[Federal Register Volume 68, Number 234 (Friday, December 5, 2003)]
[Rules and Regulations]
[Pages 67938-67939]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30198]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR parts 1412 and 1421

RIN 0560-AG71 and 0560-AG72


Direct and Counter Cyclical Program; Marketing Assistance Loans 
and Loan Deficiency Payments for Peanuts, Pulse Crops, Wheat, Feed 
Grains, Soybeans and Other Oilseeds; Correction

AGENCIES: Commodity Credit Corporation, USDA.

ACTION: Final rule (correcting amendments).

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SUMMARY: This document also corrects the regulations published by the 
Commodity Credit Corporation (CCC) entitled ``Direct and Counter 
Cyclical Program'' and ``Marketing Assistance Loans and Loan Deficiency 
Payments.'' Corrections are necessary for provisions that conflict with 
statute or other program requirements and are intended to ensure that 
Agency regulations are properly written and implemented. These changes 
will apply retroactively to actions taken under the subject regulations 
since their effective date.

DATES: The revisions to part 1412 are effective as of October 16, 2002; 
the revisions to part 1421 are effective as of October 8, 2002.

FOR FURTHER INFORMATION CONTACT: Sharon Biastock at 720-6336, or 
Kimberly Graham, at 202-720-9154.

SUPPLEMENTARY INFORMATION:

Discussion of Corrections

    (1) Interstate transfer of peanut acreage. This document also 
corrects 7 CFR part 1412, published in the Federal Register on October 
21, 2002, 67 FR 64751, by authority of the Farm Security and Rural 
Investment Act of 2002 (``2002 Act''). Part 1412 is entitled ``Direct 
and Counter-Cyclical Program and Peanut Quota Buyout Program,'' and 
provides for direct and counter-cyclical payments for the crop years 
2002 through 2007 for a number of crops to provide income support to 
producers of eligible commodities. The error is in the introductory 
language in section 1412.703(b) of part 1412, which states, 
``Notwithstanding paragraph (a) of this section, the average acreage 
determined under Sec.  1412.701 for a farm may be assigned to a farm in 
a contiguous county only if either of the following apply:'' This 
correction substitutes the word ``state'' for ``county'' in that 
sentence, as the provisions are directed to special allowance for 
interstate transfers for peanuts as reflected elsewhere and in the 
authorizing statute.
    (2) Penalties for erroneous certification. This document corrects 
the regulations for CCC Marketing Assistance Loans and Loan Deficiency 
Payments for Peanuts, Pulse Crops, Wheat, Feed Grains, Soybeans and 
Other Oilseeds at 7 CFR Part 1421. The current provisions of Part 1421 
were published in the Federal Register on Friday, October 11, 2002 (67 
FR 63511). Marketing assistance loans and loan deficiency payments are 
authorized by title I of the 2002 Act.
    This document corrects sections 1421.109 of 7 CFR part 1421 
relating to a producer's violation of a loan agreement, and the 
resulting administrative remedies. Specifically, Sec.  1421.109(e) is 
corrected so that the amount due for a violation of this provision is 
based only on the quantity of the commodity ``removed or disposed of'' 
and not the ``quantity incorrectly certified or the loan quantity 
removed or disposed.'' As to the reference to ``quantity incorrectly 
certified'' there can never be less than a full loan repayment as is 
clear from the circumstances and other provisions in the regulations. 
Accordingly, this section is corrected by removing that reference. 
Also, a clarifying comma is added after the word ``interest'' in Sec.  
1421.109(e)(1)(i).
    Section 1421.109 is also corrected in paragraph (g) so that, ``The 
county committee may waive the liquidated damages if it determines that 
the violation was inadvertent, accidental, or unintentional.'' instead 
of ``* * * and unintentional.'' The word ``or'' was used here instead 
of ``and'' to comport fully with the original and continuing intent of 
this provision.
    These changes are to clarify and correct regulations, and delaying 
their publication to request public comment is contrary to the public 
interest. Further, section 1601 of the 2002 Act exempts these changes 
from notice and comment rulemaking. So that they may apply equally with 
existing regulations,

[[Page 67939]]

these changes are effective as of the original filing of the rules 
implementing the 2002 Act.

List of Subjects

7 CFR Part 1412

    Direct and counter-cyclical payments, Grains, Peanuts, Oilseeds, 
Reporting and record keeping requirements.

7 CFR Part 1421

    Agricultural commodities, Feed grains, Grains, Loan programs--
agriculture, Oilseeds, Price support programs.

0
Accordingly, 7 CFR chapter XIV is corrected as follows:

PART 1412--DIRECT AND COUNTER-CYCLICAL PROGRAM AND PEANUT QUOTA 
BUYOUT PROGRAM

0
1. The authority citation for part 1412 continues to read as follows:

    Authority: 7 U.S.C. 7911-7918, 7951-7956; 15 U.S.C. 714b and 
714c.

Subpart G--Establishment and Assignment of Peanut Base Acres and 
Yields for a Farm

0
2. Revise Sec.  1412.703(b) to read as follows:


Sec.  1412.703  Assignment of average peanut yields and average peanut 
acreages to farms.

* * * * *
    (b) Notwithstanding paragraph (a) of this section, the average 
acreage determined under Sec.  1412.701 for a farm may be assigned to a 
farm in a contiguous state only if either of the following apply:
    (1) The historic peanut producer making the assignment produced 
peanuts in that State during at least one of the 1998 through 2001 crop 
years; or
    (2) As of March 31, 2003, the historic peanut producer is a 
producer on a farm in that State.
* * * * *

PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES--MARKETING 
ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR THE 2002 THROUGH 
2007 CROP YEARS

0
3. The authority citation for part 1421 continues to read as follows:

    Authority: 7 U.S.C. 7231-7237 and 7931 et seq.; 15 U.S.C. 714b, 
714c.

Subpart B--Marketing Assistance Loans

0
4. In Sec.  1421.109, paragraphs (e)(1) and (g) are corrected to read 
as follows:


Sec.  1421.109  Personal liability of the producer.

* * * * *
    (e) For violations and the liquidated damages under paragraph 
(d)(1) of this section, the county committee shall:
    (1) Require repayment of the marketing assistance loan quantity 
removed or disposed of at the lesser of:
    (i) The applicable loan principal, and charges, plus interest, or:
    (ii) The announced alternative repayment rate in effect on date the 
violation occurred, plus 15 percent of the loan rate, or as otherwise 
determined by the Deputy Administrator, and
* * * * *
    (g) The county committee may waive imposing liquidated damages if 
it determines that the violation was inadvertent, accidental, or 
unintentional.
* * * * *

    Signed in Washington, DC, on November 26, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-30198 Filed 12-4-03; 8:45 am]
BILLING CODE 3410-05-P