[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Rules and Regulations]
[Pages 35102-35107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16999]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 301
[Docket No. 96-016-7]
Karnal Bunt; Compensation
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Interim rule and request for comments.
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SUMMARY: We are amending the regulations to provide compensation for
certain growers and handlers, owners of grain storage facilities, and
flour millers in order to mitigate losses and expenses incurred because
of Karnal bunt. The payment of compensation is necessary in order to
reduce the economic impact of the Karnal bunt quarantine on affected
wheat growers and other individuals, and to help obtain cooperation
from affected individuals in Karnal bunt eradication efforts.
DATES: Interim rule effective June 27, 1996. Consideration will be
given only to comments received on or before September 3, 1996.
ADDRESSES: Please send an original and three copies of your comments to
Docket No. 96-016-7, Regulatory Analysis and Development, PPD, APHIS,
suite 3C03, 4700 River Road
[[Page 35103]]
Unit 118, Riverdale, MD 20737-1238. Please state that your comments
refer to Docket No. 96-016-7. Comments received may be inspected at
USDA, room 1141, South Building, 14th Street and Independence Avenue
SW., Washington, DC, between 8 a.m. and 4:30 p.m., Monday through
Friday, except holidays. Persons wishing to inspect comments are
requested to call ahead on (202) 690-2817 to facilitate entry into the
comment reading room.
FOR FURTHER INFORMATION CONTACT: Mr. Mike Stefan, Operations Officer,
Domestic and Emergency Operations, PPQ, APHIS, 4700 River Road Unit
134, Riverdale, MD 20737-1236, (301) 734-8247.
SUPPLEMENTARY INFORMATION:
Background
Karnal bunt is a serious fungal disease of wheat (Triticum
aestivum), durum wheat (Triticum durum), and triticale (Triticum
aestivum X Secale cereale), a hybrid of wheat and rye. Karnal bunt is
caused by the smut fungus Tilletia indica (Mitra) Mundkur and is spread
by spores. The spores can be carried on a variety of surfaces,
including plants and plant parts, seeds, soil, elevators, buildings,
farm equipment, tools, and even vehicles. Spores and the sporidia they
produce also can be windborne. Although the sporidia are fragile and
may be able to move only short distances, Teliospores are thought to
move longer distances.
Karnal bunt is a serious disease that can affect both yield and
grain quality when present at levels over 3 to 5 percent. It adversely
affects the color, odor, and palatability of flour and other foodstuffs
made from heavily infested wheat. Wheat containing a significant amount
of bunted kernels is reduced in quality. Karnal bunt does not present a
risk to human or animal health.
On March 8, 1996, Karnal bunt was detected in Arizona during a seed
certification inspection done by the Arizona Department of Agriculture.
On March 20, 1996, the Secretary of Agriculture signed a ``Declaration
of Extraordinary Emergency'' authorizing the Secretary to take
emergency action under 7 U.S.C. 150dd with regard to Karnal bunt within
the States of Arizona, New Mexico, and Texas. In an interim rule
effective on March 25, 1996, and published in the Federal Register on
March 28, 1996 (61 FR 13649-13655, Docket No. 96-016-3), the Animal and
Plant Health Inspection Service (APHIS) established the Karnal bunt
regulations (7 CFR 301.89-1 through 301.89-11), and quarantined all of
Arizona and portions of New Mexico and Texas because of Karnal bunt.
The regulations define regulated articles and restrict the interstate
movement of these regulated articles from the quarantined areas.
After the establishment of the regulations, Karnal bunt was
detected in lots of seed that were either planted or stored in certain
areas in California. On April 12, 1996, the Secretary of Agriculture
signed a ``Declaration of Extraordinary Emergency'' authorizing the
Secretary to take emergency action under 7 U.S.C. 150dd with regard to
Karnal bunt within California. In an interim rule effective on April
19, 1996, and published in the Federal Register on April 25, 1996,
APHIS also quarantined portions of California because of Karnal bunt
(61 FR 18233-18235, Docket No. 96-016-5).
Under an extraordinary emergency, the Secretary is authorized, but
not obligated, to compensate growers and other persons for economic
losses incurred by them as a result of the quarantine or emergency
action. This interim rule amends the Karnal bunt regulations to provide
compensation for certain growers and handlers, owners of grain storage
facilities, and flour millers in order to mitigate losses and expenses
incurred because of actions taken by the Department regarding Karnal
bunt. We are adding a new Sec. 301.89-12 that lists classes of
individuals who are eligible to receive compensation for actions taken
or losses experienced because of actions taken by the Department
regarding Karnal bunt. This section also sets forth the rates of
compensation and explains how to make a claim for compensation,
including what forms need to be filed and what documents need to be
provided by the claimant to the United States Department of Agriculture
(USDA).
Compensation for Destroyed Crops in New Mexico and Texas
Approximately 4,000 acres of planted wheat in New Mexico and Texas
were traced back to seed produced in Arizona and known to be
contaminated with Karnal bunt. Under an extraordinary emergency, the
Secretary of Agriculture has the authority to order the destruction of
crops (see 7 U.S.C. 150dd(b)). On April 1, 1996, the Secretary signed a
memorandum authorizing APHIS to issue orders for the destruction by
plowing of all wheat crops in New Mexico and Texas that were planted
with seed known to be contaminated with Karnal bunt. Destruction of
these crops was determined to be beneficial in preventing the spread of
Karnal bunt because the crops in New Mexico and Texas were at an early
stage of growth, before Karnal bunt infection of the current crop could
occur.
The vehicle for issuing destruction orders is an Emergency Action
Notification (PPQ Form 523) given by an APHIS inspector to the owner of
the wheat crop that is to be destroyed. Pursuant to the Secretary's
authorization, APHIS began issuing Emergency Action Notifications for
the destruction of contaminated wheat fields in New Mexico and Texas on
April 1, 1996.
Consequently, we are listing as eligible for compensation growers
in New Mexico and Texas who have destroyed crops of wheat pursuant to
an Emergency Action Notification (PPQ Form 523) issued by an inspector.
Compensation for these individuals has been set at the rate of $300 per
acre of destroyed crop. The rate of $300 per acre includes a payment of
$275 per acre compensation for expenses incurred by the owner of the
wheat crop in planting and cultivating the contaminated wheat (this is
based on the average cost of expenses such as seed, fertilizer,
irrigation, and employee expenses) plus $25 per acre to pay for crop
destruction and soil preparation for replanting the plowed acres with a
new crop.
To receive compensation, the growers must complete and submit to an
inspector whichever of the following three forms are applicable, as
determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form
73. The forms will be furnished by USDA. ASCS Form 574 is a form used
to request acreage or disaster credit, and will document a record of
management practices for the crop and the reason for its destruction.
ASCS Form 578 is a form used to document a farmer's total acreage and
how the farmer uses that acreage. Most affected farmers will already
have a copy of ASCS Form 578 on file with the USDA in connection with
their enrollment in federal crop insurance or other USDA programs, but
will have to revise this form to reflect that the crop on some or all
of the acreage listed on the form has been ordered destroyed by an
inspector because of Karnal bunt. FCI Form 73 will be used to certify
the number of destroyed acres of wheat and the reason for their
destruction.
Compensation for Lost Value of Wheat in the Quarantined Area
Most other wheat grown in the quarantined areas, especially in the
quarantined areas outside of New Mexico and Texas, was past the early
stage of growth at which plowing the
[[Page 35104]]
crop under would prevent infection of the current crop with Karnal
bunt. Much of the wheat grown in the quarantined area is under contract
with millers or grain handlers for processing or for use as seed. Under
the Karnal bunt regulations, growers and handlers in the quarantined
area are restricted from selling wheat for propagative purposes (seed)
and from moving wheat outside of the quarantined area. This means that,
in most cases, growers and handlers in the quarantined area cannot move
their wheat to the market for which it was contracted.
Growers and handlers may export their wheat to another country or
may market the wheat within the quarantined area, where it will most
likely be processed as animal feed. The value for wheat to be used as
animal feed is typically lower than the value for wheat used for
propagative purposes or for use in products for human consumption.
Further, many growers and handlers are finding it difficult to market
wheat from the quarantined area, whether or not it has tested positive
for Karnal bunt infection, because wheat from the quarantined area may
incur additional costs for handling and treatment. This may force some
growers and handlers to accept a lower price for their wheat than they
would have received if the area had not been quarantined for Karnal
bunt.
Therefore, we are listing as eligible for compensation growers and
handlers of wheat grown in the quarantined area for the loss in value
of their wheat due to the quarantine for Karnal bunt. We will
compensate for the loss in value of wheat testing negative and wheat
testing positive from the quarantined area. Compensation calculations
will be different depending on the purpose for which the wheat was
grown and the purpose for which the wheat is eventually sold.
Compensation calculations will also be different for growers and for
handlers.
This rule only includes calculations for compensation of wheat
grown for nonpropagative purposes (meaning it was not grown for use as
seed). We do intend to compensate seed producers for the loss in value
of their seed. However, we are still developing protocols for seed
movement and disposition, and those protocols will affect how that
compensation will be calculated. A rule providing for compensation for
seed producers will be published at a later date. The calculations for
nonpropagative wheat compensation are discussed below.
Growers of Nonpropagative Wheat
For growers of wheat grown under contract for nonpropagative
purposes in the quarantined area, the amount of compensation will be
based on the difference between the contracted price and the salvage
value (described below). Salvage value for wheat grown under contract
will be as follows:
If the contracted wheat is tested by APHIS and found positive for
Karnal bunt, and the positive wheat is sold for use as animal feed,
salvage value equals $6 per hundred weight or $3.60 per bushel for all
classes of wheat. This value is based on the feeding value of wheat
relative to other feed grains, in addition to considering the costs of
required treatment of positive wheat for use in livestock feed and the
costs of transporting wheat to processing centers and to feeding
locations. If the positive wheat is sold for uses other than animal
feed (e.g., milling or export), salvage value equals whichever price is
higher of the following: the average price paid in the region of the
quarantined area where the wheat is sold for the relevant class of
wheat for the period between May 1 and June 30, 1996; or, $3.60 per
bushel. (Relevant class of wheat means the type of wheat, for example,
Durum or Hard red winter wheat. Because these classes of wheat are
suitable for different products, they command different market prices.)
If contracted wheat is tested by APHIS and found negative for Karnal
bunt, regardless of the eventual use of the wheat, salvage value equals
the same as for positive contracted wheat sold for uses other than
animal feed.
For growers of nonpropagative wheat not grown under contract,
compensation will be based on the difference between the estimated
market price for the relevant class of wheat and the salvage value.
Salvage values will be the same as described above for contracted
wheat. The estimated market price is intended to represent what the
market price would have been if there were no quarantine for Karnal
bunt, and will be calculated by APHIS for each class of wheat, taking
into account the prices offered by relevant terminal markets (animal
feed, milling, or export) for the period between May 1 and June 30,
1996, with adjustments for transportation and other handling costs.
For nonpropagative wheat, whether grown under contract or not,
whether positive or negative, compensation will not exceed $2.50 per
bushel.
To receive compensation, the grower must complete and submit to an
inspector whichever of the following three forms are applicable, as
determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form
73. These are the same forms described above for claims for destroyed
crops, and will be furnished by USDA. In addition, the grower must
submit a copy of the contract the grower has for the wheat, if the
wheat was under contract, and a copy of the receipt for the final sale
of the wheat, showing the intended use for which the wheat was sold.
Handlers of Nonpropagative Wheat
There are two circumstances under which handlers will be eligible
for compensation: (1) Handlers who honor contracts by paying the grower
full contract price on wheat grown for nonpropagative purposes in the
quarantined area that was tested by APHIS and found positive for Karnal
bunt; and (2) handlers who purchase contracted or noncontracted wheat
grown for nonpropagative purposes in the quarantined area that was
tested by APHIS and found negative for Karnal bunt prior to purchase,
but which is tested by APHIS and found positive for Karnal bunt after
purchase. The amount of compensation for both these circumstances will
be based on the difference between the estimated market price (as
described previously in this document) and the salvage value. Salvage
value will be the same as for grower compensation (described previously
in this document). However, compensation will not exceed $2.50 per
bushel under any circumstances.
The calculations described above do not provide for compensation
for handlers who purchase positive wheat not grown under contract, or
who purchase negative wheat that does not later test positive. Handlers
who purchase positive wheat not grown under contract, or for less than
contract price, will likely pay a very low price for the wheat, so that
compensation for loss in value will not be necessary. Handlers who
purchase negative wheat that continues to test negative after purchase
will likewise not experience a loss in value for the wheat compared to
the price they paid for it. Handlers who purchase negative wheat that
later tests positive would, however, experience a loss in expected
value because positive wheat is worth less than negative wheat.
To receive compensation, the handler must complete and submit to an
inspector whichever of the following three forms are applicable, as
determined by the inspector: ASCS Form 574, ASCS Form 578, and FCI Form
73. The forms will be furnished by USDA. In addition, the handler must
submit a copy of the contract the
[[Page 35105]]
handler had with the grower for the wheat, if the wheat was under
contract, to verify that the contract was honored. If the wheat was not
purchased under contract, the handler must submit a copy of the receipt
for the final sale of the wheat, showing the intended use for which the
wheat was sold.
If a grower or handler of nonpropagative wheat in the quarantined
area is not able to or elects not to sell their wheat, they will be
eligible to receive compensation at the rate of $2.50 per bushel.
However, compensation will only be paid if the grower or handler has
destroyed the wheat by burying it in a sanitary landfill. To receive
compensation, the grower or handler must complete and submit to an
inspector whichever of the following three forms are applicable, as
determined by an inspector: ASCS Form 574, ASCS Form 578, and FCI Form
73. The forms will be furnished by USDA. The grower or handler must
also submit a receipt from a sanitary landfill verifying how much wheat
was buried.
Compensation for Decontamination of Grain Storage Facilities
Owners of grain storage facilities that have been decontaminated
pursuant to an Emergency Action Notification (PPQ Form 523) issued by
an inspector are eligible for compensation. These grain storage
facilities have been determined by APHIS to be contaminated with Karnal
bunt. We estimate that the cost of decontamination, which consists of
treatment with a chlorine solution and water, detergent and water,
steam, or fumigation with methyl bromide in accordance with
Sec. 301.89-11 of the regulations, can range between $30,000 to $50,000
per facility.
We will compensate owners of contaminated grain storage facilities
on a one time only basis for up to 50 percent of the cost of
decontamination. However, compensation will not exceed $20,000 per
premise. We will add a definition for ``premise'' to Sec. 301.89-1 to
mean ``all structures, conveyances, or materials associated with a
grain storage facility at a single location.'' Compensation is limited
to the direct costs of decontaminating facilities. General clean-up,
repair, and refurbishment costs are excluded from compensation.
To receive compensation, owners of grain storage facilities must
submit to the inspector records demonstrating that decontamination was
performed on all structures, conveyances, or materials ordered to be
decontaminated by the Emergency Action Notification on the facility
premise. The records must include a copy of the Emergency Action
Notification, contracts with individuals or companies hired to perform
the decontamination, receipts for equipment and materials purchased to
perform the decontamination, time sheets for employees of the grain
storage facility who perform actions related to the decontamination,
and any other documentation that helps show decontamination has been
completed and its cost.
Compensation for Treating Millfeed
In accordance with compliance agreements established between APHIS
and flour millers located in high-risk areas (areas where there is a
high risk of spreading Karnal bunt into surrounding areas), millfeed (a
byproduct of milling wheat into flour) produced from wheat from the
quarantined area must be treated using a heat process. This treatment
adds approximately $35 per short ton to the cost of producing millfeed
products, such as animal feed. It is unlikely that millers would
purchase wheat from the quarantined area without compensation for the
cost of millfeed treatment. Loss of these markets would further lower
the value of wheat in the quarantined area.
Flour millers who heat-treat millfeed made from wheat produced in
the quarantined area are eligible to receive compensation at the rate
of $35.00 per short ton of millfeed. The amount of millfeed compensated
will be calculated by multiplying the weight of wheat that is milled
from the quarantined area by 25 percent (the average percent of
millfeed derived from a short ton of grain). We will calculate the
amount of millfeed to be compensated in this manner because many
millers routinely mix together different types of wheat from different
areas. The resulting millfeed would be a product of wheat from
quarantined and nonquarantined areas. However, we will only compensate
for the cost of treating millfeed made from wheat produced in the
quarantined area. Therefore, the amount compensated cannot be
determined by simply weighing the total amount of millfeed at the end
of the milling process.
To claim compensation, flour millers must submit to an inspector a
copy of the limited permit under which the wheat was moved to the mill,
in order to show that the wheat was produced in a quarantined area, and
a copy of the bill of lading for the wheat, showing the weight of the
wheat in short tons. Flour millers must also submit verification that
the millfeed produced from wheat from the quarantined area was properly
heat treated.
We believe the compensations described above will help ensure
cooperation from affected individuals in APHIS' efforts to eliminate
the spread of Karnal bunt and will help mitigate the economic impact of
the Karnal bunt quarantine and emergency actions on affected wheat
growers and others within the industry.
Miscellaneous
We are also making a miscellaneous change to the Karnal bunt
regulations. Section 301.89-2(d) lists plants and plant parts of the
species Triticum aestivum X Seale cereals as regulated articles.
However, the correct scientific name for this species is Triticum
aestivum X Secale cereale. We are amending Sec. 301.89-2(d) to correct
this error.
Emergency Action
In accordance with 7 U.S.C. 150dd(b)(2), the amount of
compensation, if any, which the Secretary determines may be paid to
individuals for economic losses incurred because of the declaration of
an extraordinary emergency shall be final.
The Administrator of the Animal and Plant Health Inspection Service
has determined that an emergency exists that warrants publication of
this interim rule without prior opportunity for public comment.
Immediate action is necessary to provide compensation for those persons
who were and are required to take emergency actions to eliminate the
spread of Karnal bunt or who experience economic losses because of the
quarantine for Karnal bunt.
Because prior notice and other public procedures with respect to
this action are impracticable and contrary to the public interest under
these conditions, we find good cause under 5 U.S.C. 553 to make it
effective upon signature. We will consider comments that are received
within 60 days of publication of this rule in the Federal Register.
After the comment period closes, we will publish another document in
the Federal Register. It will include a discussion of any comments we
receive and any amendments we are making to the rule as a result of the
comments.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. For this
action, the Office of Management and Budget has waived its review
process required by Executive Order 12866.
This action amends the regulations to provide compensation for
certain
[[Page 35106]]
growers and handlers, owners of grain storage facilities, and flour
millers in order to mitigate losses and expenses incurred because of
the Karnal bunt quarantine and emergency actions. This emergency
situation makes compliance with section 603 and timely compliance with
section 604 of the Regulatory Flexibility Act (5 U.S.C. 603 and 604)
impracticable. This rule may have a significant economic impact on a
substantial number of small entities. If we determine this is so, then
we will discuss the issues raised by section 604 of the Regulatory
Flexibility Act in our Final Regulatory Flexibility Analysis.
Executive Order 12372
This program/activity is listed in the Catalog of Federal Domestic
Assistance under No. 10.025 and is subject to Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. (See 7 CFR part 3015, subpart V.)
Executive Order 12778
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule: (1) Preempts all State and local laws and
regulations that are inconsistent with this rule; (2) has no
retroactive effect; and (3) does not require administrative proceedings
before parties may file suit in court challenging this rule.
Paperwork Reduction Act
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection or
recordkeeping requirements included in this interim rule have been
approved by the Office of Management and Budget (OMB). The assigned OMB
control numbers are as follows: for PPQ Form 523 the number is 0579-
0121; for ASCS Form 574 the number is 0563-0003; for ASCS Form 578 the
number is 0560-0004; and for FCI Form 73 the number is 0563-0033.
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant diseases and pests, Quarantine,
Reporting and recordkeeping requirements, Transportation.
Accordingly, 7 CFR part 301 is amended as follows:
PART 301--DOMESTIC QUARANTINE NOTICES
1. The authority citation for part 301 continues to read as
follows:
Authority: 7 U.S.C 150bb, 150dd, 150ee, 150ff, 161, 162, and
164-167; 7 CFR 2.22, 2.80, and 371.2(c).
Sec. 301.89-2 [Amended]
2. In Sec. 301.89-1, a definition for Premise is added in
alphabetical order to read as follows:
Sec. 301.89-1 Definitions.
* * * * *
Premise. All structures, conveyances, or materials associated with
a grain storage facility at a single location.
* * * * *
3. In Sec. 301.89-2, in paragraph (d), the entry for Triticale is
amended by removing the words ``Seale cereals'' and adding the words
``Secale cereale'' in their place.
4. A new Sec. 301.89-12 is added to read as follows:
Sec. 301.89-12 Compensation.
The following individuals are eligible to receive compensation from
the United States Department of Agriculture (USDA) for losses or
expenses incurred because of the Karnal bunt quarantine and emergency
actions, as follows:
(a) Growers who have destroyed crops. Growers in New Mexico and
Texas who have destroyed crops of wheat pursuant to an Emergency Action
Notification (PPQ Form 523) issued by an inspector are eligible to be
compensated at the rate of $300 per acre of destroyed crop. To claim
compensation, the grower must complete and submit to an inspector
whichever of the following three forms are applicable, as determined by
the inspector: ASCS Form 574, ASCS Form 578, and FCI Form 73. The forms
will be furnished by USDA.
(b) Growers and handlers who sell nonpropagative wheat grown in the
quarantined area. Growers and handlers who sell nonpropagative wheat
grown in the quarantined area are eligible to be compensated for the
loss in value of their wheat due to the quarantine for Karnal bunt, as
follows:
(1) Growers who sell nonpropagative wheat. For growers who sell
wheat grown for nonpropagative purposes, compensation will be as
described in paragraphs (b)(1)(i) and (b)(1)(ii) of this section.
However, compensation will not exceed $2.50 per bushel under any
circumstances.
(i) If the wheat was grown under contract, compensation will equal
the contracted price minus the salvage value, as described in paragraph
(b)(3) of this section.
(ii) If the wheat was not grown under contract, compensation will
equal the estimated market price for the relevant class of wheat
(meaning type of wheat, such as Durum or Hard red winter) minus the
salvage value, as described in paragraph (b)(3) of this section. The
estimated market price will be calculated by APHIS for each class of
wheat, taking into account the prices offered by relevant terminal
markets (animal feed, milling, or export) for the period between May 1
and June 30, 1996, with adjustments for transportation and other
handling costs.
(2) Handlers who sell nonpropagative wheat. Handlers are eligible
to be compensated only under the circumstances described in paragraphs
(b)(2)(i) and (b)(2)(ii) of this section. Compensation for both
circumstances will equal the estimated market price for the relevant
class of wheat (meaning type of wheat, such as Durum or Hard red
winter) minus the salvage value, as described in paragraph (b)(3) of
this section. The estimated market price will be calculated by APHIS
for each class of wheat, taking into account the prices offered by
relevant terminal markets (animal feed, milling, or export) for the
period between May 1 and June 30, 1996, with adjustments for
transportation and other handling costs. However, compensation will not
exceed $2.50 per bushel under any circumstances.
(i) Handlers who honor contracts by paying the grower full contract
price on wheat grown for nonpropagative purposes in the quarantined
area that was tested by APHIS and found positive for Karnal bunt; or
(ii) Handlers who purchase contracted or noncontracted wheat grown
for nonpropagative purposes in the quarantined area that was tested by
APHIS and found negative for Karnal bunt prior to purchase but that was
tested by APHIS and found positive for Karnal bunt after purchase.
(3) Salvage value. Salvage values will be as follows:
(i) If the wheat is positive for Karnal bunt and is sold for use as
animal feed, salvage value equals $6.00 per hundredweight or $3.60 per
bushel for all classes of wheat.
(ii) If the wheat is positive for Karnal bunt and is sold for a use
other than animal feed, salvage value equals whichever is higher of the
following: the average price paid in the region of the quarantined area
where the wheat is sold for the relevant class of wheat (meaning type
of wheat, such as Durum or Hard red winter) for the period between May
1 and June 30, 1996; or, $3.60 per bushel.
(iii) If the wheat is negative for Karnal bunt and is sold for any
use, salvage value equals whichever is higher of the following: the
average price paid in the region of the quarantined area where the
wheat is sold for the relevant class of wheat (meaning type of wheat,
such as
[[Page 35107]]
Durum or Hard red winter) for the period between May 1 and June 30,
1996; or, $3.60 per bushel.
(4) To claim compensation. To claim compensation, a grower or
handler must complete and submit to an inspector whichever of the
following three forms are applicable, as determined by the inspector:
ASCS Form 574, ASCS Form 578, and FCI Form 73. The forms will be
furnished by USDA. Growers must also submit a copy of the contract the
grower has for the wheat, if the wheat was under contract; handlers
must also submit a copy of the contract the handler had with the grower
for the wheat, if the wheat was under contract. Finally, a grower or
handler must submit a copy of the receipt for the final sale of the
wheat, showing the intended use for which the wheat was sold.
(c) Nonpropagative wheat that is not sold. If a grower or handler
of nonpropagative wheat in the quarantined area is not able to or
elects not to sell their wheat, they will be eligible to receive
compensation at the rate of $2.50 per bushel. Compensation will only be
paid if the grower or handler has destroyed the wheat by burying it in
a sanitary landfill. To claim compensation, the grower or handler must
complete and submit to an inspector whichever of the following three
forms are applicable, as determined by the inspector: ASCS Form 574,
ASCS From 578, and FCI Form 73. The forms will be furnished by USDA. In
addition, the grower or handler must submit a receipt from the sanitary
landfill verifying how much wheat was buried.
(d) Decontamination of grain storage facilities. Owners of grain
storage facilities that have been decontaminated pursuant to an
Emergency Action Notification (PPQ Form 523) issued by an inspector are
eligible to be compensated, on a one time only basis, for up to 50
percent of the cost of decontamination. However, compensation will not
exceed $20,000 per premise (as defined in Sec. 301.89-1). Compensation
is limited to the direct costs of decontaminating facilities. General
clean-up, repair, and refurbishment costs are excluded from
compensation. To claim compensation, the owner of the grain storage
facility must submit to an inspector records demonstrating that
decontamination was performed on all structures, conveyances, or
materials ordered to be decontaminated by the Emergency Action
Notification on the facility premise. The records must include a copy
of the Emergency Action Notification, contracts with individuals or
companies hired to perform the decontamination, receipts for equipment
and materials purchased to perform the decontamination, time sheets for
employees of the grain storage facility who performed activities
connected to the decontamination, and any other documentation that
helps show decontamination has been completed.
(e) Flour millers. Flour millers who, in accordance with a
compliance agreement with APHIS, heat-treat millfeed made from wheat
produced in the quarantined area are eligible to be compensated at the
rate of $35.00 per short ton of millfeed. The amount of millfeed
compensated will be calculated by multiplying the weight of wheat from
the quarantined area received by the miller by 25 percent (the average
percent of millfeed derived from a short ton of grain). To claim
compensation, the miller must submit to an inspector a copy of the
limited permit under which the wheat was moved to the mill and a copy
of the bill of lading for the wheat (showing the weight of the wheat in
short tons). Flour millers must also submit verification that the
millfeed was heat treated, in the form of a copy of the limited permit
under which the wheat was moved to a treatment facility and a copy of
the bill of lading accompanying that movement.
Done in Washington, DC, this 27th day of June 1996.
Terry L. Medley,
Acting Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 96-16999 Filed 7-3-96; 8:45 am]
BILLING CODE 3410-34-P