95-20782. 1995 Wheat, Feed Grains, Upland and Extra Long Staple Cotton, and Rice Price Support Programs  

  • [Federal Register Volume 60, Number 165 (Friday, August 25, 1995)]
    [Rules and Regulations]
    [Pages 44255-44259]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-20782]
    
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Consolidated Farm Service Agency
    
    7 CFR Part 718
    
    Commodity Credit Corporation
    
    7 CFR Parts 1413, 1414, 1415, and 1416
    
    RIN 0560-AE29
    
    
    1995 Wheat, Feed Grains, Upland and Extra Long Staple Cotton, and 
    Rice Price Support Programs
    
    AGENCIES: Consolidated Farm Service Agency and Commodity Credit 
    Corporation, USDA.
    
    ACTION: Interim rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This interim rule sets forth amendments to: delete references 
    to obsolete provisions; add references relating to current policy; set 
    forth revisions for the Compliance Program, Acreage Reduction Program, 
    (ARP), Options Pilot Program (OPP), and Voluntary Production Limitation 
    Program (VPLP); and improve the operations of these programs for the 
    1995 through 1997 crop years.
    
    DATES: Interim rule effective August 25, 1995. Comments must be 
    received on or before September 25, 1995 in order to be assured of 
    consideration.
    
    ADDRESSES: Submit comments to: Director, Compliance and Production 
    Adjustment Division, Consolidated Farm Service Agency (CFSA), United 
    States Department of Agriculture (USDA), PO Box 2415, Washington, DC 
    20013-2415. Comments may be inspected at USDA, CFSA, 14th and 
    Independence Avenue, South Agriculture Building, room 3640, Washington, 
    DC 20013-2415 between 7:30 a.m. and 4:30 p.m., Monday through Friday, 
    except holidays.
    
    FOR FURTHER INFORMATION CONTACT: Jack Welch, Chief, Production 
    Adjustment Branch, Cotton, Grain, and Rice Division, CFSA, USDA, PO Box 
    2415, Washington, DC 20013-2415, telephone 202-720-9884.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This rule has been determined to be not significant for purposes of 
    Executive Order 12866 and therefore has not been reviewed by the Office 
    of Management and Budget (OMB).
    
    Federal Assistance Programs
    
        The titles and numbers of the Federal Assistance Programs, as found 
    in the Catalog of Federal Domestic Assistance, to which this interim 
    rule applies are Cotton Production Stabilization--10.052; Feed Grain 
    Production Stabilization--10.055; Wheat Production Stabilization--
    10.058; and Rice Production Stabilization--10.065.
    
    Regulatory Flexibility Act
    
        It has been determined that the Regulatory Flexibility Act is not 
    applicable to this interim rule since neither CFSA nor the Commodity 
    Credit Corporation (CCC) is required by 5 U.S.C. 553 or any other 
    provision of the 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 12778
    
        This interim rule has been reviewed in accordance with Executive 
    Order 12778. The provisions of this final rule preempt State laws to 
    the extent such laws are inconsistent with the provisions of this rule. 
    The provisions of this rule are not retroactive. Before any judicial 
    action may be brought concerning the provisions of this rule, the 
    administrative remedies at 7 CFR part 780 must be exhausted.
    
    Executive Order 12372
    
        This program/activity is not subject to the provisions of Executive 
    Order 12372, which requires intergovernmental consultation with State 
    and local officials. See the Notice related to 7 CFR part 3015, subpart 
    V, published at 48 FR 29115 (June 24, 1983).
    
    Paperwork Reduction Act
    
        This interim rule amends the existing information collections as 
    approved by OMB pursuant to the Paperwork Reduction Act of 1980 (44 
    U.S.C. 3501 et seq.), under OMB control numbers 0560-0004 and 0560-
    0092. These revised collections have been submitted to OMB for 
    clearance.
    
    Background
    
        This interim rule:
        (1) Sets forth policy changes for acreage measurement and 
    tolerance;
        (2) Revises the eligibility provisions in the regulations for 
    enrolling in an ARP to include the requirement for purchasing 
    catastrophic crop insurance;
        (3) Revises the number of States and counties eligible to 
    participate in the OPP; and
        (4) Makes minor editorial changes.
    
    Discussion of Changes
    
    A. 7 CFR part 718, Determination of Acreage and Compliance
    
    Section 718.3  Definitions
    
        This section has been amended to delete the reference to 
    administrative variance (AV) applying only to marketing quota crops.
    
    Section 718.21  Measurement Services
    
        This section has been amended to provide that when a measurement 
    service reveals acreage in excess of the permitted acreage plus 
    available flex acreage with respect to other program crops enrolled in 
    that crop's production adjustment program for that year, in order to 
    keep the measurement service guarantee, the producer must: (1) Destroy 
    the excess acreage and pay for an authorized employee of CFSA to verify 
    destruction; or (2) pay for measurement service for an authorized 
    employee of CFSA to verify destruction of an acreage of another crop on 
    the farm that is enrolled in a production adjustment program equal to 
    the excess acreage.
    
    Section 718.22  Acreage Reports
    
        This section has been amended to delete the reference that provided 
    
    
    [[Page 44256]]
    acreage reports were not required for burley tobacco.
    
    Section 718.40  Tolerance and Variance Rules Applicability
    
        This section has been amended to provide that administrative 
    variance is applicable to all marketing quota crop acreages. Marketing 
    quota crop acreages as determined in accordance with this part shall be 
    deemed in compliance with the effective farm allotment or program 
    requirement when determined acreage does not exceed the effective farm 
    allotment by more than an administrative variance determined as 
    follows:
        (1) For all kinds of tobacco subject to marketing quotas, except 
    dark air-cured and fire-cured the larger of 0.1 acre or 2 percent of 
    the allotment.
        (2) For dark air-cured and fire-cured tobacco, an acreage based on 
    the effective acreage allotment.
    
    B. 7 CFR Part 1413, Feed Grain, Rice, Upland and Extra Long Staple 
    Cotton, Wheat, and Related Programs
    
    Section 1413.8  Definitions
    
        This section has been revised to amend the definition of Industrial 
    and other Crops (IOC's) to add millet.
    
    Section 1413.26  Adjusting Crop Acreage Bases (CAB's)
    
        This section has been revised to provide that an operator or 
    owner's request for a one-time forfeiture of all or part of a crop's 
    CAB shall be allowed at any time before the end of the signup period. 
    The operator or owner shall specify whether the reduction is for the 
    current or subsequent crop year.
    
    Section 1413.43  Planting Flexibility
    
        This section has been amended to provide that if spring and fall 
    program crops are double cropped, eligible flex or idle acreage must be 
    present on the farm during the appropriate fall or spring flex dates 
    established by the State CFSA committee.
    
    Section 1413.50  Requirements for Program Participation
    
        This section has been revised to provide that to be eligible to 
    participate in an ARP, a producer must purchase at least the minimum 
    catastrophic level of crop insurance for each crop of economic 
    significance grown on each farm in the county in which the producer has 
    an interest, if such insurance is available in the county for the crop, 
    in accordance with part 400 of this chapter.
    
    Section 1413.54  Acreage Reduction Program Provisions
    
        This section has been amended, for 1995 only, to allow producers to 
    plant millet as one of the IOC's permitted on acreage designated as 
    acreage conservation reserve (ACR) or conserving use (CU) for payment.
    
    Section 1413.61  Eligible Land for ACR and CU for Payment Designation
    
        This section has been revised to provide that the Deputy 
    Administrator, Farm Programs, may grant an exception to the minimum 
    size and width requirements to allow producers to designate small areas 
    of at least .1 (one-tenth) of an acre as ACR or CU for payment if the 
    farm has been affected by excessive rainfall or flooding and if all 
    other eligibility requirements are met.
    
    Section 1413.64  Nationally Approved Cover Crops and Practices for ACR 
    and CU for Payment Acreages
    
        This section has been revised to remove the exclusion of popcorn as 
    an approved cover crop. Popcorn is an eligible cover crop on ACR and CU 
    for payment. The section has also been revised to remove the program 
    year designation for IOC's planted on ACR.
    
    Section 1413.65  Locally Approved Cover Crops and Practices for ACR and 
    CU for Payment
    
        This section has been amended to change the specified year for the 
    programs.
    
    C. 7 CFR Part 1414--Integrated Farm Management Program Option
    
    Section 1414.27  Resource-Conserving Crops on ACR
    
        This section has been amended to remove the provision that barley, 
    oats, and wheat may not be hayed or grazed after the small grain is 
    harvested from the acreage.
    
    Section 1414.30  Traditionally Underplanted Acreage and Reduction of 
    Payment Acres
    
        This section has been amended to provide that traditionally 
    underplanted acreage means 8 through 15 percent, as applicable, of the 
    producer's permitted acreage for such year.
    
    D. 7 CFR Part 1415, Options Pilot Program
    
    Section 1415.9  Definitions
    
        The definition of ``agreement'' has been revised to delete the 
    year.
    
    Section 1415.13  Eligibility
    
        This section has been revised to change the program year; to add 
    another county each in Kansas and North Dakota; to add three counties 
    for corn and soft red winter wheat in Ohio, and to add three counties 
    for corn, soybeans, and hard red winter wheat in Nebraska.
    
    Section 1415.15  Agreements
    
        This section has been amended to revise the year for purchasing 
    target price and loan rate put option contracts.
    
    Section 1415.20  Premium and Incentive Payments
    
        This section has been amended to revise the year in reference to 
    the acreage reduction program.
    
    E. 7 CFR Part 1416, Voluntary Production Limitation Program
    
    Section 1416.100  Eligible VPLP Counties
        This section has been amended to change the effective year for 
    VPLP.
    
    Section 1416.101  Basic Program Provisions
    
        This section has been amended to:
        (i) Revise the reference to the signup period for the ARP for 
    enrollment into VPLP, and
        (ii) Require that producers must purchase at least the minimum 
    catastrophic level of crop insurance for crops grown in the county in 
    order to participate in VPLP, according to part 400 of this chapter.
    
    Section 1416.103  Production Evidence for Actual Yields
    
        This section has been amended to provide that producers with an 
    interest in enrolled crops on more than one farm shall certify the 
    production from any farm not enrolled in VPLP and may be subject to a 
    spot check for such certifications.
    
    Section 1416.400  Program Payments and Price Support Loans and Loan 
    Deficiency Payments
    
        This section has been amended to provide that producers of enrolled 
    CAB's shall be eligible to earn deficiency payments on the lesser of 
    the planted acres or the maximum payment acreage of such CAB's 
    including CAB's planted to an enrolled wheat or feed grain crop 
    different from the crop to which the CAB is assigned.
    
    List of Subjects
    
    7 CFR part 718
    
        Acreage allotments, Marketing quotas, Reporting and recordkeeping 
    requirements.
    
    7 CFR parts 1413 and 1414
    
        Acreage allotments, Cotton, Disaster assistance, Feed grains, Price 
    support 
    
    [[Page 44257]]
    programs, Reporting and recordkeeping requirements, Rice, Soil 
    conservation, wheat.
    
    7 CFR part 1415
    
        Options pilot program.
    
    7 CFR Part 1416
    
        Voluntary production limitation program.
    
        Accordingly, chapters VII and XIV of the Code of Federal 
    Regulations are amended as follows:
    
    PART 718--DETERMINATION OF ACREAGE AND COMPLIANCE
    
        1. The authority citation for 7 CFR part 718 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1373 and 1374; 15 U.S.C. 714b and 714c.
    
        2. Section 718.3(b) is amended by revising the definition of 
    administrative variance to read as follows:
    
    
    Sec. 718.3  Definitions.
    
    * * * * *
        (b) * * *
    * * * * *
        Administrative variance (AV). The amount by which the determined 
    acreage may exceed the effective allotment and be considered in 
    compliance with program regulations.
    * * * * *
        3. Section 718.21 is amended by revising paragraph (e) to read as 
    follows:
    
    
    Sec. 718.21  Measurement Services.
    
    * * * * *
        (e) When a measurement service reveals acreage in excess of the 
    permitted acreage plus available flex acreage with respect to other 
    program crops enrolled in that crop's production adjustment program for 
    that year by more than the allowable tolerance, the producer must do 
    either of the following in order to keep the measurement service 
    guarantee:
    
    
    Sec. 718.22  [Amended]
    
        4. Section 718.22 is amended by removing paragraph (d) and 
    redesignating paragraphs (e), (f), and (g) as paragraphs (d), (e), and 
    (f).
        5. Section 718.40 is amended by removing paragraphs (a)(1), (b)(3), 
    and (c)(1), redesignating paragraphs (a)(2) as (a)(1), (b)(4) as 
    (b)(3), respectively, and revising paragraph (c) introductory text, 
    (c)(1) and (c)(2), introductory text, to read as follows:
    
    
    Sec. 718.40  Tolerance and variance rules applicability.
    
        (a) * * *
        (b) * * *
        (c) Administrative variance is applicable to all marketing quota 
    crop acreages. Marketing quota crop acreages as determined in 
    accordance with this part shall be deemed in compliance with the 
    effective farm allotment or program requirement when determined acreage 
    does not exceed the effective farm allotment by more than an 
    administrative variance determined as follows:
        (1) For all kinds of tobacco subject to marketing quotas, except 
    dark air-cured and fire-cured the larger of 0.1 acre or 2 percent of 
    the allotment.
        (2) For dark air-cured and fire-cured tobacco, an acreage based on 
    the effective acreage allotment as provided in the table as follows:
    * * * * *
    
    PART 1413--FEED GRAIN, RICE, UPLAND AND EXTRA LONG STAPLE COTTON, 
    WHEAT AND RELATED PROGRAMS
    
        6. The authority citation for part 1413 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1308, 1308a, 1309, 1441-2, 1444-2, 1444f, 
    1445b-3a, 1461-1469; 15 U.S.C. 714b and 714c.
    
        7. Section 1413.8 is amended by revising the definition of 
    industrial and other crops to read as follows:
    
    
    Sec. 1413.8  Definitions.
    
    * * * * *
        Industrial and other crops (IOC's) are: castor beans, chia, crambe, 
    crotalaria, cuphea, guar, guayule, hesperaloe, kenaf, lesquerella, 
    meadowfoam, milkweed, millet, plantago ovato, and sesame, or other 
    crops as designated by the Secretary. Individual State CFSA committees 
    may remove individual crops of IOC's from the list permitted in such 
    State.
    * * * * *
        8. Section 1413.26 is amended by revising paragraph (a)(1) to read 
    as follows:
    
    
    Sec. 1413.26  Adjusting CAB's.
    
        (a)(1) A one-time forfeiture of all or a portion of a farm's CAB 
    shall be allowed at the request of the owner and operator if the 
    request for the permanent base reduction is filed not later than the 
    end of the ARP signup period. Producers requesting such forfeiture 
    shall designate whether the reduction shall apply for the current year 
    or the subsequent year.
    * * * * *
        9. Section 1413.43 is amended by revising subparagraph (h)(1) to 
    read as follows:
    
    
    Sec. 1413.43  Planting flexibility.
    
    * * * * *
        (h)(1) Acreages that are flexed according to this section may be 
    double cropped in accordance with Sec. 1413.24(e). State committees 
    will establish beginning and ending flex dates for spring and fall 
    program crops. If such acreages are double cropped, eligible flex 
    acreage or idle acreage must be present on the farm during the 
    appropriate fall or spring flex dates established by the State 
    committee.
    * * * * *
        10. In Sec. 1413.50 paragraphs (a) through (c) are redesignated as 
    paragraphs (b) through (d), and a new paragraph (a) is added to read as 
    follows:
    
    
    Sec. 1413.50  Requirements for program participation.
    
        (a) With respect to a crop for which an ARP is announced, to be 
    eligible for deficiency payments and price support loans and purchases, 
    a producer, in accordance with part 400 of this chapter, must obtain at 
    least the minimum catastrophic level of insurance for each crop of 
    economic significance grown on each farm in the county in which the 
    producer has an interest, if such insurance is available in the county 
    for the crop.
    * * * * *
        11. Section 1413.54 is amended by revising paragraphs (c)(1) and 
    (4) to read as follows:
    
    
    Sec. 1413.54  Acreage Reduction Program provisions.
    
    * * * * *
        (c)(1) (i) Acreage designated as ACR under the 1991, 1992, and 1993 
    wheat, feed grain, upland cotton, and rice programs may not be devoted 
    to other program crops and must be devoted to approved uses as 
    otherwise provided in this part.
        (ii) Acreage designated as ACR under the 1991, 1992, and 1993 
    wheat, feed grain, upland cotton, and rice programs may not be devoted 
    to industrial and experimental crops.
        (iii) Acreage designated as ACR under the 1994 wheat, feed grain, 
    upland cotton, and rice programs may be devoted to castor beans, chia, 
    crambe, crotalaria, cuphea, guar, guayule, hesperaloe, Kenaf, 
    lesquerella, meadowfoam, milkweed, plantago ovato, and sesame.
        (iv) Acreage designated as ACR under the 1995 wheat, feed grain, 
    upland cotton, and rice programs may be devoted to castor beans, chia, 
    crambe, crotalaria, cuphea, guar, guayule, hesperaloe, kenaf, 
    lesquerella, meadowfoam, milkweed, millet, plantago avato, and sesame. 
    The State CFSA committee may, prior to signup, 
    
    [[Page 44258]]
    remove individual crops from the list permitted in their State.
    * * * * *
        (4) (i) Acreage designated as CU for payment acreage under the ``0/
    92'' and ``50/92'' provisions of the 1992 and 1993 wheat, feed grain, 
    upland cotton, and rice programs as provided in Secs. 1413.41 and 
    1413.42 may not be planted to industrial, experimental, or other crops 
    except as provided in paragraph (c)(2) of this section.
        (ii) Acreage designated as CU for payment acreage under the ``0/
    85'' and ``50/85'' provisions of the 1994 wheat, feed grain, upland 
    cotton, and rice programs as provided in Secs. 1413.41 and 1413.42 may 
    plant castor beans, chia, crotalaria, cuphea, guar, guayule, 
    hesperaloe, kenaf, lesquerella, meadowfoam, milkweed, plantago ovato, 
    and other crops as provided in paragraph (c)(2) of this section.
        (iii) Acreage designated as CU for payment under the ``0/85'' and 
    ``50/85'' provisions of the 1995 wheat, feed grain, upland cotton, and 
    rice programs as provided in Secs. 1413.41 and 1413.42 may plant castor 
    beans, chia, crotalaria, cuphea, guar, guayule, hesperaloe, kenaf, 
    lesquerella, meadowfoam, milkweed, millet, plantago ovato, and other 
    crops as provided in paragraph (c)(2) of this section. The State CFSA 
    committee may, prior to program signup, remove individual crops from 
    the list permitted in their State.
    * * * * *
        12. Section 1413.61 is amended by adding a new paragraph (a)(5) to 
    read as follows:
    
    
    Sec. 1413.61  Eligible land for ACR and CU for payment designation.
    
        (a) * * *
        (5) Because of excessive rainfall and flooding, the Deputy 
    Administrator, Farm Programs, may authorize an exception to the minimum 
    size and width provisions as provided in paragraph (b)(1)(i) of this 
    section, if such exception is requested by the CFSA State executive 
    director. If an exception is authorized, producers may designate as ACR 
    or CU for payment small areas of at least .1 (one-tenth) an acre in 
    size, if all other eligibility requirements are met, and because of 
    excessive rainfall and flooding, either of the following applies:
        (i) Such producers have an approved ASCS-574, Application for 
    Disaster Credit, on file in the county CFSA office, for prevented 
    planting or failed acreage of the crop; or
        (ii) The county committee determines, on a farm-by-farm basis, that 
    the producers on the farm were forced to change planting patterns.
    * * * * *
        13. Section 1413.64 is amended by revising paragraphs (a), 
    introductory text, (a)(1) and (d) to read as follows:
    
    
    Sec. 1413.64  Nationally approved cover crops and practices for ACR and 
    CU for payment acreages.
    
        (a) All ACR acreage that is required to have a cover crop 
    established must have a nationally approved cover practice installed. 
    The following are nationally approved cover crops and practices for ACR 
    and CU for payment acreage:
        (1) Annual, biennial, or perennial grasses and legumes, including 
    sweet sorghums, sorghum grass crosses, and sudans, excluding soybeans, 
    corn, sweet corn, grain sorghum, cotton, fruits, and vegetables.
    * * * * *
        (d) Acreage designated as ACR or CU for payment under the 1995 
    wheat, feed grain, upland cotton, and rice programs may be planted to 
    IOC's.
        14. Section 1413.65 is amended by revising the introductory text of 
    paragraph (g) to read as follows:
    
    
    Sec. 1413.65  Locally approved cover crops and practices for ACR and CU 
    for payment acreages.
    
    * * * * *
        (g) With respect to upland cotton CAB's enrolled in any of the 1995 
    through 1997 ARP's, the production of black-eyed peas shall be allowed 
    on up to 50 percent of the required ACR and CU for payment acreage, 
    subject to the following restrictions:
    * * * * *
    
    PART 1414--INTEGRATED FARM MANAGEMENT PROGRAM OPTION
    
        15. The authority citation for Part 1414 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 5822.
    
        16. Section 1414.28(a) is revised to read as follows:
    
    
    Sec. 1414.28  Resource-Conserving Crops on payment acres.
    
        (a) Program payments with respect to acreage enrolled in the 
    program shall not be paid to a producer if such producer hays or grazes 
    such acreage (excluding acreage designated as ACR) during the 5-month 
    period in which haying and grazing of conserving use acres is not 
    allowed under the provisions of Sec. 1413.66 of this chapter, unless 
    the crop planted on such acreage includes a small grain and the 
    producer harvests the small grain crop in kernel form.
    * * * * *
        17. Section 1414.30(b)(1)(i)(C) is revised to read as follows:
    
    
    Sec. 1414.30  Traditionally underplanted acreage and reduction of 
    payment acres.
    
    * * * * *
        (b)(1)(i) * * *
        (C) For participating crops, the part of the CAB subject to the 
    required ACR. If the producer is using the provisions set forth in 
    Secs. 1413.41 or 1413.42 of this chapter, traditionally underplanted 
    acreage means 8 through 15 percent, as applicable, of the producer's 
    permitted acreage for such year.
    * * * * *
    
    PART 1415--OPTIONS PILOT PROGRAM
    
        18. The authority citation for Part 1415 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1421 note; 15 U.S.C. 714b and 714c.
    
        19. Section 1415.9 is amended to revise the definitions of 
    ``Agreement'' and ``Program'' to read as follows:
    Sec. 1415.9  Definitions.
    
    * * * * *
        Agreement means form CCC-300, Options Program Agreement.
    * * * * *
        Program means the Options Pilot Program.
    * * * * *
        20. Section 1415.13 is amended by revising paragraph (a)(1) (i) 
    through (iii) and by adding (a)(1)(iv) and (a)(1)(v) to read as 
    follows:
    
    
    Sec. 1415.13  Eligibility.
    
        (a)(1) * * *
        (i) 1995 corn and soybeans in Champaign, Logan, and Shelby Counties 
    in Illinois, and Buffalo, Hamilton, and Nemaha counties in Nebraska;
        (ii) 1995 corn in Carroll, Clinton, and Tippecanoe Counties in 
    Illinois, Boone, Grundy, and Hardin Counties in Iowa, and Auglaize, 
    Darke, and Wood Counties in Ohio.
        (iii) 1995 hard red winter wheat in Ford, Sumner, and Thomas 
    Counties in Kansas, and Buffalo, Hamilton, and Nemaha Counties in 
    Nebraska,
        (iv) 1995 hard red spring wheat in Barnes, Cass, and Grand Forks 
    Counties in North Dakota, and
        (v) 1995 soft red winter wheat in Auglaize, Darke, and Wood 
    counties in Ohio.
    * * * * *
        21. Section 1415.15 is amended by revising paragraphs (b)(1)(ii), 
    (2)(i) through (2)(v), (e), the first sentence of paragraph (f) and 
    paragraph (h) to read as follows:
    
    [[Page 44259]]
    
    
    
    Sec. 1415.15  Agreements.
    
    * * * * *
        (b) * * *
        (1) (i) * * *
        (ii) For the target price equivalent strike price level for corn, 
    purchase at least one December 1995 CBOT put option on or before June 
    15, 1995; for wheat in Kansas and Nebraska, purchase at least one 
    September 1995 KCBOT put option on or before May 15, 1995; for wheat in 
    North Dakota, purchase at least one September 1995, MGE put option on 
    or before May 15, 1995; and for wheat in Ohio, purchase at least one 
    September 1995 CBOT put option on or before May 15, 1995. * * *
        (2) (i) For price support participation, purchase at least one 
    March 1996 CBOT put option at a strike price equivalent to the county 
    price support price for corn;
        (ii) For soybeans, purchase at least one March 1996 CBOT put option 
    contract at a strike price equivalent to the county soybean price 
    support price;
        (iii) For wheat producers in Kansas and Nebraska, purchase at least 
    one December 1995 KCBOT put option at a strike price equivalent to the 
    county price support price for wheat;
        (iv) For wheat producers in North Dakota, purchase at least one 
    December 1995 MGE put option at a strike price equivalent to the county 
    price support price for wheat;
        (v) For wheat producers in Ohio, purchase at least one December 
    1995 CBOT put option at a strike price equivalent to the county price 
    support price for wheat;
    * * * * *
        (e) A producer must have a corn or wheat, respectively, crop 
    acreage base in order to participate in the program at the target price 
    strike price level for corn or wheat. However, a producer planting corn 
    on a farm with a grain sorghum crop acreage base, who reports that such 
    acreage is corn for purposes of participating in the acreage reduction 
    program for grain sorghum, may participate in the Options Program at 
    the price support strike price level for corn.
        (f) With respect to each producer, the maximum quantity eligible 
    for target price put options is limited to the quantity determined by 
    multiplying the participant's production adjustment payment acreage 
    times the crop payment yield. * * *
        (g) * * *
        (h) If a producer enrolled in the program is not in compliance with 
    the provisions of the production adjustment program for wheat or corn, 
    as applicable, the producer will be required to repay any premiums and 
    incentive payments made, in addition to any interest determined in 
    accordance with the provisions of such program agreement.
        22. Section 1415.20 is amended by revising paragraphs (f) and (g) 
    to read as follows:
    
    
    1415.20  Premium and incentive payments.
    
    * * * * *
        (f) CCC will collect the excess premium issued at the time the 
    actual payment acreage is reported by the producer, and no incentive 
    payment will be issued with respect to the overstated acreage if, for 
    target price participation, the acreage enrolled in the production 
    adjustment program which is used in determining deficiency payments is 
    less than the intended payment acreage specified in the agreement. 
    However, the producer will be allowed to keep the put option with 
    respect to the additional bushels.
        (g) The producer will not be allowed to increase the quantity of 
    the commodity enrolled in the program if, for target price 
    participation, the acreage enrolled in the production adjustment 
    program, which is used in determining deficiency payments, is more than 
    the intended payment acreage specified in the agreement.
    * * * * *
    
    PART 1416--VOLUNTARY PRODUCTION LIMITATION PROGRAM
    
        23. The authority citation for Part 1416 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1444f, 1445b-3a, 15 U.S.C. 714b and 714c.
    
        24. Section 1416.100(a) is amended by revising the introductory 
    text to read as follows:
    
    
    Sec. 1416.100  Eligible VPLP Counties.
    
        (a) The VPLP shall be effective for the 1995 crops of wheat and 
    feed grains in:
    * * * * *
        25. Section 1416.101 is amended by revising paragraph (a) to read 
    as follows:
    
    
    Sec. 1416.101  Basic program provisions.
    
        (a)(1) The enrollment period for this program will coincide with 
    the period established for the Acreage Reduction Program (ARP) signup, 
    which will be January 30 through May 31, 1995.
        (2) In order to participate in VPLP, a producer must purchase at 
    least the minimum catastrophic level of crop insurance, according to 
    part 400 of this chapter, for each crop of economic significance grown 
    on each farm in the county in which the producer has an interest, if 
    such insurance is available in the county for the crop.
    * * * * *
        26. Section 1416.103 is amended by revising paragraphs (b) and (e) 
    to read as follows:
    
    Sec. 1416.103  Production evidence for actual yields.
    
    * * * * *
    
        (b) Producers with an interest in enrolled crops on more than one 
    farm shall certify the production from any farm not enrolled in VPLP 
    and may be subject to a spotcheck for such certifications. * * *
    
        (e) (1) Documents showing the amount of production shall be 
    reviewed to determine moisture content and dockage associated with the 
    production. If the document does not show that the production has been 
    reduced to standard moisture levels and shows:
    
        (i) Specific moisture that is greater than standard;
    
        (ii) Dockage; or
    
        (iii) Both excess moisture and dockage, the net amount shall be 
    adjusted on standard moisture levels and applicable dockage standards 
    as determined by CCC.
    
        (2) [Reserved]
    
    * * * * *
    
        27. Section 1416.400 is amended by revising paragraph (b) to read 
    as follows:
    
    Sec. 1416.400  Program payments and price support loans and loan 
    deficiency payments.
    
    * * * * *
    
        (b) Producers of enrolled CAB's shall be eligible to earn 
    deficiency payments on the number of acres planted to such CAB's or the 
    maximum payment acres for the CAB's including CAB's planted to an 
    enrolled wheat or feed grain crop different from the CAB assigned to 
    the crop.
    
        Signed at Washington, DC, on August 16, 1995.
    
    Bruce R. Weber,
    
    Acting Administrator, Consolidated Farm Service Agency and Acting 
    Executive Vice President, Commodity Credit Corporation.
    
    [FR Doc. 95-20782 Filed 8-24-95; 8:45 am]
    
    BILLING CODE 3410-05-P
    
    

Document Information

Effective Date:
8/25/1995
Published:
08/25/1995
Department:
Commodity Credit Corporation
Entry Type:
Rule
Action:
Interim rule.
Document Number:
95-20782
Dates:
Interim rule effective August 25, 1995. Comments must be received on or before September 25, 1995 in order to be assured of consideration.
Pages:
44255-44259 (5 pages)
RINs:
0560-AE29
PDF File:
95-20782.pdf
CFR: (21)
7 CFR 1416.103
7 CFR 1416.400
7 CFR 718.3
7 CFR 718.21
7 CFR 718.22
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