[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Rules and Regulations]
[Pages 33982-33986]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16578]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1414, 1415, 1416, 1434, 1437, 1439, 1468, 1477, 1479,
and 1489
RIN 0560-AF15
Livestock Indemnity Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule sets forth the terms and conditions of the
Livestock Indemnity Program as authorized by the 1997 Emergency
Supplemental Appropriations Act, which may be made available to
eligible livestock producers for livestock and poultry losses that
occurred as a result of natural disasters that occurred between October
1, 1996, and June 12, 1997, for which a Presidential or Secretarial
disaster was requested by June 12, 1997, and subsequently approved.
This rule also deletes obsolete program regulation as part of the
National Performance Review Initiative to eliminate unnecessary
regulations and improve those that remain in force.
DATES: Effective June 24, 1997. Comments must be received by July 24,
1997 in order to be assured of consideration.
ADDRESSES: Comments should be mailed to Diane Sharp, Director,
Compliance and Production Adjustment Division, Farm Service Agency,
United States Department of Agriculture, STOP 0517, 1400 Independence
Ave. S.W., Washington, D.C. 20013-2415. Telephone (202) 720-7641.
Access this interim rule on the Internet at: www.fsa.usda.gov.
FOR FURTHER INFORMATION CONTACT: Diane Sharp, (202) 720-7641.
SUPPLEMENTARY INFORMATION:
Executive Order 12766
This interim rule is issued in conformance with Executive Order
12866 and has been determined to be significant and has been reviewed
by the Office of Management and Budget.
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 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.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12788. The provisions of this rule preempt State laws to the extent
such laws are inconsistent with the provisions of this rule. The
provisions of this rule are retroactive to October 1, 1996. Before any
judicial action may be brought concerning the 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.
[[Page 33983]]
Small Business Regulatory Enforcement Fairness Act of 1996
Due to the need for immediate action and necessity in providing
payments for losses expeditiously, CCC has determined that, pursuant to
section 808 of the Small Business Regulatory Enforcement Fairness Act
of 1996, it is impracticable, unnecessary and contrary to the public
interest to require this rule to conform to the requirements of section
801 of that Act. Accordingly this rule is effective upon publication.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, CCC will
submit an emergency information collection request (ICR) to OMB for the
approval of the Livestock Indemnity Program reports as necessary for
the proper functioning of the program.
Title: Livestock Indemnity Program.
OMB Control Number: 0560-0029.
Type of Request: Addendum to an existing Information Collection
Package.
Abstract: Persons who suffered livestock or poultry losses
according to this subpart, are required to provide information
regarding their livestock and poultry operation, losses that occurred,
and disposition of those losses. Documents to support their reported
interest in the animals may be required such as receipts for purchase
of the livestock or poultry, feed receipts, loan documents, or any
information that may verify their livestock or poultry possessions
prior to the reported loss. Evidence to support the number of losses
may be required such as rendering receipts, National Guard or FEMA
receipts, or any other evidence that may be available to support the
claim. Also, information regarding the qualifying gross revenues is
required for determining whether the $2,500,000 threshold for gross
income limitation is met. The information collection will be used by
the CCC to approve or determine the eligibility and amount of
assistance in accordance with this subpart. The CCC considers the
information collected to be essential to prudent eligibility and
assistance determinations. Failure to make sound decisions in providing
livestock indemnity program payments would result in large losses to
both the livestock and poultry owners and the Government, and weaken
the agricultural economy in the affected areas.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 2 hours per response.
Respondents: Livestock and Poultry Producers.
Estimated Number of Respondents: 60,000.
Estimated Number of Responses per Respondent: 1.
Estimated Total Annual Burden on Respondents: 120,000 hours.
Proposed topics for comment include: (a) whether the collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of burden including
the validity of the methodology and assumptions used; (c) ways to
enhance the quality, utility and clarity of the information collected;
or (d) ways to minimize the burden of the collection of the information
on those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology. Comments should be
sent to the Desk Officer for Agriculture, Office of Information and
Regulatory Affairs, Office of Management and Budget, Washington, D.C.
20503 and to Diane Sharp, Director, Compliance and Production
Adjustment Division, Farm Service Agency, United States Department of
Agriculture, Stop 0517, 1400 Independence Ave. S.W., Washington, D.C.
20013-2415. Telephone (202) 720-7641.
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 interim rule sets forth the terms and conditions under which
livestock producers who suffered a loss as a result of a natural
disaster may apply for benefits to compensate for this loss. Congress
has mandated the Secretary through the CCC to make available up to $50
million received from the proceeds of the sale of grain held in the
disaster reserve established by the Agricultural Act of 1970, to
implement a livestock indemnity program. This interim final rule is
being added as a new subpart to part 1439, and specifically indicates
how this subpart will incorporate terms and conditions already in this
part.
Producers who seeks benefits under this subpart must file an
application for benefits during the sign-up period as determined by the
Deputy Administrator. As set forth in section 1439.801, benefits are
only available for losses that occurred between October 1, 1996, and
June 12, 1997, and those losses were the result of natural disasters
that occurred between October 1, 1996, and June 12, 1997, for which a
Presidential or Secretarial disaster was requested by June 12, 1997,
and subsequently approved. Only those livestock losses where the death
of the livestock was reasonably related to the disaster which prompted
the disaster declaration qualify for benefits under this subpart. Due
to the fact that losses will have already occurred and ex post facto
verification of the loss is in some instances impossible, the CCC will
use any available information to substantiate the loss and require the
producer to certify the accuracy of the information provided. As with
any government program under which individuals seek compensation from
the government, false certification carries strict penalties, and the
Department will spot-check and validate applications. The CCC through
the Farm Service Agency is charged with carrying out government
programs in a responsible manner and therefore, after applications have
been filed, the county committee will issue a decision on the
applications taking into consideration all of the information available
to them.
Losses to livestock have been extremely large and the amount that
Congress has appropriated is not sufficient to compensate all eligible
producers for 100 percent of the market value of the loss. Animal
categories and market values for the disaster period will be used in
the calculation of national payment rates. Normal mortality rates were
considered for each animal category. If the producer's loss is in
excess of the normal mortality rates for the animal category, as
established by CCC, the benefits will be paid at the national rate
established by CCC for those animal losses in excess of the normal
mortality rate. If the total calculated payments exceed the funding
made available under this program, a uniform national percentage will
be applied so the total outlays will not exceed the amount of funds
made available under this program.
Eligible livestock includes beef and dairy cattle, sheep, goats,
swine, poultry, (including egg-producing poultry), equine animals used
for food or in the production of food and beefalo and buffalo when
maintained on the same basis as beef cattle.
Livestock indemnity benefits will not be paid to persons with
annual gross receipts exceeding $2.5 million. Annual
[[Page 33984]]
gross receipts is defined as the person's gross receipts from farming
and ranching if the person receives more that 50 percent of gross
receipts from farming or ranching, or the total gross receipts from all
sources if the total gross receipts are less that 50 percent from
farming or ranching. Under this program, a maximum $50,000 payment
limitation applies for each person as defined in part 1400 of this
chapter.
List of Subjects
7 CFR Part 1414
Cotton, Feed grains, Price support programs, Reporting and
recordkeeping requirements, Rice, Soil conservation, Water resources,
Wheat.
7 CFR Part 1415
Administrative practice and procedure, Feed grains, Loan programs-
agriculture, price support programs, Reporting and recordkeeping
requirements, Soil conservation, Wheat.
7 CFR Part 1416
Administrative practice and procedure, Feed grains, Loan programs-
agriculture, Price support programs, Reporting and recordkeeping
requirements, Soil conservation, Wheat.
7 CFR Part 1434
Honey, Loan programs-agriculture, Price support programs, Reporting
and recordkeeping requirements, Warehouses.
7 CFR Part 1437
Agricultural commodities, Crop insurance, Disaster assistance,
Fraud, Penalties, Reporting and recordkeeping requirements.
7 CFR Part 1439
Animal feeds, Disaster assistance, Grant programs-agriculture,
Livestock, Reporting and recordkeeping requirements.
7 CFR Part 1468
Mohair, Price support programs, Reporting and recordkeeping
requirements, Wool.
7 CFR Part 1477
Agricultural commodities, Disaster assistance, Fraud, Grant
programs-agriculture, Reporting and recordkeeping requirements.
7 CFR Part 1479
Agricultural commodities, Disaster assistance, Grant programs-
agriculture.
7 CFR Part 1489
Exports, Loan porgrams-agriculture, Price support programs,
Tobacco.
Accordingly, 7 CFR part 1439 is amended as follows:
PART 1439--EMERGENCY LIVESTOCK ASSISTANCE
1. Part 1439 is amended by adding Subpart--Livestock Indemnity
Program (Secs. 1439.800 through 1439.810) to read as follows:
Subpart--Livestock Indemnity Program
Sec.
1439.800 [Reserved].
1439.801 Applicability.
1439.802 Administration.
1439.803 Definitions.
1439.804 Sign-up period.
1439.805 Proof of loss.
1439.806 Indemnity benefits.
1439.807 Availability of funds.
1439.808 Misrepresentation, scheme or device.
1439.809 Limitation on payments and income.
1439.810 Refunds to CCC; joint and several liability.
Authority: Pub. L. 105-18, 111 stat. 158.
Subpart--Livestock Indemnity Program
Sec. 1439.800 [Reserved]
Sec. 1439.801 Applicability.
This subpart sets forth the terms and conditions of the Livestock
Indemnity Program. Benefits shall be provided to eligible livestock
producers only in areas where a disaster occurred between October 1,
1996, and June 12, 1997 (inclusive), for which a Presidential
Designation or Secretarial Declaration was requested for the disaster
by June 12, 1997, and subsequently approved. Producers in counties that
were not designated, but rather were contiguous to declared States and
counties, are not eligible for benefits under this subpart. Benefits
will be provided with respect to eligible livestock where the death
occurred in the disaster areas between October 1, 1996, and June 12,
1997 (inclusive), and where the death of the livestock was reasonably
related to the disaster which prompted the disaster declaration as
determined by the Deputy Administrator or a designee. No payments will
be made under this subpart unless the livestock losses were caused by
the declared disaster and the disaster occurred between October 1,
1996, and June 12, 1997 (inclusive).
Sec. 1439.802 Administration.
(a) The provisions of Secs. 1439.2, 1439.12 , 1439.14, 1439.15 and
1439.18 through 1439.20 are applicable to this subpart.
(b) The provisions of Secs. 1439.1, 1439.4 through 1439.11,
1439.13, 1439.16, and 1439.21 through 1439.24, are not applicable to
this subpart.
(c) The provisions of Sec. 1439.17 (a) through (e) and (h) shall
apply to this subpart and Sec. 1439.17 (f) and (g) shall not apply to
this subpart.
(d) The provisions of Sec. 1439.3 shall apply as set forth in
Sec. 1439.803 of this subpart.
(e) Where extreme circumstances precluded the compliance with
Sec. 1439.804 due to circumstances beyond the applicant's control, the
county or State committee may request that relief be granted by the
Deputy Administrator under this section. Except for statutory
deadlines, the Deputy Administrator may waive or modify deadlines, and
other program requirements in cases where lateness or failure to meet
such other requirements does not adversely affect operation of the
program and where the applicant shows circumstances precluded their
compliance with the deadlines.
Sec. 1439.803 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of administering the Livestock Indemnity Program of this
subpart. The terms defined in section 1439.3 of this title shall also
be applicable, except where those definitions conflict with the
definitions set forth in this subpart. The following terms shall have
the following meanings:
Deputy Administrator means the Deputy Administrator for Farm
Programs, Farm Service Agency (FSA), or a designee.
Eligible livestock means beef and dairy cattle, sheep, goats,
swine, poultry (including egg-producing poultry), equine animals used
for food or in the production of food and buffalo and beefalo when
maintained on the same basis as beef cattle.
Livestock producer means one who possesses a beneficial interest in
eligible livestock as defined in this subpart, have a financial risk in
the eligible livestock; and is a citizen of, or legal resident alien
in, the United States. A farm cooperative, private domestic
corporation, partnership, or joint operation in which a majority
interest is held by members, stockholders, or partners who are citizens
of, or legal resident aliens in, the United States, if such
cooperative, corporation, partnership, or joint operation owns or
jointly owns eligible livestock or poultry will be considered livestock
producers. Any Indian tribe (as defined in section 4(b) of the Indian
Self-Determination and Education Assistance Act and Education
Assistance Act); any Indian organization or entity chartered under
[[Page 33985]]
the Indian Reorganization Act or chartered under the Indian
Reorganization Act; any tribal organization under the Indian Self-
Determination and Education Assistance Act; and any economic enterprise
under the Indian Financing Act of 1974 will be considered livestock
producers.
Sec. 1439.804 Sign-up period.
(a) A request for benefits under this subpart must be submitted to
the Commodity Credit Corporation (CCC) at the Farm Service Agency
county office serving the county where the loss occurred. All requests
for benefits and supporting documentation must be filed in the county
office by July 25, 1997, or such other date as established by CCC.
(b) Data furnished by the applicants will be used to determine
eligibility for program benefits. Furnishing the data is voluntary;
however, without it program benefits will not be provided.
Sec. 1439.805 Proof of loss.
(a) Livestock producers must, in accordance with instructions
issued by the Deputy Administrator, provide adequate proof that the
loss of eligible livestock occurred in the area of Presidential
designation or Secretarial declaration and that the death of the
eligible livestock was reasonably related to the recognized natural
disaster. The documentary evidence of the loss, quantity of the loss
and type of eligible livestock claimed for payment shall be reported to
CCC together with any supporting documentation under paragraph (b) of
this section.
(b) The livestock producer shall provide any available supporting
documents that will assist the county committee in verifying the loss
and the quantity of eligible livestock that perished in the natural
disaster. Examples of the supporting documentation include, but are not
limited to: purchase records, veterinarian receipts, bank loan papers,
rendering truck certificates, Federal Emergency Management Agency and
National Guard records, auction barn receipts, and any other documents
available to confirm the presence of the livestock and the subsequent
losses. Certifications of third parties or the producer and other such
documentation as the county committee determines to be necessary in
order to verify the information provided by the producer may be
submitted, subject to review and approval by the county committee.
Failure to provide documentation that is satisfactory to the county
committee will result in disapproval of the application by the county
committee.
(c) In all circumstances, livestock producers shall certify the
accuracy of the information provided. As provided by various statutes,
providing a false certification to the government is punishable by
imprisonment, fines and other penalties. All information provided is
subject to verification and spot checks by the CCC.
Sec. 1439.806 Indemnity Benefits.
(a) Livestock indemnity payments for losses of eligible livestock
as determined by CCC are authorized to be made to livestock producers
who file an Application for Livestock Indemnity Program, Form CCC-661,
for the specific livestock category in accordance with instructions
issued by the Deputy Administrator, if the:
(1) Livestock producer submits an approved proof of loss according
to Sec. 1439.805; and
(2) County or State committee determines that because of an
eligible disaster condition the livestock producer had a loss in the
specific livestock category in excess of the normal mortality rate
established by CCC, based on the number of animals in the livestock
category that were in the producer's inventory at the time of the
disaster.
(b) If the number of losses in the animal category exceeds the
normal mortality rate established by CCC for such category, the loss of
eligible livestock that shall be used in making a payment shall be the
number of animal losses in the animal category that exceed the normal
mortality threshold established by CCC.
(c) Payments shall be made in an amount determined by multiplying:
the national payment rate for the livestock category as determined by
CCC by the amount specified in (b) of this section. Adjustments shall
apply in accordance with Sec. 1439.807.
(d) Payments which are earned by a person under the livestock
indemnity program may be assigned in accordance with the provisions of
7 CFR part 1404.
Sec. 1439.807 Availability of funds.
(a) A uniform percentage of the estimated calculated payment
amount, as determined by the Deputy Administrator, may be made prior to
establishing the total amount of claims submitted under this subpart
and determining whether a national percentage reduction is necessary to
remain within the appropriation under this subpart.
(b) In the event that the total amount of claims submitted under
this subpart exceeds the appropriation, each payment shall be reduced
by a uniform national percentage. Such payment reductions shall be
applied after the imposition of applicable payment limitation
provisions.
Sec. 1439.808 Misrepresentation, scheme or device.
No benefits under this subpart will be made to a person who is
determined by the State committee or the county committee to have:
(a) Adopted any scheme or other device which tends to defeat the
purpose of this program;
(b) Made any fraudulent representation; or
(c) Misrepresented any fact affecting a program determination.
Sec. 1439.809 Limitations on payments and income.
(a) No person, as determined in accordance with part 1400 of this
chapter may receive benefits under this subpart in excess of $50,000.
Any other benefits obtained under this part will not be included in the
calculation of the $50,000 for the application of this subpart.
(b) No person, as defined in Part 1400 of this chapter, as
applicable, with annual gross receipts in excess of $2.5 million for
the preceding tax year will be eligible for benefits under this
subpart. For the purpose of this determination, annual gross receipts
means with respect to a person who receives more than 50 percent of
such person's gross income from farming and ranching, the total gross
receipts received from such operations; and with respect to a person
who receives 50 percent or less of such person's gross receipts from
farming and ranching, the total gross receipts from all sources.
Sec. 1439.810 Refunds to CCC; joint and several liability.
(a) Section 1439.17 (a) through (e) shall apply to this subpart.
(b) Persons who are a party to the livestock indemnity program
application must refund to CCC any excess payments made by CCC with
respect to such application.
(c) In the event that a benefit under this subpart was established
as the result of erroneous information provided by any person, the
benefit must be repaid with any applicable interest.
PARTS 1414, 1415, 1416, 1434, 1437, 1468, 1477, 1479, AND 1489--
[REMOVED]
2. Parts 1414, 1415, 1416, 1434, 1437, 1468, 1477, 1479, and 1489
are removed.
[[Page 33986]]
Signed at Washington, DC, on June 19, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-16578 Filed 6-20-97; 12:52 pm]
BILLING CODE 3410-05-P
