[Federal Register: June 21, 2000 (Volume 65, Number 120)]
[Rules and Regulations]
[Page 38409-38415]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jn00-3]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 784
RIN 0560-AG17
Lamb Meat Adjustment Assistance Program
AGENCY: Farm Service Agency, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule sets forth the regulations for the Lamb Meat
Adjustment Assistance Program as authorized by clause (3) of section 32
of the Act of August 24, 1935, as amended. Producers of sheep and lambs
may receive up to $30 million total, with a target of $10 million per
year, in direct cash payments to help improve their production
efficiencies and the marketability of lamb meat during the 3 year
period from July 22, 1999, through
[[Page 38410]]
July 31, 2002. This action is designed to provide immediate financial
assistance to sheep and lamb producers who have recently experienced
low prices and poor market conditions.
DATES: Effective June 19, 2000. Comments on this rule must be received
on or before July 21, 2000 in order to be assured of consideration.
Comments on the information collections in this rule must be received
by August 21, 2000, in order to be assured of consideration.
ADDRESSES: Comments should be mailed to Grady Bilberry, Director, Price
Support Division (PSD), Farm Service Agency (FSA), United States
Department of Agriculture (USDA), STOP 0512, 1400 Independence Avenue,
SW., Washington, DC 20250-0512; telephone (202) 720-7901 or e-mail:
danielle__cooke@wdc.fsa.usda.gov. Comments may be inspected in the
Office of the Director, PSD, FSA, USDA, Room 4095 South Building,
Washington, DC, between 8 a.m. and 4:30 p.m., Monday through Friday,
except holidays. A copy of this interim rule is available on the PSD
home page at http://www.fsa.usda.gov/dafp/psd/.
FOR FURTHER INFORMATION CONTACT: Danielle Cooke, (202) 720-1919.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This interim rule is issued in conformance with Executive Order
12866 and has been determined to be significant and has been reviewed
by the Office of Management and Budget.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this rule because the Farm Service Agency (FSA) is not
required by 5 U.S.C. 533 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
legal action may be brought regarding determinations of this rule, the
administrative appeal provisions set forth at 7 CFR part 780 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 3014, 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 the UMRA.
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995, FSA has
submitted an emergency information collection request (ICR) to OMB for
the approval of the Lamb Meat Adjustment Assistance Program report as
necessary for the proper functioning of the program.
Title: Lamb Meat Adjustment Assistance Program.
OMB Control Number: 0560--New.
Type of Request: Request for a New Information Collection Package .
Abstract: Sheep and lamb operations are eligible to receive direct
payments provided they make certifications that attest to their
eligibility to receive such payments. These operations must certify, as
appropriate, with respect to: (1) The number of eligible rams
purchased; (2) the number of sheep enrolled in an eligible sheep
improvement program; (3) sheep and lamb facility improvements; (4) the
number and condition of eligible slaughter and feeder lambs marketed;
and (5) that the operation is still in the business of agricultural
production. The information collection will be used by FSA to determine
the program eligibility of the sheep and lamb operation in accordance
with this subpart. FSA considers the information collected essential to
prudent eligibility determinations and payment calculations.
Additionally, without accurate information on sheep and lamb
operations, the national payment rate would be inaccurate resulting in
payments being made to ineligible recipients, and compromising the
integrity and accuracy of the program.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 5 minutes per response.
Respondents: Sheep and Lamb Operations.
Estimated Number of Respondents: 60,000.
Estimated Number of Responses per Respondent: 5
Estimated Total Annual Burden on Respondents: 24,000 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 Grady Bilberry, Director, Price Support Division, Farm
Service Agency, United States Department of Agriculture, STOP 0512,
1400 Independence Avenue, SW, Washington, DC 20250-0512 or telephone
(202) 720-7901.
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.
Immediate Effectiveness of This Rule
It has been determined that this rule should be issued as an
interim rule, effective immediately, but subject to modification on the
consideration of comments that are timely received. Delaying the
implementation of the rule pending comment would be impracticable and
contrary to the public interest, based on consideration of the
provisions of Section 32 of the Act of August 24, 1935, as amended, the
current market situation for lamb meat, and the lack of material
adverse effect on other parties.
[[Page 38411]]
On July 7, 1999, the President issued a declaration concerning lamb
meat that directed the Secretary of Agriculture to implement adjustment
assistance programs based on authorized programs to facilitate efforts
of the domestic lamb industry to make a positive adjustment to import
competition. Market conditions have deteriorated since July 1997. Lamb
producers have been some of the hardest hit, suffering major losses
during 1997 and 1998 due to record high imports of low-priced lamb
meat, so there is a critical need for action. Furthermore, while the
need for immediate assistance is critical, potential harm to other
parties, resulting from the issuance of this rule as an interim rule is
expected to be minimal.
The Small Business Regulatory Enforcement Fairness Act
The finding made above, that this rule should be made effective
immediately, applies for all purposes including, but not limited, to
the provisions of section 808 of the Small Business Regulatory
Enforcement Fairness Act (SBREFA) (5 U.S.C. 808), which provides that a
rule may, without regard to certain special Congressional oversight
measures provided for in SBREFA, take effect at such time as the agency
may determine if the agency finds for good cause that public notice is
impracticable, unnecessary, or contrary to the public interest. For the
reasons set out, it has been determined that delay would be contrary to
public interest and that the rule should be made effective immediately.
Background
Clause (3) of section 32 of the Act of August 24, 1935, as amended,
authorizes the Secretary of Agriculture to ``reestablish farmers'
purchasing power by making payments in connection with the normal
production of any agricultural commodity for domestic consumption.''
During the past few years a number of factors have produced a
serious economic crisis that threatens the existence of sheep and lamb
producers throughout the United States. There are an estimated 66,800
sheep and lamb operations in the United States that account for about 1
percent of the value of all U.S. farm production. Sheep and lamb
prices, marketings, and production have declined steadily since July
1997. Lamb producers were one of the hardest hit segments of the sheep
industry, suffering major losses during 1997 and 1998, when lamb meat
imports reached record highs. Threatened by a surge of low-priced,
imported lamb meat, many producers have lost the ability to remain
competitive in the domestic marketplace.
This rule addresses that situation by providing for a new program
to be administered by FSA utilizing the foregoing authority. Payments
to sheep and lamb operations under the program provided for by this
rule will offset a portion of the per-head losses producers have
incurred marketing their lambs and will help the U.S. lamb industry
achieve sustained competitiveness, while respecting international trade
obligations. The program will be administered in two parts, one part
covering activities occurring in what is referred to in the rule as
``Year 1'' ( the period running from July 22, 1999, and ending
September 30, 2000) and the second part covering activities occurring
in what are called ``Year 2'' and ``Year 3'' in the rules--those being
respectively, the periods from August 1, 2000 through July 31, 2001,
and August 1, 2001, through July 31, 2002. The rule contemplates that
$30 million will be available for the program and limits expenditures
to that amount with a provision for pro-rating payments in any program
year in which the funds will be exhausted.
Payments under this new program will provide those eligible for the
payments with an immediate infusion of funds to help pay operating
expenses and meet other financial obligations. ``Year 1'' payments will
be available to sheep and lamb operations that: (1) Between July 22,
1999, through September 30, 2000, purchased 90 day-old or older rams
intended for breeding purposes which the operation held for at least 90
days continuously thereafter and continue to hold or use for breeding
purposes, when the payments are to be made; (2) made lamb or feedlot
facility improvements during the same period; or (3) in that period,
enrolled sheep in an eligible sheep improvement program. The
improvement program can be the National Sheep Improvement Program
operated by the American Sheep Industry Association, or a similar
program, if approved by FSA, to assist sheep and lamb producers by
genetically evaluating animals in a flock for maternal, growth, and
wool traits or to otherwise provide equivalent benefits to the
producer's herd.
``Year 1'' facility improvement payments will be made to sheep and
lamb facilities only with respect to improvements that will be
maintained and used in the sheep and lamb operation for at least the
next 3 consecutive years from the date of the completion of the
improvements. Eligible facility improvements may include, but are not
limited to new and improved feedlots, lambing sheds, and shearing
sheds. Eligible sheep and lamb operations in ``Year 1'' can receive up
to $100 per eligible ram purchased, not to exceed $2,500 per operation;
$.50 per head of eligible sheep enrolled in a sheep improvement
program, not to exceed $500 per operation; and 20 percent of the sheep
and lamb operation's eligible facility improvement costs, not to exceed
$2,500 per operation. Accordingly, maximum payments to any operation
during ``Year 1'' will be limited to $5,500 for the three parts of the
``Year 1'' program. The rule also makes provision for limiting payments
for rams to the extent that such purchases would produce a ratio of
rams to ewes of less than 1 to 15. In addition, eligible lamb producers
must have in 1999 gross annual revenue of $2.5 million or less. The
purpose of this and other limitations on payments is to help target
limited financial resources to individual producers who are relatively
less able to finance lamb improvements.
For ``Year 2'' and ``Year 3'', payments will be made, subject to
the availability of funds, with respect to marketings of (1) slaughter
lambs and (2) feeder lambs. ``Year 2'' payments will be made for such
marketings during ``Year 2'' and ``Year 3'' payments will be made for
corresponding marketings in that year. ``Year 2'' and ``Year 3'' have
been separated so that separate sign-ups can be held, separate payments
can be made, and to ease proration problems in the event that the
claims under the program should eventually exceed the amount of the
available funds.
First, as to ``Year 2'' and ``Year 3'' marketings of slaughter
lambs, the lambs must have been owned by the lamb-raising operation in
the normal course of business for 30 days prior to the qualifying
marketing and must produce a carcass which: (1) Grades ``USDA Yield
Grade 2''; (2) has ``USDA Choice or Prime'' quality; (3) has a muscling
confirmation score of ``Average Choice'' or better; and (4) has a 55 to
75 pound dressed hot carcass weight.
With respect to the other category of marketings for which ``Year
2'' and ``Year 3'' payments can be made, ``feeder lambs'' are defined
in this rule to be either ewes or wethers of less than 1 year of age
that when sold are intended to be further fed a grain concentrate diet
to reach an acceptable slaughter market weight. Payments for feeder
lamb marketings will be made only if the lambs are, at the time of
marketing, thick-muscled and large-framed lambs, as described in USDA
Standards and were owned by the
[[Page 38412]]
operation for 30 days, continuously immediately prior to the qualifying
marketing. In addition, lamb producers eligible for payments must have
in 1999 and subsequent years, an applicable gross annual revenue of
$2.5 million or less.
Subject to the availability of funds, the per-head ``Year 2'' and
``Year 3'' payment rate is set by the rule to be $5 for each eligible
slaughter lamb marketing and $3 for each eligible feeder lamb
marketing. An additional $3 per slaughter lamb payment will be made for
slaughter lambs marketed from June 1 through July 31 of the program
year. For slaughter lambs, an Agricultural Marketing Service (AMS)
agent or an assigned representative of AMS must verify that lamb
carcasses meet the payment criteria. The condition of qualifying feeder
lambs must also be certified to by the AMS agent or an assigned AMS
representative.
Payments for parts of this program (Years 1-3) are available to all
eligible U.S. operations without herd or per operation or per person
payment limitations, except as noted.
Eligible sheep and lamb operations making application for payments
under this part must self-certify, as applicable: (1) The number of
eligible rams purchased, as well as, information establishing the ratio
of rams to ewes on the operation for all relevant times during the
program year to which such information applies; (2) the number of sheep
enrolled in a sheep improvement program; (3) the lamb or feedlot
facility improvements during ``Year 1''; (4) the intent to use the
improvement for sheep production activities for the next 3 consecutive
years; (5) the number of slaughter lamb and feeder lamb marketings that
meet the specified criteria; and (6) the operation must also certify
that it is still engaged in the business of producing and marketing
agricultural products at the time of application for payment. Eligible
operations must apply for payments during the sign-up period set by the
FSA pursuant to these regulations.
Sheep and lamb operations may, during the applicable period, apply
in person at county FSA offices during regular business hours.
Alternatively, program applications may be obtained by mail, telephone,
and facsimile from their designated county FSA office or obtained via
the Internet. The Internet website is located at www.fsa.usda.gov/dafp/
psd/.
List of Subjects in 7 CFR Part 784
Price support programs, Reporting and recordkeeping requirements,
Sheep.
Accordingly, Title 7 of the Code of Federal Regulations is amended
to add a new part, 7 CFR part 784, to read as follows:
PART 784--LAMB MEAT ADJUSTMENT ASSISTANCE PROGRAM
Sec.
784.1 Applicability; available payments.
784.2 Administration.
784.3 Definitions.
784.4 Year 1 time and method for application.
784.5 Year 1 eligibility.
784.6 Year 1 rate of payment and limitations on funding.
784.7 Year 2 and Year 3 time and method for application.
784.8 Year 2 and Year 3 eligibility.
784.9 Year 2 and Year 3 rate of payment.
784.10 Availability of funds for Year 1 through Year 3.
784.11 Appeals.
784.12 Misrepresentation and scheme or device.
784.13 Estates, trusts, and minors.
784.14 Death, incompetency, or disappearance.
784.15 Maintaining records.
784.16 Refunds; joint and several liability.
Authority: Clause (3) of section 32 of the Act of August 24,
1935, as amended; 7 U.S.C. 612c.
Sec. 784.1 Applicability; available payments.
(a) This part establishes the Lamb Meat Adjustment Assistance
Program. The purpose of this program is to provide benefits to sheep
and lamb operations pursuant to clause (3) of section 32 of the Act of
August 24, 1935, as amended (7 U.S.C. 612c) in order to reestablish
their purchasing power in connection with the normal production of
sheep and lambs for domestic consumption and boost the long-term
development and growth of sheep and lamb farming in the United States.
(b) Under and subject to this part, FSA will provide with respect
to sheep and lamb operations: ``Year 1'' payments in which sheep and
lamb operations will receive payments for, during the time period
encompassing ``Year 1'' as defined in these regulations, purchasing
eligible rams for breeding, enrolling their herd in a sheep improvement
program, and for making improvements to their production facilities;
and ``Year 2'' and ``Year 3'' payments for marketings of eligible
slaughter lambs or feeder lambs during the period encompassing those
time periods. Unless otherwise determined by the agency in accordance
with the provisions of this part, the amount that may be expended under
this part shall not exceed $30 million. Claims that exceed that amount
will be prorated in accordance with the provisions for proration that
are contained in this part.
Sec. 784.2 Administration.
(a) This part shall be administered by the Farm Service Agency
(FSA) under the general direction and supervision of the Deputy
Administrator for Farm Programs, FSA. The program shall be carried out
in the field by FSA State and county committees (State and county
committees).
(b) State and county committees, and representatives and employees
thereof, do not have the authority to modify or waive any of the
provisions of the regulations in this part.
(c) The State committee shall take any action required by this part
which has not been taken by the county committee. The State committee
shall also:
(1) Correct, or require a county committee to correct, any action
taken by such county committee which is not in accordance with the
regulations of this part; or
(2) Require a county committee to withhold taking any action which
is not in accordance with the regulations of this part.
(d) No delegation herein to a State or county committee shall
preclude the Deputy Administrator for Farm Programs, FSA, or a
designee, from determining any question arising under the program or
from reversing or modifying any determination made by a State or county
committee.
(e) The Deputy Administrator for Farm Programs, FSA, may authorize
State and county committees to waive or modify deadlines and other
program requirements in cases where timeliness or failure to meet such
other requirements does not adversely affect the operation of the
program.
Sec. 784.3 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of administering the Lamb Meat Adjustment Assistance
Program established by this part.
Agricultural Marketing Service or AMS means the Agricultural
Marketing Service of the Department.
Application means the Lamb Meat Adjustment Assistance Program
Application, Forms FSA-382 and FSA-383.
Department means the United States Department of Agriculture.
Eligible lambs means feeder lambs and slaughter lambs.
Farm Service Agency or FSA means the Farm Service Agency of the
Department.
Feeder lamb means a ewe or wether of less than 1 year of age that
when sold
[[Page 38413]]
is intended to be further fed a grain concentrate diet to reach an
acceptable slaughter market weight.
Muscling confirmation score of ``Average Choice'' means a muscling
confirmation score of that designation assigned in accordance with
official USDA standards and procedures.
Person means any individual, group of individuals, partnership,
corporation, estate, trust, association, cooperative, or other business
enterprise or other legal entity who is, or whose members are, a
citizen or citizens of, or legal resident alien or aliens in the United
States.
Secretary means the Secretary of the United States Department of
Agriculture or any other officer or employee of the Department who has
been delegated the authority to act in the Secretary's stead with
respect to the program established in this part.
Sheep and lamb operation means any self-contained, separate
enterprise operated as an independent unit exclusively within the
United States in which a person or group of persons raise sheep and/or
lambs.
Sheep improvement program means the ``National Sheep Improvement
Program'' operated by the American Sheep Industry Association or other
similar program for herd improvement approved by the FSA with respect
to payments under this part.
Slaughter lamb means a lamb that is sold for immediate slaughter.
United States means the 50 States of the United States of America,
the District of Columbia, and the Commonwealth of Puerto Rico.
USDA Choice, USDA Prime, USDA Yield Grade 2 means, respectively,
the classifications so designated under the Official United States
Standards for Grades of Lamb, Yearling, Mutton, and Mutton Carcasses
promulgated by the Secretary of Agriculture under the Agricultural
Marketing Act of 1946, as amended (60 Stat. 1087; 7 U.S.C. 1621-1627)
and related authorities.
Year 1 means the period of time beginning July 22, 1999, and ending
September 30, 2000.
Year 2 means the period of time beginning August 1, 2000, and
ending July 31, 2001.
Year 3 means the period of time beginning August 1, 2001, and
ending July 31, 2002.
Sec. 784.4 Year 1 time and method for application.
(a) Sheep and lamb producers may obtain a ``Year 1'' application,
Form FSA-382 (Lamb Meat Adjustment Assistance Program Payment
Application), in person, by mail, by telephone, or by facsimile from
any county FSA office. In addition, applicants may download a copy of
the Form FSA-382 at http://www.usda.gov/dafp/psd/.
(b) A request for ``Year 1'' benefits under this part must be
submitted on a completed Form FSA-382. The Form FSA-382 should be
submitted to the FSA county office serving the county where the sheep
and lamb operation is located but, in any case, must be received by the
FSA county office by the close of business on October 13, 2000.
Applications not received by the close of business on October 13, 2000,
will be returned as not having been timely filed and the sheep and lamb
operation filing the application will not be eligible for benefits
under this program.
(c) The sheep and lamb operation requesting ``Year 1'' benefits
under this part must certify to the accuracy of the information
provided in their application for benefits. All information provided is
subject to verification and spot checks by FSA. Refusal to allow FSA or
any other agency of the Department of Agriculture to verify any
information provided will result in a determination of ineligibility.
Data furnished by the applicant will be used to determine eligibility
for program benefits. Furnishing the data is voluntary; however,
without it program benefits will not be approved. Providing a false
certification may be subject to additional civil and criminal
sanctions.
(d) Not withstanding any other provisions of this section, payments
will not be made under this section for the acquisition of rams to the
extent that any such purchase, at any time during ``Year 1'', created,
or help create, a ratio of rams to ewes for the operation that was less
than 1 ram to 15 ewes. However, the limitation on payments provided for
in the preceding sentence shall not apply to the extent that the
operation establishes to the satisfaction of the COC that a lower ratio
of rams to ewes is customary for the operation.
Sec. 784.5 Year 1 eligibility.
(a) To be eligible to receive the ``Year 1'' payments under this
part, as described in Sec. 784.1, at the rates provided in Sec. 784.6,
a sheep and lamb operation must be engaged in the business of producing
and marketing agricultural products at the time of filing the
application, must have in 1999 gross annual revenue of $2.5 million or
less, and must have done at least one of the following during ``Year
1'':
(1) Purchased rams for breeding purposes within that operation,
provided that such rams must have been at least 90 days of age when
purchased and must have been, or will be, maintained by the operation
for at least 90 days continuously after the date of purchase;
(2) Enrolled sheep in an eligible sheep improvement program; or
(3) Made sheep and lamb operation facility improvements with
respect to their operation.
(b) With respect to paragraph (a)(3) of this section, in order to
receive payments, the sheep and lamb operation must submit supporting
documentation of the cost of the improvements made to the facility
during program ``Year 1'' and must use facility improvements for sheep
and lamb production activities continuously for at least the next 3
consecutive years. Upon a failure to maintain the facility for the full
three years, the operation must refund the ``Year 1'' facility payment
immediately and with interest.
(c) With respect to payments made for activities addressed in
paragraph (a)(1) of this section, upon any failure to maintain a ram
after payment for the full required 90-day period, unless that period
has already expired, the operation must immediately refund the payment
made and with interest.
Sec. 784.6 Year 1 rate of payment and limitations on funding.
Subject to the availability of funds and to the proration rules of
Sec. 784.10, ``Year 1'' payments for qualifying operations shall be at
the following rates:
(a) Up to $100 for each eligible ram purchased, up to $2,500 per
sheep and lamb operation;
(b) $.50 for each qualifying sheep enrolled in a qualifying sheep
improvement program, up to $500 per sheep and lamb operation; plus
(c) 20% of the cost of the qualifying facility improvements up to
$2,500 per sheep and lamb operation.
Sec. 784.7 Year 2 and Year 3 time and method for application.
(a) To receive ``Year 2'' and ``Year 3'' benefits, as described in
Sec. 784.1, at rates set out in Sec. 784.9, sheep and lamb operations
may obtain an application, Form FSA-383 (Lamb Meat Adjustment
Assistance Program Payment Application), in person, by mail, by
telephone, or by facsimile from any county FSA office. In addition,
applicants may download a copy of the Form FSA-383 at http://
www.fsa.usda.gov/dafp/psd/.
(b) Sheep and lamb operations must have the certification section
of the application Form FSA-383 completed prior to submission of the
form to the county office.
(c) A request for ``Year 2'' and ``Year 3'' benefits under this
part must be
[[Page 38414]]
submitted on a completed Form FSA-383. The Form FSA-383 should be
submitted to the FSA county office serving the county where the sheep
and lamb operation is located but, in any case, must be received by the
FSA county office by the close of business on August 15, 2001, if
applying for ``Year 2'' benefits, and by the close of business on
August 15, 2002, if applying for ``Year 3'' benefits. Applications not
received by the respective deadlines will be returned as not having
been timely filed and the sheep and lamb operation will not be eligible
for the benefits which were the subject of the failed application.
(d) The sheep and lamb operation requesting benefits under this
part must certify to the accuracy of the information provided in their
application for benefits. All information provided is subject to
verification and spot checks by FSA. Refusal to allow FSA or any other
agency of the Department of Agriculture to verify any information
provided will result in a determination of ineligibility. Data
furnished by the applicant will be used to determine eligibility for
program benefits. Furnishing the data is voluntary; however, without it
program benefits will not be approved. Providing a false certification
to the Government is punishable by imprisonment, fines and other
penalties.
Sec. 784.8 Year 2 and Year 3 eligibility.
(a) Subject to the availability of funds, ``Year 2'' and ``Year 3''
payments will, as described to in Sec. 784.1, be made for eligible
marketings of slaughter lambs for slaughter. (Criteria for feeder lamb
payments appear elsewhere in this section). Such payments for slaughter
lambs, as opposed to feeder lambs, can be received by an operation, at
the rates described in Sec. 784.9, for those eligible lambs slaughtered
in the respective time periods comprising ``Year 2'' and ``Year 3'' if
the lambs were owned, by the operation, in the normal course of raising
lambs for slaughter, continuously for 30 days prior to the marketing
for slaughter and if the carcasses produced by the slaughter of the
lamb meets the criteria set out in paragraph (b) of this section. Other
criteria, as set out in this part, may also apply as a condition for,
or limitation on, payment.
(b) In order for a marketing of a slaughter lamb to qualify for
payment under paragraph (a) of this section, the carcass produced by
the slaughter must be evaluated and certified by an AMS agent or their
assigned representative that such carcass meets the following criteria:
(1) Meet the requirements of USDA Quality Grade Choice or Prime;
(2) Meet the requirements of USDA Yield Grade 2;
(3) Have a muscling confirmation score of ``Average Choice'' or
better; and
(4) Have a 55-75 pound dressed hot carcass weight;
(c) Subject to the availability of funds, in order to be eligible
for the ``Year 2'' and ``Year 3'' feeder lamb payments referred to in
Sec. 784.1, at the rates specified in Sec. 784.9, sheep operations must
have in the preceding year of which payment is sought had a gross
annual revenue of $2.5 million or less, and must for the year in which
the payment is sought marketed qualifying feeder lambs. In order for a
feeder lamb to be a qualifying feeder lamb it must have been:
(1) Owned by the operation, as part of its normal raising of lambs
for slaughter, continuously for 30 days prior to the time of the
qualifying marketing; and
(2) At the time of the marketing must have been, as determined and
certified by AMS, thick-muscled and large-framed.
(d) To be eligible for any payments under this section, the sheep
and lamb operation must be engaged in the business of producing and
marketing agricultural products at the time of filing the application.
(e) In addition, to be eligible for ``Year 2'' and ``Year 3''
payments, a sheep and lamb operation must submit a timely application
during the application period for ``Year 2'' and ``Year 3'' benefits
and comply with all other terms and conditions of this part or are
contained in the application to be eligible for such benefits.
Sec. 784.9 Year 2 and Year 3 rate of payment.
Subject to the availability of funds, and the proration rules set
out in Sec. 784.10, ``Year 2'' and ``Year 3'' payments may be made to
sheep and lamb operations at the following rates:
(a) $3 for each qualifying feeder lamb; plus
(b) $5 for each eligible qualifying slaughter lamb, except those
slaughter lambs marketed during the period of June 1 through July 31 of
the applicable program year for which the payment rate will be $8 per
head.
Sec. 784.10 Availability of funds for Year 1 through Year 3.
Total payments under this part, unless otherwise determined by the
FSA, cannot exceed $30 million. In the event that funds should be
insufficient to complete payments for a program year then the claims
for that program year shall be prorated by a national factor so as to
reduce the payments to be made to the amount available. Payments for
preceding years will not be affected.
Sec. 784.11 Appeals.
Any sheep and lamb operation which is dissatisfied with a
determination made pursuant to this part may make a request for
reconsideration or appeal of such determination in accordance with the
appeal regulations set forth at parts 11 and 780 of this title.
Sec. 784.12 Misrepresentation and scheme or device.
(a) A sheep and lamb operation shall be ineligible to receive
assistance under this program if it is determined by the State
committee or the county committee to have:
(1) Adopted any scheme or device which tends to defeat the purpose
of this program;
(2) Made any fraudulent representation; or
(3) Misrepresented any fact affecting a program determination.
(b) Any funds disbursed pursuant to this part to any person or
operation engaged in a misrepresentation, scheme, or device, shall be
refunded with interest together with such other sums as may become due.
Any sheep and lamb operation or person engaged in acts prohibited by
this section and any sheep and lamb operation or person receiving
payment under this part shall be jointly and severally liable with
other persons or operations involved in such claim for benefits for any
refund due under this section and for related charges. The remedies
provided in this part shall be in addition to other civil, criminal, or
administrative remedies which may apply.
Sec. 784.13 Estates, trusts, and minors.
(a) Program documents executed by persons legally authorized to
represent estates or trusts will be accepted only if such person
furnishes evidence of the authority to execute such documents.
(b) A minor who is otherwise eligible for assistance under this
part must, also:
(1) Establish that the right of majority has been conferred on the
minor by court proceedings or by statute;
(2) Show a guardian has been appointed to manage the minor's
property and the applicable program documents are executed by the
guardian; or
(3) Furnish a bond under which the surety guarantees any loss
incurred for which the minor would be liable had the minor been an
adult.
[[Page 38415]]
Sec. 784.14 Death, incompetency, or disappearance.
In the case of death, incompetency, disappearance or dissolution of
a person that is eligible to receive benefits in accordance with this
part, such person or persons specified in part 707 of this chapter may
receive such benefits, as determined appropriate by FSA.
Sec. 784.15 Maintaining records.
Persons making application for benefits under this program must
maintain accurate records and accounts that will document that they
meet all eligibility requirements specified herein. Such records and
accounts must be retained for 3 years after the date of payment to the
sheep and lamb operations under this program. Destruction of the
records after such date shall be the risk of the party undertaking the
destruction.
Sec. 784.16 Refunds; joint and several liability.
(a) In the event there is a failure to comply with any term,
requirement, or condition for payment arising under the application, or
this part, and if any refund of a payment to FSA shall otherwise become
due in connection with the application, or this part, all payments made
under this part to any sheep and lamb operation shall be refunded to
FSA together with interest as determined in accordance with paragraph
(c) of this section and late payment charges as provided in part 1403
of this title.
(b) All persons signing a sheep and lamb operation's application
for payment as having an interest in the operation shall be jointly and
severally liable for any refund, including related charges, which is
determined to be due for any reason under the terms and conditions of
the application or this part with respect to such operation.
(c) Interest shall be applicable to refunds required of any person
under this part if FSA determines that payments or other assistance was
provided to a person who was not eligible for such assistance. Such
interest shall be charged at the rate of interest which the United
States Treasury charges the Commodity Credit Corporation (CCC) for
funds, from the date FSA made such benefits available to the date of
repayment or the date interest increases as determined in accordance
with applicable regulations. FSA may waive the accrual of interest if
FSA determines that the cause of the erroneous determination was not
due to any action of the person.
(d) Interest determined in accordance with paragraph (c) of this
section may be waived at the discretion of FSA alone for refunds
resulting from those violations determined by FSA to have been beyond
the control of the person committing the violation.
(e) Late payment interest shall be assessed on all refunds in
accordance with the provisions of, and subject to the rates prescribed
in 7 CFR part 792.
(f) Any excess payments made by FSA with respect to any application
under this part must be refunded.
(g) In the event that a benefit under this subpart was provided as
the result of erroneous information provided by any person, the benefit
must be repaid with any applicable interest.
Signed at Washington, DC, on June 16, 2000.
George Arredondo,
Acting Administrator, Farm Service Agency.
[FR Doc. 00-15724 Filed 6-19-00; 11:19 am]
BILLING CODE 3410-05-P
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