[Federal Register Volume 62, Number 205 (Thursday, October 23, 1997)]
[Rules and Regulations]
[Pages 55150-55152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28009]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1412
RIN 0560-AF25
Amendment to the Production Flexibility Contract Regulations
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule amends the production flexibility contract
regulations found at 7 CFR part 1412.
[[Page 55151]]
The amendments add a final date for producers to designate payment
shares and provide supporting documentation to be eligible to earn
contract payments in a fiscal year when payment shares have not been
designated in such fiscal year; change the dates by which a producer or
owner must inform county committee of changes in interest; add a final
date for producers to request advance payments; clarify cash lease
provisions; change the provisions for determining whether a lease is a
cash lease or a share lease with respect to combination leases; and
change the date by which all landowners, tenants, and sharecroppers
failing to reach an agreement regarding the division of contract
payments for a fiscal year must execute a contract to be eligible to
receive the contract payment for that fiscal year.
DATES: Effective Date: October 23, 1997. Comments on this rule must be
received on or before November 24, 1997 to be assured of consideration.
FOR FURTHER INFORMATION CONTACT: Scotty M. Abbott, Farm Service Agency,
United States Department of Agriculture, STOP 0517, 1400 Independence
Avenue, SW, Washington, DC 20250-0517, telephone 202-720-5422, Internet
address: Sabbott@wdc.fsa.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant and therefore
was not reviewed by the Office of Management and Budget (OMB).
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable because CCC 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. Section 161(d) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7281)
indicates that the Secretary is to issue regulations without respect to
the notice and comment provisions of 5 U.S.C. 553 and other statutory
and regulatory requirements. However, the Commodity Credit Corporation
is requesting comments on the amendments to the regulations.
Accordingly, this interim final rule is effective upon publication in
the Federal Register, with 30 days for the submission of comments.
Environmental Evaluation
An Environmental Evaluation with respect to the proposed rule has
been completed. It has been determined that this action will not have
significant adverse effects on environmental factors such as wildlife
habitat, water quality, air quality, land use, or appearance.
Therefore, neither an Environmental Assessment nor an Environmental
Impact Statement is needed.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988. The provisions of this proposed rule preempt State laws to the
extent such laws are inconsistent with the provisions of this rule. The
provisions of this rule are not retroactive. Before any judicial action
may be brought concerning the provisions of this rule, the
administrative remedies must be exhausted.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372, which requires 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).
Paperwork Reduction Act
The amendments to 7 CFR part 1412 set forth in this rule were
previously approved under OMB Control Number 0560-0025. An information
collection notice was published in the Federal Register (62 FR 27216)
on May 19, 1997. No comments were received regarding this notice. A
revised information collection package has been submitted to OMB.
Executive Order 12612
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.
Unfunded Mandates Reform Act of 1995
This rule contains no Federal mandates under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995
(UMRA) for State, local, and tribal governments or the private sector.
Therefore, this rule is not subject to the requirements of sections 202
and 205 of the UMRA.
Discussion of Changes
This rule amends the production flexibility contract regulations as
follows:
Section 1412.201 Production flexibility contract.
This rule adds a final date for producers to designate payment
shares and provide supporting documentation to be eligible to earn
contract payments in a given fiscal year when payment shares have not
been designated in such fiscal year. All producers sharing in the
contract payment on a farm, whose payment shares have not been
designated for such fiscal year must sign a new contract designating
payment shares, and provide supporting documentation no later than
August 1 of such fiscal year to be eligible to earn a contract payment
in such fiscal year.
Section 1412.207 Succession-in-interest to a production flexibility
contract.
This rule changes the dates a producer or owner must inform the
county committee of changes in interest. A producer or owner must
inform the county committee of changes in interest by August 1 of the
fiscal year in which the change is made if producers on the contract
remain the same but payment shares change; or no later than August 1 of
such fiscal year, if a new producer is being added to the contract.
Section 1412.302 Contract payment provisions.
This rule adds a final date to request advance payments for fiscal
year 1998, and each subsequent fiscal year. To receive the advance
payment for fiscal year 1998, and each subsequent fiscal year, all
producers sharing in the contract payment on the farm must, no later
than 15 days prior to the final date to issue the advance payment:
(1) Sign the contract designating payment shares and provide
supporting documentation, if applicable; and
(2) Request the advance payment.
Section 1412.303 Sharing of contract payments.
This rule clarifies that a lease is a cash lease, if the lessor
receives only a guaranteed sum certain cash payment, or fixed quantity
of the crop. This rule also changes provisions with respect to
combination leases. Combination leases are leases that contain
provisions for both a guaranteed amount such as a fixed dollar amount,
or quantity and a share of a crop or crop proceeds. Combination leases
include those leases that provide for the greater of a guaranteed
amount, or share of the crop or crop proceeds. The amendment provides
that all combination leases shall be considered share leases for fiscal
year 1998, and later fiscal years.
[[Page 55152]]
Section 1412.304 Provisions relating to tenants and sharecroppers.
This rule changes the date by which all landowners, tenants and
sharecroppers failing to reach an agreement regarding the division of
contract payments for a fiscal year, must execute a contract to be
eligible to receive the contract payment for such fiscal year. If the
landowners, tenants and sharecroppers on a farm fail to reach an
agreement regarding the division of contract payments for a fiscal
year, the county committee shall make the payment at a later date if
all persons eligible to receive a share of the contract payment, have
executed a contract no later than August 1 of that fiscal year, and
subsequently agree to the division of contract payment.
List of Subjects in 7 CFR Part 1412
Contract acreage, Contract payments, Production flexibility
contract, Succession-in-interest.
Accordingly, 7 CFR part 1412 is amended as follows:
PART 1412--PRODUCTION FLEXIBILITY CONTRACTS FOR WHEAT, FEED GRAINS,
RICE, AND UPLAND COTTON
1. The authority citation for part 1412 continues to read as
follows:
Authority: 7 U.S.C. 7201 et seq.; and 15 U.S.C. 714b and 714c.
2. Section 1412.201 is amended by adding paragraph (c) to read as
follows:
Sec. 1412.201 Production flexibility contract.
* * * * *
(c) All producers sharing in the contract payments on a farm whose
payment shares have not been designated for a fiscal year, must sign
the contract designating payment shares and provide supporting
documentation as specified in parts 1400, 1405, and 12 of this title,
no later than August 1 of the fiscal year to be eligible to earn a
contract payment in that fiscal year. If all producers have not signed
the contract by this deadline; no producers on the contract will be
eligible for a payment for that farm for that fiscal year.
3. Section 1412.207 paragraph (d) is revised to read as follows:
Sec. 1412.207 Succession-in-interest to a production flexibility
contract.
* * * * *
(d) A producer or owner must inform the county committee of changes
in interest not later than:
(1) August 1 of the fiscal year in which the change occurs, if
producers on the contract remain the same, but payment shares change;
or
(2) August 1 of the fiscal year in which the change occurs , if a
new producer is being added to the contract.
* * * * *
4. Section 1412.302 paragraph (b) is revised to read as follows:
Sec. 1412.302 Contract payment provisions.
* * * * *
(b) At the option of the producer, for fiscal year 1997 and each
subsequent fiscal year, 50 percent of the annual contract payment shall
be paid on December 15 or January 15, as requested by the producer. To
receive the advance payment the producers on the farm must be in
compliance with all requirements of the contract at the time of the
advance payment. For fiscal year 1998 and each subsequent fiscal year,
all producers sharing in the contract payment on the farm must, no
later than 15 days prior to the final date to issue the advance payment
sign the contract designating payment shares and provide supporting
documentation as specified in parts 1400, 1405, and 12 of this title,
if applicable; and request the advance payment. If all producers on the
farm have not signed the contract designating payment shares, according
to this paragraph, then no producers will be eligible for an advance
payment for that farm for that fiscal year.
* * * * *
5. Section 1412.303 is amended by removing paragraph (a)(6) and
revising paragraphs (a)(2) and (a)(4) to read as follows:
Sec. 1412.303 Sharing of contract payments.
(a) * * *
(2) A lease will be considered a cash lease if the lease provides
for only a guaranteed sum certain cash payment, or a fixed quantity of
the crop (for example, cash, pounds, or bushels per acre).
* * * * *
(4) A lease shall be considered a share lease if the lease provides
for both a guaranteed amount such as a fixed dollar amount or quantity
and a share of a crop or crop proceeds, including leases which provide
for the greater of a guaranteed amount or share of the crop or crop
proceeds.
* * * * *
6. Section 1412.304 paragraph (b) is revised to read as follows:
Sec. 1412.304 Provisions relating to tenants and sharecropper.
* * * * *
(b) Notwithstanding the provisions set forth at Sec. 1412.302(c),
if the landowners, tenants and sharecroppers on a farm fail to reach an
agreement regarding the division of contract payments for a fiscal
year, the county committee shall make the payment at a later date if
all persons eligible to receive a share of the contract payment, have
executed a contract not later than August 1 of the applicable fiscal
year and subsequently agree to the division of contract payment.
Signed at Washington, DC, on October 15, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-28009 Filed 10-22-97; 8:45 am]
BILLING CODE 3410-05-P `
