1999 Livestock Indemnity Program; 1998 Single-Year and Multi-Year Crop Loss Disaster Assistance Program

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1439 and 1477

RIN 0560-AF82

1999 Livestock Indemnity Program; 1998 Single-Year and Multi-Year

Crop Loss Disaster Assistance Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Interim rule and request for comments.

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SUMMARY: This interim rule sets forth the terms and conditions for the

1999 Livestock Indemnity Program, authorized by the 1999 Emergency

Supplemental Appropriations Act. The program will provide monetary

assistance to producers for livestock losses due to natural disasters

occurring between May 2, 1998, and May 21, 1999. Also, this rule sets

out a clarifying change regarding offsets and withholdings from

payments made in the crop disaster program operated under 7 CFR Part

1477.

DATES: Effective November 1, 1999. Comments on this rule and

information collection must be received by January 3, 2000, in order to

be assured of consideration.

ADDRESSES: Comments should be mailed to: Diane Sharp, Director,

Production, Emergencies, and Compliance Division, Farm Service Agency

(FSA), United States Department of Agriculture, STOP 0517, 1400

Independence Avenue, SW, Washington, DC 20250-0517, telephone (202)

720-7641, or send by e-mail to: [email protected].

Comments may be inspected in the Office of the Director, PECD, FSA,

USDA, Room 4752 South Building, Washington, DC, between 7:30 a.m. and

4:30 p.m., Monday through Friday, except holidays.

FOR FURTHER INFORMATION CONTACT: Rebecca Davis at (202) 720-7641.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This interim rule is issued in conformance with Executive Order

12866 and has been determined to be significant and therefore 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 the Commodity Credit Corporation (CCC)

is not 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

This rule has been reviewed in accordance with Executive Order

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

such laws are inconsistent with the provisions of this rule. Before any

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

administrative remedies must be exhausted.

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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 Reform Act of 1995

This rule contains no Federal mandates under the regulatory

provisions of Title II of the Unfunded Mandates Reform Act of 1995

(UMRA) for State, local, and tribal governments or the private sector.

Thus, this rule is not subject to the requirements of sections 202 and

205 of UMRA.

Paperwork Reduction Act

Title: Livestock Indemnity Program

OMB Control Number: 0560-0179

Type of Request: Reinstatement and revision of a previously

approved information collection.

Abstract: The information collected under OMB Control Number 0560-

0179, as identified above, is all that is currently demanded by FSA to

meet administrative and statutory requirements for the Livestock

Indemnity Program. Information collected from livestock producers will

be used by CCC to approve or determine the eligibility and amount of

assistance in accordance with this subpart. The CCC considers the

information collected essential to prudent eligibility and assistance

determinations. Failure to make sound decisions in providing livestock

indemnity program payments would result in inaccurate payments to

livestock producers and losses to the Government.

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average 2 hours per response.

Respondents: Livestock Producers

Estimated number of Respondents: 3,600

Estimated Number of Responses per Respondent: 2

Estimated Total Annual Burden on Respondents: 7,200 hours

Proposed topics for comment include: (a) Whether the collection of

information is necessary for the proper performance of the functions of

the agency, including whether the information will have practical

utility; (b) the accuracy of the agency's estimate of burden including

the validity of the methodology and assumptions used; (c) ways to

enhance the quality, utility, and clarity of the information collected;

or (d) ways to minimize the burden of the collection of the information

on those who are to respond, including through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology. Comments should be

sent to the Desk Officer for Agriculture, Office of Information and

Regulatory Affairs, Office of Management and Budget, Washington, DC

20503 and to Diane Sharp, Director, Production, Emergencies, and

Compliance Division, Farm Service Agency, United States Department of

Agriculture, STOP 0517, 1400 Independence Avenue, SW, Washington, DC.

20250-0517, telephone (202) 720-7641.

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.

Background

Livestock Indemnity Program

This interim rule sets forth regulations that implement the

livestock indemnity provisions contained in the 1999 Emergency

Supplemental Appropriations Act (``1999 Act''), enacted on May 21,

1999. The 1999 Act appropriated $3,000,000 to the Secretary of

Agriculture to implement a livestock indemnity program for qualifying

livestock losses occurring in the period beginning on May 2, 1998, and

ending on May 21, 1999. The losses must be due to natural disasters

declared by the President or Secretary of Agriculture. The 1999 Act

specifies that to qualify the declaration request must have been

submitted by May 21, 1999, and that, to the extent practicable,

benefits must be provided in a manner similar to that used for the

livestock indemnity programs carried out by the Secretary during 1997

and 1998. Also, the 1999 Act specifies that benefits under the new

program will be subject, to the extent practicable, to the gross income

means test and payment limitations of the 1996-crop Disaster Reserve

Assistance Program (DRAP). Under the 1996 DRAP, no person could receive

more than $50,000 in payments and no person could receive any payment

at all if that person's annual gross revenue exceeded $2.5 million.

Rules for the 1999 livestock indemnity program will be codified in

7 CFR part 1439.301, et seq., which was recently reorganized by a rule

published on March 19, 1999, 64 FR 13497. Consistent with the operation

of the 1997 and 1998 livestock indemnity programs, payment rates will

vary by class of livestock involved and the payment rate will be a

percentage of the assigned market price for the class. Should eligible

claims exceed the available funds, the claims will, to the extent

practicable, be prorated. Losses will be compensable only to the extent

that they were caused by the disaster and were in excess of normal

losses for the operation for the particular livestock category

involved.

Crop Disaster Regulations

In addition, this rule makes slight changes to the crop loss

disaster regulations that were published on April 15, 1999, at 64 FR

18553. The rules for that program are codified in 7 CFR part 1477. The

changes are intended to make it clear that the agency can take

withholding action based on a request by another agency and to insure

that there is maximum flexibility with respect to offset and

withholding issues to insure that funds are not released in a manner

which would be contrary to the public interest, as determined by the

Secretary. On a related issue, the rule would also add a reference to

28 U.S.C. 2301 to waive a prohibition on eligibility for federal

benefits by persons with a judgment lien against their property under

the crop loss disaster program (although such a payment might be

applied against their outstanding debt to the government).

Effective Date of the Rule

Because the livestock indemnity program was provided for by

emergency legislation and is designed to provide emergency relief to

farmers, it has been determined that to delay the effective date of the

rule, and hence the date on which payments could be made, pending

further procedure, including any Congressional review as might

otherwise be required by the Small Business Regulatory Enforcement Act,

would be contrary to the public interest. Accordingly, with respect to

the portion of the rule dealing with the livestock indemnity program,

it has been determined that this rule should be effective on

publication. This same determination had been made with respect to

changes in the offset and withholding provisions of part 1477 as those

changes involve claims adjustments for current debts which are owing or

may be owing to the government. To the extent that there is a change in

the adopted rule for part

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1477 as a result of the comments, the claims could be repaid or

adjusted as needed.

List of Subjects for 7 CFR Part 1439

Animal feed, Disaster assistance, Livestock, Reporting and

Recordkeeping Requirements.

Accordingly, 7 CFR Chapter XIV is amended as follows:

PART 1439--EMERGENCY LIVESTOCK ASSISTANCE

1. The Authority citation for part 1439 is amended to read as

follows:

Authority: 7 U.S.C 1427a; 15 U.S.C. 714b, and 714c; Sec. 1102

and 1103, Pub. L. 105-277; Pub. L. 106-31.

2. Part 1439 is amended by adding Subpart--Livestock Indemnity

Program to read as follows:

Subpart--Livestock Indemnity Program

Sec.

1439.301 Applicability

1439.302 Administration

1439.303 Definitions

1439.304 Sign-up period

1439.305 Proof of loss

1439.306 Indemnity benefits

1439.307 Availability of funds

1439.308 Limitations on payments

Sec. 1439.301 Applicability

This subpart sets forth the terms and conditions applicable to the

1999 Livestock Indemnity Program. Benefits will be provided under this

subpart only for losses (deaths) of livestock occurring in the period

from May 2, 1998 through May 21, 1999, as a result of a natural

disaster in a county included in the geographic area covered by a

qualifying natural disaster declaration issued by the President of the

United States or the Secretary of Agriculture of the United States.

Losses in contiguous counties, or any other counties not the subject of

the declaration, will not be compensable. To be a qualifying

declaration, the declaration must have been issued upon a request

submitted prior to May 21, 1999. Producers will be compensated by

livestock category as established by CCC. The producer's loss must be

the result of the declared disaster and in excess of the normal losses,

established by CCC, for the producer's livestock operation.

Sec. 1439.202 Administration

Where circumstances preclude compliance with Sec. 1439.304 due to

circumstances beyond the applicant's control, the county or State

committee may request that relief be granted by the Deputy

Administrator under this section. In such cases, except for statutory

deadlines and other statutory requirements, the Deputy Administrator

may, in order to more equitably accomplish the goals of this subpart,

waive or modify deadlines and other program requirements if the failure

to meet such deadlines or other requirements does not adversely affect

operation of the program.

Sec. 1439.303 Definitions

The definitions set forth in this section shall be applicable for

all purposes of administering this subpart. The terms defined in

Sec. 1439.3 shall also be applicable, except where those definitions

conflict with the definitions set forth in this subpart. The following

terms shall have the following meanings:

Application means the Form CCC-661, Livestock Indemnity Program

Application.

Livestock means beef and dairy cattle, sheep, goats, swine, poultry

(including egg-producing poultry), equine animals used for food or in

the production of food and buffalo and beefalo when maintained on the

same basis and in the same manner as beef cattle maintained for

commercial slaughter.

Livestock producer means one who possesses a beneficial interest in

eligible livestock as defined in this subpart, has a financial risk in

the eligible livestock, and is a citizen of, or legal resident alien

in, the United States. A farm cooperative, private domestic

corporation, partnership, or joint operation in which a majority

interest is held by members, stockholders, or partners who are citizens

of, or legal resident aliens in, the United States, if such

cooperative, corporation, partnership, or joint operation owns or

jointly owns eligible livestock or poultry, will be considered

livestock producers. Any Native American tribe (as defined in section

4(b) of the Indian Self-Determination and Education Assistance Act and

Education Assistance Act); any Native American organization or entity

chartered under the Indian Reorganization Act or chartered under the

Indian Reorganization Act; any tribal organization under the Indian

Self-Determination and Education Assistance Act; and any economic

enterprise under the Indian Financing Act of 1974 will be considered

livestock producers.

Sec. 1439.304 Sign-up period

A request for benefits under this subpart must be submitted to the

Commodity Credit Corporation (CCC) at the Farm Service Agency county

office serving the county where the livestock loss occurred. All

applications and supporting documentation must be filed in the county

office prior to the close of business on October 31, 1999, or such

other date as established by CCC.

Sec. 1439.305 Proof of loss

(a) Livestock producers must, in accordance with instructions

issued by the Deputy Administrator, provide adequate proof that the:

(1) Loss of eligible livestock occurred in an eligible county in

the area of Presidential designation or Secretarial declaration;

(2) That the death of the eligible livestock was reasonably related

to the recognized natural disaster; and

(3) The death of the livestock occurred between May 2, 1998, and

May 21, 1999, inclusive.

(b) The livestock producer shall provide any available supporting

documents that will assist the county committee, or as requested by the

county committee, in verifying the loss and quantity of eligible

livestock that perished in the natural disaster. Examples of supporting

documentation include, but are not limited to: Purchase records,

veterinarian receipts, bank loan papers, rendering truck certificates,

Federal Emergency Management Agency and National Guard records, auction

barn receipts, and any other documents available to confirm the

presence of the livestock and subsequent losses. Certifications by

third parties or the producer and other such documentation as the

county committee determines to be necessary in order to verify the

information provided by the producer may be submitted, subject to

review and approval by the county committee. Third-party verifications

may be accepted only if the producer certifies in writing that there is

no other documentation available. Third-party verification must be

signed by the party that is verifying the information. Failure to

provide documentation that is satisfactory to the county committee will

result in the disapproval of the application by the county committee.

(c) Livestock producers shall certify the accuracy of the

information provided. All information provided is subject to

verification and spot checks by the CCC. A failure to provide

information requested by the county committee or by agency officials is

cause for denial of any application filed under this part.

Sec. 1439.306 Indemnity benefits

(a) Livestock indemnity payments for losses of eligible livestock

as determined by CCC are authorized to be made to livestock producers

who file an application for the specific livestock

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category in accordance with instructions issued by the Deputy

Administrator, if the:

(1) Livestock producer submits an approved proof of loss in

accordance with Sec. 1439.305; and

(2) County or State committee determines that because of an

eligible disaster condition the livestock producer had a loss in the

specific livestock category in excess of the normal mortality rate

established by CCC, based on the number of animals in the livestock

category that were in the producer's inventory at the time of the

disaster.

(b) If the number of losses in the animal category exceeds the

normal mortality rate established by CCC for such category, the loss of

livestock that shall be used in making a payment shall be the number of

animal losses in the animal category that exceed the normal mortality

threshold established by CCC.

(c) Payments shall be calculated by multiplying the national

payment rate for the livestock category as determined by CCC, by the

number of qualifying animals determined under (b) of this section.

Adjustments, if necessary, shall apply in accordance with

Sec. 1439.307.

(d) Payments which are earned by a person under the livestock

indemnity program may be assigned in accordance with the provisions of

part 1404 of this chapter.

Sec. 1439.307 Availability of funds

In the event that the total amount of eligible claims submitted

under this subpart exceeds the $3,000,000 appropriation, then each

payment shall be reduced by a uniform national percentage. Such payment

reductions shall be applied after the imposition of applicable payment

limitation provisions.

Sec. 1439.308 Limitations on payments

No person, as determined in accordance with part 1400 of this

chapter, may receive benefits under this subpart in excess of $50,000

for any year and no person may receive payments under this subpart for

losses for the producer has received or will receive compensation under

any other program provided for in this part. Payments under this part

for other losses shall not, however, reduce the amount payable under

this part. As provided for in Sec. 1439.11, no person shall be eligible

to receive any payment under this subpart if such person's annual gross

revenue exceeds $2.5 million.

PART 1477--1998 SINGLE-YEAR AND MULTI-YEAR CROP LOSS DISASTER

ASSISTANCE PROGRAM

3. The authority citation for part 1477 continues to read as

follows:

Authority: Sec. 1101 and 1102 of Pub. L. 105-277, 112 Stat.

2681; 15 U.S.C 714b and 714c.

Sec. 1477.109 [Amended]

4. Section 1477.109 is amended by:

a. Removing the phrase ``in accordance with Sec. 1403.8'' in

paragraph (a) and adding the phrase ``using the standard set forth in

Sec. 1403.8(b) (1)-(7)'' in its place,

b. Removing the phrase ``will be made'' in paragraph (k) and adding

the phrase ``may be made'' in its place,

c. Removing the second sentence of paragraph (k) and,

d. By adding a new paragraph (m) to read as follows:

* * * * *

(m) For the purposes of 28 U.S.C. 3201(e), the restriction on

receipt of funds or benefits under this program is waived; however,

this waiver shall not preclude withholding or offsetting where it is

deemed by the Deputy Administrator to be appropriate.

Signed at Washington, DC, on October 20, 1999.

Keith Kelly,

Executive Vice President, Commodity Credit Corporation.

[FR Doc. 99-28369 Filed 10-29-99; 8:45 am]

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