Notice of Funds Availability; Emergency Livestock Relief Program (ELRP) 2022, 66361-66366 [2023-21068]
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66361
Notices
Federal Register
Vol. 88, No. 186
Wednesday, September 27, 2023
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
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section.
DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA–2023–0011]
Notice of Funds Availability;
Emergency Livestock Relief Program
(ELRP) 2022
Farm Service Agency, USDA.
Notification of funding
availability.
AGENCY:
ACTION:
The Farm Service Agency
(FSA) is issuing this notice announcing
ELRP 2022. This document provides the
eligibility requirements and payment
calculation for ELRP 2022 assistance.
ELRP 2022 will provide payments to
producers who faced increased
supplemental feed costs as a result of
forage losses due to a qualifying drought
or wildfire in calendar year 2022, using
data already submitted to FSA through
the Livestock Forage Disaster Program
(LFP).
SUMMARY:
Funding availability:
Implementation will begin September
27, 2023.
FOR FURTHER INFORMATION CONTACT:
Kathy Sayers; telephone: (202) 720–
6870; email: Kathy.Sayers@usda.gov.
Individuals who require alternative
means of communication for program
information should contact the USDA
Target Center at (202) 720–2600 (voice)
or dial 711 for Telecommunications
Relay Service (both voice and text
telephone users can initiate this call
from any telephone).
SUPPLEMENTARY INFORMATION:
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DATES:
Background
Title I of the Disaster Relief
Supplemental Appropriations Act, 2023
(Division N of the Consolidated
Appropriations Act, 2023; Public Law
117–328) provides $3,741,715,000 for
necessary expenses related to losses of
revenue, quality, or production losses of
crops (including milk, on-farm stored
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commodities, crops prevented from
planting in 2022, and harvested
adulterated wine grapes), trees, bushes,
and vines, as a consequence of droughts,
wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter
storms, freeze, including a polar vortex,
smoke exposure, and excessive moisture
occurring in calendar years 2022. From
that amount, the Secretary of
Agriculture is to use up to $494.5
million to provide assistance to
livestock producers for losses incurred
during calendar year 2022 due to
qualifying droughts or wildfires. The
livestock producers who suffered losses
due to drought are eligible for assistance
if any area within the county in which
the loss occurred was rated by the U.S.
Drought Monitor as having a D2 (severe
drought) for eight consecutive weeks or
a D3 (extreme drought) or higher level
of drought intensity during the
applicable year.
FSA will assist livestock producers
through ELRP 2022. This document
provides the eligibility requirements
and payment calculation for ELRP 2022,
which will assist eligible livestock
producers who faced increased
supplemental feed costs as a result of
forage losses due to a qualifying drought
or wildfire in calendar year 2022. For
eligible producers, ELRP 2022 will pay
for a portion of the increased feed costs
in 2022 based on the number of animal
units (AU), limited by available grazing
acreage, in eligible drought counties.
Although LFP payments do not have a
direct correlation to the increased feed
costs incurred, in order to deliver this
assistance quickly, FSA is using certain
LFP data and a percentage of the
payment made through LFP
applications will be used as a proxy for
these increased supplemental feed costs
to eliminate the requirement for
producers to resubmit information for
ELRP 2022. The ELRP 2022 payment
percentage will be 90 percent for
historically underserved farmers and
ranchers, and 75 percent for all other
producers.
According to the US Drought Monitor,
more than one-third of the country was
categorically in a ‘‘D2 Severe’’ to ‘‘D4
Exceptional’’ drought throughout the
entire calendar year 2022. Extreme
drought predominately affected areas
highly concentrated with rangeland
needed for livestock production.
Therefore, drought and wildfire caused
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economic hardship on producers that
were reliant on rangeland, requiring
them to purchase supplemental feed at
elevated prices to sustain production
throughout 2022 and not just during the
normal grazing periods. Due to the
excessive and expansive drought and
wildfires in 2022, livestock participants
experienced the following, they:
• Suffered extreme grazing losses;
• Incurred related costs to purchase
feed in the grazing period;
• Purchased feed, beyond normal for
a drought year, to supplement grazing
and to support livestock outside of the
grazing period because forage was not
available for harvest and storage; and
• Were faced with higher feed costs
during 2022 due to less availability of
feed resulting from drought severity and
feed cost inflation.
LFP provided payments to eligible
owners and contract growers of covered
livestock who suffered livestock grazing
losses due to qualifying drought or fire 1
not to exceed 5 months during the
grazing period based on the documented
livestock inventory eligible for LFP. The
gross LFP calculated payment
represented a 60 percent reimbursement
of monthly feed costs for a maximum of
5 months, based on a feed grain
equivalent that is calculated according
to 7 CFR 1416.207 as specified in 7
U.S.C. 9081(c), which uses the higher of
the national average corn price per
bushel for the 12- or 24-month period
immediately preceding March 1 of the
calendar year. Because LFP requires the
use of this period, it does not take into
account any increases in price paid for
supplemental feed during 2022. For
LFP, the 2022 monthly value of forage,
resulted in an LFP payment rate of
$28.37 per month per eligible animal
unit for drought. The rate for fire is
1 A grazing loss due to drought qualifies for LFP
only if the grazing loss occurs on land that is native
or improved pastureland with permanent vegetative
cover or is planted to a crop planted specifically for
the purpose of providing grazing for covered
livestock, and the land is physically located in a
county rated by the U.S. Drought Monitor as having
a D2 intensity for at least 8 consecutive weeks or
D3 or D4 intensity at any time during the normal
grazing period for the specific type of grazing land
or pastureland.
A grazing loss due to fire qualifies for LFP only
if the grazing loss occurs on rangeland that is
managed by a Federal agency and the eligible
livestock producer is prohibited by the Federal
agency from grazing the normal permitted livestock
on the managed rangeland due to a fire.
See 7 CFR 1416.205 for further information on
eligible grazing losses under LFP.
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based on the number of fire-restricted
days and was not a single rate.
LFP does not compensate for the
increased costs of supplemental feed,
including during 2022 due to drought
and wildfires in 2022.
The actual cost of supplemental feed
prices, based on corn, alfalfa, and
soybean meal, increased substantially in
2022, compared to previous years. Using
the Dairy Margin Coverage (DMC) 2
program model for an adequate
supplemental feed ratio, the 5-year
average cost to maintain 1 AU for one
month was $66.79, compared to the
actual average cost from January
through December, 2022 of $107.51 per
month, an increase of 61 percent.
The cost of feeding one AU per month
increased in 2022 compared to the 5year average by $40.72 ($107.51 ¥
$66.79) for livestock producers affected
by drought and wildfires, which was not
covered by LFP. See Table 1.
TABLE 1—2022 CALCULATED COSTS (DMC MODEL) TO MAINTAIN 1 AU/MONTH
5 Year avg. cost
(corn, alfalfa, soybean meal)
$66.79 .......................................
2022 Cost
(corn, alfalfa,
soybean meal)
2022 Increase
in cost
$107.51
2022 LFP
payment rate *
$40.72
Gross ELRP 2022
calculated benefit/
month/eligible AU
prior to factor
ELRP 2022
payment
percentage
$28.37
75
90
$21.28
25.53
Percentage
of increased
supplemental feed
costs in 2022
compensated by
ELRP 2022 prior to
factor
52.2
62.7
* The 2022 LFP payment rate may be adjusted according to LFP provisions in 7 CFR 1416.207 for mitigated livestock and restricted grazed animal units due to a
qualifying fire.
The ELRP 2022 calculated benefit is
based on using the LFP payment rate of
$28.37 per animal unit per month,
calculated as follows:
75 percent × $28.37 = $21.28
(equivalent to 52.2 percent of increased
supplemental feed costs in 2022) and
90 percent × $28.37 = $25.53
(equivalent to 62.7 percent of increased
supplemental feed costs in 2022).
To stay within the available funding,
ELRP 2022 payments for increased
supplemental feed costs in 2022 will be
factored initially by 25 percent. If funds
remain available after initial payments,
a second payment of up to 75 percent
may be issued.
Because FSA is using LFP information
to generate a reasonable approximation
for the costs covered by ELRP 2022, no
action is required for eligible producers
to receive ELRP 2022 payments.
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Definitions
The definitions in 7 CFR parts 718,
1400, and 1416 apply to ELRP 2022,
except as otherwise provided in this
document. The following definitions
also apply.
Average adjusted gross farm income
means the average of the person or legal
entity’s adjusted gross income derived
from farming, ranching, and forestry
operations for the 3 taxable years
preceding the most immediately
preceding complete taxable year.
(a) If the resulting average adjusted
gross farm income derived from items 1
through 12 of the definition below for
‘‘income derived from farming, ranching
and forestry operations’’ is at least 66.66
2 ELRP 2022 uses the DMC model to calculate
actual feed costs producers experienced in 2022.
The DMC formula aims to calculate feed costs to
maintain a dairy cow to produce one
hundredweight of milk, however FSA is using this
model, and converting to maintain 1 animal unit.
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percent of the average adjusted gross
income of the person or legal entity,
then the average adjusted gross farm
income may also take into consideration
income or benefits derived from the
following:
(1) The sale of equipment to conduct
farm, ranch, or forestry operations; and
(2) The provision of production
inputs and services to farmers, ranchers,
foresters, and farm operations.
(b) The relevant tax years for ELRP
2022 are 2018, 2019, and 2020.
Beginning farmer or rancher means a
farmer or rancher who has not operated
a farm or ranch for more than 10 years
and who materially and substantially
participates in the operation. For a legal
entity to be considered a beginning
farmer or rancher, at least 50 percent of
the interest must be beginning farmers
or ranchers.
Income derived from farming,
ranching, and forestry operations means
income of an individual or entity
derived from:
(1) Production of crops, specialty
crops, and unfinished raw forestry
products;
(2) Production of livestock,
aquaculture products used for food,
honeybees, and products derived from
livestock;
(3) Production of farm-based
renewable energy;
(4) Selling (including the sale of
easements and development rights) of
farm, ranch, and forestry land, water or
hunting rights, or environmental
benefits;
(5) Rental or lease of land or
equipment used for farming, ranching,
or forestry operations, including water
or hunting rights;
(6) Processing, packing, storing, and
transportation of farm, ranch, or forestry
commodities including for renewable
energy;
(7) Feeding, rearing, or finishing of
livestock;
(8) Payments of benefits, including
benefits from risk management
practices, crop insurance indemnities,
and catastrophic risk protection plans;
(9) Sale of land that has been used for
agricultural purposes;
(10) Payments and benefits authorized
under any program made available and
applicable to payment eligibility and
payment limitation rules;
(11) Income reported on Internal
Revenue Service (IRS) Schedule F or
other schedule used by the person or
legal entity to report income from such
operations to the IRS;
(12) Wages or dividends received
from a closely held corporation, and IC–
DISC (Interest Charge Domestic
International Sales Corporation) or legal
entity comprised entirely of family
members when more than 50 percent of
the legal entity’s gross receipts for each
tax year are derived from farming,
ranching, and forestry activities as
defined in this part; and
(13) Any other activity related to
farming, ranching, and forestry, as
determined by the Deputy
Administrator for Farm Programs
(Deputy Administrator).
DMC, as outlined in 7 CFR part 1430, calculates a
national average feed cost using the following three
items and are added together:
(1) The product determined by multiplying
1.0728 by the price of corn per bushel;
(2) The product determined by multiplying
0.00735 by the price of soybean meal per ton; and
(3) The product determined by multiplying
0.0137 by the price of alfalfa hay per ton.
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Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices
LFP means the Livestock Forage
Disaster Program under section 1501 of
the Agricultural Act of 2014 (7 U.S.C.
9081) and 7 CFR part 1416, subpart C.
Limited resource farmer or rancher
means a farmer or rancher who is both
of the following:
(1) A person whose direct or indirect
gross farm sales did not exceed
$179,000 (the amount applicable to the
2022 program year) in each of the 2019
and 2020 calendar years; and
(2) A person whose total household
income was at or below the national
poverty level for a family of four in each
of the same 2 previous years referenced
in paragraph (1) of this definition.
Limited resource farmer or rancher
status can be determined using a
website available through the Limited
Resource Farmer and Rancher Online
Self Determination Tool through
National Resources and Conservation
Service at https://lrftool.sc.egov.
usda.gov.
For an entity to be considered a
limited resource farmer or rancher, all
members who hold an ownership
interest in the entity must meet the
criteria in paragraphs (1) and (2) of this
definition.
Ownership interest means to have
either a legal ownership interest or a
beneficial ownership interest in a legal
entity. For the purposes of
administering ELRP 2022, a person or
legal entity that owns a share or stock
in a legal entity that is a corporation,
limited liability company, limited
partnership, or similar type entity where
members hold a legal ownership interest
and shares in the profits or losses of
such entity is considered to have an
ownership interest in such legal entity.
A person or legal entity that is a
beneficiary of a trust or heir of an estate
who benefits from the profits or losses
of such entity is considered to have a
beneficial ownership interest in such
legal entity.
Socially disadvantaged farmer or
rancher means a farmer or rancher who
is a member of a 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
entities, at least 50 percent of the
ownership interest must be held by
individuals who are members of such a
group. 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) Hispanics or Hispanic Americans;
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(5) Native Hawaiians or other Pacific
Islanders; and
(6) Women.
Underserved farmer or rancher means
a beginning farmer or rancher, limited
resource farmer or rancher, socially
disadvantaged farmer or rancher, or
veteran farmer or rancher.
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 https://
droughtmonitor.unl.edu.
Veteran farmer or rancher means a
farmer or rancher who has served in the
Armed Forces (as defined in 38 U.S.C.
101(10) 3) and:
(1) Has not operated a farm or ranch
for more than 10 years; or
(2) Has obtained status as a veteran (as
defined in 38 U.S.C. 101(2) 4) during the
most recent 10-year period.
For an entity to be considered a
veteran farmer or rancher, at least 50
percent of the ownership interest must
be held by members who have served in
the Armed Forces and meet the criteria
in paragraph (1) or (2) of this definition.
Wildfire for ELRP 2022 means fire as
used in 7 CFR part 1416, subpart C.
Eligible Livestock Producers
Eligible livestock producers for ELRP
2022 are producers with an approved
2022 LFP application. For ELRP 2022,
the eligibility criteria applicable to LFP
(7 CFR part 1416, subparts A and C) also
applies to ELRP 2022, excluding the
LFP average adjusted gross income
(AGI) limitation. FSA will use livestock
inventories, forage acreage, restricted
animal units, and grazing days due to
fire, and drought intensity levels already
reported to FSA for the 2022 Livestock
Forage Disaster Program Application 5
(on form number CCC–853), to
determine eligibility and calculate an
ELRP 2022 payment, if applicable.
Eligible livestock producers are not
required to submit an application for
ELRP 2022; however, they must have
the following additional forms on file
3 The term ‘‘Armed Forces’’ means the United
States Army, Navy, Marine Corps, Air Force, Space
Force, and Coast Guard, including the reserve
components.
4 The term ‘‘veteran’’ means a person who served
in the active military, naval, air, or space service,
and who was discharged or released under
conditions other than dishonorable.
5 As provided in 7 CFR 1416.206 and publicized
by FSA, the LFP application deadline for the 2022
program year was January 30, 2023.
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with FSA within 60-days of ELRP 2022
deadline announced by the Deputy
Administrator to be eligible to receive a
payment:
• Form AD–2047, Customer Data
Worksheet;
• Form CCC–902, Farm Operating
Plan for an individual or legal entity as
provided in 7 CFR part 1400;
• Form CCC–901, Member
Information for Legal Entities (if
applicable); and
• A highly erodible land conservation
(sometimes referred to as HELC) and
wetland conservation certification as
provided in 7 CFR part 12 (form AD–
1026, Highly Erodible Land
Conservation (HELC) and Wetland
Conservation (WC) Certification) for the
ELRP 2022 producer and applicable
affiliates.
For a producer to be eligible for a
payment based on the higher payment
rate for eligible underserved farmers or
ranchers or increased payment
limitation as described below, the
following must be submitted within 60days of the ELRP 2022 deadline
announced by the Deputy
Administrator:
• Form CCC–860, Socially
Disadvantaged, Limited Resource,
Beginning and Veteran Farmer or
Rancher Certification, applicable for the
2022 program year 6; or
• FSA–510, Request for an Exception
to the $125,000 Payment Limitation for
Certain Programs, accompanied by a
certification from a certified public
accountant or attorney as to that person
or legal entity’s certification, for a legal
entity and all members of that entity.
Payment Calculation
The initial ELRP 2022 payment will
be equal to the eligible livestock
producer’s gross 2022 LFP calculated
payment 7 multiplied by the applicable
6 An individual who has filed CCC–860 certifying
their status as a socially disadvantaged, beginning,
or veteran farmer or rancher for a prior program
year is not required to submit a subsequent
certification of their status for the 2022 program
year because an individual’s status as socially
disadvantaged would not change in different years,
and their certification as a beginning or veteran
farmer or rancher includes the relevant date needed
to determine for what programs years the status
would apply. An entity that has filed CCC–860
certifying its status as a socially disadvantaged,
beginning, or veteran farmer or rancher for a prior
program year is not required to submit a subsequent
certification of its status for a later program year
unless the entity’s status has changed due to
changes in membership. Because a producer’s
status as a limited resource farmer or rancher may
change annually depending on the producer’s direct
and indirect gross farm sales, those producers must
submit CCC–860 for each applicable program year.
7 The gross LFP calculated payment is the amount
calculated according to 7 CFR 1416.207, prior to
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ELRP 2022 payment percentage of 90
percent for underserved farmers and
ranchers and 75 percent for all other
producers multiplied by a 25 percent
factor to stay within available funding.8
If funds remain available after initial
payments, a second payment of up to 75
percent may be issued. For example, an
underserved eligible livestock
producer’s gross 2022 LFP calculation
payment is $10,000 multiplied by the 90
percent ELRP 2022 payment percentage
multiplied by the 25 percent factor
results in an initial ELRP 2022 payment
of $2,250. The ELRP 2022 payment is
intended to represent a reasonable
approximation of 63 percent, factored
by 25 percent, of the increased
supplemental feed costs for that
producer in 2022.
Form CCC–860, Socially
Disadvantaged, Limited Resource,
Beginning and Veteran Farmer or
Rancher Certification, must be on file
with FSA with a certification applicable
for the 2022 program year to receive the
higher ELRP 2022 payment rate of 90
percent.
FSA will issue ELRP 2022 payments
as 2022 LFP applications are processed
and approved. If a producer files the
CCC–860 or FSA–510 form and the
accompanying certification by the
deadline announced by the Deputy
Administrator but after their ELRP 2022
payment is issued, FSA will recalculate
the ELRP 2022 payment and issue the
additional calculated amount as
applicable.
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Payment Limitation
The payment limitation for ELRP
2022 is determined by the person’s or
legal entity’s average adjusted gross
farm income (as defined above).
Specifically, a person or legal entity,
other than a joint venture or general
partnership, cannot receive, directly or
any payment reductions for reasons including, but
not limited to, sequestration, payment limitation,
and the applicant or member of an applicant that
is an entity exceeding the average AGI limitation.
8 FSA calculates payments based on a higher
payment factor for underserved farmers and
ranchers (or specific groups included in that term)
in several programs, such as Emergency
Conservation Program, Emergency Assistance for
Livestock, Honeybees, and Farm-raised Fish
Program (also known as ELAP), and the Tree
Assistance Program. FSA has also used higher
payment factors for these producers in several
recently announced programs: the Food Safety
Certification for Specialty Crops Program, the
Organic and Transitional Education and
Certification Program, previous ELRP Phase 1, and
ERP. In addition, NAP provides a reduced service
fee and premium for underserved farmers and
ranchers. This approach supports the equitable
administration of FSA programs, as underserved
farmers and ranchers are more likely to lack
financial reserves and access to capital that would
allow them to cope with losses due to unexpected
events outside of their control.
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indirectly, more than $125,000 in
payments under ELRP 2022 if their
average adjusted gross farm income is
less than 75 percent of their average AGI
for tax years 2018, 2019, and 2020. If at
least 75 percent of the person or legal
entity’s average AGI is derived from
farming, ranching, and forestry related
activities and the participant provides
the required certification and
documentation, as discussed below, the
person or legal entity, other than a joint
venture or general partnership, is
eligible to receive, directly or indirectly,
up to $250,000 in ELRP 2022 payments.
To receive more than $125,000 in ELRP
2022 payments, producers must submit
form FSA–510, accompanied by a
certification from a certified public
accountant or attorney as to that person
or legal entity’s certification. If a
producer requesting the $250,000
payment limitation is a legal entity, all
members of that entity must also
complete FSA–510 and provide the
required certification according to the
direct attribution provisions in 7 CFR
1400.105, ‘‘Attribution of Payments.’’ If
a legal entity would be eligible for the
$250,000 payment limitation based on
the legal entity’s average adjusted gross
farm income but a member of that legal
entity either does not complete an FSA–
510 and provide the required
certification or is not eligible for the
$250,000 payment limitation, the
payment to the legal entity will be
reduced for the limitation applicable to
the share of the ELRP 2022 payment
attributed to that member.
A payment made to a legal entity will
be attributed to those members who
have a direct or indirect ownership
interest in the legal entity unless the
payment of the legal entity has been
reduced by the proportionate ownership
interest of the member due to that
member’s ineligibility.
Attribution of payments made to legal
entities will be tracked through four
levels of ownership in legal entities as
follows:
• First level of ownership: Any
payment made to a legal entity that is
owned in whole or in part by a person
will be attributed to the person in an
amount that represents the direct
ownership interest in the first-level or
payment legal entity;
• Second level of ownership: Any
payment made to a first-level legal
entity that is owned in whole or in part
by another legal entity (referred to as a
second-level legal entity) will be
attributed to the second-level legal
entity in proportion to the ownership of
the second-level legal entity in the firstlevel legal entity; if the second-level
legal entity is owned in whole or in part
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by a person, the amount of the payment
made to the first-level legal entity will
be attributed to the person in the
amount that represents the indirect
ownership in the first-level legal entity
by the person;
• Third and fourth levels of
ownership: Except as provided in the
second-level of ownership bullet above
and in the fourth-level of ownership
bullet below, any payments made to a
legal entity at the third and fourth levels
of ownership will be attributed in the
same manner as specified in the second
level of ownership bullet above; and
• Fourth level of ownership: If the
fourth level of ownership is that of a
legal entity and not that of a person, a
reduction in payment will be applied to
the first-level or payment legal entity in
the amount that represents the indirect
ownership in the first-level or payment
legal entity by the fourth-level legal
entity.
Payments made directly or indirectly
to a person who is a minor child will
not be combined with the earnings of
the minor’s parent or legal guardian.
A producer that is a legal entity must
provide the names, addresses,
ownership share, and valid taxpayer
identification numbers of the members
holding an ownership interest in the
legal entity. Payments to a legal entity
will be reduced in proportion to a
member’s ownership share when a valid
taxpayer identification number for a
person or legal entity that holds a direct
or indirect ownership interest of less
than 10 percent, at the first through
fourth levels of ownership in the
business structure, is not provided to
FSA. A legal entity is not eligible to
receive ELRP 2022 payments when a
valid taxpayer identification number for
a person or legal entity that holds a
direct or indirect ownership interest of
10 percent or more, at the first through
fourth levels of ownership in the
business structure, is not provided to
FSA.
If an individual or legal entity is not
eligible to receive ELRP 2022 payments
due to the individual or legal entity
failing to satisfy payment eligibility
provisions, the payment made either
directly or indirectly to the individual
or legal entity will be reduced to zero.
The amount of the reduction for the
direct payment to the producer will be
commensurate with the direct or
indirect ownership interest of the
ineligible individual or ineligible legal
entity. Like other programs
administered by FSA, payments made to
an Indian Tribe or Tribal organization,
as defined in section 4(b) of the Indian
Self-Determination and Education
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Assistance Act (25 U.S.C. 5304), will not
be subject to payment limitation.
ddrumheller on DSK120RN23PROD with NOTICES1
Provisions Requiring Refund to FSA
In the event that any ELRP 2022
payment resulted from erroneous
information reported by the producer or
if the producer’s 2022 LFP payment is
recalculated after the ELRP 2022
payment is issued, the ELRP 2022
payment will be recalculated, and the
producer must refund any excess
payment to FSA, including interest to be
calculated from the date of the
disbursement to the producer. If FSA
determines that the producer
intentionally misrepresented
information used to determine the
producer’s ELRP 2022 payment amount,
the application will be disapproved and
the producer must refund the full
payment to FSA with interest from the
date of disbursement. Any required
refunds must be resolved in accordance
with debt settlement regulations in 7
CFR part 3.
General Provisions
General requirements that apply to
other FSA-administered commodity
programs also apply to ELRP 2022,
including compliance with the
provisions of 7 CFR part 12, ‘‘Highly
Erodible Land and Wetland
Conservation,’’ and the provisions of 7
CFR 718.6, which address ineligibility
for benefits for offenses involving
controlled substances. Appeal
regulations in 7 CFR parts 11 and 780
and equitable relief and finality
provisions in 7 CFR part 718, subpart D,
apply to determinations under ELRP
2022. The determination of matters of
general applicability that are not in
response to, or result from, an
individual set of facts are not matters
that can be appealed. Such matters of
general applicability include, but are
not limited to, the ELRP 2022 eligibility
criteria and payment calculation.
Participants are required to retain
documentation in support of their
application for 3 years after the date of
approval. Participants receiving ELRP
2022 payments or any other person who
furnishes such information to USDA
must permit authorized representatives
of USDA or the Government
Accountability Office, during regular
business hours, to enter the agricultural
operation and to inspect, examine, and
to allow representatives to make copies
of books, records, or other items for the
purpose of confirming the accuracy of
the information provided by the
participant.
The Deputy Administrator has the
discretion and authority to waive or
modify filing deadlines and other
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18:44 Sep 26, 2023
Jkt 259001
requirements or program provisions not
specified in law, in cases where the
Deputy Administrator determines it is
equitable to do so and where the Deputy
Administrator finds that the lateness or
failure to meet such other requirements
or program provisions do not adversely
affect the operation of ELRP 2022.
Although producers have a right to a
decision on whether they filed
applications by the deadline or not,
producers have no right to a decision in
response to a request to waive or modify
deadlines or program provisions. The
Deputy Administrator’s refusal to
exercise discretion to consider the
request will not be considered an
adverse decision and is, by itself, not
appealable.
Any payment under ELRP 2022 will
be made without regard to questions of
title under State law and without regard
to any claim or lien. The regulations
governing offsets in 7 CFR part 3 apply
to ELRP 2022 payments.
In either applying for or participating
in ELRP 2022, or both, the producer is
subject to laws against perjury and any
penalties and prosecution resulting
therefrom, with such laws including but
not limited to 18 U.S.C. 1621. If the
producer willfully makes and represents
as true any verbal or written declaration,
certification, statement, or verification
that the producer knows or believes not
to be true, in the course of either
applying for or participating in ELRP
2022, or both, then the producer is
guilty of perjury and, except as
otherwise provided by law, may be
fined, imprisoned for not more than 5
years, or both, regardless of whether the
producer makes such verbal or written
declaration, certification, statement, or
verification within or outside the United
States.
For the purposes of the effect of a lien
on eligibility for Federal programs (28
U.S.C. 3201Ö), USDA waives the
restriction on receipt of funds under
ELRP 2022 but only as to beneficiaries
who, as a condition of the waiver, agree
to apply the ELRP 2022 payments to
reduce the amount of the judgment lien.
In addition to any other Federal laws
that apply to ELRP 2022, the following
laws apply: 15 U.S.C. 714; and 18 U.S.C.
286, 287, 371, and 1001.
Paperwork Reduction Act
Requirements
In compliance with the provisions of
the Paperwork Reduction Act (44 U.S.C.
chapter 35), the information collection
request has been approved by OMB
under the control number of 0503–0028.
FSA will collect the information from
the livestock producers to qualify for the
payment to assist with increased
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66365
supplemental feed costs. This NOFA is
the one-time announcement of the new
ELRP 2022 federal financial assistance
funding.
Environmental Review
The environmental impacts have been
considered in a manner consistent with
the provisions of the National
Environmental Policy Act (NEPA, 42
U.S.C. 4321–4347), the regulations of
the Council on Environmental Quality
(40 CFR parts 1500–1508), and the FSA
regulation for compliance with NEPA (7
CFR part 799).
As previously stated, ELRP 2022 is
providing payments to eligible livestock
producers who faced increased
supplemental feed costs as a result of
forage losses due to a qualifying drought
or wildfire in calendar year 2022. The
limited discretionary aspects of ELRP
2022 do not have the potential to impact
the human environment as they are
administrative. Accordingly, these
discretionary aspects are covered by the
FSA Categorical Exclusions specified in
§ 799.31(b)(6)(iv) that applies to
individual farm participation in FSA
programs where no ground disturbance
or change in land use occurs as a result
of the proposed action or participation;
and § 799.31(b)(6)(vi) that applies to
safety net programs.
No Extraordinary Circumstances
(§ 799.33) exist. As such, the
implementation of ELRP 2022 and the
participation in ELRP 2022 do not
constitute major Federal actions that
would significantly affect the quality of
the human environment, individually or
cumulatively. Therefore, FSA will not
prepare an environmental assessment or
environmental impact statement for this
action and this document serves as
documentation of the programmatic
environmental compliance decision for
this federal action.
Federal Assistance Programs
The title and number of the Federal
assistance programs, as found in the
Assistance Listing,9 to which this
document applies is 10.980—Emergency
Livestock Relief Program 2022.
USDA Non-Discrimination Policy
In accordance with Federal civil
rights law and U.S. Department of
Agriculture (USDA) civil rights
regulations and policies, USDA, its
Agencies, offices, and employees, and
institutions participating in or
administering USDA programs are
prohibited from discriminating based on
race, color, national origin, religion, sex,
gender identity (including gender
9 See
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Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 / Notices
expression), sexual orientation,
disability, age, marital status, family or
parental status, income derived from a
public assistance program, political
beliefs, or reprisal or retaliation for prior
civil rights activity, in any program or
activity conducted or funded by USDA
(not all bases apply to all programs).
Remedies and complaint filing
deadlines vary by program or incident.
Individuals who require alternative
means of communication for program
information (for example, braille, large
print, audiotape, American Sign
Language, etc.) should contact the
responsible Agency or USDA TARGET
Center at (202) 720–2600 (voice and text
telephone (TTY)) or dial 711 for
Telecommunications Relay Service
(both voice and text telephone users can
initiate this call from any telephone).
Additionally, program information may
be made available in languages other
than English.
To file a program discrimination
complaint, complete the USDA Program
Discrimination Complaint Form, AD–
3027, found online at https://
www.usda.gov/oascr/how-to-file-aprogram-discrimination-complaint and
at any USDA office or write a letter
addressed to USDA and provide in the
letter all the information requested in
the form. To request a copy of the
complaint form, call (866) 632–9992.
Submit your completed form or letter to
USDA by mail to: U.S. Department of
Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400
Independence Avenue SW, Washington,
DC 20250–9410 or email: OAC@
usda.gov.
USDA is an equal opportunity
provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2023–21068 Filed 9–26–23; 8:45 am]
BILLING CODE 3411–EB–P
DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA–2023–00015]
ddrumheller on DSK120RN23PROD with NOTICES1
Notice of Funds Availability; 2021
Emergency Livestock Relief Program
(ELRP) Phase 2
Farm Service Agency, USDA.
Notification of funding
availability.
AGENCY:
ACTION:
The Farm Service Agency
(FSA) is issuing this notice announcing
ELRP Phase 2. This document provides
the eligibility requirements and
payment calculation for the second
SUMMARY:
VerDate Sep<11>2014
18:44 Sep 26, 2023
Jkt 259001
phase of ELRP assistance. ELRP Phase 2
will provide assistance to eligible
livestock producers for the loss of the
value of winter forage from the
deterioration of grazing cover due to a
qualifying drought or wildfire during
the 2021 normal grazing period, which
has been exacerbated by a continued
lack of precipitation. This document
also makes a correction and amendment
to ELRP Phase 1.
DATES: Funding availability:
Implementation will begin September
27, 2023.
FOR FURTHER INFORMATION CONTACT:
Kathy Sayers, telephone: (202) 720–
7649; email: Kathy.Sayers@usda.gov.
Individuals with disabilities who
require alternative means for
communication should contact the
USDA Target Center at (202) 720–2600
(voice) or (844) 433–2774 (toll-free
nationwide).
acreage, in eligible drought counties. In
order to deliver this assistance quickly,
FSA used certain 2021 Livestock Forage
Disaster Program (LFP) data and a
percentage of the payment made
through LFP applications as a proxy for
these increased supplemental feed costs
to eliminate the requirement for
producers to resubmit information for
ELRP Phase 1.
To stay within the available funding,
ELRP Phase 1 payments were calculated
at 90 percent of the gross LFP calculated
payment for underserved farmers and
ranchers and 75 percent of the gross LFP
calculated payment for all other
producers.2
This document provides the eligibility
requirements and payment calculation
for ELRP Phase 2 assistance. It also
corrects an error in the ELRP Phase 1
provisions related to payment eligibility
and amends ELRP Phase 1 to be
consistent with LFP and ELRP Phase 2.
SUPPLEMENTARY INFORMATION:
ELRP Phase 2
For each eligible livestock producer
who previously received an ELRP Phase
1 payment, FSA will issue an ELRP
Phase 2 payment to assist with losses in
the value of winter forage from the
deterioration of grazing cover due to a
qualifying drought or wildfire during
the 2021 normal grazing period, which
has been exacerbated by the continued
lack of precipitation, using the ELRP
Phase 1 payment as a proxy to calculate
those losses. ELRP Phase 2 assistance is
subject to the same ELRP payment
limitation provided in the previous
notice of funds availability. Because
FSA is using LFP and ELRP Phase 1
information to calculate a producer’s
ELRP Phase 2 payment and determine
eligibility due to a qualifying drought or
wildfire during the 2021 normal grazing
period, no action is required for eligible
Background
The Extending Government Funding
and Delivering Emergency Assistance
Act, (Division B, Title I, Pub. L. 117–43)
provides $10 billion for necessary
expenses related to losses of crops
(including milk, on-farm stored
commodities, crops prevented from
planting in 2020 and 2021, and
harvested adulterated wine grapes),
trees, bushes, and vines, as a
consequence of droughts, wildfires,
hurricanes, floods, derechos, excessive
heat, winter storms, freeze, including a
polar vortex, smoke exposure, quality
losses of crops, and excessive moisture
occurring in calendar years 2020 and
2021. From the $10 billion, the
Secretary of Agriculture is to use $750
million to assist producers of livestock
for losses incurred during calendar year
2021 due to qualifying droughts or
wildfires. The livestock producers who
suffered losses due to drought are
eligible for assistance if any area within
the county in which the loss occurred
was rated by the U.S. Drought Monitor
as having a D2 (severe drought) for eight
consecutive weeks or a D3 (extreme
drought) or higher level of drought
intensity during the applicable year.
On April 4, 2022, FSA announced
that assistance for livestock producers
would be provided through ELRP (87 FR
19465–19470).1 ELRP Phase 1 paid for
a portion of eligible producers’
increased supplemental feed costs in
2021 based on the number of animal
units (AU), limited by available grazing
1 In addition, a clarification to the notice of funds
availability for ELRP Phase 1 was published on
August 18, 2022 (87 FR 50828–50830).
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Fmt 4703
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2 ‘‘Underserved farmer or rancher’’ means a
beginning farmer or rancher, limited resource
farmer or rancher, socially disadvantaged farmer or
rancher, or veteran farmer or rancher. FSA
calculates payments based on a higher payment
factor for underserved farmers and ranchers (or
specific groups included in that term) in several
programs, such as Emergency Conservation
Program; Emergency Assistance for Livestock,
Honeybees, and Farm-Raised Fish Program; and the
Tree Assistance Program. FSA has also used higher
payment factors for these producers in several
recently announced programs: the Food Safety
Certification for Specialty Crops Program, the
Organic and Transitional Education and
Certification Program, Emergency Relief Program,
and Pandemic Assistance Revenue Program. In
addition, the Noninsured Crop Disaster Assistance
Program provides a reduced service fee and
premium for underserved farmers and ranchers.
This approach supports the equitable
administration of FSA programs, as underserved
farmers and ranchers are more likely to lack
financial reserves and access to capital that would
allow them to cope with losses due to unexpected
events outside of their control.
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Agencies
[Federal Register Volume 88, Number 186 (Wednesday, September 27, 2023)]
[Notices]
[Pages 66361-66366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-21068]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 88, No. 186 / Wednesday, September 27, 2023 /
Notices
[[Page 66361]]
DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2023-0011]
Notice of Funds Availability; Emergency Livestock Relief Program
(ELRP) 2022
AGENCY: Farm Service Agency, USDA.
ACTION: Notification of funding availability.
-----------------------------------------------------------------------
SUMMARY: The Farm Service Agency (FSA) is issuing this notice
announcing ELRP 2022. This document provides the eligibility
requirements and payment calculation for ELRP 2022 assistance. ELRP
2022 will provide payments to producers who faced increased
supplemental feed costs as a result of forage losses due to a
qualifying drought or wildfire in calendar year 2022, using data
already submitted to FSA through the Livestock Forage Disaster Program
(LFP).
DATES: Funding availability: Implementation will begin September 27,
2023.
FOR FURTHER INFORMATION CONTACT: Kathy Sayers; telephone: (202) 720-
6870; email: [email protected]. Individuals who require alternative
means of communication for program information should contact the USDA
Target Center at (202) 720-2600 (voice) or dial 711 for
Telecommunications Relay Service (both voice and text telephone users
can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
Title I of the Disaster Relief Supplemental Appropriations Act,
2023 (Division N of the Consolidated Appropriations Act, 2023; Public
Law 117-328) provides $3,741,715,000 for necessary expenses related to
losses of revenue, quality, or production losses of crops (including
milk, on-farm stored commodities, crops prevented from planting in
2022, and harvested adulterated wine grapes), trees, bushes, and vines,
as a consequence of droughts, wildfires, hurricanes, floods, derechos,
excessive heat, tornadoes, winter storms, freeze, including a polar
vortex, smoke exposure, and excessive moisture occurring in calendar
years 2022. From that amount, the Secretary of Agriculture is to use up
to $494.5 million to provide assistance to livestock producers for
losses incurred during calendar year 2022 due to qualifying droughts or
wildfires. The livestock producers who suffered losses due to drought
are eligible for assistance if any area within the county in which the
loss occurred was rated by the U.S. Drought Monitor as having a D2
(severe drought) for eight consecutive weeks or a D3 (extreme drought)
or higher level of drought intensity during the applicable year.
FSA will assist livestock producers through ELRP 2022. This
document provides the eligibility requirements and payment calculation
for ELRP 2022, which will assist eligible livestock producers who faced
increased supplemental feed costs as a result of forage losses due to a
qualifying drought or wildfire in calendar year 2022. For eligible
producers, ELRP 2022 will pay for a portion of the increased feed costs
in 2022 based on the number of animal units (AU), limited by available
grazing acreage, in eligible drought counties. Although LFP payments do
not have a direct correlation to the increased feed costs incurred, in
order to deliver this assistance quickly, FSA is using certain LFP data
and a percentage of the payment made through LFP applications will be
used as a proxy for these increased supplemental feed costs to
eliminate the requirement for producers to resubmit information for
ELRP 2022. The ELRP 2022 payment percentage will be 90 percent for
historically underserved farmers and ranchers, and 75 percent for all
other producers.
According to the US Drought Monitor, more than one-third of the
country was categorically in a ``D2 Severe'' to ``D4 Exceptional''
drought throughout the entire calendar year 2022. Extreme drought
predominately affected areas highly concentrated with rangeland needed
for livestock production. Therefore, drought and wildfire caused
economic hardship on producers that were reliant on rangeland,
requiring them to purchase supplemental feed at elevated prices to
sustain production throughout 2022 and not just during the normal
grazing periods. Due to the excessive and expansive drought and
wildfires in 2022, livestock participants experienced the following,
they:
Suffered extreme grazing losses;
Incurred related costs to purchase feed in the grazing
period;
Purchased feed, beyond normal for a drought year, to
supplement grazing and to support livestock outside of the grazing
period because forage was not available for harvest and storage; and
Were faced with higher feed costs during 2022 due to less
availability of feed resulting from drought severity and feed cost
inflation.
LFP provided payments to eligible owners and contract growers of
covered livestock who suffered livestock grazing losses due to
qualifying drought or fire \1\ not to exceed 5 months during the
grazing period based on the documented livestock inventory eligible for
LFP. The gross LFP calculated payment represented a 60 percent
reimbursement of monthly feed costs for a maximum of 5 months, based on
a feed grain equivalent that is calculated according to 7 CFR 1416.207
as specified in 7 U.S.C. 9081(c), which uses the higher of the national
average corn price per bushel for the 12- or 24-month period
immediately preceding March 1 of the calendar year. Because LFP
requires the use of this period, it does not take into account any
increases in price paid for supplemental feed during 2022. For LFP, the
2022 monthly value of forage, resulted in an LFP payment rate of $28.37
per month per eligible animal unit for drought. The rate for fire is
[[Page 66362]]
based on the number of fire-restricted days and was not a single rate.
---------------------------------------------------------------------------
\1\ A grazing loss due to drought qualifies for LFP only if the
grazing loss occurs on land that is native or improved pastureland
with permanent vegetative cover or is planted to a crop planted
specifically for the purpose of providing grazing for covered
livestock, and the land is physically located in a county rated by
the U.S. Drought Monitor as having a D2 intensity for at least 8
consecutive weeks or D3 or D4 intensity at any time during the
normal grazing period for the specific type of grazing land or
pastureland.
A grazing loss due to fire qualifies for LFP only if the grazing
loss occurs on rangeland that is managed by a Federal agency and the
eligible livestock producer is prohibited by the Federal agency from
grazing the normal permitted livestock on the managed rangeland due
to a fire.
See 7 CFR 1416.205 for further information on eligible grazing
losses under LFP.
---------------------------------------------------------------------------
LFP does not compensate for the increased costs of supplemental
feed, including during 2022 due to drought and wildfires in 2022.
The actual cost of supplemental feed prices, based on corn,
alfalfa, and soybean meal, increased substantially in 2022, compared to
previous years. Using the Dairy Margin Coverage (DMC) \2\ program model
for an adequate supplemental feed ratio, the 5-year average cost to
maintain 1 AU for one month was $66.79, compared to the actual average
cost from January through December, 2022 of $107.51 per month, an
increase of 61 percent.
---------------------------------------------------------------------------
\2\ ELRP 2022 uses the DMC model to calculate actual feed costs
producers experienced in 2022. The DMC formula aims to calculate
feed costs to maintain a dairy cow to produce one hundredweight of
milk, however FSA is using this model, and converting to maintain 1
animal unit. DMC, as outlined in 7 CFR part 1430, calculates a
national average feed cost using the following three items and are
added together:
(1) The product determined by multiplying 1.0728 by the price of
corn per bushel;
(2) The product determined by multiplying 0.00735 by the price
of soybean meal per ton; and
(3) The product determined by multiplying 0.0137 by the price of
alfalfa hay per ton.
---------------------------------------------------------------------------
The cost of feeding one AU per month increased in 2022 compared to
the 5-year average by $40.72 ($107.51 - $66.79) for livestock producers
affected by drought and wildfires, which was not covered by LFP. See
Table 1.
Table 1--2022 Calculated Costs (DMC Model) to Maintain 1 AU/Month
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percentage of
Gross ELRP 2022 increased
5 Year avg. cost (corn, 2022 Cost (corn, 2022 Increase in 2022 LFP payment ELRP 2022 payment calculated benefit/ supplemental feed
alfalfa, soybean meal) alfalfa, soybean cost rate * percentage month/eligible AU costs in 2022
meal) prior to factor compensated by ELRP
2022 prior to factor
--------------------------------------------------------------------------------------------------------------------------------------------------------
$66.79.......................... $107.51 $40.72 $28.37 75 $21.28 52.2
90 25.53 62.7
--------------------------------------------------------------------------------------------------------------------------------------------------------
* The 2022 LFP payment rate may be adjusted according to LFP provisions in 7 CFR 1416.207 for mitigated livestock and restricted grazed animal units due
to a qualifying fire.
The ELRP 2022 calculated benefit is based on using the LFP payment
rate of $28.37 per animal unit per month, calculated as follows:
75 percent x $28.37 = $21.28 (equivalent to 52.2 percent of
increased supplemental feed costs in 2022) and
90 percent x $28.37 = $25.53 (equivalent to 62.7 percent of
increased supplemental feed costs in 2022).
To stay within the available funding, ELRP 2022 payments for
increased supplemental feed costs in 2022 will be factored initially by
25 percent. If funds remain available after initial payments, a second
payment of up to 75 percent may be issued.
Because FSA is using LFP information to generate a reasonable
approximation for the costs covered by ELRP 2022, no action is required
for eligible producers to receive ELRP 2022 payments.
Definitions
The definitions in 7 CFR parts 718, 1400, and 1416 apply to ELRP
2022, except as otherwise provided in this document. The following
definitions also apply.
Average adjusted gross farm income means the average of the person
or legal entity's adjusted gross income derived from farming, ranching,
and forestry operations for the 3 taxable years preceding the most
immediately preceding complete taxable year.
(a) If the resulting average adjusted gross farm income derived
from items 1 through 12 of the definition below for ``income derived
from farming, ranching and forestry operations'' is at least 66.66
percent of the average adjusted gross income of the person or legal
entity, then the average adjusted gross farm income may also take into
consideration income or benefits derived from the following:
(1) The sale of equipment to conduct farm, ranch, or forestry
operations; and
(2) The provision of production inputs and services to farmers,
ranchers, foresters, and farm operations.
(b) The relevant tax years for ELRP 2022 are 2018, 2019, and 2020.
Beginning farmer or rancher means a farmer or rancher who has not
operated a farm or ranch for more than 10 years and who materially and
substantially participates in the operation. For a legal entity to be
considered a beginning farmer or rancher, at least 50 percent of the
interest must be beginning farmers or ranchers.
Income derived from farming, ranching, and forestry operations
means income of an individual or entity derived from:
(1) Production of crops, specialty crops, and unfinished raw
forestry products;
(2) Production of livestock, aquaculture products used for food,
honeybees, and products derived from livestock;
(3) Production of farm-based renewable energy;
(4) Selling (including the sale of easements and development
rights) of farm, ranch, and forestry land, water or hunting rights, or
environmental benefits;
(5) Rental or lease of land or equipment used for farming,
ranching, or forestry operations, including water or hunting rights;
(6) Processing, packing, storing, and transportation of farm,
ranch, or forestry commodities including for renewable energy;
(7) Feeding, rearing, or finishing of livestock;
(8) Payments of benefits, including benefits from risk management
practices, crop insurance indemnities, and catastrophic risk protection
plans;
(9) Sale of land that has been used for agricultural purposes;
(10) Payments and benefits authorized under any program made
available and applicable to payment eligibility and payment limitation
rules;
(11) Income reported on Internal Revenue Service (IRS) Schedule F
or other schedule used by the person or legal entity to report income
from such operations to the IRS;
(12) Wages or dividends received from a closely held corporation,
and IC-DISC (Interest Charge Domestic International Sales Corporation)
or legal entity comprised entirely of family members when more than 50
percent of the legal entity's gross receipts for each tax year are
derived from farming, ranching, and forestry activities as defined in
this part; and
(13) Any other activity related to farming, ranching, and forestry,
as determined by the Deputy Administrator for Farm Programs (Deputy
Administrator).
[[Page 66363]]
LFP means the Livestock Forage Disaster Program under section 1501
of the Agricultural Act of 2014 (7 U.S.C. 9081) and 7 CFR part 1416,
subpart C.
Limited resource farmer or rancher means a farmer or rancher who is
both of the following:
(1) A person whose direct or indirect gross farm sales did not
exceed $179,000 (the amount applicable to the 2022 program year) in
each of the 2019 and 2020 calendar years; and
(2) A person whose total household income was at or below the
national poverty level for a family of four in each of the same 2
previous years referenced in paragraph (1) of this definition. Limited
resource farmer or rancher status can be determined using a website
available through the Limited Resource Farmer and Rancher Online Self
Determination Tool through National Resources and Conservation Service
at https://lrftool.sc.egov.usda.gov.
For an entity to be considered a limited resource farmer or
rancher, all members who hold an ownership interest in the entity must
meet the criteria in paragraphs (1) and (2) of this definition.
Ownership interest means to have either a legal ownership interest
or a beneficial ownership interest in a legal entity. For the purposes
of administering ELRP 2022, a person or legal entity that owns a share
or stock in a legal entity that is a corporation, limited liability
company, limited partnership, or similar type entity where members hold
a legal ownership interest and shares in the profits or losses of such
entity is considered to have an ownership interest in such legal
entity. A person or legal entity that is a beneficiary of a trust or
heir of an estate who benefits from the profits or losses of such
entity is considered to have a beneficial ownership interest in such
legal entity.
Socially disadvantaged farmer or rancher means a farmer or rancher
who is a member of a 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 entities, at
least 50 percent of the ownership interest must be held by individuals
who are members of such a group. 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) Hispanics or Hispanic Americans;
(5) Native Hawaiians or other Pacific Islanders; and
(6) Women.
Underserved farmer or rancher means a beginning farmer or rancher,
limited resource farmer or rancher, socially disadvantaged farmer or
rancher, or veteran farmer or rancher.
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 https://droughtmonitor.unl.edu.
Veteran farmer or rancher means a farmer or rancher who has served
in the Armed Forces (as defined in 38 U.S.C. 101(10) \3\) and:
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\3\ The term ``Armed Forces'' means the United States Army,
Navy, Marine Corps, Air Force, Space Force, and Coast Guard,
including the reserve components.
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(1) Has not operated a farm or ranch for more than 10 years; or
(2) Has obtained status as a veteran (as defined in 38 U.S.C.
101(2) \4\) during the most recent 10-year period.
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\4\ The term ``veteran'' means a person who served in the active
military, naval, air, or space service, and who was discharged or
released under conditions other than dishonorable.
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For an entity to be considered a veteran farmer or rancher, at
least 50 percent of the ownership interest must be held by members who
have served in the Armed Forces and meet the criteria in paragraph (1)
or (2) of this definition.
Wildfire for ELRP 2022 means fire as used in 7 CFR part 1416,
subpart C.
Eligible Livestock Producers
Eligible livestock producers for ELRP 2022 are producers with an
approved 2022 LFP application. For ELRP 2022, the eligibility criteria
applicable to LFP (7 CFR part 1416, subparts A and C) also applies to
ELRP 2022, excluding the LFP average adjusted gross income (AGI)
limitation. FSA will use livestock inventories, forage acreage,
restricted animal units, and grazing days due to fire, and drought
intensity levels already reported to FSA for the 2022 Livestock Forage
Disaster Program Application \5\ (on form number CCC-853), to determine
eligibility and calculate an ELRP 2022 payment, if applicable. Eligible
livestock producers are not required to submit an application for ELRP
2022; however, they must have the following additional forms on file
with FSA within 60-days of ELRP 2022 deadline announced by the Deputy
Administrator to be eligible to receive a payment:
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\5\ As provided in 7 CFR 1416.206 and publicized by FSA, the LFP
application deadline for the 2022 program year was January 30, 2023.
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Form AD-2047, Customer Data Worksheet;
Form CCC-902, Farm Operating Plan for an individual or
legal entity as provided in 7 CFR part 1400;
Form CCC-901, Member Information for Legal Entities (if
applicable); and
A highly erodible land conservation (sometimes referred to
as HELC) and wetland conservation certification as provided in 7 CFR
part 12 (form AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification) for the ELRP 2022 producer and
applicable affiliates.
For a producer to be eligible for a payment based on the higher
payment rate for eligible underserved farmers or ranchers or increased
payment limitation as described below, the following must be submitted
within 60-days of the ELRP 2022 deadline announced by the Deputy
Administrator:
Form CCC-860, Socially Disadvantaged, Limited Resource,
Beginning and Veteran Farmer or Rancher Certification, applicable for
the 2022 program year \6\; or
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\6\ An individual who has filed CCC-860 certifying their status
as a socially disadvantaged, beginning, or veteran farmer or rancher
for a prior program year is not required to submit a subsequent
certification of their status for the 2022 program year because an
individual's status as socially disadvantaged would not change in
different years, and their certification as a beginning or veteran
farmer or rancher includes the relevant date needed to determine for
what programs years the status would apply. An entity that has filed
CCC-860 certifying its status as a socially disadvantaged,
beginning, or veteran farmer or rancher for a prior program year is
not required to submit a subsequent certification of its status for
a later program year unless the entity's status has changed due to
changes in membership. Because a producer's status as a limited
resource farmer or rancher may change annually depending on the
producer's direct and indirect gross farm sales, those producers
must submit CCC-860 for each applicable program year.
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FSA-510, Request for an Exception to the $125,000 Payment
Limitation for Certain Programs, accompanied by a certification from a
certified public accountant or attorney as to that person or legal
entity's certification, for a legal entity and all members of that
entity.
Payment Calculation
The initial ELRP 2022 payment will be equal to the eligible
livestock producer's gross 2022 LFP calculated payment \7\ multiplied
by the applicable
[[Page 66364]]
ELRP 2022 payment percentage of 90 percent for underserved farmers and
ranchers and 75 percent for all other producers multiplied by a 25
percent factor to stay within available funding.\8\ If funds remain
available after initial payments, a second payment of up to 75 percent
may be issued. For example, an underserved eligible livestock
producer's gross 2022 LFP calculation payment is $10,000 multiplied by
the 90 percent ELRP 2022 payment percentage multiplied by the 25
percent factor results in an initial ELRP 2022 payment of $2,250. The
ELRP 2022 payment is intended to represent a reasonable approximation
of 63 percent, factored by 25 percent, of the increased supplemental
feed costs for that producer in 2022.
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\7\ The gross LFP calculated payment is the amount calculated
according to 7 CFR 1416.207, prior to any payment reductions for
reasons including, but not limited to, sequestration, payment
limitation, and the applicant or member of an applicant that is an
entity exceeding the average AGI limitation.
\8\ FSA calculates payments based on a higher payment factor for
underserved farmers and ranchers (or specific groups included in
that term) in several programs, such as Emergency Conservation
Program, Emergency Assistance for Livestock, Honeybees, and Farm-
raised Fish Program (also known as ELAP), and the Tree Assistance
Program. FSA has also used higher payment factors for these
producers in several recently announced programs: the Food Safety
Certification for Specialty Crops Program, the Organic and
Transitional Education and Certification Program, previous ELRP
Phase 1, and ERP. In addition, NAP provides a reduced service fee
and premium for underserved farmers and ranchers. This approach
supports the equitable administration of FSA programs, as
underserved farmers and ranchers are more likely to lack financial
reserves and access to capital that would allow them to cope with
losses due to unexpected events outside of their control.
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Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning
and Veteran Farmer or Rancher Certification, must be on file with FSA
with a certification applicable for the 2022 program year to receive
the higher ELRP 2022 payment rate of 90 percent.
FSA will issue ELRP 2022 payments as 2022 LFP applications are
processed and approved. If a producer files the CCC-860 or FSA-510 form
and the accompanying certification by the deadline announced by the
Deputy Administrator but after their ELRP 2022 payment is issued, FSA
will recalculate the ELRP 2022 payment and issue the additional
calculated amount as applicable.
Payment Limitation
The payment limitation for ELRP 2022 is determined by the person's
or legal entity's average adjusted gross farm income (as defined
above). Specifically, a person or legal entity, other than a joint
venture or general partnership, cannot receive, directly or indirectly,
more than $125,000 in payments under ELRP 2022 if their average
adjusted gross farm income is less than 75 percent of their average AGI
for tax years 2018, 2019, and 2020. If at least 75 percent of the
person or legal entity's average AGI is derived from farming, ranching,
and forestry related activities and the participant provides the
required certification and documentation, as discussed below, the
person or legal entity, other than a joint venture or general
partnership, is eligible to receive, directly or indirectly, up to
$250,000 in ELRP 2022 payments. To receive more than $125,000 in ELRP
2022 payments, producers must submit form FSA-510, accompanied by a
certification from a certified public accountant or attorney as to that
person or legal entity's certification. If a producer requesting the
$250,000 payment limitation is a legal entity, all members of that
entity must also complete FSA-510 and provide the required
certification according to the direct attribution provisions in 7 CFR
1400.105, ``Attribution of Payments.'' If a legal entity would be
eligible for the $250,000 payment limitation based on the legal
entity's average adjusted gross farm income but a member of that legal
entity either does not complete an FSA-510 and provide the required
certification or is not eligible for the $250,000 payment limitation,
the payment to the legal entity will be reduced for the limitation
applicable to the share of the ELRP 2022 payment attributed to that
member.
A payment made to a legal entity will be attributed to those
members who have a direct or indirect ownership interest in the legal
entity unless the payment of the legal entity has been reduced by the
proportionate ownership interest of the member due to that member's
ineligibility.
Attribution of payments made to legal entities will be tracked
through four levels of ownership in legal entities as follows:
First level of ownership: Any payment made to a legal
entity that is owned in whole or in part by a person will be attributed
to the person in an amount that represents the direct ownership
interest in the first-level or payment legal entity;
Second level of ownership: Any payment made to a first-
level legal entity that is owned in whole or in part by another legal
entity (referred to as a second-level legal entity) will be attributed
to the second-level legal entity in proportion to the ownership of the
second-level legal entity in the first-level legal entity; if the
second-level legal entity is owned in whole or in part by a person, the
amount of the payment made to the first-level legal entity will be
attributed to the person in the amount that represents the indirect
ownership in the first-level legal entity by the person;
Third and fourth levels of ownership: Except as provided
in the second-level of ownership bullet above and in the fourth-level
of ownership bullet below, any payments made to a legal entity at the
third and fourth levels of ownership will be attributed in the same
manner as specified in the second level of ownership bullet above; and
Fourth level of ownership: If the fourth level of
ownership is that of a legal entity and not that of a person, a
reduction in payment will be applied to the first-level or payment
legal entity in the amount that represents the indirect ownership in
the first-level or payment legal entity by the fourth-level legal
entity.
Payments made directly or indirectly to a person who is a minor
child will not be combined with the earnings of the minor's parent or
legal guardian.
A producer that is a legal entity must provide the names,
addresses, ownership share, and valid taxpayer identification numbers
of the members holding an ownership interest in the legal entity.
Payments to a legal entity will be reduced in proportion to a member's
ownership share when a valid taxpayer identification number for a
person or legal entity that holds a direct or indirect ownership
interest of less than 10 percent, at the first through fourth levels of
ownership in the business structure, is not provided to FSA. A legal
entity is not eligible to receive ELRP 2022 payments when a valid
taxpayer identification number for a person or legal entity that holds
a direct or indirect ownership interest of 10 percent or more, at the
first through fourth levels of ownership in the business structure, is
not provided to FSA.
If an individual or legal entity is not eligible to receive ELRP
2022 payments due to the individual or legal entity failing to satisfy
payment eligibility provisions, the payment made either directly or
indirectly to the individual or legal entity will be reduced to zero.
The amount of the reduction for the direct payment to the producer will
be commensurate with the direct or indirect ownership interest of the
ineligible individual or ineligible legal entity. Like other programs
administered by FSA, payments made to an Indian Tribe or Tribal
organization, as defined in section 4(b) of the Indian Self-
Determination and Education
[[Page 66365]]
Assistance Act (25 U.S.C. 5304), will not be subject to payment
limitation.
Provisions Requiring Refund to FSA
In the event that any ELRP 2022 payment resulted from erroneous
information reported by the producer or if the producer's 2022 LFP
payment is recalculated after the ELRP 2022 payment is issued, the ELRP
2022 payment will be recalculated, and the producer must refund any
excess payment to FSA, including interest to be calculated from the
date of the disbursement to the producer. If FSA determines that the
producer intentionally misrepresented information used to determine the
producer's ELRP 2022 payment amount, the application will be
disapproved and the producer must refund the full payment to FSA with
interest from the date of disbursement. Any required refunds must be
resolved in accordance with debt settlement regulations in 7 CFR part
3.
General Provisions
General requirements that apply to other FSA-administered commodity
programs also apply to ELRP 2022, including compliance with the
provisions of 7 CFR part 12, ``Highly Erodible Land and Wetland
Conservation,'' and the provisions of 7 CFR 718.6, which address
ineligibility for benefits for offenses involving controlled
substances. Appeal regulations in 7 CFR parts 11 and 780 and equitable
relief and finality provisions in 7 CFR part 718, subpart D, apply to
determinations under ELRP 2022. The determination of matters of general
applicability that are not in response to, or result from, an
individual set of facts are not matters that can be appealed. Such
matters of general applicability include, but are not limited to, the
ELRP 2022 eligibility criteria and payment calculation.
Participants are required to retain documentation in support of
their application for 3 years after the date of approval. Participants
receiving ELRP 2022 payments or any other person who furnishes such
information to USDA must permit authorized representatives of USDA or
the Government Accountability Office, during regular business hours, to
enter the agricultural operation and to inspect, examine, and to allow
representatives to make copies of books, records, or other items for
the purpose of confirming the accuracy of the information provided by
the participant.
The Deputy Administrator has the discretion and authority to waive
or modify filing deadlines and other requirements or program provisions
not specified in law, in cases where the Deputy Administrator
determines it is equitable to do so and where the Deputy Administrator
finds that the lateness or failure to meet such other requirements or
program provisions do not adversely affect the operation of ELRP 2022.
Although producers have a right to a decision on whether they filed
applications by the deadline or not, producers have no right to a
decision in response to a request to waive or modify deadlines or
program provisions. The Deputy Administrator's refusal to exercise
discretion to consider the request will not be considered an adverse
decision and is, by itself, not appealable.
Any payment under ELRP 2022 will be made without regard to
questions of title under State law and without regard to any claim or
lien. The regulations governing offsets in 7 CFR part 3 apply to ELRP
2022 payments.
In either applying for or participating in ELRP 2022, or both, the
producer is subject to laws against perjury and any penalties and
prosecution resulting therefrom, with such laws including but not
limited to 18 U.S.C. 1621. If the producer willfully makes and
represents as true any verbal or written declaration, certification,
statement, or verification that the producer knows or believes not to
be true, in the course of either applying for or participating in ELRP
2022, or both, then the producer is guilty of perjury and, except as
otherwise provided by law, may be fined, imprisoned for not more than 5
years, or both, regardless of whether the producer makes such verbal or
written declaration, certification, statement, or verification within
or outside the United States.
For the purposes of the effect of a lien on eligibility for Federal
programs (28 U.S.C. 3201[euro]), USDA waives the restriction on receipt
of funds under ELRP 2022 but only as to beneficiaries who, as a
condition of the waiver, agree to apply the ELRP 2022 payments to
reduce the amount of the judgment lien.
In addition to any other Federal laws that apply to ELRP 2022, the
following laws apply: 15 U.S.C. 714; and 18 U.S.C. 286, 287, 371, and
1001.
Paperwork Reduction Act Requirements
In compliance with the provisions of the Paperwork Reduction Act
(44 U.S.C. chapter 35), the information collection request has been
approved by OMB under the control number of 0503-0028. FSA will collect
the information from the livestock producers to qualify for the payment
to assist with increased supplemental feed costs. This NOFA is the one-
time announcement of the new ELRP 2022 federal financial assistance
funding.
Environmental Review
The environmental impacts have been considered in a manner
consistent with the provisions of the National Environmental Policy Act
(NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on
Environmental Quality (40 CFR parts 1500-1508), and the FSA regulation
for compliance with NEPA (7 CFR part 799).
As previously stated, ELRP 2022 is providing payments to eligible
livestock producers who faced increased supplemental feed costs as a
result of forage losses due to a qualifying drought or wildfire in
calendar year 2022. The limited discretionary aspects of ELRP 2022 do
not have the potential to impact the human environment as they are
administrative. Accordingly, these discretionary aspects are covered by
the FSA Categorical Exclusions specified in Sec. 799.31(b)(6)(iv) that
applies to individual farm participation in FSA programs where no
ground disturbance or change in land use occurs as a result of the
proposed action or participation; and Sec. 799.31(b)(6)(vi) that
applies to safety net programs.
No Extraordinary Circumstances (Sec. 799.33) exist. As such, the
implementation of ELRP 2022 and the participation in ELRP 2022 do not
constitute major Federal actions that would significantly affect the
quality of the human environment, individually or cumulatively.
Therefore, FSA will not prepare an environmental assessment or
environmental impact statement for this action and this document serves
as documentation of the programmatic environmental compliance decision
for this federal action.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing,\9\ to which this document applies is
10.980--Emergency Livestock Relief Program 2022.
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\9\ See https://sam.gov/content/assistance-listings.
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USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender
[[Page 66366]]
expression), sexual orientation, disability, age, marital status,
family or parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Individuals who require alternative means of communication for
program information (for example, braille, large print, audiotape,
American Sign Language, etc.) should contact the responsible Agency or
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint and
at any USDA office or write a letter addressed to USDA and provide in
the letter all the information requested in the form. To request a copy
of the complaint form, call (866) 632-9992. Submit your completed form
or letter to USDA by mail to: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410 or email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2023-21068 Filed 9-26-23; 8:45 am]
BILLING CODE 3411-EB-P