[Federal Register Volume 68, Number 34 (Thursday, February 20, 2003)]
[Notices]
[Pages 8195-8196]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4082]


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 Notices
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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  Federal Register / Vol. 68, No. 34 / Thursday, February 20, 2003 / 
Notices  

[[Page 8195]]



DEPARTMENT OF AGRICULTURE

Commission on the Application of Payment Limitations for 
Agriculture


Payment Limitations

AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Notice and request for comments.

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SUMMARY: The Commission on the Application of Payment Limitations for 
Agriculture (Commission) was mandated by section 1605 of the Farm 
Security and Rural Investment Act of 2002 (the 2002 Act), Public Law 
107-171. The Farm Service Agency (FSA) provides administrative and 
financial support for the Commission, using Commodity Credit 
Corporation (CCC) funds. The Commission will study the effects of 
further limitations on the receipt of direct payments, counter-cyclical 
payments, loan deficiency payments and marketing loan gains by 
individuals and other entities. The study is to be transmitted to the 
President, the Committee on Agriculture, Nutrition and Forestry of the 
Senate, and the Committee on Agriculture of the House of 
Representatives. The Commission is also authorized to make 
recommendations it deems appropriate, which may include the feasibility 
of improving the application and effectiveness of payment limitations.
    The Commission held its first meeting on January 23 and 24, 2003, 
in Washington, D.C. The Commission concluded that public input would be 
helpful in conducting its assessments of payment limitations. This 
notice provides the public the opportunity to comment on key issues 
that the Commission expects to address in its study.

DATES: Comments must be received in writing by March 24, 2003.

ADDRESSES: Send comments in writing, by mail, to Payment Limit 
Commission Comments, USDA/FSA/EPAS, Stop 0508, 1400 Independence Ave., 
SW, Washington, DC 20250-0508, or by email to 
[email protected]. This notice may also be accessed via 
the Internet through the FSA homepage, at http://www.fsa.usda.gov. All 
comments, including names and addresses when provided, are placed in 
the record and are available for public inspection.

FOR FURTHER INFORMATION CONTACT: John Jinkins, USDA/FSA/EPAS, Stop 
0508, 1400 Independence Ave., SW., Washington, DC 20250-0508; 
telephone: (202) 720-2100; fax: (202) 690-2186; submit e-mail to: 
[email protected]. Subject: Payment Limits.

SUPPLEMENTARY INFORMATION:

General Information about the Commission

    The 2002 Act directed that the Commission consist of three members 
appointed by the Secretary of Agriculture; three members appointed by 
the Committee on Agriculture, Nutrition, and Forestry of the Senate; 
three members appointed by the Committee on Agriculture of the House of 
Representatives; and the USDA Chief Economist. The Secretary of 
Agriculture designated the USDA Chief Economist to serve as Commission 
Chairperson. The 2002 Act directs the Commission to conduct a study on 
the effects of further payment limitations on the receipt of direct 
payments, counter-cyclical payments and marketing loan gains and loan 
deficiency payments. The study is to be transmitted to the President, 
the Committee on Agriculture, Nutrition and Forestry of the Senate, and 
the Committee on Agriculture of the House of Representatives. The 
Commission is also authorized to make recommendations it deems 
appropriate. The Commission is to report the results of its study by 
May 13, 2003.
    The Joint Explanatory Statement of the Committee of Conference for 
the 2002 Act indicates that the Managers of the Conference intended for 
the Commission to examine the feasibility of improving the application 
and effectiveness of payment limitations, including the use of 
commodity certificates and the unlimited forfeiture of loan collateral. 
The 2002 Act also provides the Commission the authority to hold 
hearings, take testimony and receive evidence it considers necessary to 
conduct the study.
    At its initial meeting in January 2003, the Commission concluded 
that public hearings are not feasible given the time available to 
complete its study. However, the Commission concluded that public 
comments on the payment limitation issues to be addressed by the 
Commission would be helpful. Consequently, the Commission decided to 
seek written comments from the public.

Key Issues for Comment

    The Commission is specifically interested in receiving public input 
on the following:
    1. The impacts of further payment limitations on the receipt of 
direct payments, counter-cyclical payments, marketing loan gains and 
loan deficiency payments on:
    (a) Farm income;
    (b) Land values;
    (c) Rural communities;
    (d) Agribusiness infrastructure;
    (e) Planting decisions of producers affected; and
    (f) Prices of all agricultural commodities, including fruits and 
vegetables and other specialty crops.
    Comments are encouraged on the impact of farm program payments on 
the above and on the effects of further limitations on these issues. 
The range of effects is likely to depend on what further limitations 
are being evaluated. The phrase ``further limitations'' is not defined 
in the 2002 Act. The Commission believes that further limitations would 
be limitations that would result in total payments to producers being 
less than the level that would prevail under the payment limitations of 
the 2002 Act. Further limitations could be achieved a number of ways 
including: (1) Reducing the current dollar limitations imposed on 
specific types of payments, such as direct payments, that can be 
received by a producer, (2) restricting the number or types of entities 
eligible for payments, or (3) restricting or precluding payments based 
on a variety of other criteria, such as income. Each of these 
approaches may have different effects on producers and the agricultural 
economy, even if the total dollar reduction in payments is equal. The 
Commission welcomes comments on the effects of payments

[[Page 8196]]

and further payment limitations under alternative approaches. The 
Commission requests that commentors identify the approaches they are 
assessing along with analytical methods and data employed to reach 
their conclusions.
    2. The feasibility of improving the application and effectiveness 
of payment limitations, including the use of commodity certificates and 
the unlimited forfeiture of loan collateral. Payment limits currently 
involve complex determinations by the Farm Service Agency on the 
eligibility of persons for payments. Compliance with payment limitation 
provisions may involve extensive documentation of business organization 
and other information. It appears that the payment limit program 
results in a range of costs on producers and the government. The 
Commission seeks comments on the feasibility of improving the 
administration of payment limitations and reducing these costs. 
Questions have also been raised regarding the effectiveness of payment 
limitations. One measure of effectiveness is the degree to which 
payment limitations reduce payments that otherwise would be made. Some 
estimates suggest the amount of payments not made to producers 
participating in farm programs as a result of payment limitations is 
relatively small compared with the level of payments that are made. 
Other measures of effectiveness may be appropriate to assess, including 
possible impacts on the structure and size of farms. The Commission 
seeks comments on the effectiveness of payment limitations and the 
feasibility of making payment limits more effective in cost-efficient 
ways.
    3. The expected response of farmers and ranchers if payment 
limitations become more stringent. For example, would affected 
producers increase or reduce farm size? Would producers shift 
production to alternative commodities? Would producers change the legal 
organization of their businesses? Some commentors may be able to poll 
producers on how they might react to alternative approaches to 
tightening payment limitations. If so, the Commission requests 
information on the types and locations of farms surveyed.
    4. Any other information relevant to the study objectives of the 
Commission.

Regulatory Findings

    This notice is being issued to obtain public comment regarding 
issues associated with the study of the Commission on the Application 
of Payment Limitations for Agriculture. There are no regulatory 
findings associated with this notice.

    Signed in Washington, DC, on February 13, 2003.
Keith Collins,
Chairman, Commission on the Application of Payment Limitations for 
Agriculture.
[FR Doc. 03-4082 Filed 2-19-03; 8:45 am]
BILLING CODE 3510-05-U