[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32112-32116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11423]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2022-0006]


Notice of Funds Availability (NOFA) for the Commodity Container 
Assistance Program

AGENCY: Farm Service Agency, Department of Agriculture (USDA).

ACTION: Notification of funds availability.

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SUMMARY: The Farm Service Agency (FSA) is announcing the availability 
of funding for the Commodity Container Assistance Program (CCAP) in 
response to temporary market disruptions that have created logistical 
challenges associated with all aspects of the availability and flow of 
containers to transport agricultural commodities and products made from 
those commodities (collectively referred to as ``agricultural 
commodities''), and are preventing or delaying American-grown 
agricultural commodities from reaching their markets. CCAP will be 
focused on increasing intermodal container capacity through 
partnerships with the Port of Oakland, in Oakland, California, and the 
Northwest Seaport Alliance (NWSA), a marine cargo operating partnership 
between the Port of Seattle and the Port of Tacoma in Washington State. 
Both the Port of Oakland and the ports managed by NWSA have been 
identified as key gateways for American-grown agricultural commodities, 
and each have also experienced significant challenges with the flow of 
containerized agricultural commodities. To assist owners of American-
grown agricultural commodities in shipping their commodities from U.S. 
ports to global markets, CCAP will support improved use of empty 
shipping containers, along with the prepositioning and temporary 
storage of filled shipping containers near export terminals. USDA may 
pursue additional temporary partnerships with other ports or intermodal 
facilities as supply chain conditions warrant, if funding is available. 
In this document, FSA is providing the eligibility requirements, 
application process, and payment calculations for CCAP.

DATES: 
    Funding availability: Implementation will begin May 27, 2022.
    Applications Due Date: We will accept applications for funding 
through January 31, 2023.
    Comment Due Date: We will consider comments on the information 
collection request discussed in the Paperwork Reduction Act section 
that we receive by: July 26, 2022.

ADDRESSES: Comments: We invite you to submit comments on the 
information collection request. You may submit comments using any of 
the following methods, although FSA prefers that you submit comments 
electronically through the Federal eRulemaking Portal:
    <bullet> Federal eRulemaking Portal: Go to http://www.regulations.gov and search for Docket ID FSA-2021-0012. Follow the 
online instructions for submitting comments.
    <bullet> Mail, Hand-Delivery, or Courier: Director, Price Support 
Division, FSA, USDA, 1400 Independence Avenue SW, Stop 0510, 
Washington, DC 20250-0522. In your comment, specify the docket ID FSA-
2022-0006.
    All comments received, including those received by mail, will be 
posted without change and will be publicly available on http://www.regulations.gov.
    Applications: To apply, send a complete form FSA-862, Commodity 
Container Assistance Program (CCAP) Application, to the FSA National 
Office by email to: <a href="/cdn-cgi/l/email-protection#f8abb5d6bea8b9bbd6beabb9d6bbbbb9a8b88d8b9c99d69f978e"><span class="__cf_email__" data-cfemail="2b7866056d7b6a68056d786a0568686a7b6b5e584f4a054c445d">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Danielle L. Cooke; telephone: (202) 
720-1919; or by email: <a href="/cdn-cgi/l/email-protection#d1b5b0bfb8b4bdbdb4ffb2bebebab491a4a2b5b0ffb6bea7"><span class="__cf_email__" data-cfemail="99fdf8f7f0fcf5f5fcb7faf6f6f2fcd9eceafdf8b7fef6ef">[email protected]</span></a>. Persons with 
disabilities who require alternative means for communication should 
contact the USDA Target Center at (202) 720-2600 (voice) or (844) 433-
2774 (toll-free nationwide).

SUPPLEMENTARY INFORMATION:

Background

    As agricultural producers and companies deal with the continued 
impacts of the COVID-19 pandemic, ocean carriers' poor service and 
refusal to serve customers, including refusing to provide and ship 
containers, have exacerbated existing challenges. Specifically, ocean 
carriers have made fewer shipping containers available for U.S. 
agricultural commodities, repeatedly changed return dates, and charged 
unjust fees. These same ocean carriers have short-circuited the 
pathways typically used to make shipping containers available to be 
filled with agricultural and other goods, and they have subsequently 
rushed these containers back to foreign ports empty. These trends have 
and continue to be seen at several U.S. ports, including but not 
limited to the Port of Oakland, the Port of Seattle, and the Port of 
Tacoma, where many ocean carriers have partially or completely 
suspended their services. Historically, approximately 60 percent of the 
products marketed through the Port of Oakland were agricultural 
commodities. Now, because of ocean carriers' disruptive behavior, some 
American-grown agricultural commodities have faced severe challenges in 
reaching their markets. Containerized exports of agricultural goods 
fell by 17 percent from California ports, costing California 
agriculture an estimated $2.1 billion May to September 2021,\1\ with a 
more severe decline of 34 percent for the Port of Oakland. Similar 
challenges exist at the ports managed by the NWSA in Washington, where 
congestion-induced impacts to vessel schedules have made it difficult 
for agricultural goods to be loaded on ships at the export terminals. 
Containerized exports of agricultural commodities from Seattle are down 
30 percent during the last 6 months of 2021 while empty shipping 
containers leaving the Port of Seattle have increased by a similar 
percentage.
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    \1\ See https://giannini.ucop.edu/publications/are-update/issues/2021/25/2/containergeddon-and-california-agriculture/.
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    In accordance with 15 U.S.C. 714c, the Secretary is using CCC funds 
to assist owners of agricultural commodities in shipping domestic 
agricultural commodities out of the Port of Oakland and NWSA. Funds 
available to CCC will be used as authorized by section 5(b) of the CCC 
Charter Act (15 U.S.C. 714c(b)). This authority will be used to assist 
in making available materials and facilities in connection with the 
marketing of agricultural commodities. It will assist owners of U.S. 
agricultural commodities with ongoing market disruptions and facilitate 
the recovery of shipping and other logistical services required to 
bring domestically produced agricultural commodities to markets.

[[Page 32113]]

    Specifically, FSA will provide a $125 per container payment to 
partially assist agricultural commodity owners with the additional 
logistical expenses associated with picking up empty shipping 
containers at the Port of Oakland to be filled with agricultural 
commodities. The Port of Oakland has opened a 25-acre temporary 
terminal to prepare and ease the provision of empty containers to be 
filled, which will ultimately reduce congestion at the main terminal. 
Through its separate gate, this terminal will allow for quicker pickup 
of empty containers and provide a pathway to bypass the congestion at 
the main terminals. The separate gate will also provide for increased 
access to available equipment and ultimately help avoid fewer 
unpredictable congestion surcharges for trucks. Under normal 
circumstances empty containers would be easily available from ocean 
carriers at the regular terminals, the combination of congestion, 
potential for additional drayage, and the terminal fees will add cost 
to the agricultural commodity owners and necessitates the $125 per 
container payment.
    Additionally, through the partnerships with both the Port of 
Oakland and NWSA, FSA will offer payments of $200 per container for 
filled dry containers and $400 per container for filled refrigerated 
containers (generally referred to as ``reefer containers'') to owners 
who deliver such filled containers to designated temporary storage 
terminals. These payments will help address the logistical costs of 
moving a container twice--first to the preposition terminal, and second 
to the terminal loading the vessel--along with the costs associated 
with temporary storage. Prior to the recent unpredictable delivery and 
export windows, owners of agricultural commodities had been provided 
sufficient delivery windows and notice to deliver the agricultural 
commodities directly to the terminal that loads the vessel.
    In each of these cases, the agricultural commodity owner will 
likely incur an extra charge for short distance transportation, or 
``drayage,'' fees from the terminal operator or ocean carrier and daily 
storage for any prepositioned filled containers. The drayage alone is 
expected to range between $150 and $250 per container based on 
discussions with agricultural shippers operating in the Oakland, 
Seattle, and Tacoma regions. Temporary storage of filled containers is 
expected to cost about $50 per dry container per day and $200 for 
reefer containers. The per-container fee for reefer containers is 
higher, since reefer containers require additional electricity and 
labor costs, which directly result in higher storage and transportation 
costs. The value of CCAP for U.S. companies lies in the benefits of 
increasing the ability of moving containers to meet narrow and changing 
shipping windows provided by the ocean carriers. These payments will 
lessen the burden on owners to manage the logistical challenges and 
continue to move containers despite the service challenges. All 
payments to agricultural commodity owners will be made in arrears and 
verified with terminal records.
    USDA will make payments as frequently as monthly to eligible owners 
or designated marketing agents of U.S. agricultural commodities based 
on the number of eligible shipping containers they picked up or stored 
starting retroactively back to March 1, 2022, through December 31, 
2022, from eligible ports to ship agricultural commodities to their 
designated markets on container ships.
    FSA is administering the direct payments under the general 
supervision and direction of the Deputy Administrator.

Definitions

    The following definitions apply to this notice:
    Deputy Administrator means Deputy Administrator for Farm Programs, 
Farm Service Agency, U.S. Department of Agriculture, or their designee.
    Designated marketing agent means an individual or entity that has 
explicit written permission to apply for CCAP from, and on behalf of, 
the owner of the agricultural commodities.
    Owner means a business entity, including cooperative, handler, 
company, or exporter that is liable for and has ownership of the 
agricultural commodities in transit. Only one owner is allowed to apply 
for payment per container.
    Picked up means the applicant picked up empty shipping containers 
from the designated port terminal to be filled with eligible 
agricultural commodities.
    Stored means the applicant delivered the shipping container filled 
with eligible agricultural commodities to the designated port terminal 
for temporary storage at a designated storage terminal.
    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.

Eligible Commodities

    Eligible agricultural commodities are agricultural commodities 
(other than tobacco) that are grown or produced in the United States 
for food, feed, or fiber, and products made from those commodities, 
including forestry products, that are to be or were shipped in a 
shipping container picked up from the Port of Oakland or contained 
within a filled shipping container stored at the Port of Oakland or the 
NWSA locations from March 1, 2022, through December 31, 2022. A list of 
examples of eligible and ineligible commodities will be posted on the 
FSA website for CCAP.

Eligibility

    To be eligible for a CCAP payment, each applicant must:
    <bullet> Own domestically-grown or produced agricultural 
commodities or be the designated marketing agent of the owner;
    <bullet> Have picked up containers from the Port of Oakland or 
stored containers at the Port of Oakland or NWSA and filled the 
containers with agricultural commodities that are grown or produced in 
the United States for food, feed, or fiber, and products made from 
those commodities;
    <bullet> Have properly executed power of attorney or signature 
authority if representing an individual or entity;
    <bullet> Submit completed application as specified in the 
Application Process section below; and
    <bullet> Have a Unique Entity Identifier (created in and used by 
www.SAM.gov).

Application Process

    FSA will accept applications from May 31, 2022 through January 31, 
2023. To apply for CCAP, each eligible applicant must submit a 
completed form FSA-862, Commodity Container Assistance Program (CCAP) 
Application to provide the monthly number of containers picked up or 
stored by type of container and by port. Applicants may submit 
applications on a monthly basis, all at once at the end of CCAP, or for 
a combination of months, but applicants should not submit duplicate 
information for a month that has already been previously submitted. 
Applications should be submitted to the FSA National Office by email to 
the following email address: <a href="/cdn-cgi/l/email-protection#491a04670f19080a670f1a08670a0a0819093c3a2d28672e263f"><span class="__cf_email__" data-cfemail="ebb8a6c5adbbaaa8c5adb8aac5a8a8aabbab9e988f8ac58c849d">[email protected]</span></a>.
    Applicants are to submit only one FSA-862 for all shipping 
containers picked up or stored and report the number of containers 
picked up from the specified port for the relevant month(s), regardless 
of the number of agricultural commodities that are packed and shipped 
out of the designated port. In other words, the application is based on 
the number of shipping containers picked up or stored and used for U.S. 
agricultural

[[Page 32114]]

commodities, but it is not based on the type of agricultural commodity. 
Shipping containers that are filled with non-agricultural commodities 
are not eligible for CCAP payments. Revised applications will not be 
allowed without supporting documentation if the application has been 
approved for payment and any revised applications must be submitted no 
later than January 31, 2023. Subject to available funds, CCAP payments 
will not be issued until an applicant certifies the number of 
containers picked up or stored each month or group of months at the 
designated port, as applicable. The applicant must certify to the total 
number of containers picked up or stored by the application period 
deadline as specified in this document.
    The number and type of shipping containers claimed on the FSA-862 
will be as certified by the applicant and are subject to spot check. 
Applicants may also be asked to provide documentation of what 
agricultural commodity was loaded into the container in order to 
confirm that the shipping container was used for agricultural 
commodities.
    If requested by FSA, the applicant must provide supporting 
documentation to verify the accuracy of information provided on the 
application, including to substantiate the number and type of shipping 
containers, ownership of the commodities, or authority to act as a 
designated marketing agent. If any supporting documentation is 
requested, the documentation must be submitted to FSA within 30 days 
from the request or the application will be disapproved by FSA.

Payment Rates and Calculations

    Information and expert opinion from the Port of Oakland and the 
NWSA authorities, along with information associated with the logistics 
movement costs of different container types, were used to estimate the 
increased additional movement logistics costs associated with 
agricultural containerized exports.
    Payments will be calculated based upon the port, whether containers 
are picked up or stored, and the type of containers (empty containers 
versus filled dry or reefer containers). The CCAP payment rate is on a 
per container basis as shown in the following table.

------------------------------------------------------------------------
                                                          CCAP payment
                  Location and action                       rate ($/
                                                           Container)
------------------------------------------------------------------------
Picked up empty shipping containers:
    Port of Oakland...................................              $125
Stored filled shipping containers:
    Port of Oakland and NWSA--
        Dry containers................................               200
        Reefer containers.............................               400
------------------------------------------------------------------------

    The CCAP payment will be calculated as follows:
    Number of containers picked up from or stored in the designated 
port multiplied by the respective CCAP payment rate for that type of 
container.
    For example, the owner of agricultural goods that are stored at the 
NWSA facility submits an application specifying 10 dry containers and 3 
reefer containers for the month of March 2022. FSA calculates the 
payment by multiplying 10 x $200 for the dry containers, and 3 x $400 
for the reefer containers, for a total payment of $3,200 for that 
month.
    The temporary storage of a container should be reported only for 
the month that the container was delivered to the designated port 
terminal for temporary storage even if the storage period covers parts 
of more than one month. This is a one-time storage payment. It does not 
matter how long a container is stored. Therefore, the same container 
and shipment should not be included for a storage payment on an 
application more than once.
    The applicant may be eligible to receive separate payments for the 
same container: Once for being picked up empty and later for being 
temporarily stored at a designated port. For example, if an almond 
producer picked up 10 empty containers in May to be filled with almonds 
from the designated terminal to provide empty containers at the Port of 
Oakland, that almond producer would be eligible to apply for the $125 
per container payment for those 10 empty containers. If that same 
almond producer then immediately filled and shipped 5 of those 
containers directly through the export terminal, but the remaining 5 
containers were filled and delivered to the designated terminal to be 
temporarily stored for a few days in June before being drayed to the 
export terminal and loaded in a vessel later in June, the almond 
producer would be eligible to apply for the $200 per container payment 
for the temporary storage of 5 containers in June (dry containers in 
this example). Only containers picked up or temporarily stored at the 
designated storage terminal are eligible, so even if the 5 containers 
that were exported in May were held for a few days at the export 
terminal, they would not be eligible for CCAP. In this example, FSA 
calculates the payment by multiplying 10 x $125 for picking up empty 
containers in May, and 5 x $200 for the temporary storage of dry 
containers in June, for a total payment of $2,250 ($1,250 for May and 
$1,000 for June).

Provisions Requiring Refund to FSA

    In the event that any application for a CCAP payment resulted from 
erroneous information reported by the applicant, FSA will recalculate 
the payment, and the applicant must refund any excess payment to FSA, 
including interest to be calculated from the date of the disbursement 
to the applicant. If, for whatever reason, FSA determines that the 
applicant misrepresented the number and type of shipping containers, 
the application will be disapproved, and the applicant must refund the 
full CCAP payment to FSA with interest from the date of disbursement. 
Any required refunds must be resolved in accordance with 7 CFR part 3.

Miscellaneous Provisions

    All applicants must provide the name and address of the entity 
receiving payment. Appeal regulations specified in 7 CFR parts 11 and 
780 and equitable relief and finality provisions specified in 7 CFR 
part 718, subpart D, apply to determinations under CCAP. The 
determination of matters of general applicability that are not in 
response to, or result from, an individual set of facts in an 
individual participant's application for payment are not matters that 
can be appealed. Such matters of general applicability include, but are 
not limited to, the determination of applicable time periods and the 
payment calculation for CCAP.
    Participants are required to retain documentation in support of 
their application for 3 years after the date of

[[Page 32115]]

approval. Participants receiving CCAP payments or any other person that 
furnishes such information to USDA must permit authorized 
representatives of USDA or the Government Accountability Office, during 
regular business hours, to enter the participant's business and to 
inspect, examine, and to allow representatives to make copies of books, 
records, or other items for the purpose of confirming the accuracy of 
the information provided by the participant.
    Applicants have a right to a decision in response to their 
application. If an applicant files a late CCAP application, the 
application will be considered a request to waive the deadline.
    Requests to waive or modify program provisions, including requests 
to waive the deadline, are at the discretion of the Deputy 
Administrator. The Deputy Administrator has the authority to waive or 
modify application deadlines and other requirements or program 
provisions not specified in law in cases where the Deputy Administrator 
determines it is (1) equitable to do so and (2) where the lateness or 
failure to meet such other requirements or program provisions do not 
adversely affect the operation of CCAP.
    Applicants who request to waive or modify CCAP provisions do not 
have a right to a decision on those requests, and the Deputy 
Administrator's refusal to exercise discretion on requests to waive or 
modify CCAP provisions will not be considered an adverse decision and 
is, by itself, not appealable.
    The regulations governing offsets in 7 CFR part 3 apply to CCAP 
payments.
    In either applying for or participating in CCAP, or both, the 
applicant is subject to laws against perjury (including but not limited 
to 18 U.S.C. 1621). If the applicant willfully makes and represents as 
true any verbal or written declaration, certification, statement, or 
verification that the applicant knows or believes not to be true, in 
the course of either applying for or participating in CCAP, or both, 
then the applicant may be found to be guilty of perjury. Except as 
otherwise provided by law, if guilty of perjury the applicant may be 
fined, imprisoned for not more than 5 years, or both, regardless of 
whether the applicant makes such verbal or written declaration, 
certification, statement, or verification within or outside the United 
States.

Paperwork Reduction Act Requirements

    In compliance with the Paperwork Reduction Act (44 U.S.C. Chapter 
35), FSA is requesting comments from interested individuals and 
organizations on the information collection request associated with 
CCAP. After the 60-day period ends, the information collection request 
will be submitted to the Office of Management and Budget (OMB) for a 3-
year approval. To start the CCAP information collection approval, prior 
to publishing this notice, FSA received emergency approval from OMB for 
6 months.
    Title: Commodity Container Assistance Program (CCAP).
    OMB Control Number: 0560-0310.
    Type of Request: New Collection.
    Abstract: FSA will provide assistance to eligible owners or 
designated marketing agents of U.S. agricultural commodities using 
eligible shipping containers from the Port of Oakland and designated 
ports associated with the NWSA. The eligible owners or designated 
marketing agents must complete the form FSA-862, CCAP Application for 
FSA to qualify for CCAP payments and to calculate the CCAP payments 
based upon the port, type of service (temporary storage versus 
providing empty containers) and the type of the shipping containers 
(empty containers or filled dry or reefer containers). FSA may request 
additional supporting documents for verification of information on a 
completed CCAP Application.
    For the following estimated total annual burden on respondents, the 
formula used to calculate the total burden hour is the estimated 
average time per response multiplied by the estimated total annual 
responses.
    Estimate of Respondent Burden: Public reporting burden for this 
information collection is estimated to average 0.33 hours per response 
to include the time for reviewing instructions, searching for 
information, gathering and maintaining the data, and completing and 
reviewing the collection of information.
    Type of Respondents: Businesses.
    Estimated Annual Number of Respondents: 200.
    Estimated Number of Responses Per Respondent: 8.
    Estimated Total Annual Responses: 1,600.
    Estimated Average Time Per Response: 0.33.
    Estimated Total Annual Burden on Respondents: 528.
    We are requesting comments on all aspects of this information 
collection to help us to:
    (1) Evaluate whether the collection of information is necessary for 
the proper performance of the functions of the FSA, including whether 
the information will have practical utility;
    (2) Evaluate the accuracy of FSA's estimate of burden including the 
validity of the methodology and assumptions used;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
that are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology.
    All comments received in response to this document, including names 
and addresses when provided, will be a matter of public record. 
Comments will be summarized and included in the submission for Office 
of Management and Budget approval.

Environmental Review

    The environmental impacts 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).
    The purpose of CCAP is to establish a marketing assistance program 
to support agricultural commodity owners of U.S. agricultural 
commodities for pick up or temporary storage of eligible shipping 
containers from the Port of Oakland and NWSA from March 1, 2022, 
through December 31, 2022. The limited discretionary aspects of CCAP do 
not have the potential to impact the human environment as they are 
administrative. Accordingly, these discretionary aspects are covered by 
the Categorical Exclusions in 7 CFR 799.31(b)(6)(iii) that applies to 
price support programs.
    No Extraordinary Circumstances (7 CFR 799.33) exist. As such, the 
implementation of CCAP and the participation in CCAP do not constitute 
major Federal actions that would significantly affect the quality of 
the human environment, individually or cumulatively. Therefore, FSA 
will not prepare an environmental assessment or environmental impact 
statement for this action and this document serves as documentation of 
the programmatic environmental compliance decision for this federal 
action.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the

[[Page 32116]]

Assistance Listing,\2\ to which this document applies is 10.966, 
Commodity Container Assistance Program (CCAP).
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    \2\ See https://sam.gov/content/assistance-listings.
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USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible Agency or USDA TARGET Center at (202) 720-2600 (voice and 
TTY) or (844) 433-2774 (toll-free nationwide). Additionally, program 
information may be made available in languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: <a href="/cdn-cgi/l/email-protection#3877797b784d4b5c59165f574e"><span class="__cf_email__" data-cfemail="5b141a181b2e283f3a753c342d">[email protected]</span></a>.
    USDA is an equal opportunity provider, employer, and lender.

William Marlow,
Acting Administrator, Farm Service Agency.
[FR Doc. 2022-11423 Filed 5-26-22; 8:45 am]
BILLING CODE 3410-05-P


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