[Federal Register: August 7, 2003 (Volume 68, Number 152)]
[Notices]
[Page 47010-47012]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07au03-15]
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[[Page 47010]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
2003 Hurricane Assistance Program for Louisiana's Sugarcane
Producers and Sugarcane Processors
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: The Commodity Credit Corporation (CCC) is issuing this Notice
to implement section 207 of the Agricultural Assistance Act of 2003.
This Act requires CCC to provide compensation to Louisiana sugarcane
producers and processors who suffered economic losses from the
cumulative effects of Tropical Storm Isadore, Hurricane Lili, and
excessive rains in October 2002. CCC will make payments to affected
sugarcane processors. The processors shall then disburse payments to
affected producers from the payments they receive in a manner
reflecting current contracts between the two parties. This Notice
provides eligibility criteria and application procedures that will be
used to conduct this program.
DATES: The dates applicable to the 2003 Hurricane Assistance Program
are as follows:
(1) Eligible producers have until August 18, 2003, to select a base
year other than 1999 for the purpose of calculating their 2002-crop
sugar loss.
(2) Farm operators have until September 2, 2003, to certify
ownership tract sugar losses on their farms.
(3) Sugarcane processor applications must be submitted after
September 4, 2003 but no later than September 22, 2003.
(4) Payments will be issued to applicants meeting all eligibility
requirements beginning October 8, 2003, or as the Louisiana Farm
Service Agency (FSA) State Executive Director determines.
(5) Producers must be paid within 30 days of the date the initial
payments were made to the applicants.
FOR FURTHER INFORMATION CONTACT: Barbara Fecso, Dairy and Sweeteners
Group, USDA/FSA/EPAS, 1400 Independence Ave., SW., STOP 0516,
Washington, DC 20250-0516; telephone (202) 720-4146; facsimile (202)
690-1480; electronic mail: barbara.fecso@usda.gov <mailto:barbara.fecso@usda.gov>.
SUPPLEMENTARY INFORMATION:
Environmental Compliance
A review for the need of an environmental assessment was completed
to consider this action's potential impacts on the human environment in
accordance with the provisions of the National Environmental Policy Act
of 1969 (NEPA), 42 U.S.C. 4321 et seq., regulations of the Council on
Environmental Quality (40 CFR parts 1500-1508), and FSA's regulations
for NEPA compliance, 7 CFR part 799. It was determined that this
program will have slight to no significant impact on the quality of the
human environment. Therefore, these actions are categorically excluded
from compliance with 7 CFR part 799 and no further review or assessment
is necessary. These findings are available for public review upon
request.
Paperwork Reduction Act
Section 217(b) of Title II of Division N of the Consolidated
Appropriations Resolution, 2003 (Public Law 108-7) (2003 Act) requires
that this Notice be promulgated and the programs administered without
regard to 44 U.S.C. 35, the Paperwork Reduction Act. Thus, information
to be collected from the public to implement this program and the
associated burden, in time and money, the information collection will
have on the public do not need Office of Management and Budget approval
and are not subject to the 60-day public comment period 5 CFR
1320.8(d)(1) requires.
Background
This Notice implements the 2003 Hurricane Assistance Program.
Section 207 of the 2003 Act authorizes this program which requires CCC
to assist certain processors by providing them payments or commodities
from CCC inventory. The law was intended to partially compensate
Louisiana sugarcane producers and processors for losses related to the
natural disaster declaration resulting from Tropical Storm Isadore,
Hurricane Lili, and excessive rains in October 2002. CCC sugar
inventory is not available. Thus, this program will be carried out by
issuing payments. CCC has resolved other discretionary matters for
carrying this program as follows:
Determination of Hurricane Assistance Program Payment Rate Per Pound
On February 20, 2003, the date the 2003 Act was passed, the sugar
14 New York Exchange nearby price for raw sugar was 21.96
cents per pound. Subtracting out the Louisiana average transportation
cost per pound of 1.21 cents and Louisiana's average location discount
results in a base price of about 20 cents per pound. Thus, CCC will
make payments based on 20 cents per pound.
Determination of Loss Eligibility
To be eligible for this program, this notice requires evidence of a
tract 2002-crop sugar percentage loss equal or greater than 20 percent.
This percent loss, coupled with the estimated 15 percent economic loss
due to time and money spent salvaging the sugarcane plants (which are
perennials), maintenance to machinery damaged by mud, as well as on
field repair and replanting, results in an implicit required loss of
35%. FSA is using the estimate of 15 percent economic loss based on a
Louisiana State University study. Louisiana sugarcane processor and
producer losses are estimated to be far greater than the amount of
assistance the 2003 Act provided. Compensation will then be paid on a
portion of losses exceeding this threshold--limited by the amount
(150,000 tons or 300,000,000 pounds) provided in the 2003 Act.
2003 Hurricane Assistance Program Operation
I. Applicability
This Notice sets forth terms and conditions under which CCC will
make payments to eligible Louisiana sugarcane processors for 2002-crop
weather-related sugarcane losses.
[[Page 47011]]
II. Definitions
Commercially Recoverable Sugar (CRS) Final Settlement Payment
Pounds. The total actual pounds of 96 sugar degrees the producer
delivers to a sugarcane processor during a given crop year.
Farm. The acreage identified under one FSA Farm Serial Number.
Farm Operator. The person in general control of the farming
operations on all ownership tracts of a farm during the program.
FSA. FSA means the Farm Service Agency.
Ownership Tract. A subset of the acreage of a farm associated with
a separate ownership interest.
Producer. A person (including owners) who receives a payment or
shares in the payment a sugarcane processor makes for delivery of
sugarcane.
Split-Shippers. Farm operators who deliver their harvested cane to
more than one sugarcane processor during a given crop year.
Sugarcane Processor. A person or entity who produces raw cane sugar
by commercially processing sugarcane and has an allocation under the
sugar marketing allotment program.
III. Applicant Eligibility Requirements
Applicants must meet all the following requirements to be eligible
for 2003 Hurricane Assistance Program benefits:
(1) Be a sugarcane processor located in Louisiana.
(2) Be eligible to obtain a loan under section 156(a) of the
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7272(a)).
(3) Submit the application according to the requirements and
deadlines the Notice specifies.
IV. Aggregate Amount of Assistance
Total compensation equals the market value of 150,000 tons or 300
million pounds of CCC sugar. CCC has determined that this value is 20
cents per pound (or $60 million in total). CCC will maintain a 7
percent reserve ($4.2 million) in the event of appeals. The reserve
will be dispersed once the appeals process is satisfied.
V. 2002-Crop Sugar Loss
(1) Loss will be measured for each ownership tract by the following
formula: Loss = [sugar per acre (base year) - sugar per acre (2002
crop)] x tract acres in 2002.
(2) The base year for figuring losses will be 1999 unless the
producer requests a different year (2000 or 2001).
(A) Producers have until August 18, 2003, to select a different
base year.
(B) The same base year will be used for all farms with the same
operator. If some tracts (cannot be ALL tracts) had no production in
the base year, the State yield will be used.
(C) Tracts with production in the base year and no FSA certified
acres will require the operator to:
(i) Pick a different base year; or
(ii) Make this tract ineligible for disaster benefits.
(D) Tracts with FSA certified acreage and no production in the base
year will require the operator to:
(i) Pick a different base year; or
(ii) Make this tract ineligible for disaster benefits.
(E) Tracts not harvested for sugar or seed will be assigned a zero
yield in the base year.
(3) Sugar per acre for each ownership tract is calculated as:
(A) The CRS Final Settlement Payment Pounds from sugarcane
processor records for the applicable year divided by
(B) The ownership tract's total cane acres (minus Payment-in-Kind
acres) identified in the FSA Certified Acreage Report for the same
year.
(4) The 1999 average state yield will be applied to any operator
with no production history in 1999, 2000 or 2001 and produces sugarcane
in the 2002 crop year.
(5) In the case of split-shippers, total FSA certified acres will
be prorated to each mill based on pounds of sugar each mill produced.
For mills that did not identify sugar produced by ownership tract at
time of delivery, the total production will be prorated to each tract
based on total FSA certified acres.
(6) Farm operators have until September 2, 2003, to certify
ownership tract sugar losses on their farms.
(7) Applicants must submit a CCC-prescribed form certifying the
sugarcane processor's loss calculation to CCC, no earlier than
September 4, 2003, and no later than September 22, 2003.
(A) No late-filed applications will be accepted.
(B) All eligible farm operators must certify the loss calculations
included in the application.
VI. 2002-Crop Eligible Tract Sugar Losses
(1) Ownership tract sugar losses are eligible if the tract's 2002-
crop sugar percentage loss is equal to or greater than 20 percent.
(2) The 2002-crop sugar percentage loss for an FSA ownership tract
is defined as: [1 - (sugar per acre (2002 crop) / sugar per acre (base
year))] x 100.
The eligible tract sugar losses are defined as follows: 80% of the
2002-crop sugar losses greater than or equal to 40%, plus 60% of the
2002-crop sugar losses greater than or equal to 30% and less than 40%,
plus 40% of the 2002-crop sugar losses greater than or equal to 20% and
less than 30%.
(4) If the computed total of all 2002-crop eligible tract sugar
losses across all eligible sugarcane processors is less than, or
exceeds, 300 million pounds, a factor will be applied to make this
total exactly 300 million pounds.
VII. Payment Calculation
An applicant's payment will equal the total eligible tract sugar
losses for its producers multiplied by 20 cents per pound.
VIII. Payments to Affected Producers
Applicants must share their hurricane assistance payments with
affected producers according to the percentage shares for dividing net
revenue as stated in their 2002 farm processor/producer contracts.
Payments to producers must be made within 30 days of the date initial
payments were made to eligible processors.
IX. Contract Liability
All sugarcane processors and associated operators receiving a share
of the total hurricane assistance payment are jointly and severally
liable for program violations and resulting repayments, if applicable.
X. Misrepresentation, scheme, or device
A person shall be ineligible to receive assistance under this
Notice and be subject to such other remedies as law may allow, if the
FSA State or county committee, or any other FSA official, determines
that such person has:
(1) Adopted a scheme or other device that tends to defeat the
purpose of the program operated under this Notice,
(2) Made any fraudulent representation regarding this program, or
(3) Misrepresented any fact affecting a program determination.
XI. Creditor liens and claims; and CCC offsets and withholdings
(1) Any benefit or portion thereof due any person under this
program shall be allowed without regard to questions of title under
State law and without regard to any claim or lien in favor of any
person, except agencies of the U.S. Government.
(2) CCC may offset or withhold any amount due CCC in accordance
with the provisions of the regulations at 7 CFR part 1403 or successor
regulations as designated by the Department.
[[Page 47012]]
XII. Administration
When circumstances beyond the applicant's control preclude
compliance, the county committee may request the Louisiana FSA State
Executive Director to grant relief. In such cases, except for statutory
requirements, the Louisiana FSA State Executive Director may, in order
to more equitably accomplish this Notice's goals, waive or modify
deadlines if the failure to meet such deadlines does not adversely
affect program operation. All program payments will be subject to
review.
XIII. Appeals
Regulations at 7 CFR part 11 apply to this Notice. CCC is not
involved in resolving disputes between processors and producers.
Signed at Washington, DC, on August 1, 2003.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 03-20080 Filed 8-1-03; 4:24 pm]
BILLING CODE 3410-05-P
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