65FR36549 Agricultural Disaster and Market Assistance, Part 3/4
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Posting-number: Volume 65, Issue 111, Page 36549, Part 1
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6205. Telephone requests for copies of the agreement will be accepted
at (816) 926-6662. In order to participate in the program authorized by
this subpart, domestic users and exporters must execute the ELS Cotton
Domestic User/Exporter Agreement and forward the original and one copy
to KCCO.
Sec. 1427.1206 Form of payment.
Payments in accordance with this subpart shall be made available in
the form of commodity certificates issued in accordance with part 1470
of this chapter, or in cash, at the option of the participant, as
determined and announced by CCC.
Sec. 1427.1207 Payment rate.
(a) The payment rate for purposes of calculating the payments made
in accordance with this subpart shall be determined as follows:
(1) Beginning the Tuesday following August 1 and ending the week in
which the current LFQ and the forward LFQ may first become available,
the payment rate shall be the difference between the U.S. Pima spot
price and the LFQ in the fourth week of a consecutive 4-week period in
which the U.S. Pima spot price exceeded the LFQ each week, and the LFQ
was less than 134 percent of the current crop year loan level for U.S.
Pima cotton, grade 3, staple 44, micronaire 3.5 or higher in all weeks
of the 4-week period; and
(2) Beginning the Wednesday through Tuesday week after the week in
which the current LFQ and the forward LFQ may first become available
and ending the Tuesday following July 31, the payment rate shall be the
difference between the U.S. Pima spot price and the current LFQ in the
fourth week of a consecutive 4-week period in which the U.S. Pima spot
price exceeded the current LFQ each week, and the current LFQ was less
than 134 percent of the current crop year loan level for U.S. Pima
grade 3, staple 44, micronaire 3.5 or higher in all weeks of the 4-week
period. If the current LFQ is not available, the payment rate may be
the difference between the U.S. Pima spot price and the forward LFQ.
(b) Whenever a 4-week period under paragraph (a) of this section
contains a combination of LFQ for only for one to three weeks and
current LFQ and forward LFQ only for one to three weeks, such as may
occur in the spring when the LFQ price is succeeded by the current LFQ
and the forward LFQ (``Spring transition'') and at the start of a new
marketing year when the current LFQ and the forward LFQ are succeeded
by the LFQ (``marketing year transition''), under paragraphs (a)(1) and
(a)(2) of this section, during both the spring transition and the
marketing year transition periods, to the extent practicable, the
current LFQ in combination with the LFQ shall be taken into
consideration during such 4-week periods to determine whether a payment
is to be issued. During both the spring transition and the marketing
year transition periods, if the current LFQ is not available, the
forward LFQ in combination with the LFQ shall be taken into
consideration during such 4-week periods to determine whether a payment
is to be issued.
(c) For purposes of this subpart, with respect to the determination
of the U.S. Pima spot price, the LFQ, the current LFQ and the forward
LFQ:
(1) If daily quotations are not available for one or more days of
the 5-day period, the available quotations during the period will be
used;
(2) If the U.S. Pima spot price is not available or if none of the
LFQ, current LFQ or forward LFQ is available, the payment rate shall be
zero and shall remain zero unless and until sufficient U.S. Pima spot
prices and/or LFQ again become available, the U.S. Pima spot price
exceeds the LFQ, the current LFQ or the forward LFQ, as the case may
be, and the LFQ, the current LFQ, or the forward LFQ, as the case may
be, is less than 134 percent of the current crop year loan rate for
U.S. Pima for 4 consecutive weeks.
(d) Payment rates for loose, reginned motes and semi-processed
motes that are of a quality suitable, without further processing, for
spinning, papermaking or bleaching shall be based on a percentage of
the basic rate for baled lint, as specified in the ELS Cotton Domestic
User/Exporter Agreement.
Sec. 1427.1208 Payment.
(a) Payments in accordance with this subpart shall be determined by
multiplying:
(1) The payment rate, determined in accordance with Sec. 1427.127,
by
(2) The net weight (gross weight minus the weight of bagging and
ties) determined in accordance with paragraph (b) of this section, of
eligible ELS cotton bales that are opened by an eligible domestic user
or sold for export by an eligible exporter during the Wednesday through
Tuesday period following a week in which a payment rate is established.
(b) For the purposes of this subpart, the net weight shall be
determined based upon:
(1) For domestic users, the weight on which settlement for payment
of the ELS cotton was based (``landed mill weight'');
(2) For reginned motes processed by an end user who converted such
motes, without rebaling, to an end use in a continuous manufacturing
process, the net weight of the reginned motes after final cleaning;
(3) For exporters, the shipping warehouse weight or the gin weight
if the ELS cotton was not placed in a warehouse, of the eligible cotton
unless the exporter obtains and pays the cost of having all the bales
in the shipment reweighed by a licensed weigher and furnishes a copy of
the certified reweights.
(c) For the purposes of this subpart, eligible ELS cotton will be
considered--
(1) Purchased by the domestic user on the date the bale is opened
in preparation for consumption; and
(2) Exported by the exporter on the date that CCC determines is the
date on which the cotton is shipped for export.
(d) Payments in accordance with this subpart shall be made
available upon application for payment and submission of supporting
documentation, including proof of purchases and consumption of eligible
ELS cotton by the domestic user or proof of export of eligible ELS
cotton by the exporter, as required by the provisions of the ELS Cotton
Domestic User/Exporter Agreement issued by CCC.
9. Revise 7 CFR part 1439 to read as follows:
PART 1439--EMERGENCY LIVESTOCK ASSISTANCE
Subpart A--General Provisions
Sec.
1439.1 Applicability and general statement.
1439.2 Administration.
1439.3 Definitions.
1439.4 Liens and claims of creditors.
1439.5 Assignments of payments.
1439.6 Appeals.
1439.7 Misrepresentation, scheme or device.
1439.8 Refunds to CCC; joint and several liability.
1439.9 Cumulative liability.
1439.10 Benefits limitation.
1439.11 Gross revenue limitation.
1439.12 Maintenance of books and records.
Subpart B--1998-99 Livestock Assistance Program
1439.101 Applicability.
1439.102 Definitions.
1439.103 Application process.
1439.104 County committee determinations of general applicability.
1439.105 Loss criteria.
1439.106 Livestock producer eligibility.
1439.107 Calculation of assistance.
1439.108 Availability of funds.
Subpart C--Livestock Indemnity Program
1439.201 Applicability.
1439.202 Administration.
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1439.203 Definitions.
1439.204 Sign-up period.
1439.205 Proof of loss.
1439.206 Indemnity benefits.
1439.207 Availability of funds.
1439.208 Limitations on payments.
Subpart D--Pasture Recovery Program
1439.301 Administration.
1439.302 Definitions.
1439.303 General description.
1439.304 Eligible persons.
1439.305 Eligible land.
1439.306 Duration of contracts.
1439.307-1439.319 [Reserved]
1439.320 Obligations of participant.
1439.321 Obligations of the Commodity Credit Corporation.
1439.322 Eligible practices.
1439.323-1439.329 [Reserved]
1439.330 Signup.
1439.331 Applications for PRP contracts.
1439.332 PRP contract.
1439.333 Contract modifications.
1439.334-1439.339 [Reserved]
1439.340 Payments.
1439.341 Levels and rates for payments.
1439.342 Method of payment.
1439.344-1439.349 [Reserved]
1439.350 Payments to participants.
1439.351 Violations.
1439.352 Executed PRP contract not in conformity with regulations.
1439.353 Performance based upon advice or action of the
Department.
1439.354 Access to land under contract.
1439.355 Miscellaneous.
Subpart E--Livestock Indemnity Program for Contract Growers
1439.401 Applicability.
1439.402 [Reserved]
1439.403 Definitions.
1439.404 Application period.
1439.405 Proof of loss.
1439.406 Indemnity benefits.
1439.407 Proration of claims.
1439.408 Miscellaneous provisions.
Subparts F-H [Reserved]
Subpart I--American Indian Livestock Feed Program
1439.900 [Reserved]
1439.901 Applicability.
1439.902 Administration.
1439.903 Definitions.
1439.904 Region.
1439.905 Responsibilities.
1439.906 Program availability.
1439.907 Eligibility.
1439.908 Payment application.
1439.909 Payments.
1439.910 Program suspension and termination.
1439.911 Appeals.
1439.912--1439.915 [Reserved]
Authority: 15 U.S.C. 714b and 714c9; Pub. L. 105-277, 112 Stat.
2681-42 through 44; Pub. L. 106-31, 113 Stat. 57; Pub. L. 106-78,
113 Stat. 1135; and Pub. L. 106-113, 113 Stat. 1501.
Subpart A--General Provisions
Sec. 1439.1 Applicability and general statement.
(a) The regulations in this part set forth the terms and conditions
applicable to programs that may be made available to livestock
producers under various statutory provisions. Unless otherwise
specified, the regulations in this subpart shall apply to all programs
operated under this part.
(b) The regulations in this part 1439 in effect prior to March 17,
1999, (See 7 CFR Parts 1200 to 1599, revised as of January 1, 1999) are
applicable with respect to any emergency livestock assistance program
that existed prior to March 17, 1999. The part 1439 regulations in
effect on January 1, 2000 (See 7 CFR Parts 1200 to 1599, revised as of
January 1, 2000) for the Flood Compensation Program shall continue to
apply to all pending or new matters under that program.
(c) Nothing in this subpart shall be read as to require any
expenditure of funds for a program in an overall amount greater than
that determined to be appropriate by CCC.
Sec. 1439.2 Administration.
(a) This part shall be administered by CCC through, and as
delegated to the Deputy Administrator for Farm Programs under the
general direction and supervision of the Executive Vice President, CCC.
The program shall be carried out in the field by State and county
committees of the Farm Service Agency of the U.S. Department of
Agriculture.
(b) State and county committees, and representatives and employees
thereof, do not have the authority to modify or waive any of the
provisions of the regulations in this part, as amended or supplemented.
(c) The State committee shall take any action required by this part
that has not been taken by the county committee. The State committee
shall also:
(1) Correct, or require a county committee to correct, any action
taken by such county committee that is not in accordance with this
part; or
(2) Require a county committee to withhold taking any action that
is not in accordance with this part.
(d) No delegation in this section to a State or county committee
shall preclude the Executive Vice President, CCC, or a designee, from
determining any question arising under the program or from reversing or
modifying any determination made by a State or county committee. The
Deputy Administrator may waive or modify deadlines or other program
requirements of this part to the extent that such a waiver or
modification is otherwise permitted by law and is determined to be
appropriate, serves the goals of the program, and does not adversely
affect the operation of the program.
Sec. 1439.3 Definitions.
The definitions set forth in this section shall be applicable to
all subparts contained in this part unless otherwise noted, or unless
the definitions conflict with the definitions in subparts other than
this subpart A, in which case they shall not apply.
Carrying capacity means the number of acres of pasture required to
provide 15.7 pounds of feed grain equivalent per day for one animal
unit during the period the pasture is normally grazed.
CCC means the Commodity Credit Corporation.
Deputy Administrator or DAFP means the Deputy Administrator for
Farm Programs, Farm Service Agency (FSA), or a designee.
Equine animals used for food or in the production of food means
horses, mules, and donkeys that are:
(1) Used commercially for human food;
(2) Maintained for commercial sale to processors of food for human
consumption; or
(3) Used in the production of food and fiber on the owner's farm,
such as draft horses, or cow ponies.
Executive Vice President means the Executive Vice President, CCC,
or a designee of the Executive Vice President.
FSA means the Farm Service Agency.
Livestock producer means a person who is determined to receive 10
percent or more of the person's gross income, as determined by the
Secretary, from the production of livestock and is:
(1) A citizen of, or legal resident alien in the United States; or
(2) A farm cooperative, private domestic corporation, partnership,
or joint operation in which a majority interest is held by members,
stockholders, or partners who are citizens of, or legal resident aliens
in the United States; any Indian tribe under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et seq.); any
Indian organization or entity chartered under the Indian Reorganization
Act (25 U.S.C. 461 et seq.) or entity chartered under the Indian
Reorganization Act; any tribal organization under the Indian Self-
Determination and Education Assistance Act; and any economic enterprise
under the Indian Financing Act of 1974 (25 U.S.C. 1451 et seq.).
Natural disaster means a generalized disease, insect infestation,
flood,
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drought, fire, hurricane, earthquake, storm, hot weather, or other
natural disaster.
Person means an individual or entity, including any organization,
of any kind, provided that for per-person payment limitations the rules
in part 1400 of this chapter shall be determinative in defining who is
considered to be a separate person for such purposes.
Poultry means domesticated chickens, including egg-producing
poultry, ducks, geese and turkeys.
Secretary means the Secretary of Agriculture or a designee of the
Secretary.
Seeded small grain forage crops means wheat, barley, oats, rye, and
triticale.
State committee, State office, county committee, or county office,
means the respective FSA committee or office.
United States means all fifty states of United States, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, and the District
of Columbia.
Sec. 1439.4 Liens and claims of creditors.
Any payment or benefit or portion thereof due any person under this
part shall be allowed without regard to questions of title under State
law, and without regard to any claim or lien in favor of any person
except agencies of the U.S. Government.
Sec. 1439.5 Assignments of payments.
Payments that are earned by a person under this part may be
assigned in accordance with the provisions of part 1404 of this chapter
and the applicable FSA or CCC forms for assignments.
Sec. 1439.6 Appeals.
Any person who is dissatisfied with a determination made with
respect to this part may make a request for reconsideration or appeal
of such determination in accordance with the appeal regulations set
forth at parts 780 and 11 of this title.
Sec. 1439.7 Misrepresentation, scheme or device.
A person shall be ineligible to receive assistance under any
program under this part, and be subject to such other remedies as may
be allowed by law, if, with respect to such program, it is determined
by the State committee or the county committee or an official of FSA
that such person has:
(a) Adopted any scheme or other device that tends to defeat the
purpose of a program operated under this part;
(b) Made any fraudulent representation with respect to such
program; or
(c) Misrepresented any fact affecting a program determination.
Sec. 1439.8 Refunds to CCC; joint and several liability.
(a) In the event there is a failure to comply with any term,
requirement, or condition for payment or assistance arising under this
part, and if any refund of a payment to CCC shall otherwise become due
in connection with this part, all payments made in regard to such
matter shall be refunded to CCC, together with interest as determined
in accordance with paragraph (b) of this section and late-payment
charges as provided for in part 1403 of this chapter.
(b) All persons with a financial interest in the operation or in an
application for payment shall be jointly and severally liable for any
refund, including related charges, that is determined to be due CCC for
any reason under this part.
(c) Interest shall be applicable to refunds required of the
livestock owner or other party receiving assistance or a payment if CCC
determines that payments or other assistance were provided to the owner
and the owner was not eligible for such assistance. Such interest shall
be charged at the rate of interest that the United States Treasury
charges CCC for funds, as of the date CCC made such benefits. Such
interest that is determined to be due CCC shall accrue from the date
such benefits were made available by CCC to the date of repayment or
the date interest increases in accordance with part 1403 of this
chapter. CCC may waive the accrual of interest if CCC determines that
the cause of the erroneous determination was not due to any action of
the livestock owner or other individual or entity receiving benefits.
(d) Interest otherwise determined due in accordance with paragraph
(c) of this section may be waived with respect to refunds required of
the owner or other program recipient because of unintentional misaction
on the part of the owner or other individual or entity, as determined
by CCC.
(e) Late payment interest shall be assessed on all refunds in
accordance with the provisions of, and subject to the rates prescribed
in part 1403 of this chapter.
(f) Individuals or entities who are a party to any program operated
under this part must refund to CCC any excess payments made by CCC with
respect to such program.
(g) In the event that any request for assistance or payment under
this part was established as a result of erroneous information or a
miscalculation, the assistance or payment shall be recomputed and any
excess refunded with applicable interest.
Sec. 1439.9 Cumulative liability.
The liability of any person for any penalty under this part or for
any refund to CCC or related charge arising in connection therewith
shall be in addition to any other liability of such person under any
civil or criminal fraud statute or any other provision of law
including, but not limited to, 18 U.S.C. 286, 287, 371, 641, 651, 1001
and 1014; 15 U.S.C. 714m; and 31 U.S.C. 3729.
Sec. 1439.10 Benefits limitation.
The total amount of benefits that a person, as determined in
accordance with part 1400 of this chapter, shall be entitled to receive
under any subpart may not exceed $40,000 for any one loss or year.
Also, the Deputy Administrator may take such action as needed, whether
or not specifically provided for, to avoid a duplication of benefits
under the several programs provided for in this part and may impose
such cross-program payment limitations as may be consistent with the
intent of this section and this part.
Sec. 1439.11 Gross revenue limitation.
A person, as defined in part 1400 of this chapter, who has annual
gross revenue in excess of $2.5 million shall not be eligible to
receive assistance under this part. For the purpose of this
determination, annual gross revenue means:
(a) With respect to a person who receives more than 50 percent of
such person's gross income from farming and ranching, the total gross
revenue received from such operations; and
(b) With respect to a person who receives 50 percent or less of
such person's gross income from farming and ranching, the total gross
revenue from all sources.
Sec. 1439.12 Maintenance of books and records.
Livestock producers or any other individual or entity seeking or
receiving assistance under this part shall maintain and retain
financial books and records that will permit verification of all
transactions with respect to the provisions of this part for at least 3
years following the end of the calendar year in which assistance was
provided, or for such additional period as CCC may request. Destruction
of records after that date shall be at the risk of the producer or
other person receiving assistance. An examination of such books and
records by a duly authorized representative of the United States
Government shall be permitted at any time during business hours.
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Subpart B--1998-99 Livestock Assistance Program
Sec. 1439.101 Applicability.
(a) This subpart sets forth the terms and conditions applicable to
the 1998 Livestock Assistance Program authorized by Public Law 105-277
and the 1999 Livestock Assistance Program authorized by the Public Law
106-78. Benefits will be provided to eligible livestock producers in
the United States but only in counties where a natural disaster
occurred, and that were subsequently approved for relief under this
part by the Deputy Administrator for Farm Programs. For purposes of
reference, the program authorized by Public Law 105-277 shall be
referred to in this subpart as the 1998 LAP program and that
administered under Public Law 106-78 shall be referred to in this
subpart as the 1999 LAP program.
(b) The two LAP programs provided for in this part will be treated
as separate programs for purposes of payment limitations and for other
purposes relating to eligibility.
(c) A county must have suffered a 40-percent or greater grazing
loss for 3 consecutive months during the 1998 calendar year for 1998
LAP or for 3 consecutive months during the 1999 calendar year for the
1999 LAP, as a result of damage due to a natural disaster as determined
by the Deputy Administrator for Farm Programs, or a designee. Grazing
losses must have occurred on native and improved pasture with permanent
vegetative cover and other crops planted specifically for the sole
purpose of providing grazing for livestock, but such losses do not
include losses on, or with respect to, seeded small grain forage crops.
(d) To be eligible for assistance under this subpart, a livestock
producer's pastures in an eligible county must have suffered at least a
40-percent loss of normal carrying capacity for a minimum of 3
consecutive months during the relevant calendar year. The percent of
loss eligible for compensation shall not exceed the maximum percentage
of grazing loss for the county as determined by the county committee.
In addition, the producer will not be compensated for that part of any
loss that would represent payment of a loss greater than 80 percent.
(e) Unless otherwise specified or determined by the Deputy
Administrator, a livestock producer is not eligible to receive payments
for the same loss under both this subpart and another Federal program.
Sec. 1439.102 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of administering this subpart. The definitions in
Sec. 1439.3 shall also be applicable, except where those definitions
conflict with the definitions set forth in this subpart.
Application means the Form CCC-740, Livestock Assistance Program
Application. The CCC-740 is available at county FSA offices.
LAP means, depending on the context, either the 1998 Livestock
Assistance Program provided for in this subpart, the 1999 Livestock
Assistance Program provided for in this subpart, or the overall 1998-99
Livestock Assistance Program provided for in this subpart.
Livestock means beef and dairy cattle, buffalo and beefalo (when
maintained on the same basis as beef cattle), sheep, goats, swine, and
equine animals where such equine animals are used commercially for
human food or kept for the production of food or fiber on the owner's
farm.
Sec. 1439.103 Application process.
(a) Livestock producers must submit a completed application prior
to the close of business on March 31, 1999, for the 1998 LAP or, for
the 1999 LAP, such other date as established by the Deputy
Administrator, or by prior rule. The application and any other
supporting documentation shall be submitted to the county FSA office
with administrative authority over a producer's eligible grazing land
or to the county FSA office that maintains the farm records for the
livestock producer.
(b) Livestock producers shall certify as to the accuracy of all the
information contained in the application, and provide any other
information to CCC that the county FSA office or committee deems
necessary to determine the livestock producer's eligibility.
Sec. 1439.104 County committee determinations of general
applicability.
(a) County committees shall determine whether due to natural
disasters their county has suffered a 40-percent loss affecting pasture
and normal grazing crops for at least 3 consecutive months during the
calendar year 1998 for the 1998 LAP or calendar year 1999 for the 1999
LAP. In making this determination, county committees, using the best
information available from sources including but not limited to: the
Extension Service, the Natural Resources Conservation Service; the
Palmer Drought Index; and general knowledge of local rainfall data,
pasture losses, grazing livestock movement out of county, abnormal
supplemental feeding practices for livestock on pasture and liquidation
of grazing livestock, shall determine the percentage of grazing losses
for pastures on a county wide basis. The county committee shall submit
rainfall data, percentage of grazing losses for each general type of
pasture, and the weighted average percentage of grazing loss for the
county, with State Committee concurrence, to the Deputy Administrator
on Form CCC-654. The maximum grazing losses the county committees shall
submit on Form CCC-654 is 80 percent. These determinations shall be
subject to review and approval of the Deputy Administrator. For
purposes of this subpart, such counties are called ``eligible
counties.''
(b) In each county, the county committee shall determine a LAP crop
year. The LAP crop year shall be that period of time in a calendar year
that begins with the date grazing of new growth pasture normally begins
and ends on the date grazing without supplemental feeding normally ends
in the county.
(c) In and for each eligible county, the county committee shall
determine normal carrying capacities for each type of grazing or
pasture during the LAP crop year. The normal carrying capacity for the
LAP crop year shall be the normal carrying capacity the county
committee determines could be expected from pasture and normal grazing
crops for livestock for the LAP crop year if a natural disaster had not
diminished the production of these grazing crops.
(d) In each eligible county, the county committee shall determine
the payment period for the county. The payment period for the county
shall be the period of time during the county's LAP crop year where for
3 consecutive months during 1998 for the 1998 LAP or during 1999 for
the 1999 LAP, the carrying capacity for grazing land or pasture was
reduced by 40 percent or more from the normal carrying capacity.
Sec. 1439.105 Loss criteria.
(a) The grazing land for which a livestock producer requests
benefits must be within the physical boundary of the eligible county.
Livestock producers in unapproved counties contiguous to an eligible
county will not receive benefits under this subpart.
(b) To be eligible for benefits under this subpart, a livestock
producer in an eligible county must have suffered a loss of grazing
production equivalent to at least a 40-percent loss of normal carrying
capacity for a minimum of 3 consecutive months.
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(c) A producer shall certify each type of pasture and percentage of
loss suffered by each type on the application. In establishing the
percentage of grazing loss, producers shall consider the amount of
available grazing production during the LAP crop year, whether more
than the normal acreage of grazing land was required to support
livestock during the LAP crop year, and whether supplemental feeding of
livestock began earlier or later than normal.
(d) The county committee shall determine the producer's grazing
loss and shall consider the amount of available grazing production
during the LAP crop year, whether more than the normal acreage of
grazing land was required to support livestock during the LAP crop
year, and whether supplemental feeding of livestock began earlier or
later than normal. The county committee shall request the producer to
provide proof of loss of grazing production if the county committee
determines the producer's certified loss exceeds other similarly
situated livestock producers.
(e) The percentage of loss claimed by a livestock producer shall
not exceed the maximum allowable percentage of grazing loss for the
county as determined by the county committee in accordance with
Sec. 1439.104(a). Livestock producers will not receive benefits under
this subpart for any portion of their loss that exceeds 80 percent of
normal carrying capacity.
(f) Conservation Reserve Program acres released for haying and/or
grazing and seeded small grain forage crops shall not be used to
calculate losses under this subpart.
Sec. 1439.106 Livestock producer eligibility.
(a) Only one livestock producer will be eligible for benefits under
this subpart with respect to an individual animal.
(b) Only owners of livestock who themselves provide the pasture or
grazing land, including cash leased pasture or grazing land, for the
livestock may be considered as livestock producers eligible to apply
for benefits under this subpart.
(c) An owner of livestock who uses another person to provide
pasture or grazing land on a rate-of-gain basis is not considered to be
the livestock producer eligible to apply for benefits under this
subpart.
(d) An owner who pledges livestock as security for a loan shall be
considered as the person eligible to apply for benefits under this
subpart if all other requirements of this part are met. Livestock
leased under a contractual agreement that has been in effect at least 3
months and establishes an interest for the lessee in such livestock
shall be considered as being owned by the lessee.
(e) Livestock must have been owned for at least 3 months before
becoming eligible for payment.
(f) The following entities are not eligible for benefits under this
subpart:
(1) State or local governments or subdivisions thereof; or
(2) Any individual or entity who is a foreign person as determined
in accordance with the provisions of Secs. 1400.501 and 1400.502 of
this chapter.
Sec. 1439.107 Calculation of assistance.
(a) The value of LAP assistance determined with respect to a
livestock producer for each type and weight class of livestock owned or
leased by such producer shall be the lesser of the amount calculated
under paragraph (b) of this section (the total value of lost feed needs
for eligible livestock) or calculated under paragraph (c) of this
section (the total value of lost eligible pasture).
(b) The total value of lost feed needs shall be the amount obtained
by multiplying:
(1) The number of days in the payment period the livestock are
owned or, in the case of purchased livestock, meet the 3-month
ownership requirement; by
(2) The daily feed grain equivalent per animal (15.7 pounds of corn
necessary for a beef cow, factored for the weight class and type of
livestock, as determined by CCC); by
(3) The 5-year national average market price for corn (1998 LAP:
$2.56 per bushel, or $.0457 per pound; 1999 LAP: $2.47 per bushel or
$.0441 per pound); by
(4) The number of eligible animals of each type and weight range of
livestock owned or leased by the person; by
(5) The percent of the producer's grazing loss during the relevant
period as certified by the producer and approved by the county
committee in accordance with Sec. 1439.105.
(c) The total value of lost eligible pasture shall be the amounts
for each type of pasture calculated by:
(1) Dividing the number of acres of each pasture type by the
carrying capacity established for the pasture; and multiplying:
(2) The result of paragraph (c)(1) of this section for each pasture
type; by
(3) The daily feed grain equivalent per animal (15.7 pounds of corn
necessary for a beef cow, factored for the weight class and type of
livestock, as determined by CCC); by
(4) The 5-year national average market price for corn (1998 LAP:
$2.56 per bushel, or $.0457 per pound; 1999 LAP: $2.47 per bushel or
$.0441071 per pound); by
(5) The applicable number of days in the LAP payment period; by
(6) The percent of the producer's grazing loss during the relevant
period as certified by the producer and approved by the county
committee in accordance with Sec. 1439.105.
(d) The final payment shall be the smaller of paragraph (b) of this
section or paragraph (c) of this section multiplied by the national
factor if required under Sec. 1439.108. The final payment shall not
exceed 50 percent of the smaller of paragraph (b) or (c) of this
section determined prior to applying the national factor provided for
in Sec. 1439.108.
(e) Seeded small grain forage crops shall not be counted as grazing
land under paragraph (c) of this section with respect to supporting
eligible livestock.
(f) The number of equine animals that are used to calculate
benefits under this subpart and in paragraph (a) of this section are
limited to the number actually needed to produce food and fiber on the
producer's farm or to breed horses and mules to be used to produce food
and fiber on the owner's farm, and shall not include animals that are
used for recreational purposes or are running wild or uncontrolled on
land owned or leased by the owner.
Sec. 1439.108 Availability of funds.
In the event that the total amount of claims submitted under this
subpart shall in the case of the 1998 LAP exceed $270 million or in the
case of the 1999 LAP exceed the amount determined appropriate by the
Deputy Administrator, then such payments under such program shall be
reduced by a uniform national percentage. Such payment reductions shall
be after the imposition of applicable payment limitation provisions.
Total 1999 LAP payments shall be prorated with payments for the
Livestock Indemnity Program, Phase II provided for in this part such
that total payments under the two programs shall not exceed $200
million minus, as deemed appropriate, other assistance provided to
livestock producers unless CCC makes additional funds available.
Subpart C--Livestock Indemnity Program
Sec. 1439.201 Applicability.
(a) This subpart sets forth the terms and conditions applicable to
the original 1999 Livestock Indemnity Program
[[Page 36572]]
(hereafter ``1999 Livestock Indemnity Program, Phase I'') and the 1999
Livestock Indemnity Program, Phase II. Benefits will be provided under
this subpart only for losses (deaths) of livestock occurring as a
result of a natural disasters in counties included in the geographic
area covered by a qualifying natural disaster declaration:
(1) With respect to the 1999 Livestock Indemnity Program (``LIP''),
Phase I, issued by the President of the United States or the Secretary
of Agriculture of the United States in the period from May 2, 1998,
through May 21, 1999, or
(2) With respect to the 1999 Livestock Indemnity Program (``LIP''),
Phase II, issued by the President of the United States or the Secretary
of Agriculture, which declaration was requested between May 22, 1999,
through December 31, 1999, inclusive, and subsequently approved.
(b) Losses in contiguous counties, or any other counties not the
subject of the declaration, will not be compensable. Producers will be
compensated by livestock category as established by CCC. The producer's
loss must be the result of the declared disaster and in excess of the
normal losses, established by CCC, for the producer's livestock
operation. Losses to livestock due to drought conditions are deemed to
have been avoidable and are not eligible for benefits under the 1999
LIP, Phase II.
Sec. 1439.202 Administration.
Where circumstances preclude compliance with Sec. 1439.204 due to
circumstances beyond the applicant's control, the county or State
committee may request that relief be granted by the Deputy
Administrator under this section. In such cases, except for statutory
deadlines and other statutory requirements, the Deputy Administrator
may, in order to more equitably accomplish the goals of this subpart,
waive or modify deadlines and other program requirements if the failure
to meet such deadlines or other requirements does not adversely affect
operation of the program and are not prohibited by statute.
Sec. 1439.203 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of administering this subpart. The terms defined in
Sec. 1439.3 shall also be applicable, except where those definitions
conflict with the definitions set forth in this subpart. The following
terms shall have the following meanings:
Application means the Form CCC-661, Livestock Indemnity Program
Application.
Livestock means beef and dairy cattle, sheep, goats, swine, poultry
(including egg-producing poultry), equine animals used for food or in
the production of food, and buffalo and beefalo when such buffalo and
beefalo are maintained on the same basis and in the same manner as beef
cattle maintained for commercial slaughter.
Livestock producer means one who possesses a beneficial interest in
eligible livestock as defined in this subpart, has a financial risk in
the eligible livestock, and is a citizen of, or legal resident alien
in, the United States. A farm cooperative, private domestic
corporation, partnership, or joint operation in which a majority
interest is held by members, stockholders, or partners who are citizens
of, or legal resident aliens in, the United States, if such
cooperative, corporation, partnership, or joint operation owns or
jointly owns eligible livestock or poultry, will be considered
livestock producers. Any Native American tribe (as defined in section
4(b) of the Indian Self-Determination and Education Assistance Act and
Education Assistance Act); any Native American organization or entity
chartered under the Indian Reorganization Act or chartered under the
Indian Reorganization Act; any tribal organization under the Indian
Self-Determination and Education Assistance Act; and any economic
enterprise under the Indian Financing Act of 1974 will be considered
livestock producers so long as they meet the terms of the definition.
Sec. 1439.204 Sign-up period.
A request for benefits under this subpart must be submitted to the
CCC at the Farm Service Agency county FSA office serving the county
where the livestock loss occurred. All applications and supporting
documentation must be filed in the county FSA office prior to the close
of business on:
(a) November 1, 1999, or such other date as established by CCC for
1999 LIP, Phase I, or
(b) February 18, 2000, or such other date as established by CCC for
1999 LIP, Phase II.
Sec. 1439.205 Proof of loss.
(a) Livestock producers must, in accordance with instructions
issued by the Deputy Administrator, provide adequate proof that the:
(1) Loss of eligible livestock occurred in an eligible county in
the area of Presidential designation or Secretarial declaration;
(2) That the death of the eligible livestock was reasonably related
to the recognized natural disaster; and
(3) The death of the livestock occurred:
(i) Between May 2, 1998, and May 21, 1999 inclusive for 1999 LIP,
or
(ii) For 1999 LIP, Phase II, due to a disaster that was the subject
of a Presidential or Secretarial disaster declaration, that was
requested between May 22, 1999, and December 31, 1999, inclusive, and
was subsequently approved.
(b) The livestock producer shall provide any available supporting
documents that will assist the county committee, or is requested by the
county committee, in verifying the loss and quantity of eligible
livestock that perished in the natural disaster. Examples of supporting
documentation include, but are not limited to: purchase records,
veterinarian receipts, bank loan papers, rendering truck certificates,
Federal Emergency Management Agency and National Guard records, auction
barn receipts, and any other documents available to confirm the
presence of the livestock and subsequent losses. Certifications by
third parties or the producer and other such documentation as the
county committee determines to be necessary in order to verify the
information provided by the producer must also be submitted. Third-
party verifications may be accepted only if the producer certifies in
writing that there is no other documentation available. Third-party
verification must be signed by the party that is verifying the
information. Failure to provide documentation that is satisfactory to
the county committee will result in the disapproval of the application
by the county committee.
(c) Livestock producers shall certify the accuracy of the
information provided. All information provided is subject to
verification and spot checks by the CCC. A failure to provide
information requested by the county committee or by agency officials is
cause for denial of any application filed under this part.
Sec. 1439.206 Indemnity benefits.
(a) Livestock indemnity payments for losses of eligible livestock
as determined by CCC are authorized to be made to livestock producers
who file an application for the specific livestock category in
accordance with instructions issued by the Deputy Administrator, if
the:
(1) Livestock producer submits an approved proof of loss in
accordance with Sec. 1439.205; and
[[Page 36573]]
(2) County or State committee determines that because of an
eligible disaster condition the livestock producer had a loss in the
specific livestock category in excess of the normal mortality rate
established by CCC, based on the number of animals in the livestock
category that were in the producer's inventory at the time of the
disaster.
(b) If the number of losses in the animal category exceeds the
normal mortality rate established by CCC for such category, the loss of
livestock that shall be used in making a payment shall be the number of
animal losses in the animal category that exceed the normal mortality
threshold established by CCC.
(c) Payments shall be calculated by multiplying the national
payment rate for the livestock category as determined by CCC, by the
number of qualifying animals determined under (b) of this section.
Adjustments, if necessary, shall apply in accordance with
Sec. 1439.207.
(d) Payments that are earned by a person under the livestock
indemnity program may be assigned in accordance with the provisions of
part 1404 of this chapter.
Sec. 1439.207 Availability of funds.
(a) In the event that the total amount of eligible claims submitted
under this subpart exceeds the amount available as specified in
paragraph (b) of this section, then each payment shall be reduced by a
uniform national percentage.
(b) Amounts available for payments under this subpart shall be:
(1) $3 million for 1999 LIP, Phase I or
(2) The amount determined to be appropriate such that payments for
LIP, Phase II and the 1999 Livestock Assistance Program provided for in
this part do not exceed $200 million as specified in Sec. 1439.108
minus other adjustments as may be appropriate.
(c) Such payment reductions shall be applied after the imposition
of applicable per-person payment limitation provisions. Notwithstanding
any other provision of law, the payment limits for Phase I and II shall
be considered separate limits except to the extent, if any, that a
producer's recovery under the 2 phases are for losses from the same
disaster.
Sec. 1439.208 Limitations on payments.
(a) No person, as determined in accordance with part 1400 of this
chapter, may receive benefits for livestock losses in excess of:
(1) $50,000 for 1999 LIP, or
(2) $40,000 for 1999 LIP, Phase II.
(b) No person may receive payments under this subpart for the same
losses that the producer has received or will receive compensation
under any other program provided for in this part. Payments under this
part for other losses shall not, however, reduce the amount payable
under this part. As provided for in Sec. 1439.11, no person shall be
eligible to receive any payment under this subpart if such person's
annual gross revenue exceeds $2.5 million.
(c) Disaster benefits under this part are not subject to
administrative offset under Sec. 1403.8 of this chapter except as
otherwise provided by the Deputy Administrator.
(d) No interest will be paid or accrue on disaster benefits under
this part that are delayed or are otherwise not timely issued unless
otherwise mandated by law.
Subpart D--Pasture Recovery Program
Sec. 1439.301 Administration.
(a) The regulations in this part will be administered under the
general supervision and direction of the Executive Vice President, CCC,
and the Administrator, Farm Service Agency (FSA), through the Deputy
Administrator. In the field, the regulations in this part will be
administered by the State and county FSA committees (``State
committees'' and ``county committees'', respectively).
(b) State executive directors, county executive directors, and
State and county committees do not have the authority to modify or
waive any of the provisions in this part unless specifically authorized
by the Deputy Administrator.
(c) The State committee may take any action authorized or required
by this part to be taken by the county committee that has not been
taken by such committee, such as:
(1) Correct or require a county committee to correct any action
taken by such county committee that is not in accordance with this
part; or
(2) Require a county committee to withhold taking any action that
is not in accordance with this part.
(d) No delegation herein to a State or county committee shall
preclude the Executive Vice President, CCC, and the Administrator, FSA,
or a designee, or the Deputy Administrator from determining any
question arising under this part or from reversing or modifying any
determination made by a State or county committee.
(e) Data furnished by the applicants will be used to determine
eligibility for program benefits. Although participation in the PRP is
voluntary, program benefits will not be provided unless the participant
furnishes the appropriate data.
(f) CCC may consult with other Federal agencies, State agencies, or
other non-USDA sources for such assistance as is determined by CCC to
be necessary to implement this part.
Sec. 1439.302 Definitions.
The following definitions shall be applicable to this subpart:
Applicant means, unless the context indicates otherwise, the owner
or operator.
Contract Period means the period of time the PRP contract is in
effect.
Federally-owned land means land owned by the Federal Government or
any department, bureau, or agency thereof, or any corporation whose
stock is wholly owned by the Federal Government.
Forage crop means a perennial stand of grasses or legumes that are
intended for use by livestock for grazing and are customarily used for
that purpose by local producers.
Hayland means land that was or has been routinely used to produce
hay.
Livestock means beef and dairy cattle, buffalo and beefalo (when
maintained on the same basis as beef cattle), sheep, goats, swine, and
equine animals used commercially for human food or kept for the
production of food or fiber.
Local FSA office means the FSA office in the local USDA service
center in which the FSA records are maintained for the farm or ranch
that includes the pasture land that the applicant is seeking to enroll
in the PRP.
Operator means a person who is in general control of the farming
operation on the farm, as determined by FSA for CCC.
Owner means a person or entity who is determined by FSA to have
sufficient legal ownership of the land, including a person who is
buying the acreage under a purchase agreement; each spouse in a
community property State; each spouse when spouses own property
jointly; and a person who has life-estate in the property.
Participant means an owner or operator or tenant who has entered
into a PRP contract.
Pasture land means generally enclosed land devoted to a perennial
forage crop used and suitable for grazing of livestock.
Payment means, unless the context indicates otherwise, the payment
specified in the PRP contract that, subject to the availability of
funds, is made to a participant to compensate such participant for
reestablishing an approved forage crop on eligible pasture land in the
PRP.
[[Page 36574]]
Practice means with respect to practices to be approved for relief
under this subpart, an approved measure to cost-effectively reseed
pasture, and, in conjunction with seeding, as necessary, fertilize to
reestablish a forage crop on eligible pasture land damaged or destroyed
by drought, as determined by CCC.
Rangeland means land having indigenous, unimproved vegetation that
may be used or suitable for open roaming and grazing of livestock.
State-owned land means land owned by a State Government or any
department, bureau, or agency thereof, including political subdivision
of a State, as determined by CCC.
State Technical Committee means that committee established pursuant
to 16 U.S.C. 3861 to provide information, analysis, and recommendations
to the Department of Agriculture.
Technical assistance means the assistance provided in connection
with the PRP to owners or operators by FSA or other authorized designee
of the Secretary in determining the eligibility of land and
implementing and certifying eligible practices.
Sec. 1439.303 General description.
Under the PRP, the CCC will enter into contracts with eligible
producers to provide payments to assist producers to reestablish the
damaged or destroyed pasture land to an approved forage crop. Contracts
will require the producer to maintain the new crop for three full years
after the calendar year of installation.
Sec. 1439.304 Eligible persons.
In order to be eligible to enter into a PRP contract in accordance
with this part, a person must be an owner or operator of eligible
pasture land that was damaged or destroyed by drought or related
conditions during calendar year 1999 and:
(a) Must normally graze livestock on such pasture land; and
(b) If an operator of eligible land that the operator does not own,
must provide satisfactory evidence that such operator will be in
control of such eligible pasture land for the full term of the PRP
contract period.
Sec. 1439.305 Eligible land.
(a) Except as otherwise provided in this section, as determined by
CCC or the Deputy Administrator, to be eligible for the PRP, land must
be pastureland that:
(1) As determined by CCC, is located within a county that was:
(i) Approved for participation in the 1999 Livestock Assistance
Program;
(ii) Had a 1999 LAP payment period of at least 120 days; and
(iii) As of March 1, 2000, was approved for assistance under the
Emergency Conservation Program provided for in 7 CFR part 701 because
of a 1999 drought designation, or was later approved for such
participation based upon an application filed by March 1, 2000, and
based upon drought damage suffered in 1999.
(2) Has been established pasture land on which livestock is
normally grazed or on which the forage crop was so damaged or destroyed
by drought or related conditions in calendar year 1999 that the forage
crop will not return in the 2000 grazing year, and seeding is required
to reestablish the forage crop, as determined by the Deputy
Administrator;
(b) Notwithstanding paragraph (a) of this section, land, as
determined by CCC or the Deputy Administrator, shall be ineligible for
enrollment if the pasture land is:
(1) Federal-operated land;
(2) State-operated land;
(3) Hayland; or
(4) Rangeland, as determined by the Deputy Administrator.
Sec. 1439.306 Duration of contracts.
Contracts under this subpart and their forage crop maintenance
requirements shall run through December 31, 2003; provided further that
the installation of the practice must be completed no later than
December 31, 2000.
Secs. 1439.307-1439.319 [Reserved]
Sec. 1439.320 Obligations of participant.
All participants subject to a PRP contract must agree to:
(a) Carry out the terms and conditions of the PRP contract
including carrying out all approved practices and meeting the schedule
of dates for seeding and for maintenance measures provided for in the
contract to establish and maintain the approved forage crop;
(b) Comply with all requirements of part 12 of this title;
(c) Do whatever else is necessary to establish and maintain the
required forage crop according to the required practice requirements on
the land subject to that contract and take such other actions that may
be required by CCC throughout the PRP contract period as needed to
insure that the purposes of the contract are met;
(d) Comply with noxious weed laws of the applicable State or local
jurisdiction on such land;
(e) Control, subject to the contract, all weeds, insects, pests and
other undesirable species to the extent necessary to ensure that the
establishment and maintenance of the approved forage crop is adequately
protected, as determined by CCC;
(f) Not harvest the re-seeded cover crop at any time during the
contract period; and,
(g) Be jointly and severally responsible with other persons
qualifying for payments under this program on the same land for
compliance with such contract and the provisions of this part and for
any refunds, payment adjustments, or liquidated damages that may be
required for violations of any of the terms and conditions of the PRP
contract.
Sec. 1439.321 Obligations of the Commodity Credit Corporation.
Subject to the availability of funds, CCC shall:
(a) Upon establishment of the required forage crop, and provided
all other eligibility criteria have been met, make PRP payments to
participants in accordance with the provisions of this part; and
(b) Provide such technical assistance as it determines necessary to
assist the participant in carrying out the PRP contract.
Sec. 1439.322 Eligible practices.
Eligible practices are those practices specified in the contract
that meet all quantity and quality standards needed to cost-
effectively:
(a) Reestablish the approved forage crop, as determined by the
Deputy Administrator, on acreage subject to the contract, including
reseeding;
(b) Meet environmental laws and regulations, as applicable, for the
contract period; and
(c) Accomplish other purposes of the program as determined by the
Deputy Administrator.
Secs. 1439.323-1439.329 [Reserved]
Sec. 1439.330 Signup.
Only applications for contracts submitted during designated signup
periods as announced by CCC will be approved.
Sec. 1439.331 Applications for PRP contracts.
Applicants may submit applications to participate in the PRP
subject to Sec. 1439.330 of this part. Applications may be
automatically accepted upon certification by the applicant that:
(a) The land meets the eligibility requirements of Sec. 1439.305;
and
(b) The applicant meets the eligibility requirements of
Sec. 1439.304; and
(c) The applicant certifies that the pasture land to be enrolled in
the PRP