[Federal Register Volume 64, Number 53 (Friday, March 19, 1999)]
[Rules and Regulations]
[Pages 13497-13501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6429]



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  Federal Register / Vol. 64, No. 53 / Friday, March 19, 1999 / Rules 
and Regulations  

[[Page 13497]]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1439

RIN 0560-AF 58


Livestock Assistance Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends the current provisions of regulations 
on emergency livestock assistance to delete regulations for obsolete 
programs and to provide new terms and conditions for the Livestock 
Assistance Program (LAP) authorized in the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (1999 Act). The LAP will provide emergency 
feed assistance for losses suffered by livestock producers in calendar 
year 1998, in counties that have suffered a 40 percent or greater loss 
of normal grazing as a result of a natural disaster. Assistance to the 
producer will be based on the number of eligible livestock owned by the 
producer and the producer's percent of grazing losses. The 1999 Act 
limits expenditures of the program to $200 million. Payment rates will 
not be determined until a sign-up for the program is completed.

EFFECTIVE DATE: Effective March 17, 1999.

FOR FURTHER INFORMATION CONTACT: Dolores Painter, (202) 720-4642.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because the Commodity Credit Corporation (CCC) 
is not required by 5 U.S.C. 553 or any other provision of law to 
publish a notice of proposed rule making 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

    This rule has been reviewed in accordance with Executive Order 
12988. The provisions of this 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 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 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).

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. 
Thus, this rule is not subject to the requirements of sections 202 and 
205 of UMRA.

Paperwork Reduction Act and Small Business Regulatory Enforcement 
Fairness Act

    The LAP provisions contained in this rule are authorized by the 
1999 Act (Pub. L. 105-277). Section 1133 of the 1999 Act provides that 
such rules shall be issued as soon as practicable and without regard to 
the provisions of: (1) the notice and comment provisions of section 553 
of title 5, United States Code; (2) the Statement of Policy of the 
Secretary of Agriculture effective July 24, 1971 (36 FR 13804), 
relating to notices of proposed rulemaking and public participation in 
rulemaking; and (3) chapter 35 of title 44, United States Code 
(commonly known as the ``Paperwork Reduction Act''). Accordingly, the 
LAP regulations are being issued as a final regulation without a notice 
and comment period, and the forms and the collection of information do 
not require prior OMB approval.
    In addition, this rule was determined to be Major under the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA). Section 
1133 of the 1999 Act provides that these regulations shall use the 
authority provided under section 808 of SBREFA that allows an agency to 
promulgate a rule at such time as it determines necessary, 
nothwithstanding the Congressional review required by Section 801 of 
SBREFA. It is hereby determined that to the extent such review would 
otherwise delay the implementation of this rule, such delay would be 
contrary to the public interest because of the need for expeditious 
implementation of the rule as expressed in the text of the 1999 Act. 
Accordingly, this rule is effective upon 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.

Background

    This final rule revises 7 CFR part 1439 to delete obsolete programs 
and to set forth terms and conditions for a new program authorized by 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 1999 (Pub. L. 05-277) (1999 Act).
    As provided in the 1999 Act, livestock producers who suffered 
livestock feed losses as a result of natural disaster may apply for 
benefits to compensate for losses which occurred in calendar year 1998. 
As authorized, $200 million is made available for that purpose.

[[Page 13498]]

    Benefits will be provided to eligible livestock producers only in 
those counties where a severe natural disaster occurred, and that were 
subsequently approved by the Deputy Administrator for Farm Programs. A 
county must have suffered a 40-percent or greater grazing loss for 3 
consecutive months during the 1998 calendar year, as a result of damage 
due to a natural disaster in order to be eligible; livestock producers 
in counties contiguous to an approved county are not eligible. A 
livestock producer in an approved county must have suffered at least a 
40-percent loss of normal grazing for the producer's eligible livestock 
for a minimum of 3 consecutive months. Losses will only be compensable 
up to 80 percent of the total grazing available and the compensable 
loss will also not exceed a county maximum set by the local county 
committee. The program will be administered through the Deputy 
Administrator for Farm Programs of the Department's Farm Service 
Agency. Payments will be made according to a formula subject to funding 
and other limitations, including a per person payment limitation and a 
provision which precludes participation for persons whose gross revenue 
exceeds a specified amount. A final payment shall not exceed 50 percent 
of the eligible loss amount determined prior to applying a national 
factor, if applicable. The regulations provide that the rules of 7 CFR 
part 1400 will be used to make ``person'' determinations for these 
purposes.
    In making provision for this program, 7 CFR part 1439 has been 
revised in order to remove obsolete provisions for previous programs. 
As before, the organization of part 1439 will continue to have one 
subpart for general provisions applicable to multiple programs, and 
then provide the details of particular programs in separate subparts. 
In addition, the rules provide that the regulations found at part 1439 
of this title as of January 1, 1999, shall be applicable to all 
outstanding determinations with respect to any program previously 
codified at this part. The American Indian Livestock Feed Program which 
was codified in a subpart consisting of Secs. 1439.901 through 1439.911 
in part 1439 by publication of an Interim Rule in the November 27, 
1988, Federal Register (63 FR 65524) remains in effect.

List of Subjects in 7 CFR Part 1439

    Animal feeds, Disaster assistance, Livestock, Reporting and 
recordkeeping requirements.

    Accordingly, 7 CFR Part 1439 is amended as follows:

PART 1439--EMERGENCY LIVESTOCK ASSISTANCE

    1. The authority citation for 7 CFR part 1439 is revised to read as 
follows:

    Authority: 15 U.S.C. 714b and 714c; Sec. 1103, Pub. L. 105-277, 
112 Stat. 2681.

    2. Subpart--General Provisions is revised to read as follows:

Subpart--General Provisions

Sec.

1439.1  Applicability and general statement.
1439.2  Administration.
1439.3  Definitions.
1439.4  Liens and claims of creditors.
1439.5  Assignments of payments.
1439.6  Appeals.
1439.7  Misrepresentation, scheme or device.
1439.8  Refunds to CCC; joint and several liability.
1439.9  Cumulative liability.
1439.10  Benefits limitation.
1439.11  Gross revenue limitation.
1439.12  Maintenance of books and records.

Subpart--General Provisions


Sec. 1439.1  Applicability and general statement.

    (a) The regulations in this part set forth the terms and conditions 
applicable to programs which may be made available to livestock 
producers under various statutory provisions. Unless otherwise 
specified, the regulations in this subpart shall apply to all programs 
operated under this part.
    (b) The regulations in this part 1439 in effect prior to March 17, 
1999. (See 7 CFR Parts 1200 to 1599, revised as of January 1, 1999) are 
applicable with respect to any emergency livestock assistance program 
which existed prior to March 17, 1999.


Sec. 1439.2  Administration.

    (a) This part shall be administered by CCC through, and as 
delegated to the Deputy Administrator for Farm Programs under the 
general direction and supervision of the Executive Vice President, CCC. 
The program shall be carried out in the field by State and county 
committees of the Farm Service Agency of the U.S. Department of 
Agriculture.
    (b) State and county committees, and representatives and employees 
thereof, do not have the authority to modify or waive any of the 
provisions of the regulations in this part, as amended or supplemented.
    (c) The State committee shall take any action required by this part 
which has not been taken by the county committee. The State committee 
shall also:
    (1) Correct, or require a county committee to correct, any action 
taken by such county committee which is not in accordance with this 
part; or
    (2) Require a county committee to withhold taking any action which 
is not in accordance with this part.
    (d) No delegation in this section to a State or county committee 
shall preclude the Executive Vice President, CCC, or a designee, from 
determining any question arising under the program or from reversing or 
modifying any determination made by a State or county committee. The 
Deputy Administrator may waive or modify deadlines or other program 
requirements of this part to the extent that such a waiver or 
modification is otherwise permitted by law and is determined to be 
appropriate, serves the goals of the program and does not adversely 
affect the operation of the program.


Sec. 1439.3  Definitions.

    The definitions set forth in this section shall be applicable to 
all subparts contained in this part unless otherwise noted, or the 
definitions conflict, in which case the definitions in the applicable 
subpart shall prevail.
    Carrying capacity means the number of acres of pasture required to 
provide 15.7 pounds of feed grain equivalent per day for 1 animal unit 
during the period the pasture is normally grazed.
    CCC means the Commodity Credit Corporation.
    Deputy Administrator or DAFP means the Deputy Administrator for 
Farm Programs, Farm Service Agency (FSA), or a designee.
    Equine animals used for food or in the production of food means 
horses, mules, and donkeys which are:
    (1) Used commercially for human food;
    (2) Maintained for commercial sale to processors of food for human 
consumption; or
    (3) Used in the production of food and fiber on the owner's farm, 
such as draft horses, or cow ponies.
    Executive Vice President means the Executive Vice President, CCC, 
or a designee of the Executive Vice President.
    FSA means the Farm Service Agency.
    Livestock producer means a person who is determined to receive 10 
percent or more of the person's gross income, as determined by the 
Secretary, from the production of livestock and is:
    (1) A citizen of, or legal resident alien in the United States; or
    (2) A farm cooperative, private domestic corporation, partnership, 
or joint operation in which a majority interest is held by members,

[[Page 13499]]

stockholders, or partners who are citizens of, or legal resident aliens 
in the United States; any Indian tribe under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et seq.); any 
Indian organization or entity chartered under the Indian Reorganization 
Act (25 U.S.C. 461 et seq.) or entity chartered under the Indian 
Reorganization Act; any tribal organization under the Indian Self-
Determination and Education Assistance Act; and any economic enterprise 
under the Indian Financing Act of 1974 (25 U.S.C. 1451 et seq.).
    Natural disaster means disease, insect infestation, flood, drought, 
fire, hurricane, earthquake, storm, hot weather, or other natural 
disaster.
    Person means a person as determined according to part 1400 of this 
chapter.
    Poultry means domesticated chickens, including egg-producing 
poultry, ducks, geese and turkeys.
    Secretary means the Secretary of Agriculture or a designee of the 
Secretary.
    Seeded small grain forage crops means wheat, barley, oats, rye, and 
triticale.
    State committee, State office, county committee, or county office, 
means the respective FSA committee or office.
    United States means all fifty states of United States, the 
Commonwealth of Puerto Rico, the Virgin Islands and Guam.


Sec. 1439.4  Liens and claims of creditors.

    Any payment or benefit or portion thereof due any person under this 
part shall be allowed without regard to questions of title under State 
law, and without regard to any claim or lien in favor of any person 
except agencies of the U.S. Government.


Sec. 1439.5  Assignments of payments.

    Payments which are earned by a person under this part may be 
assigned in accordance with the provisions of part 1404 of this chapter 
and the applicable forms for assignments.


Sec. 1439.6  Appeals.

    Any person who is dissatisfied with a determination made with 
respect to this part may make a request for reconsideration or appeal 
of such determination in accordance with the appeal regulations set 
forth at parts 780 and 11 of this title.


Sec. 1439.7  Misrepresentation, scheme or device.

    A person shall be ineligible to receive assistance under any 
program under this part if with respect to such program it is 
determined by the State committee or the county committee or an 
official of FSA that such person has:
    (a) Adopted any scheme or other device which tends to defeat the 
purpose of a program operated under this part;
    (b) Made any fraudulent representation with respect to such 
program; or
    (c) Misrepresented any fact affecting a program determination.


Sec. 1439.8  Refunds to CCC; joint and several liability.

    (a) In the event there is a failure to comply with any term, 
requirement, or condition for payment or assistance arising under this 
part, and if any refund of a payment to CCC shall otherwise become due 
in connection with this part, all payments made in regard to such 
matter shall be refunded to CCC, together with interest as determined 
in accordance with paragraph (b) of this section and late-payment 
charges as provided for in part 1403 of this chapter.
    (b) All persons with a financial interest in the operation shall be 
jointly and severally liable for any refund, including related charges, 
which is determined to be due CCC for any reason under this part.
    (c) Interest shall be applicable to refunds required of the 
livestock owner or other party receiving assistance or a payment if CCC 
determines that payments or other assistance were provided to the owner 
and the owner was not eligible for such assistance. Such interest shall 
be charged at the rate of interest which the United States Treasury 
charges CCC for funds, as of the date CCC made such benefits available 
of the monies or benefits to be refunded. Such interest that is 
determined to be due CCC shall accrue from the date such benefits were 
made available by CCC to the date of repayment or the date interest 
increases in accordance with part 1403 of this chapter. CCC may waive 
the accrual of interest if CCC determines that the cause of the 
erroneous determination was not due to any action of the livestock 
owner.
    (d) Interest determined in accordance with paragraph (c) of this 
section shall not be applicable to refunds required of the owner 
because of unintentional misaction on the part of the owner, as 
determined by CCC.
    (e) Late payment interest shall be assessed on all refunds in 
accordance with the provisions of, and subject to the rates prescribed 
in part 1403 of this chapter.
    (f) Persons who are a party to any program operated under this part 
must refund to CCC any excess payments made by CCC with respect to such 
program.
    (g) In the event that any request for assistance or payment under 
this part was established as result of erroneous information or a 
miscalculation, the assistance or payment shall be recomputed and any 
excess refunded with applicable interest.


Sec. 1439.9  Cumulative liability.

    The liability of any person for any penalty under this part or for 
any refund to CCC or related charge arising in connection therewith 
shall be in addition to any other liability of such person under any 
civil or criminal fraud statute or any other provision of law 
including, but not limited to, 18 U.S.C. 286, 287, 371, 641, 651, 1001 
and 1014; 15 U.S.C. 714m; and 31 U.S.C. 3729.


Sec. 1439.10  Benefits limitation.

    The total amount of benefits that a person, as determined in 
accordance with part 1400 of this chapter, shall be entitled to receive 
under any subpart may not exceed $40,000 for any one loss or year.


Sec. 1439.11  Gross revenue limitation.

    A person, as defined in part 1400 of this chapter, as applicable, 
who has annual gross revenue in excess of $2.5 million shall not be 
eligible to receive assistance under this part. For the purpose of this 
determination, annual gross revenue means:
    (a) With respect to a person who receives more than 50 percent of 
such person's gross income from farming and ranching, the total gross 
revenue received from such operations; and
    (b) With respect to a person who receives 50 percent or less of 
such person's gross income from farming and ranching, the total gross 
revenue from all sources.


Sec. 1439.12  Maintenance of books and records.

    Livestock producers or any other individual or entity seeking or 
receiving assistance under this part shall maintain and retain 
financial books and records which will permit verification of all 
transactions with respect to the provisions of this part for at least 3 
years, following the end of the calendar year in which assistance was 
provided, or for such additional period as CCC may request. An 
examination of such books and records by a duly authorized 
representative of the United States Government shall be permitted at 
any time during business hours.
    3. The subparts consisting of Secs. 1439.101 through 1439.104, 
1439.201 and 1439.202, 1439.301 and 1439.302, 1439.401 through 
1439.403, 1439.501

[[Page 13500]]

through 1439.504, 1439.601 and 1439.602, 1439.701 and 1439.702, and 
1439.800 through 1439.810 are removed.
    4. Subpart--1998 Livestock Assistance Program is added to read as 
follows:

Subpart--1998 Livestock Assistance Program

Sec.

1439.101  Applicability.
1439.102  Definitions.
1439.103  Application process.
1439.104  County committee determinations of general applicability.
1439.105  Loss criteria.
1439.106  Livestock producer eligibility.
1439.107  Calculation of assistance.
1439.108  Availability of funds.

Subpart--1998 Livestock Assistance Program


Sec. 1439.101  Applicability.

    (a) This subpart sets forth the terms and conditions applicable to 
the Livestock Assistance Program authorized by Pub. L. 105-277, 112 
Stat. 2681 (October 21, 1998). Benefits will be provided to eligible 
livestock producers in the United States but only in counties where a 
natural disaster occurred, and that were subsequently approved by the 
Deputy Administrator for Farm Programs. A county must have suffered a 
40-percent or greater grazing loss for 3 consecutive months during the 
1998 calendar year, as a result of damage due to a natural disaster, as 
determined by the Deputy Administrator or a designee. Grazing losses 
must have occurred on native and improved pasture with permanent 
vegetative cover and other crops planted specifically for the sole 
purpose of providing grazing for livestock, but does not include seeded 
small grain forage crops.
    (b) To be eligible for assistance under the program, a livestock 
producer's pastures in an eligible county must have suffered at least a 
40-percent loss of normal carrying capacity for a minimum of 3 
consecutive months. The percent of loss eligible for compensation shall 
not exceed the maximum percentage of grazing loss for the county as 
determined by the county committee. In addition, the producer will not 
be compensated for that part of any loss that would represent payment 
of a loss greater than 80 percent.
    (c) Unless otherwise specified, a livestock producer is eligible to 
receive payments for the same loss under this subpart and other 
programs under this part.


Sec. 1439.102  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering this subpart. The definitions in 
Sec. 1439.3 shall also be applicable, except where those definitions 
conflict with the definitions set forth in this subpart.
    Application means the Form CCC-740, Livestock Assistance Program 
Application. The CCC-740 is available at county FSA offices.
    LAP means the Livestock Assistance Program which is authorized by 
Section 1103 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1999 (Pub. L. 
105-277, 112 Stat. 2681 (October 21, 1998)) and authorized by this 
subpart, for grazing losses that occurred during calendar year 1998.
    Livestock means beef and dairy cattle, buffalo and beefalo (when 
maintained on the same basis as beef cattle), sheep, goats, swine, and 
equine animals used commercially for human food or kept for the 
production of food or fiber on the owner's farm.


Sec. 1439.103  Application process.

    (a) Livestock producers must submit a completed application prior 
to the close of business on March 31, 1999, or such other date as 
established by the Deputy Administrator. The application and any other 
supporting documentation shall be submitted to the county office with 
administrative authority over a producer's eligible grazing land or to 
the county office that maintains the farm records for the livestock 
producer.
    (b) Livestock producers shall certify as to the accuracy of all the 
information contained in the application, and provide any other 
information to CCC that the County Office or Committee deems necessary 
to determine the livestock producer's eligibility.


Sec. 1439.104  County committee determinations of general 
applicability.

    (a) County Committees shall determine whether due to natural 
disasters their county has suffered a forty percent loss affecting 
pasture and normal grazing crops for at least 3 consecutive months 
during calendar year 1998. In making this determination, County 
committee, using the best information available from sources including 
but not limited to: Extension Service; Natural Resources Conservation 
Service; the Palmer Drought Index; and general knowledge of local 
rainfall data, pasture losses, grazing livestock movement out of 
county, abnormal supplemental feeding practices for livestock on 
pasture, and liquidation of grazing livestock shall determine the 
percentage of grazing losses for pastures on a county wide basis. The 
county committee shall submit rainfall data, percentage of grazing 
losses for each general type of pasture, and the weighted average 
percentage of grazing loss for the county, with State Committee 
concurrence, to the Deputy Administrator on CCC-654. The maximum 
grazing losses the county committees shall submit on CCC-654 is 80 
percent. These determinations shall be subject to review and approval 
of the Deputy Administrator. For purposes of this subpart, such 
counties are called ``eligible counties.''
    (b) In each county, the county committee shall determine a LAP crop 
year. The LAP crop year shall be that period of time in a calendar year 
that begins with the date grazing of new growth pasture normally begins 
and ends on the date grazing without supplemental feeding normally ends 
in the county.
    (c) In and for each eligible county, the county committee shall 
determine normal carrying capacities for each type of grazing or 
pasture during the LAP crop year. The normal carrying capacity for the 
LAP crop year shall be the normal carrying capacity the County 
Committee determines could be expected from pasture and normal grazing 
crops for livestock for the LAP crop year if a natural disaster had not 
diminished the production of these grazing crops.
    (d) In each eligible county, the county committee shall determine 
the payment period for the county. The payment period for the county 
shall be the period of time during the county's LAP crop year where for 
3 consecutive months during 1998, the carrying capacity for grazing 
land or pasture was reduced by forty percent or more from the normal 
carrying capacity.


Sec. 1439.105  Loss criteria.

    (a) The grazing land for which a livestock producer requests 
benefits must be within the physical boundary of the eligible county. 
Livestock producers in unapproved counties contiguous to an eligible 
county will not receive benefits under this subpart.
    (b) To be eligible for benefits under this subpart, a livestock 
producer in an eligible county must have suffered a loss of grazing 
production equivalent to at least a forty percent loss of normal 
carrying capacity for a minimum of 3 consecutive months.
    (c) A producer shall certify each type of pasture and percentage of 
loss suffered by each type on the application. To establish the 
percentage of grazing loss, producers shall consider the amount of 
available grazing production during the LAP crop year,

[[Page 13501]]

whether more than the normal acreage of grazing land was required to 
support livestock during the LAP crop year, and whether supplemental 
feeding of livestock began earlier or later than normal.
    (d) The county committee shall determine the producer's grazing 
loss and shall consider the amount of available grazing production 
during the LAP crop year, whether more than the normal acreage of 
grazing land was required to support livestock during the LAP crop 
year, and whether supplemental feeding of livestock began earlier or 
later than normal. The county committee shall request the producer to 
provide proof of loss of grazing production if the county committee 
determines the producer's certified loss exceeds other similarly 
situated livestock producers.
    (e) The percentage of loss claimed by a livestock producer shall 
not exceed the maximum allowable percentage of grazing loss for the 
county as determined by the county committee according to 
Sec. 1439.104(a). Livestock producers will not receive benefits under 
this subpart for any portion of their loss that exceeds 80 percent of 
normal carrying capacity.
    (f) Conservation Reserve Program acres released for haying and/or 
grazing and seeded small grain forage crops shall not be used to 
calculate losses under this subpart.


Sec. 1439.106  Livestock producer eligibility.

    (a) Only one livestock producer will be eligible for benefits under 
this subpart with respect to an individual animal.
    (b) Only owners of livestock who themselves provide the pasture or 
grazing land, including cash leased pasture or grazing land, for the 
livestock may be considered as livestock producers eligible to apply 
for benefits under this subpart.
    (c) An owner of livestock who uses another person to provide 
pasture or grazing land on a rate-of-gain basis is not considered to be 
the livestock producer eligible to apply for benefits under this 
subpart.
    (d) An owner who pledges livestock as security for a loan shall be 
considered as the person eligible to apply for benefits under this 
subpart if all other requirements of this part are met. Livestock 
leased under a contractual agreement which has been in effect at least 
3 months and establishes an interest for the lessee in such livestock 
shall be considered as being owned by the lessee.
    (e) Livestock must have been owned for at least three months before 
becoming eligible for payment.
    (f) The following entities are not eligible for benefits under this 
subpart:
    (1) State or local governments or subdivisions thereof; or
    (2) Any individual or entity who is a foreign person as determined 
in accordance with the provisions of Secs. 1400.501 and 1400.502 of 
this chapter.


Sec. 1439.107  Calculation of assistance.

    (a) The value of LAP assistance determined with respect to a 
livestock producer for each type and weight class of livestock owned or 
leased by such producer shall be the lesser of the amount of paragraph 
(b) of this section (the total value of lost feed needs for eligible 
livestock) or paragraph (c) of this section (the total value of lost 
eligible pasture), as calculated in this section.
    (b) The total value of lost feed needs shall not exceed the amount 
obtained by multiplying:
    (1) The number of days in the payment period the livestock are 
owned or, in the case of purchased livestock, meet the 3 month 
ownership requirement; by
    (2) The number of pounds of corn per day, as established by CCC, 
that is determined necessary to provide the energy requirements 
established for the weight class and type of livestock; by
    (3) The five-year national average market price for corn ($2.56 
bushel or $.0457 per pound); by
    (4) The number of eligible animals of each type and weight range of 
livestock owned or leased by the person; by
    (5) The percent of the producer's grazing loss during the relevant 
period as certified by the producer and approved by the county 
committee according to Sec. 1439.105.
    (c) The total value of lost eligible pasture shall not exceed the 
amounts for each type of pasture calculated by:
    (1) Dividing the number of acres of each pasture type by the 
carrying capacity established for the pasture; and multiplying:
    (2) The result of paragraph (c)(1) of this section for each pasture 
type; by
    (3) $0.71771 ($0.0457 x 15.7); by
    (4) The applicable number of days in the LAP payment period; by
    (5) The percent of the producer's grazing loss during the relevant 
period as certified by the producer and approved by the county 
committee according to Sec. 1439.105.
    (d) The final payment shall be the smaller of paragraph (b) of this 
section or paragraph (c) of this section multiplied by the national 
factor if required under Sec. 1439.108. The final payment shall not 
exceed 50 percent of the smaller of paragraph (b) or (c) of this 
section determined prior to applying the national factor provided for 
in Sec. 1439.108.
    (e) Seeded small grain forage crops shall not be counted as grazing 
land under paragraph (c) of this section with respect to supporting 
eligible livestock.
    (f) The number of equine animals that are used to calculate 
benefits under this subpart and in paragraph (a) of this section are 
limited to the number actually needed to produce food and fiber on the 
producer's farm or to breed horses and mules to be used to produce food 
and fiber on the owner's farm, and shall not include animals which are 
used for recreational purposes or are running wild or uncontrolled on 
land owned or leased by the owner.


Sec. 1439.108  Availability of funds.

    In the event that the total amount of claims submitted under this 
subpart exceeds the $200 million appropriated for LAP, each payment 
shall be reduced by a uniform national percentage. Such payment 
reductions shall be after the imposition of applicable payment 
limitation provisions.

    Signed at Washington, DC, on March 11, 1999.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 99-6429 Filed 3-17-99; 9:47 am]
BILLING CODE 3410-05-P