[Federal Register Volume 65, Number 161 (Friday, August 18, 2000)]
[Rules and Regulations]
[Pages 50401-50405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20679]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 65, No. 161 / Friday, August 18, 2000 / Rules
and Regulations
[[Page 50401]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1951
RIN 0560-AF78
Farm Loan Programs Account Servicing Policies--Servicing Shared
Appreciation Agreements
AGENCIES: Rural Housing Service, Rural Business-Cooperative Service,
Rural Utilities Service, Farm Service Agency, USDA.
ACTION: Final rule.
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SUMMARY: This action amends the terms and servicing of Shared
Appreciation Agreements. This final rule allows the remaining
contributory value of capital improvements made during the term of the
Shared Appreciation Agreement to be deducted when calculating the
recapture amount under the agreement, reduces the maturity period of
such agreements executed after the effective date of this issuance from
10 years to 5 years, and reduces the interest rate on Shared
Appreciation loans from the Non-program loan rate to the Farm Loan
Program Homestead Protection rate. These changes will give borrowers an
opportunity to repay a portion of the Farm Service Agency (FSA) debt
that was written off, while ensuring that the Government promptly
recaptures some appreciation of the collateral. This rule also will
encourage improvement of Agency security during the term covered by the
Shared Appreciation Agreement.
DATES: This regulation is effective on August 18, 2000.
FOR FURTHER INFORMATION CONTACT: Michael C. Cumpton, telephone (202)
690-4014; electronic mail: [email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be significant and was reviewed by
the Office of Management and Budget under Executive Order 12866.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
602), the undersigned has determined and certified by signature of this
document that this rule will not have a significant economic impact on
a substantial number of small entities. New provisions included in this
rule will not impact a substantial number of small entities to a
greater extent than large entities. Therefore, a regulatory flexibility
analysis was not performed.
Environmental Evaluation
It is the determination of FSA that this action is not a major
Federal action significantly affecting the environment. Therefore, in
accordance with the National Environmental Policy Act of 1969, and 7
CFR part 1940, subpart G, an Environmental Impact Statement is not
required.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988, Civil Justice Reform. In accordance with this rule: (1) All
State and local laws and regulations that are in conflict with this
rule will be preempted; (2) except as specifically stated in this rule,
no retroactive effect will be given to this rule; and (3)
administrative proceedings in accordance with 7 CFR parts 11 and 780
must be exhausted before seeking judicial review.
Executive Order 12372
For reasons contained in the notice related to 7 CFR part 3015,
subpart V (48 FR 29115) June 24, 1983, the programs within this rule
are excluded from the scope of E.O. 12372, which requires
intergovernmental consultation with State and local officials.
The Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires Federal agencies to assess the effects of their regulatory
actions on State, local, and tribal governments or the private sector
of $100 million or more in any 1 year. When such a statement is needed
for a rule, section 205 of the UMRA requires FSA to prepare a written
statement, including a cost/benefit assessment, for proposed and final
rules with ``Federal mandates'' that may result in such expenditures
for State, local, or tribal governments, in the aggregate, or to the
private sector. UMRA generally requires agencies to consider
alternatives and adopt the more cost effective or least burdensome
alternative that achieves the objectives of the rule.
This rule contains no Federal mandates, as defined under title II
of the 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.
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on State and local
governments. Therefore, consultation with the States is not required.
Paperwork Reduction Act
The amendments to 7 CFR part 1951 contained in this rule require no
revisions to the information collection requirements that were
previously approved by OMB (0560-0161) under the provisions of 44
U.S.C. chapter 35. A statement to this effect was published in the
proposed rule on November 10, 1999 (64 FR 61221-61223) . No comments on
the burden estimate were received.
Federal Assistance Programs
These changes affect the following FSA programs as listed in the
Catalog of Federal Domestic Assistance:
10.404--Emergency Loans
10.406--Farm Operating Loans
10.407--Farm Ownership Loans
Discussion of the Final Rule
In response to the proposed rule published November 10, 1999, 45
[[Page 50402]]
respondents from 23 States commented. Comments were received from
individuals, farm interest groups, attorneys, university professors,
agricultural businesses, and State government officials. Comments and
suggestions varied widely but focused primarily on the deduction of
certain capital improvements when calculating Shared Appreciation
Agreement recapture. The public comments are summarized as follows:
Reduction in Interest Rate on Amortized Shared Appreciation Agreement
Recapture
The proposal to reduce the interest rate charged on amortized
Shared Appreciation Agreement recapture from the Non-Program rate
(10.25% as of March 1, 2000) to the Homestead Protection rate (6.75% as
of March 1, 2000) received 17 comments. Of these comments, 10 were
favorable toward the change while seven disagreed and suggested
modifications or additions to the proposed language.
Two comments were similar in that they wished for the Shared
Appreciation Agreement recapture amount to either be added to the
program note and, therefore, receive program rates, or, be given the
Farm Ownership rate (7.25% as of March 1, 2000). As stated in the
proposed rule, the Homestead Protection rate was chosen as it is near
the Federal borrowing rate and is already used in the Agency's
Homestead Protection program. Therefore, this rate should give
producers the greatest possible chance of success while still allowing
FSA to collect the recapture funds due and protect its interests.
One respondent approved of the Homestead Protection rate for future
amortizations and stated that it should also be used if existing Shared
Appreciation notes are to be reamortized. This comment was adopted. If
restructure is required, the Homestead Protection rate will also be
used when reamortizing Shared Appreciation loans.
The other four respondents suggested that the rate be retroactive
to various time periods, ranging from the inception of the Shared
Appreciation Agreement program to the announcement of the proposed rule
by the Secretary. The Agency has determined that the Homestead
Protection rate will apply only to future Shared Appreciation Agreement
recapture amortizations because the previous rates are fixed by the
existing promissory notes. The payments shown on these notes created a
positive cash flow in the farm business plan at the inception of
existing Shared Appreciation loans. Therefore, Shared Appreciation
loans will not be modified unless for reamortization in cases of
delinquency or financial distress under 7 CFR part 1951, subpart S
procedures where program loans are also involved. Under 7 CFR
Sec. 1951.909, Shared Appreciation loans of eligible borrowers will be
reamortized at the lesser of the original note interest rate, or the
current Homestead Protection interest rate. The nonprogram loans will
not be considered for any other servicing options under that section.
Reduction in Term of Future Shared Appreciation Agreements
The proposal to change the term of future Shared Appreciation
Agreements from 10 years to 5 years received 13 comments. Of these
comments, six were in favor of the change, two suggested the term
remain at 10 years, and four suggested modifications or additions to
the proposed language. One felt the term should be 7\1/2\ years and
another stated the program should be abolished.
Abolishment of the program is not deemed reasonable given the
success of the program. Since its inception over 10 years ago, the
program has resulted in the recovery of over $58 million in debt
written down. Approximately 6,300 Shared Appreciation Agreements remain
outstanding, and approximately 5,000 borrowers have held to their terms
under their Shared Appreciation Agreements. Shared appreciation is an
important part of Agency writedown of borrower debt. After writedown,
the Agency continues to provide assistance on the balance of the
borrower debt for continued borrower operation of the farm.
Two respondents suggesting alternate language supporting the 5 year
term but felt the change should be retroactive to the 1999 announcement
of the proposal by the Secretary. Retroactivity of the proposal is
discussed above.
Other comments, which were outside the scope of the proposed rule,
centered around the requirements for recapture at the end of the term
if the land is not sold and recapture of 75% of appreciation in the
first 4 years and 50% thereafter. While these comments need not be
addressed, the Agency notes that these requirements are dictated by
statute (7 U.S.C. Sec. 2001(e)) and cannot be changed by regulation.
One of the two respondents supporting the present 10-year Shared
Appreciation Agreement term, stated that the 10-year term allowed the
Government the greatest opportunity to recapture a large portion of the
debt written off and also benefitted borrowers by giving them the
maximum amount of time to recover from the financial hardship. The
other proponent of the 10-year term felt the 5-year term could present
some problems as many borrowers will be coming off a deferral at that
time and could even be, based on the years of eligibility limitations
currently in place, ineligible for further loans. The Agency has not
adopted the comments to retain the 10-year term for Shared Appreciation
Agreements. This term originally was adopted to allow borrowers a
lengthy period during which to recover from the circumstances causing
their delinquency and need for writedown. However, during this term,
land appreciation exceeded expectations in many farming communities
while farm income fell due to sustained low commodity and livestock
prices. These factors have resulted in shared appreciation recapture
amounts beyond the repayment abilities of many borrowers now at or near
the end of the term of their agreements. Though these borrowers have
successfully serviced their remaining debt after writedown, they now
face liquidation because they cannot repay recapture due. The Agency
has determined that future Shared Appreciation Agreements will be
limited to 5 years to lower the risk of substantial appreciation in
land values and increase the ability of borrowers to repay a portion of
such appreciation to the Government. This proposed policy change was
well supported by public comments. The Agency believes that 5 years is
an adequate period of time for most borrowers to recover from the
financial difficulties causing their delinquency. Furthermore, this
term is adequate to protect the interests of the Government, and, in
most cases, will allow more accurate planning by the borrower. The
reduced term also will reduce the Agency's administrative burden in
monitoring the agreements. Existing Shared Appreciation Agreements will
continue under the 10-year term as agreed to by the borrower and the
Government.
One respondent supported a 7\1/2\-year term for Shared Appreciation
Agreements as a compromise. The Agency rejects this unsupported comment
in favor of a 5-year term for the reasons discussed above.
Deduction of Capital Improvements From Shared Appreciation Agreement
Recapture
The proposal to deduct the value of a dwelling, barn, grain storage
bin or silo improved or added during the term of the Shared
Appreciation Agreement from the value of the property at the maturity
of the agreement received
[[Page 50403]]
multiple comments from most of the 44 respondents who commented on the
capital improvement provision of the proposed rule. These comments were
widely varied among respondents and over 27 different and often
divergent suggestions were made on how capital improvements should be
addressed in the regulation. Of these comments, 39 offered suggestions
on ways to expand the number of capital improvement items, six
suggestions were made on eliminating or curtailing deductions, three
suggested additional criteria to be considered beyond the improvements
themselves, 16 addressed retroactivity of the deduction, and four
suggested other changes to the method of determining shared
appreciation.
Thirty-one comments were made in support of the use of more
generalized language and expanding the number and type of capital
improvements which would be deducted from the value of the property at
maturity. Of these, 17 suggested all capital improvements be included,
10 made reference to those improvements for farm or real estate
improvements (sometimes citing specific examples) and four, while
proposing broad expansion of the type of items which would be
considered capital improvements, also offered methods of defining or
identifying a capital improvement. One individual stated improvements
should be ``normal and customary'' while another stated that all
``bonafide'' improvements should be included. Others respondents stated
the item should be affixed to the real estate and have a useful life of
over 1 year. Three of these respondents stated that a determination or
definition of capital improvements could be based on those allowed by
the Internal Revenue Service (IRS) when calculating basis or
depreciation. It was proposed that this method or the use of actual
costs could also be used to determine the value of the improvements to
be deducted from the final appraised value. Some respondents felt the
appraiser would be able to effectively identify and value a capital
improvement while others stated this would be very difficult for the
appraiser especially when existing facilities had been expanded. Some
of the above individuals and the remaining respondents who wished to
expand the list of capital improvements suggested many varied items be
considered, including, labor, tiling, tobacco quota, terracing,
fencing, orchards, shelter belts, vineyards, irrigation, leveling,
underground pipe, rock removal, timber, ponds, hog buildings, dairy
parlors, and improvements for wildlife or conservation. It was also
suggested that the Agency only consider an item if it met the criteria
of an authorized loan purpose but no Government loans funds were used
in it's acquisition.
Six comments were made suggesting curtailment of capital items
which could be included. Two respondents stated no capital improvements
should be considered and it was suggested that, especially in light of
the proposed 5-year Shared Appreciation Agreement term, capital
improvements should be very rare for operations which were in need of
debt forgiveness. Suggestions were also made that all improvements must
have received prior approval from the FSA, dwellings should only be
excluded when needed and modest, and that improvements to existing
facilities not be considered. Consideration of other criteria in the
deduction of capital improvements, including financial status,
commodity prices, and debt exceeding market value of the security, was
proposed by three respondents. Increasing the amount of shared
appreciation recapture based on any capital items removed during the
shared appreciation term was also proposed in conjunction with
deduction of capital improvements added to insure an ``apples-to-
apples'' comparison.
These comments on capital improvements revealed a wide diversity of
opinion on what capital items, if any, should be deducted in the shared
appreciation calculation. Some respondents supported a list of items,
while the majority suggested broad categories. Comments indicate that
not only is the complete identification of appropriate capital
improvements extremely difficult, but the valuation of these items,
once identified, is equally complex. Based on this complexity, it has
been determined that instead of attempting to redefine a capital
improvement, FSA will incorporate, as suggested, IRS documentation
methods to identify post-Shared Appreciation Agreement capital
improvement additions. The remaining contributory value of any
improvements to the FSA real estate security covered by the Shared
Appreciation Agreement which were capitalized (not taken as annual
operating expenses) on the tax records may be deducted from the final
appraisal which establishes the Shared Appreciation Agreement recapture
amount. The borrower will be responsible for providing appropriate tax
documentation to verify this consideration, and the improvement must be
affixed to the Agency's Shared Appreciation Agreement real estate
security. The only other contributory value allowed to be deducted from
the final appraised value will be the contributory value of the
borrower's primary residence to the security if it was built on the
security property during the term of the Shared Appreciation Agreement
and the contributory value of any improvements made to the residence
which actually added living area square footage.
While some commentors questioned appraisers' abilities to identify
and value capital improvements, the Agency believes that professionally
certified and licensed appraisers are trained in this determination
process and are, therefore, qualified to evaluate property values and
property value breakdown. This position is consistent with the
practices of other commercial and government lending institutions.
Retroactivity of capital improvement deductions was addressed in 22
responses. Sixteen responses suggested that any regulation that
excluded capital improvements should be made retroactive to the
beginning of the Shared Appreciation Agreement program; two preferred
no retroactivity; two suggested retroactivity to the Secretary's 1999
announcement of the proposed rule; one suggested that the new
regulation apply retroactively to all who have not paid the recapture
due, and one felt retroactivity should extend only to those who have an
outstanding suspension agreement or amortized recapture debt.
These responses clearly favor some degree of retroactivity with
some respondents indicating a desire for complete retroactivity. This,
of course, would require that the Government revisit over 5,000 Shared
Appreciation Agreements which have been partially or fully triggered
and review the circumstances surrounding the security at that time.
This substantial administrative burden is not in the best interests of
the Government and the taxpayers. However, the Agency has determined
that retroactivity of this deduction should be and will be extended to
any amount covered by a suspension agreement that has not yet been
fully paid since the borrowers were not able to show repayment ability
for this amount. Furthermore, this will involve significantly less of
an administrative burden with only approximately 1,500 suspension
agreements covered. Use of this deduction, however, may require another
appraisal of the property to determine the contributory value of
capital improvements if not identified prior to entering the suspension
agreement. Section 1951.914(h)(8) has been amended accordingly.
[[Page 50404]]
Comments received on other portions of Sec. 1951.914 included the
use of amortized Shared Appreciation Agreement recapture in
conservation contracts, the use of sale prices instead of appraised
values to determine recapture amounts during the term of the Shared
Appreciation Agreement, the use of acceleration as a trigger in Shared
Appreciation Agreements, and negotiation of appraisals. These comments
are beyond the scope of the proposed rule and will not be addressed.
Modifications to the regulatory provisions covering these issues were
not proposed and are not included in the final rule.
The Agency has clarified the Sec. 1951.914 reference to ``current
appraisal'' by referring to Sec. 761.7. The latter section, in part,
sets out the requirements for real estate appraisals.
Good cause is shown for making this rule effective upon publication
because of the need to implement the Homestead Protection interest rate
and the consideration of capital improvements in the calculation of
shared appreciation recapture. During the last 18 months, both natural
disasters and low commodity prices have adversely affected many
producers with maturing Shared Appreciation Agreements as they have
become unable to pay recapture amounts due. Many agreements now are
coming due and need the benefits provided by this rule. Without the
lower Homestead Protection interest rate (6.75% as of March 1, 2000),
these borrowers must pay the substantially higher Non-Program interest
rate (10.25% as of March 1, 2000) if their shared appreciation debts
are amortized under current regulations. The borrowers also will not
benefit from the capital improvement deduction unless their shared
appreciation debt is suspended with additional interest accrual.
Furthermore, payment on many shared appreciation agreements is
currently suspended for one year in accordance with 7 CFR 1951.914(h),
so implementation of this regulation is needed to resolve the accounts
before or when suspension ends. Under this rule, the suspended debts
may be reduced to account for capital improvements on the property only
during the suspension period. After suspension, the borrower also may
qualify for amortization at the lower Homestead Protection interest
rate. Therefore, immediate implementation of this rule is necessary to
help these borrowers with recapture debts coming due.
The Agency is also amending its regulations in this rule to remove
from the Code of Federal Regulations administrative notices, response
forms and formulas for calculations required to determine eligibility
for its programs that are currently published as exhibits to 7 CFR.
1951, subpart S. Section 331D(c) of the Consolidated Farm and Rural
Development Act (Con Act) requires that the notices mandated by that
section be published in the Agency's regulations. Sections 331D(a) and
(b) of the Con Act require the Agency to send borrowers at least 90
days past due a notice which contains:
a summary of all primary loan service programs, preservation loan
service programs, debt settlement programs, and appeal procedures,
including the eligibility criteria and terms and conditions of such
programs and procedures.
Accordingly, FSA will retain as exhibits in the Code of Federal
Regulations Exhibit A of 7 CFR 1951, subpart S, which is the cover
letter to the required notice sent to borrowers who are 90 days past
due, and Exhibit A, Attachment 1, the required summary notice. Since
Sec. 331D(c) does not mandate that FSA publish all of its notices, FSA
is removing from 7 CFR 1951, subpart S, Exhibit A-Attachments 2, 3, 4,
5, 5-A, 6, 6-A, 9, 9-A, 10, 10-A, Exhibit B, Exhibit B-Attachment 1,
Exhibit C, Exhibit C-1, Exhibit E, Exhibit E, Attachments 1 and 2,
Exhibit F, Exhibit F-Attachments 1 and 2, Exhibit I, Exhibit J, Exhibit
J-Attachment 1, Exhibit J-1, Exhibit J-1, Attachment 1, Exhibit K,
Exhibit K-Attachment-1, Exhibit L and Exhibit M. FSA will continue to
use these Exhibits and Attachments for administrative purposes. They
are available from any FSA office.
List of Subjects in 7 CFR Part 1951
Account servicing, Credit, Debt restructuring, Loan programs-
Agriculture, Loan Programs--Housing and Community Development.
Accordingly, 7 CFR part 1951 is amended as follows:
PART 1951--SERVICING AND COLLECTIONS
1. The authority citation for part 1951 continues to read as
follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 31 U.S.C. 3716; 42
U.S.C. 1480.
Subpart S--Farm Loan Programs Account Servicing Policy
2. Revise the third sentence in Sec. 1951.909 paragraph
(e)(2)(viii)(A) to read as follows:
Sec. 1951.909 Processing primary loan service programs requests.
* * * * *
(e) * * *
(2) * * *
(viii) * * *
(A) * * * SA loans will be reamortized at the current Homestead
Protection program interest rate in effect on the date of approval or
the rate on the original amortized note, whichever is less.
3. In Sec. 1951.914 the section heading, paragraphs (b)
introductory text, (c)(1), (c)(2), (e)(6), (e)(11) and (h)(8) are
revised, paragraphs (e)(10), (e)(11), (h)(9), (h)(10), and (h)(11) are
added, and paragraphs (e)(9), (e)(10), (h)(9), and (h)(10) are
reserved:
Sec. 1951.914 Servicing shared appreciation agreements.
* * * * *
(b) When shared appreciation is due. For agreements entered into on
or after August 18, 2000, the term of the agreement is five years.
Shared appreciation is due at the end of either a five or ten year
term, as specified in the Shared Appreciation Agreement, or sooner, if
one of the following events occur:
* * * * *
(c) * * *
(1) The value of the real estate security at the time of maturity
of the Shared Appreciation agreement (current market value) shall be
the appraised value of the security at the highest and best use less
the increase in the value of the security resulting from capital
improvements added during the term of the Shared Appreciation Agreement
(contributory value) as set out herein. The current market value of the
real estate security property will be determined based on a current
appraisal in accordance with 7 CFR Sec. 761.7 and subject to the
following:
(i) Upon request, the borrower will identify any capital
improvements that have been added to the property since the execution
of the Shared Appreciation Agreement.
(ii) The appraisal must specifically identify the contributory
value of capital improvements made to the Agency real estate security
during the term of the Shared Appreciation Agreement in order to make
deductions for that value under this subsection.
(iii) For calculation of Shared Appreciation recapture, the
remaining contributory value of capital improvements added during the
term of the Shared Appreciation Agreement will be deducted from the
current market value of the property. Such capital improvements must
also meet at least one of the following criteria:
(A) It is the borrower's primary residence. If the new residence is
[[Page 50405]]
affixed to the real estate security as a replacement for a home which
existed on the security property when the Shared Appreciation Agreement
was originally executed, or, the square footage of the original
dwelling was expanded, only the value added to the real property by the
new or expanded portion of the original dwelling (if it added value)
will be deducted from the current market value.
(B) The item is an improvement to the real estate with a useful
life of over 1 year and is affixed to the property. The item must have
been capitalized and not taken as an annual operating expense on the
borrower's Federal income tax records. The borrower must provide copies
of appropriate tax documentation to verify that capital improvements
claimed for shared appreciation recapture reduction are capitalized on
borrower income taxes.
(2) In the event of a partial sale, an appraisal of the property
being sold may be required to determine the market value at the time
the Shared Appreciation Agreement was signed if such value cannot be
obtained through another method.
* * * * *
(e) * * *
(6) The interest rate will be the Farm Loan Program Homestead
Protection rate contained in RD Instruction 440.1 (available in any FSA
office).
* * * * *
(11) If the borrower has no outstanding Farm Loan Program loans and
becomes delinquent on the Shared Appreciation loan, the Shared
Appreciation loan will be serviced in accordance with subpart J of this
part. If the borrower has outstanding Farm Loan Programs loans, and
becomes delinquent or financially distressed in accordance with
Sec. 1951.906, the Shared Appreciation loan will be considered for
reamortization in accordance with Sec. 1951.909(e).
* * * * *
(h) * * *
(8) If the real estate that is the subject of the Shared
Appreciation Agreement during the suspension period is conveyed, the
suspended amount, plus any accrued interest shall be come immediately
due and payable by the borrower in accordance with paragraph (c) of
this section.
* * * * *
(11) Capital improvement deductions are available to a borrower on
any unpaid recapture amount under an existing Suspension Agreement in
accordance with 1951.914(c).
* * * * *
4. Exhibit A--Attachments 2, 3, 4, 5, 5-A, 6, 6-A, 9, 9-A, 10, 10-
A, Exhibit B, Exhibit B--Attachment 1, Exhibit C, Exhibit C-1, Exhibit
E, Exhibit E, Attachments 1 and 2, Exhibit F, Exhibit F--Attachments 1
and 2, Exhibit I, Exhibit J, Exhibit J--Attachment 1, Exhibit J-1,
Exhibit J-1, Attachment 1, Exhibit K, Exhibit K--Attachment 1, Exhibit
L and Exhibit M of 7 CFR part 1951, subpart S are removed.
Signed in Washington, D.C., on August 8, 2000.
August Schumacher, Jr.,
Under Secretary for Farm and Foreign Agricultural Service.
[FR Doc. 00-20679 Filed 8-17-00; 8:45 am]
BILLING CODE 3410-05-P