Comment on FR Doc # 2011-29011

This proposed rule addresses regulations in which counties may qualify for a Secretarial Designation which in turn producers in those counties may qualify for an Emergency Loan. The proposed rule uses a 5 year average yield and uses a 36 month average commodity price as stated in the definition of a Normal Year’s dollar value – Section 759.3. Use of the 5-year average yield and use of the 36 month average commodity price is in conflict with the Emergency Loan making procedure found in FSA Handbook 3-FLP (7 CFR Part 764). 3-FLP requires the use of a 3-year average normal production year (Paragraph 244 B and Exhibit 2) and the use of a market price based upon the average monthly market prices for the previous calendar year (Paragraph 244 C – 7 CFR 764.353(c)) It would appear logical and provide for consistency between the designation process and the loan making process that calculations for determining if a county meets the 30% loss requirement to be eligible for a Secretarial Designation would be the same calculation process used to determine the 30% qualifying loss for a producer within that county to receive an Emergency loan. And that these calculations should be based upon the same year average calculation for both a normal year yield and a unit price. While other USDA and FSA programs may be implemented once a Secretarial Designation is in place, a Secretarial Designation is always required for the Emergency Loan program. Therefore should not the process of calculating the required 30% loss for a Secretarial Designation mirror the same calculation process used in making an EM loan for a producer in that county. The proposed rule should be revised to use a 3 year average yield and to use a 12 month average commodity price in the definition of a Normal Year’s dollar value – Section 759.3