. Such yields shall be

considered valid only if approved by

DAFP.

New producer means a producer who

planted an eligible oilseed for crop year

2000, but did not plant or share in the

production of that oilseed in 1997, 1998,

or 1999. A producer may be a new

producer of one eligible oilseed, while

being an established producer for

another oilseed.

* * * * *

4. Revise § 1411.201 to read as

follows:

§ 1411.201 Eligible producers.

(a) Section 202 of Public Law 106–224

authorizes the Secretary to make

payments to a producer who planted an

eligible oilseed in 2000. Accordingly,

producers of the 2000 crop of oilseeds

identified in § 1411.103 are eligible to

receive 2000 Oilseeds Program benefits,

providing the producer meets the

requirements of this part, and is in

compliance with part 12 of this title

regarding the conservation and

protection of highly erodible lands and

wetlands, and § 718.11 of this title

regarding denials of program benefits for

activities relating to the use of

controlled substances.

(b) Eligibility determinations made

under this part will be made for each

producer separately for each specific

eligible oilseed planted by that producer

in 2000. A producer is not eligible for

payment with respect to an oilseed that

the producer did not plant in 2000

regardless of whether the producer did

or did not plant that oilseed in 1997,

1998, or 1999.

5. Amend § 1411.204 by revising

paragraphs (a) and (b) to read as follows:

§ 1411.204 Payment acreage.

(a) The oilseed payment acreage for an

established producer shall, for a

particular oilseed, be the higher of the

three acreage amounts determined by

calculating, for the 1997, 1998, and 1999

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 2000 crop at all locations,

adjusted to reflect interests that are only

partial interests in such acreage.

* * * * *

6. Amend § 1411.205 by revising

paragraphs (b) and (c) to read as follows:

§ 1411.205 Payment yield.

(a) * * *

(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

2000 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 highest for the 1997, 1998,

and 1999 crops of the producer’s actual

yield respectively for those crop years

for all acres of the oilseed planted by the

producer.

* * * * *

§ 1411.301 [Amended]

7. In § 1411.301, remove the dollar

amount ‘‘$475 million’’ and add in its

place the amount ‘‘$500 million.’’

§ 1411.303 [Amended]

8. Amend § 1411.303 as follows:

a. Remove the words ‘‘Oilseed

Program purposes’’ and add in their

place the words ‘‘purposes of the

Oilseed Program operated under this

part pursuant to Public Law 106-224’’;

and

b. Remove the date ‘‘February 18,

2000’’ and add in its place the words

‘‘the last day of the signup period

announced in accordance with

§ 1411.301’’.

§ 1411.402 [Amended]

9. Amend § 1411.402(c) as follows:

a. Add the word ‘‘form’’ preceding the

term ‘‘FSA–211’; and

b. Remove the date ‘‘June 22, 2000’’

and add in its place, the date November

16, 2000.

PART 1421—GRAINS AND SIMILARLY

HANDLED COMMODITIES

10. The authority citation for part

1421 is revised to read as follows:

Authority: 7 U.S.C. 7213–7235, 7237; 15

U.S.C. 714b, 714c; Sec. 813, Pub. L. 106–78,

113 Stat. 1182; Sec. 206, Pub. L. 106–224.

11. Amend § 1421.1 by adding

paragraph (f) to read as follows:

§ 1421.1 Applicability.

* * * * *

(f) Not withstanding provisions of this

subpart and subchapter:

(1) Eligible contract commodities

produced during the 2000 crop year on

a farm that is not covered under a

production flexibility contract, as

defined in part 1412 of this chapter, are

eligible for a loan deficiency payment to

eligible producers in accordance with

§ 1421.4.

(2) With respect only to contract

commodities produced in the 2000 crop

year on a farm not covered under a

production flexibility contract, a

producer may receive with respect to

such commodities, a loan deficiency

payment in connection with the

administration of loans under this part

even though the crop has already been

marketed, so long as:

(i) Neither the producer nor anyone

else has received a marketing loan gain

or loan deficiency payment on the

commodity;

(ii) The person seeking the payment is

the actual producer of the commodity

and had beneficial interest in the

commodity at the time of the operative

marketing;

(iii) The producer will receive the

payment as a loan deficiency payment

in which case the amount to be paid

will be determined as of the date the

producer marketed or lost beneficial

interest in the commodity;

(iv) Unless otherwise allowed by the

Deputy Administrator for Farm

Programs, FSA, the commodities were

harvested and marketed on or before

December 4, 2000.

PART 1427—COTTON

12. 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, 714c; Pub. L. 106–78, 113 Stat.

1182; Sec. 206, Pub. L. 106–224.

13. Amend § 1427.1 by adding

paragraph (e) to read as follows:

§ 1427.1 Applicability.

* * * * *

(e) Not withstanding provisions of

this subpart and subchapter:

65716 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

(1) Eligible cotton produced during

the 2000 crop year on a farm that is not

covered under a production flexibility

contract, as defined in part 1412 of this

chapter, are eligible for a loan

deficiency payment to eligible

producers in accordance with § 1427.4.

(2) With respect only to loan

deficiency payments for eligible cotton

produced in the 2000 crop year on a

farm not covered by a production

flexibility contract, a producer may

receive with respect to such cotton, a

loan deficiency payment in connection

with the administration of loans under

this part even though the cotton has

already been marketed, so long as:

(i) Neither the producer nor anyone

else has received a marketing loan gain

or loan deficiency payment on the

cotton;

(ii) The person seeking the payment is

the actual producer of the cotton and

had beneficial interest in the cotton at

the time of the operative marketing;

(iii) The producer will receive the

payment as a loan deficiency payment

in which case the amount to be paid

will be determined as of the date the

producer marketed or lost beneficial

interest in the cotton;

(iv) Unless otherwise allowed by the

Deputy Administrator for Farm

Programs, FSA, the cotton was

harvested and marketed on or before

December 4, 2000.

* * * * *

PART 1434—RECOURSE LOAN

REGULATIONS FOR HONEY

14. The authority citation for 7 CFR

part 1434 is revised to read as follows:

Authority: Sec. 1122, Pub. L. 105–277, 112

Stat. 2681; Sec. 3018, Pub. L. 106–31, 113

Stat. 57; Sec 801(f), Pub. L. 106–78, 113 Stat.

1175; Sec. 204(c), Pub. L. 106–224.

§ 1434.1 [Amended]

15. Amend the first sentence of

§ 1434.1 by removing the words ‘‘1998-

crop and 1999-crop’’ and adding in their

place the words ‘‘2000-crop year’’.

16. Amend § 1434.6 by revising

paragraphs (a) and (d) to read as follows:

§ 1434.6 Application, availability,

disbursement, and maturity.

(a) The deadline for requesting a loan

offered under this part is March 31,

2001.

(b) * * *

(c) * * *

(d) Subject to paragraph (a) of this

section, loans for the 2000-crop of

honey will be available to producers on

such date as may be announced by the

Secretary.

PART 1439—EMERGENCY LIVESTOCK

ASSISTANCE

17. The authority citation for 7 CFR

part 1439 is revised to read as follows:

Authority: 15 U.S.C. 714b, 714c; Sec. 805,

825, Pub. L. 106–78, 113 Stat. 1135; Pub. L.

106–113; Sec. 257, Pub. L. 106–224.

18. Amend part 1439 by adding

subpart F to read as follows:

Subpart F—2000 Flood Compensation

Program

Sec.

1439.501 Applicability.

1439.502 Administration.

1439.503 Definitions.

1439.504 Application process.

1439.505 County committee determinations

of general applicability.

1439.506 Eligible land and loss criteria.

1439.507 Producer eligibility.

1439.508 Calculation of assistance.

1439.509 Availability of funds.

Subpart F—2000 Flood Compensation

Act

§ 1439.501 Applicability.

This subpart sets forth the terms and

conditions applicable to the 2000 Flood

Compensation Program (FCP). Benefits

will be provided to eligible producers in

the United States but only in counties

approved under the 1998 FCP (provided

for in regulations of this part contained

in the 7 CFR, parts 1200 to 1599, edition

revised as of January 1, 2000), where

long-term flooding occurred, and that

were subsequently approved by the

Deputy Administrator for Farm

Programs as eligible counties.

§ 1439.502 Administration.

This subpart shall be administered as

set forth in § 1439.2, except as provided

for in this subpart.

§ 1439.503 Definitions.

Except as otherwise indicated, terms

in this part shall have the same

meanings as those defined in 7 CFR

1439.3 and 718.2. To the extent that the

definitions in this section differ from

the definitions in 7 CFR 1439.3 and

718.2, the definitions in this section

apply rather than the definitions in 7

CFR 1439.3 and 718.2

Application means the Form CCC–

454, Flood Compensation Program

Application. The CCC–454 is available

at county FSA offices.

Covered land means:

(1) Land that:

(i) Was unusable for agricultural

production during 2000 crop year as the

result of flooding;

(ii) Was used for agricultural

production during at least 1 of the 1992

through 1999 crop years;

(iii) Is a contiguous parcel of land of

at least 1 acre;

(iv) Is located in a county in which

producers were eligible for assistance

under the 1998 Flood Compensation

Program;

(v) Was not planted during FY 2000;

and

(vi) Meets all other conditions of

eligibility.

(2) The term ‘‘covered land’’ excludes

any land with respect to which a

producer is insured, enrolled, or

assisted during the 2000 crop year

under:

(i) A policy or plan of insurance

authorized under the Federal Crop

Insurance Act (7 U.S.C. 1501 et seq.);

(ii) The noninsured crop assistance

program operated under section 196 of

the Agricultural Market Transition Act

(7 U.S.C. 7333);

(iii) Any crop disaster program

established for the 2000 crop year;

(iv) The conservation reserve program

established under subchapter B of

chapter 1 of subtitle D of the Food

Security Act of 1985 (16 U.S.C. 3831 et

seq.);

(v) The wetlands reserve program

established under subchapter C of

chapter 1 of subtitle D of the Food

Security Act of 1985 (16 U.S.C. 3837 et

seq.);

(vi) Any emergency watershed

protection program or Federal easement

program that prohibits crop production

or grazing; or

(vii) Any other Federal or State water

storage program, as determined by the

Secretary.

FCP means the Flood Compensation

Program provided for in this part.

FY 2000 means the period from

October 1, 1999 through September 30,

2000.

NASS means The National

Agricultural Statistics Service.

§ 1439.504 Application process.

(a) Producers must submit a

completed application prior to the close

of business on December 15, 2000, or

other such later date as established and

announced by the Deputy

Administrator. The application and any

supporting documentation shall be

submitted to the FSA county office with

administrative authority over a

producer’s eligible flooded land or to

the FSA county office that maintains the

farm records for the producer.

(b) Producers shall certify as to the

accuracy of all the information

contained in the application, and

provide any other information to CCC

that the FSA county office or FSA

Committee deems necessary to

determine the producer’s eligibility.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65717

§ 1439.505 County committee

determinations of general applicability.

(a) FSA county committees shall

determine whether that county was

determined eligible under the 1998 FCP,

and whether the land has been unusable

from October 1, 1999 through

September 30, 2000 due to continuing

flooding. In making this determination,

the FSA county committee shall use

what it considers to be the best

information available including but not

limited to: Cooperative State Research,

Education, and Extension Service;

Natural Resources Conservation Service;

aerial photography; rainfall data; and

general knowledge of losses due to

flooding.

(b) With respect to each eligible

county, the FSA county committee for

that county shall establish a separate

payment rate for crop-land and pastureland. These rates shall be reviewed by

the FSA state committee and shall be

equal to the average rental rate for the

years 1996 through 2000 for all such

land of each type in the county. Where

these rates cannot be set in the manner

provided for in paragraph (c) of this

section, the FSA state committee may

take into account rates established for

the Conservation Reserve Program

operated under 7 CFR part 1410 and

ensure, subject to paragraph (c) of this

section, that the rates are comparable.

The Deputy Administrator shall review

and may adjust the rates for

reasonableness and consistency.

(c) Except as provided by the Deputy

Administrator, rental rates shall be

equal to the applicable county average

for the kind of land involved using

established NASS data in all locations

where NASS has established rental rates

on a county-by-county basis for 2000.

§ 1439.506 Eligible land and loss criteria.

(a) The flooded land for which a

producer requests benefits must be

within the physical boundary of an

eligible county. 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 producer in an eligible

county must have land in a county

which is eligible for payment. Such

land, to be eligible for payment must

meet all of the following criteria:

(1) The land is cropland or pasture

land used for the production of feed for

livestock (haying, grazing, or feed grain

production) or other agricultural use in

one or more years during the period

beginning October 1, 1991, through

September 30, 1999;

(2) The land is inaccessible or unable

to be used for crop production, grazing,

or haying because of flooding or excess

moisture during all of the period

beginning October 1, 1999, through

September 30, 2000 unless some other

period is established as the 2000-crop

year for the commodity by the Deputy

Administrator;

(3) The land was not used for planting

during October 1, 1999, through

September 30, 2000;

(4) The land has been owned, leased

or under a binding cash lease by the

producer continuously since October 1,

1999;

(5) The land is a contiguous parcel of

land with an area equal to one acre or

more;

(6) The land was not, except as

determined by the Deputy

Administrator, the subject of, nor will

be the subject of, any other federal

payment for activities or lack of activity

during the period October 1, 1999,

through September 30, 2000, whether or

not disaster-related, with the exception

of the production flexibility contract

(PFC) program payments received under

7 CFR part 1412. This prohibition

includes but is not limited to other

payments under this part, or payments

under the Conservation Reserve

Program (7 CFR part 1410), the

Wetlands Reserve Program (7 CFR part

1467), any Emergency Watershed

Protection Program, or Federal

Easement Program.

(c) On Form CCC–454 producers shall

be required to certify by tract on each

farm the number of flooded cropland

and non-cropland acres for the farm in

2000 and the number of flooded

cropland and non-cropland acres in

1992. To establish the acreage eligible

for payment, flooded land certified for

1992 for each type shall be subtracted

from the flooded land certified for 2000

for the applicable type. The difference

will be the acreages of cropland and

non-cropland subject to flooding and

eligible for FCP payment, except that

the difference may be adjusted as

needed to ensure, to the extent

practicable, an accurate estimate of the

net increased flooding on the farm after

October 1, 1993.

(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 FSA county committee may

use any available documentation to

make the determinations under

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

including but not limited to: maps,

acreage reports, slides, precipitation

data, water table levels and disaster

reports.

§ 1439.507 Producer eligibility.

(a) Payments under this subpart shall

be subject to the provisions of § 1439.1

through § 1439.12, except as otherwise

provided in this subpart.

(b) No person (as defined and

determined under 7 CFR part 1400) may

receive more than $40,000 under this

subpart.

(c) No person (as defined and

determined under 7 CFR part 1400) will

be eligible for payment under this

subpart if that person’s annual gross

receipts for calendar year 1999 were in

excess of $2.5 million. That

determination shall be made in the

manner provided for in § 1439.11.

(d) 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 7 CFR

1400.501 and 1400.502.

§ 1439.508 Calculation of assistance.

(a) The unadjusted value of FCP

assistance determined with respect to

the flooded land in an eligible county

for each producer shall not exceed the

amount obtained by adding the amounts

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

(b) For each eligible producer with

respect to the applicable qualifying

cropland which is determined,

consistent with this subpart, to be

eligible land for the payment purposes,

the established local payment rate for

cropland will be multiplied by the

number of acres determined to be

qualifying acres, 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 noncropland acres consistent with this

subpart, as determined by the county

committee in accordance with

instructions of the Deputy

Administrator, the acres will be

multiplied by the established payment

rate for non-cropland acres.

(d) Payments will be adjusted as

determined necessary to comply with

other provisions of this subpart such as

those set in § 1439.509.

§ 1439.509 Availability of funds.

In the event that the total amount of

claims submitted under this subpart

exceeds the $24 million authorized for

FCP by Public Law 106–224, each

payment to a producer shall be reduced

by a uniform national percentage. Such

payment reductions shall be after the

imposition of applicable payment

limitation provisions.

65718 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

PART 1447—1999 PEANUT

MARKETING ASSISTANCE PROGRAM

19. Revise the heading for part 1447

to read as follows:

PART 1447—2000 PEANUT

MARKETING ASSISTANCE PROGRAM

20. The authority citation for 7 CFR

part 1447 is revised to read as follows:

Authority: Pub. L. 106–78, 113 Stat 1135;

Sec. 204(a), Pub. L. 106–224; 15 U.S.C. 714b,

714c.

21. Revise § 1447.101 to read as

follows:

§ 1447.101 Applicability.

This part sets out provisions related to

the 2000 crop of peanuts as authorized

and in accordance with the applicable

provisions of Public Law 106–224, the

Agricultural Risk Protection Act of 2000

(the 2000 Act). Under section 204(a) of

the 2000 Act, the Secretary of

Agriculture is required to make certain

payments available to eligible producers

of 2000-crop quota and additional

peanuts.

22. Amend § 1447.105 by revising

paragraph (a) to read as follows:

§ 1447.105 Time for filing application.

(a) Applications for benefits under

this part must be filed on or after

October 2, 2000, but not later than the

close of business on February 1, 2001,

in the county FSA office serving the

county where the producer’s farm is

located for administrative purposes.

* * * * *

23. Revise § 1447.106 to read as

follows:

§ 1447.106 Payment rate.

(a) Payment rate for quota peanut

production. The payment rate for quota

peanuts under this part is $30.50 per

ton.

(b) Payment rate for additional peanut

production. The payment rate for

additional peanuts under this part is

$16.00 per ton.

24. Amend § 1447.107 by revising

paragraphs (a)(3)(ii) and (a)(3)(iii) to

read as follows:

§ 1447.107 Calculation of Payment.

(a) * * *

(3) * * *

(ii) The actual yield for any of the

1997, 1998 or 1999 crop years,

(iii) The actual yield for the 2000 crop

year.

* * * * *

Signed in Washington, DC, on October 25,

2000.

Keith Kelly,

Executive Vice President, Commodity Credit

Corporation.

[FR Doc. 00–27793 Filed 10–27–00; 10:26

am]

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Farm Service Agency

7 CFR Parts 718, 1427, 1464, and 1469

RIN 0560–AG19

Farm Reconstitutions and Market

Assistance for Cottonseed, Tobacco,

and Wool and Mohair

AGENCIES: Commodity Credit

Corporation, Farm Service Agency,

USDA.

ACTION: Final rule.

SUMMARY: This rule implements

provisions of the Agricultural Risk

Protection Act of 2000 (ARPA) related to

the market assistance programs for

cottonseed, tobacco, and wool and

mohair. Other provisions of the Act will

be implemented under separate rules.

EFFECTIVE DATE: October 27, 2000.

FOR FURTHER INFORMATION CONTACT: Tom

Witzig, Chief, Regulatory Review and

Foreign Investment Disclosure Branch,

USDA/FSA/ORAS/RRFIDB/STOP 0540,

1400 Independence Avenue, SW,

Washington, DC, 20250–0540, telephone

(202)205–5851, or by e-mail to:

tom_witzig@wdc.fsa.usda.gov.

SUPPLEMENTARY INFORMATION:

Notice and Comment

Section 263 of the ARPA requires that

these regulations be promulgated

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. These

regulations are thus issued as final.

Executive Order 12866

This final rule has been determined to

be economically significant under

Executive Order 12866 and has been

reviewed by the Office of Management

and Budget (OMB). A cost-benefit

assessment was completed and is

summarized after the background

section explaining the actions this rule

will take.

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

The programs administered under the

regulations contained in this rule are

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

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

Act of 1996

Section 263 of the ARPA requires that

the regulations necessary to implement

the Act be issued as soon as practicable

after the date of enactment and without

regard to the notice and comment

provision 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 the notice of

proposed rulemaking and public

participation in rulemaking. It also

requires the Secretary to use the

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

Business Regulatory Enforcement Act

(SBREFA)), which provide that a rule

may take effect at such time as the

agency may determine if the agency

finds for good cause that public notice

is impracticable, unnecessary, or

contrary to the public purpose, and thus

does not have to meet the requirements

of § 801 of SBREFA requiring a 60-day

delay for Congressional review of a

major regulation before the regulation

can go into effect. This final rule is

considered major for the purposes of

SBREFA. However, these regulations