Opinion ID: 8704902
Heading Depth: 3
Heading Rank: 2

Heading: 1996 PFC Claim

Text: In the 2005 Court of Claims suit, Mr. Cottrell also alleged that USDA wrongfully denied payment to him in 1996 under the Production Flexibility Contract (PFC) program. Id. at 562-63. PFC is an agricultural program designed to “support farming certainty and flexibility while ensuring continued compliance with farm conservation and wetland protection requirements.” 7 U.S.C. § 7201(b)(1). Under this program, USDA agrees make an annual payment to owners or producers in exchange for compliance with certain planting, conservation, and land use restrictions. Id. § 7211(a). As with CRP, in order to participate in the PFC program, a non-owner operator must be able to demonstrate that he will maintain control over the land for the duration of the PFC contract. Id. § 7211(b). Mr. Cottrell’s PFC claim also concerns the two farms he leased from his grandmother. On December 1, 1994, Mr. Cottrell assigned one of the leases to his mother, Nancy Cottrell, in exchange for debt forgiveness. Cottrell, 71 Fed.Cl. at 562. On July 12, 1996, Mr. Cottrell and his mother applied to enroll the two properties in the PFC program. The County Committee determined that it could not issue payment because of the litigation regarding Ms. Stuller’s estate. Further, Mr. Cottrell’s uncle, James Stuller had raised questions regarding whether Mr. Cottrell had an interest in the leases at all, since one of them had expired and the other had been assigned to Nancy Cottrell. Id. On January 8, 2001, the County Committee reiterated that it could not issue payment unless Mr. Cottrell provided (1) an agreement signed by all the parties with a claim to the land or (2) a final court order. Id. at 562-63. Mr. Cottrell appealed, and on March 26, 2001, the National Appeals Division denied the appeal. Id. at 563. When the family estate litigation ended, Mr. Cottrell sent the final court determination to the County Committee. The County Committee responded by letter on August 15, 2001, indicating that it would consider Mr. Cottrell as owner of the property for the 1996 crop year, and Nancy Cottrell as tenant. Id. Because the PFC application incorrectly designated Nancy Cottrell as the owner, the County Committee denied the application; suggested that Mr. Cottrell submit a revised application; and noted that Mr. Cottrell had 30 days to appeal to the National Appeals Division. Mr. Cottrell did not appeal. Instead, he alleges that on September 17, 2001, the County Executive Director told him and his mother that if they did not agree to a revised PFC providing for all-payment to Nancy Cottrell, no monies would be paid. Mr. Cottrell asserts that he signed the revised PFC under duress. As a result, Mr. Cottrell submitted an amended application, leading the Committee to make all PFC payments to his mother. Id. at 568. In the 2005 Court of Claims suit, Mr. Cottrell also alleged that USDA wrongfully denied payment for the 1996 PFC program. The Court of Claims dismissed the PFC claim, finding that Mr. Cottrell failed to exhaust administrative remedies. Id.