[Federal Register Volume 65, Number 213 (Thursday, November 2, 2000)]
[Rules and Regulations]
[Pages 65709-65718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27793]


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DEPARTMENT OF AGRICULTURE

7 CFR Parts 1411, 1421, 1427, 1434, 1439, and 1447

RIN 0560-AG18


2000 Crop Agricultural Disaster and Market Assistance

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements provisions of the Agricultural Risk 
Protection Act of 2000 (ARPA) related to oilseeds payments, peanut 
marketing assistance, honey recourse loans, crop and pasture flood 
compensation, and the expansion of eligibility for loan deficiency 
payments, for the 2000 crop year only, to include producers whose 
cropland is not covered by a production flexibility contract. Other 
provisions of the APRA will be implemented under separate rules.

EFFECTIVE DATE: October 27, 2000.

FOR FURTHER INFORMATION CONTACT: Tom Witzig, Chief, Regulatory Review 
and Foreign Investment Disclosure Branch, USDA/FSA/ORAS/RRFIDB/STOP 
0540, 1400 Independence Ave., SW, Washington, DC, 20250-0540, telephone 
(202)205-5851, or by e-mail to: [email protected].

SUPPLEMENTARY INFORMATION:

Notice and Comment

    Section 263 of the ARPA requires that these regulations are to be 
promulgated without regard to the notice and comment provisions of 5 
U.S.C. 553 or the Statement of Policy of the Secretary of Agriculture 
effective July 24, 1971, (36 FR 13804) relating to notices of proposed 
rulemaking and public participation in rulemaking. These regulations 
are thus issued as final.

Executive Order 12866

    This final rule has been determined to be economically significant 
under Executive Order 12866 and has been reviewed by the Office of 
Management and Budget (OMB). A cost-benefit assessment was completed 
and is summarized after the background section explaining the actions 
this rule will take.

Federal Assistance Programs

    The titles and numbers of the Federal assistance programs, as found 
in the Catalog of Federal Domestic Assistance, to which this final rule 
applies are: Commodity Loan and Loan Deficiency Payments--10.051; 
Production Flexibility Payments for Contract Commodities--10.055; 
Disaster Reserve Assistance--10.452.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this rule because USDA 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.

[[Page 65710]]

Executive Order 12372

    The programs administered under the regulations contained in this 
rule are 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

    The provisions of Title II of the Unfunded Mandates Reform Act of 
1995 are not applicable to this rule. There are no such mandates set 
out in this rule and because the USDA 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.

Small Business Regulatory Enforcement Fairness Act of 1996

    Section 263 of the ARPA requires that the regulations necessary to 
implement title II of the ARPA be issued as soon as practicable after 
the date of enactment and without regard to the notice and comment 
provision of 5 U.S.C. 553 or the Statement of Policy of the Secretary 
of Agriculture effective July 24, 1971, (36 FR 13804) relating to the 
notice of proposed rulemaking and public participation in rulemaking. 
It also requires the Secretary to use the provisions of 5 U.S.C. 808 
(the Small Business Regulatory Enforcement Fairness Act (SBREFA)), 
which provide that a rule may take effect at such time as the agency 
may determine if the agency finds for good cause that public notice is 
impracticable, unnecessary, or contrary to the public purpose, and thus 
does not have to meet the requirements of Sec. 801 of SBREFA requiring 
a 60-day delay for Congressional review of a major regulation before 
the regulation can go into effect. This final rule is considered major 
for the purposes of SBREFA. However, these regulations affect a large 
number of agricultural producers who have been significantly impacted 
by natural disasters and poor market conditions. Accordingly, it would 
be contrary to the public interest to delay the provisions of this rule 
because of the nature of the relief involved and such delay would be 
contrary to the expressed terms of the legislation. This rule is issued 
as a final rule and is effective immediately.

Executive Order 13132

    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.

Paperwork Reduction Act

    Section 263 of the ARPA requires that these regulations be 
promulgated and the programs administered without regard to the 
Paperwork Reduction Act. This means that the information to be 
collected from the public to implement these programs and the burden, 
in time and money, the collection of the information would have on the 
public does not have to be approved by the Office of Management and 
Budget or be subject to the normal requirement for a 60-day public 
comment period.

Background

    This rule will implement the requirements of the Agricultural Risk 
Protection Act of 2000 (Pub. L. 106-224) related to oilseeds payments, 
peanut marketing assistance, honey recourse loans, crop and pasture 
flood compensation, and for the 2000 crop year only, the expansion of 
eligibility for loan deficiency payments to include producers whose 
cropland is not covered by a production flexibility contract. 
Generally, those rules follow, where applicable, existing rules as this 
will allow for ease of administration and speed in making the payments, 
consistent with the intent of the statute and with the lack of any 
indication, except as may be noted, of Congressional dissatisfaction 
with the existing programs. In making these corrections and changes 
however to existing regulations the rules will, at least in some cases, 
remove from the Code of Federal Regulations, the authority citation for 
the previous programs. This housekeeping matter is not intended to, and 
does not, change the operation of the previous programs to the extent 
that there are any lingering issues or disputes with respect to such 
programs.

1. 7 CFR 1411--Oilseeds Program

    Section 202 of the ARPA provides that ``[t]he Secretary shall use 
$500,000,000 of funds of the Commodity Credit Corporation to make 
payments to producers of the 2000 crop of oilseeds that are eligible to 
obtain a marketing assistance loan under section 131 of the 
Agricultural Market Transition Act'' (AMTA) (7 U.S.C. 7231). A similar 
program for the 1999 crop of oilseeds, established by section 804 of 
the Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2000 (Pub. L. 106-78), was 
codified in 7 CFR 1411 by publication of a final rule on June 8, 2000 
(65 FR 36550). This rule provides for a 2000 Oilseeds Program similar 
to the 1999 program. Specifically, this rule revises: (1) the 
definition of ``Eligible oilseed'' to include sesame; (2) crop years 
referenced in the part 1411 definitions of ``County average soybean 
yield'', ``Established producer'', ``National average oilseed yield'', 
and ``New producer'' in Sec. 1411.103; (3) crop years used in 
determining ``eligible producers'' in Sec. 1411.201, ``payment 
acreage'' in Sec. 1411.204, and ``payment yield'' in Sec. 1411.205; (4) 
the program funding references in Sec. 1411.301 from $475 million to 
$500 million; and (5) the provisions relating to the final date for 
submission of late-file acreage reports as set out in Sec. 1411.303 to 
set, in effect, a new deadline for the new program.
    The regulations for this program follow the basic procedures and 
rules of the preceding oilseed program as the authorizing statute for 
the new program is the same in all material aspects, except for one 
aspect, as the prior program. The one difference is that established 
producer payments are based on the activities occurring in three prior 
crop years (1997-99) rather than only two prior crop years as was the 
case for the preceding program. The regulations incorporate that change 
but also differ from those for the preceding program in that they add 
sesame as one of the oilseeds for which payments can be made. Sesame 
was excluded under the prior program because the relevant statutory 
provisions for the new and old programs specified that the only 
oilseeds which would be eligible for payments would be those which were 
eligible to qualify a producer for a market assistance loan under 
section 131 of the AMTA, 7 U.S.C. 7231. Under that part of AMTA, the 
Secretary is allowed to make loans on ``loan commodities'' and ``loan 
commodities'' are defined in section 102 of the AMTA, 7 U.S.C. 7202, to 
include ``oilseed'' and the term ``oilseed'' is defined in section 102 
to mean ``soybeans, sunflower seed, rapeseed, canola, safflower, 
flaxseed, mustard seed, or if designated by the Secretary, other 
oilseeds.'' Previously, the Secretary has designated crambe for 
inclusion as one of the ``other'' oilseeds which can generate AMTA 
loans and it has been determined, recently to so designate sesame as 
well. Accordingly, the new oilseed program covers sesame whereas the 
old program did not.

[[Page 65711]]

2. 7 CFR 1421 and 1427--2000 Crop Eligibility for Loan Deficiency 
Payments

    Rules governing loan deficiency payments (LDP's) are codified in 7 
CFR part 1421 for commodities other than cotton and in subpart A of 7 
CFR part 1427 for cotton. These regulations are modified in this rule 
to implement section 206 of the ARPA, which amended provisions of the 
AMTA related to LDP's under the marketing assistance loan program for 
agricultural producers. Prior to the new law, under the provisions of 
AMTA, except in the case of oilseeds, only producers growing contract 
commodities on farms covered by a production flexibility contract (PFC) 
were eligible to receive LDP's. Section 206(a) of the ARPA amends the 
AMTA to allow producers of contract commodities not eligible for a 
marketing assistance loan (that is contract commodities produced on 
farms not covered by a PFC) to receive LDP's, but for the 2000 crop 
year only. Further however, section 206 specifies, under the heading 
``Transition'' that a payment to a producer newly-eligible for a 
payment under the new provisions for non-PFC farms that harvested a 
commodity on or before the date that is 30 days after the promulgation 
of new rules implementing the new law shall be determined as of the 
date the producer lost beneficial interest in the commodity, as 
determined by the Secretary. Section 206 then specifies, however, that 
otherwise, a producer shall be eligible for a payment only if the 
producer has a ``beneficial interest'' in the commodity, as determined 
by the Secretary. Normally, under existing rules, the farmer must have 
control of the commodity at the time that the payment is requested but 
that which appears to be addressed by the statute is that farmers on 
non-PFC farms may have already marketed part of this year's crop at a 
time at which they could not have made a request for a loan deficiency 
payment since it was only the change of law provided for in section 206 
that permitted such a payment. Accordingly, so that the rules will be 
in accordance with the intent of the statute without going so far as to 
provide what would appear to be, otherwise, unintended benefits not 
possessed by other payees, this rule modifies parts 1421 and 1427 so as 
to allow payments to be made for eligible commodities non-PFC farms 
without having to meet the normal control requirements. However, this 
is limited. It only applies so long as, in conformity with the statute, 
the crops were harvested by that date which is 30 days after the 
publication of this rule. For such commodities, the payment will be 
made as of the date at which the farmer lost control or ``beneficial 
interest'' of the commodity. For crops marketed after that date, the 
farmer must, just like with producers on PFC farms, have control of the 
crop at the time that the payment is requested. It should be noted, 
however, that these amendments will still, in all cases, as does the 
statute, limit payments to those persons who are considered to be the 
``producers'' of the commodity. Thus, the status of contract growers is 
not changed. Such growers continue to be ineligible for payments. 
Instead, the amendments reflect a change with respect to the handling 
of non-PFC farms only and allow for a transition for those farms to 
accommodate the change circumstances for this crop year. These changes 
are similar to changes that were implemented for the 1999 crop year 
under separate legislative authority. Those 1999-crop rules were 
published in a February 16, 2000, rule (65 FR 7942) as corrected on 
March 15, 2000 (65 FR 13865).

3. 7 CFR 1434--Honey Recourse Loan Program

    Section 204(c) of the ARPA provides that ``[t]he Secretary shall 
use funds of the Commodity Credit Corporation to make available 
recourse loans to producers of the 2000 crop of honey on fair and 
reasonable terms and conditions, as determined by the Secretary.'' 
Section 1122 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriation Act of 1999 
established a similar program for the 1998 crop of honey to assist 
producers in marketing their honey during a period of low prices. 
Regulations implementing the 1998 program were codified in 7 CFR 1434 
by a final rule published on March 8, 1999 (64 FR 10293). Subsequently, 
the program was made available for the 1999 crop of honey by section 
801 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2000. The 
final rule implementing the 1999 program by amending 7 CFR 1434 was 
issued on February 16, 2000 (65 FR 7942). The 2000 program will be 
operated in the same manner as the 1999 program and this rule amends 7 
CFR 1434 by revising the dates referenced within the regulation.

4. 7 CFR 1439--2000 Flood Compensation Program

    Section 257 of the ARPA authorizes the Secretary to use not more 
than $24 million of funds of the Commodity Credit Corporation to 
compensate producers for losses resulting from long-term flooding. 
Areas impacted by generalized flooding since 1992 due to, for example, 
the expansion of the boundaries of natural bodies of water such as 
Devil's Lake in North Dakota and Day County and surrounding areas in 
South Dakota, have been the subject of considerable attention and 
concern. Such flooding can change the basic character of the land and 
render it ineligible for other benefits or for enrollment in programs 
like the Conservation Reserve Program.
    The 1998 Flood Compensation Program (FCP), codified in 7 CFR 1439 
by an interim rule published on August 31, 1999 (64 FR 47358), was 
designed to provide assistance to producers who had incurred losses as 
a result of such flooding. The program provided compensation to 
eligible producers whose ``land was inaccessible or unfit for crop 
production, grazing, or haying because of flooding or excess moisture 
during all of the period beginning October 1, 1997, through August 1, 
1999.'' Subsequently, a final rule published on June 8, 2000 (65 FR 
36550) reorganized 7 CFR 1439 and removed the regulations related to 
the 1998 FCP because they were considered to be obsolete because the 
application deadline had passed.
    This rule implements section 257 of the ARPA by implementing the 
2000 FCP, which will be codified in subpart F of 7 CFR 1439. The new 
program will be operated in the same manner as the 1998 FCP with the 
exception (as required by ARPA) that the program will only be available 
in counties approved under the 1998 FCP. The 2000 FCP provides 
compensation to eligible producers whose land was not usable from 
October 1, 1999, through September 30, 2000. Under the provisions of 
the 2000 FCP, as required by the law no ``person'', as ``person'' is 
defined in the applicable regulations, will be able to receive over 
$40,000. Also, no person can receive any payment if that person's gross 
revenue for 1999, as determined in conformity with the rules, was in 
excess of $2.5 million. Consistent with the new law, the applicant must 
be the owner or lessee under a binding lease, of cropland or 
pastureland that was used for the production of at least one of the 
production years 1992-99, but that has been engulfed in the period 
after 1992, and such person must have owned or leased the land 
continuously since October 1, 1999 and must still be the owner or 
lessee of the land. Other restrictions apply as well. To avoid the 
possibility of over-compensation for the

[[Page 65712]]

same losses, producers will not be eligible to receive payments under 
this subpart and other programs for losses that occurred during FY 
2000. As provided for in the new law, unadjusted payment rates will be 
equal to the average county cash rental rate per acre established by 
the National Agricultural Statistical Service for the 2000 crop year. 
For cases where such rate is not available, the rule provides for an 
alternative calculation method.

5. 7 CFR 1447--Peanut Marketing Assistance Program

    Section 204(a) of the ARPA provides that ``[t]he Secretary shall 
use funds of the Commodity Credit Corporation to provide payments to 
producers of quota peanuts or additional peanuts to partially 
compensate the producers for continuing low commodity prices, and 
increasing costs of production for the 2000 crop year.'' The ARPA 
specifies that the payment rate shall be equal to $30.50 per ton for 
quota peanuts and $16.00 per ton for additional peanuts. In order to 
implement this program, regulations codified at 7 CFR part 1447, which 
implemented a similar program for the 1999 crop year, are amended by 
revising the time-frame for filing an application, the payment rate for 
quota and additional peanuts, and the years from which actual yields 
may be used in establishing the yield used in the payment calculation. 
The 1999 crop rules were set out in the February 16, 2000, rule (65 FR 
7942).

Cost-Benefit Assessment

Summary

    Outlays under the programs implemented by this rule will total 
approximately $626 million. The table summarizes the outlays, while a 
summary of the Cost/Benefit Assessment for each program follows.

                           Summary of Outlays
------------------------------------------------------------------------
                           Program                              Outlays
------------------------------------------------------------------------
Oilseeds Program.............................................      500.0
2000 Crop Eligibility for Loan Deficiency Payments...........       40.3
Honey Recourse Loan Program..................................        0.0
2000 Flood Compensation Program..............................       24.0
Peanut Marketing Assistance Program..........................       61.6
                                                              ----------
    Total....................................................      625.9
------------------------------------------------------------------------

2000 Oilseed Program

    U.S. oilseed producers are experiencing serious financial hardships 
as a result of low oilseed prices. The farm-level market value of 
oilseed production has dropped substantially since the mid-1990's. The 
farm value of the 1999 oilseed crop was down an estimated $5.3 billion, 
or 29 percent, from the previous 5-year high set in 1996, despite a 12-
percent increase in production. Projections for the 2000 crop put farm 
value up 6 percent from 1999, but this is with a projected 13-percent 
increase in production from 1999. Farm value for the 2000 oilseed crop 
is projected down more than $4.5 billion, or 25 percent, from 1996, 
despite a 26 percent increase in production during the period.
    In passing ARPA, Congress recognized the financial hardships being 
faced by oilseed producers and the inability of the AMTA payment 
mechanism to provide market loss payments to these producers. Section 
202 of ARPA authorized the use of $500 million in CCC funds to assist 
oilseed producers suffering from reduced farm incomes as a result of 
large supplies and low prices. To be eligible for payments from these 
funds, a producer must produce an oilseed in 2000 that is eligible for 
marketing assistance loans under section 131 of AMTA (7 U.S.C. 7231). 
Oilseeds specifically designated as eligible for marketing assistance 
loans under section 102 of AMTA (7 U.S.C. 7202) are soybeans, safflower 
seed, canola, rapeseed, mustard seed, sunflower seed, and flaxseed. For 
the 2000 crop, the Secretary has also used his authority under section 
102 to designate both crambe and sesame as an ``other'' oilseed, making 
them eligible for marketing assistance loans and oilseed program 
payments.
    Oilseed program benefits for a producer are determined by 
multiplying the payment acreage, times a payment yield, times a payment 
rate determined by the Secretary. Payment acreage for an eligible 
established producer--a producer who also produced oilseeds in 1997, 
1998, and/or 1999--is based on the higher of that producers' 1997, 
1998, or 1999 acreage. For an eligible producer who was a new producer 
in 2000, payment acreage is based on that producer's 2000 acreage. 
Payment yield for an established soybean producer is the higher of that 
producer's actual yield in 1997, 1998, or 1999, or the Olympic average 
yield for that producer's county for the years 1995 through 1999. (The 
Olympic average is the average annual yield for the stated period after 
excluding the highest and lowest years.) Payment yield for a new 
soybean producer in 2000 is the higher of that producer's 2000 yield or 
the producer's county 1995-99 Olympic average yield. For an established 
producer of other eligible oilseeds, payment yield is the higher of 
that producers' 1997, 1998, or 1999 yield, or the Olympic average of 
the national yield for the years 1995 through 1999 for the crop for 
which the payment is being made. Payment yield for a new producer of an 
eligible oilseed other than soybeans in 2000 is the higher of that 
producer's 2000 yield, or the 1995-99 Olympic average national yield 
for the oilseed.
    The payment rate determined by the Secretary must consider the 
number of eligible payment acres and payment yields as well as the 
fixed amount of CCC funds authorized by Congress for the Oilseed 
Program.
    The Oilseed Program as prescribed by Congress in ARPA clearly lays 
out total available funding for direct producer payments and procedures 
for determining payment acreage and yield as did the 2000 
Appropriations Act. For this reason no options were considered 
regarding these aspects of the program.
    As was the case with the 2000 Appropriations Act, ARPA leaves to 
the Secretary's discretion the method used to establish the payment 
rates under the 2000 Oilseed Program. This latitude results in at least 
two options or alternative methods for determining the payment rate by 
crop for the various types of eligible oilseeds. Under the first 
option, payment rates would be based on production volumes with the 
same per unit payment rate offered for all types of oilseeds. The 
second option would tie payment rates among the types of oilseeds to 
each crop's relative market value using Olympic average farm prices for 
the 1995 through 1999 marketing years. The second option was selected 
because it incorporates into the payment rate calculation some measure 
of relative market value for each type of oilseed. This method was also 
used to determine the 1999 oilseed payment rate. Tying the payment rate 
to market value was thought to be more equitable to producers of higher 
value minor oilseeds because prices are much more volatile and quality 
issues much more important in the markets for these crops.
    The budgetary impact of the Oilseed Program will total $500 
million. The largest share of total payments will go to soybean 
producers who, based on pre-enrollment estimates, are expected to 
receive $477,933,976 or 96 percent of the total payments (Table 3). 
Pre-enrollment estimates for payments to minor oilseed producers are as 
follows: $14,516,899 for sunflower seed producers, $4,266,230 for 
canola producers, $1,749,382 for safflower producers, $1,136,675 for 
flaxseed producers, $193,049 for mustard seed producers, $124,066 for 
crambe

[[Page 65713]]

producers, $16,753 for rapeseed producers, and $62,969 for sesame 
producers. Because this assistance will be in the form of direct 
payments, the program is expected to result in a dollar-for-dollar 
increase in farm income for oilseed producers.
    Pre-enrollment estimates of per unit payment rates are expected to 
be highest for safflower seed and mustard seed at 35 and 33 cents per 
hundredweight (cwt), respectively. The lowest per unit rate is expected 
to be for flaxseed at 22 cents per cwt (13 cents per bushel). The pre-
enrollment estimate for the soybean payment rate is 24 cents per cwt 
(14 cents per bushel). On a per acre basis, the payments will be 
highest for soybeans and safflower at $5.96 and $5.92 per acre, 
respectively. For the remaining oilseeds, pre-enrollment estimates 
indicate that per acre payments will range from a low of $2.70 for 
mustard seed to a high of $3.65 for sunflower seed.
    Final payment acreage and yield will depend upon enrollment. If 
actual enrollment data indicate that claims are different than 
$500,000,000, a national factor will be applied so outlays equal 
$500,000,000. This factor could be greater than or less than 1.

2000 Crop Eligibility for Loan Deficiency Payments

    The Federal Agriculture Improvement and Reform Act of 1996 (the 
1996 Act) provided farms with base acreage for the 1996 crop the option 
to sign production flexibility contracts (PFC) for the 1996-2002 crops 
of wheat, corn, grain sorghum, barley, oats, upland cotton, and rice. 
Producers on farms enrolled in a PFC receive PFC payments that are 
based on the contract acres enrolled and the program yield for the 
contract commodity on the farm. In addition, these producers are 
eligible to receive commodity loan benefits for any contract commodity 
produced on the farm.
    Results from the one-time sign-up for production flexibility 
payments, and thus, eligibility to receive loan benefits, suggest that 
most eligible cropland was enrolled in the program. Of the eligible 
1996 cropland base, 98.8 percent was enrolled.
    Section 135 of the 1996 Act specifies that a producer may elect to 
receive a loan deficiency payment (LDP) on a quantity of an eligible 
commodity rather than placing the commodity under loan. Commodities 
eligible for a nonrecourse marketing assistance loan include PFC 
commodities (wheat, rice, upland cotton, corn, grain sorghum, barley, 
and oats) and oilseeds, including soybeans, crambe, sesame, and minor 
oilseeds (sunflower seed, canola, flaxseed, mustard seed, safflower, 
and rapeseed). Under the terms of section 135, as enacted, to receive 
an LDP on production of a PFC commodity, the farm on which the 
commodity was produced must have eligible cropland covered by a PFC.
    Section 206 of the ARPA, however, expands the eligibility of 
producers of contract commodities to receive LDPs. Under the ARPA, any 
producer of a contract commodity, whether or not the commodity was 
produced on a farm with eligible cropland covered by a PFC, is eligible 
to receive LDPs on all production of contract commodities on the farm 
for the 2000 crop only.
    It was assumed that all cropland suitable for production of 
contract commodities was included in the total base acres eligible for 
enrollment in a PFC. Thus, the potential cropland which could become 
eligible for LDPs under the provisions of the 2000 Act is represented 
by the crop base that was not enrolled in a PFC. Based on this 
assumption, an additional 2,603,649 acres of contract commodities grown 
during 2000/01 will be eligible for LDPs.
    Because the 1996 Act provided nearly complete planting flexibility 
to producers, the mix of crops grown on the additional LDP eligible 
cropland is unlikely to match the base acreage in 1996. It is assumed 
that the mix of crops on the additional eligible acres is similar to 
the crop mix planted nationally. In addition, it is assumed that the 
average yield of each contract commodity grown on these acres is equal 
to the national average yield, and the LDP rate is equal to the 
national average LDP rate. Producers on farms which do not have a PFC 
are expected to request payments at about half the rate of producers on 
farms with a PFC. The additional amount of LDPs which will likely be 
paid under the extension of eligibility provided by the APRA is 
estimated at $43 million and these benefits will be received by an 
additional 100,000 producers.
    Because the additional LDP eligibility was not extended until after 
the 2000 crop had been planted, no change in supply, demand, or prices 
are expected under this program. Thus, the only impact on crop 
producers is the additional LDP payments which will increase farm 
income by a corresponding amount. Food prices are expected to be 
unaffected by the extension of eligibility of LDPs because supply, 
demand, and crop prices are unaffected.

Honey Recourse Loan Program

    The ARPA provides that recourse loans shall be provided for the 
2000 crop of honey on fair and reasonable terms and conditions. It 
further provides that the loan rate shall be 85 percent of the average 
price of honey during the 5-crop year period preceding the 2000 crop 
year, excluding the crop years in which the average price was the 
highest and the lowest.
    The 2000-Crop Honey Recourse Loan Program (2000 Honey Program) will 
be administered in the same manner as the 1999-Honey Recourse Loan 
Program (1999 Honey Program). The 1999 Honey Program requires that the 
repayment of a loan shall include repayment of principal and interest. 
The loans must be repaid and honey may not be delivered to the CCC in 
satisfaction of the loan obligation. Loans will mature no later than 9 
months following the month in which the loan is disbursed. Thus, loan 
principal can be held for a maximum of 10 months. Uniform Storage 
Agreements for honey warehouses will not apply. Interest will be 
charged at the rate paid by CCC plus 1 percentage point. There will not 
be loan premiums and discounts. If a loan is not repaid, CCC will 
conduct a local sale of the honey used as loan collateral. If the sales 
proceeds do not equal or exceed the amount owed by the producer, a 
claim will be established.
    Effective August 1995, China agreed to limit its exports to the 
United States and to establish a price floor on such exports. That 
agreement was credited by the domestic honey industry for resulting in 
the price increases, from an annual average price of 52.8 cents for 
1994, to 68.5 cents for 1995, and 88.8 cents for 1996. However, prices 
then began falling, to 75.2 cents for 1997, 65.5 cents for 1998, and 
59.9 cents for 1999. Honey prices reported in June 2000 by the National 
Honey Market News (published by the Agricultural Marketing Service) 
have been in the range of 40-60 cents per pound, down about 3 cents 
from a year ago. Producers see these lower prices resulting from 
abundant and cheap imports, now primarily from Argentina. Imports make 
up about 40 percent of the honey consumed in the United States.
    The 2000-crop loan rate will be unchanged from last year at 59.0 
cents per pound based on the 1995 through 1999 prices and the statutory 
formula. With the current relatively low price for honey, the 2000-crop 
loan rate is expected to exceed most current market prices. This 
exposes CCC to the possibility of losses if loans are defaulted on and 
the proceeds from sale

[[Page 65714]]

of the honey are not large enough to cover the loan amount and interest 
expense. Loan default expenses are budgeted for in the program, but 
none has occurred in the past.
    Producers who use the 2000-crop loan program will benefit from the 
reduced borrowing costs compared with commercial loans. Estimates of 
this interest savings are based on an assumed commercial rate of prime 
plus 2 percentage points. Currently, a honey producer would be charged 
7.25 percent by CCC compared to 11.24 percent by a commercial lender. 
This 4-percentage point difference on program loan principal of $12 
million (same as loaned in 1999) is equivalent to loan interest savings 
to the sector of about $400,000, if all loans are held the full 10 
months. Producers may also gain from circumstances where commercial 
credit may not be available to them.
    Program advocates assert that the primary benefit of the program is 
to allow producers to delay marketings to take advantage of any 
subsequent market price increases. A market-price increase of about 3.2 
cents per pound would be needed to recover the loan interest if the 
loan is held to maturity. Current market prices are relatively low due 
to continued imports of cheap honey from China and Argentina.
    Domestic honey prices are closely related to prices of imports 
because of sizeable quantities imported. For the 1992-1995 period, 
honey imports represented about 42 percent of total domestic honey 
consumption. Without higher foreign honey prices, it would seem likely 
that domestic honey prices will remain low in spite of the 2000 Honey 
Loan Program. The amount of honey estimated to be put under loan is not 
sufficient to create upward price pressure. With prices expected to be 
unaffected by the loan program, domestic consumers will not be 
impacted.

2000 Flood Compensation Program

    Legislation creating the 1998 Flood Compensation Program (1998 FCP) 
authorized the Secretary of Agriculture to provide financial assistance 
to eligible producers in North and South Dakota that incurred multi-
year crop and grazing losses due to continuous flooding. Continuation 
of such flooding in these States has resulted in the need for further 
compensation to producers whose covered land has been unusable for 
agricultural production during the 2000 crop year. Section 257 of the 
Agricultural Risk Protection Act of 2000 (Pub. L. 106-224) authorizes 
the Secretary to provide assistance to these producers under the 2000 
Flood Compensation Program (2000 FCP).
    Reports from State Farm Service Agency offices project that about 
500,000 acres in North Dakota and 729,987 acres in South Dakota will be 
flooded continuously during the 2000 crop year (i.e., flooding will 
have occurred from October 1, 1999, through September 30, 2000). These 
reports also suggest that about 12,000 producers are likely to be 
eligible for assistance.
    Under the 2000 FCP, payments will be provided to eligible producers 
in the approved counties based on the quantity of cropland and pasture 
that was incapable of agricultural production due to flooding during 
the 2000 crop year. Per-acre payment rates will equal the average cash 
rental rate established for the county by the National Agricultural 
Statistics Service for the 2000 crop year. One rate per county will be 
established for cropland and another rate for pasture. Any person with 
gross receipts in excess of $2.5 million for calendar year 1999 will 
not be eligible. The maximum payment amount for eligible persons is 
$40,000, however, the sum of all payments cannot exceed $24 million. 
Therefore, based on the projection of 12,000 eligible producers, the 
average payment per producer will be $2,000.

Peanut Marketing Assistance Program

    The 2000 Peanut marketing Assistance Program will provide $61.6 
million in financial assistance to an estimated 40,000 producers who 
have experienced increased costs of production and lower market prices 
over the last five years. While peanut yields on average have increased 
about 200 pounds per acre, this increase has not ameliorated the impact 
of the quota price support freeze and increased cost of production. 
Payments under the program will be based on produced and considered 
produced peanuts at the rates of $30.50 per ton for quota peanuts and 
$16.00 per ton for additional peanuts. Payments will assist peanut 
producers in meeting their financial obligations and are not likely to 
affect the market price for peanut products. No measurable impact is 
likely for consumers.

List of Subjects

Part 1411

    Loan programs--agriculture, Oilseeds, Price support programs, 
Reporting and recordkeeping requirements.

Part 1421

    Feed grains, Loan programs--agriculture, Oilseeds, Peanuts, Price 
support programs, Reporting and recordkeeping requirements, Rice, 
Wheat.

Part 1427

    Cotton, Loan programs--agriculture, Price support programs, 
Reporting and recordkeeping requirements.

Part 1434

    Honey, Loan programs--agriculture, Price support programs, 
Reporting and recordkeeping requirements.

Part 1439

    Animal feeds, Disaster assistance, Grant programs--agriculture, 
Livestock, Reporting and recordkeeping requirements.

Part 1447

    Disaster assistance, Peanuts, Price support programs, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, Chapter XIV is amended as 
set forth below.

PART 1411--OILSEEDS PROGRAM

    1. The authority citation for 7 CFR part 1411 is revised to read as 
follows:

    Authority: Sec. 202, Pub. L. 106-224.


    2. Revise Sec. 1411.101 to read as follows:


Sec. 1411.101  Applicability.

    This part implements the oilseed provisions enacted in section 202 
of the Agricultural Risk Protection Act of 2000 (Public Law 106-224), 
which provides funds to allow for payments to producers who planted 
eligible oilseeds in 2000 and who meet other conditions of eligibility.


    3. Amend Sec. 1411.103 to revise the introductory paragraph and 
definitions of ``County average soybean yield'', ``Eligible oilseed'', 
``Established producer'', ``National average oilseed yield'', and ``New 
producer'', to read as follows:


Sec. 1411.103  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering the 2000 Oilseeds Program, and shall be 
used for Oilseeds Program purposes only. Although the definitions 
contained in parts 718 and 1412 of this title also apply, to the extent 
that the definitions in this section differ from the definitions in 
parts 718 and 1412 of this title, the definitions in this section apply 
rather than the definitions in parts 718 and 1412 of this title.
* * * * *
    County average soybean yield means an average yield approved by 
DAFP

[[Page 65715]]

using an Olympic average of the county's average soybean yield for each 
of the crop years 1995 through 1999 as determined by the State 
committee. To the extent such data is available, data from NASS shall 
be used.
* * * * *
    Eligible oilseed means one of the following kinds of oilseeds: 
soybeans, safflower seed, canola, rapeseed, mustard seed, sunflower 
seed (oil and confectionary), flaxseed, crambe, and sesame.
    Established producer means a producer who planted an oilseed for 
the 2000 crop year, and shared in the production of that specific 
oilseed in 1997, 1998, or 1999.
    National average oilseed yield means the Olympic average yield for 
an eligible oilseed using the National average yields for the oilseed 
for the years 1995 through 1999. Such yields shall be considered valid 
only if approved by DAFP.
    New producer means a producer who planted an eligible oilseed for 
crop year 2000, but did not plant or share in the production of that 
oilseed in 1997, 1998, or 1999. A producer may be a new producer of one 
eligible oilseed, while being an established producer for another 
oilseed.
* * * * *

    4. Revise Sec. 1411.201 to read as follows:


Sec. 1411.201  Eligible producers.

    (a) Section 202 of Public Law 106-224 authorizes the Secretary to 
make payments to a producer who planted an eligible oilseed in 2000. 
Accordingly, producers of the 2000 crop of oilseeds identified in 
Sec. 1411.103 are eligible to receive 2000 Oilseeds Program benefits, 
providing the producer meets the requirements of this part, and is in 
compliance with part 12 of this title regarding the conservation and 
protection of highly erodible lands and wetlands, and Sec. 718.11 of 
this title regarding denials of program benefits for activities 
relating to the use of controlled substances.
    (b) Eligibility determinations made under this part will be made 
for each producer separately for each specific eligible oilseed planted 
by that producer in 2000. A producer is not eligible for payment with 
respect to an oilseed that the producer did not plant in 2000 
regardless of whether the producer did or did not plant that oilseed in 
1997, 1998, or 1999.


    5. Amend Sec. 1411.204 by revising paragraphs (a) and (b) to read 
as follows:


Sec. 1411.204  Payment acreage.

    (a) The oilseed payment acreage for an established producer shall, 
for a particular oilseed, be the higher of the three acreage amounts 
determined by calculating, for the 1997, 1998, and 1999 crops 
separately, the acreage determined to be equal to the producer's 
acreage for that oilseed at all locations for that crop year, adjusted 
to reflect interests that are only partial interests in such acreage.
    (b) The payment acreage for a new producer of an eligible oilseed 
will be the producer's acreage for that oilseed for the 2000 crop at 
all locations, adjusted to reflect interests that are only partial 
interests in such acreage.
* * * * *


    6. Amend Sec. 1411.205 by revising paragraphs (b) and (c) to read 
as follows:


Sec. 1411.205  Payment yield.

    (a) * * *
    (b) A new producer's payment yield with respect to a particular 
eligible oilseed shall be the higher of the:
    (1) Applicable average yield for that oilseed or
    (2) Producer's actual yield for the 2000 crop year.
    (c) For established producers, the producer's payment yield for a 
particular oilseed shall be the higher of:
    (1) Applicable average yield; or
    (2) The highest for the 1997, 1998, and 1999 crops of the 
producer's actual yield respectively for those crop years for all acres 
of the oilseed planted by the producer.
* * * * *


Sec. 1411.301  [Amended]


    7. In Sec. 1411.301, remove the dollar amount ``$475 million'' and 
add in its place the amount ``$500 million.''


Sec. 1411.303  [Amended]


    8. Amend Sec. 1411.303 as follows:
    a. Remove the words ``Oilseed Program purposes'' and add in their 
place the words ``purposes of the Oilseed Program operated under this 
part pursuant to Public Law 106-224''; and
    b. Remove the date ``February 18, 2000'' and add in its place the 
words ``the last day of the signup period announced in accordance with 
Sec. 1411.301''.


Sec. 1411.402  [Amended]


    9. Amend Sec. 1411.402(c) as follows:
    a. Add the word ``form'' preceding the term ``FSA-211'; and
    b. Remove the date ``June 22, 2000'' and add in its place, the date 
November 16, 2000.

PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES

    10. The authority citation for part 1421 is revised to read as 
follows:

    Authority: 7 U.S.C. 7213-7235, 7237; 15 U.S.C. 714b, 714c; Sec. 
813, Pub. L. 106-78, 113 Stat. 1182; Sec. 206, Pub. L. 106-224.


    11. Amend Sec. 1421.1 by adding paragraph (f) to read as follows:


Sec. 1421.1  Applicability.

* * * * *
    (f) Not withstanding provisions of this subpart and subchapter:
    (1) Eligible contract commodities produced during the 2000 crop 
year on a farm that is not covered under a production flexibility 
contract, as defined in part 1412 of this chapter, are eligible for a 
loan deficiency payment to eligible producers in accordance with 
Sec. 1421.4.
    (2) With respect only to contract commodities produced in the 2000 
crop year on a farm not covered under a production flexibility 
contract, a producer may receive with respect to such commodities, a 
loan deficiency payment in connection with the administration of loans 
under this part even though the crop has already been marketed, so long 
as:
    (i) Neither the producer nor anyone else has received a marketing 
loan gain or loan deficiency payment on the commodity;
    (ii) The person seeking the payment is the actual producer of the 
commodity and had beneficial interest in the commodity at the time of 
the operative marketing;
    (iii) The producer will receive the payment as a loan deficiency 
payment in which case the amount to be paid will be determined as of 
the date the producer marketed or lost beneficial interest in the 
commodity;
    (iv) Unless otherwise allowed by the Deputy Administrator for Farm 
Programs, FSA, the commodities were harvested and marketed on or before 
December 4, 2000.

PART 1427--COTTON

    12. The authority citation for 7 CFR part 1427 is revised to read 
as follows:

    Authority: 7 U.S.C. 7231, 7235, 7237; 15 U.S.C. 714b, 714c; Pub. 
L. 106-78, 113 Stat. 1182; Sec. 206, Pub. L. 106-224.


    13. Amend Sec. 1427.1 by adding paragraph (e) to read as follows:


Sec. 1427.1  Applicability.

* * * * *
    (e) Not withstanding provisions of this subpart and subchapter:

[[Page 65716]]

    (1) Eligible cotton produced during the 2000 crop year on a farm 
that is not covered under a production flexibility contract, as defined 
in part 1412 of this chapter, are eligible for a loan deficiency 
payment to eligible producers in accordance with Sec. 1427.4.
    (2) With respect only to loan deficiency payments for eligible 
cotton produced in the 2000 crop year on a farm not covered by a 
production flexibility contract, a producer may receive with respect to 
such cotton, a loan deficiency payment in connection with the 
administration of loans under this part even though the cotton has 
already been marketed, so long as:
    (i) Neither the producer nor anyone else has received a marketing 
loan gain or loan deficiency payment on the cotton;
    (ii) The person seeking the payment is the actual producer of the 
cotton and had beneficial interest in the cotton at the time of the 
operative marketing;
    (iii) The producer will receive the payment as a loan deficiency 
payment in which case the amount to be paid will be determined as of 
the date the producer marketed or lost beneficial interest in the 
cotton;
    (iv) Unless otherwise allowed by the Deputy Administrator for Farm 
Programs, FSA, the cotton was harvested and marketed on or before 
December 4, 2000.
* * * * *

PART 1434--RECOURSE LOAN REGULATIONS FOR HONEY

    14. The authority citation for 7 CFR part 1434 is revised to read 
as follows:

    Authority: Sec. 1122, Pub. L. 105-277, 112 Stat. 2681; Sec. 
3018, Pub. L. 106-31, 113 Stat. 57; Sec 801(f), Pub. L. 106-78, 113 
Stat. 1175; Sec. 204(c), Pub. L. 106-224.


Sec. 1434.1  [Amended]

    15. Amend the first sentence of Sec. 1434.1 by removing the words 
``1998-crop and 1999-crop'' and adding in their place the words ``2000-
crop year''.

    16. Amend Sec. 1434.6 by revising paragraphs (a) and (d) to read as 
follows:


Sec. 1434.6  Application, availability, disbursement, and maturity.

    (a) The deadline for requesting a loan offered under this part is 
March 31, 2001.
    (b) * * *
    (c) * * *
    (d) Subject to paragraph (a) of this section, loans for the 2000-
crop of honey will be available to producers on such date as may be 
announced by the Secretary.

PART 1439--EMERGENCY LIVESTOCK ASSISTANCE

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

    Authority: 15 U.S.C. 714b, 714c; Sec. 805, 825, Pub. L. 106-78, 
113 Stat. 1135; Pub. L. 106-113; Sec. 257, Pub. L. 106-224.


    18. Amend part 1439 by adding subpart F to read as follows:

Subpart F--2000 Flood Compensation Program

Sec.
1439.501   Applicability.
1439.502  Administration.
1439.503  Definitions.
1439.504  Application process.
1439.505  County committee determinations of general applicability.
1439.506  Eligible land and loss criteria.
1439.507  Producer eligibility.
1439.508  Calculation of assistance.
1439.509  Availability of funds.

Subpart F--2000 Flood Compensation Act


Sec. 1439.501  Applicability.

    This subpart sets forth the terms and conditions applicable to the 
2000 Flood Compensation Program (FCP). Benefits will be provided to 
eligible producers in the United States but only in counties approved 
under the 1998 FCP (provided for in regulations of this part contained 
in the 7 CFR, parts 1200 to 1599, edition revised as of January 1, 
2000), where long-term flooding occurred, and that were subsequently 
approved by the Deputy Administrator for Farm Programs as eligible 
counties.


Sec. 1439.502  Administration.

    This subpart shall be administered as set forth in Sec. 1439.2, 
except as provided for in this subpart.


Sec. 1439.503  Definitions.

    Except as otherwise indicated, terms in this part shall have the 
same meanings as those defined in 7 CFR 1439.3 and 718.2. To the extent 
that the definitions in this section differ from the definitions in 7 
CFR 1439.3 and 718.2, the definitions in this section apply rather than 
the definitions in 7 CFR 1439.3 and 718.2
    Application means the Form CCC-454, Flood Compensation Program 
Application. The CCC-454 is available at county FSA offices.
    Covered land means:
    (1) Land that:
    (i) Was unusable for agricultural production during 2000 crop year 
as the result of flooding;
    (ii) Was used for agricultural production during at least 1 of the 
1992 through 1999 crop years;
    (iii) Is a contiguous parcel of land of at least 1 acre;
    (iv) Is located in a county in which producers were eligible for 
assistance under the 1998 Flood Compensation Program;
    (v) Was not planted during FY 2000; and
    (vi) Meets all other conditions of eligibility.
    (2) The term ``covered land'' excludes any land with respect to 
which a producer is insured, enrolled, or assisted during the 2000 crop 
year under:
    (i) A policy or plan of insurance authorized under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.);
    (ii) The noninsured crop assistance program operated under section 
196 of the Agricultural Market Transition Act (7 U.S.C. 7333);
    (iii) Any crop disaster program established for the 2000 crop year;
    (iv) The conservation reserve program established under subchapter 
B of chapter 1 of subtitle D of the Food Security Act of 1985 (16 
U.S.C. 3831 et seq.);
    (v) The wetlands reserve program established under subchapter C of 
chapter 1 of subtitle D of the Food Security Act of 1985 (16 U.S.C. 
3837 et seq.);
    (vi) Any emergency watershed protection program or Federal easement 
program that prohibits crop production or grazing; or
    (vii) Any other Federal or State water storage program, as 
determined by the Secretary.
    FCP means the Flood Compensation Program provided for in this part.
    FY 2000 means the period from October 1, 1999 through September 30, 
2000.
    NASS means The National Agricultural Statistics Service.


Sec. 1439.504  Application process.

    (a) Producers must submit a completed application prior to the 
close of business on December 15, 2000, or other such later date as 
established and announced by the Deputy Administrator. The application 
and any supporting documentation shall be submitted to the FSA county 
office with administrative authority over a producer's eligible flooded 
land or to the FSA county office that maintains the farm records for 
the producer.
    (b) Producers shall certify as to the accuracy of all the 
information contained in the application, and provide any other 
information to CCC that the FSA county office or FSA Committee deems 
necessary to determine the producer's eligibility.

[[Page 65717]]

Sec. 1439.505  County committee determinations of general 
applicability.

    (a) FSA county committees shall determine whether that county was 
determined eligible under the 1998 FCP, and whether the land has been 
unusable from October 1, 1999 through September 30, 2000 due to 
continuing flooding. In making this determination, the FSA county 
committee shall use what it considers to be the best information 
available including but not limited to: Cooperative State Research, 
Education, and Extension Service; Natural Resources Conservation 
Service; aerial photography; rainfall data; and general knowledge of 
losses due to flooding.
    (b) With respect to each eligible county, the FSA county committee 
for that county shall establish a separate payment rate for crop-land 
and pasture-land. These rates shall be reviewed by the FSA state 
committee and shall be equal to the average rental rate for the years 
1996 through 2000 for all such land of each type in the county. Where 
these rates cannot be set in the manner provided for in paragraph (c) 
of this section, the FSA state committee may take into account rates 
established for the Conservation Reserve Program operated under 7 CFR 
part 1410 and ensure, subject to paragraph (c) of this section, that 
the rates are comparable. The Deputy Administrator shall review and may 
adjust the rates for reasonableness and consistency.
    (c) Except as provided by the Deputy Administrator, rental rates 
shall be equal to the applicable county average for the kind of land 
involved using established NASS data in all locations where NASS has 
established rental rates on a county-by-county basis for 2000.


Sec. 1439.506  Eligible land and loss criteria.

    (a) The flooded land for which a producer requests benefits must be 
within the physical boundary of an eligible county. Producers in 
unapproved counties contiguous to an eligible county will not receive 
benefits under this subpart.
    (b) To be eligible for benefits under this subpart, a producer in 
an eligible county must have land in a county which is eligible for 
payment. Such land, to be eligible for payment must meet all of the 
following criteria:
    (1) The land is cropland or pasture land used for the production of 
feed for livestock (haying, grazing, or feed grain production) or other 
agricultural use in one or more years during the period beginning 
October 1, 1991, through September 30, 1999;
    (2) The land is inaccessible or unable to be used for crop 
production, grazing, or haying because of flooding or excess moisture 
during all of the period beginning October 1, 1999, through September 
30, 2000 unless some other period is established as the 2000-crop year 
for the commodity by the Deputy Administrator;
    (3) The land was not used for planting during October 1, 1999, 
through September 30, 2000;
    (4) The land has been owned, leased or under a binding cash lease 
by the producer continuously since October 1, 1999;
    (5) The land is a contiguous parcel of land with an area equal to 
one acre or more;
    (6) The land was not, except as determined by the Deputy 
Administrator, the subject of, nor will be the subject of, any other 
federal payment for activities or lack of activity during the period 
October 1, 1999, through September 30, 2000, whether or not disaster-
related, with the exception of the production flexibility contract 
(PFC) program payments received under 7 CFR part 1412. This prohibition 
includes but is not limited to other payments under this part, or 
payments under the Conservation Reserve Program (7 CFR part 1410), the 
Wetlands Reserve Program (7 CFR part 1467), any Emergency Watershed 
Protection Program, or Federal Easement Program.
    (c) On Form CCC-454 producers shall be required to certify by tract 
on each farm the number of flooded cropland and non-cropland acres for 
the farm in 2000 and the number of flooded cropland and non-cropland 
acres in 1992. To establish the acreage eligible for payment, flooded 
land certified for 1992 for each type shall be subtracted from the 
flooded land certified for 2000 for the applicable type. The difference 
will be the acreages of cropland and non-cropland subject to flooding 
and eligible for FCP payment, except that the difference may be 
adjusted as needed to ensure, to the extent practicable, an accurate 
estimate of the net increased flooding on the farm after October 1, 
1993.
    (d) All determinations as to the amount of land eligible for 
enrollment and compensation under this subpart are subject to approval 
by the county committee.
    (e) The FSA county committee may use any available documentation to 
make the determinations under paragraphs (b) and (c) of this section, 
including but not limited to: maps, acreage reports, slides, 
precipitation data, water table levels and disaster reports.


Sec. 1439.507  Producer eligibility.

    (a) Payments under this subpart shall be subject to the provisions 
of Sec. 1439.1 through Sec. 1439.12, except as otherwise provided in 
this subpart.
    (b) No person (as defined and determined under 7 CFR part 1400) may 
receive more than $40,000 under this subpart.
    (c) No person (as defined and determined under 7 CFR part 1400) 
will be eligible for payment under this subpart if that person's annual 
gross receipts for calendar year 1999 were in excess of $2.5 million. 
That determination shall be made in the manner provided for in 
Sec. 1439.11.
    (d) The following entities are not eligible for benefits under this 
subpart:
    (1) State or local governments or subdivisions thereof; or
    (2) Any individual or entity who is a foreign person as determined 
in accordance with the provisions of 7 CFR 1400.501 and 1400.502.


Sec. 1439.508  Calculation of assistance.

    (a) The unadjusted value of FCP assistance determined with respect 
to the flooded land in an eligible county for each producer shall not 
exceed the amount obtained by adding the amounts in paragraphs (b) and 
(c) of this section.
    (b) For each eligible producer with respect to the applicable 
qualifying cropland which is determined, consistent with this subpart, 
to be eligible land for the payment purposes, the established local 
payment rate for cropland will be multiplied by the number of acres 
determined to be qualifying acres, as determined by the County 
Committee in accordance with instructions of the Deputy Administrator.
    (c) For each eligible producer with respect to the applicable 
qualifying non-cropland acres consistent with this subpart, as 
determined by the county committee in accordance with instructions of 
the Deputy Administrator, the acres will be multiplied by the 
established payment rate for non-cropland acres.
    (d) Payments will be adjusted as determined necessary to comply 
with other provisions of this subpart such as those set in 
Sec. 1439.509.


Sec. 1439.509  Availability of funds.

    In the event that the total amount of claims submitted under this 
subpart exceeds the $24 million authorized for FCP by Public Law 106-
224, each payment to a producer shall be reduced by a uniform national 
percentage. Such payment reductions shall be after the imposition of 
applicable payment limitation provisions.

[[Page 65718]]

PART 1447--1999 PEANUT MARKETING ASSISTANCE PROGRAM

    19. Revise the heading for part 1447 to read as follows:

PART 1447--2000 PEANUT MARKETING ASSISTANCE PROGRAM

    20. The authority citation for 7 CFR part 1447 is revised to read 
as follows:

    Authority: Pub. L. 106-78, 113 Stat 1135; Sec. 204(a), Pub. L. 
106-224; 15 U.S.C. 714b, 714c.


    21. Revise Sec. 1447.101 to read as follows:


Sec. 1447.101  Applicability.

    This part sets out provisions related to the 2000 crop of peanuts 
as authorized and in accordance with the applicable provisions of 
Public Law 106-224, the Agricultural Risk Protection Act of 2000 (the 
2000 Act). Under section 204(a) of the 2000 Act, the Secretary of 
Agriculture is required to make certain payments available to eligible 
producers of 2000-crop quota and additional peanuts.

    22. Amend Sec. 1447.105 by revising paragraph (a) to read as 
follows:


Sec. 1447.105  Time for filing application.

    (a) Applications for benefits under this part must be filed on or 
after October 2, 2000, but not later than the close of business on 
February 1, 2001, in the county FSA office serving the county where the 
producer's farm is located for administrative purposes.
* * * * *

    23. Revise Sec. 1447.106 to read as follows:


Sec. 1447.106  Payment rate.

    (a) Payment rate for quota peanut production. The payment rate for 
quota peanuts under this part is $30.50 per ton.
    (b) Payment rate for additional peanut production. The payment rate 
for additional peanuts under this part is $16.00 per ton.

    24. Amend Sec. 1447.107 by revising paragraphs (a)(3)(ii) and 
(a)(3)(iii) to read as follows:


Sec. 1447.107  Calculation of Payment.

    (a) * * *
    (3) * * *
    (ii) The actual yield for any of the 1997, 1998 or 1999 crop years,
    (iii) The actual yield for the 2000 crop year.
* * * * *

    Signed in Washington, DC, on October 25, 2000.
Keith Kelly,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 00-27793 Filed 10-27-00; 10:26 am]
BILLING CODE 3410-05-P