[Federal Register Volume 72, Number 91 (Friday, May 11, 2007)]
[Notices]
[Pages 26772-26774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9121]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Emergency and Temporary Storage of Agricultural Commodities

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) is taking actions to 
ensure adequate availability of commercial warehouse storage space for 
the 2007 crops and for producers seeking warehouse-stored marketing 
assistance loans for eligible commodities. CCC is announcing 
authorization, under certain conditions, of emergency and temporary 
storage for the 2007 crops of wheat, corn, sorghum and feed grains, and 
temporary storage for the 2007 crops of soybeans, rice and other 
commodities deemed storable by CCC. The authorizations include 
agricultural commodities stored by

[[Page 26773]]

warehouse operators licensed under the U.S. Warehouse Act (USWA) and 
those warehouse operators who store commodities pledged as collateral 
for Commodity Credit Corporation (CCC) marketing assistance loans and 
issue warehouse receipts for such commodities in emergency or temporary 
storage.

EFFECTIVE DATE: May 11, 2007.

FOR FURTHER INFORMATION CONTACT: Roger Hinkle, Warehouse and Inventory 
Division, Farm Service Agency, United States Department of Agriculture, 
1400 Independence Avenue, SW., STOP 0553, Washington, DC 20250-0553, 
telephone (202) 720-7433, FAX (202) 690-3123, e-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

    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 commercial 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 2007 crops, CCC will 
accept as collateral for marketing assistance loans the emergency and 
temporary storage of wheat, corn, sorghum and feed grains and temporary 
storage of soybeans, rice and other commodities deemed storable by CCC 
for which warehouse receipts are issued by a warehouse operator that is 
storing such commodity in emergency or temporary storage if the 
warehouse has executed a storage agreement with CCC and if the 
warehouse is either:
    1. A federally-licensed warehouse under the USWA and is in 
compliance with the provisions of its USWA license; or
    2. For all other warehouses, the warehouse operator is in 
compliance with State laws allowing emergency or temporary storage of 
such commodities.

USWA Emergency Storage Requirements

    Emergency storage is limited to wheat, corn, sorghum and feed 
grains unless otherwise allowed by the USWA. The warehouse operator may 
use such space from the time of initial licensing until March 31, 2008. 
Emergency storage space must be operated in conjunction with a USWA-
licensed warehouse. In addition, warehouse operators requesting 
emergency storage space under the USWA must:
    1. Receive USWA's authorization for the use of emergency storage 
space;
    2. Meet all USWA 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, kind of 
commodity and quantity requested;
    4. Meet USWA's requirement that emergency storage space be 
accessible for examination purposes;
    5. Receive USWA authorization for the emergency storage space prior 
to using such space;
    6. Maintain a separate inventory record of all commodities stored 
in emergency storage space, as well as accounting for such commodities 
in their Daily Position Record (DPR);
    7. Agree that all emergency storage space will be deleted from the 
license no later than March 31, 2008;
    8. Agree to move all commodities stored in emergency storage space 
into licensed space by that date;
    9. Notify USWA in writing when commodities are moved into licensed 
space; and
    10. If the warehouse chooses to continue using the emergency 
storage space for company-owned commodities after that date, the 
warehouse operator shall:
     Remove that quantity of the commodity from the warehouse's 
official records,
     Not use the commodity to cover the storage or warehouse 
receipted obligations of the warehouse, and
     Agree that the quantity will not be included in any 
warehouse examination conducted by CCC.

USWA Temporary Storage Requirements

    The warehouse operator may use such space from the time of initial 
licensing until March 31, 2008, for soybeans, rice and other 
commodities deemed storable by CCC and until July 1, 2008, for wheat, 
corn, sorghum and feed grains. Temporary storage structures must be 
operated in conjunction with a USWA-licensed warehouse. In addition:
    1. 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 CCC, must be provided;
    5. Receive USWA's authorization for the use of temporary storage;
    6. Meet all USWA security, net worth, bonding, and insurance 
requirements as required for conventional storage space;
    7. Warehouse operators must maintain a separate record of all 
commodities stored in temporary storage space and must account for such 
commodities in their DPR;
    8. Agree to move all commodities stored in temporary storage space 
into licensed space by its respective final date;
    9. Notify USWA in writing when commodities are moved into licensed 
space; and
    10. If the warehouse chooses to continue using the temporary 
storage space for company-owned commodities after that date, the 
warehouse operator shall:
     Remove that quantity of the commodity from the warehouse's 
official records,
     Not use the commodity to cover the storage or warehouse 
receipted obligations of the warehouse, and
     Agree that the quantity will not be included in any 
warehouse examination conducted by CCC.

Application for Emergency and Temporary Storage

    USWA licensees should direct questions regarding the use of 
emergency or temporary 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].
    All other warehouse operators should direct questions regarding the 
use of emergency or temporary storage to the Chief of the Storage 
Contract Branch, Bulk Commodities Division, Kansas City Commodity 
Office--MAIL STOP 8748, PO Box 419205, Kansas City, Missouri 64141-
6205, Telephone: (816) 926-6446--Facsimile: (816) 926-1426 or (816) 
823-1804; E-mail: [email protected].

Warehouse Operator's Liability

    The authorization and licensing of emergency and temporary storage 
space does not relieve warehouse operators of their obligations under 
the USWA.

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Warehouse operators are responsible for the quantity and quality of 
commodities stored in emergency and temporary storage space to the same 
extent as their liability for licensed storage space. All commodities 
stored in emergency and temporary storage space are considered a part 
of the warehouse operator's commingled inventory.

Warehouse Security

    CCC strongly recommends that warehouse operators review their 
warehouse security plans and conduct a prudent risk assessment in 
connection with their application for emergency and 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 April 26, 2007.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-9121 Filed 5-10-07; 8:45 am]
BILLING CODE 3410-05-P