[Federal Register Volume 64, Number 122 (Friday, June 25, 1999)]
[Rules and Regulations]
[Pages 34109-34113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16167]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 64, No. 122 / Friday, June 25, 1999 / Rules
and Regulations
[[Page 34109]]
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DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service
7 CFR Part 301
[Docket No. 96-016-35]
RIN 0579-AA83
Karnal Bunt; Compensation for the 1997-1998 Crop Season
AGENCY: Animal and Plant Health Inspection Service, USDA.
ACTION: Final rule.
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SUMMARY: We are amending the Karnal bunt regulations to provide
compensation for certain growers, handlers, seed companies, owners of
grain storage facilities, flour millers, and participants in the
National Karnal Bunt Survey who incur losses and expenses because of
Karnal bunt in the 1997-1998 crop season. The payment of compensation
is necessary in order to reduce the economic impact of the Karnal bunt
regulations on affected wheat growers and other individuals, and to
help obtain cooperation from affected individuals in efforts to contain
and reduce the prevalence of Karnal bunt.
EFFECTIVE DATE: June 25, 1999.
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; or e-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
Karnal bunt is a 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,
primarily through the movement of infected seed. In the absence of
measures taken by the Animal and Plant Health Inspection Service
(APHIS), U.S. Department of Agriculture (USDA), to prevent its spread,
the establishment of Karnal bunt in the United States could have
significant consequences with regard to the export of wheat to
international markets. The regulations regarding Karnal bunt are in 7
CFR 301.89-1 through 301.89-16 (referred to below as the regulations).
Among other things, the regulations define areas regulated for Karnal
bunt and restrict the movement of certain regulated articles, including
wheat seed and grain, from the regulated areas.
On December 17, 1998, we published a proposed rule in the Federal
Register (63 FR 69563-69569, Docket No. 96-016-31), to amend the
regulations to provide compensation for certain growers, handlers, seed
companies, owners of grain storage facilities, flour millers, and
participants in the National Karnal Bunt Survey who incurred losses and
expenses because of Karnal bunt in the 1997-1998 crop season. The
compensation we proposed was the same as we provided in the 1996-1997
crop season.
For areas under the first crop season of regulation in 1997-1998,
we proposed that growers, handlers, and seed companies would be
eligible for a maximum of $1.80 per bushel of positive-testing wheat.
For areas that were regulated in previous crop seasons, we proposed
that growers, handlers, and seed companies would be eligible for $.60
per bushel of positive-testing wheat. For owners of grain storage
facilities, we proposed to compensate for up to 50 percent of the
direct cost of decontamination of a grain storage facility, but
compensation would not exceed $20,000 per facility. For flour millers,
we proposed to compensate for the treatment of millfeed at the rate of
$35.00 per short ton of millfeed if APHIS required the millfeed to be
treated. For National Karnal Bunt Survey participants, we proposed to
compensate for positive-testing wheat at a maximum of $1.80 per bushel,
and for up to 50 percent of the direct cost of decontamination of grain
storage facilities, but not exceeding $20,000 per facility.
We solicited comments concerning our proposal for 60 days ending
February 16, 1999. We received seven comments by that date. They were
from wheat industry associations, wheat producers and handlers, State
departments of agriculture, and a food manufacturer. All of the
commenters recommended additions or revisions to the proposed
compensation. The comments are discussed below by topic.
In the proposed rule, we said that all regulated areas in the 1997-
1998 crop season were previously regulated areas, and would, therefore,
be eligible for the $.60 per bushel compensation rate. Two commenters
said that (1) the ``certification are'' established by APHIS in August
1998 is a ``first regulated crop season'' area and positive wheat from
that area should get at least $1.80 per bushel compensation, and (2)
the maximum $1.80 per bushel will not cover their losses, and we should
offer the same maximum of $2.50 per bushel that we offered in the 1995-
1996 crop season (the first year we regulated for Karnal bunt).
We are not making any changes to the proposed rule based on these
comments. However, we agree with the commenters that wheat from the
certification area that tested positive for Karnal bunt should be
eligible for up to $1.80 per bushel compensation under the provisions
for first regulated crop season areas. The certification area was
established by APHIS as an emergency measure in August 1998 when random
sampling of fields in Arizona showed there was a concentration of
positive fields in a specific area. APHIS drew a boundary around the
positive fields and called it a ``certification area.'' All of the
certification area was within the regulated area in Arizona. Most of
the fields within the certification area were classified as restricted
areas for seed; the remaining fields were classified as surveillance
areas. Under the regulations, wheat grain may move from restricted
areas for seed without testing. Wheat grain from surveillance areas
must be tested before movement from the area. When the certification
area was established in August 1998, APHIS required all wheat grain
that had not already moved out of the certification area to be tested
for bunted kernels before movement from the area.
Wheat grain growers and handlers from the portion of the
certification area
[[Page 34110]]
that was outside the surveillance areas did not expect restrictions on
the movement of their wheat grain at the time they made their planting
and contract decisions. It is consistent with the intent of the
compensation regulations to consider the certification area outside of
the surveillance areas to be under the first regulated crop season for
1997-1998. Therefore, growers, handlers, and seed companies who sold
positive-testing wheat from the certification area outside of the
surveillance areas will be eligible for up to $1.80 per bushel
compensation. Positive-testing wheat grain from the surveillance areas
within the certification area would be eligible for $.60 per bushel.
This decision does not require any change to the proposed regulations.
One commenter said that $.60 per bushel is inadequate to compensate
for losses from positive-testing breeder or foundation seed. Breeder
and foundation seed are stages in the seed production process that come
before the final stage of certified seed (certified seed is the seed
sold for planting). The commenter said that seed companies lost future
royalties from not being able to use positive-testing breeder or
foundation seed as stock for producing large quantities of certified
seed. The commenter also said that the contract price for foundation
seed is normally $27.00 per bushel. The commenter asked us to offer
higher compensation for breeder and foundation seed to cover these
losses.
We are not making any changes to the proposed rule based on this
comment. We have not compensated in the past for losses in future
royalties or for other losses at the early stages of seed production.
The loss in value of certified, market-ready seed is the most
quantifiable and direct loss associated with actions taken by APHIS to
prevent the spread of Karnal bunt. Many losses connected with seed in
other stages of production are less quantifiable and may have been
otherwise imposed by market forces, such as market demand and prices
over the long term.
One commenter said that we should offer the same $1.80 per bushel
compensation for all positive wheat, and not offer less ($.60 per
bushel) for wheat from previously regulated areas. We are not making
any changes based on this comment. We continue to believe it is
appropriate to provide a lower level of compensation to growers,
handlers, and seed companies from previously regulated areas. Growers,
handlers, and seed companies in areas under the first regulated crop
season would not have known that their area was to become regulated at
the time they made their planting and many of their contracting
decisions, and would not have been prepared for the loss in value of
their wheat due to Karnal bunt. Growers, handlers, and seed companies
in previously regulated areas knew they were in an area regulated for
Karnal bunt at the time they made planting and contracting decisions
for the 1997-1998 crop season. Understanding the restrictions, and
realizing they were planting in a higher risk area, they could have
chosen to alter their planting and contracting decisions to avoid
losses from positive wheat. We believe the proposed compensation
amounts are appropriate for the circumstances in each area.
Several commenters requested compensation for losses not addressed
in the proposed rule, such as demurrage charges, the cost of cleaning
contaminated railcars, and losses due to transportation delays caused
by the Karnal bunt regulations. We are not making any changes to the
proposed rule in response to these comments. We have not offered
compensation for these costs and losses in past crop seasons. However,
we have made a decision to provide some compensation for railcar
cleaning and demurrage costs that were incurred in the 1995-1996 crop
season due to the presence of Karnal bunt spores found in wheat in
railcars. We are not offering compensation for railcar cleaning and
demurrage costs for other crop seasons. Unlike handlers in later crop
seasons, handlers in the 1995-1996 crop season would not have been
prepared for potential costs associated with shipping wheat from the
newly quarantined area. At the time of the 1995-1996 wheat harvest in
Arizona, California, and New Mexico, the extent of Karnal bunt
infestation was not completely known. In addition, even though samples
were taken at the field level for testing, the testing did not reveal
all the positive wheat in the affected area. The result was that
significant quantities of positive wheat were commingled with negative
wheat in railcars, and, when samples were taken from railcars for
testing, high numbers of railcars with positive wheat were found. In
subsequent crop seasons, the areas at higher risk for Karnal bunt were
known, and handlers were able to take precautions to not commingle
wheat from higher risk areas with wheat from other areas or to not move
wheat from higher risk areas out of the regulated area.
During the 1995-1996 crop season, wheat in 22 railcars in
California and 416 railcars in Arizona tested positive for Karnal bunt
and the railcars were required to be cleaned, at an estimated cost of
$50 per car. The time taken to remove the positive wheat from and clean
the railcars often resulted in several days of demurrage charges, at a
cost of about $50 per car per day (demurrage is charged by a railcar
company to compensate for delays, such as if a handler fails to load or
unload freight within the time allowed) . We estimate that the total
cost of railcar cleaning and demurrage in the 1995-1996 crop season was
$750,000. APHIS will contact all eligible claimants with information on
how to submit claims.
The following comments did not address compensation and, therefore,
are not within the scope of the proposed rule. Nevertheless, they are
addressed below.
Two commenters said that Karnal bunt is not a dangerous plant pest,
and asked that we work with trading partners to advocate international
deregulation of Karnal bunt. We agree with the commenters that Karnal
bunt is a minor crop pest in that it produces little direct economic
loss to agricultural production. Research and information from USDA's
Agricultural Research Service and international scientists support this
view. However, international trading partners continue to consider
Karnal bunt a quarantine issue, jeopardizing exports of U.S. wheat.
Therefore, we continue to regulate the movement of wheat from areas
affected by Karnal bunt to protect our export markets, although we are
relieving restrictions on growers, handlers, and seed companies as
appropriate.
We have taken steps to address international views on appropriate
levels of protection against minor crop pests like Karnal bunt. In
cooperation with the North American Plant Protection Organization
(NAPPO), APHIS hosted an international symposium in 1997 to assess the
importance of bunt and smut diseases of wheat for quarantine purposes.
Following this symposium, at the request of NAPPO, the International
Plant Protection Convention Secretariat convened a science panel in
June 1998 to evaluate the issue of categorizing regulated pests that
have minor biological impacts, like Karnal bunt, for the purpose of
determining the appropriate strength of protective measures for these
types of pests. The science panel concluded that it was unnecessary and
inappropriate to create a specific category for pests that have minor
biological impact and that countries should rely on the current pest
risk analysis process (under the World Trade Organization ``Agreement
[[Page 34111]]
on the Application of Sanitary and Phytosanitary Measures'') as the
basis for determining the strength of protective measures. We are
continuing to work with our international trading partners to minimize
the impact of Karnal bunt on wheat trade.
One commenter asked that we deregulate the Bard-Winterhaven area in
California. One commenter asked that we address the issue of Mexico not
accepting wheat from parts of California outside the regulated areas.
We recently published a final rule that removes the Bard-Winterhaven
area in Imperial County, CA, from the regulations (see Docket No. 96-
016-36, 64 FR 23749-23754, published in the Federal Register on May 4,
1999). In regard to wheat exports to Mexico, we are working with the
Government of Mexico to establish mutually recognized criteria for
considering areas as free of Karnal bunt.
Therefore, for the reasons given in the proposed rule and in this
document, we are adopting the proposed rule as a final rule, without
change.
Effective Date
This is a substantive rule that provides compensation to persons
who experienced economic losses in the 1997-1998 crop season because of
the Karnal bunt regulations and emergency actions. Immediate action is
necessary to compensate for these losses. Therefore, pursuant to the
provisions of 5 U.S.C. 553, the Administrator of the Animal and Plant
Health Inspection Service finds good cause for making this rule
effective upon publication in the Federal Register.
Executive Order 12866 and Regulatory Flexibility Act
This rule has been reviewed under Executive Order 12866. The rule
has been determined to be significant for the purposes of Executive
Order 12866 and, therefore, has been reviewed by the Office of
Management and Budget.
This final rule establishes compensation provisions for certain
growers, handlers, seed companies, owners of grain storage facilities,
flour millers, and participants in the National Karnal Bunt Survey to
mitigate losses and expenses incurred in the 1997-1998 crop season
because of the Karnal bunt regulations and emergency actions.
In accordance with Executive Order 12866, this analysis examines
the economic costs and benefits of providing such compensation. The
wheat industry within the regulated area is largely composed of
businesses that can be considered ``small'' according to guidelines
established by the Small Business Administration. Therefore, this
analysis also fulfills the requirements of the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.), which require agencies to consider the
economic effects of rules on small entities.
Upon detection of Karnal bunt in Arizona in March 1996, Federal
quarantine and emergency actions were imposed to prevent the interstate
spread of the disease to other wheat producing areas in the United
States. The unexpected discovery of Karnal bunt and subsequent Federal
emergency actions disrupted the production and marketing flows of wheat
in the quarantined areas. We estimate that the impact of Karnal bunt
and subsequent Federal actions on the wheat industry totaled $44
million in the 1995-1996 crop season.
In order to alleviate some of the economic hardships and to ensure
full and effective compliance with the regulatory program, we offered
compensation in the 1995-1996 and 1996-1997 crop seasons to mitigate
certain losses to growers, handlers, seed companies, and other affected
persons in the areas regulated for Karnal bunt. The payment of
compensation is in recognition of the fact that, while benefits from
regulation accrue to a large portion of the wheat industry outside the
regulated areas, the regulatory burden falls predominately on a small
segment of the affected wheat industry within the regulated areas. The
compensation in this final rule for the 1997-1998 crop season is the
same as the compensation offered in the 1996-1997 crop season.
Under this final rule, growers, handlers, and seed companies will
be eligible for compensation for losses in the 1997-1998 crop season
due to wheat grain or seed that tested positive for Karnal bunt. Only
positive-testing wheat will be eligible for compensation because of the
lack of restrictions on the movement of negative-testing wheat. As in
the 1996-1997 crop season, we are offering different levels of
compensation depending on whether the wheat was grown in an area under
the first regulated crop season or in a previously regulated area. An
area in the first regulated crop season is an area that became
regulated for Karnal bunt after the 1997-1998 crop was planted. A
previously regulated area is an area that became regulated for Karnal
bunt before the 1997-1998 crop was planted.
For growers, handlers, and seed companies in previously regulated
areas, compensation for positive grain or seed will be $.60 per bushel.
Growers, handlers, and seed companies in areas under the first
regulated crop season will be eligible for compensation at a rate not
to exceed $1.80 per bushel. These compensation rates apply to both
wheat grain and seed. The difference in compensation rates reflects the
fact that affected entities in areas under the first regulated crop
season would not have known that their area was to become regulated for
Karnal bunt at the time that they made planting and contracting
decisions, and would not have been prepared for the loss in value of
their wheat due to Karnal bunt. Growers and handlers in previously
regulated areas knew they were in an area regulated for Karnal bunt at
the time that they made planting and contracting decisions for the
1997-1998 crop season. Given the restrictions, growers and handlers
could have chosen to alter planting or contract decisions to avoid
experiencing potential losses due to Karnal bunt.
We have completed testing of 1997-1998 harvest wheat from the
surveillance areas in Arizona, California, New Mexico, and Texas. The
amount of positive wheat from the surveillance areas is shown in the
table below. The table also shows levels of positive wheat from an area
called the certification area. The certification area was established
by APHIS as an emergency measure in August of 1998 when random sampling
of fields in Arizona showed there was a concentration of positive
fields in a specific area. As discussed in the response to comments in
this final rule, growers, handlers, and seed companies with positive
wheat from the certification area (not including surveillance areas
within the certification area) will be eligible for first regulated
crop season compensation (maximum of $1.80 per bushel). We have not
completed testing of wheat from the certification area outside of the
surveillance areas. Therefore, the amounts shown in the table below are
estimated based on the rate of infection we have found to date from the
certification area. It should be noted that, in the proposed rule, we
estimated that compensation for wheat grain and seed in the 1997-1998
crop season would total $87,000. The estimated total compensation in
the table below is significantly higher due to a higher than expected
infection rate and the higher rate of compensation for growers,
handlers, and seed companies in the certification area.
[[Page 34112]]
Compensation for Positive-Testing Wheat in the 1997-1998 Crop Season
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Total bushels Maximum Estimated
of wheat Positive compensation total
harvested wheat, bushels per bushel compensation
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Arizona, surveillance area...................... 1,577,858 284,042 $.60 $170,425
Arizona, certification area \1\................. 3,328,234 977,482 1.80 1,759,468
(estimated)
California...................................... 1,910,792 10,302 .60 6,181
New Mexico...................................... 318,000 0 .60 0
Texas........................................... 784,200 0 .60 0
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Totals...................................... 7,919,084 1,271,826 .............. 1,936,074
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\1\ We estimate that the field infection rate in the Arizona certification area in 1998 was 6.45 percent. The
amount of positive bushels in the Arizona certification area shown in this table does not reflect the field
infection rate in this area. This is due to the fact that positive wheat was commingled with negative wheat in
grain storage facilities in the certification area before it was known that the wheat was positive, resulting
in a higher infection rate per bushel.
This final rule also provides compensation for the decontamination
of grain storage facilities found with positive wheat, the treatment of
millfeed, and participants in the National Karnal Bunt Survey whose
wheat or grain storage facility is found to be positive for Karnal
bunt.
Compensation for decontamination of grain storage facilities will
be on a one-time-only basis for up to 50 percent of the cost of
decontamination, not to exceed $20,000 per facility. In the 1997-1998
crop season, only one grain storage facility was required to be
decontaminated.
Compensation for the cost of heat treating millfeed that APHIS
requires to be treated is at the rate of $35.00 per short ton of
millfeed. Under current regulations, APHIS requires heat treatment of
millfeed made from wheat that tested positive for Karnal bunt. In the
1997-1998 crop season, no positive wheat was used for milling;
therefore, no heat treatment of millfeed was required.
No new areas were regulated in the 1997-1998 crop season as a
result of the National Karnal Bunt Survey. Therefore, no one will be
eligible for compensation for National Karnal Bunt Survey participants
under this final rule. (As discussed previously, although no new areas
were regulated in the 1997-1998 crop season as a result of the National
Karnal Bunt Survey, producers within the certification area in Arizona
will be eligible for first regulated crop season compensation. The
additional restrictions imposed in the certification area in the 1997-
1998 crop season were not as a result of testing done for the National
Karnal Bunt Survey.)
There are approximately 18,000 acres within the areas regulated for
Karnal bunt where planting of wheat was prohibited in the 1997-1998
crop season. This rule does not contain provisions for compensating
growers in areas where wheat planting is prohibited, since many of
these growers rotate wheat with other crops that are not prohibited
from being planted. These growers generate revenue from these other
crops, effectively minimizing the impact of the prohibition on planting
wheat.
Growers and handlers of wheat grain and seed, and wheat seed
companies, are the entities most affected by this rule. We estimate
that there are a total of 712 wheat growers in the regulated areas: 378
in Arizona, 48 in California, 200 in New Mexico, and 86 in Texas. There
are 149 growers in surveillance areas, and 563 growers in regulated
areas lying beyond surveillance areas.1 Most of these
entities have total sales of less than $0.5 million, the Small Business
Administration's threshold for classifying wheat producers as small
entities. Accordingly, the economic effects of this rule will largely
be on small entities.
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\1\ The 149 growers in surveillance areas are distributed as
follows: 54 in Arizona, 27 in California, 68 in Texas, and none in
New Mexico. The 563 growers in regulated areas lying beyond
surveillance areas are distributed as follows: 324 in Arizona, 21 in
California, 200 in New Mexico, and 18 in Texas.
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We expect this rule will have a positive economic effect on all
affected entities, large and small. Compensation for the loss in value
of wheat that tests positive for Karnal bunt serves to encourage
compliance with testing requirements within the regulated area, thereby
aiding in the preservation of an important wheat growing region in the
United States. It also serves to encourage participation in the
National Karnal Bunt Survey.
Under these circumstances, the Administrator of the Animal and
Plant Health Inspection Service has determined that this action will
not have a significant economic impact on a substantial number of small
entities.
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 12988
This rule has been reviewed under Executive Order 12988, 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 final rule have been
approved by the Office of Management and Budget (OMB). The assigned OMB
control number is 0579-0140.
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant diseases and pests, Quarantine,
Reporting and recordkeeping requirements, Transportation.
Accordingly, we are amending 7 CFR part 301 as follows:
PART 301--DOMESTIC QUARANTINE NOTICES
1. The authority citation for part 301 continues to read as
follows:
Authority: 7 U.S.C. 147a, 150bb, 150dd, 150ee, 150ff, 161, 162,
and 164-167; 7 CFR 2.22, 2.80, and 371.2(c).
2. Section 301.89-15 is amended by revising the section heading,
the introductory text to the section, the
[[Page 34113]]
introductory text to paragraph (a), all of paragraph (b), the
introductory text to paragraph (c), and the last sentence of paragraph
(c)(2), to read as follows:
Sec. 301.89-15 Compensation for growers, handlers, and seed companies
in the 1996-1997 and 1997-1998 crop seasons.
Growers, handlers, and seed companies are eligible to receive
compensation from the United States Department of Agriculture (USDA)
for the 1996-1997 and 1997-1998 crop seasons to mitigate losses or
expenses incurred because of the Karnal bunt regulations and emergency
actions, as follows:
(a) Growers, handlers, and seed companies in areas under first
regulated crop season. Growers, handlers, and seed companies are
eligible to receive compensation for the loss in value of their wheat
in accordance with paragraphs (a)(1) and (a)(2) of this section if: the
wheat was grown in a State where the Secretary has declared an
extraordinary emergency; and, the wheat was grown in an area of that
State that became regulated for Karnal bunt after the crop was planted,
or for which an Emergency Action Notification (PPQ Form 523) was issued
after the crop was planted; and, the wheat was grown in an area that
remained regulated or under Emergency Action Notification at the time
the wheat was sold. Growers, handlers, and seed companies in areas
under the first regulated crop season are eligible for compensation for
1996-1997 crop season wheat or 1997-1998 crop season wheat (as
appropriate) and for wheat inventories in their possession that were
unsold at the time the area became regulated. The compensation provided
in this section is for wheat grain, certified wheat seed, and wheat
grown with the intention of producing certified wheat seed.
* * * * *
(b) Growers, handlers, and seed companies in previously regulated
areas. Growers, handlers, and seed companies are eligible to receive
compensation for the loss in value of their wheat in accordance with
paragraphs (b)(1) and (b)(2) of this section if: the wheat was grown in
a State where the Secretary has declared an extraordinary emergency;
and, the wheat was grown in an area of that State that became regulated
for Karnal bunt before the crop was planted, or for which an Emergency
Action Notification (PPQ Form 523) was issued before the crop was
planted; and, the wheat was grown in an area that remained regulated or
under Emergency Action Notification at the time the wheat was sold.
Growers, handlers, and seed companies in previously regulated areas are
eligible for compensation only for 1996-1997 or 1997-1998 crop season
wheat. The compensation provided in this section is for wheat grain,
certified wheat seed, and wheat grown with the intention of producing
certified wheat seed.
(1) Growers. Growers of wheat in a previously regulated area who
sell wheat that was tested by APHIS and found positive for Karnal bunt
prior to sale, or that was tested by APHIS and found positive for
Karnal bunt after sale and the price received by the grower is
contingent on the test results, are eligible to receive compensation at
the rate of $.60 per bushel of positive testing wheat.
(2) Handlers and seed companies. Handlers and seed companies who
sell wheat grown in a previously regulated area are eligible to receive
compensation only if the wheat was not tested by APHIS prior to
purchase by the handler, but was tested by APHIS and found positive for
Karnal bunt after purchase by the handler or seed company, as long as
the price to be paid by the handler or seed company is not contingent
on the test results. Compensation will be at the rate of $.60 per
bushel of positive testing wheat.
(c) To claim compensation. Compensation payments to growers,
handlers, and seed companies under paragraphs (a) and (b) of this
section will be issued by the Farm Service Agency (FSA). Claims for
compensation for the 1996-1997 crop season must be received by FSA on
or before October 8, 1998. Claims for compensation for the 1997-1998
crop season must be received by FSA on or before October 25, 1999. The
Administrator may extend the deadline, upon request in specific cases,
when unusual and unforeseen circumstances occur which prevent or hinder
a claimant from requesting compensation on or before these dates. To
claim compensation, a grower, handler, or seed company must complete
and submit to the local FSA county office the following documents:
* * * * *
(2) Growers. * * * Growers compensated under paragraph (b)(1) of
this section (previously regulated areas) whose wheat was not tested
prior to sale must submit documentation showing that the price paid to
the grower was contingent on test results (such as a copy of the
receipt for the final sale of the wheat or a copy of the contract the
grower has for the wheat, if this information appears on those
documents).
* * * * *
Sec. 301.89-16 [Amended]
3. Section 301.89-16 is amended as follows:
a. In the heading, by removing the words ``1996-1997 crop season''
and adding the words ``1996-1997 and 1997-1998 crop seasons'' in their
place.
b. In the introductory text, by removing the words ``1996-1997 crop
season'' and adding the words ``1996-1997 and 1997-1998 crop seasons''
in their place.
c. In paragraphs (a), (b), (c)(1), and (c)(2), by removing the last
two sentences in each paragraph and by adding three sentences in their
place to read as follows: ``Claims for compensation for the 1996-1997
crop season must be received by APHIS on or before October 8, 1998.
Claims for compensation for the 1997-1998 crop season must be received
by APHIS on or before October 25, 1999. The Administrator may extend
these deadlines upon written request in specific cases, when unusual
and unforeseen circumstances occur which prevent or hinder a claimant
from requesting compensation on or before these dates.''
Done in Washington, DC, this 18th day of June 1999.
Craig A. Reed,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 99-16167 Filed 6-24-99; 8:45 am]
BILLING CODE 3410-34-P