2005 Cottonseed Payment Program, 63665-63668 [E6-18249]
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63665
Rules and Regulations
Federal Register
Vol. 71, No. 210
Tuesday, October 31, 2006
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR 1427
RIN 0560–AH63
2005 Cottonseed Payment Program
Commodity Credit
Corporation, USDA.
ACTION: Final rule.
AGENCIES:
SUMMARY: This final rule implements a
portion of the Emergency Supplemental
Appropriations Act for Defense, the
Global War on Terror, and Hurricane
Recovery of 2006 to provide assistance
to producers and first-handlers of the
2005 crop of cottonseed in counties
which were declared a natural disaster
area by the President of the United
States, and contiguous counties, due to
Hurricanes Katrina, Ophelia, Rita,
Wilma or a related condition in 2005.
DATES: This rule is effective October 31,
2006.
FOR FURTHER INFORMATION CONTACT:
Chris Kyer, phone: (202) 720–7935; email: chris.kyer@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
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Discussion of Final Rule
Section 3015(a) of Subtitle A of Title
III of Pub. L. 109–234 states, ‘‘The
Secretary shall use $15,000,000 of the
funds of the Commodity Credit
Corporation to provide assistance to
producers and first-handlers of the 2005
crop of cottonseed in hurricane-affected
counties.’’ (Title III, Subtitle A, 120 Stat.
477, June 15, 2006) (‘‘2006 Act’’). This
rule provides the Commodity Credit
Corporation (CCC) regulations for
implementation of the 2005 Cottonseed
Payment Program authorized by this
provision.
Assistance under the 2005 Cottonseed
Payment Program is provided under the
same terms and conditions, generally, as
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it was for the 2004 Cottonseed Payment
Program. However, section 3015(b)(2) of
the 2006 Act states that, for the 2005
program, funds will be distributed
‘‘* * * based on cottonseed production
during the most recent year for which a
disaster payment specifically for
cottonseed was not authorized.’’ (120
Stat. 477) The most recent year for
which a disaster payment specifically
for cottonseed was not authorized was
the 2003 cottonseed production year.
Accordingly, this rule provides that
2003 cottonseed production will be
used as a basis for payments provided
under the 2005 Cottonseed Payment
Program.
Also, as provided in section
3015(b)(2) of the 2006 Act, payment
calculations for the 2005 Cottonseed
Payment Program will differ from those
used for the 2004 Cottonseed Payment
Program. The 2004 program payments
were based upon a loss attributable to
the disaster. The 2005 Cottonseed
Payment Program shall be based solely
upon production during the most recent
year for which a disaster payment
specifically for cottonseed was not
authorized (the 2003 crop), without
requiring proof of a loss.
Another difference from the 2004
program is that this rule clarifies which
counties are eligible for assistance. This
rule clearly defines the term ‘‘hurricane
affected counties’’ for the 2005 program
as those counties designated as a
disaster area resulting from Hurricanes
Katrina, Ophelia, Rita, Wilma, or a
related condition, and contiguous
counties thereof, meaning counties
directly adjoining the primary disaster
county.
Executive Order 12866
This rule has been determined to be
‘‘Significant’’ under Executive Order
12866 and has been reviewed by the
Office of Management and Budget
(OMB).
Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule because CCC is not
required by 5 U.S.C. 553 or any other
law to publish a notice of proposed
rulemaking for the subject of this rule.
Environmental Assessment
The environmental impacts of this
rule have been considered consistent
with the provisions of the National
Environmental Policy Act of 1969
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(NEPA), 42 U.S.C. 4321 et seq., the
regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508), and FSA’s regulations for
compliance with NEOA, 7 CFR part 799.
To the extent these authorities may
apply, CCC has concluded that this rule
is categorically excluded from further
environmental review as evidenced by
the completion of an environmental
evaluation. No extraordinary
circumstances or other foreseeable
factors exist which would require
preparation of an environmental
assessment or environmental impact
statement. A copy of the environmental
evaluation is available for inspection
and review upon request.
Executive Order 12988
The rule has been reviewed in
accordance with Executive Order 12988.
This final rule preempts State laws to
the extent such laws are inconsistent
with it. This rule is not retroactive.
Before judicial action may be brought
concerning this rule, all administrative
remedies set forth at 7 CFR part 11 and
780 must be exhausted.
Executive Order 12372
This program is not subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. See the notice
related to 7 CFR part 3015, subpart V,
published at 48 FR 19115 (June 24,
1983).
Unfunded Mandates
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) does not
apply to this rule because CCC is not
required by 5 U.S.C. 553 or any other
law to publish a notice of proposed
rulemaking for the subject of this rule.
Further, this rule contains no unfunded
mandates as defined in sections 202 and
205 of UMRA.
Paperwork Reduction Act of 1995
Section 3034(b)(3) of the 2006 Act
requires that this rule be implemented
and administered without regard to the
Paperwork Reduction Act. Therefore,
the normal 60-day public comment
period and OMB approval do not apply
to the information collections required
by this rule.
E-Government Act Compliance
CCC is committed to complying with
the E-Government Act to promote the
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Federal Register / Vol. 71, No. 210 / Tuesday, October 31, 2006 / Rules and Regulations
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes. For
information pertinent to E–GOV
compliance related to this rule, please
contact the person named above under
the information contact section.
List of Subjects in 7 CFR Part 1427
Agriculture, Cottonseed.
I For the reasons set out in the
preamble, 7 CFR part 1427 is amended
as set forth below.
PART 1427—COTTON
1. The authority citation for 7 CFR
part 1427 is revised to read as follows:
I
Authority: 7 U.S.C. 7231–7236; 15 U.S.C.
714b, 714c; Pub. L. 108–324, Pub. L. 108–
447, Pub. L. 109–234.
Subpart H—2005 Cottonseed Payment
Program
I
2. Add subpart H as follows:
Subpart H—2005 Cottonseed Payment
Program
Sec.
1427.1300 Applicability.
1427.1301 Administration.
1427.1302 Definitions.
1427.1303 Eligible cottonseed.
1427.1304 Eligible applicants (first
handlers).
1427.1305 Payment application and
deadline.
1427.1306 Available funds.
1427.1307 Applicant payment quantity.
1427.1308 Total payment quantity.
1427.1309 Payment rate.
1427.1310 Payment calculation and form.
1427.1311 Liability of first handler.
§ 1427.1300
Applicability.
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(a) Subject to the availability of funds,
this subpart sets forth the terms and
conditions under which the Commodity
Credit Corporation (CCC) will provide
payments under the cottonseed payment
program for the 2005 crop year of
cottonseed. Additional terms and
conditions may be set forth in the
application or other forms which must
be executed to participate in the
cottonseed payment program.
(b) Payments shall be available only
as provided in this subpart and only
with respect to 2005 crop cottonseed in
hurricane-affected counties according to
§ 1427.1303 of this part.
§ 1427.1301
Administration.
(a) The cottonseed payment program
shall be administered by the Executive
Vice President, CCC, or a designee and
carried out by employees of the Farm
Service Agency (FSA).
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(b) Representatives and employees of
FSA have no authority to modify or
waive any of the provisions of the
regulations in this subpart.
(c) The Executive Vice President,
CCC, or a designee, may determine any
question arising under the program or
reverse or modify any determination
made by any FSA official or employee.
(d) The Deputy Administrator for
Farm Programs, FSA, may specify,
waive or modify deadlines and other
program requirements where lateness or
failure to meet such other requirements
do not affect adversely the operation of
the cottonseed payment program.
(e) A representative of CCC may
execute cottonseed payment program
applications and related documents
only under the terms and conditions
determined and announced by CCC.
(f) Payment applications and related
documents not executed in accordance
with the terms and conditions
determined and announced by CCC,
including any purported execution
outside of the dates authorized by CCC,
shall be null and void except as
otherwise provided in this subpart.
§ 1427.1302
Definitions.
The definitions in this section shall
apply to the cottonseed payment
program in this subpart. The terms
defined in § 1427.3, Subpart A,
Nonrecourse Cotton Loan and Loan
Deficiency Payment shall also be
applicable to this subpart.
Application period means a period, as
announced by CCC, during which
applications for payments under the
Cottonseed Payment Program must be
received to be considered for payment.
Cottonseed means the seed from any
varieties of upland cotton and extra long
staple (ELS) cotton produced and
ginned in the United States.
Gin means a person (i.e., an
individual, partnership, association,
corporation, cooperative marketing
association, estate, trust, State or
political subdivision or agency thereof,
or other legal entity) that removes cotton
seed from cotton lint in commercial
quantities.
Hurricane-affected county means a
county declared a natural disaster or
included in the geographic area covered
by a natural disaster declaration related
to Hurricane Katrina, Hurricane
Ophelia, Hurricane Rita, Hurricane
Wilma, a related condition, or a county
contiguous to such a county.
Lint means cotton lint as contained in
bales of cotton ordinarily marketed as
cotton and excludes any linters, raw
motes, re-ginned motes, cleaned motes,
and any other gin waste or byproduct
not traditionally defined as cotton lint.
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Ton means a unit of weight equal to
2,000 pounds avoirdupois (907.18
kilograms).
§ 1427.1303
Eligible cottonseed.
To be eligible for payments under this
subpart, cottonseed must:
(a) Have been produced from cotton
grown in a hurricane-affected county as
defined in section 1427.1302 during the
2005-crop production period.
(b) Have been the result of ginning
2005-crop cotton by the applicant.
(c) Not have been destroyed or
damaged in any amount at the gin by
fire, flood, or other events such that its
loss or damage was compensated by any
other local, State, or Federal government
or private or public insurance or
disaster relief payments.
§ 1427.1304
handlers).
Eligible applicants (first
(a) An eligible applicant shall be a
first handler of cottonseed or a gin that
has an eligible payment quantity as
determined under § 1427.1307. This is
the gin(s) that ginned 2005 crop cotton
for the producer except if the 2005 gin
is no longer in business to the extent the
company has no means to apply for
payment on behalf of producers and
distribute funds, the current gin
becomes the applicant. Only an eligible
first handler shall be eligible to file an
application for payment in this subpart.
(b) Applicants must comply with the
terms and conditions set forth in this
subpart issued by CCC, and sign and
submit an accurate, legible, and
complete Cottonseed Payment Program
Application and Certification.
(c) Applicants signing the cottonseed
payment application or receiving
payment in this subpart must share and
distribute any payment with the
producer of the cotton that was the basis
for the cottonseed payment to the extent
that the effect of the loss of 2005 crop
cottonseed was borne by the producer
rather than the gin. To the extent that
such funds shall be shared with and
distributed to the producer by the gin
pursuant to this subpart, those funds
will be considered to have been
received by the applicant on behalf of
such producers.
§ 1427.1305
deadline.
Payment application and
(a) Payments in this subpart shall be
made available only to eligible first
handlers of cottonseed based on
information provided on a Cottonseed
Payment Program Application and
Certification.
(b) The application deadline shall be
45 calendar days after the rules in this
subpart become effective. A further
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The total available program funds for
the 2005-crop cottonseed program
provided for in this subpart shall be $15
million.
2003 lint delivery amount by
multiplying the 2003 USDA National
Agricultural Statistics Service (NASS)
county average yield for the applicable
county times the producer’s 2005 cotton
acreage in the eligible county. Proof of
cotton acreage may be obtained by the
applicant from producer certification,
FSA county office acreage reports, or
crop insurance records. If the NASS
county average yield is not computed
for the applicable county, the applicant
shall use the NASS county average yield
for the nearest cotton producing county
with the highest NASS county average
yield.
(b) The applicant’s lint eligibility will
be calculated individually with respect
to all eligible cotton producers and
those individual eligibilities for the gin
will then be added together to
determine the total lint eligibility of the
gin.
§ 1427.1307
§ 1427.1308
extension of application time may be
announced by CCC. Payment
applications must be received by the
program application deadline
announced by CCC. Applications
received after such application deadline
will not be accepted for payment.
(c) The Cottonseed Payment Program
Application and Certifications may be
obtained from the CCC as announced by
press release. In order to participate in
the cottonseed payment program in this
subpart, first handlers of cottonseed
must execute and submit to CCC
according to announced instructions the
Cottonseed Payment Program
Application and Certification.
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§ 1427.1306
Available funds.
Applicant payment quantity.
(a) The applicant’s payment quantity
of cottonseed will be calculated by the
applicant and submitted on the
Cottonseed Payment Application and
Certification for approval by CCC.
(1) An applicant must be an eligible
gin to which a producer delivered 2005
cotton and the applicant’s payment
eligibility will be based on the
determination of the total amount of
2003 crop lint deliveries by cotton
producers in eligible counties.
(2) The 2003 crop lint delivery
determination will be made by the
applicant for each eligible county
producer by producer, based upon
producer certification, ginning records,
or other relevant information as
applicable. If the producer delivered
2003 crop cotton to a gin(s) different
from the gin that received 2005 crop
deliveries, the 2005 gin shall contact the
other gins for production information or
obtain other proof of the eligible
quantity from the cotton producer so as
to make or verify the calculation called
for in paragraph (a) of this section.
(3) If the producer delivered cotton to
more than one 2005 gin, each gin shall
be an applicant. If the producer did not
deliver cotton to the same gins in 2003,
the applicants shall divide the total
2003 production, obtained according to
paragraph (a)(2) of this section, equally
between each applicant gin.
(4) If the producer did not grow any
2005 crop cotton in the eligible county,
the applicant shall not apply for
payment on behalf of the producer.
(5) If the producer grew 2005 crop
cotton but did not produce 2003 crop
cotton, the producer shall be considered
a new producer. In this case, the
applicant shall compute an assumed
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Total payment quantity.
(a) The total quantity of 2005-crop
cottonseed eligible in this subpart shall
be based on the total payment quantity
of cottonseed as determined under this
subpart for which timely applications
are filed. Eligible cottonseed for which
no application is received according to
the announced application instructions
shall not be included in the total
payment quantity of cottonseed.
(b) The total payment quantity of
cottonseed (ton-basis) shall be
calculated by CCC by multiplying the
weight of cotton lint (ton-basis) for
which payment is requested by all
applicants, as approved by CCC, by the
Olympic average of estimated pounds of
cottonseed per pound of ginned cotton
lint, excluding the highest and lowest
years’ production, as determined by
CCC for the 5 years preceding the 2005
crop.
§ 1427.1309
Payment rate.
The payment rate (dollars per ton) for
the purpose of calculating payments
made available in accordance in this
subpart shall be determined by CCC by
dividing the total available program
funds, less an amount reserved for
approved corrections, by the total
eligible payment quantity of cottonseed.
However, in no event may the total
payment to an eligible applicant exceed
the national average price of 2005 crop
cottonseed as determined by CCC, or
$98 per ton, multiplied by the
applicant’s total eligible payment
quantity.
§ 1427.1310
Payment calculation and form.
(a) Payment in accordance in subpart
shall be determined for individual
applicants by multiplying:
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63667
(1) The payment rate as determined in
subpart § 1427.1309 by
(2) The eligible payment quantity of
the applicant was determined in
§ 1427.1308 and other provisions in this
part.
(b) After receipt of the application for
payment, CCC will issue payments to
the applicant by electronic funds
transfer to the applicant’s account
except that applicants may request
payment be made by mailed check.
§ 1427.1311
Liability of first handler.
(a) If any person makes any erroneous
or fraudulent representation in
obtaining a cottonseed payment in this
part, or in connection with such a
payment engages in a scheme or device
that tends to defeat the purposes of this
program, the person shall be liable to
CCC for the amount of the payment and
interest on such payment as determined
by CCC. Such remedy will be in
addition to whatever additional
remedies may be allowed by law.
(b) If more than one person executes
a program payment application with
CCC on the same quantity and payments
are made there under, each such person
shall be jointly and severally liable for
any violation of the terms and
conditions for any payment made to
anyone under that application or for any
refund due from any person signing that
application. Such liability shall remain
until payment in full is made of any
such refund and its related charges.
(c) If a person receives a program
payment in excess of the amount
authorized in this subpart, that person
shall refund to CCC an amount equal to
the excess payment, plus interest
thereon, as determined by CCC.
(d) For three years after the date of the
application for 2005-crop payments, the
applicant shall keep records, including
records supporting the quantity of
cottonseed for which payment was
requested, and furnish such information
and reports relating to the application to
CCC as requested. Such records shall be
available at all reasonable times for an
audit or inspection by authorized
representatives of CCC, United States
Department of Agriculture, or the
Comptroller General of the United
States. Failure to keep, or make
available, such records may result in
refund to CCC of all payment received,
plus interest thereon, as determined by
CCC. In the event of a controversy
concerning payments, records must be
kept for such longer period as may be
specified by CCC until such controversy
is resolved. Destruction of records at
any time is at the risk of the applicant.
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Federal Register / Vol. 71, No. 210 / Tuesday, October 31, 2006 / Rules and Regulations
Signed in Washington, DC, on October 25,
2006.
Thomas B. Hofeller,
Acting Executive Vice President, Commodity
Credit Corporation.
[FR Doc. E6–18249 Filed 10–30–06; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1430
RIN 0560–AH59
2005 Dairy Disaster Assistance
Payment Program
Commodity Credit
Corporation, USDA.
ACTION: Final rule.
AGENCIES:
SUMMARY: This rule sets forth the
regulations for the 2005 Dairy Disaster
Assistance Payment Program. This
program will assist dairy producers by
providing payments to those who
suffered dairy production and milk
spoilage losses due to hurricanes or a
related condition in 2005.
DATES: This rule is effective October 31,
2006.
FOR FURTHER INFORMATION CONTACT:
Danielle Cooke, Price Support Division,
Farm Service Agency, United States
Department of Agriculture, STOP 0512,
1400 Independence Avenue, SW.,
Washington, DC 20250–0512.
Telephone: (202) 720–1919; e-mail:
Danielle.Cooke@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
cprice-sewell on PROD1PC66 with RULES
Notice and Comment
Section 3034 of the Emergency
Agricultural Disaster Assistance Act of
2006 (the 2006 Act) requires that the
regulations necessary to implement
Title III of the 2006 Act, which includes
the regulations for this program, are to
be promulgated without regard to the
notice and comment provisions of 5
U.S.C. 553 or the Statement of Policy of
the Secretary of Agriculture effective
July 24, 1971 (36 FR 13804), relating to
notices of proposed rulemaking and
public participation in rulemaking.
These regulations are thus issued as
final.
Executive Order 12866
This final rule has been determined to
be significant under Executive Order
12866 and has been reviewed by the
Office of Management and Budget.
Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule because CCC is not
VerDate Aug<31>2005
15:23 Oct 30, 2006
Jkt 211001
required by 5 U.S.C. 553 or any other
law to publish a notice of proposed
rulemaking with respect to the subject
of this rule.
Environmental Assessment
The environmental impacts of this
rule have been considered consistent
with the provisions of the National
Environmental Policy Act of 1969
(NEPA), 42 U.S.C. 4321 et seq., the
regulations of the Council on
Environmental Quality (40 CFR parts
1500–1508), and FSA’s regulations for
compliance with NEPA, 7 CFR part 799.
To the extent these authorities may
apply, CCC has concluded that this rule
is categorically excluded from further
environmental review as evidenced by
the completion of an environmental
evaluation. No extraordinary
circumstances or other unforeseeable
factors exist which would require
preparation of an environmental
assessment or environmental impact
statement. A copy of the environmental
evaluation is available for inspection
and review upon request.
Executive Order 12988
The rule has been reviewed in
accordance with Executive Order 12998.
This final rule preempts State laws to
the extent such laws are inconsistent
with it. This rule is not retroactive.
Before judicial action may be brought
concerning this rule, all administrative
remedies set forth at 7 CFR parts 11 and
780 must be exhausted.
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 12372
This program is not subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. See the notice
related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24,
1983).
Unfunded Mandates
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA) does not
apply to this rule because CCC is not
required by 5 U.S.C. 553 or any other
law to publish a notice of proposed
rulemaking for the subject of this rule.
Further, this rule contains no unfunded
mandates as defined in sections 202 and
205 of UMRA.
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Paperwork Reduction Act of 1995
Section 3034 of the 2006 Act provides
that the promulgation of regulations and
the administration of Title III of the
2006 Act shall be made without regard
to chapter 5 of title 44 of the Untied
States Code (the Paperwork Reduction
Act). Accordingly, these regulations and
the forms and other information
collection activities needed to
administer the program authorized by
these regulations are not subject to
review by OMB under the Paperwork
Reduction Act.
Government Paperwork Elimination
Act
CCC is committed to compliance with
the Government Paperwork Elimination
Act (GPEA) and the Freedom to E-File
Act, which require Government
agencies in general, and FSA in
particular, to provide the public the
option of submitting information or
transacting business electronically to
the maximum extent possible. The
forms and other information collection
activities required to be utilized by a
person subject to this rule are not yet
fully implemented in a way that would
allow the public to conduct business
with CCC electronically. Accordingly, at
this time, all forms required to be
submitted under this rule may be
submitted to CCC by mail or FAX.
Background
Section 3014 of the 2006 Act requires
the Secretary of Agriculture to use $17
million to make payments to dairy
producers for losses in counties affected
by 2005 hurricanes. Hurricanes Katrina,
Ophelia, Rita, and Wilma severely
impacted dairy producers in certain
areas of the Gulf region of the United
States during the months of August
through October of 2005. As a result,
several dairy producers incurred
devastating decreases in production due
to cattle losses and milk that had to be
dumped because of closed milk plants
and damaged containment equipment.
Also, the loss of electricity, the shortage
of fuel, and infrastructure damage
temporarily interrupted the flow of
dairy products to markets.
Pursuant to the legislation, this rule
addresses the situation by establishing a
program similar to the 2004 Dairy
Disaster Assistance Payment (DDAP–I)
Program authorized by section 103 of
Division B of Public Law 108–324, for
dairy production and spoilage losses
incurred by producers in the
southeastern region of the United States,
due to 2004 Hurricanes Charley,
Frances, Ivan, and Jeanne. The final rule
for DDAP–I was published on
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]]>Agencies
[Federal Register Volume 71, Number 210 (Tuesday, October 31, 2006)]
[Rules and Regulations]
[Pages 63665-63668]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-18249]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 71, No. 210 / Tuesday, October 31, 2006 /
Rules and Regulations
[[Page 63665]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR 1427
RIN 0560-AH63
2005 Cottonseed Payment Program
AGENCIES: Commodity Credit Corporation, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements a portion of the Emergency
Supplemental Appropriations Act for Defense, the Global War on Terror,
and Hurricane Recovery of 2006 to provide assistance to producers and
first-handlers of the 2005 crop of cottonseed in counties which were
declared a natural disaster area by the President of the United States,
and contiguous counties, due to Hurricanes Katrina, Ophelia, Rita,
Wilma or a related condition in 2005.
DATES: This rule is effective October 31, 2006.
FOR FURTHER INFORMATION CONTACT: Chris Kyer, phone: (202) 720-7935; e-
mail: chris.kyer@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Discussion of Final Rule
Section 3015(a) of Subtitle A of Title III of Pub. L. 109-234
states, ``The Secretary shall use $15,000,000 of the funds of the
Commodity Credit Corporation to provide assistance to producers and
first-handlers of the 2005 crop of cottonseed in hurricane-affected
counties.'' (Title III, Subtitle A, 120 Stat. 477, June 15, 2006)
(``2006 Act''). This rule provides the Commodity Credit Corporation
(CCC) regulations for implementation of the 2005 Cottonseed Payment
Program authorized by this provision.
Assistance under the 2005 Cottonseed Payment Program is provided
under the same terms and conditions, generally, as it was for the 2004
Cottonseed Payment Program. However, section 3015(b)(2) of the 2006 Act
states that, for the 2005 program, funds will be distributed ``* * *
based on cottonseed production during the most recent year for which a
disaster payment specifically for cottonseed was not authorized.'' (120
Stat. 477) The most recent year for which a disaster payment
specifically for cottonseed was not authorized was the 2003 cottonseed
production year. Accordingly, this rule provides that 2003 cottonseed
production will be used as a basis for payments provided under the 2005
Cottonseed Payment Program.
Also, as provided in section 3015(b)(2) of the 2006 Act, payment
calculations for the 2005 Cottonseed Payment Program will differ from
those used for the 2004 Cottonseed Payment Program. The 2004 program
payments were based upon a loss attributable to the disaster. The 2005
Cottonseed Payment Program shall be based solely upon production during
the most recent year for which a disaster payment specifically for
cottonseed was not authorized (the 2003 crop), without requiring proof
of a loss.
Another difference from the 2004 program is that this rule
clarifies which counties are eligible for assistance. This rule clearly
defines the term ``hurricane affected counties'' for the 2005 program
as those counties designated as a disaster area resulting from
Hurricanes Katrina, Ophelia, Rita, Wilma, or a related condition, and
contiguous counties thereof, meaning counties directly adjoining the
primary disaster county.
Executive Order 12866
This rule has been determined to be ``Significant'' under Executive
Order 12866 and has been reviewed by the Office of Management and
Budget (OMB).
Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
CCC is not required by 5 U.S.C. 553 or any other law to publish a
notice of proposed rulemaking for the subject of this rule.
Environmental Assessment
The environmental impacts of this rule have been considered
consistent with the provisions of the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4321 et seq., the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508), and FSA's
regulations for compliance with NEOA, 7 CFR part 799. To the extent
these authorities may apply, CCC has concluded that this rule is
categorically excluded from further environmental review as evidenced
by the completion of an environmental evaluation. No extraordinary
circumstances or other foreseeable factors exist which would require
preparation of an environmental assessment or environmental impact
statement. A copy of the environmental evaluation is available for
inspection and review upon request.
Executive Order 12988
The rule has been reviewed in accordance with Executive Order
12988. This final rule preempts State laws to the extent such laws are
inconsistent with it. This rule is not retroactive. Before judicial
action may be brought concerning this rule, all administrative remedies
set forth at 7 CFR part 11 and 780 must be exhausted.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires intergovernmental consultation with State and local officials.
See the notice related to 7 CFR part 3015, subpart V, published at 48
FR 19115 (June 24, 1983).
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because CCC is not required by 5 U.S.C. 553 or
any other law to publish a notice of proposed rulemaking for the
subject of this rule. Further, this rule contains no unfunded mandates
as defined in sections 202 and 205 of UMRA.
Paperwork Reduction Act of 1995
Section 3034(b)(3) of the 2006 Act requires that this rule be
implemented and administered without regard to the Paperwork Reduction
Act. Therefore, the normal 60-day public comment period and OMB
approval do not apply to the information collections required by this
rule.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act to promote
the
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use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes. For information pertinent to E-
GOV compliance related to this rule, please contact the person named
above under the information contact section.
List of Subjects in 7 CFR Part 1427
Agriculture, Cottonseed.
0
For the reasons set out in the preamble, 7 CFR part 1427 is amended as
set forth below.
PART 1427--COTTON
0
1. The authority citation for 7 CFR part 1427 is revised to read as
follows:
Authority: 7 U.S.C. 7231-7236; 15 U.S.C. 714b, 714c; Pub. L.
108-324, Pub. L. 108-447, Pub. L. 109-234.
Subpart H--2005 Cottonseed Payment Program
0
2. Add subpart H as follows:
Subpart H--2005 Cottonseed Payment Program
Sec.
1427.1300 Applicability.
1427.1301 Administration.
1427.1302 Definitions.
1427.1303 Eligible cottonseed.
1427.1304 Eligible applicants (first handlers).
1427.1305 Payment application and deadline.
1427.1306 Available funds.
1427.1307 Applicant payment quantity.
1427.1308 Total payment quantity.
1427.1309 Payment rate.
1427.1310 Payment calculation and form.
1427.1311 Liability of first handler.
Sec. 1427.1300 Applicability.
(a) Subject to the availability of funds, this subpart sets forth
the terms and conditions under which the Commodity Credit Corporation
(CCC) will provide payments under the cottonseed payment program for
the 2005 crop year of cottonseed. Additional terms and conditions may
be set forth in the application or other forms which must be executed
to participate in the cottonseed payment program.
(b) Payments shall be available only as provided in this subpart
and only with respect to 2005 crop cottonseed in hurricane-affected
counties according to Sec. 1427.1303 of this part.
Sec. 1427.1301 Administration.
(a) The cottonseed payment program shall be administered by the
Executive Vice President, CCC, or a designee and carried out by
employees of the Farm Service Agency (FSA).
(b) Representatives and employees of FSA have no authority to
modify or waive any of the provisions of the regulations in this
subpart.
(c) The Executive Vice President, CCC, or a designee, may determine
any question arising under the program or reverse or modify any
determination made by any FSA official or employee.
(d) The Deputy Administrator for Farm Programs, FSA, may specify,
waive or modify deadlines and other program requirements where lateness
or failure to meet such other requirements do not affect adversely the
operation of the cottonseed payment program.
(e) A representative of CCC may execute cottonseed payment program
applications and related documents only under the terms and conditions
determined and announced by CCC.
(f) Payment applications and related documents not executed in
accordance with the terms and conditions determined and announced by
CCC, including any purported execution outside of the dates authorized
by CCC, shall be null and void except as otherwise provided in this
subpart.
Sec. 1427.1302 Definitions.
The definitions in this section shall apply to the cottonseed
payment program in this subpart. The terms defined in Sec. 1427.3,
Subpart A, Nonrecourse Cotton Loan and Loan Deficiency Payment shall
also be applicable to this subpart.
Application period means a period, as announced by CCC, during
which applications for payments under the Cottonseed Payment Program
must be received to be considered for payment.
Cottonseed means the seed from any varieties of upland cotton and
extra long staple (ELS) cotton produced and ginned in the United
States.
Gin means a person (i.e., an individual, partnership, association,
corporation, cooperative marketing association, estate, trust, State or
political subdivision or agency thereof, or other legal entity) that
removes cotton seed from cotton lint in commercial quantities.
Hurricane-affected county means a county declared a natural
disaster or included in the geographic area covered by a natural
disaster declaration related to Hurricane Katrina, Hurricane Ophelia,
Hurricane Rita, Hurricane Wilma, a related condition, or a county
contiguous to such a county.
Lint means cotton lint as contained in bales of cotton ordinarily
marketed as cotton and excludes any linters, raw motes, re-ginned
motes, cleaned motes, and any other gin waste or byproduct not
traditionally defined as cotton lint.
Ton means a unit of weight equal to 2,000 pounds avoirdupois
(907.18 kilograms).
Sec. 1427.1303 Eligible cottonseed.
To be eligible for payments under this subpart, cottonseed must:
(a) Have been produced from cotton grown in a hurricane-affected
county as defined in section 1427.1302 during the 2005-crop production
period.
(b) Have been the result of ginning 2005-crop cotton by the
applicant.
(c) Not have been destroyed or damaged in any amount at the gin by
fire, flood, or other events such that its loss or damage was
compensated by any other local, State, or Federal government or private
or public insurance or disaster relief payments.
Sec. 1427.1304 Eligible applicants (first handlers).
(a) An eligible applicant shall be a first handler of cottonseed or
a gin that has an eligible payment quantity as determined under Sec.
1427.1307. This is the gin(s) that ginned 2005 crop cotton for the
producer except if the 2005 gin is no longer in business to the extent
the company has no means to apply for payment on behalf of producers
and distribute funds, the current gin becomes the applicant. Only an
eligible first handler shall be eligible to file an application for
payment in this subpart.
(b) Applicants must comply with the terms and conditions set forth
in this subpart issued by CCC, and sign and submit an accurate,
legible, and complete Cottonseed Payment Program Application and
Certification.
(c) Applicants signing the cottonseed payment application or
receiving payment in this subpart must share and distribute any payment
with the producer of the cotton that was the basis for the cottonseed
payment to the extent that the effect of the loss of 2005 crop
cottonseed was borne by the producer rather than the gin. To the extent
that such funds shall be shared with and distributed to the producer by
the gin pursuant to this subpart, those funds will be considered to
have been received by the applicant on behalf of such producers.
Sec. 1427.1305 Payment application and deadline.
(a) Payments in this subpart shall be made available only to
eligible first handlers of cottonseed based on information provided on
a Cottonseed Payment Program Application and Certification.
(b) The application deadline shall be 45 calendar days after the
rules in this subpart become effective. A further
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extension of application time may be announced by CCC. Payment
applications must be received by the program application deadline
announced by CCC. Applications received after such application deadline
will not be accepted for payment.
(c) The Cottonseed Payment Program Application and Certifications
may be obtained from the CCC as announced by press release. In order to
participate in the cottonseed payment program in this subpart, first
handlers of cottonseed must execute and submit to CCC according to
announced instructions the Cottonseed Payment Program Application and
Certification.
Sec. 1427.1306 Available funds.
The total available program funds for the 2005-crop cottonseed
program provided for in this subpart shall be $15 million.
Sec. 1427.1307 Applicant payment quantity.
(a) The applicant's payment quantity of cottonseed will be
calculated by the applicant and submitted on the Cottonseed Payment
Application and Certification for approval by CCC.
(1) An applicant must be an eligible gin to which a producer
delivered 2005 cotton and the applicant's payment eligibility will be
based on the determination of the total amount of 2003 crop lint
deliveries by cotton producers in eligible counties.
(2) The 2003 crop lint delivery determination will be made by the
applicant for each eligible county producer by producer, based upon
producer certification, ginning records, or other relevant information
as applicable. If the producer delivered 2003 crop cotton to a gin(s)
different from the gin that received 2005 crop deliveries, the 2005 gin
shall contact the other gins for production information or obtain other
proof of the eligible quantity from the cotton producer so as to make
or verify the calculation called for in paragraph (a) of this section.
(3) If the producer delivered cotton to more than one 2005 gin,
each gin shall be an applicant. If the producer did not deliver cotton
to the same gins in 2003, the applicants shall divide the total 2003
production, obtained according to paragraph (a)(2) of this section,
equally between each applicant gin.
(4) If the producer did not grow any 2005 crop cotton in the
eligible county, the applicant shall not apply for payment on behalf of
the producer.
(5) If the producer grew 2005 crop cotton but did not produce 2003
crop cotton, the producer shall be considered a new producer. In this
case, the applicant shall compute an assumed 2003 lint delivery amount
by multiplying the 2003 USDA National Agricultural Statistics Service
(NASS) county average yield for the applicable county times the
producer's 2005 cotton acreage in the eligible county. Proof of cotton
acreage may be obtained by the applicant from producer certification,
FSA county office acreage reports, or crop insurance records. If the
NASS county average yield is not computed for the applicable county,
the applicant shall use the NASS county average yield for the nearest
cotton producing county with the highest NASS county average yield.
(b) The applicant's lint eligibility will be calculated
individually with respect to all eligible cotton producers and those
individual eligibilities for the gin will then be added together to
determine the total lint eligibility of the gin.
Sec. 1427.1308 Total payment quantity.
(a) The total quantity of 2005-crop cottonseed eligible in this
subpart shall be based on the total payment quantity of cottonseed as
determined under this subpart for which timely applications are filed.
Eligible cottonseed for which no application is received according to
the announced application instructions shall not be included in the
total payment quantity of cottonseed.
(b) The total payment quantity of cottonseed (ton-basis) shall be
calculated by CCC by multiplying the weight of cotton lint (ton-basis)
for which payment is requested by all applicants, as approved by CCC,
by the Olympic average of estimated pounds of cottonseed per pound of
ginned cotton lint, excluding the highest and lowest years' production,
as determined by CCC for the 5 years preceding the 2005 crop.
Sec. 1427.1309 Payment rate.
The payment rate (dollars per ton) for the purpose of calculating
payments made available in accordance in this subpart shall be
determined by CCC by dividing the total available program funds, less
an amount reserved for approved corrections, by the total eligible
payment quantity of cottonseed. However, in no event may the total
payment to an eligible applicant exceed the national average price of
2005 crop cottonseed as determined by CCC, or $98 per ton, multiplied
by the applicant's total eligible payment quantity.
Sec. 1427.1310 Payment calculation and form.
(a) Payment in accordance in subpart shall be determined for
individual applicants by multiplying:
(1) The payment rate as determined in subpart Sec. 1427.1309 by
(2) The eligible payment quantity of the applicant was determined
in Sec. 1427.1308 and other provisions in this part.
(b) After receipt of the application for payment, CCC will issue
payments to the applicant by electronic funds transfer to the
applicant's account except that applicants may request payment be made
by mailed check.
Sec. 1427.1311 Liability of first handler.
(a) If any person makes any erroneous or fraudulent representation
in obtaining a cottonseed payment in this part, or in connection with
such a payment engages in a scheme or device that tends to defeat the
purposes of this program, the person shall be liable to CCC for the
amount of the payment and interest on such payment as determined by
CCC. Such remedy will be in addition to whatever additional remedies
may be allowed by law.
(b) If more than one person executes a program payment application
with CCC on the same quantity and payments are made there under, each
such person shall be jointly and severally liable for any violation of
the terms and conditions for any payment made to anyone under that
application or for any refund due from any person signing that
application. Such liability shall remain until payment in full is made
of any such refund and its related charges.
(c) If a person receives a program payment in excess of the amount
authorized in this subpart, that person shall refund to CCC an amount
equal to the excess payment, plus interest thereon, as determined by
CCC.
(d) For three years after the date of the application for 2005-crop
payments, the applicant shall keep records, including records
supporting the quantity of cottonseed for which payment was requested,
and furnish such information and reports relating to the application to
CCC as requested. Such records shall be available at all reasonable
times for an audit or inspection by authorized representatives of CCC,
United States Department of Agriculture, or the Comptroller General of
the United States. Failure to keep, or make available, such records may
result in refund to CCC of all payment received, plus interest thereon,
as determined by CCC. In the event of a controversy concerning
payments, records must be kept for such longer period as may be
specified by CCC until such controversy is resolved. Destruction of
records at any time is at the risk of the applicant.
[[Page 63668]]
Signed in Washington, DC, on October 25, 2006.
Thomas B. Hofeller,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. E6-18249 Filed 10-30-06; 8:45 am]
BILLING CODE 3410-05-P
