[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: 7CFR784.8]

[Page 485-486]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 784--LAMB MEAT ADJUSTMENT ASSISTANCE PROGRAM--Table of Contents
 
Sec. 784.8  Year 2 and Year 3 eligibility.

    (a) Subject to the availability of funds, ``Year 2'' and ``Year 3'' 
payments will, as described to in Sec. 784.1, be made for eligible 
marketings of slaughter lambs for slaughter. (Criteria for feeder lamb 
payments appear elsewhere in this section). Such payments for slaughter 
lambs, as opposed to feeder lambs, can be received by an operation, at 
the rates described in Sec. 784.9, for those eligible lambs slaughtered 
in the respective time periods comprising ``Year 2'' and ``Year 3'' if 
the lambs were owned, by the operation, in the normal course of raising 
lambs for slaughter, continuously for 30 days prior to the marketing for 
slaughter and if the carcasses produced by the slaughter of the lamb 
meets the criteria set out in paragraph (b) of this section. Other 
criteria, as set out in this part, may also apply as a condition for, or 
limitation on, payment.
    (b) In order for a marketing of a slaughter lamb to qualify for 
payment under paragraph (a) of this section, the carcass produced by the 
slaughter must be evaluated and certified by an AMS agent or their 
assigned representative that such carcass meets the following criteria:
    (1) Meet the requirements of USDA Quality Grade Choice or Prime;
    (2) Meet the requirements of USDA Yield Grade 2;
    (3) Have a muscling confirmation score of ``Average Choice'' or 
better; and
    (4) Have a 55-75 pound dressed hot carcass weight;
    (c) Subject to the availability of funds, in order to be eligible 
for the ``Year 2'' and ``Year 3'' feeder lamb payments referred to in 
Sec. 784.1, at the rates specified in Sec. 784.9, sheep operations must 
have in the preceding year of which payment is sought had a gross

[[Page 486]]

annual revenue of $2.5 million or less, and must for the year in which 
the payment is sought marketed qualifying feeder lambs. In order for a 
feeder lamb to be a qualifying feeder lamb it must have been:
    (1) Owned by the operation, as part of its normal raising of lambs 
for slaughter, continuously for 30 days prior to the time of the 
qualifying marketing; and
    (2) At the time of the marketing must have been, as determined and 
certified by AMS, thick-muscled and large-framed.
    (d) To be eligible for any payments under this section, the sheep 
and lamb operation must be engaged in the business of producing and 
marketing agricultural products at the time of filing the application.
    (e) In addition, to be eligible for ``Year 2'' and ``Year 3'' 
payments, a sheep and lamb operation must submit a timely application 
during the application period for ``Year 2'' and ``Year 3'' benefits and 
comply with all other terms and conditions of this part or are contained 
in the application to be eligible for such benefits.