Continuation of Certain Benefit and Loan Programs, Acreage Reporting, Average Adjusted Gross Income, and Payment Limit, 17388-17390 [2014-06991]
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Federal Register / Vol. 79, No. 60 / Friday, March 28, 2014 / Rules and Regulations
construction, excavation, and property
management in the area being removed
from quarantine.
In the portions of Middlesex and
Union Counties, NJ, that we are
deregulating in this interim rule, there
are estimated to be several hundred
entities that will be affected. These
entities are mainly landscape
companies; municipalities would also
be affected. While the size of these
entities is unknown, it is reasonable to
assume that most are small entities
based on Small Business Administration
size standards.
Any affected entities located within
the area removed from quarantine stand
to benefit from the interim rule, since
they are no longer subject to the
restrictions in the regulations. However,
our experience with the ALB program in
Illinois, New York, and New Jersey has
shown that the number and value of
regulated articles that are, upon
inspection, determined to be infested,
and therefore denied a certificate or a
limited permit for movement, is small.
Thus, any benefit for affected entities in
the areas removed from quarantine is
likely to be minimal, given that the costs
associated with the restrictions that
have been relieved were themselves
minimal.
Under these circumstances, the
Administrator of the Animal and Plant
Health Inspection Service has
determined that this action will not
have a significant economic impact on
a substantial number of small entities.
Executive Order 12372
This program/activity is listed in the
Catalog of Federal Domestic Assistance
under No. 10.025 and is subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. (See 7 CFR part
3015, subpart V.)
Executive Order 12988
tkelley on DSK3SPTVN1PROD with RULES
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule: (1) Preempts all State
and local laws and regulations that are
inconsistent with this rule; (2) has no
retroactive effect; and (3) does not
require administrative proceedings
before parties may file suit in court
challenging this rule.
Paperwork Reduction Act
This rule contains no new
information collection or recordkeeping
requirements under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.).
VerDate Mar<15>2010
16:20 Mar 27, 2014
Jkt 232001
List of Subjects in 7 CFR Part 301
Agricultural commodities, Plant
diseases and pests, Quarantine,
Reporting and recordkeeping
requirements, Transportation.
Accordingly, we are amending 7 CFR
part 301 as follows:
PART 301—DOMESTIC QUARANTINE
NOTICES
1. The authority citation for part 301
continues to read as follows:
■
Authority: 7 U.S.C. 7701–7772 and 7781–
7786; 7 CFR 2.22, 2.80, and 371.3.
Section 301.75–15 issued under Sec. 204,
Title II, Public Law 106–113, 113 Stat.
1501A–293; sections 301.75–15 and 301.75–
16 issued under Sec. 203, Title II, Public Law
106–224, 114 Stat. 400 (7 U.S.C. 1421 note).
§ 301.51–3
[Amended]
2. In § 301.51–3, paragraph (c) is
amended by removing the heading
‘‘New Jersey’’ and the entry for
Middlesex and Union Counties.
■
Done in Washington, DC, this 24th day of
March 2014.
Kevin Shea,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 2014–06947 Filed 3–27–14; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Chapter XIV
Continuation of Certain Benefit and
Loan Programs, Acreage Reporting,
Average Adjusted Gross Income, and
Payment Limit
Commodity Credit Corporation
and Farm Service Agency, USDA.
ACTION: Extension of authorization.
AGENCY:
The Agricultural Act of 2014
(referred to as the 2014 Farm Bill)
extends the authorization, with some
changes, of many Farm Service Agency
(FSA) programs and Commodity Credit
Corporation (CCC) programs
administered by FSA. This document
announces to producers the
continuation of the following programs
and notes specific changes as mandated
by the 2014 Farm Bill: The 2014 crop
Marketing Assistance Loans (MAL),
Loan Deficiency Payments (LDP),
Noninsured Crop Disaster Assistance
Program (NAP), Sugar Program, Milk
Income Loss Contract Program (MILC),
and Dairy Indemnity Payment Program
(DIPP). The 2014 Farm Bill also
continues, with modifications, the
SUMMARY:
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Adjusted Gross Income (AGI) eligibility
provisions and payment limits that
apply to many FSA and CCC programs.
As specified in the 2014 Farm Bill,
producers must submit annual acreage
reports of all cropland on a farm to
qualify for MAL and LDP benefits, and
most commodity programs. All of the
programs listed above will be continued
under existing regulations, except as
specified in this document. This
document will be followed by
amendments to the applicable
regulations to implement changes
required by the 2014 Farm Bill.
DATES: Effective Date: March 28, 2014.
FOR FURTHER INFORMATION CONTACT: Dan
McGlynn; telephone: (202) 720–7641.
Persons with disabilities who require
alternative means for communication
(Braille, large print, audiotape, etc.)
should contact the USDA Target Center
at (202) 720–2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Overview
The 2014 Farm Bill (Pub. L. 113–79)
authorizes the continuation of certain
CCC and FSA programs, including, but
not limited to, MAL, LDP, NAP, Sugar
Program loans, MILC, and DIPP.
As specified in this document, CCC
will implement administration of 2014
crop MAL, LDPs, and sugar loans as
specified in the current regulations,
subject to changes made by the 2014
Farm Bill. Applicable 2014 crop loan
rates, schedules of premiums and
discounts, and other related rates will
be announced later.
The 2014 Farm Bill requires
producers to submit annual acreage
reports of all cropland on a farm to
qualify for all programs in Title I,
subtitles A and B, which includes MAL,
LDP, and the new Agriculture Risk
Coverage Program, Price Loss Coverage
Program, and the Transition Assistance
Program for Producers of Upland
Cotton. Regulations will be published at
a later date for these three new programs
as required by the 2014 Farm Bill.
NAP service fees will remain
unchanged, although more producers
will be eligible for fee waivers and more
crops will be eligible with the 2014
Farm Bill changes as specified in the
NAP section below.
MILC will continue through the
earlier of September 1, 2014, or the date
when the new Dairy Margin Protection
program specified in section 1403 of the
2014 Farm Bill is implemented. There
are minor changes to MILC for the
remaining months of FY 2014, as
specified in this document.
The 2014 Farm Bill contains no
changes to DIPP, which will continue
through September 30, 2018.
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FSA must update regulations,
software, forms, and handbooks to
implement the 2014 Farm Bill. FSA is
updating program Fact Sheets and will
conduct extensive outreach to ensure
that producers are aware of sign-up
periods and application requirements.
Details for the implementation of each
program will be announced in separate
press releases. The reauthorized
programs will be implemented as soon
as possible, so that producers can plan
for the 2014 growing and harvest
seasons.
MAL, LDP
The 2014 Farm Bill extended the
MAL and LDP Programs for all
previously authorized commodities for
the 2014 through 2018 crops. These
programs will continue as specified in
the regulations in 7 CFR parts 1421,
1425, 1427, and 1434, with the
mandatory changes from the 2014 Farm
Bill as described below.
The MAL Program provides shortterm financing, which allows farmers to
pay their bills soon after harvest and sell
their crop at a time that is convenient
for them, facilitating orderly marketing
throughout the rest of the year. MAL
repayment provisions specify, under
certain circumstances, that producers
may repay at less than the loan rate plus
accrued interest and other charges.
When the allowed repayment is less
than the loan rate, the difference is
referred to as marketing loan gain.
LDPs are direct payments to
producers on harvested commodities
that provide income support when the
market price falls below loan rates as
specified in the 2014 Farm Bill. Current
regulations for MAL and LDP apply
through the 2013 crop year.
With the pending harvest of 2014 crop
loan commodities, this document
announces that CCC will implement
MAL and LDP provisions for 2014 crop
wheat, corn, grain sorghum, barley, oats,
soybeans, rice, peanuts, cotton,
sunflower seed, rapeseed, canola,
safflower, flaxseed, mustard seed,
crambe, sesame seed, graded and nongraded wool, mohair, honey, dry peas,
lentils, large chickpeas, and small
chickpeas based on current commodity
loan regulations in:
• 7 CFR Part 1421, ‘‘Grains and
Similarly Handled Commodities—
Marketing Assistance Loans and Loan
Deficiency Payments for 2008 through
2012;’’
• 7 CFR Part 1425, ‘‘Cooperative
Marketing Associations;’’
• 7 CFR Part 1427, ‘‘Cotton;’’ and
• 7 CFR Part 1434, ‘‘Nonrecourse
Marketing Assistance Loan and LDP
Regulations for Honey.’’
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Jkt 232001
The loan rate for base quality upland
cotton is the simple average of the
adjusted prevailing world price for the
2 immediately preceding marketing
years, but not more than 52 cents per
pound or less than 45 cents per pound.
The 2014 loan rate, announced February
18, 2014, at 52 cents per pound, is
below the 72-cent simple average of the
world price for the 2 immediately
preceding marketing years. Therefore,
the 2014 Farm Bill change, which is
designed to make the loan rate more
reflective of prevailing market prices,
serves to limit the impact of elevated
market prices on the loan rate, while
allowing any price declines below 52
cents to be reflected in lower future loan
rates.
The applicable regulations will be
amended at a later date through
rulemaking to reflect the changes
required by the 2014 Farm Bill. In
addition, CCC will announce by press
release and other means the applicable
2014 crop loan rates established by the
2014 Farm Bill, the schedule of
premiums and discounts, and other
related information.
NAP
NAP provides limited ‘‘catastrophic’’
level coverage for crops for which crop
insurance is not available through the
Risk Management Agency (RMA),
USDA. Qualifying losses for NAP must
be due to drought, flood, or other
natural disaster, as determined by the
Secretary. The 2014 Farm Bill continues
the provisions for NAP coverage at the
catastrophic level. In addition, NAP has
been expanded to include buy-up
protection, similar to buy-up provisions
offered under the federal crop insurance
program. Service fees are currently
waived for limited resource farmers.
Beginning with the 2014 crops, the 2014
Farm Bill extends the service fee waiver
to beginning farmers and socially
disadvantaged farmers. We will refund
the administrative service fee for
beginning farmers and socially
disadvantaged farmers who have
already paid the fee for 2014 coverage
prior to enactment of the 2014 Farm
Bill. Eligible NAP crops currently
include commercial crops: Crops
expressly grown for food (excluding
livestock and their by-products); crops
planted and grown for livestock
consumption; crops grown for fiber
(excluding trees grown for wood, paper,
or pulp products); aquaculture species
crops (including ornamental fish);
floriculture; ornamental nursery;
Christmas tree crops; turf grass sod;
industrial crops; seed crops; and sea
grass and sea oats. Beginning with 2015
crops, the 2014 Farm Bill adds sweet
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Sfmt 4700
17389
sorghum, biomass sorghum, and
industrial crops (including those grown
expressly for the purpose of producing
a feedstock for renewable biofuel,
renewable electricity, or biobased
products) as eligible crops. The NAP
regulation, 7 CFR part 1437, will be
amended at a later date through
rulemaking to reflect the changes
required by the 2014 Farm Bill.
Sugar Program
The Sugar Program provides loans to
eligible sugar processors, using
domestically grown sugar beets and
sugarcane that is in the refined, raw, or
in-processed state as collateral for the
loan. These loans can be repaid at
principal plus interest during the loan
term or the sugar can be forfeited to
CCC, at loan maturity, in satisfaction of
loan debt. Processors may begin
applying for 2014 crop sugar loans on
October 1, 2014. Sugar loans will
continue under the current regulations
found in 7 CFR Part 1435, Sugar
Program.
The Sugar Program regulation, 7 CFR
part 1435, will be amended at a later
date through rulemaking to reflect the
extension of the program through the
2018 crop, as authorized by the 2014
Farm Bill. The 2014 Farm Bill changes
only the authorized dates for the Sugar
Program; it does not change any other
provisions of the Sugar Program.
CCC will also announce by press
release and other means the 2014 crop
sugar loan rates, the schedule of
premiums and discounts, and other
related information.
MILC
The 2014 Farm Bill extends MILC
with minor modifications through the
earlier of September 1, 2014, or the date
on which the new Dairy Margin
Protection Program is implemented. The
new Dairy Margin Protection Program
will be implemented at a later date
through regulations as required by the
2014 Farm Bill. MILC compensates
enrolled dairy producers when the
Boston Class I milk price falls below
$16.94 per hundredweight (cwt), as
adjusted for the National Average Dairy
Feed Ration Cost specified in the 2014
Farm Bill. All MILC contracts are
automatically extended to the earlier of
September 1, 2014, or the date on which
the Dairy Margin Protection program is
implemented. Producers therefore do
not need to re-enroll in MILC to receive
FY 2014 benefits. The production start
month previously selected by an
operation is applicable for FY 2014,
unless a producer requests a change.
Producers may select any month in
FY 2014 prior to the termination date
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17390
Federal Register / Vol. 79, No. 60 / Friday, March 28, 2014 / Rules and Regulations
for MILC as specified in the 2014 Farm
Bill to begin receiving payments. During
the period (referred to as the ‘‘relief
period’’) beginning April 14, 2014,
through the close of business on May
30, 2014, producers with existing MILC
contracts may select a different
production start month for FY 2014 by
completing and submitting form CCC–
580M ‘‘Milk Income Loss Contract
Extension (MILC) Modification’’ to FSA.
For producers with new dairy
operations that began operation before
April 14, 2014, FSA will accept
applications (form CCC–580 ‘‘Milk
Income Loss Contract (MILC)’’) during
the relief period. Regular start month
selection provisions specified in 7 CFR
1430.205, ‘‘Selection of Starting
Month,’’ will not apply during the relief
period. After the relief period ends,
beginning June 2, 2014, all production
start month changes for new and
existing MILC participants must be
made according to regular start month
selection provisions as specified in 7
CFR 1430.205.
September 2013 was the last eligible
month for MILC payments under the
Food, Conservation, and Energy Act of
2008 (the 2008 Farm Bill, Pub. L. 110–
246) as extended by the American
Taxpayer Relief Act of 2012 (Pub. L.
112–240). The payment rate determined
for October through December 2013 and
January 2014, the first four months of
FY 2014, is zero. Payments for
subsequent months of FY 2014 will be
determined as data becomes available.
The payment rate for MILC is adjusted
upward when the National Average
Dairy Feed Ration Cost exceeds certain
levels. Beginning February 1, 2014, and
ending on the termination date for
MILC, if the National Average Dairy
Feed Ration Cost for a month is greater
than $7.35 per hundredweight, the
payment rate for that month will be
increased by 45 percent of the
percentage by which the National
Average Dairy Feed Ration Cost exceeds
$7.35 per hundredweight.
tkelley on DSK3SPTVN1PROD with RULES
DIPP
The 2014 Farm Bill extended DIPP
through September 30, 2018 with no
changes. Through DIPP, FSA issues
payments to dairy producers for losses
incurred because they were required to
remove their milk production from
commercial markets due to the presence
of certain chemical or toxic residues.
Acreage Reporting
As a condition of eligibility for all
commodity program and marketing loan
program benefits specified in Subtitle A
and Subtitle B of Title I of the 2014
Farm Bill, producers on farms must
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annually submit acreage reports of all
cropland on the farm. The report of
acreage must include the producer or
producers’ shares and comply with the
existing regulations specified in 7 CFR
part 718.
Payment Eligibility and Payment Limit
Requirements
The 2014 Farm Bill modifies the
payment limit and adjusted gross
income (AGI) eligibility provisions,
which are currently specified in 7 CFR
Part 1400. Beginning with the 2014 crop
year, the total amount of payments
received, directly and indirectly, by a
person or legal entity (except joint
ventures or general partnerships) for
Price Loss Coverage, Agricultural Risk
Coverage, marketing loan gains, and
loan deficiency payments (other than for
peanuts), is limited to no more than
$125,000 annually. A person or legal
entity that receives, directly or
indirectly, payments for peanuts has a
separate $125,000 payment limit for
those payments. The NAP payment
limit also increases to $125,000 per
year. The combined payment limit for
three of the four disaster programs
(Livestock Indemnity Program,
Livestock Forage Disaster Program, and
Emergency Assistance for Livestock,
Honey Bees, and Farm-Raised Fish) is
also increased to $125,000; a separate
$125,000 limit applies to the Tree
Assistance Program.
The 2014 Farm Bill simplifies and
modifies the average AGI eligibility
provisions. Producers whose total (farm
plus nonfarm) average AGI for the 3 tax
years preceding the most recent
complete tax year exceeds $900,000 are
not eligible to receive benefits from
most programs administered by FSA
and the Natural Resources Conservation
Service (NRCS). Previous average AGI
provisions specified in the 2008 Farm
Bill had different eligibility limits for
certain programs based on average farm
AGI and, for some programs, on average
nonfarm AGI.
The AGI and payment limit eligibility
restrictions from the 2014 Farm Bill
apply to the 2014 crop, fiscal, or
program year for payment limits which
encompass the 2010, 2011, and 2012 tax
years for purposes of calculating the
average AGI, and will be implemented
immediately. The regulations in 7 CFR
part 1400 will be amended at a later
date through rulemaking to reflect the
changes required by the 2014 Farm Bill.
Environmental Review
FSA has determined that, in
accordance with the 7 CFR 799.9(d),
Environmental Quality and Related
Environmental Concerns—Compliance
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with the National Environmental Policy
Act, implementing the regulations of the
Council on Environmental Quality (40
CFR parts 1500–1508), continuation of
these programs as mandated by the 2014
Farm Bill, will not significantly affect
the quality of the human environment.
Therefore, no environmental assessment
or environmental impact statement will
be prepared.
Signed at Washington, DC, on March 25,
2014.
Juan M. Garcia,
Executive Vice President, Commodity Credit
Corporation and Administrator, Farm Service
Agency.
[FR Doc. 2014–06991 Filed 3–27–14; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2014–0171; Directorate
Identifier 2014–NM–038–AD; Amendment
39–17812; AD 2014–06–08]
RIN 2120–AA64
Airworthiness Directives; Bombardier,
Inc. Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule; request for
comments.
AGENCY:
We are adopting a new
airworthiness directive (AD) for certain
Bombardier, Inc. Model DHC–8
airplanes. This AD requires repetitive
functional checks of the nose and main
landing gear, and corrective actions if
necessary. This AD also provides
optional terminating action for the
repetitive functional checks. This AD
was prompted by a report that the
emergency downlock indication system
(EDIS) had given a false landing gear
down-and-locked indication. We are
issuing this AD to detect and correct a
false down-and-locked landing gear
indication, which, on landing, could
result in possible collapse of the landing
gear.
DATES: This AD becomes effective April
14, 2014.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of April 14, 2014.
We must receive comments on this
AD by May 12, 2014.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
SUMMARY:
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]]>Agencies
[Federal Register Volume 79, Number 60 (Friday, March 28, 2014)]
[Rules and Regulations]
[Pages 17388-17390]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06991]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Chapter XIV
Continuation of Certain Benefit and Loan Programs, Acreage
Reporting, Average Adjusted Gross Income, and Payment Limit
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Extension of authorization.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Act of 2014 (referred to as the 2014 Farm
Bill) extends the authorization, with some changes, of many Farm
Service Agency (FSA) programs and Commodity Credit Corporation (CCC)
programs administered by FSA. This document announces to producers the
continuation of the following programs and notes specific changes as
mandated by the 2014 Farm Bill: The 2014 crop Marketing Assistance
Loans (MAL), Loan Deficiency Payments (LDP), Noninsured Crop Disaster
Assistance Program (NAP), Sugar Program, Milk Income Loss Contract
Program (MILC), and Dairy Indemnity Payment Program (DIPP). The 2014
Farm Bill also continues, with modifications, the Adjusted Gross Income
(AGI) eligibility provisions and payment limits that apply to many FSA
and CCC programs. As specified in the 2014 Farm Bill, producers must
submit annual acreage reports of all cropland on a farm to qualify for
MAL and LDP benefits, and most commodity programs. All of the programs
listed above will be continued under existing regulations, except as
specified in this document. This document will be followed by
amendments to the applicable regulations to implement changes required
by the 2014 Farm Bill.
DATES: Effective Date: March 28, 2014.
FOR FURTHER INFORMATION CONTACT: Dan McGlynn; telephone: (202) 720-
7641. Persons with disabilities who require alternative means for
communication (Braille, large print, audiotape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Overview
The 2014 Farm Bill (Pub. L. 113-79) authorizes the continuation of
certain CCC and FSA programs, including, but not limited to, MAL, LDP,
NAP, Sugar Program loans, MILC, and DIPP.
As specified in this document, CCC will implement administration of
2014 crop MAL, LDPs, and sugar loans as specified in the current
regulations, subject to changes made by the 2014 Farm Bill. Applicable
2014 crop loan rates, schedules of premiums and discounts, and other
related rates will be announced later.
The 2014 Farm Bill requires producers to submit annual acreage
reports of all cropland on a farm to qualify for all programs in Title
I, subtitles A and B, which includes MAL, LDP, and the new Agriculture
Risk Coverage Program, Price Loss Coverage Program, and the Transition
Assistance Program for Producers of Upland Cotton. Regulations will be
published at a later date for these three new programs as required by
the 2014 Farm Bill.
NAP service fees will remain unchanged, although more producers
will be eligible for fee waivers and more crops will be eligible with
the 2014 Farm Bill changes as specified in the NAP section below.
MILC will continue through the earlier of September 1, 2014, or the
date when the new Dairy Margin Protection program specified in section
1403 of the 2014 Farm Bill is implemented. There are minor changes to
MILC for the remaining months of FY 2014, as specified in this
document.
The 2014 Farm Bill contains no changes to DIPP, which will continue
through September 30, 2018.
[[Page 17389]]
FSA must update regulations, software, forms, and handbooks to
implement the 2014 Farm Bill. FSA is updating program Fact Sheets and
will conduct extensive outreach to ensure that producers are aware of
sign-up periods and application requirements. Details for the
implementation of each program will be announced in separate press
releases. The reauthorized programs will be implemented as soon as
possible, so that producers can plan for the 2014 growing and harvest
seasons.
MAL, LDP
The 2014 Farm Bill extended the MAL and LDP Programs for all
previously authorized commodities for the 2014 through 2018 crops.
These programs will continue as specified in the regulations in 7 CFR
parts 1421, 1425, 1427, and 1434, with the mandatory changes from the
2014 Farm Bill as described below.
The MAL Program provides short-term financing, which allows farmers
to pay their bills soon after harvest and sell their crop at a time
that is convenient for them, facilitating orderly marketing throughout
the rest of the year. MAL repayment provisions specify, under certain
circumstances, that producers may repay at less than the loan rate plus
accrued interest and other charges. When the allowed repayment is less
than the loan rate, the difference is referred to as marketing loan
gain.
LDPs are direct payments to producers on harvested commodities that
provide income support when the market price falls below loan rates as
specified in the 2014 Farm Bill. Current regulations for MAL and LDP
apply through the 2013 crop year.
With the pending harvest of 2014 crop loan commodities, this
document announces that CCC will implement MAL and LDP provisions for
2014 crop wheat, corn, grain sorghum, barley, oats, soybeans, rice,
peanuts, cotton, sunflower seed, rapeseed, canola, safflower, flaxseed,
mustard seed, crambe, sesame seed, graded and non-graded wool, mohair,
honey, dry peas, lentils, large chickpeas, and small chickpeas based on
current commodity loan regulations in:
7 CFR Part 1421, ``Grains and Similarly Handled
Commodities--Marketing Assistance Loans and Loan Deficiency Payments
for 2008 through 2012;''
7 CFR Part 1425, ``Cooperative Marketing Associations;''
7 CFR Part 1427, ``Cotton;'' and
7 CFR Part 1434, ``Nonrecourse Marketing Assistance Loan
and LDP Regulations for Honey.''
The loan rate for base quality upland cotton is the simple average
of the adjusted prevailing world price for the 2 immediately preceding
marketing years, but not more than 52 cents per pound or less than 45
cents per pound. The 2014 loan rate, announced February 18, 2014, at 52
cents per pound, is below the 72-cent simple average of the world price
for the 2 immediately preceding marketing years. Therefore, the 2014
Farm Bill change, which is designed to make the loan rate more
reflective of prevailing market prices, serves to limit the impact of
elevated market prices on the loan rate, while allowing any price
declines below 52 cents to be reflected in lower future loan rates.
The applicable regulations will be amended at a later date through
rulemaking to reflect the changes required by the 2014 Farm Bill. In
addition, CCC will announce by press release and other means the
applicable 2014 crop loan rates established by the 2014 Farm Bill, the
schedule of premiums and discounts, and other related information.
NAP
NAP provides limited ``catastrophic'' level coverage for crops for
which crop insurance is not available through the Risk Management
Agency (RMA), USDA. Qualifying losses for NAP must be due to drought,
flood, or other natural disaster, as determined by the Secretary. The
2014 Farm Bill continues the provisions for NAP coverage at the
catastrophic level. In addition, NAP has been expanded to include buy-
up protection, similar to buy-up provisions offered under the federal
crop insurance program. Service fees are currently waived for limited
resource farmers. Beginning with the 2014 crops, the 2014 Farm Bill
extends the service fee waiver to beginning farmers and socially
disadvantaged farmers. We will refund the administrative service fee
for beginning farmers and socially disadvantaged farmers who have
already paid the fee for 2014 coverage prior to enactment of the 2014
Farm Bill. Eligible NAP crops currently include commercial crops: Crops
expressly grown for food (excluding livestock and their by-products);
crops planted and grown for livestock consumption; crops grown for
fiber (excluding trees grown for wood, paper, or pulp products);
aquaculture species crops (including ornamental fish); floriculture;
ornamental nursery; Christmas tree crops; turf grass sod; industrial
crops; seed crops; and sea grass and sea oats. Beginning with 2015
crops, the 2014 Farm Bill adds sweet sorghum, biomass sorghum, and
industrial crops (including those grown expressly for the purpose of
producing a feedstock for renewable biofuel, renewable electricity, or
biobased products) as eligible crops. The NAP regulation, 7 CFR part
1437, will be amended at a later date through rulemaking to reflect the
changes required by the 2014 Farm Bill.
Sugar Program
The Sugar Program provides loans to eligible sugar processors,
using domestically grown sugar beets and sugarcane that is in the
refined, raw, or in-processed state as collateral for the loan. These
loans can be repaid at principal plus interest during the loan term or
the sugar can be forfeited to CCC, at loan maturity, in satisfaction of
loan debt. Processors may begin applying for 2014 crop sugar loans on
October 1, 2014. Sugar loans will continue under the current
regulations found in 7 CFR Part 1435, Sugar Program.
The Sugar Program regulation, 7 CFR part 1435, will be amended at a
later date through rulemaking to reflect the extension of the program
through the 2018 crop, as authorized by the 2014 Farm Bill. The 2014
Farm Bill changes only the authorized dates for the Sugar Program; it
does not change any other provisions of the Sugar Program.
CCC will also announce by press release and other means the 2014
crop sugar loan rates, the schedule of premiums and discounts, and
other related information.
MILC
The 2014 Farm Bill extends MILC with minor modifications through
the earlier of September 1, 2014, or the date on which the new Dairy
Margin Protection Program is implemented. The new Dairy Margin
Protection Program will be implemented at a later date through
regulations as required by the 2014 Farm Bill. MILC compensates
enrolled dairy producers when the Boston Class I milk price falls below
$16.94 per hundredweight (cwt), as adjusted for the National Average
Dairy Feed Ration Cost specified in the 2014 Farm Bill. All MILC
contracts are automatically extended to the earlier of September 1,
2014, or the date on which the Dairy Margin Protection program is
implemented. Producers therefore do not need to re-enroll in MILC to
receive FY 2014 benefits. The production start month previously
selected by an operation is applicable for FY 2014, unless a producer
requests a change.
Producers may select any month in FY 2014 prior to the termination
date
[[Page 17390]]
for MILC as specified in the 2014 Farm Bill to begin receiving
payments. During the period (referred to as the ``relief period'')
beginning April 14, 2014, through the close of business on May 30,
2014, producers with existing MILC contracts may select a different
production start month for FY 2014 by completing and submitting form
CCC-580M ``Milk Income Loss Contract Extension (MILC) Modification'' to
FSA. For producers with new dairy operations that began operation
before April 14, 2014, FSA will accept applications (form CCC-580
``Milk Income Loss Contract (MILC)'') during the relief period. Regular
start month selection provisions specified in 7 CFR 1430.205,
``Selection of Starting Month,'' will not apply during the relief
period. After the relief period ends, beginning June 2, 2014, all
production start month changes for new and existing MILC participants
must be made according to regular start month selection provisions as
specified in 7 CFR 1430.205.
September 2013 was the last eligible month for MILC payments under
the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill,
Pub. L. 110-246) as extended by the American Taxpayer Relief Act of
2012 (Pub. L. 112-240). The payment rate determined for October through
December 2013 and January 2014, the first four months of FY 2014, is
zero. Payments for subsequent months of FY 2014 will be determined as
data becomes available.
The payment rate for MILC is adjusted upward when the National
Average Dairy Feed Ration Cost exceeds certain levels. Beginning
February 1, 2014, and ending on the termination date for MILC, if the
National Average Dairy Feed Ration Cost for a month is greater than
$7.35 per hundredweight, the payment rate for that month will be
increased by 45 percent of the percentage by which the National Average
Dairy Feed Ration Cost exceeds $7.35 per hundredweight.
DIPP
The 2014 Farm Bill extended DIPP through September 30, 2018 with no
changes. Through DIPP, FSA issues payments to dairy producers for
losses incurred because they were required to remove their milk
production from commercial markets due to the presence of certain
chemical or toxic residues.
Acreage Reporting
As a condition of eligibility for all commodity program and
marketing loan program benefits specified in Subtitle A and Subtitle B
of Title I of the 2014 Farm Bill, producers on farms must annually
submit acreage reports of all cropland on the farm. The report of
acreage must include the producer or producers' shares and comply with
the existing regulations specified in 7 CFR part 718.
Payment Eligibility and Payment Limit Requirements
The 2014 Farm Bill modifies the payment limit and adjusted gross
income (AGI) eligibility provisions, which are currently specified in 7
CFR Part 1400. Beginning with the 2014 crop year, the total amount of
payments received, directly and indirectly, by a person or legal entity
(except joint ventures or general partnerships) for Price Loss
Coverage, Agricultural Risk Coverage, marketing loan gains, and loan
deficiency payments (other than for peanuts), is limited to no more
than $125,000 annually. A person or legal entity that receives,
directly or indirectly, payments for peanuts has a separate $125,000
payment limit for those payments. The NAP payment limit also increases
to $125,000 per year. The combined payment limit for three of the four
disaster programs (Livestock Indemnity Program, Livestock Forage
Disaster Program, and Emergency Assistance for Livestock, Honey Bees,
and Farm-Raised Fish) is also increased to $125,000; a separate
$125,000 limit applies to the Tree Assistance Program.
The 2014 Farm Bill simplifies and modifies the average AGI
eligibility provisions. Producers whose total (farm plus nonfarm)
average AGI for the 3 tax years preceding the most recent complete tax
year exceeds $900,000 are not eligible to receive benefits from most
programs administered by FSA and the Natural Resources Conservation
Service (NRCS). Previous average AGI provisions specified in the 2008
Farm Bill had different eligibility limits for certain programs based
on average farm AGI and, for some programs, on average nonfarm AGI.
The AGI and payment limit eligibility restrictions from the 2014
Farm Bill apply to the 2014 crop, fiscal, or program year for payment
limits which encompass the 2010, 2011, and 2012 tax years for purposes
of calculating the average AGI, and will be implemented immediately.
The regulations in 7 CFR part 1400 will be amended at a later date
through rulemaking to reflect the changes required by the 2014 Farm
Bill.
Environmental Review
FSA has determined that, in accordance with the 7 CFR 799.9(d),
Environmental Quality and Related Environmental Concerns--Compliance
with the National Environmental Policy Act, implementing the
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508), continuation of these programs as mandated by the 2014 Farm
Bill, will not significantly affect the quality of the human
environment. Therefore, no environmental assessment or environmental
impact statement will be prepared.
Signed at Washington, DC, on March 25, 2014.
Juan M. Garcia,
Executive Vice President, Commodity Credit Corporation and
Administrator, Farm Service Agency.
[FR Doc. 2014-06991 Filed 3-27-14; 8:45 am]
BILLING CODE 3410-05-P
