[Code of Federal Regulations]
[Title 7, Volume 7]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR784.5]

[Page 484]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 784--LAMB MEAT ADJUSTMENT ASSISTANCE PROGRAM--Table of Contents
 
Sec. 784.5  Year 1 eligibility.

    (a) To be eligible to receive the ``Year 1'' payments under this 
part, as described in Sec. 784.1, at the rates provided in Sec. 784.6, a 
sheep and lamb operation must be engaged in the business of producing 
and marketing agricultural products at the time of filing the 
application, must have in 1999 gross annual revenue of $2.5 million or 
less, and must have done at least one of the following during ``Year 
1'':
    (1) Purchased rams for breeding purposes within that operation, 
provided that such rams must have been at least 90 days of age when 
purchased and must have been, or will be, maintained by the operation 
for at least 90 days continuously after the date of purchase;
    (2) Enrolled sheep in an eligible sheep improvement program; or
    (3) Made sheep and lamb operation facility improvements with respect 
to their operation.
    (b) With respect to paragraph (a)(3) of this section, in order to 
receive payments, the sheep and lamb operation must submit supporting 
documentation of the cost of the improvements made to the facility 
during program ``Year 1'' and must use facility improvements for sheep 
and lamb production activities continuously for at least the next 3 
consecutive years. Upon a failure to maintain the facility for the full 
three years, the operation must refund the ``Year 1'' facility payment 
immediately and with interest.
    (c) With respect to payments made for activities addressed in 
paragraph (a)(1) of this section, upon any failure to maintain a ram 
after payment for the full required 90-day period, unless that period 
has already expired, the operation must immediately refund the payment 
made and with interest.