[Federal Register Volume 71, Number 192 (Wednesday, October 4, 2006)]
[Notices]
[Pages 58576-58577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-8490]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency


Temporary Storage for Rice and Soybean Warehouse Operators 
Licensed Under the United States Warehouse Act (USWA)

AGENCY: Farm Service Agency, USDA.

ACTION: Notice.

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SUMMARY: The Farm Service Agency (FSA) announces the conditions under 
which temporary storage space for the 2006 crops of rice and soybeans 
may be licensed under the United States Warehouse Act (USWA).

DATES: October 4, 2006.

FOR FURTHER INFORMATION: Contact Roger Hinkle, USWA Program Manager, 
USDA, Farm Service Agency, Warehouse and Inventory Division, 1400 
Independence Avenue, SW., STOP 0553, Washington, DC 20250-0553; 
telephone (202) 720-7433; electronic mail: [email protected]. 
Persons with disabilities who require alternative means for 
communication for regulatory information (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).

SUPPLEMENTARY INFORMATION:

Background

    Because the 2006 crop harvest is expected to exceed available 
commercial storage space in certain areas, FSA has taken actions to 
ensure adequate availability of storage space at harvest for producers 
seeking warehouse-stored marketing assistance loans for grain. As a 
result, FSA and the Commodity Credit Corporation published notices in 
the Federal Register on July 3, 2006 (71 FR 37889), and August 14, 2006 
(71 FR 46446), allowing USWA grain licensees to request the licensing 
of emergency and temporary storage space under the USWA (7 U.S.C. 241 
et seq.) for wheat, corn and other feed grains under certain 
conditions. Grain stored in emergency storage space must be removed no 
later than March 31, 2007, and grain stored in temporary storage space 
must be removed no later than July 1, 2007. Since the publication of 
those notices, FSA has received requests from USWA licensees to store 
rice in temporary storage space and soybeans in both emergency and 
temporary storage space.
    Because soybeans are more susceptible to weather, infestation, and 
other deteriorating conditions than bulk grains, soybeans are not 
approved for emergency storage space. FSA will allow licensing of 
temporary storage space for 2006-crop rice and soybeans under the 
following terms and conditions:

Temporary Storage Requirements

    Such space may be used from the time of initial licensing until 
March 31, 2007. Temporary storage structures must be operated in 
conjunction with a USWA-licensed warehouse. In addition:
    1. An asphalt, concrete, or other approved base material must be 
used.
    2. Rigid self-supporting sidewalls must be used.
    3. Aeration must be provided.
    4. Acceptable covering, as determined by FSA, must be provided.
    5. The Commodity must be fully insured for all losses.
    6. Warehouse operators must meet all financial and bonding 
requirements of the USWA.
    7. Warehouse operators must maintain a separate record of all rice 
and soybeans stored in temporary grain storage space and must account 
for rice and soybeans in the Daily Position Record.

Application for Temporary Rice and Soybean Storage

    USWA licensees should direct questions regarding the use of 
temporary rice and soybean storage to Terry Chapman, Chief, Licensing 
Branch, Warehouse License and Examination Division, at: Kansas City 
Commodity Office, Mail Stop 9148, P.O. Box 419205 Kansas City, MO 
64141-6205, telephone: 816-926-6474; facsimile: 816-926-1774. E-mail: 
[email protected].

Warehouse Operator's Liability

    The authorization and licensing of temporary storage space does not 
relieve warehouse operators of their obligations under the USWA. 
Warehouse operators are responsible for the quantity and quality of 
rice and soybeans stored in temporary storage space to the same extent 
as their liability for licensed storage space. All rice and soybeans 
stored in temporary storage space is considered a part of the warehouse 
operator's commingled inventory. The Department of Agriculture strongly

[[Page 58577]]

recommends that warehouse operators review their warehouse security 
plans and conduct a prudent risk assessment in connection with the 
application of temporary storage space. Warehouse operators may want to 
pay particular attention to threats that may not have been considered 
significant in the past and consider restricting access to facilities 
to authorized personnel only.

    Signed in Washington, DC, on September 29, 2006.
Teresa C. Lasseter,
Administrator, Farm Service Agency.
[FR Doc. 06-8490 Filed 9-29-06; 3:23 pm]
BILLING CODE 3410-05-P