[Federal Register Volume 60, Number 124 (Wednesday, June 28, 1995)]
[Rules and Regulations]
[Pages 33330-33332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15862]



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DEPARTMENT OF AGRICULTURE
Consolidated Farm Service Agency

7 CFR Parts 718, 790, and 791

Commodity Credit Corporation

7 CFR Parts 1413, 1414, 1415, and 1416

RIN 0560-AD 72, AD00


1994 Wheat, Feed Grains, Cotton and Rice Programs

AGENCIES: Consolidated Farm Service Agency and Commodity Credit 
Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The statutory requirements that relate to the feed grains, 
rice, upland and extra long staple cotton, and wheat programs were 
amended by the Agricultural Reconciliation Act of 1993 (the 1993 Act). 
An interim rule was published on November 16, 1994, (59 FR 59280) to 
set forth changes necessary to implement these provisions. Accordingly, 
this rule adopts the interim rule as final.

EFFECTIVE DATE: June 28, 1995.

FOR FURTHER INFORMATION CONTACT: Bruce D. Hiatt, Agricultural Program 
Specialist, CFSA, USDA, P.O. Box 2415, Washington, DC 20013-2415, 
telephone 202-690-2798.

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.

Final Regulatory Impact Analyses

    Final Regulatory Impact Analyses were prepared with respect to the 
programs for the 1994 crops of wheat, feed grains, cotton, and rice. 
Copies of the analyses are available to the public from Tom Witzig, 
CFSA-USDA, Room 3741, South Agriculture Building, 14th and 
Independence, P.O. Box 2415, Washington, DC 20013-2415.

Federal Assistance Numbers

    The titles and numbers of the Federal assistance programs, as found 
in the Catalog of Federal Domestic Assistance, to which this final rule 
applies are Cotton Production Stabilization--10.052; Feed Grain 
Production Stabilization--10.055; Wheat [[Page 33331]] Production 
Stabilization--10.058; and Rice Production Program--10.065.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this final rule since neither the Consolidated Farm 
Service Agency (CFSA) nor Commodity Credit Corporation (CCC) is 
required by 5 U.S.C. 553 or any other provision of the law to publish a 
notice of proposed rulemaking with respect to the subject matter of 
this rule.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an environmental assessment nor an 
Environmental Impact Statement is needed.

Executive Order 12778

    This final rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this final rule preempt State laws to 
the extent such laws are inconsistent with the provisions of this rule. 
The provisions of this rule are not retroactive. Before any judicial 
action may be brought concerning the provisions of this rule, the 
administrative remedies at 7 CFR part 780 must be exhausted.

Executive Order 12372

    This program/activity is not subject to the provisions of Executive 
Order 12372 which requires intergovernmental consultation with State 
and local officials. See the Notice related to 7 CFR part 3015, subpart 
V, published at 48 FR 29115 (June 24, 1983).

Paperwork Reduction Act

    The information collection requirements contained in these 
regulations have been approved by the Office of Management and Budget 
under the provisions of 44 U.S.C. chapter 35, and assigned OMB No. 
0560-0004 and 0560-0092.

Background
    The interim rule published on November 16, 1994 set forth 
amendments: to conform to the provisions of the 1993 Act; to make 
certain technical corrections; to delete references to obsolete 
provisions; to add references relating to current policy, to set forth 
the provisions for the Options Pilot Program (OPP) and Voluntary 
Production Limitation Program (VPLP); and to improve the operations of 
these programs through the 1994 through 1997 crop years.

Discussion of Comments

    No comments were received relevant to the publication of the 
interim regulation published on November 16, 1994. Agency review of the 
interim rule revealed that 7 CFR 1413.49 had been inadvertently left 
out of the interim rule.

List of Subjects in 7 CFR Part 1413

    Acreage allotments, Appeals, Feed grains, Price support programs, 
Reporting and recordkeeping requirements, Soil conservation.

    Accordingly, under the authority of 7 U.S.C. 1308, 1308a, 1309, 
1441-2, 1444-2, 1444f, 1445b-3a, 1461-1469; 15 U.S.C. 714b and 714c, 
the interim rule amending 7 CFR parts 718, 790, 791, 1413, 1414, 1415, 
and 1416 which was published at 59 FR 59280 on November 16, 1994, is 
adopted as a final rule with the following change:

PART 1413--FEED GRAIN, RICE, UPLAND AND EXTRA LONG STAPLE COTTON, 
WHEAT AND RELATED PROGRAMS

    1. The authority for part 1413 continues to read as follows:

    Authority: 7 U.S.C. 1308, 1308a, 1309, 1441-2, 1444-2, 1444f, 
1445-b-3a, 1461-1469, 15 U.S.C. 714b, and 714c.

    2. Subpart H is amended by adding a new Sec. 1413.49 to read as 
follows:

Subpart H--Program Agreement and Enrollment Provisions


Sec. 1413.49  Nature of agreement.

    (a) The agreement shall provide that the operator and each producer 
on the farm shall agree to limit the acreage of the crop planted for 
harvest and devote an eligible acreage of land to approved conservation 
uses as may be required by the commodity program for the crop as 
announced by the Secretary and as provided in this part. The agreement 
shall provide for recording the shares for division of payments for the 
crop. The operator shall agree to file timely a report of acreage on 
Form ASCS-578 accurately listing the ACR and the acreage of the program 
crop(s) planted for harvest on the farm, and such other acreages as are 
subject to the terms and conditions of the agreement.
    (b) CCC shall agree that harvested production of the crop shall be 
eligible for loans and purchases in accordance with parts 1421 and 1427 
of this chapter. CCC shall also agree that deficiency payments, if it 
is determined that a final deficiency payment will be greater than 
zero, and any applicable diversion payments shall be made to such 
operator and producers.
    (c) The agreement shall contain such other provisions as CCC 
determines appropriate to carry out programs established by this part.
    (d) The agreement shall provide for the payment of liquidated 
damages in the event that the operator or any other producers fail to 
comply with their obligations under the agreement. The purpose of an 
acreage reduction, or land diversion program is to obtain a reduction 
of acreage from the production of the applicable crops of commodities 
in order to adjust the total national acreage of such commodities to 
desirable goals. Once an agreement has been entered into between CCC 
and producers, USDA, and other segments of the agricultural community 
act based upon the assumption that the agreement will be fulfilled and 
the reduction in acreage will be obtained. The actions of CCC include 
budgeting and planning for programs in subsequent crop years. A 
producer's failure to comply with an agreement undermines the basis for 
these actions, damages the credibility of USDA's programs with other 
segments of the agricultural community, and requires additional 
expenditures in subsequent crop years to offset the effect of the 
increased production in the current crop year. While the adverse 
effects on CCC of the producer's failure to comply with an agreement 
are obvious, it would be impossible to compute the actual damages 
suffered by CCC.
    (e) Producers who elect to rescind an agreement to participate in 
an annual program, or producers who violate an agreement, and the COC 
makes no determination of good faith, must pay liquidated damages to 
CCC as provided in the CCC-477. Such producers shall be considered as 
nonparticipating in the acreage reduction program established for such 
crop.
    (f) If a producer violates the provisions of this part or the CCC-
477, and the COC determines a good faith effort was made to comply, 
standard payment reductions will apply. The reduction will be 
calculated as the difference between the reported and determined 
acreage of the crop, multiplied by the program payment yield, 
multiplied by 50 percent of the established price for the crop.
* * * * * [[Page 33332]] 
    Signed in Washington, DC on June 18, 1995.
Bruce R. Weber,
Acting Administrator, Consolidated Farm Service Agency, and Acting 
Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 95-15862 Filed 6-27-95; 8:45 am]
BILLING CODE 3410-05-P