[Federal Register Volume 66, Number 55 (Wednesday, March 21, 2001)]
[Rules and Regulations]
[Pages 15976-15989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6987]



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Part IV





Department of Agriculture





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Commodity Credit Corporation



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7 CFR Part 1480



2000 Crop Disaster Program; Final Rule

  Federal Register / Vol. 66, No. 55 / Wednesday, March 21, 2001 / 
Rules and Regulations  

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1480

RIN 0560-AG36


2000-Crop Disaster Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements provisions of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (2001 Act) related to crop-loss disaster 
assistance for producers who suffered 2000-crop losses, and other 
specified crop year losses, because of adverse weather or other 
specified conditions.

DATES: Effective March 19, 2001.

FOR FURTHER INFORMATION CONTACT: Rebecca Davis, Chief, Compliance 
Branch, FSA, USDA; Telephone: (202)720-9882.

SUPPLEMENTARY INFORMATION:

Notice and Comment

    Section 840 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 2001 (2001 
Act) (Public Law 106-387) requires that, with respect to the programs 
authorized by sections 804, 811 and 815 of the 2001 Act, the 
regulations be issued as soon as practicable and without regard to the 
notice and comment provisions of 5 U.S.C. 553 or the Statement of 
Policy of the Secretary of Agriculture (the Secretary) effective July 
24, 1971 (36 FR 13804) relating to notices of proposed rulemaking and 
public participation in rulemaking. These provisions are thus issued as 
final and are effective immediately.

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been determined to be Economically Significant and has been 
reviewed by the Office of Management and Budget. A cost-benefit 
assessment was completed and is summarized following the Background 
section.

Federal Assistance Programs

    The titles and number of the Federal assistance program, as found 
in the Catalog of Federal Domestic Assistance, to which this final rule 
applies are: Crop Disaster Program (D); 10.073.

Regulatory Flexibility Act

    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.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 
12988. The provisions of this rule preempt State laws to the extent 
such laws are inconsistent with the provisions of this rule. Before any 
judicial action may be brought concerning the provisions of this rule, 
the administrative remedies must be exhausted.

Unfunded Mandates Reform Act of 1995 (UMRA)

    This rule does not impose any mandates on State, local or tribal 
governments, or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of the UMRA.

Small Business Regulatory Enforcement Fairness Act of 1996

    Section 840 of Public Law 106-387 requires that the regulations 
necessary to implement these provisions be issued as soon as 
practicable and 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. It also requires 
that the Secretary use the provisions of 5 U.S.C. 808 (the Small 
Business Regulatory Enforcement Fairness Act (SBREFA)), which provides 
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 section 801 of SBREFA requiring a 60-day 
delay for Congressional review of a major regulation before the 
regulation can go into effect. This rule is considered a major rule for 
the purposes of SBREFA, but Congress has expressed its desire that 
these regulations be issued expeditiously without protracted notice and 
comment, or additional delays required by section 801 of SBREFA. 
Inasmuch as the rule affects the incomes of a large number of 
agricultural producers who have been hit hard by natural disasters, and 
given the clear intent expressed by Congress, CCC finds that further 
delays are contrary to the public interest and therefore, this 
regulation is issued as final and is effective immediately.

Paperwork Reduction Act

    Section 840 of the 2001 Act requires that the regulations 
implementing sections 804, 811 and 815 be promulgated without regard to 
the Paperwork Reduction Act. This means that the normal 60-day public 
comment period and OMB approval of the information collections required 
by this rule are not required before the regulations may be made 
effective.

Background

    Provisions of the 2001Act authorize the Secretary to provide 
disaster assistance to crop producers for losses due to damaging 
weather and related conditions, losses due to crop disease and insects 
for 2000 crops, and other crops in certain limited instances. 
Generally, by terms of the statute, crop loss assistance is to be made 
available under the same or similar terms and conditions as the crop 
loss provisions administered for 1998 crop losses, as provided in the 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriation Act, 1999 (Public Law 105-277). However, 
there are certain notable additions, exceptions and restrictions in the 
2000-crop Disaster Program (2000 CDP) that were not applicable to the 
1998 single-year Crop Loss Disaster Assistance Program (CLDAP).
    Principally, the rules for the 2000 CDP differ from the rules for 
the 1998 single-year CLDAP in the following manner:
    1. A section has been added to clarify which crop losses are 
eligible for coverage;
    2. The eligible causes of loss have been expanded, as specified by 
Section 804 of the 2001 Act, to include losses from insect damage from 
grasshoppers and Mormon crickets; and losses caused

[[Page 15977]]

by aflatoxin, plum pox virus, Pierce's disease, watermelon sudden wilt 
disease; losses from Mexican fruit fly quarantines in certain 
California counties; all of which are not required to be weather 
related;
    3. Eligible causes of loss for irrigated crops, both planted and 
prevented planted, for 2000 CDP, include lack of irrigation water from 
saltwater intrusion or contamination of irrigation water supply due to 
drought conditions;
    4. Also included as an eligible cause of loss to irrigated crops is 
water rationing if proof is provided that water was rationed by a 
Government entity or a water district;
    5. The crop insurance linkage requirement was modified so that crop 
insurance will be required on 2001 and 2002 crops that were insurable 
in 2000, but for which the producer did not purchase coverage, and for 
which the producer receives 2000 CDP payments. For the 1998 CLDAP, the 
producer had to obtain crop insurance on all crops of economic 
significance;
    6. The use of special approved yields based on actual production is 
not allowed unless production reports were submitted prior to the 
enactment of the 2001 Act;
    7. The 2001 Act did not include any provisions regarding FCIC 
premiums and discounts for insurance coverage and therefore, all such 
language has been removed;
    8. Language has been added that authorizes FSA county committees to 
make adjustments to RMA data on crop production, crop acres and other 
information supplied to FSA for insured producers for 2000 CDP purposes 
if the reason for adjustment is supported by adequate documentation;
    9. All references regarding the use of a national factor for the 
pro-ration of disaster payments have been removed since the 2000 CDP is 
funded by the Commodity Credit Corporation (CCC), rather than by 
limited appropriation, with the exception of the $38 million 
specifically authorized for 1999 and 2000 apple and potato quality 
adjustments in Section 811 of the 2001 Act, which was subsequently 
reduced to $37,916,400 by the Government-Wide rescission of 
appropriated funds required by the FY 2001 Consolidated Appropriations 
Bill (Public Law 106-554, section 1403);
    10. Unlike the statute covering the preceding disaster programs, 
the 2001 Act did not specifically include trees as an eligible crop for 
2000 CDP and therefore, such assistance for trees will not be available 
in the new program;
    11. Provisions have been added to implement the portion of the 2001 
Act that provides for a separate quality adjustment if the quality loss 
was at least 20 percent of the value of affected production of the crop 
would have had if the crop had not suffered a quality loss;
    12. Additional provisions have been added to provide the maximum of 
$37.9 million in CDP benefits for quality losses specifically for 1999 
and 2000 apple and potato crops due to disaster. Unlike all other 
benefits under the 2000 CDP, these payments are not subject to payment 
limitation and gross revenue provisions, but may be subject to a 
national pro-ration factor if the value of the requests for assistance 
under this part exceed the amount funded;
    13. Provisions for vegetable and root stock as value loss crops 
were revised for clarity and to more accurately reflect the way these 
crops are grown and marketed;
    14. The definitions of ``multiple cropping,'' ``multiple planting'' 
and ``repeat crops'' were added and revised to assist in the 
implementation of the restriction on 2000 CDP benefits to only one crop 
in certain situations;
    15. Language has been added to exclude the use of late-filed crop 
acreage reports for the purpose of developing cropping history under 
the provisions concerning multiple-cropping and prevented planting;
    16. Definition of the ``United States'' has been revised to include 
authority for the Deputy Administrator to determine whether to extend 
disaster assistance to certain U.S. territories based on feasibility 
and disaster occurrences;
    17. Definitions of ``production,'' ``rate,'' and ``yield'' have 
been added for clarity;
    18. The Highly Erodible Land and Wetland Conservation (HELC/WC) 
compliance exclusion for producers of value loss crops has been 
removed;
    19. Language has been added for the revision of the adjusted 
unharvested payment factors if costs associated with growing the crop 
are not incurred;
    20. Crops ineligible for prevented planting assistance have been 
changed to be consistent with crop insurance determinations of crops 
eligible for prevented planted coverage;
    21. Insured producers are now required to provide documentation 
proving their prevented planting eligibility; and
    22. All references to the use of the Palmer Drought Index and the 
contiguous acreage requirement in the determination of prevented 
planted crop acres have been removed to be more consistent with crop 
insurance prevented planting requirements.
    As provided in section 815(e) of the 2001 Act, assistance will be 
applicable to losses, due to disaster, for all crops, as determined by 
the Secretary. The eligible crops will also include irrigated crops 
that, due to lack of irrigation water or contamination by saltwater 
intrusion of an irrigation water supply due to drought conditions, were 
planted and suffered a loss or were prevented from being planted; 
pecans; and nursery losses in the State of Florida that occurred, 
because of disaster, during the period of October 1, 2000, through 
December 31, 2000. For these Florida nursery losses, any benefit 
determined and issued will be independent from other 2000 CDP payments 
and such compensable losses will be ineligible for assistance that may 
become available for 2001 crop losses.
    The 2001 Act limits disaster assistance to only one 2000 crop on 
the same acreage unless there is an established practice of planting 
two or more crops on the same acreage for harvest in the same crop year 
as determined by the Secretary. In the event that two or more crops 
grown on the same acreage are determined eligible for 2000 CDP and the 
exception of multiple-cropping is not applicable as determined by the 
Secretary, the producer must designate the one crop for which 2000 CDP 
will be requested. As previously mentioned, no such restriction was in 
place for the 1998 CLDAP.
    In addition to implementing provisions of section 815 of the 2001 
Act, which, as amended, provides the basic authority for the disaster 
program, this rule also addresses sections 804, 807 and 811 of the 2001 
Act. The first of these, Section 804 of the 2001 Act, provides that CCC 
may provide compensation for losses not otherwise compensated to: (a) 
Compensate growers whose crops could not be sold due to Mexican fruit 
fly quarantines in San Diego and San Bernardino/Riverside counties in 
California since their imposition on November 16, 1999, and September 
10, 1999, respectively; (b) compensate growers in relation to the 
Secretary's ``Declaration of Extraordinary Emergency'' on March 2, 
2000, regarding plum pox virus; (c) compensate growers for losses due 
to Pierce's disease; (d) compensate growers for losses due to 
watermelon sudden wilt disease; and (e) compensate growers for losses 
incurred due to infestations of grasshoppers and Mormon crickets. 
Accordingly, section 1480.10(c) provides that the 2000 CDP will be 
available for these losses. Section 804 was needed because normally, 
and under section 815, CDP-

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type programs are limited to weather-related losses. That being the 
case, it appears, however, that there was no intent to provide any 
relief for growers covered by section 804 that was different from or 
broader than that available for other producers with crop claims under 
section 815. There would, presumably, have been some expression of 
intent to do otherwise had that been Congress' desire. Accordingly, 
except as specified in section 804 itself, the claims in that are 
covered under the rule in connection with that section are only those 
for 2000-crop losses. The rules specify that loss calculations for the 
section 804 crops will be calculated in the same manner as for the 
majority of other losses covered in this rule and will be subject to 
the same limitations including per person limits and other 
restrictions. The rule allows the Deputy Administrator, generally, to 
set such additional limitations as may be appropriate in administering 
this relief and other relief addressed in the regulations.
    Section 807 provides that in using some previously allotted funds, 
losses to nursery stock caused by Hurricane Irene on October 16 and 17, 
1999, are to be considered 1999 crop losses (despite the normal rule 
that losses that late for nursery stock could be considered 2000-crop 
losses). Section 807 does not preclude compensation for these claims 
under section 815, which should allow for full recovery of the losses 
involved and thus not leave any losses remaining to be compensated for 
under previous authorities. Without more, it does not appear to be 
appropriate to assume that Congress meant for there to be double 
compensation on these claims; rather the provisions of section 807 seem 
to reflect the concern that those claims, which occurred in calendar 
year 1999 were not, because of the special rules that govern the 
determination of the program year for nursery stock, compensable under 
the 1999 program. Because of payment limitation consideration, it may 
be that whether these claims are paid under the 2000 program or the 
1999 program could have some effect on the funds available to certain 
producers. Whether accordingly some changes should still be undertaken 
to the 1999 rules, or some action should be taken, is still under 
consideration. The rule allows the Deputy Administrator however to 
consider such claims and take action as the Deputy Administrator deems 
appropriate.
    Section 807 also provides that for certain 1999 crops of citrus for 
which losses occurred in December 1998, certain California growers 
should be compensated at the level that would have applied had those 
claims been considered to be 1998 claims rather than 1999 claims. While 
payment formulas have generally remained unchanged, differing factors 
were applied in 1998 and 1999 for over-subscription of the programs. 
The reduction, by this factoring, was higher for the 1999 program than 
for the 1998 program. This part of section 807 strictly deals with past 
claims and since it deals with a limited number of producers and seems 
to involve a recalculation only, no new rules appear needed. Rather, 
these payments will be handled outside of these regulations.
    Also, this rule, as indicated elsewhere, implements the provisions 
of section 811 of the 2001 Act, which provides for a special program 
for apple and potato losses. Those payments, by the terms of section 
811, are not subject to the normal payment limitations and can be made 
without regard to whether the crop was harvested. The statute provided 
that there cannot be compensation for the same loss under more than one 
program other than the Crop Insurance Program.
    This rule generally provides that apple and potato losses will be 
addressed separately to the extent of the available funding 
($37,916,400). However, if a producer would receive less by that method 
than would have been received under the general section 815 program, 
the difference will be paid under the section 815 program. Since the 
additional payment would be limited to this difference, it would not be 
a duplication of payment for the same loss. This manner of operation 
will allow for a fair allotment of the special, payment limit-free 
funds, while insuring that the special program does not result in 
harming some producers. The rule provides, however, that the Deputy 
Administrator for Farm Programs may make adjustments between the two 
``programs'' (both of which are covered in the same body of 
regulations) as needed to accomplish the goals of the program.
    Another complication involves what can be referred to as a 
``special quality loss'' provisions of section 815(d), as amended in 
later legislation, which provides special rules for the coverage of 
``quality losses'' under the terms of the statute. While that 
subsection on its face indicates that such relief would be to the 
extent of the allowance for quality losses, the same statute also 
provides, generally, that the 2000 program shall be operated in the 
manner of the old 1998 program. The question is whether these new 
provisions exclude certain aspects of the old program in which quantity 
loss adjustments were made based on certain quality-related factors or 
where the general disaster loss was based on lost value, as in the case 
of the nursery stock. Such adjustments are necessary with respect to 
quantity as for some crops it would otherwise be impossible to get a 
fair reading of the actual quantitative effect of the disaster on the 
commodity. For example, part of the measured weight of the commodity on 
marketing can, if there is a problem with the crop, be excess water or 
debris. Given that the new statute appears generally expansive and 
given that there is no indication to the contrary, it has been 
determined that the instruction to operate the program as it was in the 
past includes the authority to include these adjustments of the old 
program, as well as including in the new program, the new quality 
payments provided in section 815(d). That is, the ``special'' quality 
adjustment of section 815(d) is perceived to be an add-on to the 
program rather than being a restriction that would disallow a producer 
from having a qualifying quantity adjusted to reflect, for example, 
that the delivered grade may have included foreign material or excess 
moisture so as to give a false impression of the actual amount of 
production.
    However, the rule recognizes that there is some interplay between 
the quantity adjustments of the old program and the special quality 
provisions of the new statute and provide authority to the Deputy 
Administrator to insure that these existence of these two sets of 
allowances do not result in a double payment for the same problem. That 
is, the rules provide that the producer will be allowed to take the 
special quality payment only if the producer foregoes adjustments that 
may otherwise be made to the quantity determination on the basis of 
grade or lost value. The Deputy Administrator generally is given the 
authority in these rules to take whatever measures are needed to insure 
that there is not double compensation for the same loss.
    Also, as indicated, the regulations contain special rules that 
allow certain nursery losses in the final quarter of calendar year 2000 
to be treated, contrary to normal practice, to be treated as 2000-crop 
losses rather than 2001 crop losses. That provision is compelled by the 
new legislation that provides, too, that those claims will have a 
separate payment limit--and will not count against the limit that 
producers may have for 2000-crop claims that would otherwise arise 
applying the normal rules of crop definition.

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    Another issue in this rule concerns whether receipt of payments 
under this rule will or will not preclude recovery or retention of 
monies that could otherwise be paid to the producer under the 
Noninsured Crop Assistance Program (NAP) operated under 7 CFR part 
1437. In the 1998 program statute, there was a list of programs set out 
for which the payment eligibility would be in addition to that which 
was provided as disaster relief under that statute. One of the listed 
programs was NAP and another was the Federal Crop Insurance Program. A 
second and separate provision was contained in the 1998 Act that also 
specified that there should not be discrimination, in making payments, 
against persons who had acquired federal crop insurance. While the new 
Act has the second provision, it does not have the first. Generally, 
this assistance (the annual disaster programs) have been seen as not 
seeking to replace NAP. Further, it appears that there would be no NAP 
claims of substance for the 2000 crop if a NAP claim would preclude a 
producer from the more generous relief of the 2000 Act. Taking those 
and other factors into consideration, it has been determined that the 
payments under the new program will be in addition to whatever monies 
producers can claim under NAP. NAP does require some effort on the part 
of producers and generally recent disaster bills have seemed to take 
care to avoid any result that would discourage producers from obtaining 
insurance. Also, it is not easy to assume that Congress effectively 
would close down the NAP program, for a year, without saying so and, 
instead, Congress has generally instructed the agency to operate the 
new 2000 disaster program in the same manner as the 1998 program. The 
situation with NAP is different from the tree question addressed 
elsewhere in that the only provision that addressed trees in the 1998 
statute was itself repeated in the new Act but with the reference to 
trees conspicuously left out. As for NAP, the provision that covered 
NAP and other payments was not repeated.
    The same loss thresholds as in previous disaster programs are 
applicable to insured, uninsured and non-insurable 2000 crops. As a 
condition of receiving 2000 CDP assistance, applicants will be required 
to purchase crop insurance coverage, if available, for 2001 and 2002 
crop years for the crops not insured for 2000 and for which 2000 CDP 
benefits are requested. Producers who fail to purchase the crop 
insurance as they agreed will be required to refund all or a portion of 
the disaster assistance provided under this part.
    Producers who seek benefits under this part must file an 
application for benefits during the sign-up period that began on 
January 18, 2001, and will end on or about May 4, 2001, or such other 
date that may be announced by the Deputy Administrator. The sign-up 
period for special quality loss and apple and potato loss programs will 
be conducted at a later date to be announced by the Deputy 
Administrator. False certification carries strict penalties and the 
Department will spot-check and validate applications.
    Like the earlier programs, both gross revenue and per-person 
payment limitations apply, unless specifically stated otherwise. A 
person, as defined under part 1400 of this chapter, may not receive 
more than $80,000 under this part. A person, as defined under part 1400 
of this chapter, is not eligible for benefits if their gross revenue is 
in excess of $2.5 million for the tax year preceding the year for which 
disaster program benefits are requested. The 1997 Census of Agriculture 
indicates that less than 2.4 percent of the farms in the U.S. have 
sales greater than $500,000. Farms with gross incomes of $2.5 million 
or more only represent a small fraction of one percent. The gross 
revenue limitation thus only limits eligibility of the Nation's largest 
farm and ranch operations.

Cost-Benefit Analysis Summary

General

    Payments for insured and noninsured crops will be made at 65 
percent of price, and uninsured crops will be made at 60 percent of 
price. Payments for insured crops will be made at the slightly higher 
rate to provide an incentive to purchase crop insurance. Payments for 
noninsured crops will be made at the higher rate because insurance is 
not available for these crops.
    Claims for losses under the 1998 crop loss disaster assistance 
program and the 1999 crop disaster program were about $2.3 billion and 
$1.7 billion, respectively, before pro-ration. Based on similar weather 
conditions, crop losses under the 2000 program are expected to be about 
$2 billion.
    The $80,000 payment limitation and the limitation of $2.5 million 
gross income will put more payments in the hands of the Nation's 
smaller farms. The 1997 Census of Agriculture indicates that less than 
2.4 percent of the farms in the U.S. have sales greater than $500,000. 
Farms with gross incomes of $2.5 million or more only represent a small 
fraction of one percent. However, because of their large size these 
farms would account for a disproportionate share of crop loss payments 
if there were no income limitation.

Apple and Potato Quality-Losses

    Oversupply created most of the financial challenge currently 
confronting apple and potato growers. Quality problems also contributed 
to the financial stress, especially for Eastern growers. This program 
will offer relief for some, totaling almost $38 million, but will not 
address the principal problem, slumping prices caused by bounteous 
harvests. The 2001 Act also provided $100 million in ``market loss'' 
payments for apple growers, allowing some producers to combine payments 
from the two programs. In addition, government purchases of apples for 
food assistance programs may bolster apple prices. Potato growers are 
voluntarily attempting to take a billion pounds of their crop off the 
market to help alleviate the dampening effect of the record 2000 potato 
crop on potato prices.
    For more information on the Cost-Benefit Analysis, contact Brad 
Karmen, (202) 720-4635.

List of Subjects in 7 CFR Part 1480

    Agricultural commodities, Disaster assistance, Emergency 
assistance, Reporting and recordkeeping requirements.

    For the reasons set out in the preamble, 7 CFR Chapter XIV is 
amended by adding part 1480 to subchapter B to read as follows:

PART 1480--2000 CROP DISASTER PROGRAM

Sec.
1480.1   Applicability.
1480.2   Administration.
1480.3   Definitions.
1480.4   Producer eligibility.
1480.5   Time for filing application.
1480.6   Limitation on payments and other benefits.
1480.7   Requirement to purchase crop insurance.
1480.8   Miscellaneous provisions.
1480.9   Matters of general applicability.
1480.10   Eligible disaster conditions.
1480.11   Qualifying 2000-crop losses.
1480.12   Rates and yields; calculating payments.
1480.13   Production losses, producer responsibility.
1480.14   Determination of production.
1480.15   Calculation of acreage for crop losses other than 
prevented planted.
1480.16   Calculation of prevented planted acreage.
1480.17   Quantity adjustments for diminished quality for certain 
crops.
1480.18   Value loss crops.

[[Page 15980]]

1480.19   Other special provisions for specialty crops.
1480.20   Florida nursery crop losses.
1480.21   [Reserved]
1480.22   Quality losses for 1999 and 2000 apples and potatoes.
1480.23   Quality losses for 2000 crops.

    Authority: Sec. 804, 807, 811 (apple and potato quality loss 
only) and 815, Pub. L. 106-387, 114 Stat. 1549, as amended; 15 
U.S.C. 714 et seq.


Sec. 1480.1  Applicability.

    This part announces the 2000-Crop Disaster Program (2000 CDP) and 
sets forth the terms and conditions applicable to the program. Under 
section 815 of the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriation Act, 2001 (``2001 
Act'') (Public Law 106-387, 114 Stat. 1549), the Secretary of 
Agriculture will use the funds, facilities and authorities of the 
Commodity Credit Corporation to make disaster payments available to 
producers who have incurred losses in quantity or quality of their 
crops due to disasters. Producers will be able to receive benefits 
under this part for losses to eligible 2000 crops as determined by the 
Secretary under that section and under related provisions of the 2001 
Act.


Sec. 1480.2  Administration.

    (a) The program will be administered under the general supervision 
of the Executive Vice President, Commodity Credit Corporation (CCC), 
and shall be carried out in the field by Farm Service Agency (FSA) 
State and county committees.
    (b) FSA State and county committees and representatives do not have 
the authority to modify or waive any of the provisions of this part.
    (c) The FSA State committee shall take any action required by this 
part that has not been taken by an FSA county committee. The FSA State 
committee shall also:
    (1) Correct or require an FSA county committee to correct any 
action taken by such FSA county committee that is not in accordance 
with this part; and
    (2) Require an FSA county committee to withhold taking or reverse 
any action that is not in accordance with this part.
    (d) No delegation in this part to an FSA State or county committee 
shall prevent the Deputy Administrator from determining any question 
arising under the program or from reversing or modifying any 
determination made by an FSA State or county committee.
    (e) The Deputy Administrator may authorize the State and county 
committees to waive or modify non-statutory deadlines or other program 
requirements in cases where lateness or failure to meet such other 
requirements does not adversely affect the operation of the program.


Sec. 1480.3  Definitions.

    The definitions and program parameters set out in this section 
shall be applicable for all purposes of administering the 2000-Crop 
Disaster Program provided for in this part. The terms defined in part 
718 of this title and 1400 of this chapter shall also be applicable, 
except where those definitions conflict with the definitions set forth 
in this section. The definitions follow:
    Actual production means the total quantity of the crop appraised, 
harvested or that could have been harvested as determined by the FSA 
State or county committee in accordance with instructions issued by the 
Deputy Administrator.
    Additional coverage means with respect to insurance plans of crop 
insurance providing a level of coverage equal to or greater than 65 
percent of the approved yield indemnified at 100 percent of the 
expected market price, or a comparable coverage as established by FCIC.
    Administrative fee means an amount the producer must pay for 
catastrophic risk protection, limited, and additional coverage crop 
insurance policies for each crop and crop year.
    Appraised production means production determined by FSA, or a 
company reinsured by FCIC, that was unharvested but which was 
determined to reflect the crop's yield potential at the time of 
appraisal.
    Approved yield means the amount of production per acre, computed in 
accordance with FCIC's Actual Production History Program (7 CFR part 
400, subpart G) or for crops not included under 7 CFR part 400, subpart 
G, the yield used to determine the guarantee. For crops covered under 
the Noninsured Crop Disaster Assistance program, the approved yield is 
established according to part 1437 of this chapter. Only the approved 
yields based on production evidence submitted to FSA prior to the 2000 
Act will be used for purposes of the 2000 CDP. Other yields may be 
assigned when an eligible approved yield is not available.
    Aquaculture means the reproduction and rearing of aquatic species 
in controlled or selected environments, including, but not limited to, 
ocean ranching (except private ocean ranching of Pacific salmon for 
profit in those States where such ranching is prohibited by law).
    Aquaculture facility means any land or structure including, but not 
limited to, a laboratory, hatchery, rearing pond, raceway, pen, 
incubator, or other equipment used in aquaculture.
    Aquacultural species means any aquacultural species as defined in 
part 1437 of this chapter.
    Average market price means the price or dollar equivalent on an 
appropriate basis for an eligible crop established by CCC for 
determining payment amounts. Such price will be based on the harvest 
basis without the inclusion of transportation, storage, processing, 
packing, marketing, or other post-harvesting expenses and will be based 
on historical data.
    Catastrophic risk protection means the minimum level of coverage 
offered by FCIC.
    Catastrophic Risk Protection Endorsement means the relevant part of 
the Federal crop insurance policy that contains provisions of insurance 
that are specific to catastrophic risk protection.
    CCC means the Commodity Credit Corporation.
    Control county means: for a producer with farming interests in only 
one county, the county FSA office in which the producer's farm(s) is 
administratively located; for a producer with farming interests that 
are administratively located in more than one county FSA office, the 
county FSA office designated by FSA to control the payments received by 
the producer.
    County committee means the FSA county committee.
    Crop insurance means an insurance policy reinsured by the Federal 
Crop Insurance Corporation under the provisions of the Federal Crop 
Insurance Act, as amended.
    Crop year means: for insured and uninsured crops, the crop year as 
defined according to the applicable crop insurance policy; and for 
noninsurable crops, the year harvest normally begins for the crop, 
except the crop year for all aquacultural species and nursery crops 
shall mean the period from October 1 through the following September 
30, and the crop year for purposes of calculating honey losses shall be 
the period running from January 1 through the following December 31.
    Disaster means damaging weather, including drought, excessive 
moisture, hail, freeze, tornado, hurricane, typhoon, excessive wind, 
excessive heat, weather-related saltwater intrusion, weather-related 
irrigation water rationing, and earthquake and volcano eruptions, or 
any combination thereof. Disaster includes a related condition that 
occurs as a result of the damaging weather and exacerbates the

[[Page 15981]]

condition of the crop, such as disease and insect infestation.
    Eligible crop means a crop insured by FCIC as defined in part 400 
of this title, or included under the non-insured crop disaster 
assistance program (NAP) as defined under part 1437 of this chapter. 
Losses of livestock and livestock related losses are not compensable 
under this part but may, depending on the circumstances, be compensable 
under part 1439 of this chapter.
    End use means the purpose for which the harvested crop is used, 
such as grain, hay or seed.
    Expected market price (price election) means the price per unit of 
production (or other basis as determined by FCIC) anticipated during 
the period the insured crop normally is marketed by producers. This 
price will be set by FCIC before the sales closing date for the crop. 
The expected market price may be less than the actual price paid by 
buyers if such price typically includes remuneration for significant 
amounts of post-production expenses such as conditioning, culling, 
sorting, packing, etc.
    Expected production means, for an agricultural unit, the historic 
yield multiplied by the number of planted or prevented acres of the 
crop for the unit.
    FCIC means the Federal Crop Insurance Corporation, a wholly owned 
Government Corporation within USDA.
    Final planting date means the date established by RMA for insured 
and uninsured crops by which the crop must be initially planted in 
order to be insured for the full production guarantee or amount of 
insurance per acre. For noninsurable crops, the final planting date is 
the end of the planting period for the crop as determined by CCC.
    Flood prevention means with respect to aquacultural species, 
placing the aquacultural facility in an area not prone to flood; in the 
case of raceways, providing devices or structures designed for the 
control of water level; and for nursery crops, placing containerized 
stock in a raised area above expected flood level and providing 
draining facilities, such as drainage ditches or tile, gravel, cinder 
or sand base.
    FSA means the Farm Service Agency.
    Good nursery growing practices means utilizing flood prevention, 
growing media, fertilization to obtain expected production results, 
irrigation, insect and disease control, weed, rodent and wildlife 
control, and over winterization storage facilities.
    Growing media means:
    (1) For aquacultural species, media that provides nutrients 
necessary for the production of the aquacultural species and protects 
the aquacultural species from harmful species or chemicals; and
    (2) For nursery crops, media designed to prevent ``root rot'' and 
other media-related problems through a well-drained media with a 
minimum 20 percent air pore space and pH adjustment for the type of 
plant produced.
    Harvested means: For insured and uninsured crops, ``harvested'' as 
defined according to the applicable crop insurance policy; for 
noninsurable single harvest crops, that a crop has been removed from 
the field, either by hand or mechanically, or by grazing of livestock; 
for noninsurable crops with potential multiple harvests in 1 year or 
harvested over multiple years, that the producer has, by hand or 
mechanically, removed at least one mature crop from the field during 
the crop year; and for mechanically harvested noninsurable crops, that 
the crop has been removed from the field and placed in a truck or other 
conveyance, except hay is considered harvested when in the bale, 
whether removed from the field or not. Grazed land will not be 
considered harvested for the purpose of determining an unharvested or 
prevented planting payment factor.
    Historic yield means, for a unit, the higher of the county average 
yield or the producer's approved yield.
    Insurance is available means when crop information is contained in 
RMA's county actuarial documents for a particular crop and a policy can 
be obtained through the RMA system, except if the Group Risk Plan or 
Adjusted Gross Revenue Plan of crop insurance was the only plan of 
insurance available for the crop in the county in the applicable crop 
year, insurance is considered not available for that crop.
    Insured crops means those crops covered by crop insurance pursuant 
to 7 CFR chapter IV and for which the producer purchased either the 
catastrophic or buy-up level of crop insurance so available.
    Limited coverage means plans of crop insurance offering coverage 
that is equal to or greater than 50 percent of the approved yield 
indemnified at 100 percent of the expected market price, or a 
comparable coverage as established by FCIC, but less than 65 percent of 
the approved yield indemnified at 100 percent of the expected market 
price, or a comparable coverage as established by FCIC.
    Maximum loss level means the maximum level of crop loss to be 
applied to a producer without acceptable production records. Loss 
levels are expressed in either a percent of loss or yield per acre, and 
should reflect the amount of production that a producer should have 
made considering the eligible disaster conditions in the area or 
county, as determined by the county committee in accordance with 
instructions issued by the Deputy Administrator.
    Multi-use crop means a crop intended for more than one end use 
during the calendar year such as grass harvested for seed, hay, and/or 
grazing.
    Multiple planting means the planting for harvest of the same crop 
in more than one planting period in a crop year on different acreage.
    Multiple-cropping means the planting of two or more different crops 
on the same acreage for harvest within the same crop year.
    NASS means the National Agricultural Statistics Service.
    Noninsurable crops means those crops for which crop insurance was 
not available.
    Normal mortality means the percentage of dead aquacultural species 
that would normally occur during the crop year.
    Pass-through funds means revenue that goes through, but does not 
remain in, a person's account, such as money collected by an auction 
house or consignment business that is subsequently paid to the sellers 
or consignors, less a commission withheld by the auction house.
    Person means person as defined in part 1400 of this chapter, and 
all rules with respect to the determination of a person found in that 
part shall be applicable to this part. However, the determinations made 
in this part in accordance with 7 CFR part 1400, subpart B, Person 
Determinations, shall also take into account any affiliation with any 
entity in which an individual or entity has an interest, irrespective 
of whether or not such entities are considered to be engaged in 
farming.
    Planted acreage means land in which seed, plants, or trees have 
been placed, appropriate for the crop and planting method, at a correct 
depth, into a seedbed that has been properly prepared for the planting 
method and production practice normal to the area as determined by the 
county committee.
    Production means quantity of the crop or commodity produced 
expressed in a specific unit of measure such as bushels, pounds, etc.
    Rate means price per unit of the crop or commodity.
    Related condition means with respect to disaster, a condition that 
causes deterioration of a crop such as insect infestation, plant 
disease, or aflatoxin that is accelerated or exacerbated as a result of 
damaging weather as

[[Page 15982]]

determined in accordance with instructions issued by the Deputy 
Administrator.
    Reliable production records means evidence provided by the producer 
that is used to substantiate the amount of production reported when 
verifiable records are not available, including copies of receipts, 
ledgers of income, income statements of deposit slips, register tapes, 
invoices for custom harvesting, and records to verify production costs, 
contemporaneous measurements, truck scale tickets, and contemporaneous 
diaries that are determined acceptable by the county committee.
    Repeat crop means with respect to a producer's production, a 
commodity that is planted or prevented from being planted in more than 
one planting period on the same acreage in the same crop year.
    RMA means the Risk Management Agency.
    Salvage value means the dollar amount or equivalent for the 
quantity of the commodity that cannot be marketed or sold in any 
recognized market for the crop.
    Secondary use means the harvesting of a crop for a use other than 
the intended use, except for crops with intended use of grain, but 
harvested as silage, ensilage, cobbage, hay, cracked, rolled, or 
crimped.
    Secondary use value means the value determined by multiplying the 
quantity of secondary use times the CCC-established price for this use.
    Secretary means the Secretary of the United States Department of 
Agriculture.
    Uninsured crops means those crops for which Federal crop insurance 
was available, but the producer did not purchase insurance.
    Unit means, unless otherwise determined by the Deputy 
Administrator, basic unit as described in part 457 of this title that, 
for ornamental nursery production, shall include all eligible plant 
species and sizes.
    Unit of measure means:
    (1) For all insured and uninsured crops, the FCIC-established unit 
of measure;
    (2) For all noninsurable crops, if available, the established unit 
of measure used for the 1998 or 1999 Noninsured Crop Assistance Program 
price and yield;
    (3) For aquacultural species, a standard unit of measure such as 
gallons, pounds, inches or pieces, established by the State committee 
for all aquacultural species or varieties;
    (4) For turfgrass sod, a square yard;
    (5) For maple sap, a gallon; and
    (6) For all other crops, the smallest unit of measure that lends 
itself to the greatest level of accuracy with minimal use of fractions, 
as determined by the State committee.
    United States means all 50 States of the United States, the 
Commonwealth of Puerto Rico, the Virgin Islands of the United States, 
and to the extent the Deputy Administrator determines it to be feasible 
and appropriate Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands and the former Trust Territory of the Pacific Islands, 
which include Palau, Federated States of Micronesia and the Marshall 
Islands.
    USDA means United States Department of Agriculture.
    Value loss crop will have the meaning assigned in part 1437 of this 
chapter.
    Verifiable production records means evidence that is used to 
substantiate the amount of production reported and that can be verified 
by CCC through an independent source.
    Yield means unit of production, measured in bushels, pounds, etc., 
per area of consideration, usually measured in acres.


Sec. 1480.4  Producer eligibility.

    (a) Producers in the United States will be eligible to receive 
disaster benefits under this part only if they have suffered 2000-crop 
losses of eligible crops as a result of a disaster or related 
condition, or as further specified in this part.
    (b) Payments may be made for losses suffered by an eligible 
producer who is now deceased or is a dissolved entity if a 
representative who currently has authority to enter into a contract for 
the producer signs the application for payment. Proof of authority to 
sign for the deceased producer or dissolved entity must be provided. If 
a producer is now a dissolved general partnership or joint venture, all 
members of the general partnership or joint venture at the time of 
dissolution or their duly authorized representatives must sign the 
application for payment.
    (c) As a condition to receive benefits under this part, a producer 
must have been in compliance with the Highly Erodible Land Conservation 
and Wetland Conservation provisions of 7 CFR part 12, for the 2000 crop 
year and must not otherwise be barred from receiving benefits under 7 
CFR part 12 or any other provision of law.


Sec. 1480.5  Time for filing application.

    Applications for benefits under the 2000-Crop Disaster Program must 
be filed before the close of business on May 4, 2001, or such other 
date that may be announced by the Deputy Administrator, in the county 
FSA office serving the county where the producer's farm is located for 
administrative purposes.


Sec. 1480.6  Limitations on payments and other benefits.

    (a) A producer may receive disaster benefits on 2000 crop and other 
crop losses as specified under this part.
    (b) Payments will not be made under this part for grazing losses.
    (c) The Deputy Administrator may divide and classify crops based on 
loss susceptibility, yield, and other factors.
    (d) No person shall receive more than a total of $80,000 in 
disaster benefits under this part, unless otherwise specified.
    (e) No person shall receive disaster benefits under this part in an 
amount that exceeds the value of the expected production for the 
relevant period as determined by CCC.
    (f) A person who has a gross revenue in excess of $2.5 million for 
the preceding tax year shall not be eligible to receive disaster 
benefits under this part. Gross revenue includes the total income and 
total gross receipts of the person, before any reductions. Gross 
revenue shall not be adjusted, amended, discounted, netted or modified 
for any reason. No deductions for costs, expenses, or pass through 
funds will be deducted from any calculation of gross revenue. For 
purposes of making this determination, gross revenue means the total 
gross receipts received from farming, ranching and forestry operations 
if the person receives more than 50 percent of such person's gross 
income from farming or ranching; or the total gross receipts received 
from all sources if the person receives 50 percent or less of such 
person's gross receipts from farming, ranching and forestry.


Sec. 1480.7  Requirement to purchase crop insurance.

    (a) Except as provided further in this section, any producer who 
elected not to purchase crop insurance on an insurable 2000 crop for 
which the producer receives crop loss assistance under this part must 
purchase crop insurance on that crop for the 2001 and 2002 crop years.
    (b) If, at the time the producer applies for the 2000 CDP the sales 
closing date for 2001 insurable crops for which the producer sought 
benefits under the 2000 CDP has passed, the producer must purchase crop 
insurance for the 2002 crop, but is excused from purchasing insurance 
for those 2001 crops.
    (c) If any producer fails to purchase crop insurance as required in

[[Page 15983]]

paragraphs (a) or (b) of this section, the producer will be required to 
refund all 2000 CDP benefits received, or such lesser amount as 
determined appropriate to the circumstances by the Deputy 
Administrator.


Sec. 1480.8  Miscellaneous provisions.

    (a) Disaster benefits under this part are not subject to 
administrative offset provided for in section 842 of the 2001 Act 
(Public Law 106-387, 114 Stat. 1549).
    (b) A person shall be ineligible to receive disaster assistance 
under this part if it is determined by the State or county committee or 
an official of FSA that such person has:
    (1) Adopted any scheme or other device that tends to defeat the 
purpose of a program operated under this part;
    (2) Made any fraudulent representation with respect to such 
program; or
    (3) Misrepresented any fact affecting a program determination.
    (c) All persons with a financial interest in the operation 
receiving benefits under this part shall be jointly and severally 
liable for any refund, including related charges, which is determined 
to be due CCC for any reason under this part.
    (d) In the event that any request for assistance or payment under 
this part was established as result of erroneous information or a 
miscalculation, the assistance or payment shall be recalculated and any 
excess refunded with applicable interest.
    (e) The liability of any person for any penalty under this part or 
for any refund to CCC or related charge arising in connection therewith 
shall be in addition to any other liability of such person under any 
civil or criminal fraud statute or any other provision of law 
including, but not limited to: 18 U.S.C. 286, 287, 371, 641, 651, 1001 
and 1014; 15 U.S.C. 714m; and 31 U.S.C. 3729.
    (f) Any person who is dissatisfied with a determination made with 
respect to this part may make a request for reconsideration or appeal 
of such determination in accordance with the regulations set forth at 
parts 11 and 780 of this title.
    (g) Any payment or portion thereof to any person shall be made 
without regard to questions of title under State law and without regard 
to any claim or lien against the crop, or proceeds thereof.
    (h) For the purposes of 28 U.S.C. 3201(e), the Secretary hereby 
waives the restriction on receipt of funds or benefits under this 
program but only as to beneficiaries who as a condition of such waiver 
agree to apply the 2000 CDP benefits to reduce the amount of the 
judgment lien.
    (i) The 2000 CDP is carried out using the funds, facilities and 
authorities of the CCC. As with all CCC programs, all authorities 
applicable to CCC and its activities apply to this program including, 
but not limited to the following: assessment of interest for refunds 
due CCC; late payment interest under part 1403 of this chapter; and 
withholding authorities. Additionally, producers may utilize other CCC 
authorities including but not limited to: assignments; and power of 
attorney forms.


Sec. 1480.9  Matters of general applicability.

    (a) For calculations of loss made with respect to insured crops, 
the producer's existing unit structure will be used as the basis for 
the calculation and may include optional units established in 
accordance with part 457 of this title. Insured crops may have basic 
units established if the existing unit structure is based on enterprise 
units or whole county units. For uninsured and noninsurable crops, 
basic units will be established for these purposes.
    (b) Loss payment rates and factors shall be established by the 
state committee based on procedures provided by the Deputy 
Administrator.
    (c) County average yield for loss calculations will be the simple 
average of the 1993 through 1997 official county yields established by 
FSA.
    (d) County committees will assign production when the county 
committee determines:
    (1) An acceptable appraisal or record of harvested production does 
not exist;
    (2) The loss is due to an ineligible cause of loss or practices 
that cause lower yields than those upon which the historic yield is 
based;
    (3) The producer has a contract providing a guaranteed payment for 
all or a portion of the crop; or
    (4) The crop is planted beyond the normal planting period for the 
crop.
    (e) The county committee shall establish a maximum loss level that 
should reflect the amount of production producers should have 
considering the eligible disaster conditions in the area or county for 
the same crop. The maximum loss level for the county shall be expressed 
as either a percent of loss or yield per acre. The maximum loss level 
will apply when:
    (1) Unharvested acreage has not been appraised by FSA, or a company 
reinsured by FCIC; or
    (2) Acceptable production records for harvested acres are not 
available from any source.
    (f) Assigned production for practices that result in lower yields 
than those for which the historic yield is based shall be established 
based on the acres found to have been subjected to those practices.
    (g) Assigned production for crops planted beyond the normal 
planting period for the crop shall be calculated according to the 
lateness of planting the crop. With the exception of replanted crops, 
if the crop is planted after the final planting date by:
    (1) 1 through 10 calendar days, the assigned production reduction 
will be based on one percent of the payment yield for each day 
involved;
    (2) 11 through 24 calendar days, the assigned production reduction 
will be based on 10 percent of the payment yield plus an additional two 
percent reduction of the payment yield for each days of days 11 through 
24 that are involved; and
    (3) 25 or more calendar days or a date from which the crop would 
not reasonably be expected to mature by harvest, the assigned 
production reduction will be based on 50 percent of the payment yield 
or such greater amount determined by the county committee to be 
appropriate.
    (h) Assigned production for producers with contracts to receive a 
guaranteed payment for production of an eligible crop will be 
established by the county committee by:
    (1) Determining the total amount of guaranteed payment for the 
unit;
    (2) Converting the guaranteed payment to guaranteed production by 
dividing the total amount of guaranteed payment by the approved county 
price for the crop or variety or such other factor deemed appropriate 
if otherwise the production would appear to be too high; and
    (3) Establishing the production for the unit as the greater of the 
actual net production for the unit or the guaranteed payment, or 
combination thereof if greater.


Sec. 1480.10  Eligible disaster conditions.

    (a) Except as provided in paragraph (c) of this section, this part 
applies to losses where the crop could not be planted or crop 
production, both in quantity and quality, was adversely affected by:
    (1) Damaging weather including drought, excessive moisture, hail, 
freeze, tornado, hurricane, typhoon, excessive wind, excessive heat or 
a combination thereof;
    (2) Damage from earthquake and volcano eruptions;
    (3) Insect infestation as a related condition to damaging weather;
    (4) Disease as a related condition to damaging weather;

[[Page 15984]]

    (5) Salt water intrusion of an irrigation supply;
    (6) Irrigation water rationing if proof is provided that water was 
rationed by a Government entity or water district;
    (7) Lack of water supply due to drought conditions for irrigated 
crops; or
    (8) Other causes or factors as determined by the Deputy 
Administrator.
    (b) Disaster benefits will not be available under this part if the 
crop could not be planted or crop production, both in quantity and 
quality, was adversely affected by:
    (1) Poor farming practices;
    (2) Poor management decisions; or
    (3) Drifting herbicides.
    (c) To the extent not otherwise compensated by USDA, 2000 CDP 
benefits will be made available under this part to also compensate:
    (1) Growers whose crops could not be sold due to Mexican fruit fly 
quarantines in San Diego and San Bernardino/Riverside counties in 
California since their imposition on November 16, 1999, and September 
10, 1999, respectively;
    (2) Growers in relation to the Secretary's ``Declaration of 
Extraordinary Emergency'' on March 2, 2000, regarding the plum pox 
virus;
    (3) Growers for 2000-crop losses due to Pierce's disease;
    (4) Growers for 2000-crop losses due to watermelon sudden wilt 
disease; and
    (5) Growers for 2000-crop losses incurred due to infestations of 
grasshoppers and Mormon crickets.
    (d) Losses for which compensation may be provided under paragraph 
(c) of this section will be compensated in the same manner, and subject 
to the same limitations as other general claims for crop losses under 
the 2000 CDP and shall be limited in scope to those claims that, as 
determined by the Deputy Administrator, are allowable under the 
provisions of paragraph (c) of this section and are consistent with the 
terms of the authorizing legislation. In handling such claims, and 
others, the Deputy Administrator may consult with other branches of the 
Department to determine the extent of losses and the effect of prior 
governmental action on marketing decisions made by the growers.


Sec. 1480.11  Qualifying 2000-crop losses.

    (a) To receive disaster benefits under this part, the county 
committee must determine that because of a disaster, the producer with 
respect to the 2000 crop year:
    (1) Was prevented from planting a crop;
    (2) Sustained a loss in excess of 35 percent of the expected 
production of a crop; or
    (3) Sustained a loss in excess of 35 percent of the value for value 
loss crops.
    (b) Calculation of benefits under this part shall not include 
losses:
    (1) That are the result of poor management decisions or poor 
farming practices as determined by the county committee on a case-by-
case basis;
    (2) That are the result of the failure of the producer to reseed or 
replant to the same crop in the county where it is customary to reseed 
or replant after a loss;
    (3) That are not as a result of a natural disaster, unless 
otherwise specified in Sec. 1480.10;
    (4) To crops not intended for harvest in crop year 2000;
    (5) To losses of by-products resulting from processing or 
harvesting a crop, such as cotton seed, peanut shells, wheat or oat 
straw;
    (6) To home gardens;
    (7) That are a result of water contained or released by any 
governmental, public, or private dam or reservoir project if an 
easement exists on the acreage affected for the containment or release 
of the water; or
    (8) If losses could be attributed to conditions occurring outside 
of the applicable crop year growing season.
    (c) Calculation of benefits under this part for ornamental nursery 
stock shall not include losses:
    (1) Caused by a failure of power supply or brownouts;
    (2) Caused by the inability to market nursery stock as a result of 
quarantine, boycott, or refusal of a buyer to accept production;
    (3) Caused by fire;
    (4) Affecting crops where weeds and other forms of undergrowth in 
the vicinity of the nursery stock that have not been controlled; or
    (5) Caused by the collapse or failure of buildings or structures.
    (d) Calculation of benefits under this part for honey where the 
honey production by colonies or bees was diminished, shall not include 
losses:
    (1) Where the inability to extract was due to the unavailability of 
equipment; the collapse or failure of equipment or apparatus used in 
the honey operation;
    (2) Resulting from improper storage of honey;
    (3) To honey production because of bee feeding;
    (4) Caused by the application of chemicals;
    (5) Caused by theft, fire, or vandalism;
    (6) Caused by the movement of bees by the producer or any other 
person;
    (7) Due to disease or pest infestation of the colonies; or
    (8) Loss calculations shall take into account other conditions and 
adjustments provided for in this part.


Sec. 1480.12  Rates and yields; calculating payments.

    (a) Payment rates for 2000 year crop losses shall be:
    (1) 65 percent of the maximum established RMA price for insured 
crops;
    (2) 65 percent of the State average price for noninsurable crops; 
and
    (3) 60 percent of the maximum established RMA price for uninsured 
crops.
    (b) Except as provided elsewhere in this part, disaster benefits 
under this part for losses to crops shall be made in an amount 
determined by multiplying the loss of production in excess of 35 
percent of the expected production by the applicable payment rate 
established according to paragraph (a) of this section.
    (c) Separate payment rates and yields for the same crop may be 
established by the county committee as authorized by the Deputy 
Administrator, when there is supporting data from NASS or other sources 
approved by CCC that show there is a significant difference in yield or 
value based on a distinct and separate end use of the crop. In spite of 
differences in yield or values, separate rates or yields shall not be 
established for crops with different cultural practices, such as 
organically or hydroponically grown. Production from all end uses of a 
multi-use crop or all secondary uses for multiple market crops will be 
calculated separately and summarized together.
    (d) Each eligible producer's share of a disaster payment shall be 
based on the producer's share of the crop or crop proceeds, or, if no 
crop was produced, the share the producer would have received if the 
crop had been produced.
    (e) When calculating a payment for a unit loss:
    (1) an unharvested payment factor shall be applied to crop acreage 
planted but not harvested;
    (2) a prevented planting factor shall be applied to any prevented 
planted acreage eligible for payment; and
    (3) unharvested payment factors may be adjusted if costs normally 
associated with growing the crop are not incurred.
    (f) All payments made under this part shall conform to the 
requirements and limitations of this part and the Deputy Administrator 
may provide additional conditions or requirements as needed or 
appropriate to other wise serve the goals of the program. Nothing in 
this section shall prevent the Deputy Administrator from allowing a 
payment despite the

[[Page 15985]]

receipt of the producer of a crop insurance payment, or a payment under 
the Noninsured Crop Disaster Assistance Program operated under part 
1437 of this chapter, as determined to be appropriate.


Sec. 1480.13  Production losses, producer responsibility.

    (a) Where available and determined accurate, RMA loss records will 
be used for insured crops.
    (b) If RMA loss records are not available, or if the FSA county 
committee determines the RMA loss records are inaccurate or incomplete, 
or if the FSA county committee makes inquiry, producers are responsible 
for:
    (1) Retaining or providing, when required, the best verifiable or 
reliable production records available for the crop;
    (2) Summarizing all the production evidence;
    (3) Accounting for the total amount of unit production for the 
crop, whether or not records reflect this production;
    (4) Providing the information in a manner that can be easily 
understood by the county committee; and (5) Providing supporting 
documentation if the county committee has reason to question the 
disaster event or that all production has been accounted for.
    (c) In determining production under this section the producer must 
supply verifiable or reliable production records to substantiate 
production to the county committee. If the eligible crop was sold or 
otherwise disposed of through commercial channels, production records 
include: commercial receipts; settlement sheets; warehouse ledger 
sheets; or load summaries; appraisal information from a loss adjuster 
acceptable to CCC. If the eligible crop was farm-stored, sold, fed to 
livestock, or disposed of in means other than commercial channels, 
production records for these purposes include: truck scale tickets; 
appraisal information from a loss adjuster acceptable to CCC; 
contemporaneous diaries; or other documentary evidence, such as 
contemporaneous measurements.
    (d) Producers must provide all records for any production of a crop 
that is grown with an arrangement, agreement, or contract for 
guaranteed payment. The failure to report the existence of any 
guaranteed contract or similar arrangement or agreement shall be 
considered as providing false information to CCC and will render 
producers ineligible for 2000 CDP benefits, and may lead to other civil 
or criminal sanctions.


Sec. 1480.14  Determination of production.

    (a) Production under this part shall include all harvested 
production, unharvested appraised production and assigned production 
for the total planted acreage of the crop on the unit.
    (b) The harvested production of eligible crop acreage harvested 
more than once in a crop year shall include the total harvested 
production from all these harvests.
    (c) If a crop is appraised and subsequently harvested as the 
intended use, the actual harvested production shall be used to 
determine benefits.
    (d) For all crops eligible for loan deficiency payments or 
marketing assistance loans with an intended use of grain but harvested 
as silage, ensilage, cobbage, hay, cracked, rolled, or crimped, 
production will be adjusted based on a whole grain equivalent as 
established by CCC.
    (e) For crops with an established yield and market price for 
multiple intended uses, a value will be calculated for each use with:
    (1) The intended use or uses for disaster purposes based on 
historical production and acreage evidence provided by the producer; 
and
    (2) The eligible acres for each use and the calculation of the 
disaster payment will be determined by the county committee according 
to instructions issued by the Deputy Administrator.
    (f) For crops sold in a market that is not a recognized market for 
the crop with no established county average yield and market price, 60 
percent of the salvage value received will be deducted from the 
disaster payment.
    (g) If a producer has an arrangement, agreement, or contract for 
guaranteed payment for production (as opposed to production based on 
delivery), the production shall be the greater of the actual production 
or the guaranteed payment converted to production as determined by CCC.
    (h) Production that is commingled between units before it was a 
matter or combination of record and cannot be separated by using 
records or other means acceptable to CCC shall be prorated to each 
respective unit by CCC. Commingled production may be attributed to the 
applicable unit, if the producer made the unit production of a 
commodity a matter of record before commingling and does any of the 
following, as applicable:
    (1) Provides copies of verifiable documents showing that production 
of the commodity was purchased, acquired, or otherwise obtained from 
beyond the unit;
    (2) Had the production measured in a manner acceptable to the 
county committee; or
    (3) Had the current year's production appraised in a manner 
acceptable to the county committee.
    (i) The county committee shall assign production for the unit when 
the county committee determines that:
    (1) The producer has failed to provide adequate and acceptable 
production records;
    (2) The loss to the crop is because of a disaster condition not 
covered by this part, or circumstances other than natural disaster, and 
there has not otherwise been an accounting of this ineligible cause of 
loss;
    (3) The producer carries out a practice, such as multiple cropping, 
that generally results in lower yields than the established historic 
yields;
    (4) The producer has a contract to receive a guaranteed payment for 
all or a portion of the crop;
    (5) A crop is late-planted;
    (6) Unharvested acreage was not timely appraised; or
    (7) Other appropriate causes exist for such assignment as 
determined by the Deputy Administrator.
    (j) For sugarcane, the quantity of sugar produced from such crop 
shall exclude acreage harvested for seed.
    (k) For peanuts, the actual production shall be all peanuts 
harvested for nuts regardless of their disposition or use as adjusted 
for low quality.
    (l) For tobacco, except flue-cured and burley, the actual 
production shall be the sum of the tobacco: marketed or available to be 
marketed; destroyed after harvest; and produced but unharvested, as 
determined by an appraisal. For flue-cured and burley tobacco, the 
actual production shall be the sum of the tobacco: marketed, regardless 
of whether the tobacco was produced in the current crop year or a prior 
crop year; on hand; destroyed after harvest; and produced but 
unharvested, as determined by an appraisal.


Sec. 1480.15  Calculation of acreage for crop losses other than 
prevented planted.

    (a) Acreage shall be calculated using the number of acres shown to 
have been planted to a crop.
    (b) In cases where there is a repeat crop or a multiple planted 
crop in more than one planting period, or if there is multiple cropped 
acreage meeting criteria established in paragraph (c) or (d) of this 
section, each of these crops may be considered separate crops for 2000 
CDP if the county committee determines that all of the following 
conditions are met:

[[Page 15986]]

    (1) Both the initial and subsequent planted crops were planted with 
an intent to harvest;
    (2) Both the initial and subsequent planted crops were planted 
within the normal planting period for that crop;
    (3) Both the initial and subsequent planted crops meet all other 
eligibility provisions of this part including good farming practices; 
and
    (4) Each planting could reach maturity if each planting was 
harvested or would have been harvested.
    (c) In cases where there is multiple cropped acreage, each crop may 
be eligible for disaster assistance separately if both of the following 
conditions are met:
    (1) the specific crops are approved by the FSA State Committee as 
eligible multiple-cropping practices according to procedures approved 
by the Deputy Administrator; and
    (2) the farm containing the multiple cropped acreage has a history 
of multiple cropping based on timely filed crop acreage reports.
    (d) Producers with multiple cropped acreage not meeting the 
criteria in paragraph (c) of this section may be eligible for disaster 
assistance on more than one crop if the producer has verifiable records 
establishing a history of carrying out a successful multiple cropping 
practice on the specific crops for which assistance is requested. All 
required records acceptable to CCC as determined by the Deputy 
Administrator must be provided before payments are issued.
    (e) Producers with multiple cropped acreage not meeting the 
criteria in paragraph (c) or (d) of this section must select the crop 
for which assistance will be requested. If more than one producer has 
an interest in the multiple cropped acreage, all producers must agree 
to the crop designated for payment by the end of the application period 
or no payment will be approved for any crop on the multiple cropped 
acreage.
    (f) Benefits under this part shall apply to irrigated crops where 
the acreage was affected by a lack of water or contamination by 
saltwater intrusion of an irrigation supply resulting from drought 
conditions.


Sec. 1480.16  Calculation of prevented planted acreage.

    (a) When determining losses under this part, prevented-planted 
acreage will be considered separately from planted acreage of the same 
crop.
    (b) Except as provided in paragraph (c) of this section, for 
insured crops, disaster payments under this part for prevented-planted 
acreage shall not be made unless RMA documentation indicates that the 
eligible producer received a prevented planting payment under the RMA-
administered program.
    (c) For insured crops, disaster payments under this part for 
prevented-planted acreage will be made available for the following 
crops for which prevented planting coverage was not available and for 
which the county committee will make an eligibility determination 
according to paragraph (d) of this section: peppers; sweet corn (fresh 
market); tomatoes (fresh market); tomatoes (processing).
    (d) The producer must prove, to the satisfaction of the county 
committee, an intent to plant the crop and that such crop could not be 
planted because of an eligible disaster. The county committee must be 
able to determine the producer was prevented from planting the crop by 
an eligible disaster that both:
    (1) Prevented most producers from planting on acreage with similar 
characteristics in the surrounding area; and
    (2) Unless otherwise approved by the Deputy Administrator, began no 
earlier than the planting season for that crop.
    (e) Prevented planted disaster benefits under this part shall not 
apply to:
    (1) Aquaculture, including ornamental fish; perennial forage crops 
grown for hay, seed, or grazing; honey; maple sap; millet; mint; 
nursery crops; cultivated wild rice; fresh market beans; cabbage, 
pumpkins, sweet potatoes; winter squash; tobacco, turfgrass sod and 
vine crops;
    (2) Uninsured crop acreage that is unclassified for insurance 
purposes;
    (3) Acreage that is used for conservation purposes or intended to 
be left unplanted under any USDA program;
    (4) Any acreage on which a crop other than a cover crop was 
harvested, hayed, or grazed during the crop year;
    (5) Any acreage for which a cash lease payment is received for the 
use of the acreage the same crop year unless the county committee 
determines the lease was for haying and grazing rights only and was not 
a lease for use of the land;
    (6) Acreage for which planting history or conservation plans 
indicate that the acreage would have remained fallow for crop rotation 
purposes;
    (7) Acreage for which the producer or any other person received a 
prevented planted payment for any crop for the same acreage, excluding 
share arrangements;
    (8) Acreage for which the producer cannot provide proof to the 
county committee that inputs such as seed, chemicals, and fertilizer 
were available to plant and produce a crop with the expectation of at 
least producing a normal yield; and
    (9) Any other acreage for which, for whatever reason, there is 
cause to question whether the crop could have been planted for a 
successful and timely harvest, or for which prevented planting credit 
is not allowed under the provisions of this part.
    (f) Prevented planting payments are not provided on acreage that 
had either a previous or subsequent crop planted on the acreage, unless 
the county committee determines that all of the following conditions 
are met:
    (1) There is an established practice of planting two or more crops 
for harvest on the same acreage in the same crop year;
    (2) Both crops could have reached maturity if each planting was 
harvested or would have been harvested;
    (3) Both the initial and subsequent planted crops were planted or 
prevented-planting within the normal planting period for that crop;
    (4) Both the initial and subsequent planted crops meet all other 
eligibility provisions of this part including good farming practices; 
and
    (5) The specific crops meet the eligibility criteria for a separate 
crop designation as a repeat or approved multiple cropping practice set 
out in Sec. 1480.15.
    (g) Disaster benefits under this part shall not apply to crops 
where the prevented-planted acreage was affected by a disaster that was 
caused by drought unless on the final planting date or the late 
planting period for non-irrigated acreage, the area that is prevented 
from being planted has insufficient soil moisture for germination of 
seed and progress toward crop maturity because of a prolonged period of 
dry weather. Prolonged precipitation deficiencies must be verifiable 
using information collected by sources whose business it is to record 
and study the weather, including but not limited to the local weather 
reporting stations of the National Weather Service.
    (h) Prevented planting benefits under this part shall apply to 
irrigated crops where the acreage was prevented from being planted due 
to a lack of water resulting from drought conditions or contamination 
by saltwater intrusion of an irrigation supply resulting from drought 
conditions.
    (i) For uninsured or noninsurable crops and the insured crops 
listed in paragraph (c) of this section, for prevented planting 
purposes:
    (1) The maximum prevented-planted acreage for all crops cannot 
exceed the number of acres of cropland in the unit

[[Page 15987]]

for the crop year and will be reduced by the number of acres planted in 
the unit;
    (2) The maximum prevented planted acreage for a crop cannot exceed 
the number of acres planted by the producer, or that was prevented from 
being planted, to the crop in any 1 of the 1996 through 1999 crop years 
as determined by the county committee;
    (3) For crops grown under a contract specifying the number of acres 
contracted, the prevented-planted acreage is limited to the result of 
the number of acres specified in the contract minus planted acreage;
    (4) For each crop type or variety for which separate prices or 
yields are sought for prevented-planted acreage, the producer must 
provide evidence that the claimed prevented-planted acres were 
successfully planted in at least 1 of the most recent 4 crop years; and
    (5) The prevented planted acreage must be at least 20 acres or 20 
percent of the intended planted acreage in the unit, whichever is less.
    (j) Notwithstanding the provisions of part 718 of this chapter, 
late-filed crop acreage reports for previous years shall not be 
accepted for CDP purposes.


Sec. 1480.17  Quantity adjustments for diminished quality for certain 
crops.

    (a) For the crops identified in paragraph (b) of this section, 
subject to the provisions of this section and part, the quantity of 
production of crops of the producer shall be adjusted to reflect 
diminished quality resulting from the disaster.
    (b) Crops eligible for quality adjustments to production are 
limited to:
    (1) Barley; canola; corn; cotton; crambe, flaxseed; grain sorghum; 
mustard seed; oats; peanuts; rapeseed; rice; safflower; soybeans; sugar 
beets; sunflower-oil; sunflower-seed; tobacco; wheat; and
    (2) Crops with multiple market uses such as fresh, processed or 
juice, as supported by NASS data or other data determined acceptable.
    (c) The producer must submit documentation for determining the 
grade and other discount factors that were applied to the crop.
    (d) Quality adjustments will be applied after production has been 
adjusted to standard moisture, when applicable.
    (e) For all crops listed in paragraph (b)(1) of this section, 
except for cotton, if a quality adjustment has been made for multi-
peril crop insurance purposes, an additional adjustment will not be 
made.
    (f) Quality adjustments for crops, other than cotton, peanuts, 
sugar beets and tobacco, listed in paragraph (b)(1) of this section may 
be made by applying an adjustment factor based on dividing the Federal 
marketing assistance loan rate applicable to the crop and producer 
determined according to part 1421 of this chapter by the unadjusted 
county marketing assistance loan rate for the crop. For crops that 
receive a grade of ``sample'' and are marketed through normal channels, 
production will be adjusted as determined by CCC. County committees 
may, with state committee concurrence, establish county average quality 
adjustment factors.
    (g) Quality adjustments for cotton shall be based on the difference 
between:
    (1) The loan rate applicable to the crop and producer determined 
according to part 1427 of this chapter; and
    (2) The adjusted county loan rate. The adjusted county rate is the 
county loan rate adjusted for the 5-year county average historical 
quality premium or discount, as determined by CCC.
    (h) For quota and non-quota peanuts, quality adjustments shall be 
based on the difference between the actual sales price, or other 
proceeds, received and the National average support price by type of 
peanut for the applicable crop year.
    (i) Quality adjustments for sugar beets shall be based on sugar 
content. The 2000 actual production for the producer shall be adjusted 
upward or downward to account for sugar content as determined by CCC.
    (j) Quality adjustments for tobacco shall be based on the 
difference between the revenue received and the support price except 
that the market price may be used instead of the support price where 
market prices for the tobacco are normally in excess of the support 
price.
    (k) Quality adjustments for crops with multiple market uses such as 
fresh, processed and juice, shall be applied based on the difference 
between the producer's historical marketing percentage of each market 
use compared to the actual percentage for the 2000 crop year. These 
quality adjustments are built into the production loss determination. 
Production determinations from Federal crop insurance will not be used.
    (l) Except as determined by the Deputy Administrator, quality 
adjustments for aflatoxin shall be based on the aflatoxin level. The 
producer must provide the county committee with proof of a price 
reduction because of aflatoxin. The aflatoxin level must be 20 parts 
per billion or more before a quality adjustment will be made. The 
quality adjustment factor applied to affected production is .50 if the 
production is marketable. If the production is unmarketable due to 
aflatoxin levels of at least 20 parts per billion, production will be 
adjusted to zero. Any value received will be considered salvage.
    (m) Any quantity of the crop determined to be salvage will not be 
considered production. Salvage values shall be factored by 0.60 times 
the producer's share. This amount will be deducted from the disaster 
payment.
    (n) Quantity adjustments for diminished quality under this section 
will not be applied to crops that are, under Sec. 1480.18, value loss 
crops.
    (o) Quantity adjustments for diminished quality shall also not 
apply under this section to: hay, honey, maple sap, turfgrass sod, 
crops marketed for a use other than an intended use for which there is 
not an established county price or yield, or any other crop that the 
Deputy Administrator deems it appropriate to exclude.


Sec. 1480.18  Value loss crops.

    (a) Irrespective of any inconsistent provisions in other sections, 
the provisions of this section shall be applied to the following crops, 
which will be considered ``value loss crops'': ornamental nursery; 
Christmas trees; vegetable and root stock including ginseng root; 
aquaculture, including ornamental fish, and such other crops as may be 
determined appropriate for treatment as ``value loss crops.''
    (b) For crops specified in paragraph (a) of this section, disaster 
benefits under this part are calculated based on the loss of value at 
the time of disaster, as determined by CCC.
    (c) For aquaculture, disaster benefits under this part for 
aquacultural species are limited to those aquacultural species that 
were placed in the aquacultural facility by the producer. Disaster 
benefits under this part shall not be made available for aquacultural 
species that are growing naturally in the aquaculture facility. 
Disaster benefits under this part are limited to aquacultural species 
that were planted or seeded on property owned or leased by the producer 
where that land has readily identifiable boundaries, and over which the 
producer has total control of the waterbed and the ground under the 
waterbed. Producers who only have control of the waterbed or the ground 
under the waterbed but not both will not be eligible for disaster 
benefits under this part.
    (d) For ornamental nursery crops, disaster benefits under this part 
are limited to ornamental nursery crops that were grown in a container 
or controlled

[[Page 15988]]

environment for commercial sale on property owned or leased by the 
producer, and cared for and managed using good nursery growing 
practices. Indigenous crops are not eligible for benefits under this 
part.
    (e) For vegetable and root stock, disaster benefits under this part 
are limited to plants grown in a container or controlled environment 
for use as transplants or root stock by the producer for commercial 
sale or property owned or leased by the producer and managed using good 
rootstock or fruit and vegetable plant growing practices.
    (f) For ginseng, only ginseng that meets all the requirements of 
cultivated ginseng shall be considered as eligible for benefits under 
this part. Ginseng is defined as cultivated ginseng roots and seeds 
that meet the following requirements:
    (1) grown in raised beds above and away from wet and low areas 
protected from flood;
    (2) grown under man-made canopies that provide 75 to 80 percent 
shade coverage;
    (3) grown in well drained media with a pH adjustment of at least 
5.5 and which protects plants from disease; and
    (4) grown with sufficient fertility and weed control to obtain 
expected production results of ginseng root and seed.
    (g) Evidence of the above ginseng practice requirements must be 
provided by the producer if requested by the county committee. Any 
ginseng that is grown under cultivated practices or simulated wild or 
woodland conditions that do not meet these requirements are not 
eligible for disaster assistance under this part.
    (h) Because ginseng is a perennial crop, the producer must provide 
annual crop history to establish when the loss occurred and the extent 
of such loss. If the producer does not or is unable to provide annual 
records to establish the beginning inventory, before the loss, and 
ending inventory, after the loss, production shall be assigned by the 
county committee.
    (i) Aside from differences provided for in this section, all other 
conditions for eligibility contained in this part shall be applied to 
value loss crops.


Sec. 1480.19  Other special provisions for specialty crops.

    (a) For turfgrass sod, disaster benefits under this part are 
limited to turfgrass sod that would have matured and been harvested 
during 2000, when a disaster caused in excess of 35 percent of the 
expected production to die.
    (b) For honey, disaster benefits under this part are limited to 
table and non-table honey produced commercially for human consumption. 
For calculating benefits, all honey is considered a single crop, 
regardless of type or variety of floral source or intended use.
    (c) For maple sap, disaster benefits under this part are limited to 
maple sap produced on private property in a controlled environment by a 
commercial operator for sale as sap or syrup. The maple sap must be 
produced from trees that are: located on land the producer controls by 
ownership or lease; managed for production of maple sap; and are at 
least 30 years old and 12 inches in diameter.


Sec. 1480.20  Florida nursery crop losses.

    Notwithstanding any other provision of this part, 2000 CDP benefits 
shall be made available for losses due to disasters afflicting nursery 
crops in the State of Florida that occur, because of disaster during 
the period beginning on October 1, 2000, and ending on December 31, 
2000. Calculations of the amount of such losses shall be made 
independently of other losses of the producer, and such losses shall be 
subject to a separate limit on payment amounts as may otherwise apply. 
Any payment under this section for such losses shall for all purposes, 
present and future, be considered to be a 2000-crop payment, and such 
compensated losses shall be ineligible for any assistance that may 
become available for 2001 crop losses.


Sec. 1480.21  [Reserved]


Sec. 1480.22  Quality losses for 1999 and 2000 apples and potatoes.

    (a) Notwithstanding any other provisions of this part, $37,916,400 
of CCC funds shall be made available until expended to producers of 
1999 and 2000-crop apples and potatoes for quality losses due to 
fireblight or weather related disasters, including but not limited to 
hurricane or hail damage.
    (b) Applications for benefits under this section must be filed 
before the close of business on May 4, 2001, or such other date that 
may be announced by the Deputy Administrator, in the county FSA office 
serving the county where the producer's operation is located for 
administrative purposes.
    (c) Payments issued under this section will be made regardless of 
whether the crop was harvested and without regard to:
    (1) A per person limitation on payment amount; however, a national 
payment factor may be applicable to all payments under this section if 
requests for benefits exceed the $37,916,400;
    (2) Restriction for the person's gross revenue; or
    (3) Qualifying loss threshold.
    (d) All or part of the benefits under this section shall not be 
issued if the producer received compensation for the same quality loss 
under any other Federal program, other than the Federal Crop Insurance 
Program.
    (e) Unless determined by the Deputy Administrator, all 2000-crop 
potato and apple claims will be addressed first under this section and 
if, after the handling of those claims under this section, it appears 
that for an individual producer that the producer would have received a 
greater compensation had the claim been treated in the same manner as 
other crops under the general program provided for in this part, then 
the difference shall be paid using that additional authority.

[[Page 15989]]

Sec. 1480.23  Quality losses for 2000 crops.

    (a) Subject to other provisions of this part, CCC funds shall be 
made available for assistance to producers determined eligible under 
this section for crop quality losses greater than 20 percent of the 
value that the affected production of the crop would have had if the 
crop had not suffered a quality loss. The per unit amount of a quality 
loss for a producer's crop shall be equal to the difference between:
    (1) the unit market value of the units of the crop affected by the 
quality loss had the crop not suffered a quality loss; and
    (2) the per unit market value of the units of the crop affected by 
the quality loss.
    (b) The amount of payment for a quality loss shall be equal to 65 
percent of the quantity of the crop affected by the quality loss, 
multiplied by 65 percent of the per unit quality loss for the crop as 
determined by the Deputy Administrator.
    (c) This section will apply to all crops eligible for 2000-crop 
disaster assistance under this part including, but not limited to, 
forage crops and pecans, and will apply to crop production that has a 
reduced economic value due to the reduction in quality.
    (d) Except as provided in Sec. 1480.22(e), or as determined by the 
Deputy Administrator, producers may not be compensated under this 
section to the extent that such producers have received a payment under 
Sec. 1480.22 or received an adjustment on payment attributable in whole 
or in part to diminished quality under Secs. 1480.17, 1480.18, 1480.19, 
or other provisions of this part.

    Dated: March 15, 2001.
James R. Little,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 01-6987 Filed 3-19-01; 10:25 am]
BILLING CODE 3410-05-P