[Federal Register Volume 70, Number 59 (Tuesday, March 29, 2005)]
[Rules and Regulations]
[Pages 15725-15736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6080]



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  Federal Register / Vol. 70, No. 59 / Tuesday, March 29, 2005 / Rules 
and Regulations  

[[Page 15725]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR 1479

RIN 0560-AH24


2003-2005 Crop Disaster Programs

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements portions of the Military Construction, 
Appropriations and Emergency Hurricane Supplemental Appropriations Act, 
2005 enacted October 13, 2004 (the 2004 Act), to authorize crop-loss 
disaster assistance for producers who suffered 2003, 2004, or 2005 crop 
losses caused by damaging weather and related conditions. Also included 
under this rule is authority for disaster assistance specifically for 
producers in Virginia, and producers of fruit and vegetable crops 
located in North Carolina that suffered losses due to adverse weather 
and related conditions that occurred in 2003.

EFFECTIVE DATE: March 28, 2005.

FOR FURTHER INFORMATION CONTACT: Eloise Taylor, Chief, Compliance 
Branch, Production, Emergencies, and Compliance Division, Farm Service 
Agency (FSA), United States Department of Agriculture, STOP 0517, 1400 
Independence Avenue, SW., Washington, DC 20250-0517; telephone (202) 
720-9882; e-mail [email protected].
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audio tape, etc.) should contact 
the USDA Target Center at (202) 720 2600 (voice and TDD).

Background

Disaster Assistance for Crop Producers

    Division B of the 2004 Act (Pub. L. 108-324, 118 Stat. 1220, 
October 13, 2004) authorizes the Secretary, generally, to provide 
assistance to crop producers for qualifying crop or crop quality losses 
due to damaging weather and related conditions for one, but not more 
than one of the 2003, 2004, or 2005 crop years in the same manner as 
provided for eligible crop losses under section 815 of the 
Agricultural, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act, 2001 (Pub. L. 106-387; 114 Stat. 
1549A-55) (2001 Act). The 2001 Act provided coverage for 2000 crop 
losses and was codified in 7 CFR part 1480 (66 FR 15979, March 21, 
2001). Eligible crop losses for 2005 are limited to only those losses 
caused by a hurricane or tropical storm of the 2004 hurricane season in 
counties declared disaster areas by the President. The 2004 Act 
specifies, too, that notwithstanding the crop-year election otherwise 
required, $53 million shall be provided to the Secretary of which $50 
million shall be for losses located in the Commonwealth of Virginia and 
$3 million shall be for fruit and vegetable losses in North Carolina 
specifically caused by adverse weather and related conditions in 2003. 
Special approved yields based on actual production are prohibited 
unless production reports were submitted before enactment of the 2005 
Act. The statute provides that total assistance provided to a producer 
for a crop year under the Crop Disaster Program (CDP) (including the 
Virginia and North Carolina Programs), together with any amount 
provided to the same producer for the same crop made pursuant to any 
crop insurance program, and/or the Noninsured Crop Disaster Assistance 
Program (NAP), plus the value of the crop that was not lost, may not 
exceed 95 percent of the value of the crop in the absence of a loss, as 
estimated by the Secretary.
    The same loss thresholds used with respect to the 2000 CDP are 
applicable to the 2003, 2004, and 2005 CDP, including those losses 
under the Virginia and North Carolina provisions. If a producer under 
this rule seeks payments with regard to a crop for which insurance was 
available under a Federal Crop Insurance Act (FCIA) plan, but for which 
such insurance was not obtained, the producer must purchase crop 
insurance coverage at a level greater than the level available under 
the catastrophic risk protection for each of the next two subsequent 
crops. Also, in order to obtain benefits for 2003, 2004, or 2005 CDP, 
or the Virginia and North Carolina programs, for a ``non-insurable'' 
crop (i.e., a crop for which FCIA related insurance is not available), 
and for which NAP coverage was not obtained, the producer must pay the 
applicable service fee and complete all paperwork in accordance with 
NAP requirements for the next two crops. Producers who fail to agree 
with these requirements or fail to obtain the correct acreage as 
required will be required to refund the assistance provided under this 
rule, plus interest.
    Applications for 2003, 2004 or 2005 CDP (including applications 
under the Virginia and North Carolina special loss provisions) must be 
submitted during the sign-up period as announced by the Deputy 
Administrator. False certifications by producers carry strict penalties 
and FSA will validate applications with random spot-checks of acreage 
and production evidence.
    The 2004 Act provides that persons who received payment under the 
special Florida Disaster Program operated by USDA are not eligible 
under this new 2003-2005 Crop Disaster Program. A payment limitation of 
$80,000 per ``person,'' as defined by part 1400 of this chapter, will 
be applicable to the total, for each crop year, of all 2003, 2004 and 
2005 CDP benefits (including assistance under the special provisions 
for Virginia and North Carolina crops). As provided in the 2004 Act, 
unlike disaster programs in the past, the average adjusted gross income 
(AGI) limitation as administered under 7 CFR part 1400, subpart G, will 
apply rather than a gross revenue test Under the AGI test, producers 
will not be eligible for 2003, 2004 or 2005 CDP benefits, or benefits 
under the Virginia and North Carolina crop-loss provisions, if the 
average AGI of the individual or entity exceeds $2.5 million and less 
than 75 percent of the average AGI is derived from farming, ranching, 
or forestry operations. AGI eligibility will be based on the average of 
the adjusted gross incomes for the three tax years immediately 
preceding the tax year in which the disasters occurred, with the 
exclusion of any

[[Page 15726]]

year(s) the individual or entity, as determined under part 1400, did 
not have income or had an AGI of zero. Other restrictions apply. Crop 
losses that are not weather-related are not covered.

Cost-Benefit Analysis Summary

    Payments for RMA-insured crops will be made at 65 percent of the 
price for insured and uninsurable crops, and at 60 percent of the price 
for uninsured crops. Payments for insured crops will be made at a 
slightly higher rate to provide an incentive to purchase crop 
insurance. Payments for non-insurable crops will also be made at the 
higher level because insurance is not available for these crops. Crop 
losses under the 2003, 2004 and 2005 CDP are expected to be about $2.75 
billion. Crop losses under the Virginia and North Carolina provision 
are expected to be $53 million. The $80,000 payment limitation and the 
$2.5 million AGI limitation will direct the distribution of payments 
more toward relatively smaller operations. In the absence of any 
limitations of payment and income applied, large operations would 
account for a disproportionate share of the crop-loss assistance.

SUPPLEMENTARY INFORMATION: 

Notice and Comment

    Section 101(g) of Division B of the 2004 Act requires that these 
regulations be promulgated 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 
notice and comment rulemaking and public participation in rulemaking. 
These regulations are thus issued as final.

Executive Order 12866

    This final rule has been determined to be economically significant 
under Executive Order 12866 and has been reviewed by the Office of 
Management and Budget (OMB). A Cost-Benefit Analysis was completed and 
is summarized following the Background section.

Federal Assistance Programs

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

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this rule 
because neither the Secretary of Agriculture nor CCC are 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.

Environmental Review

    The environmental impacts of this rule have been considered 
consistent with 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 through 1508), and regulations of the Farm 
Service Agency (FSA) of the Department of Agriculture (USDA) for 
compliance with NEPA, 7 CFR part 799. An Environmental Evaluation was 
completed and it was determined that this action does not have the 
potential to significantly impact the quality of the human environment 
and, therefore, the rule is categorically excluded from further review 
under NEPA. A copy of the environmental evaluation is available for 
inspection and review upon request.

Executive Order 12778

    The final rule has been reviewed in accordance with Executive Order 
12778. This final rule preempts State laws that are inconsistent with 
its provisions, but the rule is not retroactive. Before any judicial 
action may be brought concerning this rule, all administrative remedies 
must be exhausted.

Executive Order 12372

    This program is not subject to Executive Order 12372, which 
requires 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).

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does 
not apply to this rule because neither the Secretary of Agriculture nor 
CCC are 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. Also, the 
rule imposes no mandates as defined in UMRA.

Small Business Regulatory Enforcement Fairness Act of 1996

    Section 101(g) of Division B of the 2004 Act requires that the 
Secretary use the authority in section 808 of the Small Business 
Regulatory Enforcement Fairness Act of 1996, Pub. L. 104-121 (SBREFA), 
which allows an agency to forgo SBREFA's usual 60-day Congressional 
Review delay of the effective date of a major regulation if the agency 
finds that there is a good cause to do so. Accordingly, this rule is 
effective upon the date of filing for public inspection by the Office 
of the Federal Register.

Paperwork Reduction Act

    Section 101(g) of Division B the 2004 Act requires that these 
regulations be promulgated and the activities under this rule be 
administered without regard to the Paperwork Reduction Act. This means 
that the information to be collected from the public to implement these 
provisions and the burden, in time and money, the collection of the 
information would have on the public does not have to be approved by 
the Office of Management and Budget or be subject to the normal 
requirement for a 60-day public comment period.

Government Paperwork Elimination Act

    CCC is committed to compliance with the Government Paperwork 
Elimination Act (GPEA) and the Freedom to E-File Act, which require 
Government agencies in general, and the FSA in particular, to provide 
the public the option of submitting information or transacting business 
electronically to the maximum extent possible. Because of the need to 
publish these regulations quickly, the forms and other information 
collection activities required to be utilized by a person subject to 
this rule are not yet fully implemented in a way that would allow the 
public to conduct business with CCC electronically. Accordingly, at 
this time, all forms required to be submitted under this rule may be 
submitted to CCC by mail or FAX.

List of Subjects in 7 CFR 1479

    Agricultural commodities, Crop insurance, Disaster assistance.

0
Accordingly, 7 CFR part 1479 is added to read as follows:

PART 1479--2003-2005 CROP DISASTER PROGRAM

Sec.
1479.100 Applicability.
1479.101 Administration.
1479.102 Definitions.
1479.103 Producer eligibility.
1479.104 Time for filing application.
1479.105 Limitations on payments and other benefits.
1479.106 Requirement to purchase crop insurance and non-insurable 
coverage.
1479.107 Miscellaneous provisions.
1479.108 Additional general provisions.
1479.109 Eligible disaster conditions.
1479.110 Qualifying 2003, 2004, or 2005-crop losses.
1479.111 Rates and yields; calculating payments.
1479.112 Production losses, producer responsibility.
1479.113 Determination of production.

[[Page 15727]]

1479.114 Calculation of acreage for crop losses other than prevented 
planted.
1479.115 Calculation of prevented planted acreage.
1479.116 Quantity adjustments for diminished quality for certain 
crops.
1479.117 Value loss crops.
1479.118 Other provisions for specialty crops.
1479.119 2005 crop losses only.
1479.120 Quality losses for 2003, 2004, and 2005 crops.
1479.121 Virginia crop losses.
1479.122 North Carolina fruit and vegetable crop losses.
1479.123 Misrepresentation, and scheme or device.
1479.124 Offsets, assignments, and debt settlement.
1479.125 Compliance with highly erodible land, and wetland 
conservation provisions.

    Authority: Pub. L. 106-387, 114 Stat. 1549; Pub. L. 108-324, 118 
Stat. 1220; 15 U.S.C. 14 et seq.


Sec.  1479.100  Applicability.

    This part sets forth the terms and conditions for the 2003, 2004, 
and 2005-Crop Disaster Program (CDP). The CDP makes disaster assistance 
payments available to producers who have incurred losses in quantity or 
quality on eligible 2003, 2004, or 2005 crops due to disasters as 
determined by the Commodity Credit Corporation (CCC) under provisions 
of Division B of the Military Construction Appropriations and Emergency 
Hurricane Supplemental Appropriations Act, 2005 (Pub. L. 108-324). 
Provisions of previous crop disaster programs shall continue to be 
administered under regulations previously issued.


Sec.  1479.101  Administration.

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


Sec.  1479.102  Definitions.

    The definitions in this section apply to all determinations made 
under this part. The terms defined in part 718 of this title and parts 
1400 and 1437 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 a plan of insurance established by FCIC 
that provides coverage comparable to a level for a single crop that is 
equal to at least 65 percent of the approved yield indemnified at 100 
percent of the expected market price.
    Administrative fee means an amount the producer must pay for 
Noninsured Crop Disaster Assistance Program (NAP) enrollment for non-
insurable crops.
    Appraised production means production determined by FSA, or a 
company reinsured by the Federal Crop Insurance Corporation (FCIC), 
that was unharvested but that 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 at 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 
NAP, 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 enactment of Pub. L. 108-324 will be used 
for purposes of the 2003, 2004, or 2005 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.
    Aquaculture species means any aquaculture 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.
    CCC means the Commodity Credit Corporation.
    Control county means, for a producer with farming interests in only 
one county, the FSA county office in which the producer's farm is 
administratively located or, for a producer with farming interests that 
are administratively located in more than one county, the FSA county 
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 FCIC under 
the provisions of the Federal Crop Insurance Act, as amended.
    Crop year means:
    (1) For insured and uninsured crops, the crop year as defined 
according to the applicable crop insurance policy;
    (2) For non-insurable crops, the year harvest normally begins for 
the crop;
    (3) For all aquaculture species and nursery crops, the period from 
October 1 through the following September 30; and
    (4) For honey, 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 volcanic eruptions, or 
any combination thereof. Disaster includes a related condition that 
occurs as a result of the damaging weather and exacerbates the 
condition of the crop, such as disease and insect infestation.
    Eligible crop means a crop (except sugarcane) insured by FCIC as 
defined

[[Page 15728]]

in part 400 of this title, or included under NAP as defined under part 
1437 of this chapter. Losses of livestock and livestock related losses 
are not compensable under this part, but may be compensable under part 
1439 of this chapter to the extent provided for in that part.
    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 the Risk 
Management Agency (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 non-insurable 
crops, the final planting date is the end of the planting period for 
the crop as determined by CCC.
    Flood prevention means:
    (1) For aquaculture species, placing the aquaculture facility in an 
area not prone to flood; and
    (2) For raceways, providing devices or structures designed for the 
control of water level; and with respect to 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;
    (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:
    (1) For insured and uninsured crops, harvested as defined according 
to the applicable crop insurance policy;
    (2) For non-insurable single harvest crops, that a crop has been 
removed from the field, either by hand or mechanically, or by grazing 
of livestock;
    (3) For non-insurable 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:
    (4) For mechanically-harvested non-insurable 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.
    (1) An insured participant's yield shall be the higher of the 
county average yield listed on the crop table or the approved federal 
crop insurance APH, for the disaster year.
    (2) NAP participant's yield shall be the higher of the county 
average yield as listed on the crop table or approved NAP APH for the 
disaster year.
    (3) Participants without federal crop insurance or NAP coverage for 
the disaster year shall be assigned the county average listed on the 
crop table.
    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 Chapter IV of this title and for which the producer purchased either 
the catastrophic or buy-up level of crop insurance so available.
    Limited coverage means plans of insurance established by FCIC that 
provides coverage comparable to a level for a single crop that is equal 
to or greater than 50 percent of the approved yield indemnified at 100 
percent of the expected market price, but less than 65 percent of the 
approved yield indemnified at 100 percent of the expected market price.
    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 
grazing.
    Multiple cropping means the planting of two or more different crops 
on the same acreage for harvest within the same crop year.
    Multiple planting means the planting for harvest of the same crop 
in more than one planting period in a crop year on different acreage.
    NASS means the National Agricultural Statistics Service.
    Net crop insurance indemnity means the indemnity minus the producer 
paid premium.
    Non-insurable crop means a crop for which FCIC crop insurance was 
not available.
    Normal mortality means the percentage of dead aquaculture species 
that would normally occur during the crop year.
    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 seed bed that has been properly prepared for the planting 
method and production practice normal to the area as determined by the 
county committee.
    Prevented planting means the inability to plant an eligible crop 
with proper equipment during the planting period as a result of an 
eligible cause of loss, as determined by CCC, according to Sec.  
1479.115.

[[Page 15729]]

    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 a 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 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.
    State committee means the FSA State committee.
    Uninsured crop means a crop 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 non-insurable crops, the established unit of measure, 
if available, used for the 2003, 2004, or 2005 Noninsured Crop 
Assistance Program price and yield;
    (3) For aquaculture species, a standard unit of measure such as 
gallons, pounds, inches or pieces, established by the State committee 
for all aquaculture species or varieties;
    (4) For turf-grass 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 has the meaning assigned in part 1437 of this 
chapter.
    Verifiable production record 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.  1479.103  Producer eligibility.

    (a) Producers in the United States will be eligible to receive 
disaster benefits under this part only if they have suffered losses of 
eligible crops in 2003, 2004, or 2005, as further specified in this 
part, as a result of a disaster or related condition. Producers may not 
receive benefits with respect to volunteer stands of crops.
    (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 2003, 
2004, or 2005 crop year, as applicable, and must not otherwise be 
barred from receiving benefits under 7 CFR part 12 or any other law.


Sec.  1479.104  Time for filing application.

    Applications for benefits under the 2003, 2004, or 2005 Crop 
Disaster Program must be filed in the FSA county office in the 
producer's control county before the close of business on August 1, 
2005, or such other date that may be announced by the Deputy 
Administrator.


Sec.  1479.105  Limitations on payments and other benefits.

    (a) Except with respect to certain claims in Virginia and North 
Carolina, as specified in Sec. Sec.  1479.121 and 1479.122, a producer 
may receive disaster benefits for crop losses for only one of the 2003, 
2004, or 2005 crop years as specified under this part.
    (b) Payments will not be made under this part for grazing losses.
    (c) CCC may divide and classify crops based on loss susceptibility, 
yield, and other factors.
    (d) No person, as defined by part 1400 subpart B of this chapter, 
shall receive more than a total of $80,000 in disaster benefits under 
this part, unless otherwise specified.
    (e) No producer shall receive disaster benefits under this part in 
an amount that exceeds 95 percent of the value of the expected 
production for the relevant period as determined by CCC. The sum of the 
value of the crop not lost, if any; the disaster payment received under 
this part; and any crop insurance payment or payments received under 
the NAP for losses to the same crop, cannot exceed 95 percent of what 
the crop's value would have been if there had been no loss.
    (f) An individual or entity whose adjusted gross income is in 
excess of $2.5 million, as defined by and determined under part 1400 
subpart G of this chapter, shall not be eligible to receive disaster 
benefits under this part.
    (g) Any person who received any payments from Section 32 of the Act 
of August 25, 1935, with respect to any 2004 hurricane losses, is not 
eligible for any payments under this part.


Sec.  1479.106  Requirement to purchase crop insurance and non-
insurable coverage.

    (a) Except as provided further in this section, any producer who 
elected not

[[Page 15730]]

to purchase crop insurance on an insurable 2003, 2004, or 2005 crop for 
which the producer receives crop loss assistance or, for non-insurable 
crops, elected not to participate in NAP for the year for which 
benefits are received must purchase:
    (1) Crop insurance with additional coverage on that crop for each 
of the next 2 crop years, as applicable, for the insurable crops.
    (2) 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 non-insurable crop for each 
of the next 2 crop years, as applicable, for the non-insurable crops.
    (b) If, at the time the producer applies for the CDP and benefits 
under Sec. Sec.  1479.121 or 1479.122, the sales closing date for next 
year's insurable crops, or for the next year's non-insurable crops for 
which the producer sought benefits under this part has passed, the 
producer must purchase a crop insurance policy or obtain NAP coverage, 
as applicable, for the next available 2 crop years.
    (c) If any producer fails to purchase crop insurance or NAP, as 
required in paragraph (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.  1479.107  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 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 a result of erroneous information or a 
miscalculation, the assistance or payment shall be recalculated and any 
excess refunded to CCC with applicable interest.
    (d) The liability of any person for any penalty or sanction under 
or in connection with 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 benefits received under this part to reduce the amount of the 
judgment lien.


Sec.  1479.108  Additional general provisions.

    (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 or written agreements. For uninsured and 
non-insurable crops, basic units will be established for these 
purposes.
    (b) County average yield for loss calculations will be the average 
of the 1998 through 2002 official county yields established by CCC, 
excluding the years with the highest and lowest yields, respectively.
    (c) County committees will assign production or reduce the historic 
yield 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, 
soil type, climate, or other environmental factors, 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.
    (d) The county committee shall establish a maximum loss level that 
should reflect the amount of production producers should have produced 
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.
    (e) Assigned production or reduced yield 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.
    (f) 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) Up to and including 10 calendar days, the assigned production 
reduction will be based on one percent of the payment yield for each 
day involved;
    (2) Eleven (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 day of 
days 11 through 24 that are involved; and
    (3) Twenty-five (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.
    (4) CCC may adjust items 1 through 3 to make a comparable 
assignment for short rotation crops such as vegetables that may have a 
30-day growing period.
    (g) 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.

[[Page 15731]]

Sec.  1479.109  Eligible disaster conditions.

    (a) Except as provided in paragraphs (b) and (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 
disasters as defined in Sec.  1479.102, or:
    (1) Insect infestation as a related condition to damaging weather 
if documented by COC with published data;
    (2) Disease as a related condition to damaging weather;
    (3) Salt water intrusion of an irrigation supply;
    (4) Irrigation water rationing if proof is provided that water was 
rationed by a Government entity or water district (unless the producer 
was compensated by the Government entity or water district for a 
disaster or conservation purpose);
    (5) Lack of water supply due to drought conditions for irrigated 
crops;
    (6) Other weather-related factors as determined by the Deputy 
Administrator.
    (b) Qualifying crop losses for the 2005 crop are limited to only 
those losses caused by a hurricane or tropical storm of the 2004 
hurricane season in counties declared disaster areas by the President.
    (c) 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.


Sec.  1479.110  Qualifying 2003, 2004, or 2005-crop losses.

    (a) To receive disaster benefits under this part, the county 
committee must determine that because of an eligible disaster 
condition, the producer with respect to the 2003, 2004, or 2005 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, poor farming 
practices, or drifting herbicides as determined by the county committee 
on a case-by-case basis;
    (2) That are the result of the failure of the producer to re-seed 
or replant to the same crop in the county where it is customary to re-
seed or replant after a loss;
    (3) That are not as a result of a damaging weather or a weather 
related condition;
    (4) To crops not intended for harvest in crop year 2003, 2004, or 
2005;
    (5) To losses of by-products resulting from processing or 
harvesting a crop, such as cottonseed, 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
    (e) Loss calculations shall take into account other conditions and 
adjustments provided for in this part.


Sec.  1479.111  Rates and yields; calculating payments.

    (a)(1) Payments made under this part to a producer for a loss on a 
unit with respect to yield based crops are determined by multiplying 
the payment rate established for the crop by CCC, times the loss of 
production which exceeds 35 percent of the expected production, as 
determined by CCC, of the unit.
    (2) Payments made under this part to a producer for a loss on a 
unit with respect to value-based crops are determined by multiplying 
the payment rate established for the crop by CCC times the loss of 
value that exceeds 35 percent of the expected production value, as 
determined by CCC, of the unit.
    (3) Payments made under this part may be adjusted by CCC to reflect 
losses due to quality factors adversely affected by a disaster. For FSA 
price support loan commodities, production to count may be reduced 
using the schedule of premiums and discounts for FSA commodity loans. 
Additional quality loss adjustments may be made for single market 
crops, using a 20 percent quality loss threshold. The quality loss 
threshold may be determined by multiplying: 65 percent of the affected 
quantity, times 65 percent of the result of subtracting: the value of 
the crop due to the effects of the disaster, as determined by CCC, from 
the value of the crop if it had not been affected by the disaster, as 
determined by CCC. Quality adjustments for multiple market crops sold 
to a lower priced market as a result of poor quality will be determined 
by using the difference between the average market price for the 
intended use and the average market price for the actual use, as 
determined by CCC.
    (b) Payment rates for 2003, 2004, or 2005 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 non-insurable crops; 
and
    (3) 60 percent of the maximum established RMA price for uninsured 
crops.
    (c) Except as provided elsewhere in this part, disaster benefits 
under this part for losses to crops shall be paid 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.
    (d) 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.

[[Page 15732]]

    (e) 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.
    (f) 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.
    (g) 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.


Sec.  1479.112  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.


Sec.  1479.113  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 does not receive compensation based upon the 
quantity of the commodity delivered to a purchaser, but has an 
agreement or contract for guaranteed payment for production, for 
purposes of determination 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 was 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 peanuts, the actual production shall be all peanuts 
harvested for nuts, regardless of their disposition or use, as adjusted 
for low quality.
    (k) 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.  1479.114  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

[[Page 15733]]

may be considered separate crops for 2003, 2004, or 2005 CDP if the 
county committee determines that all of the following conditions are 
met:
    (1) Both the initial and subsequent planted crops were planted with 
the 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 State Committee as 
eligible multiple-cropping practices in accordance with procedures 
approved by the Deputy Administrator; and
    (2) The farm containing the multiple-cropped acreage has a history 
of successful 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 paragraphs (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.  1479.115  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:
    (1) Prevented other producers from planting on acreage with similar 
characteristics in the surrounding area; and
    (2) Occurred after the previous planting period for the crop.
    (3) 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, turf grass 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 CCC or 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 
producing at least 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 in the same crop year 
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.  1479.114.
    (g)(1) 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 was prevented 
from being planted had insufficient soil moisture for germination of 
seed and progress toward crop maturity because of a prolonged period of 
dry weather;
    (2) Verifiable information collected by sources whose business or 
purpose to record weather conditions, including but not limited to the 
local weather reporting stations of the U.S. 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 non-insurable crops and the insured crops 
listed in

[[Page 15734]]

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 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 4 crop years previous to the 
disaster year 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.  1479.116  Quantity adjustments for diminished quality for certain 
crops.

    (a) For the crops identified in paragraph (b) of this section, 
subject to this 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 as CCC determines 
acceptable.
    (c) The producer must submit verifiable documentation for 
determining the grade and other discount factors that were applied to 
the crop.
    (d) Quality adjustments will be applied to crops experiencing at 
least a 20 percent loss 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 CCC 
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 2003, 2004, and 2005 peanuts, quality adjustments shall be 
based on the difference between the actual sales price, or other 
proceeds, received and the price announced by CCC under section 1421.10 
of part 1421 of this chapter, by type of peanut for the applicable crop 
year.
    (i) 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 2003, 2004, or 2005 crop 
year. These quality adjustments are built into the production loss 
determination. Production determinations from Federal crop insurance 
will not be used.
    (j) 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, affected production 
will be adjusted to zero. Any value received will be considered 
salvage.
    (k) Quality adjustments for sugar beets shall be based on sugar 
content. The actual production for the producer shall be adjusted 
upward or downward to account for sugar content as determined by CCC.
    (l) Quality adjustments for tobacco in crops years 2003, 2004, or 
2005 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 there is no support price, or where market 
prices normally exceed the support price.
    (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.  1479.117, value loss 
crops.
    (o) Quantity adjustments for diminished quality shall also not 
apply under this section to: honey, maple sap, turf-grass 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.  1479.117  Value loss crops.

    (a) Irrespective of any inconsistent provisions in other sections, 
this section shall apply to the following crops, which are 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. CDP benefits 
shall not be available for aquacultural species that are growing 
naturally in the aquaculture facility. 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

[[Page 15735]]

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 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 on 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, and 
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 is 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.  1479.118  Other provisions for specialty crops.

    (a) For turf-grass sod, disaster benefits under this part are 
limited to turf grass sod that would have matured and been harvested 
during 2003, 2004, or 2005, 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.  1479.119  2005-crop losses only.

    (a) Producers may be eligible for assistance under this part for 
2005 crop losses in counties declared Presidential disaster areas due 
only to a hurricane or tropical storm that occurred during the 2004 
hurricane season June 1 through November 30, 2004, as defined by the 
National Oceanic and Atmospheric Administration.
    (b) All provisions of this part including linkage, AGI, 
conservation compliance, 95% payment cap and $80,000 payment limitation 
are applicable to such 2005-crop claims.
    (c) Persons that received assistance under section 32 of the Act of 
August 25, 1935 for losses due to Hurricanes Charley, Frances and/or 
Jeanne are not eligible for assistance under this provision.


Sec.  1479.120  Quality losses for 2003, 2004, and 2005 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 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 2003, 2004, 
and 2005 crop disaster assistance under this part, and will apply to 
crop production that has a reduced economic value due to the reduction 
in quality.
    (d) Persons may not be compensated under this section to the extent 
that such producers have received assistance under Sec.  1479.116 
through Sec.  1479.118, or other provisions of this part, attributable 
in whole or in part to diminished quality.


Sec.  1479.121  Virginia crop losses.

    (a) In addition to CDP benefits for 2004, or 2005, producers with 
crop losses located in the Commonwealth of Virginia may be eligible for 
disaster assistance for crop losses that resulted from hurricanes, 
tropical storms, and other weather related disasters that occurred 
during the calendar year 2003 only.
    (b) $50 million will be available for such disaster assistance 
until expended.
    (c) All provisions of this part limiting payments, including crop 
insurance and NAP purchase requirements, adjusted gross income 
provisions, conservation compliance, 95% payment cap related it 
expected revenue, and the $80,000 per person per year payment 
limitation are applicable to assistance received under this section.


Sec.  1479.122  North Carolina fruit and vegetable crop losses.

    (a) In addition to CDP benefits for 2004 or 2005, but not both, 
producers with fruit and vegetable losses located in the State of North 
Carolina may be eligible for disaster assistance for these crop losses 
that resulted from hurricanes, tropical storms, and other weather 
related disasters that occurred during the 2003 calendar year only.
    (b) $3 million will be available for such additional disaster 
assistance until expended.
    (c) All provisions of this part limiting payments, including crop 
insurance and NAP purchase requirements, adjusted gross income 
provisions, conservation compliance, 95% payment cap related to 
expected revenue, and the $80,000 per person payment limitation, are 
applicable to assistance received under this section.

[[Page 15736]]

Sec.  1479.123  Misrepresentation, and scheme or device.

    (a) A producer who is determined to have erroneously represented 
any fact affecting a program determination made in accordance with this 
part shall not be entitled to disaster payments and must refund all 
such payments received, plus interest as determined in accordance with 
part 1403 of this chapter.
    (b) A producer shall refund to CCC all disaster payments, plus 
interest as determined in accordance with part 1403 of this chapter, 
received by such producer with respect to all applications under this 
part if the producer is determined to have knowingly done any of the 
following:
    (1) Adopted any scheme or device that tends to defeat the purpose 
of the program;
    (2) Made any fraudulent representation; or
    (3) Misrepresented any fact affecting a program determination.


Sec.  1479.124  Offsets, assignments, and debt settlement.

    (a) Except as provided in paragraph (b) of this section, 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, in favor of the owner or 
any other creditor except agencies of the U.S. Government. The 
regulations governing offsets and withholdings found at part 1403 of 
this chapter apply to any payments made under this part.
    (b) Any producer entitled to any payment may assign any payments in 
accordance with regulations governing the assignment of payments found 
at part 1404 of this chapter.
    (c) A debt or claim may be settled according to part 1403 of this 
chapter.


Sec.  1479.125  Compliance with highly erodible land and wetland 
conservation provisions.

    (a) The highly erodible land and wetland conservation provisions of 
part 12 of this title apply to the receipt of disaster assistance for 
2003, 2004, and 2005 crop losses made available under this authority.
    (b) All eligible producers must be in compliance with the highly 
erodible land and wetland conservation compliance provisions for the 
year(s) for which disaster assistance is requested.

    Signed in Washington, DC March 23, 2005.
Thomas B. Hofeller,
Acting Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 05-6080 Filed 3-28-05; 8:45 am]
BILLING CODE 3410-05-P