[Federal Register Volume 59, Number 127 (Tuesday, July 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16111]


  Federal Register / Vol. 59, No. 127 / Tuesday, July 5, 1994 /
  
[[Page Unknown]]

[Federal Register: July 5, 1994]


                                                   VOL. 59, NO. 127

                                              Tuesday, July 5, 1994

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1421

RIN 0560-AD74

 

General Price Support Regulations for Grain, Rice, and Oilseeds 
for 1993 and Subsequent Crop Years

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This interim rule amends the regulations with respect to the 
price support loan programs for grains and similarly handled 
commodities, including oilseeds (canola, mustard seed, rapeseed, 
safflower seed, soybeans, and sunflower seed), which are conducted by 
the Commodity Credit Corporation (CCC) in accordance with the 
Agricultural Act of 1949, as amended (the 1949 Act), and other acts. 
The amendments made by this interim rule will provide greater clarity, 
enhance the administration of CCC programs by providing uniformity 
between CCC price support programs, eliminate obsolete provisions, 
provide more authority to State and county committees in administering 
the programs, lessen the administrative actions CCC imposes on 
producers who violate the loan and loan deficiency payment (LDP) 
agreements, and correct errors.

DATES: Interim rule effective July 5, 1994. Comments must be received 
on or before August 4, 1994, in order to be assured of consideration.

ADDRESSES: Submit comments to Director, Cotton, Grain, and Rice Price 
Support Division, Agricultural Stabilization and Conservation Service, 
United States Department of Agriculture (USDA), PO Box 2415, 
Washington, DC 20013-2415; telephone 202-720-7641. Comments received 
may be inspected between 9 a.m. and 4:30 p.m., Monday through Friday, 
except holidays, in room 3623, South Agriculture Building, USDA, 14th 
Street and Independence Avenue, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Margaret Wright, Program Specialist, 
Cotton, Grain, and Rice Price Support Division, Agricultural 
Stabilization and Conservation Service, USDA, PO Box 2415, Washington, 
DC 20013-2415; telephone 202-720-8481.

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 OMB.

Federal Assistance Program

    The title and number of the Federal Assistance Program, as found in 
the Catalog of Federal Domestic Assistance, to which this rule applies 
are Commodity Loans and Purchases--10.051.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable because the CCC is 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 these determinations.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of human 
environment.

Executive Order 12372

    This program 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).

Executive Order 12778

    This interim rule has been reviewed pursuant to Executive Order 
12778. To the extent State and local laws are in conflict with these 
regulatory provisions, it is the intent of CCC that the terms of the 
regulations prevail. The provisions of this interim rule are not 
retroactive. Prior to any judicial action in a court of competent 
jurisdiction, administrative review under 7 CFR part 780 must be 
exhausted.

Paperwork Reduction Act

    Public reporting burden for the information collections contained 
in this regulation with respect to price support programs is estimated 
to average 15 minutes per response, including the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collections of information. The information collections have previously 
been cleared under the current regulations by the Office of Management 
and Budget (OMB), and assigned OMB Nos. 0560-0087 and 0560-0129. In 
accordance with the provisions of 44 U.S.C. 35, the information 
collection requirements that are revised as a result of this rule will 
be resubmitted to OMB for review.

Comments

    Since producers are currently making decisions regarding 
commodities which may be pledged as collateral for CCC price support 
loans, the provisions of this interim rule are effective upon 
publication in the Federal Register. Comments are requested, however, 
and will be taken into consideration when developing the final rule. 
This interim rule will be scheduled for review so that a final document 
discussing comments received and any amendments required can be 
published in the Federal Register as soon as possible.

Background

    The 1949 Act sets forth the statutory authority for CCC price 
support programs. CCC price support programs are intended to stabilize 
market prices and provide interim financing to producers to assist in 
the orderly marketing of eligible commodities.
    This interim rule amends regulations found at 7 CFR part 1421 to 
provide rules for administering CCC price support programs for the 1993 
and subsequent crop years.
    Section 1421.1 is amended to remove the reference to soybeans. 
Soybeans are already included because they are defined as an oilseed in 
Sec. 1421.3.
    Section 1421.3 is amended to: (a) Add the reference to part 1425; 
(b) clarify that the definitions in this part apply if there are any 
conflicts with the referenced parts; and (c) add a definition of high 
moisture commodities.
    This interim rule amends Sec. 1421.4(b) to add references to a 
receiver, guardian, or trustee which were inadvertently omitted. In 
addition, Sec. 1421.4(f) is amended to remove an obsolete reference.
    Section 1421.5(b)(1) is amended to clarify the application of the 
provision of the paragraph to loans, purchases, and LDP's and 
Sec. 1421.5(b)(4)(iv) to correct the unit of measure for peanuts to 
tons and hundredths of a ton.
    Section 110 of the 1949 Act sets forth the statutory authority for 
the farmer owned reserve (FOR) program for wheat and feed grains.
    Producers with regular 9-month nonrecourse price support loans are 
eligible to enter the FOR upon maturity of the regular loan. Producers 
may repay regular 9-month loans and repledge the commodity pledged as 
collateral for such initial loan for a subsequent loan. Under current 
program regulations, the maturity date for the subsequent loan is the 
same as the maturity date for the initial 9-month loan. Section 
110(b)(1) of the 1949 Act provides, in part, that ``an extended loan 
shall only be made to a producer after the expiration of a 9-month 
price support loan * * *.'' Accordingly, under current program 
regulations, grain pledged as collateral for a subsequent loan is not 
eligible to be pledged as collateral for a FOR loan because the grain 
is not placed into the FOR ``after the expiration of a 9-month price 
support loan''.
    This interim rule amends Sec. 1421.5(d)(2) to provide that CCC may 
allow producers to extend price support loans which are less than 9 
months in length because the collateral securing such loan had been 
previously pledged as collateral for a price support loan so that the 
maturity date for such subsequent loan is the last day of the ninth 
month following the month such subsequent loan was disbursed. This 
would permit producers having such a loan to enter into the FOR upon 
maturity if all other eligibility requirements are met.
    This interim rule amends Sec. 1421.7 by removing paragraph (b) and 
redesignating paragraphs (c) and (d) as paragraphs (b) and (c), 
respectively. The weed control provisions are removed because CCC has 
determined that weed control laws do not affect the value of a 
commodity.
    In addition, this interim rule amends Sec. 1421.7(c)(1) to include 
rice and to remove the reference to the weed control law discounts. 
Section 1421.7 is also amended to redesignate paragraph (c)(3) as 
(c)(4) and add a new paragraph (c)(3), which was inadvertently omitted, 
which includes the method to determine the loan rate for rice based on 
the milling yield.
    This interim rule amends Sec. 1421.8(b)(2) to remove an incorrect 
reference to the United States Warehouse Act.
    This interim rule amends Sec. 1421.9(f)(2)(iv) by removing 
paragraph (G) to correct an error. Rice has not been stored identity 
preserved for many years.
    This interim rule amends Secs. 1421.9(f)(2)(xiv)(B)(5)(v) and 
1421.18(b)(15)(ii)(G) to correct the terminology that the sunflower 
seed must pass through a \14/64\'' round hole screen.
    This interim rule amends Sec. 1421.11(a) to correct a typographical 
error.
    Provisions for taking administrative offsets are provided in part 3 
of this title and part 1403 of this chapter. Accordingly, this interim 
rule removes and reserves Sec. 1421.14.
    This interim rule amends Sec. 1421.16 (a) and (c) to include 
applicable references to Forms CCC-666, CCC-666 LDP, CCC-678, and CCC-
709 and to remove incorrect references to Forms CCC-700 and CCC-701.
    Producers who violate the loan note and security agreement by 
moving farm-stored loan collateral from the structures designated for 
the storage of such loan collateral, without prior written consent of 
the county committee, are subject to liquidated damages. In some cases, 
the collateral is moved to other structures on the farm which makes it 
possible for CCC to perfect its security on such collateral. CCC has 
determined that when such security can be established, producers should 
not be subject to such liquidated damages. Accordingly, this interim 
rule amends Sec. 1421.16(b)(2) to clarify that unauthorized removal 
only includes cases where CCC cannot obtain the first lien on the 
collateral.
    It is difficult to prove the amount of damages to CCC for loan and 
LDP violations committed by producers; however, 20 and 50 percent of 
the loan and LDP rates, as applicable, were established for first and 
second violations, respectively, when the county committee determined 
that the producer acted in good faith. CCC has determined that the 
liquidated damages can be reduced without affecting the administration 
of the loan and LDP programs. Accordingly, this interim rule amends 
Sec. 1421.16 to: (a) Decrease the liquidated damages amounts; and (b) 
add paragraph (q) to provide that any or all of the liquidated damages 
may be waived under certain conditions.
    In addition, under certain conditions, producers who violate loan 
and LDP provisions may be denied loans and LDP's on commodities stored 
on the farm. CCC has determined that this penalty is severe and should 
only be assessed when the county committee determines that such action 
is necessary to protect the interests of CCC. Accordingly, in 
Sec. 1421.16, paragraphs (d) and (e) have been amended to remove the 
requirement for denial of farm-stored loans or LDP's and paragraphs (k) 
and (l) have been amended to clarify that producers must pay the 
liquidated damages assessed and such amounts cannot be repaid with a 
commodity certificate under the provisions of part 1470 of this 
chapter.
    Section 1421.17 provides requirements for farm-stored commodities. 
Section 1421.17 is amended as follows: (a) Paragraph (a) has been 
amended to clarify that the reduced quantity for loan shall be the 
mortgaged loan quantity; (b) paragraph (c)(1) has been amended to 
clarify that, when farm-stored loans are transferred from the farm to 
warehouse storage, the warehouse-stored quantity cannot exceed 110 
percent of the loan quantity transferred from the farm-stored loan; (c) 
paragraph (c)(3) has been amended to correct a reference; and (d) 
paragraph (e) has been amended to include a reference to Form CCC-709 
which was omitted.
    This interim rule amends Sec. 1421.18 to correct the following 
errors: (a) paragraph (b)(12)(iv)(B) has been amended to correct the 
spelling of ``green''; (b) paragraph (b)(13)(iv)(D) has been amended to 
correct punctuation; and (c) paragraph (b)(13)(iv)(D)(5) has been 
amended to correct the spelling of ``inconspicuous.''
    This interim rule amends Sec. 1421.19(b) to correct the spelling of 
``Form.''
    This interim rule amends Sec. 1421.20 as follows: (a) paragraph 
(a)(2) to correct two references; and (b) to add paragraph (e) to 
provide if a producer moves a commodity from storage without prior 
approval on a nonworkday, the producer will not be subject to 
administrative actions providing the producer notifies the county 
office on the next workday that the commodity has been moved and such 
movement is approved by CCC.
    Section 1421.22 provides the settlement provisions of price support 
loans. This interim rule amends Sec. 1421.22 as follows: (a) Paragraph 
(c)(3)(i)(A) to correct the percentage of foreign material for peanuts; 
(b) paragraph (c)(4) to remove references to location differentials for 
rice because such reference is obsolete; and (c) to add paragraphs (e) 
through (i) to include provisions that: (1) CCC may pay to producers 
the cost for hauling commodities delivered to CCC beyond the producer's 
normal delivery point, (2) producers may deliver commodities to CCC 
directly to rail cars, (3) producers will receive storage credit for 
commodities delivered or forfeited to CCC in advance of the loan 
maturity date, and (4) producers will receive credit for prepaid 
warehouse charges for receiving and loading out for commodities 
delivered or forfeited to CCC.
    Section 1421.29 provides the provisions for LDP's. Section 1421.29 
is amended as follows: (a) paragraph (b)(3) removes references to 
obsolete forms and corrects an incorrect reference; (b) paragraphs (c) 
and (g) adds references to rice for clarity; and (c) paragraph (h) is 
removed and paragraph (i) is redesignated as paragraph (h). This 
provision was included to allow producers delivering commodities to a 
buyer directly after harvest an opportunity to file for a LDP on the 
day such commodities were harvested and delivered. This required 
producers to report deliveries to the county office before the next 
loan repayment rate announcement. Since this provision was implemented, 
CCC developed a more workable procedure that allows producers to 
request LDP's in advance of harvest and delivery with the LDP rate 
based on the loan repayment rate announced and in effect on the day the 
commodity is delivered to the processor, buyer, warehouse, or 
cooperative according to redesignated Sec. 1421.29(h). Accordingly, the 
provisions in removed paragraph (h) are no longer needed.
    This interim rule amends Sec. 1421.202 to add a reference to wheat 
which was inadvertently omitted and corrects an incorrect reference.
    Section 1421.205 is amended as follows: (a) paragraphs (a) and (b) 
clarify that a reserve loan is approved rather than disbursed; and (b) 
paragraph (a)(2) clarifies the quantity for which the reserve agreement 
is approved.
    This interim rule amends Sec. 1421.206(b) as follows: (a) removes 
references to grain which grades ``sample grade'' because such grain is 
not eligible for a FOR loan; and (b) removes the provision that corn 
eligible for the FOR must be shelled corn. Currently, corn pledged as 
collateral for a FOR loan is restricted to shelled corn. CCC has 
determined that producers of ear corn should not be denied 
participation in the FOR and that the quality of the grain in the FOR 
would not be adversely affected if ear corn is permitted into the FOR. 
Accordingly, this interim rule removes the stipulation that corn must 
be shelled.
    Quantities of a commodity approved for FOR that are in approved 
storage earn storage credit and CCC pays producers storage payments at 
the end of each quarterly period. Producers with commodities stored in 
approved warehouse storage must pay or provide for the storage charged 
by the warehouse before CCC will pay the FOR storage payment. This 
interim rule amends Sec. 1421.207 to clarify these provisions.
    Section 1421.208 has been amended to remove a typographical error.
    Section 1421.210 provides the commingling and rotation provisions 
for FOR loans. Accordingly, Sec. 1421.210 is amended as follows: (a) 
paragraph (a) clarifies the provisions that are applicable to producers 
who commingle a quantity of an eligible commodity with the quantity 
approved for FOR; (b) paragraphs (b)(2) and (b)(4) add the provision 
that producers may rotate FOR loan collateral by replacing such 
collateral with grain from existing stocks. In the past, producers were 
only allowed to use grain from their most recent harvest as replacement 
stocks for rotated FOR loan collateral. CCC has determined that this 
requirement was unnecessary and that CCC would be at no risk by 
allowing producers to use grain from their existing stocks of harvested 
grain from any past harvest; (c) paragraph (b)(5)(i) corrects 
punctuation, paragraph (b)(5)(ii) removes an incorrect reference, and 
paragraph (b)(5)(iv) reduces the percent of liquidated damages for 
failing to replace the rotated quantity; (d) paragraph (c)(1) removes 
the reference to new grain to conform to the changes made in paragraphs 
(b)(2) and (b)(4); (e) paragraph (c)(2) corrects a typographical error; 
(f) paragraph (c)(3) clarifies that storage shall not be earned for FOR 
collateral released for sale by the producer from the date of the 
rotation request until the replacement stocks are in place; (g) 
paragraph (c)(4) requires that the producer certify to the FOR quantity 
that the producer is requesting CCC to release for rotation that the 
producer intends to feed and clarifies that storage shall not be earned 
for such collateral released from the date of the rotation request 
until the replacement stocks are in place; and (h) paragraph (c)(5) 
removes the requirement to measure and inspect the grain to be released 
and the growing crop of the replacement stocks to conform to the 
changes made in paragraphs (b)(2) and (b)(4), and clarifies that the 
replacement stocks, when such stocks are already in store on the farm, 
must be inspected and measured before the release of the FOR 
collateral.
    This interim rule amends Sec. 1421.211 to clarify that producers 
may repay FOR loans at any time at the marketing loan repayment rate if 
such rate is in effect.
    This interim rule amends Sec. 1421.215 to conform to the existing 
provisions for loss of or damage to regular loans in Sec. 1421.15.
    This interim rule amends Sec. 1421.320 to clarify that rice 
marketing certificate payments may be paid in a form other than 
commodity certificates, and such payments apply to that quantity of a 
commodity redeemed from loan or on which a LDP was made.
    This interim rule amends Secs. 1421.321, 1421.323 and 1421.324 to 
correct references to the agreement with CCC for a rice marketing 
certificate payments and amends the heading to Sec. 1421.323.
    This interim rule amends Sec. 1421.323(b) to clarify that rice 
marketing certificate payments apply to that quantity of a commodity 
redeemed from loan or on which a LDP was made.

List of Subjects in 7 CFR Part 1421

    Grains, Loan programs/agriculture, Oilseeds, Peanuts, Price support 
programs, Reporting and recordkeeping requirements, Soybeans, Surety 
bonds, Warehouses.

    Accordingly, 7 CFR part 1421 is amended as follows:

PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES

    1. The authority citation for 7 CFR part 1421 continues to read as 
follows:

    Authority: 7 U.S.C. 1421, 1423, 1425, 1441z, 1444f-1, 1445b-3a, 
1445c-3, 1445e, and 1446f; 15 U.S.C. 714b and 714c. Subpart--Rice 
Marketing Certificate Program is also issued under authority of 7 
U.S.C. 1441-2; 15 U.S.C. 714b and 714c.

    2. Section 1421.1 is amended by revising paragraph (a) to read as 
follows:


Sec. 1421.1   Applicability.

    (a) The regulations of this subpart are applicable to the 1991 and 
subsequent crops of barley, corn, grain sorghum, oats, peanuts, rice, 
rye, wheat, and oilseeds as set forth in Sec. 1421.3. These regulations 
set forth the terms and conditions under which price support loans and 
purchase agreements shall be entered into and loan deficiency payments 
made by the Commodity Credit Corporation (CCC). Additional terms and 
conditions are set forth in the note and security agreement, loan 
deficiency payment application, and the purchase agreement which must 
be executed by a producer in order to receive price support. With 
respect to warehouse-stored loans for peanuts, such loans shall be made 
in accordance with part 1446 of this title.
* * * * *
    3. Section 1421.3 is revised to read as follows:


Sec. 1421.3   Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of program administration. The terms defined in part 719 
of this title and parts 1413 and 1425 of this chapter shall also be 
applicable, except where those definitions conflict with the 
definitions set forth in this section.
    Basic support rate means the price support rate established by CCC 
for a commodity before any adjustment for premiums and discounts.
    Charges means all fees, costs, and expenses incurred in insuring, 
carrying, handling, storing, conditioning, and marketing the commodity 
tendered to CCC for price support. Charges also include any other 
expenses incurred by CCC in protecting CCC's or the producer's interest 
in such commodity.
    High moisture commodities means barley, corn, and grain sorghum 
normally harvested and intended to be stored or marketed in a high 
moisture condition.
    Loan deficiency quantity means the eligible quantity which was 
certified by the producer as eligible to be pledged as collateral for a 
price support loan, for which the producer elected to forgo obtaining 
price support.
    Loan quantity means the quantity on which the price support loan 
was disbursed shown on the note and security agreement.
    Oilseeds means any crop of soybeans, sunflower seed, canola, 
rapeseed, safflower, flaxseed, mustard seed, and other oilseeds as 
determined and announced by CCC.
    Purchase quantity means the eligible quantity designated on Form 
CCC-614, Purchase Agreement for purchase by CCC.

    4. Section 1421.4 is amended by revising paragraphs (b) and (f) to 
read as follows:


Sec. 1421.4   Eligible producers.

* * * * *
    (b) A receiver or trustee of an insolvent or bankrupt debtor's 
estate, an executor or an administrator of a deceased person's estate, 
a guardian of an estate of a ward or an incompetent person, and 
trustees of a trust shall be considered to represent the insolvent or 
bankrupt debtor, the deceased person, the ward or incompetent, and the 
beneficiaries of a trust, respectively, and the production of the 
receiver, executor, administrator, guardian, or trustee shall be 
considered to be the production of the person or estate represented by 
the receiver, executor, administrator, guardian, or trustee. Loan, loan 
deficiency payment, or purchase agreement documents executed by any 
such person will be accepted by CCC only if they are legally valid and 
such person has the authority to sign the applicable documents.
* * * * *
    (f) Warehouse-stored loans to warehousemen. Warehouse-stored loans 
may be made to a warehouseman who, acting on behalf and with the 
authorization of a producer, tenders to CCC warehouse receipts issued 
by such warehouseman for a commodity produced by such warehouseman only 
in those States where the issuance and pledge of such warehouse 
receipts is valid under State law.
* * * * *
    5. Section 1421.5 is amended by revising paragraphs (b)(1), 
(b)(4)(iv), and (d)(2) to read as follows:


Sec. 1421.5   General eligibility requirements.

* * * * *
    (b) (1) Commodities for loans, purchases, or LDP's must be tendered 
to CCC by an eligible producer and must be eligible and in existence 
when approved by CCC. For loans and purchases, commodities must also be 
stored in approved storage at the time of disbursement of loan or 
purchase agreement proceeds. The commodity must not have been sold, nor 
any sales option on such commodity granted, to a buyer under a contract 
which provides that the buyer may direct the producer to pledge the 
commodity to CCC as collateral for a price support loan or to obtain a 
loan deficiency payment. Such commodities must also be merchantable for 
food, feed, or other uses determined by CCC and must not contain 
mercurial compounds, toxin producing molds, or other substances 
poisonous to humans or animals.
* * * * *
    (4) * * *
    (iv) Quantities of peanuts shall be in tons and hundredths of a 
ton;
* * * * *
    (d) * * *
    (2) The commodity reoffered as security for the subsequent loan 
shall have the same maturity date as the original loan, except that if 
a farmer owned reserve program is in effect in accordance with 
Secs. 1421.200 through 1421.217, CCC may allow a producer to request 
that maturity date of such subsequent loan be the last day of the ninth 
month following the month the subsequent loan is disbursed.
* * * * *
    6. Section 1421.7 is amended by:
    A. Removing paragraph (b),
    B. Redesignating paragraphs (c) and (d) as paragraphs (b) and (c) 
respectively,
    C. Revising redesignated paragraph (c)(1),
    D. Redesignating redesignated paragraph (c)(3) as paragraph (c)(4), 
and
    E. Adding a new paragraph (c)(3) to read as follows:


Sec. 1421.7  Adjustment of basic support rates.

* * * * *
    (c) (1) With respect to all commodities except peanuts and rice, 
warehouse-stored loans and purchase agreement payments shall be 
disbursed at levels based on the basic county support rate for the 
county where the commodity is stored, adjusted for the schedule of 
premiums and discounts established for the commodity on the basis of 
quality factors set forth on warehouse receipts or supplemental 
certificates and for other quality factors, as determined and announced 
by CCC.
* * * * *
    (3) With respect to rice, warehouse-stored loans and purchase 
agreement payments shall be disbursed at levels based on the milling 
yields times the whole and broken kernel loan rates, adjusted for the 
schedule of discounts on the basis of quality factors set forth on 
warehouse receipts or supplemental certificates and for other quality 
factors, as determined and announced by CCC.
* * * * *
    7. Section 1421.8 is amended by revising paragraph (b)(2) to read 
as follows:


Sec. 1421.8  Approved storage.

* * * * *
    (b) * * *
    (2) A warehouse operated by an approved cooperative as defined in 
part 1425 of this chapter.
* * * * *
    8. Section 1421.9 is amended by:
    A. Revising paragraphs (f)(2)(iv)(E) and (f)(2)(iv)(F),
    B. Removing paragraph (f)(2)(iv)(G), and
    C. Revising paragraph (f)(2)(xiv)(B)(5)(v) to read as follows:


Sec. 1421.9  Warehouse receipts.

* * * * *
    (f) * * *
    (2) * * *
    (iv) * * *
    (E) Milling yield; and
    (F) Moisture.
* * * * *
    (xiv) * * *
    (B) * * *
    (5) * * *
    (v) Seed size passing through a \14/64\'' round hole screen;
* * * * *
    9. Section 1421.11(a) is revised to read as follows:


Sec. 1421.11  Liens.

    (a) The county office shall file or record, as required by State 
law, all security agreements which are issued with respect to 
commodities pledged as collateral for price support loans. The cost of 
filing and recording shall be paid for by CCC.
* * * * *


Sec. 1421.14  [Removed and Reserved]

    10. Section 1421.14 is removed and reserved.
    11. Section 1421.16 is amended by:
    A. Revising paragraph (a)(1) introductory text and revising 
paragraphs (a)(1)(i), (a)(2), (a)(3), (b)(1), (b)(2), (c), (d) 
introductory text, and (d)(2),
    B. Revising paragraphs (e), (k)(1)(ii)(C), and (k)(1)(ii)(D),
    C. Adding paragraph (k)(1)(ii)(E),
    D. Revising paragraphs (l)(1)(ii) and (l)(1)(iii), and
    E. Adding paragraphs (l)(1)(iv) and (q) to read as follows:


Sec. 1421.16  Personal liability of the producers.

    (a) * * *
    (1) When signing Form CCC-666, Farm Stored Loan Quantity 
Certification, when applicable, Form CCC-677, Farm Storage Note and 
Security Agreement, and Form CCC-678, Warehouse Storage Note and 
Security Agreement, that the producer will not:
    (i) Provide an incorrect certification of the quantity or make any 
fraudulent representation for loan, or
* * * * *
    (2) When signing Form CCC-666 LDP, Loan Deficiency Payment 
Application and Certification, or CCC-709, Direct Loan Deficiency 
Payment Agreement, as applicable, that the producer will not provide an 
incorrect certification of the quantity or make any fraudulent 
representation for loan deficiency payment purposes.
    (3) That violation of the terms and conditions of the Form CCC-677, 
Form CCC-678, Form CCC-666 LDP, or Form CCC-709, as applicable, will 
cause harm or damage to CCC in that funds may be disbursed to the 
producer for a quantity of a commodity which is not actually in 
existence or for a quantity on which the producer is not eligible.
    (b) * * *
    (1) Incorrect certification is the certifying of a quantity of a 
commodity for the purpose of obtaining a commodity loan or a loan 
deficiency payment in excess of the quantity eligible for such loan or 
loan deficiency payment or the making of any fraudulent representation 
with respect to obtaining loans or loan deficiency payments.
    (2) Unauthorized removal is the movement of any farm-stored loan 
quantity from the storage structure in which the commodity was stored 
or structures which were designated when the loan was approved to any 
other storage structure whether or not such structure is located on the 
producer's farm without prior written authorization from the county 
committee in accordance with Sec. 1421.20, if the movement of loan 
collateral prevents CCC from obtaining the first lien on such 
collateral.
* * * * *
    (c) The producer and CCC agree that it will be difficult, if not 
impossible, to prove the amount of damages to CCC for the violations in 
accordance with paragraph (b) of this section. Accordingly, if the 
county committee determines that the producer has violated the terms 
and conditions of Form CCC-677, Form CCC-678, Form CCC-666 LDP, or Form 
CCC-709, as applicable, liquidated damages shall be assessed on the 
quantity of the commodity which is involved in the violation. If CCC 
determines the producer:
    (1) Acted in good faith when the violation occurred, liquidated 
damages will be assessed by multiplying the quantity involved in the 
violation by:
    (i) 10 percent of the loan rate applicable to the loan note or the 
loan deficiency payment rate for the first offense; or
    (ii) 25 percent of the loan rate applicable to the loan note or the 
loan deficiency payment rate for the second offense; or
    (2) Did not act in good faith with regard to the violation, or for 
cases other than the first or second offense, liquidated damages will 
be assessed by multiplying the quantity involved in the violation by 25 
percent of the loan rate applicable to the loan note or the loan 
deficiency payment rate.
    (d) For liquidated damages assessed in accordance with paragraph 
(c)(1) of this section, the county committee shall:
* * * * *
    (2) If the producer fails to pay such amount within 30 days from 
the date of notification, call the applicable loan involved in the 
violation, or for loan deficiency payments, require repayment of the 
entire loan deficiency payment and charges plus interest.
    (e) For liquidated damages assessed in accordance with paragraph 
(c)(2) of this section, the county committee shall call the loan 
involved in the violation, or for loan deficiency payments, require 
repayment of the entire loan deficiency payment and charges plus 
interest.
* * * * *
    (k) (1) * * *
    (ii) * * *
    (C) All other costs which CCC would not have incurred but for the 
fraudulent representation, the unauthorized disposition or movement of 
the loan collateral;
    (D) Interest on such amounts;
    (E) Liquidated damages assessed under paragraph (c) of this 
section; and
    (1) With regard to amounts due for a loan, the payment of such 
amounts may not be satisfied by the forfeiture of loan collateral to 
CCC of commodities with a settlement value that is less than the total 
of such amounts; or
    (2) By repayment of such loan at the lower loan repayment rate as 
prescribed in Sec. 1421.25 and may not utilize the provisions of part 
1470 of this chapter with respect to such loans.
* * * * *
    (l)(1) * * *
    (ii) All other costs which CCC would not have incurred but for the 
producer's fraudulent representation;
    (iii) Interest which has accrued with respect to such amounts; and
    (iv) Liquidated damages assessed under paragraph (c) of this 
section.
* * * * *
    (q) Any or all of the liquidated damages assessed in accordance 
with the provisions of paragraph (c) of this section may be waived as 
determined by CCC.

    12. Section 1421.17 is amended by revising paragraphs (a), (c)(1), 
(c)(3), and (e) to read as follows:


Sec. 1421.17  Farm-stored commodities.

    (a) The quantity of a commodity which shall be used to determine 
the amount of a farm-stored loan shall not exceed a percentage (the 
``loan percentage''), as established by the State committee which shall 
not exceed a percentage established by CCC, of the certified or 
measured quantity of the eligible commodity stored in approved farm 
storage and covered by the note and security agreement. The quantity of 
a commodity pledged as security for a farm-storage loan shall be 
measured or certified in accordance with paragraph (e) of this section. 
Farm-stored loans may be made on less than the maximum quantity 
eligible for loan at the producer's request. If the loan quantity is 
reduced by the State committee, the county committee, or by request of 
the producer, such reduced quantity shall be the mortgaged quantity on 
the note and security agreement for the commodity in a bin, crib, or 
lot on which the loan is made.
* * * * *
    (c) * * *
    (1) Liquidation of the farm-stored loan or part thereof shall be 
made through the pledge of warehouse receipts for the commodity placed 
under warehouse-stored loan and the immediate payment by the producer 
of the amount by which the warehouse-stored loan is less than the farm-
stored loan or part thereof and charges plus interest. The loan 
quantity for the warehouse-stored loan cannot exceed 110 percent of the 
loan quantity transferred from the farm-stored loan.
* * * * *
    (3) For loans extended in accordance with Secs. 1421.200 through 
1421.217, CCC may limit the quantity for a warehouse-stored loan to the 
quantity approved on the farmer owned reserve agreement loan.
* * * * *
    (e) The quantity of a commodity pledged as security for a farm-
stored loan or for which a loan deficiency payment is requested may be 
determined on the basis of the quantity of the commodity which an 
eligible producer certifies in writing on Form CCC-666 for a loan and 
Form CCC-666 LDP or CCC-709, as applicable, for a loan deficiency 
payment, is eligible to be pledged as collateral and is otherwise 
available for loan or loan deficiency payment purposes.
* * * * *
    13. Section 1421.18 is amended by revising paragraphs 
(b)(12)(iv)(B), (b)(13)(iv)(D), (b)(13)(iv)(D)(5), and (b)(15)(ii)(G) 
to read as follows:


Sec. 1421.18  Warehouse-stored loans.

* * * * *
    (b) * * *
    (12) * * *
    (iv) * * *
    (B) For distinctly green seeds, 1.5 percent;
* * * * *
    (13) * * *
    (iv) * * *
    (D) For admixtures:
* * * * *
    (5) For inconspicuous admixtures, 5.0 percent;
* * * * *
    (15) * * *
    (ii) * * *
    (G) The sunflower seed gross weight must be adjusted downward to 
reflect undersized seed, passing through a \14/64\'' round hole screen, 
dockage, and for the presence of any admixtures.

    14. Section 1421.19 is amended by revising paragraph (b) to read as 
follows:


Sec. 1421.19  Liquidation of loans.

* * * * *
    (b) If the producer desires to deliver eligible commodities to CCC 
in satisfaction of the loan, the producer must notify CCC of such 
intention before the loan maturity date by giving written notice to the 
county office which disbursed the proceeds for such loan. If the 
producer fails to deliver such commodities to CCC by the date specified 
on Form CCC-691, Commodity Delivery Notice, and the producer 
subsequently redeems the commodity pledged as collateral for the loan 
before delivery is completed, interest shall continue to be assessed on 
such amount in accordance with part 1405 of this chapter.
* * * * *
    15. Section 1421.20 is amended by:
    A. Revising paragraph (a)(2), and
    B. Adding paragraph (e) to read as follows:


Sec. 1421.20  Release of the commodity pledged as collateral for a 
loan.

    (a) * * *
    (2) If CCC so announces, an amount less than the principal amount 
of the loan and charges plus interest under the terms and conditions 
specified by CCC at the time the producer redeems the commodity pledged 
as collateral for such loan in accordance with Sec. 1421.25. The 
producer may request and CCC may approve removal of a quantity of the 
commodity from storage, without the payment of CCC of the loan amount, 
if the principal amount outstanding on such loan before such removal 
does not exceed the maximum loan value of the quantity of the commodity 
remaining in storage after such removal. When the proceeds of the sale 
of the commodity are needed to repay all or a part of a farm-stored 
loan, the producer must request and obtain prior written approval of 
the county office on a form prescribed by CCC in order to remove a 
specified quantity of the commodity from storage. Any such approval 
shall be subject to the terms and conditions set forth in the 
applicable form, copies of which may be obtained by producers at the 
county office. Any such approval shall not constitute a release of 
CCC's security interest in the commodity or release the producer from 
liability for any amounts due and owing to CCC with respect to the loan 
indebtedness if full payment of such amounts is not received by the 
county office. If a producer fails to repay a loan within the time 
period prescribed by CCC for a farm-storage loan and commodity pledged 
as loan collateral has been delivered to a buyer in accordance with 
Form CCC-681-1, Authorization for Delivery of Loan Collateral for Sale, 
such producer may not repay the loan at the level that is less than the 
loan level determined in accordance with Sec. 1421.25(a)(1)(ii), 
(b)(2), or (d)(2).
* * * * *
    (e) If the commodity is moved on a nonworkday from storage without 
obtaining prior approval to move such commodity, such removal shall 
constitute unauthorized removal or disposition, as applicable, of such 
commodity unless the producer notifies the county office the next 
workday that such commodity has been moved and such movement is 
approved by CCC.

    16. Section 1421.22 is amended by:
    A. Revising paragraphs (c)(3)(i)(A) and (c)(4), and
    B. Adding paragraphs (e), (f), (g), (h), and (i) to read as 
follows:


Sec. 1421.22  Settlement.

* * * * *
    (c) * * *
    (3) * * *
    (i) * * *
    (A) $2 per ton, net weight, for each full 1 percent of foreign 
material in excess of 15 percent; and
* * * * *
    (4) With respect to rice acquired by CCC at a location other than 
an approved warehouse, settlement shall be made on the basis of the 
class, grade, and quality entries set forth in the Federal-State 
inspection certificate and on the basis of the quantity set forth in 
the weight certificates.
* * * * *
    (e) When a producer is directed by the county office to haul the 
commodity for a loan, except aromatic rice, a greater distance than 
would have been necessary to make delivery to the producer's customary 
delivery point, as determined by CCC, the producer will be allowed 
compensation, as determined by the State committee at a rate not to 
exceed the common carrier truck rate or the rate available from local 
truckers, for hauling the eligible commodity the additional distance. 
In determining the rate of payment for excess hauling, the State 
committee may establish reasonable mileage minimums below which 
producers will not receive compensation for hauling.
    (f) (1) Producers may request trackloading for loan collateral 
where approved warehouse space is not available locally or where KCCO 
determines that it would be to the benefit of CCC. Where local weighing 
facilities are not available or when requested by producers, 
destination weights may be used for settlement purposes. All producers 
loading in the same car must sign an agreement stating the percentage 
share of the total quantity to be credited to each. When requested by 
producers prior to delivery of the commodity, settlement may be made on 
the basis of destination grades. Such destination grade determination 
for a car shall be applied to the entire quantity of a commodity loaded 
into the same car, regardless of the grade or quality of a commodity 
loaded into the car by any producer.
    (2) A trackloading payment of 19 cents per bushel (or 31.66 cents 
per hundredweight in the case of sorghum, oilseeds, and rice, excluding 
aromatic rice) shall be made to the producer on an eligible commodity 
delivered to CCC under this subsection.
    (g) If a farm-stored commodity is delivered in advance of the 
applicable loan maturity date as provided in Secs. 1421.19 and 1421.21, 
a deduction for storage charges shall be made. The deduction shall be 
made for the period from the date of delivery to the applicable 
maturity date or expiration date for the commodity. Such deduction 
shall be at the rate charged by the warehouse to which the commodity 
was delivered. No deduction for storage charges shall be made for early 
delivery of a farm-stored commodity if the loan maturity date is 
accelerated by CCC under a general acceleration of the maturity date in 
a particular area.
    (h) A refund of warehouse storage charges will be made by CCC to 
the producer if the maturity date of a warehouse storage loan is 
accelerated by CCC for reasons other than any wrongful act or omission 
on the part of the producer, and the commodity is not redeemed. The 
amount of the storage charges to be refunded shall be computed at the 
lesser of the UGSA rate or the rate prepaid by the producer for the 
period of unearned storage.
    (i) If a warehouse charges the producer for either the receiving 
charges or the receiving and loading out charges on an eligible 
commodity in an approved warehouse, the producer shall, upon delivery 
to CCC of warehouse receipts representing the commodity stored in such 
warehouse, be reimbursed or given credit by the county office for such 
prepaid charges at the lesser of the UGSA rate or the rate prepaid by 
the producer. The producer must furnish to the county office, written 
evidence signed by the warehouse operator that such charges have been 
paid.

    17. Section 1421.29 is amended by:
    A. Revising paragraphs (b)(3), (c), and (g) to read as follows,
    B. Removing paragraph (h), and
    C. Redesignating paragraph (i) as paragraph (h).


Sec. 1421.29  Loan deficiency payments.

* * * * *
    (b) * * *
    (3) File and request payment on Form CCC-666 LDP, unless the 
producer enters into an agreement according to paragraph (h) of this 
section, for a quantity of an eligible commodity;
* * * * *
    (c) The loan deficiency payment rate for a crop shall be the amount 
by which the price support loan level for the crop exceeds the level at 
which CCC has announced that producers may repay their price support 
loans in accordance with Sec. 1421.25. Such rate shall be the amount 
determined on the day the producer submits a completed request for a 
loan deficiency payment to the county office. When such request is for 
rice and the request provides that the loan deficiency payment rate 
shall be based on the date of delivery, and the documentation of 
delivery indicates the rice was delivered after 3 p.m. eastern time, 
the loan deficiency payment rate in effect after 3 p.m. eastern time of 
the delivery date shall be used. In all other cases for rice where the 
loan deficiency payment rate is based on the delivery date, the payment 
rate in effect at 12:00:01 a.m. eastern time of the delivery date shall 
be used.
* * * * *
    (g) Notwithstanding any other provision of this section, on the day 
of the announcement of the adjusted world price, applications for loan 
deficiency payments for rice that specify the payment rate will not be 
accepted between 2 p.m. eastern time and the time of the world price 
announcement.
* * * * *
    18. Section 1421.202 is revised to read as follows:


Sec. 1421.202  Length of reserve agreements.

    The length of a FOR loan shall be 27 months from the maturity date 
of the regular price support loan. The day following the maturity date 
of the regular price support loan shall be the effective date of the 
FOR loan agreement. In order to assure that producers throughout the 
United States are treated in a fair and equitable manner, CCC may allow 
extensions of regular price support loans for wheat, corn, grain 
sorghum, oats, and barley which expire in or before the month following 
the month of the date for such commodity as specified in 
Sec. 1421.201(b). The terms and conditions of such extension shall be 
provided through actual notice to affected producers. FOR agreements 
may be extended by CCC, at CCC's sole discretion, at maturity for an 
additional six months.

    19. Section 1421.205 is amended by revising paragraph (a) 
introductory text and revising paragraphs (a)(2) and (b) to read as 
follows:


Sec. 1421.205  Quantity eligible for grain reserve loans.

    (a) Farm-stored FOR loans shall be approved on a quantity not to 
exceed the lesser of:
* * * * *
    (2) The quantity upon which the disbursement of the regular price 
support loan was based.
    (b) Warehouse-stored FOR loans shall be approved on a quantity not 
to exceed the quantity shown on the warehouse receipt or the 
supplemental certificate, if applicable, which secured the regular 
price support loan.
    20. Section 1421.206 is amended by revising paragraph (b) to read 
as follows:


Sec. 1421.206  Quality eligibility requirements of FOR loans.

* * * * *
    (b) Grain which is pledged as collateral for a FOR loan must meet 
the quality eligibility requirements for securing a regular price 
support loan.
* * * * *
    21. Section 1421.207 is amended by revising paragraphs (b)(1), 
(b)(2)(i), and (b)(2)(iii) to read as follows:


Sec. 1421.207  Storage rates.

* * * * *
    (b) (1) Storage payments shall be paid quarterly, starting from the 
effective date of the FOR loan. Such payments shall be paid within 30 
days after the end of each quarter in which such payments are earned. 
Storage payments shall not be earned when the grain which was pledged 
as collateral for the FOR loan is not in storage, as determined by CCC. 
Storage payments shall not be earned when the 5-day adjusted market 
price determined in accordance with Sec. 1421.209(e) equals or exceeds 
95 percent of the current year's established price for the commodity. 
In such instance, no storage payments shall be earned from the day the 
5-day adjusted market price was equal to or exceeded 95 percent of such 
established price through the ninetieth day following the last day on 
which the 5-day adjusted market price equalled or exceeded 95 percent 
of such established price.
    (2) * * *
    (i) A FOR agreement shall not be approved until the producer 
provides written evidence to CCC that at least the next year's storage, 
including any storage deduction applicable to the regular loan, has 
been paid to the warehouse or arrangements for the payment of such 
storage have been made with the warehouse on the FOR loan quantity.
* * * * *
    (iii) The eighth quarterly storage payment shall not be made until 
the producer provides written evidence to CCC that storage has been 
paid to the warehouse or arrangements for the payment of such storage 
have been made with the warehouse on the FOR quantity through the FOR 
loan maturity date.
* * * * *
    22. Section 1421.208 is revised to read as follows:


Sec. 1421.208  Charging interest.

    FOR loans shall not accrue interest unless CCC determines that the 
5-day adjusted market price determined in accordance with 
Sec. 1421.209(e) for the commodity is equal to or exceeds 105 percent 
of the current year's established price for such commodity. In such 
instance, interest shall accrue from the day the 5-day adjusted market 
price was equal to or exceeded 105 percent of such established price 
and continue to accrue for the balance of the month following the last 
day on which the 5-day adjusted market price equaled or exceeded 105 
percent of such established price through the two succeeding months. 
The rate of interest which shall be applicable to a FOR loan during an 
interest-accruing period shall be the rate applicable to the regular 
price support loan as determined in accordance with part 1405 of this 
chapter.

    23. Section 1421.210 is amended by revising paragraphs (a), (b)(2), 
(b)(4) introductory text, (b)(4)(ii), (b)(5)(i), (b)(5)(ii), 
(b)(5)(iv), (c)(1) introductory text, (c)(2), (c)(3), (c)(4), and 
(c)(5) to read as follows:


Sec. 1421.210  Commingling and replacement of wheat and feed grains.

    (a) In the case of farm-stored FOR loans, if an eligible quantity 
of a commodity has been commingled with an ineligible quantity of the 
commodity, the commingled commodity is not eligible to be pledged as 
collateral for a FOR loan unless the provisions in Sec. 1421.17 (b)(1) 
or (b)(2) are met.
    (b) * * *
    (2) Grain which is used to replace existing FOR loan collateral 
must have been produced by the producer and be eligible to be pledged 
as collateral for a regular price support loan, except that compliance 
with the terms and conditions of any commodity program conducted in 
accordance with part 1413 of this chapter on the farm on which such 
replacement grain was produced is not required. Replacement loan 
collateral may be grain from the crop which is harvested after the date 
established by the State committee in accordance with paragraph (b)(1) 
of this section or be grain from a producer's existing stocks in CCC-
approved farm storage. This grain must not have been purchased and must 
be free of any liens or encumbrances unless waivers that fully protect 
the interest of CCC are obtained. With respect to wheat, such 
replacement grain must be of the same class as the regular price 
support loan collateral.
* * * * *
    (4) To protect the interest of CCC in the quantity of collateral to 
be released for replacement in accordance with paragraph (c)(1)(i) or 
(c)(1)(iii) of this section, the county committee may require producers 
to remit payments to the CCC before a request to replace FOR loan 
collateral is approved. In such cases, the amount to be remitted shall 
be the smaller of:
* * * * *
    (ii) The product of the market price available in the county office 
on the date that the replacement request was made, times the quantity 
to be replaced, as determined by CCC.
    (5) * * *
    (i) The principal amount of the FOR loan and other charges plus 
interest from the disbursement date of such amount;
    (ii) Storage payments made in accordance with the loan from the 
date the request for replacement was approved for CCC to the 
disbursement date of such payments;
* * * * *
    (iv) Liquidated damages computed by multiplying the quantity not 
replaced by 25 percent of the loan rate applicable to the loan note.
    (c) (1) A producer who files a Form CCC-687-1 or CCC-681 requesting 
the approval to replace existing FOR loan collateral may after approval 
of the request:
* * * * *
    (2) A producer who delivers grain to a CCC-approved warehouse in 
accordance with paragraph (c)(1) of this section shall cause to be 
delivered to CCC a warehouse receipt issued in the name of CCC with 
respect to such grain. The warehouse receipt shall show that storage 
charges have been paid or otherwise provided for through the final date 
specified to complete the replacement, and CCC shall retain control of 
the receipt until the producer has replaced the original FOR loan 
collateral with eligible replacement grain. Except as provided in 
paragraph (b)(3) of this section, if the producer fails to replace the 
grain within the approved replacement period, CCC shall take title to 
the warehouse receipt without any further action by the producer and 
shall determine the value of the grain represented by the receipt. This 
value shall be determined in accordance with Sec. 1421.22 and shall be 
credited to the amount owed by the producer as determined in accordance 
with paragraph (b)(5) of this section.
    (3) A producer who, in accordance with paragraph (c)(1) of this 
section, sells the grain which is the collateral for the FOR loan shall 
only sell such grain to the person specified on Form CCC-681. Storage 
payments shall not be earned on the quantity rotated, as determined by 
CCC, from the date the rotation request is approved until the 
replacement stocks are in place. To protect the interest of CCC in the 
quantity of collateral to be released for replacement, the county 
committee may require the purchaser to make and remit to CCC a check 
for the full amount of the purchase. In such instances, CCC shall make 
these funds available to the producer upon the replacement of the 
original FOR loan collateral with eligible replacement grain if such 
replacement occurs prior to the final date of the approved replacement 
period. Except as provided in paragraph (b)(3) of this section, if the 
producer fails to replace the grain by this date, the producer shall 
forfeit the sales proceeds to CCC without any further action by the 
producer. Such sales proceeds shall be credited to the amount owed by 
the producer as determined in accordance with paragraph (b)(5) of this 
section.
    (4) A producer who, in accordance with paragraph (c)(1) of this 
section, intends to feed such grain to the producer's own livestock, 
may only feed the quantity of grain which was approved by the county 
committee for such purposes. The producer must certify to the quantity 
the producer intends to use for feed during the approved rotation 
period. Storage payments shall not be earned on the quantity rotated, 
as determined by CCC, from the date the rotation request is approved 
until the replacement stocks are in place in CCC-approved farm storage.
    (5) Any producer who files a Form CCC-687-1 or CCC-681 with the 
county committee shall not remove the existing FOR loan collateral 
until written approval has been made by the county committee. The 
producer shall allow a representative of the county committee to 
inspect and measure, at the producer's expense, the quantity of 
replacement grain when such replacement stocks are in place in CCC-
approved farm storage. Producers who request approval to replace 
existing FOR loan collateral with existing stocks in CCC-approved farm 
storage shall not receive approval to remove the existing FOR loan 
collateral until the replacement stocks have been inspected and 
measured.

    24. Section 1421.211 is revised to read as follows:


Sec. 1421.211  Redemption requirements and emergency call.

    (a) A producer may redeem the commodity pledged as collateral for a 
FOR loan at any time by repaying the principal amount of the FOR loan 
and other charges plus interest as provided in this part or, if CCC so 
announces, an amount less than the principal amount of the FOR loan and 
other charges plus interest in accordance with Sec. 1421.25(d)(2).
    (b) Notwithstanding any other provision of this part, the Secretary 
may require producers to repay FOR loans prior to the maturity date of 
such loans if the Secretary determines that emergency conditions exist 
which require that the commodity which is serving as collateral for the 
FOR loan be made available in the market to meet urgent domestic or 
international needs and such determination and the reasons therefore 
are reported to the President, the Committee on Agriculture, Nutrition, 
and Forestry of the Senate, and the Committee on Agriculture of the 
House of Representatives at least fourteen days before taking such 
action. Repayment shall consist of the amount in accordance with 
paragraph (a) of this section. If the called loan is not redeemed 
within the time prescribed by the Secretary, CCC may take title to the 
commodity without any further action by the producer.

    25. Section 1421.215 is revised to read as follows:


Sec. 1421.215  Loss or damage to the commodity.

    The producer is responsible for any and all loss in quantity or 
quality of the commodity pledged for a FOR loan. CCC shall not assume 
any loss in quantity or quality of the FOR farm-stored loan collateral.

    26. Section 1421.320 is amended by revising paragraphs (a) and 
(c)(2) to read as follows:


Sec. 1421.320  General provisions.

    (a) This subpart sets out the terms and conditions under which the 
CCC shall make payments to eligible persons who have entered into an 
agreement with CCC to participate in the rice marketing certificate 
program.
* * * * *
    (c) * * *
    (2) With respect to eligible rice which has not been and will not 
be pledged as collateral for a price support loan received a loan 
deficiency payment in accordance with Sec. 1421.29.

    27. Section 1421.321 is amended by revising introductory text to 
read as follows:


Sec. 1421.321  Eligible persons.

    For the purposes of this subpart, the following persons shall be 
considered to be eligible to enter into an agreement with CCC and to 
receive payment in accordance with this subpart:
* * * * *
    28. Section 1421.323 is revised to read as follows:


Sec. 1421.323  Rice marketing certificate payments.

    (a) Payments in accordance with this subpart shall be made 
available to eligible persons who have complied with the terms and 
conditions set forth in this subpart and who have entered into an 
agreement with CCC.
    (b) Payments in accordance with this subpart shall be made when the 
producer receives a loan deficiency payment in accordance with 
Sec. 1421.29 or when the producer repays a loan in accordance with 
Sec. 1421.25.
    29. Section 1421.324 is revised to read as follows:


Sec. 1421.324  Payment rate.

    The payment rate for the purposes of calculating payments made 
available in accordance with this subpart shall be based upon the 
difference between the adjusted world price for the class of rice and 
the loan repayment level in effect for the loan deficiency payment or 
loan repayment.

    Signed in Washington, DC, on June 27, 1994.
Bruce R. Weber,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-16111 Filed 7-1-94; 8:45 am]
BILLING CODE 3410-05-P