[Federal Register: February 20, 2003 (Volume 68, Number 34)]
[Notices]
[Page 8195-8196]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20fe03-13]
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Notices
Federal Register
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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 8195]]
DEPARTMENT OF AGRICULTURE
Commission on the Application of Payment Limitations for
Agriculture
Payment Limitations
AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.
ACTION: Notice and request for comments.
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SUMMARY: The Commission on the Application of Payment Limitations for
Agriculture (Commission) was mandated by section 1605 of the Farm
Security and Rural Investment Act of 2002 (the 2002 Act), Public Law
107-171. The Farm Service Agency (FSA) provides administrative and
financial support for the Commission, using Commodity Credit
Corporation (CCC) funds. The Commission will study the effects of
further limitations on the receipt of direct payments, counter-cyclical
payments, loan deficiency payments and marketing loan gains by
individuals and other entities. The study is to be transmitted to the
President, the Committee on Agriculture, Nutrition and Forestry of the
Senate, and the Committee on Agriculture of the House of
Representatives. The Commission is also authorized to make
recommendations it deems appropriate, which may include the feasibility
of improving the application and effectiveness of payment limitations.
The Commission held its first meeting on January 23 and 24, 2003,
in Washington, D.C. The Commission concluded that public input would be
helpful in conducting its assessments of payment limitations. This
notice provides the public the opportunity to comment on key issues
that the Commission expects to address in its study.
DATES: Comments must be received in writing by March 24, 2003.
ADDRESSES: Send comments in writing, by mail, to Payment Limit
Commission Comments, USDA/FSA/EPAS, Stop 0508, 1400 Independence Ave.,
SW, Washington, DC 20250-0508, or by email to
payment.limit.comm@wdc.usda.gov. This notice may also be accessed via
the Internet through the FSA homepage, at http://www.fsa.usda.gov. All
comments, including names and addresses when provided, are placed in
the record and are available for public inspection.
FOR FURTHER INFORMATION CONTACT: John Jinkins, USDA/FSA/EPAS, Stop
0508, 1400 Independence Ave., SW., Washington, DC 20250-0508;
telephone: (202) 720-2100; fax: (202) 690-2186; submit e-mail to:
John.Jinkins@usda.gov. Subject: Payment Limits.
SUPPLEMENTARY INFORMATION:
General Information about the Commission
The 2002 Act directed that the Commission consist of three members
appointed by the Secretary of Agriculture; three members appointed by
the Committee on Agriculture, Nutrition, and Forestry of the Senate;
three members appointed by the Committee on Agriculture of the House of
Representatives; and the USDA Chief Economist. The Secretary of
Agriculture designated the USDA Chief Economist to serve as Commission
Chairperson. The 2002 Act directs the Commission to conduct a study on
the effects of further payment limitations on the receipt of direct
payments, counter-cyclical payments and marketing loan gains and loan
deficiency payments. The study is to be transmitted to the President,
the Committee on Agriculture, Nutrition and Forestry of the Senate, and
the Committee on Agriculture of the House of Representatives. The
Commission is also authorized to make recommendations it deems
appropriate. The Commission is to report the results of its study by
May 13, 2003.
The Joint Explanatory Statement of the Committee of Conference for
the 2002 Act indicates that the Managers of the Conference intended for
the Commission to examine the feasibility of improving the application
and effectiveness of payment limitations, including the use of
commodity certificates and the unlimited forfeiture of loan collateral.
The 2002 Act also provides the Commission the authority to hold
hearings, take testimony and receive evidence it considers necessary to
conduct the study.
At its initial meeting in January 2003, the Commission concluded
that public hearings are not feasible given the time available to
complete its study. However, the Commission concluded that public
comments on the payment limitation issues to be addressed by the
Commission would be helpful. Consequently, the Commission decided to
seek written comments from the public.
Key Issues for Comment
The Commission is specifically interested in receiving public input
on the following:
1. The impacts of further payment limitations on the receipt of
direct payments, counter-cyclical payments, marketing loan gains and
loan deficiency payments on:
(a) Farm income;
(b) Land values;
(c) Rural communities;
(d) Agribusiness infrastructure;
(e) Planting decisions of producers affected; and
(f) Prices of all agricultural commodities, including fruits and
vegetables and other specialty crops.
Comments are encouraged on the impact of farm program payments on
the above and on the effects of further limitations on these issues.
The range of effects is likely to depend on what further limitations
are being evaluated. The phrase ``further limitations'' is not defined
in the 2002 Act. The Commission believes that further limitations would
be limitations that would result in total payments to producers being
less than the level that would prevail under the payment limitations of
the 2002 Act. Further limitations could be achieved a number of ways
including: (1) Reducing the current dollar limitations imposed on
specific types of payments, such as direct payments, that can be
received by a producer, (2) restricting the number or types of entities
eligible for payments, or (3) restricting or precluding payments based
on a variety of other criteria, such as income. Each of these
approaches may have different effects on producers and the agricultural
economy, even if the total dollar reduction in payments is equal. The
Commission welcomes comments on the effects of payments
[[Page 8196]]
and further payment limitations under alternative approaches. The
Commission requests that commentors identify the approaches they are
assessing along with analytical methods and data employed to reach
their conclusions.
2. The feasibility of improving the application and effectiveness
of payment limitations, including the use of commodity certificates and
the unlimited forfeiture of loan collateral. Payment limits currently
involve complex determinations by the Farm Service Agency on the
eligibility of persons for payments. Compliance with payment limitation
provisions may involve extensive documentation of business organization
and other information. It appears that the payment limit program
results in a range of costs on producers and the government. The
Commission seeks comments on the feasibility of improving the
administration of payment limitations and reducing these costs.
Questions have also been raised regarding the effectiveness of payment
limitations. One measure of effectiveness is the degree to which
payment limitations reduce payments that otherwise would be made. Some
estimates suggest the amount of payments not made to producers
participating in farm programs as a result of payment limitations is
relatively small compared with the level of payments that are made.
Other measures of effectiveness may be appropriate to assess, including
possible impacts on the structure and size of farms. The Commission
seeks comments on the effectiveness of payment limitations and the
feasibility of making payment limits more effective in cost-efficient
ways.
3. The expected response of farmers and ranchers if payment
limitations become more stringent. For example, would affected
producers increase or reduce farm size? Would producers shift
production to alternative commodities? Would producers change the legal
organization of their businesses? Some commentors may be able to poll
producers on how they might react to alternative approaches to
tightening payment limitations. If so, the Commission requests
information on the types and locations of farms surveyed.
4. Any other information relevant to the study objectives of the
Commission.
Regulatory Findings
This notice is being issued to obtain public comment regarding
issues associated with the study of the Commission on the Application
of Payment Limitations for Agriculture. There are no regulatory
findings associated with this notice.
Signed in Washington, DC, on February 13, 2003.
Keith Collins,
Chairman, Commission on the Application of Payment Limitations for
Agriculture.
[FR Doc. 03-4082 Filed 2-19-03; 8:45 am]
BILLING CODE 3510-05-U