[Federal Register Volume 72, Number 185 (Tuesday, September 25, 2007)]
[Notices]
[Pages 54426-54427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-18856]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Warehouse Rates for Peanuts Pledged as Collateral for a Marketing 
Assistance Loan

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: This notice announces to the warehouse operators operating 
under a Commodity Credit Corporation (CCC) Peanut Storage Agreement on 
the uniform rates that CCC will pay for storage, handling, and other 
associated costs for 2007 crop of peanuts.

DATES: Effective Date: September 25, 2007.

FOR FURTHER INFORMATION CONTACT: Mark Overbo, Deputy Director, 
Warehouse and Inventory Division, Farm Service Agency, USDA, STOP 0553, 
1400 Independence Avenue, SW., Washington, DC 20250-0553; telephone: 
(202) 720-4647; email: [email protected]. Persons with disabilities 
who require alternative means for communication (Braille, large print, 
audiotape, etc.) should contact the USDA Target Center at (202) 720-
2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: The marketing assistance loan program for 
peanuts is authorized by the Farm Security and Rural Investment Act of 
2002 (Pub. L. 107-171) (2002 Farm Bill). Section 1307(a)(6) of the 2002 
Farm Bill (7 U.S.C. 7957(a)(6)) requires CCC to pay storage, handling, 
and other associated costs for the 2002 through 2006 crops of peanuts 
that are pledged as collateral for marketing assistance loans. This 
authority terminates beginning with the 2007 crop of peanuts.
    CCC paid storage, handling, and other associated costs for the 2002 
through 2006 crop years for peanuts that were pledged as loan 
collateral and stored in a warehouse with an approved Peanut Storage 
Agreement. The statute does not authorize CCC to pay storage, handling, 
and other associated costs when 2007-crop peanuts are pledged as 
collateral for a loan. However, rates for storage and handling (in-
elevation and load-out) must be established in the event that peanuts 
pledged as loan collateral are

[[Page 54427]]

forfeited to CCC. For peanuts forfeited to CCC, CCC will be responsible 
for storage charges beginning on the day following the loan maturity 
date. While CCC is not responsible for storage charges incurred on or 
before the loan maturity date, CCC will pay to warehouse operators any 
amount by which the loan amount was reduced because the producer failed 
to pay storage or make arrangements for storage charges through the 
loan maturity date. Additionally, while CCC is not responsible for in-
elevation charges incurred on or before the loan maturity date, CCC 
will pay to warehouse operators the CCC-approved in-elevation charge 
and collect the amount from the producer after loan forfeiture. CCC is 
not responsible for load out charges or other services such as 
inspections or grading, unless delivery is directed by CCC or such 
services are requested by CCC.
    Section 4(h) of the CCC Charter Act (15 U.S.C. 714-714p) allows CCC 
to contract for the physical handling, storage, processing, servicing, 
and transportation of the agricultural commodities subject to its 
control. The terms and conditions of the CCC Peanut Storage Agreement 
are based on the authority provided by the CCC Charter Act.
    CCC announces the following uniform rates that CCC will pay for 
storage, handling, and other associated costs for 2007-crop peanuts to 
warehouse operators with a CCC Peanut Storage Agreement:

In-Elevation

    CCC will pay $8.00 per ton in-elevation charges to the receiving 
warehouse, only in cases where CCC directs delivery of CCC-owned 
peanuts from one warehouse to another location. In cases where the 
producer did not prepay the in-elevation charges, CCC will pay the CCC-
approved in-elevation charge at a rate of $8.00 per ton to the 
warehouse operator and collect the amount from the producer after loan 
forfeiture.

Storage

    Storage amounts may be earned at the rate of $.089 per ton per day 
beginning on the day following the loan maturity date, based on a 
monthly storage rate of $2.71 per ton. CCC will also use this rate to 
pay the storage amount by which the loan amount was reduced, when 
producers fail to pay storage or make arrangements for storage charges 
through the loan maturity date.

Load-Out

    CCC will pay a load-out rate of $8.00 per ton which includes all 
items associated with loading out CCC-owned peanuts, such as weighing 
and placing peanuts aboard railcars or trucks. CCC will pay load-out 
charges only when this service is ordered by CCC.

Grading and Inspection

    CCC will pay the amount of grading and inspection fees as 
determined by the Federal-State Inspection Service, Agriculture 
Marketing Service, for CCC-owned peanuts, only when CCC requests such 
service.

Other Associated Costs

    CCC will negotiate rates on a case-by-case basis for other services 
for CCC-owned peanuts, such as cleaning, drying, or fumigation, when 
CCC requests such service.

    Signed at Washington, DC, September 20, 2007.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
 [FR Doc. E7-18856 Filed 9-24-07; 8:45 am]
BILLING CODE 3410-05-P