[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Pages 37990-37994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15295]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2021-0007]


Notice of Funds Availability; Pandemic Livestock Indemnity 
Program (PLIP)

AGENCY: Farm Service Agency, Agriculture (USDA).

ACTION: Notification of funding availability.

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SUMMARY: The Farm Service Agency (FSA) is issuing this notice 
announcing the availability of funds for the Pandemic Livestock 
Indemnity Program (PLIP) to provide assistance to producers for losses 
of livestock and poultry depopulated from March 1, 2020, through 
December 26, 2020, due to insufficient processing access as a result of 
the COVID-19 pandemic and for the cost of depopulation and disposal. 
FSA is implementing PLIP, as authorized by the Consolidated 
Appropriations Act, 2021 (CAA).

FOR FURTHER INFORMATION CONTACT: Kimberly Graham, Director; telephone: 
(202) 720-6825; email: [email protected]. Persons with 
disabilities who require alternative means for communication should 
contact the USDA Target Center at (202)

[[Page 37991]]

720-2600 (voice) or 844-433-2774 (toll-free nationwide).

SUPPLEMENTARY INFORMATION:

Background

    FSA is implementing PLIP, as authorized by CAA (Pub. L. 116-260) 
and as directed by the USDA Secretary, to make payments to producers of 
livestock and poultry for losses of livestock or poultry depopulated 
before December 27, 2020, due to insufficient processing access, based 
on 80 percent of the fair market value of that livestock and poultry, 
and for the cost of depopulation (other than costs already compensated 
under the Environmental Quality Incentives Program (EQIP) \1\). The CAA 
also provides that the Secretary may take into consideration whether a 
producer has been compensated for the cost of depopulation under a 
State program. This assistance will be available to producers through 
PLIP as provided in this notice. FSA is administering PLIP.
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    \1\ EQIP is administered by USDA's Natural Resources 
Conservation Service according to the regulations in 7 CFR part 
1466.
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Definitions

    The definitions in parts 718 and 1400 of this title apply to PLIP, 
except as otherwise provided in this document.
    Contract grower means a person or legal entity who grows or 
produces eligible livestock under contract for or on behalf of another 
person or entity. The contract grower's income is dependent upon the 
successful production of livestock or offspring from livestock. The 
contract grower does not have ownership in the livestock and is not 
entitled to a share from sales proceeds of the livestock.
    Depopulation means, consistent with the American Veterinary Medical 
Association (AVMA) \2\ definition, the rapid destruction of a 
population of livestock or poultry due to insufficient processing 
access during the COVID-19 pandemic with as much consideration given to 
the welfare of the animals as practicable.
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    \2\ The AVMA Guidelines for the Depopulation of Animals is 
available at: https://www.avma.org/sites/default/files/resources/AVMA-Guidelines-for-the-Depopulation-of-Animals.pdf.
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    Live poultry dealer means a live poultry dealer as defined in 
section 2(a) of the Packers and Stockyards Act, 1921 (7 U.S.C. 
182(10)). Therefore, live poultry dealer means any person engaged in 
the business of obtaining live poultry by purchase or under a poultry 
growing arrangement for the purpose of either slaughtering it or 
selling it for slaughter by another, if poultry is obtained by such 
person in commerce, or if poultry obtained by such person is sold or 
shipped in commerce, or if poultry products from poultry obtained by 
such person are sold or shipped in commerce.
    Packer means a packer as defined in section 201 of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 191)). Therefore, packer means any 
person engaged in the business:
    (a) Of buying livestock in commerce for purposes of slaughter;
    (b) Of manufacturing or preparing meats or meat food products for 
sale or shipment in commerce; or
    (c) Of marketing meats, meat food products, or livestock products 
in an unmanufactured form acting as a wholesale broker, dealer, or 
distributor in commerce.
    Swine means a domesticated omnivorous pig, hog, sow, or boar. Swine 
for purposes of dividing into categories for payment calculations are 
further delineated by sex and weight, as determined by FSA.

Eligible Livestock and Poultry

    Eligible livestock and poultry include swine, chickens, and turkeys 
because FSA has determined that producers of these livestock and 
poultry types suffered losses and incurred costs for depopulation due 
to insufficient processing access during the COVID-19 pandemic. In 
addition to the eligible livestock and poultry types listed in this 
notice, the Deputy Administrator for Farm Programs may announce 
additional eligible livestock categories if FSA later determines that 
other livestock were also depopulated due to insufficient processing 
access as a result of the COVID-19 pandemic.
    Eligible livestock and poultry must have been depopulated from 
March 1, 2020, through December 26, 2020, due to insufficient 
processing access as a result of the COVID-19 pandemic in order to be 
eligible for PLIP. The livestock and poultry must have been physically 
located in the United States or a territory of the United States at the 
time of depopulation to be eligible. Eligible livestock does not 
include livestock not born, such as unborn swine that were depopulated 
during pre-farrowing.

Eligible Livestock Owners and Poultry Owners

    Eligible livestock owners and poultry owners include only persons 
or legal entities who, as of the day the eligible livestock or poultry 
was depopulated, had the legal ownership of the livestock or poultry.
    To be eligible for PLIP, a livestock or poultry owner must be any 
of the following:
    (1) Citizen of the United States;
    (2) Resident alien, which for purposes of this subpart means 
``lawful alien'' as defined in 7 CFR part 1400;
    (3) Partnership of citizens or resident aliens of the United 
States;
    (4) Corporation, limited liability company, or other organizational 
structure organized under State law solely owned by U.S. citizens or 
resident aliens; or
    (5) Indian Tribe or Tribal organization, as defined in section 4(b) 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 5304).

Ineligible Livestock Owners and Poultry Owners

    Ineligible livestock owners and poultry owners include:
    (1) Contract growers;
    (2) Federal, State and local governments, including public schools;
    (3) Live poultry dealers; and
    (4) Packers.

Application Process

    FSA will accept the applications from July 20, 2021, through 
September 17, 2021. To apply for PLIP, eligible livestock owners and 
poultry owners must submit a complete FSA-620, Pandemic Livestock 
Indemnity Program (PLIP) Application, in person, by mail, email, or 
facsimile to any FSA county office.
    Applicants must also submit all of the following items, if not 
previously filed with FSA:
     AD-2047, Customer Data Worksheet for new customers or 
existing customers needing to update their customer profile;
     Form CCC-902, Farm Operating Plan for an individual or 
legal entity as provided in 7 CFR part 1400;
     Form CCC-901, Member Information for Legal Entities (if 
applicable);
     An average adjusted gross income statement for the 2020 
program year for the person or legal entity, including the legal 
entity's members, partners, shareholders, heirs, or beneficiaries as 
provided in 7 CFR part 1400; form CCC-941 Average Adjusted Gross Income 
(AGI) Certification and Consent to Disclosure of Tax Information; and
     A highly erodible land conservation (sometimes referred to 
as HELC) and wetland conservation certification as provided in 7 CFR 
part 12 (form AD-1026 Highly Erodible Land Conservation (HELC) and 
Wetland Conservation (WC) Certification for PLIP applicant and 
applicable affiliates).

[[Page 37992]]

    Applicants must submit all required eligibility documentation 
specified above, as applicable, no later than 60 days from the date an 
applicant signs and submits the FSA-620. When the applicant does not 
timely submit the required eligibility documentation, FSA will not 
issue a payment. When the required documentation is not timely 
submitted for a member of a legal entity, FSA will reduce the payment 
based on the member's ownership share of the legal entity.
    If requested by FSA, the applicant must provide supporting 
documentation to substantiate the information on their application and 
ownership of the livestock and poultry claimed on the application. 
Examples of supporting documentation that may be requested include 
veterinarian records, feeding records, inventory records, rendering 
receipts, purchase receipts, and other records determined acceptable by 
the relevant FSA county committee. If any supporting documentation is 
requested, the documentation must be submitted to FSA within 30 days 
from the request or the application will be disapproved by FSA.

Payment

    PLIP payments compensate participants for both the loss of the 
eligible livestock or poultry and for the cost of depopulation and 
disposal. To simplify administration of PLIP, FSA has determined a 
single payment rate per head for each of the categories in the table 
below. The categories and market values are consistent with the 
categories and nationwide prices used to administer the Livestock 
Indemnity Program (LIP), 7 CFR part 1416, subpart D, for 2020. The 
estimated cost of depopulation is based on USDA's estimates of the 
average costs of common methods used to depopulate animals.\3\ The 
estimated cost of disposal is based on the costs of common disposal 
methods and rates used in EQIP. The disposal rates are weighted based 
on the number of participants paid under EQIP by disposal method. If 
additional categories are determined to be eligible after publication 
of this notice, those categories and payments rates will be announced 
by press release and outreach to stakeholders by the Deputy 
Administrator for Farm Programs.
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    \3\ Information on common methods of depopulation and associated 
costs is available from the Animal and Plant Health Inspection 
Service at https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/livestock-coordination-center/livestock-coordination-center.

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                                                                                  Depopulation &   Depopulation
                                                                   Market value    disposal cost   payment rate
                                                                     per head        per head        per head
             Eligible livestock or poultry category                  (after 80       (after 80       (after 80
                                                                      percent         percent         percent
                                                                      factor)         factor)         factor)
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Swine: Boars and sows; 451 lbs. or greater......................         $173.25          $85.32         $258.57
Swine: Sows, boars, barrows, and gilts; 251-450 lbs.............          111.74           47.13          158.88
Swine: Sows, boars, barrows, and gilts; 151-250 lbs.............           87.97           34.13          122.10
Swine: Lightweight barrows and gilts; 50-150 lbs................           68.38           20.32           88.70
Swine: Suckling nursery pigs; less than 50 lbs..................           48.81            6.50           55.31
Chickens: Chicks................................................            0.26            0.06            0.32
Chickens: Super roasters and parts; 7.76 lbs. or greater........            4.17            1.14            5.31
Chickens: Roasters; 6.26-7.75 lbs...............................            3.17            0.87            4.04
Chickens: Broilers, pullets; 4.26-6.25 lbs......................            2.50            0.68            3.18
Chickens: Pullets, Cornish hens; less than 4.26 lbs.............            1.70            0.46            2.16
Chickens: Layers................................................            3.64            1.30            4.94
Turkeys: Poults.................................................            1.33            0.82            2.15
Turkeys: Toms, fryers, and roasters.............................           12.85            2.72           15.57
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    PLIP payments will be calculated by multiplying the number of head 
of eligible livestock or poultry by the depopulation payment rate per 
head from the table above, and then subtracting the amount of any 
payments the eligible livestock owner or poultry owner has received for 
disposal of the livestock or poultry under EQIP or a State program. The 
payments will also be reduced by any Coronavirus Food Assistance 
Program 1 and 2 (CFAP 1 and 2) payments paid on the same inventory of 
swine that were depopulated.\4\ FSA will issue payments to eligible 
livestock owners and poultry owners as applications are received. PLIP 
is not subject to payment limitation.
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    \4\ The portion of the CFAP 1 payment for hogs and pigs that was 
funded under the Coronavirus Aid, Relief, and Economic Stability Act 
(CARES Act; Pub. L. 116-136) was based on inventory sold between 
January 15, 2020, and April 15, 2020; therefore, no reduction is 
necessary for that portion of the CFAP 1 payment.
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Provisions Requiring Refund to FSA

    In the event that any application for a PLIP payment resulted from 
erroneous information reported by the applicant, the payment will be 
recalculated, and the participant must refund any excess payment to FSA 
including interest to be calculated from the date of the disbursement 
to the PLIP participant. If, for whatever reason, FSA determines that 
the applicant misrepresented either the total amount or the producer's 
share of the head of livestock or poultry, the application will be 
disapproved and the participant must refund the full PLIP payment to 
FSA with interest from the date of disbursement. Any required refunds 
must be resolved in accordance with 7 CFR part 3.

Miscellaneous Provisions

    A person or legal entity, other than a joint venture or general 
partnership, is ineligible for PLIP payments if the person's or legal 
entity's average adjusted gross income (AGI), using the average of the 
adjusted gross incomes for the 2016, 2017, and 2018 tax years, exceeds 
$900,000. With respect to joint ventures and general partnerships, this 
AGI provision will be applied to members of the joint venture and 
general partnership. AGI provisions are applicable to members of a 
legal entity, including a general partnership or joint venture who are 
at or above the fourth tier of ownership in the business structure. The 
eligible livestock owner's payment will be reduced by the portion of a 
payment attributed to a member who exceeds the $900,000 AGI

[[Page 37993]]

limitation or is otherwise ineligible for payment.
    Payments will be attributed to individual persons and members of 
entities through the direct attribution process described in 7 CFR 
1400.105. An applicant that is a legal entity will be required to 
provide the names and taxpayer identification numbers of the members 
holding an ownership interest in the legal entity as described in 7 CFR 
1400.107. A reduction in payment will be applied to the payment entity 
if the fourth tier of ownership in the legal entity is that of a legal 
entity and not that of an individual person.
    If an individual or legal entity is not eligible to receive PLIP 
payments due to the individual or legal entity failing to satisfy some 
other payment eligibility provision such as AGI or conservation 
compliance provisions, the payment made either directly or indirectly 
to the individual or legal entity will be reduced to zero. The amount 
of the reduction for the direct payment to the applicant will be 
commensurate with the direct or indirect ownership interest of the 
ineligible individual or ineligible legal entity.
    General requirements that apply to other FSA-administered commodity 
programs also apply to PLIP, including compliance with the provisions 
of 7 CFR part 12, ``Highly Erodible Land and Wetland Conservation,'' 
and the provisions of 7 CFR 718.6, which address ineligibility for 
benefits for offenses involving controlled substances. Appeal 
regulations specified in 7 CFR parts 11 and 780 and equitable relief 
and finality provisions specified in 7 CFR part 718, subpart D, apply 
to determinations under PLIP. The determination of matters of general 
applicability that are not in response to, or result from, an 
individual set of facts in an individual participant's application for 
payment are not matters that can be appealed. Such matters of general 
applicability include, but are not limited to, the determination of 
payment rates and eligible livestock and poultry categories for PLIP.
    Participants are required to retain documentation in support of 
their application for 3 years after the date of approval. Participants 
receiving PLIP payments or any other person who furnishes such 
information to USDA must permit authorized representatives of USDA or 
the Government Accountability Office, during regular business hours, to 
enter the agricultural operation and to inspect, examine, and to allow 
representatives to make copies of books, records, or other items for 
the purpose of confirming the accuracy of the information provided by 
the participant.
    An applicant may file an application with an FSA county office 
after the PLIP application deadline, and in such case the application 
will be considered a request to waive the deadline. The Deputy 
Administrator has the discretion and authority to consider the case and 
waive or modify application deadlines and other requirements or program 
provisions not specified in law, in cases where the Deputy 
Administrator determines it is equitable to do so and where the Deputy 
Administrator finds that the lateness or failure to meet such other 
requirements or program provisions do not adversely affect the 
operation of PLIP. Although applicants have a right to a decision on 
whether they filed applications by the deadline or not, applicants have 
no right to a decision in response to a request to waive or modify 
deadlines or program provisions. The Deputy Administrator's refusal to 
exercise discretion to consider the request will not be considered an 
adverse decision and is, by itself, not appealable.
    Any payment under PLIP will be made without regard to questions of 
title under State law and without regard to any claim or lien. The 
regulations governing offsets in 7 CFR part 3 do not apply to payments 
made under this part.
    In either applying for or participating in PLIP, or both, the 
eligible livestock owner or poultry owner is subject to laws against 
perjury and any penalties and prosecution resulting therefrom, with 
such laws including but not limited to 18 U.S.C. 1621. If the eligible 
livestock owner or poultry owner willfully makes and represents as true 
any verbal or written declaration, certification, statement, or 
verification that the eligible livestock owner or poultry owner knows 
or believes not to be true, in the course of either applying for or 
participating in PLIP, or both, then the eligible livestock owner or 
poultry owner is guilty of perjury and, except as otherwise provided by 
law, may be fined, imprisoned for not more than 5 years, or both, 
regardless of whether the eligible livestock owner or poultry owner 
makes such verbal or written declaration, certification, statement, or 
verification within or without the United States.
    For the purposes of the effect of a lien on eligibility for Federal 
programs (28 U.S.C. 3201(e)), USDA waives the restriction on receipt of 
funds under PLIP but only as to beneficiaries who, as a condition of 
the waiver, agree to apply the PLIP payments to reduce the amount of 
the judgment lien.
    In addition to any other Federal laws that apply to PLIP, the 
following laws apply: 15 U.S.C. 714; and 18 U.S.C. 286, 287, 371, and 
1001.

Paperwork Reduction Act Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the emergency information collection request has been 
submitted to the Office of Management and Budget (OMB). OMB approved 
the 6-month emergency PLIP information collection activity. FSA will 
make payments to producers of livestock and poultry for losses of 
livestock or poultry depopulated before December 27, 2020, due to 
insufficient processing access, based on 80 percent of the fair market 
value of the livestock and poultry, and for the cost of depopulation 
(other than costs already compensated under the Environmental Quality 
Incentives Program, state funded programs, and CFAP 1 and 2 payments).

Environmental Review

    The environmental impacts 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 regulation 
for compliance with NEPA (7 CFR part 799).
    As previously stated, PLIP is providing payments to qualified 
producers of livestock and poultry for losses of livestock or poultry 
depopulated before December 27, 2020, due to insufficient processing 
access based on 80 percent of the fair market value of the livestock 
and poultry, and for the cost of depopulation. The limited 
discretionary aspects of PLIP do not have the potential to impact the 
human environment as they are administrative. Accordingly, these 
discretionary aspects are covered by the FSA Categorical Exclusions 
specified in 7 CFR 799.31(b)(6)(iii) that applies to price support 
programs and Sec.  799.31(b)(6)(vi) that applies to safety net 
programs.
    No Extraordinary Circumstances (Sec.  799.33) exist. As such, the 
implementation of PLIP and the participation in PLIP do not constitute 
major Federal actions that would significantly affect the quality of 
the human environment, individually or cumulatively. Therefore, FSA 
will not prepare an environmental assessment or environmental impact 
statement for this action and this document serves as documentation of 
the programmatic environmental compliance decision for this federal 
action.

[[Page 37994]]

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Catalog of Federal Domestic Assistance, to which this document 
applies is 10.138--Pandemic Livestock Indemnity Program.

USDA Non-Discrimination Policy

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior civil rights activity, in any program or activity conducted or 
funded by USDA (not all bases apply to all programs). Remedies and 
complaint filing deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (for example, braille, large 
print, audiotape, American Sign Language, etc.) should contact the 
responsible Agency or USDA TARGET Center at (202) 720-2600 or 844-433-
2774 (toll-free nationwide). Additionally, program information may be 
made available in languages other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and 
at any USDA office or write a letter addressed to USDA and provide in 
the letter all the information requested in the form. To request a copy 
of the complaint form, call (866) 632-9992. Submit your completed form 
or letter to USDA by mail to: U.S. Department of Agriculture, Office of 
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410 or email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2021-15295 Filed 7-16-21; 8:45 am]
BILLING CODE 3410-05-P