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[Federal Register Volume 78, Number 22 (Friday, February 1, 2013)]
[Notices]
[Pages 7387-7389]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02218]

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Continuation of Farm Service Agency 2008 Farm Bill Programs

AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The American Taxpayer Relief Act of 2012 (ATRA) extended the 
authorization of the Food, Conservation, and Energy Act of 2008 (the 
2008 Farm Bill) through the 2013 crop year, fiscal year (FY), or 
calendar year, as applicable, for certain Commodity Credit Corporation 
(CCC) commodity

[[Page 7388]]

and conservation programs administered by the Farm Service Agency 
(FSA). This notice provides information about which programs have been 
extended for an additional year, which programs producers will need to 
enroll in through applications and contracts, and the dates for the 
submission of the required applications. The extended programs will be 
administered through their current terms and procedures for the 
applicable period of extension, except as provided in this notice.

DATES: Effective Date: February 1, 2013.

FOR FURTHER INFORMATION CONTACT: Craig Trimm; telephone: (202) 720-
3175. Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.) should contact 
the USDA Target Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: ATRA (Pub. L. 112-240, January 2, 2013) 
authorized the continuation of certain CCC and FSA payment limitation 
and income eligibility requirements, commodity programs, and 
conservation programs previously authorized or amended in the 2008 Farm 
Bill (Pub. L. 110-246). Certain other authorities were not extended. 
Program authorizations and mandatory funding authorizations that were 
not extended are noted below. Extended programs (including mandatory 
funding) include the Direct and Counter-Cyclical Payment Program (DCP), 
Average Crop Revenue Election Program (ACRE), Milk Income Loss Contract 
Program (MILC), Dairy Product Price Support Program (DPPSP), Dairy 
Indemnity Payment Program (DIPP), Marketing Assistance Loans (MAL), 
Loan Deficiency Payments (LDP), Conservation Reserve Program (CRP), 
Upland Cotton and Extra Long Staple Cotton Programs, and Sugar Program.
    Generally, these programs will continue to operate in 2013 as they 
did in 2012, with some minor modifications noted briefly below. ATRA 
authorized most CCC programs for the 2013 crop year, but MILC was 
authorized for FY 2013, and DPPSP was authorized for calendar year 
2013.
    FSA is updating software, forms, and handbooks for the 2013 
continuation of the programs. FSA is updating program Fact Sheets and 
will conduct extensive outreach to ensure that producers are aware of 
sign-up periods and application requirements. Details for each program 
are being announced in news releases to facilitate planning for the 
2013 growing season.

DCP and ACRE

    The 2013 DCP provisions are unchanged from 2012. DCP provides two 
types of payments to eligible producers on enrolled farms: direct 
payments and counter-cyclical payments. Both are calculated using 
historical base acres and payment yields established for the farm. To 
participate in and receive DCP payments, eligible producers must enroll 
through the annual sign-up. Signup for the 2013 crop year will begin on 
February 19, 2013, and will end on August 2, 2013. Direct payments will 
be issued to eligible producers in October 2013. As the 2008 Farm Bill 
did not authorize advance direct payments for the 2012 crop year, such 
payments are also not authorized for the 2013 crop year. Counter-
cyclical payments for the 2013 crop will be issued to eligible 
producers beginning in October 2014, if effective prices are less than 
target prices. As with previous years, if effective prices are greater 
than specified target prices during the 2013 marketing year, there will 
be no counter-cyclical payments.
    The 2013 ACRE provisions are mostly unchanged from 2012. ACRE is an 
alternative program to DCP that provides payments only if both the 
State and Farm triggers are met. The State ACRE Guarantee must exceed 
the Actual State Revenue and the Farm ACRE Guarantee must exceed the 
Actual Farm Revenue. Producers who elect to enroll a farm in ACRE must 
agree to:
    (1) Forgo counter-cyclical payments,
    (2) A 20-percent reduction in their direct payments, and
    (3) A 30-percent reduction in the MAL rates for all commodities 
produced on the farm that are eligible for ACRE payments.
    ACRE payments are tied to current plantings on the farm, in 
contrast to countercyclical payments, which are tied to the farm's base 
acres. As specified in the 2008 Farm Bill and in the current 
regulations for ACRE, a producer who elected to participate in ACRE 
could not participate in DCP from the year in which he elected to 
participate in ACRE through 2012. Because the provision imposing 
irrevocability of such election expired on September 30, 2012, all 
eligible producers may choose to enroll in either DCP or ACRE for the 
2013 crop year. This means that producers who were enrolled in ACRE in 
2012 may elect to enroll in DCP in 2013 or may re-enroll in ACRE in 
2013 (and vice versa), subject to eligibility requirements. To 
participate and receive ACRE payments, eligible producers must sign up 
to enroll in ACRE for the 2013 crop year. ACRE signup will begin on 
February 19, 2013 (at the same time that DCP signup begins), and will 
end on June 3, 2013.

MILC

    MILC was extended by ATRA through September 30, 2013, with minor 
modifications. MILC compensates enrolled dairy producers when the 
Boston Class I milk price falls below $16.94 per hundredweight (cwt), 
as adjusted by the dairy feed ration adjustment specified in both the 
2008 Farm Bill and in the current regulations for MILC, 7 CFR Part 
1430, ``Dairy Products.'' All producers' MILC contracts are 
automatically extended to September 30, 2013. Producers therefore do 
not need to re-enroll in MILC. The production start month previously 
selected by an operation is applicable for FY 2013, unless a producer 
requests a change as discussed below.
    September 2012 was the last eligible month for MILC payments under 
the 2008 Farm Bill. ATRA increased the MILC payment formula for 
September 2012, resulting in a payment rate of about $0.59 per 
hundredweight for that month. Prior to ATRA, the applicable rate as of 
September 1, 2012 would have been zero under the formula in the 2008 
Farm Bill. ATRA reduces the payment rate beginning September 1, 2013. 
The September 2012 payment will automatically be disbursed in the near 
future to eligible producers who have not exceeded their maximum 
eligible production quantity of 2.985 million pounds for FY 2012. 
Producers currently enrolled in MILC are also eligible for about a 
$0.02 per hundredweight payment for October 2012, if that month is 
selected as their production start month for FY 2013. The payment rate 
determined for November 2012 is zero. Payments for subsequent months 
will be determined as data become available.
    Dairy operations may select a start month for FY 2013 other than 
October 2012 (the start of FY 2013). Producers will be able to select 
any month in FY 2013 to begin receiving payments. During the period 
(referred to as the ``relief period'') beginning February 1, 2013, 
through the close of business on February 28, 2013, producers with 
existing MILC contracts may make production start month selection 
changes for FY 2013 by completing and submitting form CCC-580M to FSA. 
For producers with new dairy operations that began operation before 
February 1, 2013, FSA will accept applications (form CCC-580) beginning 
February 1, 2013, and ending September 30, 2013. For eligibility 
information and other

[[Page 7389]]

requirements, producers should contact their local FSA office. During 
the relief period, the producer may select any month in FY 2013 
(beginning October 2012) as the production start month; start month 
selection provisions specified in 7 CFR 1430.205, ``Selection of 
Starting Month'' do not apply. After the relief period, beginning March 
1, 2013, all production start month changes for new and existing MILC 
participants must be made according to normal start month selection 
provisions as specified in 7 CFR 1430.205.

DPPSP

    DPPSP is extended through December 31, 2013. DPPSP supports the 
price of cheddar cheese, butter, and nonfat dry milk by providing a 
standing offer from CCC to purchase those products at specific support 
prices. The support prices specified in the 2008 Farm Bill are the 
prices for 2013.

DIPP

    DIPP is extended through September 30, 2013. Through DIPP, FSA 
issues payments to dairy producers for losses incurred because they 
were required to remove their milk production from commercial markets 
due to the presence of certain chemical or toxic residue.

MAL and LDP

    The MAL program and LDP program were extended by ATRA for the 2013 
crop year. The terms and conditions of such programs' provisions are 
unchanged from 2012. MALs for loan commodities allow producers to 
receive 9-month non-recourse loans from CCC. MALs provide an influx of 
cash when market prices are typically at harvest-time lows, allowing 
producers to delay the sale of the commodity until more favorable 
market conditions emerge. In lieu of securing a MAL, producers may 
elect to receive an LDP.

CRP

    ATRA maintains the CRP enrollment cap at the 32 million acre level 
for FY 2013, unchanged from the 2008 Farm Bill. Current CRP enrollment 
is 27 million acres. In addition to periodic general signups, producers 
may enroll environmentally sensitive land through CRP's continuous 
signups. Continuous signup includes land enrolled through the 
Conservation Reserve Enhancement Program (CREP), which are state and 
federal partnerships that provide payments for installing specific 
conservation practices at specific locations. The dates producers may 
begin entering into new CRP contracts will be announced through the 
normal process of news releases.

Sugar Program

    The Sugar Program, including the related Feedstock Flexibility 
Program, is extended for the 2013 crop year with no changes. The Sugar 
Program will continue to operate as specified in the 2008 Farm Bill and 
in the current regulations.

Upland Cotton and ELS Cotton

    The Upland Cotton and ELS Cotton Programs are extended through the 
2013 crop year, with no changes. The 2008 Farm Bill specified that the 
special import quota for upland cotton and the Competitiveness Program 
for ELS Cotton were for a period through July 31, 2013; these programs 
are extended through the 2013 crop year, which ends on July 31, 2014. 
The Upland Cotton and ELS Cotton Programs will continue to operate as 
specified in the 2008 Farm Bill and in the current regulations.

Other Payment Eligibility Requirements Extended

    ATRA extended the provisions of the 2008 Farm Bill that concern 
income eligibility and payment limitation.
    The adjusted gross income (AGI) requirements for 2013 are unchanged 
from 2012 requirements. The average AGI provisions apply to most of the 
programs administered by FSA and NRCS. Before producers can receive 
payments for 2013 programs with AGI provisions, they must file the 
proper forms to certify that their incomes are below specified levels. 
The Internal Revenue Service also requires written consent from the 
individual or legal entity for it to verify the individual or legal 
entity's AGI and to provide such verification to the U.S. Department of 
Agriculture. To provide the annual AGI certification and written 
consent, participants must complete Form CCC-933, ``Average Adjusted 
Gross Income (AGI) Certification and Consent to Disclosure of Tax 
Information'' for 2013. Form CCC-933 is available at local FSA and NRCS 
offices or online through the FSA Web site.
    Participants in Federal farm programs that have farm land 
identified as highly erodible or as a wetland must continue to comply 
with certain land and environmental conservation requirements for 
payment eligibility purposes in 2013. The regulations in 7 CFR part 12, 
``Highly Erodible Land and Wetland Conservation,'' and 7 CFR part 1400, 
``Payment Eligibility and Payment Limitation for 2009 and Subsequent 
Crop, Program, or Fiscal Years,'' apply to all FSA and CCC programs in 
2013.

Programs That Are Authorized but Have Not Been Funded

    Some programs, including certain disaster assistance programs, were 
reauthorized but are subject entirely to appropriation in each of 
fiscal years 2012 and 2013. As a result, those programs can be operated 
only if FY 2013 funds are appropriated for them. Such programs include 
the Biomass Crop Assistance Program (BCAP); Voluntary Public Access--
Habitat Incentive Program (VPA-HIP); Livestock Indemnity Program (LIP); 
Livestock Forage Disaster Assistance Program (LFP); Emergency 
Assistance for Livestock, Honeybees, and Farm-Raised Fish Program 
(ELAP); and Tree Assistance Program (TAP).

Expired Programs

    Some programs in the 2008 Farm Bill were not extended by ATRA. 
There is no authority provided by ATRA for the Supplemental Revenue 
Assistance Payments Program (SURE) or for the Market Loss Assistance 
for Asparagus Producers Program (ALAP).

Environmental Review

    FSA has determined that the authorization to extend certain 
provisions of the 2008 Farm Bill through 2013 as described in this 
notice would not constitute a major Federal action significantly 
affecting the quality of the human environment, as no new program 
provisions or implementation requirements were established under ATRA. 
Therefore, in accordance with the 7 CFR Part 799, Environmental Quality 
and Related Environmental Concerns--Compliance with the National 
Environmental Policy Act, implementing the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), no environmental 
assessment or environmental impact statement will be prepared.

    Signed at Washington, DC, on January 29, 2013.
Juan M. Garcia,
Executive Vice President, Commodity Credit Corporation and 
Administrator, Farm Service Agency.
[FR Doc. 2013-02218 Filed 1-31-13; 8:45 am]
BILLING CODE 3410-05-P
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