[Federal Register Volume 64, Number 72 (Thursday, April 15, 1999)]
[Rules and Regulations]
[Pages 18553-18563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9350]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 64, No. 72 / Thursday, April 15, 1999 / Rules
and Regulations
[[Page 18553]]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1477
RIN 0560-AF75
1998 Single-Year and Multi-Year Crop Loss Disaster Assistance
Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: This final rule sets forth the terms and conditions of the
1998 Single-Year and Multi-Year Crop Loss Disaster Assistance Program
(CLDAP). The purpose of the program is to provide payments to eligible
producers who suffered losses due to an eligible disaster in crop year
1998, or in at least 3 of the crop years from 1994 through 1998.
DATES: Effective April 15, 1999.
FOR FURTHER INFORMATION CONTACT: Rebecca Davis, (202) 720-9882.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order 12866
and has been determined to be economically significant and therefore
has been reviewed by the Office of Management and Budget (OMB).
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this rule because the Farm Service Agency (FSA) and the
Commodity Credit Corporation (CCC) are not required by 5 U.S.C. 553 or
any other provision of law to publish a notice of proposed rule making
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.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988. The provisions of this rule preempt State laws to the extent
such laws are inconsistent with the provisions of this rule. Before any
judicial action may be brought concerning provisions of this rule, the
administrative remedies must be exhausted.
Executive Order 12372
This program is 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 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.
Thus, this rule is not subject to the requirements of sections 202 and
205 of UMRA.
Paperwork Reduction Act and Small Business Regulatory Enforcement
Fairness Act
The provisions contained in this rule are authorized by the
Agriculture, Rural Development, Food and Drug Administration and
Related Agencies Appropriations Act, 1999 (``1999 Act'') (Pub. L. 105-
277, 112 Stat.2681). Section 1133 of the 1999 Act provides that such
rules shall be issued as soon as practicable and without regard to: (1)
the notice and comment provisions of section 553 of title 5, United
States Code; (2) 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; and (3)
chapter 35 of title 44, United States Code (commonly known as the
``Paperwork Reduction Act''). Accordingly, these regulations are being
issued as a final rule without a notice and comment period, and the
forms and the collection of information do not require prior OMB
approval.
In addition, this rule was determined to be a major rule as defined
in the Small Business Regulatory Enforcement Act of 1996 (SBREFA).
Section 1133 of the 1999 Act provides that these regulations shall use
the authority provided under section 808 of SBREFA that allows an
agency to promulgate a rule at such time as it determines necessary,
notwithstanding the Congressional review of major regulations provided
for in section 801 of SBREFA. It is hereby determined that delaying
this rule would be contrary to the public interest because of the need
for expeditious implementation of the rule as expressed in the text of
the 1999 Act. Accordingly, this rule is effective upon publication.
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.
Background
This final rule adds 7 CFR part 1477 setting forth the terms and
conditions under which producers who suffered crop losses as a result
of natural disaster may apply for benefits to compensate for their
losses for the crop year 1998 or for at least 3 of the years from 1994
through 1998 as authorized by the 1999 Act.
Producers who seek benefits under this subpart must file an
application for benefits during the sign-up period, February 1, 1999,
through April 9, 1999, or other ending date as determined by the Deputy
Administrator. False certification carries strict penalties; and the
Department will spot-check and validate applications. Because funding
for the program is limited, national factors for reducing payments will
be determined after the end of sign up, if necessary, to ensure that
total outlays do not exceed the amount of funds made available under
this program.
The rules set a payment limit on the amount of benefits that can be
received and limit the multi-year benefits to ``producers'' with the
qualifying history
[[Page 18554]]
for which purposes changes in the farming operation will be considered
to involve different producers. This will allow the history
determinations to reflect the actual composition of farms during the
history period, consistent with the purposes of the 1999 Act. It will
at the same time permit the agency to accurately verify losses.
Further, as to the multi-year program, the rules build on existing
programs which have identified the general Federal policy on when crop
losses should be covered. This, as well, will permit the verification
of losses. Existing policy has emphasized the importance of crop
insurance where such insurance is available and in cases of non-
insurable crops (those for which Federal crop insurance is not
available) has allowed only for coverage in limited instances in which
there is a verified area-wide loss. However, these programs have never
provided full relief and this rule will partially alleviate the
shortfalls in those Federal programs for farmers who have had long-term
losses. The Secretary has been given a wide discretion in the
implementation of the 1999 Act and these rules will be consistent with
existing Federal policies and with the understanding of the desire of
Congress to attempt to alleviate the shortcomings in current programs.
These rules will, in addition, allow relief to be made available
quickly, and effectively, within the limits of the funding available
for this program.
List of Subjects in 7 CFR Part 1477
Disaster assistance, emergency assistance, reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, a new 7 CFR part 1477 is
added to subchapter B of 7 CFR Chapter XIV to read as follows:
PART 1477--1998 SINGLE-YEAR AND MULTI-YEAR CROP LOSS DISASTER
ASSISTANCE PROGRAM
Subpart A--General Provisions
Sec.
1477.101 Applicability.
1477.102 Administration.
1477.103 Definitions.
1477.104 Producer eligibility.
1477.105 Time for filing application.
1477.106 Limitation on payments and other benefits.
1477.107 Crop insurance premium discounts.
1477.108 Requirement to purchase crop insurance.
1477.109 Miscellaneous provisions.
1477.110 Matters of general applicability.
Subpart B--1998 Single-Year Crop Loss Disaster Assistance Program
1477.201 Single-year crop losses.
1477.202 Calculating rates and yields.
1477.203 Production losses, producer responsibility.
1477.204 Determination of production.
1477.205 Calculation of acreage for crop losses other than
prevented planted.
1477.206 Calculation of prevented planted acreage.
1477.207 Quality adjustments to production.
1477.208 1999 crop losses.
1477.209 Value loss crops.
1477.210 Other Specialty crops.
Subpart C--Multi-Year Crop Loss Disaster Assistance Program
1477.300 Multi-year crop losses.
Authority: Sec. 1101 and 1102 of Pub. L. 105-277, 112 Stat.2681;
15 U.S.C. 714b and 714c.
Subpart A--General Provisions
Sec. 1477.101 Applicability.
(a) This part sets forth the terms and conditions applicable to the
1998 Crop Loss Disaster Assistance Program. Under sections 1101 and
1102 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (``1999
Act'') (Pub. L. 105-277, 112 Stat. 2681), the Secretary of Agriculture
will make disaster payments available to certain producers who have
incurred losses in quantity or quality of their crops due to disasters.
Producers will be able to receive benefits under this part for losses
to 1998 crops, or losses occurring in at least 3 years for which
payments were received for the period 1994 through 1998, as determined
by the Secretary. Accordingly, this part contains three subparts.
Subpart A contains general provisions applicable to both the single-
year and multi-year aspects of the 1998 Crop Loss Disaster Assistance
Program, which are contained in Subparts B and C, respectively.
(b) In accordance with section 1102(g)(2) of the 1999 Act, the
Secretary has authorized use of a portion of the funds authorized by
the Act to establish crop insurance premium discounts for the 1999 crop
year (2000 crop year for citrus fruit, avocados in California, and
macadamia nuts in Hawaii). This part establishes provisions and
requirements for implementation of those discounts.
Sec. 1477.102 Administration.
(a) The program will be administered under the general supervision
of the Executive Vice President, Commodity Credit Corporation (CCC),
and shall be carried out in the field by State and county Farm Service
Agency (FSA) committees.
(b) State and county FSA committees and representatives do not have
the authority to modify or waive any of the provisions of this part.
(c) The State FSA committee shall take any action required by this
part which has not been taken by a county FSA committee. The State FSA
committee shall also:
(1) Correct or require a county FSA committee to correct any action
taken by such county FSA committee which is not in accordance with this
part; and
(2) Require a county FSA committee to withhold taking or reverse
any action which is not in accordance with this part.
(d) No delegation herein to a State or county FSA committee shall
prevent the Deputy Administrator from determining any question arising
under the program or from reversing or modifying any determination made
by a State or county FSA committee.
(e) The Deputy Administrator may authorize the State and county
committees to waive or modify deadlines or other program requirements
in cases where lateness or failure to meet such other requirements does
not adversely affect the operation of the program or when, in his
discretion, it is determined that an exception should be allowed to
provide for a more equitable distribution of benefits consistent with
the goals of the program provided for in this part.
Sec. 1477.103 Definitions.
The definitions in this section shall be applicable for all
purposes of administering the 1998 Crop Loss Disaster Assistance
Program and all subparts of this part.
Actual production means the total quantity of the crop appraised,
harvested or which could have been harvested as determined by the
county or State FSA committee in accordance with instructions issued by
the Deputy Administrator.
Additional coverage means with respect to insurance plans of crop
insurance providing a level of coverage equal to or greater than 65
percent of the approved yield indemnified at 100 percent of the
expected market price, or a comparable coverage as established by FCIC.
Appraised production means production determined by FSA, RMA, FCIC,
a company reinsured by FCIC, or other appraiser acceptable to CCC, that
was unharvested but which was determined to reflect the crop's yield
potential at the time of appraisal.
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Approved yield means the amount of production per acre, computed in
accordance with FCIC's Actual Production History Program (7 CFR part
400, subpart G) or for crops not included under 7 CFR part 400, subpart
G, the yield used to determine the guarantee. For crops covered under
the Noninsured Crop Disaster Assistance program, the approved yield is
established according to part 1437 of this title.
Aquaculture means the reproduction and rearing of aquatic species
in controlled or selected environments, including, but not limited to,
ocean ranching (except private ocean ranching of Pacific salmon for
profit in those States where such ranching is prohibited by law).
Aquaculture facility means any land or structure including, but not
limited to, a laboratory, hatchery, rearing pond, raceway, pen,
incubator, or other equipment used in aquaculture.
Aquacultural species means aquacultural species as defined in part
1437 of this chapter.
CCC means the Commodity Credit Corporation.
Catastrophic risk protection means the minimum level of coverage
offered by FCIC.
Catastrophic Risk Protection Endorsement means the relevant part of
the Federal crop insurance policy that contains provisions of insurance
that are specific to catastrophic risk protection.
Control county means: for a producer with farming interests in only
one county, the county FSA office in which the producer's farm(s) is
administratively located; for a producer with farming interests which
are administratively located in more than one county FSA office, the
county FSA office designated by FSA to control the payments received by
the producer.
County committee means the local FSA county committee.
Crop of economic significance means a crop with a value equal to
ten percent (10%) or more of the total value of the producer's share of
all crops grown in the county for the relevant crop year. However, an
amount will not be considered economically significant if the potential
liability under the Catastrophic Risk Protection Endorsement is equal
to or less than the administrative fee required with respect to such
insurance for the crop, or, if applicable, the crop type or variety.
Crop insurance means an insurance policy reinsured by the Federal
Crop Insurance Corporation under the provisions of the Federal Crop
Insurance Act, as amended.
Cropland means cropland as defined in part 718 of this title.
Crop year means: for insured and uninsured crops, the crop year as
defined according to the applicable crop insurance policy; and for
noninsurable crops, the year harvest normally begins for the crop,
except the crop year for all aquacultural species and nursery crops
shall mean the period from October 1 through the following September
30, and the crop year for purposes of calculating honey and tree losses
shall be the period running from January 1 through the following
December 31.
Deputy Administrator means the Deputy Administrator for Farm
Programs, Farm Service Agency (FSA), or a designee.
Disaster means damaging weather, including drought, excessive
moisture, hail, earthquake, freeze, tornado, hurricane, typhoon,
volcano, excessive wind, excessive heat, or any combination thereof;
and shall also include a related condition and all eligible loss
conditions, excluding price risk for 1998 single-year losses, as
determined by the crop insurance policy, if RMA has made an eligible
loss determination.
Double-cropped means a condition in which a subsequent crop of a
different commodity is planted on the same acreage as the first crop
within the same crop year if the county committee determines both crops
were or could have been carried to harvest.
End use means the purpose for which the harvested crop is used,
such as fresh, processed or juice.
Entity means any legal organization or joint venture of any kind,
including, but not limited to, corporations, trusts and partnerships.
Expected market price (price election) means the price per unit of
production (or other basis as determined by FCIC) anticipated during
the period the insured crop normally is marketed by producers. This
price will be set by FCIC before the sales closing date for the crop.
The expected market price may be less than the actual price paid by
buyers if such price typically includes remuneration for significant
amounts of post-production expenses such as conditioning, culling,
sorting, packing, etc.
Expected production means, for an agricultural unit, the historic
yield multiplied by the number of planted or prevented acres of the
crop for the unit.
FCIC means the Federal Crop Insurance Corporation, a wholly owned
Government Corporation within USDA.
Final planting date means the date established by RMA for insured
and uninsured crops by which the crop must be initially planted in
order to be insured for the full production guarantee or amount of
insurance per acre. For noninsurable crops, the final planting date is
the end of the planting period for the crop as determined by CCC.
Flood prevention means with respect to aquacultural species,
placing the aquacultural facility in an area not prone to flood; in the
case of raceways, providing devices or structures designed for the
control of water level; and for nursery crops, placing containerized
stock in a raised area above expected flood level and providing
draining facilities, such as drainage ditches or tile, gravel, cinder
or sand base.
FSA means the Farm Service Agency.
Good nursery growing practices means utilizing flood prevention,
growing media, fertilization to obtain expected production results,
irrigation, insect and disease control, weed, rodent and wildlife
control, and over winterization storage facilities.
Growing media means:
(1) For aquacultural species, media that provides nutrients
necessary for the production of the aquacultural species and protects
the aquacultural species from harmful species or chemicals; and
(2) For nursery crops, media designed to prevent ``root rot'' and
other media-related problems through a well-drained media with a
minimum 20 percent air pore space and pH adjustment for the type of
plant produced.
Harvested means: For insured and uninsured crops, harvested as
defined according to the applicable crop insurance policy; for
noninsurable single harvest crops, that a crop has been removed from
the field, either by hand or mechanically, or by grazing of livestock;
for noninsurable crops with potential multiple harvests in one year or
harvested over multiple years, that the producer has, by hand or
mechanically, removed at least one mature crop from the field; and for
mechanically harvested noninsurable crops, that the crop has been
removed from the field and placed in a truck or other conveyance,
except hay is considered harvested when in the bale, whether removed
from the field or not. Grazed land will not be considered harvested for
the purpose of determining an unharvested or prevented planting payment
factor.
Historic yield means, for a unit, the higher of the county average
yield or the producer's approved yield.
Individual stand means, with respect to trees, an area of eligible
trees that are tended by an eligible producer as a single operation,
whether or not the trees are planted in the same field or
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similar location, as determined by the county committee. Eligible trees
not in the same field or similar location may be considered to be
separate individual stands if county committee determines that there
are significantly differing levels of loss susceptibility.
Insurance is available means when crop information is contained in
RMA's county actuarial documents for a particular crop and a policy can
be obtained through the RMA system, except if the Group Risk Plan of
crop insurance was the only plan of insurance available for the crop in
the county in the 1998 crop year, insurance is considered not available
for that crop.
Insured crops means those crops covered by crop insurance pursuant
to 7 CFR Chapter IV and for which the producer purchased either the
catastrophic or buy-up level of crop insurance so available.
Intended crop means an insured crop which the producer timely
indicates for RMA insurance purposes as the crop the producer intends
to produce.
Limited coverage means plans of crop insurance offering coverage
that is equal to or greater than 50 percent of the approved yield
indemnified at 100 percent of the expected market price, or a
comparable coverage as established by FCIC, but less than 65 percent of
the approved yield indemnified at 100 percent of the expected market
price, or a comparable coverage as established by FCIC.
Multi-use crop means a crop intended for more than one end use
during the calendar year such as grass harvested for seed, hay, and/or
grazing.
Multiple planting means the planting for harvest of the same crop
in more than one planting period in a crop year on different acreage.
Noninsurable crops means those crops for which crop insurance was
not available.
Normal mortality means the percentage of damaged or dead trees in
the individual stand or the percentage of dead aquacultural species
that would normally occur during the crop year.
Operator means operator as defined in part 718 of this title.
Palmer Drought Severity Index means the meteorological index
calculated by the National Weather Service to indicate prolonged and
abnormal moisture deficiency or excess.
Pass-through funds means revenue that goes through, but does not
remain in, a person's account, such as money collected by an auction
house for the sale of livestock which is subsequently paid to the
sellers of the livestock, less a commission withheld by the auction
house.
Person means person as defined in part 1400 of this chapter, and
all rules with respect to the determination of a person found in that
part shall be applicable to this part. However, the determinations made
in this part in accordance with 7 CFR part 1400, subpart B, Person
Determinations, shall also take into account any affiliation with any
entity in which an individual or entity has an interest, irrespective
of whether or not such entities are considered to be engaged in
farming.
Planted acreage means land in which seed, plants, or trees have
been placed, appropriate for the crop and planting method, at a correct
depth, into a seedbed that has been properly prepared for the planting
method and production practice normal to the area as determined by the
county committee.
Producer means producer as defined in part 718 of this title.
Related condition means with respect to disaster, a condition
related to a disaster that causes deterioration of a crop such as
insect infestation, plant disease, or aflatoxin that is accelerated or
exacerbated naturally as a result of damaging weather occurring prior
to or during harvest as determined in accordance with instructions
issued by the Deputy Administrator.
Reliable production records means evidence provided by the producer
that is used to substantiate the amount of production reported when
verifiable records are not available, including copies of receipts,
ledgers of income, income statements of deposit slips, register tapes,
invoices for custom harvesting, and records to verify production costs,
that are determined acceptable by the county committee.
Repeat crop means with respect to a producer's production, a
commodity that is planted or prevented from being planted in more than
one planting period on the same acreage in the same crop year.
RMA means the Risk Management Agency.
Salvage value means the dollar amount or equivalent received by the
producer for the quantity of the commodity that cannot be marketed or
sold in any recognized market for the crop.
Secondary use means the harvesting of a crop for a use other than
the intended use, except for crops with intended use of grain, but
harvested as silage, ensilage, cobbage, hay, cracked, rolled, or
crimped.
Secondary use value means the value determined by multiplying the
quantity of secondary use times the CCC-established price for this use.
Secretary means the Secretary of the United States Department of
Agriculture.
Substitute crop means an alternative crop whose sales closing date
has passed and that is planted on acreage that is prevented from being
planted to an intended crop or where an intended crop is planted and
fails.
Trees means maple trees for syrup, or orchard trees grown for
commercial production of fruits or nuts.
Uninsured crops means those crops for which Federal crop insurance
was available, but the producer did not purchase insurance.
Unit means, unless otherwise determined by the Deputy
Administrator, basic unit as described in part 457 of this title which,
for ornamental nursery production shall include all eligible plant
species and sizes.
Unit of measure means:
(1) For all insured and uninsured crops, the FCIC-established unit
of measure;
(2) For aquacultural species, a standard unit of measure such as
gallons, pounds, inches or pieces, established by the State committee
for all aquacultural species or varieties;
(3) For Christmas trees, a plant or tree;
(4) For turfgrass sod, a square yard;
(5) For maple sap, a gallon; and
(6) For all other crops, the smallest unit of measure which lends
itself to the greatest level of accuracy with minimal use of fractions,
as determined by the State committee.
United States means all 50 States of the United States, the
Commonwealth of Puerto Rico, the Virgin Islands and Guam.
USDA means United States Department of Agriculture.
Value loss crop will have the meaning assigned in part 1437 of this
chapter.
Verifiable production records means evidence that is used to
substantiate the amount of production reported and that can be verified
by CCC through an independent source.
Sec. 1477. 104 Producer eligibility.
(a) Producers in the United States will be eligible to receive
disaster benefits under this part only if they have suffered either:
(1) 1998 crop losses as a result of a disaster and as further
specified in Subpart B; or
(2) Multi-year crop losses as a result of a disaster and as further
specified in Subpart C.
(b) Payments may be made for losses suffered by an eligible
producer who is now deceased or is a dissolved entity if a
representative who currently has
[[Page 18557]]
authority to enter into a contract for the producer signs the
application for payment. Proof of authority to sign for the deceased
producer or dissolved entity must be provided. If a producer is now a
dissolved general partnership or joint venture, all members of the
general partnership or joint venture at the time of dissolution or
their duly authorized representatives must sign the application for
payment.
(c) As a condition to receive benefits under this part, a producer
must have been in compliance with the Highly Erodible Land Conservation
and Wetland Conservation provisions of part 12 of this title, for the
year or years for which benefits are sought.
(d) The provisions of paragraph (c) of this section do not apply to
producers receiving benefits under this part for value loss crops.
Sec. 1477.105 Time for filing application.
(a) Applications for benefits under Subpart B, the 1998 Crop Loss
Disaster Assistance Program Single Year 1998 Losses, shall be filed
before the close of business on April 9, 1999, in the county FSA office
serving the county where the producer's farm is located for
administrative purposes.
(b) Applications for benefits under Subpart C, the1998 Crop Loss
Disaster Assistance Program Multi-year Losses, shall be filed before
the close of business on April 9, 1999, with the county FSA office
designated as the producer's control county.
(c) The Deputy Administrator may grant general exceptions to these
deadlines for filing applications.
Sec. 1477.106 Limitations on payments and other benefits.
(a) A producer may receive disaster benefits under either subpart B
or C, but not both.
(b) A producer qualifying for disaster benefits under both subparts
B or C, may receive whichever amount is greater as calculated according
to this part.
(c) Payments will not be made under this subpart for grazing
losses. Further, the Deputy Administrator may divide crops based on
loss susceptibility, yield, and other factors.
(d) No person shall receive more than a total of $80,000 in
disaster benefits under this part. No person shall receive more than
$25,000 in disaster benefits under this part for tree losses.
(e) No person shall receive disaster benefits under this part in an
amount that exceeds the value of the expected production for the
relevant period as determined by CCC.
(f) A person who has a gross revenue in excess of $2.5 million for
the 1997 tax year shall not be eligible to receive disaster benefits
under this part. If the person does not have a 1997 tax year because
the entities were dissolved in a prior year, the last tax year for the
person will be used. Gross revenue includes the total income and total
gross receipts of the person, before any reductions. Gross revenue
shall not be adjusted, amended, discounted, netted or modified for any
reason. No deductions for costs, expenses or pass-through funds will be
deducted from any calculation of gross revenue. For making this
determination, gross revenue means the total gross receipts received
from farming or ranching operations if the person receives more than 50
percent of such person's gross income from farming or ranching; or the
total gross receipts received from all sources if the person receives
50 percent or less of such person's gross receipts from farming and
ranching.
(g) Payment eligibility under this part shall be in addition to
whatever eligibility the producer may have to other payments including
but not limited to:
(1) Payments under the noninsured crop disaster assistance program
established under the Agricultural Market Transition Act (7 U.S.C.
7333);
(2) Crop insurance indemnities provided under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.);
(3) Emergency loans made available under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.);
(4) Payments received by a person for participation in a Production
Flexibility Contract authorized under Title 1 of the Agricultural
Market Transition Act (7 U.S.C. 7211 et seq.); and
(5) Market Loss Assistance payments made under Sec. 1111 of the
1999 Act.
(h) In the event the total amount of applications for disaster
benefits under this part exceeds the available funds, payments shall be
reduced by a uniform national percentage. Such reductions shall be
applied before any determination of limits on compensation due to
multiple USDA benefits and after the imposition of applicable payment
limitation and gross revenues caps.
Sec. 1477.107 Crop insurance premium discounts.
(a) A crop insurance premium discount is available to all producers
who have limited or additional coverage crop insurance policies for the
1999 crop year (for the 2000 crop year for citrus fruit, Avocados in
California, and Macadamia Nuts in Hawaii) as follows:
(1) Producers of crops that have sales closing dates for the 1999
crop year (2000 crop year for citrus fruit, avocados in California, and
macadamia nuts in Hawaii) on or after July 31, 1998, and on or before
February 15, 1999, must have by the following dates purchased limited
or additional coverage and submitted their acreage and production
reports:
----------------------------------------------------------------------------------------------------------------
Production/acreage
States Application deadline reporting date
----------------------------------------------------------------------------------------------------------------
Arizona, Florida, Georgia, February 28, 1999.................................. April 15, 1999.
Hawaii, Louisiana,
Mississippi, and South
Carolina.
All other States.............. March 15, 1999..................................... April 30, 1999.
----------------------------------------------------------------------------------------------------------------
(2) For crops with a final planting date on or after December 31,
1998, but before August 15, 1999, the acreage reporting date will be
the later of the date shown in paragraph (a)(1) of this section or the
acreage reporting date specified in the producer's crop insurance
policy.
(3) For crops that have sales closing dates for the 1999 crop year
(2000 crop year for citrus fruit, avocados in California, and macadamia
nuts in Hawaii) after February 15, 1999, producers must purchase
limited or additional coverage by the sales closing date for the
applicable crop.
(b) Producers who are currently insured by the sales closing date
for the applicable crop may not:
(1) Lower their insurance coverage or transfer to another insurance
provider for crops with extended dates specified in paragraph (a)(1) of
this section; or
(2) Cancel their insurance policy if the cancellation date has
already passed, unless the producer is changing insurance plans at the
same or a higher coverage level.
[[Page 18558]]
(c) Producers who are presently ineligible for crop insurance
coverage due to a delinquent debt will be allowed to satisfy such debt
and obtain coverage during the extended application period specified in
paragraph (a)(1) of this section.
(d) The exact percentage for the crop insurance premium discount
will be calculated once the total amount of premium for the 1999 crop
year (2000 crop year for citrus fruit, avocados in California, and
macadamia nuts in Hawaii) at the limited and additional coverage levels
has been established.
(e) An additional crop insurance premium discount may be made
available for any crops insured for the 1999 crop year by producers who
have suffered multiple losses due to scab and/or vomitoxin damage as
provided below; this discount is in addition to the premium discount
referenced in paragraph (a) of this section and in order to qualify for
this discount, a producer must:
(1) Have insured wheat, barley, oats, or rye in at least two crop
years during the 1994 through 1998 crop years (A producer must provide
evidence of such insurance if the insurance provider has no such
record; and
(2) Provide evidence that wheat, barley, oats, or rye produced by
the producer was subjected to a discounted price or decrease in yield
due to scab or vomitoxin damage in at least two crop years during the
1994 through 1998 crop years.
(f) The two years of insurance specified in paragraph (e)(1) of
this section, the two years of discounted prices or yields due to scab
and/or vomitoxin specified in paragraph (e)(2) of this section, and the
small grain crops affected need not be the same (e.g., a producer could
have insured 1995 and 1996 wheat, but had scab and/or vomitoxin damage
on 1997 and 1998 barley).
(g) This discount in paragraph (e) of this section can only be
applied to the same identical producer that met the qualifications for
the discount as required in paragraph (e) of this section.
(h) The total premium discounts allowed under this section to any
person cannot exceed $80,000. The $2.5 million gross revenue limitation
does not apply to the premium discounts specified in this section.
Sec. 1477.108 Requirement to purchase crop insurance.
(a) As required in 1102(g)(3) of the Act, any producer who receives
crop loss assistance under this part who did not purchase crop
insurance for all insurable crops for the 1998 crop year (1999 crop
year for citrus fruit, Avocados in California, and Macadamia Nuts in
Hawaii) must purchase crop insurance for the 1999 and 2000 crop years
(2000 and 2001 crop years for citrus fruit, avocados in California, and
macadamia nuts in Hawaii) for all crops of economic significance
produced by such producer for which insurance is available.
(b) Any producer who is required to purchase crop insurance in
accordance with paragraph (a) of this section who does not purchase
either limited or additional coverage by the sales closing date for the
applicable crop or the extended application dates specified in section
1477.107(a)(1), may purchase catastrophic risk protection until April
28, 1999. Such producers will have until the following dates to provide
their acreage and production reports:
(1) For policies under which the crop was planted on or before
December 31, 1998, or the crop is a perennial crop, the producer must
submit the acreage and production reports at the time of the
Catastrophic Risk Protection application; or
(2) For spring crops, the acreage and production reports must be
submitted by the later of May 29, 1999, or the latest spring acreage
reporting date specified in the crop insurance policy.
(c) Nothing in this section supersedes the provisions contained in
7 CFR part 400, subpart T, relating to the availability of Catastrophic
Risk Protection coverage whenever a producer is unable to plant the
intended crop or it is not practical to replant a failed crop before
the final planting date, and the producer plants a substitute crop.
(d) If any producer fails to purchase crop insurance as required in
paragraph (a) of this section, the producer will be required to pay
liquidated damages in an amount and within a reasonable period of time
as determined by the Deputy Administrator.
Sec. 1477.109 Miscellaneous provisions.
(a) Disaster benefits under this part may be withheld in accordance
with Sec. 1403.8 of this chapter.
(b) No interest will be paid or accrue on disaster benefits under
this part which are delayed or are otherwise not timely issued unless
otherwise mandated by law.
(c) A person shall be ineligible to receive disaster assistance
under this part if it is determined by the State or county committee or
an official of FSA that such person has:
(1) Adopted any scheme or other device which tends to defeat the
purpose of a program operated under this part;
(2) Made any fraudulent representation with respect to such
program; or
(3) Misrepresented any fact affecting a program determination.
(d) 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 (e) of this section and late-payment
charges as provided for in part 1403 of this chapter.
(e) Producers shall be required to pay interest on any refund
required of the producer receiving assistance or a payment if CCC
determines that payments or other assistance were provided to the
producer and the producer was not eligible for such assistance. The
interest rate shall be one percent greater than the rate of interest
which the United States Treasury charges CCC for funds, as of the date
of payment. Interest that is determined to be due CCC shall accrue from
the date such benefits were made available by CCC to the date repayment
is completed. CCC may waive the accrual of interest if CCC determines
that the cause of the erroneous determination was not due to any error
by the producer.
(f) All persons with a financial interest in the operation
receiving benefits under this part shall be jointly and severally
liable for any refund, including related charges, which is determined
to be due CCC for any reason under this part.
(g) In the event that any request for assistance or payment under
this part was established as result of erroneous information or a
miscalculation, the assistance or payment shall be recomputed and any
excess refunded with applicable interest.
(h) 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.
(i) 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
[[Page 18559]]
regulations set forth at parts 11 and 780 of this title.
(j) Any payment or portion thereof to any person shall be made
without regard to questions of title under State law and without regard
to any claim or lien again the crop, or proceeds thereof.
(k) Disaster benefits under this part will be made without taking
any applicable offsets. The regulations governing offsets found at part
792 of this title and 1403 of this chapter shall not apply to payments
made under this part.
(l) Payments which are earned under this part may be assigned in
accordance with the provisions of part 1404 of this chapter upon
filling out the applicable assignment form.
Sec. 1477.10 Matters of general applicability.
(a) For calculations of loss made with respect to insured crops,
the producer's existing unit structure will be used as the basis for
the calculation and may include optional units established according to
7 CFR Part 457 of this Title. For uninsured and noninsurable crops,
basic units will be established for these purposes.
(b) Loss payment rates and factors shall be established by the
state committee based on procedures provided by the Deputy
Administrator.
(c) County average yield for loss calculations will be the simple
average of the 1993 through 1997 official county yields established by
FSA.
(d) County committees will assign production when the county
committee determines:
(1) An acceptable appraisal or record of harvested production does
not exist;
(2) The loss is due to an ineligible cause of loss or practices
that cause lower yields than those upon which the historic yield is
based;
(3) The producer has a contract providing a guaranteed payment for
all or a portion of the crop;
(4) The crop is planted beyond the normal planting period for the
crop; or
(5) Other cause, as determined by the Deputy Administrator, exists
for such case.
(e) The county committee shall establish a maximum loss level based
on other losses in the county for the same crop. The maximum loss level
for the county shall be expressed as either a percent of loss or yield
per acre. The maximum loss level will apply when:
(1) Unharvested acreage has not been appraised by FSA, RMA, FCIC, a
company reinsured by FCIC, or other appraiser;
(2) The crop's loss is because of an ineligible disaster condition
or circumstances other than a natural disaster; or
(3) Acceptable production records for harvested acres are not
available from any source.
(f) Assigned production for practices that result in lower yields
than those for which the historic yield is based shall be established
by:
(1) Determining the acres planted to the low-yielding type of
practice;
(2) Multiplying the State office determined yield reduction factor
times the county average yield; and
(3) Multiplying the result of paragraph (f)(2) of this section
times the acres in paragraph (f)(1) of this section.
(g) Assigned production for crops planted beyond the normal
planting period for the crop shall be calculated according to the
lateness of planting the crop. If the crop is planted after the final
planting date by:
(1) 1 through 10 calendar days, the assigned production will be
based on one percent of the payment yield for each day involved.
(2) 11 through 24 calendar days, the assigned production will be
based on 10 percent of the payment yield plus an additional two percent
reduction of the payment yield for each days of days 11 through 24
which are involved.
(3) 25 or more calendar days or a date in which the crop would not
reasonably be expected to mature by harvest, the assigned production
will be based on 50 percent of the payment yield or such greater amount
determined by the county committee to be appropriate.
(h) Assigned production for producers with contracts to receive a
guaranteed payment for production of an eligible crop will be
established by the county committee by:
(1) Determining the total amount of guaranteed payment for the
unit;
(2) Converting the guaranteed payment to guaranteed production by
dividing the total amount of guaranteed payment by the approved county
price for the crop or variety or such other factor deemed appropriate
if otherwise the production would appear to be too high; and
(3) Establishing the production for the unit as the greater of the
actual net production for the unit or the guaranteed payment.
Subpart B--1998 Single-Year Crop Loss Disaster Assistance Program
Sec. 1477.201 Single-year crop losses.
(a) To receive disaster benefits under this subpart which covers
single-year 1998 crop losses, the county committee must determine that
because of a disaster, the producer with respect to the 1998 crop year:
(1) Was prevented from planting a crop;
(2) Sustained a loss in excess of 35 percent of the expected
production of a crop;
(3) Sustained a loss in excess of 35 percent of the value for value
loss crops; or
(4) Sustained damage in excess of 20 percent of an individual stand
of eligible trees, after adjustments for normal mortality.
(b) Calculation of benefits under this subpart shall not include
losses:
(1) That are the result of poor management decisions or poor
farming practices as determined by the county committee on a case-by-
case basis based on instructions issued by the Deputy Administrator;
(2) That are the result of the failure of the producer to reseed or
replant to the same crop in the county where it is customary to reseed
or replant after a loss;
(3) That are not as a result of a natural disaster;
(4) To crops not intended for harvest in crop year 1998;
(5) To losses of by-products resulting from processing or
harvesting a crop, such as cotton seed, peanut shells, wheat or oat
straw;
(6) To home gardens; or
(7) As a result of water contained or released by any governmental,
public, or private dam or reservoir project if an easement exists on
the acreage affected for the containment or release of the water.
(c) Calculation of benefits under this subpart for ornamental
nursery stock shall not include losses:
(1) Caused by a failure of power supply or brownouts;
(2) Caused by the inability to market nursery stock as a result of
quarantine, boycott, or refusal of a buyer to accept production;
(3) Caused by fire;
(4) Affecting crops where weeds and other forms of undergrowth in
the vicinity of the nursery stock have not been controlled; or
(5) Caused by the collapse or failure of buildings or structures.
(d) Calculation of benefits under this subpart for honey where the
honey production by colonies or bees was diminished, shall not include
losses:
(1) Where the inability to extract was due to the unavailability of
equipment; the collapse or failure of equipment or apparatus used in
the honey operation;
(2) Resulting from improper storage of honey;
(3) To honey production because of bee feeding;
(4) Caused by the application of chemicals;
(5) Caused by theft, fire, or vandalism;
[[Page 18560]]
(6) Caused by the movement of bees by the producer or any other
person; or
(7) Due to disease or pest infestation of the colonies.
Sec. 1477.202 Calculating rates and yields.
(a) Payment rates for 1998 single-year crop losses shall be:
(1) 65 percent of the maximum established RMA price for insured
crops;
(2) 65 percent of the State average price for noninsurable crops;
(3) 60 percent of the maximum established RMA price for uninsured
crops; and
(4) 65 percent of the established practice rate for damage to
eligible trees.
(b) Disaster benefits under this subpart for losses to crops other
than trees shall be made in an amount determined by multiplying the
loss of production in excess of 35 percent of the expected production
by the applicable payment rate established according to paragraph (a)
of this section.
(c) Disaster benefits under this subpart for losses of trees shall
be made in an amount determined by multiplying the quantity of acres or
number of trees in a practice approved by the county committee
according to instructions issued by the Deputy Administrator, by the
payment rate established according to paragraph (a) of this section.
(d) Separate payment rates and yields for the same crop may be
established according to instructions issued by the Deputy
Administrator, when there is supporting data from NASS or other sources
approved by CCC that show there is a significant difference in yield or
value based on a distinct and separate end use of the crop. In spite of
differences in yield or values, separate rates or yields shall not be
established for crops with different cultural practices, such as
organically or hydroponically grown.
(e) Each eligible producer's share of a disaster payment shall be
based on the producer's share of the crop or crop proceeds, or, if no
crop was produced, the share the producer would have received if the
crop had been produced. In cases where crop insurance provides for a
landlord/tenant to insure the tenant/landlord's share according to part
457 of this title, disaster payments will be issued on the same basis.
(f) When calculating a payment for a unit loss:
(1) The unharvested payment factor shall be applied to crop acreage
planted but not harvested; and
(2) The prevented planting factor shall be applied to any prevented
planted acreage eligible for payment.
(g) Production from all end uses of a multi-use crop or all
secondary uses for multiple market crops will be calculated separately
and summarized together.
Sec. 1477.203 Production losses, producer responsibility.
(a) Where available, RMA loss records will be used for insured
crops.
(b) If RMA loss records are not available, producers are
responsible for:
(1) Retaining or providing, when required, the best verifiable or
reliable production records available for the crop;
(2) Summarizing all the production evidence;
(3) Accounting for the total amount of unit production for the
crop, whether or not records reflect this production; and
(4) Providing the information in a manner that can be easily
understood by the county committee.
(c) In determining production under this section the producer must
supply acceptable production records to substantiate production to the
county committee. If the eligible crop was sold or otherwise disposed
of through commercial channels, acceptable production records include:
commercial receipts; settlement sheets; warehouse ledger sheets; or
load summaries; appraisal information from a loss adjuster acceptable
to CCC. If the eligible crop was farm-stored, sold, fed to livestock,
or disposed of in means other than commercial channels, acceptable
production records include: truck scale tickets; appraisal information
from a loss adjuster acceptable to CCC; contemporaneous diaries; or
other documentary evidence, such as contemporaneous measurements.
(d) Producers must provide all records for any production of a crop
which is grown with an arrangement, agreement, or contract for
guaranteed payment. The failure to report the existence of any
guaranteed contract or similar arrangement or agreement shall be
considered as providing false information to CCC.
Sec. 1477.204 Determination of production.
(a) Production under this subpart shall include all harvested
production, unharvested appraised production and assigned production
for the total planted acreage of the crop on the unit.
(b) The harvested production of eligible crop acreage harvested
more than once in a crop year shall include the total harvested
production from all these harvests.
(c) If a crop is appraised and subsequently harvested, the actual
harvested production shall be used to determine benefits.
(d) For all crops eligible for loan deficiency payments or
marketing assistance loans with an intended use of grain but harvested
as silage, ensilage, cobbage, hay, cracked, rolled, or crimped,
production will be adjusted based on a whole grain equivalent according
to instructions issued by the Deputy Administrator.
(e) For crops with an established yield and market price for
multiple intended uses, a value will be calculated for each use.
(f) For crops sold in a market that is not a recognized market for
the crop with no established county average yield and market price, 60
percent, if insured or noninsurable, or 65 percent, if uninsured, of
the salvage value received will be deducted from the disaster payment.
(g) If a producer has an arrangement, agreement, or contract for
guaranteed payment for production (as opposed to production based on
delivery), the production to count shall be the greater of the actual
production or the guaranteed payment converted to production according
to instructions issued by the Deputy Administrator.
(h) Production that is commingled between units before it was a
matter of record and cannot be separated by using records or other
means acceptable to CCC shall be prorated to each respective unit
according to instructions issued by the Deputy Administrator.
Commingled production may be attributed to the applicable unit, if the
producer made the unit production of a commodity a matter of record
before commingling and does any of the following, as applicable:
(1) Provides copies of verifiable documents showing that production
of the commodity was purchased, acquired, or otherwise obtained from
beyond the unit;
(2) Had the production measured in a manner acceptable to the
county committee; or
(3) Had the current year's production appraised in a manner
acceptable to the county committee.
(i) The county committee shall assign production for the unit when
the county committee determines that:
(1) The producer has failed to provide adequate and acceptable
production records;
(2) The loss to the crop is because of a disaster condition not
covered by this subpart, or circumstances other than natural disaster,
and there has not otherwise been an accounting of this ineligible cause
of loss;
(3) The producer carries out a practice, such as double cropping,
that
[[Page 18561]]
generally results in lower yields than the established historic yields;
(4) The producer has a contract to receive a guaranteed payment for
all or a portion of the crop; or
(5) A crop is late-planted.
(j) For sugarcane, the quantity of sugar produced from such crop
shall exclude acreage harvested for seed.
(k) For peanuts, the actual production shall be all peanuts
harvested for nuts regardless of their disposition or use as adjusted
for low quality.
(l) For tobacco, except flue-cured and burley, the actual
production shall be the sum of the tobacco: marketed or available to be
marketed; destroyed after harvest; and produced but unharvested, as
determined by an appraisal. For flue-cured and burley tobacco, the
actual production shall be the sum of the tobacco: marketed, regardless
of whether the tobacco was produced in the current crop year or a prior
crop year; on hand; destroyed after harvest; and produced but
unharvested, as determined by an appraisal.
Sec. 1477.205 Calculation of acreage for crop losses other than
prevented planted.
(a) Subject to paragraph (b) of this section, the acreage of a crop
planted in each planting period shall be considered a different crop
for the purpose of determining disaster benefits under this subpart.
(b) In cases where there is a repeat crop, double crop or a
multiple planting, each of these crops may be considered different
crops if the county committee determines that:
(1) Both the initial and subsequent planted crops were planted with
an intent to harvest;
(2) The subsequent crop was planted after the time when the initial
crop would normally have been harvested;
(3) Both the initial and subsequent planted crops were planted
within the normal planting period for that crop; and
(4) Both the initial and subsequent planted crops meet all other
eligibility provisions of this part including good farming practices.
(c) In cases where an initial crop is planted and fails due to an
eligible disaster condition and it is generally considered too late to
replant and a subsequent crop is planted on the same acreage within its
normal planting period in the same crop year and also failed because of
an eligible disaster condition, both crops are eligible for disaster
assistance if they meet all other eligibility provisions of this part.
Sec. 1477.206 Calculation of prevented planted acreage.
(a) When determining losses under this subpart, prevented-planted
acreage will be considered separately from planted acreage of the same
crop.
(b) Except as provided in paragraph (c) of this section, for
insured crops, disaster payments under this subpart for prevented-
planted acreage shall not be made unless RMA documentation indicates
that the eligible producer received a prevented planting payment under
the RMA-administered program.
(c) For insured crops, disaster payments under this subpart for
prevented-planted acreage will be made available for the following
crops for which prevented planting coverage was not available and for
which the county committee will make an eligibility determination
according to paragraph (d) of this section: California safflowers;
peanuts; peppers; popcorn; Central/Southern potatoes; sweet corn (fresh
market); tomatoes (fresh market); tomatoes (processing).
(d) For uninsured or noninsurable crops, or the insured crops
listed in paragraph (c) of this section, the producer must prove, to
the satisfaction of the county committee, an intent to plant the crop
and that such crop could not be planted because of an eligible
disaster. The county committee must be able to determine the producer
was prevented from planting the crop by an eligible disaster that both:
(1) Prevented most producers from planting on acreage with similar
characteristics in the surrounding area; and
(2) Unless otherwise allowed by the Deputy Administrator, began no
earlier than the planting season for the 1998 crop.
(e) Prevented planted disaster benefits under this subpart shall
not apply to:
(1) Aquaculture, including ornamental fish; perennial forage crops
grown for hay, seed, or grazing; ginseng root and ginseng seed; honey;
maple sap; millet; nursery crops; sweet potatoes; tobacco; trees;
turfgrass sod; and tree and vine crops;
(2) Any acreage which is double-cropped, even if the producer has a
history of double-cropping acreage;
(3) Uninsured crop acreage that is unclassified for insurance
purposes;
(4) Acreage that is used for conservation purposes or intended to
be left unplanted under any USDA program;
(5) The same acreage from which any benefit is derived under any
program administered by the USDA on which a crop is planted and fails
during the crop year except as provided in 1477.106(f) of this part;
(6) Any acreage on which a crop other than a cover crop was
harvested, hayed, or grazed during the crop year;
(7) Any acreage for which a cash lease payment is received for the
use of the acreage the same crop year unless the county committee
determines the lease was for haying and grazing rights only and was not
a lease for use of the land;
(8) Acreage for which planting history or conservation plans
indicate that the acreage would have remained fallow for crop rotation
purposes;
(9) Acreage for which the producer or any other person received a
prevented planted payment for any crop for the same acreage, excluding
share arrangements; and
(10) Acreage for which the producer cannot provide proof to the
county committee that inputs such as seed, chemicals, and fertilizer
were available to plant and produce a crop with the expectation of at
least producing a normal yield.
(f) Disaster benefits under this subpart shall not apply to acreage
where the prevented-planted acreage was affected by a disaster that was
caused by drought or the failure of the irrigation water supply unless
the acreage is in an area classified by the Palmer Drought Severity
Index as in a severe or extreme drought during the time period
specified by the producer.
(g) For uninsured or noninsurable crops and the insured crops
listed in paragraph (c) of this section, for prevented planting
purposes:
(1) The maximum prevented-planted acreage for all crops:
(i) Cannot exceed the number of acres of cropland in the unit for
the crop year; and
(ii) Will be reduced by the number of acres planted in the unit;
(2) The maximum prevented planted acreage for a crop cannot exceed
the number of acres planted by the producer, or which was prevented
from planting, to the crop in any 1 of the 1994 through 1997 crop years
as determined by the county committee;
(3) For crops grown under a contract specifying the number of acres
contracted, the prevented-planted acreage is limited to the result of
the number of acres specified in the contract minus planted acreage;
(4) For each crop type or variety for which separate prices or
yields are sought for prevented-planted acreage, the producer must
provide evidence that the claimed prevented-planted acres were
successfully planted in at least 1 of the most recent 4 crop years; and
[[Page 18562]]
(5) The prevented planted acreage must be one contiguous block
consisting of at least 20 acres or 20 percent of the intended planted
acreage in the unit, whichever is less.
Sec. 1477.207 Quality adjustments to production.
(a) Subject to paragraph (b) of this section, the quantity of
production of crops that were damaged due to disaster resulting in
diminished quality, shall be adjusted by the county committee in
accordance with instructions issued by the Deputy Administrator.
(b) Crops eligible for quality adjustments to production are
limited to:
(1) Barley; canola; corn; cotton; flaxseed; grain sorghum; mustard
seed; oats; peanuts; rapeseed; rice; safflower; soybeans; sugar beets;
sunflower-oil; sunflower-seed; tobacco; wheat; and
(2) Crops with multiple market uses such as fresh, processed or
juice, as supported by NASS data or other data determined acceptable in
accordance with instructions issued by the Deputy Administrator. RMA
loss production figures will not be used to conduct this quality
adjustment unless the Deputy Administrator determines otherwise.
(c) The producer must submit documentation for determining the
grade and other discount factors that were applied to the crop.
(d) Quality adjustments will be applied after production has been
adjusted to standard moisture, when applicable.
(e) Except for cotton, if a quality adjustment has been made for
multi-peril crop insurance purposes, an additional adjustment will not
be made.
(f) Quality adjustments for crops, other than cotton, peanuts,
sugar beets and tobacco, listed in paragraph (b)(1) of this section may
be made by applying an adjustment factor based on dividing the Federal
marketing assistance loan rate applicable to the crop and producer
determined according to part 1421 of this chapter by the unadjusted
county marketing assistance loan rate for the crop. For crops that
grade sample and are marketed through normal channels, production will
be adjusted according to instructions issued by the Deputy
Administrator. County committees may, with state committee concurrence,
establish county average quality adjustment factors according to
procedures issued by the Deputy Administrator.
(g) Quality adjustments for cotton shall be based on the difference
between:
(1) The loan rate applicable to the crop and producer determined
according to part 1427 of this chapter; and
(2) The adjusted county loan rate. The adjusted county rate is the
county loan rate adjusted for the 4-year county average historical
quality premium or discount, in accordance with instructions issued by
the Deputy Administrator.
(h) Quality adjustments for quota peanuts shall for unused quota be
based on the difference between the adjusted sales price and the quota
price. The adjusted sales price is the quota price minus discounts for
quality, regardless of the actual sales price received. Adjustments for
other peanuts may be made as determined appropriate by the Deputy
Administrator.
(i) Quality adjustments for sugar beets shall be based on sugar
content. The 1998 actual production for the producer shall be adjusted
upward or downward to account for sugar content according to
instructions issued by the Deputy Administrator.
(j) Quality adjustments for tobacco shall be based on the
difference between the sales price and the support price.
(k) Quality adjustments for crops with multiple market uses such as
fresh, processed and juice, shall be applied based on the difference
between the producer's historical marketing percentage of each market
use compared to the actual percentage for 1998, as determined in
accordance with instructions issued by the Deputy Administrator.
(l) Quality adjustments for aflatoxin shall be based on the
aflatoxin level. The producer must provide the County Office with proof
a price reduction because of aflatoxin. The aflatoxin level must be 20
parts per billion or more before a quality adjustment will be made. The
quality adjustment factor applied to affected production is .50 if the
production is marketable. If the production is unmarketable due to
aflatoxin levels of at least 20 parts per billion, production will be
adjusted to zero. Any value received will be considered salvage.
(m) Any quantity of the crop determined to be salvage will not be
considered production. Salvage values shall be factored by .60 for
insured and noninsurable commodities and .65 for uninsured commodities.
(n) Quality adjustments do not apply to value loss crops.
(o) Quality adjustments shall not apply to: hay, honey, maple sap,
turfgrass sod, crops marketed for a use other than an intended use for
which there is not an established county price or yield.
Sec. 1477.208 1999 Crop Losses.
(a) Producers have the option to receive benefits on 1999 crop
rather than 1998 loss when both the following apply:
(1) The 1999 crop was affected by disaster-related conditions that
occurred in calendar year 1998; and
(2) Harvest for the 1999 crop would normally begin in calendar year
1998.
(b) Producers may elect to use the 1999 crop for 1998 single-year
CLDAP benefits only.
Sec. 1477.209 Value loss crops.
(a) Special provisions to assess losses and calculate disaster
assistance under this subpart apply to the following crops and such
other crops as may be identified in instructions issued by the Deputy
Administrator: ornamental nursery; Christmas trees; ginseng root; and
aquaculture, including ornamental fish.
(b) Disaster benefits under this subpart are calculated based on
the loss of value at the time of disaster, as provided by instructions
issued by the Deputy Administrator.
(c) For aquaculture, disaster benefits under this subpart for
aquacultural species are limited to those aquacultural species which
were placed in the aquacultural facility by the producer. Disaster
benefits under this subpart shall not be made available for
aquacultural species that are growing naturally in the aquaculture
facility. Disaster benefits under this subpart are limited to
aquacultural species that were planted or seeded on property owned or
leased by the producer where that land has readily identifiable
boundaries, and over which the producer has total control of the
waterbed and the ground under the waterbed. Producers who only have
control over a column of water will not be eligible for disaster
benefits under this subpart.
(d) For ornamental nursery crops, disaster benefits under this
subpart are limited to ornamental nursery crops that were grown in a
container or controlled environment for commercial sale on property
owned or leased by the producer, and cared for and managed using good
nursery growing practices. Indigenous crops are not eligible for
benefits under this subpart.
(e) For Christmas trees, disaster benefits under this subpart are
limited to losses which exceed 35 percent of the value of the Christmas
trees present at the time of the disaster. Christmas tree producers
seeking disaster assistance under this subpart must provide acreage
data, dates of plantings and the quantity of trees planted on each
date.
[[Page 18563]]
Sec. 1477.210 Other specialty crops.
(a) Other special provisions to assess losses and calculate
disaster assistance under this subpart apply to the following crops and
such other crops as may be identified in instructions issued by the
Deputy Administrator: turfgrass sod, honey and maple sap.
(b) For turfgrass sod, disaster benefits under this subpart are
limited to turfgrass sod which would have matured and been harvested
during 1998, when a disaster caused in excess of 35 percent of the
expected production to die.
(c) For honey, disaster benefits under this subpart are limited to
table and nontable honey produced commercially for human consumption.
For calculating benefits, all honey is considered a single crop,
regardless of type or variety of floral source or intended use.
(d) For maple sap, disaster benefits under this subpart are limited
to maple sap produced on private property in a controlled environment
by a commercial operator for sale as sap or syrup. The maple sap must
be produced from trees that are: located on land the producer controls
by ownership or lease; managed for production of maple sap; and are at
least 30 years old and 12 inches in diameter.
Subpart C--Multi-Year Crop Loss Disaster Assistance Program
Sec. 1477.300 Multi-year crop losses.
(a) The disaster benefits under this subpart, the 1998 Crop Loss
Disaster Assistance Program Multi-year Losses, will be equal to 25
percent of the producer's previous loss payments for the qualifying
losses if the producer received:
(1) Crop insurance indemnity payments for crop losses on insured
crops under the RMA-administered program, excluding replanting or
raisin reconditioning payments; or
(2) Payments from the Non-insured Crop Disaster Assistance Program
for multi-year crop losses, including any 1994 ad hoc disaster payment
of a noninsurable crop.
(b) In order to receive benefits under this subpart, the producer
must have received (a)(1) or (a)(2) in at least 3 of the 5 crop years
running from 1994 through 1998 and only such losses shall be considered
qualifying losses for purposes of paragraph (a) of this section.
(c) For multi-year eligibility based on crop insurance indemnity
payments, RMA will determine the producers that meet the eligibility
requirements along with indemnity amounts and pass the data to FSA.
(d) For NAP multi-year eligibility, FSA will determine eligible
producers. Because the multi-year payments are based on payments
previously received, area loss provisions apply.
(e) For purposes of paragraph (a) of this section, the ``Federal
loss payments'' shall only be those payments which were received for
qualifying losses under the programs identified in paragraphs (a)(1)
and (a)(2) of this section. In addition, benefits under this part will
be permitted only where the qualifying losses were suffered by the
identical producers, as determined under instructions of the Deputy
Administrator. Changes in the organization and control of entities or
production units will be considered to be changes in producers for crop
history purposes. Likewise, in joint ventures, the entity will be
considered to be the producer, not the individual members, and
representational entities, such as a trust, will be considered
different producers than the beneficiaries of the entity, except as
otherwise allowed by the Deputy Administrator. The provisions of this
subsection shall be used for qualifying purposes only for multi-year
benefits and shall not, for qualified recipients, affect other
restrictions that limit the maximum payment amount that may be received
under this program.
Signed at Washington, DC, on April 9, 1999.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 99-9350 Filed 4-12-99; 12:42 pm]
BILLING CODE 3410-05-P
