[Federal Register Volume 59, Number 127 (Tuesday, July 5, 1994)]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16111]
Federal Register / Vol. 59, No. 127 / Tuesday, July 5, 1994 /
[[Page Unknown]]
[Federal Register: July 5, 1994]
VOL. 59, NO. 127
Tuesday, July 5, 1994
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1421
RIN 0560-AD74
General Price Support Regulations for Grain, Rice, and Oilseeds
for 1993 and Subsequent Crop Years
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule amends the regulations with respect to the
price support loan programs for grains and similarly handled
commodities, including oilseeds (canola, mustard seed, rapeseed,
safflower seed, soybeans, and sunflower seed), which are conducted by
the Commodity Credit Corporation (CCC) in accordance with the
Agricultural Act of 1949, as amended (the 1949 Act), and other acts.
The amendments made by this interim rule will provide greater clarity,
enhance the administration of CCC programs by providing uniformity
between CCC price support programs, eliminate obsolete provisions,
provide more authority to State and county committees in administering
the programs, lessen the administrative actions CCC imposes on
producers who violate the loan and loan deficiency payment (LDP)
agreements, and correct errors.
DATES: Interim rule effective July 5, 1994. Comments must be received
on or before August 4, 1994, in order to be assured of consideration.
ADDRESSES: Submit comments to Director, Cotton, Grain, and Rice Price
Support Division, Agricultural Stabilization and Conservation Service,
United States Department of Agriculture (USDA), PO Box 2415,
Washington, DC 20013-2415; telephone 202-720-7641. Comments received
may be inspected between 9 a.m. and 4:30 p.m., Monday through Friday,
except holidays, in room 3623, South Agriculture Building, USDA, 14th
Street and Independence Avenue, Washington, DC.
FOR FURTHER INFORMATION CONTACT: Margaret Wright, Program Specialist,
Cotton, Grain, and Rice Price Support Division, Agricultural
Stabilization and Conservation Service, USDA, PO Box 2415, Washington,
DC 20013-2415; telephone 202-720-8481.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not-significant for purposes of
Executive Order 12866 and therefore has not been reviewed by OMB.
Federal Assistance Program
The title and number of the Federal Assistance Program, as found in
the Catalog of Federal Domestic Assistance, to which this rule applies
are Commodity Loans and Purchases--10.051.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable because the CCC is not required by 5 U.S.C. 553 or any other
provision of law to publish a notice of proposed rulemaking with
respect to the subject matter of these determinations.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will have no significant impact on the quality of human
environment.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which requires 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).
Executive Order 12778
This interim rule has been reviewed pursuant to Executive Order
12778. To the extent State and local laws are in conflict with these
regulatory provisions, it is the intent of CCC that the terms of the
regulations prevail. The provisions of this interim rule are not
retroactive. Prior to any judicial action in a court of competent
jurisdiction, administrative review under 7 CFR part 780 must be
exhausted.
Paperwork Reduction Act
Public reporting burden for the information collections contained
in this regulation with respect to price support programs is estimated
to average 15 minutes per response, including the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collections of information. The information collections have previously
been cleared under the current regulations by the Office of Management
and Budget (OMB), and assigned OMB Nos. 0560-0087 and 0560-0129. In
accordance with the provisions of 44 U.S.C. 35, the information
collection requirements that are revised as a result of this rule will
be resubmitted to OMB for review.
Comments
Since producers are currently making decisions regarding
commodities which may be pledged as collateral for CCC price support
loans, the provisions of this interim rule are effective upon
publication in the Federal Register. Comments are requested, however,
and will be taken into consideration when developing the final rule.
This interim rule will be scheduled for review so that a final document
discussing comments received and any amendments required can be
published in the Federal Register as soon as possible.
Background
The 1949 Act sets forth the statutory authority for CCC price
support programs. CCC price support programs are intended to stabilize
market prices and provide interim financing to producers to assist in
the orderly marketing of eligible commodities.
This interim rule amends regulations found at 7 CFR part 1421 to
provide rules for administering CCC price support programs for the 1993
and subsequent crop years.
Section 1421.1 is amended to remove the reference to soybeans.
Soybeans are already included because they are defined as an oilseed in
Sec. 1421.3.
Section 1421.3 is amended to: (a) Add the reference to part 1425;
(b) clarify that the definitions in this part apply if there are any
conflicts with the referenced parts; and (c) add a definition of high
moisture commodities.
This interim rule amends Sec. 1421.4(b) to add references to a
receiver, guardian, or trustee which were inadvertently omitted. In
addition, Sec. 1421.4(f) is amended to remove an obsolete reference.
Section 1421.5(b)(1) is amended to clarify the application of the
provision of the paragraph to loans, purchases, and LDP's and
Sec. 1421.5(b)(4)(iv) to correct the unit of measure for peanuts to
tons and hundredths of a ton.
Section 110 of the 1949 Act sets forth the statutory authority for
the farmer owned reserve (FOR) program for wheat and feed grains.
Producers with regular 9-month nonrecourse price support loans are
eligible to enter the FOR upon maturity of the regular loan. Producers
may repay regular 9-month loans and repledge the commodity pledged as
collateral for such initial loan for a subsequent loan. Under current
program regulations, the maturity date for the subsequent loan is the
same as the maturity date for the initial 9-month loan. Section
110(b)(1) of the 1949 Act provides, in part, that ``an extended loan
shall only be made to a producer after the expiration of a 9-month
price support loan * * *.'' Accordingly, under current program
regulations, grain pledged as collateral for a subsequent loan is not
eligible to be pledged as collateral for a FOR loan because the grain
is not placed into the FOR ``after the expiration of a 9-month price
support loan''.
This interim rule amends Sec. 1421.5(d)(2) to provide that CCC may
allow producers to extend price support loans which are less than 9
months in length because the collateral securing such loan had been
previously pledged as collateral for a price support loan so that the
maturity date for such subsequent loan is the last day of the ninth
month following the month such subsequent loan was disbursed. This
would permit producers having such a loan to enter into the FOR upon
maturity if all other eligibility requirements are met.
This interim rule amends Sec. 1421.7 by removing paragraph (b) and
redesignating paragraphs (c) and (d) as paragraphs (b) and (c),
respectively. The weed control provisions are removed because CCC has
determined that weed control laws do not affect the value of a
commodity.
In addition, this interim rule amends Sec. 1421.7(c)(1) to include
rice and to remove the reference to the weed control law discounts.
Section 1421.7 is also amended to redesignate paragraph (c)(3) as
(c)(4) and add a new paragraph (c)(3), which was inadvertently omitted,
which includes the method to determine the loan rate for rice based on
the milling yield.
This interim rule amends Sec. 1421.8(b)(2) to remove an incorrect
reference to the United States Warehouse Act.
This interim rule amends Sec. 1421.9(f)(2)(iv) by removing
paragraph (G) to correct an error. Rice has not been stored identity
preserved for many years.
This interim rule amends Secs. 1421.9(f)(2)(xiv)(B)(5)(v) and
1421.18(b)(15)(ii)(G) to correct the terminology that the sunflower
seed must pass through a \14/64\'' round hole screen.
This interim rule amends Sec. 1421.11(a) to correct a typographical
error.
Provisions for taking administrative offsets are provided in part 3
of this title and part 1403 of this chapter. Accordingly, this interim
rule removes and reserves Sec. 1421.14.
This interim rule amends Sec. 1421.16 (a) and (c) to include
applicable references to Forms CCC-666, CCC-666 LDP, CCC-678, and CCC-
709 and to remove incorrect references to Forms CCC-700 and CCC-701.
Producers who violate the loan note and security agreement by
moving farm-stored loan collateral from the structures designated for
the storage of such loan collateral, without prior written consent of
the county committee, are subject to liquidated damages. In some cases,
the collateral is moved to other structures on the farm which makes it
possible for CCC to perfect its security on such collateral. CCC has
determined that when such security can be established, producers should
not be subject to such liquidated damages. Accordingly, this interim
rule amends Sec. 1421.16(b)(2) to clarify that unauthorized removal
only includes cases where CCC cannot obtain the first lien on the
collateral.
It is difficult to prove the amount of damages to CCC for loan and
LDP violations committed by producers; however, 20 and 50 percent of
the loan and LDP rates, as applicable, were established for first and
second violations, respectively, when the county committee determined
that the producer acted in good faith. CCC has determined that the
liquidated damages can be reduced without affecting the administration
of the loan and LDP programs. Accordingly, this interim rule amends
Sec. 1421.16 to: (a) Decrease the liquidated damages amounts; and (b)
add paragraph (q) to provide that any or all of the liquidated damages
may be waived under certain conditions.
In addition, under certain conditions, producers who violate loan
and LDP provisions may be denied loans and LDP's on commodities stored
on the farm. CCC has determined that this penalty is severe and should
only be assessed when the county committee determines that such action
is necessary to protect the interests of CCC. Accordingly, in
Sec. 1421.16, paragraphs (d) and (e) have been amended to remove the
requirement for denial of farm-stored loans or LDP's and paragraphs (k)
and (l) have been amended to clarify that producers must pay the
liquidated damages assessed and such amounts cannot be repaid with a
commodity certificate under the provisions of part 1470 of this
chapter.
Section 1421.17 provides requirements for farm-stored commodities.
Section 1421.17 is amended as follows: (a) Paragraph (a) has been
amended to clarify that the reduced quantity for loan shall be the
mortgaged loan quantity; (b) paragraph (c)(1) has been amended to
clarify that, when farm-stored loans are transferred from the farm to
warehouse storage, the warehouse-stored quantity cannot exceed 110
percent of the loan quantity transferred from the farm-stored loan; (c)
paragraph (c)(3) has been amended to correct a reference; and (d)
paragraph (e) has been amended to include a reference to Form CCC-709
which was omitted.
This interim rule amends Sec. 1421.18 to correct the following
errors: (a) paragraph (b)(12)(iv)(B) has been amended to correct the
spelling of ``green''; (b) paragraph (b)(13)(iv)(D) has been amended to
correct punctuation; and (c) paragraph (b)(13)(iv)(D)(5) has been
amended to correct the spelling of ``inconspicuous.''
This interim rule amends Sec. 1421.19(b) to correct the spelling of
``Form.''
This interim rule amends Sec. 1421.20 as follows: (a) paragraph
(a)(2) to correct two references; and (b) to add paragraph (e) to
provide if a producer moves a commodity from storage without prior
approval on a nonworkday, the producer will not be subject to
administrative actions providing the producer notifies the county
office on the next workday that the commodity has been moved and such
movement is approved by CCC.
Section 1421.22 provides the settlement provisions of price support
loans. This interim rule amends Sec. 1421.22 as follows: (a) Paragraph
(c)(3)(i)(A) to correct the percentage of foreign material for peanuts;
(b) paragraph (c)(4) to remove references to location differentials for
rice because such reference is obsolete; and (c) to add paragraphs (e)
through (i) to include provisions that: (1) CCC may pay to producers
the cost for hauling commodities delivered to CCC beyond the producer's
normal delivery point, (2) producers may deliver commodities to CCC
directly to rail cars, (3) producers will receive storage credit for
commodities delivered or forfeited to CCC in advance of the loan
maturity date, and (4) producers will receive credit for prepaid
warehouse charges for receiving and loading out for commodities
delivered or forfeited to CCC.
Section 1421.29 provides the provisions for LDP's. Section 1421.29
is amended as follows: (a) paragraph (b)(3) removes references to
obsolete forms and corrects an incorrect reference; (b) paragraphs (c)
and (g) adds references to rice for clarity; and (c) paragraph (h) is
removed and paragraph (i) is redesignated as paragraph (h). This
provision was included to allow producers delivering commodities to a
buyer directly after harvest an opportunity to file for a LDP on the
day such commodities were harvested and delivered. This required
producers to report deliveries to the county office before the next
loan repayment rate announcement. Since this provision was implemented,
CCC developed a more workable procedure that allows producers to
request LDP's in advance of harvest and delivery with the LDP rate
based on the loan repayment rate announced and in effect on the day the
commodity is delivered to the processor, buyer, warehouse, or
cooperative according to redesignated Sec. 1421.29(h). Accordingly, the
provisions in removed paragraph (h) are no longer needed.
This interim rule amends Sec. 1421.202 to add a reference to wheat
which was inadvertently omitted and corrects an incorrect reference.
Section 1421.205 is amended as follows: (a) paragraphs (a) and (b)
clarify that a reserve loan is approved rather than disbursed; and (b)
paragraph (a)(2) clarifies the quantity for which the reserve agreement
is approved.
This interim rule amends Sec. 1421.206(b) as follows: (a) removes
references to grain which grades ``sample grade'' because such grain is
not eligible for a FOR loan; and (b) removes the provision that corn
eligible for the FOR must be shelled corn. Currently, corn pledged as
collateral for a FOR loan is restricted to shelled corn. CCC has
determined that producers of ear corn should not be denied
participation in the FOR and that the quality of the grain in the FOR
would not be adversely affected if ear corn is permitted into the FOR.
Accordingly, this interim rule removes the stipulation that corn must
be shelled.
Quantities of a commodity approved for FOR that are in approved
storage earn storage credit and CCC pays producers storage payments at
the end of each quarterly period. Producers with commodities stored in
approved warehouse storage must pay or provide for the storage charged
by the warehouse before CCC will pay the FOR storage payment. This
interim rule amends Sec. 1421.207 to clarify these provisions.
Section 1421.208 has been amended to remove a typographical error.
Section 1421.210 provides the commingling and rotation provisions
for FOR loans. Accordingly, Sec. 1421.210 is amended as follows: (a)
paragraph (a) clarifies the provisions that are applicable to producers
who commingle a quantity of an eligible commodity with the quantity
approved for FOR; (b) paragraphs (b)(2) and (b)(4) add the provision
that producers may rotate FOR loan collateral by replacing such
collateral with grain from existing stocks. In the past, producers were
only allowed to use grain from their most recent harvest as replacement
stocks for rotated FOR loan collateral. CCC has determined that this
requirement was unnecessary and that CCC would be at no risk by
allowing producers to use grain from their existing stocks of harvested
grain from any past harvest; (c) paragraph (b)(5)(i) corrects
punctuation, paragraph (b)(5)(ii) removes an incorrect reference, and
paragraph (b)(5)(iv) reduces the percent of liquidated damages for
failing to replace the rotated quantity; (d) paragraph (c)(1) removes
the reference to new grain to conform to the changes made in paragraphs
(b)(2) and (b)(4); (e) paragraph (c)(2) corrects a typographical error;
(f) paragraph (c)(3) clarifies that storage shall not be earned for FOR
collateral released for sale by the producer from the date of the
rotation request until the replacement stocks are in place; (g)
paragraph (c)(4) requires that the producer certify to the FOR quantity
that the producer is requesting CCC to release for rotation that the
producer intends to feed and clarifies that storage shall not be earned
for such collateral released from the date of the rotation request
until the replacement stocks are in place; and (h) paragraph (c)(5)
removes the requirement to measure and inspect the grain to be released
and the growing crop of the replacement stocks to conform to the
changes made in paragraphs (b)(2) and (b)(4), and clarifies that the
replacement stocks, when such stocks are already in store on the farm,
must be inspected and measured before the release of the FOR
collateral.
This interim rule amends Sec. 1421.211 to clarify that producers
may repay FOR loans at any time at the marketing loan repayment rate if
such rate is in effect.
This interim rule amends Sec. 1421.215 to conform to the existing
provisions for loss of or damage to regular loans in Sec. 1421.15.
This interim rule amends Sec. 1421.320 to clarify that rice
marketing certificate payments may be paid in a form other than
commodity certificates, and such payments apply to that quantity of a
commodity redeemed from loan or on which a LDP was made.
This interim rule amends Secs. 1421.321, 1421.323 and 1421.324 to
correct references to the agreement with CCC for a rice marketing
certificate payments and amends the heading to Sec. 1421.323.
This interim rule amends Sec. 1421.323(b) to clarify that rice
marketing certificate payments apply to that quantity of a commodity
redeemed from loan or on which a LDP was made.
List of Subjects in 7 CFR Part 1421
Grains, Loan programs/agriculture, Oilseeds, Peanuts, Price support
programs, Reporting and recordkeeping requirements, Soybeans, Surety
bonds, Warehouses.
Accordingly, 7 CFR part 1421 is amended as follows:
PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES
1. The authority citation for 7 CFR part 1421 continues to read as
follows:
Authority: 7 U.S.C. 1421, 1423, 1425, 1441z, 1444f-1, 1445b-3a,
1445c-3, 1445e, and 1446f; 15 U.S.C. 714b and 714c. Subpart--Rice
Marketing Certificate Program is also issued under authority of 7
U.S.C. 1441-2; 15 U.S.C. 714b and 714c.
2. Section 1421.1 is amended by revising paragraph (a) to read as
follows:
Sec. 1421.1 Applicability.
(a) The regulations of this subpart are applicable to the 1991 and
subsequent crops of barley, corn, grain sorghum, oats, peanuts, rice,
rye, wheat, and oilseeds as set forth in Sec. 1421.3. These regulations
set forth the terms and conditions under which price support loans and
purchase agreements shall be entered into and loan deficiency payments
made by the Commodity Credit Corporation (CCC). Additional terms and
conditions are set forth in the note and security agreement, loan
deficiency payment application, and the purchase agreement which must
be executed by a producer in order to receive price support. With
respect to warehouse-stored loans for peanuts, such loans shall be made
in accordance with part 1446 of this title.
* * * * *
3. Section 1421.3 is revised to read as follows:
Sec. 1421.3 Definitions.
The definitions set forth in this section shall be applicable for
all purposes of program administration. The terms defined in part 719
of this title and parts 1413 and 1425 of this chapter shall also be
applicable, except where those definitions conflict with the
definitions set forth in this section.
Basic support rate means the price support rate established by CCC
for a commodity before any adjustment for premiums and discounts.
Charges means all fees, costs, and expenses incurred in insuring,
carrying, handling, storing, conditioning, and marketing the commodity
tendered to CCC for price support. Charges also include any other
expenses incurred by CCC in protecting CCC's or the producer's interest
in such commodity.
High moisture commodities means barley, corn, and grain sorghum
normally harvested and intended to be stored or marketed in a high
moisture condition.
Loan deficiency quantity means the eligible quantity which was
certified by the producer as eligible to be pledged as collateral for a
price support loan, for which the producer elected to forgo obtaining
price support.
Loan quantity means the quantity on which the price support loan
was disbursed shown on the note and security agreement.
Oilseeds means any crop of soybeans, sunflower seed, canola,
rapeseed, safflower, flaxseed, mustard seed, and other oilseeds as
determined and announced by CCC.
Purchase quantity means the eligible quantity designated on Form
CCC-614, Purchase Agreement for purchase by CCC.
4. Section 1421.4 is amended by revising paragraphs (b) and (f) to
read as follows:
Sec. 1421.4 Eligible producers.
* * * * *
(b) A receiver or trustee of an insolvent or bankrupt debtor's
estate, an executor or an administrator of a deceased person's estate,
a guardian of an estate of a ward or an incompetent person, and
trustees of a trust shall be considered to represent the insolvent or
bankrupt debtor, the deceased person, the ward or incompetent, and the
beneficiaries of a trust, respectively, and the production of the
receiver, executor, administrator, guardian, or trustee shall be
considered to be the production of the person or estate represented by
the receiver, executor, administrator, guardian, or trustee. Loan, loan
deficiency payment, or purchase agreement documents executed by any
such person will be accepted by CCC only if they are legally valid and
such person has the authority to sign the applicable documents.
* * * * *
(f) Warehouse-stored loans to warehousemen. Warehouse-stored loans
may be made to a warehouseman who, acting on behalf and with the
authorization of a producer, tenders to CCC warehouse receipts issued
by such warehouseman for a commodity produced by such warehouseman only
in those States where the issuance and pledge of such warehouse
receipts is valid under State law.
* * * * *
5. Section 1421.5 is amended by revising paragraphs (b)(1),
(b)(4)(iv), and (d)(2) to read as follows:
Sec. 1421.5 General eligibility requirements.
* * * * *
(b) (1) Commodities for loans, purchases, or LDP's must be tendered
to CCC by an eligible producer and must be eligible and in existence
when approved by CCC. For loans and purchases, commodities must also be
stored in approved storage at the time of disbursement of loan or
purchase agreement proceeds. The commodity must not have been sold, nor
any sales option on such commodity granted, to a buyer under a contract
which provides that the buyer may direct the producer to pledge the
commodity to CCC as collateral for a price support loan or to obtain a
loan deficiency payment. Such commodities must also be merchantable for
food, feed, or other uses determined by CCC and must not contain
mercurial compounds, toxin producing molds, or other substances
poisonous to humans or animals.
* * * * *
(4) * * *
(iv) Quantities of peanuts shall be in tons and hundredths of a
ton;
* * * * *
(d) * * *
(2) The commodity reoffered as security for the subsequent loan
shall have the same maturity date as the original loan, except that if
a farmer owned reserve program is in effect in accordance with
Secs. 1421.200 through 1421.217, CCC may allow a producer to request
that maturity date of such subsequent loan be the last day of the ninth
month following the month the subsequent loan is disbursed.
* * * * *
6. Section 1421.7 is amended by:
A. Removing paragraph (b),
B. Redesignating paragraphs (c) and (d) as paragraphs (b) and (c)
respectively,
C. Revising redesignated paragraph (c)(1),
D. Redesignating redesignated paragraph (c)(3) as paragraph (c)(4),
and
E. Adding a new paragraph (c)(3) to read as follows:
Sec. 1421.7 Adjustment of basic support rates.
* * * * *
(c) (1) With respect to all commodities except peanuts and rice,
warehouse-stored loans and purchase agreement payments shall be
disbursed at levels based on the basic county support rate for the
county where the commodity is stored, adjusted for the schedule of
premiums and discounts established for the commodity on the basis of
quality factors set forth on warehouse receipts or supplemental
certificates and for other quality factors, as determined and announced
by CCC.
* * * * *
(3) With respect to rice, warehouse-stored loans and purchase
agreement payments shall be disbursed at levels based on the milling
yields times the whole and broken kernel loan rates, adjusted for the
schedule of discounts on the basis of quality factors set forth on
warehouse receipts or supplemental certificates and for other quality
factors, as determined and announced by CCC.
* * * * *
7. Section 1421.8 is amended by revising paragraph (b)(2) to read
as follows:
Sec. 1421.8 Approved storage.
* * * * *
(b) * * *
(2) A warehouse operated by an approved cooperative as defined in
part 1425 of this chapter.
* * * * *
8. Section 1421.9 is amended by:
A. Revising paragraphs (f)(2)(iv)(E) and (f)(2)(iv)(F),
B. Removing paragraph (f)(2)(iv)(G), and
C. Revising paragraph (f)(2)(xiv)(B)(5)(v) to read as follows:
Sec. 1421.9 Warehouse receipts.
* * * * *
(f) * * *
(2) * * *
(iv) * * *
(E) Milling yield; and
(F) Moisture.
* * * * *
(xiv) * * *
(B) * * *
(5) * * *
(v) Seed size passing through a \14/64\'' round hole screen;
* * * * *
9. Section 1421.11(a) is revised to read as follows:
Sec. 1421.11 Liens.
(a) The county office shall file or record, as required by State
law, all security agreements which are issued with respect to
commodities pledged as collateral for price support loans. The cost of
filing and recording shall be paid for by CCC.
* * * * *
Sec. 1421.14 [Removed and Reserved]
10. Section 1421.14 is removed and reserved.
11. Section 1421.16 is amended by:
A. Revising paragraph (a)(1) introductory text and revising
paragraphs (a)(1)(i), (a)(2), (a)(3), (b)(1), (b)(2), (c), (d)
introductory text, and (d)(2),
B. Revising paragraphs (e), (k)(1)(ii)(C), and (k)(1)(ii)(D),
C. Adding paragraph (k)(1)(ii)(E),
D. Revising paragraphs (l)(1)(ii) and (l)(1)(iii), and
E. Adding paragraphs (l)(1)(iv) and (q) to read as follows:
Sec. 1421.16 Personal liability of the producers.
(a) * * *
(1) When signing Form CCC-666, Farm Stored Loan Quantity
Certification, when applicable, Form CCC-677, Farm Storage Note and
Security Agreement, and Form CCC-678, Warehouse Storage Note and
Security Agreement, that the producer will not:
(i) Provide an incorrect certification of the quantity or make any
fraudulent representation for loan, or
* * * * *
(2) When signing Form CCC-666 LDP, Loan Deficiency Payment
Application and Certification, or CCC-709, Direct Loan Deficiency
Payment Agreement, as applicable, that the producer will not provide an
incorrect certification of the quantity or make any fraudulent
representation for loan deficiency payment purposes.
(3) That violation of the terms and conditions of the Form CCC-677,
Form CCC-678, Form CCC-666 LDP, or Form CCC-709, as applicable, will
cause harm or damage to CCC in that funds may be disbursed to the
producer for a quantity of a commodity which is not actually in
existence or for a quantity on which the producer is not eligible.
(b) * * *
(1) Incorrect certification is the certifying of a quantity of a
commodity for the purpose of obtaining a commodity loan or a loan
deficiency payment in excess of the quantity eligible for such loan or
loan deficiency payment or the making of any fraudulent representation
with respect to obtaining loans or loan deficiency payments.
(2) Unauthorized removal is the movement of any farm-stored loan
quantity from the storage structure in which the commodity was stored
or structures which were designated when the loan was approved to any
other storage structure whether or not such structure is located on the
producer's farm without prior written authorization from the county
committee in accordance with Sec. 1421.20, if the movement of loan
collateral prevents CCC from obtaining the first lien on such
collateral.
* * * * *
(c) The producer and CCC agree that it will be difficult, if not
impossible, to prove the amount of damages to CCC for the violations in
accordance with paragraph (b) of this section. Accordingly, if the
county committee determines that the producer has violated the terms
and conditions of Form CCC-677, Form CCC-678, Form CCC-666 LDP, or Form
CCC-709, as applicable, liquidated damages shall be assessed on the
quantity of the commodity which is involved in the violation. If CCC
determines the producer:
(1) Acted in good faith when the violation occurred, liquidated
damages will be assessed by multiplying the quantity involved in the
violation by:
(i) 10 percent of the loan rate applicable to the loan note or the
loan deficiency payment rate for the first offense; or
(ii) 25 percent of the loan rate applicable to the loan note or the
loan deficiency payment rate for the second offense; or
(2) Did not act in good faith with regard to the violation, or for
cases other than the first or second offense, liquidated damages will
be assessed by multiplying the quantity involved in the violation by 25
percent of the loan rate applicable to the loan note or the loan
deficiency payment rate.
(d) For liquidated damages assessed in accordance with paragraph
(c)(1) of this section, the county committee shall:
* * * * *
(2) If the producer fails to pay such amount within 30 days from
the date of notification, call the applicable loan involved in the
violation, or for loan deficiency payments, require repayment of the
entire loan deficiency payment and charges plus interest.
(e) For liquidated damages assessed in accordance with paragraph
(c)(2) of this section, the county committee shall call the loan
involved in the violation, or for loan deficiency payments, require
repayment of the entire loan deficiency payment and charges plus
interest.
* * * * *
(k) (1) * * *
(ii) * * *
(C) All other costs which CCC would not have incurred but for the
fraudulent representation, the unauthorized disposition or movement of
the loan collateral;
(D) Interest on such amounts;
(E) Liquidated damages assessed under paragraph (c) of this
section; and
(1) With regard to amounts due for a loan, the payment of such
amounts may not be satisfied by the forfeiture of loan collateral to
CCC of commodities with a settlement value that is less than the total
of such amounts; or
(2) By repayment of such loan at the lower loan repayment rate as
prescribed in Sec. 1421.25 and may not utilize the provisions of part
1470 of this chapter with respect to such loans.
* * * * *
(l)(1) * * *
(ii) All other costs which CCC would not have incurred but for the
producer's fraudulent representation;
(iii) Interest which has accrued with respect to such amounts; and
(iv) Liquidated damages assessed under paragraph (c) of this
section.
* * * * *
(q) Any or all of the liquidated damages assessed in accordance
with the provisions of paragraph (c) of this section may be waived as
determined by CCC.
12. Section 1421.17 is amended by revising paragraphs (a), (c)(1),
(c)(3), and (e) to read as follows:
Sec. 1421.17 Farm-stored commodities.
(a) The quantity of a commodity which shall be used to determine
the amount of a farm-stored loan shall not exceed a percentage (the
``loan percentage''), as established by the State committee which shall
not exceed a percentage established by CCC, of the certified or
measured quantity of the eligible commodity stored in approved farm
storage and covered by the note and security agreement. The quantity of
a commodity pledged as security for a farm-storage loan shall be
measured or certified in accordance with paragraph (e) of this section.
Farm-stored loans may be made on less than the maximum quantity
eligible for loan at the producer's request. If the loan quantity is
reduced by the State committee, the county committee, or by request of
the producer, such reduced quantity shall be the mortgaged quantity on
the note and security agreement for the commodity in a bin, crib, or
lot on which the loan is made.
* * * * *
(c) * * *
(1) Liquidation of the farm-stored loan or part thereof shall be
made through the pledge of warehouse receipts for the commodity placed
under warehouse-stored loan and the immediate payment by the producer
of the amount by which the warehouse-stored loan is less than the farm-
stored loan or part thereof and charges plus interest. The loan
quantity for the warehouse-stored loan cannot exceed 110 percent of the
loan quantity transferred from the farm-stored loan.
* * * * *
(3) For loans extended in accordance with Secs. 1421.200 through
1421.217, CCC may limit the quantity for a warehouse-stored loan to the
quantity approved on the farmer owned reserve agreement loan.
* * * * *
(e) The quantity of a commodity pledged as security for a farm-
stored loan or for which a loan deficiency payment is requested may be
determined on the basis of the quantity of the commodity which an
eligible producer certifies in writing on Form CCC-666 for a loan and
Form CCC-666 LDP or CCC-709, as applicable, for a loan deficiency
payment, is eligible to be pledged as collateral and is otherwise
available for loan or loan deficiency payment purposes.
* * * * *
13. Section 1421.18 is amended by revising paragraphs
(b)(12)(iv)(B), (b)(13)(iv)(D), (b)(13)(iv)(D)(5), and (b)(15)(ii)(G)
to read as follows:
Sec. 1421.18 Warehouse-stored loans.
* * * * *
(b) * * *
(12) * * *
(iv) * * *
(B) For distinctly green seeds, 1.5 percent;
* * * * *
(13) * * *
(iv) * * *
(D) For admixtures:
* * * * *
(5) For inconspicuous admixtures, 5.0 percent;
* * * * *
(15) * * *
(ii) * * *
(G) The sunflower seed gross weight must be adjusted downward to
reflect undersized seed, passing through a \14/64\'' round hole screen,
dockage, and for the presence of any admixtures.
14. Section 1421.19 is amended by revising paragraph (b) to read as
follows:
Sec. 1421.19 Liquidation of loans.
* * * * *
(b) If the producer desires to deliver eligible commodities to CCC
in satisfaction of the loan, the producer must notify CCC of such
intention before the loan maturity date by giving written notice to the
county office which disbursed the proceeds for such loan. If the
producer fails to deliver such commodities to CCC by the date specified
on Form CCC-691, Commodity Delivery Notice, and the producer
subsequently redeems the commodity pledged as collateral for the loan
before delivery is completed, interest shall continue to be assessed on
such amount in accordance with part 1405 of this chapter.
* * * * *
15. Section 1421.20 is amended by:
A. Revising paragraph (a)(2), and
B. Adding paragraph (e) to read as follows:
Sec. 1421.20 Release of the commodity pledged as collateral for a
loan.
(a) * * *
(2) If CCC so announces, an amount less than the principal amount
of the loan and charges plus interest under the terms and conditions
specified by CCC at the time the producer redeems the commodity pledged
as collateral for such loan in accordance with Sec. 1421.25. The
producer may request and CCC may approve removal of a quantity of the
commodity from storage, without the payment of CCC of the loan amount,
if the principal amount outstanding on such loan before such removal
does not exceed the maximum loan value of the quantity of the commodity
remaining in storage after such removal. When the proceeds of the sale
of the commodity are needed to repay all or a part of a farm-stored
loan, the producer must request and obtain prior written approval of
the county office on a form prescribed by CCC in order to remove a
specified quantity of the commodity from storage. Any such approval
shall be subject to the terms and conditions set forth in the
applicable form, copies of which may be obtained by producers at the
county office. Any such approval shall not constitute a release of
CCC's security interest in the commodity or release the producer from
liability for any amounts due and owing to CCC with respect to the loan
indebtedness if full payment of such amounts is not received by the
county office. If a producer fails to repay a loan within the time
period prescribed by CCC for a farm-storage loan and commodity pledged
as loan collateral has been delivered to a buyer in accordance with
Form CCC-681-1, Authorization for Delivery of Loan Collateral for Sale,
such producer may not repay the loan at the level that is less than the
loan level determined in accordance with Sec. 1421.25(a)(1)(ii),
(b)(2), or (d)(2).
* * * * *
(e) If the commodity is moved on a nonworkday from storage without
obtaining prior approval to move such commodity, such removal shall
constitute unauthorized removal or disposition, as applicable, of such
commodity unless the producer notifies the county office the next
workday that such commodity has been moved and such movement is
approved by CCC.
16. Section 1421.22 is amended by:
A. Revising paragraphs (c)(3)(i)(A) and (c)(4), and
B. Adding paragraphs (e), (f), (g), (h), and (i) to read as
follows:
Sec. 1421.22 Settlement.
* * * * *
(c) * * *
(3) * * *
(i) * * *
(A) $2 per ton, net weight, for each full 1 percent of foreign
material in excess of 15 percent; and
* * * * *
(4) With respect to rice acquired by CCC at a location other than
an approved warehouse, settlement shall be made on the basis of the
class, grade, and quality entries set forth in the Federal-State
inspection certificate and on the basis of the quantity set forth in
the weight certificates.
* * * * *
(e) When a producer is directed by the county office to haul the
commodity for a loan, except aromatic rice, a greater distance than
would have been necessary to make delivery to the producer's customary
delivery point, as determined by CCC, the producer will be allowed
compensation, as determined by the State committee at a rate not to
exceed the common carrier truck rate or the rate available from local
truckers, for hauling the eligible commodity the additional distance.
In determining the rate of payment for excess hauling, the State
committee may establish reasonable mileage minimums below which
producers will not receive compensation for hauling.
(f) (1) Producers may request trackloading for loan collateral
where approved warehouse space is not available locally or where KCCO
determines that it would be to the benefit of CCC. Where local weighing
facilities are not available or when requested by producers,
destination weights may be used for settlement purposes. All producers
loading in the same car must sign an agreement stating the percentage
share of the total quantity to be credited to each. When requested by
producers prior to delivery of the commodity, settlement may be made on
the basis of destination grades. Such destination grade determination
for a car shall be applied to the entire quantity of a commodity loaded
into the same car, regardless of the grade or quality of a commodity
loaded into the car by any producer.
(2) A trackloading payment of 19 cents per bushel (or 31.66 cents
per hundredweight in the case of sorghum, oilseeds, and rice, excluding
aromatic rice) shall be made to the producer on an eligible commodity
delivered to CCC under this subsection.
(g) If a farm-stored commodity is delivered in advance of the
applicable loan maturity date as provided in Secs. 1421.19 and 1421.21,
a deduction for storage charges shall be made. The deduction shall be
made for the period from the date of delivery to the applicable
maturity date or expiration date for the commodity. Such deduction
shall be at the rate charged by the warehouse to which the commodity
was delivered. No deduction for storage charges shall be made for early
delivery of a farm-stored commodity if the loan maturity date is
accelerated by CCC under a general acceleration of the maturity date in
a particular area.
(h) A refund of warehouse storage charges will be made by CCC to
the producer if the maturity date of a warehouse storage loan is
accelerated by CCC for reasons other than any wrongful act or omission
on the part of the producer, and the commodity is not redeemed. The
amount of the storage charges to be refunded shall be computed at the
lesser of the UGSA rate or the rate prepaid by the producer for the
period of unearned storage.
(i) If a warehouse charges the producer for either the receiving
charges or the receiving and loading out charges on an eligible
commodity in an approved warehouse, the producer shall, upon delivery
to CCC of warehouse receipts representing the commodity stored in such
warehouse, be reimbursed or given credit by the county office for such
prepaid charges at the lesser of the UGSA rate or the rate prepaid by
the producer. The producer must furnish to the county office, written
evidence signed by the warehouse operator that such charges have been
paid.
17. Section 1421.29 is amended by:
A. Revising paragraphs (b)(3), (c), and (g) to read as follows,
B. Removing paragraph (h), and
C. Redesignating paragraph (i) as paragraph (h).
Sec. 1421.29 Loan deficiency payments.
* * * * *
(b) * * *
(3) File and request payment on Form CCC-666 LDP, unless the
producer enters into an agreement according to paragraph (h) of this
section, for a quantity of an eligible commodity;
* * * * *
(c) The loan deficiency payment rate for a crop shall be the amount
by which the price support loan level for the crop exceeds the level at
which CCC has announced that producers may repay their price support
loans in accordance with Sec. 1421.25. Such rate shall be the amount
determined on the day the producer submits a completed request for a
loan deficiency payment to the county office. When such request is for
rice and the request provides that the loan deficiency payment rate
shall be based on the date of delivery, and the documentation of
delivery indicates the rice was delivered after 3 p.m. eastern time,
the loan deficiency payment rate in effect after 3 p.m. eastern time of
the delivery date shall be used. In all other cases for rice where the
loan deficiency payment rate is based on the delivery date, the payment
rate in effect at 12:00:01 a.m. eastern time of the delivery date shall
be used.
* * * * *
(g) Notwithstanding any other provision of this section, on the day
of the announcement of the adjusted world price, applications for loan
deficiency payments for rice that specify the payment rate will not be
accepted between 2 p.m. eastern time and the time of the world price
announcement.
* * * * *
18. Section 1421.202 is revised to read as follows:
Sec. 1421.202 Length of reserve agreements.
The length of a FOR loan shall be 27 months from the maturity date
of the regular price support loan. The day following the maturity date
of the regular price support loan shall be the effective date of the
FOR loan agreement. In order to assure that producers throughout the
United States are treated in a fair and equitable manner, CCC may allow
extensions of regular price support loans for wheat, corn, grain
sorghum, oats, and barley which expire in or before the month following
the month of the date for such commodity as specified in
Sec. 1421.201(b). The terms and conditions of such extension shall be
provided through actual notice to affected producers. FOR agreements
may be extended by CCC, at CCC's sole discretion, at maturity for an
additional six months.
19. Section 1421.205 is amended by revising paragraph (a)
introductory text and revising paragraphs (a)(2) and (b) to read as
follows:
Sec. 1421.205 Quantity eligible for grain reserve loans.
(a) Farm-stored FOR loans shall be approved on a quantity not to
exceed the lesser of:
* * * * *
(2) The quantity upon which the disbursement of the regular price
support loan was based.
(b) Warehouse-stored FOR loans shall be approved on a quantity not
to exceed the quantity shown on the warehouse receipt or the
supplemental certificate, if applicable, which secured the regular
price support loan.
20. Section 1421.206 is amended by revising paragraph (b) to read
as follows:
Sec. 1421.206 Quality eligibility requirements of FOR loans.
* * * * *
(b) Grain which is pledged as collateral for a FOR loan must meet
the quality eligibility requirements for securing a regular price
support loan.
* * * * *
21. Section 1421.207 is amended by revising paragraphs (b)(1),
(b)(2)(i), and (b)(2)(iii) to read as follows:
Sec. 1421.207 Storage rates.
* * * * *
(b) (1) Storage payments shall be paid quarterly, starting from the
effective date of the FOR loan. Such payments shall be paid within 30
days after the end of each quarter in which such payments are earned.
Storage payments shall not be earned when the grain which was pledged
as collateral for the FOR loan is not in storage, as determined by CCC.
Storage payments shall not be earned when the 5-day adjusted market
price determined in accordance with Sec. 1421.209(e) equals or exceeds
95 percent of the current year's established price for the commodity.
In such instance, no storage payments shall be earned from the day the
5-day adjusted market price was equal to or exceeded 95 percent of such
established price through the ninetieth day following the last day on
which the 5-day adjusted market price equalled or exceeded 95 percent
of such established price.
(2) * * *
(i) A FOR agreement shall not be approved until the producer
provides written evidence to CCC that at least the next year's storage,
including any storage deduction applicable to the regular loan, has
been paid to the warehouse or arrangements for the payment of such
storage have been made with the warehouse on the FOR loan quantity.
* * * * *
(iii) The eighth quarterly storage payment shall not be made until
the producer provides written evidence to CCC that storage has been
paid to the warehouse or arrangements for the payment of such storage
have been made with the warehouse on the FOR quantity through the FOR
loan maturity date.
* * * * *
22. Section 1421.208 is revised to read as follows:
Sec. 1421.208 Charging interest.
FOR loans shall not accrue interest unless CCC determines that the
5-day adjusted market price determined in accordance with
Sec. 1421.209(e) for the commodity is equal to or exceeds 105 percent
of the current year's established price for such commodity. In such
instance, interest shall accrue from the day the 5-day adjusted market
price was equal to or exceeded 105 percent of such established price
and continue to accrue for the balance of the month following the last
day on which the 5-day adjusted market price equaled or exceeded 105
percent of such established price through the two succeeding months.
The rate of interest which shall be applicable to a FOR loan during an
interest-accruing period shall be the rate applicable to the regular
price support loan as determined in accordance with part 1405 of this
chapter.
23. Section 1421.210 is amended by revising paragraphs (a), (b)(2),
(b)(4) introductory text, (b)(4)(ii), (b)(5)(i), (b)(5)(ii),
(b)(5)(iv), (c)(1) introductory text, (c)(2), (c)(3), (c)(4), and
(c)(5) to read as follows:
Sec. 1421.210 Commingling and replacement of wheat and feed grains.
(a) In the case of farm-stored FOR loans, if an eligible quantity
of a commodity has been commingled with an ineligible quantity of the
commodity, the commingled commodity is not eligible to be pledged as
collateral for a FOR loan unless the provisions in Sec. 1421.17 (b)(1)
or (b)(2) are met.
(b) * * *
(2) Grain which is used to replace existing FOR loan collateral
must have been produced by the producer and be eligible to be pledged
as collateral for a regular price support loan, except that compliance
with the terms and conditions of any commodity program conducted in
accordance with part 1413 of this chapter on the farm on which such
replacement grain was produced is not required. Replacement loan
collateral may be grain from the crop which is harvested after the date
established by the State committee in accordance with paragraph (b)(1)
of this section or be grain from a producer's existing stocks in CCC-
approved farm storage. This grain must not have been purchased and must
be free of any liens or encumbrances unless waivers that fully protect
the interest of CCC are obtained. With respect to wheat, such
replacement grain must be of the same class as the regular price
support loan collateral.
* * * * *
(4) To protect the interest of CCC in the quantity of collateral to
be released for replacement in accordance with paragraph (c)(1)(i) or
(c)(1)(iii) of this section, the county committee may require producers
to remit payments to the CCC before a request to replace FOR loan
collateral is approved. In such cases, the amount to be remitted shall
be the smaller of:
* * * * *
(ii) The product of the market price available in the county office
on the date that the replacement request was made, times the quantity
to be replaced, as determined by CCC.
(5) * * *
(i) The principal amount of the FOR loan and other charges plus
interest from the disbursement date of such amount;
(ii) Storage payments made in accordance with the loan from the
date the request for replacement was approved for CCC to the
disbursement date of such payments;
* * * * *
(iv) Liquidated damages computed by multiplying the quantity not
replaced by 25 percent of the loan rate applicable to the loan note.
(c) (1) A producer who files a Form CCC-687-1 or CCC-681 requesting
the approval to replace existing FOR loan collateral may after approval
of the request:
* * * * *
(2) A producer who delivers grain to a CCC-approved warehouse in
accordance with paragraph (c)(1) of this section shall cause to be
delivered to CCC a warehouse receipt issued in the name of CCC with
respect to such grain. The warehouse receipt shall show that storage
charges have been paid or otherwise provided for through the final date
specified to complete the replacement, and CCC shall retain control of
the receipt until the producer has replaced the original FOR loan
collateral with eligible replacement grain. Except as provided in
paragraph (b)(3) of this section, if the producer fails to replace the
grain within the approved replacement period, CCC shall take title to
the warehouse receipt without any further action by the producer and
shall determine the value of the grain represented by the receipt. This
value shall be determined in accordance with Sec. 1421.22 and shall be
credited to the amount owed by the producer as determined in accordance
with paragraph (b)(5) of this section.
(3) A producer who, in accordance with paragraph (c)(1) of this
section, sells the grain which is the collateral for the FOR loan shall
only sell such grain to the person specified on Form CCC-681. Storage
payments shall not be earned on the quantity rotated, as determined by
CCC, from the date the rotation request is approved until the
replacement stocks are in place. To protect the interest of CCC in the
quantity of collateral to be released for replacement, the county
committee may require the purchaser to make and remit to CCC a check
for the full amount of the purchase. In such instances, CCC shall make
these funds available to the producer upon the replacement of the
original FOR loan collateral with eligible replacement grain if such
replacement occurs prior to the final date of the approved replacement
period. Except as provided in paragraph (b)(3) of this section, if the
producer fails to replace the grain by this date, the producer shall
forfeit the sales proceeds to CCC without any further action by the
producer. Such sales proceeds shall be credited to the amount owed by
the producer as determined in accordance with paragraph (b)(5) of this
section.
(4) A producer who, in accordance with paragraph (c)(1) of this
section, intends to feed such grain to the producer's own livestock,
may only feed the quantity of grain which was approved by the county
committee for such purposes. The producer must certify to the quantity
the producer intends to use for feed during the approved rotation
period. Storage payments shall not be earned on the quantity rotated,
as determined by CCC, from the date the rotation request is approved
until the replacement stocks are in place in CCC-approved farm storage.
(5) Any producer who files a Form CCC-687-1 or CCC-681 with the
county committee shall not remove the existing FOR loan collateral
until written approval has been made by the county committee. The
producer shall allow a representative of the county committee to
inspect and measure, at the producer's expense, the quantity of
replacement grain when such replacement stocks are in place in CCC-
approved farm storage. Producers who request approval to replace
existing FOR loan collateral with existing stocks in CCC-approved farm
storage shall not receive approval to remove the existing FOR loan
collateral until the replacement stocks have been inspected and
measured.
24. Section 1421.211 is revised to read as follows:
Sec. 1421.211 Redemption requirements and emergency call.
(a) A producer may redeem the commodity pledged as collateral for a
FOR loan at any time by repaying the principal amount of the FOR loan
and other charges plus interest as provided in this part or, if CCC so
announces, an amount less than the principal amount of the FOR loan and
other charges plus interest in accordance with Sec. 1421.25(d)(2).
(b) Notwithstanding any other provision of this part, the Secretary
may require producers to repay FOR loans prior to the maturity date of
such loans if the Secretary determines that emergency conditions exist
which require that the commodity which is serving as collateral for the
FOR loan be made available in the market to meet urgent domestic or
international needs and such determination and the reasons therefore
are reported to the President, the Committee on Agriculture, Nutrition,
and Forestry of the Senate, and the Committee on Agriculture of the
House of Representatives at least fourteen days before taking such
action. Repayment shall consist of the amount in accordance with
paragraph (a) of this section. If the called loan is not redeemed
within the time prescribed by the Secretary, CCC may take title to the
commodity without any further action by the producer.
25. Section 1421.215 is revised to read as follows:
Sec. 1421.215 Loss or damage to the commodity.
The producer is responsible for any and all loss in quantity or
quality of the commodity pledged for a FOR loan. CCC shall not assume
any loss in quantity or quality of the FOR farm-stored loan collateral.
26. Section 1421.320 is amended by revising paragraphs (a) and
(c)(2) to read as follows:
Sec. 1421.320 General provisions.
(a) This subpart sets out the terms and conditions under which the
CCC shall make payments to eligible persons who have entered into an
agreement with CCC to participate in the rice marketing certificate
program.
* * * * *
(c) * * *
(2) With respect to eligible rice which has not been and will not
be pledged as collateral for a price support loan received a loan
deficiency payment in accordance with Sec. 1421.29.
27. Section 1421.321 is amended by revising introductory text to
read as follows:
Sec. 1421.321 Eligible persons.
For the purposes of this subpart, the following persons shall be
considered to be eligible to enter into an agreement with CCC and to
receive payment in accordance with this subpart:
* * * * *
28. Section 1421.323 is revised to read as follows:
Sec. 1421.323 Rice marketing certificate payments.
(a) Payments in accordance with this subpart shall be made
available to eligible persons who have complied with the terms and
conditions set forth in this subpart and who have entered into an
agreement with CCC.
(b) Payments in accordance with this subpart shall be made when the
producer receives a loan deficiency payment in accordance with
Sec. 1421.29 or when the producer repays a loan in accordance with
Sec. 1421.25.
29. Section 1421.324 is revised to read as follows:
Sec. 1421.324 Payment rate.
The payment rate for the purposes of calculating payments made
available in accordance with this subpart shall be based upon the
difference between the adjusted world price for the class of rice and
the loan repayment level in effect for the loan deficiency payment or
loan repayment.
Signed in Washington, DC, on June 27, 1994.
Bruce R. Weber,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-16111 Filed 7-1-94; 8:45 am]
BILLING CODE 3410-05-P