[Federal Register Volume 68, Number 159 (Monday, August 18, 2003)]
[Rules and Regulations]
[Pages 49329-49332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-21039]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1481

RIN 0560-AH04


Sugar Beet Disaster Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements provisions of the Agricultural Assistance 
Act of 2003, related to the Sugar Beet Disaster Program. This program 
will assist sugar beet producers who suffered production losses for 
either the 2001 or 2002 crop year due to weather related disasters 
which resulted in the prevention of planting or the reduction of 
quantity or quality while the beets were in the field.

EFFECTIVE DATE: August 18, 2003.

FOR FURTHER INFORMATION CONTACT: Sharon Biastock, Production, 
Emergencies, and Compliance Division, Farm Service Agency (FSA), U.S. 
Department of Agriculture, 1400 Independence Ave. SW., Stop 0517, 
Washington, DC 20250-0540, telephone (202) 720-6336; e-mail address: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    This final rule implements Sec. 208 of the Agricultural Assistance 
Act of 2003 (Pub. L. 108-7) related to the Sugar Beet Program. The 
statute provides that the Secretary of Agriculture (Secretary) may use 
up to $60 million of the funds of the Commodity Credit Corporation 
(CCC) to pay producers with sugar beet crops who were adversely 
affected by weather for in-field losses prior to harvest for either the 
2001 or 2002 crop year, but not both, as elected by the producers. 
Congress set forth a clear separate funding and authorization to 
accommodate the specific needs of sugar beet growers. Therefore, 
modifications to the disaster assistance provisions for other crops 
have been made to meet those needs of sugar beet growers.
    CCC is promulgating this rule as 7 CFR part 1481, and replacing the 
current regulations in that part governing the Limited California 
Cooperative Insolvency Payment Program (LCCIPP). The LCCIPP was 
authorized by section 843 of the Agriculture, Rural Development, Food 
and Drug Administration, and Related Agencies Appropriations Act, 2001 
(Pub. L. 106-387, 114 Stat. 1549) and

[[Page 49330]]

was implemented by CCC under the CCC Charter Act (15 U.S.C. 714 et 
seq.). The program made payments to producers who suffered losses on 
commodities produced during the 2000 crop year because of the 
insolvency of an agriculture cooperative in California. LCCIPP is now 
terminated.

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and was determined to be significant and reviewed by the Office of 
Management and Budget.

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 law to 
publish a notice of proposed rulemaking for to the subject matter of 
this rule.

Environmental Evaluation

    The environmental impacts of this rule have been considered in 
accordance with the provisions of the national Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and FSA's 
regulations for compliance with NEPA, 7 CFR part 799. To the extent 
these authorities may apply, CCC and FSA have concluded that this rule 
is categorically excluded from further environmental review as 
evidenced by the completion of an environmental evaluation. No 
extraordinary circumstances or other unforeseeable factors exist which 
would require preparation of an environmental assessment or 
environmental impact statement. A copy of the environmental evaluation 
is available for inspection and review upon request.

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. This rule preempts State laws that are inconsistent with this 
rule. Before judicial action may be brought on this rule, the 
administrative remedies must be exhausted.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 is not 
applicable to this rule because USDA is not required by 5 U.S.C. 553 or 
any other law to publish a notice of proposed rulemaking for the 
subject matter of this rule. Further, in any case, this rule does not 
impose any mandates on State, local or tribal governments, or the 
private sector.

Paperwork Reduction Act

    Section 217 of Public Law 108-7 requires that the promulgation of 
the regulations and administration of this title shall be made without 
regard to the notice and comment provisions of section 553 of title 5, 
United States Code; the Statement of Policy of the Secretary of 
Agriculture effective July 24, 1971 (36 FR 13804), relating to notices 
of proposed rule making and public participation in rulemaking; and 44 
U.S.C. chapter 35 (the Paperwork Reduction Act (PRA)).

Government Paperwork Elimination Act

    CCC is committed to compliance with the Government Paperwork 
Elimination Act, which requires Federal Government agencies to provide 
the public the option of submitting information or transacting business 
electronically to the maximum extent possible. However, the forms and 
other information collection activities required by participation in 
the Sugar Beet Disaster Program are not yet fully implemented for the 
public to conduct business with FSA electronically. CCC will make the 
application for the Sugar Beet Disaster Program available on the 
agency's Internet Web site. The form may be completed and saved on a 
computer, but must be printed, signed and submitted to an FSA County 
Office in paper form.

Federal Assistance Program

    This rule affects the following FSA program listed in the Catalog 
of Federal Domestic Assistance: 10.073--Crop Disaster Program.

List of Subjects in 7 CFR part 1481

    Agriculture, Sugar, Disaster Assistance.


0
Accordingly, 7 CFR part 1481 is revised as follows:

PART 1481--SUGAR BEET DISASTER PROGRAM

Sec.
1481.1 Applicability.
1481.2 Administration.
1481.3 Definitions.
1481.4 Producer eligibility.
1481.5 Sign-up period.
1481.6 Proof of loss.
1481.7 Indemnity benefits.
1481.8 Availability of funds.
1481.9 Limitations on payments.
1481.10 Crop insurance linkage.
1481.11 Miscellaneous provisions.

    Authority: Pub. L. 106-387, 114 Stat. 1549; Pub. L. 108-7, 117 
Stat. 11; 15 U.S.C. 714 et seq.


Sec.  1481.1  Applicability.

    (a) This part sets forth the terms and conditions applicable to the 
Sugar Beet Disaster Program.
    (b) Producers who were prevented from planted sugar beets, or who 
suffered either quantity or quality losses in excess of 35 percent to 
sugar beets while in the field in 2001 or 2002 due to adverse weather 
will be considered eligible for benefits for either of those years, but 
not both.


Sec.  1481.2  Administration.

    Where circumstances preclude compliance with Sec.  1481.4 due to 
circumstances beyond the applicant's control, the FSA county or State 
committee may request that relief be granted by the Deputy 
Administrator under this section. In such cases, except for statutory 
deadlines and other statutory requirements, the Deputy Administrator 
may, in order to more equitably accomplish the goals of this part, 
waive or modify deadlines and other program requirements if the failure 
to meet such deadlines or other requirements does not adversely affect 
operation of the program and are not prohibited by statute.


Sec.  1481.3  Definitions.

    The definitions in this section shall apply to this part.
    Application means the Sugar Beet Disaster Program Application, as 
provided by and available in any FSA office.
    CCC means the Commodity Credit Corporation.
    CDP means the Crop Disaster Program authorized in 7 CFR part 1480.
    Deputy Administrator means the Deputy Administrator of Farm 
Programs, Farm Service Agency, U.S. Department of Agriculture or a 
designee.
    Eligible losses are any sugar beet losses in excess of 35 percent 
to either quantity or quality, that occur while the beets are still in 
the field and are due to adverse weather conditions.
    FSA means Farm Service Agency.
    NAP means the Noninsured Crop Disaster Assistance Program.
    RMA means the Risk Management Agency.

[[Page 49331]]

Sec.  1481.4  Producer eligibility.

    (a) Producers will be eligible under this part if they have 
suffered losses of more than 35 percent of sugar beets in 2001 or 2002 
as a result of a weather 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 2001 or 
2002 crop year, as applicable, and must not otherwise be barred from 
receiving benefits under 7 CFR part 12 or any other law.


Sec.  1481.5  Sign-up period.

    A request for benefits under this part must be submitted to CCC at 
the FSA county office which serves the farm on which the affected sugar 
beets were planted or prevented from being planted. All applications 
must be filed in the FSA county office between September 15, 2003 and 
no later than the close of business on October 31, 2003, or another 
date determined and announced by the Deputy Administrator.


Sec.  1481.6  Proof of loss.

    (a) Where available and determined accurate, RMA loss records will 
be used for insured sugar beets.
    (b) For producers without crop insurance, the producer must provide 
documentation including the number of acres, yield, production, and 
sugar percent by unit for 2001 or 2002.
    (c) Certifications by third parties or the owner and other such 
documentation will not be accepted.
    (d) Producers shall certify to the accuracy of the information 
provided. All information provided is subject to verification and spot 
checks by CCC. Failure to provide information requested by the FSA 
county committee or by any agency official is cause for denial of any 
application filed under this part.


Sec.  1481.7  Indemnity benefits.

    (a) Eligible producers with losses in excess of 35 percent in both 
2001 and 2002 will have a choice of receiving payments of either 2001 
or 2002 crop year, but not both.
    (b) Eligible producers with losses in excess of 35 percent in one 
of either 2001 or 2002 may receive benefits for that year.
    (c) Eligible producers will receive payments based on the higher of 
the following:
    (1) For producers with crop insurance, 60 percent of their crop 
insurance indemnity.
    (2) For any producer, with or without crop insurance, 65 percent of 
the higher of the producer's Actual Production History (APH) or the 
county average yield, minus actual yield, times 55 percent of the 
following Multi-Peril Crop Insurance (MPCI) price elections:
    (i) For 2001 crop $36 per ton.
    (ii) For 2002 crop $33 per ton.
    (3) For any producer, with or without crop insurance, 100 percent 
of the higher of the producer's APH or the county average yield, minus 
the actual yield times $12.50 per ton.


Sec.  1481.8  Availability of funds.

    (a) In the event that the total amount of eligible claims submitted 
under this part exceeds $60 million, then each payment shall be reduced 
by a uniform national percentage or other means of proration.
    (b) Such payment reductions shall be applied after the imposition 
of applicable per-person payment limitation provisions.


Sec.  1481.9  Limitations on payments.

    (a) The total amount of benefits that a person, as determined in 
accordance with part 1400 of this chapter, shall be entitled to receive 
under this part may not exceed $80,000.
    (b) A person, as defined in part 1400 of this chapter, who has 
annual gross revenue in excess of $2.5 million shall not be eligible to 
receive assistance under this part. For the purpose of this 
determination, annual gross revenue means:
    (1) With respect to a person who receives more than 50 percent of 
such person's gross income from farming and ranching, the total gross 
revenue received from such operations; and
    (2) With respect to a person who receives 50 percent or less of 
such person's gross income from farming and ranching, the total gross 
revenue from all sources.
    (c) Payments earned under other programs contained in this chapter 
shall not reduce the amount payable under this part.
    (d) No person shall receive disaster benefits under this part in an 
amount that exceeds 100 percent of the value of the expected production 
for the relevant period as determined by CCC. Accordingly, as 
determined by CCC, the sum of the value of the crop not lost, if any, 
plus disaster payments, plus the net crop insurance indemnity, cannot 
exceed 100 percent of what the crop's value would have been if there 
had been no loss.
    (e) All payments are subject to offsets as provided in 7 CFR part 
1403.


Sec.  1481.10  Crop insurance linkage.

    (a) Except as provided further in this section, any producer who 
elected not to purchase crop insurance or NAP coverage as applicable on 
2001 or 2002 sugar beet crops for which the producer receives crop loss 
assistance must:
    (1) Purchase crop insurance with additional coverage on that crop 
for the 2003 and 2004 crop years for sugar beets.
    (2) Or, when such insurance cannot be obtained because it is not 
available, purchase NAP coverage by paying the administrative fee by 
the applicable State filing deadline and complete all required program 
requirements including yearly acreage reports, for the otherwise non-
insurable sugar beet crop for both 2003 and 2004 crop years.
    (b) If, at the time the producer applies for the 2001 or 2002 CDP 
the sales closing date for 2003 insurable crops, or for 2003 non-
insurable crops for which the producer sought benefits under the 2001 
or 2002 CDP has passed, the producer must instead to meet the 
requirement of this section, purchase crop insurance policy or obtain 
NAP sugar beet coverage, as applicable, for the next available 2 crop 
years.
    (c) If any producer fails to purchase crop insurance or NAP, as 
required in paragraphs (a) or (b) of this section, the producer shall 
reimburse CCC for the full amount of the assistance, plus interest, 
provided to the producer under this part.


Sec.  1481.11  Miscellaneous provisions.

    (a) 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.
    (b) All persons with a financial interest in the operation 
receiving

[[Page 49332]]

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.
    (c) 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.
    (d) 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.
    (e) 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 in 
parts 11 and 780 of this title.
    (f) 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.
    (g) For the purposes of 28 U.S.C. 3201(e), CCC 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 2001 or 2002 sugar beet payments to reduce the amount of the 
judgment lien.

    Signed in Washington, DC, on August 11, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-21039 Filed 8-15-03; 8:45 am]
BILLING CODE 3410-DS-P