[Federal Register Volume 62, Number 162 (Thursday, August 21, 1997)]
[Rules and Regulations]
[Pages 44391-44393]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22128]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 162 / Thursday, August 21, 1997 / 
Rules and Regulations  

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1439

RIN 0560-AF11


Disaster Reserve Assistance Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) published an interim 
rule in the Federal Register (62 FR 3195) on January 22, 1997, to 
announce the availability of assistance under the Disaster Reserve 
Assistance Program (DRAP). The assistance was for livestock producers 
whose production of livestock feed was adversely affected by severe 
winter disaster conditions. Authority for the program is set forth in 
section 813 of the Agricultural Act of 1970, as amended. This final 
rule adopts the interim rule with modifications that became necessary 
during the administration of the program due to circumstances 
unforeseen at the time the interim rule was written, but which became 
necessary because of the severity of the disaster.

EFFECTIVE DATE: August 21, 1997.

FOR FURTHER INFORMATION CONTACT: Chris Niedermayer, Acting Director, 
Emergency and Noninsured Assistance Program Division, Farm Service 
Agency (FSA), United States Department of Agriculture, STOP 0526, 1400 
Independence Avenue, SW, Washington, D.C. 20250-0526, telephone (202) 
720-6635.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been determined to be significant and has been reviewed by the 
Office of Management and Budget.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because neither FSA nor the CCC is 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 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 12988

    The final rule has been reviewed in accordance with Executive Order 
12988. 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 retroactive to January 10, 1997. Before any 
judicial action may be brought concerning the provisions of this rule, 
the administrative remedies must be exhausted.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require 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).

Unfunded Mandates

    The provisions of the Unfunded Mandates Reform Act of 1995 are not 
applicable to this rule because neither FSA nor 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.

Paperwork Reduction Act

    The amendments to 7 CFR 1439 set forth in this final rule have been 
approved by OMB under an emergency submission of 0560-0029. An 
information collection notice was published in the Federal Register (62 
FR 3195) on January 22, 1997. No comments were received regarding 
information collections. A regular submission of information collection 
will be provided to OMB before July 31, 1997.

Executive Order 12612

    It has been determined that this rule does not have sufficient 
Federalism implications to warrant the preparation of a Federalism 
Assessment. The provisions contained in this rule will not have a 
substantial direct effect on States or their political subdivisions, or 
on the distribution of power and responsibilities among the various 
levels of Government.

Federal Assistance Programs

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.452.

Background

    Pursuant to the authority set forth in section 813 of the 
Agricultural Act of 1970, as amended, it has been determined that:
    1. Severe and prolonged natural disasters adversely affecting 
livestock producers across the country warrant implementing additional 
provisions of DRAP to alleviate the distress caused by the natural 
disaster conditions and unforeseen consequences brought on by the 
severity of the natural disasters.
    2. An interim rule published on January 22, 1997, (62 FR 3195) 
amended part 1439 to provide assistance for feed losses in crop year 
1996, occurring because of snow and freezing conditions. Consequently, 
in implementing these regulations CCC made several changes in the 
program due to the severity of the natural disaster conditions. 
Presidential Disaster Declarations M1156 and M1157 were issued for all 
counties in North Dakota and South Dakota; therefore, all livestock 
producers in these States who met all eligibility requirements, as 
determined by the Deputy Administrator for Farm Programs (DAFP), and 
timely filed requests, were eligible for assistance under the herein 
contained Emergency Feed Grain Donation Program (EFGDP). Subsequently, 
DAFP determined that livestock producers in North Dakota, South Dakota, 
and in the Minnesota counties designated as primary counties in 
Presidential Disaster Declaration M1158 who met all eligibility 
requirements, as determined by DAFP, and timely filed requests, were 
eligible for assistance under the herein

[[Page 44392]]

contained Foundation Livestock Relief Program (FLRP). The interim rule 
did not specify that producers in counties contiguous to primary 
counties where an emergency declaration was made by the President would 
be eligible for assistance under EFGDP and FLRP. Inadvertently, the 
following counties contiguous to the States of North Dakota and South 
Dakota were erroneously included as being eligible for FLRP: Lyon, 
Plymouth, Sioux, and Woodbury Counties in Iowa; Carter, Fallon, 
Richland, Roosevelt, Sheridan, and Wibaux Counties in Montana; Boyd, 
Cedar, Cherry, Dakota, Dawes, Dixon, Keya Paha, Sheridan, and Sioux 
Counties in Nebraska; and Crook, Niobrara, and Weston Counties in 
Wyoming. Applications for FLRP assistance were accepted in the 
aforementioned contiguous counties through February 25, 1997. FSA 
determined that withdrawal of its offer to provide cost share 
assistance after the final date for submitting an application would not 
be in the best interest of the public because producers in the 
erroneously approved counties would have already made previous 
commitments. Accordingly, FSA elected to grant relief in accordance 
with 7 U.S.C. 1339a on the basis of ``misaction'' by the Agency.
    This final rule adopts the interim rule, with some modifications 
and additions. The comments received and CCC responses are as follows:
    Comment: Sec. 402(a) One comment received from a national livestock 
association recommended that:
    (1) The Secretary of Agriculture should have the authority to 
delineate the areas of the U.S. that are eligible for the DRAP.
    (2) Producers who qualify for the DRAP should be allowed to use the 
funds for snow removal, clearing of flood related debris, removal of 
mud, repair and maintenance of farm roads, rebuilding of fences due to 
high water or snow, purchase of hay and high protein feed supplements 
and minerals, and maintenance and continued usage of water supplies of 
adequate quality and quantities.
    (3) Producers be reimbursed whether they remove the disaster 
related snow, mud and/or debris themselves, or they use an outside 
contractor.
    Response: (1) Authorization for the program was limited to the 1996 
crop year, allowing USDA to provide assistance for feed loss or 
inaccessibility as a result of snow or freezing conditions where an 
emergency declaration has been made by the President. DAFP believes it 
is not prudent to seek legislative change to allow the Secretary 
authority to delineate the areas of the U.S. eligible for DRAP as the 
terms of the program have already expired. (2) Under Sec. 1439.602(b), 
assistance is provided as reimbursement for expenses relating to 
transportation assistance on or after January 10, 1997, specifically 
related to providing access to existing feed supplies or to the 
livestock and reimbursement for expenses relating to eligible livestock 
feed purchased on or after January 10, 1997, and donation of CCC-owned 
feed grains. There is no restriction on how the livestock owner uses 
the reimbursed funds. However, according to Sec. 1439.8, CCC-owned feed 
grains obtained under this part shall not be exchanged for any 
ingredients, services, cash, credit, or any other thing of value. (3) 
Under Sec. 1439.602(f), maximum assistance for snow removal is limited 
to the lesser of the actual cost to move snow to gain access to the 
available feed or stranded livestock, or the monetary value of 
multiplying the number of livestock, by type and weight range, by the 
allowance per day in pounds of corn, as determined by CCC, by $0.05 per 
pound, by a feeding period of 15 days. There is no restriction on 
whether the livestock owner or a contractor removes the snow.
    3. This rule will modify part 1439 to add sections 1439.601 and 
1439.602 and 1439.701 and 1439.702. These sections set out program 
regulations for EFGDP and FLRP.
    4. Based on the above determinations, the EFGDP and the FLRP are 
authorized for the 1996 livestock feed crop year for livestock owners 
who are determined eligible. Program payments will be contingent on the 
availability of CCC funds.

List of Subjects in 7 CFR part 1439

    Animal feeds, Disaster assistance, Livestock.

    Accordingly, for the reasons set forth in the Preamble, the interim 
rule published on January 22, 1997, (62 FR 3195) is adopted as final 
with changes, as set forth below.

PART 1439--EMERGENCY ASSISTANCE PROGRAMS

    1. The authority citation for part 1439 continues to read as 
follows:

    Authority: 15 U.S.C. 714b and 714c and 7 U.S.C. 1427a.

    2. In section 1439.402, paragraph (a) is revised to read as 
follows:


Sec. 1439.402  Assistance

    (a) Assistance is for eligible livestock which are commingled, 
stranded, and unidentified as to the livestock owner.
* * * * *
    3. Sections 1439.601 and 602 are added as follows:

Subpart--Emergency Feed Grain Donation Program (EFGDP)


Sec. 1439.601  General statement.

    (a)(1) This subpart sets forth the terms and conditions of the 
EFGDP. This program may be authorized only for livestock owners in a 
State or county, by the Deputy Administrator for Farm Programs (DAFP), 
Farm Service Agency (FSA), upon a determination that a sudden livestock 
feed emergency exists and a Presidential disaster declaration has been 
issued for such a State or county as a result of snow and freezing and 
related conditions. Under the program, CCC will provide to the 
livestock owner whose access to livestock and normal livestock feed 
supplies was adversely affected by natural disasters either or both of 
the following:
    (i) Reimbursement for expenses relating to eligible livestock feed 
purchases and transportation assistance;
    (ii) CCC-owned feed grains on a donation basis.
    (2) Assistance may be given to other persons or entities (public 
and private), who certify that the eligible livestock were, or are, in 
danger of perishing without their immediate assistance. This program 
shall terminate at the conclusion of the 1996 livestock feed crop year.
    (b) The EFGDP is authorized for the 1996 livestock feed crop year 
when both of the following apply:
    (1) The FSA State committee determines and documents a livestock 
feed emergency on a county by county basis, when the danger of eligible 
livestock perishing as a result of snow and freezing and related 
conditions exists in the county, and
    (2) The livestock owner, or other person or entities (public or 
private) certify that the eligible livestock were, or are, in danger of 
perishing without immediate assistance and that normal livestock feed 
supplies were, or are, inaccessible.


Sec. 1439.602  Assistance.

    (a) Assistance is for eligible livestock which are in danger of 
perishing without immediate assistance. Eligible livestock includes 
beef and dairy cattle; buffalo and beefalo; equine animals, including 
horses, mules, donkeys; sheep; goats; and swine.

[[Page 44393]]

    (b) Assistance may be provided as any of the following:
    (1) Reimbursement for expenses relating to transportation 
assistance on or after January 10, 1997, specifically related to 
providing access to existing feed supplies or to the livestock;
    (2) Reimbursement for expenses relating to eligible livestock feed 
purchased on or after January 10, 1997; or
    (3) Donation of CCC-owned feed grains.
    (c) Requests for reimbursement for transportation assistance and 
eligible livestock feed purchases shall include verifiable sales 
receipts, service agreements, or any other documentation as determined 
by the FSA county committee.
    (d) Individuals who provide assistance to livestock which is in 
danger of perishing without immediate assistance or where the owner of 
the livestock is not known, shall only receive CCC-owned feed grain on 
a donation basis, not to exceed the amount of feed grain actually used.
    (e) Assistance shall not exceed the monetary value of multiplying 
the number of livestock, by type and weight range, by the allowance per 
day in pounds of corn as determined in accordance with Sec. 1439.3, by 
$0.05 per pound, by a feeding period of 15 days.
    (f) For snow removal, the maximum assistance shall be the lesser 
of:
    (1) Actual cost to move snow to gain access to the available feed 
or stranded livestock; or
    (2) The maximum assistance calculated in accordance with paragraph 
(e) of this section.
    (g) For feed purchases, the maximum assistance shall be the lesser 
of:
    (1) The monetary value of purchased eligible feed; or
    (2) The maximum assistance calculated in accordance with paragraph 
(e) of this section.
    (h) The maximum assistance for donated grain is a 15 day feed 
allowance calculated in accordance with paragraph (e) of this section.
    4. Sections 1439.701 and 1439.702 are added as follows:


Subpart--Foundation Livestock Relief Program (FLRP)

Sec. 1439.701  General statement.

    (a) This subpart sets forth the terms and conditions of the FLRP. 
This program may be authorized by DAFP, upon a determination that 
foundation livestock owners have been forced to feed excessive 
quantities of livestock feed and a Presidential disaster declaration 
has been issued for the State or county as a result of snow and 
freezing and related conditions. Under the program, CCC will provide 
cash reimbursement for eligible livestock feed purchases to the 
livestock owner and other persons or entities (public and private), 
whose usage of normal livestock feed supplies was adversely affected by 
natural disasters. Cost-share assistance is provided at 30 percent of 
the lesser of actual eligible livestock feed costs shown on acceptable 
feed purchase documents or the calculated feed allowance for eligible 
livestock for a period not to exceed 30 days. This program shall 
terminate at the conclusion of the 1996 livestock feed crop year.
    (b) As determined by DAFP, FLRP may be authorized for any length of 
time not to exceed a 30-day feeding period. Subsequent feeding periods 
of the same or different duration may be designated by DAFP for the 
same or related disaster conditions.


Sec. 1439.702  Assistance.

    (a) Assistance is limited to livestock owners who have eligible 
foundation or replacement livestock, as determined by DAFP. Eligible 
livestock includes beef and dairy cattle, buffalo and beefalo, sheep, 
goats, swine, and equine animals used to raise livestock that will be 
used for human consumption or in the production of food or fiber on the 
owner's farm.
    (b) Assistance shall be provided as a 30 percent cost-share payment 
based on the lesser of:
    (1) Eligible livestock feed purchased and received during the 
period designated by DAFP, or
    (2) The calculated feed allowance for the eligible livestock for up 
to 30 days, as determined by DAFP.
    (c) Requests for reimbursement of eligible livestock feed purchases 
shall include verifiable sales receipts and any other documentation the 
FSA county committee requires.
    (d) Assistance shall not exceed the monetary value of multiplying 
the number of livestock, by type and weight range, by the allowance per 
day in pounds of corn as determined in accordance with Sec. 1439.3, by 
$0.05 per pound, by the number of days in the feeding period designated 
by DAFP.

    Signed at Washington, DC, on August 14, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-22128 Filed 8-20-97; 8:45 am]
BILLING CODE 3410-05-P