[Federal Register Volume 64, Number 210 (Monday, November 1, 1999)]
[Rules and Regulations]
[Pages 58766-58769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28369]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1439 and 1477
RIN 0560-AF82
1999 Livestock Indemnity Program; 1998 Single-Year and Multi-Year
Crop Loss Disaster Assistance Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Interim rule and request for comments.
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SUMMARY: This interim rule sets forth the terms and conditions for the
1999 Livestock Indemnity Program, authorized by the 1999 Emergency
Supplemental Appropriations Act. The program will provide monetary
assistance to producers for livestock losses due to natural disasters
occurring between May 2, 1998, and May 21, 1999. Also, this rule sets
out a clarifying change regarding offsets and withholdings from
payments made in the crop disaster program operated under 7 CFR Part
1477.
DATES: Effective November 1, 1999. Comments on this rule and
information collection must be received by January 3, 2000, in order to
be assured of consideration.
ADDRESSES: Comments should be mailed to: Diane Sharp, Director,
Production, Emergencies, and Compliance Division, Farm Service Agency
(FSA), United States Department of Agriculture, STOP 0517, 1400
Independence Avenue, SW, Washington, DC 20250-0517, telephone (202)
720-7641, or send by e-mail to: [email protected].
Comments may be inspected in the Office of the Director, PECD, FSA,
USDA, Room 4752 South Building, Washington, DC, between 7:30 a.m. and
4:30 p.m., Monday through Friday, except holidays.
FOR FURTHER INFORMATION CONTACT: Rebecca Davis at (202) 720-7641.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This interim rule is issued in conformance with Executive Order
12866 and has been determined to be 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
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 rulemaking with respect to the subject
matter of this rule.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will have no significant impact on the quality of the human
environment. Therefore, neither an environmental assessment nor an
Environmental Impact Statement is needed.
Executive Order 12988
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.
[[Page 58767]]
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require intergovernmental consultation with State and
local officials. See the notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Unfunded Mandates 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
Title: Livestock Indemnity Program
OMB Control Number: 0560-0179
Type of Request: Reinstatement and revision of a previously
approved information collection.
Abstract: The information collected under OMB Control Number 0560-
0179, as identified above, is all that is currently demanded by FSA to
meet administrative and statutory requirements for the Livestock
Indemnity Program. Information collected from livestock producers will
be used by CCC to approve or determine the eligibility and amount of
assistance in accordance with this subpart. The CCC considers the
information collected essential to prudent eligibility and assistance
determinations. Failure to make sound decisions in providing livestock
indemnity program payments would result in inaccurate payments to
livestock producers and losses to the Government.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 2 hours per response.
Respondents: Livestock Producers
Estimated number of Respondents: 3,600
Estimated Number of Responses per Respondent: 2
Estimated Total Annual Burden on Respondents: 7,200 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 Diane Sharp, Director, Production, Emergencies, and
Compliance Division, Farm Service Agency, United States Department of
Agriculture, STOP 0517, 1400 Independence Avenue, SW, Washington, DC.
20250-0517, telephone (202) 720-7641.
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
Livestock Indemnity Program
This interim rule sets forth regulations that implement the
livestock indemnity provisions contained in the 1999 Emergency
Supplemental Appropriations Act (``1999 Act''), enacted on May 21,
1999. The 1999 Act appropriated $3,000,000 to the Secretary of
Agriculture to implement a livestock indemnity program for qualifying
livestock losses occurring in the period beginning on May 2, 1998, and
ending on May 21, 1999. The losses must be due to natural disasters
declared by the President or Secretary of Agriculture. The 1999 Act
specifies that to qualify the declaration request must have been
submitted by May 21, 1999, and that, to the extent practicable,
benefits must be provided in a manner similar to that used for the
livestock indemnity programs carried out by the Secretary during 1997
and 1998. Also, the 1999 Act specifies that benefits under the new
program will be subject, to the extent practicable, to the gross income
means test and payment limitations of the 1996-crop Disaster Reserve
Assistance Program (DRAP). Under the 1996 DRAP, no person could receive
more than $50,000 in payments and no person could receive any payment
at all if that person's annual gross revenue exceeded $2.5 million.
Rules for the 1999 livestock indemnity program will be codified in
7 CFR part 1439.301, et seq., which was recently reorganized by a rule
published on March 19, 1999, 64 FR 13497. Consistent with the operation
of the 1997 and 1998 livestock indemnity programs, payment rates will
vary by class of livestock involved and the payment rate will be a
percentage of the assigned market price for the class. Should eligible
claims exceed the available funds, the claims will, to the extent
practicable, be prorated. Losses will be compensable only to the extent
that they were caused by the disaster and were in excess of normal
losses for the operation for the particular livestock category
involved.
Crop Disaster Regulations
In addition, this rule makes slight changes to the crop loss
disaster regulations that were published on April 15, 1999, at 64 FR
18553. The rules for that program are codified in 7 CFR part 1477. The
changes are intended to make it clear that the agency can take
withholding action based on a request by another agency and to insure
that there is maximum flexibility with respect to offset and
withholding issues to insure that funds are not released in a manner
which would be contrary to the public interest, as determined by the
Secretary. On a related issue, the rule would also add a reference to
28 U.S.C. 2301 to waive a prohibition on eligibility for federal
benefits by persons with a judgment lien against their property under
the crop loss disaster program (although such a payment might be
applied against their outstanding debt to the government).
Effective Date of the Rule
Because the livestock indemnity program was provided for by
emergency legislation and is designed to provide emergency relief to
farmers, it has been determined that to delay the effective date of the
rule, and hence the date on which payments could be made, pending
further procedure, including any Congressional review as might
otherwise be required by the Small Business Regulatory Enforcement Act,
would be contrary to the public interest. Accordingly, with respect to
the portion of the rule dealing with the livestock indemnity program,
it has been determined that this rule should be effective on
publication. This same determination had been made with respect to
changes in the offset and withholding provisions of part 1477 as those
changes involve claims adjustments for current debts which are owing or
may be owing to the government. To the extent that there is a change in
the adopted rule for part
[[Page 58768]]
1477 as a result of the comments, the claims could be repaid or
adjusted as needed.
List of Subjects for 7 CFR Part 1439
Animal feed, Disaster assistance, Livestock, Reporting and
Recordkeeping Requirements.
Accordingly, 7 CFR Chapter XIV is amended as follows:
PART 1439--EMERGENCY LIVESTOCK ASSISTANCE
1. The Authority citation for part 1439 is amended to read as
follows:
Authority: 7 U.S.C 1427a; 15 U.S.C. 714b, and 714c; Sec. 1102
and 1103, Pub. L. 105-277; Pub. L. 106-31.
2. Part 1439 is amended by adding Subpart--Livestock Indemnity
Program to read as follows:
Subpart--Livestock Indemnity Program
Sec.
1439.301 Applicability
1439.302 Administration
1439.303 Definitions
1439.304 Sign-up period
1439.305 Proof of loss
1439.306 Indemnity benefits
1439.307 Availability of funds
1439.308 Limitations on payments
Sec. 1439.301 Applicability
This subpart sets forth the terms and conditions applicable to the
1999 Livestock Indemnity Program. Benefits will be provided under this
subpart only for losses (deaths) of livestock occurring in the period
from May 2, 1998 through May 21, 1999, as a result of a natural
disaster in a county included in the geographic area covered by a
qualifying natural disaster declaration issued by the President of the
United States or the Secretary of Agriculture of the United States.
Losses in contiguous counties, or any other counties not the subject of
the declaration, will not be compensable. To be a qualifying
declaration, the declaration must have been issued upon a request
submitted prior to May 21, 1999. Producers will be compensated by
livestock category as established by CCC. The producer's loss must be
the result of the declared disaster and in excess of the normal losses,
established by CCC, for the producer's livestock operation.
Sec. 1439.202 Administration
Where circumstances preclude compliance with Sec. 1439.304 due to
circumstances beyond the applicant's control, the county or State
committee may request that relief be granted by the Deputy
Administrator under this section. In such cases, except for statutory
deadlines and other statutory requirements, the Deputy Administrator
may, in order to more equitably accomplish the goals of this subpart,
waive or modify deadlines and other program requirements if the failure
to meet such deadlines or other requirements does not adversely affect
operation of the program.
Sec. 1439.303 Definitions
The definitions set forth in this section shall be applicable for
all purposes of administering this subpart. The terms defined in
Sec. 1439.3 shall also be applicable, except where those definitions
conflict with the definitions set forth in this subpart. The following
terms shall have the following meanings:
Application means the Form CCC-661, Livestock Indemnity Program
Application.
Livestock means beef and dairy cattle, sheep, goats, swine, poultry
(including egg-producing poultry), equine animals used for food or in
the production of food and buffalo and beefalo when maintained on the
same basis and in the same manner as beef cattle maintained for
commercial slaughter.
Livestock producer means one who possesses a beneficial interest in
eligible livestock as defined in this subpart, has a financial risk in
the eligible livestock, and is a citizen of, or legal resident alien
in, the United States. A farm cooperative, private domestic
corporation, partnership, or joint operation in which a majority
interest is held by members, stockholders, or partners who are citizens
of, or legal resident aliens in, the United States, if such
cooperative, corporation, partnership, or joint operation owns or
jointly owns eligible livestock or poultry, will be considered
livestock producers. Any Native American tribe (as defined in section
4(b) of the Indian Self-Determination and Education Assistance Act and
Education Assistance Act); any Native American organization or entity
chartered under the Indian Reorganization Act or 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 will be considered
livestock producers.
Sec. 1439.304 Sign-up period
A request for benefits under this subpart must be submitted to the
Commodity Credit Corporation (CCC) at the Farm Service Agency county
office serving the county where the livestock loss occurred. All
applications and supporting documentation must be filed in the county
office prior to the close of business on October 31, 1999, or such
other date as established by CCC.
Sec. 1439.305 Proof of loss
(a) Livestock producers must, in accordance with instructions
issued by the Deputy Administrator, provide adequate proof that the:
(1) Loss of eligible livestock occurred in an eligible county in
the area of Presidential designation or Secretarial declaration;
(2) That the death of the eligible livestock was reasonably related
to the recognized natural disaster; and
(3) The death of the livestock occurred between May 2, 1998, and
May 21, 1999, inclusive.
(b) The livestock producer shall provide any available supporting
documents that will assist the county committee, or as requested by the
county committee, in verifying the loss and quantity of eligible
livestock that perished in the natural disaster. Examples of supporting
documentation include, but are not limited to: Purchase records,
veterinarian receipts, bank loan papers, rendering truck certificates,
Federal Emergency Management Agency and National Guard records, auction
barn receipts, and any other documents available to confirm the
presence of the livestock and subsequent losses. Certifications by
third parties or the producer and other such documentation as the
county committee determines to be necessary in order to verify the
information provided by the producer may be submitted, subject to
review and approval by the county committee. Third-party verifications
may be accepted only if the producer certifies in writing that there is
no other documentation available. Third-party verification must be
signed by the party that is verifying the information. Failure to
provide documentation that is satisfactory to the county committee will
result in the disapproval of the application by the county committee.
(c) Livestock producers shall certify the accuracy of the
information provided. All information provided is subject to
verification and spot checks by the CCC. A failure to provide
information requested by the county committee or by agency officials is
cause for denial of any application filed under this part.
Sec. 1439.306 Indemnity benefits
(a) Livestock indemnity payments for losses of eligible livestock
as determined by CCC are authorized to be made to livestock producers
who file an application for the specific livestock
[[Page 58769]]
category in accordance with instructions issued by the Deputy
Administrator, if the:
(1) Livestock producer submits an approved proof of loss in
accordance with Sec. 1439.305; and
(2) County or State committee determines that because of an
eligible disaster condition the livestock producer had a loss in the
specific livestock category in excess of the normal mortality rate
established by CCC, based on the number of animals in the livestock
category that were in the producer's inventory at the time of the
disaster.
(b) If the number of losses in the animal category exceeds the
normal mortality rate established by CCC for such category, the loss of
livestock that shall be used in making a payment shall be the number of
animal losses in the animal category that exceed the normal mortality
threshold established by CCC.
(c) Payments shall be calculated by multiplying the national
payment rate for the livestock category as determined by CCC, by the
number of qualifying animals determined under (b) of this section.
Adjustments, if necessary, shall apply in accordance with
Sec. 1439.307.
(d) Payments which are earned by a person under the livestock
indemnity program may be assigned in accordance with the provisions of
part 1404 of this chapter.
Sec. 1439.307 Availability of funds
In the event that the total amount of eligible claims submitted
under this subpart exceeds the $3,000,000 appropriation, then each
payment shall be reduced by a uniform national percentage. Such payment
reductions shall be applied after the imposition of applicable payment
limitation provisions.
Sec. 1439.308 Limitations on payments
No person, as determined in accordance with part 1400 of this
chapter, may receive benefits under this subpart in excess of $50,000
for any year and no person may receive payments under this subpart for
losses for the producer has received or will receive compensation under
any other program provided for in this part. Payments under this part
for other losses shall not, however, reduce the amount payable under
this part. As provided for in Sec. 1439.11, no person shall be eligible
to receive any payment under this subpart if such person's annual gross
revenue exceeds $2.5 million.
PART 1477--1998 SINGLE-YEAR AND MULTI-YEAR CROP LOSS DISASTER
ASSISTANCE PROGRAM
3. The authority citation for part 1477 continues to read as
follows:
Authority: Sec. 1101 and 1102 of Pub. L. 105-277, 112 Stat.
2681; 15 U.S.C 714b and 714c.
Sec. 1477.109 [Amended]
4. Section 1477.109 is amended by:
a. Removing the phrase ``in accordance with Sec. 1403.8'' in
paragraph (a) and adding the phrase ``using the standard set forth in
Sec. 1403.8(b) (1)-(7)'' in its place,
b. Removing the phrase ``will be made'' in paragraph (k) and adding
the phrase ``may be made'' in its place,
c. Removing the second sentence of paragraph (k) and,
d. By adding a new paragraph (m) to read as follows:
* * * * *
(m) For the purposes of 28 U.S.C. 3201(e), the restriction on
receipt of funds or benefits under this program is waived; however,
this waiver shall not preclude withholding or offsetting where it is
deemed by the Deputy Administrator to be appropriate.
Signed at Washington, DC, on October 20, 1999.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 99-28369 Filed 10-29-99; 8:45 am]
BILLING CODE 3410-05-P