[Federal Register Volume 62, Number 205 (Thursday, October 23, 1997)]
[Rules and Regulations]
[Pages 55150-55152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28009]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1412

RIN 0560-AF25


Amendment to the Production Flexibility Contract Regulations

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule amends the production flexibility contract 
regulations found at 7 CFR part 1412.

[[Page 55151]]

The amendments add a final date for producers to designate payment 
shares and provide supporting documentation to be eligible to earn 
contract payments in a fiscal year when payment shares have not been 
designated in such fiscal year; change the dates by which a producer or 
owner must inform county committee of changes in interest; add a final 
date for producers to request advance payments; clarify cash lease 
provisions; change the provisions for determining whether a lease is a 
cash lease or a share lease with respect to combination leases; and 
change the date by which all landowners, tenants, and sharecroppers 
failing to reach an agreement regarding the division of contract 
payments for a fiscal year must execute a contract to be eligible to 
receive the contract payment for that fiscal year.

DATES: Effective Date: October 23, 1997. Comments on this rule must be 
received on or before November 24, 1997 to be assured of consideration.

FOR FURTHER INFORMATION CONTACT: Scotty M. Abbott, Farm Service Agency, 
United States Department of Agriculture, STOP 0517, 1400 Independence 
Avenue, SW, Washington, DC 20250-0517, telephone 202-720-5422, Internet 
address: S[email protected].

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be not significant and therefore 
was not reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable because CCC is not 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. Section 161(d) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7281) 
indicates that the Secretary is to issue regulations without respect to 
the notice and comment provisions of 5 U.S.C. 553 and other statutory 
and regulatory requirements. However, the Commodity Credit Corporation 
is requesting comments on the amendments to the regulations. 
Accordingly, this interim final rule is effective upon publication in 
the Federal Register, with 30 days for the submission of comments.

Environmental Evaluation

    An Environmental Evaluation with respect to the proposed rule has 
been completed. It has been determined that this action will not have 
significant adverse effects on environmental factors such as wildlife 
habitat, water quality, air quality, land use, or appearance. 
Therefore, neither an Environmental Assessment nor an Environmental 
Impact Statement is needed.

Executive Order 12988

    This 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. The 
provisions of this rule are not retroactive. Before any judicial action 
may be brought concerning the provisions of this rule, the 
administrative remedies 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 amendments to 7 CFR part 1412 set forth in this rule were 
previously approved under OMB Control Number 0560-0025. An information 
collection notice was published in the Federal Register (62 FR 27216) 
on May 19, 1997. No comments were received regarding this notice. A 
revised information collection package has been submitted to OMB.

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.

Unfunded Mandates Reform Act of 1995

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995 
(UMRA) for State, local, and tribal governments or the private sector. 
Therefore, this rule is not subject to the requirements of sections 202 
and 205 of the UMRA.

Discussion of Changes

    This rule amends the production flexibility contract regulations as 
follows:

Section 1412.201  Production flexibility contract.

    This rule adds a final date for producers to designate payment 
shares and provide supporting documentation to be eligible to earn 
contract payments in a given fiscal year when payment shares have not 
been designated in such fiscal year. All producers sharing in the 
contract payment on a farm, whose payment shares have not been 
designated for such fiscal year must sign a new contract designating 
payment shares, and provide supporting documentation no later than 
August 1 of such fiscal year to be eligible to earn a contract payment 
in such fiscal year.

Section 1412.207  Succession-in-interest to a production flexibility 
contract.

    This rule changes the dates a producer or owner must inform the 
county committee of changes in interest. A producer or owner must 
inform the county committee of changes in interest by August 1 of the 
fiscal year in which the change is made if producers on the contract 
remain the same but payment shares change; or no later than August 1 of 
such fiscal year, if a new producer is being added to the contract.

Section 1412.302  Contract payment provisions.

    This rule adds a final date to request advance payments for fiscal 
year 1998, and each subsequent fiscal year. To receive the advance 
payment for fiscal year 1998, and each subsequent fiscal year, all 
producers sharing in the contract payment on the farm must, no later 
than 15 days prior to the final date to issue the advance payment:
    (1) Sign the contract designating payment shares and provide 
supporting documentation, if applicable; and
    (2) Request the advance payment.

Section 1412.303  Sharing of contract payments.

    This rule clarifies that a lease is a cash lease, if the lessor 
receives only a guaranteed sum certain cash payment, or fixed quantity 
of the crop. This rule also changes provisions with respect to 
combination leases. Combination leases are leases that contain 
provisions for both a guaranteed amount such as a fixed dollar amount, 
or quantity and a share of a crop or crop proceeds. Combination leases 
include those leases that provide for the greater of a guaranteed 
amount, or share of the crop or crop proceeds. The amendment provides 
that all combination leases shall be considered share leases for fiscal 
year 1998, and later fiscal years.

[[Page 55152]]

Section 1412.304  Provisions relating to tenants and sharecroppers.

    This rule changes the date by which all landowners, tenants and 
sharecroppers failing to reach an agreement regarding the division of 
contract payments for a fiscal year, must execute a contract to be 
eligible to receive the contract payment for such fiscal year. If the 
landowners, tenants and sharecroppers on a farm fail to reach an 
agreement regarding the division of contract payments for a fiscal 
year, the county committee shall make the payment at a later date if 
all persons eligible to receive a share of the contract payment, have 
executed a contract no later than August 1 of that fiscal year, and 
subsequently agree to the division of contract payment.

List of Subjects in 7 CFR Part 1412

    Contract acreage, Contract payments, Production flexibility 
contract, Succession-in-interest.
    Accordingly, 7 CFR part 1412 is amended as follows:

PART 1412--PRODUCTION FLEXIBILITY CONTRACTS FOR WHEAT, FEED GRAINS, 
RICE, AND UPLAND COTTON

    1. The authority citation for part 1412 continues to read as 
follows:

    Authority: 7 U.S.C. 7201 et seq.; and 15 U.S.C. 714b and 714c.

    2. Section 1412.201 is amended by adding paragraph (c) to read as 
follows:


Sec. 1412.201  Production flexibility contract.

* * * * *
    (c) All producers sharing in the contract payments on a farm whose 
payment shares have not been designated for a fiscal year, must sign 
the contract designating payment shares and provide supporting 
documentation as specified in parts 1400, 1405, and 12 of this title, 
no later than August 1 of the fiscal year to be eligible to earn a 
contract payment in that fiscal year. If all producers have not signed 
the contract by this deadline; no producers on the contract will be 
eligible for a payment for that farm for that fiscal year.
    3. Section 1412.207 paragraph (d) is revised to read as follows:


Sec. 1412.207  Succession-in-interest to a production flexibility 
contract.

* * * * *
    (d) A producer or owner must inform the county committee of changes 
in interest not later than:
    (1) August 1 of the fiscal year in which the change occurs, if 
producers on the contract remain the same, but payment shares change; 
or
    (2) August 1 of the fiscal year in which the change occurs , if a 
new producer is being added to the contract.
* * * * *
    4. Section 1412.302 paragraph (b) is revised to read as follows:


Sec. 1412.302  Contract payment provisions.

* * * * *
    (b) At the option of the producer, for fiscal year 1997 and each 
subsequent fiscal year, 50 percent of the annual contract payment shall 
be paid on December 15 or January 15, as requested by the producer. To 
receive the advance payment the producers on the farm must be in 
compliance with all requirements of the contract at the time of the 
advance payment. For fiscal year 1998 and each subsequent fiscal year, 
all producers sharing in the contract payment on the farm must, no 
later than 15 days prior to the final date to issue the advance payment 
sign the contract designating payment shares and provide supporting 
documentation as specified in parts 1400, 1405, and 12 of this title, 
if applicable; and request the advance payment. If all producers on the 
farm have not signed the contract designating payment shares, according 
to this paragraph, then no producers will be eligible for an advance 
payment for that farm for that fiscal year.
* * * * *
    5. Section 1412.303 is amended by removing paragraph (a)(6) and 
revising paragraphs (a)(2) and (a)(4) to read as follows:


Sec. 1412.303  Sharing of contract payments.

    (a) * * *
    (2) A lease will be considered a cash lease if the lease provides 
for only a guaranteed sum certain cash payment, or a fixed quantity of 
the crop (for example, cash, pounds, or bushels per acre).
* * * * *
    (4) A lease shall be considered a share lease if the lease provides 
for both a guaranteed amount such as a fixed dollar amount or quantity 
and a share of a crop or crop proceeds, including leases which provide 
for the greater of a guaranteed amount or share of the crop or crop 
proceeds.
* * * * *
    6. Section 1412.304 paragraph (b) is revised to read as follows:


Sec. 1412.304  Provisions relating to tenants and sharecropper.

* * * * *
    (b) Notwithstanding the provisions set forth at Sec. 1412.302(c), 
if the landowners, tenants and sharecroppers on a farm fail to reach an 
agreement regarding the division of contract payments for a fiscal 
year, the county committee shall make the payment at a later date if 
all persons eligible to receive a share of the contract payment, have 
executed a contract not later than August 1 of the applicable fiscal 
year and subsequently agree to the division of contract payment.

    Signed at Washington, DC, on October 15, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-28009 Filed 10-22-97; 8:45 am]
BILLING CODE 3410-05-P `