[Federal Register Volume 66, Number 167 (Tuesday, August 28, 2001)]
[Notices]
[Pages 45276-45277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21725]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
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Federal Register / Vol. 66, No. 167 / Tuesday, August 28, 2001 /
Notices
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
1998 Crop Loss Disaster Assistance Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: The Commodity Credit Corporation (CCC) is issuing this notice
to inform all interested parties of the revised eligibility
requirements for benefits under the 1998 Crop Loss Disaster Assistance
Program (CLDAP) multi-year provision. CLDAP was originally authorized
by the Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriation Act, 1999 (Public Law 105-277). All
interested parties must file applications at the address specified
below prior to close of business on September 14, 2001.
FOR FURTHER INFORMATION CONTACT: Rebecca Davis, Compliance Branch, FSA,
USDA; Telephone: (202) 720-9882.
SUPPLEMENTARY INFORMATION:
Background
Section 1102 of the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 1999 (Public
Law 105-277) provided $875 million to provide assistance to producers
who incurred multi-year losses due to disasters. Accordingly, the
Secretary developed the multi-year Crop Loss Disaster Assistance
Program (CLDAP) and promulgated regulations to carry out that program.
See 7 CFR part 1477. Under the provisions of the 1998 CLDAP, the Farm
Service Agency (FSA) defined multi-year losses as crop losses by a
producer in at least 3 of the 5 years from 1994 through 1998. The
program benefits under this multi-year option were based on a
percentage of the total dollar amount the producer received from the
combination of crop insurance indemnities, non-insured crop disaster
assistance program (NAP), and the 1994 ad hoc disaster assistance
program during that 5-year period.
To expedite the disbursement of assistance, crop insurance
indemnity information from the Risk Management Agency was interfaced
electronically with FSA program payment records to determine the
producers eligible for the multi-year assistance and the amount of such
benefit. Both Agencies record monetary benefits issued to producers and
policy holders by either a social security or taxpayer ID number.
Therefore, when payments and indemnities were credited to the same ID
number in at least 3 of the 5 years, the producer was determined
eligible.
Some producers may have changed ID numbers when they restructured
their businesses, or changed the nature of their operations from an
individual to a corporation. FSA tried to the maximum extent
practicable to allow for changes in ID numbers that were beyond the
producers' control such as changes due to death of an insured, or
husbands and wives who may have changed operations and operating
numbers. Because of changing ID numbers, some producers with losses in
three of the five years may not have been issued benefits under the
multi-year CLDAP.
Congress intervened. Section 259 of the Agricultural Risk
Protection Act of 2000 (Public Law 106-224), directs the Secretary to
restore eligibility by making payments to an individual or entity that
was determined otherwise ineligible for the multi-year benefits in the
amount equal to what the individual or entity would have received had
the individual or entity not changed the legal structure, but reduced
by any single year payment already received. Additionally, a producer
with interests in multiple farming operations, none of which previously
received 1998 CLDAP benefits, may now be eligible for payment based on
the producer's interest in such eligible losses experienced by each of
the respective farming operations which otherwise would not have been
eligible for compensation. Section 259 of the Agricultural Risk
Protection Act of 2000 was not originally provided funding to carry out
its direction.
Congress revisited the funding issue and in section 315 of the
Grain Standards and Warehouse Improvement Act of 2000 (Public Law 106-
472) amended section 259 of the Agricultural Risk Protection Act of
2000, to authorize the Secretary to use the funds, facilities, and
authorities of the Commodity Credit Corporation (CCC).
Action: The purpose of this notice is to inform affected parties
that a producer that was determined otherwise ineligible may now be
eligible for 1998 CLDAP benefits under the terms of this revision if
the change in operation was from an individual to an entity which
included the individual; from an entity to an individual who was
included in the entity; or, if an individual had an interest in
multiple operations. If a producer previously received CLDAP benefits
under the 1998 single-year option, and is now determined eligible under
the multi-year option, the producer will receive only the difference if
the calculated multi-year benefit is greater. Total CLDAP benefits are
subject to the $80,000 limitation per ``person'' as defined in 7 CFR
part 1400, and the national payment factor applicable to CLDAP as
previously utilized.
Eligible producers include those that: (1) Previously filed an
application but did not meet eligibility requirements; (2) now meet the
eligibility requirements, but did not previously submit an application;
and (3) received a payment for a single-year loss, did not initially
qualify for multi-year benefits, but now qualify for multi-year
benefits under the revised eligibility requirements. However, this
provision does not restore eligibility for additional payments where
producers were deemed to be eligible for whatever reason. Producers
that are not sure as to their revised eligibility should file an
application.
The applicant's share will be: (1) 100 percent share of the
insurance indemnity, NAP benefit, or ad hoc disaster assistance
received as an individual, when applicable; and (2) his/her direct or
indirect share of the same earned through a joint operation or entity
that has not previously qualified for a multi-year benefit. Attribution
shall be used in the benefit calculation process. For embedded
entities, the Agency will attribute shares until the fifth level is
reached. Additionally, all eligibility requirements for the 1998
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program year, including payment eligibility, conservation compliance
and gross revenue compliance provisions, must have been met by each of
the joint operations and entities contributing to the qualifying loss
calculations.
Applicant's meeting all eligibility requirements for CLDAP will be
eligible for benefits not to exceed the $80,000 per ``person'' CLDAP
payment limitation and subject to the national payment factor,
regardless of the number of different farming operations used to
qualify. Each applicant must certify that gross revenue provisions are
not exceeded by any of the farming operations used for qualification by
applying the procedure applicable to the 1998 CLDAP. If one or more
``persons'' do not meet the gross revenue provisions, the
indemnification for that ``person'' cannot be used in computing
eligibility. The 1997 tax year will be used in determining eligibility
under the gross revenue provision. If the joint operation or entity
used for qualification dissolved in a prior year, FSA will use the last
tax year available.
Producers will be required to provide proof of crop insurance
indemnities, NAP benefits and ad hoc disaster assistance received for
each farming operation used in the qualification process. This
information must be recorded on Form CCC-540MY, Crop Loss Disaster
Assistance Program Application for Multi-Year Benefits, for each
respective farming operation and crop year. This information will be
used in determining eligibility and calculating the multi-year benefit.
Joint operation/entity member share data shall be verified with CCC-
502, Farm Operating Plan for Payment Eligibility Review, information on
file with the Agency for the respective program year. If the CCC-502
information is not on file for the joint operation/entity member, this
information will be required to identify members and shares. Additional
documentation may be required to substantiate the certification such as
legal documents and agreements, annual reports, corporate minutes, etc.
Individual producers may obtain Form CCC-540MY in person, by mail,
by telephone, or by facsimile from any FSA office. In addition,
applicants may download a copy of the CCC-540MY through the Internet at
www.sc.egov.usda.gov.
To apply for benefits, producers must submit: (1) Form CCC-540MY,
and include supporting documentation of any crop insurance indemnity,
NAP benefits and ad hoc disaster assistance received for each year,
entity and joint operation used for qualification; (2) Applicable Form
CCC-502, Farm Operating Plan For Payment Eligibility Review, and
related information for each year, entity and joint operation used for
qualification; (3) Form AD-1026, Highly Erodible Land and Wetland
Conservation Compliance, for each entity and joint operation used for
qualification; (4) Form CCC-548, Gross Revenue Certification Statement,
for each individual and entity used for qualification; (5) copies of
all Forms CCC-540, Crop Loss Disaster Assistance Program, and CCC-540A,
Notice of Loss/Production Worksheet 1998 Crop Loss Disaster Assistance
Program, previously submitted, including any applications submitted for
each individual, entity and joint operation used for qualification; and
(6) records of 1998 CLDAP benefits previously approved or received,
including records for each entity and joint operation used for
qualification.
Applications with supporting documentation will be accepted from
the date this notice is published through September 14, 2001. The
applicant must send all required documents to the following address:
USDA/ Farm Service Agency, Room 3643-S, STOP 0517, 1400 Independence
Avenue SW, Washington, DC 20250-0517. Applicants are requested to
designate the program on the envelope as ``Multi-Year Revised
Eligibility Determination Request.'' All completed applications must be
received at the specified address by the close of business on September
14, 2001. All late and incomplete applications will be returned to the
applicants with a denial of program benefits.
For additional information, affected producers should contact the
Farm Service Agency Service Center in the county in which they
originally or would have applied for benefits under the 1998 CLDAP.
Eligibility determinations will be made upon receipt of all of the
necessary data.
Signed at Washington, DC, on June 29, 2001.
James R. Little,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 01-21725 Filed 8-23-01; 4:48 pm]
BILLING CODE 3410-05-P