Notice of Funds Availability (NOFA); Marketing Assistance for Specialty Crops, 99212-99220 [2024-29017]
Download as PDF
99212
Notices
Federal Register
Vol. 89, No. 237
Tuesday, December 10, 2024
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.
DEPARTMENT OF AGRICULTURE
khammond on DSK9W7S144PROD with NOTICES
Submission for OMB Review;
Comment Request; Reinstatement
The Department of Agriculture has
submitted the following information
collection requirement(s) to OMB for
review and reinstatement under the
Paperwork Reduction Act of 1995,
Public Law 104–13. Comments are
requested regarding whether the
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility; the accuracy of the
agency’s estimate of burden including
the validity of the methodology and
assumptions used; ways to enhance the
quality, utility and clarity of the
information to be collected; and ways to
minimize the burden of the collection of
information on those who are to
respond, including through the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms of
information technology.
Comments regarding this information
collection received by January 9, 2025
will be considered. Written comments
and recommendations for the proposed
information collection should be
submitted within 30 days of the
publication of this notice on the
following website www.reginfo.gov/
public/do/PRAMain. Find this
particular information collection by
selecting ‘‘Currently under 30-day
Review—Open for Public Comments’’ or
by using the search function.
An agency may not conduct or
sponsor a collection of information
unless the collection of information
displays a currently valid OMB control
number and the agency informs
potential persons who are to respond to
the collection of information that such
persons are not required to respond to
the collection of information unless it
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
displays a currently valid OMB control
number.
ACTION:
Food Safety and Inspection Service
SUMMARY:
Title: Foodborne Illness Outbreak
Surveys for the FSIS Public Health
Partners.
OMB Control Number: 0583–0175.
Summary of Collection: The Food
Safety and Inspection Service (FSIS) has
been delegated the authority to exercise
the functions of the Secretary as
provided in the Federal Meat Inspection
Act (FMIA) (21 U. S.C. 601 et seq.), the
Poultry Products Inspection Act (PPIA)
(21 U.S.C. 451, et seq.), and the Egg
Products Inspection Act (EPIA) (21
U.S.C. 1031). These statues mandate
that FSIS protect the public by ensuring
that meat, poultry, and egg products are
safe, wholesome, unadulterated, and
properly labeled and packaged. FSIS
intends to collect information from state
and territorial government partners on
ways to strengthen the collaborative
response to illness outbreaks associated
with FSIS-regulated food products.
Need and Use of the Information:
FSIS will administer a series of surveys
regarding foodborne illness outbreak
investigation to state and territorial
government partners. The results of
these surveys will help FSIS assess
communication trends and prioritize
outreach efforts.
Description of Respondents: State,
Local or Tribal Government.
Number of Respondents: 200.
Frequency of Responses: Reporting:
Annually.
Total Burden Hours: 67.
Levi S. Harrell,
Departmental Information Collection
Clearance Officer.
[FR Doc. 2024–28941 Filed 12–9–24; 8:45 am]
BILLING CODE 3410–DM–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation Farm
Service Agency
Notification of funds
availability.
The Farm Service Agency
(FSA) is announcing the availability of
Marketing Assistance for Specialty
Crops (MASC), which will provide
eligible specialty crop producers with
marketing assistance payments that will
help them engage in activities that aid
in expanding domestic specialty crop
markets or in developing new markets
for their specialty crops.
DATES:
Applications Due Date: We will
accept applications from December 10,
2024, through January 8, 2025.
FOR FURTHER INFORMATION CONTACT:
Kathy Sayers; telephone: (202) 720–
6870; 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 and text telephone (TTY)) or dial
711 for Telecommunications Relay
Service (both voice and text telephone
users can initiate this call from any
telephone).
SUPPLEMENTARY INFORMATION:
Background
Specialty crop growers have typically
faced higher marketing costs relative to
non-specialty crop producers due to the
tenderness and perishability of fruits,
vegetables, floriculture, nursery crops,
and herbs. They must invest in
specialized handling and transport
equipment that control for temperature
and humidity, invest in packaging
equipment and materials that prevent
damage to commodities, and confront
the need to get perishable products to
market quickly. They also face labor
costs that are nearly 45 percent of total
variable 1 costs—far higher than the 9
percent average across all the
agricultural sector.2 Labor costs have
increased steadily in recent years and
input costs, in general, remain elevated
in comparison with pre-pandemic
levels.3
[Docket ID FSA–2024–0011]
Notice of Funds Availability (NOFA);
Marketing Assistance for Specialty
Crops
Commodity Credit Corporation
and Farm Service Agency, U.S.
Department of Agriculture (USDA).
AGENCY:
PO 00000
Frm 00001
Fmt 4703
Sfmt 4703
1 Variable costs are out-of-pocket expenses that
change in proportion to how much of a commodity
is produced.
2 USDA, Economic Research Service. 2022
Agricultural Resource Management Survey (ARMS)
data.
3 Coppess, Jonathan. ‘‘Measuring Farm Policy,
Part 4: Basic Input Costs and Payments.’’ farmdoc
daily (14):66. April 4, 2024. https://
E:\FR\FM\10DEN1.SGM
10DEN1
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
khammond on DSK9W7S144PROD with NOTICES
Specialty crop operations have
limited ability to pass along these high
labor, input (seed, fertilizer, pesticide),
and marketing costs to retailers or
consumers given global competition for
markets. Further, cash receipts for fruits
and nuts—which reflect the income
from sales of those specialty crops to
purchasers—are down. For example,
fruit and nut cash receipts 4 in calendar
year 2024 are 25 percent below the
previous inflation-adjusted 10-year
average—a greater reduction over that
10-year period than for any commodity
grouping other than tobacco. In contrast,
for crops overall (including corn,
soybeans, etc.), cash receipts in 2024 are
forecast up 10 percent relative to the 10year inflation-adjusted average.5
High costs—combined with lower
cash receipts—have, in many cases,
reduced net cash farm income (NCFI),6
especially among operations that do not
have the ability to take advantage of
economies of scale. Data from a USDA
survey of farm operators shows NCFI for
specialty crop growers in 2022 was 11
percent below the average for the
previous 10 years, and 4.6 percent
below 2021 reported levels. For smallscale growers (those with less than
$100,000 in NCFI and the least able to
take advantage of economies of scale),
the situation is even more dire: NCFI
has been negative for 3 of the 5 years
between 2018 and 2022.7
Specialty crops are important from an
economic perspective to many states, as
illustrated by the 2022 Census of
Agriculture.8 For 127 counties (or
county equivalents), specialty crop
farms accounted for more than 40
percent of all farms within the county.
farmdocdaily.illinois.edu/2024/04/measuring-farmpolicy-part-4-basic-input-costs-and-payments.html.
4 Cash receipts reflect the gross income from the
sale of a commodity during a given calendar year.
U.S. Department of Agriculture, Economic Research
Service. (2024, September 5). ‘‘Farm Income and
Wealth Statistics.’’
5 U.S. Department of Agriculture, Economic
Research Service. (2024, September 5). ‘‘Farm
Income and Wealth Statistics.’’
6 NCFI is defined as cash receipts from farming
as well as cash farm-related income (including
Federal Government payments) minus cash
expenses.
7 Economic Research Service and National
Agricultural Statistics Service, Agricultural
Resource Management Survey (ARMS), ‘‘Tailored
reports: Farm Structure and Finance’’ data product
available at https://my.data.ers.usda.gov/arms/
tailored-reports.
8 The information in this paragraph is from
USDA, National Agricultural Statistics Service.
‘‘2022 Census of Agriculture: Most U.S. Counties
with High Concentration of Specialty Crop Farms
are Located along Coasts.’’ https://www.ers.
usda.gov/data-products/chart-gallery/gallery/chartdetail/?chartId=109079#:∼:text=Half%20
of%20the%20counties%20with,
farm%20growing%20primarily%20
specialty%20crops.
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
Most of these counties are in states
along the west and east coasts
(including Alaska and Hawaii) and in or
near metropolitan areas. Half of the
counties with the highest concentration
of farms primarily engaged in growing
specialty crops were in California, New
York, Florida, and New Jersey.9
Specialty crops form the backbone of
the agriculture sector in such states and,
as a result, maintaining grower viability
is important for those states’ economies.
Expanding domestic markets and
increasing U.S. consumption of fruits
and vegetables to improve diets is also
a critical impetus for providing
assistance under MASC. Fruits and
vegetables supply energy, nutrients, and
fiber—all of which contribute to greater
health. A diet rich in vegetables and
fruits can lower blood pressure, reduce
the risk of heart disease and stroke,
prevent some types of cancer, lower risk
of eye and digestive problems, and have
a positive effect upon blood sugar.10
While Americans are consuming more
fruits and vegetables than in 1970, the
average U.S. diet still falls short of the
recommendations in the ‘‘2020–2025
Dietary Guidelines for Americans ’’ 11
for these major food groups. Fruit and
vegetable per capita consumption are at
only 40 percent and 70 percent,
respectively, of the recommendation
levels found in the Dietary Guidelines.
Increasing the domestic consumption of
specialty crops benefits consumers and
can expand U.S. specialty crop markets.
MASC payments are being provided in
order to expand existing markets and
develop new markets. As a result of
such market expansion, specialty crop
consumption is expected to increase.
With greater consumption, and a greater
focus on healthy eating, sector
profitability is also expected to improve
over the long term.
Other factors complicate the viability
of the sector further, as noted in an
October 2024 Congressional Research
9 In California, 8 of the top 10 commodities for
cash receipts are specialty crops. In Florida and
New Jersey, 5 of the top 10 commodities in terms
of cash receipts are specialty crops. For New York,
2 of the top 10 commodities in terms of cash
receipts are specialty crops. See the USDA,
Economic Research Service Farm Income and
Wealth Statistics, Cash Receipts by State: https://
data.ers.usda.gov/reports.aspx?ID=
17843#Pc9e3d09f30b1439aa5787fc201b399ae_5_
17iT0R0x22.
10 Harvard T.H. Chan School of Public Health.
‘‘The Nutrition Source: Vegetables and Fruits.’’
Accessed October 9, 2024. https://
nutritionsource.hsph.harvard.edu/what-shouldyou-eat/vegetables-and-fruits/.
11 U.S. Department of Agriculture and the U.S.
Department of Health and Human Services.
‘‘Dietary Guidelines for Americans, 2020–2025.’’
https://www.dietaryguidelines.gov/sites/default/
files/2020-12/Dietary_Guidelines_for_Americans_
2020-2025.pdf.
PO 00000
Frm 00002
Fmt 4703
Sfmt 4703
99213
Service (CRS) report.12 Specifically,
pandemic-era supply chain disruptions
and higher input costs have contributed
to increased market volatility since
2020. Further, the increase in disaster
events has exacerbated uncertainty and
the likelihood that disruptions affect
farm losses, and potentially consumer
access to specialty crops. Small-scale
specialty crop growers (those with less
than $100,000 in sales per year) are less
able to take advantage of economies of
scale than larger growers, and smallscale growers often have the greatest
marketing and related challenges (such
as outreach, advertising, and the need
for refrigerated trucks).
In response to these economic and
health-based factors, USDA will use
section 5(e) of the Commodity Credit
Corporation (CCC) Charter Act (7 U.S.C.
714c(e)) to make payments to eligible
producers in order to increase
consumption of specialty crops by
aiding expansion of domestic markets or
aiding in the development of new and
additional markets. Without
intervention to support producers’
activities to expand domestic markets
and develop new and additional
markets for their specialty crops in
calendar year 2025, high marketing
costs and challenges may be a barrier to
such expansion and development in
2025, which may result in the exit of
many operations, reducing domestic
availability of fruits, vegetables, and
other specialty crops, to the detriment of
many local economies. Further,
assistance to this sector will create
additional market opportunities,
including those for local foods, such as
setting up farmer’s markets near the
geographic area of production.
FSA will administer MASC on behalf
of CCC. MASC payments will provide
eligible specialty crop producers with
marketing assistance that gives them the
ability to engage in activities that aid in
expanding domestic specialty crop
markets or in developing new markets
for their crops, such as outreach,
marketing, and investing in packaging,
storage, and transportation equipment
and supplies that are necessary to
protect perishable specialty crops.
MASC will use up to $2 billion 13 in
CCC funding to provide assistance to
producers of specialty crops, subject to
a payment limitation of $125,000.
MASC payments are based on a
12 Johnson, Renee. ‘‘Marketing and Pricing in the
U.S. Fruit and Vegetable Industry.’’ Congressional
Research Service. October 4, 2024. https://
crsreports.congress.gov/product/pdf/R/R48213.
13 Funding of $1,886,000,000 is available for
MASC after sequestration of 5.7 percent. Individual
MASC payments will not be subject to further
sequestration.
E:\FR\FM\10DEN1.SGM
10DEN1
99214
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
producer’s sales of specialty crops, as
described below, and adjustments will
be made to ensure that payments do not
exceed the available funding.
khammond on DSK9W7S144PROD with NOTICES
Definitions
The following definitions apply to
this notice:
Average adjusted gross farm income
means the average of the person or legal
entity’s adjusted gross income (AGI)
derived from farming, ranching, and
forestry operations, including losses, for
the base period consisting of the 2021,
2022, and 2023 tax years.
If the resulting average adjusted gross
farm income derived from items 1
through 12 of the definition of income
derived from farming, ranching, and
forestry operations is at least 66.66
percent of the average AGI 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, trade, or other
disposition of equipment to conduct
farm, ranch, or forestry operations; and
(2) The provision of production
inputs and production services to
farmers, ranchers, foresters, and farm
operations.
For legal entities not required to file
a Federal income tax return, or a person
or legal entity that did not have taxable
income in 1 or more tax years during the
base period, the average will be the
adjusted gross farm income, including
losses, averaged for the 2021, 2022, and
2023 tax years, as determined by FSA.
A new legal entity will have its adjusted
gross farm income averaged only for
those years of the base period for which
it was in business; however, a new legal
entity will not be considered ‘‘new’’ to
the extent it takes over an existing
operation and has any elements of
common ownership interest and land
with the preceding person or legal entity
from which it took over. When there is
such commonality, income of the
previous person or legal entity will be
averaged with that of the new legal
entity for the base period. For a person
filing a joint tax return, the certification
of average adjusted gross farm income
may be reported as if the person had
filed a separate Federal tax return and
the calculation is consistent with the
information supporting the filed joint
return.
Average AGI means the average of the
adjusted gross income as defined under
26 U.S.C. 62 or comparable measure of
the person or legal entity. The relevant
tax years for the 2025 program year are
2021, 2022, and 2023.
Crop year means:
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
(1) For insured crops, the crop year as
defined according to the applicable
Federal crop insurance policy; and
(2) For NAP-covered crops, the crop
year as defined in 7 CFR 1437.3.
Deputy Administrator means the FSA
Deputy Administrator for Farm
Programs.
Farming operation means a business
enterprise engaged in the production of
agricultural products, commodities, or
livestock, operated by a person, legal
entity, or joint operation. A person or
legal entity may have more than one
farming operation if the person or legal
entity is a member of one or more legal
entity or joint operation.
Federal crop insurance means an
insurance policy reinsured by the
Federal Crop Insurance Corporation
administered by RMA under the
provisions of the Federal Crop
Insurance Act (7 U.S.C. 1501–1524), as
amended. It does not include private
plans of insurance.
Federal crop insurance indemnity
means the payment to a participant for
crop losses covered under Federal crop
insurance administered by RMA in
accordance with the Federal Crop
Insurance Act.
Floriculture means the commercial
production of flowers and cut greenery
that are field-grown or grown in a
controlled environment, including those
planted in containers or other growing
mediums.
Fruit means the edible reproductive
body of a seed plant or tree nut (such
as apple, orange, and almond) such that
fruit means the harvestable or harvested
part of a plant developed from a flower.
Income derived from farming,
ranching, and forestry operations means
income of a person or legal entity
derived from:
(1) Production of 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;
PO 00000
Frm 00003
Fmt 4703
Sfmt 4703
(8) Payments of benefits, including
benefits from risk management
practices, Federal crop insurance
indemnities, and catastrophic risk
protection plans;
(9) Sale of land that has been used for
agricultural purposes;
(10) Benefits (including, but not
limited to, cost-share assistance and
other payments) from any Federal
program made available and applicable
to payment eligibility and payment
limitation rules, as provided in 7 CFR
part 1400;
(11) Income reported on IRS Schedule
F or other schedule, approved by the
Deputy Administrator for Farm
Programs, 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, an
Interest Charge Domestic International
Sales Corporation (IC–DISC), 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 document; and
(13) Any other activity related to
farming, ranching, or forestry, as
determined by the Deputy
Administrator.
IRS means the Department of the
Treasury, Internal Revenue Service.
Legal entity means a corporation, joint
stock company, association, limited
partnership, limited liability company,
irrevocable trust, estate, charitable
organization, general partnership, joint
venture, or other similar organization
created under Federal or State law
including any such organization
participating in a business structure as
a partner in a general partnership, a
participant in a joint venture, a grantor
of a revocable trust, or as a participant
in a similar organization. A business
operating as a sole proprietorship is
considered a legal entity.
NAP means the Noninsured Crop
Disaster Assistance Program under
section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7
U.S.C. 7333) and 7 CFR part 1437.
Nursery crops means decorative or
nondecorative plants grown in a
container or controlled environment for
commercial sale.
Ownership interest means to have
either a legal ownership interest or a
beneficial ownership interest in a legal
entity. For the purposes of
administering MASC, 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
E:\FR\FM\10DEN1.SGM
10DEN1
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
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 also considered to have
a beneficial ownership interest in such
legal entity.
Person means an individual who is a
natural person and does not include a
legal entity.
Production inputs mean material to
conduct farming operations, such as
seeds, chemicals, and fencing supplies.
Production services mean services
provided to support a farming
operation, such as custom farming,
custom feeding, and custom fencing.
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.
USDA means the U.S. Department of
Agriculture.
Vegetable means the edible part of an
herbaceous plant (such as cabbage or
potato) or fleshy fruiting body of a
fungus (such as white button or
shiitake) grown for an edible part such
that vegetable means the harvestable or
harvested part of any plant or fungus
whose fruit, fleshy fruiting bodies,
seeds, roots, tubers, bulbs, stems, leaves,
or flower parts are used as food and
includes mushrooms, sprouts, and herbs
(such as basil or cilantro).
khammond on DSK9W7S144PROD with NOTICES
Specialty Crops
For MASC, ‘‘specialty crop’’ includes
only the following crops:
• fruits, including, but not limited to,
dried fruits;
• vegetables, including, but not
limited to, dry edible beans and peas,
mushrooms, and vegetable seed;
• tree nuts;
• nursery crops;
• Christmas trees;
• floriculture;
• culinary and medicinal herbs and
spices;
• honey;
• hops;
• maple sap;
• tea;
• turfgrass; and
• grass seed.
Common examples of specialty crops
can be found at https://
www.ams.usda.gov/sites/default/files/
media/
USDASpecialtyCropDefinition.pdf.
The following crops are not specialty
crops for MASC:
• field and grain crops, such as
amaranth (for grain), barley (including
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
malting barley), buckwheat, corn (other
than sweet corn), millet, oats, quinoa,
rice, rye, sorghum, triticale, wheat, and
wild rice);
• forage, hay, and cover crops, such
as alfalfa, birdsfoot trefoil, clover, hay,
grasses, mixed forage, perennial
peanuts, sunn hemp, and vetch;
• oilseed crops, such as camelina,
canola, crambe, flax, flaxseed, linseed,
mustard seed, rapeseed, safflower,
sesame, soybeans, and sunflower seed;
• other crops such as cotton,
cottonseed, hemp, kochia (prostrata),
lespedeza, milkweed, peanuts,
primrose, seed of ineligible crops (other
than grass seed), sugar beets, sugarcane,
tobacco, and crops with an intended use
of fallow, forage, grazing, green manure,
or left standing; and
• other agricultural products such as
aquatic animal species (such as fish and
shellfish), dairy products, eggs,
livestock products, and tofu.
Eligible Producers
To be eligible for MASC, a producer
must be in the business of farming at the
time of application and be entitled to an
ownership share and share in the risk of
producing a specialty crop that will be
sold in calendar year 2025. To be
considered in the business of farming at
the time of application, a producer must
have an active business operation with
assets and resources needed to grow,
harvest, and market a specialty crop in
calendar year 2025. Producers who
previously grew a specialty crop but
have ceased operation at the time of
application (for example, through the
sale of land and equipment needed to
produce a crop) are not eligible for
MASC.
In addition, consistent with other FSA
assistance programs, a producer must be
one of the following to be eligible:
• Citizen of the United States;
• Resident alien, which for purposes
of MASC means ‘‘lawful alien’’ as
defined in 7 CFR 1400.3;
• Partnership organized under State
law;
• Corporation, limited liability
company, or other organizational
structure organized under State law;
• Indian Tribe or Tribal organization,
as defined in section 4(b) of the Indian
Self-Determination and Education
Assistance Act (25 U.S.C. 5304); or
• Foreign person or foreign entity
who meets all requirements as described
in 7 CFR part 1400.
The regulations in 7 CFR part 1400,
subpart E, are applicable to foreign
persons and legal entities (foreign and
domestic) containing members,
stockholders, or partners who are not
PO 00000
Frm 00004
Fmt 4703
Sfmt 4703
99215
U.S. citizens or resident aliens that own
more than 10 percent of the legal entity.
Federal, State, and local governments,
including public schools, are not
eligible for MASC payments.
Eligible Specialty Crop Sales and
Required Documentation
MASC payments are based on a
producer’s total specialty crop sales in
calendar year 2023 or 2024 (except for
new producers, as described below)
because the amount of sales reflects a
producer’s existing market and
operation size, which impacts their
ability to take advantage of economies of
scale. Marketing economies of scale are
achieved when an operation has the
ability to spread marketing costs, such
as advertising, over larger outputs. In
lieu of a complex production-based
calculation, FSA is using prior year
sales as an alternative indicator of
output, which simplifies the application
process by using information that is
easily determined by producers. Using
prior year sales as a proxy for output to
calculate MASC assistance provides
specialty crop growers with additional
resources to address increased
marketing costs associated with
expanded or new markets which
directly impacts their ability to realize
greater economies of scale.
Eligible specialty crop sales only
include sales of commercially marketed
raw specialty crops grown in the United
States by the producer. The portion of
sales derived from adding value to a
specialty crop, such as sorting,
processing, or packaging, is not
included in a producer’s eligible sales.
For example, the eligible sales for a
producer who grows cucumbers and
sells raw cucumbers and cucumber
pickles at a local farmer’s market would
be the sales of raw cucumbers sold at
the market plus the raw value of the
cucumbers used in the pickles. The
value of the cucumbers used in the
pickles would be determined by
multiplying the quantity of cucumbers
processed into pickles by the price of
raw cucumbers sold at the market. Sales
of specialty crops purchased for resale
may be included only if there is a
change in characteristic due to the time
held (for example, a 2-inch plant that
was sold as an 18-inch plant after 4
months). Eligible producers who market
their specialty crops through a
subscription or membership-based
service, such as a community-supported
agriculture (CSA) model, may include
the portion of the membership or
subscription fees received for specialty
crops in their eligible sales.
MASC is providing assistance to
specialty crop producers in order to
E:\FR\FM\10DEN1.SGM
10DEN1
khammond on DSK9W7S144PROD with NOTICES
99216
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
increase domestic consumption of such
crops, which is intended to expand
domestic specialty crop markets or
develop new markets for such crops in
2025; therefore, MASC assistance will
be based on a producer’s anticipated
sales in the 2025 calendar year. For
most producers, FSA will use a
producer’s specialty crop sales in
calendar year 2023 or 2024 as a proxy
for expected specialty crop sales in the
2025 calendar year. Allowing producers
to choose between 2023 and 2024
calendar year sales is intended to
provide flexibility for producers who
had reduced sales in one of those years
due to disaster events or other impacts
such as price fluctuations or loss of
markets.
For producers who grew and sold
specialty crops in either the 2023 or
2024 calendar year, for the purpose of
calculating payments under MASC, the
total specialty crop sales certified on the
MASC application will be equal to one
of the following, as elected by the
producer:
• 2023 calendar year sales of
specialty crops, plus Federal crop
insurance indemnities and NAP
payments for such specialty crops for
the 2023 crop year; or
• 2024 calendar year sales of
specialty crops, plus Federal crop
insurance indemnities and NAP
payments for such specialty crops for
the 2024 crop year.
To be considered a 2023 or 2024
calendar year sale, the producer must
have received payment for the specialty
crop during the applicable calendar
year. Federal crop insurance
indemnities and NAP payments for the
2023 or 2024 crop year will be included
for 2023 or 2024, respectively,
regardless of when they were received
by the producer, and are included in
eligible sales to more accurately
represent what a producer would expect
to sell in calendar year 2025 by taking
into account crops that would have been
sold in the selected year if not for losses
due to disaster events covered by
Federal crop insurance and NAP.
If requested by FSA, producers must
provide documentation to substantiate
their reported 2023 or 2024 calendar
year sales and Federal crop insurance
indemnities.14 Acceptable
documentation must show the crop,
quantity sold, and the dollar amount
received. Acceptable documentation to
substantiate total specialty crop sales
includes, but is not limited to:
• sales receipts;
14 Producers
are not required to submit
documentation of 2023 or 2024 crop year NAP
payments included in their eligible sales because
FSA has that information on file.
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
• sales records;
• ledgers of income;
• contract or sales agreements;
• income statements of deposit slips;
• register tapes with supporting
documentation acceptable to FSA;
• purchase orders;
• third party processor or distributor
statements;
• contemporaneous diaries that are
determined acceptable by USDA,
• other sales documents indicating
the crop was sold; and
• IRS Schedule F accompanied by
documentation to support that the
reported amounts are from sales of
specialty crops.
If requested by FSA, the producer
must also provide acceptable evidence
that the producer grew and harvested
the crop and was in the business of
farming at the time of application. Such
evidence may include, but is not limited
to:
• acreage reports;
• land use records, such as lease
agreements or ownership records;
• field inspection or certification
records, such as reports from organic
certification inspections or other third
party inspections;
• shipping or transportation receipts;
• packaging or processing records;
• photographic evidence;
• Federal crop insurance records;
• NAP records;
• labor records;
• records of agricultural inputs, such
as seed, fertilizer, and pesticides;
• contemporaneous harvest records;
and
• invoices for custom harvesting.
Producers must submit requested
documentation to FSA within 15 days of
the request.
FSA is allowing certain producers
(collectively referred to as ‘‘new
producers’’) to use an estimate of their
2025 calendar year specialty crop sales,
in lieu of actual 2023 or 2024 calendar
year sales, if the producer:
• Began producing specialty crops in
2023 or 2024 but did not have sales due
to the immaturity of the crop;
• Began producing specialty crops in
2024 but did not have a complete year
of sales; or
• Is beginning to grow specialty crops
in 2025.
New producers have no or limited
sales and will need to develop new
markets for their specialty crops in
order to be successful, and MASC
payments are intended to provide
assistance to these producers that will
help them create or develop markets for
their specialty crops in calendar year
2025. To be eligible for MASC, a new
producer must have one of the
following:
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
• A legally binding contract or
agreement wherein the producer has
agreed to sell a specialty crop during
calendar year 2025; or
• Evidence that, at the time of
application, a specialty crop has been
planted and is expected to be harvested
and sold in the 2025 calendar year.
All new producers must provide
acceptable documentation that shows
the producer is in the business of
farming at time of application and
intends to sell a specialty crop in the
2025 calendar year. Expected 2025 sales
must be based on realistic projections
that are supported by acceptable
documentation demonstrating the
producer’s ability to achieve the
expected sales and their ability to grow,
harvest, and market the expected yield
or inventory. For new producers who
have entered into a legally binding sales
contract or purchase agreement for the
sale of their specialty crop, their 2025
expected specialty crop sales must be
based on the terms of their contract or
agreement regarding the total sale
amount or the price and amount of
inventory or production. For new
producers who are growing a specialty
crop intended for sale in 2025 who do
not have a contract or agreement, their
expected 2025 specialty crop sales must
be based on their specialty crop acreage
or inventory that is planted at the time
of application and published yields and
prices such as Federal Crop Insurance
Corporation-established data, FSAestablished National Crop Table data,
and National Agricultural Statistic
Service data, or published local data
sources.
New producers must submit form
FSA–1141, Marketing Assistance for
Specialty Crops (MASC) New Producer
Expected Sales Worksheet, and provide
documentation to substantiate their
expected 2025 calendar year sales by
January 8, 2025.
Payment Factors and Calculation
FSA will calculate MASC payments
based on the producer’s total specialty
crop sales for the calendar year elected
by the producer (either 2023 or 2024, or
expected 2025 sales for new producers),
as described above. The total specialty
crop sales reported by the producer will
be separated into the sales ranges shown
in Table 1. The sales ranges are based
on the traditional Agricultural Resource
Management Survey (ARMS)
groupings.15
15 ARMS is the U.S. Department of Agriculture’s
primary source of information on the production
practices, resource use, and economic well-being of
America’s farms and ranches. See https://
www.ers.usda.gov/data-products/arms-farm-
E:\FR\FM\10DEN1.SGM
10DEN1
99217
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
After the end of the application
period, FSA will determine a percent
payment factor for each sales range
(referred to as ‘‘a’’ through ‘‘e’’ in Table
1). These factors are necessary to ensure
that payments do not exceed the $2
billion in allocated funding. The factors
will depend on the number of eligible
MASC applicants, the total sales
reported by those applicants for each
sales range, and the payment limitation
per person or legal entity. Therefore,
factors are unknown and cannot be
determined until after the application
period closes.
In order to streamline MASC
assistance and provide payments
quickly, FSA will use the CFAP 2
modelling approach to develop MASC
percent payment factors; the CFAP 2
approach relied on statistical analysis of
the ratio of variable costs per farm to
sales per farm.16 17 According to general
convention, a farm’s expenses per unit
of production or sales tends to decrease
as farm size increases.18 Larger farms
tend to have lower costs of production
per unit of sales; hence, MASC
payments as a share of total sales fall as
sales per farm increase. The regression
analysis used for CFAP2 confirmed that
the ratio of variable expenses to sales
decreases as farm size (sales range)
increases.
As explained in more detail below,
the predicted ratio of variable expenses
to sales per farm for each sales class
determines the relationship between the
payment rates for each of the five sales
ranges. Information on the number of
farms and sales per farm in each sales
range, and on applicants hitting the
payment limit, will be used to re-adjust
the payment rates for each range so that
total payments stay within the $2
billion. As a result, estimated payment
factors will likely differ than those
shown as examples in Table 2.
Note that estimated payment factors
for each sales range automatically adjust
per the mathematical equations that
maintain the ratio between each
payment factor and the predicted
variable expenses to sales per farm. For
example, as the number of eligible
producers increases, the $2 billion will
be distributed across more producers,
causing the payment factors for each
sales range to decrease.
The payment factors will decrease as
the sales range increases, meaning the
first sales range (up to $49,999) will
have the largest factor and the fifth sales
range (all sales over $1 million) will
have the smallest payment factor. While
the actual payment factors cannot be
determined before the end of the
application period, Table 2 provides
examples of estimated payment factors
for four scenarios.19 The second column
contains the ratio of variable costs to
sales per farm that was predicted from
the statistical analysis used for CFAP2,
which will also be used for MASC. The
57,000 applications in the third column
are the number of specialty crop farms
(from ARMS) that applied for the CFAP
2 program design, with applications in
the three successive columns being
multiples, and the applications in the
last columns being roughly the numbers
of specialty crops farms in the 2022
Census of Agriculture. Each column of
payment factors assumes the same $2
billion in total payments.
As shown in Table 2, the second
column is essential to determining the
other table values. If the variable costs
to sales ratio in the first row of numbers
(for example, 0.903) is divided by that
in the second row (for example, 0.849),
then it yields a ratio that is
approximately equal to the payment
factor relationships between the first
and second sales category rows (for
example, 11.3 divided by 10.6).20 This
relationship holds across all rows and
columns. The factors are expected to
range between 2 to 11 percent,
depending on the number of potential
applications but could go higher or
lower depending on how many eligible
producers apply.
TABLE 1—SALES RANGES
Percent
payment
factor
Sales range
Up to $49,999
$50,000-$99,999
$100,000-$499,999
$500,000-$999,999
All sales over $1 million
a
b
c
d
e
TABLE 2—ESTIMATED PAYMENT FACTOR EXAMPLES ASSUMING $2 BILLION IN PAYMENTS
Predicted ratio
of variable
costs to sales
per farm
Sales range
khammond on DSK9W7S144PROD with NOTICES
Up to $49,999
$50,000–$99,999
$100,000–$499,999
$500,000–$999,999
All sales over $1 million
17:28 Dec 09, 2024
57,000
applicants
0.903
0.849
0.826
0.771
0.748
financial-and-crop-production-practices/ for more
information.
16 Coronavirus Food Assistance Program 2 CostBenefit Analysis (September 15, 2020), available at
https://www.regulations.gov/document/FSA-20200006-0002.
17 The second through fourth sales range
groupings in Table 1 are the traditional groupings
used by USDA to summarize ARMS data by farm
size. However, for sales values per farm of $49,000
or less, the USDA data summaries are further
broken down into $9,999 or less and $10,000 to
$49,999; for sales of $100,000 to $499,999 the
USDA sales summaries were further broken down
into $100,000 to $249,999 and $250,000 to
$499,000; and for sales values of $1,000,000 or
more, into $1,000,000 to $4,900,000 and $5,000,000
or more. For CFAP 2, USDA collapsed the lower
VerDate Sep<11>2014
Example of estimated percent payment factors
Jkt 265001
11.3
10.6
10.3
9.6
9.3
two, middle two, and upper two ranges into one
range each in order to simplify the payment design.
18 The decrease in costs of production per unit of
output or sales as farm size increases is known as
economies of scale, see for example, C. Morrison
Paul, R. Nehring, D. Banker, and A. Somwaru. 2004.
‘‘Scale Economies and Efficiency in U.S.
Agriculture: Are Traditional Farms History?’’
Journal of Productivity Analysis vol 22: pp 185–
205; Gardner, B. 2002. ‘‘American Agriculture in
the Twentieth Century: How it Flourished and
What it Cost,’’ Harvard University Press.
19 The examples of MASC payment factors for
each sales range are based on CFAP 2 program data
for specialty crop producers. Therefore, the data
represent those producers who self-selected and
applied for CFAP 2 and do not necessarily represent
those specialty crop producers who may apply for
MASC. While CFAP 2 was similar to MASC in
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
113,000
applicants
5.7
5.3
5.2
4.9
4.7
170,000
applicants
3.8
3.6
3.5
3.2
3.1
227,000
applicants
2.8
2.7
2.6
2.4
2.3
terms of producer and specialty crop eligibility,
estimated MASC payment factors extrapolated from
CFAP 2 data are shown only as illustrative
examples and final payment factors will be
announced in a news release and may be different
from those shown here. To develop the scenarios
for Table 2, the 57,000 CFAP 2 applications were
assumed to provide an estimate of the minimum
number of applicants. Higher applicant scenarios
(up to 227,000 applicants) were developed while
preserving the underlying distribution of the CFAP
2 data. For the sake of simplicity, the examples in
Table 2 do not account for payment limitations per
person or legal entity.
20 For any given pair of rows, differences across
the columns between the ratios of the pair of rows
is due to rounding error in moving from the
computer software’s level of precision to the one
decimal place used in the actual payment rates.
E:\FR\FM\10DEN1.SGM
10DEN1
99218
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
khammond on DSK9W7S144PROD with NOTICES
To calculate a producer’s MASC
payment, FSA will:
(1) Multiply the amount of sales in
each range in Table 1 by the
corresponding percent payment factor
for that range; and
(2) Calculate the sum of the results for
each sales range.
For example, if a producer reported
$450,000 of total specialty crop sales for
their elected year, FSA would calculate
a payment equal to the sum of the
following:
• $49,999 (the amount of sales in the
first range) multiplied by percent
payment factor a;
• $50,000 (the amount of sales in the
second range) multiplied by percent
payment factor b; and
• $350,001 (the amount of sales in the
third range) multiplied by percent
payment factor c.
Payments are subject to a payment
limitation of $125,000, as described
below. FSA will issue MASC payments
after the end of the application period.
If demand for MASC payments exceeds
available funding, either MASC
payments may be prorated, the payment
limitation may be lowered, or both. If
proration or a reduction of the payment
limitation is necessary, the reduction or
lowered payment limitation will apply
equally to all MASC participants. If
additional funding remains available
after MASC payments are issued and
any appeals and requests for equitable
relief have been resolved, FSA may
issue an additional payment.
Average AGI Limitation and Payment
Limitation
A person or legal entity, other than a
joint venture or general partnership,
will not be eligible to receive, directly
or indirectly, a MASC payment if the
average adjusted gross income of the
person or legal entity exceeds $900,000
for 2021, 2022, and 2023, unless the
person or legal entity’s average adjusted
gross farm income is at least 75 percent
of their average AGI.
A person or legal entity, other than a
joint venture or general partnership,
cannot receive, directly or indirectly,
more than $125,000 in MASC payments.
This payment limitation is consistent
with the payment limitation used in
other FSA programs such as the
Agriculture Risk Coverage and Price
Loss Coverage programs, the Livestock
Forage Disaster Program, NAP at the
basic coverage level, and the Rice
Production Program.
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
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
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 21 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; 22
• 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
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
be combined with the earnings of the
minor’s parent or legal guardian.
A person or legal entity must provide
the name, address, valid taxpayer
21 Attribution of payments through four levels of
ownership in legal entities is consistent with the
approach used in other FSA programs specified in
7 CFR 1400.1.
22 The ‘‘first level or payment legal entity’’ means
that the payment entity will have a reduction
applied, and if the payment entity happens to be
a joint venture, that reduction is applied to the first
level, or highest level, for payments. The ‘‘first level
or payment legal entity’’ is the highest level of
ownership of the applicant to whom payments can
be attributed or limited. If the applicant is a
business type that does not have a limitation or
attribution, the reduction is applied to the first
level, but if the business type can have the
reduction applied directly to it, then the limitation
applies.
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
identification number, and ownership
share of each person, or the name,
address, valid taxpayer identification
number, and ownership share of each
legal entity, that holds or acquires an
ownership interest in the legal entity.
MASC 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 or above the fourth level
of ownership in the business structure
is not provided to USDA. A legal entity
will not be eligible to receive payment
when a valid taxpayer identification
number for a person or legal entity that
holds a direct or indirect ownership
interest of 10 percent or greater at or
above the fourth level of ownership in
the business structure is not provided to
USDA.
If a person or legal entity is not
eligible to receive MASC payments due
to the person or legal entity failing to
satisfy payment eligibility provisions,
the payment made either directly or
indirectly to the person 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 person 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 SelfDetermination and Education
Assistance Act (25 U.S.C. 5304), will not
be subject to payment limitation.
How To Apply
Applicants must submit FSA–1140,
Marketing Assistance for Specialty
Crops (MASC) Application, to their
local FSA county office 23 by January 8,
2025. Applicants will submit 1
application that includes their total
specialty crop sales in all counties
nationwide. New producers must also
submit all required documentation and
FSA–1141 by January 8, 2025. FSA will
not take action on applications from
new producers that are submitted
without FSA–1141 and required
documentation.
Applicants must also submit the
following eligibility forms to FSA by
January 8, 2026, if not already on file
with FSA for the 2025 program year:
• AD–2047, Customer Data
Worksheet, for new applicants and
23 To locate the nearest FSA county office, visit
the USDA Service Center locator at https://
www.farmers.gov/working-with-us/service-centerlocator.
E:\FR\FM\10DEN1.SGM
10DEN1
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
applicants who need to update their
information;
• CCC–901, Member Information for
Legal Entities, if applicable;
• CCC–902E, Farm Operating Plan for
an Entity; if applicable;
• CCC–902I, Farm Operating Plan for
an Individual, if applicable;
• CCC–941, Averaged Adjusted Gross
Income (AGI) and Consent to Disclosure
of Tax Information, for the producer and
members of entities;
• CCC–942, Certification of Income
from Farming, Ranching and Forestry
Operations, if applicable, for the
producer and members of entities; and
• AD–1026 Highly Erodible Land
Conservation (HELC) and Wetland
Conservation (WC) Certification, for the
producer and affiliated persons, as
specified in 7 CFR 12.8.
khammond on DSK9W7S144PROD with NOTICES
Other Provisions
General requirements that apply to
other FSA-administered commodity
programs also apply to MASC.
Producers that receive MASC payments
must be in compliance with the
provisions of 7 CFR part 12, ‘‘Highly
Erodible Land and Wetland
Conservation,’’ 24 for the 2025 crop year,
and the provisions of 7 CFR 718.6,
which address ineligibility for benefits
for offenses involving controlled
substances, for the 2025 program year.
All information provided to FSA for
program eligibility and payment
calculation purposes is subject to spot
check. Participants are required to retain
documentation in support of their
application for 3 years after the date of
approval. Participants receiving MASC
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 operation
and to inspect, examine, and 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.
If a MASC payment resulted from
erroneous information provided by a
participant, or any person acting on
their behalf, the payment will be
recalculated and the participant must
refund any excess payment to FSA with
interest calculated from the date of the
disbursement of the payment. If FSA
24 To comply with the requirements of 7 CFR part
12, producers and affiliates must establish a
detailed farm record with FSA, unless the producer
or affiliate does not have interest in land devoted
to agriculture (for example, beekeepers who place
their hives on another person’s land and producers
of crops grown in greenhouses who do not own or
lease any agricultural land themselves).
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
determines that the applicant
intentionally misrepresented
information provided on their
application, the application will be
disapproved and the applicant must
refund the full payment to FSA with
interest from the date of disbursement.
Applicants have a right to a decision
in response to their application. If an
applicant submits an application or
required documentation to an FSA
county office after the deadline, the
submission will be considered a request
to waive the deadline. Requests to waive
or modify program provisions,
including requests to waive the
deadline, are at the discretion of the
Deputy Administrator. The Deputy
Administrator has the authority to
waive or modify application deadlines
and other requirements or program
provisions not specified in law, in cases
where the Deputy Administrator
determines: (1) it is equitable to do so;
and (2) the lateness or failure to meet
such other requirements or program
provisions do not adversely affect the
operation of MASC. Applicants who
request to waive or modify MASC
provisions do not have a right to a
decision on those requests. The Deputy
Administrator’s refusal to exercise
discretion on requests to waive or
modify MASC provisions will not be
considered an adverse decision and is,
by itself, not appealable.
Equitable relief and finality
provisions specified in 7 CFR part 718,
subpart D, apply to determinations
under MASC. Persons and legal entities
who file an application with FSA have
the right to an administrative review of
any FSA adverse decision with respect
to the application under the appeals
procedures at 7 CFR parts 780 and 11.
The determination of matters of general
applicability that are not in response to,
or do not result from, an individual set
of facts in an individual participant’s
application are not matters that can be
appealed. Such matters of general
applicability include, but are not
limited to, eligible specialty crops, the
payment calculation, payment
limitation, and payment factors.
Any payment under MASC 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 MASC payments.
In either applying for or participating
in MASC, or both, the applicant is
subject to laws against perjury
(including but not limited to 18 U.S.C.
1621). If the applicant willfully makes
and represents as true any verbal or
written declaration, certification,
statement, or verification that the
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
99219
applicant knows or believes not to be
true, in the course of either applying for
or participating in MASC, or both, then
the applicant may be found to be guilty
of perjury. Except as otherwise provided
by law, if guilty of perjury the applicant
may be fined, imprisoned for not more
than 5 years, or both, regardless of
whether the applicant 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(e)), USDA waives the
restriction on receipt of funds under
MASC but only as to beneficiaries who,
as a condition of the waiver, agree to
apply the MASC payments to reduce the
amount of the judgment lien.
In addition to any other Federal laws
that apply to MASC, the following laws
apply: 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 provide financial assistance to
specialty crop producers, if eligible, to
help them engage in activities that aid
in expanding domestic specialty crop
markets or in developing new markets
for their crops as described in this
NOFA.
Environmental Review
The environmental impacts of this
notice 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).
The purpose of MASC is to provide
assistance to specialty crop operations
to expand domestic specialty crop
markets or develop new markets for
their crops. The Categorical Exclusions
in 7 CFR 799.31 apply, specifically 7
CFR 799.31(b)(6)(iii) (that is, financial
assistance to supplement income). No
Extraordinary Circumstances (7 CFR
799.33) exist. FSA has determined that
this notice does not constitute a major
Federal action 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
regulatory action.
E:\FR\FM\10DEN1.SGM
10DEN1
99220
Federal Register / Vol. 89, No. 237 / Tuesday, December 10, 2024 / Notices
khammond on DSK9W7S144PROD with NOTICES
Federal Assistance Programs
USDA is an equal opportunity
provider, employer, and lender.
The title and number of the Federal
assistance programs, as found in the
Assistance Listing,25 to which this
document applies is 10.096, Marketing
Assistance for Specialty Crops (MASC).
Zach Ducheneaux,
Administrator, Farm Service Agency, and
Executive Vice President, Commodity Credit
Corporation.
USDA Non-Discrimination Policy
BILLING CODE 3411–E2–P
In accordance with Federal civil
rights law and U.S. Department of
Agriculture (USDA) civil rights
regulations and policies, USDA, its
Agencies, offices, and employees, and
institutions participating in or
administering USDA programs are
prohibited from discriminating based on
race, color, national origin, religion, sex,
gender identity (including gender
expression), sexual orientation,
disability, age, marital status, family or
parental status, income derived from a
public assistance program, political
beliefs, or reprisal or retaliation for prior
civil rights activity, in any program or
activity conducted or funded by USDA
(not all bases apply to all programs).
Remedies and complaint filing
deadlines vary by program or incident.
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.
[FR Doc. 2024–29017 Filed 12–9–24; 8:45 am]
DEPARTMENT OF AGRICULTURE
Forest Service
Wallowa-Whitman National Forest,
Oregon; Wallowa-Whitman National
Forest Travel Management Plan;
Withdrawal
Forest Service, Agriculture
(USDA).
ACTION: Notice; withdrawal.
AGENCY:
The Wallowa-Whitman
National Forest is withdrawing its
notice of intent to prepare an
environmental impact statement (EIS)
for the Wallowa-Whitman Travel
Management Project. The original notice
of intent was published in the Federal
Register on May 3, 2007, and the notice
of availability for the draft EIS was
published on June 19, 2009. The
Wallowa-Whitman National Forest’s
decision to withdraw the notice of
intent is based on prioritization of
agency resources toward forest plan
revision.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Questions concerning this notice should
be directed to Wallowa-Whitman Forest
Supervisor, Shaun McKinney, at
shaun.mckinney@usda.gov or (503)
273–2413.
Individuals who use
telecommunications devices for the
hearing impaired may call 711 to reach
the Telecommunications Relay Service,
24 hours a day, every day of the year,
including holidays.
JoLynn Anderson,
Federal Register Liaison.
[FR Doc. 2024–28920 Filed 12–9–24; 8:45 am]
BILLING CODE 3411–15–P
COMMISSION ON CIVIL RIGHTS
Notice of Public Meeting of the Utah
Advisory Committee to the U.S.
Commission on Civil Rights
U.S. Commission on Civil
Rights.
ACTION: Notice of public meeting.
AGENCY:
Notice is hereby given,
pursuant to the provisions of the rules
SUMMARY:
25 See
https://sam.gov/content/assistance-listings.
VerDate Sep<11>2014
17:28 Dec 09, 2024
Jkt 265001
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
and regulations of the U.S. Commission
on Civil Rights (Commission) and the
Federal Advisory Committee Act, that
the Utah Advisory Committee
(Committee) to the U.S. Commission on
Civil Rights will hold a public meeting
via Zoom at 2 p.m. MT on Tuesday,
December 17, 2024. The purpose of the
meeting is to debrief the testimony
received on the topic, The Civil Rights
Implications of Disparate Outcomes in
Utah’s K–12 Education System.
DATES: Tuesday, December 17, 2024,
from 2 p.m.–3:30 p.m. mountain time.
ADDRESSES: The meeting will be held
via Zoom Webinar.
Registration Link (Audio/Visual):
https://www.zoomgov.com/webinar/
register/WN_-oVCRrbnSbalP8y
FF7s52g
Join by Phone (Audio Only): (833) 435–
1820 USA Toll-Free; Meeting ID: 160
947 5042
FOR FURTHER INFORMATION CONTACT:
David Barreras, Designated Federal
Officer, at dbarreras@usccr.gov or (202)
656–8937.
SUPPLEMENTARY INFORMATION: This
committee meeting is available to the
public through the registration link
above. Any interested member of the
public may listen to the meeting. An
open comment period will be provided
to allow members of the public to make
a statement as time allows. Per the
Federal Advisory Committee Act, public
minutes of the meeting will include a
list of persons who are present at the
meeting. If joining via phone, callers can
expect to incur regular charges for calls
they initiate over wireless lines,
according to their wireless plan. The
Commission will not refund any
incurred charges. Callers will incur no
charge for calls they initiate over landline connections to the toll-free
telephone number. Closed captioning
will be available by selecting ‘‘CC’’ in
the meeting platform. To request
additional accommodations, please
email lschiller@usccr.gov at least 10
business days prior to the meeting.
Members of the public are entitled to
submit written comments; the
comments must be received within 30
days following the meeting. Written
comments may be emailed to David
Barreras at dbarreras@usccr.gov.
Persons who desire additional
information may contact the Regional
Programs Coordination Unit at (202)
656–8937.
Records generated from this meeting
may be inspected and reproduced at the
Regional Programs Coordination Unit,
as they become available, both before
and after the meeting. Records of the
meeting will be available via the file
E:\FR\FM\10DEN1.SGM
10DEN1
Agencies
- DEPARTMENT OF AGRICULTURE
- Commodity Credit Corporation Farm Service Agency
[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Notices]
[Pages 99212-99220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29017]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation Farm Service Agency
[Docket ID FSA-2024-0011]
Notice of Funds Availability (NOFA); Marketing Assistance for
Specialty Crops
AGENCY: Commodity Credit Corporation and Farm Service Agency, U.S.
Department of Agriculture (USDA).
ACTION: Notification of funds availability.
-----------------------------------------------------------------------
SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of Marketing Assistance for Specialty Crops (MASC), which will provide
eligible specialty crop producers with marketing assistance payments
that will help them engage in activities that aid in expanding domestic
specialty crop markets or in developing new markets for their specialty
crops.
DATES:
Applications Due Date: We will accept applications from December
10, 2024, through January 8, 2025.
FOR FURTHER INFORMATION CONTACT: Kathy Sayers; telephone: (202) 720-
6870; email: [email protected]. Individuals with disabilities who
require alternative means for communication should contact the 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).
SUPPLEMENTARY INFORMATION:
Background
Specialty crop growers have typically faced higher marketing costs
relative to non-specialty crop producers due to the tenderness and
perishability of fruits, vegetables, floriculture, nursery crops, and
herbs. They must invest in specialized handling and transport equipment
that control for temperature and humidity, invest in packaging
equipment and materials that prevent damage to commodities, and
confront the need to get perishable products to market quickly. They
also face labor costs that are nearly 45 percent of total variable \1\
costs--far higher than the 9 percent average across all the
agricultural sector.\2\ Labor costs have increased steadily in recent
years and input costs, in general, remain elevated in comparison with
pre-pandemic levels.\3\
---------------------------------------------------------------------------
\1\ Variable costs are out-of-pocket expenses that change in
proportion to how much of a commodity is produced.
\2\ USDA, Economic Research Service. 2022 Agricultural Resource
Management Survey (ARMS) data.
\3\ Coppess, Jonathan. ``Measuring Farm Policy, Part 4: Basic
Input Costs and Payments.'' farmdoc daily (14):66. April 4, 2024.
https://farmdocdaily.illinois.edu/2024/04/measuring-farm-policy-part-4-basic-input-costs-and-payments.html.
---------------------------------------------------------------------------
[[Page 99213]]
Specialty crop operations have limited ability to pass along these
high labor, input (seed, fertilizer, pesticide), and marketing costs to
retailers or consumers given global competition for markets. Further,
cash receipts for fruits and nuts--which reflect the income from sales
of those specialty crops to purchasers--are down. For example, fruit
and nut cash receipts \4\ in calendar year 2024 are 25 percent below
the previous inflation-adjusted 10-year average--a greater reduction
over that 10-year period than for any commodity grouping other than
tobacco. In contrast, for crops overall (including corn, soybeans,
etc.), cash receipts in 2024 are forecast up 10 percent relative to the
10-year inflation-adjusted average.\5\
---------------------------------------------------------------------------
\4\ Cash receipts reflect the gross income from the sale of a
commodity during a given calendar year. U.S. Department of
Agriculture, Economic Research Service. (2024, September 5). ``Farm
Income and Wealth Statistics.''
\5\ U.S. Department of Agriculture, Economic Research Service.
(2024, September 5). ``Farm Income and Wealth Statistics.''
---------------------------------------------------------------------------
High costs--combined with lower cash receipts--have, in many cases,
reduced net cash farm income (NCFI),\6\ especially among operations
that do not have the ability to take advantage of economies of scale.
Data from a USDA survey of farm operators shows NCFI for specialty crop
growers in 2022 was 11 percent below the average for the previous 10
years, and 4.6 percent below 2021 reported levels. For small-scale
growers (those with less than $100,000 in NCFI and the least able to
take advantage of economies of scale), the situation is even more dire:
NCFI has been negative for 3 of the 5 years between 2018 and 2022.\7\
---------------------------------------------------------------------------
\6\ NCFI is defined as cash receipts from farming as well as
cash farm-related income (including Federal Government payments)
minus cash expenses.
\7\ Economic Research Service and National Agricultural
Statistics Service, Agricultural Resource Management Survey (ARMS),
``Tailored reports: Farm Structure and Finance'' data product
available at https://my.data.ers.usda.gov/arms/tailored-reports.
---------------------------------------------------------------------------
Specialty crops are important from an economic perspective to many
states, as illustrated by the 2022 Census of Agriculture.\8\ For 127
counties (or county equivalents), specialty crop farms accounted for
more than 40 percent of all farms within the county. Most of these
counties are in states along the west and east coasts (including Alaska
and Hawaii) and in or near metropolitan areas. Half of the counties
with the highest concentration of farms primarily engaged in growing
specialty crops were in California, New York, Florida, and New
Jersey.\9\ Specialty crops form the backbone of the agriculture sector
in such states and, as a result, maintaining grower viability is
important for those states' economies.
---------------------------------------------------------------------------
\8\ The information in this paragraph is from USDA, National
Agricultural Statistics Service. ``2022 Census of Agriculture: Most
U.S. Counties with High Concentration of Specialty Crop Farms are
Located along Coasts.'' https://www.ers.usda.gov/data-products/
chart-gallery/gallery/chart-detail/
?chartId=109079#:~:text=Half%20of%20the%20counties%20with,farm%20grow
ing%20primarily%20specialty%20crops.
\9\ In California, 8 of the top 10 commodities for cash receipts
are specialty crops. In Florida and New Jersey, 5 of the top 10
commodities in terms of cash receipts are specialty crops. For New
York, 2 of the top 10 commodities in terms of cash receipts are
specialty crops. See the USDA, Economic Research Service Farm Income
and Wealth Statistics, Cash Receipts by State: https://data.ers.usda.gov/reports.aspx?ID=17843#Pc9e3d09f30b1439aa5787fc201b399ae_5_17iT0R0x22.
---------------------------------------------------------------------------
Expanding domestic markets and increasing U.S. consumption of
fruits and vegetables to improve diets is also a critical impetus for
providing assistance under MASC. Fruits and vegetables supply energy,
nutrients, and fiber--all of which contribute to greater health. A diet
rich in vegetables and fruits can lower blood pressure, reduce the risk
of heart disease and stroke, prevent some types of cancer, lower risk
of eye and digestive problems, and have a positive effect upon blood
sugar.\10\ While Americans are consuming more fruits and vegetables
than in 1970, the average U.S. diet still falls short of the
recommendations in the ``2020-2025 Dietary Guidelines for Americans ''
\11\ for these major food groups. Fruit and vegetable per capita
consumption are at only 40 percent and 70 percent, respectively, of the
recommendation levels found in the Dietary Guidelines. Increasing the
domestic consumption of specialty crops benefits consumers and can
expand U.S. specialty crop markets. MASC payments are being provided in
order to expand existing markets and develop new markets. As a result
of such market expansion, specialty crop consumption is expected to
increase. With greater consumption, and a greater focus on healthy
eating, sector profitability is also expected to improve over the long
term.
---------------------------------------------------------------------------
\10\ Harvard T.H. Chan School of Public Health. ``The Nutrition
Source: Vegetables and Fruits.'' Accessed October 9, 2024. https://nutritionsource.hsph.harvard.edu/what-should-you-eat/vegetables-and-fruits/.
\11\ U.S. Department of Agriculture and the U.S. Department of
Health and Human Services. ``Dietary Guidelines for Americans, 2020-
2025.'' https://www.dietaryguidelines.gov/sites/default/files/2020-12/Dietary_Guidelines_for_Americans_2020-2025.pdf.
---------------------------------------------------------------------------
Other factors complicate the viability of the sector further, as
noted in an October 2024 Congressional Research Service (CRS)
report.\12\ Specifically, pandemic-era supply chain disruptions and
higher input costs have contributed to increased market volatility
since 2020. Further, the increase in disaster events has exacerbated
uncertainty and the likelihood that disruptions affect farm losses, and
potentially consumer access to specialty crops. Small-scale specialty
crop growers (those with less than $100,000 in sales per year) are less
able to take advantage of economies of scale than larger growers, and
small-scale growers often have the greatest marketing and related
challenges (such as outreach, advertising, and the need for
refrigerated trucks).
---------------------------------------------------------------------------
\12\ Johnson, Renee. ``Marketing and Pricing in the U.S. Fruit
and Vegetable Industry.'' Congressional Research Service. October 4,
2024. https://crsreports.congress.gov/product/pdf/R/R48213.
---------------------------------------------------------------------------
In response to these economic and health-based factors, USDA will
use section 5(e) of the Commodity Credit Corporation (CCC) Charter Act
(7 U.S.C. 714c(e)) to make payments to eligible producers in order to
increase consumption of specialty crops by aiding expansion of domestic
markets or aiding in the development of new and additional markets.
Without intervention to support producers' activities to expand
domestic markets and develop new and additional markets for their
specialty crops in calendar year 2025, high marketing costs and
challenges may be a barrier to such expansion and development in 2025,
which may result in the exit of many operations, reducing domestic
availability of fruits, vegetables, and other specialty crops, to the
detriment of many local economies. Further, assistance to this sector
will create additional market opportunities, including those for local
foods, such as setting up farmer's markets near the geographic area of
production.
FSA will administer MASC on behalf of CCC. MASC payments will
provide eligible specialty crop producers with marketing assistance
that gives them the ability to engage in activities that aid in
expanding domestic specialty crop markets or in developing new markets
for their crops, such as outreach, marketing, and investing in
packaging, storage, and transportation equipment and supplies that are
necessary to protect perishable specialty crops. MASC will use up to $2
billion \13\ in CCC funding to provide assistance to producers of
specialty crops, subject to a payment limitation of $125,000. MASC
payments are based on a
[[Page 99214]]
producer's sales of specialty crops, as described below, and
adjustments will be made to ensure that payments do not exceed the
available funding.
---------------------------------------------------------------------------
\13\ Funding of $1,886,000,000 is available for MASC after
sequestration of 5.7 percent. Individual MASC payments will not be
subject to further sequestration.
---------------------------------------------------------------------------
Definitions
The following definitions apply to this notice:
Average adjusted gross farm income means the average of the person
or legal entity's adjusted gross income (AGI) derived from farming,
ranching, and forestry operations, including losses, for the base
period consisting of the 2021, 2022, and 2023 tax years.
If the resulting average adjusted gross farm income derived from
items 1 through 12 of the definition of income derived from farming,
ranching, and forestry operations is at least 66.66 percent of the
average AGI 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, trade, or other disposition of equipment to conduct
farm, ranch, or forestry operations; and
(2) The provision of production inputs and production services to
farmers, ranchers, foresters, and farm operations.
For legal entities not required to file a Federal income tax
return, or a person or legal entity that did not have taxable income in
1 or more tax years during the base period, the average will be the
adjusted gross farm income, including losses, averaged for the 2021,
2022, and 2023 tax years, as determined by FSA. A new legal entity will
have its adjusted gross farm income averaged only for those years of
the base period for which it was in business; however, a new legal
entity will not be considered ``new'' to the extent it takes over an
existing operation and has any elements of common ownership interest
and land with the preceding person or legal entity from which it took
over. When there is such commonality, income of the previous person or
legal entity will be averaged with that of the new legal entity for the
base period. For a person filing a joint tax return, the certification
of average adjusted gross farm income may be reported as if the person
had filed a separate Federal tax return and the calculation is
consistent with the information supporting the filed joint return.
Average AGI means the average of the adjusted gross income as
defined under 26 U.S.C. 62 or comparable measure of the person or legal
entity. The relevant tax years for the 2025 program year are 2021,
2022, and 2023.
Crop year means:
(1) For insured crops, the crop year as defined according to the
applicable Federal crop insurance policy; and
(2) For NAP-covered crops, the crop year as defined in 7 CFR
1437.3.
Deputy Administrator means the FSA Deputy Administrator for Farm
Programs.
Farming operation means a business enterprise engaged in the
production of agricultural products, commodities, or livestock,
operated by a person, legal entity, or joint operation. A person or
legal entity may have more than one farming operation if the person or
legal entity is a member of one or more legal entity or joint
operation.
Federal crop insurance means an insurance policy reinsured by the
Federal Crop Insurance Corporation administered by RMA under the
provisions of the Federal Crop Insurance Act (7 U.S.C. 1501-1524), as
amended. It does not include private plans of insurance.
Federal crop insurance indemnity means the payment to a participant
for crop losses covered under Federal crop insurance administered by
RMA in accordance with the Federal Crop Insurance Act.
Floriculture means the commercial production of flowers and cut
greenery that are field-grown or grown in a controlled environment,
including those planted in containers or other growing mediums.
Fruit means the edible reproductive body of a seed plant or tree
nut (such as apple, orange, and almond) such that fruit means the
harvestable or harvested part of a plant developed from a flower.
Income derived from farming, ranching, and forestry operations
means income of a person or legal entity derived from:
(1) Production of 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, Federal crop insurance indemnities, and catastrophic risk
protection plans;
(9) Sale of land that has been used for agricultural purposes;
(10) Benefits (including, but not limited to, cost-share assistance
and other payments) from any Federal program made available and
applicable to payment eligibility and payment limitation rules, as
provided in 7 CFR part 1400;
(11) Income reported on IRS Schedule F or other schedule, approved
by the Deputy Administrator for Farm Programs, 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,
an Interest Charge Domestic International Sales Corporation (IC-DISC),
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 document; and
(13) Any other activity related to farming, ranching, or forestry,
as determined by the Deputy Administrator.
IRS means the Department of the Treasury, Internal Revenue Service.
Legal entity means a corporation, joint stock company, association,
limited partnership, limited liability company, irrevocable trust,
estate, charitable organization, general partnership, joint venture, or
other similar organization created under Federal or State law including
any such organization participating in a business structure as a
partner in a general partnership, a participant in a joint venture, a
grantor of a revocable trust, or as a participant in a similar
organization. A business operating as a sole proprietorship is
considered a legal entity.
NAP means the Noninsured Crop Disaster Assistance Program under
section 196 of the Federal Agriculture Improvement and Reform Act of
1996 (7 U.S.C. 7333) and 7 CFR part 1437.
Nursery crops means decorative or nondecorative plants grown in a
container or controlled environment for commercial sale.
Ownership interest means to have either a legal ownership interest
or a beneficial ownership interest in a legal entity. For the purposes
of administering MASC, 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
[[Page 99215]]
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 also considered to have a beneficial ownership interest in
such legal entity.
Person means an individual who is a natural person and does not
include a legal entity.
Production inputs mean material to conduct farming operations, such
as seeds, chemicals, and fencing supplies.
Production services mean services provided to support a farming
operation, such as custom farming, custom feeding, and custom fencing.
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.
USDA means the U.S. Department of Agriculture.
Vegetable means the edible part of an herbaceous plant (such as
cabbage or potato) or fleshy fruiting body of a fungus (such as white
button or shiitake) grown for an edible part such that vegetable means
the harvestable or harvested part of any plant or fungus whose fruit,
fleshy fruiting bodies, seeds, roots, tubers, bulbs, stems, leaves, or
flower parts are used as food and includes mushrooms, sprouts, and
herbs (such as basil or cilantro).
Specialty Crops
For MASC, ``specialty crop'' includes only the following crops:
fruits, including, but not limited to, dried fruits;
vegetables, including, but not limited to, dry edible
beans and peas, mushrooms, and vegetable seed;
tree nuts;
nursery crops;
Christmas trees;
floriculture;
culinary and medicinal herbs and spices;
honey;
hops;
maple sap;
tea;
turfgrass; and
grass seed.
Common examples of specialty crops can be found at https://www.ams.usda.gov/sites/default/files/media/USDASpecialtyCropDefinition.pdf.
The following crops are not specialty crops for MASC:
field and grain crops, such as amaranth (for grain),
barley (including malting barley), buckwheat, corn (other than sweet
corn), millet, oats, quinoa, rice, rye, sorghum, triticale, wheat, and
wild rice);
forage, hay, and cover crops, such as alfalfa, birdsfoot
trefoil, clover, hay, grasses, mixed forage, perennial peanuts, sunn
hemp, and vetch;
oilseed crops, such as camelina, canola, crambe, flax,
flaxseed, linseed, mustard seed, rapeseed, safflower, sesame, soybeans,
and sunflower seed;
other crops such as cotton, cottonseed, hemp, kochia
(prostrata), lespedeza, milkweed, peanuts, primrose, seed of ineligible
crops (other than grass seed), sugar beets, sugarcane, tobacco, and
crops with an intended use of fallow, forage, grazing, green manure, or
left standing; and
other agricultural products such as aquatic animal species
(such as fish and shellfish), dairy products, eggs, livestock products,
and tofu.
Eligible Producers
To be eligible for MASC, a producer must be in the business of
farming at the time of application and be entitled to an ownership
share and share in the risk of producing a specialty crop that will be
sold in calendar year 2025. To be considered in the business of farming
at the time of application, a producer must have an active business
operation with assets and resources needed to grow, harvest, and market
a specialty crop in calendar year 2025. Producers who previously grew a
specialty crop but have ceased operation at the time of application
(for example, through the sale of land and equipment needed to produce
a crop) are not eligible for MASC.
In addition, consistent with other FSA assistance programs, a
producer must be one of the following to be eligible:
Citizen of the United States;
Resident alien, which for purposes of MASC means ``lawful
alien'' as defined in 7 CFR 1400.3;
Partnership organized under State law;
Corporation, limited liability company, or other
organizational structure organized under State law;
Indian Tribe or Tribal organization, as defined in section
4(b) of the Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304); or
Foreign person or foreign entity who meets all
requirements as described in 7 CFR part 1400.
The regulations in 7 CFR part 1400, subpart E, are applicable to
foreign persons and legal entities (foreign and domestic) containing
members, stockholders, or partners who are not U.S. citizens or
resident aliens that own more than 10 percent of the legal entity.
Federal, State, and local governments, including public schools,
are not eligible for MASC payments.
Eligible Specialty Crop Sales and Required Documentation
MASC payments are based on a producer's total specialty crop sales
in calendar year 2023 or 2024 (except for new producers, as described
below) because the amount of sales reflects a producer's existing
market and operation size, which impacts their ability to take
advantage of economies of scale. Marketing economies of scale are
achieved when an operation has the ability to spread marketing costs,
such as advertising, over larger outputs. In lieu of a complex
production-based calculation, FSA is using prior year sales as an
alternative indicator of output, which simplifies the application
process by using information that is easily determined by producers.
Using prior year sales as a proxy for output to calculate MASC
assistance provides specialty crop growers with additional resources to
address increased marketing costs associated with expanded or new
markets which directly impacts their ability to realize greater
economies of scale.
Eligible specialty crop sales only include sales of commercially
marketed raw specialty crops grown in the United States by the
producer. The portion of sales derived from adding value to a specialty
crop, such as sorting, processing, or packaging, is not included in a
producer's eligible sales. For example, the eligible sales for a
producer who grows cucumbers and sells raw cucumbers and cucumber
pickles at a local farmer's market would be the sales of raw cucumbers
sold at the market plus the raw value of the cucumbers used in the
pickles. The value of the cucumbers used in the pickles would be
determined by multiplying the quantity of cucumbers processed into
pickles by the price of raw cucumbers sold at the market. Sales of
specialty crops purchased for resale may be included only if there is a
change in characteristic due to the time held (for example, a 2-inch
plant that was sold as an 18-inch plant after 4 months). Eligible
producers who market their specialty crops through a subscription or
membership-based service, such as a community-supported agriculture
(CSA) model, may include the portion of the membership or subscription
fees received for specialty crops in their eligible sales.
MASC is providing assistance to specialty crop producers in order
to
[[Page 99216]]
increase domestic consumption of such crops, which is intended to
expand domestic specialty crop markets or develop new markets for such
crops in 2025; therefore, MASC assistance will be based on a producer's
anticipated sales in the 2025 calendar year. For most producers, FSA
will use a producer's specialty crop sales in calendar year 2023 or
2024 as a proxy for expected specialty crop sales in the 2025 calendar
year. Allowing producers to choose between 2023 and 2024 calendar year
sales is intended to provide flexibility for producers who had reduced
sales in one of those years due to disaster events or other impacts
such as price fluctuations or loss of markets.
For producers who grew and sold specialty crops in either the 2023
or 2024 calendar year, for the purpose of calculating payments under
MASC, the total specialty crop sales certified on the MASC application
will be equal to one of the following, as elected by the producer:
2023 calendar year sales of specialty crops, plus Federal
crop insurance indemnities and NAP payments for such specialty crops
for the 2023 crop year; or
2024 calendar year sales of specialty crops, plus Federal
crop insurance indemnities and NAP payments for such specialty crops
for the 2024 crop year.
To be considered a 2023 or 2024 calendar year sale, the producer
must have received payment for the specialty crop during the applicable
calendar year. Federal crop insurance indemnities and NAP payments for
the 2023 or 2024 crop year will be included for 2023 or 2024,
respectively, regardless of when they were received by the producer,
and are included in eligible sales to more accurately represent what a
producer would expect to sell in calendar year 2025 by taking into
account crops that would have been sold in the selected year if not for
losses due to disaster events covered by Federal crop insurance and
NAP.
If requested by FSA, producers must provide documentation to
substantiate their reported 2023 or 2024 calendar year sales and
Federal crop insurance indemnities.\14\ Acceptable documentation must
show the crop, quantity sold, and the dollar amount received.
Acceptable documentation to substantiate total specialty crop sales
includes, but is not limited to:
---------------------------------------------------------------------------
\14\ Producers are not required to submit documentation of 2023
or 2024 crop year NAP payments included in their eligible sales
because FSA has that information on file.
---------------------------------------------------------------------------
sales receipts;
sales records;
ledgers of income;
contract or sales agreements;
income statements of deposit slips;
register tapes with supporting documentation acceptable to
FSA;
purchase orders;
third party processor or distributor statements;
contemporaneous diaries that are determined acceptable by
USDA,
other sales documents indicating the crop was sold; and
IRS Schedule F accompanied by documentation to support
that the reported amounts are from sales of specialty crops.
If requested by FSA, the producer must also provide acceptable
evidence that the producer grew and harvested the crop and was in the
business of farming at the time of application. Such evidence may
include, but is not limited to:
acreage reports;
land use records, such as lease agreements or ownership
records;
field inspection or certification records, such as reports
from organic certification inspections or other third party
inspections;
shipping or transportation receipts;
packaging or processing records;
photographic evidence;
Federal crop insurance records;
NAP records;
labor records;
records of agricultural inputs, such as seed, fertilizer,
and pesticides;
contemporaneous harvest records; and
invoices for custom harvesting.
Producers must submit requested documentation to FSA within 15 days
of the request.
FSA is allowing certain producers (collectively referred to as
``new producers'') to use an estimate of their 2025 calendar year
specialty crop sales, in lieu of actual 2023 or 2024 calendar year
sales, if the producer:
Began producing specialty crops in 2023 or 2024 but did
not have sales due to the immaturity of the crop;
Began producing specialty crops in 2024 but did not have a
complete year of sales; or
Is beginning to grow specialty crops in 2025.
New producers have no or limited sales and will need to develop new
markets for their specialty crops in order to be successful, and MASC
payments are intended to provide assistance to these producers that
will help them create or develop markets for their specialty crops in
calendar year 2025. To be eligible for MASC, a new producer must have
one of the following:
A legally binding contract or agreement wherein the
producer has agreed to sell a specialty crop during calendar year 2025;
or
Evidence that, at the time of application, a specialty
crop has been planted and is expected to be harvested and sold in the
2025 calendar year.
All new producers must provide acceptable documentation that shows
the producer is in the business of farming at time of application and
intends to sell a specialty crop in the 2025 calendar year. Expected
2025 sales must be based on realistic projections that are supported by
acceptable documentation demonstrating the producer's ability to
achieve the expected sales and their ability to grow, harvest, and
market the expected yield or inventory. For new producers who have
entered into a legally binding sales contract or purchase agreement for
the sale of their specialty crop, their 2025 expected specialty crop
sales must be based on the terms of their contract or agreement
regarding the total sale amount or the price and amount of inventory or
production. For new producers who are growing a specialty crop intended
for sale in 2025 who do not have a contract or agreement, their
expected 2025 specialty crop sales must be based on their specialty
crop acreage or inventory that is planted at the time of application
and published yields and prices such as Federal Crop Insurance
Corporation-established data, FSA-established National Crop Table data,
and National Agricultural Statistic Service data, or published local
data sources.
New producers must submit form FSA-1141, Marketing Assistance for
Specialty Crops (MASC) New Producer Expected Sales Worksheet, and
provide documentation to substantiate their expected 2025 calendar year
sales by January 8, 2025.
Payment Factors and Calculation
FSA will calculate MASC payments based on the producer's total
specialty crop sales for the calendar year elected by the producer
(either 2023 or 2024, or expected 2025 sales for new producers), as
described above. The total specialty crop sales reported by the
producer will be separated into the sales ranges shown in Table 1. The
sales ranges are based on the traditional Agricultural Resource
Management Survey (ARMS) groupings.\15\
---------------------------------------------------------------------------
\15\ ARMS is the U.S. Department of Agriculture's primary source
of information on the production practices, resource use, and
economic well-being of America's farms and ranches. See https://www.ers.usda.gov/data-products/arms-farm-financial-and-crop-production-practices/ for more information.
---------------------------------------------------------------------------
[[Page 99217]]
After the end of the application period, FSA will determine a
percent payment factor for each sales range (referred to as ``a''
through ``e'' in Table 1). These factors are necessary to ensure that
payments do not exceed the $2 billion in allocated funding. The factors
will depend on the number of eligible MASC applicants, the total sales
reported by those applicants for each sales range, and the payment
limitation per person or legal entity. Therefore, factors are unknown
and cannot be determined until after the application period closes.
In order to streamline MASC assistance and provide payments
quickly, FSA will use the CFAP 2 modelling approach to develop MASC
percent payment factors; the CFAP 2 approach relied on statistical
analysis of the ratio of variable costs per farm to sales per
farm.16 17 According to general convention, a farm's
expenses per unit of production or sales tends to decrease as farm size
increases.\18\ Larger farms tend to have lower costs of production per
unit of sales; hence, MASC payments as a share of total sales fall as
sales per farm increase. The regression analysis used for CFAP2
confirmed that the ratio of variable expenses to sales decreases as
farm size (sales range) increases.
---------------------------------------------------------------------------
\16\ Coronavirus Food Assistance Program 2 Cost-Benefit Analysis
(September 15, 2020), available at https://www.regulations.gov/document/FSA-2020-0006-0002.
\17\ The second through fourth sales range groupings in Table 1
are the traditional groupings used by USDA to summarize ARMS data by
farm size. However, for sales values per farm of $49,000 or less,
the USDA data summaries are further broken down into $9,999 or less
and $10,000 to $49,999; for sales of $100,000 to $499,999 the USDA
sales summaries were further broken down into $100,000 to $249,999
and $250,000 to $499,000; and for sales values of $1,000,000 or
more, into $1,000,000 to $4,900,000 and $5,000,000 or more. For CFAP
2, USDA collapsed the lower two, middle two, and upper two ranges
into one range each in order to simplify the payment design.
\18\ The decrease in costs of production per unit of output or
sales as farm size increases is known as economies of scale, see for
example, C. Morrison Paul, R. Nehring, D. Banker, and A. Somwaru.
2004. ``Scale Economies and Efficiency in U.S. Agriculture: Are
Traditional Farms History?'' Journal of Productivity Analysis vol
22: pp 185-205; Gardner, B. 2002. ``American Agriculture in the
Twentieth Century: How it Flourished and What it Cost,'' Harvard
University Press.
---------------------------------------------------------------------------
As explained in more detail below, the predicted ratio of variable
expenses to sales per farm for each sales class determines the
relationship between the payment rates for each of the five sales
ranges. Information on the number of farms and sales per farm in each
sales range, and on applicants hitting the payment limit, will be used
to re-adjust the payment rates for each range so that total payments
stay within the $2 billion. As a result, estimated payment factors will
likely differ than those shown as examples in Table 2.
Note that estimated payment factors for each sales range
automatically adjust per the mathematical equations that maintain the
ratio between each payment factor and the predicted variable expenses
to sales per farm. For example, as the number of eligible producers
increases, the $2 billion will be distributed across more producers,
causing the payment factors for each sales range to decrease.
The payment factors will decrease as the sales range increases,
meaning the first sales range (up to $49,999) will have the largest
factor and the fifth sales range (all sales over $1 million) will have
the smallest payment factor. While the actual payment factors cannot be
determined before the end of the application period, Table 2 provides
examples of estimated payment factors for four scenarios.\19\ The
second column contains the ratio of variable costs to sales per farm
that was predicted from the statistical analysis used for CFAP2, which
will also be used for MASC. The 57,000 applications in the third column
are the number of specialty crop farms (from ARMS) that applied for the
CFAP 2 program design, with applications in the three successive
columns being multiples, and the applications in the last columns being
roughly the numbers of specialty crops farms in the 2022 Census of
Agriculture. Each column of payment factors assumes the same $2 billion
in total payments.
---------------------------------------------------------------------------
\19\ The examples of MASC payment factors for each sales range
are based on CFAP 2 program data for specialty crop producers.
Therefore, the data represent those producers who self-selected and
applied for CFAP 2 and do not necessarily represent those specialty
crop producers who may apply for MASC. While CFAP 2 was similar to
MASC in terms of producer and specialty crop eligibility, estimated
MASC payment factors extrapolated from CFAP 2 data are shown only as
illustrative examples and final payment factors will be announced in
a news release and may be different from those shown here. To
develop the scenarios for Table 2, the 57,000 CFAP 2 applications
were assumed to provide an estimate of the minimum number of
applicants. Higher applicant scenarios (up to 227,000 applicants)
were developed while preserving the underlying distribution of the
CFAP 2 data. For the sake of simplicity, the examples in Table 2 do
not account for payment limitations per person or legal entity.
---------------------------------------------------------------------------
As shown in Table 2, the second column is essential to determining
the other table values. If the variable costs to sales ratio in the
first row of numbers (for example, 0.903) is divided by that in the
second row (for example, 0.849), then it yields a ratio that is
approximately equal to the payment factor relationships between the
first and second sales category rows (for example, 11.3 divided by
10.6).\20\ This relationship holds across all rows and columns. The
factors are expected to range between 2 to 11 percent, depending on the
number of potential applications but could go higher or lower depending
on how many eligible producers apply.
---------------------------------------------------------------------------
\20\ For any given pair of rows, differences across the columns
between the ratios of the pair of rows is due to rounding error in
moving from the computer software's level of precision to the one
decimal place used in the actual payment rates.
Table 1--Sales Ranges
------------------------------------------------------------------------
Percent
Sales range payment
factor
------------------------------------------------------------------------
Up to $49,999 a
$50,000-$99,999 b
$100,000-$499,999 c
$500,000-$999,999 d
All sales over $1 million e
------------------------------------------------------------------------
Table 2--Estimated Payment Factor Examples Assuming $2 Billion in Payments
----------------------------------------------------------------------------------------------------------------
Predicted ratio Example of estimated percent payment factors
of variable ---------------------------------------------------------------
Sales range costs to sales 57,000 113,000 170,000 227,000
per farm applicants applicants applicants applicants
----------------------------------------------------------------------------------------------------------------
Up to $49,999 0.903 11.3 5.7 3.8 2.8
$50,000-$99,999 0.849 10.6 5.3 3.6 2.7
$100,000-$499,999 0.826 10.3 5.2 3.5 2.6
$500,000-$999,999 0.771 9.6 4.9 3.2 2.4
All sales over $1 million 0.748 9.3 4.7 3.1 2.3
----------------------------------------------------------------------------------------------------------------
[[Page 99218]]
To calculate a producer's MASC payment, FSA will:
(1) Multiply the amount of sales in each range in Table 1 by the
corresponding percent payment factor for that range; and
(2) Calculate the sum of the results for each sales range.
For example, if a producer reported $450,000 of total specialty
crop sales for their elected year, FSA would calculate a payment equal
to the sum of the following:
$49,999 (the amount of sales in the first range)
multiplied by percent payment factor a;
$50,000 (the amount of sales in the second range)
multiplied by percent payment factor b; and
$350,001 (the amount of sales in the third range)
multiplied by percent payment factor c.
Payments are subject to a payment limitation of $125,000, as
described below. FSA will issue MASC payments after the end of the
application period. If demand for MASC payments exceeds available
funding, either MASC payments may be prorated, the payment limitation
may be lowered, or both. If proration or a reduction of the payment
limitation is necessary, the reduction or lowered payment limitation
will apply equally to all MASC participants. If additional funding
remains available after MASC payments are issued and any appeals and
requests for equitable relief have been resolved, FSA may issue an
additional payment.
Average AGI Limitation and Payment Limitation
A person or legal entity, other than a joint venture or general
partnership, will not be eligible to receive, directly or indirectly, a
MASC payment if the average adjusted gross income of the person or
legal entity exceeds $900,000 for 2021, 2022, and 2023, unless the
person or legal entity's average adjusted gross farm income is at least
75 percent of their average AGI.
A person or legal entity, other than a joint venture or general
partnership, cannot receive, directly or indirectly, more than $125,000
in MASC payments. This payment limitation is consistent with the
payment limitation used in other FSA programs such as the Agriculture
Risk Coverage and Price Loss Coverage programs, the Livestock Forage
Disaster Program, NAP at the basic coverage level, and the Rice
Production Program.
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 \21\ as follows:
---------------------------------------------------------------------------
\21\ Attribution of payments through four levels of ownership in
legal entities is consistent with the approach used in other FSA
programs specified in 7 CFR 1400.1.
---------------------------------------------------------------------------
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; \22\
---------------------------------------------------------------------------
\22\ The ``first level or payment legal entity'' means that the
payment entity will have a reduction applied, and if the payment
entity happens to be a joint venture, that reduction is applied to
the first level, or highest level, for payments. The ``first level
or payment legal entity'' is the highest level of ownership of the
applicant to whom payments can be attributed or limited. If the
applicant is a business type that does not have a limitation or
attribution, the reduction is applied to the first level, but if the
business type can have the reduction applied directly to it, then
the limitation applies.
---------------------------------------------------------------------------
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 be combined with the earnings of the minor's parent or legal
guardian.
A person or legal entity must provide the name, address, valid
taxpayer identification number, and ownership share of each person, or
the name, address, valid taxpayer identification number, and ownership
share of each legal entity, that holds or acquires an ownership
interest in the legal entity. MASC 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 or
above the fourth level of ownership in the business structure is not
provided to USDA. A legal entity will not be eligible to receive
payment when a valid taxpayer identification number for a person or
legal entity that holds a direct or indirect ownership interest of 10
percent or greater at or above the fourth level of ownership in the
business structure is not provided to USDA.
If a person or legal entity is not eligible to receive MASC
payments due to the person or legal entity failing to satisfy payment
eligibility provisions, the payment made either directly or indirectly
to the person 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 person 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 Assistance Act (25 U.S.C. 5304), will
not be subject to payment limitation.
How To Apply
Applicants must submit FSA-1140, Marketing Assistance for Specialty
Crops (MASC) Application, to their local FSA county office \23\ by
January 8, 2025. Applicants will submit 1 application that includes
their total specialty crop sales in all counties nationwide. New
producers must also submit all required documentation and FSA-1141 by
January 8, 2025. FSA will not take action on applications from new
producers that are submitted without FSA-1141 and required
documentation.
---------------------------------------------------------------------------
\23\ To locate the nearest FSA county office, visit the USDA
Service Center locator at https://www.farmers.gov/working-with-us/service-center-locator.
---------------------------------------------------------------------------
Applicants must also submit the following eligibility forms to FSA
by January 8, 2026, if not already on file with FSA for the 2025
program year:
AD-2047, Customer Data Worksheet, for new applicants and
[[Page 99219]]
applicants who need to update their information;
CCC-901, Member Information for Legal Entities, if
applicable;
CCC-902E, Farm Operating Plan for an Entity; if
applicable;
CCC-902I, Farm Operating Plan for an Individual, if
applicable;
CCC-941, Averaged Adjusted Gross Income (AGI) and Consent
to Disclosure of Tax Information, for the producer and members of
entities;
CCC-942, Certification of Income from Farming, Ranching
and Forestry Operations, if applicable, for the producer and members of
entities; and
AD-1026 Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the producer and
affiliated persons, as specified in 7 CFR 12.8.
Other Provisions
General requirements that apply to other FSA-administered commodity
programs also apply to MASC. Producers that receive MASC payments must
be in compliance with the provisions of 7 CFR part 12, ``Highly
Erodible Land and Wetland Conservation,'' \24\ for the 2025 crop year,
and the provisions of 7 CFR 718.6, which address ineligibility for
benefits for offenses involving controlled substances, for the 2025
program year.
---------------------------------------------------------------------------
\24\ To comply with the requirements of 7 CFR part 12, producers
and affiliates must establish a detailed farm record with FSA,
unless the producer or affiliate does not have interest in land
devoted to agriculture (for example, beekeepers who place their
hives on another person's land and producers of crops grown in
greenhouses who do not own or lease any agricultural land
themselves).
---------------------------------------------------------------------------
All information provided to FSA for program eligibility and payment
calculation purposes is subject to spot check. Participants are
required to retain documentation in support of their application for 3
years after the date of approval. Participants receiving MASC 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 operation and to
inspect, examine, and 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.
If a MASC payment resulted from erroneous information provided by a
participant, or any person acting on their behalf, the payment will be
recalculated and the participant must refund any excess payment to FSA
with interest calculated from the date of the disbursement of the
payment. If FSA determines that the applicant intentionally
misrepresented information provided on their application, the
application will be disapproved and the applicant must refund the full
payment to FSA with interest from the date of disbursement.
Applicants have a right to a decision in response to their
application. If an applicant submits an application or required
documentation to an FSA county office after the deadline, the
submission will be considered a request to waive the deadline. Requests
to waive or modify program provisions, including requests to waive the
deadline, are at the discretion of the Deputy Administrator. The Deputy
Administrator has the authority to waive or modify application
deadlines and other requirements or program provisions not specified in
law, in cases where the Deputy Administrator determines: (1) it is
equitable to do so; and (2) the lateness or failure to meet such other
requirements or program provisions do not adversely affect the
operation of MASC. Applicants who request to waive or modify MASC
provisions do not have a right to a decision on those requests. The
Deputy Administrator's refusal to exercise discretion on requests to
waive or modify MASC provisions will not be considered an adverse
decision and is, by itself, not appealable.
Equitable relief and finality provisions specified in 7 CFR part
718, subpart D, apply to determinations under MASC. Persons and legal
entities who file an application with FSA have the right to an
administrative review of any FSA adverse decision with respect to the
application under the appeals procedures at 7 CFR parts 780 and 11. The
determination of matters of general applicability that are not in
response to, or do not result from, an individual set of facts in an
individual participant's application are not matters that can be
appealed. Such matters of general applicability include, but are not
limited to, eligible specialty crops, the payment calculation, payment
limitation, and payment factors.
Any payment under MASC 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 MASC payments.
In either applying for or participating in MASC, or both, the
applicant is subject to laws against perjury (including but not limited
to 18 U.S.C. 1621). If the applicant willfully makes and represents as
true any verbal or written declaration, certification, statement, or
verification that the applicant knows or believes not to be true, in
the course of either applying for or participating in MASC, or both,
then the applicant may be found to be guilty of perjury. Except as
otherwise provided by law, if guilty of perjury the applicant may be
fined, imprisoned for not more than 5 years, or both, regardless of
whether the applicant 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(e)), USDA waives the restriction on receipt of
funds under MASC but only as to beneficiaries who, as a condition of
the waiver, agree to apply the MASC payments to reduce the amount of
the judgment lien.
In addition to any other Federal laws that apply to MASC, the
following laws apply: 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 provide
financial assistance to specialty crop producers, if eligible, to help
them engage in activities that aid in expanding domestic specialty crop
markets or in developing new markets for their crops as described in
this NOFA.
Environmental Review
The environmental impacts of this notice 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).
The purpose of MASC is to provide assistance to specialty crop
operations to expand domestic specialty crop markets or develop new
markets for their crops. The Categorical Exclusions in 7 CFR 799.31
apply, specifically 7 CFR 799.31(b)(6)(iii) (that is, financial
assistance to supplement income). No Extraordinary Circumstances (7 CFR
799.33) exist. FSA has determined that this notice does not constitute
a major Federal action 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 regulatory action.
[[Page 99220]]
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing,\25\ to which this document applies is
10.096, Marketing Assistance for Specialty Crops (MASC).
---------------------------------------------------------------------------
\25\ See https://sam.gov/content/assistance-listings.
---------------------------------------------------------------------------
USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family or parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for
prior civil rights activity, in any program or activity conducted or
funded by USDA (not all bases apply to all programs). Remedies and
complaint filing deadlines vary by program or incident.
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, and Executive Vice President,
Commodity Credit Corporation.
[FR Doc. 2024-29017 Filed 12-9-24; 8:45 am]
BILLING CODE 3411-E2-P