[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Rules and Regulations]
[Pages 72878-72884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-6154]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 760

RIN 0560-AH72


2005-2007 Livestock Compensation and Catfish Grant Programs

AGENCY: Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: This rule establishes the Farm Service Agency (FSA) 
regulations for the 2007 Emergency Agricultural Assistance. The rule 
implements legislation that provides funds for agricultural disaster 
aid for eligible producers, specifically the continuation of the 
Livestock Compensation Program (LCP) and the Catfish Grant Program 
(CGP). The programs will provide financial assistance to eligible 
livestock and catfish producers in counties designated as a major 
disaster or emergency by the President or those declared a natural 
disaster by the Secretary of Agriculture. Counties designated disasters 
by the President may be eligible even though agricultural loss was not 
covered by the designation if there has been an FSA Administrator's 
Physical Loss Notice covering such losses. The natural disaster 
declarations by the Secretary or designations by the President must 
have been issued between January 1, 2005, and February 28, 2007; that 
is after January 1, 2005, and before February 28, 2007. Counties 
contiguous to such counties will also be eligible. These programs are 
designed to provide financial assistance to producers who suffered feed 
losses due to natural disasters in the eligible counties.

DATES: This rule is effective December 19, 2007.

FOR FURTHER INFORMATION CONTACT: Salomon Ramirez, Director, Production, 
Emergencies, and Compliance Division; Farm Service Agency; United 
States Department of Agriculture, STOP 0517, 1400 Independence Avenue, 
SW., Washington, DC 20250-0517; telephone (202) 720-7641; e-mail 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    This final rule implements certain agricultural assistance 
provisions of the U.S. Troop Readiness, Veterans' Care, Katrina 
Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law 
110-28) (the 2007 Emergency Supplemental). The 2007 Emergency 
Supplemental authorizes the

[[Page 72879]]

Secretary of Agriculture (Secretary) to assist producers of livestock 
through programs administered by the Farm Service Agency (FSA).
    All counties, owners, lessees, livestock, and losses, must meet the 
eligibility criteria provided in this rule. False certifications carry 
severe ramifications. FSA will validate applications with random spot-
checks.
    A payment limitation of $80,000 per program will be applicable to 
payments made under the 2007 Emergency Supplemental. The amount of any 
payment, for which a participant is eligible under either of these 
programs, will be reduced by any amount received by the participant for 
the same or any similar loss. Other restrictions apply including, but 
not limited to, those pertaining to highly erodible land and wetland 
conservation provisions. Livestock losses that are not weather-related 
are not covered.
    The average adjusted gross income (AGI) limitation, as administered 
under 7 CFR part 1400, subpart G, will also apply. AGI eligibility will 
be based on the average of the adjusted gross incomes for the three tax 
years immediately preceding the tax year for which disaster assistance 
is being requested, with the exclusion of any year(s) the individual or 
entity did not have income or had an AGI of zero.
    Section 9002(a) of the 2007 Emergency Supplemental appropriates to 
the Secretary such sums as necessary to remain available until 
expended, to provide compensation in eligible ``disaster counties'' to 
livestock producers, including catfish producers, who, between January 
1, 2005, and February 28, 2007, that is after January 1, 2005 and 
before February 28, 2007, suffered feed losses or incurred additional 
feed costs directly resulting from natural disasters. This would 
include losses due to blizzards that started in 2006 and continued into 
January, 2007. This also means livestock producers can elect to receive 
compensation for losses in the calendar year 2007 grazing season that 
are attributable to wildfires occurring during the applicable period, 
as determined by the Secretary so long as the loss occurred before 
February 28, 2007.
    Accordingly, to be eligible for assistance under the 2005-2007 
Livestock Compensation Program (LCP) or 2005-2007 Catfish Grant Program 
(CGP), the participant must have suffered certain feed losses between 
January 1, 2005, and February 28, 2007, that is after January 1, 2005 
and before February 28, 2007. By statute, the livestock operation must 
be physically located in a county, or contiguous to that county, having 
a major disaster or emergency designated by the President or a natural 
disaster declared by the Secretary, where, in both cases, the 
declaration was made after January 1, 2005, but before February 28, 
2007. For timely Presidential declarations that do not cover 
agricultural loss, the subject counties may still be eligible if the 
county was the subject because of the same disaster of an 
Administrator's Physical Loss Notification (APLN). Livestock producers, 
including catfish producers, incurring a loss in more than one of the 
2005, 2006, and 2007 calendar years, must select only one year for 
which to receive benefits.
    The 2007 Emergency Supplemental directed the Secretary of 
Agriculture to continue the livestock compensation program established 
under subpart B of part 1416 of title 7, Code of Federal Regulations as 
announced by the Secretary on February 12, 2007 (72 FR 6443). The 
regulations in part 1416 are operated under the Commodity Credit 
Corporation. However, no appropriations were specifically made to CCC 
for LCP or CGP; rather, appropriations were made to the Secretary. 
Therefore, the programs will be continued in a similar manner to the 
existing programs, but are being established as FSA programs in 7 CFR 
part 760.
    To the greatest extent possible, however, the related regulations 
in 7 CFR part 1416, subparts A, B, and I have been duplicated in 7 CFR 
part 760 as new subparts K, L, and M. Subpart K specifies general 
provisions for the 2005-2007 LCP and CGP. These general provisions 
cover a range of requirements and information common to both programs, 
including applicability; eligible counties, disaster events, and 
disaster periods; definitions, and limitations on payments and 
benefits. Subpart L provides the provisions for the 2005-2007 LCP. 
Subpart M provides the provisions for the 2005-2007 CGP. Subparts L and 
M each provide details about the administration of the program, 
application for payment, eligible producers, and payment calculation. 
In addition, Subpart L also provides details about applicability; 
definitions; eligible livestock; application process, appeals, offsets, 
assignments, and debt settlement; recordkeeping and inspections; and 
refund liability.
    The 2007 Emergency Supplemental also contains provisions relating 
to the manner in which loss elections would be made, how sales of 
livestock during the disaster would be handled, and other eligibility 
matters. The regulations are consistent with those specifications. With 
respect to sales made specifically due to the disaster, the rules base 
payment caps on the number of animals held at the beginning date of the 
disaster period, thus avoiding a penalty for sales as a result of the 
disaster, except when livestock are normally sold before the beginning 
date of the grazing period.
    LCP will provide assistance for eligible producers (owners and cash 
lessees) of eligible livestock located in a total of 2,944 counties. 
These 2,944 counties refer to the total number of declared, designated, 
and FSA Administrator Physical Loss Notice counties, regardless of the 
number of times for which they received disaster declarations between 
January 1, 2005, and February 28, 2007, as well as counties contiguous 
to these counties. A list of eligible counties is located on the FSA 
website. For catfish payments, a cap is set that limits payments to 61 
percent of 1/6th of the cost of a normal ton of feed. Six months is the 
normal feeding period for catfish. This cap effectively limits the 
potential payment for a year's worth of feed purchases, even if for 
2007 they are all purchased in the eligible part of 2007, to 30 days 
worth of payments.

Notice and Comment

    These regulations are exempt from the notice and comment 
requirements of the Administrative Procedures Act (5 U.S.C. 553), as 
specified in section 9005 of the 2007 Emergency Supplemental, which 
requires that the regulations be promulgated and administered without 
regard to the notice and comment provisions of Section 553 of title 5, 
United States Code or of the Statement of Policy of the Secretary 
effective July 24, 1971 (36 FR 13804) relating to notices of proposed 
rulemaking and public participation in rulemaking.

Executive Order 12866

    This rule has been determined to be economically significant under 
Executive Order 12866 and has been reviewed by the Office of Management 
and Budget. A Cost-Benefit Analysis (CBA) was completed and is 
available from the contact person listed above.

Summary of Economic Impacts

    The natural disasters covered by the 2005-2007 LCP include various 
hurricanes, droughts, wildfires, and blizzards that occurred after 
January 1, 2005, but before February 28, 2007. The purpose of the 2005-
2007 LCP is to provide compensation to eligible livestock producers for 
the value of actual feed lost or certain feed costs incurred as the 
result of an eligible disaster. To be eligible for payments,

[[Page 72880]]

producers self-certify to the livestock owned or cash leased on the 
beginning date of the applicable disaster period and to their feed 
losses.
    Expected feed losses were calculated for the states that were known 
to have incurred feed losses or additional feed costs, due to droughts, 
hurricanes, blizzards, or other disasters, after January 1, 2005, but 
before February 28, 2007. Potentially, all states could have incurred 
grazing or forage losses or higher forage costs from drought that 
occurred during that time interval because nearly all rural counties in 
the United States were designated primary disaster counties because of 
drought sometime during that period, or were counties located 
contiguously to such primary counties. Covered losses include eligible, 
forage losses that may have been incurred from blizzards that occurred 
in December 2006 and January 2007 in southeastern Colorado, western 
Kansas, one county in Oklahoma, and two counties in Northeastern New 
Mexico, and from wildfires in early 2007 in the southeastern United 
States.
    Payments under the 2005-2007 LCP should provide benefits to those 
immediate communities where feed loss or increased feed cost occurred 
as a result of the disasters such as drought, hurricanes, ice storms, 
blizzards, and tornados after January 1, 2005, but before February 28, 
2007. These payments could have noticeable regional effects, 
particularly in counties severely affected by declared disasters, but 
overall, payments are not expected to have a measurable economic impact 
nationally.
    The 2005-2007 LCP authorizes assistance for eligible owners and 
cash lessees of eligible livestock located in a total of 2,944 counties 
timely declared or designated as disaster counties by the Secretary of 
Agriculture, the President, including those Presidentially declared 
counties with a qualifying FSA Administrator's Physical Loss 
Notification, plus counties contiguous to those counties so declared or 
designated counties . These counties are located in all fifty states 
and Puerto Rico. These 2,944 counties refer to the total number of 
individual counties regardless of the number of years or disasters in 
which they qualify. Qualifying declarations of designations must, to 
qualify, have been made after January 1, 2005, and before February 28, 
2007.
    The value of expected claims under the 2005-2007 LCP is estimated 
at $684 million. To the extent program payments are ultimately spent on 
forage or grain or affect the total supply of available livestock, the 
impacts of the 2005-2007 LCP on any sector of the economy, including 
livestock feed prices, livestock prices, and consumer prices, are not 
expected to be measurable. The effect on aggregate social welfare of 
any slight redistribution of wealth and income resulting from the 2005-
2007 LCP payment claims is expected to be slight. However, for those 
producers who have suffered losses due to any of several disasters that 
occurred after January 1, 2005, but before February 28, 2007, and 
qualify for payments under the 2005-2007 LCP, their farm income losses 
will be somewhat offset or reduced by these payments, and they and 
their local communities will benefit accordingly.
    The purpose of the CGP is to provide grants to states for the 
purpose of compensating catfish producers for eligible disaster-related 
feed losses that occurred after January 1, 2005, but before February 
28, 2007. The states then are to distribute the grant monies to catfish 
producers who suffered eligible feed losses. Most of the losses for 
which compensation is likely to be made are for producers located in 
Louisiana, Mississippi, and Texas, where about 59 percent of the 
nation's catfish are produced, and which bore the brunt of hurricane 
Katrina, which is believed responsible for most of the feed losses by 
catfish in these States. Producers must prove their feed losses.
    FSA estimates the expected value of the block grants necessary to 
compensate expected feed losses to be $3.7 million. The estimated $3.7 
million is calculated from maximum possible feed losses of $16.5 
million for all states. FSA believes eligible feed losses in Louisiana, 
Mississippi, and Texas could account for 30 percent of maximum possible 
losses in those states and eligible feed losses could approximate 10 
percent of maximum possible losses in the other 7 major catfish 
producing states.
    Expected grant assistance of $3.7 million should help catfish 
producers to restore their purchasing power from feed losses incurred 
by disasters (mainly hurricanes) that occurred after January 1, 2005, 
but before February 28, 2007.

Regulatory Flexibility Act

    This rule is not subject to the Regulatory Flexibility Act since 
the Farm Service Agency is not required to publish a notice of proposed 
rulemaking for this rule.

Environmental Review

    The environmental impacts of this rule have been considered in a 
manner consistent with the provisions of the National Environmental 
Policy Act (NEPA), 42 U.S.C. 4321-4347, the regulations of the Council 
on Environmental Quality (40 CFR parts 1500-1508), and the FSA 
regulations for compliance with NEPA (7 CFR part 799). The following 
final rule was determined to be Categorically Excluded because it is 
considered a ministerial action solely involving the transfer of funds 
to offset disaster related losses with no site-specific or ground-
disturbing actions occurring as a requirement or an immediate result of 
program implementation. Therefore, no environmental assessment or 
environmental impact statement will be completed for this final rule.

Executive Order 12372

    This program is not subject to Executive Order 12372, which 
requires consultation with State and local officials. See the notice 
related to 7 CFR part 3015, subpart V, published in the Federal 
Register on June 24, 1983 (48 FR 29115).

Executive Order 12612

    This rule does not have Federalism implications that warrant the 
preparation of a Federalism Assessment. This rule will not have a 
substantial direct effect on States or their political subdivisions or 
on the distribution of power and responsibilities among the various 
levels of government.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988. This final 
rule is not retroactive and it does not preempt State or local laws, 
regulations, or policies unless they present an irreconcilable conflict 
with this rule. Before any judicial action may be brought regarding the 
provisions of this rule the administrative appeal provisions of 7 CFR 
parts 11 and 780 must be exhausted.

Unfunded Mandates

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the UMRA for State, local, and tribal 
government or the private sector. Therefore, this rule is not subject 
to the requirements of sections 202 and 205 of the UMRA.

Paperwork Reduction Act

    These regulations are exempt from the requirements of the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), as specified in section 
9005(b)(3) of the 2007 Emergency Supplemental, which provides that 
these regulations, which are necessary to implement title IX of the 
2007 Emergency Supplemental, be

[[Page 72881]]

promulgated and administered without regard to the Paperwork Reduction 
Act.

E-Government Act Compliance

    FSA is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule has been determined to be Major under the Small Business 
Regulatory Enforcement Fairness Act of 1996, (Pub. L. 104-121) 
(SBREFA). SBREFA normally requires that an agency delay the effective 
date of a major rule for 60 days from the date of publication to allow 
for Congressional review. Section 808 of SBREFA allows an agency to 
make a major regulation effective immediately if the agency finds there 
is good cause to do so. Consistent with section 9005(c) of the 2007 
Emergency Supplemental, FSA finds that it would be contrary to the 
public interest to delay implementation of this rule because it would 
significantly delay assistance to the many people affected by the 
disasters addressed by this rule. Therefore, this rule is effective 
immediately.

List of Subjects in 7 CFR Part 760

    Agriculture, Disaster assistance, Fish, Livestock.

0
For the reasons explained above, 7 CFR part 760 is amended as follows:

PART 760--INDEMNITY PAYMENT PROGRAMS

0
1. Revise the authority citation for 7 CFR part 760 to read as follows:

    Authority: 7 U.S.C. 612c; Pub. L. 106-387, 114 Stat. 1549; Pub. 
L. 107-76, 115 Stat. 704; Title III, Pub. L. 109-234, 120 Stat. 474; 
16 U.S.C. 3801, note; and Title IX, Pub.L. 110-28.


0
2. Amend 7 CFR part 760 by adding new subparts K, L, and M to read as 
follows:
Subpart K--General Provisions for 2005-2007 Livestock Compensation and 
Catfish Grant Programs
Sec.
760.1000 Applicability.
760.1001 Eligible counties, disaster events, and disaster periods.
760.1002 Definitions.
760.1003 Limitations on payments and other benefits.
Subpart L--2005-2007 Livestock Compensation Program
760.1100 Applicability.
760.1101 Administration.
760.1102 Definitions.
760.1103 Eligible livestock and producers.
760.1104 Application for payment.
760.1105 Application process.
760.1106 Payment calculation.
760.1107 Appeals.
760.1108 Offsets, assignments, and debt settlement.
760.1109 Recordkeeping and inspections.
760.1110 Refunds; joint and several liability.
Subpart M--2005-2007 Catfish Grant Program
760.1200 Administration.
760.1201 Application for payment.
760.1202 Eligible producers.
760.1203 Payment calculation.

Subpart K--General Provisions for 2005-2007 Livestock Compensation 
and Catfish Grant Programs


Sec.  760.1000  Applicability.

    (a) This subpart establishes the terms and conditions under which 
the following programs will be administered under Title IX of the U.S. 
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 for participants affected by 
eligible disaster events and located in counties that are eligible as 
specified in Sec.  760.1001:
    (1) The 2005-2007 Livestock Compensation Program (2005-2007 LCP); 
and
    (2) The 2005-2007 Catfish Grant Program (2005-2007 CGP).
    (b) Farm Service Agency (FSA) funds as are necessary for the 
programs in subparts L and M of this part are available under Title IX 
of the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007.


Sec.  760.1001  Eligible counties, disaster events, and disaster 
periods.

    (a) Except as provided in this subpart, FSA will provide assistance 
under the programs listed in Sec.  760.1000 to eligible participants 
who have suffered certain losses due to eligible disaster events in 
eligible disaster counties provided in paragraph (c) of this section.
    (b) The ``Disaster Period'' is the time period in which losses 
occurred for the particular disaster that may be considered eligible 
for the programs under subparts L and M of this part. The start and end 
dates for each eligible disaster period are specified at http://disaster.fsa.usda.gov.
    (c) Eligible counties are those primary counties declared by the 
Secretary or designated for the applicable loss by the President, 
including counties contiguous to those counties, between January 1, 
2005, and February 28, 2007 (that is after January 1, 2005 and before 
February 28, 2007). The listing is provided at http://disaster.fsa.usda.gov. For counties where there was an otherwise timely 
Presidential declaration, but the declarations do not cover 
agricultural physical loss, the subject counties may still be eligible 
if the counties were the subject of an approved Administrator's 
Physical Loss Notice (APLN) when the APLN applies to a natural disaster 
timely designated by the President.


Sec.  760.1002  Definitions.

    The following definitions apply to the programs in subpart L and M 
of this part. The definitions in parts 718 and 1400 of this title also 
apply, except where they conflict with the definitions in this section.
    Commercial use means a use performed as part of the operation of a 
business activity engaged in as a means of livelihood for profit by the 
eligible producer.
    Farming operation means a business enterprise engaged in producing 
agricultural products.


Sec.  760.1003  Limitations on payments and other benefits.

    (a) A participant may receive benefits for eligible livestock feed 
losses, including additional feed costs, for only one of the 2005, 
2006, or 2007 calendar years under 2005-2007 LCP, subpart L of this 
part, or under the CGP of subpart M of this part.
    (b) As specified in Sec.  760.1106(c), the payment under the 2005-
2007 LCP may not exceed the smaller of the calculated payment in Sec.  
760.1106(a) or the value of the producer's eligible feed loss, 
increased feed costs, or forage or grazing loss.
    (c) A person may receive no more than $80,000 under 2005-2007 LCP, 
subpart L of this part. In applying the $80,000 per person payment 
limitation, regardless of whether the 2005, 2006, or 2007 calendar year 
benefits are at issue or sought, the most restrictive ``person'' 
determination for the participant in the years 2005, 2006, and 2007, 
will be used to limit benefits. The rules and definitions of part 1400 
of this title apply in construing who is a qualified separate 
``person'' for purposes of this limit. All payment eligibility 
requirements of part 1400 as they apply to any other payments, also 
apply to payments under subpart L of this part.
    (d) For payments under 2005-2007 CGP, a farming operation may 
receive no more than $80,000, except for general partnerships and joint 
ventures, in which case assistance will not exceed

[[Page 72882]]

$80,000 times the number of eligible members of the general partnership 
or joint venture. This limit must be enforced by the state government 
administering the grant program.
    (e) The provisions of part 1400, subpart G, of this title apply to 
these programs. That is the rules that limit the eligibility for 
benefits of those individuals or entities with an adjusted gross income 
greater than a certain limit will be applied in the same manner to 
payments under subparts L and M of this part.
    (f) As a condition to receive benefits under subparts L and M of 
this part, a participant must have been in compliance with the 
provisions of parts 12 and 718 of this title for the calendar year for 
which benefits are being requested and must not otherwise be precluded 
from receiving benefits under any law.
    (g) An individual or entity determined to be a foreign person under 
part 1400 of this title is not eligible to receive benefits under 
subparts L and M of this part.
    (h) In addition to limitations provided in subparts L and M of this 
part, participants cannot receive duplicate benefits under subparts L 
and M of this part for the same loss or any similar loss under:
    (1) An agricultural disaster assistance provision contained in the 
announcement of the Secretary on January 26, 2006, or August 29, 2006;
    (2) The Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006 (Pub. L. 109-234; 
120 Stat. 418); or
    (3) Any other disaster assistance program.

Subpart L-2005-2007 Livestock Compensation Program


Sec.  760.1100  Applicability.

    This subpart sets forth the terms and conditions applicable to the 
2005-2007 Livestock Compensation Program (LCP).


Sec.  760.1101  Administration.

    (a) This program is administered under the general supervision of 
the Administrator, Farm Service Agency (FSA).
    (b) FSA representatives do not have authority to modify or waive 
any of the provisions of the regulations of this subpart.
    (c) The State FSA committee must take any action required by the 
regulations of this subpart that the county FSA committee has not 
taken. The State committee must also:
    (1) Correct, or require a county committee to correct, any action 
taken by such county committee that is not in accordance with the 
regulations of this subpart; or
    (2) Require a county committee to withhold taking any action that 
is not in accordance with this subpart.
    (d) No provision or delegation to a State or county FSA committee 
will preclude the FSA Deputy Administrator for Farm Programs (Deputy 
Administrator), or a designee of such, from determining any question 
arising under the program or from reversing or modifying any 
determination made by a State or county FSA committee.
    (e) The Deputy Administrator for Farm Programs may authorize state 
and county committees to waive or modify nonstatutory deadlines or 
other program requirements in cases where lateness or failure to meet 
such does not adversely affect the operation of the program.


Sec.  760.1102  Definitions.

    The following definitions apply to this subpart.
    Adult beef bull means a male beef bovine animal that was at least 2 
years old and used for breeding purposes on the beginning date of the 
disaster period.
    Adult beef cow means a female beef bovine animal that had delivered 
one or more offspring before the disaster period. A first-time bred 
beef heifer is also considered an adult beef cow if it was pregnant on 
the beginning date of the disaster period.
    Adult buffalo and beefalo bull means a male animal of those breeds 
that was at least 2 years old and used for breeding purposes on the 
beginning date of the disaster period.
    Adult buffalo and beefalo cow means a female animal of those breeds 
that had delivered one or more offspring before the beginning date of 
the applicable disaster period. A first-time bred buffalo or beefalo 
heifer is also considered to be an adult buffalo or beefalo cow if it 
was pregnant on the beginning date of the disaster period.
    Adult dairy bull means a male dairy bovine breed animal at least 2 
years old used primarily for breeding dairy cows on the beginning date 
of the disaster period.
    Adult dairy cow means a female bovine animal used for the purpose 
of providing milk for human consumption that had delivered one or more 
offspring before the beginning date of the applicable disaster period. 
A first-time bred dairy heifer is also considered an adult dairy cow if 
it was pregnant on the beginning date of the disaster period.
    Agricultural operation means a farming operation.
    Application means the ``2005/2006/2007 Livestock Compensation 
Program'' form.
    Application period means the date established by the Deputy 
Administrator for Farm Programs for participants to apply for program 
benefits.
    Disaster period means the applicable disaster period specified in 
Sec.  760.1001.
    Equine animal means a domesticated horse, mule, or donkey.
    Goat means a domesticated, ruminant mammal of the genus Capra, 
including Angora goats.
    Non-adult beef cattle means a bovine animal that weighed 500 pounds 
or more on the beginning date of the disaster period, but does not meet 
the definition of an adult beef cow or bull.
    Non-adult buffalo/beefalo means an animal of those breeds that 
weighed 500 pounds or more on the beginning date of the disaster 
period, but does not meet the definition of an adult buffalo or beefalo 
cow or bull.
    Non-adult dairy cattle means a bovine livestock, of a breed used 
for the purpose of providing milk for human consumption, that weighed 
500 pounds or more on the beginning date of the disaster period, but 
does not meet the definition of an adult dairy cow or bull.
    Owner means one who had legal ownership of the livestock for which 
benefits are being requested under this subpart on the beginning date 
of the applicable disaster period as set forth in Sec.  760.1001.
    Poultry means a domesticated chicken, turkey, duck, or goose. 
Poultry are further delineated by sex, age and purpose of production, 
as determined by FSA.
    Sheep means a domesticated, ruminant mammal of the genus Ovis.
    Swine means a domesticated omnivorous pig, hog, and boar. Swine are 
further delineated by sex and weight as determined by FSA.


Sec.  760.1103  Eligible livestock and producers.

    (a) To be considered eligible livestock to generate benefits under 
this subpart, livestock must meet all the following conditions:
    (1) Be adult or non-adult dairy cattle, beef cattle, buffalo, 
beefalo, equine, poultry, elk, reindeer, sheep, goats, swine, or deer;
    (2) Been physically located in the eligible disaster county on the 
beginning date of the disaster period;
    (3) Been maintained for commercial use as part of the producer's 
farming operation on the beginning date of the disaster period; and
    (4) Not have been produced and maintained for reasons other than

[[Page 72883]]

commercial use as part of a farming operation. Such excluded uses 
include, but are not limited to, wild free roaming animals or animals 
used for recreational purposes, such as pleasure, roping, hunting, 
pets, or for show.
    (b) To be considered an eligible livestock producer, the 
participant's eligible livestock must have been located in the eligible 
disaster county on the beginning date of the disaster period. To be 
eligible, also, the livestock producer must have:
    (1) Owned or cash-leased eligible livestock on the beginning date 
of the disaster period (provided that if there is a cash lease, only 
the cash lessee and not the owner will be eligible); and
    (2) Suffered any of the following:
    (i) A grazing loss on eligible grazing lands physically located in 
the eligible disaster county, where the forage was damaged or destroyed 
by an eligible disaster event, and intended for use as feed for the 
participant's eligible livestock;
    (ii) A loss of feed from forage or feedstuffs physically located in 
the eligible disaster county, that was mechanically harvested and 
intended for use as feed for the participant's eligible livestock, that 
was damaged or destroyed after harvest as the result of an eligible 
disaster event;
    (iii) A loss of feed from purchased forage or feedstuffs physically 
located in the eligible disaster county, intended for use as feed for 
the participant's eligible livestock, that was damaged or destroyed by 
an eligible disaster event; or
    (iv) Increased feed costs incurred in the eligible disaster county, 
due to an eligible disaster event, to feed the participant's eligible 
livestock.
    (c) The eligible livestock categories are:
    (1) Adult beef cows or bulls;
    (2) Non-adult beef cattle;
    (3) Adult buffalo or beefalo cows or bulls;
    (4) Non-adult buffalo or beefalo;
    (5) Adult dairy cows or bulls;
    (6) Non-adult dairy cattle;
    (7) Goats;
    (8) Sheep;
    (9) Equine;
    (10) Reindeer;
    (11) Elk;
    (12) Poultry; and
    (13) Deer.
    (d) Ineligible livestock include, but are not limited to, 
livestock:
    (1) Livestock that were or would have been in a feedlot regardless 
of whether there was a disaster or where such livestock were in a 
feedlot as part of a participant's normal business operation, as 
determined by FSA;
    (2) Emus;
    (3) Yaks;
    (4) Ostriches;
    (5) Llamas;
    (6) All beef and dairy cattle, and buffalo and beefalo that weighed 
less than 500 pounds on the beginning date of the disaster period;
    (7) Any wild free roaming livestock, including horses and deer;
    (8) Livestock produced or maintained for reasons other than 
commercial use as part of a farming operation, including, but not 
limited to, livestock produced or maintained for recreational purposes, 
such as:
    (i) Roping,
    (ii) Hunting,
    (iii) Show,
    (iv) Pleasure,
    (v) Use as pets, or
    (vi) Consumption by owner.


Sec.  760.1104  Application for payment.

    (a) To apply for 2005-2007 LCP, an application and required 
supporting documentation must be submitted to the administrative county 
FSA office.
    (b) The application must be filed during the application period 
announced by the Deputy Administrator for Farm Programs.
    (c) Payments may be made for eligible losses suffered by an 
eligible livestock producer who is now a deceased individual or is a 
dissolved entity if a representative who currently has authority to 
enter into a contract, on behalf of the livestock producer, signs the 
application for payment. Legal documents showing proof of authority to 
sign for the deceased individual or dissolved entity must be provided. 
If a participant is now a dissolved general partnership or joint 
venture, all members of the general partnership or joint venture at the 
time of dissolution or their duly authorized representatives must sign 
the application for payment.
    (d) Data furnished by the participant will be used to determine 
eligibility for program benefits. Furnishing the data is voluntary; 
however, without all required data program benefits will not be 
approved or provided.
    (e) A minor child is eligible to apply for program benefits if all 
eligibility requirements are met and one of the following conditions 
exists:
    (1) The right of majority has been conferred upon the minor by 
court proceedings or statute;
    (2) A guardian has been appointed to manage the minor's property, 
and the applicable program documents are executed by the guardian; or
    (3) A bond is furnished under which a surety guarantees any loss 
incurred for which the minor would be liable had the minor been an 
adult.


Sec.  760.1105  Application process.

    (a) Participants must submit to FSA:
    (1) A completed application in accordance with Sec.  760.1104;
    (2) Adequate proof, as determined by FSA, that the feed lost:
    (i) Was for the claimed eligible livestock;
    (ii) Was lost as a direct result of an eligible disaster event 
during an eligible disaster period specified in Sec.  760.1001;
    (iii) Was lost after January 1, 2005, but before February 28, 2007; 
and
    (iv) Occurred in the calendar year for which benefits are being 
requested; and
    (3) Any other supporting documentation as determined by FSA to be 
necessary to make a determination of eligibility of the participant. 
Supporting documents include, but are not limited to: verifiable 
purchase records; veterinarian records; bank or other loan papers; 
rendering truck receipts; Federal Emergency Management Agency records; 
National Guard records; written contracts; production records; Internal 
Revenue Service records; property tax records; private insurance 
documents; sales records, and similar documents determined acceptable 
by FSA.
    (b) [Reserved]


Sec.  760.1106  Payment calculation.

    (a) Preliminary, unadjusted LCP payments are calculated for a 
producer by multiplying the national payment rate for each livestock 
category, as provided in paragraph (c) of this section, by the number 
of eligible livestock for the producer in each category. The national 
payment rate represents the cost of the amount of corn needed to 
maintain the specific livestock for 30 days, as determined by FSA. As 
provided in subpart K of this part, a producer may receive benefits for 
only one of the three program years, 2005, 2006, or 2007. The producer 
must indicate which year has been chosen. Payments are available only 
with respect to disaster-related fees losses in the period from January 
2, 2005 through February 27, 2007, in eligible counties for losses 
during the times specified for the disaster periods as specified in 
Sec.  760.1001(b).
    (b) The preliminary LCP payment calculated in accordance with 
paragraph (a) of this section:
    (1) For 2005 LCP provided for under this subpart will be reduced by 
the amount the participant received for the specific livestock under 
the Feed Indemnity Program in accordance with subpart D of this part 
and LCP for the 2005 hurricanes under subpart B of part 1416 of this 
title; and
    (2) For 2006 LCP under this subpart will be reduced by the amount 
the

[[Page 72884]]

participant received for the same or similar loss under the Livestock 
Assistance Grant Program in accordance with subpart H of this part.
    (c) Subject to such other limitations as may apply, including those 
in paragraph (b) of this section, the payment under the 2005-2007 LCP 
may not exceed for the relevant year chosen by the producer the smaller 
of either the:
    (1) Payment calculated in paragraph (a) of this section for that 
year; or
    (2) Value of the producer's eligible feed loss, increased feed 
costs, or forage or grazing loss as determined by FSA for that year.
    (d) The actual payment to the producer will be the amount provided 
for in paragraph (c) of this section subject to the adjustments and 
limits provided for in this section or in this part.


Sec.  760.1107  Appeals.

    The appeal regulations in parts 11 and 780 of this title apply to 
determinations made under this subpart.


Sec.  760.1108  Offsets, assignments, and debt settlement.

    (a) Any payment to any participant will be made without regard to 
any claim or lien against the commodity, or proceeds, in favor of the 
owner or any other creditor except agencies of the U.S. Government. The 
regulations governing offsets and withholdings in parts 792 and 1403 of 
this title apply to payments made under this subpart.
    (b) Any participant entitled to any payment may assign any payments 
in accordance with regulations governing the assignment of payments in 
part 1404 of this chapter.


Sec.  760.1109  Recordkeeping and inspections.

    Participants receiving payments under this subpart or any other 
person who furnishes information for the purposes of enabling the 
participant to receive a payment under this subpart must maintain any 
books, records, and accounts supporting that information for a minimum 
of 3 years following the end of the year during which the application 
for payment was filed. Participants receiving payments or any other 
person who furnishes the information to FSA must allow authorized 
representatives of USDA and the General Accounting Office, during 
regular business hours, and to enter upon, inspect, examine, and make 
copies of the books or records, and to inspect and verify all 
applicable livestock and acreage in which the participant has an 
interest for the purpose of confirming the accuracy of the information 
provided by or for the participant.


Sec.  760.1110  Refunds; joint and several liability.

    In the event there is a failure to comply with any term, 
requirement, or condition for payment or assistance arising under this 
subpart, and if any refund of a payment to FSA will otherwise become 
due in connection with this subpart, all payments made in regard to 
such matter must be refunded to FSA together with interest and late-
payment charges as provided for in part 792 of this title, provided 
that interest will run from the date of the disbursement of the refund 
to the producer.

Subpart M--2005-2007 Catfish Grant Program


Sec.  760.1200  Administration.

    FSA will administer a limited 2005-2007 CGP to provide assistance 
to catfish producers in eligible counties that suffered catfish feed 
and related losses between January 1, 2005, and February 28, 2007, that 
is after January 1, 2005, and before February 28, 2007. Under the 2005-
2007 CGP, FSA will provide grants to State governments in those States 
that have catfish producers that are located in eligible counties and 
that have agreed to participate in the 2005-2007 CGP. The amount of 
each grant will be based on the total value of catfish feed and related 
losses suffered in eligible counties in the subject state. Each State 
must submit a work plan providing a summary of how the State will 
implement the 2005-2007 CGP.


Sec.  760.1201  Application for payment.

    Application procedures for 2005-2007 CGP will be as determined by 
the State governments.


Sec.  760.1202  Eligible producers.

    (a) To be considered an eligible catfish producer, an participant 
must:
    (1) Raise catfish in a controlled environment and be physically 
located in an eligible county on the beginning date of the disaster 
period;
    (2) Maintain the catfish for commercial use as part of a farming 
operation;
    (3) Have a risk in production of such catfish; and
    (4) Have suffered one of the following types of losses relating to 
catfish feed as a direct result of the county's disaster event that 
occurred in that year:
    (i) Physical loss of feed that was damaged or destroyed,
    (ii) Cost to the extent allowed by FSA, associated with lost 
feeding days, or
    (iii) Cost associated with increased feed prices.
    (b) [Reserved]


Sec.  760.1203  Payment calculation.

    (a) Producers must be paid for feed losses of higher costs only for 
one of the three years, 2005, 2006, or 2007, and the loss must be for 
eligible catfish feed losses in an eligible county, as determined 
pursuant to subpart K of this part. Further, the feed loss or higher 
costs must be caused by the disaster that caused the county to qualify 
as an eligible county. The loss, moreover, to qualify for payment, must 
have occurred during the allowable time period provided in this part, 
namely the period beginning on January 2, 2005 and ending February 27, 
2007. The producer must pick the year of the benefits sought.
    (b) Subject to all adjustments and limits provided for in this part 
the amount of assistance provided to each participant from the State 
will be equal to the smaller of:
    (1) Depending on the year chosen by the producer, the value of the 
participant's 2005, 2006, or 2007 catfish feed and related losses as a 
direct result of an eligible disaster event, as determined by the State 
or
    (2) Result of multiplying:
    (i) Total tons of catfish feed purchased by the participant in 
depending on the year chosen by the producer 2005 (entire year), 2006 
(entire year), or 2007 (through February 27, 2007, only), times,
    (ii) Catfish feed payment rate for 2005, 2006, or 2007, as 
applicable, as set by FSA.
    (c) The catfish feed rate represents 61 percent of the normal cost 
of a ton of feed for a year divided by six to reflect the normal 
feeding price for catfish.

    Signed in Washington, DC, December 18, 2007.
Teresa C. Lasseter,
Administrator, Farm Service Agency.
[FR Doc. 07-6154 Filed 12-19-07; 9:03 am]
BILLING CODE 3410-05-P