Disaster Reserve Assistance Program

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1439

RIN 0560-AF11

Disaster Reserve Assistance Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Commodity Credit Corporation (CCC) published an interim

rule in the Federal Register (62 FR 3195) on January 22, 1997, to

announce the availability of assistance under the Disaster Reserve

Assistance Program (DRAP). The assistance was for livestock producers

whose production of livestock feed was adversely affected by severe

winter disaster conditions. Authority for the program is set forth in

section 813 of the Agricultural Act of 1970, as amended. This final

rule adopts the interim rule with modifications that became necessary

during the administration of the program due to circumstances

unforeseen at the time the interim rule was written, but which became

necessary because of the severity of the disaster.

EFFECTIVE DATE: August 21, 1997.

FOR FURTHER INFORMATION CONTACT: Chris Niedermayer, Acting Director,

Emergency and Noninsured Assistance Program Division, Farm Service

Agency (FSA), United States Department of Agriculture, STOP 0526, 1400

Independence Avenue, SW, Washington, D.C. 20250-0526, telephone (202)

720-6635.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule is issued in conformance with Executive Order 12866

and has been determined to be significant and has been reviewed by the

Office of Management and Budget.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this rule because neither FSA nor the CCC is required by

5 U.S.C. 553 or any other provision of law to publish a notice of

proposed rulemaking with respect to the subject matter of this rule.

Environmental Evaluation

It has been determined by an environmental evaluation that this

action will have no significant impact on the quality of the human

environment. Therefore, neither an environmental assessment nor an

environmental impact statement is needed.

Executive Order 12988

The final rule has been reviewed in accordance with Executive Order

12988. The provisions of this final rule preempt State laws to the

extent such laws are inconsistent with the provisions of this rule. The

provisions of this rule are retroactive to January 10, 1997. Before any

judicial action may be brought concerning the provisions of this rule,

the administrative remedies must be exhausted.

Executive Order 12372

This program is not subject to the provisions of Executive Order

12372, which require 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

The provisions of the Unfunded Mandates Reform Act of 1995 are not

applicable to this rule because neither FSA nor CCC is required by 5

U.S.C. 553 or any other provision of the law to publish a notice of

proposed rulemaking with respect to the subject matter of this rule.

Paperwork Reduction Act

The amendments to 7 CFR 1439 set forth in this final rule have been

approved by OMB under an emergency submission of 0560-0029. An

information collection notice was published in the Federal Register (62

FR 3195) on January 22, 1997. No comments were received regarding

information collections. A regular submission of information collection

will be provided to OMB before July 31, 1997.

Executive Order 12612

It has been determined that this rule does not have sufficient

Federalism implications to warrant the preparation of a Federalism

Assessment. The provisions contained in this rule will not have a

substantial direct effect on States or their political subdivisions, or

on the distribution of power and responsibilities among the various

levels of Government.

Federal Assistance Programs

This program is listed in the Catalog of Federal Domestic

Assistance under No. 10.452.

Background

Pursuant to the authority set forth in section 813 of the

Agricultural Act of 1970, as amended, it has been determined that:

1. Severe and prolonged natural disasters adversely affecting

livestock producers across the country warrant implementing additional

provisions of DRAP to alleviate the distress caused by the natural

disaster conditions and unforeseen consequences brought on by the

severity of the natural disasters.

2. An interim rule published on January 22, 1997, (62 FR 3195)

amended part 1439 to provide assistance for feed losses in crop year

1996, occurring because of snow and freezing conditions. Consequently,

in implementing these regulations CCC made several changes in the

program due to the severity of the natural disaster conditions.

Presidential Disaster Declarations M1156 and M1157 were issued for all

counties in North Dakota and South Dakota; therefore, all livestock

producers in these States who met all eligibility requirements, as

determined by the Deputy Administrator for Farm Programs (DAFP), and

timely filed requests, were eligible for assistance under the herein

contained Emergency Feed Grain Donation Program (EFGDP). Subsequently,

DAFP determined that livestock producers in North Dakota, South Dakota,

and in the Minnesota counties designated as primary counties in

Presidential Disaster Declaration M1158 who met all eligibility

requirements, as determined by DAFP, and timely filed requests, were

eligible for assistance under the herein

[[Page 44392]]

contained Foundation Livestock Relief Program (FLRP). The interim rule

did not specify that producers in counties contiguous to primary

counties where an emergency declaration was made by the President would

be eligible for assistance under EFGDP and FLRP. Inadvertently, the

following counties contiguous to the States of North Dakota and South

Dakota were erroneously included as being eligible for FLRP: Lyon,

Plymouth, Sioux, and Woodbury Counties in Iowa; Carter, Fallon,

Richland, Roosevelt, Sheridan, and Wibaux Counties in Montana; Boyd,

Cedar, Cherry, Dakota, Dawes, Dixon, Keya Paha, Sheridan, and Sioux

Counties in Nebraska; and Crook, Niobrara, and Weston Counties in

Wyoming. Applications for FLRP assistance were accepted in the

aforementioned contiguous counties through February 25, 1997. FSA

determined that withdrawal of its offer to provide cost share

assistance after the final date for submitting an application would not

be in the best interest of the public because producers in the

erroneously approved counties would have already made previous

commitments. Accordingly, FSA elected to grant relief in accordance

with 7 U.S.C. 1339a on the basis of ``misaction'' by the Agency.

This final rule adopts the interim rule, with some modifications

and additions. The comments received and CCC responses are as follows:

Comment: Sec. 402(a) One comment received from a national livestock

association recommended that:

(1) The Secretary of Agriculture should have the authority to

delineate the areas of the U.S. that are eligible for the DRAP.

(2) Producers who qualify for the DRAP should be allowed to use the

funds for snow removal, clearing of flood related debris, removal of

mud, repair and maintenance of farm roads, rebuilding of fences due to

high water or snow, purchase of hay and high protein feed supplements

and minerals, and maintenance and continued usage of water supplies of

adequate quality and quantities.

(3) Producers be reimbursed whether they remove the disaster

related snow, mud and/or debris themselves, or they use an outside

contractor.

Response: (1) Authorization for the program was limited to the 1996

crop year, allowing USDA to provide assistance for feed loss or

inaccessibility as a result of snow or freezing conditions where an

emergency declaration has been made by the President. DAFP believes it

is not prudent to seek legislative change to allow the Secretary

authority to delineate the areas of the U.S. eligible for DRAP as the

terms of the program have already expired. (2) Under Sec. 1439.602(b),

assistance is provided as reimbursement for expenses relating to

transportation assistance on or after January 10, 1997, specifically

related to providing access to existing feed supplies or to the

livestock and reimbursement for expenses relating to eligible livestock

feed purchased on or after January 10, 1997, and donation of CCC-owned

feed grains. There is no restriction on how the livestock owner uses

the reimbursed funds. However, according to Sec. 1439.8, CCC-owned feed

grains obtained under this part shall not be exchanged for any

ingredients, services, cash, credit, or any other thing of value. (3)

Under Sec. 1439.602(f), maximum assistance for snow removal is limited

to the lesser of the actual cost to move snow to gain access to the

available feed or stranded livestock, or the monetary value of

multiplying the number of livestock, by type and weight range, by the

allowance per day in pounds of corn, as determined by CCC, by $0.05 per

pound, by a feeding period of 15 days. There is no restriction on

whether the livestock owner or a contractor removes the snow.

3. This rule will modify part 1439 to add sections 1439.601 and

1439.602 and 1439.701 and 1439.702. These sections set out program

regulations for EFGDP and FLRP.

4. Based on the above determinations, the EFGDP and the FLRP are

authorized for the 1996 livestock feed crop year for livestock owners

who are determined eligible. Program payments will be contingent on the

availability of CCC funds.

List of Subjects in 7 CFR part 1439

Animal feeds, Disaster assistance, Livestock.

Accordingly, for the reasons set forth in the Preamble, the interim

rule published on January 22, 1997, (62 FR 3195) is adopted as final

with changes, as set forth below.

PART 1439--EMERGENCY ASSISTANCE PROGRAMS

1. The authority citation for part 1439 continues to read as

follows:

Authority: 15 U.S.C. 714b and 714c and 7 U.S.C. 1427a.

2. In section 1439.402, paragraph (a) is revised to read as

follows:

Sec. 1439.402 Assistance

(a) Assistance is for eligible livestock which are commingled,

stranded, and unidentified as to the livestock owner.

* * * * *

3. Sections 1439.601 and 602 are added as follows:

Subpart--Emergency Feed Grain Donation Program (EFGDP)

Sec. 1439.601 General statement.

(a)(1) This subpart sets forth the terms and conditions of the

EFGDP. This program may be authorized only for livestock owners in a

State or county, by the Deputy Administrator for Farm Programs (DAFP),

Farm Service Agency (FSA), upon a determination that a sudden livestock

feed emergency exists and a Presidential disaster declaration has been

issued for such a State or county as a result of snow and freezing and

related conditions. Under the program, CCC will provide to the

livestock owner whose access to livestock and normal livestock feed

supplies was adversely affected by natural disasters either or both of

the following:

(i) Reimbursement for expenses relating to eligible livestock feed

purchases and transportation assistance;

(ii) CCC-owned feed grains on a donation basis.

(2) Assistance may be given to other persons or entities (public

and private), who certify that the eligible livestock were, or are, in

danger of perishing without their immediate assistance. This program

shall terminate at the conclusion of the 1996 livestock feed crop year.

(b) The EFGDP is authorized for the 1996 livestock feed crop year

when both of the following apply:

(1) The FSA State committee determines and documents a livestock

feed emergency on a county by county basis, when the danger of eligible

livestock perishing as a result of snow and freezing and related

conditions exists in the county, and

(2) The livestock owner, or other person or entities (public or

private) certify that the eligible livestock were, or are, in danger of

perishing without immediate assistance and that normal livestock feed

supplies were, or are, inaccessible.

Sec. 1439.602 Assistance.

(a) Assistance is for eligible livestock which are in danger of

perishing without immediate assistance. Eligible livestock includes

beef and dairy cattle; buffalo and beefalo; equine animals, including

horses, mules, donkeys; sheep; goats; and swine.

[[Page 44393]]

(b) Assistance may be provided as any of the following:

(1) Reimbursement for expenses relating to transportation

assistance on or after January 10, 1997, specifically related to

providing access to existing feed supplies or to the livestock;

(2) Reimbursement for expenses relating to eligible livestock feed

purchased on or after January 10, 1997; or

(3) Donation of CCC-owned feed grains.

(c) Requests for reimbursement for transportation assistance and

eligible livestock feed purchases shall include verifiable sales

receipts, service agreements, or any other documentation as determined

by the FSA county committee.

(d) Individuals who provide assistance to livestock which is in

danger of perishing without immediate assistance or where the owner of

the livestock is not known, shall only receive CCC-owned feed grain on

a donation basis, not to exceed the amount of feed grain actually used.

(e) Assistance shall not exceed the monetary value of multiplying

the number of livestock, by type and weight range, by the allowance per

day in pounds of corn as determined in accordance with Sec. 1439.3, by

$0.05 per pound, by a feeding period of 15 days.

(f) For snow removal, the maximum assistance shall be the lesser

of:

(1) Actual cost to move snow to gain access to the available feed

or stranded livestock; or

(2) The maximum assistance calculated in accordance with paragraph

(e) of this section.

(g) For feed purchases, the maximum assistance shall be the lesser

of:

(1) The monetary value of purchased eligible feed; or

(2) The maximum assistance calculated in accordance with paragraph

(e) of this section.

(h) The maximum assistance for donated grain is a 15 day feed

allowance calculated in accordance with paragraph (e) of this section.

4. Sections 1439.701 and 1439.702 are added as follows:

Subpart--Foundation Livestock Relief Program (FLRP)

Sec. 1439.701 General statement.

(a) This subpart sets forth the terms and conditions of the FLRP.

This program may be authorized by DAFP, upon a determination that

foundation livestock owners have been forced to feed excessive

quantities of livestock feed and a Presidential disaster declaration

has been issued for the State or county as a result of snow and

freezing and related conditions. Under the program, CCC will provide

cash reimbursement for eligible livestock feed purchases to the

livestock owner and other persons or entities (public and private),

whose usage of normal livestock feed supplies was adversely affected by

natural disasters. Cost-share assistance is provided at 30 percent of

the lesser of actual eligible livestock feed costs shown on acceptable

feed purchase documents or the calculated feed allowance for eligible

livestock for a period not to exceed 30 days. This program shall

terminate at the conclusion of the 1996 livestock feed crop year.

(b) As determined by DAFP, FLRP may be authorized for any length of

time not to exceed a 30-day feeding period. Subsequent feeding periods

of the same or different duration may be designated by DAFP for the

same or related disaster conditions.

Sec. 1439.702 Assistance.

(a) Assistance is limited to livestock owners who have eligible

foundation or replacement livestock, as determined by DAFP. Eligible

livestock includes beef and dairy cattle, buffalo and beefalo, sheep,

goats, swine, and equine animals used to raise livestock that will be

used for human consumption or in the production of food or fiber on the

owner's farm.

(b) Assistance shall be provided as a 30 percent cost-share payment

based on the lesser of:

(1) Eligible livestock feed purchased and received during the

period designated by DAFP, or

(2) The calculated feed allowance for the eligible livestock for up

to 30 days, as determined by DAFP.

(c) Requests for reimbursement of eligible livestock feed purchases

shall include verifiable sales receipts and any other documentation the

FSA county committee requires.

(d) Assistance shall not exceed the monetary value of multiplying

the number of livestock, by type and weight range, by the allowance per

day in pounds of corn as determined in accordance with Sec. 1439.3, by

$0.05 per pound, by the number of days in the feeding period designated

by DAFP.

Signed at Washington, DC, on August 14, 1997.

Bruce R. Weber,

Acting Executive Vice President, Commodity Credit Corporation.

[FR Doc. 97-22128 Filed 8-20-97; 8:45 am]

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