[Federal Register: July 13, 2005 (Volume 70, Number 133)]
[Notices]
[Page 40307-40309]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jy05-40]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
Alaska Dairy Fund
AGENCY: Farm Service Agency, USDA.
ACTION: Notice of Funds Availability (NOFA).
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SUMMARY: This Notice announces the availability of funds to be applied
to accounts of Alaska dairy farmers. As provided by the Emergency
Supplemental Appropriations Act for Defense, the Global War on Terror,
and Tsunami Relief, 2005 (2005 Emergency Supplemental Act) (Pub. L.
109-13) $1 million made available by section 786 of the Agriculture,
Rural Development, Food and Drug Administration and Related Agencies
Appropriations (2005 Appropriations Act)(Pub. L. 108-447) may be
applied to accounts of Alaska dairy farmers owed to the Secretary.
FOR FURTHER INFORMATION CONTACT: Michael Cumpton, Senior Loan Officer,
USDA/FSA/DAFLP/STOP 0523, 1400 Independence Avenue, SW., Washington, DC
20250-0523; telephone (202) 690-4014; facsimile (202) 690-0949;
electronic mail: mike.cumpton@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
General Information
Section 751 of the Agriculture, Rural Development, Food and Drug
Administration and Related Agencies Appropriation Act, 2003 (Pub. L.
108-7), enacted February 20, 2003, authorized loans and grants to
expand the State of Alaska's dairy industry and related milk processing
and packaging facilities in Fiscal Years 2003 through 2007. Section 786
of the 2005 Appropriations Act enacted December 8, 2004, appropriated
$1 million for that purpose. Section 5104 of the 2005 Emergency
Supplemental Act enacted May 11, 2005, authorized the Agency to apply
those funds to the accounts of Alaska dairy farmers owed to the
Secretary of Agriculture.
This notice announces that the Farm Service Agency (FSA) is making
$1 million available to established dairy farms in Alaska currently
indebted on FSA Farm Loan Programs (FLP) loans that have been in
continuous commercial milk production for at least the last three full
calendar years and continued to produce milk to sell
[[Page 40308]]
commercially on May 11, 2005 (the date of enactment of the authorizing
legislation). The funds will be distributed pro rata based on the total
production of each operation over the last three calendar years.
These funds will be applied to eligible borrower accounts without
execution of additional debt or security instruments.
I. Definitions
Agency or FSA is the Farm Service Agency, its employees, and any
successor agency.
Entity is a corporation, partnership, joint operation, trust,
limited liability company, or cooperative.
Eligible farmer is an individual or entity who is an established
dairy farmer in the State of Alaska and is indebted to the Secretary of
Agriculture through the Farm Loan Programs of the Farm Service Agency.
Established dairy farmer is an individual or entity who has been
continuously producing and selling milk commercially for three or more
calendar years (including 2002-2004) and continued to produce milk to
sell commercially on May 11, 2005.
II. Eligibility Requirement
Recipients must be eligible farmers as defined above.
III. Notification of Eligible Farmers
(a) Within 10 days after publication of this notice, the Agency
will request, by first class mail, and in person or by phone, that
eligible farmers execute:
(1) A consent to the release of information (unless the Agency
already has such a consent) for the Agency to obtain from commercial
milk buyers the eligible farmer's production for the past three full
calendar years (2002, 2003, and 2004), and
(2) The Alaska Dairy Fund Certification (ADFC), contained in
Exhibit 1 of this notice, certifying that they:
(i) Meet the definition of an established dairy farmer;
(ii) Agree to accept the funds; and
(iii) Are aware of possible future tax consequences of accepting
the funds.
(b) Eligible farmers who do not execute and deliver to FSA the
consent (unless there is already a release on file) and the ADFC within
30 days of notification by the Agency will not be included in the
calculations or distribution of funds.
IV. Distribution of Funds
Funds will be distributed among eligible farmers based on their
proportion of total milk production sold commercially by all eligible
farmers during the three full calendar years 2002, 2003, and 2004.
Payments will be limited to the amount of the borrower's FLP debt.
The following example, using three farms, illustrates the payment
calculation process:
Example:
------------------------------------------------------------------------
cwt.
------------------------------------------------------------------------
Total Three Year Production:
Eligible Farmer 1........ 150,000
Eligible Farmer 2........ 90,000
Eligible Farmer 3........ 40,000
-----------------------------------
Total Production................ 280,000
Percentage of Total Production:
Eligible Farmer 1........ 150,000 / 280,000 = 53.57%
Eligible Farmer 2........ 90,000 / 280,000 = 32.14%
Eligible Farmer 3........ 40,000 / 280,000 = 14.29%
-----------------------------------
100%
Payment:
Eligible Farmer 1........ 53.57% x 1,000,000 = $535,700
Eligible Farmer 2........ 32.14% x 1,000,000 = $321,400
Eligible Farmer 3........ 14.29% x 1,000,000 = $142,900
-----------------------------------
$1,000,000
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If the calculations show that a farmer's payment would be greater
than the farmer's FLP debt, the payment will be set equal to the debt
and the excess entered into new calculations as shown above, but
excluding that farmer, to be distributed among the remaining eligible
farmers.
V. Processing and Application of Funds
(a) When all production amounts have been obtained, the State
Executive Director (SED), Alaska, with concurrence of the Deputy
Administrator for Farm Loan Programs, will make the calculations
required by this Notice. Exhibit 2 will then be used to notify the
borrowers of:
(i) Their total production reported to the Agency;
(ii) The total projected amount that they are to receive;
(iii) That 80 percent of the total projected amount they are to
receive will be applied to their accounts immediately; and
(iv) Their right to appeal to the National Appeals Division, USDA.
(b) After the exhaustion of all appeal rights, the State Executive
Director (SED), Alaska, with concurrence of the Deputy Administrator
for Farm Loan Programs, will make any additional calculations required
and notify the eligible farmer and the Agency's Finance Office of the
remaining amount that will be applied to their account.
(c) The Agency's Finance Office will apply the funds first to any
eligible farmer's FSA FLP delinquency and then as extra payments
according to 7 CFR part 1951, subpart A.
(d) The record of SED calculations will be retained and filed in
the State Office.
Paperwork Reduction Act
A request for clearance of the information collections associated
with this notice has not been submitted to the Office of Management and
Budget (OMB) under 5 CFR 1320.3(c) because the collection of
information required for the disbursal of the funds will affect less
than ten persons.
Environmental Compliance
The environmental impacts of this notice 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 the FSA
regulations for compliance with NEPA, 7 CFR parts 799, and 1940,
subpart G. FSA completed an environmental evaluation
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and concluded the notice requires no further environmental review as
funds will be applied against existing debt and no additional funds are
being advanced for production or expansion. 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.
Signed at Washington, DC, on June 30, 2005.
James R. Little,
Administrator, Farm Service Agency.
Exhibit 1--Alaska Dairy Fund Certification
I ---------- hereby certify that I (or my entity which I have
the authority to represent) meet the definition of an eligible
farmer, as shown below, and will accept proceeds made available by
the Emergency Supplemental Appropriations Act for Defense, the
Global War on Terror, and Tsunami Relief, 2005, according to FSA
calculations up to the total amount of my FSA Farm Loan Programs
debt:
Definitions:
Eligible farmer is an individual or entity who is an established
dairy farmer in the State of Alaska and is indebted to the Secretary
of Agriculture through the Farm Loan Programs of the Farm Service
Agency.
Established dairy farmer is an individual or entity who has been
continuously producing and selling milk commercially for three or
more full calendar years (including 2002-2004) and continued to
produce milk to sell commercially on May 11, 2005.
I further certify that I am aware that there could be tax
consequences if I accept these funds and may consult a tax
professional or the IRS if I have any questions regarding these
consequences.
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Signature
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Signature
Exhibit 2--Notification of 2005 Alaska Dairy Fund Production Records
Dear (Borrower's Name): Pursuant to Section 5104 of the
Emergency Supplemental Appropriations Act for Defense, the Global
War on Terror, and Tsunami Relief, 2005 (Pub. L. 109-13), and the
Notice of Funding Availability implementing that law, the Farm
Service Agency has determined the distribution of funds from the
Alaska Dairy Fund.
All records available to the FSA indicate that your milk
production sold commercially from January 1, 2002 to December 31,
2004 was --------. Using this as a basis for calculation, your share
of the 2005 Alaska Dairy fund would be approximately $--------. This
is an estimated projection only. Any correction in the production
amounts used for receipt of these funds could change this amount.
Therefore, at this time, 80 percent of this amount, or $--------,
will immediately be applied to your FSA Farm Loan Program account.
You have 30 days from receipt of this notice to appeal if you
believe that FSA's decision is incorrect. Information on how to
appeal is included with this notification. At the conclusion of the
appeal period for all eligible farmers, the remaining balance, as
calculated by FSA, will be applied to your account.
Funds first will be applied toward any FLP delinquency and then
as an extra payment on your account. Please consult with your FSA
Office regarding any changes to your future payment schedule.
If you have any questions, please contact the Alaska State FSA
Office at (907)761-7738.
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Sincerely,
State Executive Director
Alaska Farm Service Agency
[FR Doc. 05-13751 Filed 7-12-05; 8:45 am]
BILLING CODE 3410-05-P