[Federal Register: April 3, 2003 (Volume 68, Number 64)]
[Rules and Regulations]
[Page 16170-16185]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03ap03-2]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR 718 and 723
Commodity Credit Corporation
7 CFR 1412 and 1413
RIN 0560-AG79
Acreage Reporting and Common Provisions
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Final rule.
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SUMMARY: This rule implements provisions of the Farm Security and Rural
Investment Act of 2002 (the 2002 Act) by making changes to Agency
regulations that govern provisions common to multiple programs,
including acreage report requirements, farm constitution, and
monitoring compliance with those provisions. Other provisions of the
2002 Act will be implemented under separate rules. The intent of this
rule is to implement statutory requirements for reports of acreage and
conform the regulations with changes in other Agency programs.
EFFECTIVE DATE: March 31, 2003.
FOR FURTHER INFORMATION CONTACT: Dan McGlynn, Production, Emergencies
and Compliance Division, United States Department of Agriculture
(USDA), Stop 0517, 1400 Independence Ave. SW., Washington, DC 20250-
0517. Telephone: (202) 720-3463. Electronic mail: Dan_
McGlynn@wdc.usda.gov. Persons with disabilities who require alternative
means for communication (Braille, large print, audio tape, etc.) should
contact the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Notice and Comment
Section 1601(c) of the 2002 Act requires that the regulations
needed to implement Title I of the 2002 Act are to be promulgated
without regard to the notice and comment provisions of 5 U.S.C. 553 or
the Statement of Policy of the Secretary of Agriculture effective July
24, 1971, (36 FR 13804) relating to notices of proposed rulemaking and
public participation in rulemaking. These regulations are thus issued
as final.
Executive Order 12866
This final rule has been determined to be not significant under
Executive Order 12866 and has not been reviewed by the Office of
Management and Budget (OMB).
Federal Assistance Programs
This final rule has a potential impact on all programs listed in
the Catalog of Federal Domestic Assistance in the Agency program index
under the Department of Agriculture, Farm Service Agency.
Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
FSA and CCC are not required by 5 U.S.C. 553 or any law to publish a
notice of proposed rulemaking for this rule.
Environmental Assessment
The environmental impacts of this final rule have been considered
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. FSA has concluded
the rule is categorically excluded from further environmental review
and documentation as evidenced by the completion of an environmental
evaluation. No extraordinary circumstances or other unforeseeable
factors exist which would require preparation of an environmental
assessment or environmental impact statement. A copy of the
environmental evaluation is available for inspection and review upon
request.
Executive Order 12778
The final rule has been reviewed in accordance with Executive Order
12778. This rule preempts State laws that are inconsistent with it.
This rule is not retroactive. Before judicial action may be brought
concerning this rule, administrative remedies must be exhausted.
[[Page 16171]]
Executive Order 12372
The provisions of this rule are not subject to Executive Order
12372, which required intergovernmental consultation with State and
local officials. See the notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does
not apply to this rule because CCC and FSA are not required by 5 U.S.C.
553 or any other law to publish a notice of proposed rulemaking for
this rule. Further, this rule imposes no mandates, as defined in
sections 202 and 205 of UMRA, on State, local or tribal governments, or
the private sector.
Paperwork Reduction Act
Sections 1601(c) and 2702(b) of the 2002 Act provide that the
promulgation of regulations and the administration of Title I and II of
the 2002 Act shall be done without regard to chapter 35 of title 44 of
the United States Code (the Paperwork Reduction Act). Accordingly,
these regulations and the forms and other information collection
activities needed to administer the program authorized by these
regulations are not subject to review by the Office of Management and
Budget under the Paperwork Reduction Act.
Background
This rule amends CCC and FSA regulations that govern how marketing
quotas, allotments, and base acres are maintained, monitored, divided,
and reallocated. These regulations determine an agricultural producer's
ability to market certain crops and their eligibility to receive
marketing loans, support prices, and other CCC and FSA program
benefits.
The 2002 Act authorizes the establishment of base acres on a farm
and the issuance of direct payments and counter-cyclical payments for
covered commodities and peanuts. Requirements are provided that must be
met as a condition of receipt of these payments. Among other changes,
the 2002 Act also terminates marketing quota programs for peanuts.
Sections 1105(c) and 1305(c) of the 2002 Act require producers on a
farm to submit annual acreage reports with respect to all cropland on
the farm as a condition of the receipt of any direct payments, counter-
cyclical payments, marketing assistance loans and loan deficiency
payments. In the recent past, the reporting of only certain planted
acres by a farmer has been required for some FSA and CCC programs. In
addition, sections 1105(a)(2) and 1305(a)(2) authorize the Secretary to
issue such rules as the Secretary considers necessary to ensure
producer compliance with the following requirements: subtitles B and C
of title XII the Food Security Act of 1985; planting flexibility
requirements of sections 1106 and 1306; the requirement to use farmland
in a quantity equal to the attributable base acres for the farm for an
agricultural or conserving use; the requirement to control noxious
weeds and maintain the land using sound agricultural practices, if the
agricultural or conserving use involves the non-cultivation of any base
acres.
Under section 1101 of the 2002 Act, owners of a farm will be
provided a one-time opportunity to elect the method by which base acres
are to be calculated. This election applies to the farm, as it is
constituted for CCC program purposes. Many FSA farms are comprised of
land with divided ownership held by multiple owners. All owners of a
farm must agree to the method by which base acres on the farm are
calculated. Therefore, what constitutes a distinct farm operation for
these purposes (the constitution of a ``farm'') is vital to the ability
of CCC to implement the 2002 Act.
The regulations at 7 CFR part 718 are being amended in their
entirety to make the changes required by the 2002 Act, and to
incorporate the use of Geographic Information Systems. The changes made
in this rule are expected to improve overall program administration,
provide requirements and procedures for program participants, and allow
for increased program support from new technologies.
The amendments to part 718 do not impact farm program participation
or payment levels. Also, there are no expected impacts on acres
planted, prices, or program payments. Therefore, net farm income and
consumer costs will be unchanged and Federal outlays will remain within
parameters established in the 2002 Act.
Additions to the regulations have also been made to cover ownership
questions where current public records may be inadequate or where there
is some other dispute about ownership. The rule will allow
certifications to be used and allow claims to be barred where there is
such a certification and there has been a failure of other claimants to
act promptly or where the current public records are inadequate to
readily resolve ownership issues. Not allowing such certifications
would make it difficult for a number of small farms to receive prompt
payments due to changes in ownership over the years which may not be
reflected in the current public records and which may not be easily be
corrected. While the rule could result in a bar to some claims that
might otherwise be established, the rule in effect imposes a burden on
all owners to ensure that their interests in the property are made
known to FSA so that programs can be run in a timely manner and without
excessive research and effort with the many farms that have to be
serviced.
In addition, the rule provides for the Bureau of Indian Affairs of
the Department of Interior to make certain decisions on behalf of farms
entrusted to them or under their management. This follows current
practice. The rule also provides that in the event of the need to
collect a refund or claim in connection with these BIA-related farms,
the sum, among other remedies, may be collected by an offset against
the particular beneficiaries or by an offset against the farm itself.
This collection provision reflects that the FSA may not, on many
occasions, know who the beneficiaries of such farms are and that such
adjustment as may be needed among individual interested parties can
best be made by the BIA. This rule also makes a corrections to the hard
white wheat regulations of 7 CFR Part 1413 published on February 3,
2003, 68 FR 5205. Specifically the applicability section of that rule
is changed in this rule in keeping with the intent of that rulemaking
so as not to limit 1413 to only ``winter'' varieties of hard white
wheat. Further, a numbering correction is made to another section.
These changes are exempt from comment for the same reasons as exempted
the original rules from comment and because they are corrective in
nature.
List of Subjects
7 CFR Part 718
Acreage allotments, Agricultural commodities, Marketing quotas.
7 CFR Part 723
Acreage allotments, Agricultural commodities, Marketing quotas,
Price support programs, Tobacco.
7 CFR Part 1412
Agriculture, Feed Grains, Grains, Oilseeds, Price support programs.
7 CFR Part 1413
Agricultural commodities, Feed grains, Grains.
0
Accordingly, 7 CFR parts 718, 723, 1412 and 1413 are amended as set
forth below.
[[Page 16172]]
PART 718--PROVISIONS APPLICABLE TO MULTIPLE PROGRAMS
0
1. The authority for part 718 is revised to read as follows:
Authority: 7 U.S.C. 1311 et seq., 1501 et seq., 1921 et seq.,
7201 et seq., 15 U.S.C. 714b.
0
2. Subpart A is revised to read as follows:
Subpart A--General Provisions
Sec.
718.1 Applicability.
718.2 Definitions.
718.3 State committee responsibilities.
718.4 Authority for farm entry and providing information.
718.5 Rule of fractions.
718.6 Controlled substance.
718.7 Furnishing maps.
718.8 Administrative county.
718.9 Signature requirements.
718.10 Time limitations.
Sec. 718.1 Applicability.
(a) This part is applicable to all programs set forth in chapters
VII and XIV of this title which are administered by the Farm Service
Agency (FSA). This rule governs how FSA monitors marketing quotas,
allotments, base acres and acreage reports. The regulations affected
are those that establish procedures for measuring allotments and
program eligible acreage, and determining program compliance.
(b) The provisions of this part will be administered under the
general supervision of the Administrator, FSA, and shall be carried out
in the field by State and county FSA committees (State and county
committees).
(c) State and county committees, and representatives and employees
thereof, do not have authority to modify or waive any regulations in
this part.
(d) No provisions or delegation herein to a State or county
committee shall preclude the Administrator, FSA, or a designee, from
determining any question arising under the program or from reversing or
modifying any determination made by a State or county committee.
(e) The Deputy Administrator may authorize State and county
committees to waive or modify deadlines and other requirements in cases
where lateness or failure to meet such other requirements does not
adversely affect the operation of the program.
Sec. 718.2 Definitions.
Except as provided in individual parts of chapters VII and XIV of
this title, the following terms shall be as defined herein:
Administrative variance (AV) means the amount by which the
determined acreage of tobacco may exceed the effective allotment and be
considered in compliance with program regulations.
Allotment means an acreage for a commodity allocated to a farm in
accordance with the Agricultural Adjustment Act of 1938, as amended.
Allotment crop means any tobacco crop for which acreage allotments
are established pursuant to part 723 of this chapter.
Barley means barley that follows the standard planting and
harvesting practice of barley for the area in which the barley is
grown.
Base acres means the quantity of acres established according to
part 1413 of this title.
CCC means the Commodity Credit Corporation.
Combination means consolidation of two or more farms or parts of
farms, having the same operator, into one farm.
Common ownership unit means a distinguishable parcel of land
consisting of one or more tracts of land with the same owners, as
determined by FSA.
Constitution means the make-up of the farm before any change is
made because of change in ownership or operation.
Controlled substances means the term set forth in 21 CFR part 1308.
Corn means field corn or sterile high-sugar corn that follows the
standard planting and harvesting practices for corn for the area in
which the corn is grown. Popcorn, corn nuts, blue corn, sweet corn, and
corn varieties grown for decoration uses are not corn.
County means the county or parish of a state. For Alaska, Puerto
Rico and the Virgin Islands, a county shall be an area designated by
the State committee with the concurrence of the Deputy Administrator.
County committee means the FSA county committee.
Crop reporting date means the latest date the Administrator, FSA
will allow the farm operator, owner, or their agent to submit a crop
acreage report in order for the report to be considered timely.
Cropland. (a) Means land which the county committee determines
meets any of the following conditions:
(1) Is currently being tilled for the production of a crop for
harvest. Land which is seeded by drilling, broadcast or other no-till
planting practices shall be considered tilled for cropland definition
purposes;
(2) Is not currently tilled, but it can be established that such
land has been tilled in a prior year and is suitable for crop
production;
(3) Is currently devoted to a one-row or two-row shelter belt
planting, orchard, or vineyard;
(4) Is in terraces that, were cropped in the past, even though they
are no longer capable of being cropped;
(5) Is in sod waterways or filter strips planted to a perennial
cover;
(6) Is preserved as cropland in accordance with part 1410 of this
title; or
(7) Is land that has newly been broken out for purposes of being
planted to a crop that the producer intends to, and is capable of,
carrying through to harvest, using tillage and cultural practices that
are consistent with normal practices in the area; provided further
that, in the event that such practices are not utilized other than for
reasons beyond the producer's control, the cropland determination shall
be void retroactive to the time at which the land was broken out.
(b) Land classified as cropland shall be removed from such
classification upon a determination by the county committee that the
land is:
(1) No longer used for agricultural production;
(2) No longer suitable for production of crops;
(3) Subject to a restrictive easement or contract that prohibits
its use for the production of crops unless otherwise authorized by the
regulation of this chapter;
(4) No longer preserved as cropland in accordance with the
provisions of part 1410 of this title and does not meet the conditions
in paragraphs (a)(1) through (a)(6) of this definition; or
(5) Converted to ponds, tanks or trees other than those trees
planted in compliance with a Conservation Reserve Program contract
executed pursuant to part 1410 of this title, or trees that are used in
one-or two-row shelterbelt plantings, or are part of an orchard or
vineyard.
Current year means the year for which allotments, quotas, acreages,
and bases, or other program determinations are established for that
program. For controlled substance violations, the current year is the
year of the actual conviction.
Deputy Administrator means Deputy Administrator for Farm Programs,
Farm Service Agency, U.S. Department of Agriculture or their designee.
Determination means a decision issued by a State, county or area
FSA committee or its employees that affects a participant's status in a
program administered by FSA.
Determined acreage means that acreage established by a
representative of the Farm Service Agency by use of official acreage,
digitizing or planimetering areas on the photograph or other
photographic image, or
[[Page 16173]]
computations from scaled dimensions or ground measurements.
Direct and counter-cyclical program (DCP) cropland means land that
currently meets the definition of cropland, land that was devoted to
cropland at the time it was enrolled in a production flexibility
contract in accordance with part 1413 of this title and continues to be
used for agricultural purposes, or land that met the definition of
cropland on or after April, 4, 1996, and continues to be used for
agricultural purposes and not for nonagricultural commercial or
industrial use.
Division means the division of a farm into two or more farms or
parts of farms.
Entity means a corporation, joint stock company, association
limited partnership, irrevocable trust, estate, charitable
organization, or other similar organization including any such
organization participating in the farming operation 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.
Extra Long Staple (ELS) Cotton means cotton that 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;
and,
(2) The acreage is grown in a county designated as an ELS county by
the Secretary; and,
(3) The production from the acreage is ginned on a roller-type gin.
Family member means an individual to whom a person is related as
spouse, lineal ancestor, lineal descendant, or sibling, including:
(1) Great grandparent;
(2) Grandparent;
(3) Parent;
(4) Child, including a legally adopted child;
(5) Grandchild
(6) Great grandchildren;
(7) Sibling of the family member in the farming operation; and
(8) Spouse of a person listed in paragraphs (1) through (7) of this
definition.
Farm means a tract, or tracts, of land that are considered to be a
separate operation under the terms of this part provided further that
where multiple tracts are to be treated as one farm, the tracts must
have the same operator and must also have the same owner except that
tracts of land having different owners may be combined if all owners
agree to the treatment of the multiple tracts as one farm for these
purposes.
Farm inspection means an inspection by an authorized FSA
representative using aerial or ground compliance to determine the
extent of producer adherence to program requirements.
Farm number means a number assigned to a farm by the county
committee for the purpose of identification.
Farmland means the sum of the DCP cropland, forest, acreage planted
to an eligible crop acreage as specified in 1437.3 of this title and
other land on the farm.
Field means a part of a farm which is separated from the balance of
the farm by permanent boundaries such as fences, permanent waterways,
woodlands, and croplines in cases where farming practices make it
probable that such cropline is not subject to change, or other similar
features.
GIS means Geographic Information System or a system that stores,
analyzes, and manipulates spatial or geographically referenced data.
GIS computes distances and acres using stored data and calculations.
GPS means Global Positioning System or a positioning system using
satellites that continuously transmit coded information. The
information transmitted from the satellites is interpreted by GPS
receivers to precisely identify locations on earth by measuring
distance from the satellites.
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.
Ground measurement means the distance between 2 points on the
ground, obtained by actual use of a chain tape, GPS with an minimum
accuracy level as determined by the Deputy Administrator, or other
measuring device.
Joint operation means a general partnership, joint venture, or
other similar business organization.
Landlord means one who rents or leases farmland to another.
Measurement service means a measurement of acreage or farm-stored
commodities performed by a representative of FSA and paid for by the
producer requesting the measurement.
Measurement service after planting means determining a crop or
designated acreage after planting but before the farm operator files a
report of acreage for the crop.
Measurement service guarantee means a guarantee provided when a
producer requests and pays for an authorized FSA representative to
measure acreage for FSA and CCC program participation unless the
producer takes action to adjust the measured acreage. If the producer
has taken no such action, and the measured acreage is later discovered
to be incorrect, the acreage determined pursuant to the measurement
service will be used for program purposes for that program year.
Minor child means an individual who is under 18 years of age. State
court proceedings conferring majority on an individual under 18 years
of age will not change such an individual's status as a minor.
Nonagricultural commercial or industrial use means land that is no
longer suitable for producing annual or perennial crops, including
conserving uses, or forestry products.
Normal planting period means that period during which the crop is
normally planted in the county, or area within the county, with the
expectation of producing a normal crop.
Normal row width means the normal distance between rows of the crop
in the field, but not less than 30 inches for all crops.
Oats means oats that follows the standard planting and harvesting
practice of oats for the area in which the oats are grown.
Operator means an individual, entity, or joint operation who is
determined by the FSA county committee to be in control of the farming
operations on the farm.
Owner means one who has legal ownership of farmland, including:
(1) Any agency of the Federal Government, however, such agency
shall not be eligible to receive any payment pursuant to such contract;
(2) One who is buying farmland under a contract for deed;
(3) One who has a life-estate in the property; or
(4) For purposes of enrolling a farm in a program authorized by
chapters VII and XIV of this title:
(i) One who has purchased a farm in a foreclosure proceeding; and
(A) The redemption period has not passed; and
(B) The original owner has not redeemed the property.
(ii) One who meets the provisions of paragraph (d)(1)(i) of this
definition shall be entitled to receive benefits in accordance with an
agency program only to the extent the owner complies with all program
requirements.
[[Page 16174]]
(5) One who is an heir to property but cannot provide legal
documentation to confirm ownership of the property, if such heir
certifies to the ownership of the property and the certification is
considered acceptable, as determined by the Deputy Administrator. Upon
a false or inaccurate certification the Deputy Administrator may impose
liability on the certifying party for additional cost that results--
however such a certification may be taken by the Deputy Administrator
as a bar to other claims where there has been a failure of other
persons claiming an interest in the property to act promptly to protect
or declare their interest or where the current public records do not
accurately set out the current ownership of the farm.
Partial reconstitution means a reconstitution that is made
effective in the current year for some crops, but is not made effective
in the current year for other crops. This results in the same farm
having two or more farm numbers in one crop year.
Participant means one who participates in, or receives payments or
benefits in accordance with any of the programs administered by FSA.
Pasture means land that is used to, or has the potential to,
produce food for grazing animals.
Person means an individual, or an individual participating as a
member of a joint operation or similar operation, a corporation, joint
stock company, association, limited stock company, limited partnership,
irrevocable trust, revocable trust together with the grantor of the
trust, estate, or charitable organization including any entity
participating in the farming operation as a partner in a general
partnership, a participant in a joint venture, a grantor of a revocable
trust, or a participant in a similar entity, or a State, political
subdivision or agency thereof. To be considered a separate person for
the purpose of this part, the individual or other legal entity must:
(1) Have a separate and distinct interest in the land or the crop
involved;
(2) Exercise separate responsibility for such interest; and
(3) Be responsible for the cost of farming related to such interest
from a fund or account separate from that of any other individual or
entity.
Producer means an owner, operator, landlord, tenant, or
sharecropper, who shares in the risk of producing a crop and who is
entitled to share in the crop available for marketing from the farm, or
would have shared had the crop been produced. A producer includes a
grower of hybrid seed.
Quota means the pounds allocated to a farm for a commodity in
accordance with the Agricultural Adjustment Act of 1938, as amended.
Random inspection means an examination of a farm by an authorized
representative of FSA selected as a part of an impartial sample to
determine the adherence to program requirements.
Reconstitution means a change in the land constituting a farm as a
result of combination or division.
Reported acreage means the acreage reported by the farm operator,
farm owner, farm producer, or their agent on a Form prescribed by the
FSA.
Required inspection means an examination by an authorized
representative of FSA of a farm specifically selected by application of
prescribed rules to determine adherence to program requirements or to
verify the farm operator's, farm owner's, farm producer, or agent's
report.
Rice means rice excluding sweet, glutinous, or candy rice such as
Mochi Gomi.
Secretary means the Secretary of Agriculture of the United States,
or a designee.
Sharecropper means one who performs work in connection with the
production of a crop under the supervision of the operator and who
receives a share of such crop for its labor.
Skip-row or strip-crop planting means a cultural practice in which
strips or rows of the crop are alternated with strips of idle land or
another crop.
Staking and referencing means determining an acreage before
planting by:
(1) Measuring or computing a delineated area from ground
measurements and documenting the area measured; and, (2) Staking and
referencing the area on the ground.
Standard deduction means an acreage that is excluded from the gross
acreage in a field because such acreage is considered as being used for
farm equipment turn-areas. Such acreage is established by application
of a prescribed percentage of the area planted to the crop in lieu of
measuring the turn area.
State means each of the 50 States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands of the United
States, American Samoa, the Commonwealth of the Northern Mariana
Islands, or the Trust Territory of the Pacific Islands.
Subdivision means a part of a field that is separated from the
balance of the field by temporary boundary, such as a cropline which
could be easily moved or will likely disappear.
Tenant means:
(1) One who rents land from another in consideration of the payment
of a specified amount of cash or amount of a commodity; or
(2) One (other than a sharecropper) who rents land from another
person in consideration of the payment of a share of the crops or
proceeds therefrom.
Tolerance means a prescribed amount within which the reported
acreage and/or production may differ from the determined acreage and/or
production and still be considered as correctly reported.
Tract means a unit of contiguous land under one ownership, which is
operated as a farm, or part of a farm.
Tract combination means the combining of two or more tracts if the
tracts have common ownership and are contiguous.
Tract division means the dividing of a tract into two or more
tracts because of a change in ownership or operation.
Turn-area means the area across the ends of crop rows which is used
for operating equipment necessary to the production of a row crop (also
called turn row, headland, or end row).
Upland cotton means planted and stub cotton that is produced 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. For program purposes, brown lint cotton is
considered upland cotton.
Wheat means wheat for feed or dual purpose variety that follows the
standard planting and harvesting practice of wheat for the area in
which the wheat is grown.
Sec. 718.3 State committee responsibilities.
(a) The State committee shall, with respect to county committees:
(1) Take any action required of the county committee, which the
county committee fails to take in accordance with this part;
(2) Correct or require the county committee to correct any action
taken by such committee, which is not in accordance with this part;
(3) Require the county committee to withhold taking any action
which is not in accordance with this part;
(4) Review county office rates for producer services to determine
equity between counties;
(5) Determine, based on cost effectiveness, which counties will use
aerial compliance methods and which counties will use ground
measurement compliance methods; or
(6) Adjust the per acre rate for acreage in excess of 25 acres to
reflect the actual
[[Page 16175]]
cost involved when performing measurement service from aerial slides or
digital images.
(b) The State committee shall submit to the Deputy Administrator
requests to deviate from deductions prescribed in Sec. 718.108, or the
error amount or percentage for refunds of redetermination costs as
prescribed in Sec. 718.111.
Sec. 718.4 Authority for farm entry and providing information.
(a) This section applies to all farms that have a tobacco allotment
or quota under part 723 of this chapter and all farms that are
currently participating in programs administered by FSA.
(b) A representative of FSA may enter any farm that participates in
an FSA or CCC program in order to conduct a farm inspection as defined
in this part. A program participant may request that the FSA
representative present written authorization for the farm inspection
before granting access to the farm. If a farm inspection is not allowed
within 30 days of written authorization:
(1) All FSA and CCC program benefits for that farm shall be denied;
(2) The person preventing the farm inspection shall pay all costs
associated with the farm inspection;
(3) The entire crop production on the farm will be considered to be
in excess of the quota established for the farm; and
(4) For tobacco, the farm operator must furnish proof of
disposition of:
(i) All tobacco which is in addition to the production shown on the
marketing card issued with respect to such farm; and
(ii) No credit will be given for disposing of excess tobacco other
than that identified by a marketing card unless disposed of in the
presence of FSA in accordance with Sec. 718.109 of this part.
(c) If a program participant refuses to furnish reports or data
necessary to determine benefits in accordance with paragraph (a) of
this section, or FSA determines that the report or data was erroneously
provided through the lack of good faith, all program benefits relating
to the report or data requested will be denied.
Sec. 718.5 Rule of fractions.
(a) Fractions shall be rounded after completion of the entire
associated computation. All mathematical calculations shall be carried
to two decimal places beyond the number of decimal places required by
the regulations governing each program. In rounding, fractional digits
of 49 or less beyond the required number of decimal places shall be
dropped; if the fractional digits beyond the required number of decimal
places are 50 or more, the figure at the last required decimal place
shall be increased by ``1'' as follows:
------------------------------------------------------------------------
Required decimal Computation Result
------------------------------------------------------------------------
Whole numbers...................... 6.49 (or less)........ 6
6.50 (or more)........ 7
Tenths............................. 7.649 (or less)....... 7.6
7.650 (or more)....... 7.7
Hundredths......................... 8.8449 (or less)...... 8.84
8.8450 (or more)...... 8.85
Thousandths........................ 9.63449 (or less)..... 9.634
9.63450 (or more)..... 9.635
0 thousandths...................... 10.993149 (or less)... 10.9931
10.993150 (or more)... 10.9932
------------------------------------------------------------------------
(b) The acreage of each field or subdivision computed for tobacco
and CCC disaster assistance programs shall be recorded in acres and
hundredths of an acre, dropping all thousandths of an acre. The acreage
of each field or subdivision computed for crops, except tobacco, shall
be recorded in acres and tenths of an acre, rounding all hundredths of
an acre to the nearest tenth.
Sec. 718.6 Controlled substance.
(a) The following terms apply to this section:
(1) USDA benefit means the issuance of any grant, contract, loan,
or payment by appropriated funds of the United States.
(2) Person means an individual.
(b) Notwithstanding any other provision of law, any person
convicted under Federal or State law of:
(1) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance in any crop year shall be ineligible for
any payment made under any Act, with respect to any commodity produced
during the crop year of conviction and the four succeeding crop years,
by such person.
(2) Trafficking a controlled substance shall be, at the discretion
of the court, ineligible for any or all USDA benefits as follows:
(i) For up to 5 years after the first conviction;
(ii) For up to 10 years after a second conviction; and
(iii) Permanently for a third conviction.
(3) Possession of a controlled substance shall be ineligible for
any or all UDSA benefits for:
(i) Up to one year upon the first conviction;
(ii) For up to 5 years after a second or subsequent conviction for
such an offense as determined by the court.
(c) USDA benefits subject to paragraph (b) of this section include:
(1) Any payments or benefits under the Direct and Counter Cyclical
Program (DCP) in accordance with part 1413 of this title;
(2) Any payments or benefits for losses to trees, crops, or
livestock covered under disaster programs administered by FSA;
(3) Any price support loan available in accordance with part 1464
of this title;
(4) Any price support or payment made under the Commodity Credit
Corporation Charter Act;
(5) A farm storage facility loan made under section 4(h) of the
Commodity Credit Corporation Charter Act or any other Act;
(6) Crop Insurance under the Federal Crop Insurance Act;
(7) A loan made or guaranteed under the Consolidated Farm and Rural
Development Act or any other law formerly administered by the Farmers
Home Administration; or
(d) If a person denied benefits under this section is a
shareholder, beneficiary, or member of an entity or joint operation,
benefits for which the entity or joint operation is eligible shall be
reduced, for the appropriate period, by a percentage equal to the total
interest of the shareholder, beneficiary, or member.
Sec. 718.7 Furnishing maps.
A reasonable number, as determined by FSA, of reproductions of
photographs, mosaics and maps shall be available to the owner of a farm
insurance companies reinsured by the Federal Crop Insurance Corporation
(FCIC), private party contractors performing their official duties on
behalf of FSA, CCC, and other USDA agencies. To all others,
reproductions shall be made available at the rate FSA determines will
cover the cost of making such items available.
Sec. 718.8 Administrative county.
(a) If all land on the farm is physically located in one county,
the farm shall be administratively located in such county. If there is
no FSA office in the county or the county offices have been
consolidated, the farm shall be administratively located in the
contiguous county most convenient for the farm operator.
(b) If the land on the farm is located in more than one county, the
farm shall
[[Page 16176]]
be administratively located in either of such counties as the county
committees and the farm operator agree. If no agreement can be reached,
the farm shall be administratively located in the county where the
principal dwelling is situated, or where the major portion of the farm
is located if there is no dwelling.
(c) The State committee shall submit all requests to deviate from
regulations specified in this section to the Deputy Administrator.
Sec. 718.9 Signature requirements.
(a) When a program authorized by this chapter and parts 1410 and
1413 of this title requires the signature of a producer; landowner;
landlord; or tenant, a husband or wife may sign all such FSA or CCC
documents on behalf of the other spouse, unless such other spouse has
provided written notification to FSA and CCC that such action is not
authorized. The notification must be provided to FSA with respect to
each farm.
(b) Except a husband or wife may not sign a document on behalf of a
spouse with respect to:
(1) Program document required to be executed in accordance with
part 3 of this title;
(2) Easements entered into under part 1410 of this title;
(3) Power of attorney;
(4) Such other program documents as determined by FSA or CCC.
(c) An individual; duly authorized officer of a corporation; duly
authorized partner of a partnership; executor or administrator of an
estate; trustee of a trust; guardian; or conservator may delegate to
another the authority to act on their behalf with respect to FSA and
CCC programs administered by USDA service center agencies by execution
of a Power of Attorney, or such other form as approved by the Deputy
Administrator. FSA and CCC may, at their discretion, allow the
delegations of authority by other individuals through use of the Power
of Attorney or such other form as approved by the Deputy Administrator.
(d) Notwithstanding another provision of this regulation or any
other FSA or CCC regulation in this title, a parent may execute
documents on behalf of a minor child unless prohibited by a statute or
court order.
(e) Notwithstanding any other provision in this title, an
authorized agent of the Bureau of Indian Affairs (BIA) of the United
States Department of Interior may sign as agent for landowners with
properties affiliated with or under the management or trust of the BIA.
For collection purposes, such payments will be considered as being made
to the persons who are the beneficiaries of the payment or may,
alternatively, be considered as an obligation of all persons on the
farm in general. In the event of a need for a refund or other claim may
be collected, among other means, by other monies due such persons or
the farm.
Sec. 718.10 Time limitations.
Whenever the final date prescribed in any of the regulations in
this title for the performance of any act falls on a Saturday, Sunday,
national holiday, State holiday on which the office of the county or
State Farm Service Agency committee having primary cognizance of the
action required to be taken is closed, or any other day on which the
cognizant office is not open for the transaction of business during
normal working hours, the time for taking required action shall be
extended to the close of business on the next working day. Or in case
the action required to be taken may be performed by mailing, the action
shall be considered to be taken within the prescribed period if the
mailing is postmarked by midnight of such next working day. Where the
action required to be taken is with a prescribed number of days after
the mailing of notice, the day of mailing shall be excluded in
computing such period of time.
0
3. Subpart B is revised to read as follows:
Subpart B--Determination of Acreage and Compliance
Sec.
718.101 Measurements.
718.102 Acreage reports.
718.103 Late-filed reports.
718.104 Revised reports.
718.105 Tolerances, variances, and adjustments.
718.106 Inaccurate acreage reports.
718.107 Acreages.
718.108 Measuring acreage including skip row acreage
718.109 Deductions.
718.110 Adjustments.
718.111 Notice of measured acreage.
718.112 Redetermination.
Sec. 718.101 Measurements.
(a) Measurement services include, but are not limited to, measuring
land and crop areas, quantities of farm-stored commodities, and
appraising the yields of crops in the field when required for program
administration purposes. The county committee shall provide measurement
service if the producer requests such service and pays the cost, except
that service shall not be provided to determine total acreage or
production of a crop when the request is made:
(1) After the established final reporting date for the applicable
crop, unless a late filed report is accepted as provided in Sec.
718.103;
(2) After the farm operator has furnished production evidence when
required for program administration purposes except as provided in this
subpart; or
(3) In connection with a late-filed report of acreage, unless there
is evidence of the crop's existence in the field and use made of the
crop, or the lack of the crop due to a disaster condition affecting the
crop.
(b) The acreage requested to be measured by staking and referencing
shall not exceed the effective farm allotment for marketing quota crops
or acreage of a crop that is limited to a specific number of acres to
meet any program requirement.
(c) When a producer requests, pays for, and receives written notice
that measurement services have been furnished, the measured acreage
shall be guaranteed to be correct and used for all program purposes for
the current year even though an error is later discovered in the
measurement thereof, if the producer has taken action with an economic
significance based on the measurement service, and the entire crop
required for the farm was measured. If the producer has not taken
action with an economic significance based on the measurement service,
the producer shall be notified in writing that an error was discovered
and the nature and extent of such error. In such cases, the corrected
acreage will be used for determining program compliance for the current
year.
(d) When a measurement service reveals acreage in excess of the
permitted acreage and the allowable tolerance as defined in this part,
the producer must destroy the excess acreage and pay for FSA to verify
destruction, in order to keep the measurement service guarantee.
Sec. 718.102 Acreage reports.
(a) In order to be eligible for benefits, participants in the
programs specified in paragraphs (b)(1) through (b)(6) of this section
must annually submit accurate information as required by these
provisions.
(b)(1) Participants in the programs governed by part 1412 of this
title must report the acreage of fruits and vegetables planted for
harvest on a farm enrolled in such program;
(2) Participants in the programs governed by parts 1421 and 1427 of
this title must report the acreage planted to a commodity for harvest
for which a
[[Page 16177]]
marketing assistance loan or loan deficiency payment is requested;
(3) Participants in the programs governed by part 1410 of this
title must report the use of land enrolled in such programs;
(4) All participants in the programs governed by part 1437 of this
title must report all acreage in the county of the eligible crop in
which the producer has a share;
(5) Participants in the programs governed by part 723 of this
chapter and part 1464 of this title must report the acreage planted to
tobacco by kind on all farms that have an effective allotment or quota
greater than zero;
(6) All participants in the programs governed by parts 1412, 1421,
and 1427 of this title must report the use of all cropland on the farm.
(c) The reports required under paragraph (a) of this section shall
be timely filed by the farm operator, farm owner, producer of the crop
on the farm, or a duly authorized representative with the county
committee by the final reporting date applicable to the crop as
established by the county committee and State committee.
Sec. 718.103 Late-filed reports.
(a) A report may be accepted after the required date if the crop or
identifiable crop residue is in the field.
(b) The farm operator shall pay the cost of a farm inspection
unless the County Committee determines that failure to report in a
timely manner was beyond the producer's control.
Sec. 718.104 Revised reports.
(a) The farm operator may revise a report of acreage with respect
to 2002 and subsequent years to change the acreage reported if:
(1) The county committee determines that the revision does not have
an adverse impact on the program;
(2) The acreage has not already been determined by FSA; and
(3) Actual crop or residue is present in the field.
(b) Revised reports shall be filed and accepted:
(1) At any time for all crops if the crop or residue still exists
in the field for inspection to verify its existence and use made of the
crop, the lack of the crop, or a disaster condition affecting the crop;
and
(2) If the requirements of paragraph (a) of this section have been
met and the producer was in compliance with all other program
requirements at the reporting date.
Sec. 718.105 Tolerances, variances, and adjustments.
(a) Tolerance is the amount by which the determined acreage for a
crop may differ from the reported acreage or allotment for the crop and
still be considered in compliance with program requirements under
Sec. Sec. 718.102(b)(1), (b)(3) and (b)(5).
(b) Tolerance rules apply to those fields for which a staking and
referencing was performed but such acreage was not planted according to
those measurements or when a measurement service is not requested for
acreage destroyed to meet program requirements.
(c) Tolerance rules do not apply to:
(1) Program requirements of Sec. Sec. 718.102(b)(2), (b)(4) and
(b)(6);
(2) Official fields when the entire field is devoted to one crop;
(3) Those fields for which staking and referencing was performed
and such acreage was planted according to those measurements; or
(4) The adjusted acreage for farms using measurement after planting
which have a determined acreage greater than the marketing quota crop
allotment.
(d) An administrative variance is applicable to all allotment crop
acreages. Allotment crop acreages as determined in accordance with this
part shall be deemed in compliance with the effective farm allotment or
program requirement when the determined acreage does not exceed the
effective farm allotment by more than an administrative variance
determined as follows:
(1) For all kinds of tobacco subject to marketing quotas, except
dark air-cured and fire-cured the larger of 0.1 acre or 2 percent of
the allotment; and
(2) For dark air-cured and fire-cured tobacco, an acreage based on
the effective acreage allotment as provided in the table as follows:
------------------------------------------------------------------------
Administrative
Effective acreage allotment is within this range variance
------------------------------------------------------------------------
0.01 to 0.99......................................... 0.01
1.00 to 1.49......................................... 0.02
1.50 to 1.99......................................... 0.03
2.00 to 2.49......................................... 0.04
2.50 to 2.99......................................... 0.05
3.00 to 3.49......................................... 0.06
3.50 to 3.99......................................... 0.07
4.00 to 4.49......................................... 0.08
4.50 and up.......................................... 0.09
------------------------------------------------------------------------
(e) A tolerance applies to tobacco, other than flue-cured or
burley, if the measured acreage exceeds the allotment by more than the
administrative variance but by not more than the tolerance. Such excess
acreage of tobacco may be adjusted to the effective farm acreage
allotment to avoid marketing quota penalties or receive price support.
(f) If the acreage report for a crop is outside the tolerance for
that crop:
(1) FSA may consider the requirements of Sec. Sec. 718.102 (b)(1),
(b)(3) and (b)(5) not to have been met, and;
(2) Participants may be ineligible for all or a portion of payments
or benefits subject to the requirements of Sec. Sec. 718.102 (b)(1),
(b)(3) and (b)(5).
Sec. 718.106 Non-compliance and fraudulent acreage reports.
Participants that knowingly and willfully provide false or
inaccurate acreage reports may be ineligible for some or all payments
or benefits subject to the requirements of Sec. Sec. 718.102 (b)(1),
(b)(3) and (b)(5):
(a) The county committee determines that the acreage report filed
according to Sec. Sec. 718.102 (b)(1), (b)(3) and (b)(5) is
inaccurate, and;
(b) A good-faith effort to accurately report the acreage was not
made because the report was knowingly and willfully falsified.
Sec. 718.107 Acreages.
(a) If an acreage has been established by FSA for an area
delineated on an aerial photograph or within a GIS, such acreage will
be recognized by the county committee as the acreage for the area until
such time as the boundaries of such area are changed. When boundaries
not visible on the aerial photograph are established from data
furnished by the producer, such acreage shall not be recognized as
official acreage until an authorized representative of FSA verifies the
boundaries.
(b) Measurements of any row crop shall extend beyond the planted
area by the larger of 15 inches or one-half the distance between the
rows.
(c) The entire acreage of a field or subdivision of a field devoted
to a crop shall be considered as devoted to the crop subject to a
deduction or adjustment except as otherwise provided in this part.
Sec. 718.108 Measuring acreage including skip row acreage.
(a) When one crop is alternating with another crop, whether or not
both crops have the same growing season, only the acreage that is
actually planted to the crop being measured will be considered to be
acreage devoted to the measured crop.
(b) Subject to the provisions of this paragraph and section,
whether planted in a skip row pattern or without a pattern of skipped
rows, the entire
[[Page 16178]]
acreage of the field or subdivision may be considered as devoted to the
crop only where the distance between the rows, for all rows, is 40
inches or less. If there is a skip that creates idle land wider than 40
inches, or if the distance between any rows is more than 40 inches,
then the area planted to the crop shall be considered to be that area
which would represent the smaller of; a 40 inch width between rows, or
the normal row spacing in the field for all other rows in the field--
those that are not more than 40 inches apart. The allowance for
individual rows would be made based on the smaller of actual spacing
between those rows or the normal spacing in the field. For example, if
the crop is planted in single, wide rows that are 48 inches apart, only
20 inches to either side of each row (for a total of 40 inches between
the two rows) could, at a maximum, be considered as devoted as the crop
and normal spacing in the field would control. Half the normal distance
between rows will also be allowed beyond the outside planted rows not
to exceed 20 inches and will reflect normal spacing in the field.
(c) In making calculations under this section, further reductions
may be made in the acreage considered planted if it is determined that
the acreage is more sparsely planted than normal using reasonable and
customary full production planting techniques.
(d) The Deputy Administrator has the discretionary authority to
allow row allowances other than those specified in this section in
those instances in which crops are normally planted with spacings
greater or less than 40 inches, such as in case of tobacco, or where
other circumstances are present which the Deputy Administrator finds
justifies that allowance.
(e) Paragraphs (a) through (d) of this section shall apply with
respect to the 2003 and subsequent crops. For preceding crops, the
rules in effect on January 1, 2002, shall apply.
Sec. 718.109 Deductions.
(a) Any contiguous area which is not devoted to the crop being
measured and which is not part of a skip-row pattern under Sec.
718.108 shall be deducted from the acreage of the crop if such area
meets the following minimum national standards or requirements:
(1) A minimum width of 30 inches;
(2) For tobacco--three-hundredths (.03) acre. Turn areas, terraces,
permanent irrigation and drainage ditches, sod waterways, non-cropland,
and subdivision boundaries each of which is at least 30 inches in width
may be combined to meet the 0.03-acre minimum requirement; or
(3) For all other crops and land uses--one-tenth (.10) acre. Turn
areas, terraces, permanent irrigation and drainage ditches, sod
waterways, non-cropland, and subdivision boundaries each of which is at
least 30 inches in width and each of which contain 0.1 acre or more may
be combined to meet any larger minimum prescribed for a State in
accordance with this subpart.
(b) If the area not devoted to the crop is located within the
planted area, the part of any perimeter area that is more than 217.8
feet (33 links) in width will be considered to be an internal deduction
if the standard deduction is used.
(c) A standard deduction of 3 percent of the area devoted to a row
crop and zero percent of the area devoted to a close-sown crop may be
used in lieu of measuring the acreage of turn areas.
Sec. 718.110 Adjustments.
(a) The farm operator or other interested producer having excess
tobacco acreage (other than flue-cured or burley) may adjust an acreage
of the crop in order to avoid a marketing quota penalty if such person:
(1) Notifies the county committee of such election within 15
calendar days after the date of mailing of notice of excess acreage by
the county committee; and
(2) Pays the cost of a farm inspection to determine the adjusted
acreage prior to the date the farm visit is made.
(b) The farm operator may adjust an acreage of tobacco (except
flue-cured and burley) by disposing of such excess tobacco prior to the
marketing of any of the same kind of tobacco from the farm. The
disposition shall be witnessed by a representative of FSA and may take
place before, during, or after the harvesting of the same kind of
tobacco grown on the farm. However, no credit will be allowed toward
the disposition of excess acreage after the tobacco is harvested but
prior to marketing, unless the county committee determines that such
tobacco is representative of the entire crop from the farm of the kind
of tobacco involved.
Sec. 718.111 Notice of measured acreage.
Notice of measured acreage shall be provided by FSA and mailed to
the farm operator. This notice shall constitute notice to all parties
who have ownership, leasehold interest, or other, in such farm.
Sec. 718.112 Redetermination.
(a) A redetermination of crop acreage, appraised yield, or farm-
stored production for a farm may be initiated by the county committee,
State committee, or Deputy Administrator at any time. Redetermination
may be requested by a producer with an interest in the farm if they pay
the cost of the redetermination. The request must be submitted to FSA
within 15 calendar days after the date of the notice described in
Sec. Sec. 718.110 or 718.111, or within 5 calendar days after the
initial appraisal of the yield of a crop, or before the farm-stored
production is removed from storage. A redetermination shall be
undertaken in the manner prescribed by the Deputy Administrator. A
redetermination shall be used in lieu of any prior determination.
(b) The county committee shall refund the payment of the cost for a
redetermination when, because of an error in the initial determination:
(1) The appraised yield is changed by at least the larger of:
(i) Five percent or 5 pounds for cotton;
(ii) Five percent or 1 bushel for wheat, barley, oats, and rye; or
(iii) Five percent or 2 bushels for corn and grain sorghum; or
(2) The farm stored production is changed by at least the smaller
of 3 percent or 600 bushels; or
(3) The acreage of the crop is:
(i) Changed by at least the larger of 3 percent or 0.5 acre; or
(ii) Considered to be within program requirements.
0
4. Subpart C is revised to read as follows:
Subpart C--Reconstitution of Farms, Allotments, Quotas, and Bases
Sec.
718.201 Farm constitution.
718.202 Determining the land constituting a farm.
718.203 County committee action to reconstitute a farm.
718.204 Reconstitution of allotments, quotas, and bases.
718.205 Substantive change in farming operation, and changes in
related legal entities.
718.206 Determining farms, tracts, allotments, quotas, and bases
when reconstitution is made by division.
718.207 Determining allotments, quotas, and bases when
reconstitution is made by combination.
Sec. 718.201 Farm constitution.
(a) In order to implement agency programs and monitor farmer
compliance with regulations, the agency must have records on what land
is being farmed by a particular producer. This is accomplished by a
determination of what land or groups of land `constitute' an individual
unit or farm. Land, which
[[Page 16179]]
has been properly constituted under prior regulations, shall remain so
constituted until a reconstitution is required under paragraph (c) of
this section. The constitution and identification of land as a farm for
the first time and the subsequent reconstitution of a farm made
hereafter, shall include all land operated by an individual entity or
joint operation as a single farming unit except that it shall not
include:
(1) Land under separate ownership unless the owners agree in
writing and the labor, equipment, accounting system, and management are
operated in common by the operator but separate from other tracts;
(2) Land under a lease agreement of less than 1 year duration;
(3) Land in different counties when the tobacco allotments or
quotas established for the land involved cannot be transferred from one
county to another county by lease, sale, or owner. However, this
paragraph shall not apply if:
(i) All of the land is contiguous;
(ii) The land is located in counties that are contiguous in the
same State if:
(A) A burley or flue-cured tobacco quota is established for one or
more of the tracts; and
(B) The county committee determines that the tracts will be
operated as a single farming unit as set forth in Sec. 718.202; or
(iii) Because of a change in operation, tracts or parts of tracts
will be divided from the parent farm that currently has land in more
than one county, and there is no change in operation and ownership of
the remainder of the farm, or if there is a change in ownership, the
new owner agrees in writing to the constitution of the farm.
(4) Federally-owned land;
(5) State-owned wildlife lands unless the former owner has
possession of the land under a leasing agreement; and
(6) Land constituting a farm which is declared ineligible to be
enrolled in a program under the regulations governing the program; and
(7) For acreage base crops, land located in counties that are not
contiguous. However, this paragraph shall not apply if:
(i) Counties are divided by a river;
(ii) Counties do not touch because of a correction line adjustment;
or
(iii) The land is within 20 miles, by road, of other land that will
be a part of the farming unit.
(b)(1) If all land on the farm is physically located in one county,
the farm shall be administratively located in such county. If there is
no FSA office in the county or the county offices have been
consolidated, the farm shall be administratively located in the
contiguous county most convenient for the farm operator.
(2) If the land on the farm is located in more than one county, the
farm shall be administratively located in either of such counties as
the county committees and the farm operator agree. If no agreement can
be reached, the farm shall be administratively located in the county
where the principal dwelling is situated, or where the major portion of
the farm is located if there is no dwelling.
(c) A reconstitution of a farm either by division or by combination
shall be required whenever:
(1) A change has occurred in the operation of the land after the
last constitution or reconstitution and as a result of such change the
farm does not meet the conditions for constitution of a farm as set
forth in paragraph (a) of this section except that no reconstitution
shall be made if the county committee determines that the primary
purpose of the change in operation is to establish eligibility to
transfer allotments subject to sale or lease, or increase amount of
program benefits received;
(2) The farm was not properly constituted the previous time;
(3) An owner requests in writing that the land no longer be
included in a farm composed of tracts under separate ownership;
(4) The county committee determines that the farm was reconstituted
on the basis of false information;
(5) The county committee determines that tracts included in a farm
are not being operated as a single farming unit.
(d) Reconstitution shall not be approved if the county committee
determines that the primary purpose of the reconstitution is to:
(1) Circumvent the provisions of part 12 of this title; or
(2) Circumvent any other chapter of this title.
Sec. 718.202 Determining the land constituting a farm.
(a) In determining the constitution of a farm, consideration shall
be given to provisions such as ownership and operation. For purposes of
this part, the following rules shall be applicable to determining what
land is to be included in a farm.
(b) A minor shall be considered to be the same owner or operator as
the parent, court-appointed guardian, or other person responsible for
the minor child, unless the parent or guardian has no interest in the
minor's farm or production from the farm, and the minor:
(1) Is a producer on a farm;
(2) Maintains a separate household from the parent or guardian;
(3) Personally carries out the farming activities; and
(4) Maintains a separate accounting for the farming operation.
(c) A minor shall not be considered to be the same owner or
operator as the parent or court-appointed guardian if the minor's
interest in the farming operation results from being the beneficiary of
an irrevocable trust and ownership of the property is vested in the
trust or the minor.
(d) A life estate tenant shall be considered to be the owner of the
property for their life.
(e) A trust shall be considered to be an owner with the beneficiary
of the trust; except a trust can be considered a separate owner or
operator from the beneficiary, if the trust:
(1) Has a separate and distinct interest in the land or crop
involved;
(2) Exercises separate responsibility for the separate and distinct
interest; and
(3) Maintains funds and accounts separate from that of any other
individual or entity for the interest.
(f) The county committee shall require specific proof of ownership.
(g) Land owned by different persons of an immediate family living
in the same household and operated as a single farming unit shall be
considered as being under the same ownership in determining a farm.
(h) All land operated as a single unit and owned and operated by a
parent corporation and subsidiary corporations of which the parent
corporation owns more than 50 percent of the value of the outstanding
stock, or where the parent is owned and operated by subsidiary
corporations, shall be constituted as one farm.
Sec. 718.203 County committee action to reconstitute a farm.
Action to reconstitute a farm may be initiated by the county
committee, the farm owner, or the operator with the concurrence of the
owner of the farm. Any request for a farm reconstitution shall be filed
with the county committee.
Sec. 718.204 Reconstitution of allotments, quotas, and bases.
(a) Farms shall be reconstituted in accordance with this subpart
when it is determined that the land areas are not properly constituted
and, to the extent practicable, shall be based on the facts and
conditions existing at the time the change requiring the reconstitution
occurred.
[[Page 16180]]
(b) Reconstitutions of farms subject to a direct and counter-
cyclical program contract in accordance with part 1413 of this title
will be effective for the current year if initiated on or before August
1 or prior to the issuance of DCP payments for the farm or farms being
reconstituted.
(c) For tobacco farms, a reconstitution will be effective for the
current year for each crop for which the reconstitution is initiated
before the planting of such crop begins or would have begun.
(d) Notwithstanding the provisions of paragraph (c) of this
section, a reconstitution may be effective for the current year if the
county committee determines, and the State committee concurs, that the
purpose of the request for reconstitution is not to perpetrate a scheme
or device designed to evade the requirements governing programs found
in this title.
Sec. 718.205 Substantive change in farming operation, and changes in
related legal entities.
(a) Land that is properly constituted as a farm shall not be
reconstituted if:
(1) The reconstitution request is based upon the formation of a
newly established legal entity which owns or operates the farm or any
part of the farm and the county committee determines there is not a
substantive change in the farming operation;
(2) The county committee determines that the primary purpose of the
request for reconstitution is to:
(i) Obtain additional benefits under one or more commodity
programs;
(ii) Avoid damages or penalties under a contract or statute;
(iii) Correct an erroneous acreage report; or
(iv) Circumvent any other program provisions. In addition, no farm
shall remain as constituted when the county committee determines that a
substantive change in the farming operation has occurred which would
require a reconstitution, except as otherwise approved by the State
committee with the concurrence of the Deputy Administrator.
(b) In determining whether a substantive change has occurred with
respect to a farming operation, the county committee shall consider
factors such as the composition of the legal entities having an
interest in the farming operation with respect to management,
financing, and accounting. The county committee shall also consider the
use of land, labor, and equipment available to the farming operations
and any other relevant factors that bear on the determination.
(c) Unless otherwise approved by the State committee with the
concurrence of the Deputy Administrator, when the county committee
determines that a corporation, trust, or other legal entity is formed
primarily for the purpose of obtaining additional benefits under the
commodity programs of this title, the farm shall remain as constituted,
or shall be reconstituted, as applicable, when the farm is owned or
operated by:
(1) A corporation having more than 50 percent of the stock owned by
members of the same family living in the same household;
(2) Corporations having more than 50 percent of the stock owned by
stockholders common to more than one corporation; or
(3) Trusts in which the beneficiaries and trustees are family
members living in the same household.
(d) Application of the provisions of paragraph (c) of this section
shall not limit or affect the application of paragraphs (a) and (b) of
this section.
Sec. 718.206 Determining farms, tracts, allotments, quotas, and bases
when reconstitution is made by division.
(a) The methods for dividing farms, tracts, allotments, quotas, and
bases in order of precedence, when applicable, are estate, designation
by landowner, contribution, cropland, DCP cropland, default, and
history. The proper method shall be determined on a crop by crop basis.
(b)(1) The estate method is the pro-rata distribution of
allotments, quotas, and bases for a parent farm among the heirs in
settling an estate. If the estate sells a tract of land before the farm
is divided among the heirs, the allotments, quotas, and bases for that
tract shall be determined according to paragraphs (c) through (h) of
this section.
(2) Allotments, quotas, and bases shall be divided in accordance
with a will, but only if the county committee determines that the terms
of the will are such that a division can reasonably be made by the
estate method.
(3) If there is no will or the county committee determines that the
terms of a will are not clear as to the division of allotments, quotas,
and bases, such allotments, quotas, and bases shall be apportioned in
the manner agreed to in writing by all interested heirs or devisees who
acquire an interest in the property for which such allotments, quotas,
and bases have been established. An agreement by the administrator or
executor shall not be accepted in lieu of an agreement by the heirs or
devisees.
(4) If allotments, quotas, and bases are not apportioned in
accordance with the provisions of paragraphs (b)(2) or (b)(3) of this
section, the allotments, quotas, and bases shall be divided pursuant to
paragraphs (d) through (h) of this section, as applicable.
(c)(1) If the ownership of a tract of land is transferred from a
parent farm, the transferring owner may request that the county
committee divide the allotments, quotas, and bases, including
historical acreage that has been double cropped, between the parent
farm and the transferred tract, or between the various tracts if the
entire farm is sold to two or more purchasers, in a manner designated
by the owner of the parent farm subject to the conditions set forth in
paragraph (c)(3) of this section.
(2) If the county committee determines that allotments, quotas, and
bases cannot be divided in the manner designated by the owner because
of the conditions set forth in paragraph (c)(3) of this section, the
owner shall be notified and permitted to revise the designation so as
to meet the conditions in paragraph (c)(3) of this section. If the
owner does not furnish a revised designation of allotments, quotas, and
bases within a reasonable time after such notification, or if the
revised designation does not meet the conditions of paragraph (c)(3) of
this section, the county committee will divide the allotments, quotas,
and bases in a pro-rata manner in accordance with paragraphs (d)
through (h) of this section.
(3) A landowner may designate a manner in which allotments, quotas,
and bases are divided according to this paragraph.
(i) The transferring owner and transferee shall file a signed
written memorandum of understanding of the designation with the county
committee before any CCC or FSA prescribed form, letter or contract
providing an allotment, base or quota is issued and before a subsequent
transfer of ownership of the land. The landowner shall designate the
allotments, quotas, and bases that shall be permanently reduced when
the sum of the allotments, quotas, and bases exceeds the cropland for
the farm.
(ii) Where the part of the farm from which the ownership is being
transferred was owned for a period of less than 3 years, the
designation by landowner method shall not be available with respect to
the transfer unless the county committee determines that the primary
purpose of the ownership transfer was other than to retain or to sell
allotments, quotas, or bases. In the absence of such a determination,
and if the farm contains land which has been owned for less than 3
years, that part of the farm which has been owned for less than 3 years
shall be considered as a separate farm
[[Page 16181]]
and the allotments, quotas, or bases, shall be assigned to that part in
accordance with paragraphs (d) through (h) of this section. Such
apportionment shall be made prior to any designation of allotments,
quotas, and bases with respect to the part that has been owned for 3
years or more.
(4) The designation by landowner method is not applicable to crop
allotments or quotas which are restricted to transfer within the county
by lease, sale, or by owner, when the land on which the farm is located
is in two or more counties.
(5) The designation by landowner method may be applied at the
owner's request to land owned by any Indian Tribal Council which is
leased to two or more producers for the production of any crop of a
commodity for which an allotment, quota, or base has been established.
If the land is leased to two or more producers, an Indian Tribal
Council may request that the county committee divide the allotments,
quotas, and bases between the applicable tracts in the manner
designated by the Council. The use of this method shall not be subject
to the conditions of paragraph (c)(3) of this section.
(d)(1) The contribution method is the pro-rata distribution of a
parent farm's allotments and quotas to each tract as the tract
contributed to the allotments and quotas at the time of combination and
may be used when the provisions of paragraphs (b) and (c) of this
section do not apply.
(2) The county committee determines and the State committee or a
representative thereof concurs, that the use of the contribution method
would not result in an equitable distribution of allotments and quotas,
considering available land, cultural operations, and changes in type of
farming.
(e) The cropland method is the pro-rata distribution of allotments
and quotas to separate tracts proportionately to the tract's
contribution to the cropland for the parent tract. This method shall be
used if paragraphs (b) through (d) of this section do not apply unless
the county committee determines that division by the history method
would result in more representative allotments and quotas than the
cropland method, taking into consideration the operation normally
carried out on each tract for the commodities produced on the farm.
(f)(1) The history method is the pro-rata distribution of
allotments and quotas to separate tracts on the basis of the operation
normally carried out on each tract of the parent farm. The county
committee may use the history method of dividing allotments and quotas
when it:
(i) Determines that this method would result in a more accurate
pro-rata distribution of allotments and quotas based on actual
contribution of the tract to the totals of the parent farm than the
cropland method would; and
(ii) Obtains written consent of all owners to use the history
method.
(2) The county committee may waive the requirement for written
consent of the owners for dividing allotments and quotas if the county
committee determines that the use of the cropland method would result
in an inequitable division of the parent farm's allotments and quotas
and the use of the history method would provide more favorable results
for all owners.
(g) The DCP cropland method is the pro-rata distribution of bases
to the resulting tracts in the same proportion to the DCP cropland that
each resulting tract bears to the DCP cropland for the parent tract.
This method of division shall be used if paragraphs (b) and (c) of this
section do not apply.
(h) The default method is the separation of tracts from a farm with
each tract maintaining the bases attributed to the tract when the
reconstitution is initiated. (i)(1) Allotments, quotas, and bases
apportioned among the resulting farms pursuant to paragraphs (d)
through (h) of this section may be increased or decreased with respect
to a farm by as much as 10 percent of the parent farm's allotment,
quota, or base determined under such subsections for the parent farm
if:
(i) The owners agree in writing; and
(ii) The county committee determines the method used did not
provide an equitable distribution considering available land, cultural
operations, and changes in the type of farming conducted on the farm.
Any increase in an allotment, quota, or base with respect to a tract
pursuant to this paragraph shall be offset by a corresponding decrease
for such allotments, quotas or bases established with respect to the
other tracts which constitute the farm.
(2) Farm program payment yields calculated for the resulting farms
of a division may be increased or decreased if the county committee
determines the method used did not provide an equitable distribution
considering available land, cultural operations, and changes in the
type of farming conducted on the farm. Any increase in a farm program
payment yield on a resulting farm shall be offset by a corresponding
decrease on another resulting farm of the division.
(j) If a farm with burley tobacco quota is divided through
reconstitution and one or more of the farms resulting from the division
are apportioned less than 1,000 pounds of burley tobacco quota, the
owners of such farms shall take action as provided in part 723 of this
chapter to comply with the 1,000 pound minimum by July 1 of the current
year or the quota shall be dropped. Exceptions to this are farms
divided:
(1) Among family members;
(2) By the estate method; and
(3) When no sale or change in ownership of land occurs; or
(4) With one resulting farm receiving all of the quota.
Sec. 718.207 Determining allotments, quotas, and bases when
reconstitution is made by combination.
When two or more farms or tracts are combined for a year, that
year's allotments, quotas, and bases, with respect to the combined farm
or tract, as required by applicable commodity regulations, shall not be
greater than the sum of the allotments, quotas, and bases for each of
the farms or tracts comprising the combination, subject to the
provisions of Sec. 718.204.
PART 723--TOBACCO
0
5. The authority citation for part 723 continues to read as follows:
Authority: 7 U.S.C. 1301 et seq.; 7 U.S.C. 1421; 7 U.S.C. 1445-1
and 1445-2.
0
6. Subpart B is amended by adding Sec. Sec. 723.221, 723.222, and
723.223 to read as follows:
Subpart B--Allotments, Quotas, Yields, Transfers, Release and
Reapportionment, History Acreages, and Forfeitures
* * * * *
Sec. 723.221 Eminent domain acquisitions.
(a) This section provides a uniform method for reallocating tobacco
with respect to land involved in eminent domain acquisitions. An
eminent domain acquisition is a taking of title to land, an easement to
impound water on the land (impoundment), or an easement to flood the
land (flowage), under the power of a Federal, State, or other agency.
Acquisition may be by court condemnation of the land or by negotiation
between the agency and the owner. This section does not apply to
acquisition of land by an agency by a method other than eminent domain
acquisition. All land acquired, including surrounding land acquired as
a package acquisition, shall be considered an eminent domain
[[Page 16182]]
acquisition if the agency expended funds using its power of eminent
domain.
(b) In this section, owner means a person having title to the land
for a period of at least 12 months immediately before the date of
transfer of title or grant of the impoundment or flowage easement under
the eminent domain acquisition. If a person has owned the land for less
than such 12-month period, they may still be considered the owner if
the State committee determines they acquired the land for farming and
not for obtaining status as an owner under this section. However, no
person shall be considered the owner if he acquired the land subject to
a pending eminent domain acquisition contract to an agency or an option
by an agency or subject to pending condemnation proceedings. When the
current titleholders are not the owner according to this section, the
State committee shall determine who previously had title to the land
and who is the owner according to this paragraph.
(c) Tobacco may be pooled for the benefit of an owner whose farm is
acquired by eminent domain. Pooling shall be for a 3-year period from
the date of displacement or during a period. The displaced owner may
request transfer of allotments and quotas from the pool to other farms
owned by such person.
(d) The owner shall be considered displaced from a farm by eminent
domain acquisition on the date:
(1) The owner loses possession of the land;
(2) The owner is voluntarily displaced if a binding contract for
acquisition has been executed;
(3) The owner, in the case of a flowage easement, determines it is
no longer practical to conduct farming operations on the land; or
(4) The owner loses possession of the land as lessee under a lease
from the agency that provided uninterrupted possession to the owner
from the date of acquisition to the end of the lease.
(e) The owner shall notify the county committee in writing of the
eminent domain acquisition and furnish the date of displacement within
30 days so that tobacco may be pooled in accordance with this section.
Failure to so notify the county committee shall result in the loss of
the ability of the owner to extend the 3-year period provided in
paragraph (c) of this section.
(f) If the county committee is notified or otherwise determines
that an owner has been displaced from the farm, the county committee
shall establish a pool for the tobacco eligible under this section for
a 3-year period beginning on the date of displacement. Pooled tobacco
shall be considered fully planted and, for each year in the pool, shall
be established in accordance with applicable regulations.
(g) There shall be no pooling of an tobacco if:
(1) The county committee determines that an agency has eminent
domain power to acquire a farm for the continued production of an
tobacco, and
(i) The agency acquires a farm only for such purpose; and
(ii) The agency files a written notice with the county committee
designating the tobacco to be produced on the farm.
(2) An agency acquires and retains the land in an agricultural or
related activity. The tobacco for such land will be in accordance with
applicable regulations.
(3) A displaced owner voluntarily waives the right to have all the
tobacco or any part pooled and requests that the tobacco be retained on
the agency acquired land;
(4) Agency acquired cropland will not be farmed and represents less
than 15 percent of the total cropland on the farm. The tobacco shall be
retained on the portion of the farm not acquired by the agency.
(5) An agency acquires land that will not be farmed and the
cropland it contains is less than 15 percent of the total on the farm,
the entire tobacco for the acquired land shall be retained on the land
not acquired by the agency. The owner must file a written request with
the county committee for such retention. The tobacco to be retained on
the farm cannot exceed the land devoted to an agriculture related
activity. Tobacco that is not retained shall be pooled; or
(6) If, prior to pooling, an owner requests transfer of the tobacco
to other farms they own in the same county, the county committee may
approve a transfer without establishment of a pool, subject to the
requirements of paragraph (j) of this section. This paragraph shall
govern the release and reapportionment of pooled tobacco
notwithstanding other provisions of applicable commodity regulations.
(h) Pooled tobacco may be released on an annual basis by the owner
to a county committee during any year in which tobacco is pooled and
not otherwise transferred from the pool. The county committee may
reapportion the released tobacco to other farms in the same county that
have tobacco for the same commodity. Pooled tobacco shall not be
released on a permanent basis or surrendered after release to the State
committee for reapportionment in other counties. Reapportionment shall
be on the basis of past acreage of the commodity, land, labor, and
equipment available for the production of the commodity, crop rotation
practices, and other physical factors affecting the production of the
commodity. Pooled tobacco that is released shall be considered to have
been fully planted in the pool and not on the farm to which such
tobacco is reapportioned.
(i) Pooled tobacco that may be transferred on a permanent or
temporary basis by sale, lease, or by owner designation may be
transferred permanently from the pool by the owner or temporarily for
the duration of the pooled tobacco, subject to the terms and conditions
for such transfers in the applicable commodity regulations. The
transfer of tobacco acreage allotment or marketing quota shall be
approved acre for acre.
(j)(1) Displaced owners may request a transfer of all or part of
the pooled tobacco to any other farm in the United States that is owned
by the displaced owner, but only if there are farms in the receiving
county with tobacco, for the particular commodity or, if there are no
such farms, the county committee determines that farms in the receiving
county are suited for the production of the commodity. For purposes of
this paragraph:
(i) Receiving farm means the farm to which transfer from the pool
is to be made;
(ii) Receiving State and county committee mean those committees for
the State and county in which the receiving farm is located; and
(iii) Transferring State and county committees mean those
committees for the State and county in which the agency acquired farm
is located.
(2) The displaced owner shall file with the receiving county
committee written application for transfer of tobacco from the pool
within 3 years after the date of displacement. The application shall
contain a certification from the owner that no agreement has been made
with any person for the purpose of obtaining tobacco from the pool for
a person other than for the displaced owner. The owner shall attach to
the application all pertinent documents pertaining to the current
ownership or purchase of land and any leasing arrangements, such as the
deed of trust or mortgage, a warranty deed, a note, sales agreement,
and lease.
(3) The receiving county committee shall consider each application
and determine whether the transfer from the pool shall be approved.
Before an application is acted upon by the receiving county committee,
the owner shall personally appear before the
[[Page 16183]]
receiving county committee after reasonable notice, bring any
additional pertinent documents as may be requested for examination by
the receiving county committee, and answer all pertinent questions
bearing on the proposed transfer. Such personal appearance requirement
may be waived if the receiving county committee determines from facts
presented to it on behalf of the owner that such personal appearance
would unduly inconvenience the owner on account of illness or other
good cause and such personal appearance would serve no useful purpose.
Any action by the receiving county committee shall be subject to the
approval required under paragraph (j)(5) of this section.
(4) The transfer from the pool will be approved by the receiving
county committee only if the county committee determines that the owner
has made a normal acquisition of the receiving farm for the purpose of
bona fide ownership to reestablish farming operations. The elements of
such an acquisition shall include, but are not limited to, the
following:
(i) Appropriate legal documents must establish title to the
receiving farm;
(ii) If the displaced owner was the operator of the acquired farm
at the date of displacement, such owner must personally operate and be
the operator of the receiving farm for the first year that the tobacco
is transferred;
(iii) If the displaced owner was not the operator of the acquired
farm at the date of displacement and was not a producer on that farm
because the leasing or rental agreement provided for cash, fixed rent,
or standing rent payment, such owner shall not be required to operate
personally and be the operator of the receiving farm, but at least 75
percent of the allotments for the receiving farm must be planted on the
receiving farm during the first year of the transfer. With respect to a
commodity for which a quota is applicable but for which there is no
acreage allotment, an acreage that is equal to the result of dividing
the quota transferred to the receiving farms by the receiving farm's
yield, multiplied by 75 percent must be planted during the first year
of the transfer;
(iv) If the displaced owner was not the operator of the acquired
farm at the date of displacement but was a producer on that farm at the
date of displacement as the result of having received a share of the
crops produced on the acquired farm, such displaced owner shall not be
required to be the operator of the receiving farm but must be a
producer on the receiving farm during the first year that tobacco is
transferred;
(v) The agreement between the displaced owner and the seller of the
receiving farm must not contain a requirement that the receiving farm
be leased to the seller or a person designated by or subject to the
control of the seller. The seller or a person designated by or subject
to the control of the seller may not lease the receiving farm for the
first year the tobacco is transferred; and
(vi) The agreement under which the receiving farm was purchased or
leased must be customary in the community where the receiving farm is
located with respect to purchase price and timing and amount of
purchase or rental payments.
(5) The approval by the receiving county committee of a transfer
from the pool under this paragraph shall be effective upon concurrence
by the State committee of the receiving State. The receiving State
committee may authorize a transfer from the pool in any case where the
owner presents evidence satisfactory to the receiving State committee
that:
(i) The eligibility requirements of paragraphs (j)(4)(ii) through
(j)(4)(iv) of this section cannot be met without substantial hardship
because of illness, old age, multiple farm ownership, or lack of a
dwelling on the farm to which an allotment or quota is to be
transferred; or
(ii) The owner has made a normal acquisition of the receiving farm
for the purpose of bona fide ownership to reestablish farming
operations for the displaced owner, even if the farm is leased to the
seller of the farm for the first year for which the tobacco is
transferred.
(6) Upon approval under this paragraph, the receiving county
committee shall issue a notice of tobacco under the applicable
commodity regulations, taking into consideration the land, labor, and
equipment available for the production of the commodity, crop rotation
practices, and the soil and other physical factors. In determining the
tobacco available for transfer, the receiving county committee shall
consider the receiving tract as a separate ownership. The acreage
transferred from the pool shall not exceed the tobacco most recently
established for the acquired farm placed in the pool. When all or a
part of the tobacco placed in the pool is transferred and used to
establish or increase the tobacco for other farms owned or purchased by
the owner, all of the proportionate part of the past acreage history
for the acquired farm shall be transferred to and considered for
purposes of future tobacco to have been planted on the receiving farm
for which tobacco, are established or increased under this section. If
only a part of the available tobacco is transferred from the pool, the
remaining part of the tobacco, shall remain in the pool for transfer to
other farms of the owner until all such tobacco has been transferred or
until the period of eligibility for establishing or increasing tobacco
under this section has expired.
(7) If any tobacco is transferred under this section and it is
later determined by the receiving county or State committee, or by the
Deputy Administrator, that the transfer was obtained by
misrepresentation, or that the conditions of paragraph (j)(4) of this
section are not met, the tobacco for the receiving farm shall be
reduced for each year the transfer purportedly was in effect by the
amount attributable to the tobacco transferred from the pool. If the
time for the transfer of the tobacco from the pool has not expired, the
tobacco initially transferred from the pool shall be returned to the
pool after the period of time has expired in which the displaced owner
could request administrative review. Cancellation of the transfer of
tobacco by the receiving county committee requires approval by the
receiving State committee. The receiving county committee shall issue a
notice of marketing quota and penalty in accordance with applicable
commodity regulations.
(8) If the displaced owner requests transfer of pooled tobacco,
within the prescribed period, but the request for transfer is filed
during a year or a part of the pooled tobacco was released to the
transferring county committee pursuant to paragraph (h), the request
will be processed in the usual manner but the amount released shall not
be effective until the succeeding year. When a request for transfer of
pooled tobacco involves a transfer from one State to another, the
receiving State committee shall ask the transferring State committee
whether any of the tobacco for which transfer is requested has been
released to the transferring county committee for the current year.
(k)(1) When the displaced owner leases part but not all of the
agency acquired land, such part shall be constituted as a separate farm
on the date of the displacement of the owner from the land not so
leased.
(2) If a parent farm consists of separate ownership tracts, each
such tract being acquired in whole or in part shall be considered as a
separate farm for purposes of paragraphs (g)(3) and (g)(4) of this
section.
(3) If a portion of a farm is acquired by an agency and the owner
is displaced
[[Page 16184]]
therefrom, the acquired portion shall be constituted as a separate farm
on the date of displacement unless the tobacco is retained on the
portion not acquired as provided in paragraphs (g)(3) and (g)(4) of
this section, in which case the farm shall not be reconstituted but the
farmland and cropland data shall be corrected on all appropriate
records for the parent farm.
(l)(1) The displaced owner may request from the county committee a
written designation of beneficiary of the rights in the tobacco
attributable to the acquired land in the event of the death of the
displaced owner, and may revise such designation from time to time. The
beneficiary of a deceased owner may continue a lease or negotiate a
lease with the agency, transfer rights with respect to farms owned by
the beneficiary, and release, sale, lease, and owner transfer rights
under this section.
(2) If the displaced owner does not file a designation of
beneficiary under paragraph (l)(1) of this section and the displaced
owner dies before displacement or after pooling occurs, the following
persons shall be considered the beneficiary with applicable rights:
(i) The surviving joint owner of the farm where two persons own the
farm as joint tenants with right of survivorship; and
(ii) The persons who succeed to the deceased displaced owner's
interest under a will or by intestate succession. However, in the case
of intestate succession, the person shall be limited to the surviving
spouse, parent, sibling or child of the deceased displaced owner. In
the settlement of the estate of the deceased displaced owner, the heirs
may file a written agreement with the county committee for the division
of the deceased displaced owner's rights under this section.
(m)(1) No transfer from the pool under paragraphs (h), (i), or (j)
of this section shall be approved if there remains any unpaid marketing
quota penalty due with respect to the marketing of the commodity from
the acquired farm by the displaced owner, or if any of the commodity
produced on the agency acquired farm has not been accounted for as
required under applicable regulations.
(2) If tobacco for an acquired farm next established after the date
of displacement would have been reduced because of false or improper
identification of the commodity produced on or marketed from the farm,
or as the result of a false acreage report, the tobacco shall be
reduced in the pool accordance to applicable regulations.
Sec. 723.222 Exempting Federal prison farms and Federal wildlife
refuges.
A marketing penalty shall not be assessed with respect to any
commodity that is produced on a Federal prison farm or Federal wildlife
refuge. This exception does not apply to penalties incurred by an
individual who has a separate interest in a crop that is subject to
marketing quotas and was produced on a Federal prison farm or Federal
wildlife refuge.
Sec. 723.223 Transfer of allotments and quotas--State public lands.
(a) Transfers of allotments and quotas between farms in the same
county may be permitted where both farms are lands owned by the State.
(b) An application requesting the transfer of one or more of the
allotments and quotas on a farm entirely comprised of lands owned by a
State shall be filed with the county committee by the State. The
application shall identify the farms as being within the same county,
show that each farm is entirely comprised of lands owned by the State,
and list the allotments and quotas requested to be transferred.
Additional information about the farm operations, including leases,
shall also be included in the application.
(c) The State committee shall establish the closing date for filing
applications under paragraph (b) of this section, for each year, which
shall be no later than the general planting date in the county for the
commodity involved in the transfer.
(d)(1) Each transfer of an allotment and quota shall be adjusted
for differences in farm productivity if the yield projected for the
year the transfer is to take effect for the farm to which transfer is
made exceeds by more than ten percent the yield projected for the year
the transfer is to take effect for the farm from which transfer is
made. The county committee shall determine the amount of the allotment
and quota to be transferred where a productivity adjustment is required
to be made by dividing:
(i) The product of the yield for the farm from which the transfer
is made and the acreage to be transferred from such farm, by
(ii) The yield for the farm to which the transfer is made.
(2) Acreage for the farm receiving the allotment or quota shall be
adjusted by the same percentage as the allotment or quota being
transferred is adjusted. The allotment and quota and related acreage
transferred from the farm from which the transfer is made shall be the
full amount, but the amount of all allotment or quota and related
acreage for the farm to which the transfer is made shall be the
adjusted amount.
(e) The amount of allotment and quota on a farm after a transfer
under this section is made shall not exceed the average amount of
allotment or quota of at least three farms with acreage of cropland
similar to the farm receiving the transfer in the community having the
applicable allotment acreage and quota on these farms.
(f) Each transfer of any allotment and quota shall be require that
acreage equal to the allotment and quota transferred shall be devoted
to and maintained in permanent vegetative cover on the farm from which
the transfer is made before any productivity adjustment. The acreage to
be devoted to and maintained in permanent vegetative cover with respect
to quota crops shall be determined by dividing the quota transferred by
the yield of the farm from which the quota is transferred.
(g) Transfer of an allotment and quota under this section shall
only be approved if:
(1) The county committee determines that a timely filed application
has been received and that the provisions of this section have been
met; and
(2) A representative of the State committee also determines that
the provisions of this section have been met. If a transfer is
approved, the county committee shall issue revised notices of the
allotment or quota for each farm affected. If a county committee
determines that requirements for a transfer were not met, a report
shall be provided to the State committee. If the State committee agrees
that requirements were not met, the transfer will be canceled, and the
allotment and quota shall be transferred back to the original farm.
Where a cancellation and transfer back is required, the county
committee shall issue revised notices of the allotment or quota showing
the reasons for the cancellation.
PART 1412--DIRECT AND COUNTER CYCLICAL PROGRAM AND PEANUT QUOTA
BUYOUT PROGRAMS
7. Amend Sec. 1412.407 as follows:
0
A. By revising paragraph (d)(2) to read as set forth below.
0
B. Amend paragraph (e) by adding Houston County, Alabama, Tazewell
County, Illinois, and Clinton County, Pennsylvania as State Committee-
established regions within the respective states.
Sec. 1412.407 Planting flexibility.
* * * * *
(d) * * *
(2) The farm has a history of planting fruits, vegetables, or wild
rice, as
[[Page 16185]]
determined by the CCC, in any one of the crop years 1991 through 1995
or 1998 through 2001, in which case the payment acres for the farm
shall be reduced on an acre-for-acre basis; or
* * * * *
PART 1413--HARD WHITE WHEAT INCENTIVE PROGRAM
0
8. Amend Sec. 1413.101 by revising paragraph (b) to read as follows:
Sec. 1413.101 Applicability.
* * * * *
(b) A production payment incentive shall be available only for hard
white wheat that grades U.S. 2 grade or higher, established
by the Federal Grain Inspection Service, that is produced and harvested
in the United States.
* * * * *
Sec. 1413.105 [Amended]
0
9. Amend Sec. 1413.105 by redesignating the second paragraph (c)(1)
and paragraph (c)(2) as paragraphs (c)(2) and (c)(3) respectively.
Signed in Washington, DC, on February 19, 2003.
James R. Little,
Administrator, Farm Service Agency and Executive Vice-President,
Commodity Credit Corporation.
[FR Doc. 03-8025 Filed 3-31-03; 3:45 pm]
BILLING CODE 3410-05-P