[Federal Register: May 5, 2003 (Volume 68, Number 86)]
[Notices]
[Page 23688-23691]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05my03-48]
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Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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[[Page 23688]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Notice of Funds Availability--2002 Livestock Compensation Program
II
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: This notice announces the availability of Commodity Credit
Corporation (CCC) funds provided under the Agricultural Assistance Act
of 2003 to implement the 2002 Livestock Compensation Program II (LCP-
II). Livestock for which payments were made under the 2002 Livestock
Compensation Program I (LCP-I) will not be eligible to generate claims
under LCP-II. Other offsets can apply.
DATES: (1) The Farm Service Agency (FSA) will begin accepting
applications on April 1, 2003.
(2) The application deadline will be determined by the Deputy
Administrator for Farm Programs of FSA, (Deputy Administrator).
(3) Payments will be issued to applicants meeting all eligibility
requirements beginning May 1, 2003, or as determined by the Deputy
Administrator.
FOR FURTHER INFORMATION CONTACT: Lynn Tjeerdsma, Chief, Emergency
Preparedness and Programs Branch, USDA/FSA, 1400 Independence Ave. SW.,
STOP 0517, Washington, DC 20250-0522; telephone (202) 720-7641;
facsimile (202) 690-3610; electronic mail: Lynn_
Tjeerdsma@wdc.usda.gov. Persons with disabilities who require
alternative means for communication of regulatory information (braille,
large print, audiotape, etc.) should contact USDA's TARGET Center at
(202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which requires consultation with State and local officials.
Environmental Compliance
Due to the weather-related disasters or other emergency requiring
the Agency to provide immediate relief, sufficient time was not
available to complete an environmental review prior to implementing the
proposed action. Therefore, an environmental assessment is being
completed to consider the potential impacts of this proposed action on
the human environment in accordance with the provisions of the National
Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321, et seq., the
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508), and FSA's regulations for compliance with NEPA, 7 CFR part 799.
A copy of the draft environmental assessment will be made available for
public review and comment upon request.
Paperwork Reduction Act
Section 217 of the Agricultural Assistance Act of 2003 requires
that this program be promulgated and administered without regard to 44
U.S.C. 35, the Paperwork Reduction Act. This means that the information
to be collected from the public to implement this program and the
burden, in time and money, that the collection of the information would
have on the public do not have to be approved by the Office of
Management and Budget or be subject to the 60-day public comment period
required by 5 CFR 1320.8(d)(1).
Background
A Notice of Funds Availability was published in the Federal
Register on Thursday, October 10, 2002, (67 FR 63070) announcing the
availability of $752 million ($185 million was added at a later date,
bringing the total available to $937 million) under section 32 of the
Act of August 24, 1935 (section 32) to implement the 2002 Livestock
Compensation Program, or 2002 LCP-I. Livestock feed supplies and
grazing availability were significantly reduced due to weather-related
disasters or other emergency conditions that occurred throughout much
of the United States during 2001 and 2002. The 2002 LCP-I provided
immediate financial assistance to owners or cash lessees of eligible
beef, dairy, buffalo, beefalo, sheep and goats in certain States and
counties to offset losses due to drought. Funds were provided to
eligible applicants only in those counties declared under a Secretarial
disaster designation for drought made after January 1, 2001, or
submitted to the Secretary of Agriculture, by the Governor of a State
or a Tribal Leader of an Indian Reservation, no later than September
19, 2002, and subsequently approved.
Recently, in section 203 of the Agricultural Assistance Act of 2003
(2003 Act) Pub. L. 108-7, enacted on February 20, 2003, Congress
provided that the funds of the Commodity Credit Corporation should be
used to carry out what amounts to a supplement to LCP-1, not in the
sense of granting more payments to those who received payments before,
but by increasing the persons who are eligible to receive payments in
the program. That supplemental program is referred to in this notice as
the 2002 Livestock Compensation Program, the 2002 LCP-II or, simply,
LCP-II.
Eligibility criteria and application procedures for the new
recipients are set out below. FSA will determine the eligibility of
applicants and the amount of assistance that will be paid. It bears
repeating that livestock that generated payment under LCP-I cannot
generate claims under the expanded program. There is, still, another
limitation on these new payments. That is, a person's payment
eligibility under LCP-II, to the extent it is otherwise allowed by this
notice, will be reduced by the payments received by that person under
the 2002 Cattle Feed Program announced on September 3, 2002 (67 FR
56260) and vice versa. Also, payment received by a producer under LCP-
II and, as applicable, under the 2002 Cattle Feed Program as announced
on September 3, 2002 (67 FR 56260) will reduce the benefits available
for a person with respect to the separate but also new ``livestock
assistance program'' provided for in section 203(b) of the 2003 Act.
These offsets among programs are specifically provided for in section
203(c) of the 2003 Act.
As indicated, section 203(a) of the 2003 Act, basically, expands
the LCP-I program. It does this by providing for
[[Page 23689]]
using Commodity Credit Corporation funds to carry out the original
program for, to the extent not already covered, all applicants who
conducted a livestock operation that is physically located in any
county named as a primary disaster area (which includes areas named
under a Presidential disaster declaration, not just a Secretarial
disaster designation, as in LCP) for any qualifying natural disaster
(not just drought, as in LCP) in calendar years 2001 and 2002 or which
were submitted to the Secretary or President for that designation no
later than February 20, 2003, and were subsequently approved as primary
disaster counties. The statute adds that for all of these new claims,
however, payments can only be made to the extent that the claim meets
all other eligibility requirements established by the Secretary in the
original program (which had a different funding source).
Accordingly, most of the eligibility criteria will be the same for
LCP-II as for LCP-I, except those that expand the program as indicated
above. Those new terms include tying the claims back to livestock
operations as they existed, including the numbers of eligible livestock
to June 1, 2002.
Terms for LCP-II are set out in this notice, and for the sake of
completeness, the original program terms, to the extent that they carry
over, are repeated here. These include payment limitations and the
exclusion of claims for persons with gross revenue from all sources
over a certain level (subject to certain conditions relating to the
percentage of a person's revenue derived from farming and ranching). It
bears emphasis that livestock that generated payment under LCP-I cannot
be used to receive claims under LCP-II. As indicated and as in LCP-I,
the critical date of ownership is June 1, 2002. Payments will reflect
the number of eligible animals owned by the applicant as of that date.
Also, by reference to section 10806 of the Farm Security and Rural
Investment Act of 2002 (21 U.S.C. 321d), the statute added catfish
claims to those that can be paid under LCP. However, implementation of
the catfish provisions were modified in section 2103 of Public Law 108-
11, the Emergency Wartime Supplemental Appropriations Act, 2003 (117
Stat. 559). This section provides, in referring to catfish producers as
eligible applicants, that ``to provide assistance to eligible
applicants under paragraph (2)(B), the Secretary shall provide grants
to appropriate departments of agriculture (or other appropriate State
agencies) that agree to provide assistance to eligible applicants.''
This will require special provisions which are not yet ready.
Accordingly, the assistance to catfish producers required by the 2003
Act will not be administered under this notice.
Terms of the Program--The 2002 Livestock Compensation Program-II.
I. Definitions
The following definitions are applicable to this program, which
shall be referred to here as 2002 LCP-II:
Adult beef bulls means male bovine livestock, to be used for
breeding purposes, that were two years old on or before June 1, 2002.
Adult beef cows means female bovine livestock, used for the purpose
of providing meat for human consumption, that have delivered one or
more offspring, at any time before June 1, 2002.
Adult buffalo and beefalo bulls means male livestock of those
breeds, used for the purpose of providing meat for human consumption,
to be used for breeding purposes that were two years old on or before
June 1, 2002.
Adult buffalo and beefalo cows means female livestock of those
breeds, used for the purpose of providing meat for human consumption,
that have delivered one or more offspring, at any time before June 1,
2002.
Adult dairy bulls means male bovine livestock, to be used for
breeding dairy cows, that were two years old on or before June 1, 2002.
Adult dairy cows means female bovine livestock, used for the
purpose of providing milk for human consumption, that have delivered
one or more offspring, at any time before June 1, 2002.
Agency means the Farm Service Agency, its employees, and any
successor agency.
Applicant means the individual or business entity applying for
assistance.
Application means the Form CCC-370, Livestock Compensation Program
(LCP-II) Application. The CCC-370 is available at FSA county service
centers and on the Internet.
Beef bulls means male bovine livestock, used for the purpose of
providing meat for human consumption, that as of June 1, 2002, weighed
more than 500 pounds and were less than two years old.
Beef replacement heifers and non-breeding heifers means female
bovine livestock, used for the purpose of providing meat for human
consumption, that as of June 1, 2002, weighed more than 500 pounds and
had never delivered any offspring.
Beef steers means neutered male bovine livestock, used for the
purpose of providing meat for human consumption, that weighed more than
500 pounds on or before June 1, 2002.
Buffalo and beefalo bulls means male livestock of those breeds,
used for the purpose of providing meat for human consumption, that as
of June 1, 2002, that weighed more than 500 pounds and were less than
two years old.
Buffalo and beefalo replacement heifers and buffalo and beefalo
non-breeding heifers means female livestock of those breeds, used for
the purpose of providing meat for human consumption, that as of June 1,
2002, weighed more than 500 pounds and had never delivered any
offspring.
Buffalo and beefalo steers means neutered male livestock of those
breeds, used for the purpose of providing meat for human consumption,
that weighed more than 500 pounds on or before June 1, 2002.
Business entity means a corporation, partnership, joint operation,
trust, limited liability company, or cooperative.
Dairy bulls means male bovine livestock, of a breed used for the
purpose of providing milk for human consumption, that as of June 1,
2002, weighed more than 500 pounds and were less than two years old.
Dairy replacement heifers and dairy non-breeding heifers means
female bovine livestock, of a breed used for the purpose of providing
milk for human consumption, that as of June 1, 2002, weighed more than
500 pounds and had never delivered any offspring.
Dairy steers means neutered male bovine livestock, of a breed used
for the purpose of providing milk for human consumption, that weighed
more than 500 pounds on or before June 1, 2002.
Deputy Administrator or DAFP means the Deputy Administrator for
Farm Programs, Farm Service Agency (FSA), or a designee.
Disaster county means a county included in the geographic area
covered by a qualifying natural disaster declaration for calendar year
2001 or calendar year 2002 for which the request for such designation
was submitted during the period beginning January 1, 2001, and ending
February 20, 2003, and was subsequently approved. Contiguous counties
are not considered to be disaster counties unless they themselves
qualified on their own or a disaster county.
Eligible livestock means certain beef and dairy cattle, buffalo and
beefalo, sheep, and goats that an eligible producer owned, or cash-
leased for 90 or more days, and that were owned or subject to a cash
lease on June 1, 2002. Certain beef and dairy cattle, buffalo and
beefalo, sheep, and goats subject to
[[Page 23690]]
a contract for purchase by the applicant, that was negotiated prior to
June 1, 2002, are eligible livestock.
Eligible livestock producer means an owner or lessee of eligible
livestock whose livestock operation headquarters is physically located
in a disaster county, and who did not receive a payment for the
eligible livestock under the 2002 LCP-I program, that being the
original Livestock Compensation Program, announced in the Federal
Register October 10, 2002 (67 FR 63070).
Goat means a domesticated, bearded, horned, ruminant mammal of the
genus Capra, including Angora goats.
Ineligible livestock means any beef cattle, buffalo, beefalo, dairy
cattle, sheep, or goats that were considered eligible livestock and for
which payment was received under the 2002 LCP-I, or on June 1, 2002,
were not owned or subject to a cash lease or under contract to be
purchased by an applicant; and are any beef cattle, buffalo, and dairy
cattle that, as of June 1, 2002, weighed less than 500 pounds; and also
include livestock owned by an ineligible livestock producer.
Ineligible livestock producer, as determined by the Deputy
Administrator, means an entity or individual who received payment for
livestock under the 2002 LCP-1; who does not own eligible livestock;
who slaughters, processes, and packs livestock meat into meat and meat
products; and who is livestock owner that, for monetary reimbursement
or other gain, provides feed and facilities for livestock owned by
another person on a custom feeding basis; or is a livestock owner whose
livestock operation headquarters is not located in an disaster county.
Qualifying natural disaster means:
(1) A natural disaster declared by the Secretary under section
321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)); or
(2) A major disaster or emergency designated by the President under
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5121, et seq.).
Sheep means a domesticated, horned, ruminant mammal of the genus
Ovis, bred for wool, edible flesh, or skin.
II. Appeals
An applicant may request an appeal or review of an adverse decision
made by the Agency in accordance with 7 CFR parts 11 and 780.
III. Eligibility Requirements
Applicants must meet all of the following requirements to be
eligible for the 2002 LCP-II:
1. Timely application. The applicant must submit a signed form CCC-
370 completed to the best of the applicant's ability to FSA, no earlier
than April 1, 2003, and no later than such date as announced by the
Deputy Administrator.
2. Livestock owner or lessee. The applicant must own, be subject to
a contract to purchase, or cash-lease, eligible livestock.
3. Applicant's operation must be physically located in a disaster
county. The applicant's livestock operation headquarters must be
physically located in a disaster county on June 1, 2002.
IV. Gross Revenue Limitation
A person, as defined in 7 CFR part 1400, who has annual gross
revenue in excess of $2.5 million shall not be eligible to receive
assistance under the 2002 LCP-II. For the purpose of this
determination, annual gross revenue means:
(a) With respect to a person who receives more than 50 percent of
such person's gross income from farming and ranching, the total gross
revenue received from such operations; and
(b) With respect to a person who receives 50 percent or less of
such person's gross income from farming and ranching, the total gross
revenue of that person from all sources.
V. Payment Limitation
The total amount of benefits that a person, as determined in
accordance with 7 CFR part 1400, shall be entitled to receive under the
2002 LCP-II may not exceed $40,000.
VI. Amount of Assistance
The amount of assistance for 2002 LCP-II for the livestock covered
shall be at the same rates for the eligible livestock covered under the
2002 LCP, as they were published in the Federal Register October 10,
2002 and set out below.
VII. Applicant Certification of Eligible Livestock
Eligible livestock must be certified by owner or lessee on the CCC-
370. The applicant will report to FSA and provide proof of the number
of eligible livestock and, as applicable, that died or were sold after
June 1, 2002.
VIII. Payment Eligibility
To be eligible for payment under the 2002 LCP II, as determined by
the Deputy Administrator, the applicant must, as of June 1, 2002, be an
owner, lessee, or under contract to purchase eligible livestock, whose
livestock headquarters operation is physically located in a disaster
county; who has submitted and subsequently received FSA County
Committee approval on CCC-370, and who meets all other eligibility
requirements. Livestock are not eligible to generate a claim under LCP-
II to the extent they generated a claim under LCP-I. Further a producer
shall not be eligible to receive or retain a payment under this LCP-II
program to the extent that the producer has received payment under the
2002 Cattle Feed Program announced by the Secretary on September 3,
2002 (67 FR 56260), or the Livestock Assistance Program established
under section 203(b) of the Agricultural Assistance Act of 2003.
References in this paragraph to LCP-I are to the original Livestock
Compensation Program as announced by the Secretary on October 10, 2002
(67 FR 63070).
IX. Payment Amounts
Adult beef cows and bulls, and adult buffalo and beefalo cows and
bulls, as defined in Part I: $18.00 per head.
Adult dairy cows and bulls, as defined in Part I: $31.50 per head.
Beef, dairy, buffalo and beefalo replacement heifers, steers, non-
breeding heifers, and bulls, as defined in Part I: $13.50 per head.
All sheep and goats, as defined in Part I, born prior to June 1,
2002: $4.50 per head.
X. Contract Liability
All producers receiving a share of the LCP-II payment are jointly
and severally liable for program violations and resulting repayments,
if applicable.
XI. How the 2002 LCP-II Will Work
Applications will be accepted in FSA county offices beginning on
April 1, 2003. On the LCP-II application, all owners of livestock in
each livestock operation in a disaster county may apply for payment on
one application. Each applicant will provide FSA with, and certify to,
the applicant's name and identification number, address, and number and
type of eligible livestock. After FSA county committee approval of the
LCP-II application, payments will be issued, beginning May 1, 2003, or
as determined by the Deputy Administrator, from the FSA county office
to each approved livestock producer on the application.
[[Page 23691]]
XII. Misrepresentation, Scheme or Device
A person shall be ineligible to receive assistance under this
program, and be subject to such other remedies as may be allowed by
law, if, with respect to such program, it is determined by the FSA
State or county committee, or an official of FSA, that such person has:
(a) Adopted any scheme or other device that tends to defeat the
purpose of the program operated under this notice;
(b) Made any fraudulent representation with respect to this
program; or
(c) Misrepresented any fact affecting a program determination.
XIII. Liens and Claims of Creditors
Any benefit or portion thereof due any person under this program
shall be allowed without regard to questions of title under State law,
and without regard to any claim or lien in favor of any person, except
agencies of the U.S. Government.
XIV. Power of Attorney
In those instances in which, before the issuance of this notice, a
producer has signed a power of attorney on an approved FSA-211 for a
person or entity indicating that such power shall extend to all
programs listed on the form, without limitation, such power will be
considered to extend to this program unless by April 1, 2003, the
person granting the power notified the local FSA office for the control
county that the grantee of the power is not authorized to handle
transactions for this program for the grantor.
XV. Administration
Where circumstances preclude compliance due to circumstances beyond
the applicant's control, the county or State committee may request that
relief be granted by the Deputy Administrator under this notice. In
such cases, except for statutory deadlines and other statutory
requirements, the Deputy Administrator may, in order to more equitably
accomplish the goals of this notice, waive or modify deadlines and
other program requirements if the failure to meet such deadlines or
other requirements does not adversely affect operation of the program
and are not prohibited by statute. The 2003 Act funds allocated to CCC
to provide assistance under LCP-II have been estimated not to exceed
$350 million.
Signed at Washington, DC, on April 23, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-10995 Filed 4-30-03; 12:28 pm]
BILLING CODE 3410-05-P