Supplemental Agricultural Disaster Assistance Programs, Payment Limitations, and Payment Eligibility, 21085-21118 [2014-08067]

Download as PDF Vol. 79 Monday, No. 71 April 14, 2014 Part VI Department of Agriculture mstockstill on DSK4VPTVN1PROD with RULES2 Commodity Credit Corporation 7 CFR Parts 1400 and 1416 Supplemental Agricultural Disaster Assistance Programs, Payment Limitations, and Payment Eligibility; Final Rule VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\14APR2.SGM 14APR2 21086 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations FOR FURTHER INFORMATION CONTACT: Commodity Credit Corporation 7 CFR Parts 1400 and 1416 RIN 0560–AI21 Supplemental Agricultural Disaster Assistance Programs, Payment Limitations, and Payment Eligibility Commodity Credit Corporation, USDA. ACTION: Final rule. AGENCY: This rule implements specific requirements for the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP), Livestock Forage Disaster Program (LFP), Livestock Indemnity Program (LIP), Tree Assistance Program (TAP), and general provisions for Supplemental Agricultural Disaster Assistance Programs authorized by the Agricultural Act of 2014 (2014 Farm Bill). Although there were similar disaster programs under the 2008 Farm Bill, the authority for those programs has expired. The 2014 Farm Bill reauthorizes these programs and they are similar to the 2008 programs, however, there are distinct changes in payment limits, eligible losses, and eligible causes of loss from prior programs. Eligible ELAP, LFP, LIP, and TAP losses must have occurred on or after October 1, 2011 to be eligible for payment. This rule specifies how ELAP, LFP, LIP, and TAP payments are calculated, what losses are eligible, and when producers may apply for payments. Additionally, this final rule implements changes required by the 2014 Farm Bill by amending the regulations that specify maximum income limits (payment eligibility) and maximum benefit amounts (payment limits) for participants in programs funded by the Commodity Credit Corporation (CCC) and some FSA programs. The intended effect of the eligibility requirements is to ensure that program payments and benefits are issued only to those persons and legal entities that meet the income eligibility requirements as specified in the 2014 Farm Bill, and that program participants do not receive any program payments above the maximum allowable payment amount. The payment limits and average Adjusted Gross Income (AGI) limits in this final rule apply to 2014 and subsequent crop, program, or fiscal year benefits, and to benefits for programs that were authorized by the 2014 Farm Bill for retroactive 2012 or 2013 crop, program, or fiscal year benefits. mstockstill on DSK4VPTVN1PROD with RULES2 SUMMARY: VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 Effective Date: April 14, 2014. For general provisions for Supplemental Agricultural Disaster Assistance Programs, LFP, and LIP: Scotty Abbott; telephone (202) 720–7997. For ELAP: Amy Mitchell; telephone (202) 720– 8954. For TAP: Steve Peterson: telephone: (202) 720–7641. For Payment Limits and Payment Eligibility: James Baxa, telephone: (202) 720–4189. SUPPLEMENTARY INFORMATION: DATES: DEPARTMENT OF AGRICULTURE Background Disaster Assistance Programs, Payment Limits, and Payment Eligibility The disaster assistance programs, payment limits, and payment eligibility provisions in this rule are CCC programs and provisions; the Farm Service Agency (FSA) administers the programs and provisions for CCC. Supplemental Agricultural Disaster Assistance Programs This final rule implements the general eligibility provisions and specific requirements for supplemental agricultural disaster assistance programs authorized by Section 1501 of the 2014 Farm Bill (Pub. L. 113–79). Section 1501 authorizes the Secretary of Agriculture to assist producers through four different disaster programs: • ELAP, • LFP, • LIP (referred to as Livestock Indemnity Payments in the 2014 Farm Bill), and • TAP. ELAP provides emergency assistance to eligible producers of livestock, honeybees, and farm-raised fish that have losses due to adverse weather, or other conditions, including losses due to blizzards, disease (including cattle tick fever), water shortages, and wildfires, as determined by the Secretary. ELAP assistance is for losses not covered under LFP or LIP. LFP provides payments to eligible livestock producers that have suffered livestock grazing losses due to qualifying drought or fire. For drought, the losses must have occurred due to a qualifying drought during the normal grazing period for the county on land that is native or improved pastureland with permanent vegetative cover or is planted to a crop planted specifically for grazing covered livestock. LFP also provides payments to eligible livestock producers that have suffered grazing losses on rangeland managed by a Federal agency if the eligible livestock producer is prohibited by the Federal agency from grazing the normally PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 permitted livestock on the managed rangeland due to a qualifying fire. LIP provides disaster assistance to livestock owners and contract growers that had losses due to livestock deaths in excess of normal mortality due to adverse weather during the calendar year, the 2014 Farm Bill includes hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold as ‘‘weather.’’ To use the terms in the normal sense, in this rule, we will refer to ‘‘weather or other conditions’’ and these will include the same list as the 2014 Farm Bill includes as ‘‘weather.’’ LIP also provides assistance to livestock owners and contract growers that had losses due to livestock deaths in excess of normal mortality due to attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators. TAP provides disaster assistance to eligible orchardists and nursery tree growers to replant or rehabilitate trees, bushes, and vines that were lost due to natural disaster. Orchardists and nursery tree growers who commercially raise trees, bushes, and vines for which there were mortality losses in excess of 15 percent, after adjustment for normal mortality, are eligible for TAP payments. With the authorization provided in the 2014 Farm Bill, these disaster assistance programs are permanent or ‘‘standing’’ programs; that is, they are continuing programs not subject to annual appropriations. ELAP, LFP, LIP, and TAP were previously authorized under the 2008 Farm Bill (the Food, Conservation, and Energy Act of 2008, Pub. L. 110–246), however, these programs expired. The 2014 Farm Bill authorizes ELAP, LFP, LIP, and TAP disaster programs and while they are similar to those programs authorized by the 2008 Farm Bill, the newly authorized programs have minor changes from those previously authorized programs. In addition, the 2014 Farm Bill authorizes retroactive payments under these programs for losses in FY 2012 and 2013. The 2014 Farm Bill did not reauthorize the Supplemental Revenue Assistance Payments Program (SURE), which was previously authorized by the 2008 Farm Bill and has expired. Under the 2008 Farm Bill, payments for ELAP, LFP, LIP, and TAP were made from the funds of the Agricultural Disaster Relief Trust Fund established under section 902 of the Trade Act of 1974. Under the 2014 Farm Bill, payments will be made from CCC funds. Due to this change in funding source, this rule moves the regulations for the E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations four disaster assistance programs out of 7 CFR chapter VII, which covers FSA programs, and into 7 CFR chapter XIV, which covers CCC programs. The main scope of these programs is, however, unchanged, and that is why the regulations that were located 7 CFR chapter VII for the disaster programs previously authorized by the 2008 Farm Bill are being used as the basis for the regulations located in 7 CFR chapter XIV, subject to changes made by the 2014 Farm Bill. mstockstill on DSK4VPTVN1PROD with RULES2 Terms Used in This Rule The terms used in the existing CFR for these programs have not changed. This final rule uses the words ‘‘producers’’ and ‘‘participants’’ in substantive ways. ‘‘Producers’’ may apply for ELAP, LFP, LIP, and TAP. ‘‘Participants’’ are those ‘‘producers’’ who apply for payments under the programs and who must meet the requirements to be eligible to receive ELAP, LFP, LIP, and TAP payments. Section 1501 of the 2014 Farm Bill uses the words ‘‘assistance,’’ ‘‘benefits,’’ ‘‘compensation,’’ ‘‘relief,’’ and ‘‘payments.’’ The payment for the ELAP, LFP, LIP, and TAP assistance, benefit, relief, or compensation for eligible producers is calculated as specified in this rule. For LFP, section 1501 of the 2014 Farm Bill and this rule include the terms ‘‘eligible livestock producer,’’ ‘‘covered livestock,’’ and ‘‘qualifying drought or fire.’’ This rule also uses the terms ‘‘qualifying grazing loss’’ and ‘‘qualifying grazing land.’’ For TAP, section 1501 of the 2014 Farm Bill and this rule include the terms ‘‘eligible orchardist’’ and ‘‘nursery tree grower.’’ These terms have not changed. General Eligibility Requirements for Disaster Assistance Programs As specified in the 2014 Farm Bill and in this rule, the total amount of payments that a person or legal entity can receive, directly or indirectly, in any crop year cannot exceed $125,000 for LIP, LFP, and ELAP; TAP has a separate payment limit of $125,000 per person or legal entity for any crop year. Under the 2008 Farm Bill, payments under LIP, LFP, ELAP, and SURE were limited to $100,000 total per person or legal entity per year and TAP benefits were limited to $100,000 per person or legal entity per year. The 2014 Farm Bill and this rule specify that a person or legal entity is ineligible for payments if the person’s or legal entity’s average AGI for the applicable benefit year is in excess of $900,000. This single AGI limit replaces the multiple limits for farm and nonfarm income, and the separate limit for VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 conservation programs, that were required by the 2008 Farm Bill. Therefore this rule removes the references to farm versus non farm income, and the separate limit for conservation programs, from the CFR. Under the 2008 Farm Bill, the average AGI limit for payment eligibility was $500,000 in non-farm income and $750,000 in farm income, with a separate limit of $1 million in nonfarm income for conservation program eligibility. This rule revises 7 CFR part 1400 to implement the payment limit and AGI regulations specified in the 2014 Farm Bill. (More details on the payment limit and AGI limit changes that apply generally to all CCC- funded programs are provided later in this document.) Previous Risk Management Purchase Requirement The 2014 Farm Bill removes the risk management purchase requirement for all the disaster assistance programs. The 2008 Farm Bill required that producers obtain a Risk Management Agency (RMA) policy or plan of insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage for all crops on the producer’s farm for which the producer had an interest as a condition of payment eligibility for ELAP, LFP, and TAP. For losses occurring on or after October 1, 2011, participants are not required to have an RMA policy or plan of insurance or NAP coverage for any of their crops to be eligible for benefits under ELAP, LFP, LIP, or TAP. Other General Provisions That Apply to Disaster Assistance Programs This rule moves the existing regulations for the general provisions for disaster programs authorized by the 2008 Farm Bill in 7 CFR part 760, subpart B, to 7 CFR part 1416, subpart A, and amends those regulations as required by the 2014 Farm Bill. This rule changes some of the documentation requirements needed to support losses. These discretionary changes recognize the difficulty that producers may face and the need for flexibility regarding documentation, while at the same time recognizing FSA’s need to ensure that participants meet all eligibility requirements specified in the 2014 Farm Bill. For losses on or after October 1, 2011, this rule clarifies that, because FSA must monitor both payment limitation and AGI compliance, as well as specific program eligibility requirements, participants must provide or have on file a farm operating plan for the applicable year to be eligible for payments under ELAP, LFP, LIP, or TAP. PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 21087 This rule does not change the requirement that participants receiving ELAP, LFP, LIP, and TAP payments must keep records and documentation that support the request for payment under these programs for 3 years following the end of the year in which the application for payment was filed. That recordkeeping requirement is consistent with other FSA rules and programs, as well as with previous similar disaster assistance programs. This final rule changes the requirements for documentation of losses under ELAP, LFP, and LIP, which are discussed in more detail in this document under the supplementary information for each of those programs. For example, for ELAP, if verifiable or reliable records are not available or provided, FSA may now accept producer’s certification of eligible losses if similar producers have comparable eligible losses, as determined by FSA. As specified in this rule in 7 CFR part 1416 subpart A, other restrictions and compliance requirements that applied under the 2008 Farm Bill will continue to apply to ELAP, LFP, LIP, and TAP under the 2014 Farm Bill including, but not limited to, those pertaining to highly erodible land and wetland conservation provisions specified in 7 CFR part 12. These are not new requirements. All producers applying for benefits under ELAP, LFP, LIP, and TAP must meet the eligibility requirements provided in this rule; false certifications can carry serious consequences (for example, a reduction or denial of benefits). FSA will validate applications with random spot-checks. Specific Provisions for ELAP This rule moves the existing regulations for ELAP in 7 CFR part 760, subpart C, to 7 CFR part 1416, subpart B, and amends those regulations as required by the 2014 Farm Bill. Section 1501 of the 2014 Farm Bill directs the Secretary to use up to $20 million per fiscal year from CCC funds to provide emergency relief to eligible producers of livestock, honeybees, and farm-raised fish. The 2008 Farm Bill provided $50 million per year for ELAP. ELAP is intended to provide financial assistance to eligible producers to assist in the reduction of losses due to disease (including cattle tick fever), adverse weather, such as blizzards, or other conditions, such as wildfires as determined by the Secretary. The 2014 Farm Bill added cattle tick fever eligibility. ELAP covers losses that are not covered under LFP or LIP. Determination of ELAP payment eligibility will be based on actual losses as determined by the Deputy E:\FR\FM\14APR2.SGM 14APR2 21088 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES2 Administrator for Farm Programs (Deputy Administrator) due to eligible adverse weather or other eligible loss conditions. Funding for ELAP is authorized by fiscal year; therefore, the program year is based on the fiscal year. This is a change from the previous ELAP program year, which was based on a calendar year. Payments will be made after the signup deadline for a program year once all applications have been received. Benefits are subject to the availability of funds and may be prorated if the total amount of benefits applied for exceeds $20 million for a program year. If the total amount requested by all eligible producers for that program year would result in less than $20 million paid based on the applicable minimum payment rate for each category of losses, as specified in these regulations, then the payment rate may also be increased to a maximum of 80 percent of costs, as determined by the Deputy Administrator. Since ELAP was initially authorized by the 2008 Farm Bill, ELAP claims have never exceeded the annual funding limit. Eligibility Requirements for ELAP Under this rule, ELAP will continue to provide assistance for losses due to disease, adverse weather, or other conditions, such as blizzards and wildfires as determined by the Secretary. In general, adverse weather includes, but is not limited to, hurricanes, floods, blizzards, wildfires, extreme heat, and extreme cold. This rule clarifies that ‘‘eligible adverse weather’’ means a damaging weather event that is not expected to occur during the loss period which results in losses. In general, adverse weather or other qualifying conditions, as determined by the Deputy Administrator, are conditions that cause damage that result in a financial loss to the producer or require the producer to incur additional expenses. ELAP is intended to provide broad coverage for losses not covered by other programs. As under the previous ELAP provisions, additional eligible adverse weather and other qualifying loss conditions will be specified, as needed, by the Deputy Administrator. Under the previous ELAP provisions, only bait and game fish were considered eligible farm-raised fish for death losses. However, this rule provides the Deputy Administrator discretion to include other aquatic species as eligible for death losses. Under this rule, ELAP continues to provide assistance for livestock grazing, feed, and death losses; honeybee feed, VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 colony, and hive losses; and fish feed and death losses. For livestock feed losses, this rule clarifies that to be eligible for ELAP, the cost incurred for providing or transporting livestock feed to eligible livestock due to an eligible adverse weather or eligible loss condition must occur in combination with an eligible loss of purchased forage or feedstuffs, of mechanically harvested forage or feedstuffs, or from the additional cost of purchasing additional livestock feed, above normal quantities, required to maintain the eligible livestock during an eligible adverse weather or eligible loss condition, until additional livestock feed becomes available. The 2014 Farm Bill requires that ELAP funds ‘‘be used to reduce losses covered by feed or water shortages . . .’’ Therefore, beginning with the 2014 program year, the costs of providing and transporting water due to an eligible drought will also be covered under ELAP. Although in the past some producers who have incurred expenses for transporting water have received compensation from the Emergency Conservation Program (ECP), this discretionary change to cover these costs under ELAP will allow FSA to provide more effective and timely assistance for producers suffering eligible losses for the additional costs of transporting water. Participants may not receive funds from both ELAP and ECP for the same costs. Only the additional costs associated with transporting the water are eligible for payment; the cost of the water itself is not covered under ELAP. The producer must have had adequate livestock watering systems or facilities prior to the eligible adverse weather or loss condition and normally not need to transport water to the grazing land. In addition, the livestock must be on eligible grazing lands physically located in the county where the eligible adverse weather or eligible loss condition occurred. While losses due to disease were already covered under the previous ELAP regulations, the 2014 Farm Bill specifically adds cattle tick fever as a covered disease. As a result, ELAP will cover losses due to the cost of gathering cattle for treatment of cattle tick fever occurring on or after October 1, 2011. Applying for ELAP Payment As under the previous ELAP regulations, a producer must file both a notice for loss and an application for payment to obtain ELAP benefits. For losses in program years 2012 and 2013, producers must file a notice of loss for each program year no later than August 1, 2014. For losses that occur in program PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 year 2014, producers must file a notice of loss no later than November 1, 2014. For losses that occur in program year 2015 and subsequently, the participant must provide a notice of loss within the earlier of 30 calendar days of when the loss occurred or November 1 following the program year for which benefits are being requested. The program year, as noted earlier, is now the fiscal year. This means, for example, the deadline for the 2015 program year would be November 1, 2015. For the 2012 and 2013 program years, producers must file an application for payment for each program year no later than August 1, 2014. For 2014 and subsequent program years, producers must file an application for payment no later than November 1 of the year following the program year for which benefits are being requested. The application for payment may be filed at the same time as the notice of loss, but does not have to be filed at the same time. As under the previous ELAP provisions for grazing losses, a participant with grazing losses that occur during the 2012, 2013, or 2014 program years must certify to the number of days that grazing was lost due to an eligible adverse weather or loss condition. However, a participant with grazing losses that occur in 2015 and subsequent program years must also provide acceptable verifiable or reliable records that additional feed was fed to sustain livestock during an eligible adverse weather or eligible loss condition, or the livestock were removed from the eligible grazing land where the grazing loss occurred. If verifiable or reliable records of additional feed or livestock removal are not available or provided, FSA may accept the producer’s certification of grazing losses if similar producers have comparable grazing losses, as determined by FSA; for 2012, 2013 and 2014 program years, in addition to the producer certification, the producer must provide the normally required documentation for proof of eligibility, which includes, at a minimum, a farm operating plan, proof of the adverse weather event, an AD–1026, and an acreage report. If the producer certifies grazing losses without providing verifiable or reliable records of having moved the livestock or fed the livestock additional feed, then the County committee will review and act on the certification. The provision to accept a producer certification if verifiable or reliable records are not available is new. A similar provision previously applied to documentation losses for eligible livestock feed, honeybee colony, E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES2 honeybee hive, honeybee feed, farmraised fish feed and farm-raised fish death losses. As under the previous ELAP regulation, participants with eligible livestock death losses must provide proof of death and livestock inventory, as required under the LIP. ELAP Payment Calculations This rule increases the payment rate for honeybee colony and hive losses, fish deaths, and livestock deaths. The payment rate is a discretionary provision that is not specified in the 2014 Farm Bill. Under the provisions implementing the 2008 Farm Bill, ELAP payments were calculated using a payment rate of 60 percent. Under this rule, the payment rate may vary, and will be a minimum of 60 percent for livestock, fish, and honeybee feed losses, and 75 percent for honeybee colony and hive losses, fish deaths, and livestock deaths. The payment rate may be increased, as determined by the Deputy Administrator, to provide additional assistance to producers if total requests for payments in a program year are less than $20 million, however, the cap for the payment rate will be 80 percent (maximum). The payment rate will be adjusted as needed based on the total requests for payments and other factors. In some years, the payment rate may be decreased and in other years, the payment rate may be increased. For socially disadvantaged, limited resource, and beginning farmers, the payment rate will be 90 percent for all losses under ELAP, independent of funding constraints; this is a discretionary change, which allows CCC to provide additional assistance to producers when funding is available. If approval of all eligible applications in a program year would result in expenditures in excess of the amount available for that program year, FSA will prorate the available funds by a national factor to reduce the total expected payments to the amount available for the program year. As noted earlier, the funding level cap under the 2014 Farm Bill is $20 million per program (fiscal) year. Since ELAP was initially authorized by the 2008 Farm Bill, ELAP payments have never exceeded the annual funding limit. This rule does not change the payment calculation for other types of losses previously covered under ELAP. For livestock feed losses, ELAP payments will continue to be based on producers’ actual costs. This rule also does not change the calculation for payments due to grazing losses, but it does increase the maximum number of days for which payment may be received from 90 days to 150 days in the VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 case of grazing losses not caused by wildfires on non-Federal land and for livestock feed losses. This change is not required by the Farm Bill; it is a discretionary change to make grazing loss benefits consistent between ELAP and LFP. For costs associated with transporting water, ELAP payments will be based on the lesser of the total value of the cost to transport water for 150 days based on the daily water requirements of the eligible livestock, or on the total value of the cost to transport the water to eligible livestock for the program year based on the actual number of gallons transported by the producer in the program year. To determine the daily water requirements of eligible livestock, the number of eligible livestock will be converted to an animal unit basis and multiplied by the gallons of water required per animal unit for maintenance for one day, as determined by the Deputy Administrator. Both calculations will determine the value using the national average price per gallon to transport water adjusted, if appropriate, for local or regional conditions rather than the actual costs paid by a producer. The national average price per gallon will be determined by the Deputy Administrator. The default rate, as specified in this rule, is $0.04 (4 cents) per gallon. ELAP payments for losses due to the costs of gathering cattle for treatment due to cattle tick fever will be calculated based upon the actual number of livestock that receive treatment times the average cost per head to gather the cattle, as determined by the Deputy Administrator, subject to the payment rate. The number of animals and treatments reported by a producer will be subject to verification based on treatment records provided to FSA by the Animal and Plant Health Inspection Service (APHIS). This rule changes the payment calculation for eligible farm-raised fish death losses to take into account normal mortality of fish during the program year, based on a normal mortality rate established by FSA. Fish death losses due to normal mortality are not eligible for fish death loss benefits. While some payment rates have been adjusted, this rule does not change how payments are calculated for payments due to livestock deaths, honeybee colonies, and honeybee hives. Specific Provisions for LFP This rule moves the existing regulations for LFP in 7 CFR part 760, subpart D, to 7 CFR part 1416, subpart C. The 2014 Farm Bill has not changed PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 21089 the basic scope of LFP. Section 1501(c)(2) of the 2014 Farm Bill directs the Secretary to use such sums as are necessary from CCC to compensate eligible livestock producers for eligible grazing losses on eligible grazing land for covered livestock due to a qualifying drought during the normal grazing period for the county, or grazing losses on rangeland managed by a Federal agency if the eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a qualifying fire, as determined by the Secretary, during the calendar year. The qualifying drought or fire must occur on or after October 1, 2011. The payment formulas for LFP in the 2014 Farm Bill will, in some cases, provide larger payments than under the 2008 Farm Bill for producers in areas of drought for multiple weeks. Eligibility Requirements LFP payments and eligibilities will be calculated based on the type of covered livestock and grazing losses, and the calculations will be made by FSAapproved categories. This rule does not change the regulation that specifies covered livestock or eligible producers. As under the previous LFP regulation, reduced payments are available for producers who sold or otherwise disposed of covered livestock due to qualifying drought in 1 or both of the 2 production years immediately preceding the current production year. Where the livestock is in the possession of a contract grower at the time of loss, only the contract grower will be eligible for payment. ‘‘Contract growers’’ under ELAP and LFP only includes producers whose income is dependent on the actual weight gain and survival of the livestock. Livestock that were or would have been in a feedlot are not eligible for LFP. The actual ‘‘owner’’ of the livestock will not be eligible. This is not a change from the existing regulations. Livestock used for recreational use, such as animals used for roping or pets, are not covered. Animals that were or would have been in a feedlot on the beginning date of the drought or fire are not covered. Yaks and ostriches are not covered. Cattle (including buffalo and beefalo) under 500 pounds on the beginning date of the qualifying drought or fire are not covered. These provisions are not new, and have not changed. Qualifying drought ratings are specified in this rule using the U.S. Drought Monitor (http:// droughtmonitor.unl.edu) ratings of drought intensity. For any eligible areas of the United States (including territories and possessions) without U.S. E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 21090 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Drought Monitor coverage for an applicable program year, the Deputy Administrator, in consultation with appropriate weather-related agencies and experts, will establish procedures for rating drought intensity using the same basic categories as the U.S. Drought Monitor such that coverage will be made available. As under the 2008 Farm Bill, drought intensity is specified as one of the eligibility ‘‘triggers’’ for LFP; however, the 2014 Farm Bill changes the payment amount an eligible producer may receive based on the length and intensity of the qualifying drought as follows: • For an amount equal to 1 monthly payment, the drought length and intensity must be at least a D2 (severe drought) intensity in any area of the county for 8 consecutive weeks during the normal grazing period for the specific type of grazing land or pastureland for the county. • For an amount equal to 3 monthly payments, the drought length and intensity must be at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the specific type of grazing land or pastureland. • For an amount equal to 4 monthly payments, the drought length and intensity must be: • At least D3 (extreme drought) intensity in any area of the county for at least four weeks during the normal grazing period for the specific type of grazing land or pastureland for the county, or • D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period for the specific grazing land or pastureland for the county. • For an amount equal to 5 monthly payments, the drought length and intensity must be at least D4 (exceptional drought) in any area of the county for at least 4 weeks (not required to be consecutive weeks) during the normal grazing period for the county, Under the 2008 Farm Bill, LFP provided a maximum of 3 monthly payments. These new provisions for up to 5 monthly payments are as specified in the 2014 Farm Bill and FSA has no discretion to determine otherwise. Total LFP payments to an eligible livestock producer in a calendar year for eligible grazing losses due to a qualifying drought will not exceed an amount equal to 5 monthly payments for the same livestock. This rule clarifies that for grazing losses on land planted to a crop specifically for the purpose of providing grazing for covered livestock to be eligible for payment, grazing must be VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 reported as the intended use on the producer’s acreage report. If the land is reported as another intended use but later grazed, losses due to drought on that land will not be covered by LFP. The rule also clarifies that crops planted specifically for the purpose of providing grazing for covered livestock include forage sorghum or small grains may be covered, but corn stalks or grain sorghum stalks will not be covered. This rule also adds the provision that grazing losses that occur on irrigated land are not covered under LFP unless the irrigated land has not been irrigated in the year for which benefits are being requested due to lack of water that is beyond the participant’s control. A livestock producer may receive LFP payments for a qualifying fire if the grazing loss occurs on rangeland managed by a Federal agency and the eligible livestock producer is prohibited from grazing the normal permitted livestock on the rangeland due to fire. Under this rule, LFP will continue to cover up to 180 days of grazing losses due to fire. Any owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-ofgain basis is not considered an eligible livestock producer. As under the previous LFP provisions, grazing losses that are not related to qualifying drought or fire, as determined by the Secretary, are not eligible for LFP, but may be eligible for ELAP, which covers other adverse weather conditions. An eligible livestock producer may not receive LFP payments for grazing losses due to drought that occur on land used for haying or grazing under the Conservation Reserve Program (CRP). Applying for LFP Payment For losses occurring on or after October 1, 2011, and on or before December 31, 2014, the producer must provide a completed application for payment and supporting documentation to the administrative FSA county office by January 30, 2015. For the 2015 calendar year and subsequent years, the producer must provide a completed application for payment and required supporting documentation to the administrative FSA county office (physical location county) within 30 calendar days after the end of the calendar year in which the grazing loss occurred. LFP Payment Calculation Producers are eligible for up to 5 monthly payments for grazing losses due to a qualifying drought, depending PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 on the intensity and duration of the drought, as described earlier. This rule does not change the basic payment calculations for LFP, although it does provide payments for more months, under certain scenarios, than under the 2008 Farm Bill. Each monthly payment for eligible grazing losses under LFP due to drought may not exceed 60 percent of the lesser of: • The monthly feed cost for all covered livestock owned or leased by the eligible livestock producer as calculated in § 1416.207(h) or • The monthly feed cost calculated using the normal carrying capacity of the eligible grazing land of the eligible livestock producer as determined in § 1416.207(l). In the case of livestock that were sold or otherwise disposed of due to qualifying drought in 1 or both of the 2 production years immediately preceding the current production year, the payment rate is 80 percent of the monthly rate just described. Under this rule, producers will continue to be eligible for payments for grazing losses due to qualifying fire for up to 180 days per calendar year of such losses. Payments for eligible grazing losses due to qualifying fire under LFP may not exceed 50 percent of the monthly feed cost, determined as specified in § 1416.207(h), for the total number of livestock covered by the Federal lease of the eligible livestock producer for grazing losses that occur for not more than 180 days per calendar year. Payment for fire losses is calculated on a daily basis. Specific Provisions for LIP This rule moves the existing regulations for LIP in 7 CFR part 760, subpart E, to 7 CFR part 1416, subpart D. The 2014 Farm Bill authorizes the LIP, with little changes from the previous LIP under the 2008 Farm Bill. The only substantive change required by the 2014 Farm Bill is the addition of eligible losses due to Federally reintroduced predators or species protected by Federal law, including avian predators and wolves. This rule also makes discretionary changes to the documentation requirements, particularly for losses in 2012 and 2013, and for calf and lamb open range livestock operation losses. Unchanged from the 2008 Farm Bill, the 2014 Farm Bill provisions require LIP payments to be made at a rate of 75 percent of the market value of the livestock on the day before the date of the death of the livestock. Payments are to be made to eligible producers on farms that have incurred livestock death E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES2 losses for the calendar year in excess of the normal mortality. The eligible livestock death losses must have occurred on or after October 1, 2011, during the calendar year for which benefits are requested. Eligible losses must be due to adverse weather or other conditions, as determined by the Secretary, including hurricanes, floods, blizzards, disease exacerbated by adverse weather, wildfires, extreme heat, and extreme cold, or due to attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators. The provisions described in this paragraph are mandatory provisions over which FSA has little or no discretion in how to implement. Eligibility Requirements for LIP Under the 2014 Farm Bill, LIP continues to cover losses due to livestock deaths in excess of normal mortality due to hurricanes, floods, blizzards, disease exacerbated by adverse weather, wildfires, extreme heat, and extreme cold. It also expands eligibility under LIP to cover losses from livestock deaths in excess of normal mortality due to attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators. As under the 2008 Farm Bill, there is not a State or National ‘‘trigger’’ such as an emergency declaration that provides automatic eligibility for all producers in a particular State, county, or region. For LIP purposes, adverse weather does not include drought (although drought can exacerbate disease such as anthrax, which is eligible under LIP). FSA has the authority to determine eligibility of livestock losses caused by other adverse weather or other conditions, including disease caused by such weather and whether the disease is exacerbated by the adverse weather. This rule clarifies that if a disease is determined by FSA not to be exacerbated by adverse weather events or is preventable by implementing and following acceptable management practices, such as vaccination, the disease is not eligible for payment under LIP. FSA also has the authority to determine eligibility of livestock losses caused by animals other than wolves and avian predators that have been reintroduced into the wild by the Federal Government or protected by Federal law. LIP payments and eligibilities will be calculated on the type of eligible livestock and the actual losses and the calculations will be made by FSAapproved categories. As under the VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 previous LIP provisions, benefits are only available for the owners of livestock or for ‘‘contract growers’’— persons who produce livestock owned by someone else, but have a risk in the livestock (such as a farmer who raises chickens owned by a company that produces chicken products, but does not receive payment for livestock that die before the livestock is mature and returned to the owner). This rule does not change eligible livestock for payment to livestock owners, which includes beef cattle, dairy cattle, buffalo, beefalo, equine, sheep, goats, deer, swine, poultry, reindeer, elk, emus, alpacas, and llamas. It also does not change the eligible livestock for payment to contract growers, which include only swine and poultry because those are the only known examples of that kind of production arrangement. To be eligible livestock for LIP, as of the day they died the livestock must have been both of the following: • Owned by an eligible owner or in the possession of an eligible contract grower, and • Maintained for commercial use as part of a farming operation of the participant on the day they died. As under the previous LIP provisions, eligibility for payments to poultry and swine contract growers will be limited based on the amount of their contractual risk and other payments received. Payments will not exceed their contractual risk, as determined by FSA. Any compensation received by the contract grower from the contractor for loss of income for the dead livestock will be deducted from the contract grower’s LIP payment. When a contract grower is in possession of the livestock at the time of death, only the contract grower will be eligible for the payment; the owner is not eligible. Animals kept for recreational purposes, such as hunting animals, animals used for roping practice, pets, and show animals, continue to be ineligible for LIP under this rule. Determination of LIP payment eligibility will be based on actual losses in excess of normal mortality for the calendar year for the relevant animal type and approved category by an individual producer or contract grower. Applying for LIP Payment This rule does not change the application process for LIP. Producers must file both a notice of loss and an application. A notice of loss will not automatically qualify a producer for payment. Because the eligible losses are only those above normal mortality and that is calculated on a yearly basis, a loss occurring in, for example, July, will PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 21091 not necessarily generate a claim depending on how great the losses are, natural or otherwise, for the rest of the year. It could be, however, that a loss in July is so great that the producer is already beyond normal mortality for the year, in which case the producer could already be eligible for payment. For losses that occurred on or after October 1, 2011, and before January 1, 2015, producers must provide a notice of loss and application for payment to FSA no later than January 30, 2015. For 2015 and subsequent calendar year losses, producers must provide a notice of loss to FSA by the earlier of 30 calendar days of when the loss of livestock is apparent to the participant, or 30 calendar days after the end of the calendar year in which the loss of livestock occurred. Other documentation is required for a complete application for payment, as described in this rule. For 2015 and subsequent calendar year losses, the completed application must be submitted to the FSA county office no later than 30 calendar days after the end of the calendar year in which the loss of livestock occurred. Producers that suffer multiple livestock losses during the calendar year may file multiple notices of loss and multiple applications for payment. This rule provides less restrictive loss documentation requirements for livestock death losses that occurred from October 1, 2011, to before January 1, 2015, because producers were not provided with advanced notice of program requirements. Additionally, the previous LIP authorized by the 2008 Farm Bill had expired and there was no notice of any future LIP to cover losses beyond the scope of the 2008 Farm Bill. Accordingly, livestock producers may provide proof of death and inventories that may not be verifiable but that are reliable and reasonable documentation according to the provisions in this rule. This rule provides new provisions to address eligibility of losses for calf and lamb open range livestock operations. Specific provisions for these operations are necessary to determine proof of death and inventory because the calf and lamb open range livestock operations have had difficulties in meeting the previous proof of death and inventory requirements given the dispersed nature of their production practices. Calf and lamb open range livestock operations now may provide proof of inventory and loss by using the livestock beginning inventory history for reporting losses. If inventory records are not available, a default national birthing rate of 90 percent for calves and 160 percent for lambs will be used. E:\FR\FM\14APR2.SGM 14APR2 21092 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations When beginning inventory records are not available, as specified in this rule in addition to submitting other required records, verifiable beginning inventory records for ewes or cow will be submitted along with verifiable or reliable ending inventory records for lambs or calves. With that information, FSA will calculate the beginning inventory for that year. The Deputy Administrator has the authority to make adjustments as necessary. If records are available for less than 3 years, the calculation for inventory will include a reduction for the years of missing data. These provisions are discretionary. mstockstill on DSK4VPTVN1PROD with RULES2 LIP Payment Calculations This rule does not change the LIP payment calculation. As specified in the 2014 Farm Bill, the payment for livestock owners will continue to be calculated based on 75 percent of the average fair market value of the applicable livestock on the day before the date of death of the livestock, as determined by FSA. When determining the market value of applicable livestock, FSA will establish market values for each type and category of livestock using data from credible livestock markets. Credible livestock markets will include sale barns and local sales as well as sales at terminal market centers or slaughtering facilities. For contract growers, the payment will continue to be based on 75 percent of the average income loss sustained by the grower with respect to the dead livestock. FSA, through the State FSA offices, will obtain recommendations from applicable State livestock organizations, State Cooperative Extension Service, and other knowledgeable and credible sources, to establish the normal mortality rate for each type of livestock on a State-by-State basis when changes are warranted. As under the previous provisions, payments are only available for losses over normal mortality over the course of the year and those rates will be established on a State-by-State basis. Specific Provisions for TAP This rule moves the existing regulations for TAP in 7 CFR part 760, subpart F, to 7 CFR part 1416, subpart E. The 2014 Farm Bill authorizes the Secretary to assist eligible orchardists and nursery tree growers that have incurred tree, bush, or vine mortality losses in excess of 15 percent, adjusted for normal mortality, due to natural disaster, including plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary. TAP is a cost-reimbursement program, which means that payments VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 are calculated based on estimated actual costs to replace or rehabilitate lost or damaged trees, bushes, or vines. The replacement and rehabilitation activities must take place within 12 months after the application is approved. Payment is not made until the activities are completed. TAP was previously authorized under the 2008 Farm Bill, and the program will continue as in prior years, with the mandatory and discretionary changes specified in this rule. The main mandatory change is that the reimbursement rate is reduced, from 70 percent to 65 percent, for replanting costs. The discretionary provisions include the deadline for application for payment for retroactive losses, and that the duration of a plant disease period is determined by the Deputy Administrator and could be longer than the previous limit of one year. Eligibility Requirements Eligible losses and eligible producers under TAP will not change from the provisions implemented under the 2008 Farm Bill, except for the date (on or after October 1, 2011) that eligible producers must have suffered eligible losses as a result of a natural disaster, which includes plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other occurrence, as determined by the Secretary. Commercially grown trees, vines, and bushes are eligible. The 2014 Farm Bill does not change the eligibility ‘‘trigger’’ of mortality losses in excess of 15 percent, adjusted for normal damage and mortality. While mortality for other natural disasters is assessed on a calendar year basis, mortality related to plant disease may be examined over longer periods if determined appropriate considering the typically longer time-scale for these infections. For example, a plant disease may infect an orchard of 1,000 trees where the normal mortality is 2% per year or 20 trees. While the disease causes increased mortality, best management practices can keep infected trees productive and keep the annual mortality to 8% or 80 trees. After three years of infection, the orchard would exceed the 15% trigger and become eligible for TAP assistance for the remainder of the infection (the orchard would have lost 240 trees with 60 due to normal mortality and 180 due to disease). Considering mortality over the length of the infection for purposes of the 15% trigger also encourages proper management to control the impacts of a disease. A 15% annual trigger for plant disease could encourage poor management to try to reach the threshold, although TAP continues to PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 exclude losses that could be prevented through reasonable and available measures. Specific policies and procedures will be established regarding mortality and reasonable management, as appropriate, depending on the characteristics of the disease in question. For example, citrus canker greening might result in such losses over a period of several years. Normal mortality losses are those associated with the normal upkeep of the orchard or nursery in the region. Damage losses are not eligible for payment unless the 15 percent normal mortality trigger is met. Losses due to causes other than natural disaster will not be eligible for payment. Applying for TAP Payment To obtain a TAP payment for losses that occurred on or after October 1, 2011, through the end of the 2014 calendar year, a producer must provide an application for payment and supporting documentation to FSA by the later of January 31, 2015, or 90 calendar days after the disaster event or date when the loss is apparent to the producer. During the 2015 calendar year or later, a producer must provide an application for payment and supporting documentation to FSA within 90 calendar days of the disaster event or date upon which the loss of trees, bushes, or vines is apparent. Producers that suffer multiple losses during the year may file multiple applications for payment. TAP Payment Calculation This rule changes the calculation of TAP payments by reducing the reimbursement amount for the cost of replanting trees lost due to a natural disaster from 70 percent to 65 percent, in excess of 15 percent mortality or, at the option of the Secretary, sufficient seedlings to reestablish a stand. The 65 percent rate is required by the 2014 Farm Bill and FSA has no discretion. The rate for rehabilitation of eligible trees, bushes, or vines, which is 50 percent of the cost of pruning, removal, and other costs incurred for salvaging the existing plants, or in the case of plant mortality, to prepare land for replanting, subject to the maximum allowable FSA rate remains the same as it was under the previous TAP. The 50 percent is only payable for losses that reflect a greater than 15 percent loss taking into account normal mortality and damage. A producer can be eligible for payment for both replanting and rehabilitation costs. As under the previous provisions, the TAP payment will be calculated based on the actual costs of the approved E:\FR\FM\14APR2.SGM 14APR2 21093 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations practices, or the rates established by the Deputy Administrator, whichever is lower. Calculations will be made using FSA-approved categories of plants and practices. Losses must be verified by a field visit and approved practices must be completed before payment will be made. This rule does not change the requirements regarding documentation to show that practices are complete, such as receipts for labor costs, equipment rental, and purchases of seedlings or cuttings. Participants may not receive TAP payments on more than 500 acres of eligible trees or tree seedlings per program year. This is a change from the previous regulation. Structure and Organization of the Disaster Assistance Regulations TAP will be revised in a subsequent rulemaking to remove obsolete provisions that apply to programs that were not reauthorized. Regulations for the new programs will be established in 7 CFR part 1416, as described in the table below: The regulations in 7 CFR part 760 for general provisions, ELAP, LFP, LIP, and Program Current Part and Subpart General Provisions ............................. Part 760, Subpart B (all supplemental disaster assistance programs authorized by the 2008 Farm Bill, including SURE). Part 760, Subpart C (previous ELAP under 2008 Farm Bill) ........................ Part 760, Subpart D (previous LFP under 2008 Farm Bill) .......................... Part 760, Subpart E (previous LIP under 2008 Farm Bill) ............................ Part 760, Subpart F (previous TAP under 2008 Farm Bill) .......................... ELAP .................................................. LFP ..................................................... LIP ...................................................... TAP .................................................... mstockstill on DSK4VPTVN1PROD with RULES2 Overview—Payment Limit and AGI Changes This final rule implements payment limit and AGI provisions in sections 1119, 1501, 1603, 1605, 2005, 2206, and 12305 of the 2014 Farm Bill concerning payment eligibility requirements and payment limits for participants in CCCfunded programs. The 2014 Farm Bill provides revised annual payment limitation amounts per person or legal entity, and revised eligibility requirements based on the average annual income amount of the program participant. Overall, the 2014 Farm Bill simplifies the payment limit and payment eligibility requirements as compared to the requirements specified in the 2008 Farm Bill. This final rule amends 7 CFR Part 1400 to implement these changes. The changes in this rule are required by the 2014 Farm Bill; FSA has no discretion in setting payment limits or income-related payment eligibility requirements. Payment Limits This rule amends the payment limits specified in 7 CFR 1400.1 ‘‘Applicability’’ as required by the 2014 Farm Bill. This rule removes payment limits for programs that were not reauthorized by the 2014 Farm Bill. Neither this rule nor the 2014 Farm Bill change the method by which payments are attributed to persons and legal entities. Section 1501(f) of the 2014 Farm Bill specifies the payment limits that apply to the disaster programs. LFP, LIP, and ELAP payments issued under the 2014 Farm Bill are collectively limited to $125,000 per person or legal entity for each year. This limit applies to payments in 2014 for fiscal year 2012 and 2013 losses. TAP has a separate $125,000 payment limit. These limits VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 are slightly higher than the limits specified in the 2008 Farm Bill. In the 2008 Farm Bill, ELAP, LFP, LIP, and SURE were collectively limited to $100,000 per person or legal entity, and TAP had a separate $100,000 limit. The total amount of payments received, directly or indirectly, by a person or legal entity for any crop year for annual payments and benefits received under the new Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs, and loan deficiency payments (LDP) and marketing loan gains (MLG) for commodities except peanuts, is $125,000, as specified in Section 1603(b) of the 2014 Farm Bill. There is a separate limit of $125,000 per year for payments under ARC, PLC, LDPs and MLGs for peanuts. This rule removes references to payment limits for the Direct and Countercyclical Program (DCP) and the Average Crop Revenue Election Program (ACRE) because those programs were not reauthorized by the 2014 Farm Bill. There was no payment limit for LDP, Marketing Assistance Loans, or MLG in the 2008 Farm Bill. As specified in Section 1119 of the 2014 Farm Bill, the payments received under the new Transition Assistance for Producers of Upland Cotton program are limited to $40,000 per person or legal entity for each of the years 2014 and 2015. That program is only authorized for 2014 and 2015. As specified in section 12305 of the 2014 Farm Bill, NAP payments have an annual limitation of $125,000 per person or legal entity. The 2008 Farm Bill had a limit of $100,000 for NAP benefits. Section 2005 of the 2014 Farm Bill does not change the payment limit for CRP of $50,000. For contracts signed after October 1, 2008, all CRP payments PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 New Part and Subpart Part 1416, Subpart A. Part Part Part Part 1416, 1416, 1416, 1416, Subpart Subpart Subpart Subpart B. C. D. E. are also limited by the direct attribution provisions currently in 7 CFR 1400, which are not changing. CRP contracts that were in place before October 1, 2008, are subject to the payment limitation rules that were in effect on the date of contract approval. Prior to the 2008 Farm Bill, the CRP program had the same payment limit but different provisions for payment attribution to entities. Section 2206 of the 2014 Farm Bill changes the payment limit for the Environmental Quality Incentives Program (EQIP). A person or legal entity may not receive, directly or indirectly, in excess of $450,000 in EQIP payments for all EQIP contracts entered into under the 2014 Farm Bill period of fiscal years 2014 through 2018. The EQIP payment limitation under the 2008 Farm Bill was $300,000, unless the Chief, NRCS, waived the payment limitation up to $450,000 for a project of special environmental significance. The 2014 Farm Bill did not make any changes to the payment limitations for the Agricultural Management Assistance (AMA) program or the Conservation Stewardship Program (CSP). There is no payment limitation under the Agricultural Conservation Easement Program (ACEP). This rule removes references to payment limits for conservation programs that were not reauthorized by the 2014 Farm Bill. Except for CRP, there are no payment limits for conservation programs; rather the program payments may be limited by available funding for specific programs. That is not a change from the 2008 Farm Bill, which also had no payment limits for conservation programs other than CRP. The 2014 Farm Bill combines various conservation programs and does not reauthorize others. This rule revises E:\FR\FM\14APR2.SGM 14APR2 21094 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES2 7 CFR part 1400 to reflect the new names of these programs, and to remove the ones that are not reauthorized. SURE, as authorized by the 2008 Farm Bill, was not repealed by the 2014 Farm Bill and therefore remains in effect for losses on or before September 30, 2011. The AGI and payment limit regulations in effect when those losses occurred apply. Specifically, the average AGI limits of $500,000 nonfarm AGI and $750,000 farm AGI apply, and the $100,000 per person or legal entity payment limitation. These limits are separate from the AGI requirements and payment limitation amount applicable to the LIP, LFP, TAP, and ELAP benefits authorized under the 2014 Farm Bill. Income Limits for Payment Eligibility The 2014 Farm Bill specifies that persons and legal entities whose income is above a certain threshold are not eligible for most CCC and FSA program benefits. Section 1605 of the 2014 Farm Bill provides a new average AGI limitation applicable to all commodity, price support, disaster assistance, and conservation programs, including but not limited to FSA and CCC programs in titles I, II, and XII of the 2014 Farm Bill. These requirements also apply to the Natural Resource Conservation Service (NRCS) programs funded by CCC, including AMA, CSP, EQIP, and ACEP. This rule amends § 1400.3, ‘‘Definitions,’’ § 1400.500, ‘‘Applicability,’’ and § 1400.501, ‘‘Determination of Average Adjusted Gross Income,’’ to implement the 2014 Farm Bill changes to AGI limitations. Effective for the 2014 and subsequent crop, program, and fiscal years, all commodity, price support, and disaster assistance program payments and benefits are subject to an average AGI limitation of $900,000 per person or legal entity. This limit also applies to payments authorized by the 2014 Farm Bill for retroactive benefits for the 2012 or 2013 crop, program, or fiscal year. Effective for the fiscal year 2015 and subsequent years, the same income limitation is applicable to all conservation program payments and benefits. (For conservation programs that were reauthorized by the American Taxpayer Relief Act of 2012, Pub. L. 112–240, the 2008 Farm Bill AGI limits applied for 2013 payments.) How AGI is defined and calculated has not changed, in either the 2014 Farm Bill or in this rule. The single average AGI limitation of $900,000 replaces the multiple AGI limitations specified in the 2008 Farm Bill and limitations based on farm and nonfarm income amounts. Therefore, this rule removes all the references to VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 farm and nonfarm income requirements, leaving only the general AGI requirements, which are only changed in the amount. The limits specified in the 2008 Farm Bill were $500,000 in nonfarm income and $750,000 in farm income for commodity programs, with a $1 million nonfarm income limit for conservation program eligibility. The 2008 Farm Bill allowed a waiver to the AGI limit for conservation programs if at least 66.66 percent of the participant’s income was from farming, and also allowed the Secretary to waive the AGI limit on a case by case basis for other reasons to protect environmentally sensitive land of special significance. The AGI waivers for conservation practices are not reauthorized in the 2014 Farm Bill. However, Section 2401 of the 2014 Farm Bill authorizes the Secretary to waive the AGI limit for payments under the Regional Conservation Partnership Program (RCPP) for participating producers if the Secretary determines that the waiver is necessary to fulfill the objectives of the program. The 2014 Farm Bill combines various conservation programs and does not reauthorize others. This rule is revised to reflect the new names of these programs, and to remove the ones that are not reauthorized. The average AGI limit of $900,000 applies to all conservation programs, effective fiscal year 2015. However, the average AGI limit applies to AMA in FY 2014. As noted above, there is no authorization for AGI waivers in the 2014 Farm Bill except for RCPP payments and therefore this rule removes that provision from 7 CFR 1400. Waivers of the AGI limit for RCPP will be addressed in the regulations for the covered programs under RCPP. This rule makes two minor editorial changes in 1400.502, ‘‘Compliance and Enforcement,’’ to clarify that failure to comply with the AGI requirements of this part will result in ineligibility. Other Eligibility Requirements in Part 1400 Unchanged The 2014 Farm Bill did not change other payment eligibility requirements that are specified in 7 CFR part 1400. For example, the existing eligibility restrictions on foreign entities and state governments did not change. Payment limitation by direct attribution to a person or legal entity did not change from what was specified in the 2008 Farm Bill and is currently specified in 7 CFR part 1400. Notice and Comment In general, the Administrative Procedure Act (5 U.S.C. 553) requires PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 that a notice of proposed rulemaking be published in the Federal Register and interested persons be given an opportunity to participate in the rulemaking through submission of written data, views, or arguments with or without opportunity for oral presentation, except when the rule involves a matter relating to public property, loans, grants, benefits, or contracts. The regulations to implement the provisions of Title I and the administration of Title I of the 2014 Farm Bill are exempt from the notice and comment provisions of 5 U.S.C. 553 and the Paperwork Reduction Act (44 U.S.C. chapter 35), as specified in section 1601(c)(2) of the 2014 Farm Bill. Effective Date The Administrative Procedure Act (5 U.S.C. 553) provides generally that before rules are issued by Government agencies, the rule must be published in the Federal Register, and the required publication of a substantive rule is to be not less than 30 days before its effective date. One of the exceptions is when the agency finds good cause for not delaying the effective date. In making this final rule exempt from notice and comment through section 1601(c)(2) of the 2008 Farm Bill, using the administrative procedure provisions in 5 U.S.C. 553, FSA finds that there is good cause for making this rule effective less than 30 days after publication in the Federal Register. This rule allows FSA to provide benefits to producers who losses caused by adverse weather, natural disasters, or other conditions. Therefore, to begin providing benefits to producers as soon as possible, this final rule is effective when published in the Federal Register. Executive Orders 12866 and 13563 Executive Order 12866, ‘‘Regulatory Planning and Review,’’ and Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasized the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget (OMB) designated this rule as economically significant under Executive Order 12866, ‘‘Regulatory Planning and Review,’’ and therefore, OMB has reviewed this rule. This E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations regulatory action is being taken to implement a major budgetary program required by the 2014 Farm Bill. Consistent with OMB guidance, this type of action is considered a budgetary transfer representing a payment from taxpayers to program beneficiaries unrelated to the provision of any goods or services in exchange for the payment. As such, there are no economic gains, because the benefits and payments to those who receive such a transfer are matched by the costs borne by taxpayers to offset disaster losses by program beneficiaries. The estimated transfer payments for disaster assistance provided by this rule are summarized below. The full cost benefit analysis is available on regulations.gov. the programs, as defined in the 2014 Farm Bill, and do not constitute a major Federal action that would significantly affect the quality of the human environment, individually or cumulatively. While OMB has designated this rule as ‘‘economically significant’’ under Executive Order 12866, ‘‘. . . economic or social effects are not intended by themselves to require preparation of an environmental impact statement’’ (40 CFR 1508.14), when not interrelated to natural or physical environmental effects. Therefore, as this rule presents administrative clarifications only, FSA will not prepare an environmental assessment or environmental impact statement for this regulatory action. Cost Benefit Analysis Summary The 2014 Farm Bill authorizes four permanent livestock disaster assistance programs: LIP, LFP, ELAP, and TAP. The permanent disaster assistance programs provide a permanent means of addressing the same needs as programs provided to producers on an ad hoc basis in the past. The estimated annual payments of LIP, LFP, and ELAP and TAP is approximately $502 million and provides targeted payments to livestock and honey bee producers who suffer losses from a disaster. Executive Order 12372 Executive Order 12372, ‘‘Intergovernmental Review of Federal Programs,’’ requires consultation with State and local officials. The objectives of the Executive Order are to foster an intergovernmental partnership and a strengthened Federalism, by relying on State and local processes for State and local government coordination and review of proposed Federal Financial assistance and direct Federal development. For reasons specified in the Notice to 7 CFR part 3015, subpart V (48 FR 29115, June 24, 1983), the programs and activities within this rule are excluded from the scope of Executive Order 12372 which requires intergovernmental consultation with State and local officials. mstockstill on DSK4VPTVN1PROD with RULES2 Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601–612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to the notice and comment rulemaking requirements under the Administrative Procedure Act (5 U.S.C. 553) or any other statute, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. This rule is not subject to the Regulatory Flexibility Act because CCC and FSA are not required by any law to publish a proposed rule for public comments on this rule. Environmental Review The environmental impacts of this final rule have been considered in a manner consistent with the provisions of the National Environmental Policy Act (NEPA, 42 U.S.C. 4321–4347), the regulations of the Council on Environmental Quality (40 CFR parts 1500–1508), and the FSA regulations for compliance with NEPA (7 CFR part 799). FSA has determined that the provisions identified in this final rule are administrative in nature, intended to clarify the mandatory requirements of VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 Executive Order 12988 This rule has been reviewed under Executive Order 12988, ‘‘Civil Justice Reform.’’ This rule will not preempt State or local laws, regulations, or policies unless they represent an irreconcilable conflict with this rule. As required by the 2014 Farm Bill, the programs in this rule are retroactive to October 1, 2011. Before any judicial action may be brought regarding the provisions of this rule, the administrative appeal provisions of 7 CFR parts 11 and 780 must be exhausted. Executive Order 13132 This rule has been reviewed under Executive Order 13132, ‘‘Federalism.’’ The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the Federal government and the States, or on the distribution of power and responsibilities among the various levels of government, except as required by law. Nor does this rule impose substantial direct compliance costs on PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 21095 State and local governments. Therefore, consultation with the States is not required. Executive Order 13175 This rule has been reviewed for compliance with Executive Order 13175, ‘‘Consultation and Coordination with Indian Tribal Governments.’’ This Executive Order imposes requirements on the development of regulatory policies that have Tribal implications or preempt Tribal laws. The policies contained in this rule do not preempt Tribal law. The policies contained in this rule do not, to our knowledge, impose substantial unreimbursed direct compliance costs on Indian Tribal governments, have Tribal implications, or preempt Tribal law. USDA continues to consult with Tribal officials to have a meaningful consultation and collaboration on the development and strengthening of USDA regulations. USDA will respond in a timely and meaningful manner to all Tribal government requests for consultation concerning this rule and will provide additional venues, such as Webinars and teleconferences, to periodically host collaborative conversations with Tribal leaders and their representatives concerning ways to improve this rule in Indian country. The Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 104–4) requires Federal agencies to assess the effects of their regulatory actions on State, local, and Tribal governments or the private sector. Agencies generally must prepare a written statement, including a cost benefit analysis, for proposed and final rules with Federal mandates that may result in expenditures of $100 million or more in any 1 year for State, local, or Tribal governments, in the aggregate, or to the private sector. UMRA generally requires agencies to consider alternatives and adopt the more cost effective or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates, as defined in Title II of UMRA, for State, local, and Tribal governments or the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of UMRA. Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) This rule has been determined to be Major under the Small Business Regulatory Enforcement Fairness Act of 1996, (Pub. L. 104–121) (SBREFA). E:\FR\FM\14APR2.SGM 14APR2 21096 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations SBREFA normally requires that an agency delay the effective date of a major rule for 60 days from the date of publication to allow for Congressional review. Section 808 of SBREFA allows an agency to make a major regulation effective immediately if the agency finds there is good cause to do so. Section 1601(c)(3) of the 2014 Farm Bill provides that the authority in Section 808 of SBREFA will be used in implementing the changes required by Title I of the 2014 Farm Bill, such as for the changes being made by this rule. Consistent with section 1601(c)(3) of the 2014 Farm Bill, FSA therefore finds that it would be contrary to the public interest to delay implementation of this rule because it would significantly delay implementation of the program changes required by the 2014 Farm Bill by impeding the conduct of future signups without having these additional changes to the program regulations in place. Therefore, this rule is effective on the date of its publication in the Federal Register. Federal Assistance Programs The titles and numbers of the Federal Domestic Assistance Programs found in the Catalog of Federal Domestic Assistance to which this rule applies are: 10.069—Conservation Reserve Program 10.088—Livestock Indemnity Program 10.089—Livestock Forage Disaster Program 10.091—Emergency Assistance for Livestock, Honeybees, and FarmRaised Fish Program 10.092—Tree Assistance Program 10.912—Environmental Quality Incentives Program 10.917—Agricultural Management Assistance Paperwork Reduction Act of 1995 The regulations in this rule are exempt from the requirements of the Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in section 1601(c) of the 2014 Farm Bill, which provides that these regulations be promulgated and administered without regard to the Paperwork Reduction Act. mstockstill on DSK4VPTVN1PROD with RULES2 E-Government Act Compliance FSA and CCC are committed to complying with the E-Government Act, to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. List of Subjects 7 CFR Part 1400 Agriculture, Loan programs— agriculture, Conservation, Price support programs. 7 CFR Part 1416 Dairy products, Indemnity payments, Pesticide and pests, Reporting and recordkeeping requirements. For the reasons discussed above, CCC and FSA amends 7 CFR parts 1400 and 1416 as follows: PART 1400—PAYMENT LIMITATION AND PAYMENT ELIGIBILITY 1. The authority citation continues to read as follows: ■ Authority: 7 U.S.C. 1308, 1308–1, 1308– 2, 1308–3, 1308–3a, 1308–4, and 1308–5. 2. The heading for part 1400 is revised to read as set forth above. ■ Subpart A—General Provisions ■ 3. Revise § 1400.1 to read as follows: § 1400.1 Applicability. (a) This part, except as otherwise noted, is applicable to all of the following programs and any other programs as specified in individual program regulations of this chapter: (1) The Agricultural Risk Coverage and Price Loss Coverage Programs and Transition Assistance for Producers of Upland Cotton, part 1412 of this chapter; (2) The Conservation Reserve Program (CRP), part 1410 of this chapter; (3) The Price Support programs in parts 1421 and 1434 of this chapter; (4) The Noninsured Crop Disaster Assistance Program (NAP), part 1437 of this chapter; (5) The Livestock Forage Disaster Program (LFP), Livestock Indemnity Program (LIP), and the Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program (ELAP), part 1416 of this chapter; (6) The Tree Assistance Program (TAP), part 1416 of this chapter; and (7) The Natural Resources Conservation Service (NRCS) conservation programs of this title including the Agricultural Management Assistance (AMA) program, Conservation Stewardship Program (CSP), Environmental Quality Incentives Program (EQIP), and Agricultural Conservation Easement Program (ACEP). (8) Subparts C and D of this part do not apply to the programs listed in paragraphs (a)(2) through (7) of this section. (b) This part will apply to the programs specified in: (1) Paragraphs (a)(1), (3), (4), (5), and (7) of this section on a crop year basis; (2) Paragraph (a)(2) of this section on a fiscal year basis; (3) Paragraph (a)(6) of this section on a calendar year basis; and (4) Paragraph (a)(7) of this section when funding is available. (c) This part will be used to determine the manner in which payments will be attributed to persons and legal entities for the payment limitations provided in this section and to other programs as specified in individual program regulations in this chapter. (d) Where more than one provision of this part may apply, the provision that is most restrictive on the program participant will be applied. (e) The payment limitations of this part are not applicable to: (1) Payments made under State conservation reserve enhancement program agreements approved by the Secretary, and (2) Payments made subject to this part if ownership interest in land or a commodity is transferred as the result of the death of a program participant and the new owner of the land or commodity has succeeded to the contract of the prior owner. If the successor is otherwise eligible, payments cannot exceed the amount the previous owner was entitled to receive at the time of death. (f) The following amounts are the limitations on payments per person or legal entity for the applicable period for each payment or benefit. Limitation per person or legal entity, per crop, program, or fiscal year Payment or benefit (1) Price Loss Coverage, Agricultural Risk Coverage, Loan Deficiency Program, and Marketing Loan Gain payments (other than Peanuts) ........................................................................................................................................................................................... VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4700 E:\FR\FM\14APR2.SGM 14APR2 $125,000 21097 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Limitation per person or legal entity, per crop, program, or fiscal year Payment or benefit (2) Price Loss Coverage, Agricultural Risk Coverage, Loan Deficiency Program, and Marketing Loan Gain payments for Peanuts ................................................................................................................................................................................................... (3) Transition Assistance for Producers of Upland Cotton 1 ............................................................................................................... (4) CRP annual rental payments 2 ....................................................................................................................................................... (5) NAP payments ............................................................................................................................................................................... (6) TAP ................................................................................................................................................................................................ (7) LIP, LFP, and ELAP 3 .................................................................................................................................................................... (8) CSP 4 .............................................................................................................................................................................................. (9) EQIP 5 ............................................................................................................................................................................................. (10) AMA program 6. ............................................................................................................................................................................ 125,000 40,000 50,000 125,000 125,000 125,000 200,000 450,000 50,000 1 Transition Assistance for Producers of Upland Cotton is only available in the 2014 and 2015 program years. contracts approved prior to October 1, 2008 may exceed the limitation, subject to payment limitation rules in effect on the date of contract approval. 3 Total payments received through LIP, LFP, and ELAP may not exceed $125,000. A separate limitation applies to TAP payments. (NOTE: For SURE payments for losses on or before September 30, 2011, the payment limit regulations in effect when those losses occurred apply. The SURE limit is separate from the payment limitation amount applicable to the LIP, LFP, TAP, and ELAP benefits authorized under the 2014 Farm Bill.) 4 The $200,000 limit is the total limit under all CSP contracts entered into subsequent to enactment of the 2014 Farm Bill during fiscal years 2014 through 2018. 5 The $450,000 limit is the total limit under all EQIP contracts entered into subsequent to enactment of the 2014 Farm Bill during fiscal years 2014 through 2018. 6 The $50,000 limit is the total limit that a participant may receive under the AMA program in any fiscal year. 2 CRP 4. Amend § 1400.3 as follows: a. Remove the definitions for ‘‘Average Adjusted Gross Farm Income’’ and ‘‘Average Adjusted Gross Nonfarm Income’’; and ■ b. Revise the definition for ‘‘Payment’’ to read as follows: ■ ■ § 1400.3 Definitions. * * * * Payment means: (1) Payments made in accordance with part 1412 of this chapter or successor regulation of this chapter; (2) CRP annual rental payments made in accordance with part 1410 of this chapter or successor regulation of this chapter; (3) NAP payments made in accordance with part 1437 of this chapter or successor regulation of this chapter; (4) ELAP, LIP, LFP, and TAP payments made in accordance with part 1416 of this chapter or successor regulations of this chapter: (5) Price support payments made in accordance with parts 1421 and 1434 of this chapter; and (6) For other programs, any payments designated in individual program regulations in this chapter. * * * * * mstockstill on DSK4VPTVN1PROD with RULES2 * Subpart F—Average Adjusted Gross Income Limitation 5. Amend § 1400.500 as follows: a. Revise paragraphs (a) and (b); b. Remove paragraph (c) through (e); and ■ c. Redesignate paragraphs (f) through (h) as paragraphs (c) through (e). ■ ■ ■ VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 The revisions read as follows: § 1400.500 § 1400.501 Determination of average adjusted gross income. (a) Except as otherwise provided in this subpart, average adjusted gross income means: * * * * * Frm 00013 Fmt 4701 Sfmt 4700 [Amended] 7. Amend § 1400.502 as follows: a. In paragraph (a)(3), at the end, remove the word ‘‘or’’; and ■ b. In paragraph (c), remove the words ‘‘provide necessary and accurate information to verify compliance, or failure to’’. ■ Applicability. (a) A person or legal entity, other than a joint venture or general partnership, will not be eligible to receive, directly or indirectly, certain program payments or benefits described in § 1400.1 if the average adjusted gross income of the person or legal entity exceeds $900,000 for the 3 taxable years preceding the most immediately preceding complete taxable year, as determined by the Deputy Administrator. (b) Determinations made under this subpart for conservation programs are: (1) Applicable starting with the 2015 fiscal year, except for AMA which is applicable with the 2014 fiscal year; (2) Based on the year for which the conservation program contract or agreement is approved; and (3) Applicable for the entire term of the subject agreement or contract. * * * * * ■ 6. Amend § 1400.501 as follows: ■ a. Revise paragraph (a) introductory text; ■ b. Remove paragraphs (a)(1) through (12), (b), and (c) introductory text; ■ b. Redesignate paragraphs (c)(1) through (6) as (a)(1) through (6); and ■ d. Redesignate paragraph (d) as paragraph (b). The revision reads as follows: PO 00000 § 1400.502 ■ ■ 8. Revise part 1416 to read as follows: PART 1416—EMERGENCY AGRICULTURAL DISASTER ASSISTANCE PROGRAMS Subpart A—General Provisions for Supplemental Agricultural Disaster Assistance Programs Sec. 1416.1 Applicability. 1416.2 Administration of ELAP, LFP, LIP, and TAP. 1416.3 Eligible producer. 1416.5 Equitable relief. 1416.6 Payment limitation. 1416.7 Misrepresentation. 1416.8 Appeals. 1416.9 Offsets, assignments, and debt settlement. 1416.10 Records and inspections. 1416.11 Refunds; joint and several liability. 1416.12 Minors. 1416.13 Deceased individuals or dissolved entities. 1416.14 Miscellaneous. Subpart B—Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program 1416.101 Applicability. 1416.102 Definitions. 1416.103 Eligible losses, adverse weather, and other loss conditions. 1416.104 Eligible livestock, honeybees, and farm-raised fish. E:\FR\FM\14APR2.SGM 14APR2 21098 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations 1416.105 Eligible producers, owners, and contract growers. 1416.106 Notice of loss and application process. 1416.107 Notice of loss and application period. 1416.108 Availability of funds. 1416.109 National Payment Rate. 1416.110 Livestock payment calculations. 1416.111 Honeybee payment calculations. 1416.112 Farm-raised fish payment calculations. Subpart C—Livestock Forage Disaster Program 1416.201 Applicability. 1416.202 Definitions. 1416.203 Eligible livestock producer. 1416.204 Covered livestock. 1416.205 Eligible grazing losses. 1416.206 Application for payment. 1416.207 Payment calculation. Subpart D—Livestock Indemnity Program 1416.301 Applicability. 1416.302 Definitions. 1416.303 Eligible owners and contract growers. 1416.304 Eligible livestock. 1416.305 Application process. 1416.306 Payment calculation. Subpart E—Tree Assistance Program 1416.400 Applicability. 1416.401 Administration. 1416.402 Definitions. 1416.403 Eligible losses. 1416.404 Eligible orchardists and nursery tree growers. 1416.405 Application. 1416.406 Payment Calculation. 1416.407 Obligations of a Participant. Authority: Title III, Pub. L. 109–234, 120 Stat. 474; 16 U.S.C. 3801, note. Subpart A—General Provisions for Supplemental Agricultural Disaster Assistance Programs mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.1 Applicability. (a) This subpart establishes general conditions for this subpart and subparts B through E of this part and applies only to those subparts. Subparts B through E cover the following programs authorized by the Agricultural Act of 2014 (Pub. L. 113–79, also referred to as the 2014 Farm Bill): (1) Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP); (2) Livestock Forage Disaster Program (LFP); (3) Livestock Indemnity Payments Program (LIP); and (4) Tree Assistance Program (TAP). (b) To be eligible for payments under these programs, participants must comply with all provisions under this subpart and the relevant particular subpart for that program. All other provisions of law also apply. VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 § 1416.2 Administration of ELAP, LFP, LIP, and TAP. (a) The programs in subparts B through E of this part will be administered under the general supervision and direction of the Administrator, Farm Service Agency (FSA) (who also serves as the Executive Vice-President, CCC), and the Deputy Administrator for Farm Programs, FSA (referred to as the ‘‘Deputy Administrator’’ in this part). (b) FSA representatives do not have authority to modify or waive any of the provisions of the regulations of this part as amended or supplemented, except as specified in paragraph (e) of this section. (c) The State FSA committee will take any action required by the regulations of this part that the county FSA committee has not taken. The State FSA committee will also: (1) Correct, or require a county FSA committee to correct, any action taken by such county FSA committee that is not in accordance with the regulations of this part or (2) Require a county FSA committee to withhold taking any action that is not in accordance with this part. (d) No provision or delegation to a State or county FSA committee will preclude the FSA Administrator, the Deputy Administrator, or a designee or other such person, from determining any question arising under the programs of this part, or from reversing or modifying any determination made by a State or county FSA committee. (e) The Deputy Administrator may authorize State and county FSA committees to waive or modify nonstatutory deadlines, or other program requirements of this part in cases where lateness or failure to meet such requirements does not adversely affect operation of the programs in this part. Participants have no right to an exception under this provision. The Deputy Administrator’s refusal to consider cases or circumstances or decision not to exercise this discretionary authority under this provision will not be considered an adverse decision and is not appealable. § 1416.3 Eligible producer. (a) In general, the term ‘‘eligible producer’’ means, in addition to other requirements as may apply, an individual or entity described in paragraph (b) of this section that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock on a farm either as the owner of the farm, when there is no contract grower, or a PO 00000 Frm 00014 Fmt 4701 Sfmt 4700 contract grower of the livestock when there is a contract grower. (b) To be eligible for benefits, an individual or legal entity must submit a farm operating plan for the purpose of payment limitation review in accordance with part 1400 of this chapter and be a: (1) Citizen of the United States; (2) Resident alien; for purposes of this part, resident alien means ‘‘lawful alien’’; (3) Partnership of citizens of the United States; or (4) Corporation, limited liability corporation, or other farm organizational structure organized under State law. § 1416.5 Equitable relief. The equitable relief provisions of part 718 of this title will not be used to obtain a different program result, payment, or benefit not otherwise available to a participant who satisfies any and all program eligibility provision, conditions of eligibility, or compliance provision. § 1416.6 Payment limitation. (a) For 2011, no person or legal entity, excluding a joint venture or general partnership, as determined according to the rules in part 1400 of this chapter may receive more than: (1) $125,000 total in 2011 program year payments under LFP, SURE, ELAP, and LIP combined when at least $25,000 of such total 2011 program year payments is from LFP or LIP for losses from October 1 through December 31, 2011. If no 2011 program year payments are issued under LFP or LIP for losses occurring from October 1, 2011, through December 31, 2011, the total amount of 2011 program year payments under LFP, SURE, ELAP, and LIP combined is limited to $100,000. (2) $125,000 for the 2011 program year under TAP. (b) For 2012 and subsequent program years, no person or legal entity, excluding a joint venture or general partnership, as determined by the rules in part 1400 of this chapter may receive, directly or indirectly, more than: (1) $125,000 per program year total under ELAP, LFP, and LIP combined; or (2) $125,000 per program year under TAP. (c) The Deputy Administrator may take such actions as needed to avoid a duplication of benefits under the programs provided for in this part, or duplication of benefits received in other programs, and may impose such crossprogram payment limitations as may be consistent with the intent of this part. (d) Beginning with the 2014 program year, if a producer is eligible to receive E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations benefits under this part is also eligible to receive assistance for the same loss under any other program, including, but not limited to, indemnities made under the Federal Crop Insurance Act (7 U.S.C. 1501–1524) or the noninsured crop disaster assistance program (7 U.S.C. 7333), then the producer must elect whether to receive benefits under this part or under the other program, but not both. (e) For losses incurred beginning on October 1, 2011, and for the purposes of administering LIP, LFP, ELAP, and TAP, the average adjusted gross income (AGI) limitation provisions in part 1400 of this chapter relating to limits on payments for persons or legal entities, excluding joint ventures and general partnerships, with certain levels of AGI will apply under this subpart and will apply to each applicant for ELAP, LFP, LIP, and TAP. Specifically, a person or legal entity with an average AGI that exceeds $900,000 will not be eligible to receive benefits under this part. (f) The direct attribution provisions in part 1400 of this chapter apply to ELAP, LFP, LIP, and TAP. Under those rules, any payment to any legal entity will also be considered for payment limitation purposes to be a payment to persons or legal entities with an interest in the legal entity or in a sub-entity. If any such interested person or legal entity is over the payment limitation because of payment made directly or indirectly or a combination thereof, then the payment to the actual payee will be reduced commensurate with the amount of the interest of the interested person in the payee. Likewise, by the same method, if anyone with a direct or indirect interest in a legal entity or sub-entity of a payee entity exceeds the AGI levels that would allow a participant to directly receive a payment under this part, then the payment to the actual payee will be reduced commensurately with that interest. For all purposes under this section, unless otherwise specified in part 1400 of this chapter, the AGI figure that will be relevant for a person or legal entity will be an average AGI for the three taxable years that precede the most immediately preceding complete taxable year, as determined by FSA. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.7 Misrepresentation. (a) A participant who is determined to have deliberately misrepresented any fact affecting a program determination made in accordance with this part, or any other part that is applicable to this part, to receive benefits for which the participant would not otherwise be entitled, will not be entitled to program payments and must refund all such payments received, plus interest as VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 determined in accordance with part 1403 of this chapter. The participant will also be denied program benefits for the immediately subsequent period of at least 2 crop years, and up to 5 crop years. Interest will run from the date of the original disbursement by CCC. (b) A participant will refund to CCC all program payments, in accordance with § 1416.11, received by such participant with respect to all contracts or applications, as may be applicable, if the participant is determined to have knowingly misrepresented any fact affecting a program determination. § 1416.8 Appeals. Appeal regulations in parts 11 and 780 of this title apply to this part. § 1416.9 Offsets, assignments, and debt settlement. (a) Any payment to any participant under this part will be made without regard to questions of title under State law, and without regard to any claim or lien against the commodity, or proceeds, in favor of the owner or any other creditor except agencies of the U.S. Government. The regulations governing offsets and withholdings in part 1403 of this chapter apply to payments made under this part. (b) Any participant entitled to any payment may assign any payment(s) in accordance with regulations governing the assignment of payments in part 1404 of this chapter. § 1416.10 Records and inspections. (a) Any participant receiving payments under any program in ELAP, LFP, LIP or TAP, or any other legal entity or person who provides information for the purposes of enabling a participant to receive a payment under ELAP, LFP, LIP, or TAP must: (1) Maintain any books, records, and accounts supporting the information for 3 years following the end of the year during which the request for payment was submitted, and (2) Allow authorized representatives of USDA and the Government Accountability Office, during regular business hours, to inspect, examine, and make copies of such books or records, and to enter the farm and to inspect and verify all applicable livestock and acreage in which the participant has an interest for the purpose of confirming the accuracy of information provided by or for the participant. (b) [Reserved] § 1416.11 liability. Refunds; joint and several (a) In the event that the participant fails to comply with any term, requirement, or condition for payment PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 21099 or assistance arising under ELAP, LFP, LIP, or TAP and if any refund of a payment to CCC will otherwise become due in connection with this part, the participant must refund to CCC all payments made in regard to such matter, together with interest and latepayment charges as provided for in part 1403 of this chapter provided that interest will in all cases run from the date of the original disbursement. (b) All persons with a financial interest in an operation or in an application for payment will be jointly and severally liable for any refund, including related charges, that is determined to be due CCC for any reason under this part. § 1416.12 Minors. A minor child is eligible to apply for program benefits under ELAP, LFP, LIP, or TAP if all the eligibility requirements are met and the provision for minor children in part 1400 of this chapter are met. § 1416.13 Deceased individuals or dissolved entities. (a) Payments may be made for eligible losses suffered by an eligible participant who is now a deceased individual or is a dissolved entity if a representative, who currently has authority to act on behalf of the estate of the deceased participant, signs the application for payment. (b) Legal documents showing proof of authority to sign for the deceased individual or dissolved entity must be provided. (c) If a participant is now a dissolved general partnership or joint venture, all members of the general partnership or joint venture at the time of dissolution or their duly authorized representatives must sign the application for payment. § 1416.14 Miscellaneous. (a) As a condition to receive benefits under ELAP, LFP, LIP, or TAP, a participant must have been in compliance with the applicable provisions of parts 12 and 718 of this title and 1400 of this chapter, and must not otherwise be precluded from receiving benefits under those provisions or under any law. (b) [Reserved] Subpart B—Emergency Assistance for Livestock, Honeybees, and FarmRaised Fish Program § 1416.101 Applicability. (a) This subpart establishes the terms and conditions under which the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) will be administered. E:\FR\FM\14APR2.SGM 14APR2 21100 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (b) Eligible producers of livestock, honeybees, and farm-raised fish will be compensated for eligible losses due to an eligible adverse weather or eligible loss condition that occurred in the program year for which the producer requests benefits. The eligible loss must have been a direct result of eligible adverse weather or eligible loss conditions as determined by the Deputy Administrator. ELAP does not cover losses that are covered under LFP or LIP. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.102 Definitions. The following definitions apply to this subpart and to the administration of ELAP. The definitions in parts 718 of this title and 1400 of this chapter also apply, except where they conflict with the definitions in this section. Adult beef bull means a male beef breed bovine animal that was used for breeding purposes that was at least 2 years old before the beginning date of the eligible adverse weather or eligible loss condition. Adult beef cow means a female beef breed bovine animal that had delivered one or more offspring before the beginning date of the eligible adverse weather or eligible loss condition. A first-time bred beef heifer is also considered an adult beef cow if it was pregnant on or by the beginning date of the eligible adverse weather or eligible loss condition. Adult buffalo and beefalo bull means a male animal of those breeds that was used for breeding purposes and was at least 2 years old before the beginning date of the eligible adverse weather or eligible loss condition. Adult buffalo and beefalo cow means a female animal of those breeds that had delivered one or more offspring before the beginning date of the eligible adverse weather or eligible loss condition. A first-time bred buffalo or beefalo heifer is also considered an adult buffalo or beefalo cow if it was pregnant by the beginning date of the eligible adverse weather or eligible loss condition. Adult dairy bull means a male dairy breed bovine animal that was used primarily for breeding dairy cows and was at least 2 years old by the beginning date of the eligible adverse weather or eligible loss condition. Adult dairy cow means a female bovine dairy breed animal used for the purpose of providing milk for human consumption that had delivered one or more offspring by the beginning date of the eligible adverse weather or eligible loss condition. A first-time bred dairy heifer is also considered an adult dairy cow if it was pregnant by the beginning VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 date of the eligible adverse weather or eligible loss condition. Agricultural operation means a farming operation. APHIS means the Animal and Plant Health Inspection Service. Application means CCC or FSA form used to apply for either the emergency loss assistance for livestock or emergency loss assistance for farmraised fish or honeybees. Aquatic species means any species of aquatic organism grown as food for human consumption, fish raised as feed for fish that are consumed by humans, or ornamental fish propagated and reared in an aquatic medium by a commercial operator on private property in water in a controlled environment. Catfish and crawfish are both defined as aquatic species for ELAP. However, aquatic species do not include reptiles or amphibians. Bait fish means small fish caught for use as bait to attract large predatory fish. For ELAP, it also must meet the definition of aquatic species and not be raised as food for fish; provided, however, that only bait fish produced in a controlled environment are eligible for payment under ELAP. Beginning farmer or rancher means a person or legal entity, including all members, shareholders, partners, beneficiaries, etc., (as fits the circumstances) of an entity, who for a program year both: (1) Has not operated a farm or ranch in the previous consecutive 10 years, and (2) Will have or has had for the relevant period materially and substantially participated in the operation of a farm or ranch. Buck means a male goat. Cattle tick fever means a severe and often fatal disease that destroys red blood cells of cattle, commonly known as Texas or cattle fever, which is spread by Rhipicephalus (Boophilus) annulatus, and the southern cattle tick, R. (Boophilus) microplus. Commercial use means used in the operation of a business activity engaged in as a means of livelihood for profit by the eligible producer. Contract means, with respect to contracts for the handling of livestock, a written agreement between a livestock owner and another individual or entity setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock or livestock products. Controlled environment means an environment in which everything that can practicably be controlled by the participant with structures, facilities, and growing media (including, but not PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 limited to, water and nutrients) was in fact controlled by the participant at the time of the eligible adverse weather or eligible loss condition. County committee or county office means the respective FSA committee or office. Deputy Administrator or DAFP means the Deputy Administrator for Farm Programs, Farm Service Agency, U.S. Department of Agriculture or the designee. Eligible adverse weather means, as determined by the Deputy Administrator, an extreme or abnormal damaging weather event that is not expected to occur during the loss period, which results in eligible losses. The eligible adverse weather would have resulted in agricultural losses not covered by other programs in this part for which the Deputy Administrator determines financial assistance should be provided to producers. Adverse weather may include, but is not limited to, blizzard, winter storms, and wildfires. Specific eligible adverse weather may vary based on the type of loss. Identification of eligible adverse weather will include locations (National, State, or county-level) and start and end dates. Eligible drought means that any area of the county has been rated by the U.S. Drought Monitor as having a D3 (extreme drought) intensity: (1) At any time during the program year, for additional honeybee feed loss; (2) That directly impacts water availability at any time during the normal grazing period (for example, snow pack that feeds streams and springs), as determined by the Deputy Administrator or designee, for losses resulting from transporting water to livestock. Eligible grazing land means land that is native or improved pastureland with permanent vegetative cover or land planted to a crop planted specifically for the purpose of providing grazing for eligible livestock. Eligible loss condition means a condition that would have resulted in agricultural losses not covered by other programs in this part for which the Deputy Administrator determines financial assistance needs to be provided to producers. Specific eligible loss conditions include, but are not limited to, disease (including cattle tick fever), insect infestation, and colony collapse disorder. Identification of eligible loss conditions will include locations (National, State, or countylevel) and start and end dates. Eligible winter storm means a storm that lasts for at least three consecutive days and is accompanied by high winds, E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations freezing rain or sleet, heavy snowfall, and extremely cold temperatures. Equine animal means a domesticated horse, mule, or donkey. Ewe means a female sheep. Farming operation means a business enterprise engaged in producing agricultural products. Farm-raised fish means any aquatic species that is propagated and reared in a controlled environment. FSA means the Farm Service Agency. Game or sport fish means fish pursued for sport by recreational anglers; provided, however, that only game or sport fish produced in a controlled environment can generate claims under ELAP. Goat means a domesticated, ruminant mammal of the genus Capra, including Angora goats. Goats are further delineated into categories by sex (bucks and nannies) and age (kids). Grazing loss means the value, as calculated in § 1416.110(g) or (m), of eligible grazing lost due to an eligible adverse weather or eligible loss condition based on the number of days that the eligible livestock were not able to graze the eligible grazing land during the normal grazing period. Kid means a goat less than 1 year old. Lamb means a sheep less than 1 year old. Limited resource farmer or rancher means a producer who is both: (1) A producer whose direct or indirect gross farm sales do not exceed $176,800 (2014 program year) in each of the 2 calendar years that precede the complete taxable year before the relevant program year (for example, for the 2014 program year, the two years would be 2012 and 2011), adjusted upwards in later years for any general inflation, and (2) A producer whose total household income was at or below the national poverty level for a family of four in each of the same two previous years referenced in paragraph (1) of this definition. (Limited resource farmer or rancher status can be determined using a Web site available through the Limited Resource Farmer and Rancher Online Self Determination Tool through National Resource and Conservation Service at http:// www.lrftool.sc.egov.usda.gov/tool.aspx.) Livestock owner, for death loss purposes, means one having legal ownership of the livestock for which benefits are being requested on the day such livestock died due to an eligible adverse weather or eligible loss condition. For all other purposes of loss under ELAP, ‘‘livestock owner’’ means one having legal ownership of the livestock for which benefits are being VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 requested during the 60 days prior to the beginning date of the eligible adverse weather or eligible loss condition. Nanny means a female goat. Non-adult beef cattle means a beef breed bovine animal that does not meet the definition of adult beef cow or bull. Non-adult beef cattle are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time they died. For a loss other than death, means a bovine animal less than 2 years old that that weighed 500 pounds or more on or before the beginning date of the eligible adverse weather or eligible loss condition. Non-adult buffalo or beefalo means an animal of those breeds that does not meet the definition of adult buffalo or beefalo cow or bull. Non-adult buffalo or beefalo are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time of death. For a loss other than death, means an animal of those breeds that is less than 2 years old that weighed 500 pounds or more on or before the beginning date of the eligible adverse weather or eligible loss condition. Non-adult dairy cattle means a bovine dairy breed animal used for the purpose of providing milk for human consumption that does not meet the definition of adult dairy cow or bull. Non-adult dairy cattle are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time they died. For a loss other than death, means a bovine dairy breed animal used for the purpose of providing milk for human consumption that is less than 2 years old that weighed 500 pounds or more on or before the beginning date of the eligible adverse weather or eligible loss condition. Normal grazing period, with respect to a county, means the normal grazing period during the calendar year with respect to each specific type of grazing land or pastureland in the county. Normal mortality means the numerical amount, computed by a percentage of expected livestock, honeybee colony and farm-raised fish deaths, by category, that normally occur during a program year for a producer, as established for the area by the FSA State Committee for livestock and farm-raised fish, and as established nationwide by the Deputy Administrator for honeybee colonies. Poultry means domesticated chickens, turkeys, ducks, and geese. Poultry are further delineated into categories by sex, age, and purpose of production as determined by FSA. PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 21101 Program year means from October 1 through September 30 of the fiscal year in which the loss occurred. Ram means a male sheep. Reliable record means any nonverifiable record available that reasonably supports the eligible loss, as determined acceptable by the COC. Secretary means the Secretary of Agriculture or a designee of the Secretary. Sheep means a domesticated, ruminant mammal of the genus Ovis. Sheep are further defined by sex (rams and ewes) and age (lambs) for purposes of dividing into categories for loss calculations. Socially disadvantaged farmer or rancher means a farmer or rancher who is a member of a socially disadvantaged group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities. For a legal entity to be considered ‘‘socially disadvantaged’’ a majority of the persons in the entity must in their individual capacities meet this definition. Socially disadvantaged groups include the following and no others unless approved in writing by the Deputy Administrator: (1) American Indians or Alaskan Natives; (2) Asians or Asian-Americans; (3) Blacks or African Americans; (4) Native Hawaiians or other Pacific Islanders, (5) Hispanics; and (6) Women. State committee, State office, county committee, or county office means the respective FSA committee or office. Swine means a domesticated omnivorous pig, hog, or boar. Swine for purposes of dividing into categories for loss calculations are further delineated into categories by sex and weight as determined by FSA. United States means all 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico and any other territory or possession of the United States. U.S. Drought Monitor is a system for classifying drought severity according to a range of abnormally dry to exceptional drought. It is a collaborative effort between Federal and academic partners, produced on a weekly basis, to synthesize multiple indices, outlooks, and drought impacts on a map and in narrative form. This synthesis of indices is reported by the National Drought Mitigation Center at http:// droughtmonitor.unl.edu. Should an eligible area not be covered by the U.S. Drought Monitor, the Deputy E:\FR\FM\14APR2.SGM 14APR2 21102 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Administrator, in consultation with appropriate weather-related agencies and experts, will establish procedures for rating drought intensity using the same range of categories as the U.S. Drought Monitor and use this information in place of the missing data for eligibility purposes. Verifiable record means a document provided by the producer that can be verified by the County Committee (COC) through an independent source and is used to substantiate the claimed loss. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.103 Eligible losses, adverse weather, and other loss conditions. (a) An eligible loss covered under this subpart is a loss that an eligible producer or contract grower of livestock, honeybees, or farm-raised fish incurs due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator. (b) A loss covered under LFP or LIP is not eligible for ELAP. (c) To be eligible, the loss must have occurred during the program year for which payment is being requested. (d) For a livestock feed loss to be considered an eligible loss, the livestock feed loss must be one of the following: (1) Loss of purchased forage or feedstuffs that was intended for use as feed for the participant’s eligible livestock as specified in § 1416.104(a) that was physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. The loss must be due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, blizzard, eligible winter storms, flood, hurricane, lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-Federal land; (2) Loss of mechanically harvested forage or feedstuffs intended for use as feed for the participant’s eligible livestock as specified in § 1416.104(a) that was physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. The loss must have occurred after harvest due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, blizzard, eligible winter storms, flood, hurricane, lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-Federal land; (3) A loss resulting from the additional cost of purchasing additional livestock feed, above normal quantities, VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 required to maintain the eligible livestock as specified in § 1416.104(a) during an eligible adverse weather or eligible loss condition, until additional livestock feed becomes available, as determined by the Deputy Administrator. To be eligible, the additional feed purchased above normal quantities must be feed that is fed to maintain livestock in the county where the eligible adverse weather or eligible loss condition occurred. Eligible adverse weather or eligible loss conditions, as determined by the Deputy Administrator, including, but not limited to, blizzard, eligible winter storms, flood, hurricane, lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-Federal land; (4) A loss resulting from the additional cost incurred for transporting livestock feed to eligible livestock as specified in § 1416.104(a) due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, costs associated with equipment rental fees for hay lifts and snow removal. To be eligible, the loss must be incurred in combination with a loss described in paragraphs (d)(1), (2), or (3) of this section. The additional costs incurred must have been incurred for losses suffered in the county where the eligible adverse weather or eligible loss condition occurred. Eligible adverse weather or eligible loss conditions, as determined by the Deputy Administrator, include, but not limited to, blizzard, eligible winter storms, flood, hurricane, lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-Federal land; (5) For 2014 and subsequent program years, a loss resulting from the additional cost of transporting water to eligible livestock as specified in § 1416.104(a) due to an eligible drought, including, but not limited to, costs associated with water transport equipment rental fees, labor, and contracted water transportation fees. The cost of the water is not eligible for payment. Transporting water to livestock located on land enrolled in CRP is not an eligible loss under this program. To be eligible for additional cost of transporting water to eligible livestock, the livestock must be on eligible grazing lands that meet all of the following: (i) Physically located in the county where the eligible adverse weather or eligible loss condition occurred; (ii) That had adequate livestock watering systems or facilities before the eligible adverse weather or eligible loss condition occurred; and PO 00000 Frm 00018 Fmt 4701 Sfmt 4700 (iii) That the producer is not normally required to transport water to the grazing land. (e) For a grazing loss to be considered eligible, the grazing loss must have been incurred: (1) During the normal grazing period, as specified in § 1416.102; (2) On eligible grazing land that is physically located in the county where the eligible adverse weather or eligible loss condition occurred; (3) Due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, blizzard, eligible winter storm, flood, hurricane, hail, lightning, tidal surge, volcanic eruption, and wildfire on non-Federal land. The grazing loss will not be eligible if it is due to an adverse weather condition covered by LFP as specified in subpart C of this part, such as drought or wildfire on federally managed land where the producer is prohibited by the Federal agency from grazing the normally permitted livestock on the managed rangeland due to a fire. (f) For a loss resulting from the additional cost associated with gathering livestock to treat for cattle tick fever, the livestock treated for cattle tick fever must be considered eligible livestock as specified in § 1416.104(d). To be considered an eligible loss, acceptable records, as determined by the Deputy Administrator, must be on file with APHIS, that provide the number of livestock treated for cattle tick fever and the number of treatments given during the program year. (g) For a loss due to livestock death to be considered eligible, the livestock death must have occurred in the county where the eligible loss condition occurred. The livestock death must be in excess of normal mortality and due to an eligible loss condition determined as eligible by the Deputy Administrator and not related to eligible adverse weather, as specified in subpart D of this part for LIP. (h) For honeybee feed or farm-raised fish feed losses to be considered an eligible loss, the honeybee feed or farmraised fish feed loss must be one of the following: (1) Loss of honeybee feed or farmraised fish feed that was intended as feed for the participant’s eligible honeybees or farm-raised fish that was physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. The loss must be due to an eligible adverse weather or eligible loss condition, as determined by the Deputy E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Administrator, including, but not limited to, earthquake, flood, hurricane, lightning, tidal surge, tornado, volcanic eruption, and wildfire. (2) A loss resulting from the additional cost of purchasing additional honeybee feed, above normal quantities, required to maintain the honeybees during an eligible adverse weather or eligible loss condition, until additional honeybee feed becomes available, as determined by the Deputy Administrator. To be eligible the additional feed purchased above normal quantities must be feed that is fed to maintain honeybees in the county where the eligible adverse weather or eligible loss condition occurred. The loss must be due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, earthquake, early fall frost, excessive rainfall, flood, hurricane, late spring frost, lightning, tidal surge, tornado, volcanic eruption, wildfire and eligible drought, as specified in § 1416.102. (i) For honeybee colony or honeybee hive losses to be considered eligible, the hive producer must have incurred the loss in the county where the eligible adverse weather or eligible loss condition occurred. The honeybee colony or hive losses must be due to an eligible adverse weather or eligible loss condition, as determined by the Deputy Administrator, including, but not limited to, colony collapse disorder, earthquake, eligible winter storm, as specified in § 1416.102, excessive wind, flood, hurricane, lightning, tornado, volcanic eruption, and wildfire. To be considered an eligible honeybee colony loss, the colony loss must be in excess of normal mortality, as established by the Deputy Administrator, and the loss could not have been prevented through reasonable and available measures. Acceptable documentation must be provided upon request by FSA to demonstrate an eligible loss occurred, was associated with an eligible adverse weather event or loss condition, and that generally accepted husbandry and production practices had been followed. (j) For death losses of bait fish, game fish, or other aquatic species, as determined by the Deputy Administrator, to be considered eligible, the producer must have incurred the fish loss, in excess of normal mortality, in the county where the eligible adverse weather or eligible loss condition occurred. The fish death must be due to an eligible adverse weather or eligible loss condition as determined by the Deputy Administrator including, but not limited to, earthquake, flood, hurricane, VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 tidal surge, tornado, and volcanic eruption. § 1416.104 Eligible livestock, honeybees, and farm-raised fish. (a) To be considered eligible livestock for livestock grazing and feed, losses resulting from transporting water, and gathering livestock to treat for cattle tick fever, livestock must meet all the following conditions: (1) Be alpacas, adult or non-adult dairy cattle, adult or non-adult beef cattle, adult or non-adult buffalo, adult or non-adult beefalo, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep, or swine; (2) Except for livestock losses resulting from gathering livestock to treat cattle tick fever, be livestock that would normally have been grazing the eligible grazing land or pastureland during the normal grazing period for the specific type of grazing land or pastureland for the county where the eligible adverse weather or eligible loss condition occurred; (3) Be livestock that is owned, cashleased, purchased, under contract for purchase, or been raised by a contract grower or an eligible livestock producer, during the 60 days prior to the beginning date of the eligible adverse weather or eligible loss condition; (4) Be livestock that has been maintained for commercial use as part of the producer’s farming operation on the beginning date of the eligible adverse weather or eligible loss condition; (5) Be livestock that has not been produced and maintained for reasons other than commercial use as part of a farming operation; and (6) Be livestock that was not in a feedlot, on the beginning date of the eligible adverse weather or eligible loss condition, as a part of the normal business operation of the producer, as determined by the Deputy Administrator. (b) The eligible livestock types for grazing and feed losses, losses resulting from transporting water and gathering livestock to treat for cattle tick fever, are: (1) Adult beef cows or bulls, (2) Adult buffalo or beefalo cows or bulls, (3) Adult dairy cows or bulls, (4) Alpacas, (5) Deer, (6) Elk, (7) Emus, (8) Equine, (9) Goats, (10) Llamas, (11) Non-adult beef cattle, (12) Non-adult buffalo or beefalo, PO 00000 Frm 00019 Fmt 4701 Sfmt 4700 21103 (13) Non-adult dairy cattle, (14) Poultry, (15) Reindeer, (16) Sheep, and (17) Swine. (c) Ineligible livestock for grazing and feed losses, and losses resulting from transporting water, include, but are not limited to: (1) Livestock that were or would have been in a feedlot, on the beginning date of the eligible adverse weather or eligible loss condition, as a part of the normal business operation of the producer, as determined by FSA; (2) Yaks; (3) Ostriches; (4) All beef and dairy cattle, and buffalo and beefalo that weighed less than 500 pounds on the beginning date of the eligible adverse weather or eligible loss condition; (5) Any wild free roaming livestock, including horses and deer; and (6) Livestock produced or maintained for reasons other than commercial use as part of a farming operation, including, but not limited to, livestock produced or maintained exclusively for recreational purposes, such as: (i) Roping, (ii) Hunting, (iii) Show, (iv) Pleasure, (v) Use as pets, or (vi) Consumption by owner. (d) For death losses for livestock owners to be eligible, the livestock must meet all of the following conditions: (1) Be alpacas, adult or non-adult dairy cattle, beef cattle, beefalo, buffalo, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep, or swine, and meet all the conditions in paragraph (f) of this section. (2) Be one of the following categories of animals for which calculations of eligibility for payments will be calculated separately for each producer with respect to each category: (i) Adult beef bulls; (ii) Adult beef cows; (iii) Adult buffalo or beefalo bulls; (iv) Adult buffalo or beefalo cows; (v) Adult dairy bulls; (vi) Adult dairy cows; (vii) Alpacas; (viii) Chickens, broilers, pullets; (ix) Chickens, chicks; (x) Chickens, layers, roasters; (xi) Deer; (xii) Ducks; (xiii) Ducks, ducklings; (xiv) Elk; (xv) Emus; (xvi) Equine; (xvii) Geese, goose; (xviii) Geese, gosling; (xix) Goats, bucks; E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 21104 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (xx) Goats, nannies; (xxi) Goats, kids; (xxii) Llamas; (xxiii) Non-adult beef cattle; (xxiv) Non-adult buffalo or beefalo; (xxv) Non-adult dairy cattle; (xxvi) Reindeer; (xxvii) Sheep, ewes; (xxviii) Sheep, lambs; (xxix) Sheep, rams; (xxx) Swine, feeder pigs under 50 pounds; (xxxi) Swine, sows, boars, barrows, gilts 50 to 150 pounds; (xxxii) Swine, sows, boars, barrows, gilts over 150 pounds; (xxxiii) Turkeys, poults; and (xxxiv) Turkeys, toms, fryers, and roasters. (e) Under ELAP, ‘‘contract growers’’ will only be deemed to include producers of livestock, other than feedlots, whose income is dependent on the actual weight gain and survival of the livestock. For death losses for contract growers to be eligible, the livestock must meet all of the following conditions: (1) Be poultry or swine and meet all the conditions in paragraph (f) of this section. (2) Be one of the following categories of animals for which calculations of eligibility for payments will be calculated separately for each contract grower with respect to each category: (i) Chickens, broilers, pullets; (ii) Chickens, layers, roasters; (iii) Geese, goose; (iv) Swine, boars, sows; (v) Swine, feeder pigs; (vi) Swine, lightweight barrows, gilts; (vii) Swine, sows, boars, barrows, gilts; and (viii) Turkeys, toms, fryers, and roasters. (f) For livestock death losses to be considered eligible livestock for the purpose of generating payments under this subpart, livestock must meet all of the following conditions: (1) They must have died: (i) On or after the beginning date of the eligible loss condition; and (ii) On or after October 1, 2011, and no later than 60 calendar days from the ending date of the eligible loss condition; and (iii) As a direct result of an eligible loss condition that occurs on or after October 1, 2011, and (iv) In the program year for which payment is being requested; and (2) Been maintained for commercial use as part of a farming operation on the day the livestock died; and (3) Before dying, not have been produced or maintained for reasons other than commercial use as part of a VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 farming operation, such non-eligible uses being understood to include, but not be limited to, any uses of wild free roaming animals or use of the animals for recreational purposes, such as pleasure, hunting, roping, pets, or for show. (g) For honeybee colony, hive, and feed losses to be eligible, the honeybee colony must meet the following conditions: (1) Been maintained for the purpose of producing honey or pollination for commercial use in a farming operation on the beginning date of the eligible adverse weather or eligible loss condition; (2) Been physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition; (3) Been a honeybee colony in which the participant has a risk in the honey production or pollination farming operation on the beginning date of the eligible adverse weather or eligible loss condition; (4) Been a honeybee colony for which the producer had an eligible loss of a honeybee colony, honeybee hive, or honeybee feed; the feed must have been intended as feed for honeybees. (h) For fish to be eligible to generate payments under ELAP, the fish must be produced in a controlled environment and the farm-raised fish must: (1) For feed losses: (i) Be an aquatic species that is propagated and reared in a controlled environment; (ii) Be maintained and harvested for commercial use as part of a farming operation; and (iii) Be physically located in the county where the eligible adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. (2) For death losses: (i) Be bait fish, game fish, or another aquatic species deemed eligible by the Deputy Administrator that are propagated and reared in a controlled environment; (ii) Been maintained for commercial use as part of a farming operation; and (iii) Been physically located in the county where the eligible loss adverse weather or eligible loss condition occurred on the beginning date of the eligible adverse weather or eligible loss condition. § 1416.105 Eligible producers, owners, and contract growers. (a) To be considered an eligible livestock producer for feed losses and PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 losses resulting from transporting water and gathering livestock to treat for cattle tick fever and to receive payments, the participant must have: (1) Owned, cash-leased, purchased, entered into a contract to purchase, or been a contract grower of eligible livestock during the 60 days prior to the beginning date of the eligible adverse weather or eligible loss condition; and (2) Had a loss that is determined to be eligible as specified in § 1416.103(d) or (f). (b) To be considered an eligible livestock producer for grazing losses and to receive payments, the participant must have: (1) Owned, cash-leased, purchased, entered into a contract to purchase, or been a contract grower of eligible livestock during the 60 days prior to the beginning date of the eligible adverse weather or eligible loss condition; (2) Had a loss that is determined to be eligible as specified in § 1416.103(e); (3) Had eligible livestock that would normally have been grazing the eligible grazing land or pastureland during the normal grazing period for the specific type of grazing land or pastureland for the county; (4) Provided for the eligible livestock pastureland or grazing land, including cash leased pastureland or grazing land for eligible livestock that is physically located in the county where the eligible adverse weather or loss condition occurred during the normal grazing period for the county. (c) For livestock death losses to be eligible the producer must have had a loss that is determined to be eligible as specified in § 1416.103(g) and in addition to other eligibility rules that may apply to be eligible as a: (1) Livestock owner for the payment with respect to the death of an animal under this subpart, the applicant must have had legal ownership of the livestock on the day the livestock died and under conditions in which no contract grower could have been eligible for ELAP payment with respect to the animal. Eligible types of animal categories for which losses can be calculated for an owner are specified in § 1416.104(d). (2) Contract grower for ELAP payment with respect to the death of an animal, the animal must be in one of the categories specified in § 1416.104(e), and the contract grower must have had: (i) A written agreement with the owner of eligible livestock setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock; (ii) Control of the eligible livestock on the day the livestock died; and E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (iii) A risk of loss in the animal. (d) To be considered an eligible honeybee producer, a participant must have an interest and risk in an eligible honeybee colony, as specified in § 1416.104(g), for the purpose of producing honey or pollination for commercial use as part of a farming operation and must have had a loss that is determined to be eligible as specified in § 1416.103(h) or (i). (e) To be considered an eligible farmraised fish producer for feed and death loss purposes, the participant must have produced eligible farm-raised fish, as specified in § 1416.104(h), with the intent to harvest for commercial use as part of a farming operation and must have had a loss that is determined to be eligible as specified in § 1416.103(h) or (j); (f) A producer seeking payments must not be ineligible under the restrictions applicable to foreign persons contained in § 1416.3(b) and must meet all other requirements of subpart A of this part and other applicable USDA regulations. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.106 process. Notice of loss and application (a) To apply for ELAP, the participant that suffered eligible livestock, honeybee, or farm-raised fish losses must submit, to the FSA administrative county office that maintains the participant’s farm records for the agricultural operation, the following: (1) A notice of loss to FSA as specified in § 1416.107(a), (2) A completed application as specified in § 1416.107(b) for one or both of the following: (i) For livestock feed, grazing, and death losses and losses resulting from transporting water and gathering livestock to treat for cattle tick fever, a completed Emergency Loss Assistance for Livestock Application; (ii) For honeybee feed, honeybee colony, honeybee hive, or farm-raised fish feed or death losses, a completed Emergency Loss Assistance for Honeybees or Farm-Raised Fish Application; (3) A report of acreage, if applicable, as determined by the Deputy Administrator; (4) A copy of the participant’s grower contract, if the participant is a contract grower; (5) Other supporting documents required for FSA to determine eligibility of the participant, livestock, honeybee colonies, hives, farm-raised fish, and loss; (6) A farm operating plan, if a current farm operating plan is not already on file in the FSA county office; and VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 (7) A socially disadvantaged, limited resource and beginning farmer or rancher certification, if applicable. (b) For 2014 and previous program years, available reliable or verifiable records must be provided only upon request by FSA. For 2015 and subsequent program years, for livestock grazing losses, participant must provide acceptable, verifiable, or reliable records that: (1) Additional livestock feed was fed to sustain eligible livestock during an eligible adverse weather or loss condition, or (2) Eligible livestock were removed from the eligible grazing land where the grazing loss occurred. (c) For livestock, honeybee, or farmraised fish feed losses, participant must provide acceptable, verifiable, or reliable records of the following as determined by the COC: (1) Purchased feed intended as feed for livestock, honeybees, or farm-raised fish that was lost, or additional feed purchased above normal quantities to sustain livestock, honeybees, and farmraised fish for a period of time, not to exceed 150 days, until additional feed becomes available, due to an eligible adverse weather or eligible loss condition. Verifiable or reliable records may include, but are not limited to, feed receipts, invoices, settlement sheets, warehouse ledger sheets, load summaries, register tapes, and contemporaneous records. (2) Harvested feed intended as feed for livestock, honeybees, or farm-raised fish that was lost due to an eligible adverse weather or eligible loss condition. Verifiable or reliable records may include, but are not limited to, weight tickets, truck scale tickets, pick records, contemporaneous records used to verify that the crop was stored with the intent to feed the crop to livestock, honeybees, or farm-raised fish, and custom harvest documents that clearly identify the amount of feed produced from the applicable acreage. (3) A loss resulting from the additional cost incurred for transporting livestock feed to eligible livestock due to an eligible adverse weather or eligible loss condition as determined by the Deputy Administrator, including, but not limited to, costs associated with equipment rental fees for hay lifts and snow removal. Verifiable or reliable records may include, but are not limited to, invoices, commercial receipts, load summaries, and contemporaneous records used to verify transportation cost of additional livestock feed. (4) Additional cost of transporting water to eligible livestock due to an eligible adverse weather or eligible loss PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 21105 condition as determined by the Deputy Administrator, including, but not limited to, costs associated with water transport equipment rental fees, labor, and contracted water transportation fees. Verifiable or reliable records include, but are not limited to, commercial receipts, contemporaneous records and invoices. Records must clearly indicate the dates on which water was transported and the total gallons transported. (d) For eligible honeybee colony, honeybee hive and farm-raised fish losses, the participant must provide verifiable or reliable records of honeybee colony, hive, or farm-raised fish losses. For honeybee colony and hive losses, the participant must also provide verifiable or reliable records of inventory at the beginning of the program year, and records of purchase and sale transactions of honeybee colonies and hives throughout the program year. For farm-raised fish losses, the participant must also provide verifiable or reliable records of inventory on the beginning date and ending date of the eligible adverse weather or eligible loss condition. Verifiable and reliable records may include, but are not limited to, any combination of the following: (1) A report of acreage, (2) Loan records, (3) Private insurance documents, (4) Property tax records, (5) Sales and purchase receipts, (6) State colony registration documentation, and (7) Chattel inspections. (e) For eligible livestock death losses that occur during the 2015 and subsequent program years, the participant must provide proof of livestock death, current physical location of livestock in inventory, and physical location of claimed livestock at the time of death, according to the documentation requirements for the Livestock Indemnity Program in § 1416.305(d) through (f). (f) For eligible livestock death losses that occur during the 2012, 2013, and 2014 program years, the participant must provide proof of death and livestock inventory, according to the documentation requirements for the Livestock Indemnity Program in § 1416.305 (h). (g) If verifiable or reliable records are not available or provided, as required in paragraphs (b) through (d) of this section, the COC may accept producer’s certification of losses if similar producers have comparable losses, as determined by the COC and approved by the STC (FSA State Committee). E:\FR\FM\14APR2.SGM 14APR2 21106 § 1416.107 period. Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Notice of loss and application (a) In addition to submitting an application for payment at the appropriate time, the participant that suffered eligible livestock, honeybee, or farm-raised fish losses that create or could create a claim for benefits must: (1) For losses in program years 2012 and 2013, provide a separate notice of loss for each program year to FSA no later than August 1, 2014, (2) For losses that occur in program year 2014, provide a notice of loss to FSA no later than November 1, 2014, (3) For losses that occur in program year 2015 and subsequent years, the participant must provide a notice of loss to FSA within the earlier of: (i) 30 calendar days of when the loss is apparent to the participant; or (ii) November 1 following the program year for which benefits are being requested. (4) Submit the notice of loss required in paragraph (a) of this section to the administrative FSA county office, unless additional options are otherwise provided for by the Deputy Administrator. (b) In addition to the notices of loss required in paragraph (a) of this section, a participant must also submit a completed application for payment no later than: (1) For the 2012 and 2013 program years, August 1, 2014, or (2) For 2014 and subsequent program years, November 1 following the program year for which benefits are being requested. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.108 Availability of funds. Not more than $20 million for fiscal year 2012 and each succeeding fiscal year will be approved for this program by the Secretary. Within that cap, the only funds that will be considered available to pay eligible losses will be that amount approved by the Secretary. Payments will not be made for claims arising out of a particular program year until, for all claims for that program year, the time for applying for a payment has passed. In the event that, within the limits of the funding made available by the Secretary within the statutory cap, approval of eligible applications would result in expenditures in excess of the amount available, FSA will prorate the available funds by a national factor to reduce the total expected payments to the amount made available by the Secretary. FSA will make payments based on the factor for the national rate determined by FSA. FSA will prorate the payments in such manner as it determines appropriate and reasonable. Claims that are unpaid or VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 prorated for a program year for any reason will not be carried forward for payment under other funds for later years or otherwise, but will be considered, as to any unpaid amount, void and nonpayable. § 1416.109 National Payment Rate. (a) For an eligible livestock, honeybee, or farm-raised fish producer that meets the definition of beginning farmer or rancher, socially disadvantaged farmer or rancher, or limited resource farmer or rancher, payments calculated in §§ 1416.110 through 1416.112 will be based on a national payment rate of 90 percent. (b) For an eligible livestock, honeybee, or farm-raised fish producer, payments calculated in §§ 1416.110(a), (b), (f), (g) and (l), 1416.111(a), and 1416.112(a), will be based on a national payment rate, to be determined by the Deputy Administrator, of not less than 60 percent and not more than 80 percent of the calculated payment. (c) For an eligible livestock, honeybee, or farm-raised fish producer, payments calculated in §§ 1416.110(n), 1416.111(b) and (c), and 1416.112(b), will be based on a national payment rate, to be determined by the Deputy Administrator, of not less than 75 percent and not more than 80 percent of the calculated payment. § 1416.110 Livestock payment calculations. (a) Livestock feed payments for an eligible livestock producer will be calculated based on losses for no more than 150 days during the program year. Payment calculations for feed losses will be based on a national payment rate, as specified in § 1416.109, multiplied by the producer’s actual cost for: (1) Livestock feed that was purchased forage or feedstuffs intended for use as feed for the participant’s eligible livestock that was physically damaged or destroyed due to the direct result of an eligible adverse weather or eligible loss condition, as specified in § 1416.103(d)(1); (2) Livestock feed that was mechanically harvested forage or feedstuffs intended for use as feed for the participant’s eligible livestock that was physically damaged or destroyed after harvest due to the direct result of an eligible adverse weather or eligible loss condition, as specified in § 1416.103(d)(2); (3) The additional cost of purchasing additional livestock feed above normal quantities, required to maintain the eligible livestock during an eligible adverse weather or eligible loss PO 00000 Frm 00022 Fmt 4701 Sfmt 4700 condition until additional livestock feed becomes available, as specified in § 1416.103(d)(3); and (4) The additional cost incurred for transporting livestock feed to eligible livestock due to an eligible adverse weather or eligible loss condition, as specified in § 1416.103(d)(4); (b) Payments for losses resulting from the additional cost of transporting water to eligible livestock due to an eligible drought for no more 150 days during the program year, as specified in § 1416.103(d)(5) calculated based on a national payment rate, as determined in § 1416.109, multiplied by the lesser of either: (1) The total value of the cost to transport water to eligible livestock for 150 days, based on the daily water requirements for the eligible livestock, or (2) The total value of the cost to transport water to eligible livestock for the program year, based on the actual number of gallons of water the eligible producer transported to eligible livestock for the program year. (c) The total value of the cost to transport water to eligible livestock for 150 days to be used in the calculation for paragraph (b)(1) of this section is equal to the product obtained by multiplying: (1) The number of eligible livestock converted to an animal unit basis; (2) The gallons of water required per animal unit for maintenance for one day, as determined by the Deputy Administrator; (3) The national average price per gallon to transport water and any appropriate regional or local adjustments as recommended by the STC and determined by the Deputy Administrator; and (4) 150 days. (d) The total value of the cost to transport water to eligible livestock for the program year to be used in the calculation for paragraph (b)(2) of this section is equal to the product obtained by multiplying: (1) Actual number of gallons of water transported by the eligible producer to eligible livestock in the program year; and (2) The national average price per gallon to transport water and any appropriate regional or local adjustments as recommended by the STC and determined by the Deputy Administrator. (e) The national average price per gallon to transport water to be used in the calculation for paragraphs (c)(3) and (d)(2) of this section is $0.04, or such other price determined by the Deputy Administrator. E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (f) Payments for an eligible livestock producer, for livestock losses resulting from the additional cost associated with gathering livestock to treat for cattle tick fever will be calculated for the actual number of livestock involved in each treatment. Total payments are equal to the sum of the following for each treatment: (1) The national payment rate, as determined in § 1416.109, times (2) The number of eligible livestock treated by APHIS for cattle tick fever, times (3) The average cost to gather livestock, per head, as established by the Deputy Administrator. (g) Payments for an eligible livestock producer for grazing losses, except for losses due to wildfires on non-Federal land, will be calculated based on the applicable national payment rate, as determined in § 1416.109, multiplied by the lesser of: (1) The total value of the feed cost for all covered livestock owned by the eligible livestock producer based on the number of days grazing was lost, not to exceed 150 days of daily feed cost for all eligible livestock, or (2) The total value of grazing lost for all eligible livestock based on the normal carrying capacity, as determined by the Secretary, of the eligible grazing land of the eligible livestock producer for the number of grazing days lost, not to exceed 150 days of lost grazing. (h) The total value of feed cost to be used in the calculation for paragraph (g)(1) of this section is based on the number of days grazing was lost and equals the product obtained by multiplying: (1) A payment quantity equal to the feed grain equivalent, as determined in paragraph (i) of this section; (2) A payment rate equal to the corn price per pound, as determined in paragraph (j) of this section; (3) The number of all eligible livestock owned by the eligible producer converted to an animal unit basis; (4) The number of days grazing was lost, not to exceed 150 calendar days during the normal grazing period for the specific type of grazing land; and (5) The producer’s ownership share in the livestock. (i) The feed grain equivalent to be used in the calculation for paragraph (g)(1) of this section equals, in the case of: (1) An adult beef cow, 15.7 pounds of corn per day, or (2) Any other type or weight of livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 necessary to feed that specific type of livestock. (j) The corn price per pound to be used in the calculation for paragraph (h)(2) of this section equals the quotient calculated as follows: (1) The higher of: (i) The national average corn price per bushel of corn for the 12-month period immediately preceding March 1 of the program year for which payments are calculated; or (ii) The national average corn price per bushel of corn for the 24-month period immediately preceding March 1 of the program year for which payments are calculated; (2) Divided by 56. (k) The total value of grazing lost to be used in the calculation for paragraph (h)(2) of this section equals the product obtained by multiplying: (1) A payment quantity equal to the feed grain equivalent of 15.7 pounds of corn per day; (2) A payment rate equal to the corn price per pound, as determined in paragraph (j) of this section; (3) The number of animal units the eligible livestock producer’s grazing land or pastureland can sustain during the normal grazing period in the county for the specific type of grazing land or pastureland, in the absence of an eligible adverse weather or eligible loss condition, determined by dividing the: (i) Number of eligible grazing land or pastureland acres of the specific type of grazing land or pastureland, by (ii) The normal carrying capacity of the specific type of eligible grazing land or pastureland; and (4) The number of days grazing was lost, not to exceed 150 calendar days during the normal grazing period for the specific type of grazing land. (l) Payments for an eligible livestock producer for grazing losses due to a wildfire on non-Federal land will be calculated based on the applicable national payment rate, as determined in § 1416.109, multiplied by: (1) The result of dividing: (i) The number of acres of grazing land or pastureland acres affected by the fire, by (ii) The normal carrying capacity of the specific type of eligible grazing land or pastureland; times (2) The daily value of grazing as calculated by FSA under this section; times (3) The number of days grazing was lost due to fire, not to exceed 180 calendar days; (m) If a participant, during the normal grazing period for the eligible grazing land, claims both an eligible loss resulting from the additional cost of PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 21107 purchasing additional livestock feed above normal quantities, as calculated in paragraph (a)(3) of this section, and an eligible grazing loss, as calculated in paragraphs (g) or (l) of this section, then the participant may receive no more than the larger of the value of the loss resulting from the: (1) Additional cost of purchasing additional livestock feed, as calculated in paragraph (a)(3) of this section; or (2) Grazing loss, as determined in: (i) Paragraph (g) of this section, for losses due to an eligible adverse weather or eligible loss condition, except wildfires on non-Federal lands, or (ii) Paragraph (l) of this section, for losses due to wildfires on non-Federal lands. (n) Payments for an eligible livestock producer for eligible livestock death losses will be based on the applicable national payment rate, as determined in § 1416.109, multiplied by the result in paragraph (n)(1) of this section. (1) Payments will be calculated by multiplying: (i) The livestock payment rate for each livestock category, times (ii) The number of eligible livestock that died in each category as a result of an eligible loss condition in excess of normal mortality, as determined in paragraph (n)(2) of this section; (2) Normal mortality for each livestock category as determined by FSA on a statewide basis using local data sources including, but not limited to, State livestock organizations and the Cooperative Extension Service for the State. (3) The livestock payment rates to be used in the calculation for paragraph (n)(1) of this section for eligible livestock owners and eligible livestock contract growers are: (i) A livestock payment rate for eligible livestock owners that is based on the average fair market value of the applicable livestock as computed using nationwide prices for the previous program year unless some other price is approved by the Deputy Administrator. (ii) A livestock payment rate for eligible livestock contract growers that is based on the relevant average income loss sustained by the contract grower, with respect to the dead livestock. (o) Payments calculated in this section are subject to the adjustments and limits provided for in this part. § 1416.111 Honeybee payment calculations. (a) An eligible honeybee producer may receive payments for eligible honeybee feed losses, as specified in § 1416.103(h), based on a national payment rate, as determined in E:\FR\FM\14APR2.SGM 14APR2 21108 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations § 1416.109, multiplied by the producer’s actual cost for honeybee feed that was: (1) Damaged or destroyed due to an eligible adverse weather or eligible loss condition, as specified in § 1416.103(h)(1); and (2) Purchased, above normal, to maintain the honeybees during an eligible adverse weather or eligible loss condition until additional honeybee feed becomes available, as specified in § 1416.103(h)(2); (b) An eligible honeybee producer may receive payments for eligible honeybee colony losses, as specified in § 1416.103(i), based on a national payment rate, as determined in § 1416.109(b), multiplied by: (1) Average fair market value of the honeybee colonies as computed using nationwide prices unless some other price data is approved for use by the Deputy Administrator; and (2) Number of eligible honeybee colonies that were damaged or destroyed due to an eligible adverse weather or eligible loss condition, in excess of normal honeybee mortality, as determined by the Deputy Administrator. (c) An eligible honeybee producer may receive payments for eligible honeybee hive losses, as specified in § 1416.103(i), based on a national payment rate, as determined in § 1416.109, multiplied by: (1) Average fair market value for honeybee hives as computed using nationwide prices unless some other price data is approved for use by the Deputy Administrator; and (2) Number of honeybee hives that were damaged or destroyed due to an eligible adverse weather or eligible loss condition. (d) Payments calculated in this section are subject to the adjustments and limits provided for in this part. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.112 Farm-raised fish payment calculations. 18:57 Apr 11, 2014 Jkt 232001 Subpart C—Livestock Forage Disaster Program § 1416.201 Applicability. (a) This subpart establishes the terms and conditions under which the Livestock Forage Disaster Program (LFP) will be administered. (b) Eligible livestock producers will be compensated for eligible grazing losses for covered livestock that occur due to a qualifying drought or fire that occurs: (1) On or after October 1, 2011, and (2) In the calendar year for which benefits are being requested. § 1416.202 (a) An eligible farm-raised fish producer may receive payments for fish feed losses due to an eligible adverse weather or eligible loss condition, as specified in § 1416.103(h), based on a national payment rate, as determined in § 1416.109, multiplied by the producer’s actual cost for the fish feed that was: (1) Damaged or destroyed due to an eligible adverse weather or eligible loss condition, as specified in § 1416.103(h)(1); and (2) Purchased, above normal, to maintain the farm-raised fish during an eligible adverse weather or eligible loss condition until additional farm-raised fish feed becomes available, as specified in § 1416.103(h)(2). VerDate Mar<15>2010 (b) An eligible producer of farm-raised fish may receive payments for death losses of farm-raised fish due to an eligible adverse weather or eligible loss condition, as specified in § 1416.103(j), based on a national payment rate, as determined in § 1416.109, multiplied by: (1) Average fair market value of the bait fish, game fish, or other aquatic species, as determined by the Deputy Administrator, that died as a direct result of an eligible adverse weather or eligible loss condition, as computed using nationwide prices unless some other price data is approved for use by the Deputy Administrator; and (2) Number of eligible bait fish, game fish, or other aquatic species, as determined by the Deputy Administrator, that died as a result of an eligible adverse weather or loss condition, in excess of normal mortality, as determined by the Deputy Administrator. (c) Payments calculated in this section or elsewhere with respect to ELAP are subject to the adjustments and limits provided for in this part and are also subject to the payment limitations and average adjusted gross income limitations that are contained in part 1400 of this chapter. Definitions. The following definitions apply to this subpart and to the administration of LFP. The definitions in parts 718 of this title and 1400 of this chapter also apply, except where they conflict with the definitions in this section. Adult beef bull means a male beef breed bovine animal that was at least 2 years old and used for breeding purposes on or before the beginning date of a qualifying drought or fire. Adult beef cow means a female beef breed bovine animal that had delivered one or more offspring. A first-time bred beef heifer is also considered an adult beef cow if it was pregnant on or before the beginning date of a qualifying drought or fire. PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 Adult buffalo and beefalo bull means a male animal of those breeds that was at least 2 years old and used for breeding purposes on or before the beginning date of a qualifying drought or fire. Adult buffalo and beefalo cow means a female animal of those breeds that had delivered one or more offspring. A firsttime bred buffalo or beefalo heifer is also considered an adult buffalo or beefalo cow if it was pregnant on or before the beginning date of a qualifying drought or fire. Adult dairy bull means a male dairy breed bovine animal at least 2 years old used primarily for breeding dairy cows on or before the beginning date of a qualifying drought or fire. Adult dairy cow means a female dairy breed bovine animal used for the purpose of providing milk for human consumption that had delivered one or more offspring. A first-time bred dairy heifer is also considered an adult dairy cow if it was pregnant on or before the beginning date of a qualifying drought or fire. Agricultural operation means a farming operation. Application means the ‘‘Livestock Forage Disaster Program’’ form. Commercial use means used in the operation of a business activity engaged in as a means of livelihood for profit by the eligible livestock producer. Contract means, with respect to contracts for the handling of livestock, a written agreement between a livestock owner and another individual or entity setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock or livestock products. Covered livestock means livestock of an eligible livestock producer that, during the 60 days prior to the beginning date of a qualifying drought or fire, the eligible livestock producer owned, leased, purchased, entered into a contract to purchase, was a contract grower of, or sold or otherwise disposed of due to a qualifying drought during the current production year. It includes livestock that the producer otherwise disposed of due to drought in one or both of the two production years immediately preceding the current production year as determined by the Secretary. Notwithstanding the foregoing portions of this definition, covered livestock for ‘‘contract growers’’ will not include livestock in feedlots. ‘‘Contract growers’’ under LFP will only include producers of livestock not in feedlots whose income is dependent on the actual weight gain and survival of the livestock. E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Equine animal means a domesticated horse, mule, or donkey. Farming operation means a business enterprise engaged in producing agricultural products. Federal Agency means, with respect to the control of grazing land, an agency of the federal government that manages rangeland on which livestock is generally permitted to graze. For the purposes of this section, it includes, but is not limited to, the U.S. Department of the Interior (DOI) Bureau of Indian Affairs (BIA), DOI Bureau of Land Management (BLM), and USDA Forest Service (FS). Goat means a domesticated, ruminant mammal of the genus Capra, including Angora goats. Non-adult beef cattle means a beef breed bovine animal that weighed 500 pounds or more on or before the beginning date of a qualifying drought or fire but that does not meet the definition of adult beef cow or bull. Non-adult buffalo or beefalo means an animal of those breeds that weighed 500 pounds or more on or before the beginning date of a qualifying drought or fire, but does not meet the definition of adult buffalo or beefalo cow or bull. Non-adult dairy cattle means a bovine animal, of a breed used for the purpose of providing milk for human consumption, that weighed 500 pounds or more on or before the beginning date of a qualifying drought or fire, but that does not meet the definition of adult dairy cow or bull. Normal carrying capacity means, with respect to each type of grazing land or pastureland in a county, the normal carrying capacity that would be expected from the grazing land or pastureland for livestock during the normal grazing period in the county, in the absence of a drought or fire that diminishes the production of the grazing land or pastureland. Normal grazing period means, with respect to a county, the normal grazing period during the calendar year with respect to each specific type of grazing land or pastureland in the county served by the applicable county committee. Owner means one who had legal ownership of the livestock for which benefits are being requested during the 60 days prior to the beginning of a qualifying drought or fire. Poultry means a domesticated chicken, turkey, duck, or goose. Poultry are further delineated by sex, age, and purpose of production, as determined by FSA. Sheep means a domesticated, ruminant mammal of the genus Ovis. Swine means a domesticated omnivorous pig, hog, or boar. VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 U.S. Drought Monitor is a system for classifying drought severity according to a range of abnormally dry to exceptional drought. It is a collaborative effort between Federal and academic partners, produced on a weekly basis, to synthesize multiple indices, outlooks, and drought impacts on a map and in narrative form. This synthesis of indices is reported by the National Drought Mitigation Center at http:// droughtmonitor.unl.edu. § 1416.203 Eligible livestock producer. (a) To be considered an eligible livestock producer, the eligible producer on a farm must: (1) During the 60 days prior to the beginning date of a qualifying drought or fire, own, cash or share lease, or be a contract grower of covered livestock. (2) Provide pastureland or grazing land for covered livestock, including cash-leased pastureland or grazing land, that is: (i) Physically located in a county affected by a qualifying drought during the normal grazing period for the county, or (ii) Rangeland managed by a Federal agency for which the otherwise eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock due to a qualifying fire. (b) The eligible livestock producer must have certified that the livestock producer has suffered a grazing loss due to a qualifying drought or fire to be eligible for LFP payments. (c) An eligible livestock producer does not include any owner, cash or share lessee, or contract grower of livestock that rents or leases pastureland or grazing land owned by another person on a rate-of-gain basis. (That is, where the lease or rental agreement calls for payment based in whole or in part on the amount of weight gained by the animals that use the pastureland or grazing land.) (d) A producer seeking payment must not be prohibited from receiving these benefits as a result of the restrictions applicable to foreign persons contained in § 1416.3(b) and must meet all other requirements of subpart A of this part and other applicable USDA regulations. (e) If a contract grower is an eligible livestock producer for covered livestock, the owner of that livestock is not eligible for payment. § 1416.204 Covered livestock. (a) To be considered covered livestock for LFP payments, livestock must meet all the following conditions: (1) Be adult or non-adult beef cattle, adult or non-adult beefalo, adult or non- PO 00000 Frm 00025 Fmt 4701 Sfmt 4700 21109 adult buffalo, adult or non-adult dairy cattle, alpacas, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep, or swine; (2) Be livestock that would normally have been grazing the eligible grazing land or pastureland: (i) During the normal grazing period for the specific type of grazing land or pastureland for the county during the qualifying drought; or (ii) When the Federal agency prohibited the eligible livestock producer from using the managed rangeland for grazing due to a fire; (3) Be livestock that the eligible livestock producer: (i) During the 60 days prior to the beginning date of a qualifying drought or fire: (A) Owned, (B) Leased, (C) Purchased, (D) Entered into a contract to purchase, or (E) Was a contract grower of; or (ii) Sold or otherwise disposed of due to qualifying drought during: (A) The current production year, or (B) 1 or both of the 2 production years immediately preceding the current production year; (4) Been maintained for commercial use as part of the producer’s farming operation on the beginning date of the qualifying drought or fire; (5) Not have been produced and maintained for reasons other than commercial use as part of a farming operation. Such excluded uses include, but are not limited to, any uses of wild free roaming animals or use of the animals for recreational purposes, such as pleasure, roping, hunting, pets, or for show; and (6) Not have been livestock that were or would have been in a feedlot, on the beginning date of the qualifying drought or fire, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary. (b) The covered livestock categories are: (1) Adult beef cows or bulls, (2) Adult buffalo or beefalo cows or bulls, (3) Adult dairy cows or bulls, (4) Alpacas, (5) Deer, (6) Elk, (7) Emu, (8) Equine, (9) Goats, (10) Llamas, (11) Non-adult beef cattle, (12) Non-adult buffalo or beefalo, (13) Non-adult dairy cattle, (14) Poultry, E:\FR\FM\14APR2.SGM 14APR2 21110 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (15) Reindeer, (16) Sheep, and (17) Swine. (c) Livestock that are not covered include, but are not limited to: (1) Livestock that were or would have been in a feedlot, on the beginning date of the qualifying drought or fire, as a part of the normal business operation of the eligible livestock producer, as determined by the Secretary; (2) Yaks; (3) Ostriches; (4) All beef and dairy cattle, and buffalo and beefalo that weighed less than 500 pounds on the beginning date of the qualifying drought or fire; (5) Any wild free roaming livestock, including horses and deer; and (6) Livestock produced or maintained for reasons other than commercial use as part of a farming operation, including, but not limited to, livestock produced or maintained for recreational purposes, such as: (i) Roping, (ii) Hunting, (iii) Show, (iv) Pleasure, (v) Use as pets, or (vi) Consumption by owner. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.205 Eligible grazing losses. (a) A grazing loss due to drought is eligible for LFP only if the grazing loss for the covered livestock occurs on land that: (1) Is native or improved pastureland with permanent vegetative cover, or (2) Is planted to a crop planted specifically for the purpose of providing grazing for covered livestock, as reported on the producer’s acreage report, including crops such as forage sorghum or small grains, but not including corn stalks or grain sorghum stalks; and (3) Is grazing land or pastureland that is owned or leased by the eligible livestock producer that is physically located in a county that is, during the normal grazing period for the specific type of grazing land or pastureland for the county, rated by the U.S. Drought Monitor as having a: (i) D2 (severe drought) intensity in any area of the county for at least 8 consecutive weeks during the normal grazing period for the specific type of grazing land or pastureland for the county, as determined by the Secretary, or (ii) D3 (extreme drought) or D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period for the specific type of grazing land or pastureland for the county, as determined by the Secretary. (As specified elsewhere in VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 this subpart, the amount of potential payment eligibility will be higher than under paragraph (a)(3)(i) of this section where the D4 trigger applies or where the D3 condition as determined by the Secretary lasts at least 4 weeks during the normal grazing period for the specific type of grazing land or pastureland for the county.) (b) A grazing loss is not eligible for LFP if: (1) The grazing loss due to drought on land used for haying or grazing under the Conservation Reserve Program established under subchapter B of chapter 1 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3831–3835a), or (2) The grazing loss occurs on irrigated land, unless the irrigated land has not been irrigated in the program year for which benefits are being requested due to lack of water that is beyond the participant’s control. (c) A grazing loss due to fire qualifies for LFP only if: (1) The grazing loss occurs on rangeland that is managed by a Federal agency and (2) The eligible livestock producer is prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire. § 1416.205 Application for payment. (a) To apply for LFP, the participant that suffered eligible grazing losses: (1) On or after October 1, 2011, and on or before December 31, 2014, must submit a completed application for payment and required supporting documentation as specified in this part to the administrative FSA county office no later than January 30, 2015; or (2) On or after January 1, 2015, must submit a completed application for payment and required supporting documentation to the administrative FSA county office no later than 30 calendar days after the end of the calendar year in which the grazing loss occurred. (b) A participant must also provide a copy of the grower contract, if a contract grower, and other supporting documents required for determining eligibility as an applicant at the time the participant submits the completed application for payment. Supporting documents must include: (1) Evidence of loss; (2) Current physical location of livestock in inventory; (3) Evidence that grazing land or pastureland is owned or leased; (4) A report of acreage according to part 718 of this title for the grazing lands incurring losses for which assistance is being requested under this subpart; PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 (5) Adequate proof, as determined by FSA that the grazing loss: (i) Was for the covered livestock; (ii) If the loss of grazing occurred as the result of a fire, that the: (A) Loss was due to a fire, and (B) Participant was prohibited by the Federal agency from grazing the normal permitted livestock on the managed rangeland due to a fire; (iii) Occurred on or after October 1, 2011; and (iv) Occurred in the calendar year for which payments are being requested; (6) A farm operating plan, if a current farm operating plan is not already on file in the FSA county office; and (7) Any other supporting documentation as determined by FSA to be necessary to make a determination of eligibility of the participant. Supporting documents include, but are not limited to: Verifiable purchase and sales records; grower contracts; veterinarian records; bank or other loan papers; rendering truck receipts; Federal Emergency Management Agency Records; National Guard records; written contracts; production records; private insurance documents; sales records; and similar documents determined acceptable to FSA. (c) Data furnished by the participant will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, without all required data, program benefits will not be approved or provided. § 1416.207 Payment calculation. (a) An eligible livestock producer will be eligible to receive payments for grazing losses for qualifying drought as specified in § 1416.205(a), calculated as specified in paragraphs (e) or (f) of this section. Total LFP payments to an eligible livestock producer in a calendar year for grazing losses due to qualifying drought will not exceed 5 monthly payments for the same livestock. Payments calculated in this section or elsewhere with respect to LFP are subject to the adjustments and limits provided for in this part and are also subject to the payment limitations and average adjusted gross income provisions that are contained in subpart A of this part. Payment may only be made to the extent that eligibility is specifically provided for in this subpart. Hence, with respect to drought, payments will be made only as a ‘‘1month’’ payment, a ‘‘3-month’’ payment, ‘‘4-month’’ payment, or a ‘‘5month’’ payment based on the provisions of paragraphs (b) through (e) of this section. (b) To be eligible to receive a 1-month payment, that is a payment equal to the E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations monthly feed cost as determined under paragraph (h) of this section, the eligible livestock producer must own or lease grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D2 severe drought (intensity) in any area of the county for at least 8 consecutive weeks during the normal grazing period for the specific type of grazing land or pastureland in the county. (c) To be eligible to receive a 3-month payment, that is a payment equal to three times the monthly feed cost as determined under paragraph (h) of this section, the eligible livestock producer must own or lease grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county at any time during the normal grazing period for the specific type of grazing land or pastureland for the county. (d) To be eligible to receive a 4-month payment, that is a payment equal to four times the monthly feed cost as determined under paragraph (h) of this section, the eligible livestock producer must own or lease grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D3 (extreme drought) intensity in any area of the county for at least 4 weeks (not necessarily consecutive weeks) during the normal grazing period for the specific type of grazing land or pastureland for the county, or is rated as having a D4 (exceptional drought) intensity in any area of the county at any time during the normal grazing period for the specific type of grazing land or pastureland for the county. (e) To be eligible to receive a 5-month payment, that is a payment equal to five times the monthly feed cost as determined under paragraph (h) of this section, the eligible livestock producer must own or lease grazing land or pastureland that is physically located in a county that is rated by the U.S. Drought Monitor as having at least a D4 (exceptional drought) in any area of the county for at least 4 weeks (not necessarily consecutive weeks) during the normal grazing period for the specific type of grazing land or pastureland for the county. (f) The monthly payment rate for LFP for grazing losses due to a qualifying drought, except as specified in paragraph (g) of this section, will be equal to 60 percent of the lesser of: (1) The monthly feed cost for all covered livestock owned or leased by the eligible livestock producer, as VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 determined in paragraph (h) of this section, or (2) The monthly feed cost calculated by using the normal carrying capacity of the eligible grazing land of the eligible livestock producer, as determined in paragraph (j) of this section. (g) An eligible livestock producer cannot receive more than a 5-month payment for the same covered livestock during the calendar year regardless of the number of drought intensity ratings the county receives; that is, the maximum payment an eligible livestock producer may receive under LFP in a calendar year cannot exceed 60 percent of 5 times the same covered livestock’s monthly feed cost. (h) In the case of an eligible livestock producer that sold or otherwise disposed of covered livestock due to a qualifying drought in 1 or both of the 2 production years immediately preceding the current production year, the payment rate is 80 percent of the monthly payment rate calculated in paragraph (f) of this section. (i) The monthly feed cost for covered livestock equals the product obtained by multiplying: (1) 30 days; (2) A payment quantity equal to the amount referred to in paragraph (h) of this section as the ‘‘feed grain equivalent’’, as determined under paragraph (h) of this section; and (3) A payment rate equal to the corn price per pound, as determined in paragraph (i) of this section. (j) The feed grain equivalent equals, in the case of: (1) An adult beef cow, 15.7 pounds of corn per day or (2) In the case of any other type or weight of covered livestock, an amount determined by the Secretary that represents the average number of pounds of corn per day necessary to feed that specific type of livestock. (k) The corn price per pound equals the quotient calculated as follows: (1) The higher of: (i) The national average corn price per bushel for the 12-month period immediately preceding March 1 of the calendar year for which LFP payment is calculated, or (ii) The national average corn price per bushel for the 24-month period immediately preceding March 1 of the calendar year for which LFP payment is calculated, (2) Divided by 56. (l) The monthly feed cost using the normal carrying capacity of the eligible grazing land equals the product obtained by multiplying: (1) 30 days; PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 21111 (2) A payment quantity equal to the feed grain equivalent of 15.7 pounds of corn per day; (3) A payment rate equal to the corn price per pound, as determined in paragraph (i) of this section; and (4) The number of animal units the eligible livestock producer’s grazing land or pastureland can sustain during the normal grazing period in the county for the specific type of grazing land or pastureland, in the absence of a drought or fire, determined by dividing the: (i) Number of eligible grazing land or pastureland acres of the specific type of grazing land or pastureland, by (ii) The normal carrying capacity of the specific type of eligible grazing land or pastureland as determined under this subpart. (m) An eligible livestock producer will be eligible to receive payments for grazing losses due to a fire as specified in § 1416.205(c): (1) For the period, subject to paragraph (l)(2) of this section: (i) Beginning on the date on which the Federal Agency prohibits the eligible livestock producer from using the managed rangeland for grazing, and (ii) Ending on the earlier of the last day of the Federal lease of the eligible livestock producer or the day that would make the period a 180 day period. (2) For grazing losses that occur on not more than 180 days per calendar year. (3) For 50 percent of the monthly feed cost, as determined under § 1416.208(i), pro-rated to a daily rate, for the total number of livestock covered by the Federal lease of the eligible livestock producer. Subpart D—Livestock Indemnity Program § 1416.301 Applicability. (a) This subpart establishes the terms and conditions under which the Livestock Indemnity Program (LIP) will be administered under Title I of the 2014 Farm Bill (Pub. L. 113–79). (b) Eligible livestock owners and contract growers will be compensated in accordance with § 1416.306 for eligible livestock deaths in excess of normal mortality that occurred in the calendar year for which benefits are being requested as a direct result of an eligible adverse weather event or attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators. The eligible adverse weather event, is one, as determined by the Secretary, that occurs in the program year that directly results in the death of E:\FR\FM\14APR2.SGM 14APR2 21112 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations livestock despite the livestock producer’s performance of expected and normal preventative or corrective measures and good farming practices. Because feed can be purchased or otherwise obtained in the event of a drought, drought is not an eligible adverse weather event except when anthrax, which is exacerbated by drought, causes the death of eligible livestock. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.302 Definitions. The following definitions apply to this subpart. The definitions in parts 718 of this title and 1400 of this chapter also apply, except where they conflict with the definitions in this section. Actual livestock beginning inventory means the actual livestock beginning inventory per calendar year for calves or lambs that is calculated from the verifiable or reliable records of death, birthing, docking, inventory, and sales in an open range operation. Adjusted livestock beginning inventory means the livestock beginning inventory history for calves or lambs on the open range that will be adjusted during the base period for years for which continuous actual livestock beginning inventory history records are not provided. Adult beef bull means a male beef breed bovine animal that was at least 2 years old and used for breeding purposes before it died. Adult beef cow means a female beef breed bovine animal that had delivered one or more offspring before dying. A first-time bred beef heifer is also considered an adult beef cow if it was pregnant at the time it died. Adult buffalo and beefalo bull means a male animal of those breeds that was at least 2 years old and used for breeding purposes before it died. Adult buffalo and beefalo cow means a female animal of those breeds that had delivered one or more offspring before dying. A first-time bred buffalo or beefalo heifer is also considered an adult buffalo or beefalo cow if it was pregnant at the time it died. Adult dairy bull means a male dairy breed bovine animal at least 2 years old used primarily for breeding dairy cows before it died. Adult dairy cow means a female bovine dairy breed animal used for the purpose of providing milk for human consumption that had delivered one or more offspring before dying. A first-time bred dairy heifer is also considered an adult dairy cow if it was pregnant at the time it died. Agricultural operation means a farming operation. VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 Application means the ‘‘Livestock Indemnity Program’’ form. Approved livestock beginning inventory means the approved livestock beginning inventory for calves or lambs on the open range, calculated by the sum of the yearly actual and transitional livestock beginning inventory history divided by the number of years of livestock beginning inventory history. Base period means the five consecutive calendar years immediately preceding the calendar year of the LIP application for which the approved livestock beginning inventory is being established for the open range calf or lambing operation. Buck means a male goat. CCC means Commodity Credit Corporation. Commercial use means used in the operation of a business activity engaged in as a means of livelihood for profit by the eligible producer. Continuous livestock beginning inventory reports means livestock beginning inventory reports submitted by a producer for each calendar year that the producer was involved in the livestock open range operation. Contract means, with respect to contracts for the handling of livestock, a written agreement between a livestock owner and another individual or entity setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock or livestock products. Cow/Ewe Livestock Beginning Inventory History means, the applicable calendar year cow or ewe verifiable livestock beginning inventory records provided to FSA by the open range livestock operation to be used in calculating the transitional livestock beginning inventory history. Deputy Administrator or DAFP means the Deputy Administrator for Farm Programs, Farm Service Agency, U.S. Department of Agriculture or the designee. Equine animal means a domesticated horse, mule, or donkey. Eligible adverse weather event means an extreme or abnormal damaging weather event that is not expected to occur during the loss period for which it occurred, which results in eligible livestock death losses in excess of normal mortality. Eligible adverse weather events include, but are not limited to, as determined by the Deputy Administrator or designee, earthquake; lightning; tornado; tropical storm; typhoon; vog if directly related to a volcanic eruption; winter storm if the winter storm last for three consecutive days and is accompanied by high winds, freezing rain or sleet, heavy snowfall, PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 and extremely cold temperatures; hurricanes; floods; blizzards; wildfires; extreme heat; extreme cold; and anthrax; and disease if exacerbated by another eligible adverse weather event. Ewe means a female sheep. Farming operation means a business enterprise engaged in producing agricultural products. FSA means the Farm Service Agency. Goat means a domesticated, ruminant mammal of the genus Capra, including Angora goats. Goats are further defined by sex (bucks and nannies) and age (kids). Kid means a goat less than 1 year old. Lamb means a sheep less than 1 year old. Livestock beginning inventory history (LBIH) means a minimum of four, up to a maximum of five, calendar years of actual and transitional beginning inventory records used to calculate the approved livestock beginning inventory history for a calf or lamb open range livestock operation. LBIH reporting date means the LBIH reporting date for which the reports will be accepted for inclusion in the base period for the current calendar year Livestock inventory report means a written record showing the producer’s annual inventory used to determine the livestock beginning inventory history for LIP purposes for the open range calf or lamb open range livestock operation. The report contains livestock beginning inventory history by open range livestock operation by livestock type or kind. Livestock owner means one having legal ownership of the livestock for which benefits are being requested on the day such livestock died. Nanny means a female goat. Non-adult beef cattle means a beef breed bovine animal that does not meet the definition of adult beef cow or bull. Non-adult beef cattle are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time they died. Non-adult buffalo or beefalo means an animal of those breeds that does not meet the definition of adult buffalo or beefalo cow or bull. Non-adult buffalo or beefalo are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time of death. Non-adult dairy cattle means a dairy breed bovine animal, of a breed used for the purpose of providing milk for human consumption, that do not meet the definition of adult dairy cow or bull. Non-adult dairy cattle are further delineated by weight categories of either less than 400 pounds or 400 pounds or more at the time they died. E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Normal mortality means the numerical amount, computed by a percentage, as established for the area by the FSA State Committee, of expected livestock deaths, by category, that normally occur during a calendar year for a producer. Open range operation means livestock production that takes place on large parcels of land where the livestock are not gathered into pens, sheds, or other small areas such that accurate overall inventory and resulting death tallies cannot be completed without a roundup, as determined by the Deputy Administrator. Poultry means domesticated chickens, turkeys, ducks, and geese. Poultry are further delineated by sex, age, and purpose of production as determined by FSA. Ram means a male sheep. Secretary means the Secretary of Agriculture or a designee of the Secretary. Sheep means a domesticated, ruminant mammal of the genus Ovis. Sheep are further defined by sex (rams and ewes) and age (lambs) for purposes of dividing into categories for loss calculations. State committee, State office, county committee, or county office means the respective FSA committee or office. Swine means a domesticated omnivorous pig, hog, or boar. Swine for purposes of dividing into categories for loss calculations are further delineated by sex and weight as determined by FSA. Transitional livestock beginning inventory history for offspring (calves/ lambs) means an estimated livestock beginning inventory history, generally determined by multiplying the livestock open range operation’s beginning cow or ewe livestock beginning inventory history by the national established birthing rate percentage of 90 percent for calves and 160 percent for lambs. The Deputy Administrator has the authority to make adjustments as necessary. It is to be used in the transitional livestock beginning inventory history calculation process when less than 4 consecutive calendar years of actual livestock beginning inventory history is available. United States means all fifty States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other territory or possession of the United States. Winter storm means a storm that is severe as to cause fatal injury to livestock and lasts in duration for at least three consecutive days and is accompanied by high winds, freezing VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 rain or sleet, heavy snowfall, and extremely cold temperatures. § 1416.303 growers. Eligible owners and contract (a) In addition, to other eligibility rules that may apply, to be eligible as a: (1) Livestock owner for benefits with respect to the death of an animal under this subpart, the applicant must have had legal ownership of the eligible livestock on the day the livestock died and under conditions in which no contract grower could have been eligible for benefits with respect to the animal. Eligible types of animal categories for which losses can be calculated for an owner are specified in § 1416.304(a). (2) Contract grower for benefits with respect to the death of an animal, the animal must be in one of the categories specified on § 1416.304(b), and the contract grower must have had, (i) A written agreement with the owner of eligible livestock setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock; (ii) Control of the eligible livestock on the day the livestock died; and (iii) A risk of loss in the animal. (b) A producer seeking payment must not be ineligible under the restrictions applicable to foreign persons contained in § 1416.3(b) and must meet all other requirements of subpart A of this part and other applicable USDA regulations. § 1416.304 Eligible livestock. (a) To be considered eligible livestock for livestock owners, the kind of livestock must be alpacas, adult or nonadult dairy cattle, beef cattle, buffalo, beefalo, elk, emus, equine, llamas, sheep, goats, swine, poultry, deer, or reindeer and meet all the conditions in paragraph (c) of this section. (b) To be considered eligible livestock for contract growers, the kind of livestock must be poultry or swine and meet all the conditions in paragraph (c) of this section. (c) To be considered eligible livestock for the purpose of generating payments under this subpart, livestock must meet all of the following conditions: (1) Died as a direct result of an eligible adverse weather event or attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators: (i) On or after October 1, 2011, (ii) No later than 60 calendar days from the ending date of the eligible adverse weather event, or the date of the attack by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators, and PO 00000 Frm 00029 Fmt 4701 Sfmt 4700 21113 (iii) In the calendar year for which benefits are being requested; (2) Been maintained for commercial use as part of a farming operation on the day they died; and (3) Before dying, not have been produced or maintained for reasons other than commercial use as part of a farming operation, such non-eligible uses being understood to include, but not be limited to, any uses of wild free roaming animals or use of the animals for recreational purposes, such as pleasure, hunting, roping, pets, or for show. (d) The following categories of animals owned by a livestock owner are eligible livestock and calculations of eligibility for payments will be calculated separately for each producer with respect to each category: (1) Adult beef bulls; (2) Adult beef cows; (3) Adult buffalo or beefalo bulls; (4) Adult buffalo or beefalo cows; (5) Adult dairy bulls; (6) Adult dairy cows; (7) Alpacas; (8) Chickens, broilers, pullets; (9) Chickens, chicks; (10) Chickens, layers, roasters; (11) Deer; (12) Ducks; (13) Ducks, ducklings; (14) Elk; (15) Emus; (16) Equine; (17) Geese, goose; (18) Geese, gosling; (19) Goats, bucks; (20) Goats, nannies; (21) Goats, kids; (22) Llamas; (23) Non-adult beef cattle; (24) Non-adult buffalo or beefalo; (25) Non-adult dairy cattle; (26) Reindeer; (27) Sheep, ewes; (28) Sheep, lambs; (29) Sheep, rams; (30) Swine, feeder pigs under 50 pounds; (31) Swine, sows, boars, barrows, gilts 50 to 150 pounds; (32) Swine, sows, boars, barrows, gilts over 150 pounds; (33) Turkeys, poults; and (34) Turkeys, toms, fryers, and roasters. (e) The following categories of animals are eligible livestock for contract growers and calculations of eligibility for payments will be calculated separately for each producer with respect to each category: (1) Chickens, broilers, pullets; (2) Chickens, layers, roasters; (3) Geese, goose; (4) Swine, boars, sows; E:\FR\FM\14APR2.SGM 14APR2 21114 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (5) Swine, feeder pigs; (6) Swine, lightweight barrows, gilts; (7) Swine, sows, boars, barrows, gilts; and (8) Turkeys, toms, fryers, and roasters. (f) The following livestock are considered to be ineligible livestock for the purpose of generating payments under this subpart: (1) Livestock that have died due to disease where the disease was not exacerbated by an eligible adverse weather event. Diseases that can be prevented by implementing and following acceptable management practices, such as vaccination, are not considered an eligible livestock death loss under LIP. Livestock that die as a result of the disease are not eligible for payment to be generated under LIP when the disease has been determined to not have been exacerbated by an eligible adverse weather event and vaccination or acceptable management practices can or have been implemented to prevent such disease. Before COC approves LIP applications for payment for disease, COC through STC, must request determination from the Deputy Administrator or designee whether the specific disease is a disease that is exacerbated by an eligible adverse weather event. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.305 Application process. (a) A producer or contract grower that suffered livestock losses that creates or could create a claim for benefits must: (1) For losses on or after October 1, 2011, and before January 1, 2015, provide a notice of loss and application for payment to FSA no later than January 30, 2015. (2) For 2015 calendar year and subsequent year losses, provide a notice of loss to FSA within the earlier of: (i) 30 calendar days of when the loss of livestock is apparent to the participant or (ii) 30 calendar days after the end of the calendar year in which the loss of livestock occurred. (3) The participant must submit the notice of loss required in paragraphs (a)(1) and (2) of this section to the FSA administrative county office that maintains the participant’s farm records for the agricultural operation. (b) In addition to the notices of loss required in paragraph (a)(2) of this section, a participant must also submit a completed application for payment no later than 30 calendar days after the end of the calendar year in which the loss of livestock occurred. (c) A participant must also provide a copy of the grower contract, if a contract grower, and other supporting documents required for determining VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 eligibility as an applicant at the time the participant submits the completed application for payment. Supporting documents must include: (1) Evidence of loss, (2) Current physical location of livestock in inventory, (3) Physical location of claimed livestock at the time of death, (4) Inventory numbers and other inventory information necessary to establish actual mortality as required by FSA, (5) A farm operating plan, if a current farm operating plan is not already on file in the FSA county office, (6) Documentation of the adverse weather event from an official weather reporting data source that is determined by FSA to be reputable and available in the public domain such as, but not limited to, NOAA, from which State and County FSA Offices can validate the adverse weather event occurred, and (7) Documentation to substantiate eligible animal attacks by animals or avian predators showing confirmation of the eligible animal or avian attack obtained from a source such as, but not limited to, the following: (i) APHIS, (ii) State level Department of Natural Resources, or (iii) Other sources or documentation, as determined by the Deputy Administrator. (8) The livestock producer may supplement additional documentation to support eligible adverse weather events and eligible attacks by animal or avian predators, as determined by the Deputy Administrator. (d) The participant must provide adequate proof that the death of the eligible livestock occurred as a direct result of an eligible adverse weather event or attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators, in the calendar year for which benefits are requested. The quantity and kind of livestock that died as a direct result of the eligible adverse weather event during the calendar year for which benefits are being requested may be documented by: Purchase records; veterinarian records; bank or other loan papers; rendering-plant truck receipts; Federal Emergency Management Agency records; National Guard records; written contracts; production records; Internal Revenue Service records; property tax records; private insurance documents; and other similar verifiable documents as determined by FSA. (e) If adequate verifiable proof of death documentation is not available, PO 00000 Frm 00030 Fmt 4701 Sfmt 4700 the participant may provide reliable records, in conjunction with verifiable beginning and ending inventory records, as proof of death. Reliable records may include contemporaneous producer records, dairy herd improvement records, brand inspection records, vaccination records, dated pictures, and other similar reliable documents as determined by FSA. (f) Certification of livestock deaths by third parties may be accepted if verifiable beginning and ending inventory data is available only if verifiable proof of death records or reliable proof of death records in conjunction with verifiable beginning and ending inventory records are not available and both of the following conditions are met: (1) The livestock owner or livestock contract grower, as applicable, certifies in writing: (i) That there is no other verifiable or reliable documentation of death available; (ii) The number of livestock, by category identified in this subpart and by FSA were in inventory at the time the eligible adverse weather event occurred; (iii) The physical location of the livestock, by category, in inventory when the deaths occurred; and (iv) Other details required for FSA to determine the certification acceptable; and (2) The third party is an independent source who is not affiliated with the farming operation such as a hired hand and is not a ‘‘family member,’’ defined as a person whom a member in the farming operation or their spouse is related as lineal ancestor, lineal descendant, sibling, spouse, and provides their telephone number, address, and a written statement containing specific details about: (i) Their knowledge of the livestock deaths; (ii) Their affiliation with the livestock owner; (iii) The accuracy of the deaths claimed by the livestock owner or contract grower including, but not limited to, the number and kind or type of the participant’s livestock that died because of the eligible adverse weather event; and (iv) Other information required by FSA to determine the certification acceptable. (v) Data furnished by the participant and the third party will be used to determine eligibility for program benefits. Furnishing the data is voluntary; however, without all required data program benefits will not be approved or provided. E:\FR\FM\14APR2.SGM 14APR2 mstockstill on DSK4VPTVN1PROD with RULES2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (g) Calf and lamb open range livestock operations may provide proof of death by using the livestock beginning inventory history for reporting losses. (1) For 2015 and subsequent calendar years, livestock inventory reports must be provided to the local county FSA office no later than 30 calendar days after the end of the calendar year for which reports will be accepted for inclusion in the base period for the current calendar year. For the 2011 through 2014 calendar years, producers have until January 30, 2015, to provide the applicable livestock inventory reports. The STC may approve a waiver of the reporting deadline if a participant has not previously received benefits under this method. (i) Livestock inventory reports must provide an accurate account of livestock beginning inventory for the open range livestock type or kind and must be supported by written verifiable records such as but not limited to: Docking records, sales receipts, shearing records, shipping records, bank records, veterinarian records, IRS records, or other records approved by COC. For purposes of determining beginning livestock inventory, livestock inventory reports may require adjustment by COC, not to exceed normal mortality, for when loss occurs at different points during the growing season (for example, inventories from docking may need little to no adjustment, but sales records at the end of the growing season may require an adjustment to account for a full years of normal mortality). (ii) The open range livestock operation must certify to the accuracy of the information. (2) The open range livestock operation is solely responsible for the timely submission and certification of accurate, complete livestock beginning inventory to the county FSA office. Livestock beginning inventory records must be provided for all livestock type or kind. (i) Records may be requested by the applicable COC or STC, on behalf of FSA. The open range livestock operation must provide such records upon request. (ii) The COC will explain the procedure for the livestock beginning inventory history to open range livestock operation. COC will determine the livestock beginning inventory history in accordance with § 1416.305(g). (iii) COC will determine if the livestock beginning inventory records are acceptable and calculate the approved livestock beginning inventory history. (3) The livestock beginning inventory history is calculated utilizing a VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 minimum of 4 years of data and will be updated each subsequent inventory year. The transitional livestock beginning inventory history may contain a maximum of the 4 most recent calendar years and may include actual and transitional livestock beginning inventories. Transitional livestock beginning inventory history will only be used when less than 4 years of actual records are available. Appropriate adjustments to livestock beginning inventory history may be made to account for variations in ewe and cow stocking levels during the period covered by the history. (4) The open range livestock operation is required to provide beginning livestock inventory records to determine the livestock beginning inventory history, if livestock beginning inventory records are available. (i) If no acceptable livestock beginning inventory records are available for either calves or lambs, calculate the 4 transitional livestock beginning inventory histories by multiplying the approved birthing rate or drop rate percentage for the open range livestock operation times the applicable cow or ewe livestock beginning inventory history times 65 percent. (ii) If acceptable livestock beginning inventory records are provided for only one of the most recent 5 calendar years, calculate the 3 transitional livestock beginning inventory histories by multiplying the approved birthing rate or drop rate percentage for the open range livestock operation times the applicable cow or ewe livestock beginning inventory history times 80 percent. (iii) If acceptable livestock beginning inventory records are provided for only 2 of the most recent 5 calendar years, calculate the 2 transitional livestock beginning inventory histories by multiplying the approved birthing rate or drop rate percentage for the open range livestock operation times the applicable cow or ewe livestock beginning inventory history times 90 percent. (iv) If acceptable livestock beginning inventory records are provided for only 3 of the most recent 5 calendar years, calculate the one transitional livestock beginning inventory histories by multiplying the approved birthing rate or drop rate percentage for the open range livestock operation times the applicable cow or ewe livestock beginning inventory history times 100 percent. (v) If acceptable livestock beginning inventory history records containing information for 4 or more of the most PO 00000 Frm 00031 Fmt 4701 Sfmt 4700 21115 recent calendar years are provided, calculate the livestock beginning inventory history by taking a simple average of the actual livestock beginning inventory histories. (h) For livestock death losses that occurred on or after October 1, 2011, and before January 1, 2015, livestock producers who cannot meet the criteria in paragraphs (d) through (g) of this section may provide acceptable documentation of proof of death and inventories according to the requirements in this paragraph (h). (1) Documents that may provide acceptable evidence of death include, but are not limited to, any or a combination of the following: (i) Contemporaneous producer records existing at the time of the event, such as, but not limited to: Personal diary listing births, deaths, unaccounted animals, and date of such event; personal diary of cowboy or herdsman showing animal care; calendar listing births, deaths, unaccounted animals, date livestock turned out on pasture; pictures with a date; brand inspection records; dairy herd improvement records; ear tag documentation or records; and other similar reliable documents. COC may require the livestock producer to file a third-party certification to support the contemporaneous records. (ii) Third-party certification according to paragraph (f) of this section, except that the third-party is not required to certify to the specific number of livestock. (2) Documents that may provide acceptable evidence of livestock inventory include, but are not limited to, any or a combination of the following: (i) Veterinary records; (ii) Canceled check documentation; (iii) Balance sheets; (iv) Inventory records used for tax purposes; (v) Loan records; (vi) Bank statements; (vii) Farm credit balance sheets; (viii) Property tax records; (xix) Trucking and/or livestock hauling records; (x) Brand inspection records; (xi) Sales and purchase receipts; (xii) Private insurance documents; (xiii) Chattel inspections; (xiv) IRS records such schedule F and depreciation schedules; (xv) Docking records; (xvi) Shearing records; (xvii) Ear tag records. (3) COC may compare livestock numbers and carrying capacity to acreage reports filed by a producer during the calendar year of loss to determine reasonableness. E:\FR\FM\14APR2.SGM 14APR2 21116 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations (4) COC must review all documentation provided by the producer and based upon review of the documentation provided by the producer and personal knowledge of the producer’s livestock operation, determine whether the number of death losses reported by the livestock producer are reasonable and whether the application for payment should be approved. § 1416.306 Subpart E—Tree Assistance Program mstockstill on DSK4VPTVN1PROD with RULES2 Applicability. (a) This subpart establishes the terms and conditions under which the Tree Assistance Program (TAP) will be administered under Title I of the Agricultural Act of 2014 (Pub. L. 113– 79, the 2014 Farm Bill). (b) Eligible orchardists and nursery tree growers will be compensated as specified in § 1416.406 for eligible tree, bush, and vine losses in excess of 15 percent mortality, or, where applicable, VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 § 1416.401 Administration. The program will be administered as specified in § 1416.2 and in this subpart. § 1416.402 Payment calculation. (a) Under this subpart, separate payment rates for eligible livestock owners and eligible livestock contract growers are specified in paragraphs (b) and (c) of this section, respectively. Payments for LIP are calculated by multiplying the national payment rate for each livestock category by the number of eligible livestock in excess of normal mortality in each category that died as a result of an eligible adverse weather event. Normal mortality for each livestock category will be determined by FSA on a State-by-State basis using local data sources including, but not limited to, State livestock organizations and the Cooperative Extension Service for the State. Adjustments will be applied as specified in paragraph (d) of this section. (b) The LIP national payment rate for eligible livestock owners is based on 75 percent of the average fair market value of the applicable livestock as computed using nationwide prices for the previous calendar year unless some other price is approved by the Deputy Administrator. (c) The LIP national payment rate for eligible livestock contract growers is based on 75 percent of the average income loss sustained by the contract grower with respect to the dead livestock. (d) The LIP payment calculated for eligible livestock contract growers will be reduced by the amount the participant received from the party who contracted with the producer to raise the livestock for the loss of income from the dead livestock. § 1416.400 damage in excess of 15 percent, adjusted for normal mortality and normal damage, that occurred in the calendar year (or loss period in the case of plant disease) for which benefits are being requested and as a direct result of a natural disaster. Definitions. The following definitions apply to this subpart. The definitions in parts 718 of this title and 1400 of this chapter also apply, except where they conflict with the definitions in this section. Bush means, a low, branching, woody plant, from which at maturity of the bush, an annual fruit or vegetable crop is produced for commercial purposes, such as a blueberry bush. The definition does not cover plants that produce a bush after the normal crop is harvested such as asparagus. Commercial use means used in the operation of a business activity engaged in as a means of livelihood for profit by the eligible producer. County committee means the respective FSA committee. County office means the FSA or U.S. Department of Agriculture (USDA) Service Center that is responsible for servicing the farm on which the trees, bushes, or vines are located. Cutting means a piece of a vine which was planted in the ground to propagate a new vine for the commercial production of fruit, such as grapes, kiwi fruit, passion fruit, or similar fruit. Deputy Administrator or DAFP means the Deputy Administrator for Farm Programs, FSA, USDA, or the designee. Eligible nursery tree grower means a person or legal entity that produces nursery, ornamental, fruit, nut, or Christmas trees for commercial sale. Eligible orchardist means a person or legal entity that produces annual crops from trees, bushes, or vines for commercial purposes. FSA means the Farm Service Agency. Lost means, with respect to the extent of damage to a tree or other plant, that the plant is destroyed or the damage is such that it would, as determined by FSA, be more cost effective to replace the tree or other plant than to leave it in its deteriorated, low-producing state. Natural disaster means plant disease, insect infestation, drought, fire, freeze, flood, earthquake, lightning, or other natural occurrence of such magnitude or severity so as to be considered disastrous, as determined by the Deputy Administrator. Normal damage means the percentage, as established for the area PO 00000 Frm 00032 Fmt 4701 Sfmt 4700 by the FSA State Committee, of trees, bushes, or vines in the individual stand that would normally be damaged during a calendar year for a producer. Normal mortality means percentage, as established for the area by the FSA State Committee, of expected lost trees, bushes, or vines in the individual stand that normally occurs during a calendar year for a producer. This term refers to the number of whole trees, bushes, or vines that are destroyed or damaged beyond rehabilitation. Mortality does not include partial damage such as lost tree limbs. Seedling means an immature tree, bush, or vine that was planted in the ground or other growing medium to grow a new tree, bush, or vine for commercial purposes. Stand means a contiguous acreage of the same type of trees (including Christmas trees, ornamental trees, nursery trees, and potted trees), bushes (including shrubs), or vines. State committee means the respective FSA committee. Tree means a tall, woody plant having comparatively great height, and a single trunk from which an annual crop is produced for commercial purposes, such as a maple tree for syrup, papaya tree, or orchard tree. Trees used for pulp or timber are not considered eligible trees under this subpart. Vine means a perennial plant grown under normal conditions from which an annual fruit crop is produced for commercial market for human consumption, such as grape, kiwi, or passion fruit, and that has a flexible stem supported by climbing, twining, or creeping along a surface. Perennials that are normally propagated as annuals such as tomato plants, biennials such as the plants that produce strawberries, and annuals such as pumpkins, squash, cucumbers, watermelon, and other melons, are excluded from the term vine in this subpart. § 1416.403 Eligible losses. (a) To be considered an eligible loss under this subpart: (1) Eligible trees, bushes, or vines must have been lost or damaged as a result of natural disaster as determined by the Deputy Administrator; (2) The individual stand must have sustained a mortality loss or damage loss, as the case may be, in excess of 15 percent after adjustment for normal mortality or damage, to be determined based on: (i) Each eligible disaster event, except for losses due to plant disease; (ii) For plant disease, the time period, as determined by the Deputy E:\FR\FM\14APR2.SGM 14APR2 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations Administrator, for which the stand is infected. (3) The loss could not have been prevented through reasonable and available measures; and (4) The trees, bushes, or vines, in the absence of a natural disaster, would not normally have required rehabilitation or replanting within the 12-month period following the loss. (b) The damage or loss must be visible and obvious to the county committee representative. If the damage is no longer visible, the county committee may accept other evidence of the loss as it determines is reasonable. (c) The county committee may require information from a qualified expert, as determined by the county committee, to determine extent of loss in the case of plant disease or insect infestation. (d) The Deputy Administrator will determine the types of trees, bushes, and vines that are eligible. (e) An individual stand that did not sustain a sufficient loss as specified in paragraph (a)(2) of this section is not eligible for payment, regardless of the amount of loss sustained. mstockstill on DSK4VPTVN1PROD with RULES2 § 1416.404 Eligible orchardists and nursery tree growers. (a) To be eligible for TAP payments, the eligible orchardist or nursery tree grower must: (1) Have planted, or be considered to have planted (by purchase prior to the loss of existing stock planted for commercial purposes) trees, bushes, or vines for commercial purposes, or have a production history, for commercial purposes, of planted or existing trees, bushes, or vines; (2) Have suffered eligible losses of eligible trees, bushes, or vines occurring on or after October 1, 2011, as a result of a natural disaster or related condition; (3) Have continuously owned the stand from the time of the disaster until the time that the TAP application is submitted. (b) A new owner of an orchard or nursery who does not meet the requirements of paragraph (a) of this section may receive TAP payments approved for the previous owner of the orchard or nursery and not paid to the previous owner, if the previous owner of the orchard or nursery agrees to the succession in writing and if the new owner: (1) Acquires ownership of trees, bushes, or vines for which benefits have been approved; (2) Agrees to complete all approved practices that the original owner has not completed; and (3) Otherwise meets and assumes full responsibility for all provisions of this VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 part, including refund of payments made to the previous owner, if applicable. (c) A producer seeking payment must not be ineligible under the restrictions applicable to citizenship and foreign corporations contained in § 1416.3(b) and must meet all other requirements of subpart A of this part. (d) Federal, State, and local governments and agencies and political subdivisions thereof are not eligible for payment under this subpart. § 1416.405 Application. (a) To apply for TAP, a producer that suffered eligible tree, bush, or vine losses that occurred: (1) On or after October 1, 2011, through December 31, 2014, must provide an application for payment and supporting documentation to FSA by the later of January 31, 2015, or 90 calendar days after the disaster event or date when the loss is apparent to the producer. (2) During the 2015 calendar year or later, must provide an application for payment and supporting documentation to FSA within 90 calendar days of the disaster event or date when the loss of trees, bushes, or vines is apparent to the producer. (b) The producer must submit the application for payment within the time specified in paragraph (a) of this section to the FSA administrative county office that maintains the producer’s farm records for the agricultural operation. (c) A complete application includes all of the following: (1) A completed application form provided by FSA; (2) An acreage report for the farming operation as specified in part 718, subpart B, of this title; (3) Subject to verification and a loss amount determined appropriate by the county committee, a written estimate of the number of trees, bushes, or vines lost or damaged that is certified by the producer or a qualified expert, including the number of acres on which the loss occurred; (4) Sufficient evidence of the loss to allow the county committee to calculate whether an eligible loss occurred; and (5) A farm operating plan, if a current farm operating plan is not already on file in the FSA county office. (d) Before requests for payment will be approved, the county committee: (1) Must make an eligibility determination based on a complete application for assistance; (2) Must verify actual qualifying losses and the number of acres involved by on-site visual inspection of the land and the trees, bushes, or vines; PO 00000 Frm 00033 Fmt 4701 Sfmt 4700 21117 (3) May request additional information and may consider all relevant information in making its determination; and (4) Must verify actual costs to complete the practices, as documented by the producer. § 1416.406 Payment calculations. (a) Payment to an eligible orchardist or nursery tree grower for the cost of replanting or rehabilitating trees, bushes, or vines damaged or lost due to a natural disaster, in excess of 15 percent damage or mortality (adjusted for normal damage or mortality), will be calculated as follows: (1) For the cost of planting seedlings or cuttings, to replace lost trees, bushes, or vines, the lesser of: (i) 65 percent of the actual cost of the practice, or (ii) The amount calculated using rates established by the Deputy Administrator for the practice. (2) For the cost of pruning, removal, and other costs incurred for salvaging damaged trees, bushes, or vines, or in the case of mortality, to prepare the land to replant trees, bushes, or vines, the lesser of: (i) 50 percent of the actual cost of the practice, or (ii) The amount calculated using rates established by the Deputy Administrator for the practice. (b) An orchardist or nursery tree grower that did not plant the trees, bushes, or vines, but has a production history for commercial purposes on planted or existing trees and lost the trees, bushes, or vines as a result of a natural disaster, in excess of 15 percent damage or mortality (adjusted for normal damage or mortality), will be eligible for the salvage, pruning, and land preparation payment calculation as specified in paragraph (a)(2) of this section. To be eligible for the replanting payment calculation as specified in paragraph (a)(1) of this section, the orchardist or nursery grower who did not plant the stock must be a new owner who meets all of the requirements of § 1416.404(b) or be considered the owner of the trees under provisions appearing elsewhere in this subpart. (c) Eligible costs for payment calculation include costs for: (1) Seedlings or cuttings, for tree, bush, or vine replanting; (2) Site preparation and debris handling within normal horticultural practices for the type of stand being reestablished, and necessary to ensure successful plant survival; (3) Pruning, removal, and other costs incurred to salvage damaged trees, bushes, or vines, or, in the case of tree E:\FR\FM\14APR2.SGM 14APR2 21118 Federal Register / Vol. 79, No. 71 / Monday, April 14, 2014 / Rules and Regulations mstockstill on DSK4VPTVN1PROD with RULES2 mortality, to prepare the land to replant trees, bushes, or vines; (4) Chemicals and nutrients necessary for successful establishment; (5) Labor to plant seedlings or cuttings as determined reasonable by the county committee; and (6) Labor used to transplant existing seedlings established through natural regeneration into a productive tree stand. (d) The following costs are not eligible: (1) Costs for fencing, irrigation, irrigation equipment, protection of seedlings from wildlife, general improvements, re-establishing structures, and windscreens. (2) Any other costs not listed in paragraphs (c)(1) through (6) of this section, unless specifically determined eligible by the Deputy Administrator. (e) Producers must provide the county committee documentation of actual costs to complete the practices, such as receipts for labor costs, equipment rental, and purchases of seedlings or cuttings. (f) When lost stands are replanted, the types planted may be different from those originally planted. The alternative types will be eligible for payment if the new types have the same general end use, as determined and approved by the county committee. Payments for VerDate Mar<15>2010 18:57 Apr 11, 2014 Jkt 232001 alternative types will be based on the lesser of rates established to plant the types actually lost or the cost to establish the alternative used. If the type of plantings, seedlings, or cuttings differs significantly from the types lost, the costs may not be approved for payment. (g) When lost stands are replanted, the types planted may be planted on the same farm in a different location than the lost stand. To be eligible for payment, site preparation costs for the new location must not exceed the cost to re-establish the original stand in the original location. (h) Eligible orchardists or nursery tree growers may elect not to replant the entire eligible stand. If so, the county committee will calculate payment based on the number of qualifying trees, bushes, or vines actually replanted. (i) If a practice, such as site preparation, is needed to both replant and rehabilitate trees, bushes, or vines, the producer must document the expenses attributable to replanting versus rehabilitation. The county committee will determine whether the documentation of expenses detailing the amounts attributable to replanting versus rehabilitation is acceptable. In the event that the county committee determines the documentation does not include acceptable detail of cost PO 00000 Frm 00034 Fmt 4701 Sfmt 9990 allocation, the county committee will pro-rate payment based on physical inspection of the loss, damage, replanting, and rehabilitation. (j) The cumulative total quantity of acres planted to trees, bushes, or vines for which a producer may receive payment under this part for losses that occurred on or after October 1, 2011, can not exceed 500 acres per program year. § 1416.407 Obligations of a participant. (a) Eligible orchardists and nursery tree growers must execute all required documents and complete the TAPfunded practice within 12 months of application approval. (b) Eligible orchardist or nursery tree growers must allow representatives of FSA to visit the site for the purposes of certifying compliance with TAP requirements. (c) Producers who do not meet all applicable requirements and obligations will not be eligible for payment. Signed on April 7, 2014. Juan M. Garcia, Administrator, Farm Service Agency and Executive Vice President, Commodity Credit Corporation. [FR Doc. 2014–08067 Filed 4–11–14; 8:45 am] BILLING CODE 3410–05–P E:\FR\FM\14APR2.SGM 14APR2

Agencies

[Federal Register Volume 79, Number 71 (Monday, April 14, 2014)]
[Rules and Regulations]
[Pages 21085-21118]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-08067]



[[Page 21085]]

Vol. 79

Monday,

No. 71

April 14, 2014

Part VI





Department of Agriculture





-----------------------------------------------------------------------





Commodity Credit Corporation





-----------------------------------------------------------------------





7 CFR Parts 1400 and 1416





 Supplemental Agricultural Disaster Assistance Programs, Payment 
Limitations, and Payment Eligibility; Final Rule

Federal Register / Vol. 79 , No. 71 / Monday, April 14, 2014 / Rules 
and Regulations

[[Page 21086]]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1400 and 1416

RIN 0560-AI21


Supplemental Agricultural Disaster Assistance Programs, Payment 
Limitations, and Payment Eligibility

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements specific requirements for the Emergency 
Assistance for Livestock, Honeybees, and Farm-Raised Fish Program 
(ELAP), Livestock Forage Disaster Program (LFP), Livestock Indemnity 
Program (LIP), Tree Assistance Program (TAP), and general provisions 
for Supplemental Agricultural Disaster Assistance Programs authorized 
by the Agricultural Act of 2014 (2014 Farm Bill). Although there were 
similar disaster programs under the 2008 Farm Bill, the authority for 
those programs has expired. The 2014 Farm Bill reauthorizes these 
programs and they are similar to the 2008 programs, however, there are 
distinct changes in payment limits, eligible losses, and eligible 
causes of loss from prior programs. Eligible ELAP, LFP, LIP, and TAP 
losses must have occurred on or after October 1, 2011 to be eligible 
for payment. This rule specifies how ELAP, LFP, LIP, and TAP payments 
are calculated, what losses are eligible, and when producers may apply 
for payments. Additionally, this final rule implements changes required 
by the 2014 Farm Bill by amending the regulations that specify maximum 
income limits (payment eligibility) and maximum benefit amounts 
(payment limits) for participants in programs funded by the Commodity 
Credit Corporation (CCC) and some FSA programs. The intended effect of 
the eligibility requirements is to ensure that program payments and 
benefits are issued only to those persons and legal entities that meet 
the income eligibility requirements as specified in the 2014 Farm Bill, 
and that program participants do not receive any program payments above 
the maximum allowable payment amount. The payment limits and average 
Adjusted Gross Income (AGI) limits in this final rule apply to 2014 and 
subsequent crop, program, or fiscal year benefits, and to benefits for 
programs that were authorized by the 2014 Farm Bill for retroactive 
2012 or 2013 crop, program, or fiscal year benefits.

DATES: Effective Date: April 14, 2014.

FOR FURTHER INFORMATION CONTACT: For general provisions for 
Supplemental Agricultural Disaster Assistance Programs, LFP, and LIP: 
Scotty Abbott; telephone (202) 720-7997. For ELAP: Amy Mitchell; 
telephone (202) 720-8954. For TAP: Steve Peterson: telephone: (202) 
720-7641. For Payment Limits and Payment Eligibility: James Baxa, 
telephone: (202) 720-4189.

SUPPLEMENTARY INFORMATION:

Background

Disaster Assistance Programs, Payment Limits, and Payment Eligibility

    The disaster assistance programs, payment limits, and payment 
eligibility provisions in this rule are CCC programs and provisions; 
the Farm Service Agency (FSA) administers the programs and provisions 
for CCC.

Supplemental Agricultural Disaster Assistance Programs

    This final rule implements the general eligibility provisions and 
specific requirements for supplemental agricultural disaster assistance 
programs authorized by Section 1501 of the 2014 Farm Bill (Pub. L. 113-
79). Section 1501 authorizes the Secretary of Agriculture to assist 
producers through four different disaster programs:
     ELAP,
     LFP,
     LIP (referred to as Livestock Indemnity Payments in the 
2014 Farm Bill), and
     TAP.
    ELAP provides emergency assistance to eligible producers of 
livestock, honeybees, and farm-raised fish that have losses due to 
adverse weather, or other conditions, including losses due to 
blizzards, disease (including cattle tick fever), water shortages, and 
wildfires, as determined by the Secretary. ELAP assistance is for 
losses not covered under LFP or LIP.
    LFP provides payments to eligible livestock producers that have 
suffered livestock grazing losses due to qualifying drought or fire. 
For drought, the losses must have occurred due to a qualifying drought 
during the normal grazing period for the county on land that is native 
or improved pastureland with permanent vegetative cover or is planted 
to a crop planted specifically for grazing covered livestock. LFP also 
provides payments to eligible livestock producers that have suffered 
grazing losses on rangeland managed by a Federal agency if the eligible 
livestock producer is prohibited by the Federal agency from grazing the 
normally permitted livestock on the managed rangeland due to a 
qualifying fire.
    LIP provides disaster assistance to livestock owners and contract 
growers that had losses due to livestock deaths in excess of normal 
mortality due to adverse weather during the calendar year, the 2014 
Farm Bill includes hurricanes, floods, blizzards, disease, wildfires, 
extreme heat, and extreme cold as ``weather.'' To use the terms in the 
normal sense, in this rule, we will refer to ``weather or other 
conditions'' and these will include the same list as the 2014 Farm Bill 
includes as ``weather.'' LIP also provides assistance to livestock 
owners and contract growers that had losses due to livestock deaths in 
excess of normal mortality due to attacks by animals reintroduced into 
the wild by the Federal Government or protected by Federal law, 
including wolves and avian predators.
    TAP provides disaster assistance to eligible orchardists and 
nursery tree growers to replant or rehabilitate trees, bushes, and 
vines that were lost due to natural disaster. Orchardists and nursery 
tree growers who commercially raise trees, bushes, and vines for which 
there were mortality losses in excess of 15 percent, after adjustment 
for normal mortality, are eligible for TAP payments.
    With the authorization provided in the 2014 Farm Bill, these 
disaster assistance programs are permanent or ``standing'' programs; 
that is, they are continuing programs not subject to annual 
appropriations. ELAP, LFP, LIP, and TAP were previously authorized 
under the 2008 Farm Bill (the Food, Conservation, and Energy Act of 
2008, Pub. L. 110-246), however, these programs expired. The 2014 Farm 
Bill authorizes ELAP, LFP, LIP, and TAP disaster programs and while 
they are similar to those programs authorized by the 2008 Farm Bill, 
the newly authorized programs have minor changes from those previously 
authorized programs. In addition, the 2014 Farm Bill authorizes 
retroactive payments under these programs for losses in FY 2012 and 
2013. The 2014 Farm Bill did not reauthorize the Supplemental Revenue 
Assistance Payments Program (SURE), which was previously authorized by 
the 2008 Farm Bill and has expired.
    Under the 2008 Farm Bill, payments for ELAP, LFP, LIP, and TAP were 
made from the funds of the Agricultural Disaster Relief Trust Fund 
established under section 902 of the Trade Act of 1974. Under the 2014 
Farm Bill, payments will be made from CCC funds. Due to this change in 
funding source, this rule moves the regulations for the

[[Page 21087]]

four disaster assistance programs out of 7 CFR chapter VII, which 
covers FSA programs, and into 7 CFR chapter XIV, which covers CCC 
programs. The main scope of these programs is, however, unchanged, and 
that is why the regulations that were located 7 CFR chapter VII for the 
disaster programs previously authorized by the 2008 Farm Bill are being 
used as the basis for the regulations located in 7 CFR chapter XIV, 
subject to changes made by the 2014 Farm Bill.

Terms Used in This Rule

    The terms used in the existing CFR for these programs have not 
changed. This final rule uses the words ``producers'' and 
``participants'' in substantive ways. ``Producers'' may apply for ELAP, 
LFP, LIP, and TAP. ``Participants'' are those ``producers'' who apply 
for payments under the programs and who must meet the requirements to 
be eligible to receive ELAP, LFP, LIP, and TAP payments.
    Section 1501 of the 2014 Farm Bill uses the words ``assistance,'' 
``benefits,'' ``compensation,'' ``relief,'' and ``payments.'' The 
payment for the ELAP, LFP, LIP, and TAP assistance, benefit, relief, or 
compensation for eligible producers is calculated as specified in this 
rule.
    For LFP, section 1501 of the 2014 Farm Bill and this rule include 
the terms ``eligible livestock producer,'' ``covered livestock,'' and 
``qualifying drought or fire.'' This rule also uses the terms 
``qualifying grazing loss'' and ``qualifying grazing land.'' For TAP, 
section 1501 of the 2014 Farm Bill and this rule include the terms 
``eligible orchardist'' and ``nursery tree grower.'' These terms have 
not changed.

General Eligibility Requirements for Disaster Assistance Programs

    As specified in the 2014 Farm Bill and in this rule, the total 
amount of payments that a person or legal entity can receive, directly 
or indirectly, in any crop year cannot exceed $125,000 for LIP, LFP, 
and ELAP; TAP has a separate payment limit of $125,000 per person or 
legal entity for any crop year. Under the 2008 Farm Bill, payments 
under LIP, LFP, ELAP, and SURE were limited to $100,000 total per 
person or legal entity per year and TAP benefits were limited to 
$100,000 per person or legal entity per year.
    The 2014 Farm Bill and this rule specify that a person or legal 
entity is ineligible for payments if the person's or legal entity's 
average AGI for the applicable benefit year is in excess of $900,000. 
This single AGI limit replaces the multiple limits for farm and non-
farm income, and the separate limit for conservation programs, that 
were required by the 2008 Farm Bill. Therefore this rule removes the 
references to farm versus non farm income, and the separate limit for 
conservation programs, from the CFR. Under the 2008 Farm Bill, the 
average AGI limit for payment eligibility was $500,000 in non-farm 
income and $750,000 in farm income, with a separate limit of $1 million 
in nonfarm income for conservation program eligibility.
    This rule revises 7 CFR part 1400 to implement the payment limit 
and AGI regulations specified in the 2014 Farm Bill. (More details on 
the payment limit and AGI limit changes that apply generally to all 
CCC- funded programs are provided later in this document.)

Previous Risk Management Purchase Requirement

    The 2014 Farm Bill removes the risk management purchase requirement 
for all the disaster assistance programs. The 2008 Farm Bill required 
that producers obtain a Risk Management Agency (RMA) policy or plan of 
insurance or Noninsured Crop Disaster Assistance Program (NAP) coverage 
for all crops on the producer's farm for which the producer had an 
interest as a condition of payment eligibility for ELAP, LFP, and TAP. 
For losses occurring on or after October 1, 2011, participants are not 
required to have an RMA policy or plan of insurance or NAP coverage for 
any of their crops to be eligible for benefits under ELAP, LFP, LIP, or 
TAP.

Other General Provisions That Apply to Disaster Assistance Programs

    This rule moves the existing regulations for the general provisions 
for disaster programs authorized by the 2008 Farm Bill in 7 CFR part 
760, subpart B, to 7 CFR part 1416, subpart A, and amends those 
regulations as required by the 2014 Farm Bill. This rule changes some 
of the documentation requirements needed to support losses. These 
discretionary changes recognize the difficulty that producers may face 
and the need for flexibility regarding documentation, while at the same 
time recognizing FSA's need to ensure that participants meet all 
eligibility requirements specified in the 2014 Farm Bill. For losses on 
or after October 1, 2011, this rule clarifies that, because FSA must 
monitor both payment limitation and AGI compliance, as well as specific 
program eligibility requirements, participants must provide or have on 
file a farm operating plan for the applicable year to be eligible for 
payments under ELAP, LFP, LIP, or TAP.
    This rule does not change the requirement that participants 
receiving ELAP, LFP, LIP, and TAP payments must keep records and 
documentation that support the request for payment under these programs 
for 3 years following the end of the year in which the application for 
payment was filed. That recordkeeping requirement is consistent with 
other FSA rules and programs, as well as with previous similar disaster 
assistance programs. This final rule changes the requirements for 
documentation of losses under ELAP, LFP, and LIP, which are discussed 
in more detail in this document under the supplementary information for 
each of those programs. For example, for ELAP, if verifiable or 
reliable records are not available or provided, FSA may now accept 
producer's certification of eligible losses if similar producers have 
comparable eligible losses, as determined by FSA.
    As specified in this rule in 7 CFR part 1416 subpart A, other 
restrictions and compliance requirements that applied under the 2008 
Farm Bill will continue to apply to ELAP, LFP, LIP, and TAP under the 
2014 Farm Bill including, but not limited to, those pertaining to 
highly erodible land and wetland conservation provisions specified in 7 
CFR part 12. These are not new requirements.
    All producers applying for benefits under ELAP, LFP, LIP, and TAP 
must meet the eligibility requirements provided in this rule; false 
certifications can carry serious consequences (for example, a reduction 
or denial of benefits). FSA will validate applications with random 
spot-checks.

Specific Provisions for ELAP

    This rule moves the existing regulations for ELAP in 7 CFR part 
760, subpart C, to 7 CFR part 1416, subpart B, and amends those 
regulations as required by the 2014 Farm Bill.
    Section 1501 of the 2014 Farm Bill directs the Secretary to use up 
to $20 million per fiscal year from CCC funds to provide emergency 
relief to eligible producers of livestock, honeybees, and farm-raised 
fish. The 2008 Farm Bill provided $50 million per year for ELAP. ELAP 
is intended to provide financial assistance to eligible producers to 
assist in the reduction of losses due to disease (including cattle tick 
fever), adverse weather, such as blizzards, or other conditions, such 
as wildfires as determined by the Secretary. The 2014 Farm Bill added 
cattle tick fever eligibility. ELAP covers losses that are not covered 
under LFP or LIP. Determination of ELAP payment eligibility will be 
based on actual losses as determined by the Deputy

[[Page 21088]]

Administrator for Farm Programs (Deputy Administrator) due to eligible 
adverse weather or other eligible loss conditions.
    Funding for ELAP is authorized by fiscal year; therefore, the 
program year is based on the fiscal year. This is a change from the 
previous ELAP program year, which was based on a calendar year.
    Payments will be made after the sign-up deadline for a program year 
once all applications have been received. Benefits are subject to the 
availability of funds and may be prorated if the total amount of 
benefits applied for exceeds $20 million for a program year. If the 
total amount requested by all eligible producers for that program year 
would result in less than $20 million paid based on the applicable 
minimum payment rate for each category of losses, as specified in these 
regulations, then the payment rate may also be increased to a maximum 
of 80 percent of costs, as determined by the Deputy Administrator. 
Since ELAP was initially authorized by the 2008 Farm Bill, ELAP claims 
have never exceeded the annual funding limit.

Eligibility Requirements for ELAP

    Under this rule, ELAP will continue to provide assistance for 
losses due to disease, adverse weather, or other conditions, such as 
blizzards and wildfires as determined by the Secretary. In general, 
adverse weather includes, but is not limited to, hurricanes, floods, 
blizzards, wildfires, extreme heat, and extreme cold. This rule 
clarifies that ``eligible adverse weather'' means a damaging weather 
event that is not expected to occur during the loss period which 
results in losses. In general, adverse weather or other qualifying 
conditions, as determined by the Deputy Administrator, are conditions 
that cause damage that result in a financial loss to the producer or 
require the producer to incur additional expenses. ELAP is intended to 
provide broad coverage for losses not covered by other programs. As 
under the previous ELAP provisions, additional eligible adverse weather 
and other qualifying loss conditions will be specified, as needed, by 
the Deputy Administrator.
    Under the previous ELAP provisions, only bait and game fish were 
considered eligible farm-raised fish for death losses. However, this 
rule provides the Deputy Administrator discretion to include other 
aquatic species as eligible for death losses.
    Under this rule, ELAP continues to provide assistance for livestock 
grazing, feed, and death losses; honeybee feed, colony, and hive 
losses; and fish feed and death losses. For livestock feed losses, this 
rule clarifies that to be eligible for ELAP, the cost incurred for 
providing or transporting livestock feed to eligible livestock due to 
an eligible adverse weather or eligible loss condition must occur in 
combination with an eligible loss of purchased forage or feedstuffs, of 
mechanically harvested forage or feedstuffs, or from the additional 
cost of purchasing additional livestock feed, above normal quantities, 
required to maintain the eligible livestock during an eligible adverse 
weather or eligible loss condition, until additional livestock feed 
becomes available.
    The 2014 Farm Bill requires that ELAP funds ``be used to reduce 
losses covered by feed or water shortages . . .'' Therefore, beginning 
with the 2014 program year, the costs of providing and transporting 
water due to an eligible drought will also be covered under ELAP. 
Although in the past some producers who have incurred expenses for 
transporting water have received compensation from the Emergency 
Conservation Program (ECP), this discretionary change to cover these 
costs under ELAP will allow FSA to provide more effective and timely 
assistance for producers suffering eligible losses for the additional 
costs of transporting water. Participants may not receive funds from 
both ELAP and ECP for the same costs. Only the additional costs 
associated with transporting the water are eligible for payment; the 
cost of the water itself is not covered under ELAP. The producer must 
have had adequate livestock watering systems or facilities prior to the 
eligible adverse weather or loss condition and normally not need to 
transport water to the grazing land. In addition, the livestock must be 
on eligible grazing lands physically located in the county where the 
eligible adverse weather or eligible loss condition occurred.
    While losses due to disease were already covered under the previous 
ELAP regulations, the 2014 Farm Bill specifically adds cattle tick 
fever as a covered disease. As a result, ELAP will cover losses due to 
the cost of gathering cattle for treatment of cattle tick fever 
occurring on or after October 1, 2011.

Applying for ELAP Payment

    As under the previous ELAP regulations, a producer must file both a 
notice for loss and an application for payment to obtain ELAP benefits. 
For losses in program years 2012 and 2013, producers must file a notice 
of loss for each program year no later than August 1, 2014. For losses 
that occur in program year 2014, producers must file a notice of loss 
no later than November 1, 2014. For losses that occur in program year 
2015 and subsequently, the participant must provide a notice of loss 
within the earlier of 30 calendar days of when the loss occurred or 
November 1 following the program year for which benefits are being 
requested. The program year, as noted earlier, is now the fiscal year. 
This means, for example, the deadline for the 2015 program year would 
be November 1, 2015.
    For the 2012 and 2013 program years, producers must file an 
application for payment for each program year no later than August 1, 
2014. For 2014 and subsequent program years, producers must file an 
application for payment no later than November 1 of the year following 
the program year for which benefits are being requested. The 
application for payment may be filed at the same time as the notice of 
loss, but does not have to be filed at the same time.
    As under the previous ELAP provisions for grazing losses, a 
participant with grazing losses that occur during the 2012, 2013, or 
2014 program years must certify to the number of days that grazing was 
lost due to an eligible adverse weather or loss condition. However, a 
participant with grazing losses that occur in 2015 and subsequent 
program years must also provide acceptable verifiable or reliable 
records that additional feed was fed to sustain livestock during an 
eligible adverse weather or eligible loss condition, or the livestock 
were removed from the eligible grazing land where the grazing loss 
occurred. If verifiable or reliable records of additional feed or 
livestock removal are not available or provided, FSA may accept the 
producer's certification of grazing losses if similar producers have 
comparable grazing losses, as determined by FSA; for 2012, 2013 and 
2014 program years, in addition to the producer certification, the 
producer must provide the normally required documentation for proof of 
eligibility, which includes, at a minimum, a farm operating plan, proof 
of the adverse weather event, an AD-1026, and an acreage report. If the 
producer certifies grazing losses without providing verifiable or 
reliable records of having moved the livestock or fed the livestock 
additional feed, then the County committee will review and act on the 
certification. The provision to accept a producer certification if 
verifiable or reliable records are not available is new. A similar 
provision previously applied to documentation losses for eligible 
livestock feed, honeybee colony,

[[Page 21089]]

honeybee hive, honeybee feed, farm-raised fish feed and farm-raised 
fish death losses. As under the previous ELAP regulation, participants 
with eligible livestock death losses must provide proof of death and 
livestock inventory, as required under the LIP.

ELAP Payment Calculations

    This rule increases the payment rate for honeybee colony and hive 
losses, fish deaths, and livestock deaths. The payment rate is a 
discretionary provision that is not specified in the 2014 Farm Bill. 
Under the provisions implementing the 2008 Farm Bill, ELAP payments 
were calculated using a payment rate of 60 percent. Under this rule, 
the payment rate may vary, and will be a minimum of 60 percent for 
livestock, fish, and honeybee feed losses, and 75 percent for honeybee 
colony and hive losses, fish deaths, and livestock deaths. The payment 
rate may be increased, as determined by the Deputy Administrator, to 
provide additional assistance to producers if total requests for 
payments in a program year are less than $20 million, however, the cap 
for the payment rate will be 80 percent (maximum). The payment rate 
will be adjusted as needed based on the total requests for payments and 
other factors. In some years, the payment rate may be decreased and in 
other years, the payment rate may be increased. For socially 
disadvantaged, limited resource, and beginning farmers, the payment 
rate will be 90 percent for all losses under ELAP, independent of 
funding constraints; this is a discretionary change, which allows CCC 
to provide additional assistance to producers when funding is 
available. If approval of all eligible applications in a program year 
would result in expenditures in excess of the amount available for that 
program year, FSA will prorate the available funds by a national factor 
to reduce the total expected payments to the amount available for the 
program year. As noted earlier, the funding level cap under the 2014 
Farm Bill is $20 million per program (fiscal) year. Since ELAP was 
initially authorized by the 2008 Farm Bill, ELAP payments have never 
exceeded the annual funding limit.
    This rule does not change the payment calculation for other types 
of losses previously covered under ELAP. For livestock feed losses, 
ELAP payments will continue to be based on producers' actual costs. 
This rule also does not change the calculation for payments due to 
grazing losses, but it does increase the maximum number of days for 
which payment may be received from 90 days to 150 days in the case of 
grazing losses not caused by wildfires on non-Federal land and for 
livestock feed losses. This change is not required by the Farm Bill; it 
is a discretionary change to make grazing loss benefits consistent 
between ELAP and LFP.
    For costs associated with transporting water, ELAP payments will be 
based on the lesser of the total value of the cost to transport water 
for 150 days based on the daily water requirements of the eligible 
livestock, or on the total value of the cost to transport the water to 
eligible livestock for the program year based on the actual number of 
gallons transported by the producer in the program year. To determine 
the daily water requirements of eligible livestock, the number of 
eligible livestock will be converted to an animal unit basis and 
multiplied by the gallons of water required per animal unit for 
maintenance for one day, as determined by the Deputy Administrator. 
Both calculations will determine the value using the national average 
price per gallon to transport water adjusted, if appropriate, for local 
or regional conditions rather than the actual costs paid by a producer. 
The national average price per gallon will be determined by the Deputy 
Administrator. The default rate, as specified in this rule, is $0.04 (4 
cents) per gallon.
    ELAP payments for losses due to the costs of gathering cattle for 
treatment due to cattle tick fever will be calculated based upon the 
actual number of livestock that receive treatment times the average 
cost per head to gather the cattle, as determined by the Deputy 
Administrator, subject to the payment rate. The number of animals and 
treatments reported by a producer will be subject to verification based 
on treatment records provided to FSA by the Animal and Plant Health 
Inspection Service (APHIS).
    This rule changes the payment calculation for eligible farm-raised 
fish death losses to take into account normal mortality of fish during 
the program year, based on a normal mortality rate established by FSA. 
Fish death losses due to normal mortality are not eligible for fish 
death loss benefits.
    While some payment rates have been adjusted, this rule does not 
change how payments are calculated for payments due to livestock 
deaths, honeybee colonies, and honeybee hives.

Specific Provisions for LFP

    This rule moves the existing regulations for LFP in 7 CFR part 760, 
subpart D, to 7 CFR part 1416, subpart C. The 2014 Farm Bill has not 
changed the basic scope of LFP. Section 1501(c)(2) of the 2014 Farm 
Bill directs the Secretary to use such sums as are necessary from CCC 
to compensate eligible livestock producers for eligible grazing losses 
on eligible grazing land for covered livestock due to a qualifying 
drought during the normal grazing period for the county, or grazing 
losses on rangeland managed by a Federal agency if the eligible 
livestock producer is prohibited by the Federal agency from grazing the 
normal permitted livestock on the managed rangeland due to a qualifying 
fire, as determined by the Secretary, during the calendar year. The 
qualifying drought or fire must occur on or after October 1, 2011. The 
payment formulas for LFP in the 2014 Farm Bill will, in some cases, 
provide larger payments than under the 2008 Farm Bill for producers in 
areas of drought for multiple weeks.

Eligibility Requirements

    LFP payments and eligibilities will be calculated based on the type 
of covered livestock and grazing losses, and the calculations will be 
made by FSA-approved categories. This rule does not change the 
regulation that specifies covered livestock or eligible producers. As 
under the previous LFP regulation, reduced payments are available for 
producers who sold or otherwise disposed of covered livestock due to 
qualifying drought in 1 or both of the 2 production years immediately 
preceding the current production year. Where the livestock is in the 
possession of a contract grower at the time of loss, only the contract 
grower will be eligible for payment. ``Contract growers'' under ELAP 
and LFP only includes producers whose income is dependent on the actual 
weight gain and survival of the livestock. Livestock that were or would 
have been in a feedlot are not eligible for LFP. The actual ``owner'' 
of the livestock will not be eligible. This is not a change from the 
existing regulations.
    Livestock used for recreational use, such as animals used for 
roping or pets, are not covered. Animals that were or would have been 
in a feedlot on the beginning date of the drought or fire are not 
covered. Yaks and ostriches are not covered. Cattle (including buffalo 
and beefalo) under 500 pounds on the beginning date of the qualifying 
drought or fire are not covered. These provisions are not new, and have 
not changed.
    Qualifying drought ratings are specified in this rule using the 
U.S. Drought Monitor (http://droughtmonitor.unl.edu) ratings of drought 
intensity. For any eligible areas of the United States (including 
territories and possessions) without U.S.

[[Page 21090]]

Drought Monitor coverage for an applicable program year, the Deputy 
Administrator, in consultation with appropriate weather-related 
agencies and experts, will establish procedures for rating drought 
intensity using the same basic categories as the U.S. Drought Monitor 
such that coverage will be made available. As under the 2008 Farm Bill, 
drought intensity is specified as one of the eligibility ``triggers'' 
for LFP; however, the 2014 Farm Bill changes the payment amount an 
eligible producer may receive based on the length and intensity of the 
qualifying drought as follows:
     For an amount equal to 1 monthly payment, the drought 
length and intensity must be at least a D2 (severe drought) intensity 
in any area of the county for 8 consecutive weeks during the normal 
grazing period for the specific type of grazing land or pastureland for 
the county.
     For an amount equal to 3 monthly payments, the drought 
length and intensity must be at least a D3 (extreme drought) intensity 
in any area of the county at any time during the normal grazing period 
for the specific type of grazing land or pastureland.
     For an amount equal to 4 monthly payments, the drought 
length and intensity must be:
     At least D3 (extreme drought) intensity in any area of the 
county for at least four weeks during the normal grazing period for the 
specific type of grazing land or pastureland for the county, or
     D4 (exceptional drought) intensity in any area of the 
county at any time during the normal grazing period for the specific 
grazing land or pastureland for the county.
     For an amount equal to 5 monthly payments, the drought 
length and intensity must be at least D4 (exceptional drought) in any 
area of the county for at least 4 weeks (not required to be consecutive 
weeks) during the normal grazing period for the county,
    Under the 2008 Farm Bill, LFP provided a maximum of 3 monthly 
payments. These new provisions for up to 5 monthly payments are as 
specified in the 2014 Farm Bill and FSA has no discretion to determine 
otherwise. Total LFP payments to an eligible livestock producer in a 
calendar year for eligible grazing losses due to a qualifying drought 
will not exceed an amount equal to 5 monthly payments for the same 
livestock.
    This rule clarifies that for grazing losses on land planted to a 
crop specifically for the purpose of providing grazing for covered 
livestock to be eligible for payment, grazing must be reported as the 
intended use on the producer's acreage report. If the land is reported 
as another intended use but later grazed, losses due to drought on that 
land will not be covered by LFP. The rule also clarifies that crops 
planted specifically for the purpose of providing grazing for covered 
livestock include forage sorghum or small grains may be covered, but 
corn stalks or grain sorghum stalks will not be covered. This rule also 
adds the provision that grazing losses that occur on irrigated land are 
not covered under LFP unless the irrigated land has not been irrigated 
in the year for which benefits are being requested due to lack of water 
that is beyond the participant's control.
    A livestock producer may receive LFP payments for a qualifying fire 
if the grazing loss occurs on rangeland managed by a Federal agency and 
the eligible livestock producer is prohibited from grazing the normal 
permitted livestock on the rangeland due to fire. Under this rule, LFP 
will continue to cover up to 180 days of grazing losses due to fire.
    Any owner, cash or share lessee, or contract grower of livestock 
that rents or leases pastureland or grazing land owned by another 
person on a rate-of-gain basis is not considered an eligible livestock 
producer.
    As under the previous LFP provisions, grazing losses that are not 
related to qualifying drought or fire, as determined by the Secretary, 
are not eligible for LFP, but may be eligible for ELAP, which covers 
other adverse weather conditions. An eligible livestock producer may 
not receive LFP payments for grazing losses due to drought that occur 
on land used for haying or grazing under the Conservation Reserve 
Program (CRP).

Applying for LFP Payment

    For losses occurring on or after October 1, 2011, and on or before 
December 31, 2014, the producer must provide a completed application 
for payment and supporting documentation to the administrative FSA 
county office by January 30, 2015.
    For the 2015 calendar year and subsequent years, the producer must 
provide a completed application for payment and required supporting 
documentation to the administrative FSA county office (physical 
location county) within 30 calendar days after the end of the calendar 
year in which the grazing loss occurred.

LFP Payment Calculation

    Producers are eligible for up to 5 monthly payments for grazing 
losses due to a qualifying drought, depending on the intensity and 
duration of the drought, as described earlier. This rule does not 
change the basic payment calculations for LFP, although it does provide 
payments for more months, under certain scenarios, than under the 2008 
Farm Bill. Each monthly payment for eligible grazing losses under LFP 
due to drought may not exceed 60 percent of the lesser of:
     The monthly feed cost for all covered livestock owned or 
leased by the eligible livestock producer as calculated in Sec.  
1416.207(h) or
     The monthly feed cost calculated using the normal carrying 
capacity of the eligible grazing land of the eligible livestock 
producer as determined in Sec.  1416.207(l).
    In the case of livestock that were sold or otherwise disposed of 
due to qualifying drought in 1 or both of the 2 production years 
immediately preceding the current production year, the payment rate is 
80 percent of the monthly rate just described.
    Under this rule, producers will continue to be eligible for 
payments for grazing losses due to qualifying fire for up to 180 days 
per calendar year of such losses. Payments for eligible grazing losses 
due to qualifying fire under LFP may not exceed 50 percent of the 
monthly feed cost, determined as specified in Sec.  1416.207(h), for 
the total number of livestock covered by the Federal lease of the 
eligible livestock producer for grazing losses that occur for not more 
than 180 days per calendar year. Payment for fire losses is calculated 
on a daily basis.

Specific Provisions for LIP

    This rule moves the existing regulations for LIP in 7 CFR part 760, 
subpart E, to 7 CFR part 1416, subpart D. The 2014 Farm Bill authorizes 
the LIP, with little changes from the previous LIP under the 2008 Farm 
Bill. The only substantive change required by the 2014 Farm Bill is the 
addition of eligible losses due to Federally re-introduced predators or 
species protected by Federal law, including avian predators and wolves. 
This rule also makes discretionary changes to the documentation 
requirements, particularly for losses in 2012 and 2013, and for calf 
and lamb open range livestock operation losses.
    Unchanged from the 2008 Farm Bill, the 2014 Farm Bill provisions 
require LIP payments to be made at a rate of 75 percent of the market 
value of the livestock on the day before the date of the death of the 
livestock. Payments are to be made to eligible producers on farms that 
have incurred livestock death

[[Page 21091]]

losses for the calendar year in excess of the normal mortality.
    The eligible livestock death losses must have occurred on or after 
October 1, 2011, during the calendar year for which benefits are 
requested. Eligible losses must be due to adverse weather or other 
conditions, as determined by the Secretary, including hurricanes, 
floods, blizzards, disease exacerbated by adverse weather, wildfires, 
extreme heat, and extreme cold, or due to attacks by animals 
reintroduced into the wild by the Federal Government or protected by 
Federal law, including wolves and avian predators. The provisions 
described in this paragraph are mandatory provisions over which FSA has 
little or no discretion in how to implement.

Eligibility Requirements for LIP

    Under the 2014 Farm Bill, LIP continues to cover losses due to 
livestock deaths in excess of normal mortality due to hurricanes, 
floods, blizzards, disease exacerbated by adverse weather, wildfires, 
extreme heat, and extreme cold. It also expands eligibility under LIP 
to cover losses from livestock deaths in excess of normal mortality due 
to attacks by animals reintroduced into the wild by the Federal 
Government or protected by Federal law, including wolves and avian 
predators. As under the 2008 Farm Bill, there is not a State or 
National ``trigger'' such as an emergency declaration that provides 
automatic eligibility for all producers in a particular State, county, 
or region. For LIP purposes, adverse weather does not include drought 
(although drought can exacerbate disease such as anthrax, which is 
eligible under LIP). FSA has the authority to determine eligibility of 
livestock losses caused by other adverse weather or other conditions, 
including disease caused by such weather and whether the disease is 
exacerbated by the adverse weather. This rule clarifies that if a 
disease is determined by FSA not to be exacerbated by adverse weather 
events or is preventable by implementing and following acceptable 
management practices, such as vaccination, the disease is not eligible 
for payment under LIP. FSA also has the authority to determine 
eligibility of livestock losses caused by animals other than wolves and 
avian predators that have been reintroduced into the wild by the 
Federal Government or protected by Federal law.
    LIP payments and eligibilities will be calculated on the type of 
eligible livestock and the actual losses and the calculations will be 
made by FSA-approved categories. As under the previous LIP provisions, 
benefits are only available for the owners of livestock or for 
``contract growers''--persons who produce livestock owned by someone 
else, but have a risk in the livestock (such as a farmer who raises 
chickens owned by a company that produces chicken products, but does 
not receive payment for livestock that die before the livestock is 
mature and returned to the owner). This rule does not change eligible 
livestock for payment to livestock owners, which includes beef cattle, 
dairy cattle, buffalo, beefalo, equine, sheep, goats, deer, swine, 
poultry, reindeer, elk, emus, alpacas, and llamas. It also does not 
change the eligible livestock for payment to contract growers, which 
include only swine and poultry because those are the only known 
examples of that kind of production arrangement. To be eligible 
livestock for LIP, as of the day they died the livestock must have been 
both of the following:
     Owned by an eligible owner or in the possession of an 
eligible contract grower, and
     Maintained for commercial use as part of a farming 
operation of the participant on the day they died.
    As under the previous LIP provisions, eligibility for payments to 
poultry and swine contract growers will be limited based on the amount 
of their contractual risk and other payments received. Payments will 
not exceed their contractual risk, as determined by FSA. Any 
compensation received by the contract grower from the contractor for 
loss of income for the dead livestock will be deducted from the 
contract grower's LIP payment. When a contract grower is in possession 
of the livestock at the time of death, only the contract grower will be 
eligible for the payment; the owner is not eligible. Animals kept for 
recreational purposes, such as hunting animals, animals used for roping 
practice, pets, and show animals, continue to be ineligible for LIP 
under this rule.
    Determination of LIP payment eligibility will be based on actual 
losses in excess of normal mortality for the calendar year for the 
relevant animal type and approved category by an individual producer or 
contract grower.

Applying for LIP Payment

    This rule does not change the application process for LIP. 
Producers must file both a notice of loss and an application. A notice 
of loss will not automatically qualify a producer for payment. Because 
the eligible losses are only those above normal mortality and that is 
calculated on a yearly basis, a loss occurring in, for example, July, 
will not necessarily generate a claim depending on how great the losses 
are, natural or otherwise, for the rest of the year. It could be, 
however, that a loss in July is so great that the producer is already 
beyond normal mortality for the year, in which case the producer could 
already be eligible for payment.
    For losses that occurred on or after October 1, 2011, and before 
January 1, 2015, producers must provide a notice of loss and 
application for payment to FSA no later than January 30, 2015. For 2015 
and subsequent calendar year losses, producers must provide a notice of 
loss to FSA by the earlier of 30 calendar days of when the loss of 
livestock is apparent to the participant, or 30 calendar days after the 
end of the calendar year in which the loss of livestock occurred. Other 
documentation is required for a complete application for payment, as 
described in this rule. For 2015 and subsequent calendar year losses, 
the completed application must be submitted to the FSA county office no 
later than 30 calendar days after the end of the calendar year in which 
the loss of livestock occurred. Producers that suffer multiple 
livestock losses during the calendar year may file multiple notices of 
loss and multiple applications for payment.
    This rule provides less restrictive loss documentation requirements 
for livestock death losses that occurred from October 1, 2011, to 
before January 1, 2015, because producers were not provided with 
advanced notice of program requirements. Additionally, the previous LIP 
authorized by the 2008 Farm Bill had expired and there was no notice of 
any future LIP to cover losses beyond the scope of the 2008 Farm Bill. 
Accordingly, livestock producers may provide proof of death and 
inventories that may not be verifiable but that are reliable and 
reasonable documentation according to the provisions in this rule.
    This rule provides new provisions to address eligibility of losses 
for calf and lamb open range livestock operations. Specific provisions 
for these operations are necessary to determine proof of death and 
inventory because the calf and lamb open range livestock operations 
have had difficulties in meeting the previous proof of death and 
inventory requirements given the dispersed nature of their production 
practices. Calf and lamb open range livestock operations now may 
provide proof of inventory and loss by using the livestock beginning 
inventory history for reporting losses. If inventory records are not 
available, a default national birthing rate of 90 percent for calves 
and 160 percent for lambs will be used.

[[Page 21092]]

When beginning inventory records are not available, as specified in 
this rule in addition to submitting other required records, verifiable 
beginning inventory records for ewes or cow will be submitted along 
with verifiable or reliable ending inventory records for lambs or 
calves. With that information, FSA will calculate the beginning 
inventory for that year. The Deputy Administrator has the authority to 
make adjustments as necessary. If records are available for less than 3 
years, the calculation for inventory will include a reduction for the 
years of missing data. These provisions are discretionary.

LIP Payment Calculations

    This rule does not change the LIP payment calculation. As specified 
in the 2014 Farm Bill, the payment for livestock owners will continue 
to be calculated based on 75 percent of the average fair market value 
of the applicable livestock on the day before the date of death of the 
livestock, as determined by FSA. When determining the market value of 
applicable livestock, FSA will establish market values for each type 
and category of livestock using data from credible livestock markets. 
Credible livestock markets will include sale barns and local sales as 
well as sales at terminal market centers or slaughtering facilities. 
For contract growers, the payment will continue to be based on 75 
percent of the average income loss sustained by the grower with respect 
to the dead livestock.
    FSA, through the State FSA offices, will obtain recommendations 
from applicable State livestock organizations, State Cooperative 
Extension Service, and other knowledgeable and credible sources, to 
establish the normal mortality rate for each type of livestock on a 
State-by-State basis when changes are warranted. As under the previous 
provisions, payments are only available for losses over normal 
mortality over the course of the year and those rates will be 
established on a State-by-State basis.

Specific Provisions for TAP

    This rule moves the existing regulations for TAP in 7 CFR part 760, 
subpart F, to 7 CFR part 1416, subpart E. The 2014 Farm Bill authorizes 
the Secretary to assist eligible orchardists and nursery tree growers 
that have incurred tree, bush, or vine mortality losses in excess of 15 
percent, adjusted for normal mortality, due to natural disaster, 
including plant disease, insect infestation, drought, fire, freeze, 
flood, earthquake, lightning, or other occurrence, as determined by the 
Secretary. TAP is a cost-reimbursement program, which means that 
payments are calculated based on estimated actual costs to replace or 
rehabilitate lost or damaged trees, bushes, or vines. The replacement 
and rehabilitation activities must take place within 12 months after 
the application is approved. Payment is not made until the activities 
are completed. TAP was previously authorized under the 2008 Farm Bill, 
and the program will continue as in prior years, with the mandatory and 
discretionary changes specified in this rule. The main mandatory change 
is that the reimbursement rate is reduced, from 70 percent to 65 
percent, for replanting costs. The discretionary provisions include the 
deadline for application for payment for retroactive losses, and that 
the duration of a plant disease period is determined by the Deputy 
Administrator and could be longer than the previous limit of one year.

Eligibility Requirements

    Eligible losses and eligible producers under TAP will not change 
from the provisions implemented under the 2008 Farm Bill, except for 
the date (on or after October 1, 2011) that eligible producers must 
have suffered eligible losses as a result of a natural disaster, which 
includes plant disease, insect infestation, drought, fire, freeze, 
flood, earthquake, lightning, or other occurrence, as determined by the 
Secretary. Commercially grown trees, vines, and bushes are eligible. 
The 2014 Farm Bill does not change the eligibility ``trigger'' of 
mortality losses in excess of 15 percent, adjusted for normal damage 
and mortality. While mortality for other natural disasters is assessed 
on a calendar year basis, mortality related to plant disease may be 
examined over longer periods if determined appropriate considering the 
typically longer time-scale for these infections. For example, a plant 
disease may infect an orchard of 1,000 trees where the normal mortality 
is 2% per year or 20 trees. While the disease causes increased 
mortality, best management practices can keep infected trees productive 
and keep the annual mortality to 8% or 80 trees. After three years of 
infection, the orchard would exceed the 15% trigger and become eligible 
for TAP assistance for the remainder of the infection (the orchard 
would have lost 240 trees with 60 due to normal mortality and 180 due 
to disease). Considering mortality over the length of the infection for 
purposes of the 15% trigger also encourages proper management to 
control the impacts of a disease. A 15% annual trigger for plant 
disease could encourage poor management to try to reach the threshold, 
although TAP continues to exclude losses that could be prevented 
through reasonable and available measures. Specific policies and 
procedures will be established regarding mortality and reasonable 
management, as appropriate, depending on the characteristics of the 
disease in question. For example, citrus canker greening might result 
in such losses over a period of several years. Normal mortality losses 
are those associated with the normal upkeep of the orchard or nursery 
in the region. Damage losses are not eligible for payment unless the 15 
percent normal mortality trigger is met. Losses due to causes other 
than natural disaster will not be eligible for payment.

Applying for TAP Payment

    To obtain a TAP payment for losses that occurred on or after 
October 1, 2011, through the end of the 2014 calendar year, a producer 
must provide an application for payment and supporting documentation to 
FSA by the later of January 31, 2015, or 90 calendar days after the 
disaster event or date when the loss is apparent to the producer. 
During the 2015 calendar year or later, a producer must provide an 
application for payment and supporting documentation to FSA within 90 
calendar days of the disaster event or date upon which the loss of 
trees, bushes, or vines is apparent. Producers that suffer multiple 
losses during the year may file multiple applications for payment.

TAP Payment Calculation

    This rule changes the calculation of TAP payments by reducing the 
reimbursement amount for the cost of replanting trees lost due to a 
natural disaster from 70 percent to 65 percent, in excess of 15 percent 
mortality or, at the option of the Secretary, sufficient seedlings to 
reestablish a stand. The 65 percent rate is required by the 2014 Farm 
Bill and FSA has no discretion. The rate for rehabilitation of eligible 
trees, bushes, or vines, which is 50 percent of the cost of pruning, 
removal, and other costs incurred for salvaging the existing plants, or 
in the case of plant mortality, to prepare land for replanting, subject 
to the maximum allowable FSA rate remains the same as it was under the 
previous TAP. The 50 percent is only payable for losses that reflect a 
greater than 15 percent loss taking into account normal mortality and 
damage. A producer can be eligible for payment for both replanting and 
rehabilitation costs.
    As under the previous provisions, the TAP payment will be 
calculated based on the actual costs of the approved

[[Page 21093]]

practices, or the rates established by the Deputy Administrator, 
whichever is lower. Calculations will be made using FSA-approved 
categories of plants and practices. Losses must be verified by a field 
visit and approved practices must be completed before payment will be 
made. This rule does not change the requirements regarding 
documentation to show that practices are complete, such as receipts for 
labor costs, equipment rental, and purchases of seedlings or cuttings. 
Participants may not receive TAP payments on more than 500 acres of 
eligible trees or tree seedlings per program year. This is a change 
from the previous regulation.

Structure and Organization of the Disaster Assistance Regulations

    The regulations in 7 CFR part 760 for general provisions, ELAP, 
LFP, LIP, and TAP will be revised in a subsequent rulemaking to remove 
obsolete provisions that apply to programs that were not reauthorized. 
Regulations for the new programs will be established in 7 CFR part 
1416, as described in the table below:

----------------------------------------------------------------------------------------------------------------
               Program                    Current Part and Subpart               New Part and Subpart
----------------------------------------------------------------------------------------------------------------
General Provisions...................  Part 760, Subpart B (all       Part 1416, Subpart A.
                                        supplemental disaster
                                        assistance programs
                                        authorized by the 2008 Farm
                                        Bill, including SURE).
ELAP.................................  Part 760, Subpart C (previous  Part 1416, Subpart B.
                                        ELAP under 2008 Farm Bill).
LFP..................................  Part 760, Subpart D (previous  Part 1416, Subpart C.
                                        LFP under 2008 Farm Bill).
LIP..................................  Part 760, Subpart E (previous  Part 1416, Subpart D.
                                        LIP under 2008 Farm Bill).
TAP..................................  Part 760, Subpart F (previous  Part 1416, Subpart E.
                                        TAP under 2008 Farm Bill).
----------------------------------------------------------------------------------------------------------------

Overview--Payment Limit and AGI Changes

    This final rule implements payment limit and AGI provisions in 
sections 1119, 1501, 1603, 1605, 2005, 2206, and 12305 of the 2014 Farm 
Bill concerning payment eligibility requirements and payment limits for 
participants in CCC-funded programs. The 2014 Farm Bill provides 
revised annual payment limitation amounts per person or legal entity, 
and revised eligibility requirements based on the average annual income 
amount of the program participant. Overall, the 2014 Farm Bill 
simplifies the payment limit and payment eligibility requirements as 
compared to the requirements specified in the 2008 Farm Bill. This 
final rule amends 7 CFR Part 1400 to implement these changes. The 
changes in this rule are required by the 2014 Farm Bill; FSA has no 
discretion in setting payment limits or income-related payment 
eligibility requirements.

Payment Limits

    This rule amends the payment limits specified in 7 CFR 1400.1 
``Applicability'' as required by the 2014 Farm Bill. This rule removes 
payment limits for programs that were not re-authorized by the 2014 
Farm Bill. Neither this rule nor the 2014 Farm Bill change the method 
by which payments are attributed to persons and legal entities.
    Section 1501(f) of the 2014 Farm Bill specifies the payment limits 
that apply to the disaster programs. LFP, LIP, and ELAP payments issued 
under the 2014 Farm Bill are collectively limited to $125,000 per 
person or legal entity for each year. This limit applies to payments in 
2014 for fiscal year 2012 and 2013 losses. TAP has a separate $125,000 
payment limit. These limits are slightly higher than the limits 
specified in the 2008 Farm Bill. In the 2008 Farm Bill, ELAP, LFP, LIP, 
and SURE were collectively limited to $100,000 per person or legal 
entity, and TAP had a separate $100,000 limit.
    The total amount of payments received, directly or indirectly, by a 
person or legal entity for any crop year for annual payments and 
benefits received under the new Agriculture Risk Coverage (ARC) and 
Price Loss Coverage (PLC) programs, and loan deficiency payments (LDP) 
and marketing loan gains (MLG) for commodities except peanuts, is 
$125,000, as specified in Section 1603(b) of the 2014 Farm Bill. There 
is a separate limit of $125,000 per year for payments under ARC, PLC, 
LDPs and MLGs for peanuts. This rule removes references to payment 
limits for the Direct and Countercyclical Program (DCP) and the Average 
Crop Revenue Election Program (ACRE) because those programs were not 
reauthorized by the 2014 Farm Bill. There was no payment limit for LDP, 
Marketing Assistance Loans, or MLG in the 2008 Farm Bill.
    As specified in Section 1119 of the 2014 Farm Bill, the payments 
received under the new Transition Assistance for Producers of Upland 
Cotton program are limited to $40,000 per person or legal entity for 
each of the years 2014 and 2015. That program is only authorized for 
2014 and 2015.
    As specified in section 12305 of the 2014 Farm Bill, NAP payments 
have an annual limitation of $125,000 per person or legal entity. The 
2008 Farm Bill had a limit of $100,000 for NAP benefits.
    Section 2005 of the 2014 Farm Bill does not change the payment 
limit for CRP of $50,000. For contracts signed after October 1, 2008, 
all CRP payments are also limited by the direct attribution provisions 
currently in 7 CFR 1400, which are not changing. CRP contracts that 
were in place before October 1, 2008, are subject to the payment 
limitation rules that were in effect on the date of contract approval. 
Prior to the 2008 Farm Bill, the CRP program had the same payment limit 
but different provisions for payment attribution to entities.
    Section 2206 of the 2014 Farm Bill changes the payment limit for 
the Environmental Quality Incentives Program (EQIP). A person or legal 
entity may not receive, directly or indirectly, in excess of $450,000 
in EQIP payments for all EQIP contracts entered into under the 2014 
Farm Bill period of fiscal years 2014 through 2018. The EQIP payment 
limitation under the 2008 Farm Bill was $300,000, unless the Chief, 
NRCS, waived the payment limitation up to $450,000 for a project of 
special environmental significance. The 2014 Farm Bill did not make any 
changes to the payment limitations for the Agricultural Management 
Assistance (AMA) program or the Conservation Stewardship Program (CSP). 
There is no payment limitation under the Agricultural Conservation 
Easement Program (ACEP).
    This rule removes references to payment limits for conservation 
programs that were not reauthorized by the 2014 Farm Bill. Except for 
CRP, there are no payment limits for conservation programs; rather the 
program payments may be limited by available funding for specific 
programs. That is not a change from the 2008 Farm Bill, which also had 
no payment limits for conservation programs other than CRP. The 2014 
Farm Bill combines various conservation programs and does not 
reauthorize others. This rule revises

[[Page 21094]]

7 CFR part 1400 to reflect the new names of these programs, and to 
remove the ones that are not reauthorized.
    SURE, as authorized by the 2008 Farm Bill, was not repealed by the 
2014 Farm Bill and therefore remains in effect for losses on or before 
September 30, 2011. The AGI and payment limit regulations in effect 
when those losses occurred apply. Specifically, the average AGI limits 
of $500,000 nonfarm AGI and $750,000 farm AGI apply, and the $100,000 
per person or legal entity payment limitation. These limits are 
separate from the AGI requirements and payment limitation amount 
applicable to the LIP, LFP, TAP, and ELAP benefits authorized under the 
2014 Farm Bill.

Income Limits for Payment Eligibility

    The 2014 Farm Bill specifies that persons and legal entities whose 
income is above a certain threshold are not eligible for most CCC and 
FSA program benefits. Section 1605 of the 2014 Farm Bill provides a new 
average AGI limitation applicable to all commodity, price support, 
disaster assistance, and conservation programs, including but not 
limited to FSA and CCC programs in titles I, II, and XII of the 2014 
Farm Bill. These requirements also apply to the Natural Resource 
Conservation Service (NRCS) programs funded by CCC, including AMA, CSP, 
EQIP, and ACEP. This rule amends Sec.  1400.3, ``Definitions,'' Sec.  
1400.500, ``Applicability,'' and Sec.  1400.501, ``Determination of 
Average Adjusted Gross Income,'' to implement the 2014 Farm Bill 
changes to AGI limitations.
    Effective for the 2014 and subsequent crop, program, and fiscal 
years, all commodity, price support, and disaster assistance program 
payments and benefits are subject to an average AGI limitation of 
$900,000 per person or legal entity. This limit also applies to 
payments authorized by the 2014 Farm Bill for retroactive benefits for 
the 2012 or 2013 crop, program, or fiscal year. Effective for the 
fiscal year 2015 and subsequent years, the same income limitation is 
applicable to all conservation program payments and benefits. (For 
conservation programs that were reauthorized by the American Taxpayer 
Relief Act of 2012, Pub. L. 112-240, the 2008 Farm Bill AGI limits 
applied for 2013 payments.) How AGI is defined and calculated has not 
changed, in either the 2014 Farm Bill or in this rule.
    The single average AGI limitation of $900,000 replaces the multiple 
AGI limitations specified in the 2008 Farm Bill and limitations based 
on farm and nonfarm income amounts. Therefore, this rule removes all 
the references to farm and nonfarm income requirements, leaving only 
the general AGI requirements, which are only changed in the amount. The 
limits specified in the 2008 Farm Bill were $500,000 in nonfarm income 
and $750,000 in farm income for commodity programs, with a $1 million 
nonfarm income limit for conservation program eligibility. The 2008 
Farm Bill allowed a waiver to the AGI limit for conservation programs 
if at least 66.66 percent of the participant's income was from farming, 
and also allowed the Secretary to waive the AGI limit on a case by case 
basis for other reasons to protect environmentally sensitive land of 
special significance. The AGI waivers for conservation practices are 
not reauthorized in the 2014 Farm Bill. However, Section 2401 of the 
2014 Farm Bill authorizes the Secretary to waive the AGI limit for 
payments under the Regional Conservation Partnership Program (RCPP) for 
participating producers if the Secretary determines that the waiver is 
necessary to fulfill the objectives of the program.
    The 2014 Farm Bill combines various conservation programs and does 
not reauthorize others. This rule is revised to reflect the new names 
of these programs, and to remove the ones that are not reauthorized. 
The average AGI limit of $900,000 applies to all conservation programs, 
effective fiscal year 2015. However, the average AGI limit applies to 
AMA in FY 2014. As noted above, there is no authorization for AGI 
waivers in the 2014 Farm Bill except for RCPP payments and therefore 
this rule removes that provision from 7 CFR 1400. Waivers of the AGI 
limit for RCPP will be addressed in the regulations for the covered 
programs under RCPP.
    This rule makes two minor editorial changes in 1400.502, 
``Compliance and Enforcement,'' to clarify that failure to comply with 
the AGI requirements of this part will result in ineligibility.

Other Eligibility Requirements in Part 1400 Unchanged

    The 2014 Farm Bill did not change other payment eligibility 
requirements that are specified in 7 CFR part 1400. For example, the 
existing eligibility restrictions on foreign entities and state 
governments did not change. Payment limitation by direct attribution to 
a person or legal entity did not change from what was specified in the 
2008 Farm Bill and is currently specified in 7 CFR part 1400.

Notice and Comment

    In general, the Administrative Procedure Act (5 U.S.C. 553) 
requires that a notice of proposed rulemaking be published in the 
Federal Register and interested persons be given an opportunity to 
participate in the rulemaking through submission of written data, 
views, or arguments with or without opportunity for oral presentation, 
except when the rule involves a matter relating to public property, 
loans, grants, benefits, or contracts. The regulations to implement the 
provisions of Title I and the administration of Title I of the 2014 
Farm Bill are exempt from the notice and comment provisions of 5 U.S.C. 
553 and the Paperwork Reduction Act (44 U.S.C. chapter 35), as 
specified in section 1601(c)(2) of the 2014 Farm Bill.

Effective Date

    The Administrative Procedure Act (5 U.S.C. 553) provides generally 
that before rules are issued by Government agencies, the rule must be 
published in the Federal Register, and the required publication of a 
substantive rule is to be not less than 30 days before its effective 
date. One of the exceptions is when the agency finds good cause for not 
delaying the effective date. In making this final rule exempt from 
notice and comment through section 1601(c)(2) of the 2008 Farm Bill, 
using the administrative procedure provisions in 5 U.S.C. 553, FSA 
finds that there is good cause for making this rule effective less than 
30 days after publication in the Federal Register. This rule allows FSA 
to provide benefits to producers who losses caused by adverse weather, 
natural disasters, or other conditions. Therefore, to begin providing 
benefits to producers as soon as possible, this final rule is effective 
when published in the Federal Register.

Executive Orders 12866 and 13563

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility.
    The Office of Management and Budget (OMB) designated this rule as 
economically significant under Executive Order 12866, ``Regulatory 
Planning and Review,'' and therefore, OMB has reviewed this rule. This

[[Page 21095]]

regulatory action is being taken to implement a major budgetary program 
required by the 2014 Farm Bill. Consistent with OMB guidance, this type 
of action is considered a budgetary transfer representing a payment 
from taxpayers to program beneficiaries unrelated to the provision of 
any goods or services in exchange for the payment. As such, there are 
no economic gains, because the benefits and payments to those who 
receive such a transfer are matched by the costs borne by taxpayers to 
offset disaster losses by program beneficiaries. The estimated transfer 
payments for disaster assistance provided by this rule are summarized 
below. The full cost benefit analysis is available on regulations.gov.

Cost Benefit Analysis Summary

    The 2014 Farm Bill authorizes four permanent livestock disaster 
assistance programs: LIP, LFP, ELAP, and TAP. The permanent disaster 
assistance programs provide a permanent means of addressing the same 
needs as programs provided to producers on an ad hoc basis in the past. 
The estimated annual payments of LIP, LFP, and ELAP and TAP is 
approximately $502 million and provides targeted payments to livestock 
and honey bee producers who suffer losses from a disaster.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute, unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. This rule is not subject to the Regulatory 
Flexibility Act because CCC and FSA are not required by any law to 
publish a proposed rule for public comments on this rule.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
the FSA regulations for compliance with NEPA (7 CFR part 799). FSA has 
determined that the provisions identified in this final rule are 
administrative in nature, intended to clarify the mandatory 
requirements of the programs, as defined in the 2014 Farm Bill, and do 
not constitute a major Federal action that would significantly affect 
the quality of the human environment, individually or cumulatively. 
While OMB has designated this rule as ``economically significant'' 
under Executive Order 12866, ``. . . economic or social effects are not 
intended by themselves to require preparation of an environmental 
impact statement'' (40 CFR 1508.14), when not interrelated to natural 
or physical environmental effects. Therefore, as this rule presents 
administrative clarifications only, FSA will not prepare an 
environmental assessment or environmental impact statement for this 
regulatory action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials. The 
objectives of the Executive Order are to foster an intergovernmental 
partnership and a strengthened Federalism, by relying on State and 
local processes for State and local government coordination and review 
of proposed Federal Financial assistance and direct Federal 
development. For reasons specified in the Notice to 7 CFR part 3015, 
subpart V (48 FR 29115, June 24, 1983), the programs and activities 
within this rule are excluded from the scope of Executive Order 12372 
which requires intergovernmental consultation with State and local 
officials.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. As required by the 2014 Farm Bill, the 
programs in this rule are retroactive to October 1, 2011. Before any 
judicial action may be brought regarding the provisions of this rule, 
the administrative appeal provisions of 7 CFR parts 11 and 780 must be 
exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal government and the States, or on the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor does this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed for compliance with Executive Order 
13175, ``Consultation and Coordination with Indian Tribal 
Governments.'' This Executive Order imposes requirements on the 
development of regulatory policies that have Tribal implications or 
preempt Tribal laws. The policies contained in this rule do not preempt 
Tribal law.
    The policies contained in this rule do not, to our knowledge, 
impose substantial unreimbursed direct compliance costs on Indian 
Tribal governments, have Tribal implications, or preempt Tribal law. 
USDA continues to consult with Tribal officials to have a meaningful 
consultation and collaboration on the development and strengthening of 
USDA regulations. USDA will respond in a timely and meaningful manner 
to all Tribal government requests for consultation concerning this rule 
and will provide additional venues, such as Webinars and 
teleconferences, to periodically host collaborative conversations with 
Tribal leaders and their representatives concerning ways to improve 
this rule in Indian country.

The Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State, local, and Tribal governments or the 
private sector. Agencies generally must prepare a written statement, 
including a cost benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or to the private sector. UMRA generally requires agencies 
to consider alternatives and adopt the more cost effective or least 
burdensome alternative that achieves the objectives of the rule. This 
rule contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)

    This rule has been determined to be Major under the Small Business 
Regulatory Enforcement Fairness Act of 1996, (Pub. L. 104-121) 
(SBREFA).

[[Page 21096]]

SBREFA normally requires that an agency delay the effective date of a 
major rule for 60 days from the date of publication to allow for 
Congressional review. Section 808 of SBREFA allows an agency to make a 
major regulation effective immediately if the agency finds there is 
good cause to do so. Section 1601(c)(3) of the 2014 Farm Bill provides 
that the authority in Section 808 of SBREFA will be used in 
implementing the changes required by Title I of the 2014 Farm Bill, 
such as for the changes being made by this rule. Consistent with 
section 1601(c)(3) of the 2014 Farm Bill, FSA therefore finds that it 
would be contrary to the public interest to delay implementation of 
this rule because it would significantly delay implementation of the 
program changes required by the 2014 Farm Bill by impeding the conduct 
of future signups without having these additional changes to the 
program regulations in place. Therefore, this rule is effective on the 
date of its publication in the Federal Register.

Federal Assistance Programs

    The titles and numbers of the Federal Domestic Assistance Programs 
found in the Catalog of Federal Domestic Assistance to which this rule 
applies are:

10.069--Conservation Reserve Program
10.088--Livestock Indemnity Program
10.089--Livestock Forage Disaster Program
10.091--Emergency Assistance for Livestock, Honeybees, and Farm-Raised 
Fish Program
10.092--Tree Assistance Program
10.912--Environmental Quality Incentives Program
10.917--Agricultural Management Assistance

Paperwork Reduction Act of 1995

    The regulations in this rule are exempt from the requirements of 
the Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in 
section 1601(c) of the 2014 Farm Bill, which provides that these 
regulations be promulgated and administered without regard to the 
Paperwork Reduction Act.

E-Government Act Compliance

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

List of Subjects

7 CFR Part 1400

    Agriculture, Loan programs--agriculture, Conservation, Price 
support programs.

7 CFR Part 1416

    Dairy products, Indemnity payments, Pesticide and pests, Reporting 
and recordkeeping requirements.

    For the reasons discussed above, CCC and FSA amends 7 CFR parts 
1400 and 1416 as follows:

PART 1400--PAYMENT LIMITATION AND PAYMENT ELIGIBILITY

0
1. The authority citation continues to read as follows:

    Authority:  7 U.S.C. 1308, 1308-1, 1308-2, 1308-3, 1308-3a, 
1308-4, and 1308-5.


0
2. The heading for part 1400 is revised to read as set forth above.

Subpart A--General Provisions

0
3. Revise Sec.  1400.1 to read as follows:


Sec.  1400.1  Applicability.

    (a) This part, except as otherwise noted, is applicable to all of 
the following programs and any other programs as specified in 
individual program regulations of this chapter:
    (1) The Agricultural Risk Coverage and Price Loss Coverage Programs 
and Transition Assistance for Producers of Upland Cotton, part 1412 of 
this chapter;
    (2) The Conservation Reserve Program (CRP), part 1410 of this 
chapter;
    (3) The Price Support programs in parts 1421 and 1434 of this 
chapter;
    (4) The Noninsured Crop Disaster Assistance Program (NAP), part 
1437 of this chapter;
    (5) The Livestock Forage Disaster Program (LFP), Livestock 
Indemnity Program (LIP), and the Emergency Assistance for Livestock, 
Honey Bees and Farm-raised Fish Program (ELAP), part 1416 of this 
chapter;
    (6) The Tree Assistance Program (TAP), part 1416 of this chapter; 
and
    (7) The Natural Resources Conservation Service (NRCS) conservation 
programs of this title including the Agricultural Management Assistance 
(AMA) program, Conservation Stewardship Program (CSP), Environmental 
Quality Incentives Program (EQIP), and Agricultural Conservation 
Easement Program (ACEP).
    (8) Subparts C and D of this part do not apply to the programs 
listed in paragraphs (a)(2) through (7) of this section.
    (b) This part will apply to the programs specified in:
    (1) Paragraphs (a)(1), (3), (4), (5), and (7) of this section on a 
crop year basis;
    (2) Paragraph (a)(2) of this section on a fiscal year basis;
    (3) Paragraph (a)(6) of this section on a calendar year basis; and
    (4) Paragraph (a)(7) of this section when funding is available.
    (c) This part will be used to determine the manner in which 
payments will be attributed to persons and legal entities for the 
payment limitations provided in this section and to other programs as 
specified in individual program regulations in this chapter.
    (d) Where more than one provision of this part may apply, the 
provision that is most restrictive on the program participant will be 
applied.
    (e) The payment limitations of this part are not applicable to:
    (1) Payments made under State conservation reserve enhancement 
program agreements approved by the Secretary, and
    (2) Payments made subject to this part if ownership interest in 
land or a commodity is transferred as the result of the death of a 
program participant and the new owner of the land or commodity has 
succeeded to the contract of the prior owner. If the successor is 
otherwise eligible, payments cannot exceed the amount the previous 
owner was entitled to receive at the time of death.
    (f) The following amounts are the limitations on payments per 
person or legal entity for the applicable period for each payment or 
benefit.

------------------------------------------------------------------------
                                                          Limitation per
                                                             person or
                                                           legal entity,
                   Payment or benefit                        per crop,
                                                            program, or
                                                            fiscal year
------------------------------------------------------------------------
(1) Price Loss Coverage, Agricultural Risk Coverage,            $125,000
 Loan Deficiency Program, and Marketing Loan Gain
 payments (other than Peanuts)..........................

[[Page 21097]]

 
(2) Price Loss Coverage, Agricultural Risk Coverage,             125,000
 Loan Deficiency Program, and Marketing Loan Gain
 payments for Peanuts...................................
(3) Transition Assistance for Producers of Upland Cotton          40,000
 \1\....................................................
(4) CRP annual rental payments \2\......................          50,000
(5) NAP payments........................................         125,000
(6) TAP.................................................         125,000
(7) LIP, LFP, and ELAP \3\..............................         125,000
(8) CSP \4\.............................................         200,000
(9) EQIP \5\............................................         450,000
(10) AMA program \6\....................................          50,000
------------------------------------------------------------------------
\1\ Transition Assistance for Producers of Upland Cotton is only
  available in the 2014 and 2015 program years.
\2\ CRP contracts approved prior to October 1, 2008 may exceed the
  limitation, subject to payment limitation rules in effect on the date
  of contract approval.
\3\ Total payments received through LIP, LFP, and ELAP may not exceed
  $125,000. A separate limitation applies to TAP payments. (NOTE: For
  SURE payments for losses on or before September 30, 2011, the payment
  limit regulations in effect when those losses occurred apply. The SURE
  limit is separate from the payment limitation amount applicable to the
  LIP, LFP, TAP, and ELAP benefits authorized under the 2014 Farm Bill.)
\4\ The $200,000 limit is the total limit under all CSP contracts
  entered into subsequent to enactment of the 2014 Farm Bill during
  fiscal years 2014 through 2018.
\5\ The $450,000 limit is the total limit under all EQIP contracts
  entered into subsequent to enactment of the 2014 Farm Bill during
  fiscal years 2014 through 2018.
\6\ The $50,000 limit is the total limit that a participant may receive
  under the AMA program in any fiscal year.


0
4. Amend Sec.  1400.3 as follows:
0
a. Remove the definitions for ``Average Adjusted Gross Farm Income'' 
and ``Average Adjusted Gross Nonfarm Income''; and
0
b. Revise the definition for ``Payment'' to read as follows:


Sec.  1400.3  Definitions.

* * * * *
    Payment means:
    (1) Payments made in accordance with part 1412 of this chapter or 
successor regulation of this chapter;
    (2) CRP annual rental payments made in accordance with part 1410 of 
this chapter or successor regulation of this chapter;
    (3) NAP payments made in accordance with part 1437 of this chapter 
or successor regulation of this chapter;
    (4) ELAP, LIP, LFP, and TAP payments made in accordance with part 
1416 of this chapter or successor regulations of this chapter:
    (5) Price support payments made in accordance with parts 1421 and 
1434 of this chapter; and
    (6) For other programs, any payments designated in individual 
program regulations in this chapter.
* * * * *

Subpart F--Average Adjusted Gross Income Limitation

0
5. Amend Sec.  1400.500 as follows:
0
a. Revise paragraphs (a) and (b);
0
b. Remove paragraph (c) through (e); and
0
c. Redesignate paragraphs (f) through (h) as paragraphs (c) through 
(e).
    The revisions read as follows:


Sec.  1400.500  Applicability.

    (a) A person or legal entity, other than a joint venture or general 
partnership, will not be eligible to receive, directly or indirectly, 
certain program payments or benefits described in Sec.  1400.1 if the 
average adjusted gross income of the person or legal entity exceeds 
$900,000 for the 3 taxable years preceding the most immediately 
preceding complete taxable year, as determined by the Deputy 
Administrator.
    (b) Determinations made under this subpart for conservation 
programs are:
    (1) Applicable starting with the 2015 fiscal year, except for AMA 
which is applicable with the 2014 fiscal year;
    (2) Based on the year for which the conservation program contract 
or agreement is approved; and
    (3) Applicable for the entire term of the subject agreement or 
contract.
* * * * *

0
6. Amend Sec.  1400.501 as follows:
0
a. Revise paragraph (a) introductory text;
0
b. Remove paragraphs (a)(1) through (12), (b), and (c) introductory 
text;
0
b. Redesignate paragraphs (c)(1) through (6) as (a)(1) through (6); and
0
d. Redesignate paragraph (d) as paragraph (b).
    The revision reads as follows:


Sec.  1400.501  Determination of average adjusted gross income.

    (a) Except as otherwise provided in this subpart, average adjusted 
gross income means:
* * * * *


Sec.  1400.502  [Amended]

0
7. Amend Sec.  1400.502 as follows:
0
a. In paragraph (a)(3), at the end, remove the word ``or''; and
0
b. In paragraph (c), remove the words ``provide necessary and accurate 
information to verify compliance, or failure to''.

0
8. Revise part 1416 to read as follows:

PART 1416--EMERGENCY AGRICULTURAL DISASTER ASSISTANCE PROGRAMS

Subpart A--General Provisions for Supplemental Agricultural Disaster 
Assistance Programs
Sec.
1416.1 Applicability.
1416.2 Administration of ELAP, LFP, LIP, and TAP.
1416.3 Eligible producer.
1416.5 Equitable relief.
1416.6 Payment limitation.
1416.7 Misrepresentation.
1416.8 Appeals.
1416.9 Offsets, assignments, and debt settlement.
1416.10 Records and inspections.
1416.11 Refunds; joint and several liability.
1416.12 Minors.
1416.13 Deceased individuals or dissolved entities.
1416.14 Miscellaneous.
Subpart B--Emergency Assistance for Livestock, Honeybees, and Farm-
Raised Fish Program
1416.101 Applicability.
1416.102 Definitions.
1416.103 Eligible losses, adverse weather, and other loss 
conditions.
1416.104 Eligible livestock, honeybees, and farm-raised fish.

[[Page 21098]]

1416.105 Eligible producers, owners, and contract growers.
1416.106 Notice of loss and application process.
1416.107 Notice of loss and application period.
1416.108 Availability of funds.
1416.109 National Payment Rate.
1416.110 Livestock payment calculations.
1416.111 Honeybee payment calculations.
1416.112 Farm-raised fish payment calculations.
Subpart C--Livestock Forage Disaster Program
1416.201 Applicability.
1416.202 Definitions.
1416.203 Eligible livestock producer.
1416.204 Covered livestock.
1416.205 Eligible grazing losses.
1416.206 Application for payment.
1416.207 Payment calculation.
Subpart D--Livestock Indemnity Program
1416.301 Applicability.
1416.302 Definitions.
1416.303 Eligible owners and contract growers.
1416.304 Eligible livestock.
1416.305 Application process.
1416.306 Payment calculation.
Subpart E--Tree Assistance Program
1416.400 Applicability.
1416.401 Administration.
1416.402 Definitions.
1416.403 Eligible losses.
1416.404 Eligible orchardists and nursery tree growers.
1416.405 Application.
1416.406 Payment Calculation.
1416.407 Obligations of a Participant.

    Authority: Title III, Pub. L. 109-234, 120 Stat. 474; 16 U.S.C. 
3801, note.

Subpart A--General Provisions for Supplemental Agricultural 
Disaster Assistance Programs


Sec.  1416.1  Applicability.

    (a) This subpart establishes general conditions for this subpart 
and subparts B through E of this part and applies only to those 
subparts. Subparts B through E cover the following programs authorized 
by the Agricultural Act of 2014 (Pub. L. 113-79, also referred to as 
the 2014 Farm Bill):
    (1) Emergency Assistance for Livestock, Honeybees, and Farm-Raised 
Fish Program (ELAP);
    (2) Livestock Forage Disaster Program (LFP);
    (3) Livestock Indemnity Payments Program (LIP); and
    (4) Tree Assistance Program (TAP).
    (b) To be eligible for payments under these programs, participants 
must comply with all provisions under this subpart and the relevant 
particular subpart for that program. All other provisions of law also 
apply.


Sec.  1416.2  Administration of ELAP, LFP, LIP, and TAP.

    (a) The programs in subparts B through E of this part will be 
administered under the general supervision and direction of the 
Administrator, Farm Service Agency (FSA) (who also serves as the 
Executive Vice-President, CCC), and the Deputy Administrator for Farm 
Programs, FSA (referred to as the ``Deputy Administrator'' in this 
part).
    (b) FSA representatives do not have authority to modify or waive 
any of the provisions of the regulations of this part as amended or 
supplemented, except as specified in paragraph (e) of this section.
    (c) The State FSA committee will take any action required by the 
regulations of this part that the county FSA committee has not taken. 
The State FSA committee will also:
    (1) Correct, or require a county FSA committee to correct, any 
action taken by such county FSA committee that is not in accordance 
with the regulations of this part or
    (2) Require a county FSA committee to withhold taking any action 
that is not in accordance with this part.
    (d) No provision or delegation to a State or county FSA committee 
will preclude the FSA Administrator, the Deputy Administrator, or a 
designee or other such person, from determining any question arising 
under the programs of this part, or from reversing or modifying any 
determination made by a State or county FSA committee.
    (e) The Deputy Administrator may authorize State and county FSA 
committees to waive or modify non-statutory deadlines, or other program 
requirements of this part in cases where lateness or failure to meet 
such requirements does not adversely affect operation of the programs 
in this part. Participants have no right to an exception under this 
provision. The Deputy Administrator's refusal to consider cases or 
circumstances or decision not to exercise this discretionary authority 
under this provision will not be considered an adverse decision and is 
not appealable.


Sec.  1416.3  Eligible producer.

    (a) In general, the term ``eligible producer'' means, in addition 
to other requirements as may apply, an individual or entity described 
in paragraph (b) of this section that, as determined by the Secretary, 
assumes the production and market risks associated with the 
agricultural production of crops or livestock on a farm either as the 
owner of the farm, when there is no contract grower, or a contract 
grower of the livestock when there is a contract grower.
    (b) To be eligible for benefits, an individual or legal entity must 
submit a farm operating plan for the purpose of payment limitation 
review in accordance with part 1400 of this chapter and be a:
    (1) Citizen of the United States;
    (2) Resident alien; for purposes of this part, resident alien means 
``lawful alien'';
    (3) Partnership of citizens of the United States; or
    (4) Corporation, limited liability corporation, or other farm 
organizational structure organized under State law.


Sec.  1416.5  Equitable relief.

    The equitable relief provisions of part 718 of this title will not 
be used to obtain a different program result, payment, or benefit not 
otherwise available to a participant who satisfies any and all program 
eligibility provision, conditions of eligibility, or compliance 
provision.


Sec.  1416.6  Payment limitation.

    (a) For 2011, no person or legal entity, excluding a joint venture 
or general partnership, as determined according to the rules in part 
1400 of this chapter may receive more than:
    (1) $125,000 total in 2011 program year payments under LFP, SURE, 
ELAP, and LIP combined when at least $25,000 of such total 2011 program 
year payments is from LFP or LIP for losses from October 1 through 
December 31, 2011. If no 2011 program year payments are issued under 
LFP or LIP for losses occurring from October 1, 2011, through December 
31, 2011, the total amount of 2011 program year payments under LFP, 
SURE, ELAP, and LIP combined is limited to $100,000.
    (2) $125,000 for the 2011 program year under TAP.
    (b) For 2012 and subsequent program years, no person or legal 
entity, excluding a joint venture or general partnership, as determined 
by the rules in part 1400 of this chapter may receive, directly or 
indirectly, more than:
    (1) $125,000 per program year total under ELAP, LFP, and LIP 
combined; or
    (2) $125,000 per program year under TAP.
    (c) The Deputy Administrator may take such actions as needed to 
avoid a duplication of benefits under the programs provided for in this 
part, or duplication of benefits received in other programs, and may 
impose such cross-program payment limitations as may be consistent with 
the intent of this part.
    (d) Beginning with the 2014 program year, if a producer is eligible 
to receive

[[Page 21099]]

benefits under this part is also eligible to receive assistance for the 
same loss under any other program, including, but not limited to, 
indemnities made under the Federal Crop Insurance Act (7 U.S.C. 1501-
1524) or the noninsured crop disaster assistance program (7 U.S.C. 
7333), then the producer must elect whether to receive benefits under 
this part or under the other program, but not both.
    (e) For losses incurred beginning on October 1, 2011, and for the 
purposes of administering LIP, LFP, ELAP, and TAP, the average adjusted 
gross income (AGI) limitation provisions in part 1400 of this chapter 
relating to limits on payments for persons or legal entities, excluding 
joint ventures and general partnerships, with certain levels of AGI 
will apply under this subpart and will apply to each applicant for 
ELAP, LFP, LIP, and TAP. Specifically, a person or legal entity with an 
average AGI that exceeds $900,000 will not be eligible to receive 
benefits under this part.
    (f) The direct attribution provisions in part 1400 of this chapter 
apply to ELAP, LFP, LIP, and TAP. Under those rules, any payment to any 
legal entity will also be considered for payment limitation purposes to 
be a payment to persons or legal entities with an interest in the legal 
entity or in a sub-entity. If any such interested person or legal 
entity is over the payment limitation because of payment made directly 
or indirectly or a combination thereof, then the payment to the actual 
payee will be reduced commensurate with the amount of the interest of 
the interested person in the payee. Likewise, by the same method, if 
anyone with a direct or indirect interest in a legal entity or sub-
entity of a payee entity exceeds the AGI levels that would allow a 
participant to directly receive a payment under this part, then the 
payment to the actual payee will be reduced commensurately with that 
interest. For all purposes under this section, unless otherwise 
specified in part 1400 of this chapter, the AGI figure that will be 
relevant for a person or legal entity will be an average AGI for the 
three taxable years that precede the most immediately preceding 
complete taxable year, as determined by FSA.


Sec.  1416.7  Misrepresentation.

    (a) A participant who is determined to have deliberately 
misrepresented any fact affecting a program determination made in 
accordance with this part, or any other part that is applicable to this 
part, to receive benefits for which the participant would not otherwise 
be entitled, will not be entitled to program payments and must refund 
all such payments received, plus interest as determined in accordance 
with part 1403 of this chapter. The participant will also be denied 
program benefits for the immediately subsequent period of at least 2 
crop years, and up to 5 crop years. Interest will run from the date of 
the original disbursement by CCC.
    (b) A participant will refund to CCC all program payments, in 
accordance with Sec.  1416.11, received by such participant with 
respect to all contracts or applications, as may be applicable, if the 
participant is determined to have knowingly misrepresented any fact 
affecting a program determination.


Sec.  1416.8  Appeals.

    Appeal regulations in parts 11 and 780 of this title apply to this 
part.


Sec.  1416.9  Offsets, assignments, and debt settlement.

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


Sec.  1416.10  Records and inspections.

    (a) Any participant receiving payments under any program in ELAP, 
LFP, LIP or TAP, or any other legal entity or person who provides 
information for the purposes of enabling a participant to receive a 
payment under ELAP, LFP, LIP, or TAP must:
    (1) Maintain any books, records, and accounts supporting the 
information for 3 years following the end of the year during which the 
request for payment was submitted, and
    (2) Allow authorized representatives of USDA and the Government 
Accountability Office, during regular business hours, to inspect, 
examine, and make copies of such books or records, and to enter the 
farm and to inspect and verify all applicable livestock and acreage in 
which the participant has an interest for the purpose of confirming the 
accuracy of information provided by or for the participant.
    (b) [Reserved]


Sec.  1416.11  Refunds; joint and several liability.

    (a) In the event that the participant fails to comply with any 
term, requirement, or condition for payment or assistance arising under 
ELAP, LFP, LIP, or TAP and if any refund of a payment to CCC will 
otherwise become due in connection with this part, the participant must 
refund to CCC all payments made in regard to such matter, together with 
interest and late-payment charges as provided for in part 1403 of this 
chapter provided that interest will in all cases run from the date of 
the original disbursement.
    (b) All persons with a financial interest in an operation or in an 
application for payment will be jointly and severally liable for any 
refund, including related charges, that is determined to be due CCC for 
any reason under this part.


Sec.  1416.12  Minors.

    A minor child is eligible to apply for program benefits under ELAP, 
LFP, LIP, or TAP if all the eligibility requirements are met and the 
provision for minor children in part 1400 of this chapter are met.


Sec.  1416.13  Deceased individuals or dissolved entities.

    (a) Payments may be made for eligible losses suffered by an 
eligible participant who is now a deceased individual or is a dissolved 
entity if a representative, who currently has authority to act on 
behalf of the estate of the deceased participant, signs the application 
for payment.
    (b) Legal documents showing proof of authority to sign for the 
deceased individual or dissolved entity must be provided.
    (c) If a participant is now a dissolved general partnership or 
joint venture, all members of the general partnership or joint venture 
at the time of dissolution or their duly authorized representatives 
must sign the application for payment.


Sec.  1416.14  Miscellaneous.

    (a) As a condition to receive benefits under ELAP, LFP, LIP, or 
TAP, a participant must have been in compliance with the applicable 
provisions of parts 12 and 718 of this title and 1400 of this chapter, 
and must not otherwise be precluded from receiving benefits under those 
provisions or under any law.
    (b) [Reserved]

Subpart B--Emergency Assistance for Livestock, Honeybees, and Farm-
Raised Fish Program


Sec.  1416.101  Applicability.

    (a) This subpart establishes the terms and conditions under which 
the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish 
Program (ELAP) will be administered.

[[Page 21100]]

    (b) Eligible producers of livestock, honeybees, and farm-raised 
fish will be compensated for eligible losses due to an eligible adverse 
weather or eligible loss condition that occurred in the program year 
for which the producer requests benefits. The eligible loss must have 
been a direct result of eligible adverse weather or eligible loss 
conditions as determined by the Deputy Administrator. ELAP does not 
cover losses that are covered under LFP or LIP.


Sec.  1416.102  Definitions.

    The following definitions apply to this subpart and to the 
administration of ELAP. The definitions in parts 718 of this title and 
1400 of this chapter also apply, except where they conflict with the 
definitions in this section.
    Adult beef bull means a male beef breed bovine animal that was used 
for breeding purposes that was at least 2 years old before the 
beginning date of the eligible adverse weather or eligible loss 
condition.
    Adult beef cow means a female beef breed bovine animal that had 
delivered one or more offspring before the beginning date of the 
eligible adverse weather or eligible loss condition. A first-time bred 
beef heifer is also considered an adult beef cow if it was pregnant on 
or by the beginning date of the eligible adverse weather or eligible 
loss condition.
    Adult buffalo and beefalo bull means a male animal of those breeds 
that was used for breeding purposes and was at least 2 years old before 
the beginning date of the eligible adverse weather or eligible loss 
condition.
    Adult buffalo and beefalo cow means a female animal of those breeds 
that had delivered one or more offspring before the beginning date of 
the eligible adverse weather or eligible loss condition. A first-time 
bred buffalo or beefalo heifer is also considered an adult buffalo or 
beefalo cow if it was pregnant by the beginning date of the eligible 
adverse weather or eligible loss condition.
    Adult dairy bull means a male dairy breed bovine animal that was 
used primarily for breeding dairy cows and was at least 2 years old by 
the beginning date of the eligible adverse weather or eligible loss 
condition.
    Adult dairy cow means a female bovine dairy breed animal used for 
the purpose of providing milk for human consumption that had delivered 
one or more offspring by the beginning date of the eligible adverse 
weather or eligible loss condition. A first-time bred dairy heifer is 
also considered an adult dairy cow if it was pregnant by the beginning 
date of the eligible adverse weather or eligible loss condition.
    Agricultural operation means a farming operation.
    APHIS means the Animal and Plant Health Inspection Service.
    Application means CCC or FSA form used to apply for either the 
emergency loss assistance for livestock or emergency loss assistance 
for farm-raised fish or honeybees.
    Aquatic species means any species of aquatic organism grown as food 
for human consumption, fish raised as feed for fish that are consumed 
by humans, or ornamental fish propagated and reared in an aquatic 
medium by a commercial operator on private property in water in a 
controlled environment. Catfish and crawfish are both defined as 
aquatic species for ELAP. However, aquatic species do not include 
reptiles or amphibians.
    Bait fish means small fish caught for use as bait to attract large 
predatory fish. For ELAP, it also must meet the definition of aquatic 
species and not be raised as food for fish; provided, however, that 
only bait fish produced in a controlled environment are eligible for 
payment under ELAP.
    Beginning farmer or rancher means a person or legal entity, 
including all members, shareholders, partners, beneficiaries, etc., (as 
fits the circumstances) of an entity, who for a program year both:
    (1) Has not operated a farm or ranch in the previous consecutive 10 
years, and
    (2) Will have or has had for the relevant period materially and 
substantially participated in the operation of a farm or ranch.
    Buck means a male goat.
    Cattle tick fever means a severe and often fatal disease that 
destroys red blood cells of cattle, commonly known as Texas or cattle 
fever, which is spread by Rhipicephalus (Boophilus) annulatus, and the 
southern cattle tick, R. (Boophilus) microplus.
    Commercial use means used in the operation of a business activity 
engaged in as a means of livelihood for profit by the eligible 
producer.
    Contract means, with respect to contracts for the handling of 
livestock, a written agreement between a livestock owner and another 
individual or entity setting the specific terms, conditions, and 
obligations of the parties involved regarding the production of 
livestock or livestock products.
    Controlled environment means an environment in which everything 
that can practicably be controlled by the participant with structures, 
facilities, and growing media (including, but not limited to, water and 
nutrients) was in fact controlled by the participant at the time of the 
eligible adverse weather or eligible loss condition.
    County committee or county office means the respective FSA 
committee or office.
    Deputy Administrator or DAFP means the Deputy Administrator for 
Farm Programs, Farm Service Agency, U.S. Department of Agriculture or 
the designee.
    Eligible adverse weather means, as determined by the Deputy 
Administrator, an extreme or abnormal damaging weather event that is 
not expected to occur during the loss period, which results in eligible 
losses. The eligible adverse weather would have resulted in 
agricultural losses not covered by other programs in this part for 
which the Deputy Administrator determines financial assistance should 
be provided to producers. Adverse weather may include, but is not 
limited to, blizzard, winter storms, and wildfires. Specific eligible 
adverse weather may vary based on the type of loss. Identification of 
eligible adverse weather will include locations (National, State, or 
county-level) and start and end dates.
    Eligible drought means that any area of the county has been rated 
by the U.S. Drought Monitor as having a D3 (extreme drought) intensity:
    (1) At any time during the program year, for additional honeybee 
feed loss;
    (2) That directly impacts water availability at any time during the 
normal grazing period (for example, snow pack that feeds streams and 
springs), as determined by the Deputy Administrator or designee, for 
losses resulting from transporting water to livestock.
    Eligible grazing land means land that is native or improved 
pastureland with permanent vegetative cover or land planted to a crop 
planted specifically for the purpose of providing grazing for eligible 
livestock.
    Eligible loss condition means a condition that would have resulted 
in agricultural losses not covered by other programs in this part for 
which the Deputy Administrator determines financial assistance needs to 
be provided to producers. Specific eligible loss conditions include, 
but are not limited to, disease (including cattle tick fever), insect 
infestation, and colony collapse disorder. Identification of eligible 
loss conditions will include locations (National, State, or county-
level) and start and end dates.
    Eligible winter storm means a storm that lasts for at least three 
consecutive days and is accompanied by high winds,

[[Page 21101]]

freezing rain or sleet, heavy snowfall, and extremely cold 
temperatures.
    Equine animal means a domesticated horse, mule, or donkey.
    Ewe means a female sheep.
    Farming operation means a business enterprise engaged in producing 
agricultural products.
    Farm-raised fish means any aquatic species that is propagated and 
reared in a controlled environment.
    FSA means the Farm Service Agency.
    Game or sport fish means fish pursued for sport by recreational 
anglers; provided, however, that only game or sport fish produced in a 
controlled environment can generate claims under ELAP.
    Goat means a domesticated, ruminant mammal of the genus Capra, 
including Angora goats. Goats are further delineated into categories by 
sex (bucks and nannies) and age (kids).
    Grazing loss means the value, as calculated in Sec.  1416.110(g) or 
(m), of eligible grazing lost due to an eligible adverse weather or 
eligible loss condition based on the number of days that the eligible 
livestock were not able to graze the eligible grazing land during the 
normal grazing period.
    Kid means a goat less than 1 year old.
    Lamb means a sheep less than 1 year old.
    Limited resource farmer or rancher means a producer who is both:
    (1) A producer whose direct or indirect gross farm sales do not 
exceed $176,800 (2014 program year) in each of the 2 calendar years 
that precede the complete taxable year before the relevant program year 
(for example, for the 2014 program year, the two years would be 2012 
and 2011), adjusted upwards in later years for any general inflation, 
and
    (2) A producer whose total household income was at or below the 
national poverty level for a family of four in each of the same two 
previous years referenced in paragraph (1) of this definition. (Limited 
resource farmer or rancher status can be determined using a Web site 
available through the Limited Resource Farmer and Rancher Online Self 
Determination Tool through National Resource and Conservation Service 
at http://www.lrftool.sc.egov.usda.gov/tool.aspx.)
    Livestock owner, for death loss purposes, means one having legal 
ownership of the livestock for which benefits are being requested on 
the day such livestock died due to an eligible adverse weather or 
eligible loss condition. For all other purposes of loss under ELAP, 
``livestock owner'' means one having legal ownership of the livestock 
for which benefits are being requested during the 60 days prior to the 
beginning date of the eligible adverse weather or eligible loss 
condition.
    Nanny means a female goat.
    Non-adult beef cattle means a beef breed bovine animal that does 
not meet the definition of adult beef cow or bull. Non-adult beef 
cattle are further delineated by weight categories of either less than 
400 pounds or 400 pounds or more at the time they died. For a loss 
other than death, means a bovine animal less than 2 years old that that 
weighed 500 pounds or more on or before the beginning date of the 
eligible adverse weather or eligible loss condition.
    Non-adult buffalo or beefalo means an animal of those breeds that 
does not meet the definition of adult buffalo or beefalo cow or bull. 
Non-adult buffalo or beefalo are further delineated by weight 
categories of either less than 400 pounds or 400 pounds or more at the 
time of death. For a loss other than death, means an animal of those 
breeds that is less than 2 years old that weighed 500 pounds or more on 
or before the beginning date of the eligible adverse weather or 
eligible loss condition.
    Non-adult dairy cattle means a bovine dairy breed animal used for 
the purpose of providing milk for human consumption that does not meet 
the definition of adult dairy cow or bull. Non-adult dairy cattle are 
further delineated by weight categories of either less than 400 pounds 
or 400 pounds or more at the time they died. For a loss other than 
death, means a bovine dairy breed animal used for the purpose of 
providing milk for human consumption that is less than 2 years old that 
weighed 500 pounds or more on or before the beginning date of the 
eligible adverse weather or eligible loss condition.
    Normal grazing period, with respect to a county, means the normal 
grazing period during the calendar year with respect to each specific 
type of grazing land or pastureland in the county.
    Normal mortality means the numerical amount, computed by a 
percentage of expected livestock, honeybee colony and farm-raised fish 
deaths, by category, that normally occur during a program year for a 
producer, as established for the area by the FSA State Committee for 
livestock and farm-raised fish, and as established nationwide by the 
Deputy Administrator for honeybee colonies.
    Poultry means domesticated chickens, turkeys, ducks, and geese. 
Poultry are further delineated into categories by sex, age, and purpose 
of production as determined by FSA.
    Program year means from October 1 through September 30 of the 
fiscal year in which the loss occurred.
    Ram means a male sheep.
    Reliable record means any non-verifiable record available that 
reasonably supports the eligible loss, as determined acceptable by the 
COC.
    Secretary means the Secretary of Agriculture or a designee of the 
Secretary.
    Sheep means a domesticated, ruminant mammal of the genus Ovis. 
Sheep are further defined by sex (rams and ewes) and age (lambs) for 
purposes of dividing into categories for loss calculations.
    Socially disadvantaged farmer or rancher means a farmer or rancher 
who is a member of a socially disadvantaged group whose members have 
been subjected to racial, ethnic, or gender prejudice because of their 
identity as members of a group without regard to their individual 
qualities. For a legal entity to be considered ``socially 
disadvantaged'' a majority of the persons in the entity must in their 
individual capacities meet this definition. Socially disadvantaged 
groups include the following and no others unless approved in writing 
by the Deputy Administrator:
    (1) American Indians or Alaskan Natives;
    (2) Asians or Asian-Americans;
    (3) Blacks or African Americans;
    (4) Native Hawaiians or other Pacific Islanders,
    (5) Hispanics; and
    (6) Women.
    State committee, State office, county committee, or county office 
means the respective FSA committee or office.
    Swine means a domesticated omnivorous pig, hog, or boar. Swine for 
purposes of dividing into categories for loss calculations are further 
delineated into categories by sex and weight as determined by FSA.
    United States means all 50 States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico and any other 
territory or possession of the United States.
    U.S. Drought Monitor is a system for classifying drought severity 
according to a range of abnormally dry to exceptional drought. It is a 
collaborative effort between Federal and academic partners, produced on 
a weekly basis, to synthesize multiple indices, outlooks, and drought 
impacts on a map and in narrative form. This synthesis of indices is 
reported by the National Drought Mitigation Center at http://droughtmonitor.unl.edu. Should an eligible area not be covered by the 
U.S. Drought Monitor, the Deputy

[[Page 21102]]

Administrator, in consultation with appropriate weather-related 
agencies and experts, will establish procedures for rating drought 
intensity using the same range of categories as the U.S. Drought 
Monitor and use this information in place of the missing data for 
eligibility purposes.
    Verifiable record means a document provided by the producer that 
can be verified by the County Committee (COC) through an independent 
source and is used to substantiate the claimed loss.


Sec.  1416.103  Eligible losses, adverse weather, and other loss 
conditions.

    (a) An eligible loss covered under this subpart is a loss that an 
eligible producer or contract grower of livestock, honeybees, or farm-
raised fish incurs due to an eligible adverse weather or eligible loss 
condition, as determined by the Deputy Administrator.
    (b) A loss covered under LFP or LIP is not eligible for ELAP.
    (c) To be eligible, the loss must have occurred during the program 
year for which payment is being requested.
    (d) For a livestock feed loss to be considered an eligible loss, 
the livestock feed loss must be one of the following:
    (1) Loss of purchased forage or feedstuffs that was intended for 
use as feed for the participant's eligible livestock as specified in 
Sec.  1416.104(a) that was physically located in the county where the 
eligible adverse weather or eligible loss condition occurred on the 
beginning date of the eligible adverse weather or eligible loss 
condition. The loss must be due to an eligible adverse weather or 
eligible loss condition, as determined by the Deputy Administrator, 
including, but not limited to, blizzard, eligible winter storms, flood, 
hurricane, lightning, tidal surge, tornado, volcanic eruption, or 
wildfire on non-Federal land;
    (2) Loss of mechanically harvested forage or feedstuffs intended 
for use as feed for the participant's eligible livestock as specified 
in Sec.  1416.104(a) that was physically located in the county where 
the eligible adverse weather or eligible loss condition occurred on the 
beginning date of the eligible adverse weather or eligible loss 
condition. The loss must have occurred after harvest due to an eligible 
adverse weather or eligible loss condition, as determined by the Deputy 
Administrator, including, but not limited to, blizzard, eligible winter 
storms, flood, hurricane, lightning, tidal surge, tornado, volcanic 
eruption, or wildfire on non-Federal land;
    (3) A loss resulting from the additional cost of purchasing 
additional livestock feed, above normal quantities, required to 
maintain the eligible livestock as specified in Sec.  1416.104(a) 
during an eligible adverse weather or eligible loss condition, until 
additional livestock feed becomes available, as determined by the 
Deputy Administrator. To be eligible, the additional feed purchased 
above normal quantities must be feed that is fed to maintain livestock 
in the county where the eligible adverse weather or eligible loss 
condition occurred. Eligible adverse weather or eligible loss 
conditions, as determined by the Deputy Administrator, including, but 
not limited to, blizzard, eligible winter storms, flood, hurricane, 
lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-
Federal land;
    (4) A loss resulting from the additional cost incurred for 
transporting livestock feed to eligible livestock as specified in Sec.  
1416.104(a) due to an eligible adverse weather or eligible loss 
condition, as determined by the Deputy Administrator, including, but 
not limited to, costs associated with equipment rental fees for hay 
lifts and snow removal. To be eligible, the loss must be incurred in 
combination with a loss described in paragraphs (d)(1), (2), or (3) of 
this section. The additional costs incurred must have been incurred for 
losses suffered in the county where the eligible adverse weather or 
eligible loss condition occurred. Eligible adverse weather or eligible 
loss conditions, as determined by the Deputy Administrator, include, 
but not limited to, blizzard, eligible winter storms, flood, hurricane, 
lightning, tidal surge, tornado, volcanic eruption, or wildfire on non-
Federal land;
    (5) For 2014 and subsequent program years, a loss resulting from 
the additional cost of transporting water to eligible livestock as 
specified in Sec.  1416.104(a) due to an eligible drought, including, 
but not limited to, costs associated with water transport equipment 
rental fees, labor, and contracted water transportation fees. The cost 
of the water is not eligible for payment. Transporting water to 
livestock located on land enrolled in CRP is not an eligible loss under 
this program. To be eligible for additional cost of transporting water 
to eligible livestock, the livestock must be on eligible grazing lands 
that meet all of the following:
    (i) Physically located in the county where the eligible adverse 
weather or eligible loss condition occurred;
    (ii) That had adequate livestock watering systems or facilities 
before the eligible adverse weather or eligible loss condition 
occurred; and
    (iii) That the producer is not normally required to transport water 
to the grazing land.
    (e) For a grazing loss to be considered eligible, the grazing loss 
must have been incurred:
    (1) During the normal grazing period, as specified in Sec.  
1416.102;
    (2) On eligible grazing land that is physically located in the 
county where the eligible adverse weather or eligible loss condition 
occurred;
    (3) Due to an eligible adverse weather or eligible loss condition, 
as determined by the Deputy Administrator, including, but not limited 
to, blizzard, eligible winter storm, flood, hurricane, hail, lightning, 
tidal surge, volcanic eruption, and wildfire on non-Federal land. The 
grazing loss will not be eligible if it is due to an adverse weather 
condition covered by LFP as specified in subpart C of this part, such 
as drought or wildfire on federally managed land where the producer is 
prohibited by the Federal agency from grazing the normally permitted 
livestock on the managed rangeland due to a fire.
    (f) For a loss resulting from the additional cost associated with 
gathering livestock to treat for cattle tick fever, the livestock 
treated for cattle tick fever must be considered eligible livestock as 
specified in Sec.  1416.104(d). To be considered an eligible loss, 
acceptable records, as determined by the Deputy Administrator, must be 
on file with APHIS, that provide the number of livestock treated for 
cattle tick fever and the number of treatments given during the program 
year.
    (g) For a loss due to livestock death to be considered eligible, 
the livestock death must have occurred in the county where the eligible 
loss condition occurred. The livestock death must be in excess of 
normal mortality and due to an eligible loss condition determined as 
eligible by the Deputy Administrator and not related to eligible 
adverse weather, as specified in subpart D of this part for LIP.
    (h) For honeybee feed or farm-raised fish feed losses to be 
considered an eligible loss, the honeybee feed or farm-raised fish feed 
loss must be one of the following:
    (1) Loss of honeybee feed or farm-raised fish feed that was 
intended as feed for the participant's eligible honeybees or farm-
raised fish that was physically located in the county where the 
eligible adverse weather or eligible loss condition occurred on the 
beginning date of the eligible adverse weather or eligible loss 
condition. The loss must be due to an eligible adverse weather or 
eligible loss condition, as determined by the Deputy

[[Page 21103]]

Administrator, including, but not limited to, earthquake, flood, 
hurricane, lightning, tidal surge, tornado, volcanic eruption, and 
wildfire.
    (2) A loss resulting from the additional cost of purchasing 
additional honeybee feed, above normal quantities, required to maintain 
the honeybees during an eligible adverse weather or eligible loss 
condition, until additional honeybee feed becomes available, as 
determined by the Deputy Administrator. To be eligible the additional 
feed purchased above normal quantities must be feed that is fed to 
maintain honeybees in the county where the eligible adverse weather or 
eligible loss condition occurred. The loss must be due to an eligible 
adverse weather or eligible loss condition, as determined by the Deputy 
Administrator, including, but not limited to, earthquake, early fall 
frost, excessive rainfall, flood, hurricane, late spring frost, 
lightning, tidal surge, tornado, volcanic eruption, wildfire and 
eligible drought, as specified in Sec.  1416.102.
    (i) For honeybee colony or honeybee hive losses to be considered 
eligible, the hive producer must have incurred the loss in the county 
where the eligible adverse weather or eligible loss condition occurred. 
The honeybee colony or hive losses must be due to an eligible adverse 
weather or eligible loss condition, as determined by the Deputy 
Administrator, including, but not limited to, colony collapse disorder, 
earthquake, eligible winter storm, as specified in Sec.  1416.102, 
excessive wind, flood, hurricane, lightning, tornado, volcanic 
eruption, and wildfire. To be considered an eligible honeybee colony 
loss, the colony loss must be in excess of normal mortality, as 
established by the Deputy Administrator, and the loss could not have 
been prevented through reasonable and available measures. Acceptable 
documentation must be provided upon request by FSA to demonstrate an 
eligible loss occurred, was associated with an eligible adverse weather 
event or loss condition, and that generally accepted husbandry and 
production practices had been followed.
    (j) For death losses of bait fish, game fish, or other aquatic 
species, as determined by the Deputy Administrator, to be considered 
eligible, the producer must have incurred the fish loss, in excess of 
normal mortality, in the county where the eligible adverse weather or 
eligible loss condition occurred. The fish death must be due to an 
eligible adverse weather or eligible loss condition as determined by 
the Deputy Administrator including, but not limited to, earthquake, 
flood, hurricane, tidal surge, tornado, and volcanic eruption.


Sec.  1416.104  Eligible livestock, honeybees, and farm-raised fish.

    (a) To be considered eligible livestock for livestock grazing and 
feed, losses resulting from transporting water, and gathering livestock 
to treat for cattle tick fever, livestock must meet all the following 
conditions:
    (1) Be alpacas, adult or non-adult dairy cattle, adult or non-adult 
beef cattle, adult or non-adult buffalo, adult or non-adult beefalo, 
deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep, or 
swine;
    (2) Except for livestock losses resulting from gathering livestock 
to treat cattle tick fever, be livestock that would normally have been 
grazing the eligible grazing land or pastureland during the normal 
grazing period for the specific type of grazing land or pastureland for 
the county where the eligible adverse weather or eligible loss 
condition occurred;
    (3) Be livestock that is owned, cash-leased, purchased, under 
contract for purchase, or been raised by a contract grower or an 
eligible livestock producer, during the 60 days prior to the beginning 
date of the eligible adverse weather or eligible loss condition;
    (4) Be livestock that has been maintained for commercial use as 
part of the producer's farming operation on the beginning date of the 
eligible adverse weather or eligible loss condition;
    (5) Be livestock that has not been produced and maintained for 
reasons other than commercial use as part of a farming operation; and
    (6) Be livestock that was not in a feedlot, on the beginning date 
of the eligible adverse weather or eligible loss condition, as a part 
of the normal business operation of the producer, as determined by the 
Deputy Administrator.
    (b) The eligible livestock types for grazing and feed losses, 
losses resulting from transporting water and gathering livestock to 
treat for cattle tick fever, are:
    (1) Adult beef cows or bulls,
    (2) Adult buffalo or beefalo cows or bulls,
    (3) Adult dairy cows or bulls,
    (4) Alpacas,
    (5) Deer,
    (6) Elk,
    (7) Emus,
    (8) Equine,
    (9) Goats,
    (10) Llamas,
    (11) Non-adult beef cattle,
    (12) Non-adult buffalo or beefalo,
    (13) Non-adult dairy cattle,
    (14) Poultry,
    (15) Reindeer,
    (16) Sheep, and
    (17) Swine.
    (c) Ineligible livestock for grazing and feed losses, and losses 
resulting from transporting water, include, but are not limited to:
    (1) Livestock that were or would have been in a feedlot, on the 
beginning date of the eligible adverse weather or eligible loss 
condition, as a part of the normal business operation of the producer, 
as determined by FSA;
    (2) Yaks;
    (3) Ostriches;
    (4) All beef and dairy cattle, and buffalo and beefalo that weighed 
less than 500 pounds on the beginning date of the eligible adverse 
weather or eligible loss condition;
    (5) Any wild free roaming livestock, including horses and deer; and
    (6) Livestock produced or maintained for reasons other than 
commercial use as part of a farming operation, including, but not 
limited to, livestock produced or maintained exclusively for 
recreational purposes, such as:
    (i) Roping,
    (ii) Hunting,
    (iii) Show,
    (iv) Pleasure,
    (v) Use as pets, or
    (vi) Consumption by owner.
    (d) For death losses for livestock owners to be eligible, the 
livestock must meet all of the following conditions:
    (1) Be alpacas, adult or non-adult dairy cattle, beef cattle, 
beefalo, buffalo, deer, elk, emus, equine, goats, llamas, poultry, 
reindeer, sheep, or swine, and meet all the conditions in paragraph (f) 
of this section.
    (2) Be one of the following categories of animals for which 
calculations of eligibility for payments will be calculated separately 
for each producer with respect to each category:
    (i) Adult beef bulls;
    (ii) Adult beef cows;
    (iii) Adult buffalo or beefalo bulls;
    (iv) Adult buffalo or beefalo cows;
    (v) Adult dairy bulls;
    (vi) Adult dairy cows;
    (vii) Alpacas;
    (viii) Chickens, broilers, pullets;
    (ix) Chickens, chicks;
    (x) Chickens, layers, roasters;
    (xi) Deer;
    (xii) Ducks;
    (xiii) Ducks, ducklings;
    (xiv) Elk;
    (xv) Emus;
    (xvi) Equine;
    (xvii) Geese, goose;
    (xviii) Geese, gosling;
    (xix) Goats, bucks;

[[Page 21104]]

    (xx) Goats, nannies;
    (xxi) Goats, kids;
    (xxii) Llamas;
    (xxiii) Non-adult beef cattle;
    (xxiv) Non-adult buffalo or beefalo;
    (xxv) Non-adult dairy cattle;
    (xxvi) Reindeer;
    (xxvii) Sheep, ewes;
    (xxviii) Sheep, lambs;
    (xxix) Sheep, rams;
    (xxx) Swine, feeder pigs under 50 pounds;
    (xxxi) Swine, sows, boars, barrows, gilts 50 to 150 pounds;
    (xxxii) Swine, sows, boars, barrows, gilts over 150 pounds;
    (xxxiii) Turkeys, poults; and
    (xxxiv) Turkeys, toms, fryers, and roasters.
    (e) Under ELAP, ``contract growers'' will only be deemed to include 
producers of livestock, other than feedlots, whose income is dependent 
on the actual weight gain and survival of the livestock. For death 
losses for contract growers to be eligible, the livestock must meet all 
of the following conditions:
    (1) Be poultry or swine and meet all the conditions in paragraph 
(f) of this section.
    (2) Be one of the following categories of animals for which 
calculations of eligibility for payments will be calculated separately 
for each contract grower with respect to each category:
    (i) Chickens, broilers, pullets;
    (ii) Chickens, layers, roasters;
    (iii) Geese, goose;
    (iv) Swine, boars, sows;
    (v) Swine, feeder pigs;
    (vi) Swine, lightweight barrows, gilts;
    (vii) Swine, sows, boars, barrows, gilts; and
    (viii) Turkeys, toms, fryers, and roasters.
    (f) For livestock death losses to be considered eligible livestock 
for the purpose of generating payments under this subpart, livestock 
must meet all of the following conditions:
    (1) They must have died:
    (i) On or after the beginning date of the eligible loss condition; 
and
    (ii) On or after October 1, 2011, and no later than 60 calendar 
days from the ending date of the eligible loss condition; and
    (iii) As a direct result of an eligible loss condition that occurs 
on or after October 1, 2011, and
    (iv) In the program year for which payment is being requested; and
    (2) Been maintained for commercial use as part of a farming 
operation on the day the livestock died; and
    (3) Before dying, not have been produced or maintained for reasons 
other than commercial use as part of a farming operation, such non-
eligible uses being understood to include, but not be limited to, any 
uses of wild free roaming animals or use of the animals for 
recreational purposes, such as pleasure, hunting, roping, pets, or for 
show.
    (g) For honeybee colony, hive, and feed losses to be eligible, the 
honeybee colony must meet the following conditions:
    (1) Been maintained for the purpose of producing honey or 
pollination for commercial use in a farming operation on the beginning 
date of the eligible adverse weather or eligible loss condition;
    (2) Been physically located in the county where the eligible 
adverse weather or eligible loss condition occurred on the beginning 
date of the eligible adverse weather or eligible loss condition;
    (3) Been a honeybee colony in which the participant has a risk in 
the honey production or pollination farming operation on the beginning 
date of the eligible adverse weather or eligible loss condition;
    (4) Been a honeybee colony for which the producer had an eligible 
loss of a honeybee colony, honeybee hive, or honeybee feed; the feed 
must have been intended as feed for honeybees.
    (h) For fish to be eligible to generate payments under ELAP, the 
fish must be produced in a controlled environment and the farm-raised 
fish must:
    (1) For feed losses:
    (i) Be an aquatic species that is propagated and reared in a 
controlled environment;
    (ii) Be maintained and harvested for commercial use as part of a 
farming operation; and
    (iii) Be physically located in the county where the eligible 
adverse weather or eligible loss condition occurred on the beginning 
date of the eligible adverse weather or eligible loss condition.
    (2) For death losses:
    (i) Be bait fish, game fish, or another aquatic species deemed 
eligible by the Deputy Administrator that are propagated and reared in 
a controlled environment;
    (ii) Been maintained for commercial use as part of a farming 
operation; and
    (iii) Been physically located in the county where the eligible loss 
adverse weather or eligible loss condition occurred on the beginning 
date of the eligible adverse weather or eligible loss condition.


Sec.  1416.105  Eligible producers, owners, and contract growers.

    (a) To be considered an eligible livestock producer for feed losses 
and losses resulting from transporting water and gathering livestock to 
treat for cattle tick fever and to receive payments, the participant 
must have:
    (1) Owned, cash-leased, purchased, entered into a contract to 
purchase, or been a contract grower of eligible livestock during the 60 
days prior to the beginning date of the eligible adverse weather or 
eligible loss condition; and
    (2) Had a loss that is determined to be eligible as specified in 
Sec.  1416.103(d) or (f).
    (b) To be considered an eligible livestock producer for grazing 
losses and to receive payments, the participant must have:
    (1) Owned, cash-leased, purchased, entered into a contract to 
purchase, or been a contract grower of eligible livestock during the 60 
days prior to the beginning date of the eligible adverse weather or 
eligible loss condition;
    (2) Had a loss that is determined to be eligible as specified in 
Sec.  1416.103(e);
    (3) Had eligible livestock that would normally have been grazing 
the eligible grazing land or pastureland during the normal grazing 
period for the specific type of grazing land or pastureland for the 
county;
    (4) Provided for the eligible livestock pastureland or grazing 
land, including cash leased pastureland or grazing land for eligible 
livestock that is physically located in the county where the eligible 
adverse weather or loss condition occurred during the normal grazing 
period for the county.
    (c) For livestock death losses to be eligible the producer must 
have had a loss that is determined to be eligible as specified in Sec.  
1416.103(g) and in addition to other eligibility rules that may apply 
to be eligible as a:
    (1) Livestock owner for the payment with respect to the death of an 
animal under this subpart, the applicant must have had legal ownership 
of the livestock on the day the livestock died and under conditions in 
which no contract grower could have been eligible for ELAP payment with 
respect to the animal. Eligible types of animal categories for which 
losses can be calculated for an owner are specified in Sec.  
1416.104(d).
    (2) Contract grower for ELAP payment with respect to the death of 
an animal, the animal must be in one of the categories specified in 
Sec.  1416.104(e), and the contract grower must have had:
    (i) A written agreement with the owner of eligible livestock 
setting the specific terms, conditions, and obligations of the parties 
involved regarding the production of livestock;
    (ii) Control of the eligible livestock on the day the livestock 
died; and

[[Page 21105]]

    (iii) A risk of loss in the animal.
    (d) To be considered an eligible honeybee producer, a participant 
must have an interest and risk in an eligible honeybee colony, as 
specified in Sec.  1416.104(g), for the purpose of producing honey or 
pollination for commercial use as part of a farming operation and must 
have had a loss that is determined to be eligible as specified in Sec.  
1416.103(h) or (i).
    (e) To be considered an eligible farm-raised fish producer for feed 
and death loss purposes, the participant must have produced eligible 
farm-raised fish, as specified in Sec.  1416.104(h), with the intent to 
harvest for commercial use as part of a farming operation and must have 
had a loss that is determined to be eligible as specified in Sec.  
1416.103(h) or (j);
    (f) A producer seeking payments must not be ineligible under the 
restrictions applicable to foreign persons contained in Sec.  1416.3(b) 
and must meet all other requirements of subpart A of this part and 
other applicable USDA regulations.


Sec.  1416.106  Notice of loss and application process.

    (a) To apply for ELAP, the participant that suffered eligible 
livestock, honeybee, or farm-raised fish losses must submit, to the FSA 
administrative county office that maintains the participant's farm 
records for the agricultural operation, the following:
    (1) A notice of loss to FSA as specified in Sec.  1416.107(a),
    (2) A completed application as specified in Sec.  1416.107(b) for 
one or both of the following:
    (i) For livestock feed, grazing, and death losses and losses 
resulting from transporting water and gathering livestock to treat for 
cattle tick fever, a completed Emergency Loss Assistance for Livestock 
Application;
    (ii) For honeybee feed, honeybee colony, honeybee hive, or farm-
raised fish feed or death losses, a completed Emergency Loss Assistance 
for Honeybees or Farm-Raised Fish Application;
    (3) A report of acreage, if applicable, as determined by the Deputy 
Administrator;
    (4) A copy of the participant's grower contract, if the participant 
is a contract grower;
    (5) Other supporting documents required for FSA to determine 
eligibility of the participant, livestock, honeybee colonies, hives, 
farm-raised fish, and loss;
    (6) A farm operating plan, if a current farm operating plan is not 
already on file in the FSA county office; and
    (7) A socially disadvantaged, limited resource and beginning farmer 
or rancher certification, if applicable.
    (b) For 2014 and previous program years, available reliable or 
verifiable records must be provided only upon request by FSA. For 2015 
and subsequent program years, for livestock grazing losses, participant 
must provide acceptable, verifiable, or reliable records that:
    (1) Additional livestock feed was fed to sustain eligible livestock 
during an eligible adverse weather or loss condition, or
    (2) Eligible livestock were removed from the eligible grazing land 
where the grazing loss occurred.
    (c) For livestock, honeybee, or farm-raised fish feed losses, 
participant must provide acceptable, verifiable, or reliable records of 
the following as determined by the COC:
    (1) Purchased feed intended as feed for livestock, honeybees, or 
farm-raised fish that was lost, or additional feed purchased above 
normal quantities to sustain livestock, honeybees, and farm-raised fish 
for a period of time, not to exceed 150 days, until additional feed 
becomes available, due to an eligible adverse weather or eligible loss 
condition. Verifiable or reliable records may include, but are not 
limited to, feed receipts, invoices, settlement sheets, warehouse 
ledger sheets, load summaries, register tapes, and contemporaneous 
records.
    (2) Harvested feed intended as feed for livestock, honeybees, or 
farm-raised fish that was lost due to an eligible adverse weather or 
eligible loss condition. Verifiable or reliable records may include, 
but are not limited to, weight tickets, truck scale tickets, pick 
records, contemporaneous records used to verify that the crop was 
stored with the intent to feed the crop to livestock, honeybees, or 
farm-raised fish, and custom harvest documents that clearly identify 
the amount of feed produced from the applicable acreage.
    (3) A loss resulting from the additional cost incurred for 
transporting livestock feed to eligible livestock due to an eligible 
adverse weather or eligible loss condition as determined by the Deputy 
Administrator, including, but not limited to, costs associated with 
equipment rental fees for hay lifts and snow removal. Verifiable or 
reliable records may include, but are not limited to, invoices, 
commercial receipts, load summaries, and contemporaneous records used 
to verify transportation cost of additional livestock feed.
    (4) Additional cost of transporting water to eligible livestock due 
to an eligible adverse weather or eligible loss condition as determined 
by the Deputy Administrator, including, but not limited to, costs 
associated with water transport equipment rental fees, labor, and 
contracted water transportation fees. Verifiable or reliable records 
include, but are not limited to, commercial receipts, contemporaneous 
records and invoices. Records must clearly indicate the dates on which 
water was transported and the total gallons transported.
    (d) For eligible honeybee colony, honeybee hive and farm-raised 
fish losses, the participant must provide verifiable or reliable 
records of honeybee colony, hive, or farm-raised fish losses. For 
honeybee colony and hive losses, the participant must also provide 
verifiable or reliable records of inventory at the beginning of the 
program year, and records of purchase and sale transactions of honeybee 
colonies and hives throughout the program year. For farm-raised fish 
losses, the participant must also provide verifiable or reliable 
records of inventory on the beginning date and ending date of the 
eligible adverse weather or eligible loss condition. Verifiable and 
reliable records may include, but are not limited to, any combination 
of the following:
    (1) A report of acreage,
    (2) Loan records,
    (3) Private insurance documents,
    (4) Property tax records,
    (5) Sales and purchase receipts,
    (6) State colony registration documentation, and
    (7) Chattel inspections.
    (e) For eligible livestock death losses that occur during the 2015 
and subsequent program years, the participant must provide proof of 
livestock death, current physical location of livestock in inventory, 
and physical location of claimed livestock at the time of death, 
according to the documentation requirements for the Livestock Indemnity 
Program in Sec.  1416.305(d) through (f).
    (f) For eligible livestock death losses that occur during the 2012, 
2013, and 2014 program years, the participant must provide proof of 
death and livestock inventory, according to the documentation 
requirements for the Livestock Indemnity Program in Sec.  1416.305 (h).
    (g) If verifiable or reliable records are not available or 
provided, as required in paragraphs (b) through (d) of this section, 
the COC may accept producer's certification of losses if similar 
producers have comparable losses, as determined by the COC and approved 
by the STC (FSA State Committee).

[[Page 21106]]

Sec.  1416.107  Notice of loss and application period.

    (a) In addition to submitting an application for payment at the 
appropriate time, the participant that suffered eligible livestock, 
honeybee, or farm-raised fish losses that create or could create a 
claim for benefits must:
    (1) For losses in program years 2012 and 2013, provide a separate 
notice of loss for each program year to FSA no later than August 1, 
2014,
    (2) For losses that occur in program year 2014, provide a notice of 
loss to FSA no later than November 1, 2014,
    (3) For losses that occur in program year 2015 and subsequent 
years, the participant must provide a notice of loss to FSA within the 
earlier of:
    (i) 30 calendar days of when the loss is apparent to the 
participant; or
    (ii) November 1 following the program year for which benefits are 
being requested.
    (4) Submit the notice of loss required in paragraph (a) of this 
section to the administrative FSA county office, unless additional 
options are otherwise provided for by the Deputy Administrator.
    (b) In addition to the notices of loss required in paragraph (a) of 
this section, a participant must also submit a completed application 
for payment no later than:
    (1) For the 2012 and 2013 program years, August 1, 2014, or
    (2) For 2014 and subsequent program years, November 1 following the 
program year for which benefits are being requested.


Sec.  1416.108  Availability of funds.

    Not more than $20 million for fiscal year 2012 and each succeeding 
fiscal year will be approved for this program by the Secretary. Within 
that cap, the only funds that will be considered available to pay 
eligible losses will be that amount approved by the Secretary. Payments 
will not be made for claims arising out of a particular program year 
until, for all claims for that program year, the time for applying for 
a payment has passed. In the event that, within the limits of the 
funding made available by the Secretary within the statutory cap, 
approval of eligible applications would result in expenditures in 
excess of the amount available, FSA will prorate the available funds by 
a national factor to reduce the total expected payments to the amount 
made available by the Secretary. FSA will make payments based on the 
factor for the national rate determined by FSA. FSA will prorate the 
payments in such manner as it determines appropriate and reasonable. 
Claims that are unpaid or prorated for a program year for any reason 
will not be carried forward for payment under other funds for later 
years or otherwise, but will be considered, as to any unpaid amount, 
void and nonpayable.


Sec.  1416.109  National Payment Rate.

    (a) For an eligible livestock, honeybee, or farm-raised fish 
producer that meets the definition of beginning farmer or rancher, 
socially disadvantaged farmer or rancher, or limited resource farmer or 
rancher, payments calculated in Sec. Sec.  1416.110 through 1416.112 
will be based on a national payment rate of 90 percent.
    (b) For an eligible livestock, honeybee, or farm-raised fish 
producer, payments calculated in Sec. Sec.  1416.110(a), (b), (f), (g) 
and (l), 1416.111(a), and 1416.112(a), will be based on a national 
payment rate, to be determined by the Deputy Administrator, of not less 
than 60 percent and not more than 80 percent of the calculated payment.
    (c) For an eligible livestock, honeybee, or farm-raised fish 
producer, payments calculated in Sec. Sec.  1416.110(n), 1416.111(b) 
and (c), and 1416.112(b), will be based on a national payment rate, to 
be determined by the Deputy Administrator, of not less than 75 percent 
and not more than 80 percent of the calculated payment.


Sec.  1416.110  Livestock payment calculations.

    (a) Livestock feed payments for an eligible livestock producer will 
be calculated based on losses for no more than 150 days during the 
program year. Payment calculations for feed losses will be based on a 
national payment rate, as specified in Sec.  1416.109, multiplied by 
the producer's actual cost for:
    (1) Livestock feed that was purchased forage or feedstuffs intended 
for use as feed for the participant's eligible livestock that was 
physically damaged or destroyed due to the direct result of an eligible 
adverse weather or eligible loss condition, as specified in Sec.  
1416.103(d)(1);
    (2) Livestock feed that was mechanically harvested forage or 
feedstuffs intended for use as feed for the participant's eligible 
livestock that was physically damaged or destroyed after harvest due to 
the direct result of an eligible adverse weather or eligible loss 
condition, as specified in Sec.  1416.103(d)(2);
    (3) The additional cost of purchasing additional livestock feed 
above normal quantities, required to maintain the eligible livestock 
during an eligible adverse weather or eligible loss condition until 
additional livestock feed becomes available, as specified in Sec.  
1416.103(d)(3); and
    (4) The additional cost incurred for transporting livestock feed to 
eligible livestock due to an eligible adverse weather or eligible loss 
condition, as specified in Sec.  1416.103(d)(4);
    (b) Payments for losses resulting from the additional cost of 
transporting water to eligible livestock due to an eligible drought for 
no more 150 days during the program year, as specified in Sec.  
1416.103(d)(5) calculated based on a national payment rate, as 
determined in Sec.  1416.109, multiplied by the lesser of either:
    (1) The total value of the cost to transport water to eligible 
livestock for 150 days, based on the daily water requirements for the 
eligible livestock, or
    (2) The total value of the cost to transport water to eligible 
livestock for the program year, based on the actual number of gallons 
of water the eligible producer transported to eligible livestock for 
the program year.
    (c) The total value of the cost to transport water to eligible 
livestock for 150 days to be used in the calculation for paragraph 
(b)(1) of this section is equal to the product obtained by multiplying:
    (1) The number of eligible livestock converted to an animal unit 
basis;
    (2) The gallons of water required per animal unit for maintenance 
for one day, as determined by the Deputy Administrator;
    (3) The national average price per gallon to transport water and 
any appropriate regional or local adjustments as recommended by the STC 
and determined by the Deputy Administrator; and
    (4) 150 days.
    (d) The total value of the cost to transport water to eligible 
livestock for the program year to be used in the calculation for 
paragraph (b)(2) of this section is equal to the product obtained by 
multiplying:
    (1) Actual number of gallons of water transported by the eligible 
producer to eligible livestock in the program year; and
    (2) The national average price per gallon to transport water and 
any appropriate regional or local adjustments as recommended by the STC 
and determined by the Deputy Administrator.
    (e) The national average price per gallon to transport water to be 
used in the calculation for paragraphs (c)(3) and (d)(2) of this 
section is $0.04, or such other price determined by the Deputy 
Administrator.

[[Page 21107]]

    (f) Payments for an eligible livestock producer, for livestock 
losses resulting from the additional cost associated with gathering 
livestock to treat for cattle tick fever will be calculated for the 
actual number of livestock involved in each treatment. Total payments 
are equal to the sum of the following for each treatment:
    (1) The national payment rate, as determined in Sec.  1416.109, 
times
    (2) The number of eligible livestock treated by APHIS for cattle 
tick fever, times
    (3) The average cost to gather livestock, per head, as established 
by the Deputy Administrator.
    (g) Payments for an eligible livestock producer for grazing losses, 
except for losses due to wildfires on non-Federal land, will be 
calculated based on the applicable national payment rate, as determined 
in Sec.  1416.109, multiplied by the lesser of:
    (1) The total value of the feed cost for all covered livestock 
owned by the eligible livestock producer based on the number of days 
grazing was lost, not to exceed 150 days of daily feed cost for all 
eligible livestock, or
    (2) The total value of grazing lost for all eligible livestock 
based on the normal carrying capacity, as determined by the Secretary, 
of the eligible grazing land of the eligible livestock producer for the 
number of grazing days lost, not to exceed 150 days of lost grazing.
    (h) The total value of feed cost to be used in the calculation for 
paragraph (g)(1) of this section is based on the number of days grazing 
was lost and equals the product obtained by multiplying:
    (1) A payment quantity equal to the feed grain equivalent, as 
determined in paragraph (i) of this section;
    (2) A payment rate equal to the corn price per pound, as determined 
in paragraph (j) of this section;
    (3) The number of all eligible livestock owned by the eligible 
producer converted to an animal unit basis;
    (4) The number of days grazing was lost, not to exceed 150 calendar 
days during the normal grazing period for the specific type of grazing 
land; and
    (5) The producer's ownership share in the livestock.
    (i) The feed grain equivalent to be used in the calculation for 
paragraph (g)(1) of this section equals, in the case of:
    (1) An adult beef cow, 15.7 pounds of corn per day, or
    (2) Any other type or weight of livestock, an amount determined by 
the Secretary that represents the average number of pounds of corn per 
day necessary to feed that specific type of livestock.
    (j) The corn price per pound to be used in the calculation for 
paragraph (h)(2) of this section equals the quotient calculated as 
follows:
    (1) The higher of:
    (i) The national average corn price per bushel of corn for the 12-
month period immediately preceding March 1 of the program year for 
which payments are calculated; or
    (ii) The national average corn price per bushel of corn for the 24-
month period immediately preceding March 1 of the program year for 
which payments are calculated;
    (2) Divided by 56.
    (k) The total value of grazing lost to be used in the calculation 
for paragraph (h)(2) of this section equals the product obtained by 
multiplying:
    (1) A payment quantity equal to the feed grain equivalent of 15.7 
pounds of corn per day;
    (2) A payment rate equal to the corn price per pound, as determined 
in paragraph (j) of this section;
    (3) The number of animal units the eligible livestock producer's 
grazing land or pastureland can sustain during the normal grazing 
period in the county for the specific type of grazing land or 
pastureland, in the absence of an eligible adverse weather or eligible 
loss condition, determined by dividing the:
    (i) Number of eligible grazing land or pastureland acres of the 
specific type of grazing land or pastureland, by
    (ii) The normal carrying capacity of the specific type of eligible 
grazing land or pastureland; and
    (4) The number of days grazing was lost, not to exceed 150 calendar 
days during the normal grazing period for the specific type of grazing 
land.
    (l) Payments for an eligible livestock producer for grazing losses 
due to a wildfire on non-Federal land will be calculated based on the 
applicable national payment rate, as determined in Sec.  1416.109, 
multiplied by:
    (1) The result of dividing:
    (i) The number of acres of grazing land or pastureland acres 
affected by the fire, by
    (ii) The normal carrying capacity of the specific type of eligible 
grazing land or pastureland; times
    (2) The daily value of grazing as calculated by FSA under this 
section; times
    (3) The number of days grazing was lost due to fire, not to exceed 
180 calendar days;
    (m) If a participant, during the normal grazing period for the 
eligible grazing land, claims both an eligible loss resulting from the 
additional cost of purchasing additional livestock feed above normal 
quantities, as calculated in paragraph (a)(3) of this section, and an 
eligible grazing loss, as calculated in paragraphs (g) or (l) of this 
section, then the participant may receive no more than the larger of 
the value of the loss resulting from the:
    (1) Additional cost of purchasing additional livestock feed, as 
calculated in paragraph (a)(3) of this section; or
    (2) Grazing loss, as determined in:
    (i) Paragraph (g) of this section, for losses due to an eligible 
adverse weather or eligible loss condition, except wildfires on non-
Federal lands, or
    (ii) Paragraph (l) of this section, for losses due to wildfires on 
non-Federal lands.
    (n) Payments for an eligible livestock producer for eligible 
livestock death losses will be based on the applicable national payment 
rate, as determined in Sec.  1416.109, multiplied by the result in 
paragraph (n)(1) of this section.
    (1) Payments will be calculated by multiplying:
    (i) The livestock payment rate for each livestock category, times
    (ii) The number of eligible livestock that died in each category as 
a result of an eligible loss condition in excess of normal mortality, 
as determined in paragraph (n)(2) of this section;
    (2) Normal mortality for each livestock category as determined by 
FSA on a statewide basis using local data sources including, but not 
limited to, State livestock organizations and the Cooperative Extension 
Service for the State.
    (3) The livestock payment rates to be used in the calculation for 
paragraph (n)(1) of this section for eligible livestock owners and 
eligible livestock contract growers are:
    (i) A livestock payment rate for eligible livestock owners that is 
based on the average fair market value of the applicable livestock as 
computed using nationwide prices for the previous program year unless 
some other price is approved by the Deputy Administrator.
    (ii) A livestock payment rate for eligible livestock contract 
growers that is based on the relevant average income loss sustained by 
the contract grower, with respect to the dead livestock.
    (o) Payments calculated in this section are subject to the 
adjustments and limits provided for in this part.


Sec.  1416.111  Honeybee payment calculations.

    (a) An eligible honeybee producer may receive payments for eligible 
honeybee feed losses, as specified in Sec.  1416.103(h), based on a 
national payment rate, as determined in

[[Page 21108]]

Sec.  1416.109, multiplied by the producer's actual cost for honeybee 
feed that was:
    (1) Damaged or destroyed due to an eligible adverse weather or 
eligible loss condition, as specified in Sec.  1416.103(h)(1); and
    (2) Purchased, above normal, to maintain the honeybees during an 
eligible adverse weather or eligible loss condition until additional 
honeybee feed becomes available, as specified in Sec.  1416.103(h)(2);
    (b) An eligible honeybee producer may receive payments for eligible 
honeybee colony losses, as specified in Sec.  1416.103(i), based on a 
national payment rate, as determined in Sec.  1416.109(b), multiplied 
by:
    (1) Average fair market value of the honeybee colonies as computed 
using nationwide prices unless some other price data is approved for 
use by the Deputy Administrator; and
    (2) Number of eligible honeybee colonies that were damaged or 
destroyed due to an eligible adverse weather or eligible loss 
condition, in excess of normal honeybee mortality, as determined by the 
Deputy Administrator.
    (c) An eligible honeybee producer may receive payments for eligible 
honeybee hive losses, as specified in Sec.  1416.103(i), based on a 
national payment rate, as determined in Sec.  1416.109, multiplied by:
    (1) Average fair market value for honeybee hives as computed using 
nationwide prices unless some other price data is approved for use by 
the Deputy Administrator; and
    (2) Number of honeybee hives that were damaged or destroyed due to 
an eligible adverse weather or eligible loss condition.
    (d) Payments calculated in this section are subject to the 
adjustments and limits provided for in this part.


Sec.  1416.112  Farm-raised fish payment calculations.

    (a) An eligible farm-raised fish producer may receive payments for 
fish feed losses due to an eligible adverse weather or eligible loss 
condition, as specified in Sec.  1416.103(h), based on a national 
payment rate, as determined in Sec.  1416.109, multiplied by the 
producer's actual cost for the fish feed that was:
    (1) Damaged or destroyed due to an eligible adverse weather or 
eligible loss condition, as specified in Sec.  1416.103(h)(1); and
    (2) Purchased, above normal, to maintain the farm-raised fish 
during an eligible adverse weather or eligible loss condition until 
additional farm-raised fish feed becomes available, as specified in 
Sec.  1416.103(h)(2).
    (b) An eligible producer of farm-raised fish may receive payments 
for death losses of farm-raised fish due to an eligible adverse weather 
or eligible loss condition, as specified in Sec.  1416.103(j), based on 
a national payment rate, as determined in Sec.  1416.109, multiplied 
by:
    (1) Average fair market value of the bait fish, game fish, or other 
aquatic species, as determined by the Deputy Administrator, that died 
as a direct result of an eligible adverse weather or eligible loss 
condition, as computed using nationwide prices unless some other price 
data is approved for use by the Deputy Administrator; and
    (2) Number of eligible bait fish, game fish, or other aquatic 
species, as determined by the Deputy Administrator, that died as a 
result of an eligible adverse weather or loss condition, in excess of 
normal mortality, as determined by the Deputy Administrator.
    (c) Payments calculated in this section or elsewhere with respect 
to ELAP are subject to the adjustments and limits provided for in this 
part and are also subject to the payment limitations and average 
adjusted gross income limitations that are contained in part 1400 of 
this chapter.

Subpart C--Livestock Forage Disaster Program


Sec.  1416.201  Applicability.

    (a) This subpart establishes the terms and conditions under which 
the Livestock Forage Disaster Program (LFP) will be administered.
    (b) Eligible livestock producers will be compensated for eligible 
grazing losses for covered livestock that occur due to a qualifying 
drought or fire that occurs:
    (1) On or after October 1, 2011, and
    (2) In the calendar year for which benefits are being requested.


Sec.  1416.202  Definitions.

    The following definitions apply to this subpart and to the 
administration of LFP. The definitions in parts 718 of this title and 
1400 of this chapter also apply, except where they conflict with the 
definitions in this section.
    Adult beef bull means a male beef breed bovine animal that was at 
least 2 years old and used for breeding purposes on or before the 
beginning date of a qualifying drought or fire.
    Adult beef cow means a female beef breed bovine animal that had 
delivered one or more offspring. A first-time bred beef heifer is also 
considered an adult beef cow if it was pregnant on or before the 
beginning date of a qualifying drought or fire.
    Adult buffalo and beefalo bull means a male animal of those breeds 
that was at least 2 years old and used for breeding purposes on or 
before the beginning date of a qualifying drought or fire.
    Adult buffalo and beefalo cow means a female animal of those breeds 
that had delivered one or more offspring. A first-time bred buffalo or 
beefalo heifer is also considered an adult buffalo or beefalo cow if it 
was pregnant on or before the beginning date of a qualifying drought or 
fire.
    Adult dairy bull means a male dairy breed bovine animal at least 2 
years old used primarily for breeding dairy cows on or before the 
beginning date of a qualifying drought or fire.
    Adult dairy cow means a female dairy breed bovine animal used for 
the purpose of providing milk for human consumption that had delivered 
one or more offspring. A first-time bred dairy heifer is also 
considered an adult dairy cow if it was pregnant on or before the 
beginning date of a qualifying drought or fire.
    Agricultural operation means a farming operation.
    Application means the ``Livestock Forage Disaster Program'' form.
    Commercial use means used in the operation of a business activity 
engaged in as a means of livelihood for profit by the eligible 
livestock producer.
    Contract means, with respect to contracts for the handling of 
livestock, a written agreement between a livestock owner and another 
individual or entity setting the specific terms, conditions, and 
obligations of the parties involved regarding the production of 
livestock or livestock products.
    Covered livestock means livestock of an eligible livestock producer 
that, during the 60 days prior to the beginning date of a qualifying 
drought or fire, the eligible livestock producer owned, leased, 
purchased, entered into a contract to purchase, was a contract grower 
of, or sold or otherwise disposed of due to a qualifying drought during 
the current production year. It includes livestock that the producer 
otherwise disposed of due to drought in one or both of the two 
production years immediately preceding the current production year as 
determined by the Secretary. Notwithstanding the foregoing portions of 
this definition, covered livestock for ``contract growers'' will not 
include livestock in feedlots. ``Contract growers'' under LFP will only 
include producers of livestock not in feedlots whose income is 
dependent on the actual weight gain and survival of the livestock.

[[Page 21109]]

    Equine animal means a domesticated horse, mule, or donkey.
    Farming operation means a business enterprise engaged in producing 
agricultural products.
    Federal Agency means, with respect to the control of grazing land, 
an agency of the federal government that manages rangeland on which 
livestock is generally permitted to graze. For the purposes of this 
section, it includes, but is not limited to, the U.S. Department of the 
Interior (DOI) Bureau of Indian Affairs (BIA), DOI Bureau of Land 
Management (BLM), and USDA Forest Service (FS).
    Goat means a domesticated, ruminant mammal of the genus Capra, 
including Angora goats.
    Non-adult beef cattle means a beef breed bovine animal that weighed 
500 pounds or more on or before the beginning date of a qualifying 
drought or fire but that does not meet the definition of adult beef cow 
or bull.
    Non-adult buffalo or beefalo means an animal of those breeds that 
weighed 500 pounds or more on or before the beginning date of a 
qualifying drought or fire, but does not meet the definition of adult 
buffalo or beefalo cow or bull.
    Non-adult dairy cattle means a bovine animal, of a breed used for 
the purpose of providing milk for human consumption, that weighed 500 
pounds or more on or before the beginning date of a qualifying drought 
or fire, but that does not meet the definition of adult dairy cow or 
bull.
    Normal carrying capacity means, with respect to each type of 
grazing land or pastureland in a county, the normal carrying capacity 
that would be expected from the grazing land or pastureland for 
livestock during the normal grazing period in the county, in the 
absence of a drought or fire that diminishes the production of the 
grazing land or pastureland.
    Normal grazing period means, with respect to a county, the normal 
grazing period during the calendar year with respect to each specific 
type of grazing land or pastureland in the county served by the 
applicable county committee.
    Owner means one who had legal ownership of the livestock for which 
benefits are being requested during the 60 days prior to the beginning 
of a qualifying drought or fire.
    Poultry means a domesticated chicken, turkey, duck, or goose. 
Poultry are further delineated by sex, age, and purpose of production, 
as determined by FSA.
    Sheep means a domesticated, ruminant mammal of the genus Ovis.
    Swine means a domesticated omnivorous pig, hog, or boar.
    U.S. Drought Monitor is a system for classifying drought severity 
according to a range of abnormally dry to exceptional drought. It is a 
collaborative effort between Federal and academic partners, produced on 
a weekly basis, to synthesize multiple indices, outlooks, and drought 
impacts on a map and in narrative form. This synthesis of indices is 
reported by the National Drought Mitigation Center at http://droughtmonitor.unl.edu.


Sec.  1416.203  Eligible livestock producer.

    (a) To be considered an eligible livestock producer, the eligible 
producer on a farm must:
    (1) During the 60 days prior to the beginning date of a qualifying 
drought or fire, own, cash or share lease, or be a contract grower of 
covered livestock.
    (2) Provide pastureland or grazing land for covered livestock, 
including cash-leased pastureland or grazing land, that is:
    (i) Physically located in a county affected by a qualifying drought 
during the normal grazing period for the county, or
    (ii) Rangeland managed by a Federal agency for which the otherwise 
eligible livestock producer is prohibited by the Federal agency from 
grazing the normal permitted livestock due to a qualifying fire.
    (b) The eligible livestock producer must have certified that the 
livestock producer has suffered a grazing loss due to a qualifying 
drought or fire to be eligible for LFP payments.
    (c) An eligible livestock producer does not include any owner, cash 
or share lessee, or contract grower of livestock that rents or leases 
pastureland or grazing land owned by another person on a rate-of-gain 
basis. (That is, where the lease or rental agreement calls for payment 
based in whole or in part on the amount of weight gained by the animals 
that use the pastureland or grazing land.)
    (d) A producer seeking payment must not be prohibited from 
receiving these benefits as a result of the restrictions applicable to 
foreign persons contained in Sec.  1416.3(b) and must meet all other 
requirements of subpart A of this part and other applicable USDA 
regulations.
    (e) If a contract grower is an eligible livestock producer for 
covered livestock, the owner of that livestock is not eligible for 
payment.


Sec.  1416.204  Covered livestock.

    (a) To be considered covered livestock for LFP payments, livestock 
must meet all the following conditions:
    (1) Be adult or non-adult beef cattle, adult or non-adult beefalo, 
adult or non-adult buffalo, adult or non-adult dairy cattle, alpacas, 
deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep, or 
swine;
    (2) Be livestock that would normally have been grazing the eligible 
grazing land or pastureland:
    (i) During the normal grazing period for the specific type of 
grazing land or pastureland for the county during the qualifying 
drought; or
    (ii) When the Federal agency prohibited the eligible livestock 
producer from using the managed rangeland for grazing due to a fire;
    (3) Be livestock that the eligible livestock producer:
    (i) During the 60 days prior to the beginning date of a qualifying 
drought or fire:
    (A) Owned,
    (B) Leased,
    (C) Purchased,
    (D) Entered into a contract to purchase, or
    (E) Was a contract grower of; or
    (ii) Sold or otherwise disposed of due to qualifying drought 
during:
    (A) The current production year, or
    (B) 1 or both of the 2 production years immediately preceding the 
current production year;
    (4) Been maintained for commercial use as part of the producer's 
farming operation on the beginning date of the qualifying drought or 
fire;
    (5) Not have been produced and maintained for reasons other than 
commercial use as part of a farming operation. Such excluded uses 
include, but are not limited to, any uses of wild free roaming animals 
or use of the animals for recreational purposes, such as pleasure, 
roping, hunting, pets, or for show; and
    (6) Not have been livestock that were or would have been in a 
feedlot, on the beginning date of the qualifying drought or fire, as a 
part of the normal business operation of the eligible livestock 
producer, as determined by the Secretary.
    (b) The covered livestock categories are:
    (1) Adult beef cows or bulls,
    (2) Adult buffalo or beefalo cows or bulls,
    (3) Adult dairy cows or bulls,
    (4) Alpacas,
    (5) Deer,
    (6) Elk,
    (7) Emu,
    (8) Equine,
    (9) Goats,
    (10) Llamas,
    (11) Non-adult beef cattle,
    (12) Non-adult buffalo or beefalo,
    (13) Non-adult dairy cattle,
    (14) Poultry,

[[Page 21110]]

    (15) Reindeer,
    (16) Sheep, and
    (17) Swine.
    (c) Livestock that are not covered include, but are not limited to:
    (1) Livestock that were or would have been in a feedlot, on the 
beginning date of the qualifying drought or fire, as a part of the 
normal business operation of the eligible livestock producer, as 
determined by the Secretary;
    (2) Yaks;
    (3) Ostriches;
    (4) All beef and dairy cattle, and buffalo and beefalo that weighed 
less than 500 pounds on the beginning date of the qualifying drought or 
fire;
    (5) Any wild free roaming livestock, including horses and deer; and
    (6) Livestock produced or maintained for reasons other than 
commercial use as part of a farming operation, including, but not 
limited to, livestock produced or maintained for recreational purposes, 
such as:
    (i) Roping,
    (ii) Hunting,
    (iii) Show,
    (iv) Pleasure,
    (v) Use as pets, or
    (vi) Consumption by owner.


Sec.  1416.205  Eligible grazing losses.

    (a) A grazing loss due to drought is eligible for LFP only if the 
grazing loss for the covered livestock occurs on land that:
    (1) Is native or improved pastureland with permanent vegetative 
cover, or
    (2) Is planted to a crop planted specifically for the purpose of 
providing grazing for covered livestock, as reported on the producer's 
acreage report, including crops such as forage sorghum or small grains, 
but not including corn stalks or grain sorghum stalks; and
    (3) Is grazing land or pastureland that is owned or leased by the 
eligible livestock producer that is physically located in a county that 
is, during the normal grazing period for the specific type of grazing 
land or pastureland for the county, rated by the U.S. Drought Monitor 
as having a:
    (i) D2 (severe drought) intensity in any area of the county for at 
least 8 consecutive weeks during the normal grazing period for the 
specific type of grazing land or pastureland for the county, as 
determined by the Secretary, or
    (ii) D3 (extreme drought) or D4 (exceptional drought) intensity in 
any area of the county at any time during the normal grazing period for 
the specific type of grazing land or pastureland for the county, as 
determined by the Secretary. (As specified elsewhere in this subpart, 
the amount of potential payment eligibility will be higher than under 
paragraph (a)(3)(i) of this section where the D4 trigger applies or 
where the D3 condition as determined by the Secretary lasts at least 4 
weeks during the normal grazing period for the specific type of grazing 
land or pastureland for the county.)
    (b) A grazing loss is not eligible for LFP if:
    (1) The grazing loss due to drought on land used for haying or 
grazing under the Conservation Reserve Program established under 
subchapter B of chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3831-3835a), or
    (2) The grazing loss occurs on irrigated land, unless the irrigated 
land has not been irrigated in the program year for which benefits are 
being requested due to lack of water that is beyond the participant's 
control.
    (c) A grazing loss due to fire qualifies for LFP only if:
    (1) The grazing loss occurs on rangeland that is managed by a 
Federal agency and
    (2) The eligible livestock producer is prohibited by the Federal 
agency from grazing the normal permitted livestock on the managed 
rangeland due to a fire.


Sec.  1416.205  Application for payment.

    (a) To apply for LFP, the participant that suffered eligible 
grazing losses:
    (1) On or after October 1, 2011, and on or before December 31, 
2014, must submit a completed application for payment and required 
supporting documentation as specified in this part to the 
administrative FSA county office no later than January 30, 2015; or
    (2) On or after January 1, 2015, must submit a completed 
application for payment and required supporting documentation to the 
administrative FSA county office no later than 30 calendar days after 
the end of the calendar year in which the grazing loss occurred.
    (b) A participant must also provide a copy of the grower contract, 
if a contract grower, and other supporting documents required for 
determining eligibility as an applicant at the time the participant 
submits the completed application for payment. Supporting documents 
must include:
    (1) Evidence of loss;
    (2) Current physical location of livestock in inventory;
    (3) Evidence that grazing land or pastureland is owned or leased;
    (4) A report of acreage according to part 718 of this title for the 
grazing lands incurring losses for which assistance is being requested 
under this subpart;
    (5) Adequate proof, as determined by FSA that the grazing loss:
    (i) Was for the covered livestock;
    (ii) If the loss of grazing occurred as the result of a fire, that 
the:
    (A) Loss was due to a fire, and
    (B) Participant was prohibited by the Federal agency from grazing 
the normal permitted livestock on the managed rangeland due to a fire;
    (iii) Occurred on or after October 1, 2011; and
    (iv) Occurred in the calendar year for which payments are being 
requested;
    (6) A farm operating plan, if a current farm operating plan is not 
already on file in the FSA county office; and
    (7) Any other supporting documentation as determined by FSA to be 
necessary to make a determination of eligibility of the participant. 
Supporting documents include, but are not limited to: Verifiable 
purchase and sales records; grower contracts; veterinarian records; 
bank or other loan papers; rendering truck receipts; Federal Emergency 
Management Agency Records; National Guard records; written contracts; 
production records; private insurance documents; sales records; and 
similar documents determined acceptable to FSA.
    (c) Data furnished by the participant will be used to determine 
eligibility for program benefits. Furnishing the data is voluntary; 
however, without all required data, program benefits will not be 
approved or provided.


Sec.  1416.207  Payment calculation.

    (a) An eligible livestock producer will be eligible to receive 
payments for grazing losses for qualifying drought as specified in 
Sec.  1416.205(a), calculated as specified in paragraphs (e) or (f) of 
this section. Total LFP payments to an eligible livestock producer in a 
calendar year for grazing losses due to qualifying drought will not 
exceed 5 monthly payments for the same livestock. Payments calculated 
in this section or elsewhere with respect to LFP are subject to the 
adjustments and limits provided for in this part and are also subject 
to the payment limitations and average adjusted gross income provisions 
that are contained in subpart A of this part. Payment may only be made 
to the extent that eligibility is specifically provided for in this 
subpart. Hence, with respect to drought, payments will be made only as 
a ``1-month'' payment, a ``3-month'' payment, ``4-month'' payment, or a 
``5-month'' payment based on the provisions of paragraphs (b) through 
(e) of this section.
    (b) To be eligible to receive a 1-month payment, that is a payment 
equal to the

[[Page 21111]]

monthly feed cost as determined under paragraph (h) of this section, 
the eligible livestock producer must own or lease grazing land or 
pastureland that is physically located in a county that is rated by the 
U.S. Drought Monitor as having at least a D2 severe drought (intensity) 
in any area of the county for at least 8 consecutive weeks during the 
normal grazing period for the specific type of grazing land or 
pastureland in the county.
    (c) To be eligible to receive a 3-month payment, that is a payment 
equal to three times the monthly feed cost as determined under 
paragraph (h) of this section, the eligible livestock producer must own 
or lease grazing land or pastureland that is physically located in a 
county that is rated by the U.S. Drought Monitor as having at least a 
D3 (extreme drought) intensity in any area of the county at any time 
during the normal grazing period for the specific type of grazing land 
or pastureland for the county.
    (d) To be eligible to receive a 4-month payment, that is a payment 
equal to four times the monthly feed cost as determined under paragraph 
(h) of this section, the eligible livestock producer must own or lease 
grazing land or pastureland that is physically located in a county that 
is rated by the U.S. Drought Monitor as having at least a D3 (extreme 
drought) intensity in any area of the county for at least 4 weeks (not 
necessarily consecutive weeks) during the normal grazing period for the 
specific type of grazing land or pastureland for the county, or is 
rated as having a D4 (exceptional drought) intensity in any area of the 
county at any time during the normal grazing period for the specific 
type of grazing land or pastureland for the county.
    (e) To be eligible to receive a 5-month payment, that is a payment 
equal to five times the monthly feed cost as determined under paragraph 
(h) of this section, the eligible livestock producer must own or lease 
grazing land or pastureland that is physically located in a county that 
is rated by the U.S. Drought Monitor as having at least a D4 
(exceptional drought) in any area of the county for at least 4 weeks 
(not necessarily consecutive weeks) during the normal grazing period 
for the specific type of grazing land or pastureland for the county.
    (f) The monthly payment rate for LFP for grazing losses due to a 
qualifying drought, except as specified in paragraph (g) of this 
section, will be equal to 60 percent of the lesser of:
    (1) The monthly feed cost for all covered livestock owned or leased 
by the eligible livestock producer, as determined in paragraph (h) of 
this section, or
    (2) The monthly feed cost calculated by using the normal carrying 
capacity of the eligible grazing land of the eligible livestock 
producer, as determined in paragraph (j) of this section.
    (g) An eligible livestock producer cannot receive more than a 5-
month payment for the same covered livestock during the calendar year 
regardless of the number of drought intensity ratings the county 
receives; that is, the maximum payment an eligible livestock producer 
may receive under LFP in a calendar year cannot exceed 60 percent of 5 
times the same covered livestock's monthly feed cost.
    (h) In the case of an eligible livestock producer that sold or 
otherwise disposed of covered livestock due to a qualifying drought in 
1 or both of the 2 production years immediately preceding the current 
production year, the payment rate is 80 percent of the monthly payment 
rate calculated in paragraph (f) of this section.
    (i) The monthly feed cost for covered livestock equals the product 
obtained by multiplying:
    (1) 30 days;
    (2) A payment quantity equal to the amount referred to in paragraph 
(h) of this section as the ``feed grain equivalent'', as determined 
under paragraph (h) of this section; and
    (3) A payment rate equal to the corn price per pound, as determined 
in paragraph (i) of this section.
    (j) The feed grain equivalent equals, in the case of:
    (1) An adult beef cow, 15.7 pounds of corn per day or
    (2) In the case of any other type or weight of covered livestock, 
an amount determined by the Secretary that represents the average 
number of pounds of corn per day necessary to feed that specific type 
of livestock.
    (k) The corn price per pound equals the quotient calculated as 
follows:
    (1) The higher of:
    (i) The national average corn price per bushel for the 12-month 
period immediately preceding March 1 of the calendar year for which LFP 
payment is calculated, or
    (ii) The national average corn price per bushel for the 24-month 
period immediately preceding March 1 of the calendar year for which LFP 
payment is calculated,
    (2) Divided by 56.
    (l) The monthly feed cost using the normal carrying capacity of the 
eligible grazing land equals the product obtained by multiplying:
    (1) 30 days;
    (2) A payment quantity equal to the feed grain equivalent of 15.7 
pounds of corn per day;
    (3) A payment rate equal to the corn price per pound, as determined 
in paragraph (i) of this section; and
    (4) The number of animal units the eligible livestock producer's 
grazing land or pastureland can sustain during the normal grazing 
period in the county for the specific type of grazing land or 
pastureland, in the absence of a drought or fire, determined by 
dividing the:
    (i) Number of eligible grazing land or pastureland acres of the 
specific type of grazing land or pastureland, by
    (ii) The normal carrying capacity of the specific type of eligible 
grazing land or pastureland as determined under this subpart.
    (m) An eligible livestock producer will be eligible to receive 
payments for grazing losses due to a fire as specified in Sec.  
1416.205(c):
    (1) For the period, subject to paragraph (l)(2) of this section:
    (i) Beginning on the date on which the Federal Agency prohibits the 
eligible livestock producer from using the managed rangeland for 
grazing, and
    (ii) Ending on the earlier of the last day of the Federal lease of 
the eligible livestock producer or the day that would make the period a 
180 day period.
    (2) For grazing losses that occur on not more than 180 days per 
calendar year.
    (3) For 50 percent of the monthly feed cost, as determined under 
Sec.  1416.208(i), pro-rated to a daily rate, for the total number of 
livestock covered by the Federal lease of the eligible livestock 
producer.

Subpart D--Livestock Indemnity Program


Sec.  1416.301  Applicability.

    (a) This subpart establishes the terms and conditions under which 
the Livestock Indemnity Program (LIP) will be administered under Title 
I of the 2014 Farm Bill (Pub. L. 113-79).
    (b) Eligible livestock owners and contract growers will be 
compensated in accordance with Sec.  1416.306 for eligible livestock 
deaths in excess of normal mortality that occurred in the calendar year 
for which benefits are being requested as a direct result of an 
eligible adverse weather event or attacks by animals reintroduced into 
the wild by the Federal Government or protected by Federal law, 
including wolves and avian predators. The eligible adverse weather 
event, is one, as determined by the Secretary, that occurs in the 
program year that directly results in the death of

[[Page 21112]]

livestock despite the livestock producer's performance of expected and 
normal preventative or corrective measures and good farming practices. 
Because feed can be purchased or otherwise obtained in the event of a 
drought, drought is not an eligible adverse weather event except when 
anthrax, which is exacerbated by drought, causes the death of eligible 
livestock.


Sec.  1416.302  Definitions.

    The following definitions apply to this subpart. The definitions in 
parts 718 of this title and 1400 of this chapter also apply, except 
where they conflict with the definitions in this section.
    Actual livestock beginning inventory means the actual livestock 
beginning inventory per calendar year for calves or lambs that is 
calculated from the verifiable or reliable records of death, birthing, 
docking, inventory, and sales in an open range operation.
    Adjusted livestock beginning inventory means the livestock 
beginning inventory history for calves or lambs on the open range that 
will be adjusted during the base period for years for which continuous 
actual livestock beginning inventory history records are not provided.
    Adult beef bull means a male beef breed bovine animal that was at 
least 2 years old and used for breeding purposes before it died.
    Adult beef cow means a female beef breed bovine animal that had 
delivered one or more offspring before dying. A first-time bred beef 
heifer is also considered an adult beef cow if it was pregnant at the 
time it died.
    Adult buffalo and beefalo bull means a male animal of those breeds 
that was at least 2 years old and used for breeding purposes before it 
died.
    Adult buffalo and beefalo cow means a female animal of those breeds 
that had delivered one or more offspring before dying. A first-time 
bred buffalo or beefalo heifer is also considered an adult buffalo or 
beefalo cow if it was pregnant at the time it died.
    Adult dairy bull means a male dairy breed bovine animal at least 2 
years old used primarily for breeding dairy cows before it died.
    Adult dairy cow means a female bovine dairy breed animal used for 
the purpose of providing milk for human consumption that had delivered 
one or more offspring before dying. A first-time bred dairy heifer is 
also considered an adult dairy cow if it was pregnant at the time it 
died.
    Agricultural operation means a farming operation.
    Application means the ``Livestock Indemnity Program'' form.
    Approved livestock beginning inventory means the approved livestock 
beginning inventory for calves or lambs on the open range, calculated 
by the sum of the yearly actual and transitional livestock beginning 
inventory history divided by the number of years of livestock beginning 
inventory history.
    Base period means the five consecutive calendar years immediately 
preceding the calendar year of the LIP application for which the 
approved livestock beginning inventory is being established for the 
open range calf or lambing operation.
    Buck means a male goat.
    CCC means Commodity Credit Corporation.
    Commercial use means used in the operation of a business activity 
engaged in as a means of livelihood for profit by the eligible 
producer.
    Continuous livestock beginning inventory reports means livestock 
beginning inventory reports submitted by a producer for each calendar 
year that the producer was involved in the livestock open range 
operation.
    Contract means, with respect to contracts for the handling of 
livestock, a written agreement between a livestock owner and another 
individual or entity setting the specific terms, conditions, and 
obligations of the parties involved regarding the production of 
livestock or livestock products.
    Cow/Ewe Livestock Beginning Inventory History means, the applicable 
calendar year cow or ewe verifiable livestock beginning inventory 
records provided to FSA by the open range livestock operation to be 
used in calculating the transitional livestock beginning inventory 
history.
    Deputy Administrator or DAFP means the Deputy Administrator for 
Farm Programs, Farm Service Agency, U.S. Department of Agriculture or 
the designee.
    Equine animal means a domesticated horse, mule, or donkey.
    Eligible adverse weather event means an extreme or abnormal 
damaging weather event that is not expected to occur during the loss 
period for which it occurred, which results in eligible livestock death 
losses in excess of normal mortality. Eligible adverse weather events 
include, but are not limited to, as determined by the Deputy 
Administrator or designee, earthquake; lightning; tornado; tropical 
storm; typhoon; vog if directly related to a volcanic eruption; winter 
storm if the winter storm last for three consecutive days and is 
accompanied by high winds, freezing rain or sleet, heavy snowfall, and 
extremely cold temperatures; hurricanes; floods; blizzards; wildfires; 
extreme heat; extreme cold; and anthrax; and disease if exacerbated by 
another eligible adverse weather event.
    Ewe means a female sheep.
    Farming operation means a business enterprise engaged in producing 
agricultural products.
    FSA means the Farm Service Agency.
    Goat means a domesticated, ruminant mammal of the genus Capra, 
including Angora goats. Goats are further defined by sex (bucks and 
nannies) and age (kids).
    Kid means a goat less than 1 year old.
    Lamb means a sheep less than 1 year old.
    Livestock beginning inventory history (LBIH) means a minimum of 
four, up to a maximum of five, calendar years of actual and 
transitional beginning inventory records used to calculate the approved 
livestock beginning inventory history for a calf or lamb open range 
livestock operation.
    LBIH reporting date means the LBIH reporting date for which the 
reports will be accepted for inclusion in the base period for the 
current calendar year
    Livestock inventory report means a written record showing the 
producer's annual inventory used to determine the livestock beginning 
inventory history for LIP purposes for the open range calf or lamb open 
range livestock operation. The report contains livestock beginning 
inventory history by open range livestock operation by livestock type 
or kind.
    Livestock owner means one having legal ownership of the livestock 
for which benefits are being requested on the day such livestock died.
    Nanny means a female goat.
    Non-adult beef cattle means a beef breed bovine animal that does 
not meet the definition of adult beef cow or bull. Non-adult beef 
cattle are further delineated by weight categories of either less than 
400 pounds or 400 pounds or more at the time they died.
    Non-adult buffalo or beefalo means an animal of those breeds that 
does not meet the definition of adult buffalo or beefalo cow or bull. 
Non-adult buffalo or beefalo are further delineated by weight 
categories of either less than 400 pounds or 400 pounds or more at the 
time of death.
    Non-adult dairy cattle means a dairy breed bovine animal, of a 
breed used for the purpose of providing milk for human consumption, 
that do not meet the definition of adult dairy cow or bull. Non-adult 
dairy cattle are further delineated by weight categories of either less 
than 400 pounds or 400 pounds or more at the time they died.

[[Page 21113]]

    Normal mortality means the numerical amount, computed by a 
percentage, as established for the area by the FSA State Committee, of 
expected livestock deaths, by category, that normally occur during a 
calendar year for a producer.
    Open range operation means livestock production that takes place on 
large parcels of land where the livestock are not gathered into pens, 
sheds, or other small areas such that accurate overall inventory and 
resulting death tallies cannot be completed without a round-up, as 
determined by the Deputy Administrator.
    Poultry means domesticated chickens, turkeys, ducks, and geese. 
Poultry are further delineated by sex, age, and purpose of production 
as determined by FSA.
    Ram means a male sheep.
    Secretary means the Secretary of Agriculture or a designee of the 
Secretary.
    Sheep means a domesticated, ruminant mammal of the genus Ovis. 
Sheep are further defined by sex (rams and ewes) and age (lambs) for 
purposes of dividing into categories for loss calculations.
    State committee, State office, county committee, or county office 
means the respective FSA committee or office.
    Swine means a domesticated omnivorous pig, hog, or boar. Swine for 
purposes of dividing into categories for loss calculations are further 
delineated by sex and weight as determined by FSA.
    Transitional livestock beginning inventory history for offspring 
(calves/lambs) means an estimated livestock beginning inventory 
history, generally determined by multiplying the livestock open range 
operation's beginning cow or ewe livestock beginning inventory history 
by the national established birthing rate percentage of 90 percent for 
calves and 160 percent for lambs. The Deputy Administrator has the 
authority to make adjustments as necessary. It is to be used in the 
transitional livestock beginning inventory history calculation process 
when less than 4 consecutive calendar years of actual livestock 
beginning inventory history is available.
    United States means all fifty States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, and any other 
territory or possession of the United States.
    Winter storm means a storm that is severe as to cause fatal injury 
to livestock and lasts in duration for at least three consecutive days 
and is accompanied by high winds, freezing rain or sleet, heavy 
snowfall, and extremely cold temperatures.


Sec.  1416.303  Eligible owners and contract growers.

    (a) In addition, to other eligibility rules that may apply, to be 
eligible as a:
    (1) Livestock owner for benefits with respect to the death of an 
animal under this subpart, the applicant must have had legal ownership 
of the eligible livestock on the day the livestock died and under 
conditions in which no contract grower could have been eligible for 
benefits with respect to the animal. Eligible types of animal 
categories for which losses can be calculated for an owner are 
specified in Sec.  1416.304(a).
    (2) Contract grower for benefits with respect to the death of an 
animal, the animal must be in one of the categories specified on Sec.  
1416.304(b), and the contract grower must have had,
    (i) A written agreement with the owner of eligible livestock 
setting the specific terms, conditions, and obligations of the parties 
involved regarding the production of livestock;
    (ii) Control of the eligible livestock on the day the livestock 
died; and
    (iii) A risk of loss in the animal.
    (b) A producer seeking payment must not be ineligible under the 
restrictions applicable to foreign persons contained in Sec.  1416.3(b) 
and must meet all other requirements of subpart A of this part and 
other applicable USDA regulations.


Sec.  1416.304  Eligible livestock.

    (a) To be considered eligible livestock for livestock owners, the 
kind of livestock must be alpacas, adult or non-adult dairy cattle, 
beef cattle, buffalo, beefalo, elk, emus, equine, llamas, sheep, goats, 
swine, poultry, deer, or reindeer and meet all the conditions in 
paragraph (c) of this section.
    (b) To be considered eligible livestock for contract growers, the 
kind of livestock must be poultry or swine and meet all the conditions 
in paragraph (c) of this section.
    (c) To be considered eligible livestock for the purpose of 
generating payments under this subpart, livestock must meet all of the 
following conditions:
    (1) Died as a direct result of an eligible adverse weather event or 
attacks by animals reintroduced into the wild by the Federal Government 
or protected by Federal law, including wolves and avian predators:
    (i) On or after October 1, 2011,
    (ii) No later than 60 calendar days from the ending date of the 
eligible adverse weather event, or the date of the attack by animals 
reintroduced into the wild by the Federal Government or protected by 
Federal law, including wolves and avian predators, and
    (iii) In the calendar year for which benefits are being requested;
    (2) Been maintained for commercial use as part of a farming 
operation on the day they died; and
    (3) Before dying, not have been produced or maintained for reasons 
other than commercial use as part of a farming operation, such non-
eligible uses being understood to include, but not be limited to, any 
uses of wild free roaming animals or use of the animals for 
recreational purposes, such as pleasure, hunting, roping, pets, or for 
show.
    (d) The following categories of animals owned by a livestock owner 
are eligible livestock and calculations of eligibility for payments 
will be calculated separately for each producer with respect to each 
category:
    (1) Adult beef bulls;
    (2) Adult beef cows;
    (3) Adult buffalo or beefalo bulls;
    (4) Adult buffalo or beefalo cows;
    (5) Adult dairy bulls;
    (6) Adult dairy cows;
    (7) Alpacas;
    (8) Chickens, broilers, pullets;
    (9) Chickens, chicks;
    (10) Chickens, layers, roasters;
    (11) Deer;
    (12) Ducks;
    (13) Ducks, ducklings;
    (14) Elk;
    (15) Emus;
    (16) Equine;
    (17) Geese, goose;
    (18) Geese, gosling;
    (19) Goats, bucks;
    (20) Goats, nannies;
    (21) Goats, kids;
    (22) Llamas;
    (23) Non-adult beef cattle;
    (24) Non-adult buffalo or beefalo;
    (25) Non-adult dairy cattle;
    (26) Reindeer;
    (27) Sheep, ewes;
    (28) Sheep, lambs;
    (29) Sheep, rams;
    (30) Swine, feeder pigs under 50 pounds;
    (31) Swine, sows, boars, barrows, gilts 50 to 150 pounds;
    (32) Swine, sows, boars, barrows, gilts over 150 pounds;
    (33) Turkeys, poults; and
    (34) Turkeys, toms, fryers, and roasters.
    (e) The following categories of animals are eligible livestock for 
contract growers and calculations of eligibility for payments will be 
calculated separately for each producer with respect to each category:
    (1) Chickens, broilers, pullets;
    (2) Chickens, layers, roasters;
    (3) Geese, goose;
    (4) Swine, boars, sows;

[[Page 21114]]

    (5) Swine, feeder pigs;
    (6) Swine, lightweight barrows, gilts;
    (7) Swine, sows, boars, barrows, gilts; and
    (8) Turkeys, toms, fryers, and roasters.
    (f) The following livestock are considered to be ineligible 
livestock for the purpose of generating payments under this subpart:
    (1) Livestock that have died due to disease where the disease was 
not exacerbated by an eligible adverse weather event. Diseases that can 
be prevented by implementing and following acceptable management 
practices, such as vaccination, are not considered an eligible 
livestock death loss under LIP. Livestock that die as a result of the 
disease are not eligible for payment to be generated under LIP when the 
disease has been determined to not have been exacerbated by an eligible 
adverse weather event and vaccination or acceptable management 
practices can or have been implemented to prevent such disease. Before 
COC approves LIP applications for payment for disease, COC through STC, 
must request determination from the Deputy Administrator or designee 
whether the specific disease is a disease that is exacerbated by an 
eligible adverse weather event.


Sec.  1416.305  Application process.

    (a) A producer or contract grower that suffered livestock losses 
that creates or could create a claim for benefits must:
    (1) For losses on or after October 1, 2011, and before January 1, 
2015, provide a notice of loss and application for payment to FSA no 
later than January 30, 2015.
    (2) For 2015 calendar year and subsequent year losses, provide a 
notice of loss to FSA within the earlier of:
    (i) 30 calendar days of when the loss of livestock is apparent to 
the participant or
    (ii) 30 calendar days after the end of the calendar year in which 
the loss of livestock occurred.
    (3) The participant must submit the notice of loss required in 
paragraphs (a)(1) and (2) of this section to the FSA administrative 
county office that maintains the participant's farm records for the 
agricultural operation.
    (b) In addition to the notices of loss required in paragraph (a)(2) 
of this section, a participant must also submit a completed application 
for payment no later than 30 calendar days after the end of the 
calendar year in which the loss of livestock occurred.
    (c) A participant must also provide a copy of the grower contract, 
if a contract grower, and other supporting documents required for 
determining eligibility as an applicant at the time the participant 
submits the completed application for payment. Supporting documents 
must include:
    (1) Evidence of loss,
    (2) Current physical location of livestock in inventory,
    (3) Physical location of claimed livestock at the time of death,
    (4) Inventory numbers and other inventory information necessary to 
establish actual mortality as required by FSA,
    (5) A farm operating plan, if a current farm operating plan is not 
already on file in the FSA county office,
    (6) Documentation of the adverse weather event from an official 
weather reporting data source that is determined by FSA to be reputable 
and available in the public domain such as, but not limited to, NOAA, 
from which State and County FSA Offices can validate the adverse 
weather event occurred, and
    (7) Documentation to substantiate eligible animal attacks by 
animals or avian predators showing confirmation of the eligible animal 
or avian attack obtained from a source such as, but not limited to, the 
following:
    (i) APHIS,
    (ii) State level Department of Natural Resources, or
    (iii) Other sources or documentation, as determined by the Deputy 
Administrator.
    (8) The livestock producer may supplement additional documentation 
to support eligible adverse weather events and eligible attacks by 
animal or avian predators, as determined by the Deputy Administrator.
    (d) The participant must provide adequate proof that the death of 
the eligible livestock occurred as a direct result of an eligible 
adverse weather event or attacks by animals reintroduced into the wild 
by the Federal Government or protected by Federal law, including wolves 
and avian predators, in the calendar year for which benefits are 
requested. The quantity and kind of livestock that died as a direct 
result of the eligible adverse weather event during the calendar year 
for which benefits are being requested may be documented by: Purchase 
records; veterinarian records; bank or other loan papers; rendering-
plant truck receipts; Federal Emergency Management Agency records; 
National Guard records; written contracts; production records; Internal 
Revenue Service records; property tax records; private insurance 
documents; and other similar verifiable documents as determined by FSA.
    (e) If adequate verifiable proof of death documentation is not 
available, the participant may provide reliable records, in conjunction 
with verifiable beginning and ending inventory records, as proof of 
death. Reliable records may include contemporaneous producer records, 
dairy herd improvement records, brand inspection records, vaccination 
records, dated pictures, and other similar reliable documents as 
determined by FSA.
    (f) Certification of livestock deaths by third parties may be 
accepted if verifiable beginning and ending inventory data is available 
only if verifiable proof of death records or reliable proof of death 
records in conjunction with verifiable beginning and ending inventory 
records are not available and both of the following conditions are met:
    (1) The livestock owner or livestock contract grower, as 
applicable, certifies in writing:
    (i) That there is no other verifiable or reliable documentation of 
death available;
    (ii) The number of livestock, by category identified in this 
subpart and by FSA were in inventory at the time the eligible adverse 
weather event occurred;
    (iii) The physical location of the livestock, by category, in 
inventory when the deaths occurred; and
    (iv) Other details required for FSA to determine the certification 
acceptable; and
    (2) The third party is an independent source who is not affiliated 
with the farming operation such as a hired hand and is not a ``family 
member,'' defined as a person whom a member in the farming operation or 
their spouse is related as lineal ancestor, lineal descendant, sibling, 
spouse, and provides their telephone number, address, and a written 
statement containing specific details about:
    (i) Their knowledge of the livestock deaths;
    (ii) Their affiliation with the livestock owner;
    (iii) The accuracy of the deaths claimed by the livestock owner or 
contract grower including, but not limited to, the number and kind or 
type of the participant's livestock that died because of the eligible 
adverse weather event; and
    (iv) Other information required by FSA to determine the 
certification acceptable.
    (v) Data furnished by the participant and the third party will be 
used to determine eligibility for program benefits. Furnishing the data 
is voluntary; however, without all required data program benefits will 
not be approved or provided.

[[Page 21115]]

    (g) Calf and lamb open range livestock operations may provide proof 
of death by using the livestock beginning inventory history for 
reporting losses.
    (1) For 2015 and subsequent calendar years, livestock inventory 
reports must be provided to the local county FSA office no later than 
30 calendar days after the end of the calendar year for which reports 
will be accepted for inclusion in the base period for the current 
calendar year. For the 2011 through 2014 calendar years, producers have 
until January 30, 2015, to provide the applicable livestock inventory 
reports. The STC may approve a waiver of the reporting deadline if a 
participant has not previously received benefits under this method.
    (i) Livestock inventory reports must provide an accurate account of 
livestock beginning inventory for the open range livestock type or kind 
and must be supported by written verifiable records such as but not 
limited to: Docking records, sales receipts, shearing records, shipping 
records, bank records, veterinarian records, IRS records, or other 
records approved by COC. For purposes of determining beginning 
livestock inventory, livestock inventory reports may require adjustment 
by COC, not to exceed normal mortality, for when loss occurs at 
different points during the growing season (for example, inventories 
from docking may need little to no adjustment, but sales records at the 
end of the growing season may require an adjustment to account for a 
full years of normal mortality).
    (ii) The open range livestock operation must certify to the 
accuracy of the information.
    (2) The open range livestock operation is solely responsible for 
the timely submission and certification of accurate, complete livestock 
beginning inventory to the county FSA office. Livestock beginning 
inventory records must be provided for all livestock type or kind.
    (i) Records may be requested by the applicable COC or STC, on 
behalf of FSA. The open range livestock operation must provide such 
records upon request.
    (ii) The COC will explain the procedure for the livestock beginning 
inventory history to open range livestock operation. COC will determine 
the livestock beginning inventory history in accordance with Sec.  
1416.305(g).
    (iii) COC will determine if the livestock beginning inventory 
records are acceptable and calculate the approved livestock beginning 
inventory history.
    (3) The livestock beginning inventory history is calculated 
utilizing a minimum of 4 years of data and will be updated each 
subsequent inventory year. The transitional livestock beginning 
inventory history may contain a maximum of the 4 most recent calendar 
years and may include actual and transitional livestock beginning 
inventories. Transitional livestock beginning inventory history will 
only be used when less than 4 years of actual records are available. 
Appropriate adjustments to livestock beginning inventory history may be 
made to account for variations in ewe and cow stocking levels during 
the period covered by the history.
    (4) The open range livestock operation is required to provide 
beginning livestock inventory records to determine the livestock 
beginning inventory history, if livestock beginning inventory records 
are available.
    (i) If no acceptable livestock beginning inventory records are 
available for either calves or lambs, calculate the 4 transitional 
livestock beginning inventory histories by multiplying the approved 
birthing rate or drop rate percentage for the open range livestock 
operation times the applicable cow or ewe livestock beginning inventory 
history times 65 percent.
    (ii) If acceptable livestock beginning inventory records are 
provided for only one of the most recent 5 calendar years, calculate 
the 3 transitional livestock beginning inventory histories by 
multiplying the approved birthing rate or drop rate percentage for the 
open range livestock operation times the applicable cow or ewe 
livestock beginning inventory history times 80 percent.
    (iii) If acceptable livestock beginning inventory records are 
provided for only 2 of the most recent 5 calendar years, calculate the 
2 transitional livestock beginning inventory histories by multiplying 
the approved birthing rate or drop rate percentage for the open range 
livestock operation times the applicable cow or ewe livestock beginning 
inventory history times 90 percent.
    (iv) If acceptable livestock beginning inventory records are 
provided for only 3 of the most recent 5 calendar years, calculate the 
one transitional livestock beginning inventory histories by multiplying 
the approved birthing rate or drop rate percentage for the open range 
livestock operation times the applicable cow or ewe livestock beginning 
inventory history times 100 percent.
    (v) If acceptable livestock beginning inventory history records 
containing information for 4 or more of the most recent calendar years 
are provided, calculate the livestock beginning inventory history by 
taking a simple average of the actual livestock beginning inventory 
histories.
    (h) For livestock death losses that occurred on or after October 1, 
2011, and before January 1, 2015, livestock producers who cannot meet 
the criteria in paragraphs (d) through (g) of this section may provide 
acceptable documentation of proof of death and inventories according to 
the requirements in this paragraph (h).
    (1) Documents that may provide acceptable evidence of death 
include, but are not limited to, any or a combination of the following:
    (i) Contemporaneous producer records existing at the time of the 
event, such as, but not limited to: Personal diary listing births, 
deaths, unaccounted animals, and date of such event; personal diary of 
cowboy or herdsman showing animal care; calendar listing births, 
deaths, unaccounted animals, date livestock turned out on pasture; 
pictures with a date; brand inspection records; dairy herd improvement 
records; ear tag documentation or records; and other similar reliable 
documents. COC may require the livestock producer to file a third-party 
certification to support the contemporaneous records.
    (ii) Third-party certification according to paragraph (f) of this 
section, except that the third-party is not required to certify to the 
specific number of livestock.
    (2) Documents that may provide acceptable evidence of livestock 
inventory include, but are not limited to, any or a combination of the 
following:
    (i) Veterinary records;
    (ii) Canceled check documentation;
    (iii) Balance sheets;
    (iv) Inventory records used for tax purposes;
    (v) Loan records;
    (vi) Bank statements;
    (vii) Farm credit balance sheets;
    (viii) Property tax records;
    (xix) Trucking and/or livestock hauling records;
    (x) Brand inspection records;
    (xi) Sales and purchase receipts;
    (xii) Private insurance documents;
    (xiii) Chattel inspections;
    (xiv) IRS records such schedule F and depreciation schedules;
    (xv) Docking records;
    (xvi) Shearing records;
    (xvii) Ear tag records.
    (3) COC may compare livestock numbers and carrying capacity to 
acreage reports filed by a producer during the calendar year of loss to 
determine reasonableness.

[[Page 21116]]

    (4) COC must review all documentation provided by the producer and 
based upon review of the documentation provided by the producer and 
personal knowledge of the producer's livestock operation, determine 
whether the number of death losses reported by the livestock producer 
are reasonable and whether the application for payment should be 
approved.


Sec.  1416.306  Payment calculation.

    (a) Under this subpart, separate payment rates for eligible 
livestock owners and eligible livestock contract growers are specified 
in paragraphs (b) and (c) of this section, respectively. Payments for 
LIP are calculated by multiplying the national payment rate for each 
livestock category by the number of eligible livestock in excess of 
normal mortality in each category that died as a result of an eligible 
adverse weather event. Normal mortality for each livestock category 
will be determined by FSA on a State-by-State basis using local data 
sources including, but not limited to, State livestock organizations 
and the Cooperative Extension Service for the State. Adjustments will 
be applied as specified in paragraph (d) of this section.
    (b) The LIP national payment rate for eligible livestock owners is 
based on 75 percent of the average fair market value of the applicable 
livestock as computed using nationwide prices for the previous calendar 
year unless some other price is approved by the Deputy Administrator.
    (c) The LIP national payment rate for eligible livestock contract 
growers is based on 75 percent of the average income loss sustained by 
the contract grower with respect to the dead livestock.
    (d) The LIP payment calculated for eligible livestock contract 
growers will be reduced by the amount the participant received from the 
party who contracted with the producer to raise the livestock for the 
loss of income from the dead livestock.

Subpart E--Tree Assistance Program


Sec.  1416.400  Applicability.

    (a) This subpart establishes the terms and conditions under which 
the Tree Assistance Program (TAP) will be administered under Title I of 
the Agricultural Act of 2014 (Pub. L. 113-79, the 2014 Farm Bill).
    (b) Eligible orchardists and nursery tree growers will be 
compensated as specified in Sec.  1416.406 for eligible tree, bush, and 
vine losses in excess of 15 percent mortality, or, where applicable, 
damage in excess of 15 percent, adjusted for normal mortality and 
normal damage, that occurred in the calendar year (or loss period in 
the case of plant disease) for which benefits are being requested and 
as a direct result of a natural disaster.


Sec.  1416.401  Administration.

    The program will be administered as specified in Sec.  1416.2 and 
in this subpart.


Sec.  1416.402  Definitions.

    The following definitions apply to this subpart. The definitions in 
parts 718 of this title and 1400 of this chapter also apply, except 
where they conflict with the definitions in this section.
    Bush means, a low, branching, woody plant, from which at maturity 
of the bush, an annual fruit or vegetable crop is produced for 
commercial purposes, such as a blueberry bush. The definition does not 
cover plants that produce a bush after the normal crop is harvested 
such as asparagus.
    Commercial use means used in the operation of a business activity 
engaged in as a means of livelihood for profit by the eligible 
producer.
    County committee means the respective FSA committee.
    County office means the FSA or U.S. Department of Agriculture 
(USDA) Service Center that is responsible for servicing the farm on 
which the trees, bushes, or vines are located.
    Cutting means a piece of a vine which was planted in the ground to 
propagate a new vine for the commercial production of fruit, such as 
grapes, kiwi fruit, passion fruit, or similar fruit.
    Deputy Administrator or DAFP means the Deputy Administrator for 
Farm Programs, FSA, USDA, or the designee.
    Eligible nursery tree grower means a person or legal entity that 
produces nursery, ornamental, fruit, nut, or Christmas trees for 
commercial sale.
    Eligible orchardist means a person or legal entity that produces 
annual crops from trees, bushes, or vines for commercial purposes.
    FSA means the Farm Service Agency.
    Lost means, with respect to the extent of damage to a tree or other 
plant, that the plant is destroyed or the damage is such that it would, 
as determined by FSA, be more cost effective to replace the tree or 
other plant than to leave it in its deteriorated, low-producing state.
    Natural disaster means plant disease, insect infestation, drought, 
fire, freeze, flood, earthquake, lightning, or other natural occurrence 
of such magnitude or severity so as to be considered disastrous, as 
determined by the Deputy Administrator.
    Normal damage means the percentage, as established for the area by 
the FSA State Committee, of trees, bushes, or vines in the individual 
stand that would normally be damaged during a calendar year for a 
producer.
    Normal mortality means percentage, as established for the area by 
the FSA State Committee, of expected lost trees, bushes, or vines in 
the individual stand that normally occurs during a calendar year for a 
producer. This term refers to the number of whole trees, bushes, or 
vines that are destroyed or damaged beyond rehabilitation. Mortality 
does not include partial damage such as lost tree limbs.
    Seedling means an immature tree, bush, or vine that was planted in 
the ground or other growing medium to grow a new tree, bush, or vine 
for commercial purposes.
    Stand means a contiguous acreage of the same type of trees 
(including Christmas trees, ornamental trees, nursery trees, and potted 
trees), bushes (including shrubs), or vines.
    State committee means the respective FSA committee.
    Tree means a tall, woody plant having comparatively great height, 
and a single trunk from which an annual crop is produced for commercial 
purposes, such as a maple tree for syrup, papaya tree, or orchard tree. 
Trees used for pulp or timber are not considered eligible trees under 
this subpart.
    Vine means a perennial plant grown under normal conditions from 
which an annual fruit crop is produced for commercial market for human 
consumption, such as grape, kiwi, or passion fruit, and that has a 
flexible stem supported by climbing, twining, or creeping along a 
surface. Perennials that are normally propagated as annuals such as 
tomato plants, biennials such as the plants that produce strawberries, 
and annuals such as pumpkins, squash, cucumbers, watermelon, and other 
melons, are excluded from the term vine in this subpart.


Sec.  1416.403  Eligible losses.

    (a) To be considered an eligible loss under this subpart:
    (1) Eligible trees, bushes, or vines must have been lost or damaged 
as a result of natural disaster as determined by the Deputy 
Administrator;
    (2) The individual stand must have sustained a mortality loss or 
damage loss, as the case may be, in excess of 15 percent after 
adjustment for normal mortality or damage, to be determined based on:
    (i) Each eligible disaster event, except for losses due to plant 
disease;
    (ii) For plant disease, the time period, as determined by the 
Deputy

[[Page 21117]]

Administrator, for which the stand is infected.
    (3) The loss could not have been prevented through reasonable and 
available measures; and
    (4) The trees, bushes, or vines, in the absence of a natural 
disaster, would not normally have required rehabilitation or replanting 
within the 12-month period following the loss.
    (b) The damage or loss must be visible and obvious to the county 
committee representative. If the damage is no longer visible, the 
county committee may accept other evidence of the loss as it determines 
is reasonable.
    (c) The county committee may require information from a qualified 
expert, as determined by the county committee, to determine extent of 
loss in the case of plant disease or insect infestation.
    (d) The Deputy Administrator will determine the types of trees, 
bushes, and vines that are eligible.
    (e) An individual stand that did not sustain a sufficient loss as 
specified in paragraph (a)(2) of this section is not eligible for 
payment, regardless of the amount of loss sustained.


Sec.  1416.404  Eligible orchardists and nursery tree growers.

    (a) To be eligible for TAP payments, the eligible orchardist or 
nursery tree grower must:
    (1) Have planted, or be considered to have planted (by purchase 
prior to the loss of existing stock planted for commercial purposes) 
trees, bushes, or vines for commercial purposes, or have a production 
history, for commercial purposes, of planted or existing trees, bushes, 
or vines;
    (2) Have suffered eligible losses of eligible trees, bushes, or 
vines occurring on or after October 1, 2011, as a result of a natural 
disaster or related condition;
    (3) Have continuously owned the stand from the time of the disaster 
until the time that the TAP application is submitted.
    (b) A new owner of an orchard or nursery who does not meet the 
requirements of paragraph (a) of this section may receive TAP payments 
approved for the previous owner of the orchard or nursery and not paid 
to the previous owner, if the previous owner of the orchard or nursery 
agrees to the succession in writing and if the new owner:
    (1) Acquires ownership of trees, bushes, or vines for which 
benefits have been approved;
    (2) Agrees to complete all approved practices that the original 
owner has not completed; and
    (3) Otherwise meets and assumes full responsibility for all 
provisions of this part, including refund of payments made to the 
previous owner, if applicable.
    (c) A producer seeking payment must not be ineligible under the 
restrictions applicable to citizenship and foreign corporations 
contained in Sec.  1416.3(b) and must meet all other requirements of 
subpart A of this part.
    (d) Federal, State, and local governments and agencies and 
political subdivisions thereof are not eligible for payment under this 
subpart.


Sec.  1416.405  Application.

    (a) To apply for TAP, a producer that suffered eligible tree, bush, 
or vine losses that occurred:
    (1) On or after October 1, 2011, through December 31, 2014, must 
provide an application for payment and supporting documentation to FSA 
by the later of January 31, 2015, or 90 calendar days after the 
disaster event or date when the loss is apparent to the producer.
    (2) During the 2015 calendar year or later, must provide an 
application for payment and supporting documentation to FSA within 90 
calendar days of the disaster event or date when the loss of trees, 
bushes, or vines is apparent to the producer.
    (b) The producer must submit the application for payment within the 
time specified in paragraph (a) of this section to the FSA 
administrative county office that maintains the producer's farm records 
for the agricultural operation.
    (c) A complete application includes all of the following:
    (1) A completed application form provided by FSA;
    (2) An acreage report for the farming operation as specified in 
part 718, subpart B, of this title;
    (3) Subject to verification and a loss amount determined 
appropriate by the county committee, a written estimate of the number 
of trees, bushes, or vines lost or damaged that is certified by the 
producer or a qualified expert, including the number of acres on which 
the loss occurred;
    (4) Sufficient evidence of the loss to allow the county committee 
to calculate whether an eligible loss occurred; and
    (5) A farm operating plan, if a current farm operating plan is not 
already on file in the FSA county office.
    (d) Before requests for payment will be approved, the county 
committee:
    (1) Must make an eligibility determination based on a complete 
application for assistance;
    (2) Must verify actual qualifying losses and the number of acres 
involved by on-site visual inspection of the land and the trees, 
bushes, or vines;
    (3) May request additional information and may consider all 
relevant information in making its determination; and
    (4) Must verify actual costs to complete the practices, as 
documented by the producer.


Sec.  1416.406  Payment calculations.

    (a) Payment to an eligible orchardist or nursery tree grower for 
the cost of replanting or rehabilitating trees, bushes, or vines 
damaged or lost due to a natural disaster, in excess of 15 percent 
damage or mortality (adjusted for normal damage or mortality), will be 
calculated as follows:
    (1) For the cost of planting seedlings or cuttings, to replace lost 
trees, bushes, or vines, the lesser of:
    (i) 65 percent of the actual cost of the practice, or
    (ii) The amount calculated using rates established by the Deputy 
Administrator for the practice.
    (2) For the cost of pruning, removal, and other costs incurred for 
salvaging damaged trees, bushes, or vines, or in the case of mortality, 
to prepare the land to replant trees, bushes, or vines, the lesser of:
    (i) 50 percent of the actual cost of the practice, or
    (ii) The amount calculated using rates established by the Deputy 
Administrator for the practice.
    (b) An orchardist or nursery tree grower that did not plant the 
trees, bushes, or vines, but has a production history for commercial 
purposes on planted or existing trees and lost the trees, bushes, or 
vines as a result of a natural disaster, in excess of 15 percent damage 
or mortality (adjusted for normal damage or mortality), will be 
eligible for the salvage, pruning, and land preparation payment 
calculation as specified in paragraph (a)(2) of this section. To be 
eligible for the replanting payment calculation as specified in 
paragraph (a)(1) of this section, the orchardist or nursery grower who 
did not plant the stock must be a new owner who meets all of the 
requirements of Sec.  1416.404(b) or be considered the owner of the 
trees under provisions appearing elsewhere in this subpart.
    (c) Eligible costs for payment calculation include costs for:
    (1) Seedlings or cuttings, for tree, bush, or vine replanting;
    (2) Site preparation and debris handling within normal 
horticultural practices for the type of stand being re-established, and 
necessary to ensure successful plant survival;
    (3) Pruning, removal, and other costs incurred to salvage damaged 
trees, bushes, or vines, or, in the case of tree

[[Page 21118]]

mortality, to prepare the land to replant trees, bushes, or vines;
    (4) Chemicals and nutrients necessary for successful establishment;
    (5) Labor to plant seedlings or cuttings as determined reasonable 
by the county committee; and
    (6) Labor used to transplant existing seedlings established through 
natural regeneration into a productive tree stand.
    (d) The following costs are not eligible:
    (1) Costs for fencing, irrigation, irrigation equipment, protection 
of seedlings from wildlife, general improvements, re-establishing 
structures, and windscreens.
    (2) Any other costs not listed in paragraphs (c)(1) through (6) of 
this section, unless specifically determined eligible by the Deputy 
Administrator.
    (e) Producers must provide the county committee documentation of 
actual costs to complete the practices, such as receipts for labor 
costs, equipment rental, and purchases of seedlings or cuttings.
    (f) When lost stands are replanted, the types planted may be 
different from those originally planted. The alternative types will be 
eligible for payment if the new types have the same general end use, as 
determined and approved by the county committee. Payments for 
alternative types will be based on the lesser of rates established to 
plant the types actually lost or the cost to establish the alternative 
used. If the type of plantings, seedlings, or cuttings differs 
significantly from the types lost, the costs may not be approved for 
payment.
    (g) When lost stands are replanted, the types planted may be 
planted on the same farm in a different location than the lost stand. 
To be eligible for payment, site preparation costs for the new location 
must not exceed the cost to re-establish the original stand in the 
original location.
    (h) Eligible orchardists or nursery tree growers may elect not to 
replant the entire eligible stand. If so, the county committee will 
calculate payment based on the number of qualifying trees, bushes, or 
vines actually replanted.
    (i) If a practice, such as site preparation, is needed to both 
replant and rehabilitate trees, bushes, or vines, the producer must 
document the expenses attributable to replanting versus rehabilitation. 
The county committee will determine whether the documentation of 
expenses detailing the amounts attributable to replanting versus 
rehabilitation is acceptable. In the event that the county committee 
determines the documentation does not include acceptable detail of cost 
allocation, the county committee will pro-rate payment based on 
physical inspection of the loss, damage, replanting, and 
rehabilitation.
    (j) The cumulative total quantity of acres planted to trees, 
bushes, or vines for which a producer may receive payment under this 
part for losses that occurred on or after October 1, 2011, can not 
exceed 500 acres per program year.


Sec.  1416.407  Obligations of a participant.

    (a) Eligible orchardists and nursery tree growers must execute all 
required documents and complete the TAP-funded practice within 12 
months of application approval.
    (b) Eligible orchardist or nursery tree growers must allow 
representatives of FSA to visit the site for the purposes of certifying 
compliance with TAP requirements.
    (c) Producers who do not meet all applicable requirements and 
obligations will not be eligible for payment.

    Signed on April 7, 2014.
Juan M. Garcia,
Administrator, Farm Service Agency and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 2014-08067 Filed 4-11-14; 8:45 am]
BILLING CODE 3410-05-P