[Federal Register Volume 62, Number 201 (Friday, October 17, 1997)]
[Rules and Regulations]
[Pages 53929-53932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27432]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 201 / Friday, October 17, 1997 / 
Rules and Regulations  

[[Page 53929]]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1437

RIN 0560-AF23


Noninsured Crop Disaster Assistance Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim rule.

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SUMMARY: This interim rule includes provisions for providing assistance 
under the Noninsured Crop Disaster Assistance Program (NAP) for: 
aquacultural species; floriculture; forage; ornamental nursery; seed 
crops; reseeding or replanting of the same crop; and value loss crops. 
Amendments include redefining some existing terms and adding new terms 
and changes of applicability, eligibility, assistance, yield 
determinations, acreage and production reports, loss requirements, and 
payments for reduced yields and prevented planting.

EFFECTIVE DATE: October 17, 1997.

FOR FURTHER INFORMATION CONTACT: Sean O'Neill, Chief, Noninsured 
Assistance Branch (NAB), Production, Emergencies, and Compliance 
Division (PECD), Farm Service Agency (FSA), United States Department of 
Agriculture, STOP 0526, 1400 Independence Avenue, SW, Washington, D.C. 
20250-0526; telephone (202) 720-9003.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866 and has been determined to be not significant and therefore has 
not been reviewed by OMB.

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 proposed rule has been reviewed in accordance with Executive 
Order 12988. The provisions of this proposed rule preempt State laws to 
the extent such laws are inconsistent with the provisions of this rule. 
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

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the (UMRA) for State, local, and tribal 
governments or the private sector. Thus, this rule is not subject to 
the requirements of sections 202 and 205 of the UMRA regulations.

Paperwork Reduction Act

    Title: Noninsured Crop Disaster Assistance Program.
    OMB Control Number: 0560-0175.
    Expiration Date: May 31, 1998.
    Type of Request: Extension and revision of a currently approved 
information collection.
    Abstract: The information collected under OMB control number 0560-
0175, as identified above, allows CCC to effectively administer 
noninsured crop disaster assistance authorized by the Federal 
Agriculture Improvement and Reform Act of 1996. The information 
collected allows CCC to provide assistance under the noninsured crop 
disaster assistance program for losses of commercial crops or other 
agricultural commodities that are produced for food or fiber. The 
information collected is necessary to provide those charged with 
determining eligibility for CCC a basis to determine whether the 
producer meets applicable conditions for assistance and to determine 
compliance with existing rules.
    Estimate of Burden: Public reporting burden for this information 
collection is estimated to average .2 hours per response.
    Respondents: Commercial agricultural producers of food or fiber.
    Estimated Number of Respondents: 1,575,000.
    Estimated Number of Responses per Respondent: 5.
    Estimated Total Annual Burden on Respondents: 1,711,250 hours.
    Proposed topics for comment include: (a) Whether the continued 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the CCC's estimate of 
burden including the validity of the methodology and assumptions used; 
(c) enhancing the quality, utility, and clarity of the information 
collected; or (d) minimizing the burden of the collection of the 
information on those who are to respond, including the use of 
appropriate automated, electronic, mechanical, or other technological 
collection techniques or other forms of information technology. 
Comments should be sent to the Desk Officer for Agriculture, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Washington, D.C. 20503, and to Sean O'Neill, Chief, Noninsured 
Assistance Branch (NAB), Production, Emergencies, and Compliance 
Division (PECD), Farm Service Agency (FSA), United States Department of 
Agriculture, STOP 0526, 1400 Independence Avenue, SW, Washington, D.C. 
20250-0526. All comments will become a matter of public record.
    OMB is required to make a decision concerning the collection(s) of 
information contained in these proposed regulations between 30 and 60

[[Page 53930]]

days after publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it within 30 days of publication.

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. 10.450.

Background

    The regulation reflects changes in existing definitions, additional 
definitions, eligibility, assistance, yield determinations, acreage and 
production reporting requirements, loss requirements, and payments for 
reduced yields and prevented planting. Major changes include:
    (1) Section 1437.4 is amended to specify that except for ornamental 
nursery and species or types and varieties of forage determined by CCC 
to be predominantly grazed, different species or types and varieties 
may be treated as separate crops.
    (2) Section 1437.5 is amended to include a method for CCC to 
establish the value of an animal unit day.
    (3) Section 1437.7 is amended to specify that CCC will establish 
expected area yields, or an equivalent measure in the event yield data 
are not available.
    (4) Section 1437.8 is amended to include that, for forage, acreage 
reports must include the species or type and variety of forage 
reported, and the intended harvest method, i.e. grazing or mechanically 
harvested.
    (5) Section 1437.9 is amended to require reseeding or replanting 
where it is practicable.
    (6) Section 1437.11 is amended to include payments for losses of 
forage determined by CCC to be predominantly grazed.

List of Subjects in 7 CFR Part 1437

    Agricultural commodities, Disaster assistance, Reporting and 
recordkeeping requirements.

    For the reasons set out in the Preamble, 7 CFR Chapter XIV is 
amended as set forth below.

PART 1437--NONINSURED CROP DISASTER ASSISTANCE PROGRAM REGULATIONS 
FOR THE 1997 AND SUCCEEDING CROP YEARS

    1. The authority citation continues to read as follows:

    Authority: 15 U.S.C. 714b and 714c and 7 U.S.C. 7333.

    1a. Revise the heading for part 1437 to read as set forth above.
    2. Revise Sec. 1437.1 to read as follows:


Sec. 1437.1  Applicability.

    (a) For the 1997 and subsequent crop years, NAP is intended to 
provide eligible producers of eligible crops with protection comparable 
to the catastrophic risk protection plan of crop insurance. NAP is also 
designed to help reduce production risks faced by producers of crops 
for which Federal crop insurance under the Federal Crop Insurance Act, 
as amended is not available. NAP will reduce financial losses that 
occur when natural disasters cause a catastrophic loss of production or 
prevented planting of an eligible crop. Payment eligibility is based on 
an expected yield for the area and the producer's approved yield based 
on actual production history, or a transitional yield if sufficient 
production records are not available. In the case of forage determined 
by CCC to be predominantly grazed in accordance with Sec. 1437.7(j), 
payment eligibility is based on an expected stocking level for the area 
and unit and the actual number of animals grazed and days grazing 
occurred. Production for both the applicable area expected yield and 
the individual producer approved yield for the unit or for forage 
determined by CCC to be predominantly grazed, area and unit expected 
stocking level must each fall below specified percentages in order to 
be eligible for payments under this part.
    (b) The provisions contained in this part are applicable to each 
eligible producer and each eligible crop for which catastrophic 
coverage is not otherwise available.
    3. Amend Sec. 1437.3 to add new definitions for Animal unit, Animal 
unit day, Carrying Capacity, Floriculture, Grazing days, Ornamental 
Nursery, Stocking rate, Type and weight range, and Value loss crop, in 
alphabetical order, and revise existing definitions for Aquacultural 
species, Average market price, Eligible crop, Forage, Harvested, and 
Unit to read as follows:


Sec. 1437.3  Definitions.

* * * * *
    Animal unit (AU) means an animal with daily energy requirement 
equating to 15.7 pounds of corn.
    Animal unit day (AUD) means an expression of an expected or actual 
stocking rate.
* * * * *
    Aquacultural species means any species of aquatic organism grown as 
food for human consumption, or fish raised as feed for fish that are 
consumed by humans, or ornamental fish propagated and reared in an 
aquatic medium by a commercial operator on private property in water in 
a controlled environment. Eligible aquacultural species must be seeded 
in the aquacultural facility and not be growing naturally in the 
facility and must be planted or seeded in containers, wire baskets, net 
pens, or similar devices designed for the protection and containment of 
the seeded aquacultural species.
* * * * *
    Average market price means the price, or dollar equivalent on an 
appropriate basis for an eligible crop established by CCC for 
determining payment amounts under NAP; for example, pound, bushel, ton, 
and AUD (for forage determined by CCC to be predominantly grazed). Such 
price will be on a harvested basis without the inclusion of 
transportation, storage, processing, packing, marketing or other post-
harvest expenses and will be based, in part, on historical data.
    Carrying Capacity means the stocking rate, as determined by CCC, 
expressed as acres per animal unit (AC/AU) or reciprocal, which is 
consistent with maintaining or improving vegetation or related 
resources.
* * * * *
    Eligible crop means an agricultural commodity for which 
catastrophic coverage is not available and which is commercially 
produced for food or fiber as specified in this part. Eligible crop 
will also include floriculture, ornamental nursery, and Christmas tree 
crops, turfgrass sod, seed crops, aquaculture (including ornamental 
fish), and industrial crops. In the case of a crop that historically 
has multiple plantings in the same crop year that are planted or are 
prevented from being planted, each planting may be considered a 
different crop for determining payments under this part as determined 
by CCC. In the case of a crop, except for forage determined by CCC to 
be predominantly grazed, that has different varieties or types, each 
variety or type may be considered a separate crop for determining 
payments under this part, if CCC determines there

[[Page 53931]]

is a significant difference in price or yield between the varieties or 
types.
* * * * *
    Floriculture means cut flowers or similar products of annual and 
perennial flowering plants grown under glass, fiberglass and other 
rigid plastics, film plastic, shade cloth, natural shade, other shade, 
and outdoor in a container or controlled environment for commercial 
sale.
    Forage means land covered with grass or other similar herbaceous 
vegetation not of a woody plant species, produced under such range 
management practices as are necessary to sustain sufficient quality and 
quantity of grass or similar vegetation each year to be suitable for 
grazing or mechanical harvest to feed livestock in a commercial 
operation. NAP benefits for forage produced on Federal or State owned 
lands are available only for seeded forage.
* * * * *
    Grazing days means the number of days used in the calculation of 
the carrying capacity for each forage species or type or variety 
determined by CCC to be predominantly grazed.
    Harvested means a single harvest crop is considered harvested when 
the producer has, by hand or mechanically, or by grazing of livestock, 
removed the crop from the field. Crops with multiple harvests in 1 year 
or harvested over multiple years are considered harvested when the 
producer has, by hand or mechanically removed at least one mature crop 
from the field. The mechanically harvested crop is considered harvested 
once it is removed from the field and placed in a truck or other 
conveyance, except hay is considered harvested when in the bale, 
whether removed from the field or not. Grazing is not considered 
harvesting for the purpose of determining an unharvested or prevented 
planting payment factor.
* * * * *
    Ornamental Nursery means decorative plants grown in a container or 
controlled environment for commercial sale.
* * * * *
    Stocking rate means the number of animal units grazing or utilizing 
specific crop acreage for a specific number of days, expressed as 
animal unit days.
    Type and weight range means the identification of animals according 
to the daily energy requirement, as determined by CCC, necessary to 
provide the daily maintenance ration, as determined by CCC, of the 
specific animal.
* * * * *
    Unit means, for NAP, all acreage of the eligible crop or for 
ornamental nursery, all eligible plant species and sizes except plant 
species or sizes for which catastrophic coverage is available, in the 
county for the crop year:
    (1) In which the person has 100 percent crop share; or
    (2) Which is owned by one person and operated by another person on 
a share basis.
    Value loss crop means ornamental nursery, Christmas trees, 
aquaculture, or other crops as determined by CCC that, due to their 
unique nature do not lend themselves to yield calculations or expected 
yield loss situations. Eligibility for a crop categorized as value loss 
shall be determined based on a loss of value at time of disaster, as 
determined by CCC.
    4. Amend Sec. 1437.4 to revise the second sentence of paragraph (a) 
and paragraph (b)(10) to read as follows:


Sec. 1437.4  Eligibility.

    (a) * * * Except for ornamental nursery and species or type or 
variety of a species of forage determined by CCC to be predominantly 
grazed, different types or varieties of a crop or commodity, may be 
treated as a separate eligible crop, if CCC determines there is a 
significant difference in price or yield.
    (b) * * *
    (10) Seed crops, where the propagation stock is commercially 
produced for sale as seed stock for other eligible NAP crop production; 
and
* * * * *
    5. In Sec. 1437.5 add paragraph (f) to read as follows:


Sec. 1437.5  Assistance.

* * * * *
    (f) Animal Unit Day value will be established by CCC on the basis 
of a 5 year national average corn price per pound, as determined by 
CCC, and the daily energy requirement of one beef cow, as determined by 
CCC.
    6. Amend Sec. 1437.7 to revise the first sentence of paragraph (a) 
and add paragraphs (k) and (l) to read as follows:


Sec. 1437.7  Yield determinations.

    (a) CCC will establish expected area yields or an equivalent 
measure in the event yield data are not available, for eligible crops 
for each county or area for which the NAP is available, using available 
information, which may include, but is not limited to, National 
Agricultural Statistics Service data, Cooperative State Research, 
Education, and Extension Service records, Federal Crop Insurance 
Corporation data, credible nongovernment studies, yields in similar 
areas, and reported approved yield data. * * *
* * * * *
    (k) Prior to the beginning of the crop year, CCC in its own 
discretion will with respect to forage:
    (1) Identify each species or type and variety of forage found in 
the county;
    (2) Categorize each species or type and variety of forage 
identified as either:
    (i) Predominantly mechanical harvested, or
    (ii) Predominantly grazed;
    (3) Establish a carrying capacity for each forage species or type 
and variety identified and determined by CCC to be predominantly 
grazed;
    (4) Determine total acreage of forage determined by CCC to be 
predominantly grazed; and
    (5) Calculate expected Animal Unit Day by dividing the total acres 
of forage in the county categorized by CCC as predominantly grazed by 
the approved carrying capacity and multiplying the result by the number 
of days of grazing used to determine the carrying capacity.
    (l) In the event CCC receives a notice of loss of forage determined 
by CCC to be predominantly grazed, CCC will:
    (1) Calculate utilized Animal Unit Day by dividing the total acres 
of forage reported to FSA determined by CCC to be predominantly grazed 
by the reported number of animal units grazed and multiplying the 
result by the number of days grazing occurred;
    (2) Subtract the value of supplemental feed fed to the grazing 
livestock during the grazing period from the value of the utilized 
Animal Unit Day, as determined by CCC;
    (3) Determine area utilization by dividing total area utilized 
Animal Unit Day by the expected Animal Unit Day; and
    (4) Determine unit utilization by dividing the unit utilized Animal 
Unit Day by the expected unit Animal Unit Day.
    7. Amend Sec. 1437.8 to revise paragraph (b)(4) and add paragraphs 
(e) and (f) to read as follows:


Sec. 1437.8  Acreage and production reports.

* * * * *
    (b) * * *
    (4) The crop, practice, intended use, and for forage, the 
predominant species or type and variety and the intended harvest 
method, i.e. grazing or mechanical harvest.
* * * * *
    (e) In lieu of a production report, producers of forage that is 
predominantly grazed shall, in the crop year in which the producer 
files a notice of loss, report grazing animals by type

[[Page 53932]]

and weight range and the number of days grazing occurred, and the 
amount and type of feed fed such grazing animals during any grazing 
period within the crop year.
    (f) Animal Unit Day adjustments, as determined by CCC, may be 
calculated when a producer of forage predominantly grazed, provides 
adequate evidence, as determined by CCC, that unit forage management 
and maintenance practices provide different carrying capacity than 
practices generally provided forage acreage used to calculate the 
approved county expected carrying capacity.
    8. Amend Sec. 1437.9 to revise paragraph (b)(2) to read as follows:


Sec. 1437.9  Loss Requirements.

* * * * *
    (b) * * *
    (2) The failure of the producer to reseed or replant to the same 
crop in the county where it is practicable to reseed or replant;
* * * * *
    9. Amend Sec. 1437.11 to revise the introductory text and add 
paragraph (c) to read as follows:


Sec. 1437.11  Payments for reduced yields and prevented planting.

    In the event that the area loss requirement has been satisfied for 
the crop and:
* * * * *
    (c) The producer has sustained a loss of forage determined by CCC 
to be predominantly grazed in accordance with Sec. 1437.7(l), in excess 
of 50 percent of the producer's expected Animal Unit Day established 
for the unit, the NAP payment will be determined by:
    (1) Dividing the unit acreage for each species or type or variety 
identified on the unit by the approved carrying capacity and 
multiplying the result by the corresponding grazing days used as the 
basis for determination of the carrying capacity, totaling the result 
for each species or types and varieties.
    (2) Multiplying the result of paragraph (c)(1) of this section by 
50 percent.
    (3) Multiplying the number of animals grazed by the daily allowance 
of corn according to type and weight range and divide the result by 
pounds of corn CCC determines is necessary to provide the daily energy 
requirement for one animal unit.
    (4) Multiplying the result of paragraph (c)(3) of this section by 
the number of days grazing occurred to determine gross actual AUD.
    (5) Adding AUD for ineligible causes of loss and incidental 
mechanically harvested Category 1 forage to the result of paragraph 
(c)(4) of this section.
    (6) Subtracting AUD or equivalent value of supplemental feed fed to 
the grazing livestock during the crop year from the result of paragraph 
(c)(5) of this section.
    (7) Subtracting the result of paragraph (c)(6) of this section from 
the result of paragraph (c)(2) of this section. If a zero or negative 
number results, payment cannot be calculated.
    (8) Multiplying the positive result of paragraph (c)(7) of this 
section by:
    (i) For the 1997 through 1998 crop years, 60 percent of the average 
market price, as determined by CCC, or any comparable coverage, as 
determined by CCC; or
    (ii) For the 1999 and subsequent years, 55 percent of the average 
market price, as determined by CCC, or any comparable coverage, as 
determined by CCC.

    Signed at Washington, DC, on October 8, 1997.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-27432 Filed 10-16-97; 8:45 am]
BILLING CODE 3410-01-P