[Federal Register Volume 70, Number 133 (Wednesday, July 13, 2005)]
[Notices]
[Pages 40307-40309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-13751]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency


Alaska Dairy Fund

AGENCY: Farm Service Agency, USDA.

ACTION: Notice of Funds Availability (NOFA).

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SUMMARY: This Notice announces the availability of funds to be applied 
to accounts of Alaska dairy farmers. As provided by the Emergency 
Supplemental Appropriations Act for Defense, the Global War on Terror, 
and Tsunami Relief, 2005 (2005 Emergency Supplemental Act) (Pub. L. 
109-13) $1 million made available by section 786 of the Agriculture, 
Rural Development, Food and Drug Administration and Related Agencies 
Appropriations (2005 Appropriations Act)(Pub. L. 108-447) may be 
applied to accounts of Alaska dairy farmers owed to the Secretary.

FOR FURTHER INFORMATION CONTACT: Michael Cumpton, Senior Loan Officer, 
USDA/FSA/DAFLP/STOP 0523, 1400 Independence Avenue, SW., Washington, DC 
20250-0523; telephone (202) 690-4014; facsimile (202) 690-0949; 
electronic mail: [email protected].

SUPPLEMENTARY INFORMATION:

General Information

    Section 751 of the Agriculture, Rural Development, Food and Drug 
Administration and Related Agencies Appropriation Act, 2003 (Pub. L. 
108-7), enacted February 20, 2003, authorized loans and grants to 
expand the State of Alaska's dairy industry and related milk processing 
and packaging facilities in Fiscal Years 2003 through 2007. Section 786 
of the 2005 Appropriations Act enacted December 8, 2004, appropriated 
$1 million for that purpose. Section 5104 of the 2005 Emergency 
Supplemental Act enacted May 11, 2005, authorized the Agency to apply 
those funds to the accounts of Alaska dairy farmers owed to the 
Secretary of Agriculture.
    This notice announces that the Farm Service Agency (FSA) is making 
$1 million available to established dairy farms in Alaska currently 
indebted on FSA Farm Loan Programs (FLP) loans that have been in 
continuous commercial milk production for at least the last three full 
calendar years and continued to produce milk to sell

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commercially on May 11, 2005 (the date of enactment of the authorizing 
legislation). The funds will be distributed pro rata based on the total 
production of each operation over the last three calendar years.
    These funds will be applied to eligible borrower accounts without 
execution of additional debt or security instruments.

I. Definitions

    Agency or FSA is the Farm Service Agency, its employees, and any 
successor agency.
    Entity is a corporation, partnership, joint operation, trust, 
limited liability company, or cooperative.
    Eligible farmer is an individual or entity who is an established 
dairy farmer in the State of Alaska and is indebted to the Secretary of 
Agriculture through the Farm Loan Programs of the Farm Service Agency.
    Established dairy farmer is an individual or entity who has been 
continuously producing and selling milk commercially for three or more 
calendar years (including 2002-2004) and continued to produce milk to 
sell commercially on May 11, 2005.

II. Eligibility Requirement

    Recipients must be eligible farmers as defined above.

III. Notification of Eligible Farmers

    (a) Within 10 days after publication of this notice, the Agency 
will request, by first class mail, and in person or by phone, that 
eligible farmers execute:
    (1) A consent to the release of information (unless the Agency 
already has such a consent) for the Agency to obtain from commercial 
milk buyers the eligible farmer's production for the past three full 
calendar years (2002, 2003, and 2004), and
    (2) The Alaska Dairy Fund Certification (ADFC), contained in 
Exhibit 1 of this notice, certifying that they:
    (i) Meet the definition of an established dairy farmer;
    (ii) Agree to accept the funds; and
    (iii) Are aware of possible future tax consequences of accepting 
the funds.
    (b) Eligible farmers who do not execute and deliver to FSA the 
consent (unless there is already a release on file) and the ADFC within 
30 days of notification by the Agency will not be included in the 
calculations or distribution of funds.

IV. Distribution of Funds

    Funds will be distributed among eligible farmers based on their 
proportion of total milk production sold commercially by all eligible 
farmers during the three full calendar years 2002, 2003, and 2004. 
Payments will be limited to the amount of the borrower's FLP debt.
    The following example, using three farms, illustrates the payment 
calculation process:
    Example:

------------------------------------------------------------------------
                                                     cwt.
------------------------------------------------------------------------
Total Three Year Production:
  Eligible Farmer 1........                             150,000
  Eligible Farmer 2........                              90,000
  Eligible Farmer 3........                              40,000
                                     -----------------------------------
    Total Production................                             280,000
Percentage of Total Production:
  Eligible Farmer 1........          150,000 / 280,000 = 53.57%
  Eligible Farmer 2........           90,000 / 280,000 = 32.14%
  Eligible Farmer 3........           40,000 / 280,000 = 14.29%
                                     -----------------------------------
                                                                    100%
Payment:
  Eligible Farmer 1........       53.57% x 1,000,000 = $535,700
  Eligible Farmer 2........       32.14% x 1,000,000 = $321,400
  Eligible Farmer 3........       14.29% x 1,000,000 = $142,900
                                     -----------------------------------
                                                              $1,000,000
------------------------------------------------------------------------

    If the calculations show that a farmer's payment would be greater 
than the farmer's FLP debt, the payment will be set equal to the debt 
and the excess entered into new calculations as shown above, but 
excluding that farmer, to be distributed among the remaining eligible 
farmers.

V. Processing and Application of Funds

    (a) When all production amounts have been obtained, the State 
Executive Director (SED), Alaska, with concurrence of the Deputy 
Administrator for Farm Loan Programs, will make the calculations 
required by this Notice. Exhibit 2 will then be used to notify the 
borrowers of:
    (i) Their total production reported to the Agency;
    (ii) The total projected amount that they are to receive;
    (iii) That 80 percent of the total projected amount they are to 
receive will be applied to their accounts immediately; and
    (iv) Their right to appeal to the National Appeals Division, USDA.
    (b) After the exhaustion of all appeal rights, the State Executive 
Director (SED), Alaska, with concurrence of the Deputy Administrator 
for Farm Loan Programs, will make any additional calculations required 
and notify the eligible farmer and the Agency's Finance Office of the 
remaining amount that will be applied to their account.
    (c) The Agency's Finance Office will apply the funds first to any 
eligible farmer's FSA FLP delinquency and then as extra payments 
according to 7 CFR part 1951, subpart A.
    (d) The record of SED calculations will be retained and filed in 
the State Office.

Paperwork Reduction Act

    A request for clearance of the information collections associated 
with this notice has not been submitted to the Office of Management and 
Budget (OMB) under 5 CFR 1320.3(c) because the collection of 
information required for the disbursal of the funds will affect less 
than ten persons.

Environmental Compliance

    The environmental impacts of this notice have been considered in 
accordance with the provisions of the National Environmental Policy Act 
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and the FSA 
regulations for compliance with NEPA, 7 CFR parts 799, and 1940, 
subpart G. FSA completed an environmental evaluation

[[Page 40309]]

and concluded the notice requires no further environmental review as 
funds will be applied against existing debt and no additional funds are 
being advanced for production or expansion. No extraordinary 
circumstances or other unforeseeable factors exist which would require 
preparation of an environmental assessment or environmental impact 
statement. A copy of the environmental evaluation is available for 
inspection and review upon request.

    Signed at Washington, DC, on June 30, 2005.
James R. Little,
Administrator, Farm Service Agency.

Exhibit 1--Alaska Dairy Fund Certification

    I ---------- hereby certify that I (or my entity which I have 
the authority to represent) meet the definition of an eligible 
farmer, as shown below, and will accept proceeds made available by 
the Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Tsunami Relief, 2005, according to FSA 
calculations up to the total amount of my FSA Farm Loan Programs 
debt:
    Definitions:
    Eligible farmer is an individual or entity who is an established 
dairy farmer in the State of Alaska and is indebted to the Secretary 
of Agriculture through the Farm Loan Programs of the Farm Service 
Agency.
    Established dairy farmer is an individual or entity who has been 
continuously producing and selling milk commercially for three or 
more full calendar years (including 2002-2004) and continued to 
produce milk to sell commercially on May 11, 2005.
    I further certify that I am aware that there could be tax 
consequences if I accept these funds and may consult a tax 
professional or the IRS if I have any questions regarding these 
consequences.

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Signature

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Signature

Exhibit 2--Notification of 2005 Alaska Dairy Fund Production Records

    Dear (Borrower's Name): Pursuant to Section 5104 of the 
Emergency Supplemental Appropriations Act for Defense, the Global 
War on Terror, and Tsunami Relief, 2005 (Pub. L. 109-13), and the 
Notice of Funding Availability implementing that law, the Farm 
Service Agency has determined the distribution of funds from the 
Alaska Dairy Fund.
    All records available to the FSA indicate that your milk 
production sold commercially from January 1, 2002 to December 31, 
2004 was --------. Using this as a basis for calculation, your share 
of the 2005 Alaska Dairy fund would be approximately $--------. This 
is an estimated projection only. Any correction in the production 
amounts used for receipt of these funds could change this amount. 
Therefore, at this time, 80 percent of this amount, or $--------, 
will immediately be applied to your FSA Farm Loan Program account.
    You have 30 days from receipt of this notice to appeal if you 
believe that FSA's decision is incorrect. Information on how to 
appeal is included with this notification. At the conclusion of the 
appeal period for all eligible farmers, the remaining balance, as 
calculated by FSA, will be applied to your account.
    Funds first will be applied toward any FLP delinquency and then 
as an extra payment on your account. Please consult with your FSA 
Office regarding any changes to your future payment schedule.
    If you have any questions, please contact the Alaska State FSA 
Office at (907)761-7738.

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Sincerely,


State Executive Director
Alaska Farm Service Agency

[FR Doc. 05-13751 Filed 7-12-05; 8:45 am]
BILLING CODE 3410-05-P