[Federal Register Volume 76, Number 50 (Tuesday, March 15, 2011)]
[Notices]
[Pages 13973-13974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5973]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency


United States Warehouse Act; Processed Agricultural Products 
Licensing Agreement

AGENCY: Farm Service Agency, USDA.

ACTION: Notice and request for comments.

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SUMMARY: The Farm Service Agency (FSA) proposes adding processed 
agricultural products to the agricultural products for which warehouse 
licenses may be issued under the United States Warehouse Act (USWA). 
Through this notice, FSA is providing an opportunity for anyone to 
provide comments on this proposal to offer a license for the processed 
agricultural products that are stored in climate controlled, cooler, 
and freezer warehouses. An example of a processed agricultural product 
is apple juice concentrate. In the past, USDA has issued USWA licenses 
for syrup or sirup, dried fruit, canned foods, cold-pack fruit, seeds, 
and cherries-in-brine. Current USWA licenses for agricultural products 
include grain, cotton, nuts, cottonseed, and dry beans. Warehouse 
operators voluntarily agree to be licensed, observe the rules for 
licensing, and pay associated user fees.

DATES: We will consider comments that we receive by April 14, 2011.

ADDRESSES: We invite you to submit comments on this notice. In your 
comment, include volume, date, and page number of this issue of the 
Federal

[[Page 13974]]

Register. You may submit comments by any of the following methods:
     E-mail address: Send comments to: [email protected].
     Mail: Patricia Barrett, Warehouse Operations Program 
Manager, FSA, United States Department of Agriculture, Mail Stop 0553, 
1400 Independence Ave, SW., Washington, DC 20250-0553.
     Fax: (202) 690-3123.
    Persons with disabilities who require alternative means for 
communication (Braille, large print, audiotape, etc.) for this 
information should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD).

FOR FURTHER INFORMATION CONTACT: Patricia Barrett, (202) 720-3877.

SUPPLEMENTARY INFORMATION:
    USWA (7 U.S.C. 241-256) authorizes the Secretary of Agriculture to 
license warehouse operators who store agricultural products; FSA 
administers this authority.
    USWA provides for licensing and inspection of warehouses used to 
store agricultural products, issuance of warehouse receipts, including 
electronic warehouse receipts for all agricultural products, and for 
other purposes.
    The USWA licensing program is a voluntary program that is intended 
to protect depositors of agricultural products in licensed warehouses 
(7 CFR part 735). The licensing program is based on a written agreement 
outlining the terms and conditions for a warehouse operator to qualify 
for licensing, and requirements to operate the warehouse in compliance 
with USWA and the regulations.
    USWA requires FSA to notify the public and provide the opportunity 
to comment on agricultural products that are under consideration for a 
warehouse license. FSA is proposing to create a voluntary USWA 
licensing program for processed agricultural products that are stored 
in climate controlled, cooler, and freezer warehouses. This proposal 
covers specific processed agricultural products such as apple juice 
concentrate and other similar products. This proposal is in response to 
an industry request, which is based on their need for the use of 
negotiable warehouse receipts in their business processes.
    The warehouse examination program is designed to ensure the 
warehouse operator's initial qualification for licensing and continuing 
compliance with the standards of approval and operation. FSA will 
conduct examinations of licensed facilities to determine their 
suitability for proper storage and handling of commodities. The 
examination will include review of warehouse records, pest management 
and control, housekeeping, safety, and security of goods in the care 
and custody of the licensee. The personnel conducting the examinations 
will verify that all commodities are properly marked and recorded in 
the warehouse records, and that commodities are stored in licensed 
space. Facilities must be kept and maintained in sound physical 
condition. In addition, 7 CFR 735.6 provides regulations for suspension 
and revocation of a license for those warehouse operators who do not 
comply with USWA, the regulations, or any licensing or provider 
agreement.
    FSA will review and report on the comments received on this notice. 
The notice and summary of the comments received will be posted to the 
USWA Web site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=was-ua.
    FSA is inviting you to submit comments to FSA on adding processed 
agricultural products to the list of products for which FSA issues USWA 
licenses. In particular, FSA requests comments on processed 
agricultural products in response to the following questions:
     Should FSA offer a license for processed agricultural 
products such as apple juice concentrate?
     What types of storage facilities should such a license 
include: climate controlled warehouses, refrigerated warehouses, and 
freezer warehouses?
     What operational procedures (for examples, sanitation, 
security, records, insurance, examinations) should be addressed in a 
written agreement with the warehouse operator?
     What level and type of financial assurance (bond, letter 
of credit) should be required to provide security and protection to 
depositors?
     USWA specifies that user fees are to cover the costs to 
administer this program. Therefore, what fee structure (annual flat 
rate, hourly, graduated rates based on the size of the facility) should 
be applied to fund the administration of this program?
     Should the scope of the license cover all or only certain 
agricultural processed products stored in licensed space?
    In addition to this notice, general information about FSA's 
administration of its responsibilities from USWA is available on the 
FSA Web site. Among other things, the information includes a list of 
licensed warehouses.

    Signed at Washington, DC, on March 9, 2011.
Val Dolcini,
Acting Administrator, Farm Service Agency.
[FR Doc. 2011-5973 Filed 3-14-11; 8:45 am]
BILLING CODE 3410-05-P