[Federal Register Volume 71, Number 127 (Monday, July 3, 2006)]
[Notices]
[Pages 37889-37890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10367]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

Farm Service Agency


Emergency Storage of Grain Collateral for Marketing Assistance 
Loans

AGENCY: Commodity Credit Corporation, Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) announces, for the 2006 
crops of wheat, corn, and other feed grains, the acceptance of 
collateral for marketing assistance loans, warehouse receipts issued by 
a warehouse storing such commodity in outside storage, subject to the 
conditions outlined in this notice. This notice is intended to ensure 
adequate availability of storage space at harvest for producers seeking 
warehouse-stored marketing assistance loans for grain.

DATES: Effective Date: July 3, 2006.

FOR FURTHER INFORMATION CONTACT: Howard Froehlich, Warehouse and 
Inventory Division, Farm Service Agency, United States Department of 
Agriculture, 1400 Independence Avenue, SW., STOP 0553, Washington, DC 
20250-0553, telephone (202) 720-7398, FAX (202) 690-3123, e-mail: 
[email protected]. Persons with disabilities who require 
alternative means for communication

[[Page 37890]]

for regulatory information (Braille, large print, audiotape, etc.) 
should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Background

    To be eligible for a Marketing Assistance Loan under the loan 
provisions of 7 CFR part 1421, an eligible commodity must be stored in 
approved storage, which is either on-farm storage, or an approved 
warehouse that meets the CCC standards for approval of warehouses. 
Further, in accordance with the CCC Charter Act (15 U.S.C. 714 et 
seq.), CCC enters into storage agreements with private grain and rice 
warehouse operators to provide for the storage of commodities owned by 
CCC or pledged as security to CCC for marketing assistance loans.
    To ease the demands made on approved warehouse space for the 2006 
crop, the CCC will accept as collateral for marketing assistance loans 
for corn, wheat, and other feed grains, warehouse receipts issued by a 
warehouse that is storing such commodity in outside storage if the 
warehouse has executed a Uniform Grain and Rice Storage Agreement 
(UGRSA) with CCC and if the warehouse is either:
    1. A Federally-licensed warehouse under the United States Warehouse 
Act (USWA) and is in compliance with the provisions of its USWA 
license; or
    2. For all other warehouses, the warehouse is in compliance with 
State laws allowing the outside storage of such commodities.

USWA Emergency Storage Requirements

    Warehouse operators requesting emergency storage space under the 
USWA must:
    1. Receive USWA licensing authority approval for the use of 
emergency storage space;
    2. Meet USWA's security, net worth, bonding, and insurance 
requirements as required for conventional storage space;
    3. Provide written justification that a need for emergency storage 
exists in the local area including the exact location and quantity 
requested;
    4. Meet USWA's requirement that emergency storage space be 
accessible for examination purposes;
    5. Receive USWA approval for the emergency storage space prior to 
using such space;
    6. Maintain a separate inventory record of all grain stored in 
emergency storage space as well as account for such grain in the Daily 
Position Record;
    7. Agree that all emergency storage space will be deleted from the 
license no later than March 31, 2007; and
    8. Emergency storage is limited to wheat, corn, and other feed 
grains unless otherwise allowed by the USWA.

Warehouse Operator's Liability

    The use of emergency storage space does not relieve warehouse 
operators of their obligations under the USWA, State licensing 
authority (as applicable), or the UGRSA. Warehouse operators are 
responsible for the quantity and quality of grain stored in emergency 
storage space to the same extent as their liability for conventional 
storage space.

    Signed at Washington, DC, June 23, 2006.
Teresa C. Lasseter,
Administrator, Farm Service Agency, and Executive Vice-President, 
Commodity Credit Corporation.
[FR Doc. E6-10367 Filed 6-30-06; 8:45 am]
BILLING CODE 3410-05-P