[Federal Register Volume 78, Number 22 (Friday, February 1, 2013)]
[Notices]
[Pages 7387-7389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-02218]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Continuation of Farm Service Agency 2008 Farm Bill Programs
AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.
ACTION: Notice.
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SUMMARY: The American Taxpayer Relief Act of 2012 (ATRA) extended the
authorization of the Food, Conservation, and Energy Act of 2008 (the
2008 Farm Bill) through the 2013 crop year, fiscal year (FY), or
calendar year, as applicable, for certain Commodity Credit Corporation
(CCC) commodity
[[Page 7388]]
and conservation programs administered by the Farm Service Agency
(FSA). This notice provides information about which programs have been
extended for an additional year, which programs producers will need to
enroll in through applications and contracts, and the dates for the
submission of the required applications. The extended programs will be
administered through their current terms and procedures for the
applicable period of extension, except as provided in this notice.
DATES: Effective Date: February 1, 2013.
FOR FURTHER INFORMATION CONTACT: Craig Trimm; telephone: (202) 720-
3175. Persons with disabilities who require alternative means for
communication (Braille, large print, audiotape, etc.) should contact
the USDA Target Center at (202) 720-2600 (voice and TDD).
SUPPLEMENTARY INFORMATION: ATRA (Pub. L. 112-240, January 2, 2013)
authorized the continuation of certain CCC and FSA payment limitation
and income eligibility requirements, commodity programs, and
conservation programs previously authorized or amended in the 2008 Farm
Bill (Pub. L. 110-246). Certain other authorities were not extended.
Program authorizations and mandatory funding authorizations that were
not extended are noted below. Extended programs (including mandatory
funding) include the Direct and Counter-Cyclical Payment Program (DCP),
Average Crop Revenue Election Program (ACRE), Milk Income Loss Contract
Program (MILC), Dairy Product Price Support Program (DPPSP), Dairy
Indemnity Payment Program (DIPP), Marketing Assistance Loans (MAL),
Loan Deficiency Payments (LDP), Conservation Reserve Program (CRP),
Upland Cotton and Extra Long Staple Cotton Programs, and Sugar Program.
Generally, these programs will continue to operate in 2013 as they
did in 2012, with some minor modifications noted briefly below. ATRA
authorized most CCC programs for the 2013 crop year, but MILC was
authorized for FY 2013, and DPPSP was authorized for calendar year
2013.
FSA is updating software, forms, and handbooks for the 2013
continuation of the programs. FSA is updating program Fact Sheets and
will conduct extensive outreach to ensure that producers are aware of
sign-up periods and application requirements. Details for each program
are being announced in news releases to facilitate planning for the
2013 growing season.
DCP and ACRE
The 2013 DCP provisions are unchanged from 2012. DCP provides two
types of payments to eligible producers on enrolled farms: direct
payments and counter-cyclical payments. Both are calculated using
historical base acres and payment yields established for the farm. To
participate in and receive DCP payments, eligible producers must enroll
through the annual sign-up. Signup for the 2013 crop year will begin on
February 19, 2013, and will end on August 2, 2013. Direct payments will
be issued to eligible producers in October 2013. As the 2008 Farm Bill
did not authorize advance direct payments for the 2012 crop year, such
payments are also not authorized for the 2013 crop year. Counter-
cyclical payments for the 2013 crop will be issued to eligible
producers beginning in October 2014, if effective prices are less than
target prices. As with previous years, if effective prices are greater
than specified target prices during the 2013 marketing year, there will
be no counter-cyclical payments.
The 2013 ACRE provisions are mostly unchanged from 2012. ACRE is an
alternative program to DCP that provides payments only if both the
State and Farm triggers are met. The State ACRE Guarantee must exceed
the Actual State Revenue and the Farm ACRE Guarantee must exceed the
Actual Farm Revenue. Producers who elect to enroll a farm in ACRE must
agree to:
(1) Forgo counter-cyclical payments,
(2) A 20-percent reduction in their direct payments, and
(3) A 30-percent reduction in the MAL rates for all commodities
produced on the farm that are eligible for ACRE payments.
ACRE payments are tied to current plantings on the farm, in
contrast to countercyclical payments, which are tied to the farm's base
acres. As specified in the 2008 Farm Bill and in the current
regulations for ACRE, a producer who elected to participate in ACRE
could not participate in DCP from the year in which he elected to
participate in ACRE through 2012. Because the provision imposing
irrevocability of such election expired on September 30, 2012, all
eligible producers may choose to enroll in either DCP or ACRE for the
2013 crop year. This means that producers who were enrolled in ACRE in
2012 may elect to enroll in DCP in 2013 or may re-enroll in ACRE in
2013 (and vice versa), subject to eligibility requirements. To
participate and receive ACRE payments, eligible producers must sign up
to enroll in ACRE for the 2013 crop year. ACRE signup will begin on
February 19, 2013 (at the same time that DCP signup begins), and will
end on June 3, 2013.
MILC
MILC was extended by ATRA through September 30, 2013, with minor
modifications. MILC compensates enrolled dairy producers when the
Boston Class I milk price falls below $16.94 per hundredweight (cwt),
as adjusted by the dairy feed ration adjustment specified in both the
2008 Farm Bill and in the current regulations for MILC, 7 CFR Part
1430, ``Dairy Products.'' All producers' MILC contracts are
automatically extended to September 30, 2013. Producers therefore do
not need to re-enroll in MILC. The production start month previously
selected by an operation is applicable for FY 2013, unless a producer
requests a change as discussed below.
September 2012 was the last eligible month for MILC payments under
the 2008 Farm Bill. ATRA increased the MILC payment formula for
September 2012, resulting in a payment rate of about $0.59 per
hundredweight for that month. Prior to ATRA, the applicable rate as of
September 1, 2012 would have been zero under the formula in the 2008
Farm Bill. ATRA reduces the payment rate beginning September 1, 2013.
The September 2012 payment will automatically be disbursed in the near
future to eligible producers who have not exceeded their maximum
eligible production quantity of 2.985 million pounds for FY 2012.
Producers currently enrolled in MILC are also eligible for about a
$0.02 per hundredweight payment for October 2012, if that month is
selected as their production start month for FY 2013. The payment rate
determined for November 2012 is zero. Payments for subsequent months
will be determined as data become available.
Dairy operations may select a start month for FY 2013 other than
October 2012 (the start of FY 2013). Producers will be able to select
any month in FY 2013 to begin receiving payments. During the period
(referred to as the ``relief period'') beginning February 1, 2013,
through the close of business on February 28, 2013, producers with
existing MILC contracts may make production start month selection
changes for FY 2013 by completing and submitting form CCC-580M to FSA.
For producers with new dairy operations that began operation before
February 1, 2013, FSA will accept applications (form CCC-580) beginning
February 1, 2013, and ending September 30, 2013. For eligibility
information and other
[[Page 7389]]
requirements, producers should contact their local FSA office. During
the relief period, the producer may select any month in FY 2013
(beginning October 2012) as the production start month; start month
selection provisions specified in 7 CFR 1430.205, ``Selection of
Starting Month'' do not apply. After the relief period, beginning March
1, 2013, all production start month changes for new and existing MILC
participants must be made according to normal start month selection
provisions as specified in 7 CFR 1430.205.
DPPSP
DPPSP is extended through December 31, 2013. DPPSP supports the
price of cheddar cheese, butter, and nonfat dry milk by providing a
standing offer from CCC to purchase those products at specific support
prices. The support prices specified in the 2008 Farm Bill are the
prices for 2013.
DIPP
DIPP is extended through September 30, 2013. Through DIPP, FSA
issues payments to dairy producers for losses incurred because they
were required to remove their milk production from commercial markets
due to the presence of certain chemical or toxic residue.
MAL and LDP
The MAL program and LDP program were extended by ATRA for the 2013
crop year. The terms and conditions of such programs' provisions are
unchanged from 2012. MALs for loan commodities allow producers to
receive 9-month non-recourse loans from CCC. MALs provide an influx of
cash when market prices are typically at harvest-time lows, allowing
producers to delay the sale of the commodity until more favorable
market conditions emerge. In lieu of securing a MAL, producers may
elect to receive an LDP.
CRP
ATRA maintains the CRP enrollment cap at the 32 million acre level
for FY 2013, unchanged from the 2008 Farm Bill. Current CRP enrollment
is 27 million acres. In addition to periodic general signups, producers
may enroll environmentally sensitive land through CRP's continuous
signups. Continuous signup includes land enrolled through the
Conservation Reserve Enhancement Program (CREP), which are state and
federal partnerships that provide payments for installing specific
conservation practices at specific locations. The dates producers may
begin entering into new CRP contracts will be announced through the
normal process of news releases.
Sugar Program
The Sugar Program, including the related Feedstock Flexibility
Program, is extended for the 2013 crop year with no changes. The Sugar
Program will continue to operate as specified in the 2008 Farm Bill and
in the current regulations.
Upland Cotton and ELS Cotton
The Upland Cotton and ELS Cotton Programs are extended through the
2013 crop year, with no changes. The 2008 Farm Bill specified that the
special import quota for upland cotton and the Competitiveness Program
for ELS Cotton were for a period through July 31, 2013; these programs
are extended through the 2013 crop year, which ends on July 31, 2014.
The Upland Cotton and ELS Cotton Programs will continue to operate as
specified in the 2008 Farm Bill and in the current regulations.
Other Payment Eligibility Requirements Extended
ATRA extended the provisions of the 2008 Farm Bill that concern
income eligibility and payment limitation.
The adjusted gross income (AGI) requirements for 2013 are unchanged
from 2012 requirements. The average AGI provisions apply to most of the
programs administered by FSA and NRCS. Before producers can receive
payments for 2013 programs with AGI provisions, they must file the
proper forms to certify that their incomes are below specified levels.
The Internal Revenue Service also requires written consent from the
individual or legal entity for it to verify the individual or legal
entity's AGI and to provide such verification to the U.S. Department of
Agriculture. To provide the annual AGI certification and written
consent, participants must complete Form CCC-933, ``Average Adjusted
Gross Income (AGI) Certification and Consent to Disclosure of Tax
Information'' for 2013. Form CCC-933 is available at local FSA and NRCS
offices or online through the FSA Web site.
Participants in Federal farm programs that have farm land
identified as highly erodible or as a wetland must continue to comply
with certain land and environmental conservation requirements for
payment eligibility purposes in 2013. The regulations in 7 CFR part 12,
``Highly Erodible Land and Wetland Conservation,'' and 7 CFR part 1400,
``Payment Eligibility and Payment Limitation for 2009 and Subsequent
Crop, Program, or Fiscal Years,'' apply to all FSA and CCC programs in
2013.
Programs That Are Authorized but Have Not Been Funded
Some programs, including certain disaster assistance programs, were
reauthorized but are subject entirely to appropriation in each of
fiscal years 2012 and 2013. As a result, those programs can be operated
only if FY 2013 funds are appropriated for them. Such programs include
the Biomass Crop Assistance Program (BCAP); Voluntary Public Access--
Habitat Incentive Program (VPA-HIP); Livestock Indemnity Program (LIP);
Livestock Forage Disaster Assistance Program (LFP); Emergency
Assistance for Livestock, Honeybees, and Farm-Raised Fish Program
(ELAP); and Tree Assistance Program (TAP).
Expired Programs
Some programs in the 2008 Farm Bill were not extended by ATRA.
There is no authority provided by ATRA for the Supplemental Revenue
Assistance Payments Program (SURE) or for the Market Loss Assistance
for Asparagus Producers Program (ALAP).
Environmental Review
FSA has determined that the authorization to extend certain
provisions of the 2008 Farm Bill through 2013 as described in this
notice would not constitute a major Federal action significantly
affecting the quality of the human environment, as no new program
provisions or implementation requirements were established under ATRA.
Therefore, in accordance with the 7 CFR Part 799, Environmental Quality
and Related Environmental Concerns--Compliance with the National
Environmental Policy Act, implementing the regulations of the Council
on Environmental Quality (40 CFR parts 1500-1508), no environmental
assessment or environmental impact statement will be prepared.
Signed at Washington, DC, on January 29, 2013.
Juan M. Garcia,
Executive Vice President, Commodity Credit Corporation and
Administrator, Farm Service Agency.
[FR Doc. 2013-02218 Filed 1-31-13; 8:45 am]
BILLING CODE 3410-05-P