Vol. 79 Monday, 

No. 71 April 14, 2014 

Part VI 

Department of Agriculture 

Commodity Credit Corporation 

7 CFR Parts 1400 and 1416 

Supplemental Agricultural Disaster Assistance Programs, Payment 

Limitations, and Payment Eligibility; Final Rule 

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21086 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Parts 1400 and 1416 

RIN 0560–AI21 

Supplemental Agricultural Disaster 

Assistance Programs, Payment 

Limitations, and Payment Eligibility 

AGENCY: Commodity Credit Corporation, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements specific 

requirements for the Emergency 

Assistance for Livestock, Honeybees, 

and Farm-Raised Fish Program (ELAP), 

Livestock Forage Disaster Program 

(LFP), Livestock Indemnity Program 

(LIP), Tree Assistance Program (TAP), 

and general provisions for 

Supplemental Agricultural Disaster 

Assistance Programs authorized by the 

Agricultural Act of 2014 (2014 Farm 

Bill). Although there were similar 

disaster programs under the 2008 Farm 

Bill, the authority for those programs 

has expired. The 2014 Farm Bill 

reauthorizes these programs and they 

are similar to the 2008 programs, 

however, there are distinct changes in 

payment limits, eligible losses, and 

eligible causes of loss from prior 

programs. Eligible ELAP, LFP, LIP, and 

TAP losses must have occurred on or 

after October 1, 2011 to be eligible for 

payment. This rule specifies how ELAP, 

LFP, LIP, and TAP payments are 

calculated, what losses are eligible, and 

when producers may apply for 

payments. Additionally, this final rule 

implements changes required by the 

2014 Farm Bill by amending the 

regulations that specify maximum 

income limits (payment eligibility) and 

maximum benefit amounts (payment 

limits) for participants in programs 

funded by the Commodity Credit 

Corporation (CCC) and some FSA 

programs. The intended effect of the 

eligibility requirements is to ensure that 

program payments and benefits are 

issued only to those persons and legal 

entities that meet the income eligibility 

requirements as specified in the 2014 

Farm Bill, and that program participants 

do not receive any program payments 

above the maximum allowable payment 

amount. The payment limits and 

average Adjusted Gross Income (AGI) 

limits in this final rule apply to 2014 

and subsequent crop, program, or fiscal 

year benefits, and to benefits for 

programs that were authorized by the 

2014 Farm Bill for retroactive 2012 or 

2013 crop, program, or fiscal year 

benefits. 

DATES: Effective Date: April 14, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

general provisions for Supplemental 

Agricultural Disaster Assistance 

Programs, LFP, and LIP: Scotty Abbott; 

telephone (202) 720–7997. For ELAP: 

Amy Mitchell; telephone (202) 720– 

8954. For TAP: Steve Peterson: 

telephone: (202) 720–7641. For Payment 

Limits and Payment Eligibility: James 

Baxa, telephone: (202) 720–4189. 

SUPPLEMENTARY INFORMATION: 

Background 

Disaster Assistance Programs, Payment 

Limits, and Payment Eligibility 

The disaster assistance programs, 

payment limits, and payment eligibility 

provisions in this rule are CCC programs 

and provisions; the Farm Service 

Agency (FSA) administers the programs 

and provisions for CCC. 

Supplemental Agricultural Disaster 

Assistance Programs 

This final rule implements the general 

eligibility provisions and specific 

requirements for supplemental 

agricultural disaster assistance programs 

authorized by Section 1501 of the 2014 

Farm Bill (Pub. L. 113–79). Section 1501 

authorizes the Secretary of Agriculture 

to assist producers through four 

different disaster programs: 

• ELAP, 

• LFP, 

• LIP (referred to as Livestock 

Indemnity Payments in the 2014 Farm 

Bill), and 

• TAP. 

ELAP provides emergency assistance 

to eligible producers of livestock, 

honeybees, and farm-raised fish that 

have losses due to adverse weather, or 

other conditions, including losses due 

to blizzards, disease (including cattle 

tick fever), water shortages, and 

wildfires, as determined by the 

Secretary. ELAP assistance is for losses 

not covered under LFP or LIP. 

LFP provides payments to eligible 

livestock producers that have suffered 

livestock grazing losses due to 

qualifying drought or fire. For drought, 

the losses must have occurred due to a 

qualifying drought during the normal 

grazing period for the county on land 

that is native or improved pastureland 

with permanent vegetative cover or is 

planted to a crop planted specifically for 

grazing covered livestock. LFP also 

provides payments to eligible livestock 

producers that have suffered grazing 

losses on rangeland managed by a 

Federal agency if the eligible livestock 

producer is prohibited by the Federal 

agency from grazing the normally 

permitted livestock on the managed 

rangeland due to a qualifying fire. 

LIP provides disaster assistance to 

livestock owners and contract growers 

that had losses due to livestock deaths 

in excess of normal mortality due to 

adverse weather during the calendar 

year, the 2014 Farm Bill includes 

hurricanes, floods, blizzards, disease, 

wildfires, extreme heat, and extreme 

cold as ‘‘weather.’’ To use the terms in 

the normal sense, in this rule, we will 

refer to ‘‘weather or other conditions’’ 

and these will include the same list as 

the 2014 Farm Bill includes as 

‘‘weather.’’ LIP also provides assistance 

to livestock owners and contract 

growers that had losses due to livestock 

deaths in excess of normal mortality due 

to attacks by animals reintroduced into 

the wild by the Federal Government or 

protected by Federal law, including 

wolves and avian predators. 

TAP provides disaster assistance to 

eligible orchardists and nursery tree 

growers to replant or rehabilitate trees, 

bushes, and vines that were lost due to 

natural disaster. Orchardists and 

nursery tree growers who commercially 

raise trees, bushes, and vines for which 

there were mortality losses in excess of 

15 percent, after adjustment for normal 

mortality, are eligible for TAP 

payments. 

With the authorization provided in 

the 2014 Farm Bill, these disaster 

assistance programs are permanent or 

‘‘standing’’ programs; that is, they are 

continuing programs not subject to 

annual appropriations. ELAP, LFP, LIP, 

and TAP were previously authorized 

under the 2008 Farm Bill (the Food, 

Conservation, and Energy Act of 2008, 

Pub. L. 110–246), however, these 

programs expired. The 2014 Farm Bill 

authorizes ELAP, LFP, LIP, and TAP 

disaster programs and while they are 

similar to those programs authorized by 

the 2008 Farm Bill, the newly 

authorized programs have minor 

changes from those previously 

authorized programs. In addition, the 

2014 Farm Bill authorizes retroactive 

payments under these programs for 

losses in FY 2012 and 2013. The 2014 

Farm Bill did not reauthorize the 

Supplemental Revenue Assistance 

Payments Program (SURE), which was 

previously authorized by the 2008 Farm 

Bill and has expired. 

Under the 2008 Farm Bill, payments 

for ELAP, LFP, LIP, and TAP were made 

from the funds of the Agricultural 

Disaster Relief Trust Fund established 

under section 902 of the Trade Act of 

1974. Under the 2014 Farm Bill, 

payments will be made from CCC funds. 

Due to this change in funding source, 

this rule moves the regulations for the 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21087 

four disaster assistance programs out of 

7 CFR chapter VII, which covers FSA 

programs, and into 7 CFR chapter XIV, 

which covers CCC programs. The main 

scope of these programs is, however, 

unchanged, and that is why the 

regulations that were located 7 CFR 

chapter VII for the disaster programs 

previously authorized by the 2008 Farm 

Bill are being used as the basis for the 

regulations located in 7 CFR chapter 

XIV, subject to changes made by the 

2014 Farm Bill. 

Terms Used in This Rule 

The terms used in the existing CFR for 

these programs have not changed. This 

final rule uses the words ‘‘producers’’ 

and ‘‘participants’’ in substantive ways. 

‘‘Producers’’ may apply for ELAP, LFP, 

LIP, and TAP. ‘‘Participants’’ are those 

‘‘producers’’ who apply for payments 

under the programs and who must meet 

the requirements to be eligible to receive 

ELAP, LFP, LIP, and TAP payments. 

Section 1501 of the 2014 Farm Bill 

uses the words ‘‘assistance,’’ ‘‘benefits,’’ 

‘‘compensation,’’ ‘‘relief,’’ and 

‘‘payments.’’ The payment for the ELAP, 

LFP, LIP, and TAP assistance, benefit, 

relief, or compensation for eligible 

producers is calculated as specified in 

this rule. 

For LFP, section 1501 of the 2014 

Farm Bill and this rule include the 

terms ‘‘eligible livestock producer,’’ 

‘‘covered livestock,’’ and ‘‘qualifying 

drought or fire.’’ This rule also uses the 

terms ‘‘qualifying grazing loss’’ and 

‘‘qualifying grazing land.’’ For TAP, 

section 1501 of the 2014 Farm Bill and 

this rule include the terms ‘‘eligible 

orchardist’’ and ‘‘nursery tree grower.’’ 

These terms have not changed. 

General Eligibility Requirements for 

Disaster Assistance Programs 

As specified in the 2014 Farm Bill 

and in this rule, the total amount of 

payments that a person or legal entity 

can receive, directly or indirectly, in 

any crop year cannot exceed $125,000 

for LIP, LFP, and ELAP; TAP has a 

separate payment limit of $125,000 per 

person or legal entity for any crop year. 

Under the 2008 Farm Bill, payments 

under LIP, LFP, ELAP, and SURE were 

limited to $100,000 total per person or 

legal entity per year and TAP benefits 

were limited to $100,000 per person or 

legal entity per year. 

The 2014 Farm Bill and this rule 

specify that a person or legal entity is 

ineligible for payments if the person’s or 

legal entity’s average AGI for the 

applicable benefit year is in excess of 

$900,000. This single AGI limit replaces 

the multiple limits for farm and nonfarm income, and the separate limit for 

conservation programs, that were 

required by the 2008 Farm Bill. 

Therefore this rule removes the 

references to farm versus non farm 

income, and the separate limit for 

conservation programs, from the CFR. 

Under the 2008 Farm Bill, the average 

AGI limit for payment eligibility was 

$500,000 in non-farm income and 

$750,000 in farm income, with a 

separate limit of $1 million in nonfarm 

income for conservation program 

eligibility. 

This rule revises 7 CFR part 1400 to 

implement the payment limit and AGI 

regulations specified in the 2014 Farm 

Bill. (More details on the payment limit 

and AGI limit changes that apply 

generally to all CCC- funded programs 

are provided later in this document.) 

Previous Risk Management Purchase 

Requirement 

The 2014 Farm Bill removes the risk 

management purchase requirement for 

all the disaster assistance programs. The 

2008 Farm Bill required that producers 

obtain a Risk Management Agency 

(RMA) policy or plan of insurance or 

Noninsured Crop Disaster Assistance 

Program (NAP) coverage for all crops on 

the producer’s farm for which the 

producer had an interest as a condition 

of payment eligibility for ELAP, LFP, 

and TAP. For losses occurring on or 

after October 1, 2011, participants are 

not required to have an RMA policy or 

plan of insurance or NAP coverage for 

any of their crops to be eligible for 

benefits under ELAP, LFP, LIP, or TAP. 

Other General Provisions That Apply to 

Disaster Assistance Programs 

This rule moves the existing 

regulations for the general provisions for 

disaster programs authorized by the 

2008 Farm Bill in 7 CFR part 760, 

subpart B, to 7 CFR part 1416, subpart 

A, and amends those regulations as 

required by the 2014 Farm Bill. This 

rule changes some of the documentation 

requirements needed to support losses. 

These discretionary changes recognize 

the difficulty that producers may face 

and the need for flexibility regarding 

documentation, while at the same time 

recognizing FSA’s need to ensure that 

participants meet all eligibility 

requirements specified in the 2014 Farm 

Bill. For losses on or after October 1, 

2011, this rule clarifies that, because 

FSA must monitor both payment 

limitation and AGI compliance, as well 

as specific program eligibility 

requirements, participants must provide 

or have on file a farm operating plan for 

the applicable year to be eligible for 

payments under ELAP, LFP, LIP, or 

TAP. 

This rule does not change the 

requirement that participants receiving 

ELAP, LFP, LIP, and TAP payments 

must keep records and documentation 

that support the request for payment 

under these programs for 3 years 

following the end of the year in which 

the application for payment was filed. 

That recordkeeping requirement is 

consistent with other FSA rules and 

programs, as well as with previous 

similar disaster assistance programs. 

This final rule changes the requirements 

for documentation of losses under 

ELAP, LFP, and LIP, which are 

discussed in more detail in this 

document under the supplementary 

information for each of those programs. 

For example, for ELAP, if verifiable or 

reliable records are not available or 

provided, FSA may now accept 

producer’s certification of eligible losses 

if similar producers have comparable 

eligible losses, as determined by FSA. 

As specified in this rule in 7 CFR part 

1416 subpart A, other restrictions and 

compliance requirements that applied 

under the 2008 Farm Bill will continue 

to apply to ELAP, LFP, LIP, and TAP 

under the 2014 Farm Bill including, but 

not limited to, those pertaining to highly 

erodible land and wetland conservation 

provisions specified in 7 CFR part 12. 

These are not new requirements. 

All producers applying for benefits 

under ELAP, LFP, LIP, and TAP must 

meet the eligibility requirements 

provided in this rule; false certifications 

can carry serious consequences (for 

example, a reduction or denial of 

benefits). FSA will validate applications 

with random spot-checks. 

Specific Provisions for ELAP 

This rule moves the existing 

regulations for ELAP in 7 CFR part 760, 

subpart C, to 7 CFR part 1416, subpart 

B, and amends those regulations as 

required by the 2014 Farm Bill. 

Section 1501 of the 2014 Farm Bill 

directs the Secretary to use up to $20 

million per fiscal year from CCC funds 

to provide emergency relief to eligible 

producers of livestock, honeybees, and 

farm-raised fish. The 2008 Farm Bill 

provided $50 million per year for ELAP. 

ELAP is intended to provide financial 

assistance to eligible producers to assist 

in the reduction of losses due to disease 

(including cattle tick fever), adverse 

weather, such as blizzards, or other 

conditions, such as wildfires as 

determined by the Secretary. The 2014 

Farm Bill added cattle tick fever 

eligibility. ELAP covers losses that are 

not covered under LFP or LIP. 

Determination of ELAP payment 

eligibility will be based on actual losses 

as determined by the Deputy 

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21088 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

Administrator for Farm Programs 

(Deputy Administrator) due to eligible 

adverse weather or other eligible loss 

conditions. 

Funding for ELAP is authorized by 

fiscal year; therefore, the program year 

is based on the fiscal year. This is a 

change from the previous ELAP program 

year, which was based on a calendar 

year. 

Payments will be made after the signup deadline for a program year once all 

applications have been received. 

Benefits are subject to the availability of 

funds and may be prorated if the total 

amount of benefits applied for exceeds 

$20 million for a program year. If the 

total amount requested by all eligible 

producers for that program year would 

result in less than $20 million paid 

based on the applicable minimum 

payment rate for each category of losses, 

as specified in these regulations, then 

the payment rate may also be increased 

to a maximum of 80 percent of costs, as 

determined by the Deputy 

Administrator. Since ELAP was initially 

authorized by the 2008 Farm Bill, ELAP 

claims have never exceeded the annual 

funding limit. 

Eligibility Requirements for ELAP 

Under this rule, ELAP will continue 

to provide assistance for losses due to 

disease, adverse weather, or other 

conditions, such as blizzards and 

wildfires as determined by the 

Secretary. In general, adverse weather 

includes, but is not limited to, 

hurricanes, floods, blizzards, wildfires, 

extreme heat, and extreme cold. This 

rule clarifies that ‘‘eligible adverse 

weather’’ means a damaging weather 

event that is not expected to occur 

during the loss period which results in 

losses. In general, adverse weather or 

other qualifying conditions, as 

determined by the Deputy 

Administrator, are conditions that cause 

damage that result in a financial loss to 

the producer or require the producer to 

incur additional expenses. ELAP is 

intended to provide broad coverage for 

losses not covered by other programs. 

As under the previous ELAP provisions, 

additional eligible adverse weather and 

other qualifying loss conditions will be 

specified, as needed, by the Deputy 

Administrator. 

Under the previous ELAP provisions, 

only bait and game fish were considered 

eligible farm-raised fish for death losses. 

However, this rule provides the Deputy 

Administrator discretion to include 

other aquatic species as eligible for 

death losses. 

Under this rule, ELAP continues to 

provide assistance for livestock grazing, 

feed, and death losses; honeybee feed, 

colony, and hive losses; and fish feed 

and death losses. For livestock feed 

losses, this rule clarifies that to be 

eligible for ELAP, the cost incurred for 

providing or transporting livestock feed 

to eligible livestock due to an eligible 

adverse weather or eligible loss 

condition must occur in combination 

with an eligible loss of purchased forage 

or feedstuffs, of mechanically harvested 

forage or feedstuffs, or from the 

additional cost of purchasing additional 

livestock feed, above normal quantities, 

required to maintain the eligible 

livestock during an eligible adverse 

weather or eligible loss condition, until 

additional livestock feed becomes 

available. 

The 2014 Farm Bill requires that 

ELAP funds ‘‘be used to reduce losses 

covered by feed or water shortages . . .’’ 

Therefore, beginning with the 2014 

program year, the costs of providing and 

transporting water due to an eligible 

drought will also be covered under 

ELAP. Although in the past some 

producers who have incurred expenses 

for transporting water have received 

compensation from the Emergency 

Conservation Program (ECP), this 

discretionary change to cover these 

costs under ELAP will allow FSA to 

provide more effective and timely 

assistance for producers suffering 

eligible losses for the additional costs of 

transporting water. Participants may not 

receive funds from both ELAP and ECP 

for the same costs. Only the additional 

costs associated with transporting the 

water are eligible for payment; the cost 

of the water itself is not covered under 

ELAP. The producer must have had 

adequate livestock watering systems or 

facilities prior to the eligible adverse 

weather or loss condition and normally 

not need to transport water to the 

grazing land. In addition, the livestock 

must be on eligible grazing lands 

physically located in the county where 

the eligible adverse weather or eligible 

loss condition occurred. 

While losses due to disease were 

already covered under the previous 

ELAP regulations, the 2014 Farm Bill 

specifically adds cattle tick fever as a 

covered disease. As a result, ELAP will 

cover losses due to the cost of gathering 

cattle for treatment of cattle tick fever 

occurring on or after October 1, 2011. 

Applying for ELAP Payment 

As under the previous ELAP 

regulations, a producer must file both a 

notice for loss and an application for 

payment to obtain ELAP benefits. For 

losses in program years 2012 and 2013, 

producers must file a notice of loss for 

each program year no later than August 

1, 2014. For losses that occur in program 

year 2014, producers must file a notice 

of loss no later than November 1, 2014. 

For losses that occur in program year 

2015 and subsequently, the participant 

must provide a notice of loss within the 

earlier of 30 calendar days of when the 

loss occurred or November 1 following 

the program year for which benefits are 

being requested. The program year, as 

noted earlier, is now the fiscal year. 

This means, for example, the deadline 

for the 2015 program year would be 

November 1, 2015. 

For the 2012 and 2013 program years, 

producers must file an application for 

payment for each program year no later 

than August 1, 2014. For 2014 and 

subsequent program years, producers 

must file an application for payment no 

later than November 1 of the year 

following the program year for which 

benefits are being requested. The 

application for payment may be filed at 

the same time as the notice of loss, but 

does not have to be filed at the same 

time. 

As under the previous ELAP 

provisions for grazing losses, a 

participant with grazing losses that 

occur during the 2012, 2013, or 2014 

program years must certify to the 

number of days that grazing was lost 

due to an eligible adverse weather or 

loss condition. However, a participant 

with grazing losses that occur in 2015 

and subsequent program years must also 

provide acceptable verifiable or reliable 

records that additional feed was fed to 

sustain livestock during an eligible 

adverse weather or eligible loss 

condition, or the livestock were 

removed from the eligible grazing land 

where the grazing loss occurred. If 

verifiable or reliable records of 

additional feed or livestock removal are 

not available or provided, FSA may 

accept the producer’s certification of 

grazing losses if similar producers have 

comparable grazing losses, as 

determined by FSA; for 2012, 2013 and 

2014 program years, in addition to the 

producer certification, the producer 

must provide the normally required 

documentation for proof of eligibility, 

which includes, at a minimum, a farm 

operating plan, proof of the adverse 

weather event, an AD–1026, and an 

acreage report. If the producer certifies 

grazing losses without providing 

verifiable or reliable records of having 

moved the livestock or fed the livestock 

additional feed, then the County 

committee will review and act on the 

certification. The provision to accept a 

producer certification if verifiable or 

reliable records are not available is new. 

A similar provision previously applied 

to documentation losses for eligible 

livestock feed, honeybee colony, 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21089 

honeybee hive, honeybee feed, farmraised fish feed and farm-raised fish 

death losses. As under the previous 

ELAP regulation, participants with 

eligible livestock death losses must 

provide proof of death and livestock 

inventory, as required under the LIP. 

ELAP Payment Calculations 

This rule increases the payment rate 

for honeybee colony and hive losses, 

fish deaths, and livestock deaths. The 

payment rate is a discretionary 

provision that is not specified in the 

2014 Farm Bill. Under the provisions 

implementing the 2008 Farm Bill, ELAP 

payments were calculated using a 

payment rate of 60 percent. Under this 

rule, the payment rate may vary, and 

will be a minimum of 60 percent for 

livestock, fish, and honeybee feed 

losses, and 75 percent for honeybee 

colony and hive losses, fish deaths, and 

livestock deaths. The payment rate may 

be increased, as determined by the 

Deputy Administrator, to provide 

additional assistance to producers if 

total requests for payments in a program 

year are less than $20 million, however, 

the cap for the payment rate will be 80 

percent (maximum). The payment rate 

will be adjusted as needed based on the 

total requests for payments and other 

factors. In some years, the payment rate 

may be decreased and in other years, the 

payment rate may be increased. For 

socially disadvantaged, limited 

resource, and beginning farmers, the 

payment rate will be 90 percent for all 

losses under ELAP, independent of 

funding constraints; this is a 

discretionary change, which allows CCC 

to provide additional assistance to 

producers when funding is available. If 

approval of all eligible applications in a 

program year would result in 

expenditures in excess of the amount 

available for that program year, FSA 

will prorate the available funds by a 

national factor to reduce the total 

expected payments to the amount 

available for the program year. As noted 

earlier, the funding level cap under the 

2014 Farm Bill is $20 million per 

program (fiscal) year. Since ELAP was 

initially authorized by the 2008 Farm 

Bill, ELAP payments have never 

exceeded the annual funding limit. 

This rule does not change the 

payment calculation for other types of 

losses previously covered under ELAP. 

For livestock feed losses, ELAP 

payments will continue to be based on 

producers’ actual costs. This rule also 

does not change the calculation for 

payments due to grazing losses, but it 

does increase the maximum number of 

days for which payment may be 

received from 90 days to 150 days in the 

case of grazing losses not caused by 

wildfires on non-Federal land and for 

livestock feed losses. This change is not 

required by the Farm Bill; it is a 

discretionary change to make grazing 

loss benefits consistent between ELAP 

and LFP. 

For costs associated with transporting 

water, ELAP payments will be based on 

the lesser of the total value of the cost 

to transport water for 150 days based on 

the daily water requirements of the 

eligible livestock, or on the total value 

of the cost to transport the water to 

eligible livestock for the program year 

based on the actual number of gallons 

transported by the producer in the 

program year. To determine the daily 

water requirements of eligible livestock, 

the number of eligible livestock will be 

converted to an animal unit basis and 

multiplied by the gallons of water 

required per animal unit for 

maintenance for one day, as determined 

by the Deputy Administrator. Both 

calculations will determine the value 

using the national average price per 

gallon to transport water adjusted, if 

appropriate, for local or regional 

conditions rather than the actual costs 

paid by a producer. The national 

average price per gallon will be 

determined by the Deputy 

Administrator. The default rate, as 

specified in this rule, is $0.04 (4 cents) 

per gallon. 

ELAP payments for losses due to the 

costs of gathering cattle for treatment 

due to cattle tick fever will be calculated 

based upon the actual number of 

livestock that receive treatment times 

the average cost per head to gather the 

cattle, as determined by the Deputy 

Administrator, subject to the payment 

rate. The number of animals and 

treatments reported by a producer will 

be subject to verification based on 

treatment records provided to FSA by 

the Animal and Plant Health Inspection 

Service (APHIS). 

This rule changes the payment 

calculation for eligible farm-raised fish 

death losses to take into account normal 

mortality of fish during the program 

year, based on a normal mortality rate 

established by FSA. Fish death losses 

due to normal mortality are not eligible 

for fish death loss benefits. 

While some payment rates have been 

adjusted, this rule does not change how 

payments are calculated for payments 

due to livestock deaths, honeybee 

colonies, and honeybee hives. 

Specific Provisions for LFP 

This rule moves the existing 

regulations for LFP in 7 CFR part 760, 

subpart D, to 7 CFR part 1416, subpart 

C. The 2014 Farm Bill has not changed 

the basic scope of LFP. Section 

1501(c)(2) of the 2014 Farm Bill directs 

the Secretary to use such sums as are 

necessary from CCC to compensate 

eligible livestock producers for eligible 

grazing losses on eligible grazing land 

for covered livestock due to a qualifying 

drought during the normal grazing 

period for the county, or grazing losses 

on rangeland managed by a Federal 

agency if the eligible livestock producer 

is prohibited by the Federal agency from 

grazing the normal permitted livestock 

on the managed rangeland due to a 

qualifying fire, as determined by the 

Secretary, during the calendar year. The 

qualifying drought or fire must occur on 

or after October 1, 2011. The payment 

formulas for LFP in the 2014 Farm Bill 

will, in some cases, provide larger 

payments than under the 2008 Farm Bill 

for producers in areas of drought for 

multiple weeks. 

Eligibility Requirements 

LFP payments and eligibilities will be 

calculated based on the type of covered 

livestock and grazing losses, and the 

calculations will be made by FSAapproved categories. This rule does not 

change the regulation that specifies 

covered livestock or eligible producers. 

As under the previous LFP regulation, 

reduced payments are available for 

producers who sold or otherwise 

disposed of covered livestock due to 

qualifying drought in 1 or both of the 2 

production years immediately preceding 

the current production year. Where the 

livestock is in the possession of a 

contract grower at the time of loss, only 

the contract grower will be eligible for 

payment. ‘‘Contract growers’’ under 

ELAP and LFP only includes producers 

whose income is dependent on the 

actual weight gain and survival of the 

livestock. Livestock that were or would 

have been in a feedlot are not eligible 

for LFP. The actual ‘‘owner’’ of the 

livestock will not be eligible. This is not 

a change from the existing regulations. 

Livestock used for recreational use, 

such as animals used for roping or pets, 

are not covered. Animals that were or 

would have been in a feedlot on the 

beginning date of the drought or fire are 

not covered. Yaks and ostriches are not 

covered. Cattle (including buffalo and 

beefalo) under 500 pounds on the 

beginning date of the qualifying drought 

or fire are not covered. These provisions 

are not new, and have not changed. 

Qualifying drought ratings are 

specified in this rule using the U.S. 

Drought Monitor (http://

droughtmonitor.unl.edu) ratings of 

drought intensity. For any eligible areas 

of the United States (including 

territories and possessions) without U.S. 

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21090 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

Drought Monitor coverage for an 

applicable program year, the Deputy 

Administrator, in consultation with 

appropriate weather-related agencies 

and experts, will establish procedures 

for rating drought intensity using the 

same basic categories as the U.S. 

Drought Monitor such that coverage will 

be made available. As under the 2008 

Farm Bill, drought intensity is specified 

as one of the eligibility ‘‘triggers’’ for 

LFP; however, the 2014 Farm Bill 

changes the payment amount an eligible 

producer may receive based on the 

length and intensity of the qualifying 

drought as follows: 

• For an amount equal to 1 monthly 

payment, the drought length and 

intensity must be at least a D2 (severe 

drought) intensity in any area of the 

county for 8 consecutive weeks during 

the normal grazing period for the 

specific type of grazing land or 

pastureland for the county. 

• For an amount equal to 3 monthly 

payments, the drought length and 

intensity must be at least a D3 (extreme 

drought) intensity in any area of the 

county at any time during the normal 

grazing period for the specific type of 

grazing land or pastureland. 

• For an amount equal to 4 monthly 

payments, the drought length and 

intensity must be: 

• At least D3 (extreme drought) 

intensity in any area of the county for 

at least four weeks during the normal 

grazing period for the specific type of 

grazing land or pastureland for the 

county, or 

• D4 (exceptional drought) intensity 

in any area of the county at any time 

during the normal grazing period for the 

specific grazing land or pastureland for 

the county. 

• For an amount equal to 5 monthly 

payments, the drought length and 

intensity must be at least D4 

(exceptional drought) in any area of the 

county for at least 4 weeks (not required 

to be consecutive weeks) during the 

normal grazing period for the county, 

Under the 2008 Farm Bill, LFP 

provided a maximum of 3 monthly 

payments. These new provisions for up 

to 5 monthly payments are as specified 

in the 2014 Farm Bill and FSA has no 

discretion to determine otherwise. Total 

LFP payments to an eligible livestock 

producer in a calendar year for eligible 

grazing losses due to a qualifying 

drought will not exceed an amount 

equal to 5 monthly payments for the 

same livestock. 

This rule clarifies that for grazing 

losses on land planted to a crop 

specifically for the purpose of providing 

grazing for covered livestock to be 

eligible for payment, grazing must be 

reported as the intended use on the 

producer’s acreage report. If the land is 

reported as another intended use but 

later grazed, losses due to drought on 

that land will not be covered by LFP. 

The rule also clarifies that crops planted 

specifically for the purpose of providing 

grazing for covered livestock include 

forage sorghum or small grains may be 

covered, but corn stalks or grain 

sorghum stalks will not be covered. This 

rule also adds the provision that grazing 

losses that occur on irrigated land are 

not covered under LFP unless the 

irrigated land has not been irrigated in 

the year for which benefits are being 

requested due to lack of water that is 

beyond the participant’s control. 

A livestock producer may receive LFP 

payments for a qualifying fire if the 

grazing loss occurs on rangeland 

managed by a Federal agency and the 

eligible livestock producer is prohibited 

from grazing the normal permitted 

livestock on the rangeland due to fire. 

Under this rule, LFP will continue to 

cover up to 180 days of grazing losses 

due to fire. 

Any owner, cash or share lessee, or 

contract grower of livestock that rents or 

leases pastureland or grazing land 

owned by another person on a rate-ofgain basis is not considered an eligible 

livestock producer. 

As under the previous LFP 

provisions, grazing losses that are not 

related to qualifying drought or fire, as 

determined by the Secretary, are not 

eligible for LFP, but may be eligible for 

ELAP, which covers other adverse 

weather conditions. An eligible 

livestock producer may not receive LFP 

payments for grazing losses due to 

drought that occur on land used for 

haying or grazing under the 

Conservation Reserve Program (CRP). 

Applying for LFP Payment 

For losses occurring on or after 

October 1, 2011, and on or before 

December 31, 2014, the producer must 

provide a completed application for 

payment and supporting documentation 

to the administrative FSA county office 

by January 30, 2015. 

For the 2015 calendar year and 

subsequent years, the producer must 

provide a completed application for 

payment and required supporting 

documentation to the administrative 

FSA county office (physical location 

county) within 30 calendar days after 

the end of the calendar year in which 

the grazing loss occurred. 

LFP Payment Calculation 

Producers are eligible for up to 5 

monthly payments for grazing losses 

due to a qualifying drought, depending 

on the intensity and duration of the 

drought, as described earlier. This rule 

does not change the basic payment 

calculations for LFP, although it does 

provide payments for more months, 

under certain scenarios, than under the 

2008 Farm Bill. Each monthly payment 

for eligible grazing losses under LFP due 

to drought may not exceed 60 percent of 

the lesser of: 

• The monthly feed cost for all 

covered livestock owned or leased by 

the eligible livestock producer as 

calculated in § 1416.207(h) or 

• The monthly feed cost calculated 

using the normal carrying capacity of 

the eligible grazing land of the eligible 

livestock producer as determined in 

§ 1416.207(l). 

In the case of livestock that were sold 

or otherwise disposed of due to 

qualifying drought in 1 or both of the 2 

production years immediately preceding 

the current production year, the 

payment rate is 80 percent of the 

monthly rate just described. 

Under this rule, producers will 

continue to be eligible for payments for 

grazing losses due to qualifying fire for 

up to 180 days per calendar year of such 

losses. Payments for eligible grazing 

losses due to qualifying fire under LFP 

may not exceed 50 percent of the 

monthly feed cost, determined as 

specified in § 1416.207(h), for the total 

number of livestock covered by the 

Federal lease of the eligible livestock 

producer for grazing losses that occur 

for not more than 180 days per calendar 

year. Payment for fire losses is 

calculated on a daily basis. 

Specific Provisions for LIP 

This rule moves the existing 

regulations for LIP in 7 CFR part 760, 

subpart E, to 7 CFR part 1416, subpart 

D. The 2014 Farm Bill authorizes the 

LIP, with little changes from the 

previous LIP under the 2008 Farm Bill. 

The only substantive change required by 

the 2014 Farm Bill is the addition of 

eligible losses due to Federally reintroduced predators or species 

protected by Federal law, including 

avian predators and wolves. This rule 

also makes discretionary changes to the 

documentation requirements, 

particularly for losses in 2012 and 2013, 

and for calf and lamb open range 

livestock operation losses. 

Unchanged from the 2008 Farm Bill, 

the 2014 Farm Bill provisions require 

LIP payments to be made at a rate of 75 

percent of the market value of the 

livestock on the day before the date of 

the death of the livestock. Payments are 

to be made to eligible producers on 

farms that have incurred livestock death 

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losses for the calendar year in excess of 

the normal mortality. 

The eligible livestock death losses 

must have occurred on or after October 

1, 2011, during the calendar year for 

which benefits are requested. Eligible 

losses must be due to adverse weather 

or other conditions, as determined by 

the Secretary, including hurricanes, 

floods, blizzards, disease exacerbated by 

adverse weather, wildfires, extreme 

heat, and extreme cold, or due to attacks 

by animals reintroduced into the wild 

by the Federal Government or protected 

by Federal law, including wolves and 

avian predators. The provisions 

described in this paragraph are 

mandatory provisions over which FSA 

has little or no discretion in how to 

implement. 

Eligibility Requirements for LIP 

Under the 2014 Farm Bill, LIP 

continues to cover losses due to 

livestock deaths in excess of normal 

mortality due to hurricanes, floods, 

blizzards, disease exacerbated by 

adverse weather, wildfires, extreme 

heat, and extreme cold. It also expands 

eligibility under LIP to cover losses from 

livestock deaths in excess of normal 

mortality due to attacks by animals 

reintroduced into the wild by the 

Federal Government or protected by 

Federal law, including wolves and avian 

predators. As under the 2008 Farm Bill, 

there is not a State or National ‘‘trigger’’ 

such as an emergency declaration that 

provides automatic eligibility for all 

producers in a particular State, county, 

or region. For LIP purposes, adverse 

weather does not include drought 

(although drought can exacerbate 

disease such as anthrax, which is 

eligible under LIP). FSA has the 

authority to determine eligibility of 

livestock losses caused by other adverse 

weather or other conditions, including 

disease caused by such weather and 

whether the disease is exacerbated by 

the adverse weather. This rule clarifies 

that if a disease is determined by FSA 

not to be exacerbated by adverse 

weather events or is preventable by 

implementing and following acceptable 

management practices, such as 

vaccination, the disease is not eligible 

for payment under LIP. FSA also has the 

authority to determine eligibility of 

livestock losses caused by animals other 

than wolves and avian predators that 

have been reintroduced into the wild by 

the Federal Government or protected by 

Federal law. 

LIP payments and eligibilities will be 

calculated on the type of eligible 

livestock and the actual losses and the 

calculations will be made by FSAapproved categories. As under the 

previous LIP provisions, benefits are 

only available for the owners of 

livestock or for ‘‘contract growers’’— 

persons who produce livestock owned 

by someone else, but have a risk in the 

livestock (such as a farmer who raises 

chickens owned by a company that 

produces chicken products, but does not 

receive payment for livestock that die 

before the livestock is mature and 

returned to the owner). This rule does 

not change eligible livestock for 

payment to livestock owners, which 

includes beef cattle, dairy cattle, buffalo, 

beefalo, equine, sheep, goats, deer, 

swine, poultry, reindeer, elk, emus, 

alpacas, and llamas. It also does not 

change the eligible livestock for 

payment to contract growers, which 

include only swine and poultry because 

those are the only known examples of 

that kind of production arrangement. To 

be eligible livestock for LIP, as of the 

day they died the livestock must have 

been both of the following: 

• Owned by an eligible owner or in 

the possession of an eligible contract 

grower, and 

• Maintained for commercial use as 

part of a farming operation of the 

participant on the day they died. 

As under the previous LIP provisions, 

eligibility for payments to poultry and 

swine contract growers will be limited 

based on the amount of their contractual 

risk and other payments received. 

Payments will not exceed their 

contractual risk, as determined by FSA. 

Any compensation received by the 

contract grower from the contractor for 

loss of income for the dead livestock 

will be deducted from the contract 

grower’s LIP payment. When a contract 

grower is in possession of the livestock 

at the time of death, only the contract 

grower will be eligible for the payment; 

the owner is not eligible. Animals kept 

for recreational purposes, such as 

hunting animals, animals used for 

roping practice, pets, and show animals, 

continue to be ineligible for LIP under 

this rule. 

Determination of LIP payment 

eligibility will be based on actual losses 

in excess of normal mortality for the 

calendar year for the relevant animal 

type and approved category by an 

individual producer or contract grower. 

Applying for LIP Payment 

This rule does not change the 

application process for LIP. Producers 

must file both a notice of loss and an 

application. A notice of loss will not 

automatically qualify a producer for 

payment. Because the eligible losses are 

only those above normal mortality and 

that is calculated on a yearly basis, a 

loss occurring in, for example, July, will 

not necessarily generate a claim 

depending on how great the losses are, 

natural or otherwise, for the rest of the 

year. It could be, however, that a loss in 

July is so great that the producer is 

already beyond normal mortality for the 

year, in which case the producer could 

already be eligible for payment. 

For losses that occurred on or after 

October 1, 2011, and before January 1, 

2015, producers must provide a notice 

of loss and application for payment to 

FSA no later than January 30, 2015. For 

2015 and subsequent calendar year 

losses, producers must provide a notice 

of loss to FSA by the earlier of 30 

calendar days of when the loss of 

livestock is apparent to the participant, 

or 30 calendar days after the end of the 

calendar year in which the loss of 

livestock occurred. Other 

documentation is required for a 

complete application for payment, as 

described in this rule. For 2015 and 

subsequent calendar year losses, the 

completed application must be 

submitted to the FSA county office no 

later than 30 calendar days after the end 

of the calendar year in which the loss 

of livestock occurred. Producers that 

suffer multiple livestock losses during 

the calendar year may file multiple 

notices of loss and multiple applications 

for payment. 

This rule provides less restrictive loss 

documentation requirements for 

livestock death losses that occurred 

from October 1, 2011, to before January 

1, 2015, because producers were not 

provided with advanced notice of 

program requirements. Additionally, the 

previous LIP authorized by the 2008 

Farm Bill had expired and there was no 

notice of any future LIP to cover losses 

beyond the scope of the 2008 Farm Bill. 

Accordingly, livestock producers may 

provide proof of death and inventories 

that may not be verifiable but that are 

reliable and reasonable documentation 

according to the provisions in this rule. 

This rule provides new provisions to 

address eligibility of losses for calf and 

lamb open range livestock operations. 

Specific provisions for these operations 

are necessary to determine proof of 

death and inventory because the calf 

and lamb open range livestock 

operations have had difficulties in 

meeting the previous proof of death and 

inventory requirements given the 

dispersed nature of their production 

practices. Calf and lamb open range 

livestock operations now may provide 

proof of inventory and loss by using the 

livestock beginning inventory history 

for reporting losses. If inventory records 

are not available, a default national 

birthing rate of 90 percent for calves and 

160 percent for lambs will be used. 

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When beginning inventory records are 

not available, as specified in this rule in 

addition to submitting other required 

records, verifiable beginning inventory 

records for ewes or cow will be 

submitted along with verifiable or 

reliable ending inventory records for 

lambs or calves. With that information, 

FSA will calculate the beginning 

inventory for that year. The Deputy 

Administrator has the authority to make 

adjustments as necessary. If records are 

available for less than 3 years, the 

calculation for inventory will include a 

reduction for the years of missing data. 

These provisions are discretionary. 

LIP Payment Calculations 

This rule does not change the LIP 

payment calculation. As specified in the 

2014 Farm Bill, the payment for 

livestock owners will continue to be 

calculated based on 75 percent of the 

average fair market value of the 

applicable livestock on the day before 

the date of death of the livestock, as 

determined by FSA. When determining 

the market value of applicable livestock, 

FSA will establish market values for 

each type and category of livestock 

using data from credible livestock 

markets. Credible livestock markets will 

include sale barns and local sales as 

well as sales at terminal market centers 

or slaughtering facilities. For contract 

growers, the payment will continue to 

be based on 75 percent of the average 

income loss sustained by the grower 

with respect to the dead livestock. 

FSA, through the State FSA offices, 

will obtain recommendations from 

applicable State livestock organizations, 

State Cooperative Extension Service, 

and other knowledgeable and credible 

sources, to establish the normal 

mortality rate for each type of livestock 

on a State-by-State basis when changes 

are warranted. As under the previous 

provisions, payments are only available 

for losses over normal mortality over the 

course of the year and those rates will 

be established on a State-by-State basis. 

Specific Provisions for TAP 

This rule moves the existing 

regulations for TAP in 7 CFR part 760, 

subpart F, to 7 CFR part 1416, subpart 

E. The 2014 Farm Bill authorizes the 

Secretary to assist eligible orchardists 

and nursery tree growers that have 

incurred tree, bush, or vine mortality 

losses in excess of 15 percent, adjusted 

for normal mortality, due to natural 

disaster, including plant disease, insect 

infestation, drought, fire, freeze, flood, 

earthquake, lightning, or other 

occurrence, as determined by the 

Secretary. TAP is a cost-reimbursement 

program, which means that payments 

are calculated based on estimated actual 

costs to replace or rehabilitate lost or 

damaged trees, bushes, or vines. The 

replacement and rehabilitation activities 

must take place within 12 months after 

the application is approved. Payment is 

not made until the activities are 

completed. TAP was previously 

authorized under the 2008 Farm Bill, 

and the program will continue as in 

prior years, with the mandatory and 

discretionary changes specified in this 

rule. The main mandatory change is that 

the reimbursement rate is reduced, from 

70 percent to 65 percent, for replanting 

costs. The discretionary provisions 

include the deadline for application for 

payment for retroactive losses, and that 

the duration of a plant disease period is 

determined by the Deputy 

Administrator and could be longer than 

the previous limit of one year. 

Eligibility Requirements 

Eligible losses and eligible producers 

under TAP will not change from the 

provisions implemented under the 2008 

Farm Bill, except for the date (on or 

after October 1, 2011) that eligible 

producers must have suffered eligible 

losses as a result of a natural disaster, 

which includes plant disease, insect 

infestation, drought, fire, freeze, flood, 

earthquake, lightning, or other 

occurrence, as determined by the 

Secretary. Commercially grown trees, 

vines, and bushes are eligible. The 2014 

Farm Bill does not change the eligibility 

‘‘trigger’’ of mortality losses in excess of 

15 percent, adjusted for normal damage 

and mortality. While mortality for other 

natural disasters is assessed on a 

calendar year basis, mortality related to 

plant disease may be examined over 

longer periods if determined 

appropriate considering the typically 

longer time-scale for these infections. 

For example, a plant disease may infect 

an orchard of 1,000 trees where the 

normal mortality is 2% per year or 20 

trees. While the disease causes 

increased mortality, best management 

practices can keep infected trees 

productive and keep the annual 

mortality to 8% or 80 trees. After three 

years of infection, the orchard would 

exceed the 15% trigger and become 

eligible for TAP assistance for the 

remainder of the infection (the orchard 

would have lost 240 trees with 60 due 

to normal mortality and 180 due to 

disease). Considering mortality over the 

length of the infection for purposes of 

the 15% trigger also encourages proper 

management to control the impacts of a 

disease. A 15% annual trigger for plant 

disease could encourage poor 

management to try to reach the 

threshold, although TAP continues to 

exclude losses that could be prevented 

through reasonable and available 

measures. Specific policies and 

procedures will be established regarding 

mortality and reasonable management, 

as appropriate, depending on the 

characteristics of the disease in 

question. For example, citrus canker 

greening might result in such losses 

over a period of several years. Normal 

mortality losses are those associated 

with the normal upkeep of the orchard 

or nursery in the region. Damage losses 

are not eligible for payment unless the 

15 percent normal mortality trigger is 

met. Losses due to causes other than 

natural disaster will not be eligible for 

payment. 

Applying for TAP Payment 

To obtain a TAP payment for losses 

that occurred on or after October 1, 

2011, through the end of the 2014 

calendar year, a producer must provide 

an application for payment and 

supporting documentation to FSA by 

the later of January 31, 2015, or 90 

calendar days after the disaster event or 

date when the loss is apparent to the 

producer. During the 2015 calendar year 

or later, a producer must provide an 

application for payment and supporting 

documentation to FSA within 90 

calendar days of the disaster event or 

date upon which the loss of trees, 

bushes, or vines is apparent. Producers 

that suffer multiple losses during the 

year may file multiple applications for 

payment. 

TAP Payment Calculation 

This rule changes the calculation of 

TAP payments by reducing the 

reimbursement amount for the cost of 

replanting trees lost due to a natural 

disaster from 70 percent to 65 percent, 

in excess of 15 percent mortality or, at 

the option of the Secretary, sufficient 

seedlings to reestablish a stand. The 65 

percent rate is required by the 2014 

Farm Bill and FSA has no discretion. 

The rate for rehabilitation of eligible 

trees, bushes, or vines, which is 50 

percent of the cost of pruning, removal, 

and other costs incurred for salvaging 

the existing plants, or in the case of 

plant mortality, to prepare land for 

replanting, subject to the maximum 

allowable FSA rate remains the same as 

it was under the previous TAP. The 50 

percent is only payable for losses that 

reflect a greater than 15 percent loss 

taking into account normal mortality 

and damage. A producer can be eligible 

for payment for both replanting and 

rehabilitation costs. 

As under the previous provisions, the 

TAP payment will be calculated based 

on the actual costs of the approved 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21093 

practices, or the rates established by the 

Deputy Administrator, whichever is 

lower. Calculations will be made using 

FSA-approved categories of plants and 

practices. Losses must be verified by a 

field visit and approved practices must 

be completed before payment will be 

made. This rule does not change the 

requirements regarding documentation 

to show that practices are complete, 

such as receipts for labor costs, 

equipment rental, and purchases of 

seedlings or cuttings. Participants may 

not receive TAP payments on more than 

500 acres of eligible trees or tree 

seedlings per program year. This is a 

change from the previous regulation. 

Structure and Organization of the 

Disaster Assistance Regulations 

The regulations in 7 CFR part 760 for 

general provisions, ELAP, LFP, LIP, and 

TAP will be revised in a subsequent 

rulemaking to remove obsolete 

provisions that apply to programs that 

were not reauthorized. Regulations for 

the new programs will be established in 

7 CFR part 1416, as described in the 

table below: 

Program Current Part and Subpart New Part and Subpart 

General Provisions ............................. Part 760, Subpart B (all supplemental disaster assistance programs authorized by the 2008 Farm Bill, including SURE).Part 1416, Subpart A. 

ELAP .................................................. Part 760, Subpart C (previous ELAP under 2008 Farm Bill) ........................ Part 1416, Subpart B. 

LFP ..................................................... Part 760, Subpart D (previous LFP under 2008 Farm Bill) .......................... Part 1416, Subpart C. 

LIP ...................................................... Part 760, Subpart E (previous LIP under 2008 Farm Bill) ............................ Part 1416, Subpart D. 

TAP .................................................... Part 760, Subpart F (previous TAP under 2008 Farm Bill) .......................... Part 1416, Subpart E. 

Overview—Payment Limit and AGI 

Changes 

This final rule implements payment 

limit and AGI provisions in sections 

1119, 1501, 1603, 1605, 2005, 2206, and 

12305 of the 2014 Farm Bill concerning 

payment eligibility requirements and 

payment limits for participants in CCCfunded programs. The 2014 Farm Bill 

provides revised annual payment 

limitation amounts per person or legal 

entity, and revised eligibility 

requirements based on the average 

annual income amount of the program 

participant. Overall, the 2014 Farm Bill 

simplifies the payment limit and 

payment eligibility requirements as 

compared to the requirements specified 

in the 2008 Farm Bill. This final rule 

amends 7 CFR Part 1400 to implement 

these changes. The changes in this rule 

are required by the 2014 Farm Bill; FSA 

has no discretion in setting payment 

limits or income-related payment 

eligibility requirements. 

Payment Limits 

This rule amends the payment limits 

specified in 7 CFR 1400.1 

‘‘Applicability’’ as required by the 2014 

Farm Bill. This rule removes payment 

limits for programs that were not reauthorized by the 2014 Farm Bill. 

Neither this rule nor the 2014 Farm Bill 

change the method by which payments 

are attributed to persons and legal 

entities. 

Section 1501(f) of the 2014 Farm Bill 

specifies the payment limits that apply 

to the disaster programs. LFP, LIP, and 

ELAP payments issued under the 2014 

Farm Bill are collectively limited to 

$125,000 per person or legal entity for 

each year. This limit applies to 

payments in 2014 for fiscal year 2012 

and 2013 losses. TAP has a separate 

$125,000 payment limit. These limits 

are slightly higher than the limits 

specified in the 2008 Farm Bill. In the 

2008 Farm Bill, ELAP, LFP, LIP, and 

SURE were collectively limited to 

$100,000 per person or legal entity, and 

TAP had a separate $100,000 limit. 

The total amount of payments 

received, directly or indirectly, by a 

person or legal entity for any crop year 

for annual payments and benefits 

received under the new Agriculture Risk 

Coverage (ARC) and Price Loss Coverage 

(PLC) programs, and loan deficiency 

payments (LDP) and marketing loan 

gains (MLG) for commodities except 

peanuts, is $125,000, as specified in 

Section 1603(b) of the 2014 Farm Bill. 

There is a separate limit of $125,000 per 

year for payments under ARC, PLC, 

LDPs and MLGs for peanuts. This rule 

removes references to payment limits 

for the Direct and Countercyclical 

Program (DCP) and the Average Crop 

Revenue Election Program (ACRE) 

because those programs were not 

reauthorized by the 2014 Farm Bill. 

There was no payment limit for LDP, 

Marketing Assistance Loans, or MLG in 

the 2008 Farm Bill. 

As specified in Section 1119 of the 

2014 Farm Bill, the payments received 

under the new Transition Assistance for 

Producers of Upland Cotton program are 

limited to $40,000 per person or legal 

entity for each of the years 2014 and 

2015. That program is only authorized 

for 2014 and 2015. 

As specified in section 12305 of the 

2014 Farm Bill, NAP payments have an 

annual limitation of $125,000 per 

person or legal entity. The 2008 Farm 

Bill had a limit of $100,000 for NAP 

benefits. 

Section 2005 of the 2014 Farm Bill 

does not change the payment limit for 

CRP of $50,000. For contracts signed 

after October 1, 2008, all CRP payments 

are also limited by the direct attribution 

provisions currently in 7 CFR 1400, 

which are not changing. CRP contracts 

that were in place before October 1, 

2008, are subject to the payment 

limitation rules that were in effect on 

the date of contract approval. Prior to 

the 2008 Farm Bill, the CRP program 

had the same payment limit but 

different provisions for payment 

attribution to entities. 

Section 2206 of the 2014 Farm Bill 

changes the payment limit for the 

Environmental Quality Incentives 

Program (EQIP). A person or legal entity 

may not receive, directly or indirectly, 

in excess of $450,000 in EQIP payments 

for all EQIP contracts entered into under 

the 2014 Farm Bill period of fiscal years 

2014 through 2018. The EQIP payment 

limitation under the 2008 Farm Bill was 

$300,000, unless the Chief, NRCS, 

waived the payment limitation up to 

$450,000 for a project of special 

environmental significance. The 2014 

Farm Bill did not make any changes to 

the payment limitations for the 

Agricultural Management Assistance 

(AMA) program or the Conservation 

Stewardship Program (CSP). There is no 

payment limitation under the 

Agricultural Conservation Easement 

Program (ACEP). 

This rule removes references to 

payment limits for conservation 

programs that were not reauthorized by 

the 2014 Farm Bill. Except for CRP, 

there are no payment limits for 

conservation programs; rather the 

program payments may be limited by 

available funding for specific programs. 

That is not a change from the 2008 Farm 

Bill, which also had no payment limits 

for conservation programs other than 

CRP. The 2014 Farm Bill combines 

various conservation programs and does 

not reauthorize others. This rule revises 

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21094 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

7 CFR part 1400 to reflect the new 

names of these programs, and to remove 

the ones that are not reauthorized. 

SURE, as authorized by the 2008 Farm 

Bill, was not repealed by the 2014 Farm 

Bill and therefore remains in effect for 

losses on or before September 30, 2011. 

The AGI and payment limit regulations 

in effect when those losses occurred 

apply. Specifically, the average AGI 

limits of $500,000 nonfarm AGI and 

$750,000 farm AGI apply, and the 

$100,000 per person or legal entity 

payment limitation. These limits are 

separate from the AGI requirements and 

payment limitation amount applicable 

to the LIP, LFP, TAP, and ELAP benefits 

authorized under the 2014 Farm Bill. 

Income Limits for Payment Eligibility 

The 2014 Farm Bill specifies that 

persons and legal entities whose income 

is above a certain threshold are not 

eligible for most CCC and FSA program 

benefits. Section 1605 of the 2014 Farm 

Bill provides a new average AGI 

limitation applicable to all commodity, 

price support, disaster assistance, and 

conservation programs, including but 

not limited to FSA and CCC programs 

in titles I, II, and XII of the 2014 Farm 

Bill. These requirements also apply to 

the Natural Resource Conservation 

Service (NRCS) programs funded by 

CCC, including AMA, CSP, EQIP, and 

ACEP. This rule amends § 1400.3, 

‘‘Definitions,’’ § 1400.500, 

‘‘Applicability,’’ and § 1400.501, 

‘‘Determination of Average Adjusted 

Gross Income,’’ to implement the 2014 

Farm Bill changes to AGI limitations. 

Effective for the 2014 and subsequent 

crop, program, and fiscal years, all 

commodity, price support, and disaster 

assistance program payments and 

benefits are subject to an average AGI 

limitation of $900,000 per person or 

legal entity. This limit also applies to 

payments authorized by the 2014 Farm 

Bill for retroactive benefits for the 2012 

or 2013 crop, program, or fiscal year. 

Effective for the fiscal year 2015 and 

subsequent years, the same income 

limitation is applicable to all 

conservation program payments and 

benefits. (For conservation programs 

that were reauthorized by the American 

Taxpayer Relief Act of 2012, Pub. L. 

112–240, the 2008 Farm Bill AGI limits 

applied for 2013 payments.) How AGI is 

defined and calculated has not changed, 

in either the 2014 Farm Bill or in this 

rule. 

The single average AGI limitation of 

$900,000 replaces the multiple AGI 

limitations specified in the 2008 Farm 

Bill and limitations based on farm and 

nonfarm income amounts. Therefore, 

this rule removes all the references to 

farm and nonfarm income requirements, 

leaving only the general AGI 

requirements, which are only changed 

in the amount. The limits specified in 

the 2008 Farm Bill were $500,000 in 

nonfarm income and $750,000 in farm 

income for commodity programs, with a 

$1 million nonfarm income limit for 

conservation program eligibility. The 

2008 Farm Bill allowed a waiver to the 

AGI limit for conservation programs if at 

least 66.66 percent of the participant’s 

income was from farming, and also 

allowed the Secretary to waive the AGI 

limit on a case by case basis for other 

reasons to protect environmentally 

sensitive land of special significance. 

The AGI waivers for conservation 

practices are not reauthorized in the 

2014 Farm Bill. However, Section 2401 

of the 2014 Farm Bill authorizes the 

Secretary to waive the AGI limit for 

payments under the Regional 

Conservation Partnership Program 

(RCPP) for participating producers if the 

Secretary determines that the waiver is 

necessary to fulfill the objectives of the 

program. 

The 2014 Farm Bill combines various 

conservation programs and does not 

reauthorize others. This rule is revised 

to reflect the new names of these 

programs, and to remove the ones that 

are not reauthorized. The average AGI 

limit of $900,000 applies to all 

conservation programs, effective fiscal 

year 2015. However, the average AGI 

limit applies to AMA in FY 2014. As 

noted above, there is no authorization 

for AGI waivers in the 2014 Farm Bill 

except for RCPP payments and therefore 

this rule removes that provision from 7 

CFR 1400. Waivers of the AGI limit for 

RCPP will be addressed in the 

regulations for the covered programs 

under RCPP. 

This rule makes two minor editorial 

changes in 1400.502, ‘‘Compliance and 

Enforcement,’’ to clarify that failure to 

comply with the AGI requirements of 

this part will result in ineligibility. 

Other Eligibility Requirements in Part 

1400 Unchanged 

The 2014 Farm Bill did not change 

other payment eligibility requirements 

that are specified in 7 CFR part 1400. 

For example, the existing eligibility 

restrictions on foreign entities and state 

governments did not change. Payment 

limitation by direct attribution to a 

person or legal entity did not change 

from what was specified in the 2008 

Farm Bill and is currently specified in 

7 CFR part 1400. 

Notice and Comment 

In general, the Administrative 

Procedure Act (5 U.S.C. 553) requires 

that a notice of proposed rulemaking be 

published in the Federal Register and 

interested persons be given an 

opportunity to participate in the 

rulemaking through submission of 

written data, views, or arguments with 

or without opportunity for oral 

presentation, except when the rule 

involves a matter relating to public 

property, loans, grants, benefits, or 

contracts. The regulations to implement 

the provisions of Title I and the 

administration of Title I of the 2014 

Farm Bill are exempt from the notice 

and comment provisions of 5 U.S.C. 553 

and the Paperwork Reduction Act (44 

U.S.C. chapter 35), as specified in 

section 1601(c)(2) of the 2014 Farm Bill. 

Effective Date 

The Administrative Procedure Act (5 

U.S.C. 553) provides generally that 

before rules are issued by Government 

agencies, the rule must be published in 

the Federal Register, and the required 

publication of a substantive rule is to be 

not less than 30 days before its effective 

date. One of the exceptions is when the 

agency finds good cause for not delaying 

the effective date. In making this final 

rule exempt from notice and comment 

through section 1601(c)(2) of the 2008 

Farm Bill, using the administrative 

procedure provisions in 5 U.S.C. 553, 

FSA finds that there is good cause for 

making this rule effective less than 30 

days after publication in the Federal 

Register. This rule allows FSA to 

provide benefits to producers who 

losses caused by adverse weather, 

natural disasters, or other conditions. 

Therefore, to begin providing benefits to 

producers as soon as possible, this final 

rule is effective when published in the 

Federal Register. 

Executive Orders 12866 and 13563 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review,’’ direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasized the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

The Office of Management and Budget 

(OMB) designated this rule as 

economically significant under 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ and therefore, 

OMB has reviewed this rule. This 

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regulatory action is being taken to 

implement a major budgetary program 

required by the 2014 Farm Bill. 

Consistent with OMB guidance, this 

type of action is considered a budgetary 

transfer representing a payment from 

taxpayers to program beneficiaries 

unrelated to the provision of any goods 

or services in exchange for the payment. 

As such, there are no economic gains, 

because the benefits and payments to 

those who receive such a transfer are 

matched by the costs borne by taxpayers 

to offset disaster losses by program 

beneficiaries. The estimated transfer 

payments for disaster assistance 

provided by this rule are summarized 

below. The full cost benefit analysis is 

available on regulations.gov. 

Cost Benefit Analysis Summary 

The 2014 Farm Bill authorizes four 

permanent livestock disaster assistance 

programs: LIP, LFP, ELAP, and TAP. 

The permanent disaster assistance 

programs provide a permanent means of 

addressing the same needs as programs 

provided to producers on an ad hoc 

basis in the past. The estimated annual 

payments of LIP, LFP, and ELAP and 

TAP is approximately $502 million and 

provides targeted payments to livestock 

and honey bee producers who suffer 

losses from a disaster. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601–612), as amended by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 

generally requires an agency to prepare 

a regulatory flexibility analysis of any 

rule subject to the notice and comment 

rulemaking requirements under the 

Administrative Procedure Act (5 U.S.C. 

553) or any other statute, unless the 

agency certifies that the rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This rule is not subject to the Regulatory 

Flexibility Act because CCC and FSA 

are not required by any law to publish 

a proposed rule for public comments on 

this rule. 

Environmental Review 

The environmental impacts of this 

final rule have been considered in a 

manner consistent with the provisions 

of the National Environmental Policy 

Act (NEPA, 42 U.S.C. 4321–4347), the 

regulations of the Council on 

Environmental Quality (40 CFR parts 

1500–1508), and the FSA regulations for 

compliance with NEPA (7 CFR part 

799). FSA has determined that the 

provisions identified in this final rule 

are administrative in nature, intended to 

clarify the mandatory requirements of 

the programs, as defined in the 2014 

Farm Bill, and do not constitute a major 

Federal action that would significantly 

affect the quality of the human 

environment, individually or 

cumulatively. While OMB has 

designated this rule as ‘‘economically 

significant’’ under Executive Order 

12866, ‘‘. . . economic or social effects 

are not intended by themselves to 

require preparation of an environmental 

impact statement’’ (40 CFR 1508.14), 

when not interrelated to natural or 

physical environmental effects. 

Therefore, as this rule presents 

administrative clarifications only, FSA 

will not prepare an environmental 

assessment or environmental impact 

statement for this regulatory action. 

Executive Order 12372 

Executive Order 12372, 

‘‘Intergovernmental Review of Federal 

Programs,’’ requires consultation with 

State and local officials. The objectives 

of the Executive Order are to foster an 

intergovernmental partnership and a 

strengthened Federalism, by relying on 

State and local processes for State and 

local government coordination and 

review of proposed Federal Financial 

assistance and direct Federal 

development. For reasons specified in 

the Notice to 7 CFR part 3015, subpart 

V (48 FR 29115, June 24, 1983), the 

programs and activities within this rule 

are excluded from the scope of 

Executive Order 12372 which requires 

intergovernmental consultation with 

State and local officials. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, ‘‘Civil Justice 

Reform.’’ This rule will not preempt 

State or local laws, regulations, or 

policies unless they represent an 

irreconcilable conflict with this rule. As 

required by the 2014 Farm Bill, the 

programs in this rule are retroactive to 

October 1, 2011. Before any judicial 

action may be brought regarding the 

provisions of this rule, the 

administrative appeal provisions of 7 

CFR parts 11 and 780 must be 

exhausted. 

Executive Order 13132 

This rule has been reviewed under 

Executive Order 13132, ‘‘Federalism.’’ 

The policies contained in this rule do 

not have any substantial direct effect on 

States, on the relationship between the 

Federal government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government, except as required 

by law. Nor does this rule impose 

substantial direct compliance costs on 

State and local governments. Therefore, 

consultation with the States is not 

required. 

Executive Order 13175 

This rule has been reviewed for 

compliance with Executive Order 

13175, ‘‘Consultation and Coordination 

with Indian Tribal Governments.’’ This 

Executive Order imposes requirements 

on the development of regulatory 

policies that have Tribal implications or 

preempt Tribal laws. The policies 

contained in this rule do not preempt 

Tribal law. 

The policies contained in this rule do 

not, to our knowledge, impose 

substantial unreimbursed direct 

compliance costs on Indian Tribal 

governments, have Tribal implications, 

or preempt Tribal law. USDA continues 

to consult with Tribal officials to have 

a meaningful consultation and 

collaboration on the development and 

strengthening of USDA regulations. 

USDA will respond in a timely and 

meaningful manner to all Tribal 

government requests for consultation 

concerning this rule and will provide 

additional venues, such as Webinars 

and teleconferences, to periodically host 

collaborative conversations with Tribal 

leaders and their representatives 

concerning ways to improve this rule in 

Indian country. 

The Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA, Pub. L. 

104–4) requires Federal agencies to 

assess the effects of their regulatory 

actions on State, local, and Tribal 

governments or the private sector. 

Agencies generally must prepare a 

written statement, including a cost 

benefit analysis, for proposed and final 

rules with Federal mandates that may 

result in expenditures of $100 million or 

more in any 1 year for State, local, or 

Tribal governments, in the aggregate, or 

to the private sector. UMRA generally 

requires agencies to consider 

alternatives and adopt the more cost 

effective or least burdensome alternative 

that achieves the objectives of the rule. 

This rule contains no Federal mandates, 

as defined in Title II of UMRA, for State, 

local, and Tribal governments or the 

private sector. Therefore, this rule is not 

subject to the requirements of sections 

202 and 205 of UMRA. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA) 

This rule has been determined to be 

Major under the Small Business 

Regulatory Enforcement Fairness Act of 

1996, (Pub. L. 104–121) (SBREFA). 

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21096 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

SBREFA normally requires that an 

agency delay the effective date of a 

major rule for 60 days from the date of 

publication to allow for Congressional 

review. Section 808 of SBREFA allows 

an agency to make a major regulation 

effective immediately if the agency finds 

there is good cause to do so. Section 

1601(c)(3) of the 2014 Farm Bill 

provides that the authority in Section 

808 of SBREFA will be used in 

implementing the changes required by 

Title I of the 2014 Farm Bill, such as for 

the changes being made by this rule. 

Consistent with section 1601(c)(3) of the 

2014 Farm Bill, FSA therefore finds that 

it would be contrary to the public 

interest to delay implementation of this 

rule because it would significantly delay 

implementation of the program changes 

required by the 2014 Farm Bill by 

impeding the conduct of future signups 

without having these additional changes 

to the program regulations in place. 

Therefore, this rule is effective on the 

date of its publication in the Federal 

Register. 

Federal Assistance Programs 

The titles and numbers of the Federal 

Domestic Assistance Programs found in 

the Catalog of Federal Domestic 

Assistance to which this rule applies 

are: 

10.069—Conservation Reserve Program 

10.088—Livestock Indemnity Program 

10.089—Livestock Forage Disaster 

Program 

10.091—Emergency Assistance for 

Livestock, Honeybees, and FarmRaised Fish Program 

10.092—Tree Assistance Program 

10.912—Environmental Quality 

Incentives Program 

10.917—Agricultural Management 

Assistance 

Paperwork Reduction Act of 1995 

The regulations in this rule are 

exempt from the requirements of the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35), as specified in section 

1601(c) of the 2014 Farm Bill, which 

provides that these regulations be 

promulgated and administered without 

regard to the Paperwork Reduction Act. 

E-Government Act Compliance 

FSA and CCC are committed to 

complying with the E-Government Act, 

to promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. 

List of Subjects 

7 CFR Part 1400 

Agriculture, Loan programs— 

agriculture, Conservation, Price support 

programs. 

7 CFR Part 1416 

Dairy products, Indemnity payments, 

Pesticide and pests, Reporting and 

recordkeeping requirements. 

For the reasons discussed above, CCC 

and FSA amends 7 CFR parts 1400 and 

1416 as follows: 

PART 1400—PAYMENT LIMITATION 

AND PAYMENT ELIGIBILITY 

■ 1. The authority citation continues to 

read as follows: 

Authority: 7 U.S.C. 1308, 1308–1, 1308– 

2, 1308–3, 1308–3a, 1308–4, and 1308–5. 

■ 2. The heading for part 1400 is revised 

to read as set forth above. 

Subpart A—General Provisions 

■ 3. Revise § 1400.1 to read as follows: 

§ 1400.1 Applicability. 

(a) This part, except as otherwise 

noted, is applicable to all of the 

following programs and any other 

programs as specified in individual 

program regulations of this chapter: 

(1) The Agricultural Risk Coverage 

and Price Loss Coverage Programs and 

Transition Assistance for Producers of 

Upland Cotton, part 1412 of this 

chapter; 

(2) The Conservation Reserve Program 

(CRP), part 1410 of this chapter; 

(3) The Price Support programs in 

parts 1421 and 1434 of this chapter; 

(4) The Noninsured Crop Disaster 

Assistance Program (NAP), part 1437 of 

this chapter; 

(5) The Livestock Forage Disaster 

Program (LFP), Livestock Indemnity 

Program (LIP), and the Emergency 

Assistance for Livestock, Honey Bees 

and Farm-raised Fish Program (ELAP), 

part 1416 of this chapter; 

(6) The Tree Assistance Program 

(TAP), part 1416 of this chapter; and 

(7) The Natural Resources 

Conservation Service (NRCS) 

conservation programs of this title 

including the Agricultural Management 

Assistance (AMA) program, 

Conservation Stewardship Program 

(CSP), Environmental Quality Incentives 

Program (EQIP), and Agricultural 

Conservation Easement Program 

(ACEP). 

(8) Subparts C and D of this part do 

not apply to the programs listed in 

paragraphs (a)(2) through (7) of this 

section. 

(b) This part will apply to the 

programs specified in: 

(1) Paragraphs (a)(1), (3), (4), (5), and 

(7) of this section on a crop year basis; 

(2) Paragraph (a)(2) of this section on 

a fiscal year basis; 

(3) Paragraph (a)(6) of this section on 

a calendar year basis; and 

(4) Paragraph (a)(7) of this section 

when funding is available. 

(c) This part will be used to determine 

the manner in which payments will be 

attributed to persons and legal entities 

for the payment limitations provided in 

this section and to other programs as 

specified in individual program 

regulations in this chapter. 

(d) Where more than one provision of 

this part may apply, the provision that 

is most restrictive on the program 

participant will be applied. 

(e) The payment limitations of this 

part are not applicable to: 

(1) Payments made under State 

conservation reserve enhancement 

program agreements approved by the 

Secretary, and 

(2) Payments made subject to this part 

if ownership interest in land or a 

commodity is transferred as the result of 

the death of a program participant and 

the new owner of the land or 

commodity has succeeded to the 

contract of the prior owner. If the 

successor is otherwise eligible, 

payments cannot exceed the amount the 

previous owner was entitled to receive 

at the time of death. 

(f) The following amounts are the 

limitations on payments per person or 

legal entity for the applicable period for 

each payment or benefit. 

Payment or benefit 

Limitation per 

person or legal 

entity, per 

crop, program, 

or fiscal year 

(1) Price Loss Coverage, Agricultural Risk Coverage, Loan Deficiency Program, and Marketing Loan Gain payments (other than 

Peanuts) ........................................................................................................................................................................................... $125,000 

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Payment or benefit 

Limitation per 

person or legal 

entity, per 

crop, program, 

or fiscal year 

(2) Price Loss Coverage, Agricultural Risk Coverage, Loan Deficiency Program, and Marketing Loan Gain payments for Peanuts ................................................................................................................................................................................................... 125,000 

(3) Transition Assistance for Producers of Upland Cotton 1 ............................................................................................................... 40,000 

(4) CRP annual rental payments 2 ....................................................................................................................................................... 50,000 

(5) NAP payments ............................................................................................................................................................................... 125,000 

(6) TAP ................................................................................................................................................................................................ 125,000 

(7) LIP, LFP, and ELAP3 .................................................................................................................................................................... 125,000 

(8) CSP4 .............................................................................................................................................................................................. 200,000 

(9) EQIP5 ............................................................................................................................................................................................. 450,000 

(10) AMA program 6. ............................................................................................................................................................................ 50,000 

1Transition Assistance for Producers of Upland Cotton is only available in the 2014 and 2015 program years. 

2 CRP contracts approved prior to October 1, 2008 may exceed the limitation, subject to payment limitation rules in effect on the date of contract approval. 3Total payments received through LIP, LFP, and ELAP may not exceed $125,000. A separate limitation applies to TAP payments. (NOTE: For 

SURE payments for losses on or before September 30, 2011, the payment limit regulations in effect when those losses occurred apply. The 

SURE limit is separate from the payment limitation amount applicable to the LIP, LFP, TAP, and ELAP benefits authorized under the 2014 Farm 

Bill.) 4The $200,000 limit is the total limit under all CSP contracts entered into subsequent to enactment of the 2014 Farm Bill during fiscal years 

2014 through 2018. 5The $450,000 limit is the total limit under all EQIP contracts entered into subsequent to enactment of the 2014 Farm Bill during fiscal years 

2014 through 2018. 6The $50,000 limit is the total limit that a participant may receive under the AMA program in any fiscal year. 

■ 4. Amend § 1400.3 as follows: 

■ a. Remove the definitions for 

‘‘Average Adjusted Gross Farm Income’’ 

and ‘‘Average Adjusted Gross Nonfarm 

Income’’; and 

■ b. Revise the definition for ‘‘Payment’’ 

to read as follows: 

§ 1400.3 Definitions. 

* * * * * 

Payment means: 

(1) Payments made in accordance 

with part 1412 of this chapter or 

successor regulation of this chapter; 

(2) CRP annual rental payments made 

in accordance with part 1410 of this 

chapter or successor regulation of this 

chapter; 

(3) NAP payments made in 

accordance with part 1437 of this 

chapter or successor regulation of this 

chapter; 

(4) ELAP, LIP, LFP, and TAP 

payments made in accordance with part 

1416 of this chapter or successor 

regulations of this chapter: 

(5) Price support payments made in 

accordance with parts 1421 and 1434 of 

this chapter; and 

(6) For other programs, any payments 

designated in individual program 

regulations in this chapter. 

* * * * * 

Subpart F—Average Adjusted Gross 

Income Limitation 

■ 5. Amend § 1400.500 as follows: 

■ a. Revise paragraphs (a) and (b); 

■ b. Remove paragraph (c) through (e); 

and 

■ c. Redesignate paragraphs (f) through 

(h) as paragraphs (c) through (e). 

The revisions read as follows: 

§ 1400.500 Applicability. 

(a) A person or legal entity, other than 

a joint venture or general partnership, 

will not be eligible to receive, directly 

or indirectly, certain program payments 

or benefits described in § 1400.1 if the 

average adjusted gross income of the 

person or legal entity exceeds $900,000 

for the 3 taxable years preceding the 

most immediately preceding complete 

taxable year, as determined by the 

Deputy Administrator. 

(b) Determinations made under this 

subpart for conservation programs are: 

(1) Applicable starting with the 2015 

fiscal year, except for AMA which is 

applicable with the 2014 fiscal year; 

(2) Based on the year for which the 

conservation program contract or 

agreement is approved; and 

(3) Applicable for the entire term of 

the subject agreement or contract. 

* * * * * 

■ 6. Amend § 1400.501 as follows: 

■ a. Revise paragraph (a) introductory 

text; 

■ b. Remove paragraphs (a)(1) through 

(12), (b), and (c) introductory text; 

■ b. Redesignate paragraphs (c)(1) 

through (6) as (a)(1) through (6); and 

■ d. Redesignate paragraph (d) as 

paragraph (b). 

The revision reads as follows: 

§ 1400.501 Determination of average 

adjusted gross income. 

(a) Except as otherwise provided in 

this subpart, average adjusted gross 

income means: 

* * * * * 

§ 1400.502 [Amended] 

■ 7. Amend § 1400.502 as follows: 

■ a. In paragraph (a)(3), at the end, 

remove the word ‘‘or’’; and 

■ b. In paragraph (c), remove the words 

‘‘provide necessary and accurate 

information to verify compliance, or 

failure to’’. 

■ 8. Revise part 1416 to read as follows: 

PART 1416—EMERGENCY 

AGRICULTURAL DISASTER 

ASSISTANCE PROGRAMS 

Subpart A—General Provisions for 

Supplemental Agricultural Disaster 

Assistance Programs 

Sec. 

1416.1 Applicability. 

1416.2 Administration of ELAP, LFP, LIP, 

and TAP. 

1416.3 Eligible producer. 

1416.5 Equitable relief. 

1416.6 Payment limitation. 

1416.7 Misrepresentation. 

1416.8 Appeals. 

1416.9 Offsets, assignments, and debt 

settlement. 

1416.10 Records and inspections. 

1416.11 Refunds; joint and several liability. 

1416.12 Minors. 

1416.13 Deceased individuals or dissolved 

entities. 

1416.14 Miscellaneous. 

Subpart B—Emergency Assistance for 

Livestock, Honeybees, and Farm-Raised 

Fish Program 

1416.101 Applicability. 

1416.102 Definitions. 

1416.103 Eligible losses, adverse weather, 

and other loss conditions. 

1416.104 Eligible livestock, honeybees, and 

farm-raised fish. 

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1416.105 Eligible producers, owners, and 

contract growers. 

1416.106 Notice of loss and application 

process. 

1416.107 Notice of loss and application 

period. 

1416.108 Availability of funds. 

1416.109 National Payment Rate. 

1416.110 Livestock payment calculations. 

1416.111 Honeybee payment calculations. 

1416.112 Farm-raised fish payment 

calculations. 

Subpart C—Livestock Forage Disaster 

Program 

1416.201 Applicability. 

1416.202 Definitions. 

1416.203 Eligible livestock producer. 

1416.204 Covered livestock. 

1416.205 Eligible grazing losses. 

1416.206 Application for payment. 

1416.207 Payment calculation. 

Subpart D—Livestock Indemnity Program 

1416.301 Applicability. 

1416.302 Definitions. 

1416.303 Eligible owners and contract 

growers. 

1416.304 Eligible livestock. 

1416.305 Application process. 

1416.306 Payment calculation. 

Subpart E—Tree Assistance Program 

1416.400 Applicability. 

1416.401 Administration. 

1416.402 Definitions. 

1416.403 Eligible losses. 

1416.404 Eligible orchardists and nursery 

tree growers. 

1416.405 Application. 

1416.406 Payment Calculation. 

1416.407 Obligations of a Participant. 

Authority: Title III, Pub. L. 109–234, 120 

Stat. 474; 16 U.S.C. 3801, note. 

Subpart A—General Provisions for 

Supplemental Agricultural Disaster 

Assistance Programs 

§ 1416.1 Applicability. 

(a) This subpart establishes general 

conditions for this subpart and subparts 

B through E of this part and applies only 

to those subparts. Subparts B through E 

cover the following programs authorized 

by the Agricultural Act of 2014 (Pub. L. 

113–79, also referred to as the 2014 

Farm Bill): 

(1) Emergency Assistance for 

Livestock, Honeybees, and Farm-Raised 

Fish Program (ELAP); 

(2) Livestock Forage Disaster Program 

(LFP); 

(3) Livestock Indemnity Payments 

Program (LIP); and 

(4) Tree Assistance Program (TAP). 

(b) To be eligible for payments under 

these programs, participants must 

comply with all provisions under this 

subpart and the relevant particular 

subpart for that program. All other 

provisions of law also apply. 

§ 1416.2 Administration of ELAP, LFP, LIP, 

and TAP. 

(a) The programs in subparts B 

through E of this part will be 

administered under the general 

supervision and direction of the 

Administrator, Farm Service Agency 

(FSA) (who also serves as the Executive 

Vice-President, CCC), and the Deputy 

Administrator for Farm Programs, FSA 

(referred to as the ‘‘Deputy 

Administrator’’ in this part). 

(b) FSA representatives do not have 

authority to modify or waive any of the 

provisions of the regulations of this part 

as amended or supplemented, except as 

specified in paragraph (e) of this 

section. 

(c) The State FSA committee will take 

any action required by the regulations of 

this part that the county FSA committee 

has not taken. The State FSA committee 

will also: 

(1) Correct, or require a county FSA 

committee to correct, any action taken 

by such county FSA committee that is 

not in accordance with the regulations 

of this part or 

(2) Require a county FSA committee 

to withhold taking any action that is not 

in accordance with this part. 

(d) No provision or delegation to a 

State or county FSA committee will 

preclude the FSA Administrator, the 

Deputy Administrator, or a designee or 

other such person, from determining 

any question arising under the programs 

of this part, or from reversing or 

modifying any determination made by a 

State or county FSA committee. 

(e) The Deputy Administrator may 

authorize State and county FSA 

committees to waive or modify nonstatutory deadlines, or other program 

requirements of this part in cases where 

lateness or failure to meet such 

requirements does not adversely affect 

operation of the programs in this part. 

Participants have no right to an 

exception under this provision. The 

Deputy Administrator’s refusal to 

consider cases or circumstances or 

decision not to exercise this 

discretionary authority under this 

provision will not be considered an 

adverse decision and is not appealable. 

§ 1416.3 Eligible producer. 

(a) In general, the term ‘‘eligible 

producer’’ means, in addition to other 

requirements as may apply, an 

individual or entity described in 

paragraph (b) of this section that, as 

determined by the Secretary, assumes 

the production and market risks 

associated with the agricultural 

production of crops or livestock on a 

farm either as the owner of the farm, 

when there is no contract grower, or a 

contract grower of the livestock when 

there is a contract grower. 

(b) To be eligible for benefits, an 

individual or legal entity must submit a 

farm operating plan for the purpose of 

payment limitation review in 

accordance with part 1400 of this 

chapter and be a: 

(1) Citizen of the United States; 

(2) Resident alien; for purposes of this 

part, resident alien means ‘‘lawful 

alien’’; 

(3) Partnership of citizens of the 

United States; or 

(4) Corporation, limited liability 

corporation, or other farm 

organizational structure organized 

under State law. 

§ 1416.5 Equitable relief. 

The equitable relief provisions of part 

718 of this title will not be used to 

obtain a different program result, 

payment, or benefit not otherwise 

available to a participant who satisfies 

any and all program eligibility 

provision, conditions of eligibility, or 

compliance provision. 

§ 1416.6 Payment limitation. 

(a) For 2011, no person or legal entity, 

excluding a joint venture or general 

partnership, as determined according to 

the rules in part 1400 of this chapter 

may receive more than: 

(1) $125,000 total in 2011 program 

year payments under LFP, SURE, ELAP, 

and LIP combined when at least $25,000 

of such total 2011 program year 

payments is from LFP or LIP for losses 

from October 1 through December 31, 

2011. If no 2011 program year payments 

are issued under LFP or LIP for losses 

occurring from October 1, 2011, through 

December 31, 2011, the total amount of 

2011 program year payments under LFP, 

SURE, ELAP, and LIP combined is 

limited to $100,000. 

(2) $125,000 for the 2011 program 

year under TAP. 

(b) For 2012 and subsequent program 

years, no person or legal entity, 

excluding a joint venture or general 

partnership, as determined by the rules 

in part 1400 of this chapter may receive, 

directly or indirectly, more than: 

(1) $125,000 per program year total 

under ELAP, LFP, and LIP combined; or 

(2) $125,000 per program year under 

TAP. 

(c) The Deputy Administrator may 

take such actions as needed to avoid a 

duplication of benefits under the 

programs provided for in this part, or 

duplication of benefits received in other 

programs, and may impose such crossprogram payment limitations as may be 

consistent with the intent of this part. 

(d) Beginning with the 2014 program 

year, if a producer is eligible to receive 

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benefits under this part is also eligible 

to receive assistance for the same loss 

under any other program, including, but 

not limited to, indemnities made under 

the Federal Crop Insurance Act (7 U.S.C. 

1501–1524) or the noninsured crop 

disaster assistance program (7 U.S.C. 

7333), then the producer must elect 

whether to receive benefits under this 

part or under the other program, but not 

both. 

(e) For losses incurred beginning on 

October 1, 2011, and for the purposes of 

administering LIP, LFP, ELAP, and TAP, 

the average adjusted gross income (AGI) 

limitation provisions in part 1400 of this 

chapter relating to limits on payments 

for persons or legal entities, excluding 

joint ventures and general partnerships, 

with certain levels of AGI will apply 

under this subpart and will apply to 

each applicant for ELAP, LFP, LIP, and 

TAP. Specifically, a person or legal 

entity with an average AGI that exceeds 

$900,000 will not be eligible to receive 

benefits under this part. 

(f) The direct attribution provisions in 

part 1400 of this chapter apply to ELAP, 

LFP, LIP, and TAP. Under those rules, 

any payment to any legal entity will also 

be considered for payment limitation 

purposes to be a payment to persons or 

legal entities with an interest in the 

legal entity or in a sub-entity. If any 

such interested person or legal entity is 

over the payment limitation because of 

payment made directly or indirectly or 

a combination thereof, then the payment 

to the actual payee will be reduced 

commensurate with the amount of the 

interest of the interested person in the 

payee. Likewise, by the same method, if 

anyone with a direct or indirect interest 

in a legal entity or sub-entity of a payee 

entity exceeds the AGI levels that would 

allow a participant to directly receive a 

payment under this part, then the 

payment to the actual payee will be 

reduced commensurately with that 

interest. For all purposes under this 

section, unless otherwise specified in 

part 1400 of this chapter, the AGI figure 

that will be relevant for a person or legal 

entity will be an average AGI for the 

three taxable years that precede the 

most immediately preceding complete 

taxable year, as determined by FSA. 

§ 1416.7 Misrepresentation. 

(a) A participant who is determined to 

have deliberately misrepresented any 

fact affecting a program determination 

made in accordance with this part, or 

any other part that is applicable to this 

part, to receive benefits for which the 

participant would not otherwise be 

entitled, will not be entitled to program 

payments and must refund all such 

payments received, plus interest as 

determined in accordance with part 

1403 of this chapter. The participant 

will also be denied program benefits for 

the immediately subsequent period of at 

least 2 crop years, and up to 5 crop 

years. Interest will run from the date of 

the original disbursement by CCC. 

(b) A participant will refund to CCC 

all program payments, in accordance 

with § 1416.11, received by such 

participant with respect to all contracts 

or applications, as may be applicable, if 

the participant is determined to have 

knowingly misrepresented any fact 

affecting a program determination. 

§ 1416.8 Appeals. 

Appeal regulations in parts 11 and 

780 of this title apply to this part. 

§ 1416.9 Offsets, assignments, and debt 

settlement. 

(a) Any payment to any participant 

under this part will be made without 

regard to questions of title under State 

law, and without regard to any claim or 

lien against the commodity, or proceeds, 

in favor of the owner or any other 

creditor except agencies of the U.S. 

Government. The regulations governing 

offsets and withholdings in part 1403 of 

this chapter apply to payments made 

under this part. 

(b) Any participant entitled to any 

payment may assign any payment(s) in 

accordance with regulations governing 

the assignment of payments in part 1404 

of this chapter. 

§ 1416.10 Records and inspections. 

(a) Any participant receiving 

payments under any program in ELAP, 

LFP, LIP or TAP, or any other legal 

entity or person who provides 

information for the purposes of enabling 

a participant to receive a payment under 

ELAP, LFP, LIP, or TAP must: 

(1) Maintain any books, records, and 

accounts supporting the information for 

3 years following the end of the year 

during which the request for payment 

was submitted, and 

(2) Allow authorized representatives 

of USDA and the Government 

Accountability Office, during regular 

business hours, to inspect, examine, and 

make copies of such books or records, 

and to enter the farm and to inspect and 

verify all applicable livestock and 

acreage in which the participant has an 

interest for the purpose of confirming 

the accuracy of information provided by 

or for the participant. 

(b) [Reserved] 

§ 1416.11 Refunds; joint and several 

liability. 

(a) In the event that the participant 

fails to comply with any term, 

requirement, or condition for payment 

or assistance arising under ELAP, LFP, 

LIP, or TAP and if any refund of a 

payment to CCC will otherwise become 

due in connection with this part, the 

participant must refund to CCC all 

payments made in regard to such 

matter, together with interest and latepayment charges as provided for in part 

1403 of this chapter provided that 

interest will in all cases run from the 

date of the original disbursement. 

(b) All persons with a financial 

interest in an operation or in an 

application for payment will be jointly 

and severally liable for any refund, 

including related charges, that is 

determined to be due CCC for any 

reason under this part. 

§ 1416.12 Minors. 

A minor child is eligible to apply for 

program benefits under ELAP, LFP, LIP, 

or TAP if all the eligibility requirements 

are met and the provision for minor 

children in part 1400 of this chapter are 

met. 

§ 1416.13 Deceased individuals or 

dissolved entities. 

(a) Payments may be made for eligible 

losses suffered by an eligible participant 

who is now a deceased individual or is 

a dissolved entity if a representative, 

who currently has authority to act on 

behalf of the estate of the deceased 

participant, signs the application for 

payment. 

(b) Legal documents showing proof of 

authority to sign for the deceased 

individual or dissolved entity must be 

provided. 

(c) If a participant is now a dissolved 

general partnership or joint venture, all 

members of the general partnership or 

joint venture at the time of dissolution 

or their duly authorized representatives 

must sign the application for payment. 

§ 1416.14 Miscellaneous. 

(a) As a condition to receive benefits 

under ELAP, LFP, LIP, or TAP, a 

participant must have been in 

compliance with the applicable 

provisions of parts 12 and 718 of this 

title and 1400 of this chapter, and must 

not otherwise be precluded from 

receiving benefits under those 

provisions or under any law. 

(b) [Reserved] 

Subpart B—Emergency Assistance for 

Livestock, Honeybees, and FarmRaised Fish Program 

§ 1416.101 Applicability. 

(a) This subpart establishes the terms 

and conditions under which the 

Emergency Assistance for Livestock, 

Honeybees, and Farm-Raised Fish 

Program (ELAP) will be administered. 

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(b) Eligible producers of livestock, 

honeybees, and farm-raised fish will be 

compensated for eligible losses due to 

an eligible adverse weather or eligible 

loss condition that occurred in the 

program year for which the producer 

requests benefits. The eligible loss must 

have been a direct result of eligible 

adverse weather or eligible loss 

conditions as determined by the Deputy 

Administrator. ELAP does not cover 

losses that are covered under LFP or 

LIP. 

§ 1416.102 Definitions. 

The following definitions apply to 

this subpart and to the administration of 

ELAP. The definitions in parts 718 of 

this title and 1400 of this chapter also 

apply, except where they conflict with 

the definitions in this section. 

Adult beef bull means a male beef 

breed bovine animal that was used for 

breeding purposes that was at least 2 

years old before the beginning date of 

the eligible adverse weather or eligible 

loss condition. 

Adult beef cow means a female beef 

breed bovine animal that had delivered 

one or more offspring before the 

beginning date of the eligible adverse 

weather or eligible loss condition. A 

first-time bred beef heifer is also 

considered an adult beef cow if it was 

pregnant on or by the beginning date of 

the eligible adverse weather or eligible 

loss condition. 

Adult buffalo and beefalo bull means 

a male animal of those breeds that was 

used for breeding purposes and was at 

least 2 years old before the beginning 

date of the eligible adverse weather or 

eligible loss condition. 

Adult buffalo and beefalo cow means 

a female animal of those breeds that had 

delivered one or more offspring before 

the beginning date of the eligible 

adverse weather or eligible loss 

condition. A first-time bred buffalo or 

beefalo heifer is also considered an 

adult buffalo or beefalo cow if it was 

pregnant by the beginning date of the 

eligible adverse weather or eligible loss 

condition. 

Adult dairy bull means a male dairy 

breed bovine animal that was used 

primarily for breeding dairy cows and 

was at least 2 years old by the beginning 

date of the eligible adverse weather or 

eligible loss condition. 

Adult dairy cow means a female 

bovine dairy breed animal used for the 

purpose of providing milk for human 

consumption that had delivered one or 

more offspring by the beginning date of 

the eligible adverse weather or eligible 

loss condition. A first-time bred dairy 

heifer is also considered an adult dairy 

cow if it was pregnant by the beginning 

date of the eligible adverse weather or 

eligible loss condition. 

Agricultural operation means a 

farming operation. 

APHIS means the Animal and Plant 

Health Inspection Service. 

Application means CCC or FSA form 

used to apply for either the emergency 

loss assistance for livestock or 

emergency loss assistance for farmraised fish or honeybees. 

Aquatic species means any species of 

aquatic organism grown as food for 

human consumption, fish raised as feed 

for fish that are consumed by humans, 

or ornamental fish propagated and 

reared in an aquatic medium by a 

commercial operator on private property 

in water in a controlled environment. 

Catfish and crawfish are both defined as 

aquatic species for ELAP. However, 

aquatic species do not include reptiles 

or amphibians. 

Bait fish means small fish caught for 

use as bait to attract large predatory fish. 

For ELAP, it also must meet the 

definition of aquatic species and not be 

raised as food for fish; provided, 

however, that only bait fish produced in 

a controlled environment are eligible for 

payment under ELAP. 

Beginning farmer or rancher means a 

person or legal entity, including all 

members, shareholders, partners, 

beneficiaries, etc., (as fits the 

circumstances) of an entity, who for a 

program year both: 

(1) Has not operated a farm or ranch 

in the previous consecutive 10 years, 

and 

(2) Will have or has had for the 

relevant period materially and 

substantially participated in the 

operation of a farm or ranch. 

Buck means a male goat. 

Cattle tick fever means a severe and 

often fatal disease that destroys red 

blood cells of cattle, commonly known 

as Texas or cattle fever, which is spread 

by Rhipicephalus (Boophilus) 

annulatus, and the southern cattle tick, 

R. (Boophilus) microplus. 

Commercial use means used in the 

operation of a business activity engaged 

in as a means of livelihood for profit by 

the eligible producer. 

Contract means, with respect to 

contracts for the handling of livestock, 

a written agreement between a livestock 

owner and another individual or entity 

setting the specific terms, conditions, 

and obligations of the parties involved 

regarding the production of livestock or 

livestock products. 

Controlled environment means an 

environment in which everything that 

can practicably be controlled by the 

participant with structures, facilities, 

and growing media (including, but not 

limited to, water and nutrients) was in 

fact controlled by the participant at the 

time of the eligible adverse weather or 

eligible loss condition. 

County committee or county office 

means the respective FSA committee or 

office. 

Deputy Administrator or DAFP means 

the Deputy Administrator for Farm 

Programs, Farm Service Agency, U.S. 

Department of Agriculture or the 

designee. 

Eligible adverse weather means, as 

determined by the Deputy 

Administrator, an extreme or abnormal 

damaging weather event that is not 

expected to occur during the loss 

period, which results in eligible losses. 

The eligible adverse weather would 

have resulted in agricultural losses not 

covered by other programs in this part 

for which the Deputy Administrator 

determines financial assistance should 

be provided to producers. Adverse 

weather may include, but is not limited 

to, blizzard, winter storms, and 

wildfires. Specific eligible adverse 

weather may vary based on the type of 

loss. Identification of eligible adverse 

weather will include locations 

(National, State, or county-level) and 

start and end dates. 

Eligible drought means that any area 

of the county has been rated by the U.S. 

Drought Monitor as having a D3 

(extreme drought) intensity: 

(1) At any time during the program 

year, for additional honeybee feed loss; 

(2) That directly impacts water 

availability at any time during the 

normal grazing period (for example, 

snow pack that feeds streams and 

springs), as determined by the Deputy 

Administrator or designee, for losses 

resulting from transporting water to 

livestock. 

Eligible grazing land means land that 

is native or improved pastureland with 

permanent vegetative cover or land 

planted to a crop planted specifically for 

the purpose of providing grazing for 

eligible livestock. 

Eligible loss condition means a 

condition that would have resulted in 

agricultural losses not covered by other 

programs in this part for which the 

Deputy Administrator determines 

financial assistance needs to be 

provided to producers. Specific eligible 

loss conditions include, but are not 

limited to, disease (including cattle tick 

fever), insect infestation, and colony 

collapse disorder. Identification of 

eligible loss conditions will include 

locations (National, State, or countylevel) and start and end dates. 

Eligible winter storm means a storm 

that lasts for at least three consecutive 

days and is accompanied by high winds, 

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freezing rain or sleet, heavy snowfall, 

and extremely cold temperatures. 

Equine animal means a domesticated 

horse, mule, or donkey. 

Ewe means a female sheep. 

Farming operation means a business 

enterprise engaged in producing 

agricultural products. 

Farm-raised fish means any aquatic 

species that is propagated and reared in 

a controlled environment. 

FSA means the Farm Service Agency. 

Game or sport fish means fish 

pursued for sport by recreational 

anglers; provided, however, that only 

game or sport fish produced in a 

controlled environment can generate 

claims under ELAP. 

Goat means a domesticated, ruminant 

mammal of the genus Capra, including 

Angora goats. Goats are further 

delineated into categories by sex (bucks 

and nannies) and age (kids). 

Grazing loss means the value, as 

calculated in § 1416.110(g) or (m), of 

eligible grazing lost due to an eligible 

adverse weather or eligible loss 

condition based on the number of days 

that the eligible livestock were not able 

to graze the eligible grazing land during 

the normal grazing period. 

Kid means a goat less than 1 year old. 

Lamb means a sheep less than 1 year 

old. 

Limited resource farmer or rancher 

means a producer who is both: 

(1) A producer whose direct or 

indirect gross farm sales do not exceed 

$176,800 (2014 program year) in each of 

the 2 calendar years that precede the 

complete taxable year before the 

relevant program year (for example, for 

the 2014 program year, the two years 

would be 2012 and 2011), adjusted 

upwards in later years for any general 

inflation, and 

(2) A producer whose total household 

income was at or below the national 

poverty level for a family of four in each 

of the same two previous years 

referenced in paragraph (1) of this 

definition. (Limited resource farmer or 

rancher status can be determined using 

a Web site available through the Limited 

Resource Farmer and Rancher Online 

Self Determination Tool through 

National Resource and Conservation 

Service at http://

www.lrftool.sc.egov.usda.gov/tool.aspx.) 

Livestock owner, for death loss 

purposes, means one having legal 

ownership of the livestock for which 

benefits are being requested on the day 

such livestock died due to an eligible 

adverse weather or eligible loss 

condition. For all other purposes of loss 

under ELAP, ‘‘livestock owner’’ means 

one having legal ownership of the 

livestock for which benefits are being 

requested during the 60 days prior to 

the beginning date of the eligible 

adverse weather or eligible loss 

condition. 

Nanny means a female goat. 

Non-adult beef cattle means a beef 

breed bovine animal that does not meet 

the definition of adult beef cow or bull. 

Non-adult beef cattle are further 

delineated by weight categories of either 

less than 400 pounds or 400 pounds or 

more at the time they died. For a loss 

other than death, means a bovine animal 

less than 2 years old that that weighed 

500 pounds or more on or before the 

beginning date of the eligible adverse 

weather or eligible loss condition. 

Non-adult buffalo or beefalo means an 

animal of those breeds that does not 

meet the definition of adult buffalo or 

beefalo cow or bull. Non-adult buffalo 

or beefalo are further delineated by 

weight categories of either less than 400 

pounds or 400 pounds or more at the 

time of death. For a loss other than 

death, means an animal of those breeds 

that is less than 2 years old that weighed 

500 pounds or more on or before the 

beginning date of the eligible adverse 

weather or eligible loss condition. 

Non-adult dairy cattle means a bovine 

dairy breed animal used for the purpose 

of providing milk for human 

consumption that does not meet the 

definition of adult dairy cow or bull. 

Non-adult dairy cattle are further 

delineated by weight categories of either 

less than 400 pounds or 400 pounds or 

more at the time they died. For a loss 

other than death, means a bovine dairy 

breed animal used for the purpose of 

providing milk for human consumption 

that is less than 2 years old that weighed 

500 pounds or more on or before the 

beginning date of the eligible adverse 

weather or eligible loss condition. 

Normal grazing period, with respect 

to a county, means the normal grazing 

period during the calendar year with 

respect to each specific type of grazing 

land or pastureland in the county. 

Normal mortality means the 

numerical amount, computed by a 

percentage of expected livestock, 

honeybee colony and farm-raised fish 

deaths, by category, that normally occur 

during a program year for a producer, as 

established for the area by the FSA State 

Committee for livestock and farm-raised 

fish, and as established nationwide by 

the Deputy Administrator for honeybee 

colonies. 

Poultry means domesticated chickens, 

turkeys, ducks, and geese. Poultry are 

further delineated into categories by sex, 

age, and purpose of production as 

determined by FSA. 

Program year means from October 1 

through September 30 of the fiscal year 

in which the loss occurred. 

Ram means a male sheep. 

Reliable record means any nonverifiable record available that 

reasonably supports the eligible loss, as 

determined acceptable by the COC. 

Secretary means the Secretary of 

Agriculture or a designee of the 

Secretary. 

Sheep means a domesticated, 

ruminant mammal of the genus Ovis. 

Sheep are further defined by sex (rams 

and ewes) and age (lambs) for purposes 

of dividing into categories for loss 

calculations. 

Socially disadvantaged farmer or 

rancher means a farmer or rancher who 

is a member of a socially disadvantaged 

group whose members have been 

subjected to racial, ethnic, or gender 

prejudice because of their identity as 

members of a group without regard to 

their individual qualities. For a legal 

entity to be considered ‘‘socially 

disadvantaged’’ a majority of the 

persons in the entity must in their 

individual capacities meet this 

definition. Socially disadvantaged 

groups include the following and no 

others unless approved in writing by the 

Deputy Administrator: 

(1) American Indians or Alaskan 

Natives; 

(2) Asians or Asian-Americans; 

(3) Blacks or African Americans; 

(4) Native Hawaiians or other Pacific 

Islanders, 

(5) Hispanics; and 

(6) Women. 

State committee, State office, county 

committee, or county office means the 

respective FSA committee or office. 

Swine means a domesticated 

omnivorous pig, hog, or boar. Swine for 

purposes of dividing into categories for 

loss calculations are further delineated 

into categories by sex and weight as 

determined by FSA. 

United States means all 50 States of 

the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico and any other territory or 

possession of the United States. 

U.S. Drought Monitor is a system for 

classifying drought severity according to 

a range of abnormally dry to exceptional 

drought. It is a collaborative effort 

between Federal and academic partners, 

produced on a weekly basis, to 

synthesize multiple indices, outlooks, 

and drought impacts on a map and in 

narrative form. This synthesis of indices 

is reported by the National Drought 

Mitigation Center at http://

droughtmonitor.unl.edu. Should an 

eligible area not be covered by the U.S. 

Drought Monitor, the Deputy 

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Administrator, in consultation with 

appropriate weather-related agencies 

and experts, will establish procedures 

for rating drought intensity using the 

same range of categories as the U.S. 

Drought Monitor and use this 

information in place of the missing data 

for eligibility purposes. 

Verifiable record means a document 

provided by the producer that can be 

verified by the County Committee (COC) 

through an independent source and is 

used to substantiate the claimed loss. 

§ 1416.103 Eligible losses, adverse 

weather, and other loss conditions. 

(a) An eligible loss covered under this 

subpart is a loss that an eligible 

producer or contract grower of livestock, 

honeybees, or farm-raised fish incurs 

due to an eligible adverse weather or 

eligible loss condition, as determined by 

the Deputy Administrator. 

(b) A loss covered under LFP or LIP 

is not eligible for ELAP. 

(c) To be eligible, the loss must have 

occurred during the program year for 

which payment is being requested. 

(d) For a livestock feed loss to be 

considered an eligible loss, the livestock 

feed loss must be one of the following: 

(1) Loss of purchased forage or 

feedstuffs that was intended for use as 

feed for the participant’s eligible 

livestock as specified in § 1416.104(a) 

that was physically located in the 

county where the eligible adverse 

weather or eligible loss condition 

occurred on the beginning date of the 

eligible adverse weather or eligible loss 

condition. The loss must be due to an 

eligible adverse weather or eligible loss 

condition, as determined by the Deputy 

Administrator, including, but not 

limited to, blizzard, eligible winter 

storms, flood, hurricane, lightning, tidal 

surge, tornado, volcanic eruption, or 

wildfire on non-Federal land; 

(2) Loss of mechanically harvested 

forage or feedstuffs intended for use as 

feed for the participant’s eligible 

livestock as specified in § 1416.104(a) 

that was physically located in the 

county where the eligible adverse 

weather or eligible loss condition 

occurred on the beginning date of the 

eligible adverse weather or eligible loss 

condition. The loss must have occurred 

after harvest due to an eligible adverse 

weather or eligible loss condition, as 

determined by the Deputy 

Administrator, including, but not 

limited to, blizzard, eligible winter 

storms, flood, hurricane, lightning, tidal 

surge, tornado, volcanic eruption, or 

wildfire on non-Federal land; 

(3) A loss resulting from the 

additional cost of purchasing additional 

livestock feed, above normal quantities, 

required to maintain the eligible 

livestock as specified in § 1416.104(a) 

during an eligible adverse weather or 

eligible loss condition, until additional 

livestock feed becomes available, as 

determined by the Deputy 

Administrator. To be eligible, the 

additional feed purchased above normal 

quantities must be feed that is fed to 

maintain livestock in the county where 

the eligible adverse weather or eligible 

loss condition occurred. Eligible adverse 

weather or eligible loss conditions, as 

determined by the Deputy 

Administrator, including, but not 

limited to, blizzard, eligible winter 

storms, flood, hurricane, lightning, tidal 

surge, tornado, volcanic eruption, or 

wildfire on non-Federal land; 

(4) A loss resulting from the 

additional cost incurred for transporting 

livestock feed to eligible livestock as 

specified in § 1416.104(a) due to an 

eligible adverse weather or eligible loss 

condition, as determined by the Deputy 

Administrator, including, but not 

limited to, costs associated with 

equipment rental fees for hay lifts and 

snow removal. To be eligible, the loss 

must be incurred in combination with a 

loss described in paragraphs (d)(1), (2), 

or (3) of this section. The additional 

costs incurred must have been incurred 

for losses suffered in the county where 

the eligible adverse weather or eligible 

loss condition occurred. Eligible adverse 

weather or eligible loss conditions, as 

determined by the Deputy 

Administrator, include, but not limited 

to, blizzard, eligible winter storms, 

flood, hurricane, lightning, tidal surge, 

tornado, volcanic eruption, or wildfire 

on non-Federal land; 

(5) For 2014 and subsequent program 

years, a loss resulting from the 

additional cost of transporting water to 

eligible livestock as specified in 

§ 1416.104(a) due to an eligible drought, 

including, but not limited to, costs 

associated with water transport 

equipment rental fees, labor, and 

contracted water transportation fees. 

The cost of the water is not eligible for 

payment. Transporting water to 

livestock located on land enrolled in 

CRP is not an eligible loss under this 

program. To be eligible for additional 

cost of transporting water to eligible 

livestock, the livestock must be on 

eligible grazing lands that meet all of the 

following: 

(i) Physically located in the county 

where the eligible adverse weather or 

eligible loss condition occurred; 

(ii) That had adequate livestock 

watering systems or facilities before the 

eligible adverse weather or eligible loss 

condition occurred; and 

(iii) That the producer is not normally 

required to transport water to the 

grazing land. 

(e) For a grazing loss to be considered 

eligible, the grazing loss must have been 

incurred: 

(1) During the normal grazing period, 

as specified in § 1416.102; 

(2) On eligible grazing land that is 

physically located in the county where 

the eligible adverse weather or eligible 

loss condition occurred; 

(3) Due to an eligible adverse weather 

or eligible loss condition, as determined 

by the Deputy Administrator, including, 

but not limited to, blizzard, eligible 

winter storm, flood, hurricane, hail, 

lightning, tidal surge, volcanic eruption, 

and wildfire on non-Federal land. The 

grazing loss will not be eligible if it is 

due to an adverse weather condition 

covered by LFP as specified in subpart 

C of this part, such as drought or 

wildfire on federally managed land 

where the producer is prohibited by the 

Federal agency from grazing the 

normally permitted livestock on the 

managed rangeland due to a fire. 

(f) For a loss resulting from the 

additional cost associated with 

gathering livestock to treat for cattle tick 

fever, the livestock treated for cattle tick 

fever must be considered eligible 

livestock as specified in § 1416.104(d). 

To be considered an eligible loss, 

acceptable records, as determined by the 

Deputy Administrator, must be on file 

with APHIS, that provide the number of 

livestock treated for cattle tick fever and 

the number of treatments given during 

the program year. 

(g) For a loss due to livestock death 

to be considered eligible, the livestock 

death must have occurred in the county 

where the eligible loss condition 

occurred. The livestock death must be 

in excess of normal mortality and due 

to an eligible loss condition determined 

as eligible by the Deputy Administrator 

and not related to eligible adverse 

weather, as specified in subpart D of 

this part for LIP. 

(h) For honeybee feed or farm-raised 

fish feed losses to be considered an 

eligible loss, the honeybee feed or farmraised fish feed loss must be one of the 

following: 

(1) Loss of honeybee feed or farmraised fish feed that was intended as 

feed for the participant’s eligible 

honeybees or farm-raised fish that was 

physically located in the county where 

the eligible adverse weather or eligible 

loss condition occurred on the 

beginning date of the eligible adverse 

weather or eligible loss condition. The 

loss must be due to an eligible adverse 

weather or eligible loss condition, as 

determined by the Deputy 

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Administrator, including, but not 

limited to, earthquake, flood, hurricane, 

lightning, tidal surge, tornado, volcanic 

eruption, and wildfire. 

(2) A loss resulting from the 

additional cost of purchasing additional 

honeybee feed, above normal quantities, 

required to maintain the honeybees 

during an eligible adverse weather or 

eligible loss condition, until additional 

honeybee feed becomes available, as 

determined by the Deputy 

Administrator. To be eligible the 

additional feed purchased above normal 

quantities must be feed that is fed to 

maintain honeybees in the county 

where the eligible adverse weather or 

eligible loss condition occurred. The 

loss must be due to an eligible adverse 

weather or eligible loss condition, as 

determined by the Deputy 

Administrator, including, but not 

limited to, earthquake, early fall frost, 

excessive rainfall, flood, hurricane, late 

spring frost, lightning, tidal surge, 

tornado, volcanic eruption, wildfire and 

eligible drought, as specified in 

§ 1416.102. 

(i) For honeybee colony or honeybee 

hive losses to be considered eligible, the 

hive producer must have incurred the 

loss in the county where the eligible 

adverse weather or eligible loss 

condition occurred. The honeybee 

colony or hive losses must be due to an 

eligible adverse weather or eligible loss 

condition, as determined by the Deputy 

Administrator, including, but not 

limited to, colony collapse disorder, 

earthquake, eligible winter storm, as 

specified in § 1416.102, excessive wind, 

flood, hurricane, lightning, tornado, 

volcanic eruption, and wildfire. To be 

considered an eligible honeybee colony 

loss, the colony loss must be in excess 

of normal mortality, as established by 

the Deputy Administrator, and the loss 

could not have been prevented through 

reasonable and available measures. 

Acceptable documentation must be 

provided upon request by FSA to 

demonstrate an eligible loss occurred, 

was associated with an eligible adverse 

weather event or loss condition, and 

that generally accepted husbandry and 

production practices had been followed. 

(j) For death losses of bait fish, game 

fish, or other aquatic species, as 

determined by the Deputy 

Administrator, to be considered eligible, 

the producer must have incurred the 

fish loss, in excess of normal mortality, 

in the county where the eligible adverse 

weather or eligible loss condition 

occurred. The fish death must be due to 

an eligible adverse weather or eligible 

loss condition as determined by the 

Deputy Administrator including, but not 

limited to, earthquake, flood, hurricane, 

tidal surge, tornado, and volcanic 

eruption. 

§ 1416.104 Eligible livestock, honeybees, 

and farm-raised fish. 

(a) To be considered eligible livestock 

for livestock grazing and feed, losses 

resulting from transporting water, and 

gathering livestock to treat for cattle tick 

fever, livestock must meet all the 

following conditions: 

(1) Be alpacas, adult or non-adult 

dairy cattle, adult or non-adult beef 

cattle, adult or non-adult buffalo, adult 

or non-adult beefalo, deer, elk, emus, 

equine, goats, llamas, poultry, reindeer, 

sheep, or swine; 

(2) Except for livestock losses 

resulting from gathering livestock to 

treat cattle tick fever, be livestock that 

would normally have been grazing the 

eligible grazing land or pastureland 

during the normal grazing period for the 

specific type of grazing land or 

pastureland for the county where the 

eligible adverse weather or eligible loss 

condition occurred; 

(3) Be livestock that is owned, cashleased, purchased, under contract for 

purchase, or been raised by a contract 

grower or an eligible livestock producer, 

during the 60 days prior to the 

beginning date of the eligible adverse 

weather or eligible loss condition; 

(4) Be livestock that has been 

maintained for commercial use as part 

of the producer’s farming operation on 

the beginning date of the eligible 

adverse weather or eligible loss 

condition; 

(5) Be livestock that has not been 

produced and maintained for reasons 

other than commercial use as part of a 

farming operation; and 

(6) Be livestock that was not in a 

feedlot, on the beginning date of the 

eligible adverse weather or eligible loss 

condition, as a part of the normal 

business operation of the producer, as 

determined by the Deputy 

Administrator. 

(b) The eligible livestock types for 

grazing and feed losses, losses resulting 

from transporting water and gathering 

livestock to treat for cattle tick fever, 

are: 

(1) Adult beef cows or bulls, 

(2) Adult buffalo or beefalo cows or 

bulls, 

(3) Adult dairy cows or bulls, 

(4) Alpacas, 

(5) Deer, 

(6) Elk, 

(7) Emus, 

(8) Equine, 

(9) Goats, 

(10) Llamas, 

(11) Non-adult beef cattle, 

(12) Non-adult buffalo or beefalo, 

(13) Non-adult dairy cattle, 

(14) Poultry, 

(15) Reindeer, 

(16) Sheep, and 

(17) Swine. 

(c) Ineligible livestock for grazing and 

feed losses, and losses resulting from 

transporting water, include, but are not 

limited to: 

(1) Livestock that were or would have 

been in a feedlot, on the beginning date 

of the eligible adverse weather or 

eligible loss condition, as a part of the 

normal business operation of the 

producer, as determined by FSA; 

(2) Yaks; 

(3) Ostriches; 

(4) All beef and dairy cattle, and 

buffalo and beefalo that weighed less 

than 500 pounds on the beginning date 

of the eligible adverse weather or 

eligible loss condition; 

(5) Any wild free roaming livestock, 

including horses and deer; and 

(6) Livestock produced or maintained 

for reasons other than commercial use 

as part of a farming operation, 

including, but not limited to, livestock 

produced or maintained exclusively for 

recreational purposes, such as: 

(i) Roping, 

(ii) Hunting, 

(iii) Show, 

(iv) Pleasure, 

(v) Use as pets, or 

(vi) Consumption by owner. 

(d) For death losses for livestock 

owners to be eligible, the livestock must 

meet all of the following conditions: 

(1) Be alpacas, adult or non-adult 

dairy cattle, beef cattle, beefalo, buffalo, 

deer, elk, emus, equine, goats, llamas, 

poultry, reindeer, sheep, or swine, and 

meet all the conditions in paragraph (f) 

of this section. 

(2) Be one of the following categories 

of animals for which calculations of 

eligibility for payments will be 

calculated separately for each producer 

with respect to each category: 

(i) Adult beef bulls; 

(ii) Adult beef cows; 

(iii) Adult buffalo or beefalo bulls; 

(iv) Adult buffalo or beefalo cows; 

(v) Adult dairy bulls; 

(vi) Adult dairy cows; 

(vii) Alpacas; 

(viii) Chickens, broilers, pullets; 

(ix) Chickens, chicks; 

(x) Chickens, layers, roasters; 

(xi) Deer; 

(xii) Ducks; 

(xiii) Ducks, ducklings; 

(xiv) Elk; 

(xv) Emus; 

(xvi) Equine; 

(xvii) Geese, goose; 

(xviii) Geese, gosling; 

(xix) Goats, bucks; 

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21104 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

(xx) Goats, nannies; 

(xxi) Goats, kids; 

(xxii) Llamas; 

(xxiii) Non-adult beef cattle; 

(xxiv) Non-adult buffalo or beefalo; 

(xxv) Non-adult dairy cattle; 

(xxvi) Reindeer; 

(xxvii) Sheep, ewes; 

(xxviii) Sheep, lambs; 

(xxix) Sheep, rams; 

(xxx) Swine, feeder pigs under 50 

pounds; 

(xxxi) Swine, sows, boars, barrows, 

gilts 50 to 150 pounds; 

(xxxii) Swine, sows, boars, barrows, 

gilts over 150 pounds; 

(xxxiii) Turkeys, poults; and 

(xxxiv) Turkeys, toms, fryers, and 

roasters. 

(e) Under ELAP, ‘‘contract growers’’ 

will only be deemed to include 

producers of livestock, other than 

feedlots, whose income is dependent on 

the actual weight gain and survival of 

the livestock. For death losses for 

contract growers to be eligible, the 

livestock must meet all of the following 

conditions: 

(1) Be poultry or swine and meet all 

the conditions in paragraph (f) of this 

section. 

(2) Be one of the following categories 

of animals for which calculations of 

eligibility for payments will be 

calculated separately for each contract 

grower with respect to each category: 

(i) Chickens, broilers, pullets; 

(ii) Chickens, layers, roasters; 

(iii) Geese, goose; 

(iv) Swine, boars, sows; 

(v) Swine, feeder pigs; 

(vi) Swine, lightweight barrows, gilts; 

(vii) Swine, sows, boars, barrows, 

gilts; and 

(viii) Turkeys, toms, fryers, and 

roasters. 

(f) For livestock death losses to be 

considered eligible livestock for the 

purpose of generating payments under 

this subpart, livestock must meet all of 

the following conditions: 

(1) They must have died: 

(i) On or after the beginning date of 

the eligible loss condition; and 

(ii) On or after October 1, 2011, and 

no later than 60 calendar days from the 

ending date of the eligible loss 

condition; and 

(iii) As a direct result of an eligible 

loss condition that occurs on or after 

October 1, 2011, and 

(iv) In the program year for which 

payment is being requested; and 

(2) Been maintained for commercial 

use as part of a farming operation on the 

day the livestock died; and 

(3) Before dying, not have been 

produced or maintained for reasons 

other than commercial use as part of a 

farming operation, such non-eligible 

uses being understood to include, but 

not be limited to, any uses of wild free 

roaming animals or use of the animals 

for recreational purposes, such as 

pleasure, hunting, roping, pets, or for 

show. 

(g) For honeybee colony, hive, and 

feed losses to be eligible, the honeybee 

colony must meet the following 

conditions: 

(1) Been maintained for the purpose 

of producing honey or pollination for 

commercial use in a farming operation 

on the beginning date of the eligible 

adverse weather or eligible loss 

condition; 

(2) Been physically located in the 

county where the eligible adverse 

weather or eligible loss condition 

occurred on the beginning date of the 

eligible adverse weather or eligible loss 

condition; 

(3) Been a honeybee colony in which 

the participant has a risk in the honey 

production or pollination farming 

operation on the beginning date of the 

eligible adverse weather or eligible loss 

condition; 

(4) Been a honeybee colony for which 

the producer had an eligible loss of a 

honeybee colony, honeybee hive, or 

honeybee feed; the feed must have been 

intended as feed for honeybees. 

(h) For fish to be eligible to generate 

payments under ELAP, the fish must be 

produced in a controlled environment 

and the farm-raised fish must: 

(1) For feed losses: 

(i) Be an aquatic species that is 

propagated and reared in a controlled 

environment; 

(ii) Be maintained and harvested for 

commercial use as part of a farming 

operation; and 

(iii) Be physically located in the 

county where the eligible adverse 

weather or eligible loss condition 

occurred on the beginning date of the 

eligible adverse weather or eligible loss 

condition. 

(2) For death losses: 

(i) Be bait fish, game fish, or another 

aquatic species deemed eligible by the 

Deputy Administrator that are 

propagated and reared in a controlled 

environment; 

(ii) Been maintained for commercial 

use as part of a farming operation; and 

(iii) Been physically located in the 

county where the eligible loss adverse 

weather or eligible loss condition 

occurred on the beginning date of the 

eligible adverse weather or eligible loss 

condition. 

§ 1416.105 Eligible producers, owners, and 

contract growers. 

(a) To be considered an eligible 

livestock producer for feed losses and 

losses resulting from transporting water 

and gathering livestock to treat for cattle 

tick fever and to receive payments, the 

participant must have: 

(1) Owned, cash-leased, purchased, 

entered into a contract to purchase, or 

been a contract grower of eligible 

livestock during the 60 days prior to the 

beginning date of the eligible adverse 

weather or eligible loss condition; and 

(2) Had a loss that is determined to be 

eligible as specified in § 1416.103(d) or 

(f). 

(b) To be considered an eligible 

livestock producer for grazing losses 

and to receive payments, the participant 

must have: 

(1) Owned, cash-leased, purchased, 

entered into a contract to purchase, or 

been a contract grower of eligible 

livestock during the 60 days prior to the 

beginning date of the eligible adverse 

weather or eligible loss condition; 

(2) Had a loss that is determined to be 

eligible as specified in § 1416.103(e); 

(3) Had eligible livestock that would 

normally have been grazing the eligible 

grazing land or pastureland during the 

normal grazing period for the specific 

type of grazing land or pastureland for 

the county; 

(4) Provided for the eligible livestock 

pastureland or grazing land, including 

cash leased pastureland or grazing land 

for eligible livestock that is physically 

located in the county where the eligible 

adverse weather or loss condition 

occurred during the normal grazing 

period for the county. 

(c) For livestock death losses to be 

eligible the producer must have had a 

loss that is determined to be eligible as 

specified in § 1416.103(g) and in 

addition to other eligibility rules that 

may apply to be eligible as a: 

(1) Livestock owner for the payment 

with respect to the death of an animal 

under this subpart, the applicant must 

have had legal ownership of the 

livestock on the day the livestock died 

and under conditions in which no 

contract grower could have been eligible 

for ELAP payment with respect to the 

animal. Eligible types of animal 

categories for which losses can be 

calculated for an owner are specified in 

§ 1416.104(d). 

(2) Contract grower for ELAP payment 

with respect to the death of an animal, 

the animal must be in one of the 

categories specified in § 1416.104(e), 

and the contract grower must have had: 

(i) A written agreement with the 

owner of eligible livestock setting the 

specific terms, conditions, and 

obligations of the parties involved 

regarding the production of livestock; 

(ii) Control of the eligible livestock on 

the day the livestock died; and 

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(iii) A risk of loss in the animal. 

(d) To be considered an eligible 

honeybee producer, a participant must 

have an interest and risk in an eligible 

honeybee colony, as specified in 

§ 1416.104(g), for the purpose of 

producing honey or pollination for 

commercial use as part of a farming 

operation and must have had a loss that 

is determined to be eligible as specified 

in § 1416.103(h) or (i). 

(e) To be considered an eligible farmraised fish producer for feed and death 

loss purposes, the participant must have 

produced eligible farm-raised fish, as 

specified in § 1416.104(h), with the 

intent to harvest for commercial use as 

part of a farming operation and must 

have had a loss that is determined to be 

eligible as specified in § 1416.103(h) or 

(j); 

(f) A producer seeking payments must 

not be ineligible under the restrictions 

applicable to foreign persons contained 

in § 1416.3(b) and must meet all other 

requirements of subpart A of this part 

and other applicable USDA regulations. 

§ 1416.106 Notice of loss and application 

process. 

(a) To apply for ELAP, the participant 

that suffered eligible livestock, 

honeybee, or farm-raised fish losses 

must submit, to the FSA administrative 

county office that maintains the 

participant’s farm records for the 

agricultural operation, the following: 

(1) A notice of loss to FSA as 

specified in § 1416.107(a), 

(2) A completed application as 

specified in § 1416.107(b) for one or 

both of the following: 

(i) For livestock feed, grazing, and 

death losses and losses resulting from 

transporting water and gathering 

livestock to treat for cattle tick fever, a 

completed Emergency Loss Assistance 

for Livestock Application; 

(ii) For honeybee feed, honeybee 

colony, honeybee hive, or farm-raised 

fish feed or death losses, a completed 

Emergency Loss Assistance for 

Honeybees or Farm-Raised Fish 

Application; 

(3) A report of acreage, if applicable, 

as determined by the Deputy 

Administrator; 

(4) A copy of the participant’s grower 

contract, if the participant is a contract 

grower; 

(5) Other supporting documents 

required for FSA to determine eligibility 

of the participant, livestock, honeybee 

colonies, hives, farm-raised fish, and 

loss; 

(6) A farm operating plan, if a current 

farm operating plan is not already on 

file in the FSA county office; and 

(7) A socially disadvantaged, limited 

resource and beginning farmer or 

rancher certification, if applicable. 

(b) For 2014 and previous program 

years, available reliable or verifiable 

records must be provided only upon 

request by FSA. For 2015 and 

subsequent program years, for livestock 

grazing losses, participant must provide 

acceptable, verifiable, or reliable records 

that: 

(1) Additional livestock feed was fed 

to sustain eligible livestock during an 

eligible adverse weather or loss 

condition, or 

(2) Eligible livestock were removed 

from the eligible grazing land where the 

grazing loss occurred. 

(c) For livestock, honeybee, or farmraised fish feed losses, participant must 

provide acceptable, verifiable, or 

reliable records of the following as 

determined by the COC: 

(1) Purchased feed intended as feed 

for livestock, honeybees, or farm-raised 

fish that was lost, or additional feed 

purchased above normal quantities to 

sustain livestock, honeybees, and farmraised fish for a period of time, not to 

exceed 150 days, until additional feed 

becomes available, due to an eligible 

adverse weather or eligible loss 

condition. Verifiable or reliable records 

may include, but are not limited to, feed 

receipts, invoices, settlement sheets, 

warehouse ledger sheets, load 

summaries, register tapes, and 

contemporaneous records. 

(2) Harvested feed intended as feed 

for livestock, honeybees, or farm-raised 

fish that was lost due to an eligible 

adverse weather or eligible loss 

condition. Verifiable or reliable records 

may include, but are not limited to, 

weight tickets, truck scale tickets, pick 

records, contemporaneous records used 

to verify that the crop was stored with 

the intent to feed the crop to livestock, 

honeybees, or farm-raised fish, and 

custom harvest documents that clearly 

identify the amount of feed produced 

from the applicable acreage. 

(3) A loss resulting from the 

additional cost incurred for transporting 

livestock feed to eligible livestock due 

to an eligible adverse weather or eligible 

loss condition as determined by the 

Deputy Administrator, including, but 

not limited to, costs associated with 

equipment rental fees for hay lifts and 

snow removal. Verifiable or reliable 

records may include, but are not limited 

to, invoices, commercial receipts, load 

summaries, and contemporaneous 

records used to verify transportation 

cost of additional livestock feed. 

(4) Additional cost of transporting 

water to eligible livestock due to an 

eligible adverse weather or eligible loss 

condition as determined by the Deputy 

Administrator, including, but not 

limited to, costs associated with water 

transport equipment rental fees, labor, 

and contracted water transportation 

fees. Verifiable or reliable records 

include, but are not limited to, 

commercial receipts, contemporaneous 

records and invoices. Records must 

clearly indicate the dates on which 

water was transported and the total 

gallons transported. 

(d) For eligible honeybee colony, 

honeybee hive and farm-raised fish 

losses, the participant must provide 

verifiable or reliable records of 

honeybee colony, hive, or farm-raised 

fish losses. For honeybee colony and 

hive losses, the participant must also 

provide verifiable or reliable records of 

inventory at the beginning of the 

program year, and records of purchase 

and sale transactions of honeybee 

colonies and hives throughout the 

program year. For farm-raised fish 

losses, the participant must also provide 

verifiable or reliable records of 

inventory on the beginning date and 

ending date of the eligible adverse 

weather or eligible loss condition. 

Verifiable and reliable records may 

include, but are not limited to, any 

combination of the following: 

(1) A report of acreage, 

(2) Loan records, 

(3) Private insurance documents, 

(4) Property tax records, 

(5) Sales and purchase receipts, 

(6) State colony registration 

documentation, and 

(7) Chattel inspections. 

(e) For eligible livestock death losses 

that occur during the 2015 and 

subsequent program years, the 

participant must provide proof of 

livestock death, current physical 

location of livestock in inventory, and 

physical location of claimed livestock at 

the time of death, according to the 

documentation requirements for the 

Livestock Indemnity Program in 

§ 1416.305(d) through (f). 

(f) For eligible livestock death losses 

that occur during the 2012, 2013, and 

2014 program years, the participant 

must provide proof of death and 

livestock inventory, according to the 

documentation requirements for the 

Livestock Indemnity Program in 

§ 1416.305 (h). 

(g) If verifiable or reliable records are 

not available or provided, as required in 

paragraphs (b) through (d) of this 

section, the COC may accept producer’s 

certification of losses if similar 

producers have comparable losses, as 

determined by the COC and approved 

by the STC (FSA State Committee). 

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21106 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

§ 1416.107 Notice of loss and application 

period. 

(a) In addition to submitting an 

application for payment at the 

appropriate time, the participant that 

suffered eligible livestock, honeybee, or 

farm-raised fish losses that create or 

could create a claim for benefits must: 

(1) For losses in program years 2012 

and 2013, provide a separate notice of 

loss for each program year to FSA no 

later than August 1, 2014, 

(2) For losses that occur in program 

year 2014, provide a notice of loss to 

FSA no later than November 1, 2014, 

(3) For losses that occur in program 

year 2015 and subsequent years, the 

participant must provide a notice of loss 

to FSA within the earlier of: 

(i) 30 calendar days of when the loss 

is apparent to the participant; or 

(ii) November 1 following the program 

year for which benefits are being 

requested. 

(4) Submit the notice of loss required 

in paragraph (a) of this section to the 

administrative FSA county office, 

unless additional options are otherwise 

provided for by the Deputy 

Administrator. 

(b) In addition to the notices of loss 

required in paragraph (a) of this section, 

a participant must also submit a 

completed application for payment no 

later than: 

(1) For the 2012 and 2013 program 

years, August 1, 2014, or 

(2) For 2014 and subsequent program 

years, November 1 following the 

program year for which benefits are 

being requested. 

§ 1416.108 Availability of funds. 

Not more than $20 million for fiscal 

year 2012 and each succeeding fiscal 

year will be approved for this program 

by the Secretary. Within that cap, the 

only funds that will be considered 

available to pay eligible losses will be 

that amount approved by the Secretary. 

Payments will not be made for claims 

arising out of a particular program year 

until, for all claims for that program 

year, the time for applying for a 

payment has passed. In the event that, 

within the limits of the funding made 

available by the Secretary within the 

statutory cap, approval of eligible 

applications would result in 

expenditures in excess of the amount 

available, FSA will prorate the available 

funds by a national factor to reduce the 

total expected payments to the amount 

made available by the Secretary. FSA 

will make payments based on the factor 

for the national rate determined by FSA. 

FSA will prorate the payments in such 

manner as it determines appropriate and 

reasonable. Claims that are unpaid or 

prorated for a program year for any 

reason will not be carried forward for 

payment under other funds for later 

years or otherwise, but will be 

considered, as to any unpaid amount, 

void and nonpayable. 

§ 1416.109 National Payment Rate. 

(a) For an eligible livestock, honeybee, 

or farm-raised fish producer that meets 

the definition of beginning farmer or 

rancher, socially disadvantaged farmer 

or rancher, or limited resource farmer or 

rancher, payments calculated in 

§§ 1416.110 through 1416.112 will be 

based on a national payment rate of 90 

percent. 

(b) For an eligible livestock, 

honeybee, or farm-raised fish producer, 

payments calculated in §§ 1416.110(a), 

(b), (f), (g) and (l), 1416.111(a), and 

1416.112(a), will be based on a national 

payment rate, to be determined by the 

Deputy Administrator, of not less than 

60 percent and not more than 80 percent 

of the calculated payment. 

(c) For an eligible livestock, honeybee, 

or farm-raised fish producer, payments 

calculated in §§ 1416.110(n), 

1416.111(b) and (c), and 1416.112(b), 

will be based on a national payment 

rate, to be determined by the Deputy 

Administrator, of not less than 75 

percent and not more than 80 percent of 

the calculated payment. 

§ 1416.110 Livestock payment 

calculations. 

(a) Livestock feed payments for an 

eligible livestock producer will be 

calculated based on losses for no more 

than 150 days during the program year. 

Payment calculations for feed losses 

will be based on a national payment 

rate, as specified in § 1416.109, 

multiplied by the producer’s actual cost 

for: 

(1) Livestock feed that was purchased 

forage or feedstuffs intended for use as 

feed for the participant’s eligible 

livestock that was physically damaged 

or destroyed due to the direct result of 

an eligible adverse weather or eligible 

loss condition, as specified in 

§ 1416.103(d)(1); 

(2) Livestock feed that was 

mechanically harvested forage or 

feedstuffs intended for use as feed for 

the participant’s eligible livestock that 

was physically damaged or destroyed 

after harvest due to the direct result of 

an eligible adverse weather or eligible 

loss condition, as specified in 

§ 1416.103(d)(2); 

(3) The additional cost of purchasing 

additional livestock feed above normal 

quantities, required to maintain the 

eligible livestock during an eligible 

adverse weather or eligible loss 

condition until additional livestock feed 

becomes available, as specified in 

§ 1416.103(d)(3); and 

(4) The additional cost incurred for 

transporting livestock feed to eligible 

livestock due to an eligible adverse 

weather or eligible loss condition, as 

specified in § 1416.103(d)(4); 

(b) Payments for losses resulting from 

the additional cost of transporting water 

to eligible livestock due to an eligible 

drought for no more 150 days during the 

program year, as specified in 

§ 1416.103(d)(5) calculated based on a 

national payment rate, as determined in 

§ 1416.109, multiplied by the lesser of 

either: 

(1) The total value of the cost to 

transport water to eligible livestock for 

150 days, based on the daily water 

requirements for the eligible livestock, 

or 

(2) The total value of the cost to 

transport water to eligible livestock for 

the program year, based on the actual 

number of gallons of water the eligible 

producer transported to eligible 

livestock for the program year. 

(c) The total value of the cost to 

transport water to eligible livestock for 

150 days to be used in the calculation 

for paragraph (b)(1) of this section is 

equal to the product obtained by 

multiplying: 

(1) The number of eligible livestock 

converted to an animal unit basis; 

(2) The gallons of water required per 

animal unit for maintenance for one 

day, as determined by the Deputy 

Administrator; 

(3) The national average price per 

gallon to transport water and any 

appropriate regional or local 

adjustments as recommended by the 

STC and determined by the Deputy 

Administrator; and 

(4) 150 days. 

(d) The total value of the cost to 

transport water to eligible livestock for 

the program year to be used in the 

calculation for paragraph (b)(2) of this 

section is equal to the product obtained 

by multiplying: 

(1) Actual number of gallons of water 

transported by the eligible producer to 

eligible livestock in the program year; 

and 

(2) The national average price per 

gallon to transport water and any 

appropriate regional or local 

adjustments as recommended by the 

STC and determined by the Deputy 

Administrator. 

(e) The national average price per 

gallon to transport water to be used in 

the calculation for paragraphs (c)(3) and 

(d)(2) of this section is $0.04, or such 

other price determined by the Deputy 

Administrator. 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21107 

(f) Payments for an eligible livestock 

producer, for livestock losses resulting 

from the additional cost associated with 

gathering livestock to treat for cattle tick 

fever will be calculated for the actual 

number of livestock involved in each 

treatment. Total payments are equal to 

the sum of the following for each 

treatment: 

(1) The national payment rate, as 

determined in § 1416.109, times 

(2) The number of eligible livestock 

treated by APHIS for cattle tick fever, 

times 

(3) The average cost to gather 

livestock, per head, as established by 

the Deputy Administrator. 

(g) Payments for an eligible livestock 

producer for grazing losses, except for 

losses due to wildfires on non-Federal 

land, will be calculated based on the 

applicable national payment rate, as 

determined in § 1416.109, multiplied by 

the lesser of: 

(1) The total value of the feed cost for 

all covered livestock owned by the 

eligible livestock producer based on the 

number of days grazing was lost, not to 

exceed 150 days of daily feed cost for 

all eligible livestock, or 

(2) The total value of grazing lost for 

all eligible livestock based on the 

normal carrying capacity, as determined 

by the Secretary, of the eligible grazing 

land of the eligible livestock producer 

for the number of grazing days lost, not 

to exceed 150 days of lost grazing. 

(h) The total value of feed cost to be 

used in the calculation for paragraph 

(g)(1) of this section is based on the 

number of days grazing was lost and 

equals the product obtained by 

multiplying: 

(1) A payment quantity equal to the 

feed grain equivalent, as determined in 

paragraph (i) of this section; 

(2) A payment rate equal to the corn 

price per pound, as determined in 

paragraph (j) of this section; 

(3) The number of all eligible 

livestock owned by the eligible 

producer converted to an animal unit 

basis; 

(4) The number of days grazing was 

lost, not to exceed 150 calendar days 

during the normal grazing period for the 

specific type of grazing land; and 

(5) The producer’s ownership share in 

the livestock. 

(i) The feed grain equivalent to be 

used in the calculation for paragraph 

(g)(1) of this section equals, in the case 

of: 

(1) An adult beef cow, 15.7 pounds of 

corn per day, or 

(2) Any other type or weight of 

livestock, an amount determined by the 

Secretary that represents the average 

number of pounds of corn per day 

necessary to feed that specific type of 

livestock. 

(j) The corn price per pound to be 

used in the calculation for paragraph 

(h)(2) of this section equals the quotient 

calculated as follows: 

(1) The higher of: 

(i) The national average corn price per 

bushel of corn for the 12-month period 

immediately preceding March 1 of the 

program year for which payments are 

calculated; or 

(ii) The national average corn price 

per bushel of corn for the 24-month 

period immediately preceding March 1 

of the program year for which payments 

are calculated; 

(2) Divided by 56. 

(k) The total value of grazing lost to 

be used in the calculation for paragraph 

(h)(2) of this section equals the product 

obtained by multiplying: 

(1) A payment quantity equal to the 

feed grain equivalent of 15.7 pounds of 

corn per day; 

(2) A payment rate equal to the corn 

price per pound, as determined in 

paragraph (j) of this section; 

(3) The number of animal units the 

eligible livestock producer’s grazing 

land or pastureland can sustain during 

the normal grazing period in the county 

for the specific type of grazing land or 

pastureland, in the absence of an 

eligible adverse weather or eligible loss 

condition, determined by dividing the: 

(i) Number of eligible grazing land or 

pastureland acres of the specific type of 

grazing land or pastureland, by 

(ii) The normal carrying capacity of 

the specific type of eligible grazing land 

or pastureland; and 

(4) The number of days grazing was 

lost, not to exceed 150 calendar days 

during the normal grazing period for the 

specific type of grazing land. 

(l) Payments for an eligible livestock 

producer for grazing losses due to a 

wildfire on non-Federal land will be 

calculated based on the applicable 

national payment rate, as determined in 

§ 1416.109, multiplied by: 

(1) The result of dividing: 

(i) The number of acres of grazing 

land or pastureland acres affected by the 

fire, by 

(ii) The normal carrying capacity of 

the specific type of eligible grazing land 

or pastureland; times 

(2) The daily value of grazing as 

calculated by FSA under this section; 

times 

(3) The number of days grazing was 

lost due to fire, not to exceed 180 

calendar days; 

(m) If a participant, during the normal 

grazing period for the eligible grazing 

land, claims both an eligible loss 

resulting from the additional cost of 

purchasing additional livestock feed 

above normal quantities, as calculated 

in paragraph (a)(3) of this section, and 

an eligible grazing loss, as calculated in 

paragraphs (g) or (l) of this section, then 

the participant may receive no more 

than the larger of the value of the loss 

resulting from the: 

(1) Additional cost of purchasing 

additional livestock feed, as calculated 

in paragraph (a)(3) of this section; or 

(2) Grazing loss, as determined in: 

(i) Paragraph (g) of this section, for 

losses due to an eligible adverse weather 

or eligible loss condition, except 

wildfires on non-Federal lands, or 

(ii) Paragraph (l) of this section, for 

losses due to wildfires on non-Federal 

lands. 

(n) Payments for an eligible livestock 

producer for eligible livestock death 

losses will be based on the applicable 

national payment rate, as determined in 

§ 1416.109, multiplied by the result in 

paragraph (n)(1) of this section. 

(1) Payments will be calculated by 

multiplying: 

(i) The livestock payment rate for each 

livestock category, times 

(ii) The number of eligible livestock 

that died in each category as a result of 

an eligible loss condition in excess of 

normal mortality, as determined in 

paragraph (n)(2) of this section; 

(2) Normal mortality for each 

livestock category as determined by FSA 

on a statewide basis using local data 

sources including, but not limited to, 

State livestock organizations and the 

Cooperative Extension Service for the 

State. 

(3) The livestock payment rates to be 

used in the calculation for paragraph 

(n)(1) of this section for eligible 

livestock owners and eligible livestock 

contract growers are: 

(i) A livestock payment rate for 

eligible livestock owners that is based 

on the average fair market value of the 

applicable livestock as computed using 

nationwide prices for the previous 

program year unless some other price is 

approved by the Deputy Administrator. 

(ii) A livestock payment rate for 

eligible livestock contract growers that 

is based on the relevant average income 

loss sustained by the contract grower, 

with respect to the dead livestock. 

(o) Payments calculated in this 

section are subject to the adjustments 

and limits provided for in this part. 

§ 1416.111 Honeybee payment 

calculations. 

(a) An eligible honeybee producer 

may receive payments for eligible 

honeybee feed losses, as specified in 

§ 1416.103(h), based on a national 

payment rate, as determined in 

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21108 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

§ 1416.109, multiplied by the producer’s 

actual cost for honeybee feed that was: 

(1) Damaged or destroyed due to an 

eligible adverse weather or eligible loss 

condition, as specified in 

§ 1416.103(h)(1); and 

(2) Purchased, above normal, to 

maintain the honeybees during an 

eligible adverse weather or eligible loss 

condition until additional honeybee 

feed becomes available, as specified in 

§ 1416.103(h)(2); 

(b) An eligible honeybee producer 

may receive payments for eligible 

honeybee colony losses, as specified in 

§ 1416.103(i), based on a national 

payment rate, as determined in 

§ 1416.109(b), multiplied by: 

(1) Average fair market value of the 

honeybee colonies as computed using 

nationwide prices unless some other 

price data is approved for use by the 

Deputy Administrator; and 

(2) Number of eligible honeybee 

colonies that were damaged or 

destroyed due to an eligible adverse 

weather or eligible loss condition, in 

excess of normal honeybee mortality, as 

determined by the Deputy 

Administrator. 

(c) An eligible honeybee producer 

may receive payments for eligible 

honeybee hive losses, as specified in 

§ 1416.103(i), based on a national 

payment rate, as determined in 

§ 1416.109, multiplied by: 

(1) Average fair market value for 

honeybee hives as computed using 

nationwide prices unless some other 

price data is approved for use by the 

Deputy Administrator; and 

(2) Number of honeybee hives that 

were damaged or destroyed due to an 

eligible adverse weather or eligible loss 

condition. 

(d) Payments calculated in this 

section are subject to the adjustments 

and limits provided for in this part. 

§ 1416.112 Farm-raised fish payment 

calculations. 

(a) An eligible farm-raised fish 

producer may receive payments for fish 

feed losses due to an eligible adverse 

weather or eligible loss condition, as 

specified in § 1416.103(h), based on a 

national payment rate, as determined in 

§ 1416.109, multiplied by the producer’s 

actual cost for the fish feed that was: 

(1) Damaged or destroyed due to an 

eligible adverse weather or eligible loss 

condition, as specified in 

§ 1416.103(h)(1); and 

(2) Purchased, above normal, to 

maintain the farm-raised fish during an 

eligible adverse weather or eligible loss 

condition until additional farm-raised 

fish feed becomes available, as specified 

in § 1416.103(h)(2). 

(b) An eligible producer of farm-raised 

fish may receive payments for death 

losses of farm-raised fish due to an 

eligible adverse weather or eligible loss 

condition, as specified in § 1416.103(j), 

based on a national payment rate, as 

determined in § 1416.109, multiplied 

by: 

(1) Average fair market value of the 

bait fish, game fish, or other aquatic 

species, as determined by the Deputy 

Administrator, that died as a direct 

result of an eligible adverse weather or 

eligible loss condition, as computed 

using nationwide prices unless some 

other price data is approved for use by 

the Deputy Administrator; and 

(2) Number of eligible bait fish, game 

fish, or other aquatic species, as 

determined by the Deputy 

Administrator, that died as a result of an 

eligible adverse weather or loss 

condition, in excess of normal mortality, 

as determined by the Deputy 

Administrator. 

(c) Payments calculated in this section 

or elsewhere with respect to ELAP are 

subject to the adjustments and limits 

provided for in this part and are also 

subject to the payment limitations and 

average adjusted gross income 

limitations that are contained in part 

1400 of this chapter. 

Subpart C—Livestock Forage Disaster 

Program 

§ 1416.201 Applicability. 

(a) This subpart establishes the terms 

and conditions under which the 

Livestock Forage Disaster Program (LFP) 

will be administered. 

(b) Eligible livestock producers will 

be compensated for eligible grazing 

losses for covered livestock that occur 

due to a qualifying drought or fire that 

occurs: 

(1) On or after October 1, 2011, and 

(2) In the calendar year for which 

benefits are being requested. 

§ 1416.202 Definitions. 

The following definitions apply to 

this subpart and to the administration of 

LFP. The definitions in parts 718 of this 

title and 1400 of this chapter also apply, 

except where they conflict with the 

definitions in this section. 

Adult beef bull means a male beef 

breed bovine animal that was at least 2 

years old and used for breeding 

purposes on or before the beginning 

date of a qualifying drought or fire. 

Adult beef cow means a female beef 

breed bovine animal that had delivered 

one or more offspring. A first-time bred 

beef heifer is also considered an adult 

beef cow if it was pregnant on or before 

the beginning date of a qualifying 

drought or fire. 

Adult buffalo and beefalo bull means 

a male animal of those breeds that was 

at least 2 years old and used for 

breeding purposes on or before the 

beginning date of a qualifying drought 

or fire. 

Adult buffalo and beefalo cow means 

a female animal of those breeds that had 

delivered one or more offspring. A firsttime bred buffalo or beefalo heifer is 

also considered an adult buffalo or 

beefalo cow if it was pregnant on or 

before the beginning date of a qualifying 

drought or fire. 

Adult dairy bull means a male dairy 

breed bovine animal at least 2 years old 

used primarily for breeding dairy cows 

on or before the beginning date of a 

qualifying drought or fire. 

Adult dairy cow means a female dairy 

breed bovine animal used for the 

purpose of providing milk for human 

consumption that had delivered one or 

more offspring. A first-time bred dairy 

heifer is also considered an adult dairy 

cow if it was pregnant on or before the 

beginning date of a qualifying drought 

or fire. 

Agricultural operation means a 

farming operation. 

Application means the ‘‘Livestock 

Forage Disaster Program’’ form. 

Commercial use means used in the 

operation of a business activity engaged 

in as a means of livelihood for profit by 

the eligible livestock producer. 

Contract means, with respect to 

contracts for the handling of livestock, 

a written agreement between a livestock 

owner and another individual or entity 

setting the specific terms, conditions, 

and obligations of the parties involved 

regarding the production of livestock or 

livestock products. 

Covered livestock means livestock of 

an eligible livestock producer that, 

during the 60 days prior to the 

beginning date of a qualifying drought 

or fire, the eligible livestock producer 

owned, leased, purchased, entered into 

a contract to purchase, was a contract 

grower of, or sold or otherwise disposed 

of due to a qualifying drought during 

the current production year. It includes 

livestock that the producer otherwise 

disposed of due to drought in one or 

both of the two production years 

immediately preceding the current 

production year as determined by the 

Secretary. Notwithstanding the 

foregoing portions of this definition, 

covered livestock for ‘‘contract growers’’ 

will not include livestock in feedlots. 

‘‘Contract growers’’ under LFP will only 

include producers of livestock not in 

feedlots whose income is dependent on 

the actual weight gain and survival of 

the livestock. 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21109 

Equine animal means a domesticated 

horse, mule, or donkey. 

Farming operation means a business 

enterprise engaged in producing 

agricultural products. 

Federal Agency means, with respect 

to the control of grazing land, an agency 

of the federal government that manages 

rangeland on which livestock is 

generally permitted to graze. For the 

purposes of this section, it includes, but 

is not limited to, the U.S. Department of 

the Interior (DOI) Bureau of Indian 

Affairs (BIA), DOI Bureau of Land 

Management (BLM), and USDA Forest 

Service (FS). 

Goat means a domesticated, ruminant 

mammal of the genus Capra, including 

Angora goats. 

Non-adult beef cattle means a beef 

breed bovine animal that weighed 500 

pounds or more on or before the 

beginning date of a qualifying drought 

or fire but that does not meet the 

definition of adult beef cow or bull. 

Non-adult buffalo or beefalo means an 

animal of those breeds that weighed 500 

pounds or more on or before the 

beginning date of a qualifying drought 

or fire, but does not meet the definition 

of adult buffalo or beefalo cow or bull. 

Non-adult dairy cattle means a bovine 

animal, of a breed used for the purpose 

of providing milk for human 

consumption, that weighed 500 pounds 

or more on or before the beginning date 

of a qualifying drought or fire, but that 

does not meet the definition of adult 

dairy cow or bull. 

Normal carrying capacity means, with 

respect to each type of grazing land or 

pastureland in a county, the normal 

carrying capacity that would be 

expected from the grazing land or 

pastureland for livestock during the 

normal grazing period in the county, in 

the absence of a drought or fire that 

diminishes the production of the 

grazing land or pastureland. 

Normal grazing period means, with 

respect to a county, the normal grazing 

period during the calendar year with 

respect to each specific type of grazing 

land or pastureland in the county served 

by the applicable county committee. 

Owner means one who had legal 

ownership of the livestock for which 

benefits are being requested during the 

60 days prior to the beginning of a 

qualifying drought or fire. 

Poultry means a domesticated 

chicken, turkey, duck, or goose. Poultry 

are further delineated by sex, age, and 

purpose of production, as determined 

by FSA. 

Sheep means a domesticated, 

ruminant mammal of the genus Ovis. 

Swine means a domesticated 

omnivorous pig, hog, or boar. 

U.S. Drought Monitor is a system for 

classifying drought severity according to 

a range of abnormally dry to exceptional 

drought. It is a collaborative effort 

between Federal and academic partners, 

produced on a weekly basis, to 

synthesize multiple indices, outlooks, 

and drought impacts on a map and in 

narrative form. This synthesis of indices 

is reported by the National Drought 

Mitigation Center at http://

droughtmonitor.unl.edu. 

§ 1416.203 Eligible livestock producer. 

(a) To be considered an eligible 

livestock producer, the eligible producer 

on a farm must: 

(1) During the 60 days prior to the 

beginning date of a qualifying drought 

or fire, own, cash or share lease, or be 

a contract grower of covered livestock. 

(2) Provide pastureland or grazing 

land for covered livestock, including 

cash-leased pastureland or grazing land, 

that is: 

(i) Physically located in a county 

affected by a qualifying drought during 

the normal grazing period for the 

county, or 

(ii) Rangeland managed by a Federal 

agency for which the otherwise eligible 

livestock producer is prohibited by the 

Federal agency from grazing the normal 

permitted livestock due to a qualifying 

fire. 

(b) The eligible livestock producer 

must have certified that the livestock 

producer has suffered a grazing loss due 

to a qualifying drought or fire to be 

eligible for LFP payments. 

(c) An eligible livestock producer 

does not include any owner, cash or 

share lessee, or contract grower of 

livestock that rents or leases pastureland 

or grazing land owned by another 

person on a rate-of-gain basis. (That is, 

where the lease or rental agreement calls 

for payment based in whole or in part 

on the amount of weight gained by the 

animals that use the pastureland or 

grazing land.) 

(d) A producer seeking payment must 

not be prohibited from receiving these 

benefits as a result of the restrictions 

applicable to foreign persons contained 

in § 1416.3(b) and must meet all other 

requirements of subpart A of this part 

and other applicable USDA regulations. 

(e) If a contract grower is an eligible 

livestock producer for covered livestock, 

the owner of that livestock is not 

eligible for payment. 

§ 1416.204 Covered livestock. 

(a) To be considered covered livestock 

for LFP payments, livestock must meet 

all the following conditions: 

(1) Be adult or non-adult beef cattle, 

adult or non-adult beefalo, adult or nonadult buffalo, adult or non-adult dairy 

cattle, alpacas, deer, elk, emus, equine, 

goats, llamas, poultry, reindeer, sheep, 

or swine; 

(2) Be livestock that would normally 

have been grazing the eligible grazing 

land or pastureland: 

(i) During the normal grazing period 

for the specific type of grazing land or 

pastureland for the county during the 

qualifying drought; or 

(ii) When the Federal agency 

prohibited the eligible livestock 

producer from using the managed 

rangeland for grazing due to a fire; 

(3) Be livestock that the eligible 

livestock producer: 

(i) During the 60 days prior to the 

beginning date of a qualifying drought 

or fire: 

(A) Owned, 

(B) Leased, 

(C) Purchased, 

(D) Entered into a contract to 

purchase, or 

(E) Was a contract grower of; or 

(ii) Sold or otherwise disposed of due 

to qualifying drought during: 

(A) The current production year, or 

(B) 1 or both of the 2 production years 

immediately preceding the current 

production year; 

(4) Been maintained for commercial 

use as part of the producer’s farming 

operation on the beginning date of the 

qualifying drought or fire; 

(5) Not have been produced and 

maintained for reasons other than 

commercial use as part of a farming 

operation. Such excluded uses include, 

but are not limited to, any uses of wild 

free roaming animals or use of the 

animals for recreational purposes, such 

as pleasure, roping, hunting, pets, or for 

show; and 

(6) Not have been livestock that were 

or would have been in a feedlot, on the 

beginning date of the qualifying drought 

or fire, as a part of the normal business 

operation of the eligible livestock 

producer, as determined by the 

Secretary. 

(b) The covered livestock categories 

are: 

(1) Adult beef cows or bulls, 

(2) Adult buffalo or beefalo cows or 

bulls, 

(3) Adult dairy cows or bulls, 

(4) Alpacas, 

(5) Deer, 

(6) Elk, 

(7) Emu, 

(8) Equine, 

(9) Goats, 

(10) Llamas, 

(11) Non-adult beef cattle, 

(12) Non-adult buffalo or beefalo, 

(13) Non-adult dairy cattle, 

(14) Poultry, 

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21110 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

(15) Reindeer, 

(16) Sheep, and 

(17) Swine. 

(c) Livestock that are not covered 

include, but are not limited to: 

(1) Livestock that were or would have 

been in a feedlot, on the beginning date 

of the qualifying drought or fire, as a 

part of the normal business operation of 

the eligible livestock producer, as 

determined by the Secretary; 

(2) Yaks; 

(3) Ostriches; 

(4) All beef and dairy cattle, and 

buffalo and beefalo that weighed less 

than 500 pounds on the beginning date 

of the qualifying drought or fire; 

(5) Any wild free roaming livestock, 

including horses and deer; and 

(6) Livestock produced or maintained 

for reasons other than commercial use 

as part of a farming operation, 

including, but not limited to, livestock 

produced or maintained for recreational 

purposes, such as: 

(i) Roping, 

(ii) Hunting, 

(iii) Show, 

(iv) Pleasure, 

(v) Use as pets, or 

(vi) Consumption by owner. 

§ 1416.205 Eligible grazing losses. 

(a) A grazing loss due to drought is 

eligible for LFP only if the grazing loss 

for the covered livestock occurs on land 

that: 

(1) Is native or improved pastureland 

with permanent vegetative cover, or 

(2) Is planted to a crop planted 

specifically for the purpose of providing 

grazing for covered livestock, as 

reported on the producer’s acreage 

report, including crops such as forage 

sorghum or small grains, but not 

including corn stalks or grain sorghum 

stalks; and 

(3) Is grazing land or pastureland that 

is owned or leased by the eligible 

livestock producer that is physically 

located in a county that is, during the 

normal grazing period for the specific 

type of grazing land or pastureland for 

the county, rated by the U.S. Drought 

Monitor as having a: 

(i) D2 (severe drought) intensity in 

any area of the county for at least 8 

consecutive weeks during the normal 

grazing period for the specific type of 

grazing land or pastureland for the 

county, as determined by the Secretary, 

or 

(ii) D3 (extreme drought) or D4 

(exceptional drought) intensity in any 

area of the county at any time during the 

normal grazing period for the specific 

type of grazing land or pastureland for 

the county, as determined by the 

Secretary. (As specified elsewhere in 

this subpart, the amount of potential 

payment eligibility will be higher than 

under paragraph (a)(3)(i) of this section 

where the D4 trigger applies or where 

the D3 condition as determined by the 

Secretary lasts at least 4 weeks during 

the normal grazing period for the 

specific type of grazing land or 

pastureland for the county.) 

(b) A grazing loss is not eligible for 

LFP if: 

(1) The grazing loss due to drought on 

land used for haying or grazing under 

the Conservation Reserve Program 

established under subchapter B of 

chapter 1 of subtitle D of title XII of the 

Food Security Act of 1985 (16 U.S.C. 

3831–3835a), or 

(2) The grazing loss occurs on 

irrigated land, unless the irrigated land 

has not been irrigated in the program 

year for which benefits are being 

requested due to lack of water that is 

beyond the participant’s control. 

(c) A grazing loss due to fire qualifies 

for LFP only if: 

(1) The grazing loss occurs on 

rangeland that is managed by a Federal 

agency and 

(2) The eligible livestock producer is 

prohibited by the Federal agency from 

grazing the normal permitted livestock 

on the managed rangeland due to a fire. 

§ 1416.205 Application for payment. 

(a) To apply for LFP, the participant 

that suffered eligible grazing losses: 

(1) On or after October 1, 2011, and 

on or before December 31, 2014, must 

submit a completed application for 

payment and required supporting 

documentation as specified in this part 

to the administrative FSA county office 

no later than January 30, 2015; or 

(2) On or after January 1, 2015, must 

submit a completed application for 

payment and required supporting 

documentation to the administrative 

FSA county office no later than 30 

calendar days after the end of the 

calendar year in which the grazing loss 

occurred. 

(b) A participant must also provide a 

copy of the grower contract, if a contract 

grower, and other supporting 

documents required for determining 

eligibility as an applicant at the time the 

participant submits the completed 

application for payment. Supporting 

documents must include: 

(1) Evidence of loss; 

(2) Current physical location of 

livestock in inventory; 

(3) Evidence that grazing land or 

pastureland is owned or leased; 

(4) A report of acreage according to 

part 718 of this title for the grazing 

lands incurring losses for which 

assistance is being requested under this 

subpart; 

(5) Adequate proof, as determined by 

FSA that the grazing loss: 

(i) Was for the covered livestock; 

(ii) If the loss of grazing occurred as 

the result of a fire, that the: 

(A) Loss was due to a fire, and 

(B) Participant was prohibited by the 

Federal agency from grazing the normal 

permitted livestock on the managed 

rangeland due to a fire; 

(iii) Occurred on or after October 1, 

2011; and 

(iv) Occurred in the calendar year for 

which payments are being requested; 

(6) A farm operating plan, if a current 

farm operating plan is not already on 

file in the FSA county office; and 

(7) Any other supporting 

documentation as determined by FSA to 

be necessary to make a determination of 

eligibility of the participant. Supporting 

documents include, but are not limited 

to: Verifiable purchase and sales 

records; grower contracts; veterinarian 

records; bank or other loan papers; 

rendering truck receipts; Federal 

Emergency Management Agency 

Records; National Guard records; 

written contracts; production records; 

private insurance documents; sales 

records; and similar documents 

determined acceptable to FSA. 

(c) Data furnished by the participant 

will be used to determine eligibility for 

program benefits. Furnishing the data is 

voluntary; however, without all 

required data, program benefits will not 

be approved or provided. 

§ 1416.207 Payment calculation. 

(a) An eligible livestock producer will 

be eligible to receive payments for 

grazing losses for qualifying drought as 

specified in § 1416.205(a), calculated as 

specified in paragraphs (e) or (f) of this 

section. Total LFP payments to an 

eligible livestock producer in a calendar 

year for grazing losses due to qualifying 

drought will not exceed 5 monthly 

payments for the same livestock. 

Payments calculated in this section or 

elsewhere with respect to LFP are 

subject to the adjustments and limits 

provided for in this part and are also 

subject to the payment limitations and 

average adjusted gross income 

provisions that are contained in subpart 

A of this part. Payment may only be 

made to the extent that eligibility is 

specifically provided for in this subpart. 

Hence, with respect to drought, 

payments will be made only as a ‘‘1- 

month’’ payment, a ‘‘3-month’’ 

payment, ‘‘4-month’’ payment, or a ‘‘5- 

month’’ payment based on the 

provisions of paragraphs (b) through (e) 

of this section. 

(b) To be eligible to receive a 1-month 

payment, that is a payment equal to the 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21111 

monthly feed cost as determined under 

paragraph (h) of this section, the eligible 

livestock producer must own or lease 

grazing land or pastureland that is 

physically located in a county that is 

rated by the U.S. Drought Monitor as 

having at least a D2 severe drought 

(intensity) in any area of the county for 

at least 8 consecutive weeks during the 

normal grazing period for the specific 

type of grazing land or pastureland in 

the county. 

(c) To be eligible to receive a 3-month 

payment, that is a payment equal to 

three times the monthly feed cost as 

determined under paragraph (h) of this 

section, the eligible livestock producer 

must own or lease grazing land or 

pastureland that is physically located in 

a county that is rated by the U.S. 

Drought Monitor as having at least a D3 

(extreme drought) intensity in any area 

of the county at any time during the 

normal grazing period for the specific 

type of grazing land or pastureland for 

the county. 

(d) To be eligible to receive a 4-month 

payment, that is a payment equal to four 

times the monthly feed cost as 

determined under paragraph (h) of this 

section, the eligible livestock producer 

must own or lease grazing land or 

pastureland that is physically located in 

a county that is rated by the U.S. 

Drought Monitor as having at least a D3 

(extreme drought) intensity in any area 

of the county for at least 4 weeks (not 

necessarily consecutive weeks) during 

the normal grazing period for the 

specific type of grazing land or 

pastureland for the county, or is rated as 

having a D4 (exceptional drought) 

intensity in any area of the county at 

any time during the normal grazing 

period for the specific type of grazing 

land or pastureland for the county. 

(e) To be eligible to receive a 5-month 

payment, that is a payment equal to five 

times the monthly feed cost as 

determined under paragraph (h) of this 

section, the eligible livestock producer 

must own or lease grazing land or 

pastureland that is physically located in 

a county that is rated by the U.S. 

Drought Monitor as having at least a D4 

(exceptional drought) in any area of the 

county for at least 4 weeks (not 

necessarily consecutive weeks) during 

the normal grazing period for the 

specific type of grazing land or 

pastureland for the county. 

(f) The monthly payment rate for LFP 

for grazing losses due to a qualifying 

drought, except as specified in 

paragraph (g) of this section, will be 

equal to 60 percent of the lesser of: 

(1) The monthly feed cost for all 

covered livestock owned or leased by 

the eligible livestock producer, as 

determined in paragraph (h) of this 

section, or 

(2) The monthly feed cost calculated 

by using the normal carrying capacity of 

the eligible grazing land of the eligible 

livestock producer, as determined in 

paragraph (j) of this section. 

(g) An eligible livestock producer 

cannot receive more than a 5-month 

payment for the same covered livestock 

during the calendar year regardless of 

the number of drought intensity ratings 

the county receives; that is, the 

maximum payment an eligible livestock 

producer may receive under LFP in a 

calendar year cannot exceed 60 percent 

of 5 times the same covered livestock’s 

monthly feed cost. 

(h) In the case of an eligible livestock 

producer that sold or otherwise 

disposed of covered livestock due to a 

qualifying drought in 1 or both of the 2 

production years immediately preceding 

the current production year, the 

payment rate is 80 percent of the 

monthly payment rate calculated in 

paragraph (f) of this section. 

(i) The monthly feed cost for covered 

livestock equals the product obtained by 

multiplying: 

(1) 30 days; 

(2) A payment quantity equal to the 

amount referred to in paragraph (h) of 

this section as the ‘‘feed grain 

equivalent’’, as determined under 

paragraph (h) of this section; and 

(3) A payment rate equal to the corn 

price per pound, as determined in 

paragraph (i) of this section. 

(j) The feed grain equivalent equals, in 

the case of: 

(1) An adult beef cow, 15.7 pounds of 

corn per day or 

(2) In the case of any other type or 

weight of covered livestock, an amount 

determined by the Secretary that 

represents the average number of 

pounds of corn per day necessary to 

feed that specific type of livestock. 

(k) The corn price per pound equals 

the quotient calculated as follows: 

(1) The higher of: 

(i) The national average corn price per 

bushel for the 12-month period 

immediately preceding March 1 of the 

calendar year for which LFP payment is 

calculated, or 

(ii) The national average corn price 

per bushel for the 24-month period 

immediately preceding March 1 of the 

calendar year for which LFP payment is 

calculated, 

(2) Divided by 56. 

(l) The monthly feed cost using the 

normal carrying capacity of the eligible 

grazing land equals the product 

obtained by multiplying: 

(1) 30 days; 

(2) A payment quantity equal to the 

feed grain equivalent of 15.7 pounds of 

corn per day; 

(3) A payment rate equal to the corn 

price per pound, as determined in 

paragraph (i) of this section; and 

(4) The number of animal units the 

eligible livestock producer’s grazing 

land or pastureland can sustain during 

the normal grazing period in the county 

for the specific type of grazing land or 

pastureland, in the absence of a drought 

or fire, determined by dividing the: 

(i) Number of eligible grazing land or 

pastureland acres of the specific type of 

grazing land or pastureland, by 

(ii) The normal carrying capacity of 

the specific type of eligible grazing land 

or pastureland as determined under this 

subpart. 

(m) An eligible livestock producer 

will be eligible to receive payments for 

grazing losses due to a fire as specified 

in § 1416.205(c): 

(1) For the period, subject to 

paragraph (l)(2) of this section: 

(i) Beginning on the date on which the 

Federal Agency prohibits the eligible 

livestock producer from using the 

managed rangeland for grazing, and 

(ii) Ending on the earlier of the last 

day of the Federal lease of the eligible 

livestock producer or the day that 

would make the period a 180 day 

period. 

(2) For grazing losses that occur on 

not more than 180 days per calendar 

year. 

(3) For 50 percent of the monthly feed 

cost, as determined under § 1416.208(i), 

pro-rated to a daily rate, for the total 

number of livestock covered by the 

Federal lease of the eligible livestock 

producer. 

Subpart D—Livestock Indemnity 

Program 

§ 1416.301 Applicability. 

(a) This subpart establishes the terms 

and conditions under which the 

Livestock Indemnity Program (LIP) will 

be administered under Title I of the 

2014 Farm Bill (Pub. L. 113–79). 

(b) Eligible livestock owners and 

contract growers will be compensated in 

accordance with § 1416.306 for eligible 

livestock deaths in excess of normal 

mortality that occurred in the calendar 

year for which benefits are being 

requested as a direct result of an eligible 

adverse weather event or attacks by 

animals reintroduced into the wild by 

the Federal Government or protected by 

Federal law, including wolves and avian 

predators. The eligible adverse weather 

event, is one, as determined by the 

Secretary, that occurs in the program 

year that directly results in the death of 

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livestock despite the livestock 

producer’s performance of expected and 

normal preventative or corrective 

measures and good farming practices. 

Because feed can be purchased or 

otherwise obtained in the event of a 

drought, drought is not an eligible 

adverse weather event except when 

anthrax, which is exacerbated by 

drought, causes the death of eligible 

livestock. 

§ 1416.302 Definitions. 

The following definitions apply to 

this subpart. The definitions in parts 

718 of this title and 1400 of this chapter 

also apply, except where they conflict 

with the definitions in this section. 

Actual livestock beginning inventory 

means the actual livestock beginning 

inventory per calendar year for calves or 

lambs that is calculated from the 

verifiable or reliable records of death, 

birthing, docking, inventory, and sales 

in an open range operation. 

Adjusted livestock beginning 

inventory means the livestock beginning 

inventory history for calves or lambs on 

the open range that will be adjusted 

during the base period for years for 

which continuous actual livestock 

beginning inventory history records are 

not provided. 

Adult beef bull means a male beef 

breed bovine animal that was at least 2 

years old and used for breeding 

purposes before it died. 

Adult beef cow means a female beef 

breed bovine animal that had delivered 

one or more offspring before dying. A 

first-time bred beef heifer is also 

considered an adult beef cow if it was 

pregnant at the time it died. 

Adult buffalo and beefalo bull means 

a male animal of those breeds that was 

at least 2 years old and used for 

breeding purposes before it died. 

Adult buffalo and beefalo cow means 

a female animal of those breeds that had 

delivered one or more offspring before 

dying. A first-time bred buffalo or 

beefalo heifer is also considered an 

adult buffalo or beefalo cow if it was 

pregnant at the time it died. 

Adult dairy bull means a male dairy 

breed bovine animal at least 2 years old 

used primarily for breeding dairy cows 

before it died. 

Adult dairy cow means a female 

bovine dairy breed animal used for the 

purpose of providing milk for human 

consumption that had delivered one or 

more offspring before dying. A first-time 

bred dairy heifer is also considered an 

adult dairy cow if it was pregnant at the 

time it died. 

Agricultural operation means a 

farming operation. 

Application means the ‘‘Livestock 

Indemnity Program’’ form. 

Approved livestock beginning 

inventory means the approved livestock 

beginning inventory for calves or lambs 

on the open range, calculated by the 

sum of the yearly actual and transitional 

livestock beginning inventory history 

divided by the number of years of 

livestock beginning inventory history. 

Base period means the five 

consecutive calendar years immediately 

preceding the calendar year of the LIP 

application for which the approved 

livestock beginning inventory is being 

established for the open range calf or 

lambing operation. 

Buck means a male goat. 

CCC means Commodity Credit 

Corporation. 

Commercial use means used in the 

operation of a business activity engaged 

in as a means of livelihood for profit by 

the eligible producer. 

Continuous livestock beginning 

inventory reports means livestock 

beginning inventory reports submitted 

by a producer for each calendar year 

that the producer was involved in the 

livestock open range operation. 

Contract means, with respect to 

contracts for the handling of livestock, 

a written agreement between a livestock 

owner and another individual or entity 

setting the specific terms, conditions, 

and obligations of the parties involved 

regarding the production of livestock or 

livestock products. 

Cow/Ewe Livestock Beginning 

Inventory History means, the applicable 

calendar year cow or ewe verifiable 

livestock beginning inventory records 

provided to FSA by the open range 

livestock operation to be used in 

calculating the transitional livestock 

beginning inventory history. 

Deputy Administrator or DAFP means 

the Deputy Administrator for Farm 

Programs, Farm Service Agency, U.S. 

Department of Agriculture or the 

designee. 

Equine animal means a domesticated 

horse, mule, or donkey. 

Eligible adverse weather event means 

an extreme or abnormal damaging 

weather event that is not expected to 

occur during the loss period for which 

it occurred, which results in eligible 

livestock death losses in excess of 

normal mortality. Eligible adverse 

weather events include, but are not 

limited to, as determined by the Deputy 

Administrator or designee, earthquake; 

lightning; tornado; tropical storm; 

typhoon; vog if directly related to a 

volcanic eruption; winter storm if the 

winter storm last for three consecutive 

days and is accompanied by high winds, 

freezing rain or sleet, heavy snowfall, 

and extremely cold temperatures; 

hurricanes; floods; blizzards; wildfires; 

extreme heat; extreme cold; and 

anthrax; and disease if exacerbated by 

another eligible adverse weather event. 

Ewe means a female sheep. 

Farming operation means a business 

enterprise engaged in producing 

agricultural products. 

FSA means the Farm Service Agency. 

Goat means a domesticated, ruminant 

mammal of the genus Capra, including 

Angora goats. Goats are further defined 

by sex (bucks and nannies) and age 

(kids). 

Kid means a goat less than 1 year old. 

Lamb means a sheep less than 1 year 

old. 

Livestock beginning inventory history 

(LBIH) means a minimum of four, up to 

a maximum of five, calendar years of 

actual and transitional beginning 

inventory records used to calculate the 

approved livestock beginning inventory 

history for a calf or lamb open range 

livestock operation. 

LBIH reporting date means the LBIH 

reporting date for which the reports will 

be accepted for inclusion in the base 

period for the current calendar year 

Livestock inventory report means a 

written record showing the producer’s 

annual inventory used to determine the 

livestock beginning inventory history 

for LIP purposes for the open range calf 

or lamb open range livestock operation. 

The report contains livestock beginning 

inventory history by open range 

livestock operation by livestock type or 

kind. 

Livestock owner means one having 

legal ownership of the livestock for 

which benefits are being requested on 

the day such livestock died. 

Nanny means a female goat. 

Non-adult beef cattle means a beef 

breed bovine animal that does not meet 

the definition of adult beef cow or bull. 

Non-adult beef cattle are further 

delineated by weight categories of either 

less than 400 pounds or 400 pounds or 

more at the time they died. 

Non-adult buffalo or beefalo means an 

animal of those breeds that does not 

meet the definition of adult buffalo or 

beefalo cow or bull. Non-adult buffalo 

or beefalo are further delineated by 

weight categories of either less than 400 

pounds or 400 pounds or more at the 

time of death. 

Non-adult dairy cattle means a dairy 

breed bovine animal, of a breed used for 

the purpose of providing milk for 

human consumption, that do not meet 

the definition of adult dairy cow or bull. 

Non-adult dairy cattle are further 

delineated by weight categories of either 

less than 400 pounds or 400 pounds or 

more at the time they died. 

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Normal mortality means the 

numerical amount, computed by a 

percentage, as established for the area 

by the FSA State Committee, of 

expected livestock deaths, by category, 

that normally occur during a calendar 

year for a producer. 

Open range operation means livestock 

production that takes place on large 

parcels of land where the livestock are 

not gathered into pens, sheds, or other 

small areas such that accurate overall 

inventory and resulting death tallies 

cannot be completed without a roundup, as determined by the Deputy 

Administrator. 

Poultry means domesticated chickens, 

turkeys, ducks, and geese. Poultry are 

further delineated by sex, age, and 

purpose of production as determined by 

FSA. 

Ram means a male sheep. 

Secretary means the Secretary of 

Agriculture or a designee of the 

Secretary. 

Sheep means a domesticated, 

ruminant mammal of the genus Ovis. 

Sheep are further defined by sex (rams 

and ewes) and age (lambs) for purposes 

of dividing into categories for loss 

calculations. 

State committee, State office, county 

committee, or county office means the 

respective FSA committee or office. 

Swine means a domesticated 

omnivorous pig, hog, or boar. Swine for 

purposes of dividing into categories for 

loss calculations are further delineated 

by sex and weight as determined by 

FSA. 

Transitional livestock beginning 

inventory history for offspring (calves/

lambs) means an estimated livestock 

beginning inventory history, generally 

determined by multiplying the livestock 

open range operation’s beginning cow or 

ewe livestock beginning inventory 

history by the national established 

birthing rate percentage of 90 percent 

for calves and 160 percent for lambs. 

The Deputy Administrator has the 

authority to make adjustments as 

necessary. It is to be used in the 

transitional livestock beginning 

inventory history calculation process 

when less than 4 consecutive calendar 

years of actual livestock beginning 

inventory history is available. 

United States means all fifty States of 

the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico, and any other territory or 

possession of the United States. 

Winter storm means a storm that is 

severe as to cause fatal injury to 

livestock and lasts in duration for at 

least three consecutive days and is 

accompanied by high winds, freezing 

rain or sleet, heavy snowfall, and 

extremely cold temperatures. 

§ 1416.303 Eligible owners and contract 

growers. 

(a) In addition, to other eligibility 

rules that may apply, to be eligible as a: 

(1) Livestock owner for benefits with 

respect to the death of an animal under 

this subpart, the applicant must have 

had legal ownership of the eligible 

livestock on the day the livestock died 

and under conditions in which no 

contract grower could have been eligible 

for benefits with respect to the animal. 

Eligible types of animal categories for 

which losses can be calculated for an 

owner are specified in § 1416.304(a). 

(2) Contract grower for benefits with 

respect to the death of an animal, the 

animal must be in one of the categories 

specified on § 1416.304(b), and the 

contract grower must have had, 

(i) A written agreement with the 

owner of eligible livestock setting the 

specific terms, conditions, and 

obligations of the parties involved 

regarding the production of livestock; 

(ii) Control of the eligible livestock on 

the day the livestock died; and 

(iii) A risk of loss in the animal. 

(b) A producer seeking payment must 

not be ineligible under the restrictions 

applicable to foreign persons contained 

in § 1416.3(b) and must meet all other 

requirements of subpart A of this part 

and other applicable USDA regulations. 

§ 1416.304 Eligible livestock. 

(a) To be considered eligible livestock 

for livestock owners, the kind of 

livestock must be alpacas, adult or nonadult dairy cattle, beef cattle, buffalo, 

beefalo, elk, emus, equine, llamas, 

sheep, goats, swine, poultry, deer, or 

reindeer and meet all the conditions in 

paragraph (c) of this section. 

(b) To be considered eligible livestock 

for contract growers, the kind of 

livestock must be poultry or swine and 

meet all the conditions in paragraph (c) 

of this section. 

(c) To be considered eligible livestock 

for the purpose of generating payments 

under this subpart, livestock must meet 

all of the following conditions: 

(1) Died as a direct result of an 

eligible adverse weather event or attacks 

by animals reintroduced into the wild 

by the Federal Government or protected 

by Federal law, including wolves and 

avian predators: 

(i) On or after October 1, 2011, 

(ii) No later than 60 calendar days 

from the ending date of the eligible 

adverse weather event, or the date of the 

attack by animals reintroduced into the 

wild by the Federal Government or 

protected by Federal law, including 

wolves and avian predators, and 

(iii) In the calendar year for which 

benefits are being requested; 

(2) Been maintained for commercial 

use as part of a farming operation on the 

day they died; and 

(3) Before dying, not have been 

produced or maintained for reasons 

other than commercial use as part of a 

farming operation, such non-eligible 

uses being understood to include, but 

not be limited to, any uses of wild free 

roaming animals or use of the animals 

for recreational purposes, such as 

pleasure, hunting, roping, pets, or for 

show. 

(d) The following categories of 

animals owned by a livestock owner are 

eligible livestock and calculations of 

eligibility for payments will be 

calculated separately for each producer 

with respect to each category: 

(1) Adult beef bulls; 

(2) Adult beef cows; 

(3) Adult buffalo or beefalo bulls; 

(4) Adult buffalo or beefalo cows; 

(5) Adult dairy bulls; 

(6) Adult dairy cows; 

(7) Alpacas; 

(8) Chickens, broilers, pullets; 

(9) Chickens, chicks; 

(10) Chickens, layers, roasters; 

(11) Deer; 

(12) Ducks; 

(13) Ducks, ducklings; 

(14) Elk; 

(15) Emus; 

(16) Equine; 

(17) Geese, goose; 

(18) Geese, gosling; 

(19) Goats, bucks; 

(20) Goats, nannies; 

(21) Goats, kids; 

(22) Llamas; 

(23) Non-adult beef cattle; 

(24) Non-adult buffalo or beefalo; 

(25) Non-adult dairy cattle; 

(26) Reindeer; 

(27) Sheep, ewes; 

(28) Sheep, lambs; 

(29) Sheep, rams; 

(30) Swine, feeder pigs under 50 

pounds; 

(31) Swine, sows, boars, barrows, gilts 

50 to 150 pounds; 

(32) Swine, sows, boars, barrows, gilts 

over 150 pounds; 

(33) Turkeys, poults; and 

(34) Turkeys, toms, fryers, and 

roasters. 

(e) The following categories of 

animals are eligible livestock for 

contract growers and calculations of 

eligibility for payments will be 

calculated separately for each producer 

with respect to each category: 

(1) Chickens, broilers, pullets; 

(2) Chickens, layers, roasters; 

(3) Geese, goose; 

(4) Swine, boars, sows; 

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21114 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

(5) Swine, feeder pigs; 

(6) Swine, lightweight barrows, gilts; 

(7) Swine, sows, boars, barrows, gilts; 

and 

(8) Turkeys, toms, fryers, and roasters. 

(f) The following livestock are 

considered to be ineligible livestock for 

the purpose of generating payments 

under this subpart: 

(1) Livestock that have died due to 

disease where the disease was not 

exacerbated by an eligible adverse 

weather event. Diseases that can be 

prevented by implementing and 

following acceptable management 

practices, such as vaccination, are not 

considered an eligible livestock death 

loss under LIP. Livestock that die as a 

result of the disease are not eligible for 

payment to be generated under LIP 

when the disease has been determined 

to not have been exacerbated by an 

eligible adverse weather event and 

vaccination or acceptable management 

practices can or have been implemented 

to prevent such disease. Before COC 

approves LIP applications for payment 

for disease, COC through STC, must 

request determination from the Deputy 

Administrator or designee whether the 

specific disease is a disease that is 

exacerbated by an eligible adverse 

weather event. 

§ 1416.305 Application process. 

(a) A producer or contract grower that 

suffered livestock losses that creates or 

could create a claim for benefits must: 

(1) For losses on or after October 1, 

2011, and before January 1, 2015, 

provide a notice of loss and application 

for payment to FSA no later than 

January 30, 2015. 

(2) For 2015 calendar year and 

subsequent year losses, provide a notice 

of loss to FSA within the earlier of: 

(i) 30 calendar days of when the loss 

of livestock is apparent to the 

participant or 

(ii) 30 calendar days after the end of 

the calendar year in which the loss of 

livestock occurred. 

(3) The participant must submit the 

notice of loss required in paragraphs 

(a)(1) and (2) of this section to the FSA 

administrative county office that 

maintains the participant’s farm records 

for the agricultural operation. 

(b) In addition to the notices of loss 

required in paragraph (a)(2) of this 

section, a participant must also submit 

a completed application for payment no 

later than 30 calendar days after the end 

of the calendar year in which the loss 

of livestock occurred. 

(c) A participant must also provide a 

copy of the grower contract, if a contract 

grower, and other supporting 

documents required for determining 

eligibility as an applicant at the time the 

participant submits the completed 

application for payment. Supporting 

documents must include: 

(1) Evidence of loss, 

(2) Current physical location of 

livestock in inventory, 

(3) Physical location of claimed 

livestock at the time of death, 

(4) Inventory numbers and other 

inventory information necessary to 

establish actual mortality as required by 

FSA, 

(5) A farm operating plan, if a current 

farm operating plan is not already on 

file in the FSA county office, 

(6) Documentation of the adverse 

weather event from an official weather 

reporting data source that is determined 

by FSA to be reputable and available in 

the public domain such as, but not 

limited to, NOAA, from which State and 

County FSA Offices can validate the 

adverse weather event occurred, and 

(7) Documentation to substantiate 

eligible animal attacks by animals or 

avian predators showing confirmation of 

the eligible animal or avian attack 

obtained from a source such as, but not 

limited to, the following: 

(i) APHIS, 

(ii) State level Department of Natural 

Resources, or 

(iii) Other sources or documentation, 

as determined by the Deputy 

Administrator. 

(8) The livestock producer may 

supplement additional documentation 

to support eligible adverse weather 

events and eligible attacks by animal or 

avian predators, as determined by the 

Deputy Administrator. 

(d) The participant must provide 

adequate proof that the death of the 

eligible livestock occurred as a direct 

result of an eligible adverse weather 

event or attacks by animals reintroduced 

into the wild by the Federal 

Government or protected by Federal 

law, including wolves and avian 

predators, in the calendar year for 

which benefits are requested. The 

quantity and kind of livestock that died 

as a direct result of the eligible adverse 

weather event during the calendar year 

for which benefits are being requested 

may be documented by: Purchase 

records; veterinarian records; bank or 

other loan papers; rendering-plant truck 

receipts; Federal Emergency 

Management Agency records; National 

Guard records; written contracts; 

production records; Internal Revenue 

Service records; property tax records; 

private insurance documents; and other 

similar verifiable documents as 

determined by FSA. 

(e) If adequate verifiable proof of 

death documentation is not available, 

the participant may provide reliable 

records, in conjunction with verifiable 

beginning and ending inventory records, 

as proof of death. Reliable records may 

include contemporaneous producer 

records, dairy herd improvement 

records, brand inspection records, 

vaccination records, dated pictures, and 

other similar reliable documents as 

determined by FSA. 

(f) Certification of livestock deaths by 

third parties may be accepted if 

verifiable beginning and ending 

inventory data is available only if 

verifiable proof of death records or 

reliable proof of death records in 

conjunction with verifiable beginning 

and ending inventory records are not 

available and both of the following 

conditions are met: 

(1) The livestock owner or livestock 

contract grower, as applicable, certifies 

in writing: 

(i) That there is no other verifiable or 

reliable documentation of death 

available; 

(ii) The number of livestock, by 

category identified in this subpart and 

by FSA were in inventory at the time 

the eligible adverse weather event 

occurred; 

(iii) The physical location of the 

livestock, by category, in inventory 

when the deaths occurred; and 

(iv) Other details required for FSA to 

determine the certification acceptable; 

and 

(2) The third party is an independent 

source who is not affiliated with the 

farming operation such as a hired hand 

and is not a ‘‘family member,’’ defined 

as a person whom a member in the 

farming operation or their spouse is 

related as lineal ancestor, lineal 

descendant, sibling, spouse, and 

provides their telephone number, 

address, and a written statement 

containing specific details about: 

(i) Their knowledge of the livestock 

deaths; 

(ii) Their affiliation with the livestock 

owner; 

(iii) The accuracy of the deaths 

claimed by the livestock owner or 

contract grower including, but not 

limited to, the number and kind or type 

of the participant’s livestock that died 

because of the eligible adverse weather 

event; and 

(iv) Other information required by 

FSA to determine the certification 

acceptable. 

(v) Data furnished by the participant 

and the third party will be used to 

determine eligibility for program 

benefits. Furnishing the data is 

voluntary; however, without all 

required data program benefits will not 

be approved or provided. 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21115 

(g) Calf and lamb open range livestock 

operations may provide proof of death 

by using the livestock beginning 

inventory history for reporting losses. 

(1) For 2015 and subsequent calendar 

years, livestock inventory reports must 

be provided to the local county FSA 

office no later than 30 calendar days 

after the end of the calendar year for 

which reports will be accepted for 

inclusion in the base period for the 

current calendar year. For the 2011 

through 2014 calendar years, producers 

have until January 30, 2015, to provide 

the applicable livestock inventory 

reports. The STC may approve a waiver 

of the reporting deadline if a participant 

has not previously received benefits 

under this method. 

(i) Livestock inventory reports must 

provide an accurate account of livestock 

beginning inventory for the open range 

livestock type or kind and must be 

supported by written verifiable records 

such as but not limited to: Docking 

records, sales receipts, shearing records, 

shipping records, bank records, 

veterinarian records, IRS records, or 

other records approved by COC. For 

purposes of determining beginning 

livestock inventory, livestock inventory 

reports may require adjustment by COC, 

not to exceed normal mortality, for 

when loss occurs at different points 

during the growing season (for example, 

inventories from docking may need 

little to no adjustment, but sales records 

at the end of the growing season may 

require an adjustment to account for a 

full years of normal mortality). 

(ii) The open range livestock 

operation must certify to the accuracy of 

the information. 

(2) The open range livestock operation 

is solely responsible for the timely 

submission and certification of accurate, 

complete livestock beginning inventory 

to the county FSA office. Livestock 

beginning inventory records must be 

provided for all livestock type or kind. 

(i) Records may be requested by the 

applicable COC or STC, on behalf of 

FSA. The open range livestock 

operation must provide such records 

upon request. 

(ii) The COC will explain the 

procedure for the livestock beginning 

inventory history to open range 

livestock operation. COC will determine 

the livestock beginning inventory 

history in accordance with 

§ 1416.305(g). 

(iii) COC will determine if the 

livestock beginning inventory records 

are acceptable and calculate the 

approved livestock beginning inventory 

history. 

(3) The livestock beginning inventory 

history is calculated utilizing a 

minimum of 4 years of data and will be 

updated each subsequent inventory 

year. The transitional livestock 

beginning inventory history may 

contain a maximum of the 4 most recent 

calendar years and may include actual 

and transitional livestock beginning 

inventories. Transitional livestock 

beginning inventory history will only be 

used when less than 4 years of actual 

records are available. Appropriate 

adjustments to livestock beginning 

inventory history may be made to 

account for variations in ewe and cow 

stocking levels during the period 

covered by the history. 

(4) The open range livestock operation 

is required to provide beginning 

livestock inventory records to determine 

the livestock beginning inventory 

history, if livestock beginning inventory 

records are available. 

(i) If no acceptable livestock 

beginning inventory records are 

available for either calves or lambs, 

calculate the 4 transitional livestock 

beginning inventory histories by 

multiplying the approved birthing rate 

or drop rate percentage for the open 

range livestock operation times the 

applicable cow or ewe livestock 

beginning inventory history times 65 

percent. 

(ii) If acceptable livestock beginning 

inventory records are provided for only 

one of the most recent 5 calendar years, 

calculate the 3 transitional livestock 

beginning inventory histories by 

multiplying the approved birthing rate 

or drop rate percentage for the open 

range livestock operation times the 

applicable cow or ewe livestock 

beginning inventory history times 80 

percent. 

(iii) If acceptable livestock beginning 

inventory records are provided for only 

2 of the most recent 5 calendar years, 

calculate the 2 transitional livestock 

beginning inventory histories by 

multiplying the approved birthing rate 

or drop rate percentage for the open 

range livestock operation times the 

applicable cow or ewe livestock 

beginning inventory history times 90 

percent. 

(iv) If acceptable livestock beginning 

inventory records are provided for only 

3 of the most recent 5 calendar years, 

calculate the one transitional livestock 

beginning inventory histories by 

multiplying the approved birthing rate 

or drop rate percentage for the open 

range livestock operation times the 

applicable cow or ewe livestock 

beginning inventory history times 100 

percent. 

(v) If acceptable livestock beginning 

inventory history records containing 

information for 4 or more of the most 

recent calendar years are provided, 

calculate the livestock beginning 

inventory history by taking a simple 

average of the actual livestock beginning 

inventory histories. 

(h) For livestock death losses that 

occurred on or after October 1, 2011, 

and before January 1, 2015, livestock 

producers who cannot meet the criteria 

in paragraphs (d) through (g) of this 

section may provide acceptable 

documentation of proof of death and 

inventories according to the 

requirements in this paragraph (h). 

(1) Documents that may provide 

acceptable evidence of death include, 

but are not limited to, any or a 

combination of the following: 

(i) Contemporaneous producer 

records existing at the time of the event, 

such as, but not limited to: Personal 

diary listing births, deaths, unaccounted 

animals, and date of such event; 

personal diary of cowboy or herdsman 

showing animal care; calendar listing 

births, deaths, unaccounted animals, 

date livestock turned out on pasture; 

pictures with a date; brand inspection 

records; dairy herd improvement 

records; ear tag documentation or 

records; and other similar reliable 

documents. COC may require the 

livestock producer to file a third-party 

certification to support the 

contemporaneous records. 

(ii) Third-party certification according 

to paragraph (f) of this section, except 

that the third-party is not required to 

certify to the specific number of 

livestock. 

(2) Documents that may provide 

acceptable evidence of livestock 

inventory include, but are not limited 

to, any or a combination of the 

following: 

(i) Veterinary records; 

(ii) Canceled check documentation; 

(iii) Balance sheets; 

(iv) Inventory records used for tax 

purposes; 

(v) Loan records; 

(vi) Bank statements; 

(vii) Farm credit balance sheets; 

(viii) Property tax records; 

(xix) Trucking and/or livestock 

hauling records; 

(x) Brand inspection records; 

(xi) Sales and purchase receipts; 

(xii) Private insurance documents; 

(xiii) Chattel inspections; 

(xiv) IRS records such schedule F and 

depreciation schedules; 

(xv) Docking records; 

(xvi) Shearing records; 

(xvii) Ear tag records. 

(3) COC may compare livestock 

numbers and carrying capacity to 

acreage reports filed by a producer 

during the calendar year of loss to 

determine reasonableness. 

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(4) COC must review all 

documentation provided by the 

producer and based upon review of the 

documentation provided by the 

producer and personal knowledge of the 

producer’s livestock operation, 

determine whether the number of death 

losses reported by the livestock 

producer are reasonable and whether 

the application for payment should be 

approved. 

§ 1416.306 Payment calculation. 

(a) Under this subpart, separate 

payment rates for eligible livestock 

owners and eligible livestock contract 

growers are specified in paragraphs (b) 

and (c) of this section, respectively. 

Payments for LIP are calculated by 

multiplying the national payment rate 

for each livestock category by the 

number of eligible livestock in excess of 

normal mortality in each category that 

died as a result of an eligible adverse 

weather event. Normal mortality for 

each livestock category will be 

determined by FSA on a State-by-State 

basis using local data sources including, 

but not limited to, State livestock 

organizations and the Cooperative 

Extension Service for the State. 

Adjustments will be applied as 

specified in paragraph (d) of this 

section. 

(b) The LIP national payment rate for 

eligible livestock owners is based on 75 

percent of the average fair market value 

of the applicable livestock as computed 

using nationwide prices for the previous 

calendar year unless some other price is 

approved by the Deputy Administrator. 

(c) The LIP national payment rate for 

eligible livestock contract growers is 

based on 75 percent of the average 

income loss sustained by the contract 

grower with respect to the dead 

livestock. 

(d) The LIP payment calculated for 

eligible livestock contract growers will 

be reduced by the amount the 

participant received from the party who 

contracted with the producer to raise 

the livestock for the loss of income from 

the dead livestock. 

Subpart E—Tree Assistance Program 

§ 1416.400 Applicability. 

(a) This subpart establishes the terms 

and conditions under which the Tree 

Assistance Program (TAP) will be 

administered under Title I of the 

Agricultural Act of 2014 (Pub. L. 113– 

79, the 2014 Farm Bill). 

(b) Eligible orchardists and nursery 

tree growers will be compensated as 

specified in § 1416.406 for eligible tree, 

bush, and vine losses in excess of 15 

percent mortality, or, where applicable, 

damage in excess of 15 percent, adjusted 

for normal mortality and normal 

damage, that occurred in the calendar 

year (or loss period in the case of plant 

disease) for which benefits are being 

requested and as a direct result of a 

natural disaster. 

§ 1416.401 Administration. 

The program will be administered as 

specified in § 1416.2 and in this subpart. 

§ 1416.402 Definitions. 

The following definitions apply to 

this subpart. The definitions in parts 

718 of this title and 1400 of this chapter 

also apply, except where they conflict 

with the definitions in this section. 

Bush means, a low, branching, woody 

plant, from which at maturity of the 

bush, an annual fruit or vegetable crop 

is produced for commercial purposes, 

such as a blueberry bush. The definition 

does not cover plants that produce a 

bush after the normal crop is harvested 

such as asparagus. 

Commercial use means used in the 

operation of a business activity engaged 

in as a means of livelihood for profit by 

the eligible producer. 

County committee means the 

respective FSA committee. 

County office means the FSA or U.S. 

Department of Agriculture (USDA) 

Service Center that is responsible for 

servicing the farm on which the trees, 

bushes, or vines are located. 

Cutting means a piece of a vine which 

was planted in the ground to propagate 

a new vine for the commercial 

production of fruit, such as grapes, kiwi 

fruit, passion fruit, or similar fruit. 

Deputy Administrator or DAFP means 

the Deputy Administrator for Farm 

Programs, FSA, USDA, or the designee. 

Eligible nursery tree grower means a 

person or legal entity that produces 

nursery, ornamental, fruit, nut, or 

Christmas trees for commercial sale. 

Eligible orchardist means a person or 

legal entity that produces annual crops 

from trees, bushes, or vines for 

commercial purposes. 

FSA means the Farm Service Agency. 

Lost means, with respect to the extent 

of damage to a tree or other plant, that 

the plant is destroyed or the damage is 

such that it would, as determined by 

FSA, be more cost effective to replace 

the tree or other plant than to leave it 

in its deteriorated, low-producing state. 

Natural disaster means plant disease, 

insect infestation, drought, fire, freeze, 

flood, earthquake, lightning, or other 

natural occurrence of such magnitude or 

severity so as to be considered 

disastrous, as determined by the Deputy 

Administrator. 

Normal damage means the 

percentage, as established for the area 

by the FSA State Committee, of trees, 

bushes, or vines in the individual stand 

that would normally be damaged during 

a calendar year for a producer. 

Normal mortality means percentage, 

as established for the area by the FSA 

State Committee, of expected lost trees, 

bushes, or vines in the individual stand 

that normally occurs during a calendar 

year for a producer. This term refers to 

the number of whole trees, bushes, or 

vines that are destroyed or damaged 

beyond rehabilitation. Mortality does 

not include partial damage such as lost 

tree limbs. 

Seedling means an immature tree, 

bush, or vine that was planted in the 

ground or other growing medium to 

grow a new tree, bush, or vine for 

commercial purposes. 

Stand means a contiguous acreage of 

the same type of trees (including 

Christmas trees, ornamental trees, 

nursery trees, and potted trees), bushes 

(including shrubs), or vines. 

State committee means the respective 

FSA committee. 

Tree means a tall, woody plant having 

comparatively great height, and a single 

trunk from which an annual crop is 

produced for commercial purposes, 

such as a maple tree for syrup, papaya 

tree, or orchard tree. Trees used for pulp 

or timber are not considered eligible 

trees under this subpart. 

Vine means a perennial plant grown 

under normal conditions from which an 

annual fruit crop is produced for 

commercial market for human 

consumption, such as grape, kiwi, or 

passion fruit, and that has a flexible 

stem supported by climbing, twining, or 

creeping along a surface. Perennials that 

are normally propagated as annuals 

such as tomato plants, biennials such as 

the plants that produce strawberries, 

and annuals such as pumpkins, squash, 

cucumbers, watermelon, and other 

melons, are excluded from the term vine 

in this subpart. 

§ 1416.403 Eligible losses. 

(a) To be considered an eligible loss 

under this subpart: 

(1) Eligible trees, bushes, or vines 

must have been lost or damaged as a 

result of natural disaster as determined 

by the Deputy Administrator; 

(2) The individual stand must have 

sustained a mortality loss or damage 

loss, as the case may be, in excess of 15 

percent after adjustment for normal 

mortality or damage, to be determined 

based on: 

(i) Each eligible disaster event, except 

for losses due to plant disease; 

(ii) For plant disease, the time period, 

as determined by the Deputy 

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Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 21117 

Administrator, for which the stand is 

infected. 

(3) The loss could not have been 

prevented through reasonable and 

available measures; and 

(4) The trees, bushes, or vines, in the 

absence of a natural disaster, would not 

normally have required rehabilitation or 

replanting within the 12-month period 

following the loss. 

(b) The damage or loss must be visible 

and obvious to the county committee 

representative. If the damage is no 

longer visible, the county committee 

may accept other evidence of the loss as 

it determines is reasonable. 

(c) The county committee may require 

information from a qualified expert, as 

determined by the county committee, to 

determine extent of loss in the case of 

plant disease or insect infestation. 

(d) The Deputy Administrator will 

determine the types of trees, bushes, 

and vines that are eligible. 

(e) An individual stand that did not 

sustain a sufficient loss as specified in 

paragraph (a)(2) of this section is not 

eligible for payment, regardless of the 

amount of loss sustained. 

§ 1416.404 Eligible orchardists and 

nursery tree growers. 

(a) To be eligible for TAP payments, 

the eligible orchardist or nursery tree 

grower must: 

(1) Have planted, or be considered to 

have planted (by purchase prior to the 

loss of existing stock planted for 

commercial purposes) trees, bushes, or 

vines for commercial purposes, or have 

a production history, for commercial 

purposes, of planted or existing trees, 

bushes, or vines; 

(2) Have suffered eligible losses of 

eligible trees, bushes, or vines occurring 

on or after October 1, 2011, as a result 

of a natural disaster or related 

condition; 

(3) Have continuously owned the 

stand from the time of the disaster until 

the time that the TAP application is 

submitted. 

(b) A new owner of an orchard or 

nursery who does not meet the 

requirements of paragraph (a) of this 

section may receive TAP payments 

approved for the previous owner of the 

orchard or nursery and not paid to the 

previous owner, if the previous owner 

of the orchard or nursery agrees to the 

succession in writing and if the new 

owner: 

(1) Acquires ownership of trees, 

bushes, or vines for which benefits have 

been approved; 

(2) Agrees to complete all approved 

practices that the original owner has not 

completed; and 

(3) Otherwise meets and assumes full 

responsibility for all provisions of this 

part, including refund of payments 

made to the previous owner, if 

applicable. 

(c) A producer seeking payment must 

not be ineligible under the restrictions 

applicable to citizenship and foreign 

corporations contained in § 1416.3(b) 

and must meet all other requirements of 

subpart A of this part. 

(d) Federal, State, and local 

governments and agencies and political 

subdivisions thereof are not eligible for 

payment under this subpart. 

§ 1416.405 Application. 

(a) To apply for TAP, a producer that 

suffered eligible tree, bush, or vine 

losses that occurred: 

(1) On or after October 1, 2011, 

through December 31, 2014, must 

provide an application for payment and 

supporting documentation to FSA by 

the later of January 31, 2015, or 90 

calendar days after the disaster event or 

date when the loss is apparent to the 

producer. 

(2) During the 2015 calendar year or 

later, must provide an application for 

payment and supporting documentation 

to FSA within 90 calendar days of the 

disaster event or date when the loss of 

trees, bushes, or vines is apparent to the 

producer. 

(b) The producer must submit the 

application for payment within the time 

specified in paragraph (a) of this section 

to the FSA administrative county office 

that maintains the producer’s farm 

records for the agricultural operation. 

(c) A complete application includes 

all of the following: 

(1) A completed application form 

provided by FSA; 

(2) An acreage report for the farming 

operation as specified in part 718, 

subpart B, of this title; 

(3) Subject to verification and a loss 

amount determined appropriate by the 

county committee, a written estimate of 

the number of trees, bushes, or vines 

lost or damaged that is certified by the 

producer or a qualified expert, 

including the number of acres on which 

the loss occurred; 

(4) Sufficient evidence of the loss to 

allow the county committee to calculate 

whether an eligible loss occurred; and 

(5) A farm operating plan, if a current 

farm operating plan is not already on 

file in the FSA county office. 

(d) Before requests for payment will 

be approved, the county committee: 

(1) Must make an eligibility 

determination based on a complete 

application for assistance; 

(2) Must verify actual qualifying 

losses and the number of acres involved 

by on-site visual inspection of the land 

and the trees, bushes, or vines; 

(3) May request additional 

information and may consider all 

relevant information in making its 

determination; and 

(4) Must verify actual costs to 

complete the practices, as documented 

by the producer. 

§ 1416.406 Payment calculations. 

(a) Payment to an eligible orchardist 

or nursery tree grower for the cost of 

replanting or rehabilitating trees, 

bushes, or vines damaged or lost due to 

a natural disaster, in excess of 15 

percent damage or mortality (adjusted 

for normal damage or mortality), will be 

calculated as follows: 

(1) For the cost of planting seedlings 

or cuttings, to replace lost trees, bushes, 

or vines, the lesser of: 

(i) 65 percent of the actual cost of the 

practice, or 

(ii) The amount calculated using rates 

established by the Deputy Administrator 

for the practice. 

(2) For the cost of pruning, removal, 

and other costs incurred for salvaging 

damaged trees, bushes, or vines, or in 

the case of mortality, to prepare the land 

to replant trees, bushes, or vines, the 

lesser of: 

(i) 50 percent of the actual cost of the 

practice, or 

(ii) The amount calculated using rates 

established by the Deputy Administrator 

for the practice. 

(b) An orchardist or nursery tree 

grower that did not plant the trees, 

bushes, or vines, but has a production 

history for commercial purposes on 

planted or existing trees and lost the 

trees, bushes, or vines as a result of a 

natural disaster, in excess of 15 percent 

damage or mortality (adjusted for 

normal damage or mortality), will be 

eligible for the salvage, pruning, and 

land preparation payment calculation as 

specified in paragraph (a)(2) of this 

section. To be eligible for the replanting 

payment calculation as specified in 

paragraph (a)(1) of this section, the 

orchardist or nursery grower who did 

not plant the stock must be a new owner 

who meets all of the requirements of 

§ 1416.404(b) or be considered the 

owner of the trees under provisions 

appearing elsewhere in this subpart. 

(c) Eligible costs for payment 

calculation include costs for: 

(1) Seedlings or cuttings, for tree, 

bush, or vine replanting; 

(2) Site preparation and debris 

handling within normal horticultural 

practices for the type of stand being reestablished, and necessary to ensure 

successful plant survival; 

(3) Pruning, removal, and other costs 

incurred to salvage damaged trees, 

bushes, or vines, or, in the case of tree 

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21118 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 

mortality, to prepare the land to replant 

trees, bushes, or vines; 

(4) Chemicals and nutrients necessary 

for successful establishment; 

(5) Labor to plant seedlings or cuttings 

as determined reasonable by the county 

committee; and 

(6) Labor used to transplant existing 

seedlings established through natural 

regeneration into a productive tree 

stand. 

(d) The following costs are not 

eligible: 

(1) Costs for fencing, irrigation, 

irrigation equipment, protection of 

seedlings from wildlife, general 

improvements, re-establishing 

structures, and windscreens. 

(2) Any other costs not listed in 

paragraphs (c)(1) through (6) of this 

section, unless specifically determined 

eligible by the Deputy Administrator. 

(e) Producers must provide the county 

committee documentation of actual 

costs to complete the practices, such as 

receipts for labor costs, equipment 

rental, and purchases of seedlings or 

cuttings. 

(f) When lost stands are replanted, the 

types planted may be different from 

those originally planted. The alternative 

types will be eligible for payment if the 

new types have the same general end 

use, as determined and approved by the 

county committee. Payments for 

alternative types will be based on the 

lesser of rates established to plant the 

types actually lost or the cost to 

establish the alternative used. If the type 

of plantings, seedlings, or cuttings 

differs significantly from the types lost, 

the costs may not be approved for 

payment. 

(g) When lost stands are replanted, the 

types planted may be planted on the 

same farm in a different location than 

the lost stand. To be eligible for 

payment, site preparation costs for the 

new location must not exceed the cost 

to re-establish the original stand in the 

original location. 

(h) Eligible orchardists or nursery tree 

growers may elect not to replant the 

entire eligible stand. If so, the county 

committee will calculate payment based 

on the number of qualifying trees, 

bushes, or vines actually replanted. 

(i) If a practice, such as site 

preparation, is needed to both replant 

and rehabilitate trees, bushes, or vines, 

the producer must document the 

expenses attributable to replanting 

versus rehabilitation. The county 

committee will determine whether the 

documentation of expenses detailing the 

amounts attributable to replanting 

versus rehabilitation is acceptable. In 

the event that the county committee 

determines the documentation does not 

include acceptable detail of cost 

allocation, the county committee will 

pro-rate payment based on physical 

inspection of the loss, damage, 

replanting, and rehabilitation. 

(j) The cumulative total quantity of 

acres planted to trees, bushes, or vines 

for which a producer may receive 

payment under this part for losses that 

occurred on or after October 1, 2011, 

can not exceed 500 acres per program 

year. 

§ 1416.407 Obligations of a participant. 

(a) Eligible orchardists and nursery 

tree growers must execute all required 

documents and complete the TAPfunded practice within 12 months of 

application approval. 

(b) Eligible orchardist or nursery tree 

growers must allow representatives of 

FSA to visit the site for the purposes of 

certifying compliance with TAP 

requirements. 

(c) Producers who do not meet all 

applicable requirements and obligations 

will not be eligible for payment. 

Signed on April 7, 2014. 

Juan M. Garcia, 

Administrator, Farm Service Agency and 

Executive Vice President, Commodity Credit 

Corporation. 

[FR Doc. 2014–08067 Filed 4–11–14; 8:45 am] 

BILLING CODE 3410–05–P 

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