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

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65719

affect a large number of agricultural

producers who have been significantly

impacted by natural disasters and poor

market conditions. Accordingly, and

because Section 263 explicitly sets out

Congress’ intent that the waiting period

of SBREFA should not apply, it has

been determined that it would be

contrary to the public interest and the

relevant public laws to delay

implementation of this rule. This rule is

therefore made 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 the market assistance

programs for tobacco, wool and mohair,

and cottonseed.

1. 7 CFR Part 718—Farm

Reconstitutions For Burley Tobacco

Section 204 of the ARPA changes the

rules for reconstitution of farms with

burley tobacco quotas to allow, on the

division of such a farm by sale, the

quota to be divided in such manner as

the buyer and seller agree. Previously,

the buyer and seller were not allowed

that option. Rules contained in 7 CFR

Part 718 have been modified

accordingly.

2. 7 CFR Part 1427—Cottonseed

Payment Program

Section 204(e) of the ARPA directs the

Secretary of Agriculture to use $100

million of funds of the Commodity

Credit Corporation (CCC) to provide

assistance to producers and first

handlers of the 2000 crop of cottonseed.

A similar program for the 1999 crop of

cottonseed, authorized under section

104(a) of Pub. L. 106–113, was codified

in subpart F of 7 CFR 1427 by

publication of a final rule on June 8,

2000 (65 FR 36550). Under the 1999-

crop program, payments were provided

to gins who, almost universally, obtain

the cottonseed from producers as partial

or full payment for their ginning

services. Program payments

compensated gins for seed prices that

were so low that their ginning costs

were not fully covered by the seed

market value. As that program seems to

have been successful in accomplishing

its intended goals and there is no

indication that Congress was

dissatisfied with the prior program, it

has been decided to operate the new

program in the same manner as the old.

The major provisions of this program

are as follows. The CCC will announce

a period during which U.S. cotton gins

may apply for cottonseed payments. To

participate, cotton gins must complete

an application form including: (1)

Applicant name, address, and a contact

person and telephone number; (2) bank

account identifying information for

payees electing to have payments made

by direct account deposit; (3) the gin’s

5-digit identifying code; (4) the number

of bales of cotton ginned from the 2000

cotton crop; and, (5) the weight (in

pounds) of cotton lint of the reported

bales for which payment is requested.

CCC must receive the application within

the announced application period.

At the close of the application period,

based on the number of bales and the

weight of cotton lint for which payment

is requested, CCC will estimate the

national total quantity of cottonseed for

payment. The payment rate per ton of

cottonseed, and payments to applicants,

will then be determined. The resulting

payments to cotton gins will not be

subject to any payment limitation.

Because outlays for this program are

a fixed amount, the national average

payment rate and individual payments

can be calculated and provided only

after the total eligible quantity of

cottonseed can be determined from

approved applications.

3. 7 CFR 1464—Tobacco Loss

Assistance Program 2000 (TLAP00)

Section 204(b) of the ARPA directs

the Secretary to use $340 million of CCC

funds to make payments to eligible

persons who own or operate, or produce

tobacco on, a farm for which the

quantity of quota of eligible tobacco

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 1999 crop

year to the 2000 crop year and that is

used for the production of eligible

tobacco during the 2000 crop year.

Funds will be paid directly to quota

holders, tobacco controllers, growers,

producers and tenants whose quota was

reduced from the 1999 crop year to the

2000 crop year.

The statute allocates funds in a

specific amount to16 States. CCC shall

directly divide the amount allocated to

a State among farms in the State based

on the quota of eligible tobacco

available to each farm of an eligible

person for the 2000 crop year. These

allocated funds will be paid to the

eligible persons who are eligible quota

owners, quota lessees, controllers,

tenants and tobacco producers on farms

in the State. In the case of a State that

is a party to the National Tobacco

Grower Settlement Trust, the funds, to

the extent practicable, will be

distributed under this part (that is,

under TLAP00) to eligible persons in

the State in accordance with formulas

established pursuant to the Trust with

such adjustments as the Secretary has

determined are necessary in order to

meet the October 1 to October 20, 2000,

statutory window for disbursing

payments to eligible persons. In the case

of a State that is not a party to the

National Tobacco Grower Settlement

Trust, the funds will be distributed

pursuant to a formula established by the

Secretary.

The rule specifies that quotas or

allotments which are suspended from

production because of a Conservation

Reserve Program (CRP) contract with the

CCC will not be treated as ‘‘considered

produced’’ for the purposes of this

program and will not generate payments

under this subpart. This is because the

program is designed to cover market

losses for a particular period whereas

the suspended quotas and allotments,

because of the suspension, were not

expected by the producer to generate

income during that period and,

consequently, in fact produced the same

income as if there had been no

reduction in the overall national

marketing quota for the kind of tobacco

involved. Rather, the income received

was the income under the CRP contract

which was not diminished by the

reduction in the tobacco marketing

quota. Also, the rule specifies that for

purposes of this program, an eligible

person’s status, as owner or controller or

producer of the tobacco, will be

determined as of July 3, 2000, unless the

Deputy Administrator shall determine

otherwise. The choice of the date is

consistent with the State programs that

this program is intended to mimic and

also consistent with the provisions of

65720 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

the normal Federal program for tobacco

in which July 1 is normally the last date

for making permanent transfers of quota.

At this point, in addition, persons with

an interest in tobacco quotas have a

history of payments under the first

TLAP program and under the ‘‘Phase II’’

program operated by the States.

Due to the October 20, 2000, payment

deadline imposed by the statue, the use

of all individual State trust payment

formulas would generate a high level of

risk in the overall program delivery

being delayed, with a subsequent delay

in the FSA ability to issue payments for

the program. After careful consideration

of the various State formulas two

formulas were selected and the States

will be grouped accordingly to the

formula that most closely matched the

State’s formula.

Accordingly, the funds for all fluecured (types 11, 12, 13 and 14) and

cigar-binder (types 54 and 55) tobaccos

will be paid, 50 percent to the quota

owner and 50 percent to the producer.

The allocated funds for all burley (type

31) and dark fire-cured (type 21)

tobaccos will be paid one-third to quota

owners; one-third to the farm controller;

and one-third to the grower(s)/tenant(s).

These payment scenarios most nearly

reflect the Phase II payment formulas for

these kinds of tobacco in the principal

growing areas. The rules provide a

special provision for Georgia in that

payment in that State will be made only

if a specified amount is also contributed

by the State to the same persons who are

otherwise eligible for Federal payments

under this new program. This special

provision is required by the authorizing

legislation.

4. 7 CFR 1469—Wool and Mohair

Market Loss Assistance Program

Section 204(d) of the ARPA provides

that the Secretary shall use funds of the

Commodity Credit Corporation to make

payments to producers of wool and

mohair for the 1999 marketing year.

Producers of wool and mohair are

experiencing the lowest prices in

history. The ARPA requires the

Secretary of Agriculture to make direct

payments to wool and mohair producers

at payment rates of 20 cents per pound

for wool and 40 cents per pound for

mohair. Producers wanting to

participate in the new program must file

an application for payment by December

29, 2000, or such other date as may be

set by the Deputy Administrator for

Farm Programs, FSA. Applications will

be spot-checked and validated by FSA.

Payment will be made only for wool and

mohair shorn in the United States in

1999 from live domestic animals owned

by the producer for 30 days or more.

These restrictions are intended to insure

that coverage is limited to actual wool

producers, as opposed to meat

producers, for wool actually produced

as wool, not a by-product, during the

relevant time period allowed for by the

statute. Other restrictions will also

apply.

Cost-Benefit Assessment

Summary

Outlays under the programs

implemented by this rule will total

approximately $450 million. The table

summarizes the outlays and a summary

of the Cost/Benefit Assessment for each

program follows.

SUMMARY OF OUTLAYS

Program Outlays

Cottonseed Payment Program ..... $100.0

Tobacco Loss Assistance Program .......................................... 340.0

Wool and Mohair Payment Program .......................................... 10.0

Total ....................................... 450.0

Cottonseed Payment Program

The cottonseed support payment

program is designed to provide

payments to cotton ginners in response

to an expected continuation of low

cottonseed prices in the 2000 crop year.

The statute authorizes the expenditure

of $100 million in Commodity Credit

Corporation funds for payments to first

handlers or producers of 2000-crop

cottonseed. Normally, the value of the

seed covers the cost to cotton producers

of ginning their cotton. In 1999,

however, the value of the seed was

insufficient to pay the full cost of

ginning in many locations in the Cotton

Belt, and growers were asked to pay

additional fees. During the 2000 crop

year, prices for cottonseed are projected

to be even lower than they were in the

1999 season, but ginning costs are likely

to be the same or higher. Thus, losses

again are expected in the ginning

process.

Last season, the average price of

cottonseed, $90 per ton, was about $39

per ton (30 percent) below the average

level received in 1998, or about $27 per

ton (23 percent) less than the average of

1994 through 1998. Though it is very

early in the 2000 ginning season, USDA

expects that cottonseed prices will drop

further in 2000 and average about $84

per ton.

Cottonseed prices in 1999 would

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 likely fell 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 the 2000 crop year, the expected

value of cottonseed is only about $32

per bale of lint, while ginning costs are

again expected to average about $46 per

bale. The average loss over the entire 19-

million-bale crop now expected to be

harvested would be about $14 per bale,

or almost 2.9 cents per pound.

For ginning services in 1999, some

farmers were initially asked to pay the

ginner an additional 2 or 3 cents per

pound of cotton lint beyond the value

of the seed. Later in the season, as the

1999 cottonseed program began to be

publicized, some ginners merely held

these ginning bills, knowing they would

receive the program payment. In 2000,

it is likely that ginners will hold bills

against the payment they are expecting

from this year’s program.

Cottonseed prices are influenced

heavily by soybean prices. Prices for

soybeans in 1999 fell from the

depressed level of $4.93 they averaged

in 1998 to $4.65 per bushel. A further

stock build-up is projected for the 2000

crop year, and prices are projected at

$4.35 per bushel, even lower than they

were in 1999. The prices for other

oilseeds, including canola, sunflower

seed, and cottonseed are all projected to

be down substantially from last year’s

level.

The most viable option to assist

cotton producers is a direct payment

program in which payments are made to

ginners. There are between 1000 and

1100 gins in the United States. About 25

percent 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.

Thus, farmers have a direct interest in

about 75 percent of the gins and can be

expected to receive nearly the full

benefit of any payments made to the

gins. In the other 25 percent of gins

where farmers do not directly operate or

share in the ownership, farmers still

may be expected to receive a substantial

portion of the program benefits because:

(1) The gins may have held the ginning

bills pending the implementation of this

program; (2) gins may rebate farmers

any ginning bill already paid by farmers;

or (3) 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.

In 1999, total cottonseed production

was estimated at 6,422,400 tons. Total

losses associated with ginning in 1999

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65721

are estimated at $190 million. Total

funding available for the 1999 program

was $79 million, and payments were

$12.23 per ton of seed produced, or

about $4.77 per bale of lint pressed.

Payments were made to 1015 gins and

covered about 41 percent of the losses.

For 2000, given the current projection

of cotton lint production of 19,159,000

bales, cottonseed production should

total about 7.38 million tons. At $84 per

ton, the seed would be valued at $622

million. Ginning costs are expected to

average a little over $46 per bale, so the

cost of ginning the 2000 crop should be

about $885 million. The projected loss

on ginning costs would be $263 million,

or about $13.75 per bale of lint pressed.

The payments will cover about 38

percent of the loss.

Tobacco Loss Assistance Program

On September 20, 1998, the major

cigarette manufacturers agreed to pay

$246 billion to the various states to

settle their medicare lawsuits. To defray

these costs, the manufacturers raised

cigarette prices substantially. The

increased cost of cigarettes, along with

adverse publicity surrounding smoking

has curtailed cigarette use—and

therefore leaf use—substantially.

As a result, marketing quota for fluecured and burley tobaccos continue to

decline. The 2000 crop quotas were

reduced 18.4 percent and 45.3 percent

respectfully. In addition, producers of

Virginia fire-cured (type 21) tobacco and

cigar filler and binder (types 42–44; 53–

55) tobacco suffered declines of 15

percent and 171⁄2 percent respectively,

in 2000 allotments, for reason’s

unrelated to the settlement.

Most tobacco operations are small

family-owned farms. There are few, if

any, alternatives for tobacco. With no

crop alternatives and little

diversification in tobacco growing

regions, economic hardship is

particularly harsh during downturns in

tobacco production. Thus, the tobacco

loss assistance provisions of the ARPA

appropriated $340 million to lessen

economic hardships in specific tobacco

communities.

The $340 million will assist quota

holders and growers to defray income

lost in crop year 2000 due to quota

reductions. The program will pay

producers roughly $1 for each pound of

quota lost in crop year 2000. This

amount of payment will more than

cover producers’ and quota holders’ lost

profit for crop year 2000.

Wool and Mohair Payment Program

Both wool and mohair production in

the United States have been on the

decline in recent years. The number of

head of sheep estimated to have been

shorn for wool production has declined

every marketing year since 1981. The

number of goats clipped for mohair

production has declined annually for

about the last 10 years. Wool production

has been cut in half since 1988 and is

estimated for 1999 at 46.5 million

pounds. Mohair production in 1999 is

estimated at only 3.2 million pounds,

only one-fifth of the production in 1991.

Wool prices in 1995 averaged over $1

per pound, but by the end of the 1999

marketing year they were averaging

about 60 cents. Average prices for

mohair were about $2.50 per pound for

2 years and then increased to $3.50 per

pound in 1999. Because of reduced

production, as well as low prices, the

value of wool produced in 1999 is

estimated at about $17.9 million, a

decline of 85 percent from the value 10

years ago and down 40 percent from the

value in 1998. The value of mohair

produced in 1999 is estimated at $10

million, about half of the value 10 years

ago and down 20 percent from the

already depressed value in 1998.

Wool consumption by domestic

textile mills also has declined steadily

in recent years and is projected for 1999

at only 85 million pounds, the lowest in

at least 25 years and down 30 million

pounds from 1998’s level.

A recourse loan program was

implemented for mohair in the 1998 and

1999 marketing years, but only about 40

percent of the 5.5 million pounds of hair

placed under loan in 1998 and about 10

percent of the 1.2 million pounds

placed under loan in 1999 has been

redeemed.

Given these discouraging production,

price, and consumption figures,

Congress has provided direct Market

Loss Assistance (MLA) payments for

producers of mohair and wool in 1999.

Two options were considered for

determining the quantity of a producer’s

wool or mohair eligible for payment.

The first option limited the eligible

quantity to marketings of wool or

mohair during marketing year 1999. The

second option allowed producers to

certify the quantity they produced

during marketing year 1999 and subject

them to spot checks by CCC.

The second option was selected for

two reasons. First, the program

administration would be much simpler

if paper documentation of marketings

were not required. Spot checks can be

accomplished by local FSA personnel.

Penalties for inaccurate certifications by

producers can be easily assessed and

will inhibit false reports.

Second, many producers have not yet

marketed their wool or mohair because

of the very low prices this program was

designed to address. To deny those

producers payments on the grounds

they had no 1999 marketings would be

contrary to the objective of the program.

Payments of 20 cents per pound on

1999 wool production would amount to

about $9 million, more than doubling

proceeds from wool production.

However, payments will not actually be

made to producers until almost the end

of the 2000 marketing year, so it is

difficult to envision significant nearterm impacts on the U.S. wool situation.

Some additional production may be

stimulated in early 2001 for producers

who otherwise lack financing. However,

continued heavy textile imports likely

will mean stagnant mill demand for

wool. MLA payments may contribute to

continued depressed prices in the future

to the extent that they stimulate

additional production.

Mohair producers are to receive 40

cents per pound. MLA payments will

amount to about $1 million, or 10

percent of sales receipts in 1999. The

income impact of this program on

mohair producers is not as significant as

it is on wool producers, and its impact

on the supply/use situation for mohair

should be even less than its impact on

the wool situation.

List of Subjects

Part 718

Acreage allotments, Loan program—

agriculture, Marketing quotas, Price

support programs, Reporting and

recordkeeping requirements.

Part 1427

Cotton, Cottonseed, Loan programs—

agriculture, Price support programs,

Reporting and recordkeeping

requirements.

Part 1464

Imports, Loan programs—agriculture,

Price support programs, Reporting and

recordkeeping requirements, Tobacco.

Part 1469

Loan programs—agriculture, Mohair,

Price support programs, Reporting and

recordkeeping requirements.

For the reasons set out in the

preamble, 7 CFR Chapters VII and XIV

are amended as set forth below.

PART 718—PROVISIONS APPLICABLE

TO MULTIPLE PROGRAMS

1. The authority citation for 7 CFR

part 718 continues to read as follows:

Authority: 7 U.S.C. 1373, 1374, 7201, et

seq.; 15 U.S.C. 714b and 714c; and 21 U.S.C.

889.

2. Amend § 718.205 by removing

paragraphs (c)(5)(i) and (c)(5)(ii) and

65722 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

revising paragraph (c)(5) to read as

follows:

§ 718.205 Rules for determining farms,

allotments, quotas, and acreages when

reconstitution is made by division.

* * * * *

(c) * * *

(5) The designation by landowner

method is not applicable to crop

allotments or quotas which are

restricted to transfer within the county

by lease, sale, or by owner, when the

land on which the farm is located is in

two or more counties.

* * * * *

PART 1427—COTTON

3. 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, Pub. L. 106–

78; Sec.204(e), Pub. L. 106–224.

4. Revise subpart F of part 1427 to

read as follows:

Subpart F—Cottonseed Payment

Program

Sec.

1427.1100 Applicability.

1427.1101 Administration.

1427.1102 Definitions.

1427.1103 Eligible cottonseed.

1427.1104 Eligible first handlers.

1427.1105 Payment application.

1427.1106 Total available program funds.

1427.1107 Applicant payment quantity.

1427.1108 Total payment quantity.

1427.1109 Payment rate

1427.1110 Payment calculation and form.

1427.1111 Liability of first handler.

§ 1427.1100 Applicability.

(a) The regulations in this subpart are

applicable to the 2000 crop of

cottonseed. These regulations set forth

the terms and conditions under which

the Commodity Credit Corporation

(CCC) shall provide payments to first

handlers of cottonseed who have

applied to participate in the Cottonseed

Payment Program in accordance with

Section 204(e) of Public Law 106–224.

Additional terms and conditions may be

set forth in the payment application that

must be executed by participants to

receive cottonseed payments.

(b) Payments shall be available only

for cottonseed produced and ginned in

the United States.

§ 1427.1101 Administration.

(a) The Cottonseed Payment Program

shall be administered under the general

supervision of the Executive Vice

President, CCC (Administrator, FSA), or

a designee, and shall be carried out by

FSA’s Price Support Division (PSD) and

Kansas City Management Office

(KCMO).

(b) The PSD 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 of this

subpart to PSD 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 PSD or KCMO .

(d) The Executive Vice President,

CCC, or a designee, may waive or

modify deadlines and other program

requirements in cases where lateness or

failure to meet such other requirements

do not affect adversely the operation of

the cottonseed payment program.

(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

outside of the dates authorized by CCC,

shall be null and void unless the

Executive Vice President, CCC, shall

otherwise allow.

§ 1427.1102 Definitions.

The definitions set forth in this

section shall be applicable for purposes

of administering the 2000 Cottonseed

Payment Program. The terms defined in

§§ 1427.3, 1427.52, and 1427.102 shall

also be applicable to this subpart.

Application period means a period, to

be announced by CCC, during which

applications for payments under the

Cottonseed Payment Program must be

received to be considered for payment.

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 cotton

seed from cotton lint.

Lint means cotton lint as contained in

bales of cotton ordinarily marketed as

cotton and excludes any linters, raw

motes, re-ginned motes, cleaned motes,

and any other gin waste or by product

not traditionally defined as cotton lint.

Number of bales means the number of

running bales of cotton 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.

Running bale means a bale of cotton

lint that has a minimum weight of 425

pounds.

Ton means a unit of weight equal to

2000 pounds avoirdupois (907.18

kilograms).

§ 1427.1103 Eligible cottonseed.

To be eligible for payments under this

subpart, cottonseed must:

(a) Have been grown in the United

States during the 2000-crop production

period.

(b) Have been ginned by the applicant

from 2000-crop cotton.

(c) Not have been destroyed or

damaged by fire, flood, or other events

such that its loss or damage was

compensated by other local, State, or

Federal Government or private or public

insurance or disaster relief payments.

§ 1427.1104 Eligible first handlers.

(a) For the purpose of this subpart, an

eligible first handler of cottonseed shall

be a gin that ginned 2000-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, in signing the

Cottonseed Payment Program

Application/Certification, 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

revenue from cottonseed sale is shared

with the producer.

§ 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

may not be accepted for payment.

(c) Cottonseed Payment Program

Applications/Certifications may be

obtained from the CCC as announced by

press 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 completed original to CCC

as announced and directed on the

application.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65723

§ 1427.1106 Total available program funds.

The total available program funds

shall be $100 million as provided by

Section 204(e) of Public Law 106–224.

§ 1427.1107 Applicant payment quantity.

(a) The applicant’s payment quantity

of cottonseed will be determined by

CCC based on the number of eligible

ginned cotton bales and cotton lint

weight submitted on the Cottonseed

Payment Application/Certification and/

or obtained by CCC, with the agreement

of the applicant, from the Agricultural

Marketing Service.

(b) The applicant’s payment quantity

of cottonseed shall be calculated by

multiplying:

(1) The applicant’s weight of lint for

which payment is requested, as

approved by CCC, by

(2) The 1995–99 Olympic average of

estimated pounds of cottonseed per

pound of ginned cotton lint for all

domestic ginners.

§ 1427.1108 Total payment quantity.

(a) The total quantity of 2000-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

cottonseed for which applications for

payment are received within the

application period announced by CCC.

(b) The total payment quantity of

cottonseed (ton-basis) shall be

calculated by multiplying:

(1) The weight of cotton lint (tonbasis) for which payment is requested

by all applicants, as approved by CCC,

by

(2) The 1995–99 Olympic average of

estimated pounds of cottonseed per

pound of ginned cotton lint .

§ 1427.1109 Payment rate.

The payment rate (dollars per ton) for

the purpose of calculating payments

made available in accordance with this

subpart shall be determined by CCC by

dividing the total available program

funds by the total payment quantity of

2000-crop cottonseed.

§ 1427.1110 Payment calculation and form.

(a) Payments in accordance with this

subpart shall be determined for

individual applicants by multiplying:

(1) The payment rate, determined in

accordance with § 1427.1109, by

(2) The payment quantity of the

applicant, determined in accordance

with § 1427.1107.

(b) After receipt of the application for

payment, together with required

supporting documents and the

determination of the payment rate, CCC

will issue payments to the applicant by

electronic deposit to the applicant’s

account. Applicants may request that

payment be made by mailed check. If a

payment is not made within 30 days of

the close of the announced application

period, CCC will pay interest at the

prompt payment interest rate.

§ 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) If more than one person executes

a payment application with CCC, each

such person shall be jointly and

severally liable for any violation of the

terms and conditions of the application

and the regulations set forth in this

subpart. Each such person shall also

remain liable for the repayment of the

entire payment amount 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:

(1) Adopted any scheme or device

which violates this Application;

(2) Made any fraudulent

representation; or

(3) Misrepresented any fact affecting a

determination under this Application,

CCC will notify the appropriate

investigating agencies of the United

States and take steps deemed necessary

to protect the interests of the

government.

(d) If the payment applicant receives

a payment in excess of the entitled

payment in accordance with the

application, 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 3 years

after the date of the application or July

31, 2004, the applicant shall keep

records and furnish such information

and reports relating to the application as

may be requested by CCC. Such records

shall be available at all reasonable times

for an audit or inspection by authorized

representatives of CCC, 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. Nothing in this section shall,

however, authorize the destruction of

any records where there is an on-going

dispute or where the party involved has

reason to know that such records remain

material to the operation of the program.

(f) No Member or Delegate of Congress

or Resident Commissioner shall be

admitted to any share or part of

payments provided under this

Application 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

this Application is for the general

benefit of such company, nor shall it be

construed to extend to any benefit that

may accrue to such official in their

capacity as a producer.

PART 1464—TOBACCO

5. The authority citation for part 1464

is revised to read as follows:

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

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

L. 106–78, 113 and 224; Sec. 204(b), Pub. L.

106–224.

6. Revise the heading for subpart C to

read as follows:

Subpart C—Tobacco Loss Assistance

Program 1999

7. Add subpart E to read as follows:

Subpart E—Tobacco Loss Assistance

Program 2000

Sec.

1464.401 Applicability and basic terms for

payments.

1464.402 Administration.

1464.403 Eligibility.

1464.404 Definitions.

1464.405 Sign up.

1464.406 [Reserved]

1464.407 Payment benefits.

1464.408 Offsets and assignments.

1464.409 Misrepresentation and scheme or

device.

1464.410 Refunds to CCC.

1464.411 Cumulative liability.

1464.412 Estate, trusts, and minors.

1464.413 Death, incompetence, or

disappearance.

1464.414 Appeals.

§ 1464.401 Applicability and basic terms

for payments.

(a) This subpart sets forth the terms

and conditions of the Tobacco Loss

Assistance Program 2000 (TLAP00)

authorized by section 204(b) of the

Agricultural Risk Protection Act of 2000

(Public Law 106–224). That section

provides that $340 million of funds of

the Commodity Credit Corporation

(CCC) shall be made available to make

direct payments to eligible persons, on

a farm:

(1) For which the quantity of quota of

eligible tobacco allotted to the farm was

reduced from the 1999 crop year to the

2000 crop year; and

65724 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

(2) That is used for the production of

eligible tobacco during the 2000 crop

year.

(b) The amounts made available to

farms in a State shall be divided based

on the quota of eligible tobacco

available to each farm of an eligible

person for the 2000 crop year.

(c) The amounts made available to

farms in a State under paragraph (b) of

this section shall be divided among

eligible persons who are quota owners,

quota lessees, controllers, growers,

tenants and producers on farms in the

State but only to the extent that is

otherwise provided for in this subpart.

(d) The funds made available for

‘‘eligible persons’’ shall be allocated

among States in the following dollar

amounts:

Alabama ................................ $100,000

Arkansas ............................... 1,000

Florida ................................... 2,500,000

Georgia ................................. 13,000,000

Indiana .................................. 5,400,000

Kansas .................................. 23,000

Kentucky ............................... 140,000,000

Missouri ................................ 2,000,000

North Carolina ...................... 100,000,000

Ohio ...................................... 6,000,000

Oklahoma ............................. 1,000

South Carolina ...................... 15,000,000

Tennessee ............................ 35,000,000

Virginia .................................. 19,000,000

West Virginia ........................ 1,300,000

Wisconsin ............................. 675,000

§ 1464.402 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

(FSA) 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 FSA 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.

(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 in this part 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 modify or revise deadlines and

requirements contained in this subpart

as determined needed or appropriate to

accomplish the goals of this program.

§ 1464.403 Eligibility.

For a person to be considered an

‘‘eligible person’’ for purposes of this

part, such person must own, operate or

produce eligible tobacco on a farm for

which a quota reduction from the 1999

crop year to the 2000 crop year occurred

and that was used for the production of

tobacco during the 2000 crop year.

§ 1464.404 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the program

(‘‘TLAP00’’) of this subpart. The

definitions in 7 CFR 718.2 and 723.104

also apply to the program. To the extent

that the definitions in this section differ

from the definitions in 7 CFR 718.2 and

723.104, the definitions in this section

apply rather than the definitions in 7

CFR 718.2 and 723.104. The following

terms shall have the following

meanings:

Controller means that person or entity

who, as determined by the Deputy

Administrator, controls the land used to

produce eligible tobacco and share in

the risk of production.

Eligible person means, with respect to

payments under this part, a person who

owns or operates, or produces eligible

tobacco on a farm for which the quantity

of quota of eligible tobacco allotted to

the farm under part I of subtitle B of title

III of the Agricultural Adjustment Act of

1938 was reduced from the 1999 crop

year to the 2000 crop year and that will

be used for the production of eligible

tobacco during the 2000 crop year. For

these purposes, the quota will be

considered produced if it ‘‘considered

produced’’ under the normal rules that

apply with respect to tobacco under this

part and under 7 CFR part 723; however

any such actual production, production

that is considered under this part and

under 7 CFR part 723 to have occurred,

will suffice to qualify the parties

associated with that quota for payments

under this part to which they would

otherwise be entitled. That is, the

amount of payment will not be tied to

the amount of production which

qualifies the party for participation

under this program except as might

otherwise be specified in this subpart.

However, tobacco quotas or allotments

which are suspended from production

because of a Conservation Reserve

Contract with the CCC will not be

treated as ‘‘considered produced’’ for

these purposes and will not generate

payments under this subpart. For

purposes of this subpart, further, an

eligible persons’s status, as owner or

controller or producer of the tobacco,

will be determined as of July 3, 2000.

Eligible tobacco means each of the

following kinds of tobacco: flue-cured

tobacco (types 11, 12, 13 and 14), dark

fire-cured tobacco (type 21), burley

tobacco (type 31), and cigar-binder

tobacco (types 54 and 55).

Grower/tenant means person(s) or

entities who provide labor to produce

tobacco and share in the risk of

production.

Payment pounds means the pounds of

tobacco for which a person is eligible to

be paid under this subpart.

Producer means person(s) or entity(s)

actively engaged in planting, growing,

harvesting, and/or marketing of tobacco,

or who shares in the risk of producing

the crop.

Quota owner means the person(s) or

entities who own the land for which

quota is established under the

Agricultural Adjustment Act of 1938, as

amended.

Share in the risk of production means

having a direct financial stake in the

success of the crop through a direct

share in the actual proceeds from the

actual marketing of the crop which

share is conditional upon the success of

that marketing. Farm owners who cashlease their farm land to a tobacco

producer for the right to grow tobacco

on that land and receive payment for

such right regardless of whether or not

a tobacco crop is marketed are not

considered to share in the risk of

production. Farm laborers who provide

service in exchange for a wage and

whose payment is not subject to the

marketing of the tobacco crop are not

considered to be sharing in the risk of

production.

TLAP00 means the Tobacco Loss

Adjustment Program, for the 2000 crop,

which is provided for in this subpart.

§ 1464.405 Sign up.

(a) Eligible persons who wish to apply

for TLAP00 funds, must file an

application with the county FSA office

by the date established by the Deputy

Administrator. However, a late filed

application filed late because of

hardship may be accepted. Acceptance

of such applications must be approved

by the Deputy Administrator, subject to

the availability of funds.

(b) Data furnished by the applicants

will be used to determine eligibility for

program benefits. Furnishing the data is

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65725

voluntary; however, without it program

benefits will not be provided.

§ 1464.406 [Reserved]

§ 1464.407 Payment benefits.

(a) TLAP00 payments shall be made

to ‘‘eligible persons’’ not later than

October 20, 2000 on the basis of two

formulas.

(1) All flue-cured and cigar-binder

funds in a State will distribute 50

percent to eligible quota owners and 50

percent to eligible producers.

(2) All burley and dark fire-cured

tobacco funds in a State will be

distributed one-third to quota owners;

one-third to the controller; and onethird to grower(s)/tenant(s).

(b) As provided in paragraph (a) of

this section the formulas shall be

applied to the kinds of tobacco as

follows:

(1) The allocated funds for cigarbinder (types 54 and 55) will be

disbursed with 50 percent being paid to

quota owners based on basic allotment

times NASS yield and 50 percent being

paid to producers based on basic

allotment times the NASS yield. The

NASS yield for cigar-binder (types 54

and 55) is 2,054 pounds per acre.

(2) The allocated funds for dark firecured (type 21) will be disbursed with

one-third being paid to quota owners

based on the 2000 crop year basic

allotment times NASS yield, one-third

being paid to the controller based on the

2000 crop year effective allotment times

NASS yield, and one-third being paid to

grower(s)/tenant(s) based on the 2000

crop year effective quota times NASS

yield. The NASS yield for dark firecured (type 21) is 2,139 pounds per

acre.

(3) The allotted funds for flue-cured

tobacco (types 11, 12, 13 and 14) will be

disbursed with 50 percent paid to quota

owners on the 2000 crop year basic

quota and 50 percent being paid to

producers on the 2000 crop year basic

quota.

(4) The allotted funds for burley

tobacco (type 31) will be disbursed with

one-third being paid to quota owners

based on the 2000 crop year basic quota;

one-third being paid to the farm

controller based on the 2000 crop year

effective quota before any disaster lease

and transfer pounds; and one-third

being paid to grower(s)/tenant(s) based

on the 2000 crop year effective quota

before any disaster lease and transfer

pounds.

(c) The Secretary shall use the amount

allocated to the State of Georgia to make

payments to eligible persons in the State

of Georgia only if the State of Georgia

agrees to use an equal amount (not to

exceed $13,000,000) to make payments

at the same time, or subsequently, to the

same eligible persons in the same

manner as provided for in this section.

(d) The payment amount shall be

determined by apportioning the

allocated funds for each State on a

poundage basis among the timely

applications that are filed, with an

allowance for a reserve to handle

hardships and appeals.

(e) All payments under this part are

subject to the eligibility of funds;

further, terms used in this part may be

further refined and applied as will more

closely align the payments made under

this subpart with payments made under

the various State programs which have

preceded it. In the case where a

payment to a farm is disputed the

Deputy Administrator may require that

all interested parties agree to the

resolution of the dispute before any

payment is made and may delay

payments to the farm until any such

disputes are resolved. Also, as

determined appropriate to accomplish

the desire that program payments be

made expeditiously in a manner that is

administratively efficient, the Deputy

Administrator may properly exclude

payments to a person who does not file

a timely claim and all payments may be

made to those parties whose claim to

the payment is not challenged. Nothing

in this section shall, however, be

construed to prevent the agency from

denying any payment to any person

based upon a failure of that person to

meet any eligibility criteria set forth in

this part.

§ 1464.408 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 7 CFR part 1403

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 7 CFR part 1404.

§ 1464.409 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 7 CFR part 1403.

(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

CCC all payments, plus interest

determined in accordance with 7 CFR

part 1403, received by such producer

with respect to all applications. The

producer’s interest in all applications

shall be terminated.

§ 1464.410 Refunds to CCC.

Persons who are party to the TLAP00

application must refund to CCC any

excess payments made by CCC with

respect to such application with

interest.

§ 1464.411 Cumulative liability.

The liability of any person for any

penalty under this part or for any refund

to CCC or related charge arising in

connection therewith shall be in

addition to any other liability of such

person under any civil or criminal fraud

statute or any other provision of law

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

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

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

§ 1464.412 Estates, trusts, and minors.

(a) Program documents executed by

persons legally authorized to represent

estates or trusts will be accepted only if

such persons furnish 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 has

executed the applicable program

documents; or

(3) A bond is furnished under which

the surety guarantees any loss incurred

for which the minor would be liable had

the minor been an adult.

§ 1464.413 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 as are specified in 7 CFR part

707 may receive such assistance.

65726 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

§ 1464.414 Appeals.

Appeals of determinations made

under this part shall be heard under the

provisions appearing in 7 CFR parts 11

and 780. Provisions of general

applicability are not appealable and

likewise matters committed to agency

discretion may not be appealable.

Nothing in this section shall be taken to

expand the scope of review of any

determination or make a determination

appealable that would otherwise not be

appealable.

PART 1469—RECOURSE LOAN

REGULATIONS FOR MOHAIR

8. The authority citation for part 1469

is revised to read as follows:

Authority: Pub. L. 105–277, 112 Stat. 2681;

Sec. 801, Pub. L. 106–78, 113 Stat. 1135; Sec.

204(d), Pub. L. 106–224.

9. Revise the heading for part 1469 to

read as follows:

PART 1469—WOOL AND MOHAIR

PRICE SUPPORT PROGRAMS

10. Redesignate §§ 1469.1 through

1469.17 as subpart A and add a heading

for subpart A to read as follows:

Subpart A—Recourse Loan

Regulations for Mohair

11. Add subpart B to read as follows:

Subpart B—Wool and Mohair Market

Loss Assistance Program

Sec.

1469.101 Applicability.

1469.102 Administration.

1469.103 Definitions.

1469.104 Time and method of application.

1469.105 Eligibility.

1469.106 Payment rate and amount.

1469.107 Offsets.

1469.108 Appeals.

1469.109 Misrepresentation.

1469.110 Maintaining records.

1469.111 Estate, trust, and minors.

1469.112 Death, incompetency, or

disappearance.

1469.113 Refunds; joint and several

liability.

§ 1469.101 Applicability.

The regulations of this subpart

provide the terms and conditions under

which the Commodity Credit

Corporation (CCC) may make payments

to wool and mohair producers for

production from the 1999 marketing

year.

§ 1469.102 Administration.

(a) The Wool and Mohair Market Loss

Assistance Program shall be

administered under the general

supervision of the Executive Vice

President, CCC, or designee and shall be

carried out in the field by State and

county Farm Service Agency

committees (State and county

committees) and FSA employees.

(b) State and county committees, and

FSA employees, do not have the

authority to modify or waive any of the

provisions of the regulations of this

subpart.

(c) The State committee shall take any

action required by the regulations of this

subpart that has not been taken by the

county committee. The State committee

shall also:

(1) Correct, or require the county

committee to correct, any action taken

by such county committee that is not in

accordance with the regulations of this

subpart; and

(2) Require a county committee to

withhold taking any action that is not in

accordance with the regulations of this

subpart.

(d) No provision or delegation of this

subpart to a State or county committee

shall preclude the Executive Vice

President, CCC, or a designee, or the

Administrator, FSA, or a designee, from

determining any question arising under

the program or from reversing or

modifying any determination made by

the State or county committee.

(e) The Deputy Administrator, Farm

Programs, FSA, may authorize State and

county committees to waive or modify

deadlines and other program

requirements in cases where lateness or

failure to meet such other requirements

does not adversely affect the operation

of the Wool and Mohair Market Loss

Assistance Program and does not violate

statutory limitations on the program.

§ 1469.103 Definitions.

The definitions set forth in this

section shall be applicable for all

purposes of administering the Wool and

Mohair Market Loss Assistance Program

established by this subpart.

Administrator means the FSA

Administrator.

Application means Form CCC–1155,

the Wool and Mohair Market Loss

Assistance Program Application.

Application period means October 10,

2000, through December 29, 2000.

CCC means the Commodity Credit

Corporation.

County committee means the FSA

county committee.

County office is the local FSA office.

Farm Service Agency or FSA means

the Farm Service Agency of the United

States Department of Agriculture.

Goat means an adult Angora goat or

the kid of an Angora goat.

Grease mohair means mohair as it

comes from the Angora goat or the kid

of an Angora goat before applying any

process to remove the natural oils or

fats.

Grease wool means wool as it comes

from the sheep or lambs before applying

any process to remove the natural oils

or fats.

Hide means thick tough skin of the

animal.

Lamb means a young ovine animal

that has not cut the second pair of

permanent teeth. The term includes

animals referred to in the livestock trade

as lambs, yearlings, or yearling lambs.

Marketing year means a period

beginning January 1, and ending the

following December 31, both dates

inclusive.

Mohair means the hair sheared from

a live Angora goat before applying any

process that removes the natural oils or

fats or produces a mohair product.

Mohair does not include grease mohair

shorn from pelts or hides.

Pelt means the skin of the animal with

wool still attached to the skin.

Person means any individual, group

of individuals, partnership, corporation,

estate, trust, association, cooperative, or

other business enterprise or other legal

entity who is, or whose members are, a

citizen or citizens of, or legal resident

alien or aliens, in the United States.

Producer means any person or group

of persons who as a single unit produce

wool or mohair and whose production

and facilities are located in the United

States.

Pulled mohair means mohair obtained

from the pelts or hides of dead goat.

Pulled wool means wool obtained

from the pelts or hides of dead sheep.

Shorn mohair means grease mohair

sheared from a live Angora goat or the

kid of an Angora goat. Shorn mohair

does not include pelts, hides, or pulled

mohair.

Shorn wool means grease wool

sheared from live sheep or lambs. Shorn

wool does not include pelts, hides, or

pulled wool.

State committee is the FSA committee

so designated for the applicable State.

United States means the 50 United

States of America, the District of

Columbia, and the Commonwealth of

Puerto Rico.

Wool means the hair sheared from a

live sheep before applying any process

that removes the natural oils or fats or

produces a wool product. Wool does not

include grease wool shorn from pelts or

hides.

§ 1469.104 Time and method of

application.

(a) Wool and mohair producers may

obtain an application, Form CCC–1155

(Wool and Mohair Market Loss

Assistance Program Application), in

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations 65727

person, by mail, by telephone, or by

facsimile from any county FSA office. In

addition, applicants may download a

copy of Form CCC–1155 at http://

www.fsa.usda.gov/dafp/psd/.

(b) A request for payments under this

part must be submitted on a completed

Form CCC–1155. Form CCC–1155

should be submitted to the FSA county

office servicing the county where the

producer is located but, in any case,

must be received by the FSA county

office by the close of business on

December 29, 2000. Applications not

received by the close of business on

December 29, 2000, will be returned as

not having been timely filed and the

producer will not be eligible for

payments under this program.

(c) The wool and mohair producer

requesting payments under this part

must certify with respect to the accuracy

and truthfulness of the information

provided in their application for

payments. All information provided is

subject to a spot check by FSA. Refusal

to allow FSA or any other agency of the

Department of Agriculture to verify any

information provided will result in a

determination of ineligibility. Data

furnished by the applicant will be used

to determine eligibility for program

payments. Furnishing the data is

voluntary; however, without it program

payments will not be approved.

Providing a false certification to the

Government is punishable by

imprisonment, fines and other penalties.

§ 1469.105 Eligibility.

(a) Producers. To be eligible to receive

a payment under this subpart, a

producer must:

(1) Have produced domestic wool

and/or domestic mohair during the

period of January 1, 1999, through

December 31, 1999.

(2) Be engaged in the business of

producing and marketing agricultural

products at the time of filing the

application; and

(3) Apply for payment during the

application period.

(b) Eligible wool and mohair. (1) Wool

and mohair is eligible to generate

payments under this subpart only if the

wool or mohair was produced by

shearing live animals (not wool or

mohair which is pulled or which is

shorn from hides or pelts) and only if

such shearing occurred in 1999 and in

the United States.

(2) The producer applying for

payment must have owned the wool or

mohair at the time of shearing and must

have owned in the United States the

sheep, lambs, or goats from which the

wool or mohair was shorn for 30 days

or more at any time prior to shearing

and actually owned the animal at the

time of shearing.

§ 1469.106 Payment rate and amount.

(a) Payment rate.

(1) The payment rate for wool is 20

cents per pound.

(2) The payment rate for mohair is 40

cents per pound.

(b) Payment amount. The payment

amount for wool or mohair will be

calculated by multiplying the certified

pounds by the payment rate.

§ 1469.107 Offsets.

Any payment 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 against the wool,

the sheep, the mohair or the angora

goats thereof, or proceeds thereof, in

favor of the producer or any other

creditors except agencies of the U.S.

Government. The regulations governing

offsets and withholdings found at 7 CFR

part 1403 shall be applicable to this

part.

§ 1469.108 Appeals.

Any producer who is dissatisfied with

a determination made pursuant to this

part may make a request for

reconsideration or appeal of such

determination in accordance with the

appeal regulations set forth at 7 CFR

parts 11 and 780.

§ 1469.109 Misrepresentation.

(a) Whoever issues a false document

or otherwise acts in violation of the

provisions of this subpart so as to enable

a producer to obtain a payment to which

such producer is not entitled, shall

become liable to CCC for any payment

which CCC may have made in reliance

on such sales document or as a result of

such other action.

(b) The issuance of a false document

or the making of a false statement in an

application for payment or other

document, for the purpose of enabling

the producer to obtain a payment to

which such producer is not entitled,

may subject the person issuing such

document or making such statement to

liability under applicable Federal civil

and criminal statutes.

§ 1469.110 Maintaining records.

Producers making application for a

payment under this subpart must

maintain accurate records and accounts

that will document that they meet all

eligibility requirements specified in this

subpart. Such records and accounts

must be retained for 3 years after the

date of payment to the producer under

this subpart.

§ 1469.111 Estates, trust, 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 an otherwise

eligible producer of wool or mohair

shall be eligible for assistance under this

part only if such producer meets one of

the following requirements:

(1) The minor establishes that 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 has

executed the applicable program

documents; 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.

§ 1469.112 Death, incompetency, or

disappearance.

In the case of death, incompetency,

disappearance or dissolution of a wool

or mohair producer that is eligible to

receive benefits in accordance with this

part, such person or persons specified in

7 CFR part 707 may receive such

benefits.

§ 1469.113 Refunds; joint and several

liability.

(a) In the event there is a failure to

comply with any term, requirement, or

condition for payment arising under the

application or this part, and if any

refund of a payment to FSA shall

otherwise become due in connection

with the application or this part, all

payments made under this part to any

producer shall be refunded to FSA

together with interest as determined in

accordance with paragraph (c) of this

section and late payment charges as

provided in 7 CFR part 1403.

(b) All producers signing an

application for payment as having an

interest shall be jointly and severally

liable for any refund, including related

charges, that is determined to be due for

any reason under the terms and

conditions of the application or this

part.

(c) Interest shall be applicable to

refunds required of any producer under

this part if FSA determines that

payments or other assistance were

provided to a producer who was not

eligible for such assistance. Such

interest shall be charged at the rate of

interest that the United States Treasury

charges the Commodity Credit

Corporation (CCC) for funds, as of the

date FSA made benefits available. Such

interest shall accrue from the date of

65728 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Rules and Regulations

repayment or the date interest increases

as determined in accordance with

applicable regulations. FSA may waive

the accrual of interest if FSA determines

that the cause of the erroneous

determination was not due to any action

of the producer.

(d) Interest determined in accordance

with paragraph (c) of this section may

not be waived on refunds required of

the producer when there was no

intentional misaction on the part of the

producer, as determined by FSA.

(e) Late payment interest shall be

assessed on all refunds in accordance

with the provisions of, and subject to

the rates prescribed in, 7 CFR part 792.

(f) Producers must refund to FSA any

excess payments made by FSA with

respect to such application.

(g) In the event that a benefit under

this subpart was provided as the result

of erroneous information provided by

any producer, the benefit must be repaid

with any applicable interest.

Signed in Washington, D.C., on October 25,

2000.

Keith Kelly,

Executive Vice President, Commodity Credit

Corporation.

[FR Doc. 00–27794 Filed 10–27–00; 10:26

am]

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 94

[Docket No. 00–104–1]

Change in Disease Status of KwaZuluNatal Province in the Republic of

South Africa Because of Rinderpest

and Foot-and-Mouth Disease

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Interim rule and request for

comments.

SUMMARY: We are amending the

regulations governing the importation of

certain animals, meat, and other animal

products by removing KwaZulu-Natal, a

province in the Republic of South

Africa, from the list of regions

considered to be free of rinderpest and

foot-and-mouth disease. We are taking

this action because the existence of footand-mouth disease has been confirmed

there. The effect of this action is to

prohibit or restrict the importation of

any ruminant or swine and any fresh

(chilled or frozen) meat and other

products of ruminants or swine into the

United States from KwaZulu-Natal.

DATES: This interim rule was effective

September 12, 2000. We invite you to

comment on this docket. We will

consider all comments that we receive

by January 2, 2001.

ADDRESSES: Please send four copies of

your comment (an original and three

copies) to: Docket No. 00–104–1,

Regulatory Analysis and Development,

PPD, APHIS, Suite 3C03, 4700 River

Road, Unit 118, Riverdale, MD 20737–

1238. Please state that your comment

refers to Docket No. 00–104–1.

You may read any comments that we

receive on this docket in our reading

room. The reading room is located in

room 1141 of the USDA South Building,

14th Street and Independence Avenue,

SW., Washington, DC. Normal reading

room hours are 8 a.m. to 4:30 p.m.,

Monday through Friday, except

holidays. To be sure someone is there to

help you, please call (202) 690–2817

before coming.

APHIS documents published in the

Federal Register, and related

information, including the names of

organizations and individuals who have

commented on APHIS dockets, are

available on the Internet at http://

www.aphis.usda.gov/ppd/rad/

webrepor.html.

FOR FURTHER INFORMATION CONTACT: Dr.

Glen Garris, Supervisory Staff Officer,

Regionalization Evaluation Services

Staff, National Center for Import and

Export, VS, APHIS, 4700 River Road

Unit 38, Riverdale, MD 20737–1231;

(301) 734–4356.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR part 94

(referred to below as the regulations)

govern the importation of specified

animals and animal products into the

United States in order to prevent the

introduction of various animal diseases

including rinderpest, foot-and-mouth

disease (FMD), African swine fever, hog

cholera, and swine vesicular disease.

These are dangerous and destructive

communicable diseases of ruminants

and swine. Section 94.1 of the

regulations lists regions of the world

that are declared free of rinderpest or

free of both rinderpest and FMD.

Rinderpest or FMD exists in all other

regions of the world not listed. Section

94.11 of the regulations lists regions of

the world that have been declared to be

free of rinderpest and FMD, but are

subject to certain restrictions because of

their proximity to or trading

relationships with rinderpest-or FMDaffected regions.

Prior to the effective date of this

interim rule, the Republic of South

Africa, except the FMD-controlled area

that includes Kruger National Park, was

among the listed regions in §§ 94.1 and

94.11 considered to be free of rinderpest

and FMD. However, on September 12,

2000, a suspected outbreak of FMD was

detected in the South African province

of KwaZulu-Natal; on September 17,

2000, the Republic of South Africa’s

National Department of Agriculture

(National Department of Agriculture)

notified the Office International des

Epizooties (OIE) with clinical

confirmation of the FMD diagnosis.

Therefore, to protect the livestock of

the United States from FMD, we are

amending the regulations in § 94.1 by

removing the province of KwaZuluNatal from the list of regions considered

to be free of rinderpest and FMD. We are

also removing KwaZulu-Natal from the

list of regions in § 94.11 that are

considered to be free of these diseases,

but are subject to certain restrictions

because of their proximity to or trading

relationships with rinderpest-or FMDaffected regions. Other regions of the

Republic of South Africa, with the

exception of the FMD-controlled area

that includes Kruger National Park, will

remain on the list of regions considered

to be free of rinderpest and FMD. As a

result of this action, the importation

into the United States of any ruminant

or swine and any fresh (chilled or

frozen) meat and other products of

ruminants or swine that left KwaZuluNatal on or after September 12, 2000, is

prohibited or restricted. We are making

these amendments effective on

September 12, 2000, because that is the

day that FMD was initially detected in

KwaZulu-Natal.

Although we are removing the

province of KwaZulu-Natal from the list

of regions considered to be free of

rinderpest and FMD, we recognize that

the National Department of Agriculture

responded immediately to the detection

of the disease by imposing restrictions

on the movement of ruminants, swine,

and ruminant and swine products from

the affected area and initiating measures

to eradicate the disease. At the time of

publication of this interim rule, it

appears that the outbreak is well

controlled. Because of the National

Department of Agriculture’s efforts to

ensure that FMD does not spread

beyond the province of KwaZulu-Natal,

we intend to reassess the situation in

accordance with the standards of the

OIE. As part of that reassessment

process, we will consider all comments

received on this interim rule. This

future reassessment will determine

whether it is necessary to continue to

prohibit or restrict the importation of

ruminants or swine and any fresh