Notice of Funds Availability (NOFA); Emergency Commodity Assistance Program (ECAP), 12696-12705 [2025-04604]

Download as PDF 12696 Notices Federal Register Vol. 90, No. 52 Wednesday, March 19, 2025 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 lotter on DSK11XQN23PROD with NOTICES1 Submission for OMB Review; Comment Request The Department of Agriculture will submit the following information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104–13 on or after the date of publication of this notice. Comments are requested regarding: (1) 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; (2) the accuracy of the agency’s estimate of burden including the validity of the methodology and assumptions used; (3) ways to enhance the quality, utility and clarity of the information to be collected; and (4) 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 these information collections are best assured of having their full effect if received by April 18, 2025. 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 VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 the collection of information unless it displays a currently valid OMB control number. National Agricultural Statistics Service (NASS) Title: Fruit, Nuts, and Specialty Crops—Substantive Change. OMB Control Number: 0535–0039. Summary of Collection: The primary function of the National Agricultural Statistics Service (NASS) is to prepare and issue current official state and national estimates of crop and livestock production. Estimates of fruit, tree nuts, and specialty crops are an integral part of this program. These estimates support the NASS strategic plan to cover all agricultural cash receipts. The authority to collect these data activities is granted under U.S. Code title 7, Section 2204(a). Information is collected on a voluntary basis from growers, processors, and handlers through surveys. Individually identifiable data collected under this authority are governed by Section 1770 of the Food Security Act of 1985, as amended, 7 U.S.C, 2276, and Title III of Public Law 115–435 (CIPSEA) which requires USDA to afford strict confidentially to non-aggregated data provided by respondents. The National Agricultural Statistics Service (NASS) is requesting a substantive change to the Maple Syrup Inquiry. The change is to add a yes/no screening question to the May Maple Inquiry about the intention to have taps in the future. No change in burden results from this change. The revised Maple Syrup Inquiry questionnaire containing has been loaded. Need and Use of the Information: Data reported on fruit, nut, and specialty crops are used by NASS to estimate crop acreage, yield, production, utilization, price, and value in States with significant commercial production. These estimates are essential to farmers, processors, importers and exporters, shipping companies, cold storage facilities and handlers in making production and marketing decisions. Estimates from these inquiries are used by market order administrators in their determination of expected crop supplies under federal and State market orders. Description of Respondents: Farms; Business or other for-profit. Number of Respondents: 55,435. Frequency of Responses: On occasion; Annually; Semi-annually; Quarterly; Monthly; Weekly. PO 00000 Frm 00001 Fmt 4703 Sfmt 4703 Total Burden Hours: 28,114. Levi S. Harrell, Departmental Information Collection Clearance Officer. [FR Doc. 2025–04451 Filed 3–18–25; 8:45 am] BILLING CODE 3410–20–P DEPARTMENT OF AGRICULTURE Farm Service Agency [Docket ID FSA–2025–0002] Notice of Funds Availability (NOFA); Emergency Commodity Assistance Program (ECAP) Farm Service Agency, U.S. Department of Agriculture (USDA). ACTION: Notification of funds availability. AGENCY: The Farm Service Agency (FSA) is issuing this notice announcing the funding for ECAP, which will provide economic assistance payments to eligible producers of eligible commodities for the 2024 crop year. ECAP is a new FSA program authorized by the American Relief Act, 2025. This notice also announces the eligibility (commodities, acres, producers, and losses), payment calculations, payment limitations, and how to apply (pre-filled application and any required adjustments) for ECAP. DATES: Applications Due Date: We will accept applications from March 19, 2025, through August 15, 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 mode)) or dial 711 for Telecommunications Relay Service (both voice and text telephone users can initiate this call from any telephone). SUPPLEMENTARY INFORMATION: SUMMARY: Background This document announces the funding for ECAP, which is a new program authorized by section 2102 of Title I of Division B of the American Relief Act, 2025 (Pub. L. 118–158) and administered by FSA. ECAP will use up to $10 billion to issue 1-time economic assistance payments to eligible E:\FR\FM\19MRN1.SGM 19MRN1 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices producers of eligible commodities for the 2024 crop year. These payments are intended to help farmers cope with losses from natural disasters and a difficult farm economy, and will help preserve family farms and ranches across the country while also continuing to ensure food and agricultural security for our nation.1 lotter on DSK11XQN23PROD with NOTICES1 Definitions The following definitions apply to this notice: Application means the ECAP application form. ARC means Agriculture Risk Coverage codified at 7 U.S.C. 9017. Average gross farm income means the average of the person or legal entity’s gross income derived from farming, ranching, and silviculture 2 operations, for the base period consisting of the 2020, 2021, and 2022 tax years. If the resulting average gross farm income derived from items 1 through 13 of the definition of income derived from farming, ranching, and silviculture operations is at least 66.66 percent of the average gross income of the person or legal entity, then the average 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 of the tax years during the base period (2020, 2021, or 2022), the average gross farm income will be the gross farm income, averaged for the 2020, 2021, and 2022 tax years, as determined by FSA. For a legal entity created during the base period, the gross farm income average will include only 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 1 Tom Cole Floor Remarks on H.R. 10545, the American Relief Act, 2025; available at https:// appropriations.house.gov/news/remarks/cole-floorremarks-hr-10545-american-relief-act-2025. 2 Both ‘‘silviculture’’ and ‘‘forestry’’ have been used in statutes, regulations, and NOFAs related to payment limitation for FSA and Commodity Credit Corporation (CCC) programs. FSA considers the terms to have the same meaning for the purpose of administering payment limitations. VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 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 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 gross income means the average of the gross income as defined under 26 U.S.C. 61 of the person or legal entity, for the 2020, 2021 and 2022 tax years. Base period means the 2020, 2021, and 2022 tax years. Cotton means extra-long staple cotton and upland cotton. Corn means only white, yellow, amylose, popcorn (excluding strawberry popcorn), waxy, and high amylase corn. Crop year means the calendar year in which a commodity was intended for harvest. CCC means the Commodity Credit Corporation. Deputy Administrator means the FSA Deputy Administrator for Farm Programs. Determined acreage means that acreage established by an FSA representative by use of official acreage, digitizing areas on a photograph or other imagery, or computations from scaled dimensions or ground measurements. Double cropping means, as determined by the Deputy Administrator on a regional basis, consecutive planting of two specific crops that have the capability to be planted and carried to maturity for the intended uses, as reported by the producer, on the same acreage within a 12-month period. To be considered double cropping, the planting of two specific crops must be in an area where the FSA State Committee has determined that producers are typically able to repeat the same cycle successfully in a subsequent 12-month period under normal growing conditions. Dry peas means Austrian, green, wrinkled seed, and yellow peas, excluding peas grown for the fresh, canning, or frozen market. Economic loss means, as specified in section 2102(a)(4)(B) of the American Relief Act, 2025, the difference between the expected cost of production per acre for an eligible commodity and the expected gross return per acre for that eligible commodity. Eligible commodities means barley, canola, crambe, corn, dry peas, extralong staple cotton, flax, large chickpeas, mustard, lentils, oats, peanuts, rapeseed, rice, safflower, sesame, small chickpeas, PO 00000 Frm 00002 Fmt 4703 Sfmt 4703 12697 sorghum, soybeans, sunflower, upland cotton, and wheat. Expected cost of production per acre means, as specified in section 2102(a)(3) of the American Relief Act, 2025: (1) For wheat, corn, grain sorghum, barley, oats, cotton, rice, and soybeans, the total costs listed for the 2024 crop year with respect to the applicable eligible commodity contained in the most recent data product titled ‘‘national average cost-of-production forecasts for major U.S. field crops’’ published by the Economic Research Service; and (2) For an eligible commodity not specified in paragraph (1) of this definition, a comparable total estimated cost-of-production, as determined by the Secretary. Expected gross return per acre means, as specified in section 2102(a)(2) of the American Relief Act, 2025: (1) For wheat, corn, grain sorghum, barley, oats, cotton, rice, and soybeans, the product obtained by multiplying: (i) The projected average farm price for the applicable eligible commodity for the 2024–2025 marketing year contained in the most recent World Agricultural Supply and Demand Estimates published before December 21, 2024, by the World Agricultural Outlook Board; and (ii) The national average harvested yield per acre for the applicable eligible commodity for the most recent crop years, as determined by the Secretary; and (2) For an eligible commodity not specified in paragraph (1) of this definition, a comparable estimate of gross returns, as determined by the Secretary. Extra-long staple cotton means cotton that follows the standard planting and harvesting practices of the area in which the cotton is grown, and meets all of the following conditions: (1) American-Pima, Sea Island, Sealand, all other varieties of the Barbandense species of cotton and any hybrid thereof, and any other variety of cotton in which 1 or more of these varieties is predominant; (2) The acreage is grown in a county designated as an extra-long staple cotton county by the Secretary; and (3) The production from the acreage is ginned on a roller-type gin. 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. E:\FR\FM\19MRN1.SGM 19MRN1 lotter on DSK11XQN23PROD with NOTICES1 12698 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices Grain sorghum means grain sorghum of a feed grain or dual-purpose variety (including any cross that, at all stages of growth, having characteristics of a feed grain or dual-purpose variety) that follows the standard planting and harvesting practice for grain sorghum for the area in which the grain sorghum was planted. Sweet sorghum is not considered a grain sorghum. Income derived from farming, ranching, and silviculture 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 (also known as 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 VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 (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 an entity that is created under Federal or State law and that: (1) Owns land or an agricultural commodity; or (2) Produces an agricultural commodity. Legal entities include corporations, joint stock companies, associations, limited partnerships, limited liability companies, irrevocable trusts, estates, charitable organizations, general partnerships, joint ventures, and other similar organizations 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. Minor child means a person who is under 18 years of age as of June 1, 2024. Ownership interest means to have either a legal ownership interest or a beneficial ownership interest in a legal entity. For the purposes of administering ECAP, a person or legal entity that owns a share or stock in a legal entity that is a corporation, limited liability company, limited partnership, or similar type entity where members hold a legal ownership interest and shares in the profits or losses of such entity is considered to have an ownership interest in such legal entity. A person or legal entity that is a beneficiary of a trust or heir of an estate who benefits from the profits or losses of such entity is 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. Peanuts means all peanuts excluding perennial peanuts. PLC means Price Loss Coverage codified at 7 U.S.C. 9016. Producer means an owner, operator, landlord, tenant, or sharecropper that shares in the risk of producing a crop and is entitled to share in the crop available for marketing from the farm, or would have shared had the crop been produced. Production inputs mean material to conduct farming operations, such as seeds, chemicals, and fencing supplies. Production services mean services provided to support a farming PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 operation, such as custom farming, custom feeding, and custom fencing. Rice means long grain rice and medium grain rice, including temperate japonica rice, short grain, and sweet rice. Secretary means the Secretary of Agriculture. Skip-row means a cultural practice in which rows of a crop are alternated with strips of idle land or another crop, as determined by the Secretary. 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. Upland cotton means cotton that is produced in the United States from other than pure strain varieties of the Barbadense species, any hybrid thereof, or any other variety of cotton in which one or more of these varieties predominate. In other words, it means any cotton that is not extra-long staple cotton. USDA means the U.S. Department of Agriculture. Eligible Commodities As provided in the American Relief Act, 2025, eligible commodities for ECAP include loan commodities as defined in section 1201(a) of the Agricultural Act of 2014 (7 U.S.C. 9031(a)), excluding graded wool, nongraded wool, mohair, or honey. Therefore, eligible commodities include wheat, corn, sorghum, barley, oats, upland cotton, extra-long staple cotton, long grain rice, medium grain rice, peanuts, soybeans, other oilseeds, dry peas, lentils, small chickpeas, and large chickpeas. Eligible ‘‘other oilseeds’’ are canola, crambe, flax, mustard, rapeseed, safflower, sesame, and sunflower. Eligible Acres As provided in the American Relief Act, 2025, the eligible acres of an eligible commodity on a farm are equal to the sum of: • the acreage planted on the farm to that eligible commodity for harvest, grazing, haying, silage, or other similar purposes for the 2024 crop year; and • 50 percent of the acreage on the farm that was prevented from being planted during the 2024 crop year to that eligible commodity because of drought, flood, or other natural disaster, or other condition beyond the control of the producers on the farm, as determined by the Secretary. Acreage must be located in the United States to be eligible. FSA will calculate payments based on determined acreage, or on reported acres if determined acres are not present. Planted acreage E:\FR\FM\19MRN1.SGM 19MRN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices includes any land devoted to planted acres for accepted skip-row planting patterns, as determined by the Secretary.3 In situations where a producer planted, or was prevented from planting, both an initial crop and a subsequent crop on the same acreage for the 2024 crop year, the initial crop will be eligible for ECAP if it was an eligible commodity. If the subsequent crop that was planted or prevented from being planted was also an eligible commodity, it will also be eligible for ECAP if it was in an approved double cropping combination. A subsequent eligible commodity will also be eligible for ECAP when it is planted or prevented from being planted after an initial crop that is not an eligible commodity or a fruit, vegetable, or wild rice, and the combination does not meet the existing definition of an approved double cropping situation (for example, an initial crop of mixed forage followed by a subsequent crop of corn). The acreage of the subsequent eligible commodity is eligible in these situations because the initial crop may be a reflection of early acreage reporting deadlines and reporting requirements of other FSA programs rather than the producer’s planting intention for the 2024 crop year. FSA acreage reporting provisions require producers to report certain crops by certain deadlines, in each calendar year, and some FSA programs require a complete acreage report for program eligibility. For example, grasses and other perennial forages would have been reported to FSA in the fall of the 2023 calendar year and captured as an initial crop for the 2024 crop year; however, frequently perennial grass cover is planted to an annual crop (such as an eligible commodity) in the following spring. As a result of acreage reporting rules, the annual crop is reported as a subsequent crop even though this may have been the producer’s initial intent for the 2024 crop year. Producers of eligible commodities reported in this manner had a reasonable expectation of planting and harvesting the crop in a single crop year, and they experienced increased input costs and falling commodity prices that are intended to be addressed by ECAP. In cases where a producer reports both an initial eligible commodity and a subsequent eligible commodity on the same acreage and the combination does not meet the definition of an approved 3 FSA will calculate ECAP payments for skip-row acreage based on the total acres devoted to the commodity without making reductions that are applicable to other FSA programs, as specified in 7 CFR 718.108. VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 double cropping situation, only the initial commodity will be eligible for an ECAP payment. This rule applies even in cases where the initial eligible commodity failed or was prevented from being planted. Limiting eligibility to the initial planting of an eligible commodity in cases where the producer could not have reasonably expected to make use of both ECAP eligible commodities in a single crop year is consistent with other programs administered by FSA (for example, under the Individual Coverage option for ARC (see definition of ‘‘double cropping’’ in 7 CFR 1412.3)). For ECAP, an exception to that rule applies when the Federal Crop Insurance Corporation (FCIC) Small Grain Crop Provisions allow for a reduced premium for small grain acreage that is intentionally destroyed prior to harvest, which is referred to as ‘‘short-rate.’’ In short-rate scenarios, producers graze the small grain acreage and then still have the opportunity to timely plant a spring commodity with a reasonable expectation to produce a normal yield, therefore making use of both commodities. Acreage that has been reported with both an insured initial small grain crop that was intentionally destroyed before harvest by grazing or other means and is timely reported to the producer’s crop insurance agent in accordance with section 6 of the FCIC’s Small Grains Crop Provisions, and is then followed with a subsequent eligible commodity that is not an approved double crop scenario, will be eligible for payment on both plantings of eligible commodities. In this scenario, both eligible commodities are planted within the recommended planting period and are expected to result in normal crop production. While this may not be considered an approved double cropping scenario in some counties under FSA’s acreage reporting provisions, as both crop plantings could not be carried to final use in one crop year, the practice is standard for the distinct geographic production region and the producers suffered an economic loss on both crops. Volunteer acreage, experimental acreage, and acreage with an intended use of green manure or left standing are not eligible for payment under ECAP because the producer did not plant the acreage, or intend to plant the acreage in cases of prevented planting, for the purposes specified in section 2102 of Title I of Division B of the American Relief Act, 2025. In cases where the same acreage of a commodity was reported with two different intended uses, FSA will not PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 12699 issue duplicate payments for that acreage based on each intended use. If both intended uses were reported by the same producer, the producer will receive one payment based on the eligible acres of the commodity. If the two different intended uses were reported by two different producers, the producer with responsibility for input expenses for the acres will be eligible, and the producer who was not responsible for the input expenses must adjust the eligible acreage for that commodity on their application to remove those acres. If the producers shared responsibility for input expenses for the acreage, each producer must adjust their eligible acres on their applications to represent a share of those acres that is proportional to their share of the inputs. For example, if 100 acres of wheat were reported by one producer with an intended use of grain, and also by a second producer who leases that land for grazing and has a lease that requires the second producer to pay for one-third of the input costs, the producer reporting the intended use of grain must adjust their acres to 66.67 acres (two-thirds of 100 acres) and the producer reporting the intended use of grazing must adjust their acres to 33.33 acres (one-third of 100 acres). The American Relief Act, 2025, provides that eligible acreage that was prevented from being planted must have been due to drought, flood, or other natural disaster, or other condition beyond the control of the producers on the farm, as determined by the Secretary, as provided in 7 CFR 718.103. For prevented planted acres to be eligible for ECAP, producers must have filed a notice of loss on CCC–576, Part B. Producers must have reported planted and prevented planted acres to FSA on FSA–578, Report of Acreage, to be eligible for payment. Producers who have not previously reported their 2024 crop year acreage of eligible commodities, and filed a notice of loss for prevented planted crops, may report their acreage of eligible commodities on FSA–578 and submit CCC–576 for prevented planting even if the deadlines applicable to other FSA programs have passed. Because ECAP is based on a producer’s 2024 crop year acreage and those eligible commodities have already been harvested or grazed, producers who submit late-filed acreage reports for ECAP eligibility will not be required to pay the cost of a farm inspection and measurement applicable to other FSA programs. If requested by FSA, a producer must also submit additional documentation supporting the late-filed acreage report such as seed receipts, E:\FR\FM\19MRN1.SGM 19MRN1 12700 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices lotter on DSK11XQN23PROD with NOTICES1 chemical and fertilizer receipts, precision planting records, harvesting records, geospatial data or maps, and published weather data. Producers must submit any required additional documentation within 30 days of the request. Acreage and prevented planting reports that are late-filed for ECAP eligibility will not be used to determine eligibility for other FSA programs for which these reports are required and the deadline applicable to the other programs has passed. Eligible Producers The American Relief Act, 2025, requires a producer to be actively engaged in farming, as specified in 7 U.S.C. 1308–1, to be eligible for ECAP. FSA will administer this requirement according to the regulations in 7 CFR part 1400, subparts C and G, which apply to FSA administered CCC programs that require a producer to be actively engaged in farming. In addition, a producer must be one of the following to be eligible: • Citizen of the United States; • Resident alien, which for purposes of ECAP 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. As required by the American Relief Act, 2025, the provisions of 7 U.S.C. 1308–3 regarding eligibility of foreign persons apply to ECAP, and FSA will administer those requirements as provided in 7 CFR 1400.401. 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. The American Relief Act, 2025, specifies that the provisions of 7 U.S.C. 1308 regarding eligibility of Federal agencies, and State and local governments apply to ECAP. Federal agencies are not eligible for ECAP. A State, political subdivision, or agency thereof, is not eligible for an ECAP payment unless both of the following apply: • The land for which payments are received is owned by the State, political subdivision, or agency thereof; and VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 • The payments are used solely for the support of public schools. The total of payments to the State, political subdivision, or agency thereof cannot exceed $500,000 annually, except for States with a population less than 1,500,000, as established by the most recent U.S. Census Bureau annual estimate of the State’s resident population. This limitation is in addition to the limitation per person or legal entity described in the Payment Limitation section of this document. For States with a population less than 1,500,000, they are subject to the regular per person or entity limit discussed in the payment limitation section below. Payment Rates and Calculation As specified in section 2102 of Title I of Division B of the American Relief Act, 2025, an ECAP payment will be equal to the greater of: (1) 26 percent of the product obtained by multiplying the economic loss for an eligible commodity, which is the difference between the expected cost of production per acre and the expected gross return per acre for that eligible commodity, by the eligible acres of that eligible commodity on the farm; or (2) The product obtained by multiplying the following 3 numbers: (a) 8 percent of the eligible commodity’s PLC reference price (7 U.S.C. 9011(19)), by (b) the PLC national average payment yield for the eligible commodity (7 U.S.C. 9011(15)), and (c) the number of eligible acres of that eligible commodity on the farm. For the purpose of ECAP payment calculation, FSA has calculated a payment rate for each eligible commodity that is equal to the greater of: (1) 26 percent of the economic loss (that is, the difference between the expected cost of production per acre and the expected gross return per acre) for an eligible commodity (referred to as the ‘‘economic loss payment rate’’ in this document); or (2) 8 percent of the eligible commodity’s PLC reference price, multiplied by the eligible commodity’s PLC national average payment yield (referred to as the ‘‘minimum payment rate’’ in this document). The payment rates for each commodity are shown in Table 1. An explanation of how these rates were developed is included in the next section of this document. PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 TABLE 1—PAYMENT RATE (PER ACRE), BY COMMODITY Commodity Barley .................................... Canola .................................. Large Chickpeas ................... Small Chickpeas ................... Corn ...................................... Cotton ................................... Crambe ................................. Flax ....................................... Lentils ................................... Mustard ................................. Oats ...................................... Peanuts ................................. Peas ...................................... Rapeseed ............................. Rice ....................................... Safflower ............................... Sesame ................................. Sorghum ............................... Soybeans .............................. Sunflowers ............................ Wheat ................................... Payment rate $21.67 31.83 24.02 31.45 42.91 84.74 19.08 20.97 19.30 11.36 77.66 75.51 16.02 23.63 76.94 26.32 16.83 42.52 29.76 27.23 30.69 To calculate a producer’s ECAP payment, FSA will multiply the payment rate for an eligible commodity by the producer’s eligible acres of that eligible commodity. FSA will issue eligible ECAP payments as applications are approved. ECAP payments will be prorated by 85 percent to ensure that payments do not exceed the available funding. FSA may issue an additional payment if additional funding remains available after initial prorated ECAP payments are issued to eligible producers based upon the terms of this NOFA and applications received by the closing date. Payment Rate Development The American Relief Act, 2025, specifies how to calculate the expected gross return per acre and expected cost of production per acre that were used to determine the payment rates for wheat, corn, sorghum, barley, oats, cotton, rice, and soybeans. For these commodities, the expected cost of production per acre is equal to the total costs listed for the 2024 crop year with respect to the applicable eligible commodity contained in the most recent data product titled ‘‘national average cost-ofproduction forecasts for major U.S. field crops’’ published by USDA’s Economic Research Service (ERS).4 The expected gross return per acre for those commodities is equal to the projected average farm price for the applicable eligible commodity for the 2024 through 2025 marketing year from the World 4 The ERS document is ‘‘Cost-of-production forecasts for major U.S. field crops, 2024F–2025F’’ updated on November 14, 2024, available at https:// www.ers.usda.gov/data-products/commodity-costsand-returns. E:\FR\FM\19MRN1.SGM 19MRN1 12701 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices Agricultural Supply and Demand Estimates (WASDE) published on December 10, 2024,5 multiplied by the national average harvested yield per acre for the applicable eligible commodity for the most recent 10 crop years.6 The net gross return is the gross return minus the expected cost-ofproduction. An example of the resulting payment calculation used to determine the payment rate is shown below, in detail, using corn. The detailed values (a through e) used in the calculation are shown in Table 2. TABLE 2—CORN EXAMPLE PAYMENT RATE CALCULATIONS; VARIABLES FOR ECONOMIC ASSISTANCE PAYMENT CALCULATIONS AND FINAL PAYMENT RATE (PER ACRE) 10 Year average harvested yield Crop Unit (a) Corn ..................... 174.16 BU Price forecast Forecasted cost of production Net gross return 26 Percent of gross loss Reference price National average PLC yield Minimum payment (b) (c) (a * b)¥c ((a * b)¥c) * 0.26 (d) (e) (d * e) * 0.08 4.10 879.10 ¥165.04 42.91 3.70 140.76 41.66 Payment rate (greater of gross return vs minimum payment) 42.91 See Table 3 for sources. To start, we estimated the net gross return for corn: Net Gross Return for Corn = (a * b) = (174.16 * $4.10) = $714.06 (a * b)¥c = $714.06¥$879.10 = ¥$165.04/acre The next step is to calculate the economic loss payment rate for corn: Economic Loss Payment Rate for Corn (greater than 0 given economic loss) = |(a * b)¥c| * 26% = $165.04 * 0.26 = $42.91/acre Next, as required for the comparison, we calculated the minimum payment rate: Minimum Payment Rate = (d * 8%) * e = ($3.70 * 8%) * 140.76 = $41.66 per acre Given that the economic loss payment rate is greater than the minimum payment rate, the payment rate for corn is equal to $42.91 per acre. The payment per acre is applied to all eligible acres. For commodities for which the Secretary determines there is insufficient data from the USDA sources noted above, the American Relief Act, 2025, provides that the Secretary will determine a comparable estimate of gross returns and a comparable total estimated cost of production. Eligible commodities that do not have a price projection available in WASDE, nor a cost-of-production forecast in the ‘‘national average cost-of-production forecasts for major U.S. field crops,’’ include pulse crops (large chickpeas, small chickpeas, dry peas, lentils) and certain oilseeds (canola, crambe, flax, mustard, rapeseed, safflower, sesame, sunflower). Peanuts do not have a price forecast published in the WASDE. For commodities not available in the WASDE, price projections for the 2024– 2025 marketing year were taken from the ARC/PLC 2024 Market Year Average Prices web posting as of January 2025. This is the only data set published by USDA that provides crop year price forecasts for those crops that are not included in the WASDE, and these prices are determined using similar methods as WASDE forecasts. Regarding cost of production data for pulses and certain oilseeds, USDA researched and evaluated agricultural extension budgets and other sources. These budgets were not used as they are based on differing computational methodologies, can be outdated, and can vary considerably across states even with seemingly similar production environments. Instead, national average costs of production for pulses and certain oilseeds were estimated based on a statistical equation involving crops with complete data. After the equation was estimated, analysts applied the resulting coefficients to the 10-year NASS average harvested yield and the ARC/PLC 2024 market year average price of each commodity with incomplete data. These sources provide the best data available reflecting market conditions for crops with incomplete data and were used in the estimated equation to provide production cost estimates for these crops. These resulting production costs are reflected in Table 3, column c, and the calculation of the payment rate follows the same methodology as shown above for corn. For a detailed explanation of the payment rates for these crops, see the Economic document that is posted as a supporting document in Docket ID FSA–2025–0002 on https:// www.regulations.gov. The values used for each commodity’s payment rate calculation are shown in Table 3. This table includes the data for all eligible commodities. TABLE 3—VARIABLES FOR ECONOMIC ASSISTANCE PAYMENT CALCULATIONS AND FINAL PAYMENT RATE (PER ACRE), BY COMMODITY Crop 10 Year average harvested yield Unit Price forecast Forecasted cost of production Net gross return 26 Percent of gross loss Reference price National average PLC yield Minimum payment (b) (c) (a * b)¥c ((a * b)¥c) * 0.26 (d) (e) (d * e) * 0.08 lotter on DSK11XQN23PROD with NOTICES1 (a) Barley ................ Canola ............... Large Chickpeas Small Chickpeas Corn .................. 73.35 17.26 12.95 13.64 174.16 BU CWT CWT CWT BU $6.60 20.30 33.00 26.00 4.10 5 Projected average farm prices for eligible and available commodities for the 2024 through 2025 marketing year were taken from the World Agriculture Supply and Demand Estimates VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 $472.01 472.80 482.64 475.61 879.10 $12.10 ¥122.42 ¥55.29 ¥120.97 ¥165.04 N/A 31.83 14.38 31.45 42.91 published on December 10, 2024, available at https://downloads.usda.library.cornell.edu/usdaesmis/files/3t945q76s/rb690665c/bn99c223f/ wasde1224v2.pdf. PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 $4.95 20.15 21.54 19.04 3.70 54.73 16.56 13.94 14.24 140.76 $21.67 26.69 24.02 21.69 41.66 Payment rate (greater of gross return vs minimum payment) $21.67 31.83 24.02 31.45 42.91 6 Ten-year average harvested yields were calculated using 2015 through 2024 yield estimates from USDA’s National Agricultural Statistics Service. E:\FR\FM\19MRN1.SGM 19MRN1 12702 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices TABLE 3—VARIABLES FOR ECONOMIC ASSISTANCE PAYMENT CALCULATIONS AND FINAL PAYMENT RATE (PER ACRE), BY COMMODITY—Continued Crop 10 Year average harvested yield Unit Price forecast Forecasted cost of production Net gross return 26 Percent of gross loss Reference price National average PLC yield Minimum payment (b) (c) (a * b)¥c ((a * b)¥c) * 0.26 (d) (e) (d * e) * 0.08 (a) Cotton ............... Crambe * ........... Flax ................... Lentils ................ Mustard ............. Oats .................. Peanuts ............. Peas .................. Rapeseed .......... Rice ................... Safflower ........... Sesame * ........... Sorghum ........... Soybeans .......... Sunflowers ........ Wheat ................ 861.60 13.90 18.50 10.73 6.84 66.41 38.86 17.94 18.47 75.49 12.39 4.89 66.73 50.08 16.79 48.24 LB CWT BU CWT CWT BU CWT CWT CWT CWT CWT CWT BU BU CWT BU 0.66 19.10 12.50 34.50 47.90 3.40 26.50 13.80 15.90 15.60 29.90 39.00 4.10 10.20 19.85 5.60 894.56 310.78 311.90 396.01 346.73 524.48 1184.95 292.10 381.98 1314.84 471.71 255.45 437.14 625.29 438.00 388.19 ¥325.90 ¥45.29 ¥80.65 ¥25.83 ¥19.09 ¥298.69 ¥155.16 ¥44.53 ¥88.31 ¥137.20 ¥101.25 ¥64.74 ¥163.55 ¥114.47 ¥104.72 ¥118.05 84.74 11.78 20.97 6.71 4.96 77.66 40.34 11.58 22.96 35.67 26.32 16.83 42.52 29.76 27.23 30.69 0.37 20.15 11.28 19.97 20.15 2.40 26.75 11.00 20.15 15.28 20.15 20.15 3.95 8.40 20.15 5.50 1755.59 11.84 19.29 12.08 7.05 51.94 35.28 18.21 14.66 62.92 10.85 3.17 61.90 40.44 14.40 41.48 51.97 19.08 17.41 19.30 11.36 9.97 75.51 16.02 23.63 76.94 17.49 5.12 19.56 27.18 23.21 18.25 Payment rate (greater of gross return vs minimum payment) 84.74 19.08 20.97 19.30 11.36 77.66 75.51 16.02 23.63 76.94 26.32 16.83 42.52 29.76 27.23 30.69 Table 1 & 3 Sources: (a) 2015/2016 to 2024/2025 harvested acres from USDA’s National Agricultural Statistics Service (NASS) (pulled from QuickStats in January 2025) were used to calculate the 10-year average harvested yield. Sesame (*) harvested yield estimates are not available in the NASS database. Sesame’s 10-year average harvested yield was calculated using: (1) harvested acres and production from the 2012, 2017, and 2022 Census of Agriculture; and (2) and the application of the year-to-year change from NASS canola yield estimates to estimate 2023 and 2024 changes to sesame. Crambe’s (*) 10-year average harvested yield came from internal USDA estimates of historical crambe yields used for budgetary purposes. (b) 2024–2025 marketing year price forecasts are from the WASDE published December 10, 2024, for barley, corn, cotton, oats, peanuts, rice, soybeans, and wheat. The remaining commodities’ price forecasts are from the 2024–2025 ARC/PLC Marketing Year Average Prices. (c) 2024 costs-of-production forecasts are from USDA’s Economic Research Service’s ‘‘Cost-of-production forecasts for major U.S. fields crops, 2024F–2025F’’ updated on November 14, 2024 (including wheat, corn, sorghum, barley, oats, cotton, peanuts, rice, and soybeans). For commodities that are not available in this publication, a statistical approach was implemented as described above. (d) ARC/PLC Effective Reference Price for Program Year 2024. Note the reference price for rice is weighted to reflect the price of all three classes (japonica, long grain, and medium and short grain). (e) National weighted averaged PLC yields were calculating using PLC yields by county. lotter on DSK11XQN23PROD with NOTICES1 Payment Limitation As provided by the American Relief Act, 2025, the total amount of ECAP payments received, directly or indirectly, by a person or legal entity (except a joint venture or general partnership) may not exceed: • $125,000, if less than 75 percent of the average gross income of the person or legal entity for the 2020, 2021, and 2022 tax years is derived from farming, ranching, or silviculture activities; and • $250,000, if not less than 75 percent of the average gross income of the person or legal entity for the 2020, 2021, and 2022 tax years is derived from farming, ranching, or silviculture activities. As specified in the American Relief Act, 2025, these payment limitations are separate from the payment limitations that apply to other programs. The American Relief Act, 2025, uses the term ‘‘average gross income’’ for payment limitations. This term has a different meaning than ‘‘average adjusted gross income,’’ which is what FSA and CCC programs typically use for purposes of administering payment limits. In order to implement the use of ‘‘average gross income’’ as required by the American Relief Act, 2025, ECAP will use the definition of ‘‘gross income’’ provided in the Internal VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 Revenue Code in 26 U.S.C. 61. FSA is using this definition because FSA has not defined the term for any previous programs. In addition, using the Internal Revenue Code’s definition is consistent with Congress’s prior use of this term, and it will reduce confusion for producers and their licensed enrolled agents, certified public accountants, and attorneys when completing certifications of adjusted gross farm income. The term ‘‘gross income’’ is not used by IRS on tax forms; therefore, to ensure consistency and provide a logical approach for producers, average gross income will be calculated based on the applicable 3-year average (2020, 2021, and 2022) of the reported ‘‘total income’’ on IRS forms 1040, 1041, 1065, and 1120, or similar reported income. The portion of a person or legal entity’s average gross income derived from farming, ranching, or silviculture activities will be referred to as their ‘‘average gross farm income,’’ as defined in this document. As with the use of ‘‘average gross income’’ described above, ‘‘average gross farm income’’ has a different meaning than ‘‘average adjusted gross farm income’’ used in other FSA and CCC programs. Average gross farm income includes income derived from farming, ranching, and silviculture operations, which has the PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 same meaning for ECAP as in other recent FSA and CCC programs that use the term ‘‘income derived from farming, ranching, and forestry operations.’’ Similar to the calculation of ‘‘average adjusted gross income’’ in other FSA and CCC programs, if the average gross farm income derived from the items listed in the definition of ‘‘income derived from farming, ranching, and silviculture operations’’ is at least 66.66 percent of the average gross income of the person or legal entity, then the average gross farm income may also take into consideration income or benefits derived from the sale, trade, or other disposition of equipment to conduct farm, ranch, or forestry operations; and the provision of production inputs and production services to farmers, ranchers, foresters, and farm operations. Inclusion of those income and benefits in this manner was first introduced for the purpose of determining a producer’s ‘‘average adjusted gross farm income’’ by section 1604 of the Food Conservation and Energy Act of 2008 (Pub. L. 110–234), amending section 1001D of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107– 171). This rule has continued to be used in other recent FSA and CCC programs that use determinations of a producer’s average adjusted gross farm income for E:\FR\FM\19MRN1.SGM 19MRN1 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices lotter on DSK11XQN23PROD with NOTICES1 payment eligibility or payment limitation purposes. As provided by the American Relief Act, 2025, the payment attribution provisions of 7 U.S.C. 1308(e) apply to ECAP. 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 7 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 8; • 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 7 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. 8 There will be a reduction applied for the ‘‘first level or payment legal entity,’’ 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. VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 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. ECAP 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 ECAP 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. Indian Tribes and Tribal organizations, as defined in section 4(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304), are not included in the definition of ‘‘legal entity’’ specified in 7 U.S.C. 1308; therefore, they will not be subject to payment limitation. How To Apply FSA will generate pre-filled ECAP applications for producers based on their acreage of eligible commodities on FSA–578. Beginning in late-March 2025, FSA will mail those pre-filled applications to producers who had reported their 2024 crop year acreage of eligible commodities by March 10, 2025. Producers with a level 2 eAuthentication account or a login.gov account may complete their application electronically by visiting https:// www.fsa.usda.gov/ecap. Applicants must submit the FSA–63 ECAP, Emergency Commodity PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 12703 Assistance Program (ECAP) Application, electronically or to their local FSA county office 9 by August 15, 2025. Applicants will submit one application that includes all eligible acreage in all counties nationwide. To apply for ECAP, an applicant must have also reported their planted and prevented planted acreage of eligible commodities to FSA on FSA–578 and filed a notice of loss for acres that were prevented from being planted on CCC– 576, if applicable. FSA will not accept applications on which producers have manually entered acreage data except in situations where adjustment of eligible acres is required as explained in the Eligible Acreage section of this document. Producers who had not reported planted and prevented planted acreage on FSA–578 and filed a notice of loss for prevented planted acreage using CCC–576 by March 10, 2025, must submit those forms as described in the Eligible Acreage section of this document by August 15, 2025. Once submitted, FSA will generate a prefilled ECAP application for the producer to complete and sign. Applicants must also submit the following eligibility forms to FSA by August 17, 2026, if not already on file with FSA for the 2024 program year: • AD–2047, Customer Data Worksheet, for new applicants and 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–943, 75% of Average Gross Income from Farming, Ranching, or Forestry Certification, for producers and members of legal entities who are requesting an increase to the payment limitation; • 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; and • SF–3881, ACH Vendor/ Miscellaneous Payment Enrollment Form.10 Other Provisions General requirements that apply to other FSA-administered commodity 9 To locate the nearest FSA county office, visit the USDA Service Center locator at https:// www.farmers.gov/working-with-us/service-centerlocator. 10 Applicants who are unable to receive payment through direct deposit are still eligible to participate in ECAP. Those applicants should contact their local FSA county office for further information. E:\FR\FM\19MRN1.SGM 19MRN1 lotter on DSK11XQN23PROD with NOTICES1 12704 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices programs also apply to ECAP. Producers that receive ECAP payments must be in compliance with the provisions of 7 CFR part 12, ‘‘Highly Erodible Land and Wetland Conservation,’’ for the 2024 crop year, and the provisions of 7 CFR 718.6, which address ineligibility for benefits for offenses involving controlled substances, for the 2024 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 ECAP 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 an ECAP 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 ECAP. Applicants who request to waive or modify ECAP 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 VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 modify ECAP 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 ECAP. 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 crops, eligible acreage, payment factors, payment limitations, and the payment calculation. Any payment under ECAP 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 ECAP payments. As required by the American Relief Act, 2025, the provisions regarding denial or program benefits in 7 U.S.C. 1308–2 apply to ECAP. FSA will administer these requirements according to the regulations at 7 CFR 1400.5. In either applying for or participating in ECAP, 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 ECAP, 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 ECAP but only as to beneficiaries who, as a condition of the waiver, agree to apply the ECAP payments to reduce the amount of the judgment lien. In addition to any other Federal laws that apply to ECAP, the following laws apply: 18 U.S.C. 286, 287, 371, and 1001. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 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 is providing ECAP payments to eligible producers of eligible commodities for the 2024 crop year. The ECAP payments will help producers of eligible commodities cope with losses from natural disasters and a difficult farm economy, and will help preserve family farms and ranches across the country while also continuing to ensure food and agricultural security for our nation. 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), and the FSA regulations for compliance with NEPA (7 CFR part 799). The purpose of ECAP is to provide assistance to eligible producers who suffered economic losses related to production of eligible commodities for the 2024 crop year. The Categorical Exclusions in 7 CFR 799.31 apply, specifically 7 CFR 799.31(b)(6)(vi) (that is, safety net programs administered by FSA). 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. Federal Assistance Programs The title and number of the Federal assistance programs, as found in the Assistance Listing,11 to which this document applies is 10.121, Emergency Commodity Assistance Program (ECAP). 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, disability, age, marital status, family or parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior 11 See E:\FR\FM\19MRN1.SGM https://sam.gov/content/assistance-listings. 19MRN1 Federal Register / Vol. 90, No. 52 / Wednesday, March 19, 2025 / Notices 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 mode)) 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: (1) mail to: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250–9410; (2) fax: (202) 690–7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, employer, and lender. Kimberly Graham, Acting Administrator, Farm Service Agency. [FR Doc. 2025–04604 Filed 3–18–25; 8:45 am] BILLING CODE 3410–E2–P DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [S–224–2024] lotter on DSK11XQN23PROD with NOTICES1 Approval of Subzone Status; Cummins Inc.; Irvine, Pennsylvania On December 20, 2024, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by the Erie-Western Pennsylvania Port Authority, grantee of FTZ 247, requesting subzone status subject to the existing activation limit of FTZ 247, on behalf of Cummins Inc., in Irvine, Pennsylvania. The application was processed in accordance with the FTZ Act and Regulations, including notice in the Federal Register inviting public comment (89 FR 106423, December 30, 2024). The FTZ staff examiner reviewed VerDate Sep<11>2014 18:11 Mar 18, 2025 Jkt 265001 the application and determined that it meets the criteria for approval. Pursuant to the authority delegated to the FTZ Board Executive Secretary (15 CFR 400.36(f)), the application to establish Subzone 247D was approved on March 13, 2025, subject to the FTZ Act and the Board’s regulations, including section 400.13, and further subject to FTZ’s 530acre activation limit. Dated: March 13, 2025. Elizabeth Whiteman, Executive Secretary. [FR Doc. 2025–04527 Filed 3–18–25; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Bureau of Industry and Security Materials and Equipment Technical Advisory Committee; Notice of Partially Closed Meeting Bureau of Industry and Security, U.S. Department of Commerce. ACTION: Notice of partially closed meeting. AGENCY: The Materials and Equipment Technical Advisory Committee (METAC) advises and assists the Secretary of Commerce and other Federal officials on matters related to export control policies; the METAC will meet to review and discuss these matters. The meeting will be partially closed to the public pursuant to the exemptions under the Federal Advisory Committee Act (FACA) and the Government in the Sunshine Act. DATES: The meeting will be held on April 3, 2025, from 10 a.m. to 3 p.m., Eastern Time. The open session will start at 10 a.m. and end at approximately 12 p.m. The closed session will start at approximately 1 p.m. and end no later than 3 p.m. Individuals requiring special accommodations to access the public meeting should contact TAC@ bis.doc.gov no later than Thursday, March 27, 2025, so that appropriate arrangements can be made. Individuals interested in participating virtually should contact TAC@bis.doc.gov no later than 11:59 p.m. Eastern Time on April 1, 2025. ADDRESSES: The meeting will be held in Room 3884 of the Herbert C. Hoover Building, 1401 Constitution Avenue NW, Washington, DC (enter through the Main Entrance on 14th Street between Constitution and Pennsylvania Avenues). The public session will be accessible via teleconference. FOR FURTHER INFORMATION CONTACT: Tara Gonzalez, Committee Liaison Officer, SUMMARY: PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 12705 Bureau of Industry and Security, U.S. Department of Commerce. For additional information, contact (202) 482–4933 or TAC@bis.doc.gov. SUPPLEMENTARY INFORMATION: Background The Materials and Equipment Technical Advisory Committee (METAC) advises and assists the Secretary of Commerce (Secretary) and other Federal officials and agencies with respect to actions designed to carry out the policy set forth in Section 1752 of the Export Control Reform Act. The purpose of the meeting is to have the METAC members and U.S. Government representatives mutually review the updated technical data and policydriving information that has been gathered. Agenda The public session will include working group reports, open business discussions, and industry presentations. The closed session will include discussion of matters determined to be exempt from the open meeting and public participation requirements found in sections 1009(a)(1) and 1009(a)(3) of the Federal Advisory Committee Act (FACA) (5 U.S.C. 1001–1014). Open Session Attendance The open session will be accessible via teleconference. To participate virtually, submit inquiries to TAC@ bis.doc.gov. Registration in advance is required to receive the meeting invite for virtual attendance. Individuals interested in participating virtually should contact TAC@bis.doc.gov no later than 11:59 p.m. Eastern Time on April 1, 2025. A limited number of seats will be available for members of the public to attend the open session in person on a first-come basis. Reservations to attend in person are not accepted. Registration in advance is not required for in-person attendance, but you will be asked to sign an attendance log when you arrive. Special Accommodations Individuals requiring special accommodations to access the public meeting should contact TAC@ bis.doc.gov no later than 11:59 p.m. Eastern Time on Thursday, March 27, 2025, so that appropriate arrangements can be made. Public Participation To the extent that time permits during the open session, members of the public may present oral statements to the METAC. The public may submit written statements at any time before or after the E:\FR\FM\19MRN1.SGM 19MRN1

Agencies

[Federal Register Volume 90, Number 52 (Wednesday, March 19, 2025)]
[Notices]
[Pages 12696-12705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04604]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

[Docket ID FSA-2025-0002]


Notice of Funds Availability (NOFA); Emergency Commodity 
Assistance Program (ECAP)

AGENCY: Farm Service Agency, U.S. Department of Agriculture (USDA).

ACTION: Notification of funds availability.

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SUMMARY: The Farm Service Agency (FSA) is issuing this notice 
announcing the funding for ECAP, which will provide economic assistance 
payments to eligible producers of eligible commodities for the 2024 
crop year. ECAP is a new FSA program authorized by the American Relief 
Act, 2025. This notice also announces the eligibility (commodities, 
acres, producers, and losses), payment calculations, payment 
limitations, and how to apply (pre-filled application and any required 
adjustments) for ECAP.

DATES: Applications Due Date: We will accept applications from March 
19, 2025, through August 15, 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 mode)) 
or dial 711 for Telecommunications Relay Service (both voice and text 
telephone users can initiate this call from any telephone).

SUPPLEMENTARY INFORMATION:

Background

    This document announces the funding for ECAP, which is a new 
program authorized by section 2102 of Title I of Division B of the 
American Relief Act, 2025 (Pub. L. 118-158) and administered by FSA. 
ECAP will use up to $10 billion to issue 1-time economic assistance 
payments to eligible

[[Page 12697]]

producers of eligible commodities for the 2024 crop year. These 
payments are intended to help farmers cope with losses from natural 
disasters and a difficult farm economy, and will help preserve family 
farms and ranches across the country while also continuing to ensure 
food and agricultural security for our nation.\1\
---------------------------------------------------------------------------

    \1\ Tom Cole Floor Remarks on H.R. 10545, the American Relief 
Act, 2025; available at https://appropriations.house.gov/news/remarks/cole-floor-remarks-hr-10545-american-relief-act-2025.
---------------------------------------------------------------------------

Definitions

    The following definitions apply to this notice:
    Application means the ECAP application form.
    ARC means Agriculture Risk Coverage codified at 7 U.S.C. 9017.
    Average gross farm income means the average of the person or legal 
entity's gross income derived from farming, ranching, and silviculture 
\2\ operations, for the base period consisting of the 2020, 2021, and 
2022 tax years.
---------------------------------------------------------------------------

    \2\ Both ``silviculture'' and ``forestry'' have been used in 
statutes, regulations, and NOFAs related to payment limitation for 
FSA and Commodity Credit Corporation (CCC) programs. FSA considers 
the terms to have the same meaning for the purpose of administering 
payment limitations.
---------------------------------------------------------------------------

    If the resulting average gross farm income derived from items 1 
through 13 of the definition of income derived from farming, ranching, 
and silviculture operations is at least 66.66 percent of the average 
gross income of the person or legal entity, then the average 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 of the tax years during the base period (2020, 2021, or 
2022), the average gross farm income will be the gross farm income, 
averaged for the 2020, 2021, and 2022 tax years, as determined by FSA. 
For a legal entity created during the base period, the gross farm 
income average will include only 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 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 gross income means the average of the gross income as 
defined under 26 U.S.C. 61 of the person or legal entity, for the 2020, 
2021 and 2022 tax years.
    Base period means the 2020, 2021, and 2022 tax years.
    Cotton means extra-long staple cotton and upland cotton.
    Corn means only white, yellow, amylose, popcorn (excluding 
strawberry popcorn), waxy, and high amylase corn.
    Crop year means the calendar year in which a commodity was intended 
for harvest.
    CCC means the Commodity Credit Corporation.
    Deputy Administrator means the FSA Deputy Administrator for Farm 
Programs.
    Determined acreage means that acreage established by an FSA 
representative by use of official acreage, digitizing areas on a 
photograph or other imagery, or computations from scaled dimensions or 
ground measurements.
    Double cropping means, as determined by the Deputy Administrator on 
a regional basis, consecutive planting of two specific crops that have 
the capability to be planted and carried to maturity for the intended 
uses, as reported by the producer, on the same acreage within a 12-
month period. To be considered double cropping, the planting of two 
specific crops must be in an area where the FSA State Committee has 
determined that producers are typically able to repeat the same cycle 
successfully in a subsequent 12-month period under normal growing 
conditions.
    Dry peas means Austrian, green, wrinkled seed, and yellow peas, 
excluding peas grown for the fresh, canning, or frozen market.
    Economic loss means, as specified in section 2102(a)(4)(B) of the 
American Relief Act, 2025, the difference between the expected cost of 
production per acre for an eligible commodity and the expected gross 
return per acre for that eligible commodity.
    Eligible commodities means barley, canola, crambe, corn, dry peas, 
extra-long staple cotton, flax, large chickpeas, mustard, lentils, 
oats, peanuts, rapeseed, rice, safflower, sesame, small chickpeas, 
sorghum, soybeans, sunflower, upland cotton, and wheat.
    Expected cost of production per acre means, as specified in section 
2102(a)(3) of the American Relief Act, 2025:
    (1) For wheat, corn, grain sorghum, barley, oats, cotton, rice, and 
soybeans, the total costs listed for the 2024 crop year with respect to 
the applicable eligible commodity contained in the most recent data 
product titled ``national average cost-of-production forecasts for 
major U.S. field crops'' published by the Economic Research Service; 
and
    (2) For an eligible commodity not specified in paragraph (1) of 
this definition, a comparable total estimated cost-of-production, as 
determined by the Secretary.
    Expected gross return per acre means, as specified in section 
2102(a)(2) of the American Relief Act, 2025:
    (1) For wheat, corn, grain sorghum, barley, oats, cotton, rice, and 
soybeans, the product obtained by multiplying:
    (i) The projected average farm price for the applicable eligible 
commodity for the 2024-2025 marketing year contained in the most recent 
World Agricultural Supply and Demand Estimates published before 
December 21, 2024, by the World Agricultural Outlook Board; and
    (ii) The national average harvested yield per acre for the 
applicable eligible commodity for the most recent crop years, as 
determined by the Secretary; and
    (2) For an eligible commodity not specified in paragraph (1) of 
this definition, a comparable estimate of gross returns, as determined 
by the Secretary.
    Extra-long staple cotton means cotton that follows the standard 
planting and harvesting practices of the area in which the cotton is 
grown, and meets all of the following conditions:
    (1) American-Pima, Sea Island, Sealand, all other varieties of the 
Barbandense species of cotton and any hybrid thereof, and any other 
variety of cotton in which 1 or more of these varieties is predominant;
    (2) The acreage is grown in a county designated as an extra-long 
staple cotton county by the Secretary; and
    (3) The production from the acreage is ginned on a roller-type gin.
    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.

[[Page 12698]]

    Grain sorghum means grain sorghum of a feed grain or dual-purpose 
variety (including any cross that, at all stages of growth, having 
characteristics of a feed grain or dual-purpose variety) that follows 
the standard planting and harvesting practice for grain sorghum for the 
area in which the grain sorghum was planted. Sweet sorghum is not 
considered a grain sorghum.
    Income derived from farming, ranching, and silviculture 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 (also known 
as 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 an entity that is created under Federal or State 
law and that:
    (1) Owns land or an agricultural commodity; or
    (2) Produces an agricultural commodity.
    Legal entities include corporations, joint stock companies, 
associations, limited partnerships, limited liability companies, 
irrevocable trusts, estates, charitable organizations, general 
partnerships, joint ventures, and other similar organizations 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.
    Minor child means a person who is under 18 years of age as of June 
1, 2024.
    Ownership interest means to have either a legal ownership interest 
or a beneficial ownership interest in a legal entity. For the purposes 
of administering ECAP, a person or legal entity that owns a share or 
stock in a legal entity that is a corporation, limited liability 
company, limited partnership, or similar type entity where members hold 
a legal ownership interest and shares in the profits or losses of such 
entity is considered to have an ownership interest in such legal 
entity. A person or legal entity that is a beneficiary of a trust or 
heir of an estate who benefits from the profits or losses of such 
entity is 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.
    Peanuts means all peanuts excluding perennial peanuts.
    PLC means Price Loss Coverage codified at 7 U.S.C. 9016.
    Producer means an owner, operator, landlord, tenant, or 
sharecropper that shares in the risk of producing a crop and is 
entitled to share in the crop available for marketing from the farm, or 
would have shared had the crop been produced.
    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.
    Rice means long grain rice and medium grain rice, including 
temperate japonica rice, short grain, and sweet rice.
    Secretary means the Secretary of Agriculture.
    Skip-row means a cultural practice in which rows of a crop are 
alternated with strips of idle land or another crop, as determined by 
the Secretary.
    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.
    Upland cotton means cotton that is produced in the United States 
from other than pure strain varieties of the Barbadense species, any 
hybrid thereof, or any other variety of cotton in which one or more of 
these varieties predominate. In other words, it means any cotton that 
is not extra-long staple cotton.
    USDA means the U.S. Department of Agriculture.

Eligible Commodities

    As provided in the American Relief Act, 2025, eligible commodities 
for ECAP include loan commodities as defined in section 1201(a) of the 
Agricultural Act of 2014 (7 U.S.C. 9031(a)), excluding graded wool, 
nongraded wool, mohair, or honey. Therefore, eligible commodities 
include wheat, corn, sorghum, barley, oats, upland cotton, extra-long 
staple cotton, long grain rice, medium grain rice, peanuts, soybeans, 
other oilseeds, dry peas, lentils, small chickpeas, and large 
chickpeas. Eligible ``other oilseeds'' are canola, crambe, flax, 
mustard, rapeseed, safflower, sesame, and sunflower.

Eligible Acres

    As provided in the American Relief Act, 2025, the eligible acres of 
an eligible commodity on a farm are equal to the sum of:
     the acreage planted on the farm to that eligible commodity 
for harvest, grazing, haying, silage, or other similar purposes for the 
2024 crop year; and
     50 percent of the acreage on the farm that was prevented 
from being planted during the 2024 crop year to that eligible commodity 
because of drought, flood, or other natural disaster, or other 
condition beyond the control of the producers on the farm, as 
determined by the Secretary.
    Acreage must be located in the United States to be eligible. FSA 
will calculate payments based on determined acreage, or on reported 
acres if determined acres are not present. Planted acreage

[[Page 12699]]

includes any land devoted to planted acres for accepted skip-row 
planting patterns, as determined by the Secretary.\3\
---------------------------------------------------------------------------

    \3\ FSA will calculate ECAP payments for skip-row acreage based 
on the total acres devoted to the commodity without making 
reductions that are applicable to other FSA programs, as specified 
in 7 CFR 718.108.
---------------------------------------------------------------------------

    In situations where a producer planted, or was prevented from 
planting, both an initial crop and a subsequent crop on the same 
acreage for the 2024 crop year, the initial crop will be eligible for 
ECAP if it was an eligible commodity. If the subsequent crop that was 
planted or prevented from being planted was also an eligible commodity, 
it will also be eligible for ECAP if it was in an approved double 
cropping combination.
    A subsequent eligible commodity will also be eligible for ECAP when 
it is planted or prevented from being planted after an initial crop 
that is not an eligible commodity or a fruit, vegetable, or wild rice, 
and the combination does not meet the existing definition of an 
approved double cropping situation (for example, an initial crop of 
mixed forage followed by a subsequent crop of corn). The acreage of the 
subsequent eligible commodity is eligible in these situations because 
the initial crop may be a reflection of early acreage reporting 
deadlines and reporting requirements of other FSA programs rather than 
the producer's planting intention for the 2024 crop year. FSA acreage 
reporting provisions require producers to report certain crops by 
certain deadlines, in each calendar year, and some FSA programs require 
a complete acreage report for program eligibility. For example, grasses 
and other perennial forages would have been reported to FSA in the fall 
of the 2023 calendar year and captured as an initial crop for the 2024 
crop year; however, frequently perennial grass cover is planted to an 
annual crop (such as an eligible commodity) in the following spring. As 
a result of acreage reporting rules, the annual crop is reported as a 
subsequent crop even though this may have been the producer's initial 
intent for the 2024 crop year. Producers of eligible commodities 
reported in this manner had a reasonable expectation of planting and 
harvesting the crop in a single crop year, and they experienced 
increased input costs and falling commodity prices that are intended to 
be addressed by ECAP.
    In cases where a producer reports both an initial eligible 
commodity and a subsequent eligible commodity on the same acreage and 
the combination does not meet the definition of an approved double 
cropping situation, only the initial commodity will be eligible for an 
ECAP payment. This rule applies even in cases where the initial 
eligible commodity failed or was prevented from being planted. Limiting 
eligibility to the initial planting of an eligible commodity in cases 
where the producer could not have reasonably expected to make use of 
both ECAP eligible commodities in a single crop year is consistent with 
other programs administered by FSA (for example, under the Individual 
Coverage option for ARC (see definition of ``double cropping'' in 7 CFR 
1412.3)).
    For ECAP, an exception to that rule applies when the Federal Crop 
Insurance Corporation (FCIC) Small Grain Crop Provisions allow for a 
reduced premium for small grain acreage that is intentionally destroyed 
prior to harvest, which is referred to as ``short-rate.'' In short-rate 
scenarios, producers graze the small grain acreage and then still have 
the opportunity to timely plant a spring commodity with a reasonable 
expectation to produce a normal yield, therefore making use of both 
commodities. Acreage that has been reported with both an insured 
initial small grain crop that was intentionally destroyed before 
harvest by grazing or other means and is timely reported to the 
producer's crop insurance agent in accordance with section 6 of the 
FCIC's Small Grains Crop Provisions, and is then followed with a 
subsequent eligible commodity that is not an approved double crop 
scenario, will be eligible for payment on both plantings of eligible 
commodities. In this scenario, both eligible commodities are planted 
within the recommended planting period and are expected to result in 
normal crop production. While this may not be considered an approved 
double cropping scenario in some counties under FSA's acreage reporting 
provisions, as both crop plantings could not be carried to final use in 
one crop year, the practice is standard for the distinct geographic 
production region and the producers suffered an economic loss on both 
crops.
    Volunteer acreage, experimental acreage, and acreage with an 
intended use of green manure or left standing are not eligible for 
payment under ECAP because the producer did not plant the acreage, or 
intend to plant the acreage in cases of prevented planting, for the 
purposes specified in section 2102 of Title I of Division B of the 
American Relief Act, 2025.
    In cases where the same acreage of a commodity was reported with 
two different intended uses, FSA will not issue duplicate payments for 
that acreage based on each intended use. If both intended uses were 
reported by the same producer, the producer will receive one payment 
based on the eligible acres of the commodity. If the two different 
intended uses were reported by two different producers, the producer 
with responsibility for input expenses for the acres will be eligible, 
and the producer who was not responsible for the input expenses must 
adjust the eligible acreage for that commodity on their application to 
remove those acres. If the producers shared responsibility for input 
expenses for the acreage, each producer must adjust their eligible 
acres on their applications to represent a share of those acres that is 
proportional to their share of the inputs. For example, if 100 acres of 
wheat were reported by one producer with an intended use of grain, and 
also by a second producer who leases that land for grazing and has a 
lease that requires the second producer to pay for one-third of the 
input costs, the producer reporting the intended use of grain must 
adjust their acres to 66.67 acres (two-thirds of 100 acres) and the 
producer reporting the intended use of grazing must adjust their acres 
to 33.33 acres (one-third of 100 acres).
    The American Relief Act, 2025, provides that eligible acreage that 
was prevented from being planted must have been due to drought, flood, 
or other natural disaster, or other condition beyond the control of the 
producers on the farm, as determined by the Secretary, as provided in 7 
CFR 718.103. For prevented planted acres to be eligible for ECAP, 
producers must have filed a notice of loss on CCC-576, Part B.
    Producers must have reported planted and prevented planted acres to 
FSA on FSA-578, Report of Acreage, to be eligible for payment. 
Producers who have not previously reported their 2024 crop year acreage 
of eligible commodities, and filed a notice of loss for prevented 
planted crops, may report their acreage of eligible commodities on FSA-
578 and submit CCC-576 for prevented planting even if the deadlines 
applicable to other FSA programs have passed. Because ECAP is based on 
a producer's 2024 crop year acreage and those eligible commodities have 
already been harvested or grazed, producers who submit late-filed 
acreage reports for ECAP eligibility will not be required to pay the 
cost of a farm inspection and measurement applicable to other FSA 
programs. If requested by FSA, a producer must also submit additional 
documentation supporting the late-filed acreage report such as seed 
receipts,

[[Page 12700]]

chemical and fertilizer receipts, precision planting records, 
harvesting records, geospatial data or maps, and published weather 
data. Producers must submit any required additional documentation 
within 30 days of the request. Acreage and prevented planting reports 
that are late-filed for ECAP eligibility will not be used to determine 
eligibility for other FSA programs for which these reports are required 
and the deadline applicable to the other programs has passed.

Eligible Producers

    The American Relief Act, 2025, requires a producer to be actively 
engaged in farming, as specified in 7 U.S.C. 1308-1, to be eligible for 
ECAP. FSA will administer this requirement according to the regulations 
in 7 CFR part 1400, subparts C and G, which apply to FSA administered 
CCC programs that require a producer to be actively engaged in farming.
    In addition, a producer must be one of the following to be 
eligible:
     Citizen of the United States;
     Resident alien, which for purposes of ECAP 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.
    As required by the American Relief Act, 2025, the provisions of 7 
U.S.C. 1308-3 regarding eligibility of foreign persons apply to ECAP, 
and FSA will administer those requirements as provided in 7 CFR 
1400.401. 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.
    The American Relief Act, 2025, specifies that the provisions of 7 
U.S.C. 1308 regarding eligibility of Federal agencies, and State and 
local governments apply to ECAP. Federal agencies are not eligible for 
ECAP. A State, political subdivision, or agency thereof, is not 
eligible for an ECAP payment unless both of the following apply:
     The land for which payments are received is owned by the 
State, political subdivision, or agency thereof; and
     The payments are used solely for the support of public 
schools.
    The total of payments to the State, political subdivision, or 
agency thereof cannot exceed $500,000 annually, except for States with 
a population less than 1,500,000, as established by the most recent 
U.S. Census Bureau annual estimate of the State's resident population. 
This limitation is in addition to the limitation per person or legal 
entity described in the Payment Limitation section of this document. 
For States with a population less than 1,500,000, they are subject to 
the regular per person or entity limit discussed in the payment 
limitation section below.

Payment Rates and Calculation

    As specified in section 2102 of Title I of Division B of the 
American Relief Act, 2025, an ECAP payment will be equal to the greater 
of:
    (1) 26 percent of the product obtained by multiplying the economic 
loss for an eligible commodity, which is the difference between the 
expected cost of production per acre and the expected gross return per 
acre for that eligible commodity, by the eligible acres of that 
eligible commodity on the farm; or
    (2) The product obtained by multiplying the following 3 numbers:
    (a) 8 percent of the eligible commodity's PLC reference price (7 
U.S.C. 9011(19)), by
    (b) the PLC national average payment yield for the eligible 
commodity (7 U.S.C. 9011(15)), and
    (c) the number of eligible acres of that eligible commodity on the 
farm.
    For the purpose of ECAP payment calculation, FSA has calculated a 
payment rate for each eligible commodity that is equal to the greater 
of:
    (1) 26 percent of the economic loss (that is, the difference 
between the expected cost of production per acre and the expected gross 
return per acre) for an eligible commodity (referred to as the 
``economic loss payment rate'' in this document); or
    (2) 8 percent of the eligible commodity's PLC reference price, 
multiplied by the eligible commodity's PLC national average payment 
yield (referred to as the ``minimum payment rate'' in this document).
    The payment rates for each commodity are shown in Table 1. An 
explanation of how these rates were developed is included in the next 
section of this document.

             Table 1--Payment Rate (Per Acre), by Commodity
------------------------------------------------------------------------
                        Commodity                          Payment rate
------------------------------------------------------------------------
Barley..................................................          $21.67
Canola..................................................           31.83
Large Chickpeas.........................................           24.02
Small Chickpeas.........................................           31.45
Corn....................................................           42.91
Cotton..................................................           84.74
Crambe..................................................           19.08
Flax....................................................           20.97
Lentils.................................................           19.30
Mustard.................................................           11.36
Oats....................................................           77.66
Peanuts.................................................           75.51
Peas....................................................           16.02
Rapeseed................................................           23.63
Rice....................................................           76.94
Safflower...............................................           26.32
Sesame..................................................           16.83
Sorghum.................................................           42.52
Soybeans................................................           29.76
Sunflowers..............................................           27.23
Wheat...................................................           30.69
------------------------------------------------------------------------

    To calculate a producer's ECAP payment, FSA will multiply the 
payment rate for an eligible commodity by the producer's eligible acres 
of that eligible commodity. FSA will issue eligible ECAP payments as 
applications are approved. ECAP payments will be prorated by 85 percent 
to ensure that payments do not exceed the available funding. FSA may 
issue an additional payment if additional funding remains available 
after initial prorated ECAP payments are issued to eligible producers 
based upon the terms of this NOFA and applications received by the 
closing date.

Payment Rate Development

    The American Relief Act, 2025, specifies how to calculate the 
expected gross return per acre and expected cost of production per acre 
that were used to determine the payment rates for wheat, corn, sorghum, 
barley, oats, cotton, rice, and soybeans. For these commodities, the 
expected cost of production per acre is equal to the total costs listed 
for the 2024 crop year with respect to the applicable eligible 
commodity contained in the most recent data product titled ``national 
average cost-of-production forecasts for major U.S. field crops'' 
published by USDA's Economic Research Service (ERS).\4\ The expected 
gross return per acre for those commodities is equal to the projected 
average farm price for the applicable eligible commodity for the 2024 
through 2025 marketing year from the World

[[Page 12701]]

Agricultural Supply and Demand Estimates (WASDE) published on December 
10, 2024,\5\ multiplied by the national average harvested yield per 
acre for the applicable eligible commodity for the most recent 10 crop 
years.\6\ The net gross return is the gross return minus the expected 
cost-of-production.
---------------------------------------------------------------------------

    \4\ The ERS document is ``Cost-of-production forecasts for major 
U.S. field crops, 2024F-2025F'' updated on November 14, 2024, 
available at https://www.ers.usda.gov/data-products/commodity-costs-and-returns.
    \5\ Projected average farm prices for eligible and available 
commodities for the 2024 through 2025 marketing year were taken from 
the World Agriculture Supply and Demand Estimates published on 
December 10, 2024, available at https://downloads.usda.library.cornell.edu/usda-esmis/files/3t945q76s/rb690665c/bn99c223f/wasde1224v2.pdf.
    \6\ Ten-year average harvested yields were calculated using 2015 
through 2024 yield estimates from USDA's National Agricultural 
Statistics Service.
---------------------------------------------------------------------------

    An example of the resulting payment calculation used to determine 
the payment rate is shown below, in detail, using corn. The detailed 
values (a through e) used in the calculation are shown in Table 2.

                            Table 2--Corn Example Payment Rate Calculations; Variables for Economic Assistance Payment Calculations and Final Payment Rate (Per Acre)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                   Payment rate
                                                    10 Year                        Forecasted                                                       National                        (greater of
                      Crop                          average      Unit     Price      cost of       Net gross       26 Percent of      Reference   average  PLC  Minimum  payment   gross return
                                                   harvested            forecast   production       return           gross loss         price         yield                         vs minimum
                                                     yield                                                                                                                           payment)
                                                         (a)   .......      (b)           (c)       (a * b)-c   ((a * b)-c) * 0.26          (d)           (e)    (d * e) * 0.08   ..............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Corn............................................      174.16       BU      4.10        879.10         -165.04                42.91         3.70        140.76             41.66           42.91
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
See Table 3 for sources.

    To start, we estimated the net gross return for corn:

Net Gross Return for Corn = (a * b) = (174.16 * $4.10) = $714.06
(a * b)-c = $714.06-$879.10 = -$165.04/acre

    The next step is to calculate the economic loss payment rate for 
corn:

Economic Loss Payment Rate for Corn (greater than 0 given economic 
loss) = [verbar](a * b)-c[verbar] * 26% = $165.04 * 0.26 = $42.91/acre

    Next, as required for the comparison, we calculated the minimum 
payment rate:

Minimum Payment Rate = (d * 8%) * e = ($3.70 * 8%) * 140.76 = $41.66 
per acre

    Given that the economic loss payment rate is greater than the 
minimum payment rate, the payment rate for corn is equal to $42.91 per 
acre. The payment per acre is applied to all eligible acres.
    For commodities for which the Secretary determines there is 
insufficient data from the USDA sources noted above, the American 
Relief Act, 2025, provides that the Secretary will determine a 
comparable estimate of gross returns and a comparable total estimated 
cost of production. Eligible commodities that do not have a price 
projection available in WASDE, nor a cost-of-production forecast in the 
``national average cost-of-production forecasts for major U.S. field 
crops,'' include pulse crops (large chickpeas, small chickpeas, dry 
peas, lentils) and certain oilseeds (canola, crambe, flax, mustard, 
rapeseed, safflower, sesame, sunflower). Peanuts do not have a price 
forecast published in the WASDE. For commodities not available in the 
WASDE, price projections for the 2024-2025 marketing year were taken 
from the ARC/PLC 2024 Market Year Average Prices web posting as of 
January 2025. This is the only data set published by USDA that provides 
crop year price forecasts for those crops that are not included in the 
WASDE, and these prices are determined using similar methods as WASDE 
forecasts.
    Regarding cost of production data for pulses and certain oilseeds, 
USDA researched and evaluated agricultural extension budgets and other 
sources. These budgets were not used as they are based on differing 
computational methodologies, can be outdated, and can vary considerably 
across states even with seemingly similar production environments. 
Instead, national average costs of production for pulses and certain 
oilseeds were estimated based on a statistical equation involving crops 
with complete data. After the equation was estimated, analysts applied 
the resulting coefficients to the 10-year NASS average harvested yield 
and the ARC/PLC 2024 market year average price of each commodity with 
incomplete data. These sources provide the best data available 
reflecting market conditions for crops with incomplete data and were 
used in the estimated equation to provide production cost estimates for 
these crops. These resulting production costs are reflected in Table 3, 
column c, and the calculation of the payment rate follows the same 
methodology as shown above for corn. For a detailed explanation of the 
payment rates for these crops, see the Economic document that is posted 
as a supporting document in Docket ID FSA-2025-0002 on https://www.regulations.gov.
    The values used for each commodity's payment rate calculation are 
shown in Table 3. This table includes the data for all eligible 
commodities.

                                         Table 3--Variables for Economic Assistance Payment Calculations and Final Payment Rate (Per Acre), by Commodity
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                    Payment rate
                                                10 Year                                                                                                                              (greater of
                                                average                                Price     Forecasted   Net gross     26 Percent of     Reference    National      Minimum        gross
                    Crop                       harvested             Unit             forecast    cost of      return        gross loss         price      average       payment     return  vs
                                                 yield                                           production                                               PLC yield                    minimum
                                                                                                                                                                                      payment)
                                                      (a)  ........................        (b)          (c)   (a * b)-c  ((a * b)-c) * 0.26         (d)          (e)     (d * e) *  ............
                                                                                                                                                                              0.08
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Barley......................................        73.35  BU                            $6.60      $472.01      $12.10                 N/A       $4.95        54.73        $21.67        $21.67
Canola......................................        17.26  CWT                           20.30       472.80     -122.42               31.83       20.15        16.56         26.69         31.83
Large Chickpeas.............................        12.95  CWT                           33.00       482.64      -55.29               14.38       21.54        13.94         24.02         24.02
Small Chickpeas.............................        13.64  CWT                           26.00       475.61     -120.97               31.45       19.04        14.24         21.69         31.45
Corn........................................       174.16  BU                             4.10       879.10     -165.04               42.91        3.70       140.76         41.66         42.91

[[Page 12702]]

 
Cotton......................................       861.60  LB                             0.66       894.56     -325.90               84.74        0.37      1755.59         51.97         84.74
Crambe *....................................        13.90  CWT                           19.10       310.78      -45.29               11.78       20.15        11.84         19.08         19.08
Flax........................................        18.50  BU                            12.50       311.90      -80.65               20.97       11.28        19.29         17.41         20.97
Lentils.....................................        10.73  CWT                           34.50       396.01      -25.83                6.71       19.97        12.08         19.30         19.30
Mustard.....................................         6.84  CWT                           47.90       346.73      -19.09                4.96       20.15         7.05         11.36         11.36
Oats........................................        66.41  BU                             3.40       524.48     -298.69               77.66        2.40        51.94          9.97         77.66
Peanuts.....................................        38.86  CWT                           26.50      1184.95     -155.16               40.34       26.75        35.28         75.51         75.51
Peas........................................        17.94  CWT                           13.80       292.10      -44.53               11.58       11.00        18.21         16.02         16.02
Rapeseed....................................        18.47  CWT                           15.90       381.98      -88.31               22.96       20.15        14.66         23.63         23.63
Rice........................................        75.49  CWT                           15.60      1314.84     -137.20               35.67       15.28        62.92         76.94         76.94
Safflower...................................        12.39  CWT                           29.90       471.71     -101.25               26.32       20.15        10.85         17.49         26.32
Sesame *....................................         4.89  CWT                           39.00       255.45      -64.74               16.83       20.15         3.17          5.12         16.83
Sorghum.....................................        66.73  BU                             4.10       437.14     -163.55               42.52        3.95        61.90         19.56         42.52
Soybeans....................................        50.08  BU                            10.20       625.29     -114.47               29.76        8.40        40.44         27.18         29.76
Sunflowers..................................        16.79  CWT                           19.85       438.00     -104.72               27.23       20.15        14.40         23.21         27.23
Wheat.......................................        48.24  BU                             5.60       388.19     -118.05               30.69        5.50        41.48         18.25         30.69
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table 1 & 3 Sources:
(a) 2015/2016 to 2024/2025 harvested acres from USDA's National Agricultural Statistics Service (NASS) (pulled from QuickStats in January 2025) were used to calculate the 10-year average
  harvested yield. Sesame (*) harvested yield estimates are not available in the NASS database. Sesame's 10-year average harvested yield was calculated using: (1) harvested acres and
  production from the 2012, 2017, and 2022 Census of Agriculture; and (2) and the application of the year-to-year change from NASS canola yield estimates to estimate 2023 and 2024 changes to
  sesame. Crambe's (*) 10-year average harvested yield came from internal USDA estimates of historical crambe yields used for budgetary purposes.
(b) 2024-2025 marketing year price forecasts are from the WASDE published December 10, 2024, for barley, corn, cotton, oats, peanuts, rice, soybeans, and wheat. The remaining commodities'
  price forecasts are from the 2024-2025 ARC/PLC Marketing Year Average Prices.
(c) 2024 costs-of-production forecasts are from USDA's Economic Research Service's ``Cost-of-production forecasts for major U.S. fields crops, 2024F-2025F'' updated on November 14, 2024
  (including wheat, corn, sorghum, barley, oats, cotton, peanuts, rice, and soybeans). For commodities that are not available in this publication, a statistical approach was implemented as
  described above.
(d) ARC/PLC Effective Reference Price for Program Year 2024. Note the reference price for rice is weighted to reflect the price of all three classes (japonica, long grain, and medium and short
  grain).
(e) National weighted averaged PLC yields were calculating using PLC yields by county.

Payment Limitation

    As provided by the American Relief Act, 2025, the total amount of 
ECAP payments received, directly or indirectly, by a person or legal 
entity (except a joint venture or general partnership) may not exceed:
     $125,000, if less than 75 percent of the average gross 
income of the person or legal entity for the 2020, 2021, and 2022 tax 
years is derived from farming, ranching, or silviculture activities; 
and
     $250,000, if not less than 75 percent of the average gross 
income of the person or legal entity for the 2020, 2021, and 2022 tax 
years is derived from farming, ranching, or silviculture activities.
    As specified in the American Relief Act, 2025, these payment 
limitations are separate from the payment limitations that apply to 
other programs.
    The American Relief Act, 2025, uses the term ``average gross 
income'' for payment limitations. This term has a different meaning 
than ``average adjusted gross income,'' which is what FSA and CCC 
programs typically use for purposes of administering payment limits. In 
order to implement the use of ``average gross income'' as required by 
the American Relief Act, 2025, ECAP will use the definition of ``gross 
income'' provided in the Internal Revenue Code in 26 U.S.C. 61. FSA is 
using this definition because FSA has not defined the term for any 
previous programs. In addition, using the Internal Revenue Code's 
definition is consistent with Congress's prior use of this term, and it 
will reduce confusion for producers and their licensed enrolled agents, 
certified public accountants, and attorneys when completing 
certifications of adjusted gross farm income. The term ``gross income'' 
is not used by IRS on tax forms; therefore, to ensure consistency and 
provide a logical approach for producers, average gross income will be 
calculated based on the applicable 3-year average (2020, 2021, and 
2022) of the reported ``total income'' on IRS forms 1040, 1041, 1065, 
and 1120, or similar reported income.
    The portion of a person or legal entity's average gross income 
derived from farming, ranching, or silviculture activities will be 
referred to as their ``average gross farm income,'' as defined in this 
document. As with the use of ``average gross income'' described above, 
``average gross farm income'' has a different meaning than ``average 
adjusted gross farm income'' used in other FSA and CCC programs. 
Average gross farm income includes income derived from farming, 
ranching, and silviculture operations, which has the same meaning for 
ECAP as in other recent FSA and CCC programs that use the term ``income 
derived from farming, ranching, and forestry operations.''
    Similar to the calculation of ``average adjusted gross income'' in 
other FSA and CCC programs, if the average gross farm income derived 
from the items listed in the definition of ``income derived from 
farming, ranching, and silviculture operations'' is at least 66.66 
percent of the average gross income of the person or legal entity, then 
the average gross farm income may also take into consideration income 
or benefits derived from the sale, trade, or other disposition of 
equipment to conduct farm, ranch, or forestry operations; and the 
provision of production inputs and production services to farmers, 
ranchers, foresters, and farm operations. Inclusion of those income and 
benefits in this manner was first introduced for the purpose of 
determining a producer's ``average adjusted gross farm income'' by 
section 1604 of the Food Conservation and Energy Act of 2008 (Pub. L. 
110-234), amending section 1001D of the Farm Security and Rural 
Investment Act of 2002 (Pub. L. 107-171). This rule has continued to be 
used in other recent FSA and CCC programs that use determinations of a 
producer's average adjusted gross farm income for

[[Page 12703]]

payment eligibility or payment limitation purposes.
    As provided by the American Relief Act, 2025, the payment 
attribution provisions of 7 U.S.C. 1308(e) apply to ECAP. 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 \7\ as follows:
---------------------------------------------------------------------------

    \7\ 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 \8\;
---------------------------------------------------------------------------

    \8\ There will be a reduction applied for the ``first level or 
payment legal entity,'' 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. ECAP 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 ECAP 
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.
    Indian Tribes and Tribal organizations, as defined in section 4(b) 
of the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 5304), are not included in the definition of ``legal entity'' 
specified in 7 U.S.C. 1308; therefore, they will not be subject to 
payment limitation.

How To Apply

    FSA will generate pre-filled ECAP applications for producers based 
on their acreage of eligible commodities on FSA-578. Beginning in late-
March 2025, FSA will mail those pre-filled applications to producers 
who had reported their 2024 crop year acreage of eligible commodities 
by March 10, 2025. Producers with a level 2 eAuthentication account or 
a login.gov account may complete their application electronically by 
visiting https://www.fsa.usda.gov/ecap.
    Applicants must submit the FSA-63 ECAP, Emergency Commodity 
Assistance Program (ECAP) Application, electronically or to their local 
FSA county office \9\ by August 15, 2025. Applicants will submit one 
application that includes all eligible acreage in all counties 
nationwide.
---------------------------------------------------------------------------

    \9\ To locate the nearest FSA county office, visit the USDA 
Service Center locator at https://www.farmers.gov/working-with-us/service-center-locator.
---------------------------------------------------------------------------

    To apply for ECAP, an applicant must have also reported their 
planted and prevented planted acreage of eligible commodities to FSA on 
FSA-578 and filed a notice of loss for acres that were prevented from 
being planted on CCC-576, if applicable. FSA will not accept 
applications on which producers have manually entered acreage data 
except in situations where adjustment of eligible acres is required as 
explained in the Eligible Acreage section of this document.
    Producers who had not reported planted and prevented planted 
acreage on FSA-578 and filed a notice of loss for prevented planted 
acreage using CCC-576 by March 10, 2025, must submit those forms as 
described in the Eligible Acreage section of this document by August 
15, 2025. Once submitted, FSA will generate a pre-filled ECAP 
application for the producer to complete and sign.
    Applicants must also submit the following eligibility forms to FSA 
by August 17, 2026, if not already on file with FSA for the 2024 
program year:
     AD-2047, Customer Data Worksheet, for new applicants and 
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-943, 75% of Average Gross Income from Farming, 
Ranching, or Forestry Certification, for producers and members of legal 
entities who are requesting an increase to the payment limitation;
     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; and
     SF-3881, ACH Vendor/Miscellaneous Payment Enrollment 
Form.\10\
---------------------------------------------------------------------------

    \10\ Applicants who are unable to receive payment through direct 
deposit are still eligible to participate in ECAP. Those applicants 
should contact their local FSA county office for further 
information.
---------------------------------------------------------------------------

Other Provisions

    General requirements that apply to other FSA-administered commodity

[[Page 12704]]

programs also apply to ECAP. Producers that receive ECAP payments must 
be in compliance with the provisions of 7 CFR part 12, ``Highly 
Erodible Land and Wetland Conservation,'' for the 2024 crop year, and 
the provisions of 7 CFR 718.6, which address ineligibility for benefits 
for offenses involving controlled substances, for the 2024 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 ECAP 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 an ECAP 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 ECAP. Applicants who request to waive or modify ECAP 
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 ECAP 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 ECAP. 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 crops, eligible acreage, payment factors, payment 
limitations, and the payment calculation.
    Any payment under ECAP 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 ECAP payments.
    As required by the American Relief Act, 2025, the provisions 
regarding denial or program benefits in 7 U.S.C. 1308-2 apply to ECAP. 
FSA will administer these requirements according to the regulations at 
7 CFR 1400.5.
    In either applying for or participating in ECAP, 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 ECAP, 
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 ECAP but only as to beneficiaries who, as a condition of 
the waiver, agree to apply the ECAP payments to reduce the amount of 
the judgment lien.
    In addition to any other Federal laws that apply to ECAP, 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 is providing 
ECAP payments to eligible producers of eligible commodities for the 
2024 crop year. The ECAP payments will help producers of eligible 
commodities cope with losses from natural disasters and a difficult 
farm economy, and will help preserve family farms and ranches across 
the country while also continuing to ensure food and agricultural 
security for our nation.

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), and the FSA regulations for 
compliance with NEPA (7 CFR part 799).
    The purpose of ECAP is to provide assistance to eligible producers 
who suffered economic losses related to production of eligible 
commodities for the 2024 crop year. The Categorical Exclusions in 7 CFR 
799.31 apply, specifically 7 CFR 799.31(b)(6)(vi) (that is, safety net 
programs administered by FSA). 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.

Federal Assistance Programs

    The title and number of the Federal assistance programs, as found 
in the Assistance Listing,\11\ to which this document applies is 
10.121, Emergency Commodity Assistance Program (ECAP).
---------------------------------------------------------------------------

    \11\ 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, disability, age, marital 
status, family or parental status, income derived from a public 
assistance program, political beliefs, or reprisal or retaliation for 
prior

[[Page 12705]]

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 
mode)) 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: (1) mail to: U.S. Department of Agriculture, 
Office of the Assistant Secretary for Civil Rights, 1400 Independence 
Avenue SW, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3) 
email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

Kimberly Graham,
Acting Administrator, Farm Service Agency.
[FR Doc. 2025-04604 Filed 3-18-25; 8:45 am]
BILLING CODE 3410-E2-P


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