[Title 7 CFR B]
[Code of Federal Regulations (annual edition) - January 1, 1999 Edition]
[Title 7 - AGRICULTURE]
[Subtitle B - Regulations of the Department of Agriculture--(Continued)]
[Chapter Xiv - COMMODITY CREDIT CORPORATION,]
[Subchapter B - LOANS, PURCHASES, AND OTHER OPERATIONS]
[Part 1412 - PRODUCTION FLEXIBILITY CONTRACTS FOR WHEAT, FEED GRAINS, RICE, AND UPLAND COTTON]
[Subpart B - Production Flexibility Contract Terms and Enrollment]
[From the U.S. Government Printing Office]
7AGRICULTURE101999-01-011999-01-01falseProduction Flexibility Contract Terms and EnrollmentBSubpart BAGRICULTURERegulations of the Department of Agriculture--(Continued)COMMODITY CREDIT CORPORATION,LOANS, PURCHASES, AND OTHER OPERATIONSPRODUCTION FLEXIBILITY CONTRACTS FOR WHEAT, FEED GRAINS, RICE, AND UPLAND COTTON
Subpart B--Production Flexibility Contract Terms and Enrollment
Provisions
Sec. 1412.201 Production flexibility contract.
(a) CCC shall offer to enter into a 7-year contract with an eligible
producer on a farm having eligible acreage.
(b) A transfer (or change) in the interest of an owner or producer
subject to a contract in the contract acreage covered by the contract
shall result in the termination of the contract with respect to the
acreage, unless the transferee or owner of the acreage agrees to assume
all obligations under the contract. The termination shall be effective
on the date of the transfer or change.
(c) All producers sharing in the contract payments on a farm whose
payment shares have not been designated for a fiscal year must sign the
contract designating payment shares and provide supporting documentation
as specified in parts 12, 1400, and 1405 of this title no later than
August 1 of the fiscal year to be eligible to earn a contract payment in
that fiscal year. If all producers have not signed the contract by this
deadline, no producers on the contract will be eligible for a payment
for that farm for that fiscal year.
[61 FR 37575, July 18, 1996, as amended at 62 FR 55152, Oct. 23, 1997;
63 FR 31103, June 8, 1998]
Sec. 1412.202 Eligible producers.
Producers eligible to enter into a contract are:
(a) An owner of a farm who assumes all or a part of the risk of
producing a crop;
(b) A producer (other than an owner) on a farm with a share-rent
lease for such farm, regardless of the length of the lease, if the owner
enters into the same contract;
(c) A producer (other than an owner) on an eligible farm who rents
such farm under a lease expiring on or after September 30, 2002, in
which case the owner is not required to enter into the contract;
(d) A producer (other than an owner) on an eligible farm who cash
rents such farm under a lease expiring before September 30, 2002. The
owner of such farm may also enter into the same contract. If the
producer elects to enroll less than 100 percent of the crop acreage
bases in the contract, the consent of the owner is required;
(e) An owner of an eligible farm who cash rents such farm and the
lease term expires before September 30, 2002, if the tenant declines to
enter into a contract. In the case of an owner covered by this
paragraph, contract payments shall not begin under a contract until the
lease held by the tenant ends; and
(f) An owner or producer described in paragraphs (a) through (e)
regardless of whether the owner or producer purchased catastrophic risk
protection in accordance with part 1405 of this chapter.
Sec. 1412.203 Notification of eligible contract acreage.
The owner, and operator and all producers on a farm shall be
notified in writing of the number of acres eligible for enrollment in a
contract.
Sec. 1412.204 Reconstitutions.
Farms shall be reconstituted in accordance with part 718 of this
title.
Sec. 1412.205 Reducing contract acreage.
(a) A permanent reduction of all or a portion of a farm's contract
acreage or eligible contract acreage shall be allowed at the written
request of the
[[Page 313]]
owner to the county committee on Form CCC-505.
(b) If the producers convert contract acreage to a non-agricultural
commercial or industrial use, the contract acreage shall be reduced
accordingly.
Sec. 1412.206 Planting flexibility.
(a) For the 1996 through 2002 crop years, any crop may be planted on
contract acreage on a farm, except as limited elsewhere in this section.
For fiscal year 1998, for each acre a producer plants wild rice on
contract acreage, 1 acre will not be used in determining the contract
payment. Any crop may be planted on cropland in excess of the contract
acreage.
(b) Contract acreage may be hayed or grazed at any time.
(c) Planting fruits and vegetables (except lentils, mung beans, and
dry peas), is prohibited on contract acreage, except:
(1) A producer may double crop fruits or vegetables with a contract
commodity in any region described in paragraph (d) of this section, in
which case contract payments will not be reduced. Double cropping for
purposes of this section means planting for harvest fruits or vegetables
in cycle on the same acres with a contract commodity planted for grain
or lint in a 12 month period under weather conditions normal for the
region and being able to repeat the same cycle in the following 12 month
period;
(2) On a farm that the county committee determines has a history of
planting fruits or vegetables, in which case contract payments shall be
reduced in accordance with paragraph (e) of this section;
(3) By a producer that the county committee determines a history of
fruit or vegetables as the simple average of the sum of a specific fruit
or vegetable planted for harvest by the producer during the years 1991
through 1995, excluding any year in which a fruit or vegetable was not
planted, in which case contract payments shall be reduced in accordance
with paragraph (e); or
(4) On a farm with a 1995 rotation designation crop acreage base
established in accordance with part 1413 of this title as in effect on
January 1, 1996, and the producers on the farm planted fruits or
vegetables as a part of the rotation, in which case there will be no
reduction in contract payments if the acreage of fruits and vegetables
continue to be planted in the same rotation cycle with contract
commodities, the acreage of fruits and vegetables is not increased, and
an annual acreage report is filed for the farm.
(d) For purposes of this part, the following counties have been
determined to be regions having a history of doublecropping contract
commodities with fruits or vegetables. State committees have established
the following counties as regions within their respective States:
Alabama
Baldwin, Barbour, Butler, Chambers, Chilton, Clarke, Covington,
Cullman, Geneva, Greene, Jackson, Jefferson, Lee, Madison, Mobile,
Montgomery, Randolph, Sumter, Talladega, Walker, and Washington.
Alaska
None.
Arkansas
Ashley, Benton, Clay, Conway, Crawford, Cross, Drew, Franklin,
Independence, Jackson, Lawrence, Lee, Lincoln, Little River, Logan,
Miller, Perry, Poinsett, Pope, Prairie, Pulaski, Sebastian, and
Woodruff.
Arizona
Cochise, Graham, Greenlee, LaPaz, Maricopa, Pima, Pinal, and Yuma.
California
Alameda, Amador, Butte, Colusa, Contra Costa, Fresno, Glenn,
Imperial, Kern, Kings, Madera, Merced, Riverside, Sacramento, San
Benito, San Joaquin, Santa Clara, Siskiyou, Solano, Stanislaus, Sutter,
Tehama, Tulare, Yolo, and Yuba.
Caribbean Office
None.
Connecticut
None.
Colorado
None.
Delaware
Kent, New Castle, and Sussex.
Florida
All counties.
[[Page 314]]
Georgia
Appling, Atkinson, Bacon, Baker, Baldwin, Banks, Ben Hill, Berrien,
Bleckley, Brooks, Bryan, Bulloch, Burke, Calhoun, Candler, Catoosa,
Chatham, Clay, Clinch, Coffee, Colquitt, Columbia, Cook, Crisp, Decatur,
Dodge, Dooly, Dougherty, Early, Echols, Effingham, Emanuel, Evans,
Floyd, Forsyth, Franklin, Glascock, Grady, Hart, Houston, Irwin, Jeff
Davis, Jefferson, Jenkins, Johnson, Jones, Lamar, Lanier, Lauren, Lee,
Liberty, Long, Lowndes, McDuffie, Macon, Miller, Mitchell, Monroe,
Montgomery, Morgan, Peach, Pierce, Pike, Pulaski, Putnam, Randolph,
Richmond, Schley, Screven, Seminole, Stephens, Sumter, Tattnall,
Telfair, Terrell, Thomas, Tift, Toombs, Treutlen, Turner, Twiggs, Upson,
Ware, Warren, Washington, Wayne, Webster, Wheeler, Wilcox, Wilkinson,
and Worth.
Hawaii
None (no CAB's).
Idaho
None.
Illinois
Calhoun, Clark, Crawford, Edgar, Effingham, Gallatin, Iroquois,
Kankakee, Lawrence, Madison, Marion, Mason, Monroe, St. Clair, Union,
Vermilion and White.
Indiana
Allen, Bartholemew, Gibson, Hamilton, Knox, LaGrange, Lake, Madison,
Miami, Posey, Sullivan, Vandenberg, and Warrick.
Iowa
Louisa.
Kansas
None.
Kentucky
Clinton and Wayne.
Louisiana
Avoyelles, Franklin, Grant, Rapides, and Morehouse.
Maine
None.
Maryland
Baltimore, Caroline, Carroll, Dorchester, Kent, Queen Annes,
Somerset, Talbot, Wicomico, and Worcester.
Massachusetts
None.
Michigan
None.
Minnesota
None.
Mississippi
Calhoun, Carroll, Covington, Jefferson Davis, Lowndes, Marshall,
Monroe, Montgomery, and Prentiss.
Missouri
Barton, Butler, Cape Girardeau, Dade, Dunklin, Jasper, Lawrence,
Mississippi, New Madrid, Newton, Ripley, Scott, and Stoddard.
Montana
None.
Nebraska
None.
Nevada
Clark.
New Jersey
Burlington, Cumberland, Gloucester, Mercer, Middlesex, Monmouth,
Salem.
New Hampshire
None.
New Mexico
Curry, Dona Ana, Eddy, Hidalgo, Lea, Luna, Quay, Roosevelt, San
Juan, and Sierra.
New York
Orange and Suffolk.
North Carolina
Beaufort, Bladen, Brunswick, Cabarrus, Camden, Carteret, Chowan,
Cleveland, Columbus, Craven, Cumberland, Currituck, Davidson, Davie,
Duplin, Edgecombe, Franklin, Granville, Greene, Harnett, Hertford, Hoke,
Hyde, Johnston, Jones, Lee, Lenoir, Lincoln, Martin, Mecklenburg, Moore,
Nash, New Hanover, Northampton, Onslow, Pamlico, Pasquotank, Pender,
Perquimans, Pitt, Richmond, Robeson, Rockingham, Rutherford, Sampson,
Scotland, Stanly, Stokes, Tyrell, Union, Warren, Washington, Watauga,
Wayne, Wilkes, Wilson, and Yadkin.
North Dakota
None.
Ohio
Auglaize, Brown, Henry, Logan, Morgan, Muskingham, and Wood.
[[Page 315]]
Oklahoma
Adair, Alfalfa, Beckham, Blaine, Bryan, Caddo, Canadian, Carter,
Cherokee, Cotton, Custer, Delaware, Dewey, Ellis, Garfield, Garvin,
Grady, Grant, Greer, Harmon, Haskell, Hughes, Jackson, Jefferson, Kay,
Kingfisher, Kiowa, LeFlore, Logan, McClain, McIntosh, Major, Marshall,
Mayes, Muskogee, Noble, Nowata, Okmulgee, Osage, Pawnee, Payne,
Pittsburg, Pottawatomie, Roger Mills, Rogers, Sequoyah, Stephens,
Tillman, Tulsa, Wagoner, Washita, Woods, and Woodward.
Oregon
Benton, Linn, Morrow, and Umatilla.
Pennsylvania
Adams, Allegheny, Beaver, Bucks, Centre, Chester, Columbia,
Cumberland, Delaware, Franklin, Lancaster, Luzerne, Mifflin, Montgomery,
Montour, Northumberland, Schuylkill, Snyder, Union, Wyoming, and York.
Rhode Island
None.
South Carolina
All counties.
South Dakota
None.
Tennessee
Bledsoe, Cannon, Carroll, Claiborne, Coffee, Crockett, Dyer, Greene,
Hardeman, Haywood, Jefferson, Knox, Lake, Lauderdale, Lincoln, Madison,
Meigs, McMinn, Pickett, Rhea, Robertson, and Union.
Texas
Anderson, Armstrong, Atascosa, Bailey, Baylor, Briscoe, Brooks,
Cameron, Castro, Cherokee, Cochran, Collingsworth, Cottle, Crosby,
Dallam, Dawson, Deaf Smith, Dimmit, Duval, Floyd, Foard, Frio, Gaines,
Hale, Hall, Hartley, Haskell, Hidalgo, Jim Hogg, Jim Wells, Kinney,
Kleberg, Knox, Lamb, Lubbock, Lynn, Maverick, Medina, Moore, Motley,
Nacogdoches, Oldham, Panola, Parmer, Pecos, Randall, Rusk, San Patricio,
Starr, Swisher, Terry, Uvalde, Webb, Wilbarger, Willacy, Yoakum, Zapata,
and Zavala.
Utah
Davis and Weber.
Vermont
None.
Virginia
Accomack, Augusta, Botetourt, Brunswick, Campbell, Charlotte,
Chesapeake, Cumberland, Dinwiddie, Halifax, Hanover, Isle of Wight, King
and Queen, King William, Lunenburg, Mecklenburg, Middlesex, Nelson, New
Kent, Northampton, Nottoway, Page, Pittsylvania, Powhatan, Prince
George, Richmond, Rockbridge, Rockingham, Shenandoah, Southampton,
Stafford, Suffolk, Sussex, Virginia Beach, and Westmoreland.
Washington
Adams, Benton, Clark, Cowlitz, Franklin, Grant, Klickitat, Lewis,
Skagit, and Yakima.
West Virginia
Mason and Putnam.
Wisconsin
Brown, Calumet, Chippewa, Columbia, Dane, Dodge, Dunn, Eau Claire,
Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Kenosha,
Marquette, Racine, Richland, Rock, St. Croix, Sauk, Walworth, Waushara,
and Winnebago.
Wyoming
None.
(e) For each acre a producer plants to fruits or vegetables on
contract acreage under paragraphs (c)(2) or (3) of this section, 1 acre
will not be used in determining the contract payment. The calculation
for this reduction is based on the contract crop with the lowest payment
amount per acre. Reductions will be prorated among all producers based
on each producer's share of the total payment for the farm. Such
producers may adjust the reduction in payments as they agree upon.
(f) Fruits and vegetables include but are not limited to all nuts
except peanuts, certain fruit-bearing trees and: acerola (barbados
cherry), antidesma, apples, apricots, aragula, artichokes, asparagus,
atemoya, (custard apple), avocados, babaco papayas, bananas, beans
(except soybeans, mung, adzuki, faba, and lupin), beets--other than
sugar, blackberries, blackeye peas, blueberries, bok choy,
boysenberries, breadfruit, broccoflower, broccolo-cavalo, broccoli,
brussel sprouts, cabbage, cai lang, caimito, calabaza, carambola (star
fruit), calaboose, carob, carrots, cascadeberries, cauliflower,
celeriac, celery, chayote, cherimoyas (sugar apples), canary melon,
cantaloupes, cardoon, casaba melon, cassava, cherries, chickpeas/
[[Page 316]]
garbanzo beans, chinese bitter melon, chicory, chinese cabbage, chinese
mustard, chinese water chestnuts, chufes, citron, citron melon, coffee,
collards, cowpeas, crabapples, cranberries, cressie greens, crenshaw
melons, cucumbers, currants, cushaw, daikon, dasheen, dates, dry edible
beans, dunga, eggplant, elderberries elut, endive, escarole, etou,
feijoas, figs, gai lien, gailon, galanga, genip, gooseberries,
grapefruit, grapes, guambana, guavas, guy choy, chinese mustard,
honeydew melon, huckleberries, jackfruit, jerusalem artichokes, jicama,
jojoba, kale, kenya, kiwifruit, kohlrabi, kumquats, leeks, lemons,
lettuce, limequats, limes, lobok, loganberries, longon, loquats, lotus
root, lychee (litchi), mandarins, mangos, marionberries, mongosteen, mar
bub, melongene, mesple, mizuna, moqua, mulberries, murcotts, mushrooms,
mustard greens, nectarines, ny Yu, okra, olallieberries, olives, onions,
opo, oranges, papaya, paprika, parsnip, passion fruits, peaches, pears,
peas, all peppers, persimmon, persian melon, pimentos, pineapple,
pistachios, plantain, plumcots, plums, pomegranates, potatoes, prunes,
pummelo, pumpkins, quinces, radiochio, radishes, raisins, raisins
(distilling), rambutan, rape greens, rapini, raspberries, recao,
rhubarb, rutabaga, santa claus melon, salsify, saodilla, sapote, savory,
scallions, shallots, shiso, spinach, squash, strawberries, suk gat,
swiss chard, sweet corn, sweet potatoes, tangelos, tangerines, tangos,
tangors, taniers, taro root, tau chai, teff, tindora, tomatillos,
tomatoes, turnips, turnip greens, watercress, watermelons, white sapote,
and yam.
(g) Fruits or vegetables planted on contract acreage for green
manure, haying, or grazing are not considered as planted to fruits or
vegetables, but producers planting fruits and vegetables for such
purposes shall pay a fee to cover the cost of a farm visit, in
accordance with part 718 of this title, to verify that the crop has not
been harvested.
[61 FR 37575, July 18, 1996; 61 FR 49049, 49050, Sept. 18, 1996, as
amended at 63 FR 31103, June 8, 1998]
Sec. 1412.207 Succession-in-interest to a production flexibility contract.
(a) A person may succeed to the contract if there has been a change
in the operation of a farm, such as:
(1) A sale of land;
(2) A change of operator or producer, including a change in a
partnership that increases or decreases the number of partners; or
(3) A foreclosure, bankruptcy, or involuntary loss of the farm after
enrollment in a production flexibility contract.
(b) A succession in interest to the contract is not permitted if CCC
determines that the change results in a violation of the landlord-tenant
provisions set forth at Sec. 1412.304, or otherwise defeats the purpose
of the program.
(c) If a producer who is entitled to a contract payment dies,
becomes incompetent, or is otherwise unable to receive the contract
payment, the CCC will make the payment in accordance with part 707 of
this title.
(d) A producer or owner must inform the county committee of changes
in interest not later than:
(1) August 1 of the fiscal year in which the change occurs if
producers on the contract acreage remain the same, but payment shares
change; or
(2) August 1 of the fiscal year in which the change occurs, if a new
producer is being added to the contract.
(e) In any case in which payment has previously been made to a
predecessor, such payment shall not be paid to the successor. If the
predecessor refunds an advance contract payment, such producer shall not
be assessed interest in accordance with part 1403 of this chapter.
[61 FR 37575, July 18, 1996; 61 FR 49050, Sept. 18, 1996, as amended at
62 FR 55152, Oct. 23, 1997; 63 FR 31103, June 8, 1998]