[Federal Register Volume 64, Number 167 (Monday, August 30, 1999)]
[Rules and Regulations]
[Pages 47097-47099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22484]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 761

RIN 0560-AF70


Small Hog Operation Payment Program

AGENCY: Farm Service Agency, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule amends the regulations for the Small Hog 
Operations Payment (SHOP) Program. Enactment of the 1999 Emergency 
Supplemental Appropriations Act has made more funds available for the 
SHOP program. This will allow the Department to spend up to $175 
million (including the $50 million allocated in the original, February 
10, 1999, (64 FR 6495) interim rule). Payments will be made to 
producers in the order in which they were filed, to the extent that 
funds are available. As amended in this rule, the SHOP program 
regulations would allow hog operations to receive up to $5,000 in total 
payments at a total rate of $10 per each eligible slaughter hog and 
$3.60 for eligible feeder pigs sold during the relevant marketing 
period. Also, this rule expands the program's eligibility provisions to 
allow operations to qualify so long as the operation did not sell 2,500 
or more hogs during the relevant marketing period. In the original 
rule, the limit was set at less than 1,000 hogs. SHOP program payments 
already received by an eligible operation will be deducted from the 
expanded eligible amount an operation may have under the new rules.

DATES: Effective August 26, 1999. Comments on this rule must be 
received by September 29, 1999, in order to be assured of 
consideration. Comments on the information collections in this rule 
must be received by October 29, 1999, in order to be assured of 
consideration.

ADDRESSES: Comments should be mailed to Grady Bilberry, Director, Price 
Support Division (PSD), Farm Service Agency (FSA), United States 
Department of Agriculture (USDA), STOP 0512, 1400 Independence Avenue, 
SW, Washington, DC 20250-0512 or Candace Thompson, Branch Chief, PSD, 
FSA, USDA, at the same address; telephone: (202) 720-7901; e-mail: 
[email protected]. Comments may be inspected in the 
Office of the Director, PSD, FSA, USDA, Room 4095 South Building, 
Washington, DC, between 7:30 a.m. and 4:30 p.m., Monday through Friday, 
except holidays. A copy of this interim rule is available on the PSD 
home page at 
http://www.fsa.usda.gov/dafp/psd/.

FOR FURTHER INFORMATION CONTACT: Candace Thompson, (202) 720-6689.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This interim rule is 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.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not

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applicable to this rule because the Farm Service Agency 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.

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, an Environmental Impact Statement is not 
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 
legal action may be brought regarding determinations of this rule, the 
administrative appeal provisions set forth at 7 CFR part 780 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 3014, subpart V, 
published June 24, 1983 (48 FR 29115).

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 the UMRA.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, FSA has 
submitted an emergency information collection request (ICR) to OMB for 
the approval of the Small Hog Operation Payment Program report as 
necessary for the proper functioning of the program.
    Title: Small Hog Operation Payment Program.
    OMB Control Number: 0560-0193.
    Type of Request: Reinstatement with change.
    Abstract: Hog operations are eligible to receive direct payments 
provided they make certifications that attest to their eligibility to 
receive such payments. These operations must certify: (1) The number of 
hogs marketed; (2) that the hogs were marketed during the last 6 months 
of 1998; (3) that the hogs were not marketed under a fixed-price or 
cost-plus contract; and (4) that the operation was still in the 
business of farming at the time of the SHOP Program request. The 
information collection will be used by FSA to approve Form FSA-1042 or 
to determine the program eligibility of the hog operation in accordance 
with this subpart. FSA considers the information collected essential to 
prudent eligibility determinations and payment calculations. The 
eligibility requirements have been established to target the direct 
payments towards smaller operations.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 15 minutes per response.
    Respondents: Hog Operations.
    Estimated Number of Respondents: 55,000.
    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 13,750 hours.
    Proposed topics for comment include: (a) Whether the 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 agency's estimate of burden including 
the validity of the methodology and assumptions used; (c) ways to 
enhance the quality, utility, and clarity of the information collected; 
or (d) ways to minimize the burden of the collection of the information 
on those who are to respond, including through 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, DC 
20503 and to Grady Bilberry, Director, Price Support Division, Farm 
Service Agency, United States Department of Agriculture, STOP 0512, 
1400 Independence Avenue, SW, Washington, DC 20250-0512, telephone 
(202) 720-7901.

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

    On February 10, 1999, regulations were published, by an interim 
rule (64 FR 6495), to establish the SHOP program.
    The SHOP program utilizes funds available under clause (3) of 
section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c). 
That clause permits Section 32 funds to be used to ``[r]eestablish 
farmers'' purchasing power by making payments in connection with the 
normal production of any agricultural commodity for domestic 
consumption.'' However, by statute, normally no more than 25 percent of 
the available Section 32 funds can be used in a fiscal year for any one 
agricultural commodity or the products therefrom.
    Taking into consideration that limit, $50 million in assistance 
were made available under the original SHOP program rule. Subsequently, 
however, the 1999 Emergency Supplemental Appropriations Act (Pub. L. 
106-31, enacted May 21, 1999) appropriated $145 million to be added to 
the Section 32 fund and allowed the Secretary, for fiscal year 1999, to 
waive the 25 percent limitation. Because of the availability of these 
additional funds, it has been determined that the SHOP program's 
eligibility provisions should be expanded and its payment rates 
increased. Before, a hog operation could, up to February 12, 1999, 
sign-up to qualify for up to $2,500 in SHOP program payments at $5 per 
eligible slaughter hog and $1.80 per eligible feeder pig hog, for hogs 
and feeder pigs marketed in the period from July 1, 1998 through 
December 31, 1998. However, no payment would be made if the operation 
marketed 1,000 or more head during that period. Under the new 
provisions of this interim rule, sign-up has been extended through 
September 24, 1999, the $2,500 has been increased to $5,000, the $5 
payment rate increased to $10, the $1.80 payment rate increased to 
$3.60, and the maximum allowable marketings raised from less than 1,000 
to less than 2,500. Payments already received will be deducted from the 
new benefit calculations and payments will continue to be subject to 
the proviso that, if a hog operation is owned by one or more 
individuals who have a gross revenue of $2.5 million or more in farming 
and ranching operations in calendar year 1998, the payment to the 
operation will be reduced by a pro rata amount based upon the ownership 
interest of such entity or individual. All other eligibility 
requirements as specified in the original rule also remain unchanged. 
The new eligibility

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requirements are consistent with the purposes of the original program, 
some of the comments in response to the original rule, and with the 
available funding. The regulations specify that no more than $175 
million in total may be expended under the SHOP program with the claims 
of old claimants given a first priority. For new claimants, the claims 
will be handled first-come, first-served, to the extent the $175 
million total has not been expended. However, it is expected that the 
total claims will be considerably below that amount.
    Hog operations may apply in person at county FSA offices during 
regular business hours by the close of business September 24, 1999, and 
at that time complete the application Form FSA-1042. Hog operations who 
applied for and received payment under the February 1999 SHOP program 
interim rule do not need to re-apply. Additional payments will be 
issued based upon the original application. Hog operations needing an 
application may request the SHOP program application by mail, 
telephone, or facsimile from their designated county FSA office, or 
obtain the application via the Internet. The Internet website is 
located at www.fsa.usda.gov/dafp/psd/. The completed application, Form 
FSA-1042, must be received by the hog operations' local county FSA 
office by the September 24 deadline and can be returned in person, by 
mail, or by facsimile.
    Because of the poor market conditions that have recently faced hog 
operations as specified in the February rule, particularly that have 
faced small hog operations, a delay in making this assistance available 
would be contrary to the public interest and the purpose of the statute 
authorizing additional assistance. Likewise and for those reasons it 
has been determined that to the extent that Section 801 of the Small 
Business Regulatory Enforcement Fairness Act of 1996 would otherwise 
apply, delaying this rule for Congressional review would be contrary to 
the public interest. Accordingly, it has been determined that this rule 
will be made effective immediately upon filing for public inspection at 
the Office of the Federal Register.

List of Subjects in 7 CFR Part 761

    Direct payments to small hog operations, Reporting and 
recordkeeping requirements.
    Accordingly, 7 CFR Part 761 is amended to read as follows:

PART 761--SMALL HOG OPERATION PAYMENT PROGRAM

    1. The authority citation for part 761 continues to read as 
follows:

    Authority: 7 U.S.C. 612c.

    2. Amend Sec. 761.4 by removing ``February 12, 1999'' and adding in 
its place ``September 24, 1999''.
    3. Amend Sec. 761.5 by removing ``1,000'' and adding in its place 
``2,500''.
* * * * *
    4. Revise Sec. 761.6 to read as follows:


Sec. 761.6  Rate of payment and limitations on funding.

    (a) Benefits under this part may be made to hog operations for the 
quantity of eligible slaughter hogs and feeder pigs actually marketed 
during the marketing period in accordance with the limitations set 
forth in this section. Payments will be calculated by operation and 
shall be made in an amount determined by:
    (1) Multiplying $3.60 by the number of eligible feeder pigs 
marketed during the marketing period; plus
    (2) Multiplying $10 by the number of eligible slaughter hogs 
marketed during the marketing period;
    (3) Limiting the payment per hog operation otherwise calculated 
under paragraphs (a)(1) and (2) of this section to $5,000; and
    (4) Reducing the amount due as calculated under paragraphs (a)(1) 
through (3) of this section by amounts previously paid under this part 
based on marketings in the same period and, for claims filed after 
February 12, 1999, by reducing the payment further to zero as necessary 
to insure subject to paragraph (c), that the total payments under this 
part do not exceed $175 million.
    (b) Producers who filed an application under this part prior to 
February 12, 1999, do not need to file another application in order to 
receive benefits at the increased rates announced in the Federal 
Register published on August 30, 1999. A producer who wishes to amend 
an application filed prior to February 12, 1999, may file an amended 
application by the deadline for new applications specified in 
Sec. 761.4 of this part.
    (c) To the extent that $175 million is not sufficient to cover all 
claims under this part, claims filed on or before February 12, 1999, 
shall be paid in full for the eligible hogs and feeder pigs which were 
the subject of that claim. For claims filed after that date, the claims 
will be paid in the manner deemed appropriate by FSA to assure, to the 
extent practicable, that the claims are paid in the order in which they 
are filed, until the available funds are expended at which point no 
additional claims will be paid.

    Signed at Washington, DC, on August 29, 1999.
Parks Shackelford,
Acting Administrator, Farm Service Agency.
[FR Doc. 99-22484 Filed 8-26-99; 10:09 am]
BILLING CODE 3410-05-P