[Federal Register Volume 59, Number 247 (Tuesday, December 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30999]


[[Page Unknown]]

[Federal Register: December 27, 1994]


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DEPARTMENT OF AGRICULTURE
Rural Housing and Community Development Service
Rural Business and Cooperative Development Service
Rural Utilities Service
Consolidated Farm Service Agency

7 CFR Chapter XVIII and Part 1943

RIN 0575-AB74

 

Small Farmer Outreach Training and Technical Assistance Program

AGENCIES: Rural Housing and Community Development Service, Rural 
Business and Cooperative Development Service, Rural Utilities Service, 
and Consolidated Farm Service Agency, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: The Consolidated Farm Service Agency (CFSA) is the successor 
to the Farmers Home Administration pursuant to Section 226 of the 
Federal Crop Insurance Reform Act of 1994 (Pub. Law 103-354, 108 stat. 
3178, October 13, 1994). The CFSA is establishing a regulation whereby 
under the procedures of the Small Farmer Outreach Training and 
Technical Assistance Program and the Outreach and Assistance Grants for 
Socially Disadvantaged Farmers and Ranchers Program, an 1890 Land Grant 
Institution or other eligible educational institution or community-
based organization could enter into a cooperative or other agreement 
with CFSA to provide outreach, training, and technical assistance to 
small-scale farmers, especially members of socially disadvantaged 
groups. This action is necessary to implement the provisions in the 
Food, Agriculture, Conservation, and Trade Act of 1990, title XXV, 
Section 2501 and the U.S. Department of Agriculture (USDA) 
appropriation acts which provide funding for this program. The intended 
effect of this action is to assist small farmers and socially 
disadvantaged farmers and ranchers by making them aware of programs 
available through the USDA. In addition, this rule amends 7 CFR chapter 
XVIII to reflect the abolishment of the Farmers Home Administration and 
the Rural Development Administration and the establishment of the Rural 
Housing and Community Development Service, the Rural Business and 
Cooperative Development Service, the Rural Utilities Service, and the 
Consolidated Farm Service Agency in the recent Department of 
Agriculture reorganization.

DATES: Interim rule effective December 27, 1994. Comments must be 
received by February 27, 1995.

ADDRESSES: Submit written comments, in duplicate, to the Office of the 
Chief, Regulations Analysis and Control Branch, Rural Economic and 
Community Development (RECD), U.S. Department of Agriculture, Room 
6348, South Agriculture Building, Washington, D.C. 20250. All written 
comments made pursuant to this notice will be available for public 
inspection during regular working hours at the above address.

FOR FURTHER INFORMATION CONTACT: John Just-Buddy, National Project 
Coordinator, Special Programs Unit, or Geraldine Herring, Program 
Analyst, Farmer Programs, Consolidated Farm Service Agency, USDA, room 
4929, South Agriculture Building, 14th and Independence Avenue, S.W., 
Washington, D.C. 20250, Telephone (202) 720-1636.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be not-significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by OMB.

Intergovernmental Consultation

    For reasons set forth in the final rule related to Notice 7 CFR, 
part 3015, subpart V (48 FR 29115, June 24, 1983) and FmHA Instruction 
1940-J, this program is not subject to the provisions of Executive 
Order 12372 which requires intergovernmental consultation with State 
and local officials.

Paperwork Reduction Act

    The information collection requirements contained in Sec. 1943.111 
have been approved by the Office of Management and Budget (OMB) and 
have been assigned OMB control number 0575-0156, under the provisions 
of 44 U.S.C. Chapter 35. The remaining information collection and 
recordkeeping requirements contained in this regulation will not become 
effective until approved by OMB, in accordance with the Paperwork 
Reduction Act of 1980. Please send written comments to the Office of 
Information Regulatory Affairs, OMB, Attention: Desk Officer for USDA, 
Washington, D.C. 20503. Please send a copy of your comments to Jack 
Holston, Agency Clearance Officer, USDA, RECD, Ag Box 0743, Washington, 
D.C. 20250.

Civil Justice Reform

    This document has been reviewed in accordance with Executive Order 
(E.O.) 12778. It is the determination of CFSA that this action does not 
unduly burden the Federal Court System in that it meets all applicable 
standards provided in section 2 of the Executive Order.

Programs Affected

    This action affects the following programs as listed in the Catalog 
of Federal Domestic Assistance:

10.406--Farm Operating Loans
10.407--Farm Ownership Loans

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of CFSA 
that this action does not constitute a major Federal action 
significantly affecting the quality of the human environment, and, in 
accordance with the National Environmental Policy Act of 1969, Public 
Law 91-190, an Environmental Impact Statement is not required.

Background

    In July 1993, Farmers Home Administration (FmHA) initiated, under 
Section 2501 of the Food, Agriculture, Conservation, and Trade Act of 
1990, the Outreach and Assistance Grants for Socially Disadvantage 
Farmers and Ranchers program. The program was established by an 
internal funds transfer, in the amount of $1 million received on August 
13, 1993, from Extension Service.
    A Notice was published in the Federal Register on July 2, 1993, [58 
FR 35911-35914], Outreach and Assistance Grants for Socially 
Disadvantaged Farmers and Ranchers, and no adverse comments were 
received. The Notice was to solicit recipients and give guidance to 
eligible applicants on submitting proposals for the program.

Discussion of Interim Rule

    Outreach and Assistance Grants for Socially Disadvantaged Farmers 
and Ranchers is authorized under Section 2501 of the Food Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279). Three million 
dollars will remain available until expended. It was the intent of 
Congress to have funds available to provide outreach and technical 
assistance to encourage and assist socially disadvantaged farmers and 
ranchers to own and operate farms and ranches and to participate in 
agricultural programs. This assistance should enable socially 
disadvantaged farmers and ranchers to obtain information on application 
and bidding procedures, farm management, and other essential 
information to participate in agricultural programs.
    The definition of Agricultural programs contained in 1943.104 of 
this subpart is based on the programs authorized by the statutes 
referenced in Section 2501 (e)(3) of the FACT Act. As authorized by 
Section 2501 (e)(3)(G), FmHA has designated additional USDA programs as 
Agricultural program based on its belief that the participation of 
socially disadvantaged farmers and ranchers in these programs will 
serve an important public purpose. The definition of Agricultural 
program references many of USDA's programs, however, the list is not 
intended to be all inclusive. Rather, the regulation intends to 
increase participation by socially disadvantaged farmers and ranchers 
in all USDA programs which are agricultural in nature. However, because 
the program is carried out by CFSA employees, the outreach efforts by 
CFSA personnel to recipients will require the personnel to provide 
information about CFSA agricultural loans only until such time as 
information on the other USDA agricultural programs becomes available.

Need for the Interim Rule:

     To implement, this year, a program that directly addresses 
the decline of minority farmers and ranchers.
     To immediately put into effect what is a clear and 
pressing goal of the Administration. On November 1, 1993, President 
Clinton issued Executive Order 12876, that directs the Government to 
support Historically Black Colleges and Universities (HBCU's) and to 
provide opportunities to participate in and benefit from federal 
programs. These institutions are a major beneficiary of this funding.
     In addition, under Section 2501, Outreach and Assistance 
for Socially Disadvantaged Farmers and Ranchers, non-HBCU's entities, 
i.e., Indian Tribal community colleges and Hispanic serving post-
secondary educational institutions will be in the population served.
     To allow funds to be used in FY 95 that will provide 
assistance in advance of planting and building for the upcoming crop 
year.
     The application of this program will help in development 
of the components in the '95 Farm Bill aimed at stabilizing socially 
disadvantaged family farmers.
     As services are consolidated and agencies change as a 
result of reorganization of USDA, the socially disadvantaged 
population, whom these funds are targeted at, will be able to receive 
the necessary assistance to understand and gain access to the newly 
reorganized USDA.

    It is the policy of this Department that rules relating to public 
property, loans, grants, benefits, or contracts will be published for 
comment not withstanding the exemption of 5 U.S.C. 553. However, the 
Department is publishing this rule as an interim rule which will take 
effect immediately upon publication in the Federal Register without 
securing prior public comment.
    The Agency is taking this action because the funds which will be 
distributed in the fiscal year 1995 are not being distributed under a 
typically new action or proposal which will affect the public. Rather 
the funds will go to organizations whose five years' plans were 
selected for funding pursuant to the July 2, 1993, Notice so that the 
organizations can continue to provide information and assistance to 
socially disadvantaged farmers and ranchers. Moreover, since that 
Notice provided the criteria for obtaining funding, the organizations 
which are affected by this action (which contains similar requirements) 
have actual notice of the applicable standards.
    Organizations whose proposals were not selected for funding in 1993 
and organizations submitting new proposals are not immediately affected 
by this action because they will not receive funding in this fiscal 
year. Also, these organizations will have the opportunity to comment on 
the interim rule because their comments will be considered before any 
truly new money could be distributed in the fiscal year 1996. Only 
$3,000,000 was appropriated for this program for the fiscal year 1994, 
and $2,995,000 for the fiscal year 1995. The same amount may not be 
appropriated in subsequent years. However, it is the Agency's 
expectation that funds will be appropriated for this program either as 
a separate item or as part of the general appropriations for the Agency 
in the future years. Therefore, the interim rule establishes guidelines 
for administering the program for future years.

Program Description

    1. The regulation being developed embodies the content of the 
original notice, published on July 2, 1993. The interested parties are 
fully aware of the procedures and standards intended for this program.
    2. The program's objective is to reverse, through the use of the 
Outreach Training and Technical Assistance Program, the decline of 
socially disadvantaged farmers and ranchers across the United States.

     This outcome will be reached by encouraging and assisting 
socially disadvantaged farmers and ranchers to own and operate their 
own farms, participate in agricultural programs, and become an integral 
part of the agricultural community.
     The recipients of these grants will provide services to 
socially disadvantaged farmers and ranchers and small farmers through 
outreach training and technical assistance in farm and ranch 
management, recordkeeping, marketing techniques and in testing 
innovative solutions to existing or anticipated issues or problems they 
may encounter.

    Under the interim rule, CFSA will solicit proposals, and five-year 
plans to be funded on a competitive basis. The solicitation is 
encouraged from community-based organizations, 1890 Land Grant 
colleges, including Tuskegee University, Indian Tribal Community 
Colleges and Alaska Native cooperative colleges, Hispanic serving post-
secondary educational institutions, and other post-secondary 
educational institutions with demonstrated experience in providing 
agriculture education or other agricultural related services to 
socially disadvantaged family farmers and ranchers in their region.
    The proposals will be evaluated by a panel of Agency technical 
experts to determine which proposals are most meritorious. The panel of 
Agency technical experts are necessary to evaluate what is expected to 
be a variety of very technical proposals. The evaluation panel will 
make recommendations to the appropriate Agency official to be forwarded 
to the Agency Head, who will consult with, if necessary, the Secretary 
of USDA before a final decision on awarding the grants or cooperative 
agreements is made.
    To assure a consistency in the evaluation process the interim rule 
establishes a set of evaluation criteria to assure the proposal is 
consistent with the intent of the program and is worth the funds that 
are to be spent on the project.
    The accounting for the funds awarded for the cooperative or other 
agreement will be subject to the normal rules for such agreements 
within USDA as given in part 3016 of this title. The proposed 
application format is used to assure that sufficient information is 
obtained to complete an agreement as given in part 3016 of this title. 
In addition, the application format is similar to that used by other 
USDA Agencies for their competitive grants programs.

List of Subjects in 7 CFR Part 1943

    Credit, Loan Programs--Agriculture.

    Accordingly, 7 CFR chapter XVIII and part 1943 are amended as 
follows:
    1. The heading of 7 CFR chapter XVIII is revised to read as 
follows:
CHAPTER XVIII--RURAL HOUSING AND COMMUNITY DEVELOPMENT SERVICE, RURAL 
BUSINESS AND COOPERATIVE DEVELOPMENT SERVICE, RURAL UTILITIES SERVICE, 
AND CONSOLIDATED FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
    2. In 7 CFR chapter XVIII (consisting of parts 1800-2099), 
everywhere ``Farmers Home Administration'', ``FmHA'', ``FHA'', ``Rural 
Development Administration'', or ``RDA'' are mentioned add the 
following immediately thereafter ``or its successor agency under Public 
Law 103-354''.

PART 1943--FARM OWNERSHIP, SOIL AND WATER AND RECREATION

    3. The authority citation for part 1943 is revised to read as 
follows:

    Authority: 7 U.S.C. 1989; 42 U.S.C. 1480; 5 U.S.C. 301; 7 CFR 
2.23 and 2.70.

    4. Subpart C of part 1943 is added to read as follows:

PART 1943--FARM, OWNERSHIP, SOIL AND WATER AND RECREATION

Subpart C--Small Farmer Outreach Training and Technical Assistance 
Program
Sec.
1943.101  General.
1943.102  Objectives.
1943.103  Project period.
1943.104  Definitions.
1943.105  Eligible entities.
1943.106-1943.110  [Reserved]
1943.111  Process for consideration.
1943.112-1943.114  [Reserved]
1943.115  Authorized use of funds.
1943.116-1943.125  [Reserved]
1943.126  Other applicable Federal statutes - and regulations that 
apply.
1943.127  Fund disbursement.
1943.128  Financial management systems and - reporting requirements.
1943.129-1943.135  [Reserved]
1943.136  Standards of conduct for employees - of recipient.
1943.137  Monitoring compliance and penalty for - noncompliance.
1943.138-1943.140  [Reserved]
1943.141  Nondiscrimination.
1943.142  Environmental requirements.
1943.143-1943.150  [Reserved]


Sec. 1943.101  General.

    This subpart provides procedures for administration of the Small 
Farmer Outreach Training and Technical Assistance Program whereby an 
1890 or other eligible educational institution or community-based 
organization as referenced in Sec. 1943.105 of this subpart, also 
referred to as the recipient, enters into a grant, cooperative, or 
other agreement with the Consolidated Farm Service Agency (CFSA) to 
provide outreach, training, and technical assistance to members of 
socially disadvantaged groups to own and operate farms and ranches and 
to participate in agricultural programs.


Sec. 1943.102  Objectives.

    To meet the objectives of the program referenced in paragraphs (a) 
and (b) of this section, CFSA will fund grant agreements, cooperative 
agreements, or enter into Memorandums of Understanding (MOU) with 
recipients as referenced in Sec. 1943.105 of this subpart, for Small 
Farmer Outreach Training and Technical Assistance Projects which are 
determined to meet the objectives of the program:
    (a) The long-term objective of the Small Farmer Outreach Training 
and Technical Assistance Program is to keep small farmers, especially 
those who are members of socially disadvantaged groups, on the farm and 
strengthen the rural economy.
    (b) An immediate objective of the Small Farmer Outreach Training 
and Technical Assistance Program is to encourage and assist members of 
socially disadvantaged groups to own and operate farms and ranches and 
to participate in agricultural programs.


Sec. 1943.103  Project period.

    A cooperative agreement or other agreement will specify a project 
for a period generally of 5 years, with an option for renewal up to the 
5-year period, subject to the availability of funds or termination of 
the project by mutual agreement or for cause.


Sec. 1943.104  Definitions.

    For the purpose of the Small Farmer Outreach Training and Technical 
Assistance Program, the following definitions are applicable:
    Agricultural programs. Eligible programs shall include, but are not 
limited to, one or more of the following programs: Agricultural 
conservation program, programs comprising the environmental 
conservation acreage reserve program (ECARP), conservation technical 
assistance program, emergency conservation program, forestry incentives 
program, Great Plains Conservation Program, integrated farm management 
option program, price support and production adjustment programs, rural 
environmental conservation program, soil survey program, and water bank 
program; also the farm loan programs (farm ownership, operating, soil 
and water, and emergency loans) of the CFSA.
    Awarding official. The Administrator of the CFSA or designee.
    Community-based organization. Those nonprofit, nongovernment 
organizations with a well defined constituency that includes all or 
part of a particular community, e.g., communities consisting of 
socially disadvantaged farmers and ranchers. Socially disadvantaged 
farmers and ranchers must play a role in the development and 
implementation of any program or project undertaken by the 
organization.
    Cooperative agreement. The same meaning as ``grant,'' except that, 
at the time a cooperative agreement is awarded, substantial involvement 
is anticipated between CFSA, acting for the Federal Government, and the 
recipient during performance under the agreement. (Refer to Exhibit A 
of FmHA Instruction 1943-C (available in any State office).)
    Grant. For purposes of this regulation, an award by CFSA, acting 
for the Federal Government, of money to the recipient with the 
following characteristics:
    (1) The principal purpose of the award is to accomplish a public 
purpose authorized by statute, rather than acquisition, by purchase, 
lease, or barter, of property or services for the direct benefit or use 
of the Federal Government; and
    (2) At the time an award is made, no substantial involvement is 
anticipated between CFSA, acting for the Federal Government, and the 
recipient.
    Memorandum of Understanding (MOU). For purposes of this regulation, 
a documented plan between CFSA and the recipient or recipients for 
carrying out their separate activities in a project of mutual interest. 
When an understanding is reached as to the area of operations and 
duties to be performed by the parties concerned, each party directs its 
own activities and utilizes its own resources. An MOU is not a fund 
obligation document since it does not directly involve a financial 
assistance transaction.
    Project. The total activities within the scope of the program as 
identified in the MOU, grant, cooperative or other agreement.
    Project Director. The individual who is responsible for the 
project, as designated by the recipient in the project proposal and 
approved by the awarding official. The project director will devote 
full time to the administration of the project.
    Project period. The total time approved by the awarding official 
for conducting the proposed project as outlined in an approved project 
proposal or the approved portions thereof and as specified in the 
cooperative or other agreement.
    Recipient. For purposes of this subpart, an entity as defined in 
Sec. 1943.105 of this subpart that has entered into an MOU, grant, or 
cooperative or other agreement with CFSA.
    Socially disadvantaged farmer or rancher. A farmer or rancher who 
is a member of a socially disadvantaged group. (For entity applicants, 
the majority interest has to be held by socially disadvantaged 
individuals.)
    Socially disadvantaged group. A group whose members have been 
subject to racial, ethnic, or gender prejudice because of their 
identity as members of a group without regard to their individual 
qualities. Socially disadvantaged groups consist of Women, African-
Americans, Native Americans, Alaskan Natives, Hispanics, Asians, and 
Pacific Islanders.


Sec. 1943.105  Eligible Entities.

    (a) CFSA will consider proposals only from:
    (1) 1890 Land-Grant Colleges, including Tuskegee University.
    (2) Indian tribal community colleges.
    (3) Alaska native cooperative colleges.
    (4) Hispanic-serving post-secondary educational institutions.
    (5) Other post-secondary educational institutions with demonstrated 
experience in providing agricultural education or other agriculturally-
related services to socially disadvantaged farmers or ranchers in their 
region.
    (6) Any community-based organization that:
    (i) Has demonstrated experience in providing agricultural education 
or other agriculturally-related services to socially disadvantaged 
farmers and ranchers;
    (ii) Provides documentary evidence of its past experience in 
working with socially disadvantaged farmers and ranchers during the 2 
years preceding its application for assistance; and
    (iii) Does not engage in activities prohibited under Section 
501(c)(3) of the Internal Revenue Code of 1986.
    (b) In addition to those entities referenced in paragraph (a) of 
this section, an applicant must:
    (1) Have adequate financial resources for performance and the 
necessary experience, organizational and technical qualifications, and 
facilities or a firm commitment, arrangement, or ability to obtain same 
(including any to be obtained through subagreement(s));
    (2) Have the ability to comply with the proposed or required 
completion schedule for the project;
    (3) Have an adequate financial management system and audit 
procedures that provide efficient and effective accountability and 
control of all funds, property, and other assets;
    (4) Have a satisfactory record of performance, including, in 
particular, any prior performance under grants, contracts, or 
cooperative agreements from the Federal Government; and
    (5) Otherwise be qualified and eligible to receive funding for a 
grant agreement, cooperative agreement, or other agreement under the 
applicable laws and regulations.


Secs. 1943.106-1943.110  [Reserved]


Sec. 1943.111  Process for consideration.

    (a) A program solicitation will be published in the Federal 
Register and such other publication(s) as deemed appropriate, as early 
as practicable every 5 years that funds will be available for new 
project use and at other appropriate times.
    (b) The project proposal must contain the following information:
    (1) Background and need for the project. Explain the circumstances 
which necessitate a Small Farmer Outreach Training and Technical 
Assistance Project within the State to serve small farmers, especially 
members of socially disadvantaged groups.
    (2) Objectives and goals proposed to meet the objectives. Clearly 
state the objectives of the project, which should be in line with the 
objectives of the program stated in Sec. 1943.102 of this subpart, and 
explain the goals proposed to meet the objectives.
    (3) Statement of Work, including staffing. Describe the plan of 
action for meeting the objective of the Small Farmer Outreach Training 
and Technical Assistance Program and the necessary staffing.
    (4) Proposed budget.
    (i) Submit a proposed budget for each of the 5 years, showing line-
by-line cost items for the proposed project. Include any in-kind 
contributions to be provided.
    (ii) Show all funding sources and itemize costs by the following 
line items: personnel costs, equipment, material and supplies, travel, 
and all other costs.
    (iii) Salaries of project personnel who will be working on the 
project may be requested in proportion to the effort that they will 
devote to the project.
    (iv) Funds may be requested under any of the line items listed 
above provided that the item or source for which support is requested 
is identified as necessary for successful conduct of the project, is 
allowable under the authorizing legislation and applicable Federal cost 
principles, and is not prohibited under any applicable Federal statute.
    (5) Identification of personnel. Incorporate into the proposal the 
resumes of all anticipated personnel, including the Project Director. 
Also discuss the experience, qualifications, and availability of all 
personnel, including the Project Director, to direct and carry out the 
project.
    (c) The State Office will review the proposal and forward the 
proposal to the National Office Project Manager, within 15 days of 
receipt, with the State Office's recommendations.
    (d) The National Office will make a preliminary review of the 
proposal and reserves the right to return it to the State Office with 
any questions or comments to be clarified by the 1890 or other eligible 
educational institution or community-based organization. A time period 
for resubmission will be specified.
    (e) All proposals from entities eligible for funding under 
Sec. 1943.105 of this subpart shall be evaluated for funding 
consideration. To assist in the evaluation and obtain the best possible 
balance of viewpoints for funding consideration, a proposal review 
panel will be used. The proposal review panel will be selected and 
organized to provide maximum expertise and objective judgment in the 
evaluation of proposals. The proposal review panel will use Form FmHA 
1943-2, ``EVALUATION--Small Farmer Outreach Training and Technical 
Assistance Program,'' to evaluate each proposal. The proposal review 
panel will evaluate each proposal against the five criteria using the 
following scale: Highly Responsive (5); Fully Responsive (3); 
Marginally Responsive (1); and Not Responsive (0). The criteria used by 
the proposal review panel and the criteria weights are:
    (1) Feasibility and Policy Consistency (3.5). Degree to which the 
proposal clearly describes its objective and evidences a high level of 
feasibility and consistency with United States Department of 
Agriculture (USDA) policy and CFSA mission.
    (2) Institutional Commitment (3.5). Degree to which the institution 
or organization is committed to the project, as shown by funds, in-kind 
services, or historical success in meeting the objectives of the 
program.
    (3) Number of Counties and Farmers Served (3.5). Degree to which 
the proposal reflects collaborative approaches in meeting with other 
agencies or organizations to enhance the objectives of the program. 
Also, the areas and number of farmers who would benefit from the 
services offered.
    (4) Socially Disadvantaged Applicants--Outreach (3.5). Degree to 
which the proposal contains efforts to reach persons identified as 
socially disadvantaged farmers and ranchers in designated counties.
    (5) Preparatory Features--Statement of Work (6.0). Degree to which 
the proposal reflects special innovative features to attract, interest, 
and improve the economical and social conditions of socially 
disadvantaged farmers and ranchers.
    (f) The final decision to award is at the discretion of the 
awarding official. The awarding official shall consider the ranking, 
comments, and recommendations from the proposal review panel and any 
pertinent information before deciding which applications to approve and 
the order of approval. The awarding official will notify in writing 
entities whose proposals are rejected. In accordance with Sec. 1900.55 
of subpart B of part 1900 of this chapter, appeal rights will be 
provided only to those entities identified as eligible under 
Sec. 1943.105 of this subpart.
    (g) After a decision regarding funding is made, CFSA and the 
recipient which is selected will enter into a grant or cooperative 
agreement. The awarding official will notify the recipient of approval 
and inform them of the necessary documents needed to execute the 
agreement. If no funding is involved, CFSA and the recipient will enter 
into an MOU.


Secs. 1943.112-1943.114  [Reserved]


Sec. 1943.115  Authorized use of funds. -

    Any funds authorized under this subpart will be used solely for the 
operation and administration of the Small Farmer Outreach Training and 
Technical Assistance Program specifically for the project under the 
cooperative or other agreement. There is no other authorized use of the 
funds. Eligible costs are limited to those line items specified in 
Sec. 1943.111 (b)(4) of this subpart.


Secs. 1943.116-1943.125  [Reserved]


Sec. 1943.126  Other applicable federal statutes and regulations that 
apply. -

    Several other Federal statutes and regulations apply to proposals 
considered for review or cooperative and other agreements awarded under 
the program. These include, but are not limited to the following:
    (a) 7 CFR part 1b--USDA Implementation of the National 
Environmental Policy Act;
    (b) 7 CFR part 3--USDA implementation of OMB Circular A-129 
regarding debt collection;
    (c) 7 CFR part 1.1--USDA implementation of the Freedom of 
Information Act;
    (d) 7 CFR part 15, Subpart A--USDA implementation of Title VI of 
the Civil Rights Act of 1964;
    (e) 7 CFR part 3015--USDA Uniform Federal Assistance Regulations, 
implementing OMB Directives (i.e., Circular Nos. A-110, A-21, and A-
122) and incorporating provisions of 31 U.S.C. 6301-6308 (formerly, the 
Federal Grant and Cooperative Agreement Act of 1977, Public Law No. 95-
224), as well as general policy requirements applicable to recipients 
of Departmental financial assistance;
    (f) 7 CFR part 3016--USDA Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments;
    (g) 7 CFR part 3017, as amended--USDA implementation of 
Governmentwide Debarment and Suspension (nonprocurement) and 
Governmentwide Requirements for Drug-Free Workplace (Grants);
    (h) 7 CFR part 3018--USDA implementation of New Restrictions on 
Lobbying. Imposes prohibitions and requirements for disclosure and 
certification related to lobbying on recipients of Federal contracts, 
grants, cooperative agreements, and loans;
    (i) 29 U.S.C. 794, Section 504--Rehabilitation Act of 1973, and 7 
CFR part 15B (USDA implementation of the statute), prohibiting 
discrimination based upon physical or mental handicap in Federally 
assisted programs; and
    (j) 35 U.S.C. 200 et seq.--Bayh-Dole Act, controlling allocation of 
rights to inventions made by employees of small business firms and 
domestic nonprofit organizations, including universities, in Federally 
assisted programs (implementing regulations are contained 37 CFR part 
401).


Sec. 1943.127  Fund disbursement. -

    The method of payment will be by reimbursement by Treasury check, 
and payment will be requested on Standard Form (SF) 1034, ``Public 
Voucher for Purchases and Services Other Than Personal,'' or SF-270, 
``Request for Advance or Reimbursement,'' whichever is applicable. 
Payments will be processed in accordance with 7 CFR parts 3015 and 
3016.


Sec. 1943.128  Financial management systems and reporting requirements.

    (a) Recipients must comply with standards for the financial 
management and reporting and program performance reporting found in 7 
CFR parts 3015 and 3016.
    (b) Recipients must provide to the State Office quarterly financial 
and program performance reports. The reports are due 30 days after the 
reporting period, and an original and two copies of each report will be 
submitted. The financial report will be presented on SF-269A, 
``Financial Status Report,'' and the financial and program performance 
reports will be prepared in accordance with 7 CFR parts 3015 and 3016.
    (c) The program performance report should also address progress on 
the activities under each of the areas of Outreach, Training, and 
Technical Assistance, as stipulated in the cooperative agreement or 
other agreement.
    (d) Within 30 days after receipt, the State Office will forward the 
reports to the National Office Project Manager, with the State Office's 
comments and recommendations.


Secs. 1943.129-1943.135  [Reserved]


Sec. 1943.136  Standards of conduct for employees of recipient.

    (a) Recipients must establish safeguards to prevent employees, 
consultants, or members of governing bodies from using their positions 
for purposes that are, or give the appearance of being, motivated by a 
desire for private financial gain for themselves or others such as 
those with whom they have family, business, or other ties. Therefore, 
recipients receiving financial support must have written policy 
guidelines on conflict of interest and the avoidance thereof. These 
guidelines should reflect State and local laws and must cover financial 
interests, gifts, gratuities and favors, nepotism, and other areas such 
as political participation and bribery. These rules must also indicate 
the conditions under which outside activities, relationships, or 
financial interests are proper or improper, and provide for 
notification of these kinds of activities, relationships, or financial 
interests to a responsible and objective recipient official. For the 
requirements of a code of conduct applicable to procurements under 
grants and cooperative agreements, see the procurement standards 
prescribed by 7 CFR 3015.181.
    (b) The rules of conduct must contain a provision for prompt 
notification of violations to a responsible and objective recipient 
official and must specify the type of administrative action that may be 
taken against an individual for violations.
    (c) A copy of the rules of conduct must be given to each officer, 
employee, board member, and consultant of the recipient who is working 
on the CFSA financed project, and the rules must be enforced to the 
extent permissible under State and local law or to the extent to which 
the recipient determines it has legal and practical enforcement 
capacity. The rules need not be formally submitted and approved by the 
awarding official; however, they must be made available for review upon 
request, for example, during a site visit.


Sec. 1943.137  Monitoring compliance and penalty for noncompliance.

    (a) CFSA monitoring. CFSA will monitor compliance of the Small 
Farmer Outreach Training and Technical Assistance projects through the 
reports received in accordance with Sec. 1943.128 of this subpart, 
through information received from field offices and the public, and may 
include on-site visits to observe the operation and administration of 
the program.
    (b) Audits. Recipients are subject to the audit requirements of 7 
CFR parts 3015 and 3016. An audit report will be submitted to the State 
Office annually in accordance with OMB Circular A-128, A-110, or A-133, 
whichever is applicable. The State Office will forward the audit to the 
National Office Project Manager, within 30 days after receipt, with the 
State Office's comments and recommendations.
    (c) Penalty for noncompliance. If the Administrator determines that 
a Small Farmer Outreach Training and Technical Assistance project does 
not meet or no longer meets the objective of the program, that there 
has been a violation of the cooperative or other agreement, that 
reporting requirements are not being met, or that funds are not being 
used only for the operation and administration of the Small Farmer 
Outreach Training and Technical Assistance Program, the awarding 
official is authorized to impose any penalties or sanctions established 
in 7 CFR parts 3015 and 3016. Penalties may include withholding 
payments, suspension of the cooperative agreement or other agreement, 
or termination for cause. If a penalty for noncompliance is enforced, 
the reason(s) will be stated in a letter to the recipient along with 
appeal rights pursuant to subpart B of part 1900 of this chapter.


Sec. Sec. 1943.138-1943.140  [Reserved]


Sec. 1943.141  Nondiscrimination. -

    The policies and regulations contained in subpart E of part 1901 of 
this chapter apply to grants and other agreements made under this 
subpart.


Sec. 1943.142  Environmental requirements.

    The policies and regulations contained in subpart G of part 1940 of 
this chapter apply to grants and other agreements made under this 
subpart.


Sec. Sec. 1943.143-1943.150  [Reserved]

    Dated: December 5, 1994.
Eugene Moos, ------
Under Secretary, Farm and Foreign Agricultural Services.
    Dated: December 5, 1994.
Bob J. Nash,------
Under Secretary, Rural Economic and Community Development.
[FR Doc. 94-30999 Filed 12-23-94; 8:45 am]
BILLING CODE 3410-07-U