1998 Single-Year and Multi-Year Crop Loss Disaster Assistance Program

Federal RegisterApr 15, 1999

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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1477

RIN 0560-AF75

1998 Single-Year and Multi-Year Crop Loss Disaster Assistance

Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the terms and conditions of the

1998 Single-Year and Multi-Year Crop Loss Disaster Assistance Program

(CLDAP). The purpose of the program is to provide payments to eligible

producers who suffered losses due to an eligible disaster in crop year

1998, or in at least 3 of the crop years from 1994 through 1998.

DATES: Effective April 15, 1999.

FOR FURTHER INFORMATION CONTACT: Rebecca Davis, (202) 720-9882.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule is issued in conformance with Executive Order 12866

and has been determined to be economically significant and therefore

has been reviewed by the Office of Management and Budget (OMB).

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this rule because the Farm Service Agency (FSA) and the

Commodity Credit Corporation (CCC) are not required by 5 U.S.C. 553 or

any other provision of law to publish a notice of proposed rule making

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.

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 and Small Business Regulatory Enforcement

Fairness Act

The provisions contained in this rule are authorized by the

Agriculture, Rural Development, Food and Drug Administration and

Related Agencies Appropriations Act, 1999 (``1999 Act'') (Pub. L. 105-

277, 112 Stat.2681). Section 1133 of the 1999 Act provides that such

rules shall be issued as soon as practicable and without regard to: (1)

the notice and comment provisions of section 553 of title 5, United

States Code; (2) the Statement of Policy of the Secretary of

Agriculture effective July 24, 1971 (36 FR 13804), relating to notices

of proposed rulemaking and public participation in rulemaking; and (3)

chapter 35 of title 44, United States Code (commonly known as the

``Paperwork Reduction Act''). Accordingly, these regulations are being

issued as a final rule without a notice and comment period, and the

forms and the collection of information do not require prior OMB

approval.

In addition, this rule was determined to be a major rule as defined

in the Small Business Regulatory Enforcement Act of 1996 (SBREFA).

Section 1133 of the 1999 Act provides that these regulations shall use

the authority provided under section 808 of SBREFA that allows an

agency to promulgate a rule at such time as it determines necessary,

notwithstanding the Congressional review of major regulations provided

for in section 801 of SBREFA. It is hereby determined that delaying

this rule would be contrary to the public interest because of the need

for expeditious implementation of the rule as expressed in the text of

the 1999 Act. Accordingly, this rule is effective upon publication.

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

This final rule adds 7 CFR part 1477 setting forth the terms and

conditions under which producers who suffered crop losses as a result

of natural disaster may apply for benefits to compensate for their

losses for the crop year 1998 or for at least 3 of the years from 1994

through 1998 as authorized by the 1999 Act.

Producers who seek benefits under this subpart must file an

application for benefits during the sign-up period, February 1, 1999,

through April 9, 1999, or other ending date as determined by the Deputy

Administrator. False certification carries strict penalties; and the

Department will spot-check and validate applications. Because funding

for the program is limited, national factors for reducing payments will

be determined after the end of sign up, if necessary, to ensure that

total outlays do not exceed the amount of funds made available under

this program.

The rules set a payment limit on the amount of benefits that can be

received and limit the multi-year benefits to ``producers'' with the

qualifying history

[[Page 18554]]

for which purposes changes in the farming operation will be considered

to involve different producers. This will allow the history

determinations to reflect the actual composition of farms during the

history period, consistent with the purposes of the 1999 Act. It will

at the same time permit the agency to accurately verify losses.

Further, as to the multi-year program, the rules build on existing

programs which have identified the general Federal policy on when crop

losses should be covered. This, as well, will permit the verification

of losses. Existing policy has emphasized the importance of crop

insurance where such insurance is available and in cases of non-

insurable crops (those for which Federal crop insurance is not

available) has allowed only for coverage in limited instances in which

there is a verified area-wide loss. However, these programs have never

provided full relief and this rule will partially alleviate the

shortfalls in those Federal programs for farmers who have had long-term

losses. The Secretary has been given a wide discretion in the

implementation of the 1999 Act and these rules will be consistent with

existing Federal policies and with the understanding of the desire of

Congress to attempt to alleviate the shortcomings in current programs.

These rules will, in addition, allow relief to be made available

quickly, and effectively, within the limits of the funding available

for this program.

List of Subjects in 7 CFR Part 1477

Disaster assistance, emergency assistance, reporting and

recordkeeping requirements.

For the reasons set forth in the preamble, a new 7 CFR part 1477 is

added to subchapter B of 7 CFR Chapter XIV to read as follows:

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

ASSISTANCE PROGRAM

Subpart A--General Provisions

Sec.

1477.101 Applicability.

1477.102 Administration.

1477.103 Definitions.

1477.104 Producer eligibility.

1477.105 Time for filing application.

1477.106 Limitation on payments and other benefits.

1477.107 Crop insurance premium discounts.

1477.108 Requirement to purchase crop insurance.

1477.109 Miscellaneous provisions.

1477.110 Matters of general applicability.

Subpart B--1998 Single-Year Crop Loss Disaster Assistance Program

1477.201 Single-year crop losses.

1477.202 Calculating rates and yields.

1477.203 Production losses, producer responsibility.

1477.204 Determination of production.

1477.205 Calculation of acreage for crop losses other than

prevented planted.

1477.206 Calculation of prevented planted acreage.

1477.207 Quality adjustments to production.

1477.208 1999 crop losses.

1477.209 Value loss crops.

1477.210 Other Specialty crops.

Subpart C--Multi-Year Crop Loss Disaster Assistance Program

1477.300 Multi-year crop losses.

Authority: Sec. 1101 and 1102 of Pub. L. 105-277, 112 Stat.2681;

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

Subpart A--General Provisions

Sec. 1477.101 Applicability.

(a) This part sets forth the terms and conditions applicable to the

1998 Crop Loss Disaster Assistance Program. Under sections 1101 and

1102 of the Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act, 1999 (``1999

Act'') (Pub. L. 105-277, 112 Stat. 2681), the Secretary of Agriculture

will make disaster payments available to certain producers who have

incurred losses in quantity or quality of their crops due to disasters.

Producers will be able to receive benefits under this part for losses

to 1998 crops, or losses occurring in at least 3 years for which

payments were received for the period 1994 through 1998, as determined

by the Secretary. Accordingly, this part contains three subparts.

Subpart A contains general provisions applicable to both the single-

year and multi-year aspects of the 1998 Crop Loss Disaster Assistance

Program, which are contained in Subparts B and C, respectively.

(b) In accordance with section 1102(g)(2) of the 1999 Act, the

Secretary has authorized use of a portion of the funds authorized by

the Act to establish crop insurance premium discounts for the 1999 crop

year (2000 crop year for citrus fruit, avocados in California, and

macadamia nuts in Hawaii). This part establishes provisions and

requirements for implementation of those discounts.

Sec. 1477.102 Administration.

(a) The program will be administered under the general supervision

of the Executive Vice President, Commodity Credit Corporation (CCC),

and shall be carried out in the field by State and county Farm Service

Agency (FSA) committees.

(b) State and county FSA committees and representatives do not have

the authority to modify or waive any of the provisions of this part.

part which has not been taken by a county FSA committee. The State FSA

committee shall also:

(1) Correct or require a county FSA committee to correct any action

taken by such county FSA committee which is not in accordance with this

part; and

(2) Require a county FSA committee to withhold taking or reverse

any action which is not in accordance with this part.

(d) No delegation herein to a State or county FSA committee shall

prevent the Deputy Administrator from determining any question arising

under the program or from reversing or modifying any determination made

by a State or county FSA committee.

(e) The Deputy Administrator may authorize the State and county

committees to waive or modify deadlines or other program requirements

in cases where lateness or failure to meet such other requirements does

not adversely affect the operation of the program or when, in his

discretion, it is determined that an exception should be allowed to

provide for a more equitable distribution of benefits consistent with

the goals of the program provided for in this part.

Sec. 1477.103 Definitions.

The definitions in this section shall be applicable for all

purposes of administering the 1998 Crop Loss Disaster Assistance

Program and all subparts of this part.

Actual production means the total quantity of the crop appraised,

harvested or which could have been harvested as determined by the

county or State FSA committee in accordance with instructions issued by

the Deputy Administrator.

Additional coverage means with respect to insurance plans of crop

insurance providing a level of coverage equal to or greater than 65

percent of the approved yield indemnified at 100 percent of the

expected market price, or a comparable coverage as established by FCIC.

Appraised production means production determined by FSA, RMA, FCIC,

a company reinsured by FCIC, or other appraiser acceptable to CCC, that

was unharvested but which was determined to reflect the crop's yield

potential at the time of appraisal.

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Approved yield means the amount of production per acre, computed in

accordance with FCIC's Actual Production History Program (7 CFR part

400, subpart G) or for crops not included under 7 CFR part 400, subpart

G, the yield used to determine the guarantee. For crops covered under

the Noninsured Crop Disaster Assistance program, the approved yield is

established according to part 1437 of this title.

Aquaculture means the reproduction and rearing of aquatic species

in controlled or selected environments, including, but not limited to,

ocean ranching (except private ocean ranching of Pacific salmon for

profit in those States where such ranching is prohibited by law).

Aquaculture facility means any land or structure including, but not

limited to, a laboratory, hatchery, rearing pond, raceway, pen,

incubator, or other equipment used in aquaculture.

Aquacultural species means aquacultural species as defined in part

1437 of this chapter.

CCC means the Commodity Credit Corporation.

Catastrophic risk protection means the minimum level of coverage

offered by FCIC.

Catastrophic Risk Protection Endorsement means the relevant part of

the Federal crop insurance policy that contains provisions of insurance

that are specific to catastrophic risk protection.

Control county means: for a producer with farming interests in only

one county, the county FSA office in which the producer's farm(s) is

administratively located; for a producer with farming interests which

are administratively located in more than one county FSA office, the

county FSA office designated by FSA to control the payments received by

the producer.

County committee means the local FSA county committee.

Crop of economic significance means a crop with a value equal to

ten percent (10%) or more of the total value of the producer's share of

all crops grown in the county for the relevant crop year. However, an

amount will not be considered economically significant if the potential

liability under the Catastrophic Risk Protection Endorsement is equal

to or less than the administrative fee required with respect to such

insurance for the crop, or, if applicable, the crop type or variety.

Crop insurance means an insurance policy reinsured by the Federal

Crop Insurance Corporation under the provisions of the Federal Crop

Insurance Act, as amended.

Cropland means cropland as defined in part 718 of this title.

Crop year means: for insured and uninsured crops, the crop year as

defined according to the applicable crop insurance policy; and for

noninsurable crops, the year harvest normally begins for the crop,

except the crop year for all aquacultural species and nursery crops

shall mean the period from October 1 through the following September

30, and the crop year for purposes of calculating honey and tree losses

shall be the period running from January 1 through the following

December 31.

Deputy Administrator means the Deputy Administrator for Farm

Programs, Farm Service Agency (FSA), or a designee.

Disaster means damaging weather, including drought, excessive

moisture, hail, earthquake, freeze, tornado, hurricane, typhoon,

volcano, excessive wind, excessive heat, or any combination thereof;

and shall also include a related condition and all eligible loss

conditions, excluding price risk for 1998 single-year losses, as

determined by the crop insurance policy, if RMA has made an eligible

loss determination.

Double-cropped means a condition in which a subsequent crop of a

different commodity is planted on the same acreage as the first crop

within the same crop year if the county committee determines both crops

were or could have been carried to harvest.

End use means the purpose for which the harvested crop is used,

such as fresh, processed or juice.

Entity means any legal organization or joint venture of any kind,

including, but not limited to, corporations, trusts and partnerships.

Expected market price (price election) means the price per unit of

production (or other basis as determined by FCIC) anticipated during

the period the insured crop normally is marketed by producers. This

price will be set by FCIC before the sales closing date for the crop.

The expected market price may be less than the actual price paid by

buyers if such price typically includes remuneration for significant

amounts of post-production expenses such as conditioning, culling,

sorting, packing, etc.

Expected production means, for an agricultural unit, the historic

yield multiplied by the number of planted or prevented acres of the

crop for the unit.

FCIC means the Federal Crop Insurance Corporation, a wholly owned

Government Corporation within USDA.

Final planting date means the date established by RMA for insured

and uninsured crops by which the crop must be initially planted in

order to be insured for the full production guarantee or amount of

insurance per acre. For noninsurable crops, the final planting date is

the end of the planting period for the crop as determined by CCC.

Flood prevention means with respect to aquacultural species,

placing the aquacultural facility in an area not prone to flood; in the

case of raceways, providing devices or structures designed for the

control of water level; and for nursery crops, placing containerized

stock in a raised area above expected flood level and providing

draining facilities, such as drainage ditches or tile, gravel, cinder

or sand base.

FSA means the Farm Service Agency.

Good nursery growing practices means utilizing flood prevention,

growing media, fertilization to obtain expected production results,

irrigation, insect and disease control, weed, rodent and wildlife

control, and over winterization storage facilities.

Growing media means:

(1) For aquacultural species, media that provides nutrients

necessary for the production of the aquacultural species and protects

the aquacultural species from harmful species or chemicals; and

(2) For nursery crops, media designed to prevent ``root rot'' and

other media-related problems through a well-drained media with a

minimum 20 percent air pore space and pH adjustment for the type of

plant produced.

Harvested means: For insured and uninsured crops, harvested as

defined according to the applicable crop insurance policy; for

noninsurable single harvest crops, that a crop has been removed from

the field, either by hand or mechanically, or by grazing of livestock;

for noninsurable crops with potential multiple harvests in one year or

harvested over multiple years, that the producer has, by hand or

mechanically, removed at least one mature crop from the field; and for

mechanically harvested noninsurable crops, that the crop has been

removed from the field and placed in a truck or other conveyance,

except hay is considered harvested when in the bale, whether removed

from the field or not. Grazed land will not be considered harvested for

the purpose of determining an unharvested or prevented planting payment

factor.

Historic yield means, for a unit, the higher of the county average

yield or the producer's approved yield.

Individual stand means, with respect to trees, an area of eligible

trees that are tended by an eligible producer as a single operation,

whether or not the trees are planted in the same field or

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similar location, as determined by the county committee. Eligible trees

not in the same field or similar location may be considered to be

separate individual stands if county committee determines that there

are significantly differing levels of loss susceptibility.

Insurance is available means when crop information is contained in

RMA's county actuarial documents for a particular crop and a policy can

be obtained through the RMA system, except if the Group Risk Plan of

crop insurance was the only plan of insurance available for the crop in

the county in the 1998 crop year, insurance is considered not available

for that crop.

Insured crops means those crops covered by crop insurance pursuant

to 7 CFR Chapter IV and for which the producer purchased either the

catastrophic or buy-up level of crop insurance so available.

Intended crop means an insured crop which the producer timely

indicates for RMA insurance purposes as the crop the producer intends

to produce.

Limited coverage means plans of crop insurance offering coverage

that is equal to or greater than 50 percent of the approved yield

indemnified at 100 percent of the expected market price, or a

comparable coverage as established by FCIC, but less than 65 percent of

the approved yield indemnified at 100 percent of the expected market

price, or a comparable coverage as established by FCIC.

Multi-use crop means a crop intended for more than one end use

during the calendar year such as grass harvested for seed, hay, and/or

grazing.

Multiple planting means the planting for harvest of the same crop

in more than one planting period in a crop year on different acreage.

Noninsurable crops means those crops for which crop insurance was

not available.

Normal mortality means the percentage of damaged or dead trees in

the individual stand or the percentage of dead aquacultural species

that would normally occur during the crop year.

Operator means operator as defined in part 718 of this title.

Palmer Drought Severity Index means the meteorological index

calculated by the National Weather Service to indicate prolonged and

abnormal moisture deficiency or excess.

Pass-through funds means revenue that goes through, but does not

remain in, a person's account, such as money collected by an auction

house for the sale of livestock which is subsequently paid to the

sellers of the livestock, less a commission withheld by the auction

house.

Person means person as defined in part 1400 of this chapter, and

all rules with respect to the determination of a person found in that

part shall be applicable to this part. However, the determinations made

in this part in accordance with 7 CFR part 1400, subpart B, Person

Determinations, shall also take into account any affiliation with any

entity in which an individual or entity has an interest, irrespective

of whether or not such entities are considered to be engaged in

farming.

Planted acreage means land in which seed, plants, or trees have

been placed, appropriate for the crop and planting method, at a correct

depth, into a seedbed that has been properly prepared for the planting

method and production practice normal to the area as determined by the

county committee.

Producer means producer as defined in part 718 of this title.

Related condition means with respect to disaster, a condition

related to a disaster that causes deterioration of a crop such as

insect infestation, plant disease, or aflatoxin that is accelerated or

exacerbated naturally as a result of damaging weather occurring prior

to or during harvest as determined in accordance with instructions

issued by the Deputy Administrator.

Reliable production records means evidence provided by the producer

that is used to substantiate the amount of production reported when

verifiable records are not available, including copies of receipts,

ledgers of income, income statements of deposit slips, register tapes,

invoices for custom harvesting, and records to verify production costs,

that are determined acceptable by the county committee.

Repeat crop means with respect to a producer's production, a

commodity that is planted or prevented from being planted in more than

one planting period on the same acreage in the same crop year.

RMA means the Risk Management Agency.

Salvage value means the dollar amount or equivalent received by the

producer for the quantity of the commodity that cannot be marketed or

sold in any recognized market for the crop.

Secondary use means the harvesting of a crop for a use other than

the intended use, except for crops with intended use of grain, but

harvested as silage, ensilage, cobbage, hay, cracked, rolled, or

crimped.

Secondary use value means the value determined by multiplying the

quantity of secondary use times the CCC-established price for this use.

Secretary means the Secretary of the United States Department of

Agriculture.

Substitute crop means an alternative crop whose sales closing date

has passed and that is planted on acreage that is prevented from being

planted to an intended crop or where an intended crop is planted and

fails.

Trees means maple trees for syrup, or orchard trees grown for

commercial production of fruits or nuts.

Uninsured crops means those crops for which Federal crop insurance

was available, but the producer did not purchase insurance.

Unit means, unless otherwise determined by the Deputy

Administrator, basic unit as described in part 457 of this title which,

for ornamental nursery production shall include all eligible plant

species and sizes.

Unit of measure means:

(1) For all insured and uninsured crops, the FCIC-established unit

of measure;

(2) For aquacultural species, a standard unit of measure such as

gallons, pounds, inches or pieces, established by the State committee

for all aquacultural species or varieties;

(3) For Christmas trees, a plant or tree;

(4) For turfgrass sod, a square yard;

(5) For maple sap, a gallon; and

(6) For all other crops, the smallest unit of measure which lends

itself to the greatest level of accuracy with minimal use of fractions,

as determined by the State committee.

United States means all 50 States of the United States, the

Commonwealth of Puerto Rico, the Virgin Islands and Guam.

USDA means United States Department of Agriculture.

Value loss crop will have the meaning assigned in part 1437 of this

chapter.

Verifiable production records means evidence that is used to

substantiate the amount of production reported and that can be verified

by CCC through an independent source.

Sec. 1477. 104 Producer eligibility.

(a) Producers in the United States will be eligible to receive

disaster benefits under this part only if they have suffered either:

(1) 1998 crop losses as a result of a disaster and as further

specified in Subpart B; or

(2) Multi-year crop losses as a result of a disaster and as further

specified in Subpart C.

(b) Payments may be made for losses suffered by an eligible

producer who is now deceased or is a dissolved entity if a

representative who currently has

[[Page 18557]]

authority to enter into a contract for the producer signs the

application for payment. Proof of authority to sign for the deceased

producer or dissolved entity must be provided. If a producer is now a

dissolved general partnership or joint venture, all members of the

general partnership or joint venture at the time of dissolution or

their duly authorized representatives must sign the application for

payment.

must have been in compliance with the Highly Erodible Land Conservation

and Wetland Conservation provisions of part 12 of this title, for the

year or years for which benefits are sought.

(d) The provisions of paragraph (c) of this section do not apply to

producers receiving benefits under this part for value loss crops.

Sec. 1477.105 Time for filing application.

(a) Applications for benefits under Subpart B, the 1998 Crop Loss

Disaster Assistance Program Single Year 1998 Losses, shall be filed

before the close of business on April 9, 1999, in the county FSA office

serving the county where the producer's farm is located for

administrative purposes.

(b) Applications for benefits under Subpart C, the1998 Crop Loss

Disaster Assistance Program Multi-year Losses, shall be filed before

the close of business on April 9, 1999, with the county FSA office

designated as the producer's control county.

deadlines for filing applications.

Sec. 1477.106 Limitations on payments and other benefits.

(a) A producer may receive disaster benefits under either subpart B

or C, but not both.

(b) A producer qualifying for disaster benefits under both subparts

B or C, may receive whichever amount is greater as calculated according

to this part.

losses. Further, the Deputy Administrator may divide crops based on

loss susceptibility, yield, and other factors.

(d) No person shall receive more than a total of $80,000 in

disaster benefits under this part. No person shall receive more than

$25,000 in disaster benefits under this part for tree losses.

(e) No person shall receive disaster benefits under this part in an

amount that exceeds the value of the expected production for the

relevant period as determined by CCC.

(f) A person who has a gross revenue in excess of $2.5 million for

the 1997 tax year shall not be eligible to receive disaster benefits

under this part. If the person does not have a 1997 tax year because

the entities were dissolved in a prior year, the last tax year for the

person will be used. Gross revenue includes the total income and total

gross receipts of the person, before any reductions. Gross revenue

shall not be adjusted, amended, discounted, netted or modified for any

reason. No deductions for costs, expenses or pass-through funds will be

deducted from any calculation of gross revenue. For making this

determination, gross revenue means the total gross receipts received

from farming or ranching operations if the person receives more than 50

percent of such person's gross income from farming or ranching; or the

total gross receipts received from all sources if the person receives

50 percent or less of such person's gross receipts from farming and

ranching.

(g) Payment eligibility under this part shall be in addition to

whatever eligibility the producer may have to other payments including

but not limited to:

(1) Payments under the noninsured crop disaster assistance program

established under the Agricultural Market Transition Act (7 U.S.C.

7333);

(2) Crop insurance indemnities provided under the Federal Crop

Insurance Act (7 U.S.C. 1501 et seq.);

(3) Emergency loans made available under subtitle C of the

Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.);

(4) Payments received by a person for participation in a Production

Flexibility Contract authorized under Title 1 of the Agricultural

Market Transition Act (7 U.S.C. 7211 et seq.); and

(5) Market Loss Assistance payments made under Sec. 1111 of the

1999 Act.

(h) In the event the total amount of applications for disaster

benefits under this part exceeds the available funds, payments shall be

reduced by a uniform national percentage. Such reductions shall be

applied before any determination of limits on compensation due to

multiple USDA benefits and after the imposition of applicable payment

limitation and gross revenues caps.

Sec. 1477.107 Crop insurance premium discounts.

(a) A crop insurance premium discount is available to all producers

who have limited or additional coverage crop insurance policies for the

1999 crop year (for the 2000 crop year for citrus fruit, Avocados in

California, and Macadamia Nuts in Hawaii) as follows:

(1) Producers of crops that have sales closing dates for the 1999

crop year (2000 crop year for citrus fruit, avocados in California, and

macadamia nuts in Hawaii) on or after July 31, 1998, and on or before

February 15, 1999, must have by the following dates purchased limited

or additional coverage and submitted their acreage and production

reports:

----------------------------------------------------------------------------------------------------------------

Production/acreage

States Application deadline reporting date

----------------------------------------------------------------------------------------------------------------

Arizona, Florida, Georgia, February 28, 1999.................................. April 15, 1999.

Hawaii, Louisiana,

Mississippi, and South

Carolina.

All other States.............. March 15, 1999..................................... April 30, 1999.

----------------------------------------------------------------------------------------------------------------

(2) For crops with a final planting date on or after December 31,

1998, but before August 15, 1999, the acreage reporting date will be

the later of the date shown in paragraph (a)(1) of this section or the

acreage reporting date specified in the producer's crop insurance

policy.

(3) For crops that have sales closing dates for the 1999 crop year

(2000 crop year for citrus fruit, avocados in California, and macadamia

nuts in Hawaii) after February 15, 1999, producers must purchase

limited or additional coverage by the sales closing date for the

applicable crop.

(b) Producers who are currently insured by the sales closing date

for the applicable crop may not:

(1) Lower their insurance coverage or transfer to another insurance

provider for crops with extended dates specified in paragraph (a)(1) of

this section; or

(2) Cancel their insurance policy if the cancellation date has

already passed, unless the producer is changing insurance plans at the

same or a higher coverage level.

[[Page 18558]]

coverage due to a delinquent debt will be allowed to satisfy such debt

and obtain coverage during the extended application period specified in

paragraph (a)(1) of this section.

(d) The exact percentage for the crop insurance premium discount

will be calculated once the total amount of premium for the 1999 crop

year (2000 crop year for citrus fruit, avocados in California, and

macadamia nuts in Hawaii) at the limited and additional coverage levels

has been established.

(e) An additional crop insurance premium discount may be made

available for any crops insured for the 1999 crop year by producers who

have suffered multiple losses due to scab and/or vomitoxin damage as

provided below; this discount is in addition to the premium discount

referenced in paragraph (a) of this section and in order to qualify for

this discount, a producer must:

(1) Have insured wheat, barley, oats, or rye in at least two crop

years during the 1994 through 1998 crop years (A producer must provide

evidence of such insurance if the insurance provider has no such

record; and

(2) Provide evidence that wheat, barley, oats, or rye produced by

the producer was subjected to a discounted price or decrease in yield

due to scab or vomitoxin damage in at least two crop years during the

1994 through 1998 crop years.

(f) The two years of insurance specified in paragraph (e)(1) of

this section, the two years of discounted prices or yields due to scab

and/or vomitoxin specified in paragraph (e)(2) of this section, and the

small grain crops affected need not be the same (e.g., a producer could

have insured 1995 and 1996 wheat, but had scab and/or vomitoxin damage

on 1997 and 1998 barley).

(g) This discount in paragraph (e) of this section can only be

applied to the same identical producer that met the qualifications for

the discount as required in paragraph (e) of this section.

(h) The total premium discounts allowed under this section to any

person cannot exceed $80,000. The $2.5 million gross revenue limitation

does not apply to the premium discounts specified in this section.

Sec. 1477.108 Requirement to purchase crop insurance.

(a) As required in 1102(g)(3) of the Act, any producer who receives

crop loss assistance under this part who did not purchase crop

insurance for all insurable crops for the 1998 crop year (1999 crop

year for citrus fruit, Avocados in California, and Macadamia Nuts in

Hawaii) must purchase crop insurance for the 1999 and 2000 crop years

(2000 and 2001 crop years for citrus fruit, avocados in California, and

macadamia nuts in Hawaii) for all crops of economic significance

produced by such producer for which insurance is available.

(b) Any producer who is required to purchase crop insurance in

accordance with paragraph (a) of this section who does not purchase

either limited or additional coverage by the sales closing date for the

applicable crop or the extended application dates specified in section

1477.107(a)(1), may purchase catastrophic risk protection until April

28, 1999. Such producers will have until the following dates to provide

their acreage and production reports:

(1) For policies under which the crop was planted on or before

December 31, 1998, or the crop is a perennial crop, the producer must

submit the acreage and production reports at the time of the

Catastrophic Risk Protection application; or

(2) For spring crops, the acreage and production reports must be

submitted by the later of May 29, 1999, or the latest spring acreage

reporting date specified in the crop insurance policy.

7 CFR part 400, subpart T, relating to the availability of Catastrophic

Risk Protection coverage whenever a producer is unable to plant the

intended crop or it is not practical to replant a failed crop before

the final planting date, and the producer plants a substitute crop.

(d) If any producer fails to purchase crop insurance as required in

paragraph (a) of this section, the producer will be required to pay

liquidated damages in an amount and within a reasonable period of time

as determined by the Deputy Administrator.

Sec. 1477.109 Miscellaneous provisions.

(a) Disaster benefits under this part may be withheld in accordance

with Sec. 1403.8 of this chapter.

(b) No interest will be paid or accrue on disaster benefits under

this part which are delayed or are otherwise not timely issued unless

otherwise mandated by law.

under this part if it is determined by the State or county committee or

an official of FSA that such person has:

(1) Adopted any scheme or other device which tends to defeat the

purpose of a program operated under this part;

(2) Made any fraudulent representation with respect to such

program; or

(3) Misrepresented any fact affecting a program determination.

(d) In the event there is a failure to comply with any term,

requirement, or condition for payment or assistance arising under this

part, and if any refund of a payment to CCC shall otherwise become due

in connection with this part, all payments made in regard to such

matter shall be refunded to CCC, together with interest as determined

in accordance with paragraph (e) of this section and late-payment

charges as provided for in part 1403 of this chapter.

(e) Producers shall be required to pay interest on any refund

required of the producer receiving assistance or a payment if CCC

determines that payments or other assistance were provided to the

producer and the producer was not eligible for such assistance. The

interest rate shall be one percent greater than the rate of interest

which the United States Treasury charges CCC for funds, as of the date

of payment. Interest that is determined to be due CCC shall accrue from

the date such benefits were made available by CCC to the date repayment

is completed. CCC may waive the accrual of interest if CCC determines

that the cause of the erroneous determination was not due to any error

by the producer.

(f) All persons with a financial interest in the operation

receiving benefits under this part shall be jointly and severally

liable for any refund, including related charges, which is determined

to be due CCC for any reason under this part.

(g) In the event that any request for assistance or payment under

this part was established as result of erroneous information or a

miscalculation, the assistance or payment shall be recomputed and any

excess refunded with applicable interest.

(h) The liability of any person for any penalty under this part or

for any refund to CCC or related charge arising in connection therewith

shall be in addition to any other liability of such person under any

civil or criminal fraud statute or any other provision of law

including, but not limited to, 18 U.S.C. 286, 287, 371, 641, 651, 1001

and 1014; 15 U.S.C. 714m; and 31 U.S.C. 3729.

(i) Any person who is dissatisfied with a determination made with

respect to this part may make a request for reconsideration or appeal

of such determination in accordance with the

[[Page 18559]]

regulations set forth at parts 11 and 780 of this title.

(j) Any payment or portion thereof to any person shall be made

without regard to questions of title under State law and without regard

to any claim or lien again the crop, or proceeds thereof.

(k) Disaster benefits under this part will be made without taking

any applicable offsets. The regulations governing offsets found at part

792 of this title and 1403 of this chapter shall not apply to payments

made under this part.

(l) Payments which are earned under this part may be assigned in

accordance with the provisions of part 1404 of this chapter upon

filling out the applicable assignment form.

Sec. 1477.10 Matters of general applicability.

(a) For calculations of loss made with respect to insured crops,

the producer's existing unit structure will be used as the basis for

the calculation and may include optional units established according to

7 CFR Part 457 of this Title. For uninsured and noninsurable crops,

basic units will be established for these purposes.

(b) Loss payment rates and factors shall be established by the

state committee based on procedures provided by the Deputy

Administrator.

average of the 1993 through 1997 official county yields established by

FSA.

(d) County committees will assign production when the county

committee determines:

(1) An acceptable appraisal or record of harvested production does

not exist;

(2) The loss is due to an ineligible cause of loss or practices

that cause lower yields than those upon which the historic yield is

based;

(3) The producer has a contract providing a guaranteed payment for

all or a portion of the crop;

(4) The crop is planted beyond the normal planting period for the

crop; or

(5) Other cause, as determined by the Deputy Administrator, exists

for such case.

(e) The county committee shall establish a maximum loss level based

on other losses in the county for the same crop. The maximum loss level

for the county shall be expressed as either a percent of loss or yield

per acre. The maximum loss level will apply when:

(1) Unharvested acreage has not been appraised by FSA, RMA, FCIC, a

company reinsured by FCIC, or other appraiser;

(2) The crop's loss is because of an ineligible disaster condition

or circumstances other than a natural disaster; or

(3) Acceptable production records for harvested acres are not

available from any source.

(f) Assigned production for practices that result in lower yields

than those for which the historic yield is based shall be established

by:

(1) Determining the acres planted to the low-yielding type of

practice;

(2) Multiplying the State office determined yield reduction factor

times the county average yield; and

(3) Multiplying the result of paragraph (f)(2) of this section

times the acres in paragraph (f)(1) of this section.

(g) Assigned production for crops planted beyond the normal

planting period for the crop shall be calculated according to the

lateness of planting the crop. If the crop is planted after the final

planting date by:

(1) 1 through 10 calendar days, the assigned production will be

based on one percent of the payment yield for each day involved.

(2) 11 through 24 calendar days, the assigned production will be

based on 10 percent of the payment yield plus an additional two percent

reduction of the payment yield for each days of days 11 through 24

which are involved.

(3) 25 or more calendar days or a date in which the crop would not

reasonably be expected to mature by harvest, the assigned production

will be based on 50 percent of the payment yield or such greater amount

determined by the county committee to be appropriate.

(h) Assigned production for producers with contracts to receive a

guaranteed payment for production of an eligible crop will be

established by the county committee by:

(1) Determining the total amount of guaranteed payment for the

unit;

(2) Converting the guaranteed payment to guaranteed production by

dividing the total amount of guaranteed payment by the approved county

price for the crop or variety or such other factor deemed appropriate

if otherwise the production would appear to be too high; and

(3) Establishing the production for the unit as the greater of the

actual net production for the unit or the guaranteed payment.

Subpart B--1998 Single-Year Crop Loss Disaster Assistance Program

Sec. 1477.201 Single-year crop losses.

(a) To receive disaster benefits under this subpart which covers

single-year 1998 crop losses, the county committee must determine that

because of a disaster, the producer with respect to the 1998 crop year:

(1) Was prevented from planting a crop;

(2) Sustained a loss in excess of 35 percent of the expected

production of a crop;

(3) Sustained a loss in excess of 35 percent of the value for value

loss crops; or

(4) Sustained damage in excess of 20 percent of an individual stand

of eligible trees, after adjustments for normal mortality.

(b) Calculation of benefits under this subpart shall not include

losses:

(1) That are the result of poor management decisions or poor

farming practices as determined by the county committee on a case-by-

case basis based on instructions issued by the Deputy Administrator;

(2) That are the result of the failure of the producer to reseed or

replant to the same crop in the county where it is customary to reseed

or replant after a loss;

(3) That are not as a result of a natural disaster;

(4) To crops not intended for harvest in crop year 1998;

(5) To losses of by-products resulting from processing or

harvesting a crop, such as cotton seed, peanut shells, wheat or oat

straw;

(6) To home gardens; or

(7) As a result of water contained or released by any governmental,

public, or private dam or reservoir project if an easement exists on

the acreage affected for the containment or release of the water.

nursery stock shall not include losses:

(1) Caused by a failure of power supply or brownouts;

(2) Caused by the inability to market nursery stock as a result of

quarantine, boycott, or refusal of a buyer to accept production;

(3) Caused by fire;

(4) Affecting crops where weeds and other forms of undergrowth in

the vicinity of the nursery stock have not been controlled; or

(5) Caused by the collapse or failure of buildings or structures.

(d) Calculation of benefits under this subpart for honey where the

honey production by colonies or bees was diminished, shall not include

losses:

(1) Where the inability to extract was due to the unavailability of

equipment; the collapse or failure of equipment or apparatus used in

the honey operation;

(2) Resulting from improper storage of honey;

(3) To honey production because of bee feeding;

(4) Caused by the application of chemicals;

(5) Caused by theft, fire, or vandalism;

[[Page 18560]]

(6) Caused by the movement of bees by the producer or any other

person; or

(7) Due to disease or pest infestation of the colonies.

Sec. 1477.202 Calculating rates and yields.

(a) Payment rates for 1998 single-year crop losses shall be:

(1) 65 percent of the maximum established RMA price for insured

crops;

(2) 65 percent of the State average price for noninsurable crops;

(3) 60 percent of the maximum established RMA price for uninsured

crops; and

(4) 65 percent of the established practice rate for damage to

eligible trees.

(b) Disaster benefits under this subpart for losses to crops other

than trees shall be made in an amount determined by multiplying the

loss of production in excess of 35 percent of the expected production

by the applicable payment rate established according to paragraph (a)

of this section.

be made in an amount determined by multiplying the quantity of acres or

number of trees in a practice approved by the county committee

according to instructions issued by the Deputy Administrator, by the

payment rate established according to paragraph (a) of this section.

(d) Separate payment rates and yields for the same crop may be

established according to instructions issued by the Deputy

Administrator, when there is supporting data from NASS or other sources

approved by CCC that show there is a significant difference in yield or

value based on a distinct and separate end use of the crop. In spite of

differences in yield or values, separate rates or yields shall not be

established for crops with different cultural practices, such as

organically or hydroponically grown.

(e) Each eligible producer's share of a disaster payment shall be

based on the producer's share of the crop or crop proceeds, or, if no

crop was produced, the share the producer would have received if the

crop had been produced. In cases where crop insurance provides for a

landlord/tenant to insure the tenant/landlord's share according to part

457 of this title, disaster payments will be issued on the same basis.

(f) When calculating a payment for a unit loss:

(1) The unharvested payment factor shall be applied to crop acreage

planted but not harvested; and

(2) The prevented planting factor shall be applied to any prevented

planted acreage eligible for payment.

(g) Production from all end uses of a multi-use crop or all

secondary uses for multiple market crops will be calculated separately

and summarized together.

Sec. 1477.203 Production losses, producer responsibility.

(a) Where available, RMA loss records will be used for insured

crops.

(b) If RMA loss records are not available, producers are

responsible for:

(1) Retaining or providing, when required, the best verifiable or

reliable production records available for the crop;

(2) Summarizing all the production evidence;

(3) Accounting for the total amount of unit production for the

crop, whether or not records reflect this production; and

(4) Providing the information in a manner that can be easily

understood by the county committee.

supply acceptable production records to substantiate production to the

county committee. If the eligible crop was sold or otherwise disposed

of through commercial channels, acceptable production records include:

commercial receipts; settlement sheets; warehouse ledger sheets; or

load summaries; appraisal information from a loss adjuster acceptable

to CCC. If the eligible crop was farm-stored, sold, fed to livestock,

or disposed of in means other than commercial channels, acceptable

production records include: truck scale tickets; appraisal information

from a loss adjuster acceptable to CCC; contemporaneous diaries; or

other documentary evidence, such as contemporaneous measurements.

(d) Producers must provide all records for any production of a crop

which is grown with an arrangement, agreement, or contract for

guaranteed payment. The failure to report the existence of any

guaranteed contract or similar arrangement or agreement shall be

considered as providing false information to CCC.

Sec. 1477.204 Determination of production.

(a) Production under this subpart shall include all harvested

production, unharvested appraised production and assigned production

for the total planted acreage of the crop on the unit.

(b) The harvested production of eligible crop acreage harvested

more than once in a crop year shall include the total harvested

production from all these harvests.

harvested production shall be used to determine benefits.

(d) For all crops eligible for loan deficiency payments or

marketing assistance loans with an intended use of grain but harvested

as silage, ensilage, cobbage, hay, cracked, rolled, or crimped,

production will be adjusted based on a whole grain equivalent according

to instructions issued by the Deputy Administrator.

(e) For crops with an established yield and market price for

multiple intended uses, a value will be calculated for each use.

(f) For crops sold in a market that is not a recognized market for

the crop with no established county average yield and market price, 60

percent, if insured or noninsurable, or 65 percent, if uninsured, of

the salvage value received will be deducted from the disaster payment.

(g) If a producer has an arrangement, agreement, or contract for

guaranteed payment for production (as opposed to production based on

delivery), the production to count shall be the greater of the actual

production or the guaranteed payment converted to production according

to instructions issued by the Deputy Administrator.

(h) Production that is commingled between units before it was a

matter of record and cannot be separated by using records or other

means acceptable to CCC shall be prorated to each respective unit

according to instructions issued by the Deputy Administrator.

Commingled production may be attributed to the applicable unit, if the

producer made the unit production of a commodity a matter of record

before commingling and does any of the following, as applicable:

(1) Provides copies of verifiable documents showing that production

of the commodity was purchased, acquired, or otherwise obtained from

beyond the unit;

(2) Had the production measured in a manner acceptable to the

county committee; or

(3) Had the current year's production appraised in a manner

acceptable to the county committee.

(i) The county committee shall assign production for the unit when

the county committee determines that:

(1) The producer has failed to provide adequate and acceptable

production records;

(2) The loss to the crop is because of a disaster condition not

covered by this subpart, or circumstances other than natural disaster,

and there has not otherwise been an accounting of this ineligible cause

of loss;

(3) The producer carries out a practice, such as double cropping,

that

[[Page 18561]]

generally results in lower yields than the established historic yields;

(4) The producer has a contract to receive a guaranteed payment for

all or a portion of the crop; or

(5) A crop is late-planted.

(j) For sugarcane, the quantity of sugar produced from such crop

shall exclude acreage harvested for seed.

(k) For peanuts, the actual production shall be all peanuts

harvested for nuts regardless of their disposition or use as adjusted

for low quality.

(l) For tobacco, except flue-cured and burley, the actual

production shall be the sum of the tobacco: marketed or available to be

marketed; destroyed after harvest; and produced but unharvested, as

determined by an appraisal. For flue-cured and burley tobacco, the

actual production shall be the sum of the tobacco: marketed, regardless

of whether the tobacco was produced in the current crop year or a prior

crop year; on hand; destroyed after harvest; and produced but

unharvested, as determined by an appraisal.

Sec. 1477.205 Calculation of acreage for crop losses other than

prevented planted.

(a) Subject to paragraph (b) of this section, the acreage of a crop

planted in each planting period shall be considered a different crop

for the purpose of determining disaster benefits under this subpart.

(b) In cases where there is a repeat crop, double crop or a

multiple planting, each of these crops may be considered different

crops if the county committee determines that:

(1) Both the initial and subsequent planted crops were planted with

an intent to harvest;

(2) The subsequent crop was planted after the time when the initial

crop would normally have been harvested;

(3) Both the initial and subsequent planted crops were planted

within the normal planting period for that crop; and

(4) Both the initial and subsequent planted crops meet all other

eligibility provisions of this part including good farming practices.

eligible disaster condition and it is generally considered too late to

replant and a subsequent crop is planted on the same acreage within its

normal planting period in the same crop year and also failed because of

an eligible disaster condition, both crops are eligible for disaster

assistance if they meet all other eligibility provisions of this part.

Sec. 1477.206 Calculation of prevented planted acreage.

(a) When determining losses under this subpart, prevented-planted

acreage will be considered separately from planted acreage of the same

crop.

(b) Except as provided in paragraph (c) of this section, for

insured crops, disaster payments under this subpart for prevented-

planted acreage shall not be made unless RMA documentation indicates

that the eligible producer received a prevented planting payment under

the RMA-administered program.

prevented-planted acreage will be made available for the following

crops for which prevented planting coverage was not available and for

which the county committee will make an eligibility determination

according to paragraph (d) of this section: California safflowers;

peanuts; peppers; popcorn; Central/Southern potatoes; sweet corn (fresh

market); tomatoes (fresh market); tomatoes (processing).

(d) For uninsured or noninsurable crops, or the insured crops

listed in paragraph (c) of this section, the producer must prove, to

the satisfaction of the county committee, an intent to plant the crop

and that such crop could not be planted because of an eligible

disaster. The county committee must be able to determine the producer

was prevented from planting the crop by an eligible disaster that both:

(1) Prevented most producers from planting on acreage with similar

characteristics in the surrounding area; and

(2) Unless otherwise allowed by the Deputy Administrator, began no

earlier than the planting season for the 1998 crop.

(e) Prevented planted disaster benefits under this subpart shall

not apply to:

(1) Aquaculture, including ornamental fish; perennial forage crops

grown for hay, seed, or grazing; ginseng root and ginseng seed; honey;

maple sap; millet; nursery crops; sweet potatoes; tobacco; trees;

turfgrass sod; and tree and vine crops;

(2) Any acreage which is double-cropped, even if the producer has a

history of double-cropping acreage;

(3) Uninsured crop acreage that is unclassified for insurance

purposes;

(4) Acreage that is used for conservation purposes or intended to

be left unplanted under any USDA program;

(5) The same acreage from which any benefit is derived under any

program administered by the USDA on which a crop is planted and fails

during the crop year except as provided in 1477.106(f) of this part;

(6) Any acreage on which a crop other than a cover crop was

harvested, hayed, or grazed during the crop year;

(7) Any acreage for which a cash lease payment is received for the

use of the acreage the same crop year unless the county committee

determines the lease was for haying and grazing rights only and was not

a lease for use of the land;

(8) Acreage for which planting history or conservation plans

indicate that the acreage would have remained fallow for crop rotation

purposes;

(9) Acreage for which the producer or any other person received a

prevented planted payment for any crop for the same acreage, excluding

share arrangements; and

(10) Acreage for which the producer cannot provide proof to the

county committee that inputs such as seed, chemicals, and fertilizer

were available to plant and produce a crop with the expectation of at

least producing a normal yield.

(f) Disaster benefits under this subpart shall not apply to acreage

where the prevented-planted acreage was affected by a disaster that was

caused by drought or the failure of the irrigation water supply unless

the acreage is in an area classified by the Palmer Drought Severity

Index as in a severe or extreme drought during the time period

specified by the producer.

(g) For uninsured or noninsurable crops and the insured crops

listed in paragraph (c) of this section, for prevented planting

purposes:

(1) The maximum prevented-planted acreage for all crops:

(i) Cannot exceed the number of acres of cropland in the unit for

the crop year; and

(ii) Will be reduced by the number of acres planted in the unit;

(2) The maximum prevented planted acreage for a crop cannot exceed

the number of acres planted by the producer, or which was prevented

from planting, to the crop in any 1 of the 1994 through 1997 crop years

as determined by the county committee;

(3) For crops grown under a contract specifying the number of acres

contracted, the prevented-planted acreage is limited to the result of

the number of acres specified in the contract minus planted acreage;

(4) For each crop type or variety for which separate prices or

yields are sought for prevented-planted acreage, the producer must

provide evidence that the claimed prevented-planted acres were

successfully planted in at least 1 of the most recent 4 crop years; and

[[Page 18562]]

(5) The prevented planted acreage must be one contiguous block

consisting of at least 20 acres or 20 percent of the intended planted

acreage in the unit, whichever is less.

Sec. 1477.207 Quality adjustments to production.

(a) Subject to paragraph (b) of this section, the quantity of

production of crops that were damaged due to disaster resulting in

diminished quality, shall be adjusted by the county committee in

accordance with instructions issued by the Deputy Administrator.

(b) Crops eligible for quality adjustments to production are

limited to:

(1) Barley; canola; corn; cotton; flaxseed; grain sorghum; mustard

seed; oats; peanuts; rapeseed; rice; safflower; soybeans; sugar beets;

sunflower-oil; sunflower-seed; tobacco; wheat; and

(2) Crops with multiple market uses such as fresh, processed or

juice, as supported by NASS data or other data determined acceptable in

accordance with instructions issued by the Deputy Administrator. RMA

loss production figures will not be used to conduct this quality

adjustment unless the Deputy Administrator determines otherwise.

grade and other discount factors that were applied to the crop.

(d) Quality adjustments will be applied after production has been

adjusted to standard moisture, when applicable.

(e) Except for cotton, if a quality adjustment has been made for

multi-peril crop insurance purposes, an additional adjustment will not

be made.

(f) Quality adjustments for crops, other than cotton, peanuts,

sugar beets and tobacco, listed in paragraph (b)(1) of this section may

be made by applying an adjustment factor based on dividing the Federal

marketing assistance loan rate applicable to the crop and producer

determined according to part 1421 of this chapter by the unadjusted

county marketing assistance loan rate for the crop. For crops that

grade sample and are marketed through normal channels, production will

be adjusted according to instructions issued by the Deputy

Administrator. County committees may, with state committee concurrence,

establish county average quality adjustment factors according to

procedures issued by the Deputy Administrator.

(g) Quality adjustments for cotton shall be based on the difference

between:

(1) The loan rate applicable to the crop and producer determined

according to part 1427 of this chapter; and

(2) The adjusted county loan rate. The adjusted county rate is the

county loan rate adjusted for the 4-year county average historical

quality premium or discount, in accordance with instructions issued by

the Deputy Administrator.

(h) Quality adjustments for quota peanuts shall for unused quota be

based on the difference between the adjusted sales price and the quota

price. The adjusted sales price is the quota price minus discounts for

quality, regardless of the actual sales price received. Adjustments for

other peanuts may be made as determined appropriate by the Deputy

Administrator.

(i) Quality adjustments for sugar beets shall be based on sugar

content. The 1998 actual production for the producer shall be adjusted

upward or downward to account for sugar content according to

instructions issued by the Deputy Administrator.

(j) Quality adjustments for tobacco shall be based on the

difference between the sales price and the support price.

(k) Quality adjustments for crops with multiple market uses such as

fresh, processed and juice, shall be applied based on the difference

between the producer's historical marketing percentage of each market

use compared to the actual percentage for 1998, as determined in

accordance with instructions issued by the Deputy Administrator.

(l) Quality adjustments for aflatoxin shall be based on the

aflatoxin level. The producer must provide the County Office with proof

a price reduction because of aflatoxin. The aflatoxin level must be 20

parts per billion or more before a quality adjustment will be made. The

quality adjustment factor applied to affected production is .50 if the

production is marketable. If the production is unmarketable due to

aflatoxin levels of at least 20 parts per billion, production will be

adjusted to zero. Any value received will be considered salvage.

(m) Any quantity of the crop determined to be salvage will not be

considered production. Salvage values shall be factored by .60 for

insured and noninsurable commodities and .65 for uninsured commodities.

(n) Quality adjustments do not apply to value loss crops.

(o) Quality adjustments shall not apply to: hay, honey, maple sap,

turfgrass sod, crops marketed for a use other than an intended use for

which there is not an established county price or yield.

Sec. 1477.208 1999 Crop Losses.

(a) Producers have the option to receive benefits on 1999 crop

rather than 1998 loss when both the following apply:

(1) The 1999 crop was affected by disaster-related conditions that

occurred in calendar year 1998; and

(2) Harvest for the 1999 crop would normally begin in calendar year

1998.

(b) Producers may elect to use the 1999 crop for 1998 single-year

CLDAP benefits only.

Sec. 1477.209 Value loss crops.

(a) Special provisions to assess losses and calculate disaster

assistance under this subpart apply to the following crops and such

other crops as may be identified in instructions issued by the Deputy

Administrator: ornamental nursery; Christmas trees; ginseng root; and

aquaculture, including ornamental fish.

(b) Disaster benefits under this subpart are calculated based on

the loss of value at the time of disaster, as provided by instructions

issued by the Deputy Administrator.

aquacultural species are limited to those aquacultural species which

were placed in the aquacultural facility by the producer. Disaster

benefits under this subpart shall not be made available for

aquacultural species that are growing naturally in the aquaculture

facility. Disaster benefits under this subpart are limited to

aquacultural species that were planted or seeded on property owned or

leased by the producer where that land has readily identifiable

boundaries, and over which the producer has total control of the

waterbed and the ground under the waterbed. Producers who only have

control over a column of water will not be eligible for disaster

benefits under this subpart.

(d) For ornamental nursery crops, disaster benefits under this

subpart are limited to ornamental nursery crops that were grown in a

container or controlled environment for commercial sale on property

owned or leased by the producer, and cared for and managed using good

nursery growing practices. Indigenous crops are not eligible for

benefits under this subpart.

(e) For Christmas trees, disaster benefits under this subpart are

limited to losses which exceed 35 percent of the value of the Christmas

trees present at the time of the disaster. Christmas tree producers

seeking disaster assistance under this subpart must provide acreage

data, dates of plantings and the quantity of trees planted on each

date.

[[Page 18563]]

Sec. 1477.210 Other specialty crops.

(a) Other special provisions to assess losses and calculate

disaster assistance under this subpart apply to the following crops and

such other crops as may be identified in instructions issued by the

Deputy Administrator: turfgrass sod, honey and maple sap.

(b) For turfgrass sod, disaster benefits under this subpart are

limited to turfgrass sod which would have matured and been harvested

during 1998, when a disaster caused in excess of 35 percent of the

expected production to die.

table and nontable honey produced commercially for human consumption.

For calculating benefits, all honey is considered a single crop,

regardless of type or variety of floral source or intended use.

(d) For maple sap, disaster benefits under this subpart are limited

to maple sap produced on private property in a controlled environment

by a commercial operator for sale as sap or syrup. The maple sap must

be produced from trees that are: located on land the producer controls

by ownership or lease; managed for production of maple sap; and are at

least 30 years old and 12 inches in diameter.

Subpart C--Multi-Year Crop Loss Disaster Assistance Program

Sec. 1477.300 Multi-year crop losses.

(a) The disaster benefits under this subpart, the 1998 Crop Loss

Disaster Assistance Program Multi-year Losses, will be equal to 25

percent of the producer's previous loss payments for the qualifying

losses if the producer received:

(1) Crop insurance indemnity payments for crop losses on insured

crops under the RMA-administered program, excluding replanting or

raisin reconditioning payments; or

(2) Payments from the Non-insured Crop Disaster Assistance Program

for multi-year crop losses, including any 1994 ad hoc disaster payment

of a noninsurable crop.

(b) In order to receive benefits under this subpart, the producer

must have received (a)(1) or (a)(2) in at least 3 of the 5 crop years

running from 1994 through 1998 and only such losses shall be considered

qualifying losses for purposes of paragraph (a) of this section.

payments, RMA will determine the producers that meet the eligibility

requirements along with indemnity amounts and pass the data to FSA.

(d) For NAP multi-year eligibility, FSA will determine eligible

producers. Because the multi-year payments are based on payments

previously received, area loss provisions apply.

(e) For purposes of paragraph (a) of this section, the ``Federal

loss payments'' shall only be those payments which were received for

qualifying losses under the programs identified in paragraphs (a)(1)

and (a)(2) of this section. In addition, benefits under this part will

be permitted only where the qualifying losses were suffered by the

identical producers, as determined under instructions of the Deputy

Administrator. Changes in the organization and control of entities or

production units will be considered to be changes in producers for crop

history purposes. Likewise, in joint ventures, the entity will be

considered to be the producer, not the individual members, and

representational entities, such as a trust, will be considered

different producers than the beneficiaries of the entity, except as

otherwise allowed by the Deputy Administrator. The provisions of this

subsection shall be used for qualifying purposes only for multi-year

benefits and shall not, for qualified recipients, affect other

restrictions that limit the maximum payment amount that may be received

under this program.

Signed at Washington, DC, on April 9, 1999.

Keith Kelly,

Executive Vice President, Commodity Credit Corporation.

[FR Doc. 99-9350 Filed 4-12-99; 12:42 pm]

BILLING CODE 3410-05-P

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