[Federal Register: November 2, 2000 (Volume 65, Number 213)]
[Rules and Regulations]
[Page 65709-65718]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02no00-3]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 1411, 1421, 1427, 1434, 1439, and 1447
RIN 0560-AG18
2000 Crop Agricultural Disaster and Market Assistance
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This rule implements provisions of the Agricultural Risk
Protection Act of 2000 (ARPA) related to oilseeds payments, peanut
marketing assistance, honey recourse loans, crop and pasture flood
compensation, and the expansion of eligibility for loan deficiency
payments, for the 2000 crop year only, to include producers whose
cropland is not covered by a production flexibility contract. Other
provisions of the APRA will be implemented under separate rules.
EFFECTIVE DATE: October 27, 2000.
FOR FURTHER INFORMATION CONTACT: Tom Witzig, Chief, Regulatory Review
and Foreign Investment Disclosure Branch, USDA/FSA/ORAS/RRFIDB/STOP
0540, 1400 Independence Ave., SW, Washington, DC, 20250-0540, telephone
(202)205-5851, or by e-mail to: tom_witzig@wdc.fsa.usda.gov.
SUPPLEMENTARY INFORMATION:
Notice and Comment
Section 263 of the ARPA requires that these regulations are to be
promulgated without regard to the notice and comment provisions of 5
U.S.C. 553 or the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971, (36 FR 13804) relating to notices of proposed
rulemaking and public participation in rulemaking. These regulations
are thus issued as final.
Executive Order 12866
This final rule has been determined to be economically significant
under Executive Order 12866 and has been reviewed by the Office of
Management and Budget (OMB). A cost-benefit assessment was completed
and is summarized after the background section explaining the actions
this rule will take.
Federal Assistance Programs
The titles and numbers of the Federal assistance programs, as found
in the Catalog of Federal Domestic Assistance, to which this final rule
applies are: Commodity Loan and Loan Deficiency Payments--10.051;
Production Flexibility Payments for Contract Commodities--10.055;
Disaster Reserve Assistance--10.452.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this rule because USDA is not required by 5 U.S.C. 553 or
any other provision of law to publish a notice of proposed rulemaking
with respect to the subject matter of this rule.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will have no significant impact on the quality of the human
environment. Therefore, neither an environmental assessment nor an
Environmental Impact Statement is needed.
[[Page 65710]]
Executive Order 12372
The programs administered under the regulations contained in this
rule are not subject to the provisions of Executive Order 12372, which
require intergovernmental consultation with State and local officials.
See the notice related to 7 CFR part 3015, subpart V, published at 48
FR 29115 (June 24, 1983).
Unfunded Mandates
The provisions of Title II of the Unfunded Mandates Reform Act of
1995 are not applicable to this rule. There are no such mandates set
out in this rule and because the USDA is not required by 5 U.S.C. 553
or any other provision of law to publish a notice of proposed
rulemaking with respect to the subject matter of this rule.
Small Business Regulatory Enforcement Fairness Act of 1996
Section 263 of the ARPA requires that the regulations necessary to
implement title II of the ARPA be issued as soon as practicable after
the date of enactment and without regard to the notice and comment
provision of 5 U.S.C. 553 or the Statement of Policy of the Secretary
of Agriculture effective July 24, 1971, (36 FR 13804) relating to the
notice of proposed rulemaking and public participation in rulemaking.
It also requires the Secretary to use the provisions of 5 U.S.C. 808
(the Small Business Regulatory Enforcement Fairness Act (SBREFA)),
which provide that a rule may take effect at such time as the agency
may determine if the agency finds for good cause that public notice is
impracticable, unnecessary, or contrary to the public purpose, and thus
does not have to meet the requirements of Sec. 801 of SBREFA requiring
a 60-day delay for Congressional review of a major regulation before
the regulation can go into effect. This final rule is considered major
for the purposes of SBREFA. However, these regulations affect a large
number of agricultural producers who have been significantly impacted
by natural disasters and poor market conditions. Accordingly, it would
be contrary to the public interest to delay the provisions of this rule
because of the nature of the relief involved and such delay would be
contrary to the expressed terms of the legislation. This rule is issued
as a final rule and is effective immediately.
Executive Order 13132
It has been determined that this rule does not have sufficient
Federalism implications to warrant the preparation of a Federalism
Assessment. The provisions contained in this rule will not have a
substantial direct effect on States or their political subdivisions, or
on the distribution of power and responsibilities among the various
levels of Government.
Paperwork Reduction Act
Section 263 of the ARPA requires that these regulations be
promulgated and the programs administered without regard to the
Paperwork Reduction Act. This means that the information to be
collected from the public to implement these programs and the burden,
in time and money, the collection of the information would have on the
public does not have to be approved by the Office of Management and
Budget or be subject to the normal requirement for a 60-day public
comment period.
Background
This rule will implement the requirements of the Agricultural Risk
Protection Act of 2000 (Pub. L. 106-224) related to oilseeds payments,
peanut marketing assistance, honey recourse loans, crop and pasture
flood compensation, and for the 2000 crop year only, the expansion of
eligibility for loan deficiency payments to include producers whose
cropland is not covered by a production flexibility contract.
Generally, those rules follow, where applicable, existing rules as this
will allow for ease of administration and speed in making the payments,
consistent with the intent of the statute and with the lack of any
indication, except as may be noted, of Congressional dissatisfaction
with the existing programs. In making these corrections and changes
however to existing regulations the rules will, at least in some cases,
remove from the Code of Federal Regulations, the authority citation for
the previous programs. This housekeeping matter is not intended to, and
does not, change the operation of the previous programs to the extent
that there are any lingering issues or disputes with respect to such
programs.
1. 7 CFR 1411--Oilseeds Program
Section 202 of the ARPA provides that ``[t]he Secretary shall use
$500,000,000 of funds of the Commodity Credit Corporation to make
payments to producers of the 2000 crop of oilseeds that are eligible to
obtain a marketing assistance loan under section 131 of the
Agricultural Market Transition Act'' (AMTA) (7 U.S.C. 7231). A similar
program for the 1999 crop of oilseeds, established by section 804 of
the Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2000 (Pub. L. 106-78), was
codified in 7 CFR 1411 by publication of a final rule on June 8, 2000
(65 FR 36550). This rule provides for a 2000 Oilseeds Program similar
to the 1999 program. Specifically, this rule revises: (1) the
definition of ``Eligible oilseed'' to include sesame; (2) crop years
referenced in the part 1411 definitions of ``County average soybean
yield'', ``Established producer'', ``National average oilseed yield'',
and ``New producer'' in Sec. 1411.103; (3) crop years used in
determining ``eligible producers'' in Sec. 1411.201, ``payment
acreage'' in Sec. 1411.204, and ``payment yield'' in Sec. 1411.205; (4)
the program funding references in Sec. 1411.301 from $475 million to
$500 million; and (5) the provisions relating to the final date for
submission of late-file acreage reports as set out in Sec. 1411.303 to
set, in effect, a new deadline for the new program.
The regulations for this program follow the basic procedures and
rules of the preceding oilseed program as the authorizing statute for
the new program is the same in all material aspects, except for one
aspect, as the prior program. The one difference is that established
producer payments are based on the activities occurring in three prior
crop years (1997-99) rather than only two prior crop years as was the
case for the preceding program. The regulations incorporate that change
but also differ from those for the preceding program in that they add
sesame as one of the oilseeds for which payments can be made. Sesame
was excluded under the prior program because the relevant statutory
provisions for the new and old programs specified that the only
oilseeds which would be eligible for payments would be those which were
eligible to qualify a producer for a market assistance loan under
section 131 of the AMTA, 7 U.S.C. 7231. Under that part of AMTA, the
Secretary is allowed to make loans on ``loan commodities'' and ``loan
commodities'' are defined in section 102 of the AMTA, 7 U.S.C. 7202, to
include ``oilseed'' and the term ``oilseed'' is defined in section 102
to mean ``soybeans, sunflower seed, rapeseed, canola, safflower,
flaxseed, mustard seed, or if designated by the Secretary, other
oilseeds.'' Previously, the Secretary has designated crambe for
inclusion as one of the ``other'' oilseeds which can generate AMTA
loans and it has been determined, recently to so designate sesame as
well. Accordingly, the new oilseed program covers sesame whereas the
old program did not.
[[Page 65711]]
2. 7 CFR 1421 and 1427--2000 Crop Eligibility for Loan Deficiency
Payments
Rules governing loan deficiency payments (LDP's) are codified in 7
CFR part 1421 for commodities other than cotton and in subpart A of 7
CFR part 1427 for cotton. These regulations are modified in this rule
to implement section 206 of the ARPA, which amended provisions of the
AMTA related to LDP's under the marketing assistance loan program for
agricultural producers. Prior to the new law, under the provisions of
AMTA, except in the case of oilseeds, only producers growing contract
commodities on farms covered by a production flexibility contract (PFC)
were eligible to receive LDP's. Section 206(a) of the ARPA amends the
AMTA to allow producers of contract commodities not eligible for a
marketing assistance loan (that is contract commodities produced on
farms not covered by a PFC) to receive LDP's, but for the 2000 crop
year only. Further however, section 206 specifies, under the heading
``Transition'' that a payment to a producer newly-eligible for a
payment under the new provisions for non-PFC farms that harvested a
commodity on or before the date that is 30 days after the promulgation
of new rules implementing the new law shall be determined as of the
date the producer lost beneficial interest in the commodity, as
determined by the Secretary. Section 206 then specifies, however, that
otherwise, a producer shall be eligible for a payment only if the
producer has a ``beneficial interest'' in the commodity, as determined
by the Secretary. Normally, under existing rules, the farmer must have
control of the commodity at the time that the payment is requested but
that which appears to be addressed by the statute is that farmers on
non-PFC farms may have already marketed part of this year's crop at a
time at which they could not have made a request for a loan deficiency
payment since it was only the change of law provided for in section 206
that permitted such a payment. Accordingly, so that the rules will be
in accordance with the intent of the statute without going so far as to
provide what would appear to be, otherwise, unintended benefits not
possessed by other payees, this rule modifies parts 1421 and 1427 so as
to allow payments to be made for eligible commodities non-PFC farms
without having to meet the normal control requirements. However, this
is limited. It only applies so long as, in conformity with the statute,
the crops were harvested by that date which is 30 days after the
publication of this rule. For such commodities, the payment will be
made as of the date at which the farmer lost control or ``beneficial
interest'' of the commodity. For crops marketed after that date, the
farmer must, just like with producers on PFC farms, have control of the
crop at the time that the payment is requested. It should be noted,
however, that these amendments will still, in all cases, as does the
statute, limit payments to those persons who are considered to be the
``producers'' of the commodity. Thus, the status of contract growers is
not changed. Such growers continue to be ineligible for payments.
Instead, the amendments reflect a change with respect to the handling
of non-PFC farms only and allow for a transition for those farms to
accommodate the change circumstances for this crop year. These changes
are similar to changes that were implemented for the 1999 crop year
under separate legislative authority. Those 1999-crop rules were
published in a February 16, 2000, rule (65 FR 7942) as corrected on
March 15, 2000 (65 FR 13865).
3. 7 CFR 1434--Honey Recourse Loan Program
Section 204(c) of the ARPA provides that ``[t]he Secretary shall
use funds of the Commodity Credit Corporation to make available
recourse loans to producers of the 2000 crop of honey on fair and
reasonable terms and conditions, as determined by the Secretary.''
Section 1122 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriation Act of 1999
established a similar program for the 1998 crop of honey to assist
producers in marketing their honey during a period of low prices.
Regulations implementing the 1998 program were codified in 7 CFR 1434
by a final rule published on March 8, 1999 (64 FR 10293). Subsequently,
the program was made available for the 1999 crop of honey by section
801 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2000. The
final rule implementing the 1999 program by amending 7 CFR 1434 was
issued on February 16, 2000 (65 FR 7942). The 2000 program will be
operated in the same manner as the 1999 program and this rule amends 7
CFR 1434 by revising the dates referenced within the regulation.
4. 7 CFR 1439--2000 Flood Compensation Program
Section 257 of the ARPA authorizes the Secretary to use not more
than $24 million of funds of the Commodity Credit Corporation to
compensate producers for losses resulting from long-term flooding.
Areas impacted by generalized flooding since 1992 due to, for example,
the expansion of the boundaries of natural bodies of water such as
Devil's Lake in North Dakota and Day County and surrounding areas in
South Dakota, have been the subject of considerable attention and
concern. Such flooding can change the basic character of the land and
render it ineligible for other benefits or for enrollment in programs
like the Conservation Reserve Program.
The 1998 Flood Compensation Program (FCP), codified in 7 CFR 1439
by an interim rule published on August 31, 1999 (64 FR 47358), was
designed to provide assistance to producers who had incurred losses as
a result of such flooding. The program provided compensation to
eligible producers whose ``land was inaccessible or unfit for crop
production, grazing, or haying because of flooding or excess moisture
during all of the period beginning October 1, 1997, through August 1,
1999.'' Subsequently, a final rule published on June 8, 2000 (65 FR
36550) reorganized 7 CFR 1439 and removed the regulations related to
the 1998 FCP because they were considered to be obsolete because the
application deadline had passed.
This rule implements section 257 of the ARPA by implementing the
2000 FCP, which will be codified in subpart F of 7 CFR 1439. The new
program will be operated in the same manner as the 1998 FCP with the
exception (as required by ARPA) that the program will only be available
in counties approved under the 1998 FCP. The 2000 FCP provides
compensation to eligible producers whose land was not usable from
October 1, 1999, through September 30, 2000. Under the provisions of
the 2000 FCP, as required by the law no ``person'', as ``person'' is
defined in the applicable regulations, will be able to receive over
$40,000. Also, no person can receive any payment if that person's gross
revenue for 1999, as determined in conformity with the rules, was in
excess of $2.5 million. Consistent with the new law, the applicant must
be the owner or lessee under a binding lease, of cropland or
pastureland that was used for the production of at least one of the
production years 1992-99, but that has been engulfed in the period
after 1992, and such person must have owned or leased the land
continuously since October 1, 1999 and must still be the owner or
lessee of the land. Other restrictions apply as well. To avoid the
possibility of over-compensation for the
[[Page 65712]]
same losses, producers will not be eligible to receive payments under
this subpart and other programs for losses that occurred during FY
2000. As provided for in the new law, unadjusted payment rates will be
equal to the average county cash rental rate per acre established by
the National Agricultural Statistical Service for the 2000 crop year.
For cases where such rate is not available, the rule provides for an
alternative calculation method.
5. 7 CFR 1447--Peanut Marketing Assistance Program
Section 204(a) of the ARPA provides that ``[t]he Secretary shall
use funds of the Commodity Credit Corporation to provide payments to
producers of quota peanuts or additional peanuts to partially
compensate the producers for continuing low commodity prices, and
increasing costs of production for the 2000 crop year.'' The ARPA
specifies that the payment rate shall be equal to $30.50 per ton for
quota peanuts and $16.00 per ton for additional peanuts. In order to
implement this program, regulations codified at 7 CFR part 1447, which
implemented a similar program for the 1999 crop year, are amended by
revising the time-frame for filing an application, the payment rate for
quota and additional peanuts, and the years from which actual yields
may be used in establishing the yield used in the payment calculation.
The 1999 crop rules were set out in the February 16, 2000, rule (65 FR
7942).
Cost-Benefit Assessment
Summary
Outlays under the programs implemented by this rule will total
approximately $626 million. The table summarizes the outlays, while a
summary of the Cost/Benefit Assessment for each program follows.
Summary of Outlays
------------------------------------------------------------------------
Program Outlays
------------------------------------------------------------------------
Oilseeds Program............................................. 500.0
2000 Crop Eligibility for Loan Deficiency Payments........... 40.3
Honey Recourse Loan Program.................................. 0.0
2000 Flood Compensation Program.............................. 24.0
Peanut Marketing Assistance Program.......................... 61.6
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Total.................................................... 625.9
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2000 Oilseed Program
U.S. oilseed producers are experiencing serious financial hardships
as a result of low oilseed prices. The farm-level market value of
oilseed production has dropped substantially since the mid-1990's. The
farm value of the 1999 oilseed crop was down an estimated $5.3 billion,
or 29 percent, from the previous 5-year high set in 1996, despite a 12-
percent increase in production. Projections for the 2000 crop put farm
value up 6 percent from 1999, but this is with a projected 13-percent
increase in production from 1999. Farm value for the 2000 oilseed crop
is projected down more than $4.5 billion, or 25 percent, from 1996,
despite a 26 percent increase in production during the period.
In passing ARPA, Congress recognized the financial hardships being
faced by oilseed producers and the inability of the AMTA payment
mechanism to provide market loss payments to these producers. Section
202 of ARPA authorized the use of $500 million in CCC funds to assist
oilseed producers suffering from reduced farm incomes as a result of
large supplies and low prices. To be eligible for payments from these
funds, a producer must produce an oilseed in 2000 that is eligible for
marketing assistance loans under section 131 of AMTA (7 U.S.C. 7231).
Oilseeds specifically designated as eligible for marketing assistance
loans under section 102 of AMTA (7 U.S.C. 7202) are soybeans, safflower
seed, canola, rapeseed, mustard seed, sunflower seed, and flaxseed. For
the 2000 crop, the Secretary has also used his authority under section
102 to designate both crambe and sesame as an ``other'' oilseed, making
them eligible for marketing assistance loans and oilseed program
payments.
Oilseed program benefits for a producer are determined by
multiplying the payment acreage, times a payment yield, times a payment
rate determined by the Secretary. Payment acreage for an eligible
established producer--a producer who also produced oilseeds in 1997,
1998, and/or 1999--is based on the higher of that producers' 1997,
1998, or 1999 acreage. For an eligible producer who was a new producer
in 2000, payment acreage is based on that producer's 2000 acreage.
Payment yield for an established soybean producer is the higher of that
producer's actual yield in 1997, 1998, or 1999, or the Olympic average
yield for that producer's county for the years 1995 through 1999. (The
Olympic average is the average annual yield for the stated period after
excluding the highest and lowest years.) Payment yield for a new
soybean producer in 2000 is the higher of that producer's 2000 yield or
the producer's county 1995-99 Olympic average yield. For an established
producer of other eligible oilseeds, payment yield is the higher of
that producers' 1997, 1998, or 1999 yield, or the Olympic average of
the national yield for the years 1995 through 1999 for the crop for
which the payment is being made. Payment yield for a new producer of an
eligible oilseed other than soybeans in 2000 is the higher of that
producer's 2000 yield, or the 1995-99 Olympic average national yield
for the oilseed.
The payment rate determined by the Secretary must consider the
number of eligible payment acres and payment yields as well as the
fixed amount of CCC funds authorized by Congress for the Oilseed
Program.
The Oilseed Program as prescribed by Congress in ARPA clearly lays
out total available funding for direct producer payments and procedures
for determining payment acreage and yield as did the 2000
Appropriations Act. For this reason no options were considered
regarding these aspects of the program.
As was the case with the 2000 Appropriations Act, ARPA leaves to
the Secretary's discretion the method used to establish the payment
rates under the 2000 Oilseed Program. This latitude results in at least
two options or alternative methods for determining the payment rate by
crop for the various types of eligible oilseeds. Under the first
option, payment rates would be based on production volumes with the
same per unit payment rate offered for all types of oilseeds. The
second option would tie payment rates among the types of oilseeds to
each crop's relative market value using Olympic average farm prices for
the 1995 through 1999 marketing years. The second option was selected
because it incorporates into the payment rate calculation some measure
of relative market value for each type of oilseed. This method was also
used to determine the 1999 oilseed payment rate. Tying the payment rate
to market value was thought to be more equitable to producers of higher
value minor oilseeds because prices are much more volatile and quality
issues much more important in the markets for these crops.
The budgetary impact of the Oilseed Program will total $500
million. The largest share of total payments will go to soybean
producers who, based on pre-enrollment estimates, are expected to
receive $477,933,976 or 96 percent of the total payments (Table 3).
Pre-enrollment estimates for payments to minor oilseed producers are as
follows: $14,516,899 for sunflower seed producers, $4,266,230 for
canola producers, $1,749,382 for safflower producers, $1,136,675 for
flaxseed producers, $193,049 for mustard seed producers, $124,066 for
crambe
[[Page 65713]]
producers, $16,753 for rapeseed producers, and $62,969 for sesame
producers. Because this assistance will be in the form of direct
payments, the program is expected to result in a dollar-for-dollar
increase in farm income for oilseed producers.
Pre-enrollment estimates of per unit payment rates are expected to
be highest for safflower seed and mustard seed at 35 and 33 cents per
hundredweight (cwt), respectively. The lowest per unit rate is expected
to be for flaxseed at 22 cents per cwt (13 cents per bushel). The pre-
enrollment estimate for the soybean payment rate is 24 cents per cwt
(14 cents per bushel). On a per acre basis, the payments will be
highest for soybeans and safflower at $5.96 and $5.92 per acre,
respectively. For the remaining oilseeds, pre-enrollment estimates
indicate that per acre payments will range from a low of $2.70 for
mustard seed to a high of $3.65 for sunflower seed.
Final payment acreage and yield will depend upon enrollment. If
actual enrollment data indicate that claims are different than
$500,000,000, a national factor will be applied so outlays equal
$500,000,000. This factor could be greater than or less than 1.
2000 Crop Eligibility for Loan Deficiency Payments
The Federal Agriculture Improvement and Reform Act of 1996 (the
1996 Act) provided farms with base acreage for the 1996 crop the option
to sign production flexibility contracts (PFC) for the 1996-2002 crops
of wheat, corn, grain sorghum, barley, oats, upland cotton, and rice.
Producers on farms enrolled in a PFC receive PFC payments that are
based on the contract acres enrolled and the program yield for the
contract commodity on the farm. In addition, these producers are
eligible to receive commodity loan benefits for any contract commodity
produced on the farm.
Results from the one-time sign-up for production flexibility
payments, and thus, eligibility to receive loan benefits, suggest that
most eligible cropland was enrolled in the program. Of the eligible
1996 cropland base, 98.8 percent was enrolled.
Section 135 of the 1996 Act specifies that a producer may elect to
receive a loan deficiency payment (LDP) on a quantity of an eligible
commodity rather than placing the commodity under loan. Commodities
eligible for a nonrecourse marketing assistance loan include PFC
commodities (wheat, rice, upland cotton, corn, grain sorghum, barley,
and oats) and oilseeds, including soybeans, crambe, sesame, and minor
oilseeds (sunflower seed, canola, flaxseed, mustard seed, safflower,
and rapeseed). Under the terms of section 135, as enacted, to receive
an LDP on production of a PFC commodity, the farm on which the
commodity was produced must have eligible cropland covered by a PFC.
Section 206 of the ARPA, however, expands the eligibility of
producers of contract commodities to receive LDPs. Under the ARPA, any
producer of a contract commodity, whether or not the commodity was
produced on a farm with eligible cropland covered by a PFC, is eligible
to receive LDPs on all production of contract commodities on the farm
for the 2000 crop only.
It was assumed that all cropland suitable for production of
contract commodities was included in the total base acres eligible for
enrollment in a PFC. Thus, the potential cropland which could become
eligible for LDPs under the provisions of the 2000 Act is represented
by the crop base that was not enrolled in a PFC. Based on this
assumption, an additional 2,603,649 acres of contract commodities grown
during 2000/01 will be eligible for LDPs.
Because the 1996 Act provided nearly complete planting flexibility
to producers, the mix of crops grown on the additional LDP eligible
cropland is unlikely to match the base acreage in 1996. It is assumed
that the mix of crops on the additional eligible acres is similar to
the crop mix planted nationally. In addition, it is assumed that the
average yield of each contract commodity grown on these acres is equal
to the national average yield, and the LDP rate is equal to the
national average LDP rate. Producers on farms which do not have a PFC
are expected to request payments at about half the rate of producers on
farms with a PFC. The additional amount of LDPs which will likely be
paid under the extension of eligibility provided by the APRA is
estimated at $43 million and these benefits will be received by an
additional 100,000 producers.
Because the additional LDP eligibility was not extended until after
the 2000 crop had been planted, no change in supply, demand, or prices
are expected under this program. Thus, the only impact on crop
producers is the additional LDP payments which will increase farm
income by a corresponding amount. Food prices are expected to be
unaffected by the extension of eligibility of LDPs because supply,
demand, and crop prices are unaffected.
Honey Recourse Loan Program
The ARPA provides that recourse loans shall be provided for the
2000 crop of honey on fair and reasonable terms and conditions. It
further provides that the loan rate shall be 85 percent of the average
price of honey during the 5-crop year period preceding the 2000 crop
year, excluding the crop years in which the average price was the
highest and the lowest.
The 2000-Crop Honey Recourse Loan Program (2000 Honey Program) will
be administered in the same manner as the 1999-Honey Recourse Loan
Program (1999 Honey Program). The 1999 Honey Program requires that the
repayment of a loan shall include repayment of principal and interest.
The loans must be repaid and honey may not be delivered to the CCC in
satisfaction of the loan obligation. Loans will mature no later than 9
months following the month in which the loan is disbursed. Thus, loan
principal can be held for a maximum of 10 months. Uniform Storage
Agreements for honey warehouses will not apply. Interest will be
charged at the rate paid by CCC plus 1 percentage point. There will not
be loan premiums and discounts. If a loan is not repaid, CCC will
conduct a local sale of the honey used as loan collateral. If the sales
proceeds do not equal or exceed the amount owed by the producer, a
claim will be established.
Effective August 1995, China agreed to limit its exports to the
United States and to establish a price floor on such exports. That
agreement was credited by the domestic honey industry for resulting in
the price increases, from an annual average price of 52.8 cents for
1994, to 68.5 cents for 1995, and 88.8 cents for 1996. However, prices
then began falling, to 75.2 cents for 1997, 65.5 cents for 1998, and
59.9 cents for 1999. Honey prices reported in June 2000 by the National
Honey Market News (published by the Agricultural Marketing Service)
have been in the range of 40-60 cents per pound, down about 3 cents
from a year ago. Producers see these lower prices resulting from
abundant and cheap imports, now primarily from Argentina. Imports make
up about 40 percent of the honey consumed in the United States.
The 2000-crop loan rate will be unchanged from last year at 59.0
cents per pound based on the 1995 through 1999 prices and the statutory
formula. With the current relatively low price for honey, the 2000-crop
loan rate is expected to exceed most current market prices. This
exposes CCC to the possibility of losses if loans are defaulted on and
the proceeds from sale
[[Page 65714]]
of the honey are not large enough to cover the loan amount and interest
expense. Loan default expenses are budgeted for in the program, but
none has occurred in the past.
Producers who use the 2000-crop loan program will benefit from the
reduced borrowing costs compared with commercial loans. Estimates of
this interest savings are based on an assumed commercial rate of prime
plus 2 percentage points. Currently, a honey producer would be charged
7.25 percent by CCC compared to 11.24 percent by a commercial lender.
This 4-percentage point difference on program loan principal of $12
million (same as loaned in 1999) is equivalent to loan interest savings
to the sector of about $400,000, if all loans are held the full 10
months. Producers may also gain from circumstances where commercial
credit may not be available to them.
Program advocates assert that the primary benefit of the program is
to allow producers to delay marketings to take advantage of any
subsequent market price increases. A market-price increase of about 3.2
cents per pound would be needed to recover the loan interest if the
loan is held to maturity. Current market prices are relatively low due
to continued imports of cheap honey from China and Argentina.
Domestic honey prices are closely related to prices of imports
because of sizeable quantities imported. For the 1992-1995 period,
honey imports represented about 42 percent of total domestic honey
consumption. Without higher foreign honey prices, it would seem likely
that domestic honey prices will remain low in spite of the 2000 Honey
Loan Program. The amount of honey estimated to be put under loan is not
sufficient to create upward price pressure. With prices expected to be
unaffected by the loan program, domestic consumers will not be
impacted.
2000 Flood Compensation Program
Legislation creating the 1998 Flood Compensation Program (1998 FCP)
authorized the Secretary of Agriculture to provide financial assistance
to eligible producers in North and South Dakota that incurred multi-
year crop and grazing losses due to continuous flooding. Continuation
of such flooding in these States has resulted in the need for further
compensation to producers whose covered land has been unusable for
agricultural production during the 2000 crop year. Section 257 of the
Agricultural Risk Protection Act of 2000 (Pub. L. 106-224) authorizes
the Secretary to provide assistance to these producers under the 2000
Flood Compensation Program (2000 FCP).
Reports from State Farm Service Agency offices project that about
500,000 acres in North Dakota and 729,987 acres in South Dakota will be
flooded continuously during the 2000 crop year (i.e., flooding will
have occurred from October 1, 1999, through September 30, 2000). These
reports also suggest that about 12,000 producers are likely to be
eligible for assistance.
Under the 2000 FCP, payments will be provided to eligible producers
in the approved counties based on the quantity of cropland and pasture
that was incapable of agricultural production due to flooding during
the 2000 crop year. Per-acre payment rates will equal the average cash
rental rate established for the county by the National Agricultural
Statistics Service for the 2000 crop year. One rate per county will be
established for cropland and another rate for pasture. Any person with
gross receipts in excess of $2.5 million for calendar year 1999 will
not be eligible. The maximum payment amount for eligible persons is
$40,000, however, the sum of all payments cannot exceed $24 million.
Therefore, based on the projection of 12,000 eligible producers, the
average payment per producer will be $2,000.
Peanut Marketing Assistance Program
The 2000 Peanut marketing Assistance Program will provide $61.6
million in financial assistance to an estimated 40,000 producers who
have experienced increased costs of production and lower market prices
over the last five years. While peanut yields on average have increased
about 200 pounds per acre, this increase has not ameliorated the impact
of the quota price support freeze and increased cost of production.
Payments under the program will be based on produced and considered
produced peanuts at the rates of $30.50 per ton for quota peanuts and
$16.00 per ton for additional peanuts. Payments will assist peanut
producers in meeting their financial obligations and are not likely to
affect the market price for peanut products. No measurable impact is
likely for consumers.
List of Subjects
Part 1411
Loan programs--agriculture, Oilseeds, Price support programs,
Reporting and recordkeeping requirements.
Part 1421
Feed grains, Loan programs--agriculture, Oilseeds, Peanuts, Price
support programs, Reporting and recordkeeping requirements, Rice,
Wheat.
Part 1427
Cotton, Loan programs--agriculture, Price support programs,
Reporting and recordkeeping requirements.
Part 1434
Honey, Loan programs--agriculture, Price support programs,
Reporting and recordkeeping requirements.
Part 1439
Animal feeds, Disaster assistance, Grant programs--agriculture,
Livestock, Reporting and recordkeeping requirements.
Part 1447
Disaster assistance, Peanuts, Price support programs, Reporting and
recordkeeping requirements.
For the reasons set out in the preamble, Chapter XIV is amended as
set forth below.
PART 1411--OILSEEDS PROGRAM
1. The authority citation for 7 CFR part 1411 is revised to read as
follows:
Authority: Sec. 202, Pub. L. 106-224.
2. Revise Sec. 1411.101 to read as follows:
Sec. 1411.101 Applicability.
This part implements the oilseed provisions enacted in section 202
of the Agricultural Risk Protection Act of 2000 (Public Law 106-224),
which provides funds to allow for payments to producers who planted
eligible oilseeds in 2000 and who meet other conditions of eligibility.
3. Amend Sec. 1411.103 to revise the introductory paragraph and
definitions of ``County average soybean yield'', ``Eligible oilseed'',
``Established producer'', ``National average oilseed yield'', and ``New
producer'', to read as follows:
Sec. 1411.103 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of administering the 2000 Oilseeds Program, and shall be
used for Oilseeds Program purposes only. Although the definitions
contained in parts 718 and 1412 of this title also apply, to the extent
that the definitions in this section differ from the definitions in
parts 718 and 1412 of this title, the definitions in this section apply
rather than the definitions in parts 718 and 1412 of this title.
* * * * *
County average soybean yield means an average yield approved by
DAFP
[[Page 65715]]
using an Olympic average of the county's average soybean yield for each
of the crop years 1995 through 1999 as determined by the State
committee. To the extent such data is available, data from NASS shall
be used.
* * * * *
Eligible oilseed means one of the following kinds of oilseeds:
soybeans, safflower seed, canola, rapeseed, mustard seed, sunflower
seed (oil and confectionary), flaxseed, crambe, and sesame.
Established producer means a producer who planted an oilseed for
the 2000 crop year, and shared in the production of that specific
oilseed in 1997, 1998, or 1999.
National average oilseed yield means the Olympic average yield for
an eligible oilseed using the National average yields for the oilseed
for the years 1995 through 1999. Such yields shall be considered valid
only if approved by DAFP.
New producer means a producer who planted an eligible oilseed for
crop year 2000, but did not plant or share in the production of that
oilseed in 1997, 1998, or 1999. A producer may be a new producer of one
eligible oilseed, while being an established producer for another
oilseed.
* * * * *
4. Revise Sec. 1411.201 to read as follows:
Sec. 1411.201 Eligible producers.
(a) Section 202 of Public Law 106-224 authorizes the Secretary to
make payments to a producer who planted an eligible oilseed in 2000.
Accordingly, producers of the 2000 crop of oilseeds identified in
Sec. 1411.103 are eligible to receive 2000 Oilseeds Program benefits,
providing the producer meets the requirements of this part, and is in
compliance with part 12 of this title regarding the conservation and
protection of highly erodible lands and wetlands, and Sec. 718.11 of
this title regarding denials of program benefits for activities
relating to the use of controlled substances.
(b) Eligibility determinations made under this part will be made
for each producer separately for each specific eligible oilseed planted
by that producer in 2000. A producer is not eligible for payment with
respect to an oilseed that the producer did not plant in 2000
regardless of whether the producer did or did not plant that oilseed in
1997, 1998, or 1999.
5. Amend Sec. 1411.204 by revising paragraphs (a) and (b) to read
as follows:
Sec. 1411.204 Payment acreage.
(a) The oilseed payment acreage for an established producer shall,
for a particular oilseed, be the higher of the three acreage amounts
determined by calculating, for the 1997, 1998, and 1999 crops
separately, the acreage determined to be equal to the producer's
acreage for that oilseed at all locations for that crop year, adjusted
to reflect interests that are only partial interests in such acreage.
(b) The payment acreage for a new producer of an eligible oilseed
will be the producer's acreage for that oilseed for the 2000 crop at
all locations, adjusted to reflect interests that are only partial
interests in such acreage.
* * * * *
6. Amend Sec. 1411.205 by revising paragraphs (b) and (c) to read
as follows:
Sec. 1411.205 Payment yield.
(a) * * *
(b) A new producer's payment yield with respect to a particular
eligible oilseed shall be the higher of the:
(1) Applicable average yield for that oilseed or
(2) Producer's actual yield for the 2000 crop year.
(c) For established producers, the producer's payment yield for a
particular oilseed shall be the higher of:
(1) Applicable average yield; or
(2) The highest for the 1997, 1998, and 1999 crops of the
producer's actual yield respectively for those crop years for all acres
of the oilseed planted by the producer.
* * * * *
Sec. 1411.301 [Amended]
7. In Sec. 1411.301, remove the dollar amount ``$475 million'' and
add in its place the amount ``$500 million.''
Sec. 1411.303 [Amended]
8. Amend Sec. 1411.303 as follows:
a. Remove the words ``Oilseed Program purposes'' and add in their
place the words ``purposes of the Oilseed Program operated under this
part pursuant to Public Law 106-224''; and
b. Remove the date ``February 18, 2000'' and add in its place the
words ``the last day of the signup period announced in accordance with
Sec. 1411.301''.
Sec. 1411.402 [Amended]
9. Amend Sec. 1411.402(c) as follows:
a. Add the word ``form'' preceding the term ``FSA-211'; and
b. Remove the date ``June 22, 2000'' and add in its place, the date
November 16, 2000.
PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES
10. The authority citation for part 1421 is revised to read as
follows:
Authority: 7 U.S.C. 7213-7235, 7237; 15 U.S.C. 714b, 714c; Sec.
813, Pub. L. 106-78, 113 Stat. 1182; Sec. 206, Pub. L. 106-224.
11. Amend Sec. 1421.1 by adding paragraph (f) to read as follows:
Sec. 1421.1 Applicability.
* * * * *
(f) Not withstanding provisions of this subpart and subchapter:
(1) Eligible contract commodities produced during the 2000 crop
year on a farm that is not covered under a production flexibility
contract, as defined in part 1412 of this chapter, are eligible for a
loan deficiency payment to eligible producers in accordance with
Sec. 1421.4.
(2) With respect only to contract commodities produced in the 2000
crop year on a farm not covered under a production flexibility
contract, a producer may receive with respect to such commodities, a
loan deficiency payment in connection with the administration of loans
under this part even though the crop has already been marketed, so long
as:
(i) Neither the producer nor anyone else has received a marketing
loan gain or loan deficiency payment on the commodity;
(ii) The person seeking the payment is the actual producer of the
commodity and had beneficial interest in the commodity at the time of
the operative marketing;
(iii) The producer will receive the payment as a loan deficiency
payment in which case the amount to be paid will be determined as of
the date the producer marketed or lost beneficial interest in the
commodity;
(iv) Unless otherwise allowed by the Deputy Administrator for Farm
Programs, FSA, the commodities were harvested and marketed on or before
December 4, 2000.
PART 1427--COTTON
12. The authority citation for 7 CFR part 1427 is revised to read
as follows:
Authority: 7 U.S.C. 7231, 7235, 7237; 15 U.S.C. 714b, 714c; Pub.
L. 106-78, 113 Stat. 1182; Sec. 206, Pub. L. 106-224.
13. Amend Sec. 1427.1 by adding paragraph (e) to read as follows:
Sec. 1427.1 Applicability.
* * * * *
(e) Not withstanding provisions of this subpart and subchapter:
[[Page 65716]]
(1) Eligible cotton produced during the 2000 crop year on a farm
that is not covered under a production flexibility contract, as defined
in part 1412 of this chapter, are eligible for a loan deficiency
payment to eligible producers in accordance with Sec. 1427.4.
(2) With respect only to loan deficiency payments for eligible
cotton produced in the 2000 crop year on a farm not covered by a
production flexibility contract, a producer may receive with respect to
such cotton, a loan deficiency payment in connection with the
administration of loans under this part even though the cotton has
already been marketed, so long as:
(i) Neither the producer nor anyone else has received a marketing
loan gain or loan deficiency payment on the cotton;
(ii) The person seeking the payment is the actual producer of the
cotton and had beneficial interest in the cotton at the time of the
operative marketing;
(iii) The producer will receive the payment as a loan deficiency
payment in which case the amount to be paid will be determined as of
the date the producer marketed or lost beneficial interest in the
cotton;
(iv) Unless otherwise allowed by the Deputy Administrator for Farm
Programs, FSA, the cotton was harvested and marketed on or before
December 4, 2000.
* * * * *
PART 1434--RECOURSE LOAN REGULATIONS FOR HONEY
14. The authority citation for 7 CFR part 1434 is revised to read
as follows:
Authority: Sec. 1122, Pub. L. 105-277, 112 Stat. 2681; Sec.
3018, Pub. L. 106-31, 113 Stat. 57; Sec 801(f), Pub. L. 106-78, 113
Stat. 1175; Sec. 204(c), Pub. L. 106-224.
Sec. 1434.1 [Amended]
15. Amend the first sentence of Sec. 1434.1 by removing the words
``1998-crop and 1999-crop'' and adding in their place the words ``2000-
crop year''.
16. Amend Sec. 1434.6 by revising paragraphs (a) and (d) to read as
follows:
Sec. 1434.6 Application, availability, disbursement, and maturity.
(a) The deadline for requesting a loan offered under this part is
March 31, 2001.
(b) * * *
(c) * * *
(d) Subject to paragraph (a) of this section, loans for the 2000-
crop of honey will be available to producers on such date as may be
announced by the Secretary.
PART 1439--EMERGENCY LIVESTOCK ASSISTANCE
17. The authority citation for 7 CFR part 1439 is revised to read
as follows:
Authority: 15 U.S.C. 714b, 714c; Sec. 805, 825, Pub. L. 106-78,
113 Stat. 1135; Pub. L. 106-113; Sec. 257, Pub. L. 106-224.
18. Amend part 1439 by adding subpart F to read as follows:
Subpart F--2000 Flood Compensation Program
Sec.
1439.501 Applicability.
1439.502 Administration.
1439.503 Definitions.
1439.504 Application process.
1439.505 County committee determinations of general applicability.
1439.506 Eligible land and loss criteria.
1439.507 Producer eligibility.
1439.508 Calculation of assistance.
1439.509 Availability of funds.
Subpart F--2000 Flood Compensation Act
Sec. 1439.501 Applicability.
This subpart sets forth the terms and conditions applicable to the
2000 Flood Compensation Program (FCP). Benefits will be provided to
eligible producers in the United States but only in counties approved
under the 1998 FCP (provided for in regulations of this part contained
in the 7 CFR, parts 1200 to 1599, edition revised as of January 1,
2000), where long-term flooding occurred, and that were subsequently
approved by the Deputy Administrator for Farm Programs as eligible
counties.
Sec. 1439.502 Administration.
This subpart shall be administered as set forth in Sec. 1439.2,
except as provided for in this subpart.
Sec. 1439.503 Definitions.
Except as otherwise indicated, terms in this part shall have the
same meanings as those defined in 7 CFR 1439.3 and 718.2. To the extent
that the definitions in this section differ from the definitions in 7
CFR 1439.3 and 718.2, the definitions in this section apply rather than
the definitions in 7 CFR 1439.3 and 718.2
Application means the Form CCC-454, Flood Compensation Program
Application. The CCC-454 is available at county FSA offices.
Covered land means:
(1) Land that:
(i) Was unusable for agricultural production during 2000 crop year
as the result of flooding;
(ii) Was used for agricultural production during at least 1 of the
1992 through 1999 crop years;
(iii) Is a contiguous parcel of land of at least 1 acre;
(iv) Is located in a county in which producers were eligible for
assistance under the 1998 Flood Compensation Program;
(v) Was not planted during FY 2000; and
(vi) Meets all other conditions of eligibility.
(2) The term ``covered land'' excludes any land with respect to
which a producer is insured, enrolled, or assisted during the 2000 crop
year under:
(i) A policy or plan of insurance authorized under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.);
(ii) The noninsured crop assistance program operated under section
196 of the Agricultural Market Transition Act (7 U.S.C. 7333);
(iii) Any crop disaster program established for the 2000 crop year;
(iv) The conservation reserve program established under subchapter
B of chapter 1 of subtitle D of the Food Security Act of 1985 (16
U.S.C. 3831 et seq.);
(v) The wetlands reserve program established under subchapter C of
chapter 1 of subtitle D of the Food Security Act of 1985 (16 U.S.C.
3837 et seq.);
(vi) Any emergency watershed protection program or Federal easement
program that prohibits crop production or grazing; or
(vii) Any other Federal or State water storage program, as
determined by the Secretary.
FCP means the Flood Compensation Program provided for in this part.
FY 2000 means the period from October 1, 1999 through September 30,
2000.
NASS means The National Agricultural Statistics Service.
Sec. 1439.504 Application process.
(a) Producers must submit a completed application prior to the
close of business on December 15, 2000, or other such later date as
established and announced by the Deputy Administrator. The application
and any supporting documentation shall be submitted to the FSA county
office with administrative authority over a producer's eligible flooded
land or to the FSA county office that maintains the farm records for
the producer.
(b) Producers shall certify as to the accuracy of all the
information contained in the application, and provide any other
information to CCC that the FSA county office or FSA Committee deems
necessary to determine the producer's eligibility.
[[Page 65717]]
Sec. 1439.505 County committee determinations of general
applicability.
(a) FSA county committees shall determine whether that county was
determined eligible under the 1998 FCP, and whether the land has been
unusable from October 1, 1999 through September 30, 2000 due to
continuing flooding. In making this determination, the FSA county
committee shall use what it considers to be the best information
available including but not limited to: Cooperative State Research,
Education, and Extension Service; Natural Resources Conservation
Service; aerial photography; rainfall data; and general knowledge of
losses due to flooding.
(b) With respect to each eligible county, the FSA county committee
for that county shall establish a separate payment rate for crop-land
and pasture-land. These rates shall be reviewed by the FSA state
committee and shall be equal to the average rental rate for the years
1996 through 2000 for all such land of each type in the county. Where
these rates cannot be set in the manner provided for in paragraph (c)
of this section, the FSA state committee may take into account rates
established for the Conservation Reserve Program operated under 7 CFR
part 1410 and ensure, subject to paragraph (c) of this section, that
the rates are comparable. The Deputy Administrator shall review and may
adjust the rates for reasonableness and consistency.
(c) Except as provided by the Deputy Administrator, rental rates
shall be equal to the applicable county average for the kind of land
involved using established NASS data in all locations where NASS has
established rental rates on a county-by-county basis for 2000.
Sec. 1439.506 Eligible land and loss criteria.
(a) The flooded land for which a producer requests benefits must be
within the physical boundary of an eligible county. 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 producer in
an eligible county must have land in a county which is eligible for
payment. Such land, to be eligible for payment must meet all of the
following criteria:
(1) The land is cropland or pasture land used for the production of
feed for livestock (haying, grazing, or feed grain production) or other
agricultural use in one or more years during the period beginning
October 1, 1991, through September 30, 1999;
(2) The land is inaccessible or unable to be used for crop
production, grazing, or haying because of flooding or excess moisture
during all of the period beginning October 1, 1999, through September
30, 2000 unless some other period is established as the 2000-crop year
for the commodity by the Deputy Administrator;
(3) The land was not used for planting during October 1, 1999,
through September 30, 2000;
(4) The land has been owned, leased or under a binding cash lease
by the producer continuously since October 1, 1999;
(5) The land is a contiguous parcel of land with an area equal to
one acre or more;
(6) The land was not, except as determined by the Deputy
Administrator, the subject of, nor will be the subject of, any other
federal payment for activities or lack of activity during the period
October 1, 1999, through September 30, 2000, whether or not disaster-
related, with the exception of the production flexibility contract
(PFC) program payments received under 7 CFR part 1412. This prohibition
includes but is not limited to other payments under this part, or
payments under the Conservation Reserve Program (7 CFR part 1410), the
Wetlands Reserve Program (7 CFR part 1467), any Emergency Watershed
Protection Program, or Federal Easement Program.
(c) On Form CCC-454 producers shall be required to certify by tract
on each farm the number of flooded cropland and non-cropland acres for
the farm in 2000 and the number of flooded cropland and non-cropland
acres in 1992. To establish the acreage eligible for payment, flooded
land certified for 1992 for each type shall be subtracted from the
flooded land certified for 2000 for the applicable type. The difference
will be the acreages of cropland and non-cropland subject to flooding
and eligible for FCP payment, except that the difference may be
adjusted as needed to ensure, to the extent practicable, an accurate
estimate of the net increased flooding on the farm after October 1,
1993.
(d) All determinations as to the amount of land eligible for
enrollment and compensation under this subpart are subject to approval
by the county committee.
(e) The FSA county committee may use any available documentation to
make the determinations under paragraphs (b) and (c) of this section,
including but not limited to: maps, acreage reports, slides,
precipitation data, water table levels and disaster reports.
Sec. 1439.507 Producer eligibility.
(a) Payments under this subpart shall be subject to the provisions
of Sec. 1439.1 through Sec. 1439.12, except as otherwise provided in
this subpart.
(b) No person (as defined and determined under 7 CFR part 1400) may
receive more than $40,000 under this subpart.
(c) No person (as defined and determined under 7 CFR part 1400)
will be eligible for payment under this subpart if that person's annual
gross receipts for calendar year 1999 were in excess of $2.5 million.
That determination shall be made in the manner provided for in
Sec. 1439.11.
(d) 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 7 CFR 1400.501 and 1400.502.
Sec. 1439.508 Calculation of assistance.
(a) The unadjusted value of FCP assistance determined with respect
to the flooded land in an eligible county for each producer shall not
exceed the amount obtained by adding the amounts in paragraphs (b) and
(c) of this section.
(b) For each eligible producer with respect to the applicable
qualifying cropland which is determined, consistent with this subpart,
to be eligible land for the payment purposes, the established local
payment rate for cropland will be multiplied by the number of acres
determined to be qualifying acres, as determined by the County
Committee in accordance with instructions of the Deputy Administrator.
(c) For each eligible producer with respect to the applicable
qualifying non-cropland acres consistent with this subpart, as
determined by the county committee in accordance with instructions of
the Deputy Administrator, the acres will be multiplied by the
established payment rate for non-cropland acres.
(d) Payments will be adjusted as determined necessary to comply
with other provisions of this subpart such as those set in
Sec. 1439.509.
Sec. 1439.509 Availability of funds.
In the event that the total amount of claims submitted under this
subpart exceeds the $24 million authorized for FCP by Public Law 106-
224, each payment to a producer shall be reduced by a uniform national
percentage. Such payment reductions shall be after the imposition of
applicable payment limitation provisions.
[[Page 65718]]
PART 1447--1999 PEANUT MARKETING ASSISTANCE PROGRAM
19. Revise the heading for part 1447 to read as follows:
PART 1447--2000 PEANUT MARKETING ASSISTANCE PROGRAM
20. The authority citation for 7 CFR part 1447 is revised to read
as follows:
Authority: Pub. L. 106-78, 113 Stat 1135; Sec. 204(a), Pub. L.
106-224; 15 U.S.C. 714b, 714c.
21. Revise Sec. 1447.101 to read as follows:
Sec. 1447.101 Applicability.
This part sets out provisions related to the 2000 crop of peanuts
as authorized and in accordance with the applicable provisions of
Public Law 106-224, the Agricultural Risk Protection Act of 2000 (the
2000 Act). Under section 204(a) of the 2000 Act, the Secretary of
Agriculture is required to make certain payments available to eligible
producers of 2000-crop quota and additional peanuts.
22. Amend Sec. 1447.105 by revising paragraph (a) to read as
follows:
Sec. 1447.105 Time for filing application.
(a) Applications for benefits under this part must be filed on or
after October 2, 2000, but not later than the close of business on
February 1, 2001, in the county FSA office serving the county where the
producer's farm is located for administrative purposes.
* * * * *
23. Revise Sec. 1447.106 to read as follows:
Sec. 1447.106 Payment rate.
(a) Payment rate for quota peanut production. The payment rate for
quota peanuts under this part is $30.50 per ton.
(b) Payment rate for additional peanut production. The payment rate
for additional peanuts under this part is $16.00 per ton.
24. Amend Sec. 1447.107 by revising paragraphs (a)(3)(ii) and
(a)(3)(iii) to read as follows:
Sec. 1447.107 Calculation of Payment.
(a) * * *
(3) * * *
(ii) The actual yield for any of the 1997, 1998 or 1999 crop years,
(iii) The actual yield for the 2000 crop year.
* * * * *
Signed in Washington, DC, on October 25, 2000.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 00-27793 Filed 10-27-00; 10:26 am]
BILLING CODE 3410-05-P
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