[Federal Register: May 11, 2007 (Volume 72, Number 91)]
[Notices]
[Page 26772-26774]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11my07-18]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Emergency and Temporary Storage of Agricultural Commodities
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: The Commodity Credit Corporation (CCC) is taking actions to
ensure adequate availability of commercial warehouse storage space for
the 2007 crops and for producers seeking warehouse-stored marketing
assistance loans for eligible commodities. CCC is announcing
authorization, under certain conditions, of emergency and temporary
storage for the 2007 crops of wheat, corn, sorghum and feed grains, and
temporary storage for the 2007 crops of soybeans, rice and other
commodities deemed storable by CCC. The authorizations include
agricultural commodities stored by
[[Page 26773]]
warehouse operators licensed under the U.S. Warehouse Act (USWA) and
those warehouse operators who store commodities pledged as collateral
for Commodity Credit Corporation (CCC) marketing assistance loans and
issue warehouse receipts for such commodities in emergency or temporary
storage.
EFFECTIVE DATE: May 11, 2007.
FOR FURTHER INFORMATION CONTACT: Roger Hinkle, Warehouse and Inventory
Division, Farm Service Agency, United States Department of Agriculture,
1400 Independence Avenue, SW., STOP 0553, Washington, DC 20250-0553,
telephone (202) 720-7433, FAX (202) 690-3123, e-mail:
Roger.Hinkle@wdc.usda.gov. Persons with disabilities who require
alternative means for communication for regulatory information
(Braille, large print, audiotape, etc.) should contact USDA's TARGET
Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
To be eligible for a Marketing Assistance Loan under the loan
provisions of 7 CFR part 1421, an eligible commodity must be stored in
approved storage, which is either on-farm storage or an approved
warehouse that meets the CCC standards for approval of warehouses.
Further, in accordance with the CCC Charter Act (15 U.S.C. 714 et
seq.), CCC enters into storage agreements with commercial warehouse
operators to provide for the storage of commodities owned by CCC or
pledged as security to CCC for marketing assistance loans. To ease the
demands made on approved warehouse space for the 2007 crops, CCC will
accept as collateral for marketing assistance loans the emergency and
temporary storage of wheat, corn, sorghum and feed grains and temporary
storage of soybeans, rice and other commodities deemed storable by CCC
for which warehouse receipts are issued by a warehouse operator that is
storing such commodity in emergency or temporary storage if the
warehouse has executed a storage agreement with CCC and if the
warehouse is either:
1. A federally-licensed warehouse under the USWA and is in
compliance with the provisions of its USWA license; or
2. For all other warehouses, the warehouse operator is in
compliance with State laws allowing emergency or temporary storage of
such commodities.
USWA Emergency Storage Requirements
Emergency storage is limited to wheat, corn, sorghum and feed
grains unless otherwise allowed by the USWA. The warehouse operator may
use such space from the time of initial licensing until March 31, 2008.
Emergency storage space must be operated in conjunction with a USWA-
licensed warehouse. In addition, warehouse operators requesting
emergency storage space under the USWA must:
1. Receive USWA's authorization for the use of emergency storage
space;
2. Meet all USWA security, net worth, bonding, and insurance
requirements as required for conventional storage space;
3. Provide written justification that a need for emergency storage
exists in the local area including the exact location, kind of
commodity and quantity requested;
4. Meet USWA's requirement that emergency storage space be
accessible for examination purposes;
5. Receive USWA authorization for the emergency storage space prior
to using such space;
6. Maintain a separate inventory record of all commodities stored
in emergency storage space, as well as accounting for such commodities
in their Daily Position Record (DPR);
7. Agree that all emergency storage space will be deleted from the
license no later than March 31, 2008;
8. Agree to move all commodities stored in emergency storage space
into licensed space by that date;
9. Notify USWA in writing when commodities are moved into licensed
space; and
10. If the warehouse chooses to continue using the emergency
storage space for company-owned commodities after that date, the
warehouse operator shall:
Remove that quantity of the commodity from the warehouse's
official records,
Not use the commodity to cover the storage or warehouse
receipted obligations of the warehouse, and
Agree that the quantity will not be included in any
warehouse examination conducted by CCC.
USWA Temporary Storage Requirements
The warehouse operator may use such space from the time of initial
licensing until March 31, 2008, for soybeans, rice and other
commodities deemed storable by CCC and until July 1, 2008, for wheat,
corn, sorghum and feed grains. Temporary storage structures must be
operated in conjunction with a USWA-licensed warehouse. In addition:
1. Asphalt, concrete, or other approved base material must be used;
2. Rigid self-supporting sidewalls must be used;
3. Aeration must be provided;
4. Acceptable covering, as determined by CCC, must be provided;
5. Receive USWA's authorization for the use of temporary storage;
6. Meet all USWA security, net worth, bonding, and insurance
requirements as required for conventional storage space;
7. Warehouse operators must maintain a separate record of all
commodities stored in temporary storage space and must account for such
commodities in their DPR;
8. Agree to move all commodities stored in temporary storage space
into licensed space by its respective final date;
9. Notify USWA in writing when commodities are moved into licensed
space; and
10. If the warehouse chooses to continue using the temporary
storage space for company-owned commodities after that date, the
warehouse operator shall:
Remove that quantity of the commodity from the warehouse's
official records,
Not use the commodity to cover the storage or warehouse
receipted obligations of the warehouse, and
Agree that the quantity will not be included in any
warehouse examination conducted by CCC.
Application for Emergency and Temporary Storage
USWA licensees should direct questions regarding the use of
emergency or temporary storage to Terry Chapman, Chief, Licensing
Branch, Warehouse License and Examination Division, at: Kansas City
Commodity Office, Mail Stop 9148, P.O. Box 419205 Kansas City, MO
64141-6205, telephone: 816-926-6474; facsimile: 816-926-1774. E-mail:
terry.chapman@kcc.usda.gov.
All other warehouse operators should direct questions regarding the
use of emergency or temporary storage to the Chief of the Storage
Contract Branch, Bulk Commodities Division, Kansas City Commodity
Office--MAIL STOP 8748, PO Box 419205, Kansas City, Missouri 64141-
6205, Telephone: (816) 926-6446--Facsimile: (816) 926-1426 or (816)
823-1804; E-mail: bcdscd@kcc.usda.gov.
Warehouse Operator's Liability
The authorization and licensing of emergency and temporary storage
space does not relieve warehouse operators of their obligations under
the USWA.
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Warehouse operators are responsible for the quantity and quality of
commodities stored in emergency and temporary storage space to the same
extent as their liability for licensed storage space. All commodities
stored in emergency and temporary storage space are considered a part
of the warehouse operator's commingled inventory.
Warehouse Security
CCC strongly recommends that warehouse operators review their
warehouse security plans and conduct a prudent risk assessment in
connection with their application for emergency and temporary storage
space. Warehouse operators may want to pay particular attention to
threats that may not have been considered significant in the past and
consider restricting access to facilities to authorized personnel only.
Signed in Washington, DC, on April 26, 2007.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E7-9121 Filed 5-10-07; 8:45 am]
BILLING CODE 3410-05-P