[Federal Register Volume 69, Number 172 (Tuesday, September 7, 2004)]
[Proposed Rules]
[Pages 54049-54053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20186]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 69, No. 172 / Tuesday, September 7, 2004 / 
Proposed Rules  

[[Page 54049]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 784

RIN 0560--AH15


2004 Ewe Lamb Replacement and Retention Payment Program

AGENCY: Farm Service Agency, USDA.

ACTION: Proposed Rule.

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SUMMARY: This proposed rule invites comments on a new program, the 2004 
Ewe Lamb Replacement and Retention Payment Program, as authorized by 
clause (3) of section 32 of the Act of August 24, 1935, as amended. The 
proposed program will assist producers of sheep and lambs by providing 
up to $18 million total, in direct cash payments, to encourage the 
replacement and retention of ewe lamb breeding stock during the one-
year period from August 1, 2003, through July 31, 2004. This action is 
designed to provide immediate financial assistance to sheep and lamb 
producers who have recently experienced reduced production and flock 
size, low prices and poor market conditions.

DATES: Comments on this rule must be received on or before October 7, 
2004 in order to be assured of consideration. Comments on the 
information collections in this rule must be received by November 8, 
2004 in order to be assured of consideration.

ADDRESSES: The Farm Service Agency invites interested persons to submit 
comments on this proposed rule and on the collection of information. 
Comments may be submitted by any of the following methods:
     E-Mail: Send comments to [email protected].
     Fax: Submit comments by facsimile transmission to: (202) 
690-3307.
     Mail: Send comments to Grady Bilberry, Director, Price 
Support Division (PSD), Farm Service Agency, United States Department 
of Agriculture (USDA), STOP 0512, Room 4095-S, 1400 Independence 
Avenue, SW., Washington, DC 20250-0512.
     Hand Delivery or Courier: Deliver comments to the above 
address * * *
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Comments on the information collection requirements of this rule 
must also be sent to the addresses listed in the Paperwork Reduction 
Act section of this Notice.
    Comments may be inspected in the Office of the Director, PSD, FSA, 
USDA, Room 4095 South Building, Washington, DC, between 8 a.m. and 4:30 
p.m., Monday through Friday, except holidays. A copy of this proposed 
rule is available on the PSD home page at http://www.fsa.usda.gov/dafp/psd/.

FOR FURTHER INFORMATION CONTACT: Danielle Cooke, phone: (202) 720-1919; 
e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    Clause (3) of section 32 of the Act of August 24, 1935, as amended, 
authorizes the Secretary of Agriculture to ``reestablish farmers 
purchasing power by making payments in connection with the normal 
production of any agricultural commodity for domestic consumption.''
    There are an estimated 66,800 sheep and lamb operations in the 
United States that account for about one percent of the value of all 
U.S. farm production. A dramatic increase in imported lamb meat over 
the last several years has resulted in reduced incomes for the 
producers of domestically raised sheep and lambs. The reduction in 
income has forced U.S. producers to reduce the production of sheep and 
lambs and overall flock size. The reduced production and flock size, 
along with the long-term reduced market prices for lambs, has 
significantly reduced the overall purchasing power of producers, 
including the ability to invest in improved breeding stock genetics. 
Ewe lamb replacement and retention in the U.S. again decreased from 
July 2002 to July 2003, with the 2003 lamb crop expected to total 4.13 
million, which is down five percent from the previous year. Extreme 
drought conditions over the past several years in many of the sheep-
producing areas of the U.S. have also adversely impacted the 
profitability of the industry due to reduced pasture carrying capacity 
and forage availability.
    This proposed rule addresses that situation by providing for a new 
program. It is similar to the program previously provided for ewe 
retention, which was codified in 7 CFR part 784. Payments to sheep and 
lamb operations under the program will strengthen the entire industry 
by providing cash benefits while establishing larger and genetically 
improved flocks that will help the U.S. lamb industry achieve sustained 
competitiveness, while respecting international trade obligations. The 
program will only be administered for the base period of August 1, 2003 
through July 31, 2004. Program benefits will be limited to eligible ewe 
lambs retained during this base period under this one-time only 
program, which will end at the conclusion of the application period 
announced by FSA and upon the dispersal of available funds to eligible 
program participants approved for benefits. The rule contemplates that 
$18 million will be available for the program and limits expenditures 
to that amount with a provision for pro-rating payments. In the event 
that approval of all eligible applications would result in expenditures 
in excess of the amount available, FSA will prorate funds by a national 
factor to reduce the expected payments to be made to the amount 
available. Subject to such proration and the availability of funds, the 
maximum payment amount will be capped at $18 per eligible ewe.
    Payments under this new program will provide those eligible for the 
payments with an immediate infusion of funds to help pay to replace and 
retain ewe lamb breeding stock and meet other financial obligations.
    Eligible sheep and lamb operations making application for payments 
under this part must certify that they will maintain the qualifying ewe 
lambs in the herd for at least one complete offspring lambing cycle and 
actually maintain the lambs for the period in accord with that 
certification. The offspring lambing cycle would be at least one cycle 
in which the lamb could bring its own lamb to weaning in the normal 
amount of time. Subject to available funds and prorating, the

[[Page 54050]]

eligible operation can receive payments for all ewes held by the 
operation that long which were owned during the base period. Because of 
the required holding period, compliance will not be completed until a 
time after the close of the base period. (The base period was August 1, 
2003 through July 31, 2004). Ewes, to qualify, must meet certain 
quality standards, for which sheep and lamb producers must also 
certify. In addition, eligible sheep and lamb operations must be in the 
business of producing and marketing agricultural products at the time 
of filing an application for program benefits and must certify that 
they are in compliance with related requirements described in 9 CFR 
parts 54 and 79. Sheep and lamb operations determined to have made any 
false certifications or adopted any misrepresentation, scheme or device 
that defeats the program purpose will be required to refund any 
payments issued under this program with interest and will be ineligible 
to participate in this program and any other USDA program, in addition 
to other civil, criminal, or administrative remedies that may apply. 
Payments are subject to all requirements of the regulations and program 
documents. The proposed rule follows the rules for the previous ewe 
retention program with some clarification. Eligible sheep and lamb 
operations must apply for payments during the application period set by 
FSA pursuant to these regulations. Information provided on applications 
and supporting documentation submitted to FSA will be subject to 
verification by FSA. Applications to be verified will be selected 
randomly. Penalties for false certification can be easily assessed and 
are expected to minimize such certifications. Adequate records must be 
maintained by the sheep and lamb operation to verify the eligibility of 
the operation and the qualifying ewe lambs. Documentation used to 
support eligibility may include, but is not limited to sales receipts, 
farm management records, veterinarian certifications, and scrapie 
program forms. The documentation should be verifiable and include 
adequate information to substantiate eligibility, such as, date of lamb 
purchase or birth, lamb identification and control information, number 
of ewe lambs purchased or retained and scrapie program identification 
numbers. In addition, adequate documentation that includes the date of 
death must be maintained for any death loss of qualifying ewe lambs.
    Sheep and lamb operations may, during the applicable application 
period established by the Deputy Administrator for Farm Programs for 
FSA, apply in person at FSA county offices during regular business 
hours. Alternatively, program applications may be obtained by mail, 
telephone, and facsimile from their designated FSA county office or 
obtained via the Internet at http://www.fsa.usda.gov/dafp/psd/. This 
new program does not replace the previous ewe retention program. To the 
extent of any outstanding issues, the previous program will be operated 
under the regulations issued in connection with that program.

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866 and has been determined to be significant and has been reviewed 
by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this proposed rule because the FSA is not required by 5 
U.S.C. 533 or any other provision of law to publish a notice of 
proposed rulemaking with respect to the subject matter of this proposed 
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 necessary for this proposed rule.

Executive Order 12988

    This proposed 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 proposed 
rule. Before any legal action may be brought regarding determinations 
of this rule, the administrative appeal provisions set forth at 7 CFR 
parts 11 and 780 must be exhausted.

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 3014, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Unfunded Mandates Reform Act of 1995

    This proposed rule contains no Federal mandates under the 
regulatory provisions of Title II of the Unfunded Mandates Reform Act 
of 1995 (UMRA) for State, local, and tribal governments or the private 
sector. Thus, this rule is not subject to the requirements of sections 
202 and 205 of the UMRA.

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, FSA intends 
to request approval by OMB of an information collection required to 
support the proposed rule establishing a new ewe lamb replacement and 
retention payment program for sheep and lamb producers. Copies of the 
information collection may be obtained from Linda Turner, the Agency 
Information Collection Coordinator, at (202) 690-1855.
    Title: 2004 Ewe Lamb Replacement and Retention Payment Program.
    OMB Control Number: 0560-New.
    Type of Request: Request for Approval of a New Information 
Collection.
    Abstract: Sheep and lamb operations are eligible to receive direct 
payments provided they make certifications that attest to their 
eligibility to receive such payments. These operations must certify, as 
appropriate, with respect to: (1) The number of ewe lambs not older 
than 18 months of age that were purchased or retained by the sheep and 
lamb operation during the period of August 1, 2003, through July 31, 
2004, to replenish the breeding stock of the sheep and lamb operation 
and did not receive funds under the Lamb Meat Adjustment Assistance 
Program (LMAAP) for the same ewe lamb; (2) retention of the qualifying 
ewe lambs in the herd for at least one complete offspring lambing 
cycle; (3) certain characteristics of the qualifying ewe lambs as 
determined by the Secretary; (4) identification of the qualifying ewe 
lambs according to their State identification requirements and through 
the Animal Plant and Health Inspection Service (APHIS) Voluntary 
Scrapie Flock Certification Program or the APHIS Scrapie Eradication 
Program; and (5) that the operation is still in the business of 
agricultural production. The information will be used by FSA to 
determine the program eligibility of the sheep and lamb operation. FSA 
considers the information collected essential to prudent eligibility 
determinations and payment calculations. Additionally, without accurate 
information on sheep and lamb operations, the national payment rate

[[Page 54051]]

would be inaccurate, resulting in payments being made to ineligible 
recipients and compromising the integrity and accuracy of the program.
    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: Sheep and Lamb Operations.
    Estimated Number of Respondents: 63,000.
    Estimated Number of Responses per Respondent: 5.
    Estimated Total Annual Burden on Respondents: 27,540 hours.
    Proposed topics for comment include: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of burden including 
the validity of the methodology and assumptions used; (c) ways to 
enhance the quality, utility, and clarity of the information collected; 
or (d) ways to minimize the burden of the collection of the information 
on those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology. Comments should be 
sent to the Desk Officer for Agriculture, Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, D.C. 
20503 and to Grady Bilberry, Director, Price Support Division, Farm 
Service Agency, United States Department of Agriculture, STOP 0512, 
1400 Independence Avenue, SW., Washington, DC 20250-0512 or telephone 
(202) 720-7901.

Executive Order 12612

    It has been determined that this proposed rule does not have 
sufficient Federalism implications to warrant the preparation of a 
Federalism Assessment. The provisions contained in this rule will not 
have a substantial direct effect on States or their political 
subdivisions or on the distribution of power and responsibilities among 
the various levels of government.

List of Subjects in 7 CFR Part 784

    Agriculture, Livestock, Reporting and record keeping requirements.

    Accordingly, 7 CFR Part 784 is proposed to be revised to read as 
follows:

PART 784--2004 EWE LAMB REPLACEMENT AND RETENTION PAYMENT PROGRAM

Sec.
784.1 Applicability.
784.2 Administration.
784.3 Definitions.
784.4 Time and method of application.
784.5 Payment eligibility.
784.6 Rate of payment and limitations on funding.
784.7 Availability of funds.
784.8 Appeals.
784.9 Misrepresentation and scheme or device.
784.10 Estates, trusts, and minors.
784.11 Death, incompetence, or disappearance.
784.12 Maintaining records.
784.13 Refunds; joint and several liability.
784.14 Offsets and withholdings.
784.15 Assignments.
784.16 Termination of program.

    Authority: Clause (3) of section 32 of the Act of August 24, 
1935, as amended; 7 U.S.C. 612c.


Sec.  784.1  Applicability.

    (a) Subject to the availability of funds, this part establishes 
terms and conditions under which the 2004 Ewe Lamb Replacement and 
Retention Payment Program will be administered. The purpose of this 
program is to provide benefits to sheep and lamb operations, pursuant 
to clause (3) of section 32 of the Act of August 24, 1935, as amended 
(7 U.S.C. 612c), in order to enhance their purchasing power in 
connection with the normal production of sheep and lambs for domestic 
consumption and increase the size of the United States breeding flock. 
Increasing flock size will, in turn, boost producers' purchasing power 
and competitive position in the marketplace by fostering a sustainable 
industry, increasing industry efficiency through larger volumes of 
production, and enhancing the value of products in the marketplace.
    (b) Unless otherwise determined by the Farm Service Agency (FSA) in 
accordance with the provisions of this part, the amount that may be 
expended under this part for program payments shall not exceed $18 
million. Claims that exceed that amount will be prorated in accordance 
with the provisions for proration that are contained in this part.
    (c) Producers must comply with all provisions of this part and 7 
CFR 718.9--Finality Rule.


Sec.  784.2  Administration.

    (a) This part shall be administered by FSA under the general 
direction and supervision of the Deputy Administrator for Farm 
Programs, FSA. The program shall be carried out in the field by FSA 
State and county committees (State and county committees).
    (b) State and county committees, and representatives and employees 
thereof, do not have the authority to modify or waive any of the 
provisions of the regulations in this part.
    (c) The State committee shall take any action required by this part 
that has not been taken by the county committee. The State committee 
shall also:
    (1) Correct, or require a county committee to correct, any action 
taken by such county committee that is not in accordance with the 
regulations of this part; or
    (2) Require a county committee to withhold taking any action that 
is not in accordance with the regulations of this part.
    (d) No delegation herein to a State or county committee shall 
preclude the Deputy Administrator for Farm Programs, FSA, or a 
designee, from determining any question arising under the program or 
from reversing or modifying any determination made by a State or county 
committee.
    (e) The Deputy Administrator for Farm Programs, FSA, may authorize 
State and county committees to waive or modify deadlines and other 
program requirements in cases where timeliness or failure to meet such 
other requirements does not adversely affect the operation of the 
program.
    (f) The program described under this part is a one time only 
program that will be administered with respect to eligibility and 
qualifying factors occurring during the base period of August 1, 2003 
through July 31, 2004.


Sec.  784.3  Definitions.

    The definitions set forth in this section shall be applicable for 
all purposes of administering the 2004 Ewe Lamb Replacement and 
Retention Payment Program established by this part.
    Agricultural Marketing Service or AMS means the Agricultural 
Marketing Service of the Department.
    Application means the Ewe Lamb Replacement and Retention Payment 
Program Application.
    Application period means the date established by the Deputy 
Administrator for producers to apply for program benefits.
    Base period means the period from August 1, 2003 through July 31, 
2004, that ewe lambs must meet all qualifying eligibility criteria.
    Ewe lamb means a female lamb no more than 18 months of age that has 
not produced an offspring.
    Farm Service Agency or FSA means the Farm Service Agency of the 
Department.
    Foot rot means an infectious, contagious disease of sheep that 
causes severe lameness and economic loss from decreased flock 
production.

[[Page 54052]]

    Lambing cycle means the period of time from birth to weaning.
    Parrot mouth means a genetic defect resulting in the failure of the 
incisor teeth to meet the dental pad correctly.
    Person means any individual, group of individuals, partnership, 
corporation, estate, trust, association, cooperative, or other business 
enterprise or other legal entity who is, or whose members are, a 
citizen or citizens of, or legal resident alien or aliens in the United 
States.
    Sheep and lamb operation means any self-contained, separate 
enterprise operated as an independent unit exclusively within the 
United States in which a person or group of persons raise sheep and/or 
lambs.
    United States means the 50 States of the United States of America, 
the District of Columbia, and the Commonwealth of Puerto Rico.


Sec.  784.4  Time and method of application.

    (a) A request for benefits under this part must be submitted on the 
Ewe Lamb Replacement and Retention Program Application. The application 
form may be obtained in person, by mail, by telephone, or by facsimile 
from any county FSA office. In addition, applicants may download a copy 
of the form at http://www.usda.gov/dafp/psd/.
    (b) The form may be obtained from and must be submitted to the FSA 
county office serving the county where the sheep and lamb operation is 
located. The completed form must be received by the FSA county office 
by the date established by the Agency. Applications not received by 
that date will be disapproved and returned as not having been timely 
filed and the sheep and lamb operation filing the application will not 
be eligible for benefits under this program.
    (c) The sheep and lamb operation requesting benefits under this 
part must certify to the accuracy of the information provided in their 
application for benefits. All information provided is subject to 
verification and spot checks by FSA. Refusal to allow FSA or any other 
agency of the Department of Agriculture to verify any information 
provided will result in a determination of ineligibility. Data 
furnished by the applicant will be used to determine eligibility for 
program benefits. Providing a false certification may be subject to 
additional civil and criminal sanctions.
    (d) The sheep and lamb operation requesting benefits under this 
part must maintain accurate records that document that they meet all 
eligibility requirements specified herein, as may be requested by FSA. 
Acceptable forms of supporting documentation include, but are not 
limited to: sales receipts, farm management records, veterinarian 
certifications, scrapie program forms and identification numbers, as 
well as, other types of documents that prove the eligibility of the 
qualifying ewe lambs and the sheep and lamb operation. The supporting 
documentation provided must at a minimum include at least the 
following: date of lamb purchase or date of birth, date of lamb death 
(if applicable), lamb identification and control information, number of 
ewe lambs purchased or retained, and scrapie program identification 
numbers.


Sec.  784.5  Payment eligibility.

    (a) Payments can be made, as agreed to by FSA and subject to the 
availability of funds, for eligible ewe lambs acquired or held during 
the base period by eligible sheep and lamb operations. Payments may be 
made for eligible ewe lambs held continuously by the operation, through 
the end of the compliance period, from the time of the first possession 
of the ewe lamb. The payment rate cannot exceed the rate provided for 
in Sec.  784.6 or it may be prorated pursuant to Sec.  784.7. For 
purposes of this section the ``base period'' is the period from August 
1, 2003 through July 31, 2004.
    (b) For the ewe lamb to be eligible, a sheep and lamb operation 
must certify that the ewe lamb:
    (1) During at least part of the base period was not older than 18 
months of age;
    (2) Had not produced an offspring; and
    (3) At the time of certification, does not possess the following 
characteristics:
    (i) Parrot mouth; or
    (ii) Foot rot.
    (c) Sheep and lamb operation must certify and agree to:
    (1) Maintain the qualifying ewe lambs in the herd for at least one 
complete, normal offspring lambing cycle and actually maintain the 
lambs for that period in accord with that certification. The 
``offspring'' lambing cycle refers to the time in which the qualifying 
ewe lamb's own offspring would be weaned, in a normal course, from that 
qualifying ewe if the ewe were to have offspring, irrespective of 
whether the ewe actually produces offspring.
    (2) Upon request by an AMS agent, allow the AMS agent to verify 
that the ewe lambs meet qualifying characteristics.
    (3) Maintain documentation of any death loss of qualifying ewe 
lambs.
    (4) Agree to refund any payments made with respect to any ewe lamb 
or offspring that has died before completing the full program 
requirements where said deaths for the operation exceed 10 percent.
    (5) Be in compliance with all requirements relating to scrapie, as 
described in 9 CFR parts 54 and 79.
    (d) To be eligible for any payments addressed under this section, a 
sheep and lamb operation must be engaged in the business of producing 
and marketing agricultural products at the time of filing the 
application.
    (e) In addition, to be eligible for payment, a sheep and lamb 
operation must submit a timely application during the application 
period for benefits and comply with all other terms and conditions of 
this part or that are contained in the application to be eligible for 
such benefits.


Sec.  784.6  Rate of payment and limitations on funding.

    (a) Subject to the availability of funds and to the proration 
provisions of Sec.  784.7, payments for qualifying operations shall be 
$18 for each qualifying ewe lamb retained or purchased for breeding 
purposes.


Sec.  784.7  Availability of funds.

    Total payments under this part, unless otherwise determined by the 
FSA, cannot exceed $18 million. In the event that approval of all 
eligible applications would result in expenditures in excess of the 
amount available, FSA shall prorate the available funds by a national 
factor to reduce the expected payments to be made to the amount 
available. The payment shall be made based on the national factored 
rate as determined by FSA. FSA shall prorate the payments in such 
manner as it, in its sole discretion, finds fair and reasonable.


Sec.  784.8  Appeals.

    Any sheep and lamb operation that is dissatisfied with a 
determination made pursuant to this part may make a request for 
reconsideration or appeal of such determination in accordance with the 
appeal regulations set forth at parts 11 and 780 of this title.


Sec.  784.9  Misrepresentation and scheme or device.

    (a) A sheep and lamb operation shall be ineligible to receive 
assistance under this program or any other USDA program if it is 
determined by the State committee or the county committee to have:
    (1) Adopted any scheme or device that tends to defeat the purpose 
of this program;
    (2) Made any fraudulent representation; or

[[Page 54053]]

    (3) Misrepresented any fact affecting a program determination.
    (b) Any funds disbursed pursuant to this part to any person or 
operation engaged in a misrepresentation, scheme, or device, shall be 
refunded with interest together with such other sums as may become due. 
Any sheep and lamb operation or person engaged in acts prohibited by 
this section and any sheep and lamb operation or person receiving 
payment under this part shall be jointly and severally liable with 
other persons or operations involved in such claim for benefits for any 
refund due under this section and for related charges. The remedies 
provided in this part shall be in addition to other civil, criminal, or 
administrative remedies that may apply.


Sec.  784.10  Estates, trusts, and minors.

    (a) Program documents executed by persons legally authorized to 
represent estates or trusts will be accepted only if such person 
furnishes evidence of the authority to execute such documents.
    (b) A minor who is otherwise eligible for assistance under this 
part must, also:
    (1) Establish that the right of majority has been conferred on the 
minor by court proceedings or by statute;
    (2) Show a guardian has been appointed to manage the minor's 
property and the applicable program documents are executed by the 
guardian; or
    (3) Furnish a bond under which the surety guarantees any loss 
incurred for which the minor would be liable had the minor been an 
adult.


Sec.  784.11  Death, incompetence, or disappearance.

    In the case of death, incompetence, disappearance or dissolution of 
a person that is eligible to receive benefits in accordance with this 
part, such person or persons specified in 7 CFR part 707 may receive 
such benefits, as determined appropriate by FSA.


Sec.  784.12  Maintaining records.

    Persons making application for benefits under this program must 
maintain accurate records and accounts that will document that they 
meet all eligibility requirements specified herein. Such records and 
accounts must be retained for 3 years after the date of payment to the 
sheep and lamb operations under this program. Destruction of the 
records after such date shall be at the risk of the party undertaking 
the destruction.


Sec.  784.13  Refunds; joint and several liability.

    (a) In the event there is a failure to comply with any term, 
requirement, or condition for payment arising under the application, or 
this part, and if any refund of a payment to FSA shall otherwise become 
due in connection with the application, or this part, all payments made 
under this part to any sheep and lamb operation shall be refunded to 
FSA together with interest as determined in accordance with paragraph 
(c) of this section and late payment charges as provided in part 1403 
of this title.
    (b) All persons signing a sheep and lamb operation's application 
for payment as having an interest in the operation shall be jointly and 
severally liable for any refund, including related charges, that is 
determined to be due for any reason under the terms and conditions of 
the application or this part with respect to such operation.
    (c) Interest shall be applicable to refunds required of any person 
under this part if FSA determines that payments or other assistance was 
provided to a person who was not eligible for such assistance. Such 
interest shall be charged at the rate of interest that the United 
States Treasury charges the Commodity Credit Corporation for funds, 
from the date FSA made such benefits available to the date of repayment 
or the date interest increases as determined in accordance with 
applicable regulations. FSA may waive the accrual of interest if FSA 
determines that the cause of the erroneous determination was not due to 
any action of the person.
    (d) Interest determined in accordance with paragraph (c) of this 
section may be waived at the discretion of FSA alone for refunds 
resulting from those violations determined by FSA to have been beyond 
the control of the person committing the violation.
    (e) Late payment interest shall be assessed on all refunds in 
accordance with the provisions of, and subject to the rates prescribed 
in 7 CFR part 792.
    (f) Any excess payments made by FSA with respect to any application 
under this part must be refunded.
    (g) In the event that a benefit under this subpart was provided as 
the result of erroneous information provided by any person, the benefit 
must be repaid with any applicable interest.


Sec.  784.14  Offsets and withholdings.

    FSA may offset or withhold any amounts due FSA under this subpart 
in accordance with the provisions of 7 CFR part 792, or successor 
regulations, as designated by the Department.


Sec.  784.15  Assignments.

    Any person who may be entitled to a payment may assign his rights 
to such payment in accordance with 7 CFR part 1404 or successor 
regulations as designated by the Department.


Sec.  784.16  Termination of program.

    This program will be terminated after payment has been made to 
those applications certified as eligible pursuant to the application 
period established in Sec.  784.4.

    Signed at Washington, DC, August 31, 2004.
James R. Little,
Administrator, Farm Service Agency.
[FR Doc. 04-20186 Filed 9-3-04; 8:45 am]
BILLING CODE 3410-05-P