[Federal Register Volume 59, Number 220 (Wednesday, November 16, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-27562] [[Page Unknown]] [Federal Register: November 16, 1994] _______________________________________________________________________ Part II Department of Agriculture _______________________________________________________________________ Agricultural Stabilization and Conservation Service 7 CFR Parts 718, 790, and 791 _______________________________________________________________________ Commodity Credit Corporation 7 CFR Part 1413, et al. _______________________________________________________________________ 1994 Wheat, Feed Grains, Cotton and Rice Programs; Interim Rule DEPARTMENT OF AGRICULTURE Agricultural Stabilization and Conservation Service 7 CFR Parts 718, 790, and 791 Commodity Credit Corporation 7 CFR Parts 1413, 1414, 1415, and 1416 RIN 0560-AD72, AD00 1994 Wheat, Feed Grains, Cotton and Rice Programs AGENCIES: Agricultural Stabilization and Conservation Service and Commodity Credit Corporation, USDA. ACTION: Interim rule. ----------------------------------------------------------------------- SUMMARY: The statutory requirements that relate to the feed grains, rice, upland and extra long staple cotton, and wheat programs were amended by the Agricultural Reconciliation Act of 1993 (the 1993 Act), which was enacted on August 11, 1993. This interim rule sets forth amendments: to conform to the provisions of the 1993 Act; to make certain technical corrections; to delete references to obsolete provisions; to add references relating to current policy; to set forth the provisions for The Options Pilot Program (OPP) and Voluntary Production Limitation Program (VPLP); and to improve the operations of these programs for the 1994 through 1997 crop years. DATES: Interim rule effective November 16, 1994. Comments must be received on or before December 16, 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 (ASCS), United States Department of Agriculture (USDA), P.O. Box 2415, Washington, DC 20013-2415. Comments may be inspected at USDA, ASCS, 14th and Independence Avenue, South Agriculture Building, room 3640, Washington, DC 20013-2415 between 7:30 a.m. and 4:30 p.m., Monday through Friday, except holidays. FOR FURTHER INFORMATION CONTACT: Bruce D. Hiatt, Agricultural Program Specialist, ASCS, USDA, P.O. Box 2415, Washington, DC 20013-2415, telephone 202-690-2798. SUPPLEMENTARY INFORMATION: Executive Order 12866 This interim rule is issued in conformance with Executive Order 12866. Based on information compiled by the USDA, it has been determined that this interim rule: (1) Would have an annual effect on the economy of less than $100 million; (2) Would not adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local or tribal governments or communities; (3) Would not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (4) Would not materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or rights and obligations of recipients thereof; and (5) Would not raise novel legal or policy issues arising out of legal mandates, the President's priorities, or principles set forth in Executive Order 12866. Final Regulatory Impact Analyses Final Regulatory Impact Analyses have been prepared with respect to the programs for the 1994 crops of wheat, feed grains, cotton, and rice. Copies of the analyses are available to the public from the Deputy Administrator for Policy Analysis, ASCS, USDA, room 3741, South Agriculture Building, 14th and Independence Avenue, P.O. Box 2415, Washington, DC 20013-2415. Federal Assistance Programs The titles and numbers of the Federal Assistance Programs, as found in the Catalog of Federal Domestic Assistance, to which this interim rule applies are Cotton Production Stabilization--10.052; Feed Grain Production Stabilization--10.055; Wheat Production Stabilization-- 10.058; and Rice Production Stabilization--10.065. Regulatory Flexibility Act It has been determined that the Regulatory Flexibility Act is not applicable to this interim rule since neither ASCS nor the Commodity Credit Corporation (CCC) is required by 5 U.S.C. 553 or any other provision of the 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 12778 This interim rule has been reviewed in accordance with Executive Order 12778. The provisions of this interim rule preempt State laws to the extent such laws are inconsistent with the provisions of this rule. The provisions of this rule are not retroactive. Before any judicial action may be brought concerning the provisions of this rule, the administrative remedies at 7 CFR part 780 must be exhausted. Executive Order 12372 This program/activity 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). Paperwork Reduction Act The amendments set forth in this interim rule contain new and revised information collections that require clearance by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35. These requirements have been submitted to OMB with a request for expedited review. Public reporting burden for these collections is estimated to vary from 15 minutes to 45 minutes per response, including time for reviewing instructions, searching existing sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer, OIRM, AG Box 7630, Washington, DC 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB Nos. 0560-0004 and 0560-0092), Washington, DC 20503. Background The Food, Agriculture, Conservation, and Trade Act of 1990 (the 1990 Act) amended various Acts, including the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949 (the 1949 Act). The Food, Agriculture, Conservation, and Trade Act Amendments of 1991 made technical corrections to these Acts in order to correct errors and to improve the amendments made by the 1990 Act. The 1993 Act, which was enacted on August 11, 1993, amended the 1949 Act to provide that the so-called ``0/92'' and ``50/92'' provisions of the annual acreage reduction programs (ARP's) be changed to ``0/85'' and ``50/85'' for producers of wheat, feed grains, upland cotton, and rice. Producers who plant minor oilseeds or industrial and other crops (IOC's), or who were prevented from planting or had reduced yields, shall be eligible for benefits under the so-called ``0/92'' or ``50/92'' provisions of the ARP's. This interim rule: (1) Sets forth the amendments provided by the 1993 Act, (2) Includes provisions from policy set forth for county ASCS offices, (3) Provides the rules for incomplete performance based on information provided by a representative of the Secretary, failure to fully comply, the Options Pilot Program, and the VPLP, (4) Makes minor editorial changes, and (5) Revises many of the sections for clarity. Discussion of Changes A. 7 CFR Part 718, Determination of Acreage and Compliance Section 718.10 State Committee (STC) Responsibilities This section has been amended to allow STC's to set a per acre rate for acres in excess of 25 acres to reflect the cost involved nationally in performing measurement service from photographic slides, and to provide for the cost of furnishing reproductions of aerial photographs. Section 718.12 Authority for Farm Entry and Securing Information This section has been amended to provide that a farm operator has 15 days to reply to the county office after receiving notice of refusal to permit entry and inspection on the farm. Section 718.21 Measurement Services This section has been amended to include the requirements that must be met in order to keep the measurement service guarantee when a measurement service reveals acreage in excess of the permitted acreage. Section 718.22 Acreage Reports This section has been revised to include provisions for destroying small grain acreage beyond the crop disposition date by haying and grazing, and to provide the name and number of the form on which producers report their acreage and land uses. Section 718.24 Revised Reports This section had been amended to include the provisions for revising acreage reports for farms enrolled in the ARP, provisions for items that cannot be revised, when the revision adversely affects the program, provisions for releasing excess acreage conservation reserve (ACR) resulting from an acreage determination, and provisions for substituting acreage for previously reported ACR. Section 718.25 Reporting out of Compliance This section has been amended to add available flex acreage to the maximum permitted acreage when determining if producers are in compliance with acreage planting restrictions. Section 718.26 Farm Inspections This section has been amended to provide that producers that have an interest in a farm and are a warehouse operator, manager, or dealer are no longer required spot checks. This section also provides for required spot checks for farms on which there is unmarketed tobacco. Section 718.40 Tolerance and Variance Rules Applicability This section has been amended to provide tolerance provisions for corn and grain sorghum acreage enrolled in the production adjustment programs, and to increase the tolerance to the larger of 1.0 acre or 5 percent not to exceed 50 acres. Section 718.42 Skip Rows and Strip Crops This section has been amended to provide for determining a farm's history of planting 32-inch rows when producers have the option to consider the crop as either solid planted or skip row, and to include row widths that are wider than 32 inches when providing producers the option to consider the crop as either solid planted or skip row. Section 718.43 Deductions This section has been amended to clarify that, for areas not devoted to the crop or land use that are located within the planted area, the part of any perimeter area that is more than 33 links in width shall be an internal deduction if the standard deduction is used. Section 718.45 Notice of Measured Acreage This section had been revised to provide the number and name of the form on which written notice of measured acreage is provided to interested producers on the farm. Section 718.47 Redeterminations This section has been amended by removing verbiage that the redetermination is final and is not appealable under part 780 of this chapter. When the 1990 Act established the National Appeals Division, all decisions and redeterminations made by STC's and County Committees (COC's) became appealable. B. 7 CFR Part 790--Incomplete Performance Based Upon Action Or Advice of An Authorized Representative of the Secretary Section 790.2 Action Section 790.2 has been revised to clarify existing provisions. Section 790.3 Delegation of Authority Section 790.3 has been revised to provide that the STC may exercise the authority provided in this part in cases where the total of payments and benefits extended under this part does not exceed $5,000. Section 790.4 Filing of Request for Consideration Section 790.4 has been revised to provide that COC's may submit a request for consideration under this part to the STC without a specific request from the producer when the COC believes that the producer is entitled to consideration under the provisions of this part. C. 7 CFR Part 791--Authority To Make Payments When There Has Been a Failure To Comply Fully With the Program Section 791.2 The Making of Loans, Purchases, and Payments When There Has Been a Failure to Fully Comply With the Program This section has been revised to provide that the Deputy Administrator, State and County Operations, the Deputy Administrator, Commodity Operations, and the National Appeals Division, may authorize the making of loans, purchases, or payments in such amounts as is determined to be equitable in relation to the seriousness of the failure to fully comply. D. 7 CFR Part 1413, Feed Grain, Rice, Upland and Extra Long Staple Cotton, Wheat, and Related Programs Part 1413 has been revised into subparts to better organize the information contained therein for the use of the public. Section 1413.1 Applicability This section has been amended to set forth the terms and conditions under which producers of feed grains, rice, upland and extra long staple (ELS) cotton and wheat may enter into agreements with CCC and comply with the terms of such agreements and the provisions of this part in order to qualify for program benefits. Section 1413.2 Compliance With Part 12 of This Title, Highly Erodible Land and Wetland Conservation Provisions This section has been renumbered. This section requires compliance with the provisions of part 12 of this title to retain eligibility for program benefits. Section 1413.3 Controlled Substance Violations This section has been added to set forth the rules for making payments when the provisions of part 796 of this title have been violated. Section 1413.4 Administration This section has been renumbered. This section sets forth the provisions for administering the programs through the STC's and COC's. Section 1413.5 Performance Based Upon Advice or Action of County or State Committee This section has been renumbered. This section states that the provisions of part 791 of this title apply to this part. Section 1413.6 Appeals This section has been renumbered. This section sets forth the rules for producer appeals. Section 1413.7 Paperwork Reduction Act Assigned Numbers This section has been renumbered and amended to set forth the provisions for information collection requirements for the regulations. Section 1413.9 Definitions This section has been renumbered and amended to set forth the definitions applicable for all purposes of program administration. Definitions added to this section include acreage reduction program (ARP), actual ELS cotton yield per acre, custom farming, determined acreage, disaster, farming operations and practices, high residue crop (HRC), landlord, low residue crop (LRC), minor, nonrotation, offset, operator, other cotton, participating crop, participating farm, program benefits, repeat crop, sharecropper, and tenant. The definitions for current year, farm program payment yield, and producer have been revised for clarification. Section 1413.10 Planted Crop Acreages This section has been renumbered and the section heading has been revised. Paragraph (a) has been amended to remove incorrect references. Paragraph (c)(1) has been amended to reference the final planting date in accordance with part 400 of this title. Paragraph (c)(4) has been amended to correct the section reference. Subparagraphs (c)(6)(i) through (iv) have been added to provide policy for the use of experimental acreages. Paragraph (c)(7) has been amended to correct the section reference and paragraph (c)(9) has been added to include any crop acreages on a farm which are planted by a producer with no intent to harvest. Section 1413.11 Considered Planted Acreages This section has been added to include the provisions for determining considered planted acreage for a crop. References to considered planted acreages which were previously referenced in other sections have been consolidated into this section. Section 1413.15 Farm Program Payment Yields This section has been renumbered, and the text has been amended to provide the rules for establishing farm program payment yields for a crop. Section 1413.16 Establishing Crop Yields for Soybeans and Minor Oilseeds This section has been added to provide the rules for establishing yields for soybeans and minor oilseeds. Section 1413.17 Historical Weighted Yields (HWY) This section has been added to provide the rules for determining the HWY for crop on a farm. Section 1413.18 Irrigated Acreage Maximum (IAM) for Yields This section has been added to include the provisions for determining the IAM for a crop for a farm. Section 1413.19 Submitting Production Evidence This section has been added to include the rules for submitting reports of production evidence of crops of wheat, feed grains, upland cotton, and rice. Section 1413.20 Reducing Yields This section has been added to provide for reducing yields for current year program payment purposes when a program crop is planted or maintained in an unworkmanlike manner that, under normal conditions, would not yield production comparable to the established yield for the crop. Section 1413.24 Crop Acreage Bases (CAB's) This section has been renumbered and amended to include procedures used in establishing CAB's. Section 1413.25 Participation in the Conservation Reserve Program This section has been renumbered and amended to reflect the change of reference from a program contract to a program agreement. Section 1413.26 Adjusting CAB's This section has been renumbered and amended to include rules for permanent or temporary adjustments of crop acreage bases (CAB's). Section 1413.27 Conservation Compliance CAB Exchanges This section has been amended to correct the section reference. Section 1413.30 Reconstitution of Farms This section has been renumbered and amended for clarity. Section 1413.31 Notice of CAB's and Yields This section has been renumbered and amended to provide the rules for notifying producers of the CAB's and yields for a crop on a farm. Section 1413.34 ELS Cotton Counties This section has been added to include the rules for defining ELS cotton and determining ELS cotton counties. These rules previously appeared in other sections of this part. Section 1413.35 ELS Cotton CAB's This section has been added to include the rules for establishing ELS cotton CAB's. These rules previously appeared in other sections of this part. Section 1413.36 ELS Cotton Crop Program Payment Yields This section has been added to include rules for establishing ELS cotton yields. These rules previously appeared in other sections of this part. Section 1413.37 Submitting ELS Cotton Production Evidence This section has been added to include the rules for submitting ELS cotton production evidence to the county ASCS office. Section 1413.41 0/85/92 Program Provisions for Wheat and Feed Grains This section has been added to provide the general rules for participation in the 0/85 or 0/92 provisions of the feed grains and wheat programs when an ARP is in effect. Section 1413.42 50/85 and 50/92 Program Provisions for Upland Cotton and Rice This section has been added to provide the general rules for use of the 50/85 or 50/92 provisions of the upland cotton and rice programs when an ARP is in effect. Section 1413.43 Planting Flexibility This section has been renumbered and amended to include the provisions related to planting flexibility. Section 1413.50 Requirements for Program Participation The section heading has been revised and the text has been amended to set forth the provisions for participating in an ARP or land diversion program. Participation requirements for farms with both corn and grain sorghum CAB's, or farms with either a corn or grain sorghum CAB, are set forth in this section. Section 1413.51 Successors in Interest This section has been renumbered and amended to include the rules applicable to CCC-477 successor in interest determinations. Section 1413.52 Misrepresentation and Scheme or Device This section has been renumbered and amended to refer to CCC-477. Section 1413.53 Required Acreage Reduction This section has been renumbered and amended to correct the method for determining the acreage of eligible land devoted to conservation uses (CU) for ELS cotton. Section 1413.54 Land Diversion This section has been renumbered and amended to provide current provisions regarding a land diversion program. A land diversion program will not be offered in 1994. Section 1413.55 Acreage Reduction Program Provisions This section has been renumbered and amended to provide 1994 acreage reduction factors for wheat, feed grains, and upland and ELS cotton and rice. Rules are also set forth in this section for planting of minor oilseeds and IOC's on ACR or CU for payment. Section 1413.60 Basic Rules for ACR and CU for Payment Acreage This section has been amended to include provisions for CU for payment acreage because the rules for ACR and CU for payment acreage are the same. Section 1413.61 Eligible Land for ACR and CU for Payment Designation This section has been amended to include the rules for determining eligibility for CU for payment acreage. Other changes have been made to clarify the provisions within this section. Section 1413.62 Ineligible Land for ACR or CU for Payment Designation This section has been amended to include the rules for determining whether land is eligible to be designated for CU for payment. Other changes have been made to clarify the provisions within this section. Section 1413.63 Required Cover Crops and Practices on ACR The section heading and the text have been amended to provide references to ACR only for required cover and practices and to include rules applicable to required cover crops and ACR practices. Section 1413.64 Nationally Approved Cover Crops and Practices for ACR and CU for Payment Acreages This section has been added to set forth the rules for nationally approved cover crops and practices for ACR and CU for payment acreage. Section 1413.65 Locally Approved Cover crops and Practices for ACR and CU for Payment This section has been added to provide the rules for locally approved cover crops and practices for ACR and CU for payment. Section 1413.66 Use of ACR and CU for Payment Acreage This section has been renumbered and amended to include references to the use of CU for payment acreage. Section 1413.67 Control of Erosion, Insects, Weeds, and Rodents on ACR and CU for Payment Acreage This section has been renumbered and amended to include references to CU for payment acreage. Section 1413.68 Orchards This section has been renumbered and amended to include references to CU for payment acreage. Section 1413.69 Land Going Out of Agricultural Production This section has been renumbered and amended to include references to CU for payment acreage. Section 1413.70 Wildlife Food Plots or Habitat This section has been renumbered and amended to include references to CU for payment acreage and rules for determining crop seeding mixtures to be planted on such acreage. Section 1413.71 Insufficient ACR Acreage This section has been renumbered and amended for clarity. Section 1413.72 Destroyed Crop Acreage This section has been renumbered and amended to clarify the provisions for requesting to substitute acreages of small grains or row crops that were destroyed for designated ACR acreage. Section 1413.74 Reduction in ACR This section has been renumbered and amended for clarity. Section 1413.75 Skip Rows This section has been renumbered and amended to remove incorrect paragraph references. Section 1413.100 Determination of Farm Program Acreage This section has been amended for clarity. Section 1413.101 General Payment Provisions This section has been amended for clarity. Section 1413.102 Advance Payments This section has been amended for clarity. Section 1413.103 Established (Target) Prices This section has been renumbered and amended for clarity. Section 1413.104 Deficiency Payments This section has been renumbered and amended for clarity. Section 1413.105 Timing and Calculation of Deficiency Payments This section has been renumbered and amended to correct paragraph references. Section 1413.106 Division of Payments This section has been renumbered and amended to change references to contract to read agreement; to provide for determinations of scheme or device relative to cash leases; and to provide for determinations of types of leases and payment shares, division of payment shares, and clarification of determinations for hybrid seed corn growers with contracts with seed corn companies. Section 1413.107 Provisions Relating to Tenants and Sharecroppers This section has been renumbered and amended. Section 1413.108 Offsets and Assignments This section has been renumbered. Section 1413.109 Payments by Commodities and Commodity Certificates and Refunds This section has been renumbered. Section 1413.110 Malting Barley This section has been amended to remove incorrect references, add correct references, and clarify the malting barley provisions. Section 1413.121 Disaster Credit This section has been renumbered and amended to provide the rules for producer applications and COC determinations of prevented planting and failed acreage credit. Section 1413.122 Eligibility for Regular Prevented Planted and Reduced Yield Payments This section has been renumbered and amended to correct paragraph references and to include provisions used to determine eligibility for disaster payments. Section 1413.123 Regular Disaster Payment Computations This section has been renumbered and amended. E. 7 CFR Part 1414--Integrated Farm Management Program Option Part 1414 has been revised into subparts to better organize the information therein for the use of the public. Section 1414.1 General Description of the Program This section has been amended to clarify the objectives of the Integrated farm management (IFM) program. Section 1414.8 Definitions This section has been renumbered and the definitions of alternative crops, and resource conserving crop (RCC) have been amended for clarity. Section 1414.9 Acreage Enrollment This section has been renumbered and amended to clarify the program years and the acreage limitation. Section 1414.10 Eligibility This section has been renumbered and amended to clarify eligibility rules. Section 1414.11 Agreements This section has been renamed, renumbered and amended to provide that producers must agree to devote to a RCC not less than 20 percent of each crop acreage base on the farm enrolled in the IFM. Section 1414.13 Displacement of Tenants or Lessees This section has been renumbered and amended for clarity. Section 1414.27 Resource-Conserving Crops on ACR This section has been renumbered and amended to provide that ACR having RCC's planted must meet minimum size and width requirements for ACR. Haying and grazing requirements have also been clarified. Section 1414.28 Resource-Conserving Crops on Payment Acres This section has been renumbered and amended to clarify the haying, grazing and harvesting provisions for RCC's on payment acres. Section 1414.29 Traditionally Underplanted Acreage and Reduction of Payment Acres This section has been renumbered and amended for clarity. F. 7 CFR Part 1415--Options Pilot Program A pilot program for options contracts (the options program) for the 1993 crop year was announced by the Secretary of Agriculture. The options program was administered in conjunction with the Chicago Board of Trade (CBOT). Under the options program, CCC entered into contracts with eligible producers who (1) agreed to purchase at least one CBOT put option for their chosen commodity, and (2) agreed to forgo other program benefits on any enrolled bushels. Producers were reimbursed by CCC for the cost of the premium for purchasing the put option and received an incentive payment of 15 cents or 5 cents per enrolled bushel for participating in the program, depending on whether producers enrolled at the target price equivalent level or the price support equivalent level, respectively. The enrollment period for this program was March 1 through April 30, 1993. This program was available to corn producers in nine counties in three States: Champaign, Logan, and Shelby Counties in Illinois; Carroll, Clinton, and Tippecanoe Counties in Indiana; and Boone, Grundy, and Hardin Counties in Iowa. In the three Illinois counties, wheat and soybean producers could also participate. Producers were required to participate in the annual ARP for corn and wheat to be eligible for the options program on those commodities. Soybean producers must have accurately reported their soybean plantings in order to be eligible to participate. Participation Choices Producers could participate in the options program at levels that are alternatives to either (1) deficiency payments and loan program protection, or (2) loan program protection. Producers who chose the ``deficiency payments'' alternative enrolled production in the options program as ``target price bushels'' and agreed to forgo deficiency payments, price support benefits, and loan deficiency payments on any enrolled bushels. Producers who chose the ``loan program protection'' alternative enrolled production in the options program as ``price support bushels'' and agreed to forego price support benefits and loan deficiency payments on any enrolled bushels. Production could have been enrolled at either the target price or price support level, but not both. However, a producer could enroll some production at each level. Premiums and Incentives Producers participating in the options program received: (1) A subsidy to cover the cost of the premium for the purchase of the put option(s), and (2) An incentive payment of 15 cents per bushel on target price bushels, or 5 cents per bushel on price support bushels. Target Price Participation Corn participants were required to purchase at least one CBOT December 1993 corn put option contract (5,000 bushels) at a strike price equivalent to the $2.75 per bushel target price on or before June 15, 1993. Wheat participants were required to purchase at least one CBOT September 1993 wheat put option contract (5,000 bushels) at a strike price equivalent to the $4 per bushel target price on or before May 15, 1993. Price Support Participation Corn participants were required to purchase at least one CBOT March 1994 corn put option contract at a strike price equivalent to the county price support price for corn. Wheat participants were required to purchase at least one CBOT December 1993 wheat put option contract at a strike price equivalent to the county price support price for wheat. Soybean participants were required to purchase at least one CBOT March 1994 soybean put option contract at a strike price equivalent to the county soybean price support price, minus the 2 percent loan origination fee. Put options at the price support level could be purchased until the options expired, beginning at harvest of the crop (at the time the crop was otherwise eligible to be placed under loan). The Secretary determined that the strike price equivalent to the county price support price for all nine counties was $2 per bushel for corn, $2.90 per bushel for wheat, and $5.50 per bushel for soybeans. Other Production Eligible production not enrolled in either the target price or price support levels of the options program was eligible to be pledged as collateral for CCC price support loans and for deficiency payments. Other Requirements and Restrictions All put options purchased as required by the options program must have been purchased through a separate account with a registered commodity broker. A subaccount is not considered ``separate'' for purposes of the options program. Documentation Documentation of all transactions involving the commodities covered by the program was required to be provided to CCC. This documentation includes, but is not limited to, copies of brokers' trade confirmations, account statements, and copies of cash contracts or bills of sale. Corn and Wheat Options Program Participants Options program participants for corn and wheat must have complied with the acreage limitations and other requirements of the acreage reduction programs. Additionally, participants agreed that (1) in the case of target price participation, the total of the premium subsidies received under the options program and the deficiency payments received under the annual acreage reduction programs will not exceed $50,000 per person; and (2) in the case of price support participation, the total of premium subsidies received under the option program and loan deficiency payments, marketing loan gains and ``Findley'' deficiency payments received under such price support programs will not exceed $75,000 per person. A ``person'' will be determined in the same manner as a ``person'' is determined for payment limitation purposes for such annual programs. Incentive Payments Incentive payments made under either participation level are not subject to any payment limit, except to the extent that the total number of bushels any one producer may enroll in the options program is limited to 50,000 bushels for corn and 15,000 bushels for wheat and soybeans. In the event that CCC made disaster assistance available with respect to the 1993 crops of wheat, corn, or soybeans to producers participating in the options program at the target price level, such producers must refund any premium subsidies and incentive payments received on any enrolled commodities in order to receive disaster assistance from CCC. CCC will be operating a similar program in 1994, with the following changes. Section 1413.13 Eligibility The number of States and counties participating in the options program has been increased. Participating States and counties now include: (1) For corn and soybeans, Champaign, Logan, and Shelby Counties in Illinois. (2) For corn only, Carroll, Clinton, and Tippecanoe Counties in Indiana, and Boone, Grundy, and Hardin Counties in Iowa. (3) For wheat, Ford and Thomas Counties in Kansas for hard red winter wheat, and Barnes and Grand Forks Counties in North Dakota for hard red spring wheat. Wheat participation will not be available in the counties in Illinois, Indiana, and Iowa. The counties in Kansas shall use the Kansas City Board of Trade for hard red winter wheat put option contracts, and the counties in North Dakota shall use the Minneapolis Grain Exchange for hard red spring wheat put option contracts. Section 1415.15 Agreements In order to treat seed corn producers enrolled in the options program the same as if they had remained in the acreage reduction program, and to give them the same pricing flexibility as commercial corn producers, the quantity eligible for enrollment and the quantity eligible for pricing shall be based on the ratio of the program payment yield established for the crop for the farm to the actual yield produced. Producers enrolled in the options program intending to price their grain must price the grain to a licensed bonded grain dealer, grain merchant, or warehouse, or for short hedges, through a registered commodity broker. Documentation must indicate that a hedge position was taken on the grain. Section 1415.20 Premium and Incentive Payments The amount of incentive payments has been revised for 1994. Producers participating in the options program will receive an incentive payment of $.05 cents per bushel for both target price or price support participation. All producers will receive the incentive payments on a specific date when the options program contract expires instead of each producer receiving the incentive payment after closing out the option and pricing the grain. This change will reduce the motivation to close out the options position early just to receive the incentive payment. The total numbers of bushels that may be enrolled has been increased from 20 million bushels of corn to 60 million bushels of both corn and wheat. The expected cost of the program should remain essentially the same as the 1993 program because the reduced incentive payment will offset the increase in bushels accepted for participation. There continues to be no overall limit on bushels accepted for wheat and soybeans enrollment in the options program. Each county's share of this limit will be allocated based on the total corn and wheat CAB's in the county times the average of the percentage of such bases enrolled in the 1991 through 1993 CCC price support and production adjustment programs. If more bushels are enrolled than are allocated to a county, a drawing will be held to determine participants within a county. G. 7 CFR Part 1416, Voluntary Production Limitation Program The 1990 Act amended the 1949 Act to provide that, effective for the 1993 through 1995 crops of wheat and feed grains, if an ARP or a land diversion program is announced for such crops, the Secretary may conduct a pilot program in at least 15 counties in at least two States where producers have expressed an interest in participating in the pilot program. Under this program, producers on a farm shall be considered to have met the requirements of an ARP or land diversion program if such producers meet the requirements of the VPLP. After concurrence with the authors of the legislation, it was determined that the program would not be implemented until the 1994 crop year. Producers who elect to participate in the VPLP for wheat and/or feed grains shall enter into a agreement which provides that the producer shall comply with the program by: (1) Not planting wheat or feed grain crops exceeding the sum of the CAB's enrolled in the VPLP; and (2) Agreeing not to market, barter, donate, or use on the farm (including use as feed for livestock) in a marketing year a quantity of production in excess of the production limitation quantity (PLQ) and eligible carryover from prior years for the crop on the farm for the marketing year. The PLQ for a crop shall be determined by multiplying the acreage permitted to be planted to such crop under an ARP by the PLQ yield. The PLQ yield is the higher of the farm program payment yield, or the average of the yield per harvested acre for each of the 5 years preceding the crop year in which the producers first participate in the pilot program, excluding the highest and lowest crop year yields, and any year in which the crop was not planted on the farm. Carryover production is defined as eligible and ineligible carryover as follows: (1) If the crop was enrolled in the VPLP the previous year and is enrolled in the current year, the carryover production from any previous crop year is considered ineligible carryover and if marketed, bartered, donated, or used shall be counted against the PLQ for the current year, except the producer may destroy the carryover, under supervision of employees of the county ASCS office, so that no benefit will be derived from the carryover; or (2) If the crop was not enrolled in the VPLP the previous year but is enrolled in the current year, the carryover production from a previous crop year is considered eligible carryover and may be marketed, bartered, donated, or used without being counted against the PLQ for the current crop year; or (3) If the crop was enrolled in the VPLP the previous year and is enrolled in the ARP in the current year, the producer may devote an amount of acreage to conservation use equal to the excess production divided by the PLQ yield for the crop. Producers shall be considered to have complied with the terms and conditions of ARP or land diversion program for the crop, even though the acreage planted to such crop might exceed the permitted acreage and the available flex acreage under the terms and conditions of the ARP. Producers may store any quantity of the enrolled crop exceeding the PLQ for the crop for a period not to exceed 5 marketing years. Any excess commodity stored longer than 5 years is subject to forfeiture to CCC. Corn and grain sorghum permitted acreages are combined for the 1994 through 1997 crop years. A farm with both corn and grain sorghum CAB's will have the PLQ determined by multiplying the combined permitted acreages of such crops times the corn PLQ yield for the farm. If a farm has a corn CAB, and a producer on such farm plants grain sorghum; or if a farm has a grain sorghum CAB, and the producer plants corn; or if a farm has both corn and grain sorghum CAB's, these farms will have the PLQ expressed as corn equivalent bushels. An example calculation follows: (1) Corn-100 acre CAB, 100 bushel PLQ yield, permitted-100 acres. (2) Grain Sorghum-100 acre CAB, 50 bushel PLQ yield, permitted-100 acres. (3) Total permitted acres-200. 200 (permitted acres) X 100 (corn PLQ yield) = 20,000 bushels total corn equivalent PLQ. The result is the total PLQ for both crops. Grain sorghum production is converted to corn equivalent production (CE) based on a ratio of the corn PLQ yield to the grain sorghum PLQ yield for such farm. In the preceding example, the yield ratio is 2 to 1. Therefore, if the producer markets 100 bushels of corn, then 100 bushels of CE is considered marketed. If 50 bushels of grain sorghum is marketed, then 100 bushels of CE is considered marketed. The ``0/85/92'' provisions, in accordance with Sec. 1413.41, and flex provisions, as set forth in Sec. 1413.43, will not apply to farms enrolled in the VPLP. Iowa, Nebraska, and South Dakota have been selected as the States in which to conduct this pilot program. From these States, a total of 15 counties have been selected to participate in the VPLP. The proposed counties are: Fremont, Harrison, Mills, Monona, and West Pottawatamie Counties in Iowa; Adams, Furnas, Harlan, Kearney, and Phelps Counties in Nebraska; and Bon Homme, Charles Mix, Douglas, Turner, and Yankton Counties in South Dakota. It is further proposed that the following provisions will apply to the VPLP: (1) Producers who have wheat and feed grain CAB's on a farm are not required to enroll all wheat and feed grain CAB's into the VPLP; (2) The acreage for payment for which deficiency payments shall be earned shall be the smaller of the maximum payment acreage (MPA) or the acreage of the crop planted for harvest on the farm; i.e. for corn and grain sorghum, the sum of the corn and grain sorghum payment acres for a farm shall be prorated to corn and grain sorghum based on the ratio of the MPA for each crop to the total of the corn and grain sorghum MPA's; (3) The P&CP acreage for an enrolled crop shall equal the CAB of the respective crop if the crop is in compliance with the VPLP provisions; and (4) The crop acreage plantings of all enrolled crops shall be limited to the sum of the crop acreage bases for all crops enrolled in the VPLP. To ensure compliance with the provisions of the VPLP, producers participating in this pilot program will be required to certify for each enrolled crop: (1) The quantity of the previous year's commodity on hand at the beginning of the marketing year (June 1 for wheat, barley, and oats; September 1 for corn and grain sorghum); (2) The quantity of the current year commodity harvested; and (3) The quantity of the crop on hand at the end of the marketing year (May 31 for wheat, barley, and oats; August 31 for corn and grain sorghum). If the sum of number (1) and number (2) less number (3) is equal to or less than the PLQ and eligible carryover, then the producer has complied with the production limitation. Producers not complying with the production limitations will be assessed penalties on all bushels disposed of by the producer in excess of the PLQ. Graduated penalties will be assessed based on the percentage of bushels disposed of in excess of the sum of the PLQ and eligible carryover as follows: (1) 5 percent or less, the penalty is the larger of the loan rate or the current market price times the excess bushels; (2) 6 to 10 percent, the penalty is the larger of the loan rate or 1.2 times the current market price times the excess bushels; and (3) Over 10 percent, the penalty is the larger of the target price or 1.5 times the current market price times the excess bushels at the time the violation occurred. A penalty will be assessed against producers for certifying inaccurate quantities for the inventory of enrolled crop of wheat or feed grain on hand at the beginning of the marketing year, the quantity of current year crop harvested from acreage enrolled in the VPLP, and the quantity of commodities on hand at the end of the marketing year. The penalty per bushel for discrepancies will be the higher of the target price for the commodity or 1.5 times the market price for the commodity on the date of the inaccurate report. Example: corn target price = $3.00; market price on date of report = $2.90 per bu.; excess bushels of corn = 300 bu.; therefore, $3.00 times 300 bu. = $900.00. Producers on a farm who are participating in an ARP or a land diversion program may market, barter, or use excess wheat or feed grains in a year subsequent to the year they were produced, in an amount that reflects what would be expected to be produced on acreage that the producers agree to devote to approved conservation uses (in excess of any acreage reduction or land diversion requirements) during a crop year. The total current year production from enrolled wheat and feed grain crops shall be eligible for nonrecourse loans and entry into the farmer owned reserve (FOR) if the FOR becomes available. Any commodity that is forfeited to CCC is considered marketed. This interim rule establishes 7 CFR part 1416 to set forth the terms and conditions of the VPLP with which a producer must comply in order to be eligible for benefits of the wheat and feed grains programs for the 1994 and 1995 crop years. List of Subjects 7 CFR Part 718 Acreage allotments, Marketing quotas, Reporting and recordkeeping requirements. 7 CFR Parts 790 and 791 Price support programs. 7 CFR Parts 1413 and 1414 Acreage allotments, Cotton, Disaster assistance, Feed grains, Price support programs, Reporting and recordkeeping requirements, Rice, Soil conservation, Wheat. 7 CFR Part 1415 Acreage allotments, Appeals, Feed grains, Loan programs-- Agriculture, Price support programs, Reporting and recordkeeping requirements, Soil conservation. 7 CFR Part 1416 Acreage allotments, Feed grains, Loan programs--Agriculture, Penalties, Price support programs, Reporting and recordkeeping requirements, Soybeans, Warehouses, Wheat. Accordingly, chapters VII and XIV of the Code of Federal Regulations are amended as follows: PART 718--DETERMINATION OF ACREAGE AND COMPLIANCE 1. The authority citation for 7 CFR part 718 continues to read as follows: Authority: 7 U.S.C. 1373 and 1374; 15 U.S.C. 714b and 714c. 2. Section 718.1 is revised to read as follows: Sec. 718.1 Paperwork Reduction Act assigned number. Information collection requirements contained in this part have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35, and assigned OMB Nos. 0560-0004 and 0560- 0092. 3. Section 718.2 is revised to read as follows: Sec. 718.2 Applicability. The provisions of this part apply to compliance determinations for the 1994 and subsequent crop years as authorized by the Agricultural Adjustment Act of 1938, as amended, the Agricultural Act of 1949, as amended, and the Commodity Credit Corporation Charter Act, as amended, with respect to the programs administered by the Agricultural Stabilization and Conservation Service, (ASCS), through State and county Agricultural Stabilization and Conservation (State and county committees) committees. 4. In Sec. 718.3, paragraph (b) is amended by removing the definitions for ``Director'' and ``Reporting date,'' and revising the definitions for ``maintenance default'', ``nonprogram crop'', ``reported acreage'', ``reporting date'', and ``standard payment reduction'' and adding definitions for ``Crop reporting and disposition date'' and ``measurement service guarantee'' to read as follows: Sec. 718.3 Definitions. * * * * * (b) * * * * * * * * Crop reporting and disposition date. Dates established by the Deputy Administrator, State and County Operations (Deputy Administrator), ASCS, representing: (1) The final date to report crop acreages; and (2) The final disposition date to dispose of excess crop acreages. The final crop disposition date shall be the earlier of: (i) The applicable final crop reporting date; or (ii) 45 days prior to the normal harvesting date unless, for an acreage of small grain only, an extension is granted in accordance with Sec. 718.22(c) of this title. Maintenance default. A failure by the producer to properly maintain acreage designated as ACR, CU for payment, or CRP as provided in parts 1413 and 1410, respectively, of this title. Measurement service guarantee. A producer who requests and pays for an authorized ASCS representative to measure acreage may use such measurement for ASCS and CCC program participation unless the producer takes action to adjust the measured acreage. If the producer has taken no such action, and the measured acreage is later discovered to be incorrect, the acreage determined pursuant to the measurement service will be used for program purposes for that program year. * * * * * Nonprogram crop. Any crop other than a program crop, ELS cotton, oilseed, industrial or other crop as provided in part 1413 of this title. * * * * * Reported acreage. The acreage reported by the farm operator, farm owner, or a properly authorized agent on form ASCS-578, Report of Acreage. * * * * * Standard payment reduction. A reduction in a producer's program benefits made pursuant to Sec. 718.22 or as provided in parts 1410 and 1413 of this title. * * * * * 5. Section 718.10 is amended by revising paragraph (a)(4) and adding paragraphs (a)(7) and (d) to read as follows: Sec. 718.10 State committee responsibilities. (a) * * * (4) Establish: (i) Disposition dates for crops that are no later than the applicable final reporting dates set forth in Sec. 718.22; (ii) Normal planting periods for crops; * * * * * (7) Adjust the per acre rate for acreage in excess of 25 acres to reflect the actual cost involved when performing measurement service from aerial slides. * * * * * (d) The cost of furnishing reproductions of aerial or other photographs, mosaics, and maps to farmers, governmental agencies, and others is as follows: (1) Free upon request to the farm operator, landowner, Federal Crop Insurance Corporation (FCIC) and reinsured companies, including their agents or adjusters, if needed for loss adjustment, Soil Conservation Service (SCS) for highly erodible land and wetland determinations, Farmers Home Administration, and other Federal or State Agencies to perform their official duties in making ASCS program determinations; (2) At the rate determined by ASCS to cover the costs of making such items available. 6. Section 718.12 is amended by revising paragraph (a)(2) and the introductory text of paragraph (b) to read as follows: Sec. 718.12 Authority for farm entry and securing information. (a) * * * (2) Secure from producers data which are necessary to keep current the farm records located in the county ASCS office or which are a requirement to obtain program benefits under any mandatory or voluntary program administered by ASCS. (b) If a farm operator, owner, or other producer refuses to permit entry for the purpose of ascertaining acreage or production or determining adherence to any other program requirement under any mandatory or voluntary program for which such determinations are required, the county executive director shall notify the farm operator in writing as soon as possible that, unless the farm operator advises the county office within 15 days after the date of such notice that such operator will permit entry and inspection on the farm and pay the cost thereof, the following consequences, as applicable, will apply until such time as the operator permits such entry and inspection: * * * * * 7. Section 718.13 is amended by revising paragraph (a)(3) to read as follows: Sec. 718.13 Denial of program benefits. (a) * * * (3) Fails to maintain acreage designated as ACR, CU for payment, or CRP as provided in parts 1413 and 1410, respectively, of this title. * * * * * 8. Section 718.21 is amended by revising paragraph (b) and adding paragraph (e) to read as follows: Sec. 718.21 Measurement services. * * * * * (b) The acreage requested to be measured by staking and referencing shall not exceed the effective farm allotment for marketing quota crops or maximum permitted acreage for program crops plus the available flex acreage with respect to other program crops enrolled in that crop's production adjustment program for that year. * * * * * (e) When a measurement service reveals acreage in excess of the permitted acreage plus the available flex acreage with respect to other program crops enrolled in that crop's production adjustment program for that year, the producer must do either of the following in order to keep the measurement service guarantee: (1) Destroy the excess acreage and pay for an authorized employee of ASCS to verify destruction, (2) Pay for measurement service for an authorized employee of ASCS to verify destruction of an acreage of another crop on the farm that is enrolled in a production adjustment program equal to the excess acreage, if such other crop acreage is within permitted acreage established for the farm for that crop. 9. Section 718.22 is revised to read as follows: Sec. 718.22 Acreage reports. (a) To be eligible for program benefits, a report of acreage shall be required for all cropland on farms that produce an agricultural commodity that includes: (1) Number of acres, (2) Land use, (3) Production, including zero production, (4) Prevented or failed acreage, (5) Crop disposition, if required according to 7 CFR 1413.21, and (6) Other program requirements. (b) The reports required under paragraph (a) of this section shall be timely filed by the farm operator, farm owner, or a duly authorized representative with the county committee by the final reporting date applicable to the crop as established by the county committee. Such final reporting dates are available at the applicable State and county ASCS offices. (c) Small grain acreage may be destroyed beyond the crop disposition date by haying or grazing provided the farm operator, prior to using or delivering for sale hay derived from such small grain acreage: (1) Requests an extension in writing by the crop disposition date; and (2) Pays a fee to cover the cost of a farm visit by an authorized ASCS employee to verify that: (i) The small grain acreage was cut for hay before reaching hard dough stage; and (ii) None of the small grain acreage was harvested as grain. (d) Acreage reports are not required to obtain burley tobacco benefits, including types: (1) 32; Maryland tobacco produced in a quota area on a farm that had a Maryland quota in effect when quotas on Maryland tobacco were in effect. (2) 41; Cigar-filler tobacco produced in Pennsylvania. (3) 61; Cigar-wrapper tobacco produced in Connecticut or Massachusetts. (4) 65; Cigar-wrapper tobacco produced in Georgia or Florida. (e) Peanut producers shall provide the county office evidence of disposition of any peanuts that are kept on the farm, including: (1) Type and quantity for use for seed on any farm in which the producer has an interest. (2) Type, quantity, names, and addresses of purchases for peanuts sold or given to others. (f) Peanut producers shall provide the county office information for acquisition of seed peanuts from other sources, including: (1) Name and address of person who sold or gave producer the peanuts. (2) Type, farmer's stock or shelled basis, and quantity. (3) Acquisition date. (g) Acreage and land use reports shall be: (1) Used to determine program eligibility and benefits. (2) On form ASCS-578, Report of Acreage. 10. Section 718.24 is amended by revising the introductory text and adding paragraphs (d), (e), (f), and (g) to read as follows: Sec. 718.24 Revised reports. The farm operator may revise a report of acreage to change the acreage reported if the county committee determines that the revision does not have an adverse impact on the program. Revised reports shall be filed and accepted: * * * * * (d) For a farm enrolled in the ARP, if the requirements of paragraph (a) of this section have been met as well as the following: (1) The producer was in compliance with all other program requirements by the earlier of the final disposition date or the established reporting date for the crop, (2) The producer met all ACR and CU for payment requirements for the crop as provided in part 1413 of this title. (e) For requests to hay and graze small grains beyond the disposition date made according to Sec. 718.22(c). (f) For excess ACR resulting from an acreage determination, the farm operator may request in writing that the excess ACR be released at any time. (g) Other acreage may be substituted for previously reported ACR if the: (1) Designated ACR is later approved for CRP acreage, or (2) The farm operator pays an inspection fee for an authorized ASCS employee to witness the destruction of hay production on an acreage that has been swathed before being designated as ACR, and all of the following conditions are met: (i) The farm is, and was, as of the final reporting date, in compliance with all eligibility and minimum size and width requirements as provided in part 1413 of this title, (ii) The acreage has not been found out of compliance through a spot check, (iii) The farm operator pays an inspection fee for an authorized ASCS employee to inspect the original and substituted acreage. A fee is not charged for substituted ACR to CRP acreage. 11. Section 718.25 (a) is revised to read as follows: Sec. 718.25 Reporting out of compliance. * * * * * (a) A program crop exceeds the sum of the maximum acreage permitted and the available flex from other participating crops in ARP, * * * * * 12. Section 718.26 is amended by revising paragraphs (a), (b)(3) through (b)(8), adding paragraphs (b)(9) and (b)(10), and revising paragraph (c) to read as follows: Sec. 718.26 Farm inspections. (a) A representative number of farms selected shall be inspected by an authorized representative of ASCS to ascertain the acreage or production, or to determine adherence to any requirement specified as a prerequisite for obtaining benefits under ARP, CRP, disaster programs, and highly erodible and wetland provisions under part 12 of this title. (b) * * * (3) A farm on which the county committee determines an estimate of production is needed to properly administer the program for any marketing quota crop. (4) A farm for which an acreage report shows nonquota tobacco produced in a State where marketing quotas are in effect for any kind of tobacco. (5) Farms that have an effective flue-cured tobacco allotment. (6) Farms on which there is unmarketed tobacco. (7) Farms on which no tobacco is grown that have zero effective allotment for dark air-cured and fire-cured tobacco. (8) A farm for which a review of the production evidence submitted by the operator indicates that: (i) Data is not valid, (ii) Reported production is not reasonable when compared to other farms in the area. (9) Farms for which production evidence is submitted to document farm and warehouse stored production, actual yields, and ginner and buyer records. (10) Farms for which an ASCS-574, Application for Disaster Credit, is filed for prevented or failed acreage credit. (c) County offices may conduct additional farm inspections when evidence indicates possible noncompliance with any requirement specified as a prerequisite for obtaining program benefits. 13. Section 718.40 is amended by revising paragraphs (d)(1), (d)(2), and (e)(1) to read as follows: Sec. 718.40 Tolerance and variance rules applicability. * * * * * (d) * * * (1) For individual crop acreages or program requirements, except for tobacco, the larger of 1.0 acre or 5 percent of the reported acreage, but not to exceed 50 acres. (2) For farms with corn and grain sorghum crop acreage bases that are enrolled in a production adjustment program, the larger of 1.0 acre or 5 percent of the combined reported acreage, not to exceed 50 acres. * * * * * (e) With respect to: (1) Individual crop acreages or program requirements, except for tobacco, the applicable requirements shall be considered to have been met if: (i) The determined acreage for each crop does not differ from the reported acreage by more than the tolerance, and (ii) A determination of good faith has been made by the county committee. * * * * * 14. Section 718.42 is amended by revising paragraph (b)(2) and adding paragraph (b)(3) to read as follows: Sec. 718.42 Skip rows and strip crops. * * * * * (b) * * * (2) If the distance between the rows is 32 inches or wider and the strips of idle land are at least 60 inches but less than 64 inches, the producer has the option to consider the crop as either solid planted or skip row if the producer has a history of planting 32-inch or wider rows. (3) The COC shall determine history of 32-inch or wider rows by verifying that cotton acreage has been planted in 32-inch or wider rows in past years and reported: (i) On the acreage report, (ii) To FCIC, (iii) To other State or Federal Agencies. * * * * * 15. Section 718.43 is amended by revising paragraphs (a)(2) and (a)(3), redesignating paragraph (b) as (c), adding new paragraph (b) and revising the newly designated paragraph (c) to read as follows: Sec. 718.43 Deductions. (a) * * * (2) For tobacco, three-hundredths acre, except that turn areas, terraces, permanent irrigation and drainage ditches, sod waterways, noncropland, and subdivision boundaries each of which is at least 30 inches (approximately 3.8 links) in width may be combined to meet the 0.03-acre minimum requirement. (3) For all other crops and land uses, one-tenth acre. Turn areas, terraces, permanent irrigation and drainage ditches, sod waterways, noncropland, and subdivision boundaries each of which is at least 30 inches (approximately 3.8 links) in width and each of which contain 0.1 acre or more may be combined to meet any larger minimum prescribed for a State in accordance with Sec. 718.10(b). (b) If the area not devoted to the crop or land use is located within the planted area, then consider the part of any perimeter area that is more than 33 links in width to be an internal deduction if the standard deduction is used. (c) A standard deduction of three percent of the area devoted to a row crop and zero percent of the area devoted to a close-sown crop may be used in lieu of measuring the acreage of turn areas. The COC may use, upon approval by the STC, a different percentage when the three percent or zero percent deduction does not adequately reflect the normal cultural practice in the county. 16. Section 718.45 is revised to read as follows: Sec. 718.45 Notice of measured acreage. Written notice of measured acreage shall be on form ASCS-468, Notice of Determined Acreage and shall constitute notice to all interested producers on the farm. The county committee shall furnish such notice to each farm operator when a farm is measured, remeasured, or checked for adjustment credit. 17. Section 718.46 is revised to read as follows: Sec. 718.46 Producer reliance on previous determinations. If, in reporting an acreage, a producer relies in good faith on an acreage previously determined for that crop year by an employee of ASCS (except acreage determined from data furnished by the producer) and the acreage is subsequently determined by the county committee to be incorrect, the county committee shall consider the acreage on which the producer relied to be correct for that program year upon obtaining satisfactory proof from the producer that such producer relied in good faith upon the incorrect determination. However, the county committee may use the correct data if the producer would be adversely affected by an error in producer service provided under Sec. 718.21. 18. Section 718.47 is amended by revising paragraphs (a), (b)(1)(i), and (b)(1)(ii) to read as follows, and removing paragraph (d). Sec. 718.47 Redeterminations. (a) A redetermination of crop and land use, acreage, appraised yield, or farm-stored production for a farm may be initiated by the county committee, State committee, or Deputy Administrator at any time. Such redeterminations may also be initiated by a producer who has an interest in the farm upon filing a request within 15 days after the date of the notice furnished the farm operator in accordance with Sec. 718.44 or within five days after the initial appraisal of the yield of a crop or before any of the farm-stored production is removed from storage and upon payment of the cost of making such redetermination. A redetermination shall be undertaken in the manner prescribed by the Deputy Administrator. Such redetermination shall be used in lieu of any prior determination. (b) The county committee shall refund the payment of the cost for a redetermination when, because of an error in the initial determination: (1)* * * (i) Five percent or five pounds for cotton; (ii) Five percent or one bushel for wheat, barley, oats, and rye; * * * * * 19. Part 790 is revised to read as follows: PART 790--INCOMPLETE PERFORMANCE BASED UPON ACTION OR ADVICE OF AN AUTHORIZED REPRESENTATIVE OF THE SECRETARY Sec. 790.1 Applicability. 790.2 Action. 790.3 Delegation of authority. 790.4 Filing of request for consideration. Authority: Sec. 326, 76 Stat. 631, 77 Stat. 47, 79 Stat. 1192; 7 U.S.C. 1339a. Sec. 790.1 Applicability. This part is applicable to all programs set forth in title 7 that are administered by the Agricultural Stabilization and Conservation Service, hereinafter referred to as ``ASCS'' under which benefits are extended or payments are made to farmers. Sec. 790.2 Action. (a) Notwithstanding any other provision of law, performance rendered in good faith based upon action of or information provided by any authorized representative of a County Committee or State Committee, as defined in part 719 of this chapter, may be accepted by the Administrator, ASCS (Executive Vice President, CCC), the Associate Administrator, ASCS (Vice President, CCC), or the Deputy Administrator, State and County Operations, ASCS (Vice President, CCC), as meeting the requirements of the applicable program, and benefits may be extended or payments may be made therefor in accordance with such action or advice to the extent it is deemed desirable in order to provide fair and equitable treatment. (b) The provisions of this part shall be applicable only if a producer relied upon the action of a county or State committee or an authorized representative of such committee or took action based on information provided by such representative. The authority provided in this part does not extend to cases where the producer knew or had sufficient reason to know that the action or advice of the committee or its authorized representative upon which they relied was improper or erroneous, or where the producer acted in reliance on their own misunderstanding or misinterpretation of program provisions, notices, or advice. Sec. 790.3 Delegation of authority. The State committee may, in accordance with instructions issued by the Deputy Administrator, State and County Operations (DASCO), exercise the authority provided in this part in programs administered by the ASCS in cases where the total of any payments and benefits extended under this part does not exceed $5,000. Sec. 790.4 Filing of request for consideration. (a) Any person who feels that they are entitled to consideration under the provisions of this part may file a request with the county committee, or (b) the county committee may submit a request for consideration to the State committee without a specific request from the producer when the county committee believes that the producer is entitled to consideration under the provisions of this part. 20. Part 791 is revised to read as follows: PART 791--AUTHORITY TO MAKE PAYMENTS WHEN THERE HAS BEEN A FAILURE TO COMPLY FULLY WITH THE PROGRAM Sec. 791.1 Applicability. 791.2 The making of loans, purchases, and payments when there has been a failure to fully comply with the program. 791.3 Delegation of authority. Authority: Sec. 602, 79 Stat. 1206, 7 U.S.C. 1838; sec. 379b, 84 Stat. 1362, 7 U.S.C. 1379b; sec. 105, 84 Stat. 1368, 7 U.S.C. 1441 note; sec. 103, 84 Stat. 1374, 7 U.S.C 1444. Sec. 791.1 Applicability. This part is applicable to the wheat, feed grain, cotton, and rice programs, and to all other programs to which this part is made applicable by individual program regulations. Sec. 791.2 The making of loans, purchases, and payments when there has been a failure to fully comply with the program. In any case in which the failure of a producer to comply fully with the terms and conditions of any program to which this part is applicable precludes the making of loans, purchases, or payments, the Deputy Administrator, State and County Operations (DASCO), Deputy Administrator, Commodity Operations (DACO), and National Appeals Division (NAD), may, nevertheless, authorize the making of such loans, purchases, or payments in such amounts as determined to be equitable in relation to the seriousness of the failure. The provisions of this part shall be applicable only to producers who are determined to have made a good faith effort to comply fully with the terms and conditions of the program and rendered substantial performance. Any person who feels that he or she is entitled to consideration under the provisions of this part may file a request with the county committee. Sec. 791.3 Delegation of authority. The authority contained in Sec. 791.2 of this title may be redelegated in whole or in part. 21. Part 1413 is revised to read as follows: PART 1413--FEED GRAIN, RICE, UPLAND AND EXTRA LONG STAPLE COTTON, WHEAT AND RELATED PROGRAMS Subpart A--General Provisions Sec. 1413.1 Applicability. 1413.2 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. 1413.3 Controlled substance violations. 1413.4 Administration. 1413.5 Performance based upon advice or action of County or State Committee. 1413.6 Appeals. 1413.7 Paperwork Reduction Act assigned numbers. Subpart B--Definition of Terms Used in This Part 1413.8 Definitions. Subpart C--Planted and Considered Planted Acreages 1413.10 Planted crop acreages. 1413.11 Considered planted acreages. 1413.12--1413.14 [Reserved] Subpart D--Farm Program Yields 1413.15 Farm program payment yields. 1413.16 Establishing crop yields for soybeans and minor oilseeds. 1413.17 Historical Weighted Yields (HWY). 1413.18 Irrigated Acreage Maximum (IAM) for determining HWY's. 1413.19 Submitting production evidence. 1413.20 Reducing yields. Subpart E--Crop Acreage Bases 1413.24 Crop acreage bases. 1413.25 Participation in Conservation Reserve Program. 1413.26 Adjusting CAB's. 1413.27 Conservation compliance CAB exchanges. 1413.28--1413.29 [Reserved] 1413.30 Reconstitution of farms. 1413.31 Notice of CAB's and yields. Subpart F--Extra Long Staple Cotton Crop Acreage Bases and Yields 1413.34 ELS cotton counties. 1413.35 ELS cotton CAB's. 1413.36 ELS cotton program payment yields. 1413.37 Submitting ELS cotton production evidence. Subpart G--Program Options 1413.41 0/85/92 program provisions for wheat and feed grains. 1413.42 50/85/92 program provisions for upland cotton and rice. 1413.43 Planting flexibility. Subpart H--Program Agreement and Enrollment Provisions 1413.50 Requirements for program participation. 1413.51 Successors in interest. 1413.52 Misrepresentation and scheme or device. 1413.53 Required acreage reduction. 1413.54 Acreage reduction program provisions. 1413.55 Land diversion. Subpart I--Acreage Conservation Reserve and Conserving Use for Payment Provisions 1413.60 Basic rules for ACR and CU for payment acreage. 1413.61 Eligible land for ACR and CU for payment designation. 1413.62 Ineligible land for ACR and CU for payment designation. 1413.63 Required cover crops and practices on ACR. 1413.64 Nationally approved cover crops and practices for ACR and CU for payment acreages. 1413.65 Locally approved cover crops and practices for ACR and CU for payment acreages. 1413.66 Use of ACR and CU for payment acreage. 1413.67 Control of erosion, insects, weeds, and rodents on ACR and CU for payment acreage. 1413.68 Orchards. 1413.69 Land going out of agricultural production. 1413.70 Wildlife food plots or habitat. 1413.71 Insufficient ACR acreage. 1413.72 Destroyed crop acreage. 1413.73 [Reserved] 1413.74 Reduction in ACR. 1413.75 Skip rows. Subpart J--Payment Provisions 1413.100 Determination of farm payment acreage. 1413.101 General payment provisions. 1413.102 Advance payments. 1413.103 Established (target) prices. 1413.104 Deficiency payments. 1413.105 Timing and calculation of deficiency payments. 1413.106 Division of payments. 1413.107 Provisions relating to tenants and sharecroppers. 1413.108 Offsets and assignments. 1413.109 Payments by commodities and commodity certificates and refunds. 1413.110 Malting barley. Subpart K--Prevented Planting and Failed Acreage Credit 1413.121 Disaster credit. 1413.122 Eligibility for regular prevented planting and reduced yield payments. 1413.123 Regular disaster payment computations. Authority: 7 U.S.C. 1308, 1308a, 1309, 1441-2, 1444-2, 1444f, 1445b-3a, 1461-1469; 15 U.S.C. 714b and 714c. Subpart A--General Provisions Sec. 1413.1 Applicability. The regulations in this part applicable to the Commodity Credit Corporation (CCC) 1994 and 1995 feed grain, rice, extra long staple (ELS), and wheat programs, and the 1994 through 1997 upland cotton programs. Producers of these commodities who enter into agreements with the CCC and fully comply with the terms of such agreements and the provisions of this part are eligible for program benefits. The programs are conducted throughout the United States, including Puerto Rico. Sec. 1413.2 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. Whenever a producer, or a person affiliated with such producer, is determined to be ineligible in accordance with part 12 of this title, such producer shall be ineligible for any payments under this part and shall refund any payments already received in accordance with Sec. 1413.101(f). Sec. 1413.3 Controlled substance violations. In accordance with the regulations in part 796 of this title, payments shall not be made to program participants who are convicted of planting, cultivating, growing, producing, harvesting or storing a controlled substance as defined in part 796. Sec. 1413.4 Administration. (a) The programs are administered under the general supervision of the Administrator, Agricultural Stabilization and Conservation Service (ASCS) and shall be carried out in the field by State and county Agricultural Stabilization and Conservation committees (herein called ``State and county committees''). (b) State and county committees, and representatives and employees thereof, do not have authority to modify or waive any of the provisions of the regulations of this part. (c) The State committee shall take any action required by these regulations 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 regulation of this part. (d) No provision or delegation herein to a State or county committee shall preclude the Administrator, ASCS, 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 may authorize State and county committees to waive or modify deadlines and other program requirements in cases where lateness or failure to meet such other requirements does not affect adversely the operation of the program. (f) A representative of CCC may execute a CCC-477, Intention to Participate in the 1995 Price Support and Production Adjustment Programs only under the terms and conditions determined and announced by the Executive Vice President, CCC. Any CCC-477 which is not executed in accordance with such terms and conditions, including any purported execution prior to the date authorized by the Executive Vice President, CCC, shall be null and void and shall not be considered to be an agreement between CCC and the operator and any other producer on the farm. Sec. 1413.5 Performance based upon advice or action of County or State Committee. The provisions of part 791 of this title with respect to performance based upon action or advice of any authorized representative of the Secretary shall be applicable to this part. Sec. 1413.6 Appeals. (a) A producer enrolled in the programs conducted in accordance with this part may obtain reconsideration and review of any determination made under this part in accordance with the appeal regulations found at part 780 of this title. (b) With respect to farm program payment yields, determinations made before December 23, 1985, are not appealable. Sec. 1413.7 Paperwork Reduction Act assigned numbers. The information collection requirements contained in these regulations have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35, and assigned OMB Nos. 0560- 0004 and 0560-0092. Subpart B--Definitions of Terms Used in This Part Sec. 1413.8 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 governing the reconstitution of farms shall also be applicable, except where those definitions conflict with the definitions set forth in this section. Acreage conservation reserve (ACR) means the acreage which is required to be taken out of production and maintained according to Sec. 1413.67. Acreage for payment means the acreage used to compute deficiency payments for the crop for the farm as determined in accordance with Sec. 1413.104 (d) and (e). Acreage reduction program (ARP) means a land retirement system in which participating producers agree not to plant a specified number of acres for cotton, feed grains, rice, and wheat in a program year in return for the right to obtain deficiency payments, price support loans, and other program benefits. Actual ELS cotton yield per acre means the acceptable net production divided by harvested acreage for the year. Approved nonprogram crops (ANPC) means specified crops of dry peas (Austrian peas, wrinkled seed, green, yellow, and umatilla) and lentils, that producers are allowed to plant and harvest and receive planted and considered planted credit on up to 20 percent of wheat or feed grain crop acreage base, but not on acreage that is part of a rice or upland cotton acreage base. Conserving uses (CU) means all uses during a year of cropland as defined in part 719 of this title except for: (1) Acreage of crops planted for harvest or use during the current crop year, which shall include: (i) A crop of rice, upland cotton, feed grains, wheat, or ELS cotton; (ii) A crop of oilseeds; (iii) Any nonprogram crop; (iv) IOC's; (v) Any crop for which price support is available through loans and purchases in accordance with chapter XIV of this title; and (vi) Any acreage which is harvested for green chop, hay, forage, silage, or haylage in a State where the State committee, after consulting with interested parties, has determined that haying of conserving use acreage designated to a program crop for payment purposes under Sec. 1413.104 shall not be permitted. (2) Acreage which is not available to be cropped in the current year because: (i) Of a contract under the Water Bank Program in accordance with part 752 of this title; (ii) Of an agreement under the Great Plains Conservation Program in accordance with part 631 of this title; (iii) Of a contract under the Conservation Reserve Program (CRP) in accordance with part 704 of this title; (iv) The acreage is designated as ACR acreage for the current year; or (v) The acreage is subject to a restrictive easement which prohibits its use for program crops. (3) Any land which the producer was prevented from planting to a crop of rice, upland or ELS cotton, feed grains, or wheat and which is considered as planted to such crop for the purpose of computing crop acreage bases (CAB's); (4) Any acreage which is determined to be ineligible in accordance with Sec. 1413.62; and (5) Any other acreage which is not available to be cropped in the current year and which is excluded in accordance with Sec. 1413.43. Corn means field corn or sterile high-sugar corn. Popcorn, corn nuts, blue corn, sweet corn, and corn varieties grown for decoration uses are excluded. Cotton means upland cotton and ELS cotton meeting the definition set forth in the definitions of ``upland cotton'' and ``extra long staple (ELS)'' cotton in this section, respectively, and excludes cotton not meeting such definitions. Current year means the program year in which the crop with respect to which payment may be made under this part would normally be harvested, or the program year for which a CAB or yield is being determined or other action being taken, which may not be the same as the calendar year in which action is taken. Custom farming means performing services such as land preparation, seeding, cultivating, applying agricultural chemicals, and harvesting for hire with renumeration on a unit-of-work basis excluding: (1) Harvesting by an entity engaged in such business; (2) Applying agricultural chemicals by an entity regularly engaged in such business; (3) Establishing enduring conservation measures, such as land leveling, terracing, ditching, and tree planting performed by an entity regularly engaged in such business. Determined acreage means the acreage determined in accordance with 7 CFR part 718. If the acreage is not selected for spot-check and determined in accordance with 7 CFR part 718, the determined acreage shall be the reported acreage for program purposes. Disaster means: (1) A condition affecting a crop to cause prevented planting or failed acreage of such crop, such as drought, excessive moisture, hail, earthquake, freeze, tornado, hurricane, typhoon, volcano, excessive wind, excessive heat, or any combination thereof; (2) Related conditions of insect infestation, plant disease, or other deterioration of such crop, including aflatoxin, that is accelerated or exerbated naturally because of damaging weather occurring before or during harvest; and (3) Flooding within flood or flowage easement areas. Farm program payment yield means the yield for the crop for the farm which is determined by the county committee in accordance with Sec. 1413.15 adjusted to reflect any determinations made with respect to such yield in accordance with part 780 of this title. The 1985 farm program payment yield means: (1) The yield for the crop for the farm which was determined by the county committee in accordance with the regulations in this part which were applicable for the 1985 crop year; or (2) The yield for the crop for the farm which is determined in accordance with Sec. 1413.15 if no yield was determined for the crop for the farm for the 1985 crop year. Farming operations and practices means the integration of crops and crop-plant variety selection, rotation practices, tillage systems, soil conserving and soil building practices, nutrient management strategies, biological control and integrated pest management strategies, livestock production and management systems, animal waste management systems, water and energy conservation measures, and health and safety considerations. Final disposition date means the date or time by which an acreage of barley, wheat, oilseeds, or oats must be disposed of in order that such acreage will not be considered as barley, wheat, oats, or oilseeds for harvest or by which an acreage of rye or similar grain must be disposed of in order for the acreage to qualify as ACR acreage in accordance with Sec. 1413.63 or as a conserving or conservation use. Grain sorghum means grain sorghum of a feed grain or dual purpose variety (including any cross which, at all stages of growth, has most of the characteristics of a feed grain or dual purpose variety). Sweet sorghum is excluded regardless of use. High residue program crop (HRC) means a crop of barley, corn, grain sorghum, oats, and wheat that is not harvested for silage. Industrial and other crops (IOC's) are: castor beans, chia, crambe, crotalaria, cuphea, guar, guayule, hesperaloe, kenaf, lesquerella, meadowfoam, milkweed, plantago ovato, and sesame, or other crops as designated by the Secretary. Individual State ASC Committees may remove individual crops of IOC's from the list permitted in such State. Landlord means an individual, entity, or joint operation that rents or leases land to another individual, entity, or joint operation according to 7 CFR part 719. Low residue crop (LRC) means a crop of barley, corn, grain sorghum, oats, or wheat that has been harvested for silage, and cotton. A crop of soybeans is considered a low residue crop. Marketing year means the 12-month period beginning in the current year and ending the next year as follows: (1) For barley, oats, and wheat, June 1 through May 31. (2) For cotton and rice, August 1 through July 31. (3) For corn and grain sorghum, September 1 through August 31. Maximum payment acres for wheat, feed grains, upland cotton, and rice means 85 percent of the crop acreage base for the crop for the farm less the required ACR. Minor means an individual who is not at least 18 years of age on or before the status date, as established by part 1497 of this title, of the current calendar year. Minor oilseeds means acreages of sunflowers, safflowers, mustard seed, flaxseed, rapeseed, and canola that are planted for harvest as seed, or volunteer acreages of such crops from which the seed is harvested. Nonprogram crop means any crop other than a program crop, ELS cotton, oilseed, or IOC as determined in accordance with this section. Nonrotation means the planted and considered planted acreage of a crop that is generally consistent in every year on a farm. Operator means an individual, entity, or joint operation that is in general control of the farming operations on the farm during the program year, as determined in accordance with 7 CFR part 719. Other cotton means pure strain varieties of the barbadense species, any hybrid thereof, or any other variety of cotton in which one or more of these varieties predominate, if either of the following applies: (1) The cotton is grown in a county that has not been designated as an ELS cotton county; or (2) The cotton is ginned on other than roller-type gins. Permitted acres for wheat, feed grains, upland and ELS cotton, and rice means the CAB minus the required ACR. Person means an individual, joint stock company, corporation, estate or trust, association, or other legal entity, except that two or more entities shall be combined as one person in accordance with: (1) The regulations found at part 1497 of this chapter for the purpose of administering maximum payment limitation provisions of the Food Security Act of 1985; (2) The regulations found at part 796 of this title for the purpose of administering the provisions of the Food Security Act of 1985 with respect to the production of controlled substances; and (3) The regulations found at part 12 of this title pertaining to the highly erodible land and wetland provisions (commonly known as ``sodbuster and swampbuster'' provisions) of the Food Security Act of 1985. Producer means an individual, entity, or joint operation that shares in the risk of producing the crop, and is entitled to share in the crops available for marketing from the farm, or would have shared had the crops been produced. Program benefits means loans, purchases, and payments authorized for a program crop. Program crop means a crop of wheat, corn, grain sorghum, oats, barley, upland cotton, and rice. Repeat crop means the same crop planted, harvested, and planted again on the same acreage. A second crop must be planted to be a repeat crop. Volunteer crops are not repeat crops. Rice means rice excluding sweet, glutinous, or candy rice such as Mochi Gomi. Sharecropper means a producer who: (1) Performs work concerning the production of a crop under the supervision of the operator; and (2) Receives a share of the crop for labor. Small grains means barley, oats, wheat, and rye. Soybeans means any variety of soybeans, except laredo and edamame, which is planted regardless of the intended use. Tenant means an: (1) Individual, entity, or joint operation, usually called a cash tenant, fixed-rent tenant, or standing-rent tenant, who rents land from another for a fixed amount of cash or a fixed amount of a commodity to be paid as rent; (2) Individual, entity, or joint operation, usually called a share tenant, who rents land from another individual, entity, or joint operation and pays as rent a share of the crop or the proceeds thereof. Upland cotton means planted and stub cotton which is produced from other than pure strain varieties of the Barbadense species, any hybrid thereof, or any other variety of cotton in which one or more of these varieties predominate. For program purposes, brown lint cotton is considered upland cotton. Subpart C--Planted and Considered Planted Acreages Sec. 1413.10 Planted crop acreages. (a) The county committee shall apply the guidelines in paragraphs (b) and (c) of this section in determining crop acreages planted for harvest. (b) The county committee shall include as crop acreage planted for harvest any of the following: (1) The acreage harvested; (2) The acreage of small grains which was not disposed of before the disposal deadline in accordance with 7 CFR part 718.22(c), unless an extension has been granted for the crop on the farm by the county committee; and (3) The acreage of small grains which was disposed of before the disposal deadline if such acreage qualified for a reduced yield payment in accordance with the provisions of Secs. 1413.122 and 1413.123 or failed acreage credit in accordance with the provisions of Sec. 1413.121; (4) Volunteer acreage of a crop that is harvested; (5) Minor oilseed acreage that is planted for harvest as seed or a volunteer acreage of such oilseed crop from which the seed is harvested; and (6) An acreage planted to oilseeds which is not disposed of before the disposal date established for such a crop. (c) The county committee shall exclude as crop acreage planted for harvest any of the following: (1) The acreage which failed and could have been replanted by the final planting date established for the crop by Federal Crop Insurance Corporation (FCIC), according to part 400 of this title, but which was not replanted; (2) The acreage that is approved as ACR acreage in accordance with the provisions of Secs. 1413.59 through 1413.75; (3) The acreage which was disposed of without feed or other benefit (including lint benefit for cotton) and excluded by the operator on the report of acreage as provided in part 718 of this title; (4) The acreage which was approved for wildlife food plots or planted for wildlife in accordance with Sec. 1413.70; (5) The acreage that was planted so late that it could not mature and produce grain or lint and, with respect to corn and grain sorghum, was not harvested for silage; (6)(i) Any acreage which is planted for experimental purposes under the direct supervision of a State experimental station or a commercial company and which meets the following requirements: (A) The production is: (1) Destroyed before harvest; (2) Used for testing or other experimental purposes; or (3) Donated to a wildlife agency and certified by a representative from such agency as to the amount of production donated. (B) A representative from the State experimental station or the commercial company certifies that any production harvested from the experimental acreage will not be marketed in any form. (C) The producer certifies that no harvested production of the crop has or will be received by such producer. (D) By the final reporting date for such crop, the producer: (1) Reports the acreage of the crop to be excluded; (2) Identifies the acreage of the crop on a land photocopy for reference; and (3) Pays for a farm visit by a county committee representative, according to part 718 of this title, to verify how the crop was used. (ii) Acreages planted to program crops for experimental purposes shall not be eligible for designation as ACR, CU for planted and considered planted credit and CU for payment, or any other planted and considered planted purpose. (7) The acreage of barley, oats, wheat, or rice which is left standing as a cover crop past the disposal deadline according to Sec. 1413.63 if the producer: (i) Requests from the county committee, in writing, permission to allow such crop to be left standing before the crop reporting date; (ii) Destroys the crop mechanically if the crop does not deteriorate before the end of the nongrazing period so that no benefit can be derived from the grain; (iii) Does not obtain feed benefit from the crop; and (iv) Pays the cost of a farm visit by a representative of the county committee to determine compliance with program requirements for disposal of the crop; (8) Any acreage designated under the CRP in accordance with part 704 of this title; and (9) Any crop acreage on a farm which is planted by a producer with no intent to harvest. (d) The county committee shall consider mixtures of crops to be the crop that is predominant in the mixture, except when corn or grain sorghum is mixed with another crop in the same row, the mixture shall be considered to be corn or grain sorghum, as applicable. Sec. 1413.11 Considered planted acreages. Considered planted acreage for a crop means the following: (a) With respect to the 1994 and subsequent crop years, the sum of the following except that for farms enrolled in an acreage reduction or land diversion program for the crop, the planted and considered planted shall be limited to the CAB for each crop for the crop year: (1) Any acreage devoted to ACR for the crop under an acreage reduction, or land diversion program as set forth in this part or any other part; (2) The acreage determined to be intended to be planted to the crop but which was prevented from being planted to the crop because of drought, flood, other natural disaster, or quarantine in accordance with Sec. 1413.121; (3) For farms on which producers are participating in an ARP for the crop, the acreage of crops designated for planted and considered planted purposes and CU credited to the crop in accordance with Sec. 1413.100; (4) For farms on which the ACR acreage has been reduced in accordance with Sec. 1413.74, the smaller of the following: (i) The amount of the reduction in ACR acreage; or (ii) The acreage of cropland on the farm which is not considered as being planted to a program crop under any other provision of this part; (5) For farms for which there is a CRP contract in effect, an acreage equal to the amount by which any CAB is reduced in accordance with Sec. 1413.25 due to participation in the CRP in accordance with part 704 of this title. (6) For program crops for which the acreage report filed in accordance with part 718 of this title reflects zero acreage of the program crop and which are not participating in an acreage reduction, or land diversion program for the crop, the planted and considered planted crop acreage shall equal the CAB of the crop. If the zero acreage report provision is requested by the operator, such provision cannot be used to increase the CAB for other crops on a farm. (i) Producers growing fruits and vegetables, except for green manure, haying, and grazing, as specified in Sec. 1413.43, must not have planted or have been prevented from being planted in excess of normal plantings of such crops for the farm. The cropping history for fruits and vegetables shall be based on the higher of the farm's history of planting such crops in the last year or 3 years preceding the current year. Zero report provisions will be permitted only if the current year acreage of fruits and vegetables for other than green manure, haying, or grazing, is equal to or less than the farm's history for the last year or the 3 years preceding the current year. (ii) Planted and considered planted acreage of other nonparticipating crops planted in excess of such crop's CAB will be reduced, if the total planted and considered planted acreage exceeds the cropland for the farm. (7) For program crops for which the acreage report filed in accordance with part 718 of this title reflects zero acreage of the program crop and which are not participating in an acreage reduction, or land diversion program for the crop, CU acreage may be used to receive planted and considered planted credit for the crop. (8) Any acreage devoted to approved nonprogram crops (ANPC), not to exceed 20 percent of a wheat or feed grain CAB, but not rice, ELS cotton, or upland cotton, if the acreage is planted to dry peas (limited to Austrian peas, wrinkled seed, green, yellow, and umatilla) and lentils; (9) Acreage that is an amount equal to the difference between program crop permitted acreage and planted acreage, if the considered planted acreage is devoted to conservation uses, or the production of commodities permitted under Secs. 1413.41 and 1413.42; (10) Acreage that is an amount equal to the difference between program crop permitted acreage and planted acreage, if the considered planted acreage is devoted to the production of commodities as permitted by Sec. 1413.43. Both acreages of double-cropped program crops, oilseeds, and IOC's used on flex acreage will be used for planted and considered planted acreage. (b) With respect to farms owned by the Farmers Home Administration (FmHA), in 1991 and subsequent crop years, an acreage equal to the CAB established for the farm in accordance with Sec. 1413.24. (c) The sum of the planted and considered planted acreage of corn and grain sorghum for each crop year shall be prorated to corn and grain sorghum based on the ratio of the CAB for the individual crop of corn or grain sorghum, as applicable, to the sum of the CAB's for corn and grain sorghum established for each crop year. Subpart D--Farm Program Yields Sec. 1413.15 Farm program payment yields. (a) The bushel or pound per acre farm program payment yield for program crops for the 1994 through 1997 crop years shall be the 1990 farm program payment yield established for the crop for the farm. (b) If the 1990 farm program payment yield established for a crop for a farm was less than 90 percent of the 1985 farm program payment yield for such crop, the deficiency payments for the crop shall be increased by the amount necessary to provide the same total return to producers as if the payment yield had not been reduced more than 10 percent below the 1985 program payment yield. (c) If no farm program payment yield for a crop was established for the 1990 crop year, the county committee may assign a yield for any such year based upon the farm program payment yields for such crops for at least 3 similar farms in the county or other surrounding area with similar yield capability, including land and cultural practices, not including irrigation practices for feed grains and wheat. Sec. 1413.16 Establishing yields for soybeans and minor oilseeds. (a) State ASC Committees shall establish yields for soybeans and minor oilseeds. Such yields shall be used for: (1) Calculating failure to fully comply reductions in accordance with part 791 of this title; and (2) Price support purposes, in accordance with part 1421 of this chapter. (b) State committees shall calculate soybean and minor oilseed yields as follows: (1) Such yield shall be based on the county yield determined by the National Agricultural Statistics Service (NASS) for the preceding 5 crop years; (2) The highest and lowest yield in such 5-year period shall be excluded; and (3) The remaining 3 crop year yields shall be averaged. (c) If a county yield is not available from NASS for the 5 preceding years for a crop of soybeans or minor oilseeds, State committees shall calculate the yields using the following data: (1) State or area yields determined by NASS for the 5 preceding crop years, calculated as provided in paragraphs (a)(1) through (3) of this section. (2) If neither State or area yields for the 5 preceding years are available from NASS, yields from FmHA for such years. (3) If such yields are not available from FmHA, data for such yields from other government entities, such as Extension Service (ES). (4) If no yield information is available from the sources listed in paragraphs (c) (1) through (3) of this section, obtain yields from other available sources. Sec. 1413.17 Historical weighted yields (HWY). If separate irrigated and nonirrigated farm crop program payment yields were established for the 1990 crop on a farm, the program payment yield for such crop for the 1994 through 1997 crop years shall be a HWY that is determined by: (a) Multiplying the smaller of the effective irrigated acreage maximum (IAM) determined according to Sec. 1413.18 or the CAB times the 1990 irrigated farm program payment yield for the crop; (b) Subtracting the IAM from the current year CAB and multiplying the result, not less than zero, times the 1990 nonirrigated farm program payment yield for such crop; and (c) Totaling the results of subparagraphs (a) and (b) of this section and dividing by the current year effective CAB. If the result is zero, the HWY yield is the 1990 nonirrigated program payment yield for the crop. Sec. 1413.18 Irrigated acreage maximum (IAM) for determining HWY's. (a) General. The farm IAM represents the maximum acreage for which deficiency payments using the irrigated payment yield will be computed. Except as otherwise provided in this section, the IAM for the farm shall not be changed for the 1994 through 1997 crop years. (b) Calculation. The calculated farm IAM is the sum of the crop IAM's calculated as follows: (1) Base period. The calculated crop IAM shall be computed, at the producer's option, on the basis of either the sum of the 1988, 1989, or 1990 irrigated planted and CU for payment acreages on the farm or the result of the 1991 CAB multiplied by the result of dividing the 1988, 1989, or 1990 irrigated planted and CU for payment acreages by the sum of the irrigated and nonirrigated planted and CU for payment acreages for the same year. (2) Base period for rotation farms. If 1 or more crops are produced on a farm in a 2-year rotation, the producer has the option of using the 1991 CAB and the 1990, 1989, and 1987 years or the 1992 projected CAB and the years 1990, 1988, and 1986 for the computations explained above. If 1 or more crops are produced on a farm in a 3-year rotation, the producer has the option of using the 1991 CAB and the 1990, 1988, and 1985 years or 1992 projected CAB and the years 1990, 1989, and 1986 years or 1993 projected CAB and the years 1990, 1987, and 1984 years for the computations explained above. (3) Calculations for farms enrolled in the CRP. Appropriate adjustments in the IAM calculation shall be made to reflect the amount of irrigated cropland enrolled in the CRP and the amount of reduction in CAB required by the CRP contract. (4) Calculations for FmHA inventory farms. If a farm was in FmHA inventory prior to 1991 and had irrigated program crops prior to 1988, the county committee may approve adjustments to the farm IAM upon request from FmHA, operator, or owner. IAM calculations shall be based on substituting the most recent years the farm was not in FmHA inventory for the years the farm was in inventory. (c) Allocation of IAM's to crops. If a farm has more than 1 irrigated crop, and the effective IAM for the crop exceeds the effective CAB for the crop, the operator and owners have the option to reallocate the amount of the excess, provided that the receiving crop IAM does not exceed the effective CAB. Form CCC-507A, Agreement for Reallocation of Farm Irrigated Acreage Maximum, must be signed by both the operator and owners of the farm before the reallocation can be completed. The deadline for filing form CCC-507A is the same as for form CCC-477, Intention to Participate in the 1994 Price Support and Production Adjustment Programs. The reallocation is final for the year and becomes the following year crop IAM. (d) Appeals of IAM's. The IAM for a farm may be appealed in accordance with Sec. 1413.6 when it is first established for the farm, if the farm had an irrigated farm program payment yield for a crop established for 1990. The farm IAM established for 1994 and later years cannot be increased by appeal, except to correct errors in calculation or transferring data. The crop IAM established for 1994 and later years, which includes the allocation of farm IAM, can be appealed if the CCC-507A was not properly executed. (e) Effects of terminating CRP contracts. When a CRP contract for a farm expires or is otherwise terminated, the original IAM shall be restored by multiplying the difference between the original IAM and effective IAM by the result of dividing the total cropland that is being released from CRP by the total cropland that was originally in CRP. Sec. 1413.19 Submitting production evidence. (a)(1) Producers shall submit reports of production evidence in accordance with this paragraph for crops of wheat, feed grains, upland cotton, and rice enrolled in a production adjustment program. Production evidence for program crops may be accepted by county committees at any time throughout the crop year. Producer certification shall not be accepted as proof of production. (2) Certification of such production evidence shall be on form ASCS-658, Record of Production and Yield, for feed grains, rice, soybeans, and wheat. Production evidence for upland cotton shall be certified on either form ASCS-658-1, Certification of Deliveries to Handlers, or Form ASCS-503, Identification of Cotton Production, at the option of the county Committee. Producers who have an interest in program crops on more than one farm shall submit production evidence for all farms. (3) County committees shall determine whether the production evidence submitted includes production from any other acreage for each year the evidence has been provided by the producer for the crop. (4) Producers may have actual crop yields calculated for program crops and soybeans by paying a service fee of $15 for each crop on a farm and for each crop of the same commodity which is the subject of a different cropping practice. (b)(1) When production has been disposed of through commercial channels, the county committee may require the operator or other producers to furnish documentary evidence in order to verify the information provided on the report. Acceptable evidence may include such items as the original or a copy of: (i) Commercial receipts, (ii) Gin records, (iii) CCC loan documents, (iv) Farm-stored loan documents, if the quantity of the grain has been determined by measurement, (v) Evidence from harvested or appraised acreage, approved for FCIC or multiple-peril crop insurance loss adjustment settlement, (vi) Settlement sheets, (vii) Warehouse ledger sheets, (viii) Elevator receipts or load summaries, supported by other evidence showing disposition, such as sales documents. (2) Such production evidence must show: (i) Producer's name, (ii) Commodity, (iii) Buyer's or storer's name, and (iv) The date of the transaction. (3) Production evidence shall be reviewed by the county committee for moisture content and applicable dockage, according to part 1421 of this title. (c)(1) Farm-stored production shall be measured at the expense of the producer. Scale tickets or weight slips may be accepted for farm- stored production evidence instead of the measured quantity, if such scale tickets or weight slips show: (i) The farm number, (ii) The commodity being stored, (iii) The date the commodity was weighed, and (iv) The signature or initials of the weigh person, and company name, if available. (2) The county committee shall determine that measurements indicating the weighed quantity of the commodity in the bin is reasonable compared to the measured quantity of such commodity. (d) Subject to the county committee's approval, a producer may certify that a quantity of a commodity was used as seed for personal use if such certification includes: (1) The production amount used for the commodity, (2) The seeding rate for the commodity, and (3) The number of acres that were planted using such commodity. (e) Producers may request to have a crop appraised for production evidence purposes. Such appraisals shall be performed in accordance to 7 CFR Sec. 401.8. The county committee has the option of: (1) Accepting such appraisal's production estimates; or (2) Reducing the appraised yield to reflect yields based on 3 similar farms and recording such appraised yield as an assigned yield, and notifying the producer of the reduction of the yield and the producer's right to appeal such yield. (f)(1) Production that a producer intends to commingle with other production must be supported by acceptable production evidence, which shall be provided by the producer by: (i) Having such production evidence measured, (ii) Having the current year's production appraised, and (iii) Establishing each producer's shares. (2) The county committee may also verify the evidence submitted by the producer with the warehouse, gin, or other entity which received production. If the evidence is not furnished or the information provided on the report cannot be verified, the county committee has the option to: (i) Disapprove the report of production; or (ii) Require additional evidence to be provided. (g) If production evidence is found to be unacceptable, false, or incorrect, the county committee shall make all determinations, including determinations as to whether the producer acted in good faith or took an action defeating the purpose of the program, as specified in accordance with part 791 of this title. If the county committee determines the producer did not act in good faith or took action defeating the purpose of the program, the actual yield shall be considered zero. If the county committee determines the producer acted in good faith, a yield shall be assigned for the crop year based on yields established for 3 similar farms in the county. Sec. 1413.20 Reducing yields. (a) For the purpose of determining the amount of any deficiency payment as provided in Sec. 1413.104 or the amount of any disaster payment as provided in Secs. 1413.122 and 1413.123, the farm program payment yield for a crop for a farm shall be temporarily reduced for a farm for the applicable crop year when the county committee determines that the producer planted or maintained the acreage of the crop in an unworkmanlike manner such that, under normal conditions, it would not produce a yield comparable to the established yield for the crop for the farm. (b) The following farming practices will not be considered as unworkmanlike unless the county committee determines that the actions are not an acceptable management practice for the crop and area: (1) Continuous cropping when the yield for the crop was established based on the crop normally being planted on summer-fallow acreage on the farm; (2) Cultural practices normal to the area or introduced by Extension Service or Soil Conservation Service (SCS) to improve conservation; (3) Double cropping 2 crops that are normally double cropped in the area; (4) Changes in irrigation practices, except for rice; (5) Minimum till and no till practices according to practices customary for the area; and (6) Introduction of new farm equipment into the area that was manufactured or built by an entity that normally builds farm equipment. (c) The county ASC committee shall: (1) Review the newly determined yield; (2) Adjust the established yield, if the new yield is less than 90 percent of the current established yield for the crop; and (3) Consider adjusting the current established yield for the crop if both of the following apply: (i) The new determined yield is 90 percent or more of the current established yield for the crop; and (ii) The conditions initiating the reduced yield justify such adjustment. (d) Producers on a farm who have the yield for a crop temporarily reduced may file a request for reconsideration of such reduced yield. Production evidence that indicates that the actual yield exceeds the temporarily reduced yield must be provided by the producer. (e) If such production evidence indicates that the actual yield justifies an increase in the temporarily reduced yield, such increased yield may not exceed the program payment yield established for the crop for a farm before the temporary reduction, irrespective of such actual yield. (f) If a temporary yield is increased, such increase must be approved by a representative of the State committee. (g) With respect to farms with repeat cropping, the total plantings of the crop shall be considered as the crop acreage. Temporary yield reductions may be made by the county committee with respect to the acreage of the second planting if the yield originally established for the farm was based on a history of a single planting. (h) If a producer plants either corn or grain sorghum on the permitted acreage of either corn or grain sorghum, respectively, and the county committee determines that the crop planted was cared for in an unworkmanlike manner, and the other crop was earning payments; (1) A percentage of the reduced production of the crop cared for in an unworkmanlike manner shall be determined, and the yield for the crop earning deficiency payments shall be reduced by the determined percentage. (2) The producer may submit to the county committee actual production evidence for approval to increase such that was reduced yield for the crop. Subpart E--Crop Acreage Bases Sec. 1413.24 Crop acreage bases. (a) A CAB shall be established for a farm for each year for barley, corn, grain sorghum, oats, rice, upland cotton, ELS cotton, and wheat. With respect to the 1994 and 1995 crops of corn and grain sorghum, the permitted acreages of corn and grain sorghum for a farm shall be combined. Separate corn and grain sorghum crop acreage bases shall be calculated for the purpose of making deficiency payments in accordance with Sec. 1413.104, and for planted and considered planted credit, in accordance with Sec. 1413.11. Producers may plant any combination of corn and grain sorghum on the total of the combined permitted acreages for such crops. (b) Except as provided in paragraphs (d) and (e) of this section, the CAB for each program crop of wheat, barley, corn, grain sorghum, and oats, for the 1991 and subsequent crop years shall be the number of acres that is equal to the average of the acreage planted and considered planted to the program crop for harvest on the farm in each of the 5 crop years preceding the crop year. (c) For upland cotton and rice, except as provided in paragraphs (d) and (e) of this section, the CAB shall be equal to the average of the acreages planted and considered planted to such crop for harvest on the farm in each of the 3 crop years preceding such crop year. (d) If the county committee determines that a crop is grown on a farm in a clearly established crop-rotation pattern for 2 or more years, the acreage base established for such crop will be determined by using the average of the planted and considered planted acreages for the 3 immediately preceding crop years in the rotation cycle that corresponds to the current year. (e) The sum of the CAB's for a farm for a crop year shall not exceed the cropland for the farm, except to the extent that such excess is due to an established practice of doublecropping on the farm, according to paragraph (f) of this section. (f) Acreages on a farm shall be considered to be double cropped if in the same crop year on the same acreage any of the following apply: (1) Two different crops are harvested, or if not harvested, received failed or prevented planted acreage credit; (2) The first crop was approved as prevented planted or failed acres and the second crop is not considered ghost acres, in accordance with Sec. 1413.121; or (3) Two different crops are planted such that: (i) Small grains must reach the hard dough stage on or before the final disposition date in accordance with part 718 of this title; and (ii) Other crops must reach maturity. (g) The planting flexibility provisions in Sec. 1413.43 allow nonprogram crops to be planted instead of program crops. Therefore, producers who have a history of double cropping program crops may plant nonprogram crop acreage as a double crop without losing double cropping history. (h)(1) Nonprogram crop acreage following program crop acreage is eligible to receive double cropped planting credit if the farm has a history of a program crop following a program crop in 3 of the previous 5 years. Such acreage credited for double crop history purposes is limited to the smaller of the following: (i) Nonprogram crop acreage considered double cropped; or (ii) Nonprogram crop acreage credited to planted and considered planted as flexible acreage, approved nonprogram crop, or other nonprogram crop. (2) Program crop acreage, regardless of whether such acreage is the first or second crop planted, shall be credited as a program crop for planted and considered planted purposes, according to Sec. 1413.9. Sec. 1413.25 Participation in Conservation Reserve Program. (a) Whenever the owner or operator of a farm signs a contract to participate in the CRP in accordance with part 1410 of this title: (1) The total of the CAB's, acreage allotments, and marketing quotas established for the farm for the first crop year for which such contract is applicable shall be reduced in the same proportion as the ratio of the cropland taken out of production under the conservation reserve contract to the total cropland on the farm. If acreage bases, acreage allotments, and marketing quotas were established for more than one crop, the owner or operator shall determine which acreage bases, acreage allotments, or marketing quotas shall be reduced to achieve the total reduction required. (2) The CAB's established for the farm for each succeeding crop year for which the conservation reserve contract is in effect shall be: (i) Computed in accordance with Sec. 1413.24; and (ii) Reduced in accordance with part 1410 of this title. (3) The amount of the reduction made in accordance with paragraphs (a) (1) and (2) of this section shall be considered as planted to the applicable crop for the purpose of establishing future CAB's. (4) If there is an agreement in effect between CCC and the producers with respect to the annual program for one or more of the crops for which the acreage base is reduced in accordance with paragraph (a)(1) of this section, the operator and producers shall have the option of: (i) Complying with the agreement using the acreage base for the crop after such reduction is determined; or (ii) Canceling such agreement without liability. (b) After the end of the period of a conservation reserve contract, the CAB's for the next crop year shall be computed in accordance with Sec. 1413.24. Sec. 1413.26 Adjusting CAB's. (a)(1) A one-time forfeiture of all or a portion of a farm's CAB shall be allowed at the request of the owner and operator if the request for the permanent base reduction is filed not later than the end of the ARP signup period. (2) With respect to farms on which a base forfeiture is requested and approved, the planted and considered planted history for each of the previous years which were used to establish the CAB shall be reduced by the same percentage that the base was reduced. (b)(1) Producers may request such permanent reduction because: (i) ACR is calculated on the CAB and the entire maximum permitted acreage will not be planted or credited with payment acres; (ii) The historical weighted yield can be increased by decreasing such CAB if both irrigated and nonirrigated yields are present for such crop; or (iii) The CAB exceeds the cropland and the producer prefers a permanent reduction instead of a temporary reduction. (2) The crop involved in the reduction does not have to be participating in the ARP. (c)(1) The operator of a farm may request that the acreage base for a crop of a commodity produced on a farm be established in accordance with either Sec. 1413.24(b) or (d) for wheat and feed grains and Sec. 1413.24(c) or (d) for upland cotton and rice. The sum of the CAB's in the rotation cycle after adjustment cannot exceed the sum of the CAB in the cycle before adjustment. The county or State committee may approve an increase in the acreage base established for such crop in future crop years. (2) If the sum of CAB's, plus double cropping history, exceeds the cropland, the operator will be given the opportunity to reduce one or more CAB's. If the operator fails to make such a reduction, such a reduction shall be made by the county committee. Producers must designate, in writing, the CAB's to be reduced before any current year participation in the ARP, or CRP is requested, reconstitution to the farm is requested, or crop acreage report is filed according to part 718 of this title. Producers shall not reduce the CAB below the amount of the CAB that is designated for the CRP according to part 704 of this title, and the CAB's shall not be reduced below the cropland acreage. (d)(1) For the 1994 through 1997 crops of upland cotton, and the 1994 and 1995 crops of rice, producers may increase individual CAB's on the farm above the levels that would otherwise be established under Sec. 1413.24 in order to restore the total of the upland cotton CAB's on the farm for the 1994 through 1997 crop years, and the 1994 and 1995 total of the rice CAB's on the farm to the same level as the total of CAB's on the farm for the 1990 crop year, if the county committee determines: (i) A producer of upland cotton or rice was required to reduce one or more individual CAB's on the farm during the 1991 crop year because of CAB's exceeding cropland in order to comply with Sec. 1413.24(e) for establishing bases for upland cotton and rice; and (i) The producers on the farm have participated in the production adjustment program during the 1991 crop year and each subsequent crop year through the current crop year. (2) Producers affected by this method of calculation may request that the county committee adjust the rice and cotton CAB's on a farm to the higher of the preceding 3-year average or the preceding 5-year average. (3) To determine the adjustment, county committees may: (i) Calculate a 5-year average; (ii) Compare the 5-year average to the current 3-year average; (iii) Adjust the CAB to equal the 5-year calculation if the 5-year calculation is higher than the 3-year calculation. (4) Such eligible producers may appeal: (i) The 3-year calculation of upland cotton and rice CAB's each year, (ii) No later than the final date as shown on Form ASCS-476, Notice of Bases and Yields. Sec. 1413.27 Conservation compliance CAB exchanges. CAB's established in accordance with Sec. 1413.24 may be adjusted on a one-time basis by the county committee to increase the high residue CAB's on the farms, with an offsetting decrease in the low residue CAB's on the farm, so that producers can plant in compliance with the approved conservation plan for the farm. Secs. 1413.28-1413.29 [Reserved] Sec. 1413.30 Reconstitution of farms. (a) Farms shall be reconstituted in accordance with part 719 of this title. (b) The yield established by the county committee for any crop on a farm resulting from a combination of farms or portions of farms shall not, except for rounding, exceed the weighted average of the applicable yields established for the component portions of such farm. (c) The yield established by the county committee for any crop on a farm resulting from a division of a farm shall not, except for rounding, exceed the applicable yields established for the parent farm before the division of such farm. (d) In determining the weighted average yields determined in accordance with paragraphs (b) and (c) of this section, the CAB for the farm for the current year shall be used. (e) The actual yield established for ELS cotton for a farm resulting from a combination of farms or portions of farms shall not, except for rounding, exceed the weighted average of the applicable yields established for the component portions of such farm. (f) The weighted average of the actual yield established for ELS cotton for a farm resulting from a division of a farm shall not, except for rounding, exceed the applicable yields established for the parent farm before the division of such farm. (g) The IAM for a crop established in accordance with Sec. 1413.18 for a farm shall be divided among the farms resulting from the division of such farm in proportion to the CAB for such crop established for each resulting farm. However, such division may be modified in order to more fairly reflect the cropping history of the land in such resulting farms in accordance with part 719 of this title. The sum of the IAM's established for any crop for a farm resulting from a division of a farm shall equal, except for rounding, the IAM established for the parent farm before the division of such farm. Sec. 1413.31 Notice of CAB's and yields. (a) The operator and all producers on a farm shall be notified in writing of the CAB's, yields and IAM's that are established for the farm, unless such operator or producer has on file in the county office a request in writing that such operator or producer not be furnished with the notice. (b) Representatives of the county committee may correct errors that resulted in incorrect yields and CAB's on form ASCS-476, Notice of Acreage Bases, Yields, Allotments and/or Quotas, and use the correct entry for program crops enrolled in a production adjustment program for all the current crop year calculations unless the county committee determines, with State committee representative approval, that both of the following situations apply: (1) The error was not so great that the producer should have noticed the error; (2) The producer, relying on the erroneous ASCS-476 notice and acting in good faith: (i) Materially changed plans because of the erroneous form ASCS- 476, and (ii) Was not notified by the county committee in time to comply with the corrected form ASCS-476 without suffering a loss. (c) County committees shall use the correct entry for all purposes for nonparticipating program crops. Subpart F--Extra Long Staple Cotton Crop Acreage Bases and Yields. Sec. 1413.34 ELS cotton counties. (a) ELS cotton means any of the following varieties of cotton which is ginned on a roller gin and is grown in counties specified by CCC: (1) American-Pima; (2) Sea Island; (3) Sealand; (4) All other varieties of the Barbadense species of cotton, and any hybrid thereof; and (5) Any other variety of cotton in which one or more of these varieties predominate. (b) (1) An annual review of counties designated as suitable for the production of ELS cotton will be conducted. Counties in which ELS cotton is currently being grown and for which a roller-type gin is available will be designated or redesignated, as appropriate. For 1991- 1995 such counties are: (i) Alabama: Butler and Monroe; (ii) Arizona: Cochise, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, Pima, Pinal, Santa Cruz, Yavapai, and Yuma; (iii) California: Fresno, Imperial, Kern, Kings, Madera, Riverside, and Tulare; (iv) Florida: Alachua, Escambia, Hamilton, Jefferson, Madison, Marion, Santa Rosa, Suwannee, and Union; (v) Georgia: Berrien, Brooks, Cook, Early, and Thomas; (vi) Mississippi: Bolivar, Carroll, Coahoma, DeSoto, Hinds, Holmes, Humphreys, Issaquena, Lafayette, Leflore, Madison, Panola, Quitman, Sharkey, Sunflower, Tallahatchie, Tunica, Warren, Washington, and Yazoo; (vii) New Mexico: Chaves, Dona Ana, Eddy, Hidalgo, Luna, Otero, and Sierra; (viii) Texas: Andrews, Atascosa, Bee, Bexar, Borden, Brewster, Cochran, Culberson, Dawson, Dimmit, El Paso, Frio, Gaines, Hockley, Hudspeth, Jeff Davis, Kinney, La Salle, Loving, Lynn, Medina, Pecos, Presidio, Reeves, Refugio, Terry, Uvalde, Ward, Yoakum, and Zavala. (2) Additional counties may be designated by CCC during the year as deemed appropriate, and a list of these counties will be available in State and county ASCS offices. Sec. 1413.35 ELS cotton CAB's. The CAB established for a crop of ELS cotton on a farm shall be the average of the planted and considered planted acreages, according to Secs. 1413.10 and 1413.11, for ELS cotton for the 3 years immediately preceding the year prior to the current year. A county must have an ELS cotton designation before ELS cotton CAB's can be established. Sec. 1413.36 ELS cotton crop program payment yields. (a) For ELS cotton, the crop program payment yield in pounds per acre for the current year shall be the average of the actual yields per harvested acre for the farm for the 3 preceding years, adjusted as follows: (b)(1) If no acreage of the crop was grown on the farm for a year, a yield for the crop shall be assigned by the county committee for the farm for such year based upon the actual yields for at least 3 similar farms in the county or surrounding area. (2) The county committee may consider an assigned yield for ELS cotton as an actual yield, but may assign a yield for any year only if: (i) Zero acreage was reported; or (ii) Zero acreage was not reported, but evidence indicates that a cotton crop was not planted on the farm for the year involved. (c) If any yield in the 3-year period preceding the current year is affected adversely as the result of a natural disaster or other condition beyond the producer's control, the county committee may temporarily adjust the yield for any such year upward to no more than the simple average of the highest 4 actual yields of the most recent 5 years. (d) A report of ELS cotton production is required to determine the actual yield per harvested acre. The actual yield for ELS cotton shall be computed by dividing the total production by the total acreage harvested for lint, rounded to the nearest pound. Such acreage is the planted acreage, unless a smaller acreage is reported as harvested. If the total of such planted acreage is not harvested by the producer, the actual yield for such acreage shall be zero. (e) If the planted acreage of ELS cotton on the farm is significantly less than the normal planting on the farm and the county committee determines that the reduction in planted acreage caused the ELS cotton yield on the farm to be unreasonably high, then the county committee may reduce the yield for the crop. Sec. 1413.37 Submitting ELS cotton production evidence. (a) Production evidence for ELS cotton shall be submitted according to Sec. 1413.19 by a final date: (1) Established by the State ASC Committee, (2) Which shall be no later than April 1 of the crop year following the current crop year. (b) Production evidence for ELS cotton shall be certified on either form ASCS-658-1, Certification of Deliveries to Handlers, or form ASCS- 503, Identification of Cotton Production, at the option of the county committee. Subpart G--Program Options for Program Crops Sec. 1413.41 0/85/92 provisions for wheat and feed grains. (a) 0/85. If an ARP is in effect for the 1994 and 1995 crops of wheat and feed grains and producers file form CCC-477, Intention to Participate in the Price Support and Production Adjustment Programs, for such a crop with the county ASCS office and such producers devote a portion of the maximum payment acres for wheat and feed grains equal to more than 15 percent of such acreage to conservation uses; such producers shall be eligible to receive deficiency payments on such portion of the maximum payment acres in excess of 15 percent of such acreage devoted to conservation uses at a per bushel rate that will be established by the Secretary, except that the rate may not be established at less than the projected deficiency payment rate. (b) Exceptions to 0/85. (1) In the case of each of the 1994 and 1995 crops of wheat and feed grains, producers on a farm shall be eligible to receive deficiency payments for such crops not to exceed 92 percent of the maximum payment acreage, if an ARP is in effect for the crops, and (i) Producers have been determined to be prevented from planting the crop, or have a reduced yield of a program crop on a farm because of a natural disaster, and such producers elect to designate such prevented planted or reduced yield acreage as CU for payment for such crop and devote more than 8 percent of the wheat or feed grains acreage to CU for payment; or (ii) Producers elect to devote a portion of the maximum payment acres for wheat and feed grains in excess of 8 percent of such maximum payment acres to minor oilseeds and IOC's. (2) If producers elect to devote a portion of the maximum payment acres for wheat and feed grains in excess of 8 percent of the maximum payment acres to a combination of minor oilseeds, IOC's, and CU for payment, a weighted average amount of between 8 percent and 15 percent of the maximum payment acres shall be determined by: (i) Multiplying 92 percent times the minor oilseed and IOC acreage divided by the total of the minor oilseed, IOC, and CU for payment acreage; and (ii) Multiplying 85 percent times the CU for payment acreage divided by the total of the minor oilseed, IOC, and CU for payment acreage. (iii) The weighted average factor determined in paragraphs (b)(2)(i) and (ii) of this section shall be: (A) Multiplied by the maximum payment acres; and (B) Subtracted from the result of the maximum payment acres minus the total of the minor oilseed, IOC, and CU for payment acreage. (3) Producers who have been determined to be prevented from planting the crop, or have reduced yields with respect to a program crop, and designate such acreage as CU for payment in accordance with paragraphs (b)(1)(i) and (ii) of this section, may plant such acreage to eligible minor oilseeds or IOC's. (4) In order to receive deficiency payments with respect to such acreage, producers shall agree to forego eligibility to receive commodity price support loans and purchases under parts 1421 and 1427 of this chapter for the crop of a minor oilseed planted on the maximum payment acres according to paragraph (b)(1)(ii) and (2). (5)(i) All or any portion of the acreage devoted to an IOC, minor oilseed, or other crop according to paragraph (b)(1)(ii) of this section may be subsequently planted during the same crop year to any oilseed, any IOC designated by CCC, or any other crop, except any fruit and vegetable crop (including potatoes and dry edible beans) not designated by CCC as an IOC; or a crop for which no substantial domestic production or market exists. (ii) The planting of soybeans as a subsequently planted crop shall be limited to farms having an established history of double cropping soybeans following any other crop in at least 3 of the preceding 5 years. (iii) Producers shall agree to forego eligibility to receive commodity price support loans and purchases under parts 1421 and 1427 of this chapter for the crop of the subsequently planted crop that is produced on a farm under this section. Sec. 1413.42 50/85/92 program provisions for upland cotton and rice. (a)(1) 50/85. If an ARP is in effect for the 1994 through 1997 crops of upland cotton and the 1994 and 1995 crops of rice and producers file form CCC-477, Intention to Participate in the Price Support and Production Adjustment Programs, with the county ASCS office, and such producers devote a portion of the maximum payment acres for upland cotton and rice equal to more than 15 percent of such acreage to conservation uses: (i) Such portion of the maximum payment acres in excess of 15 percent of such acreage devoted to conservation uses shall be considered to be planted to upland cotton or rice for the purpose of determining the acreage on the farm required to be devoted to conservation uses; and, (ii) Producers shall be eligible for payments with respect to such acreage at a per pound rate that will be established by the Secretary, except that the rate may not be established at less than the projected deficiency payment rate. (2) Producers shall be eligible for payments in accordance with paragraph (a)(1)(ii) of this section, except as provided in paragraph (c) of this section, if the acreage producers plant to upland cotton and rice for harvest, or the sum of the acreage planted for harvest plus the acreage credited as prevented planted under Sec. 1413.121 equals at least 50 percent of the maximum payment acres for the farm. (b) Exceptions to 50/85. (1) In the case of each of the 1994 through 1997 crops of rice and upland cotton, producers on a farm shall be eligible to receive deficiency payments for such crops in accordance with paragraph (a)(1)(ii) of this section if: (i) An ARP is in effect for rice and upland cotton, and producers plant such crops of upland cotton or rice for harvest; and (ii) The producers have been determined by the county committee to be prevented from planting such crops, or have reduced yields for such crops due to a natural disaster, and devote acreage to conservation uses; or (iii) The producers elect to devote a portion of the maximum payment acres for rice and upland cotton equal to more than 8 percent of the rice or upland cotton acreage to IOC's. (2) Acreages of upland cotton and rice that were subject to reduced yields or were prevented from being planted and are later devoted to CU for payment, in accordance with subparagraph (b)(1) (ii) and (iii) of this section, may be planted to IOC's. (3) In order to receive payments under Sec. 1413.101, producers shall agree to forego eligibility to receive a price support loan under part 1421 of this chapter if such loans are made available by CCC for a crop of sesame or crambe produced on the farm. (c) Quarantine. If a quarantine has been imposed by a State or local agency on the planting of upland cotton or rice for harvest on farms in such State or County Office area, the following rules apply: (1) The State committee may recommend to the Deputy Administrator, State and County Operations, that deficiency payments be made without regard to the 50 percent planting requirement under the provisions of this section to producers in the area who were required to not plant upland cotton and rice. (2) In order for the quarantined acreage to be eligible for deficiency payments, the quarantined acreage must be devoted to eligible conserving use for payment acreage in accordance with Sec. 1413.61. Sec. 1413.43 Planting flexibility. (a) With respect to the 1991 through 1997 crop years, producers may plant for harvest on the established CAB, a commodity, which is other than the program crop for which the CAB was established and receive planted and considered planted credit for such program crop as the result of planting such other crop only if CCC has approved the planting of such other crop as provided in this part. (b) Crops that may be planted for harvest on an established program CAB include the following: (1) Any program crop; (2) Any minor oilseed; (3) Any industrial or other crop, including adzuki, fabin, lupin, and mung beans; (4) Sugarcane, if the producer elects not to receive planted and considered planted credit for sugarcane; (5) Nonparticipating ELS cotton; and (6) Any other crop, except peanuts, tobacco, wild rice, trees, tree crops, nuts, and fruits and vegetables (including fruits and vegetables grown for seed or ornamentals), which include apples, apricots, arugala, artichokes, asparagus, avocados, babaco papayas, bananas, beans (except soybeans, adzuki, faba, and lupin), beets--other than sugar, blackberries, blueberries, bok choy, boysenberries, broccoli, brussel sprouts, cabbage, calabaza, cauliflower, celeriac, celery, chayote, cherimoyas, canary melon, cantaloupes, cardoon, carrots, casaba melon, cassava, cherries, chinese bitter melon, chicory, chinese cabbage, chinese mustard, chinese water chestnuts, chufes, citron, citron melon, coffee, collards, cowpeas, crabapples, cranberries, crenshaw melon, cucumbers, currants, daikon, dasheen, dates, dry edible beans, eggplant, elderberries, endive, escarole, feijoas, figs, gooseberries, grapefruit, grapes, guavas, honeydew melon, huckleberries, jerusalem artichokes, kale, kiwifruit, kohlrabi, kumquats, leeks, lemons, lentils, lettuce, limequats, limes, loganberries, loquats, mandarins, mangos, marionberries, mulberries, murcotts, mustard greens, nectarines, olallieberries, onions, oranges, okra, olives, papaya, paprika, parsnip, passion fruits, peaches, pears, peas, all peppers, persimmon, persian melon, pineapple, plantain, plumcots, plums, pomegranates, potatoes, prunes, pumpkins, quinces, radiochio, radishes, raisins, rapini, raspberries, rhubarb, rutabaga, santa claus melon, salsify, savory, shallots, spinach, squash, strawberries, Swiss chard, sweet corn, sweet potatoes, tangelos, tangerines, tangos, tangors, taniers, taro root, tomatillo, tomatoes, turnips, turnip greens, watercress, watermelons, white sapote, yam, and yu choy, unless the crop has been approved by the county committee to be planted for green manure, haying (which includes silage, haylage, and green chop), or grazing. (c) If producers plant fruits and vegetables on such acreage, according to paragraph (a) of this section, for green manure, haying, or grazing, such producers shall pay a fee to cover the cost of a farm visit, according to part 718 of this title, to verify that the crop has not been harvested. Each farm must be verified to ensure the crop has not been harvested. (d) With regard to paragraphs (b)(1) through (b)(6) of this section, a list of the commodities that may not be planted on the program CAB's shall be available in the county ASCS offices. (e) With regard to the CAB, except as provided in paragraphs (d) and (f) of this section, the quantity of CAB that may be planted to a commodity, other than the specific program crop, may not exceed 25 percent of the contributing crop's CAB. (f) The total of the planted, prevented planted, and failed acreage of all participating crops shall not exceed the total of the permitted acreage for all participating crops on the farm. (g) Nonprogram crops approved for prevented planting or failed acreage credit planted on flex acreage may be credited as flex for participating program crops. (h)(1) Acreages that are flexed according to this section may be double cropped according to Sec. 1413.24(e). State committees will establish beginning and ending flex dates for spring and fall program crops. (i) The beginning date for the fall flex period shall be the normal planting date for fall planted program crops, and the ending date for the fall flex period shall be the normal harvest date for fall planted program crops; (ii) The beginning date for the spring flex period shall be the normal planting date for spring planted crops, and the ending date for the spring flex period shall be the normal harvest date for spring planted program crops. (2) Eligible flex acreage or ACR must be present on the farm from the time the program crop is normally planted until the program crop is normally harvested. (i) The CAB for a crop shall not be increased using the flex provisions of this section. (1) Planted and considered planted credit for all crops on a participating farm will be limited to the CAB for the crop. (2) Crop acreage planted in excess of the permitted acreage for the crop shall be credited only for planted and considered planted credit to the contributing participating program crops from which the additional acreage was flexed. (j) If, on January 1 of any calendar year, it is estimated by CCC that the national average price of soybeans during the subsequent soybean marketing year would be less than 105 percent of the nonrecourse soybean loan level, if soybeans were permitted to be planted on up to 25 percent of the program CAB, then the maximum program CAB that may be planted to soybeans may not exceed 15 percent of such acreage base. (k) Producers of a program crop who are participating in the ARP for that program crop shall be allowed to plant such program crop in excess of the permitted acreage of the crop without losing loan, purchase, and payment eligibility for the crop if: (1) The acreage planted to the program crop on the farm in excess of the permitted acreage does not exceed 25 percent of the CAB's on the farm for other participating program crops; and (2) The producer agrees to a reduction in the permitted acreage for the other program crops produced on the farm by the quantity equal to the overplanting. (l) Producers of an original program crop, who plant for harvest on the established acreage base of such original program crop, another program crop, and who are not participating in an ARP for such other program crop, shall be eligible for loans, purchases, or loan deficiency payments for such other program crop on the same terms and conditions as provided in a production adjustment program established for such other program crop. (m) Producers shall be eligible to receive loans, purchases, or loan deficiency payments in the case of other crops for which CCC has announced the availability of such benefits, if the producers: (1) Plant such other program crop in an amount that does not exceed 25 percent of the CAB established for the original program crop; and (2) Agree to a reduction in the permitted acreage for the original program crop for the crop year. Subpart H--Program Agreement and Enrollment Provisions Sec. 1413.50 Requirements for program participation. (a)(1) With respect to a crop for which an acreage reduction program is announced, eligible producers may enter into a CCC-477, Intention to Participate in the Price Support And Production Adjustment Programs, with CCC by executing and submitting such CCC-477 to the county ASCS office where the records for the farm are maintained not later than a date specified in the announcement of the sign-up period for the acreage reduction and paid land diversion program. Producers may withdraw from a CCC-477 at any time up to the final reporting date for the enrolled crop. (2) For a farm with both corn and grain sorghum CAB's, if the producer participates in the ARP for either corn or grain sorghum, such participation will constitute participation in both crops. (3) For a farm with either a corn CAB or a grain sorghum CAB, if the producer participates in either corn or grain sorghum, such participation will constitute participation in both crops. (b)(1) The producer must be an individual, entity, or joint operation that shares in the risk of producing the program crop produced in the current year, or shares in the proceeds thereof. The county committee shall determine who is an individual, entity, or joint operation in accordance with parts 1497 and 1498 of this chapter. (2) A minor will be eligible to participate in the program only if one of the following conditions exists: (i) The right of majority has been conferred upon the minor by court proceedings; (ii) A guardian has been appointed to manage the minor's property and the applicable documents are signed by the guardian; or (iii) A bond is furnished under which a surety guarantees to protect CCC from any loss incurred for which the minor would be liable had the minor been an adult. (c) The signup period determined and announced in accordance with paragraph (a) of this section may be extended for a producer or for all producers within a designated area under the terms and conditions announced by CCC in the event of the occurrence of a condition which is beyond the control of producers, if CCC determines that such an extension will not affect adversely the administration of the respective program. Sec. 1413.51 Successors in interest. (a) A succession in interest may be permitted to a CCC-477 if there has been a change in the operation of a farm, such as: (1) A sale of the land; (2) A change of operator or producer, including the change in a partnership that is a producer, that increases or decreases the number of partners; (3) A foreclosure, bankruptcy, or involuntary loss of the farm after an advance payment; or (4) A change in producer shares to reflect changes in the shares of the crop that were originally approved by the county committee on the CCC-477. (b) If a change in producers occurs on a farm enrolled in a program in accordance with this part before the end of the ARP signup period, such new producers shall be considered to be successors in interest, if an advance payment has been made to the predecessor, unless such advance payment is refunded to CCC. (c) A succession in interest on the CCC-477 is not permitted if CCC determines that the change results in a violation of the landlord- tenant provisions set forth at Sec. 1413.107, or otherwise defeats the purpose of the program. (d) All producers whose shares of the crop as listed on the CCC-477 have changed from the original CCC-477 are required to sign a revised CCC-477 by the earliest of: (1) The date the crop is actually harvested; (2) December 31 of the current crop year; or (3) 15 days after the county committee was notified of the change in share amounts. (e) When any producer of the crop on the farm (the predecessor) is succeeded by another producer (the successor), any payment which is due and owing shall be divided between the predecessor and successor on such basis as the predecessor, successor, and the county committee agree is fair and equitable. ' (f) Advance payments issued to the predecessor will be attributed to each successor based on: (1) The successor's share of the crop; and (2) The amount of advance payment issued to the predecessor for the crop. (g) The successor shall assume responsibility for refunding any unearned payments issued to the predecessor, if such refunds are required under the CCC-477. (h) If the predecessor and successor fail to agree on a revised CCC-477 and the predecessor: (1) Has become unable to carry out the producer's responsibilities under the CCC-477, CCC may terminate the CCC-477 with respect to the predecessor and enter into a new CCC-477 with the successor; (2) If the predecessor has not become unable to carry out the producer's responsibilities under the CCC-477, the contract may be terminated. (i) In any case in which the amount of any payment due any successor producer has been paid previously to another producer, such payment shall not be paid to the successor unless it is recovered from the predecessor or payment to the successor has been authorized by the Deputy Administrator. If the predecessor refunds an advance program payment, such producer shall not be assessed interest in accordance with part 1403 of this chapter. (j)(1) If payments are reduced on a farm for a predecessor in accordance with part 1497 of this chapter, such payments shall not increase because of a succession in interest. (2) A succession in interest cannot increase the liability of CCC. (k) The total amount of payments that a successor may be entitled to receive under one or more of the annual programs established under the Agricultural Act of 1949, as amended, for wheat, feed grains, upland and ELS cotton, rice and oilseeds may not exceed $50,000 for deficiency and land diversion payments, and $75,000 for marketing loan gains (except honey), loan deficiency payments (except honey), and emergency compensation (increased deficiency) payments, except as provided in paragraph (k) of this section. Sec. 1413.52 Misrepresentation and scheme or device. (a) A producer who is determined by the county committee or the State committee to have erroneously represented any fact affecting a program determination made in accordance with this part shall: (1) Not be entitled to payments under the crop program with respect to which the representation was made, (2) Refund to CCC all payments received by such producer with respect to such farm and such crop program, and (3) Be liable for liquidated damages in accordance with the terms of the CCC-477. (b) With respect to programs conducted in accordance with this part, a producer who is determined by the State committee, or the county committee with the approval of the State committee, to have knowingly: (1) Adopted any scheme or device which tends to defeat the purpose of the program, (2) Made any fraudulent representation, or (3) Misrepresented any fact affecting a program determination shall refund to CCC all payments received by such producer with respect to all farms and shall be liable for liquidated damages in accordance with the CCC-477. Such producer also shall be ineligible to receive program payments for the year in which the scheme or device was adopted. If such action also is determined by CCC to be a scheme or device, a fraudulent representation or a misrepresentation of fact affecting a determination made in accordance with part 1497 of this title, the producer shall also be ineligible for program payments in the succeeding year. Sec. 1413.53 Required acreage reduction. (a)(1) The Secretary will announce: (i) Whether an ARP is in effect for a crop year for a specific crop; (ii) The percentage reduction to be applied to the CAB to determine the amount of required reduction; and (iii) Other requirements of the program for the year. (2) For wheat, feed grains, upland cotton and rice, the operator and each producer agree to devote to approved conservation uses an acreage of eligible land equal to the product of the acreage reduction factor announced by the Secretary, times the CAB. (3) For ELS cotton, the acreage of eligible land devoted to conservation uses shall be determined by multiplying the product obtained by dividing the number of acres required to be withdrawn from the production of ELS cotton, by the number of acres authorized to be planted to ELS cotton under the limitation established by the Secretary, times the number of acres planted to such commodity. (b) Producers of the applicable crop or crops shall: (1) Not knowingly exceed the permitted acreage, which is the acreage base established for the crop minus the sum of the acreage required to be devoted to ACR in accordance with an ARP and any acreage which is required to be devoted to ACR in accordance with a land diversion program, plus any acreage planted in accordance with program provisions specified in Sec. 1413.43; (2) Devote to conservation uses, as prescribed in Secs. 1413.60 through 1413.75, an acreage equal to the acreage determined in paragraphs (a)(2) and (3); and (3) Otherwise comply with all program requirements. Sec. 1413.54 Acreage reduction program provisions. (a) The acreage reduction factor for the wheat, feed grains, upland and ELS cotton and rice programs are: (1)(i) 1991 wheat, 15 percent; (ii) 1992 wheat, 5 percent; (iii) 1993 wheat, 0 percent; and (iv) 1994 wheat, 0 percent. (2)(i) For the 1991 crop: (A) Corn, grain sorghum, and barley, 7.5 percent; and (B) Oats, 0 percent; (ii) For the 1992 crop: (A) Corn, grain sorghum, and barley, 5.0 percent, and (B) Oats, 0 percent; and (iii) For the 1993 crop: (A) Corn, 10 percent; (B) Grain sorghum, 5 percent, (C) Barley and oats, 0 percent; and (iv) For the 1994 crop: corn, grain sorghum, barley, and oats, 0 percent. (3)(i) 1991 upland cotton, 5 percent; (ii) 1992 upland cotton, 10 percent; (iii) 1993 upland cotton, 7.5 percent; and (iv) 1994 upland cotton, 11.0 percent. (4)(i) 1991 rice, 5 percent; (ii) 1992 rice, 10 percent; (iii) 1993 rice, 5 percent; (iv) 1994 rice, 0 percent. (5)(i) 1991 ELS cotton, 5 percent; (ii) 1992 ELS cotton, 5 percent; (iii) 1993 ELS cotton, 20 percent; and (iv) 1994 ELS cotton, 15 percent. (b) Targeted option payments shall not be available with respect to the 1991, 1992, and 1993 crops of wheat, feed grains, upland cotton, and rice. (c)(1) Acreage designated as ACR under the 1991, 1992, and 1993 wheat, feed grain, upland cotton, and rice programs may not be devoted to oilseeds, industrial or experimental crops, to other program crops, to designated crops, or any other crop and must be devoted to approved uses as otherwise provided in this part. (2) Acreage designated as CU for payment acreage under the ``0/92'' provisions of the 1992 through 1995 wheat and feed grains programs as provided in Section 1413.41 may be planted to sunflowers, rapeseed, canola safflower, flaxseed, and mustard seed (``minor oilseeds'') and sesame and crambe. Such acreage may be doublecropped with other minor oilseeds, industrial or experimental crops, and other crops, except for any program crop or any fruit or vegetable crop. Soybeans may be doublecropped if the farm has an established history of doublecropping soybeans after any other crop in at least 3 of the preceding 5 years. (3) Acreage designated as CU for payment acreage under the ``50/ 92'' provisions of the 1992 through 1995 upland cotton and rice programs may be planted to sesame and crambe. (4) Acreage designated as CU for payment acreage under the ``0/92'' and ``50/92'' provisions of the 1992 through 1995 wheat, feed grains, upland cotton, and rice programs as provided in Secs. 1413.41 and 1413.42 may not be planted to industrial, experimental, or other crops except as provided in paragraph (c)(2) of this section. (d) Paid land diversion program payments: (1) For the 1991 crop: (i) Shall not be made available to producers of wheat, (ii) Shall not be made available to producers of feed grains, (iii) Shall not be made available to producers of upland cotton, (iv) Shall not be made available to producers of ELS cotton, and (v) Shall not be made available to producers of rice; and (2) For the 1992 crop: (i) Shall not be made available to producers of wheat, (ii) Shall not be made available to producers of feed grains, (iii) Shall not be made available to producers of upland cotton, (iv) Shall not be made available to producers of ELS cotton, and (v) Shall not be made available to producers of rice; and (3) For the 1993 crop: (i) Shall not be made available to producers of wheat, (ii) Shall not be made available to producers of feed grains, (iii) Shall not be made available to producers of ELS cotton, (iv) Shall not be made available to producers of rice, and (v) Shall not be made available to producers of upland cotton; and (4) For the 1994 crop: (i) Shall not be made available to producers of wheat, (ii) Shall not be made available to producers of feed grains, (iii) Shall not be made available to producers of upland cotton, (iv) Shall not be made available to producers of ELS cotton, and (v) Shall not be made available to producers of rice. (e) With respect to the 1991, 1992, 1993, and 1994 crop years, in order to receive feed grain loans, purchases, and payments in accordance with this part and part 1421 of this title, producers of malting barley must comply with the acreage reduction program requirements of this part. (f) With respect to the 1992 through 1995 crop years, production of black-eyed peas shall be allowed on upland cotton ``50/92'' acreage to the following restrictions: (1) Production of such crop for harvest shall be approved only if State committees have authorized vegetables as a locally approved cover for green manure; (2) Requests for planting black-eyed peas for harvest may be approved by county and State committees. In order for such request to be approved, producers must furnish a contract or similar agreement that specifies: (i) The acreage to be harvested; and (ii) The production shall be donated to a food bank or similar institution. Such agreement shall be signed by a representative of the food bank. In addition such representatives shall certify that the food bank received the commodity by notifying the county ASCS office in writing, and shall also certify that donations of black-eyed peas shall not be disposed of through cash sales. (g) Producers may plant designated minor oilseeds and soybeans on 50 percent of the designated ACR acreage, (1) If such designated crops are planted on ACR acreage, the amount of program deficiency payments that the producer is otherwise entitled to earn shall be reduced for each acre (or portion thereof), that is planted to the designated crop, by an amount equal to the program deficiency payment that would be made with respect to a determined number of acres of the crop. (2) If producers are participating in an ARP for more than one crop, the amount of the payment reduction shall be determined by prorating such reduction based on the acreage of ACR reduced for such program crops. Sec. 1413.55 Land diversion. (a) The Secretary will announce: (1) Whether a land diversion program is in effect for a crop year for a specific crop; (2) The amounts payable to producers, which may be determined by the submission of bids by the producers for the contracts, in such manner as may be prescribed or deemed appropriate. In accepting contract offers, the extent of the diversion to be undertaken by the producers and the productivity of the diverted acreage shall be considered; (3) Whether advance program payments will be available; (4) Whether compliance with the land diversion requirement is required in order for the producer on the farm to be eligible for loans, purchases and payments for the crop; and (5) Other requirements of the program. (b) In order to be eligible for any land diversion payment, producers of the applicable crop or crops shall: (1) Comply with all other program requirements for the crop; (2) Devote to conservation uses, as prescribed in Secs. 1413.60 through 1413.72, an acreage which is equal to the required diverted acreage. (c) The total acreage to be diverted under such agreements in any county or local community shall be limited so as to not adversely affect the economy of the area. Subpart I--Acreage Conservation Reserve and Conserving Use for Payment Provisions Sec. 1413.60 Basic rules for ACR and CU for payment acreage. Except as set forth in Secs. 1413.67 through 1413.75, or as announced by the Secretary, ACR and CU for payment acreage which is designated in accordance with the provisions of Secs. 1413.41, 1413.42, 1413.53 and 1413.54 must: (a) Be eligible land in accordance with Sec. 1413.61; (b) Be devoted to approved cover or practices in accordance with the provisions of Secs. 1413.63, 1413.64 and 1413.65; (c) Not be grazed or harvested, except as provided in Sec. 1413.66; and (d) Be in compliance with the provisions of Sec. 1413.67. Sec. 1413.61 Eligible land for ACR and CU for payment designation. (a) For 1992 and subsequent crop years, land designated as ACR and CU for payment acreage must: (1) Meet the provisions of paragraph (b)(1) of this section, and (2) Either of the provisions of paragraphs (b)(2) or (b)(3) of this section. (b) ACR and CU for payment acreage must be cropland that: (1) Meets the minimum size and width requirements of 5.0 acres and 1.0 chain (66 feet), respectively, except: (i) One area per farm may be designated that is smaller than the requirements to complete the balance of required ACR or CU for payment; (ii) Entire permanent fields may be designated for ACR or CU for payment that are less than 5.0 acres and 1.0 chain; (iii) Contiguous and noncontiguous strips, including end rows, terraces, sod waterways, and filter strips, that are part of an approved conservation plan, which do not meet the minimum size (5.0 acres) and width (1.0 chain, 66 feet) may be designated as ACR or CU for payment if they average at least 33 feet in width; and (iv) Contiguous and noncontiguous strips, including end rows, terraces, sod waterways, and filter strips, that are planted in a perennial cover and average at least 33 feet in width may be designated as ACR or CU for payment. (2) Was planted or approved as prevented from being planted to a small grain, row crop, or other crop planted annually in either 1 of the last 5 years, or any year from 1985 to 1993; or (3) Was cropland designated as ACR or CU for payment in any or all of the previous 5 years, or any year from 1985 to 1993. (4) Cropland that was planted to trees may be designated as ACR, or CU for planted and considered planted credit for the crop year the trees were planted and the two following crop years if such land meets all other eligibility requirements. Sec. 1413.62 Ineligible land for ACR or CU for payment designation. Land designated as ACR or CU for payment acreage may not be land: (a) That does not meet the eligibility requirements of Sec. 1413.61; and (b) That is designated: (1) Under the Water Bank Program in accordance with part 752 of this title; (2) Under the CRP set forth in accordance with parts 704 and 1410 of this title; (3) As ACR acreage for another program crop; (c) For which a deficiency payment is or could be made for the program crop; (d) That is acreage credited to the crop in accordance with Sec. 1413.100; (e) That the producer does not have the authority to use, such as highway, railway, or other right-of-ways, airport buffer strips, or easements prohibiting production of crops; (f) That is a converted wetland, as defined in part 12 of this title, land planted in violation of highly erodible land or wetland provisions, or highly erodible land, as defined in part 12 of this title, that does not have an approved conservation plan being actively applied; (g) That the producer does not own, lease, or sharecrop; (h) That is subject to a restrictive easement which prohibits its use for program crops. (i) That is used as turn rows, end rows, or headlands, unless the land meets all the eligibility requirements in accordance with Sec. 1413.61. (j) That is going out of agricultural production in the current year, unless the county committee determines the land, without the program, would be planted to a program crop for harvest in the current year. (k) That is credited for prevented planted or failed acreage unless the crop is eligible for harvest on ACR or CU for payment acreage. (l) That was flooded or under water any time during the year, unless either of the following applies: (1) before the flooding occurred, the land was planted to a cover crop, crop for harvest, or could have been planted in either the fall or spring to a crop for harvest in the current year; (2) After being flooded, the land could be planted in the current year by the final reporting date for spring-seeded crops. Sec. 1413.63 Required cover crops and practices on ACR. (a)(1) Producers participating in an ARP for a program crop shall plant or maintain an annual or perennial cover on at least 50 percent of the ACR acreage (or more at the producer's option) but not exceeding 5 percent of the CAB established for the crop. (2) This requirement shall not apply to arid areas, including summer-fallow areas, as determined by CCC; (3) If a producer elects to establish a perennial cover; (i) And the cover is capable of improving water quality or wildlife habitat, CCC shall make available cost-share assistance of not more than 25 percent of the approved cost of establishing the cover, on acreage not to exceed 50 percent of the required ACR; (ii) And the producer receives cost-share assistance with respect to the cover, the producer shall agree to maintain the perennial cover except as provided in paragraph (a)(3)(iii) of this section, and designate the acreage as ACR for a minimum of 3 consecutive years if ACR is required for the farm. (iii) If cost share is received in a year, cost-share under the provisions of paragraph (a)(3)(i) of this section is not available on any other acreage on the farm during the maintenance lifespan of the practice, unless the cover failed, or the required perennial cover requirements increase in subsequent years. (iv) And a producer receives cost-share benefits for establishing an approved cover, and the provisions of paragraph (a)(3)(ii) of this section are not met, such cost-share benefits received by the producer shall be refunded to CCC. (4) A reasonable extension of time to establish the required cover may be granted if the county committee determines that the producer: (i) made a good faith effort to meet the deadline for planting such cover; and (ii) was prevented from meeting the deadline for reasons beyond the control of the producer. (5) CCC may permit all or part of the acreage to be planted to any crop for ACR as may be authorized by CCC. Such list of authorized crops, if any, will be available in the county ASCS office. (6) The perennial cover planted on ACR may be destroyed at the end of the third year if a fall-seeded crop is planted on the acreage. (7) Residue from prior crops and clean till acreage is not considered as an eligible cover for meeting the requirements of paragraph (a)(2)(i) of this section. (8) State committees shall establish a final seeding date for cover crops on ACR. (9) The ACR acreage may be seeded in the fall to crops which are of a type that, when seeded in the fall in the county in which the farm is located, normally attain maturity in the next calendar year; (10) Failure to establish a required cover crop shall be considered a maintenance default violation according to part 718 of this title. (b) The ACR acreage may be tilled in the fall for spring planting and left bare only if approved in accordance with Sec. 1413.65. Sec. 1413.64 Nationally approved cover crops and practices for ACR and CU for payment acreages. (a) The following are nationally approved cover crops and practices for ACR and CU for payment acreage: (1) Annual, biennial, or perennial grasses and legumes, including sweet sorghums, sorghum grass crosses, and sudans, excluding soybeans, corn, popcorn, sweet corn, grain sorghum, cotton, fruits, and vegetables. (2) Barley, oats, rice, wheat, and other small grains, including volunteer stands in which one of the following apply: (i) The seeds are planted or volunteered too late to reach the hard dough stage, so that clipping or any other disposal method is not required; (ii) The crop is destroyed before reaching the disposition date according to part 718 of this title; or (iii) The crop will remain standing in the field, according to paragraph (c) of this section. (3) Crop residue from using ``no till'' or ``minimum till'' practices. (b) If a producer elects to leave the crop standing in the field, the following requirements apply: (1) A request to leave the crop standing shall be filed before the crop disposition date in accordance with part 718 of this title: and (2) The producer shall pay a fee for such request, as specified in part 718 of this title. (3) The crop may not be hayed or grazed, even if haying or grazing is approved for ACR and CU for payment. (4) The crop must be destroyed mechanically or by natural deterioration, so no benefit can be derived from the grain. (5) The crop must be destroyed by the date established by the State committee, and such date shall be no earlier than the beginning date for soil preparation for the succeeding year's crop. (6) Destruction of the crop, either mechanically or by natural deterioration, must be sufficient to prevent the crop from being harvested or grazed and must leave sufficient residue and stubble to prevent wind and water erosion. (c) Producers may plant designated minor oilseeds and soybeans on 50 percent of the designated ACR acreage; (1) If such designated crops are planted on ACR acreage, the amount of program deficiency payments that are otherwise entitled to be earned shall be reduced for each acre (or portion thereof) that is planted to the designated crop, by an amount equal to the program deficiency payment that would be made with respect to a determined number of acres of the crop. (2) If producers are participating in an ARP for more than one crop, the amount of the payment reduction shall be determined by prorating such reduction based on the acreage of ACR reduced for such program crops. (d) Acreage designated as ACR under the 1994 wheat, feed grain, upland cotton and rice programs may be planted to IOC's. Sec. 1413.65 Locally approved cover crops and practices for ACR and CU for payment acreage. (a) Cover crops and practices that will protect the ACR and CU for payment acreage from wind and water erosion throughout the calendar year may be approved on a State or local basis as follows: (1) The county committee, in consultation with the district conservationist of the SCS, may recommend the cover crop or practice. (2) State committees shall approve such cover crops or practices after consulting with the State Soil Conservationist of the SCS, or, if applicable, the technical committee, to ensure that the practices shall sufficiently protect the land from wind and water erosion. State committee approval of such cover crops and practices shall include the conditions that the producer must meet in order for approval to be granted. (b)(1) Practices installed in the current year or the two previous years that may be on ACR acreage include: (i) Shrubs planted for any purpose; (ii) Trees, if planted in the current year or two previous years; (iii) Water storage developed for any purpose, including fish or wildlife habitat; (iv) Permanent terraces, sod waterways, and filter strips used to reduce siltation in a stream or ditch, which may be installed at any time. (2) For 1992 through 1995, the practices in subparagraph (b)(1) of this section are eligible for CU for payment acreage if installed in the current year or during the fall of the preceding year. (3) The State committee shall establish and assess a fee as specified in part 718 of this title to cover the cost of a representative's farm visit to verify that the installed practice has been maintained. (c) The cover crops or practices recommended shall not include: (1) The growing of soybeans, and upland and ELS cotton. (2) Fruits and vegetables for uses other than green manure, haying and grazing. (3) The growing of wheat, feed grains, upland cotton, and rice, except such crops that meet the requirements of either paragraph (c) or (d) of this section. (4) Control measures which are more costly to the producer than other similar alternatives normally accepted for the area. (5) Control measures which are inconsistent with erosion control measures normally used on other cropland in the area. (d) Crops of wheat, feed grains, upland cotton, and rice planted as cover on ACR or CU for payment are required to be close sown, unless a producer on a farm who elects to plant such crops: (1) Files a request with the county committee to not close sow the cover; (2) Pays a fee, as specified in part 718 of this title, to cover the cost of a farm visit to verify that such cover is not harvested, hayed, or grazed; and (3) Ensures that the residue of a destroyed close sown program crop, as opposed to regrowth, will not be hayed or grazed after the end of the nonhaying and nongrazing period. (e) Residue and stubble of destroyed program crops may be recommended as locally approved cover, provided that the crop residue, as opposed to regrowth, shall not be grazed after the end of the nongrazing period announced by the county committee in accordance with Sec. 1413.66(a). (f) The State committee shall establish the final seeding date for planting the cover and shall approve, after consulting the SCS State Conservationist regarding whether the crops or practices will sufficiently protect the land from weeds and wind and water erosion, appropriate crops planted or maintained as cover, including, as appropriate, native grasses and legumes or other vegetation. (g) With respect to upland cotton CAB's enrolled in any of the 1994 through 1997 acreage reduction programs, production of black-eyed peas shall be allowed on CU for payment and up to 50 percent of the required ACR, subject to the following restrictions: (1) Production of such a crop for harvest shall be approved only if the State committee has authorized vegetables as a locally approved cover for green manure; (2) Producers furnish a contract or similar agreement that specifies: (i) The acreage to be harvested; and (ii) The production shall be donated to a food bank or similar institution; and (3) Such agreement is signed by a representative of the food bank. In addition such representative shall certify to ASCS in writing: (i) that the food bank received the commodity; and (ii) the commodity has not been, or will not be, disposed of through a cash sale. Sec. 1413.66 Use of ACR and CU for payment acreage. (a) Haying and/or grazing of acreage devoted to conservation uses and designated as ACR and CU for payment shall be allowed, except for a consecutive 5-month period between April 1 and October 31 as established by the State committee. Locally approved covers shall not be hayed or grazed or used as green manure if such cover consists of program crops or mixtures containing program crops. Haying includes silage, forage, haylage, and green chop. (b) Except as provided in paragraphs (a), (c) and (h) of this section, harvesting on ACR and CU for payment acreage is prohibited for all crops: (1) In the current year; and (2) After December 31 of the current year if the crop would normally mature and be harvested in the current year. (c) Harvesting of a crop on ACR and CU for payment acreage may be permitted when: (1) Both of the following rules apply: (i) the crop matured in the preceding year; and (ii) the county committee determines that the crop was not harvested because of adverse weather or other conditions beyond the producer's control, and the harvesting will be completed by the producer as soon as possible. (2) IOC's or designated crops are planted on ACR and CU for payment acreage. (d) ACR or CU for payment acreage that has been seeded with a nurse crop may be clipped, and the clippings removed, if both of the following rules apply: (1) the clippings were destroyed and no value is derived from the clippings; and (2) the producer pays the cost of a farm visit by representatives of the county committee to verify that the clippings were destroyed, and no value was derived from the clippings. (e) Acreage that the producer has swathed before being designated as ACR or CU for payment may be designated as ACR or CU for payment if the producer pays an inspection fee in accordance with part 718 of this title, and representatives of the county committee witness the destruction of the hay production. (f) Removing catfish, crayfish, and other fish for commercial purposes is prohibited during any period during which haying and/or grazing is prohibited in accordance with paragraph (a) of this section. (g)(1) Land that has been converted to water storage uses shall be considered to be devoted to conservation uses and may be designated as ACR if the land had been planted to wheat, feed grains, cotton, rice, or oilseeds in at least 3 of the 5 years immediately preceding the conversion. The land shall be considered to be devoted to conservation uses for the period the land remains in water storage uses, but not to exceed 5 years subsequent to its conversion to water storage uses. (2) The water stored on the land may not be ground water; (3) The farm on which the land is located must have been irrigated with ground water in at least 1 of the last 5 crop years. (4) Land converted to water storage uses may not be devoted to any commercial use, including commercial fish production. (5) The ACR and CU for payment acreage may be used for noncommercial recreation, or temporary location of beehives. Fees may be charged for hunting and fishing. (h) Notwithstanding the provisions of paragraphs (a) and (b) of this section, the Deputy Administrator may authorize, and prescribe conditions under which, on a county by county basis, ACR and CU for payment acreage may be used for haying or grazing, when abnormal weather conditions cause a critical shortage of hay and forage in the county, except that haying and grazing is not allowed with respect to: (1) program crops; (2) mixtures of crops containing program crops, and (3) alfalfa that is or could be irrigated. Sec. 1413.67 Control of erosion, insects, weeds, and rodents on ACR and CU for payment acreage. (a) The farm operator shall use needed control measures in a timely manner to control erosion, insects, weeds, and rodents on the ACR and CU for payment acreage. (b) Control measures for weeds need only be sufficient to prevent the spread of weeds. These measures must be consistent with control practices normally carried out on similar cropland in the area. It is not intended that control practices be more costly to the producer than what is normal for the area. (c) The county committee shall prescribe and require additional control measures upon a determination that those used by the producer are inadequate. When clipping or mowing to control weeds is prescribed, the county committee shall specify a time for clipping or mowing which is compatible with wildlife practices, but such time must be before the time such weeds form seeds. Sec. 1413.68 Orchards. Unless the State committee determines otherwise, the entire area of an orchard or nursery meeting the eligibility requirements specified in Sec. 1413.61 is eligible to be designated as ACR if the trees were planted in the current year or fall of the previous year. Sec. 1413.69 Land going out of agricultural production. If the county committee determines that the designated ACR acreage may be devoted to a nonagricultural use during the current year, the operator must establish that the land, in the absence of the program, would have been planted to a program crop. Sec. 1413.70 Wildlife food plots or habitat. (a) Land devoted to wildlife food plots that meets requirements determined by the State committee, in consultation with wildlife agencies, is eligible to be designated as ACR acreage. Program crops may be grown on such acreage and small grains need not be disposed of by the disposal deadline. However, there must also be compliance with the requirements of Sec. 1413.61. (b) Land which is owned or operated by State or Federal agencies and which is planted to grain for wildlife for the agency is not eligible to be designated as ACR acreage. (c) The State committee, after consultation with local wildlife agencies concerning areas to be planted for wildlife food plots or wildlife habitat on privately owned or operated farms, shall: (1) Determine the recommended mixtures and practices on approved land devoted to soybeans in mixtures, ensuring that the mixture contains less than 30 percent soybeans on the total plant population; (2) Establish standards for the maximum size and location of the wildlife food plots or wildlife habitat; (3) Determine which crops on wildlife food plots may be cut and stacked on the wildlife food plots for use by wildlife in areas that are subject to winter snow conditions that make stacking such wildlife food desirable; and (4) Establish fees to assess producers designating such wildlife food plots or habitat on ACR or CU for payment to cover the cost of a farm visit to verify that the cover is in compliance with program provisions, in accordance with part 718 of this title. Sec. 1413.71 Insufficient ACR acreage. (a) Before the final date for reporting crop acreage as provided in part 718 of this title, producers not having a sufficient amount of ACR to report may destroy crops on an acreage to designate all or part of the destroyed acreage as ACR acreage. The acreage must be eligible land as provided in Sec. 1413.61. The acreage shall be devoted to an approved cover or practice in accordance with the provisions of Secs. 1413.63, 1413.64, and 1413.65 as soon as practicable after destruction of the crop. Destruction of the crop does not nullify any failure to fully comply payment reduction that has already been determined in accordance with part 791 of this title. (b) Producers on a farm who report insufficient ACR because they are unable to destroy program crop acreage according to paragraph (a) of this section, and have more than one participating crop on the farm shall select the crop or crops to be determined in violation of the program provisions. Sec. 1413.72 Destroyed crop acreage. Operators may substitute for the ACR acreage already designated and reported on form ASCS-578, acreages of small grains or row crops that were destroyed. However, with respect to such substitution of acreages, the following conditions are applicable. (a) The operator must: (1) Request the substitution in writing; (2) Document such request on form ASCS-578; (3) Agree that there will be no deficiency payment made with respect to the production from the substituted acreage; (4) Agree that the substituted acreage shall not be used as planted and considered planted acreage for history purposes for such crop, and (5) Agree that such acreage shall not be used for the establishment of future CAB's on the farm. (b) The producer shall: (1) Mechanically destroy the reclassified crop; or (2) File a request at the time of reclassification to let the crop remain standing according to Sec. 1413.64. (c) The producer shall pay the cost of a farm visit by a representative of the county committee, according to part 718 of this title, to verify that the acreage has not been harvested. (d) The land must be determined to be eligible as provided in Sec. 1413.61; and (e) The land must be devoted to an approved cover or practice in accordance with the provisions of Secs. 1413.63, 1413.64, or 1413.65 as soon as practicable after the substitution. (f) The substitution of acreages cannot be used to nullify a payment reduction as a result of the application of the failure to comply fully with provisions of part 791 of this title. Sec. 1413.73 [Reserved] Sec. 1413.74 Reduction in ACR. (a) A producer whose payments under the feed grain, rice, upland and ELS cotton, or wheat programs may be reduced because of the application of the provisions with respect to the payment limitation as specified in accordance with part 1497 of this title may request a downward adjustment in the amount of acreage which is otherwise required to be devoted to conservation uses on the farm. The request shall be in writing and shall be filed with the county committee on form CCC-477A, Request for and Calculation of Reduced Acreage Conservation Reserve Requirement, and by the final reporting date for the crop. If such a producer is sharing in program payments with respect to farms in two or more counties, it shall be the producer's responsibility to furnish information concerning the producer's participation in the other counties to the county committee with which the application for the downward adjustment is filed. (b) Any reduction in ACR acreage required under this section shall be computed by: (1) Estimating the producer's total payments which would be received under the feed grain, rice, upland and ELS cotton, and wheat program on all farms, excluding crops which are enrolled in a program, but with respect to which deficiency payments are not paid, (2) Determining the percentage by which the estimated total payments must be reduced in order to comply with the payment limitation, and (3) Multiplying such percentage by the number of acres in the producer's portion of the ACR acreage which is required for the farm or farms participating in the programs. When both land diversion and ARP's are in effect, the acreage required to be devoted to ACR in accordance with the ARP's shall be reduced to zero before the acreage to be devoted to ACR in accordance with the land diversion acreage is reduced. (c) If the acreage reported on form ASCS-578 in accordance with part 718 of this title causes the projected deficiency payments to change by more than 5 percent, the CCC-477A must be revised. If the actual planted acreage of a crop is less than the acreage used to compute the reduced ACR for the crop because the producer was prevented from planting the crop, the required ACR reduction shall not be recalculated. (d) If the producer is participating in the ARP on two or more farms, the producer may elect to have the reduction in ACR acreages under this program, but not under the land diversion programs, divided among the farms in such proportion as the producer may designate. (e) If producers have interests in farms in more than one county, the county committee where the farm is administratively located shall be responsible for determining the required amount of reduced ACR, based on information provided by other county committees on such producers. The headquarters county committee shall notify other county committees of the amount by which the ACR requirement is reduced for each farm and each crop. If producers have interests in more than one State, the county committee shall contact the other county committees directly, or the applicable State committee if the county committee address is unknown. Sec. 1413.75 Skip rows. The acreage between rows of the crop planted in an established skip row pattern as defined in part 718 of this title is eligible for designation as either ACR or CU for payment if: (a) The skip is at least the larger of 4 normal rows or 150 inches from plant to plant, and (b) The land meets the requirements for eligible land as set forth in Sec. 1413.61, except for the minimum size and width requirements. Subpart J--Payment Provisions Sec. 1413.100 Determination of farm program acreage. (a) As a condition of eligibility for loans, purchases and payments in accordance with the provisions of this part, the operator must timely submit a report of acreage in accordance with part 718 of this title that lists all crops and land uses which are subject to the ARP agreement for all cropland on the farm for the crop year. Except as otherwise provided in this part, all acreage determinations shall be made in accordance with part 718 of this title. (b) The operator shall designate, on the report of acreage filed in accordance with part 718 of this title, the priority order used to credit the acreage of crops designated for planted and considered planted credit and CU on the farm when there is one or more of the crops of wheat, feed grains, upland cotton, and rice. If the operator fails to so designate such acreages to such crops by the final reporting date established for the farm, the county committee shall allocate the acreage of crops designated for planted and considered planted credit and CU to such crops. (c) On a farm, the sum of the acreage of crops designated for planted and considered planted credit and CU credited to the crop shall not exceed the difference between the CAB for the crop for the crop year and the sum of: (1) The acreage of the crop planted for harvest; (2) The acreage which the county committee determines, in accordance with Sec. 1413.121, the producer was prevented from planting to the crop due to a natural disaster or similar condition beyond the producer's control; and (3) The acreage which is designated as ACR for the crop. (d) Separate corn and grain sorghum CAB's shall be calculated for the purpose of making deficiency payments in accordance with Sec. 1413.105, and for planted and considered planted credit. Producers may plant any combination of corn and grain sorghum on the total of the combined permitted acreages for such crops. (e) The sum of the corn and grain sorghum payment acres for each year, as determined in accordance with Sec. 1413.104, shall be prorated to corn and grain sorghum based on the ratio of the maximum payment acreage for the individual crop of corn and grain sorghum, as applicable, to the sum of the maximum payment acreage for corn and grain sorghum established for each crop year. Sec. 1413.101 General payment provisions. (a) The payment of any amount which is due the operator or other producers on a farm shall be made only after the producers are determined to be in full compliance with the CCC-477 and applicable regulations. (b) Except as otherwise provided in this part and in part 791 of this title, no payment shall be made for a farm or to a producer when there is failure to comply fully with the regulations set forth in this part. (c) Subject to the provisions of the maximum payment limitation in accordance with paragraph (d) of this section and the payment limitation regulations found at parts 1497 and 1498 of this chapter, the total earned payment due each eligible producer shall be determined by multiplying the payment acreage times the program crop payment yield, times the payment rate, times the producer's share of the crop. (d)(1) In accordance with section 1001 of the Food Security Act of 1985, as amended, the total amount of certain payments that a ``person'' may receive, in accordance with the programs set forth in this part, may not exceed the limitation of: (i) $50,000 for deficiency and diversion payments; and (ii) Except with respect to honey, $75,000 for marketing loan gains, loan deficiency payments, and emergency compensation payments (increased deficiency payments). (2) The manner in which a ``person'' is determined for these purposes is set forth at parts 1497 and 1498 of this chapter. (e) If a producer declines to accept, or is determined to be ineligible for all or any part of the producer's share of the payment computed for the farm in accordance with the provisions of this section: (1) Such payment or portions thereof shall not become available for any other producer; and (2) The producer who declined payment, or the producer's successor in interest, may request payment no later than December 1 of the year payment is earned. (f) A producer shall refund to CCC any amounts representing payments that exceed the payments determined by CCC to have been earned under the program authorized by this part. A late payment charge may be assessed in accordance with the provisions of part 1403 of this title. Part 1403 of this chapter shall be applicable to all unearned payments. (g) Whenever two or more individuals or entities are considered to be one person in accordance with the maximum payment limitation regulations found at parts 1497 and 1498 of this chapter, the controlled substance regulations found at part 796 of this title, or affiliated persons in accordance with the highly erodible land and wetland conservation regulations found at part 12 of this title: (1) Any payment issued to one such individual or entity in accordance with this part shall be considered a payment to all such individuals and entities; and (2) Each individual or entity shall be jointly and severally liable for refunding the amounts of any unearned payments or overpayments in accordance with paragraph (f) of this section and for paying any liquidated damages applicable under the CCC-477. (h) If a person, as determined under part 1497 of this title, is: (1) A member of a partnership or joint venture that receives payments; and (2) Has received total payments in excess of the payment limitation for the crop year, then the partnership or joint venture and the members thereof shall be jointly and severally liable for the amount of the overpayment. (i) If a producer who signs a CCC-477 is subsequently determined by the county committee to have become deceased, missing, or incompetent, the CCC-477 shall be terminated and any person actions with respect to the producer's interest shall comply with the succession in interest provisions set forth in Sec. 1413.51. Sec. 1413.102 Advance payments. (a) In order to receive an advance deficiency or diversion payment authorized for a crop: (1) The operator and other producers on a farm must: (i) Enter into an agreement with CCC to participate in the ARP and land diversion program, if applicable; and (ii) Request the advance payment during the program enrollment period. (2) The producers on the farm must not have been determined to be out of compliance with any of the requirements of the CCC-477 or the program at the time of payment. (3) Each producer must be in compliance with the program payment limitation provisions set forth at parts 1497 and 1498 of this chapter; the controlled substance provisions at part 796 of this title; and the highly erodible land and wetland conservation provisions at part 12 of this title. (b) Advance deficiency payments will be made for crops as announced by the Secretary and shall be computed using the intended acreages of the crop furnished by the operator during the enrollment period. The announcement will specify the rates, manner, and time of payment. (c)(1) The provisions of Sec. 1413.101 (a) and (b) are applicable to the amounts of any advance diversion or deficiency payments which are not earned by the producer. However, no late payment charge shall be assessed with respect to producers who have otherwise complied with the requirements of the program for the crop but have failed to refund to CCC the amount of the advance deficiency payments before the end of the marketing year for the crop when the final deficiency payment rate determined under Sec. 1413.104(a) is zero or is less than the advance deficiency payment rate. (2) In addition to the provisions of Sec. 1413.101 (a) and (b), interest shall be charged on the amount of the advance payment if a producer obtains an advance deficiency or land diversion payment, or both, for a crop on a farm but does not comply with the requirements for any ARP or land diversion program required for the crop on the farm for the year. Interest shall be computed from the date of issuance of the payment to the earlier of the date such payment is refunded or the date of the first demand letter. The rate of interest shall be the rate of interest in effect for CCC commodity loans on the date of the issuance of the payment. Sec. 1413.103 Established (target) prices. (a) The established prices for the 1991 through 1995 crops and the 1996 and 1997 crops of upland cotton shall be as follows: (1) Barley--$2.36/bu. (2) Corn--$2.75/bu. (3) Upland cotton--$0.729/lb. (4) Grain sorghum--$2.61/bu. (5) Oats--$1.45/bu. (6) Wheat--$4.00/bu. (7) Rice--$0.1071/lb. (8)(i) 1991 ELS cotton--$0.996/lb. (ii) 1992 ELS cotton--$1.058/lb. (iii) 1993 ELS cotton--$1.057/lb. (iv) 1994 ELS cotton--$1.02/lb. (b) ELS cotton target price for the 1995 crop will be established as 120 percent of the loan rate for ELS cotton. Sec. 1413.104 Deficiency payments. (a) The deficiency payment rate for the 1991 through 1995 crops of ELS cotton and the 1991 through 1997 crops of upland cotton shall be the amount by which the established (target) price exceeds the higher of: (1) The national average loan rate established for the crop; or (2) The national weighted average market price received by producers for the crop during: (i) The calendar year that includes the first 5 months of the marketing year for upland cotton; and (ii) The first 8 months of the marketing year for ELS cotton. (b) The deficiency payment for the 1994 and 1995 crops of wheat, feed grains (except as provided for malting barley producers in accordance with Sec. 1413.110), and rice shall be the amount by which the established (target) price exceeds the higher of the: (1) Lesser of: (i) The national weighted average market price received by producers during the marketing year for the crop. (ii) The national weighted average market price received by producers during the first 5 months of the marketing year for the crop (for barley, prices received by producers of barley sold primarily for feed) plus: (A) 10 cents per bushel for wheat; (B) 7 cents per bushel for corn, grain sorghum, barley, and oats; and (C) 2.7 cents per pound for rice. (2) Price support level determined for the crop. For wheat and feed grains, such level shall be that determined before any adjustments. (c) For wheat and feed grains, whenever the Secretary announces a reduction in the price support level for a crop, the deficiency payment rate shall be increased by such amount as is determined necessary to provide the same total return to producers as if the price support level had not been reduced, taking into consideration payments made in accordance with paragraph (b) of this section. In such case, the amount of the deficiency payment rate, also known as emergency compensation payments, shall be the smaller of: (1) The difference between the national average price support level for the crop before any adjustment by the Secretary and the national weighted average market price received by producers during the entire marketing year (for barley, prices received by producers of barley sold primarily for feed), or (2) The difference between the national average price support level before any adjustment and the national average price support level after reduction by the Secretary. (d) The individual farm program payment acreage for wheat, feed grains, upland cotton, and rice shall be the smaller of the maximum payment acres or the acreage planted to the crop on the farm for harvest within the permitted acreage of the crop for the farm. However, if the sum of the acreage of the crop planted for harvest and the optional flex acres planted to other crops is less than the maximum payment acres for the crop, the farm program payment acreage may be increased, in accordance with Secs. 1413.41 and 1413.42. (e) The farm program payment acreage for ELS cotton shall be the acreage planted to the crop for harvest within the permitted acreage of ELS cotton established for the farm. Sec. 1413.105 Timing and calculation of deficiency payments. (a)(1) One hundred percent of the final projected deficiency payment for the crop, as determined in accordance with Sec. 1413.104(b), reduced by the amount of any advance deficiency payment, will be made to producers of barley, oats, and wheat after December 1 of the year in which the crop is normally harvested. Any difference between the final projected deficiency payment and the actual final deficiency payment shall be made after July 1 of the year following the year in which the crop is normally harvested. (2) Deficiency payments determined in accordance with Sec. 1413.104 (a) and (b) will be made to producers of upland cotton and rice after February 1 following the year in which the crop is normally harvested. (3) Seventy-five percent of the final projected deficiency payment for the crop, as determined in accordance with Sec. 1413.104(b), reduced by the amount of any advance deficiency payment, will be made to producers of corn and grain sorghum after March 1 of the year following the year in which the crop is normally harvested. A final deficiency payment for the crop, as determined in accordance with Sec. 1413.104(b) and reduced by the amounts of all previous advance and projected final deficiency payments will be made to producers of corn and grain sorghum after October 1 of the year following the year in which the crop is normally harvested. (4) Deficiency payments determined in accordance with Sec. 1413.104(a) will be made to producers of ELS cotton after May 15 following the year in which the crop is normally harvested. (b) If applicable, the increased deficiency payments for feed grains and wheat calculated in accordance with Sec. 1413.104(c) shall be made as soon as practicable after: (1) July 1 following the year in which the crop is normally harvested for wheat, barley, and oats; and (2) October 1 following the year in which the crop is normally harvested for corn and grain sorghum. (c) If, with respect to each of the 1994 and 1995 crops of wheat, feed grains, and rice, and with respect to each of the 1994 through 1997 crops of upland cotton, 90 percent of the 1985 farm program payment yield exceeds the farm program payment yield for the farm established in accordance with Sec. 1413.15, deficiency payments for such crops for each year shall be determined by multiplying the farm program acreage by 90 percent of the 1985 farm program payment yield by the deficiency payment rate. Such payments shall be made at the same time and in the same manner as deficiency payments are made to the producer. (d)(1) For the 1994 crops of wheat, feed grains, upland cotton, and rice, if an acreage reduction limitation program is in effect, CCC shall make available 50 percent of the projected final deficiency payments made in accordance with Sec. 1413.104 as an advance payment to producers in the manner determined and announced by CCC. (2) For the 1995 crops of wheat, feed grains, and rice, and the 1995 through 1997 crops of upland cotton, if an acreage reduction limitation program is in effect, CCC shall make available 40 percent of the projected final deficiency payments, made in accordance with Sec. 1413.104, as an advance payment to producers in the manner determined and announced by CCC. Sec. 1413.106 Division of payments. (a) Each producer on a farm shall be given the opportunity to participate in the program for a crop and receive program benefits in proportion to such producer's interest in the program crop on the farm or the interest such producer would have had if the crop had been produced. The name of all such producers shall be listed on the CCC- 477. Federal agencies can earn no program payments, but any shares to which such agencies would otherwise be entitled, shall also be shown on the CCC-477 as though the agencies were earning them. The sum of the percentage shares of the program payment shall equal 100 percent. (b)(1) For the 1994 and subsequent years, each producer's share of the farm program payment for a crop shall be based on the following: (i) Producers are required to provide a copy of their written lease to the county committee, and, in the absence of a written lease, must provide to the county committee the terms and conditions of any oral agreement or lease. (ii) A lease will be considered a cash lease if the lessor receives only a sum certain cash payment, or a fixed quantity of the crop (for example, cash, pounds, or bushels per acre), according to paragraph (b)(3) of this section. (iii) If a lease contains provisions that require the payment of rent on the basis of the amount of crop produced or the proceeds derived from the crop, or the interest such producer would have had if the crop had been produced, such agreement shall be considered to be share lease. (iv) If a lease provides for both a cash payment and/or a share of the crop or production, the county committee will determine a normal cash lease amount by crop for the area. If the guaranteed production or cash lease payment is equal to or exceeds the normal cash lease established by the county committee for the area, then the lease shall be considered to be a cash lease. (v) If the lease is determined to be a cash lease, the landlord is not eligible to receive disaster or deficiency payments in accordance with this part, or price support loans in accordance with part 1421 of this title, on such part of the crop. (vi) If the cash guaranty is less than the normal cash guaranty for the area, the lease shall be determined to be a share lease. (2) Deficiency payments shall be divided by one of the following rules: (i) According to each producer's share of the expected production of the planted program crop or the way the production would have been shared if such crop had been planted; (ii) According to each producer's share of planted crop or the way the crop would have been shared if the crop had been planted; (iii) After considering the share of the program crop acreage planted for harvest and the acreage designated as ACR, or conserving use acreage, according to Sec. 1413.61, designated as the planted program crop; or (iv) According to the share of the program crop payment acreage instead of the shares of the planted program crop. (3) The division of program payments according to paragraph (b)(2) of this section must be fair and equitable to all producers. (4)(i) For hybrid seed corn growers with a contract with a seed corn company, only those operations not unique to the production of hybrid seed corn will be considered when making determinations as to contributions by a seed company that would reduce the grower's share. Items common to normal production that will be considered in determining contributions by the producer are: (A) Land; (B) Equipment; (C) Capital; (D) Active personal labor; (E) Active personal management in cultural practices and production services not unique to hybrid seed corn production; and (F) The risk in growing the crop, including crop insurance, compensation guarantees, and grower incentives for producing sellable corn seed. (ii) Program payments shall be made to a seed corn company only if such company requests payment and is determined to be an eligible producer in accordance with the regulations set forth in this part. (5) Operations or inputs designated as unique to the production of hybrid seed corn shall include, but not be limited to: (i) Providing seed; (ii) Specialized harvesting; (iii) Detasseling; (iv) Roguing; (v) Paying crop insurance premiums; (vi) Providing special pesticides; (vii) Specialized drying; (viii) Application of special pesticides; (ix) Pollination enhancement; and (x) Split planting reimbursement. Sec. 1413.107 Provisions relating to tenants and sharecroppers. (a) Program payments shall not be approved for the current year if it is determined that any of the conditions specified below exist: (1) The landlord or operator has not given the tenants and sharecroppers on the farm an opportunity to participate in the program; (2) The number of tenants and sharecroppers on the farm is reduced by the landlord or operator below the number on the farm in the year before the current year in anticipation of or because of participating in the program, except that this provision shall not apply to the following: (i) A tenant or sharecropper who leaves the farm voluntarily or for some reason other than being forced off the farm by the landlord or operator in anticipation of or because of participating; or (ii) A cash tenant, standing-rent tenant, or fixed-rent tenant unless: (A) Such tenant was living on the farm in the year immediately preceding the current year, or (B) At least 50 percent of such tenant's income was received from farming in the immediately preceding year; (3) There exists between the operator or landlord and any tenant or sharecropper, any lease, contract, agreement, or understanding required or unfairly exacted by the operator or landlord which was entered into in anticipation of participating in the program the effect of which is: (i) To cause the tenant or sharecropper to pay to the landlord or operator any payments earned by the person under the program, (ii) To change the status of any tenant or sharecropper so as to deprive the person of any payments or other right which such person would otherwise have had under the program, (iii) To reduce the size of the tenant's or sharecropper's producer unit, or (iv) To increase the rent to be paid by the tenant or decrease the share of the crop or its proceeds to be received by the sharecropper; (4) The landlord or operator has adopted any other scheme or device for the purpose of depriving any tenant or sharecropper of the payments to which such person would otherwise be entitled under the program. If any of such conditions occur or are discovered after payments have been made, all or any such part of the payments as the State committee may determine shall be refunded to CCC. (b) If a landlord or operator has reduced the number of tenants from the preceding year, the landlord or operator may still participate in the current year's ARP if: (1) The reason for the reduction of tenants or sharecroppers was either: (i) The landlord or operator purchased the farm for the current year; or (ii) The tenant's lease expired, and the tenant has no further rights to the farm; and (2) The county committee determines that the landlord or operator has the necessary means, such as knowledge, equipment, and financing to conduct the farming operation. The county committee shall not consider custom farming as a necessary means to conduct the farming operation. (c) Notwithstanding any other provision of this section, landlords or operators who in the past had tenants or sharecroppers on their land for purposes of producing the program crop and such individuals are not classified as employees subject to the minimum wage provisions under the Fair Labor Standards Act, may pay these individuals on a wage basis and will not be considered as reducing the number of tenants or sharecroppers. (d) County committees shall use information obtained from tenants and sharecroppers to determine that violations have not occurred. Sec. 1413.108 Offsets and assignments. (a) Producer indebtedness and claims. Except as provided in paragraph (b) of this section, any payment or portion thereof due any person shall be allowed without regard to questions of title under State law and without regard to any claim or lien against the crop, or proceeds thereof, in favor of the owner or any other creditor except agencies of the U.S. Government. The regulations governing offsets and withholdings found at part 1403 of this chapter shall be applicable to such payments. (b) Assignments. Any producer entitled to any payment may assign any such payments which are made in cash in accordance with regulations governing assignment of payment found at part 1404 of this chapter. Sec. 1413.109 Payments by commodities and commodity certificates and refunds. (a) Payments under the programs authorized by this part may be made in the form of commodities or commodity certificates in accordance with part 1470 of this chapter. (b) Whenever it is determined in accordance with Sec. 1413.101 that a producer was overpaid or received payments that were not earned, and such payments were in the form of commodities or commodity certificates, the producer shall refund the amount of the overpayment either by returning commodity certificates in an amount equal to the overpayment or by making cash payments to CCC. Sec. 1413.110 Malting barley. (a) Except in counties where the State committee determines, with the concurrence of the Deputy Administrator, that malting barley is produced, an assessment for each of the 1991 through 1995 crop years will be levied on producers of malting barley who are participating in the price support and production adjustment program established for a crop of barley. The final deficiency payment for barley will be reduced by the amount of the assessment. (b) The assessment per bushel will be the smaller of: (1) 5 percent of the: (i) State weighted average market price of malting barley produced on the farm, in those States where average market prices are available from NASS, or (ii) The national average market price in all other States, or (2) The final deficiency payment rate. (c) The assessment will be calculated on the total production with respect to which deficiency payments are to be made unless a producer furnishes acceptable proof in accordance with Sec. 1413.19 that: (1) All production failed or was used for feed purposes, for which the producer will receive the full deficiency payment with no assessment. (2) Part of the production failed or was used for feed purposes, and part of the production was sold for malting purposes, such assessment will be calculated on the production sold for malting purposes. (d) If the producer does not certify to the use of the barley before receiving the final deficiency payment made based on the 5-month average market price and the assessment is deducted, a certification of the use of barley made in accordance with paragraph (c) of this section may be accepted by CCC by the later of: (1) September 1 of the year following the year of production, or (2) 30 days after redemption or forfeiture of barley under CCC loan. (e) If the producer certifies and furnishes acceptable proof in accordance with paragraph (d) of this section, the payment shall be recalculated and a supplemental payment issued when applicable. Subpart K--Prevented Planted and Failed Acreage Credit Sec. 1413.121 Disaster credit. (a)(1) This section applies for prevented planted or failed acreage of a crop if the county committee determines the crop could not be planted or production was not normal because of: (i) Damaging weather including drought, excessive moisture, hail, earthquake, freeze, tornado, hurricane, typhoon, volcano, excessive wind, excessive heat, or a combination thereof: or (ii) Related conditions of insect infestation, plant disease, or other deterioration of a crop, including aflatoxin, that is accelerated or exacerbated naturally because of damaging weather occurring before or during harvest. (2) FCIC established final planting dates, made in accordance with part 400 of this title, will be used to determine prevented planting of a crop and whether the producer was prevented from replanting failed acreage. (b) In order to obtain failed acreage credit or prevented planting credit, the operator must file an application for disaster credit on form ASCS-574, Application for Disaster Credit. For prevented planted credit, the operator shall: (1) File such application with the county committee for all crops affected by a natural disaster condition within 15 calendar days after such disaster occurs; (2) File form ASCS-578, Report of Acreage, according to part 718 of this title; (3) Have attempted to plant the crop for which the prevented planted credit is requested; (4) Not have designated such acreage as ACR, conserving use for payment, or conserving use for planted and considered planted credit except as designated according to Secs. 1413.41 and 1413.42; and (5) Not have later planted an acreage of the same crop in the same program year for which the ASCS-574 is filed. If such acreage of the crop is later planted, the ASCS-574 will be canceled for this planted acreage. (c) County committees shall limit or not limit approved prevented planted acreages of a crop: (1) If the crop is enrolled in an ARP, the prevented planted acreage approved shall not exceed the permitted acreage of the crop, plus available flex acreage from other crops enrolled in an ARP in accordance with Sec. 1413.43; (2) If the acreage on a farm is enrolled in an ARP but the crop is not enrolled, the prevented planted acreage approved is unlimited; (3) If the acreage on a farm is not enrolled in an ARP, the prevented planted acreage approved is unlimited; (4) If a cover crop is planted on the acreage that was prevented from being planted, or a cover crop is a small grain that was left standing past the disposition date in accordance with Secs. 1413.64 or 1413.65, the county committee shall not approve form ASCS-574. If such cover crop and the crop that was prevented from being planted can normally be planted in a double cropping pattern in the area, in accordance with Sec. 1413.24(e), the county committee may approve form ASCS-574. (d) Prevented planting requests will not be approved unless all of the following provisions apply: (1) Other producers in the area were prevented from planting the same crop or similar crops; (2) All cropland feasible to plant the crop was affected by the disaster; (3) Preliminary efforts made by the producer to plant the crop are evident, such as discing the land, or seed and fertilizer were delivered or arranged for; and (4) The acreage was prevented from being planted because of a disaster rather than a managerial decision. (e) If the county committee cannot approve the ASCS-574 for prevented planting without a representative's farm visit, a late-filed ASCS-574 can be approved only if: (1) The cost of the farm visit to verify the disaster and determine the acreage involved is paid by the operator in accordance with part 718 of this title; (2) The ASCS-574 contains sufficient information to determine that the prevented planting was because of a recognized disaster; and (3) Evidence of the disaster is still apparent on the affected acreage. (f) Producers who have had irrigation water rationed under one of the following conditions are eligible to apply for prevented planting credit: (1) The irrigation water is withheld by a Government entity or water district and the producer is not compensated for such withholding by the entity or district; (2) The irrigation water is withheld by a Government entity or water district, and the producer is compensated for such withholding by the entity or district; (3) The producers use a combination of ground water supplied by a Government entity or water district and their own irrigation wells; and (4) The producers must have been personally notified by the Government entity or water district that such irrigation water supply will be reduced. (g) Producers who do not have their irrigation water rationed, but choose to sell or lease such water to a Government entity or water district, or have their irrigation water reduced because the Army Corps of Engineers released less water from containment dams under its jurisdiction are not eligible to receive prevented planting credit. (h) Producers who apply for prevented planting credit because of water rationing shall supply the county committee with documentation to indicate: (1) The amount of water reduction; and (2) The normal water allocation received by the producer in past years. (i) Producers who meet the eligibility requirements contained in paragraph (f) of this section may be approved to receive prevented planting credit equal to the percentage of water reduction times the permitted acres of the crop or crops. The percent of water reduction shall be the effective percentage of water reduction before the ending planting date for the crop, as determined by the county committee. Producers who use a combination of Government entity, water district, and their own well water will have the percentage reduction determined by the county committee. Only the amount of irrigation water normally supplied by the Government entity or water district will apply when calculating such reduction. (j) Producers who have their water allocation permanently reduced or cut, and who are approved for prevented planting credit, shall receive such prevented planting credit for the affected crops only in the year in which the reduction occurred. Prevented planting credit for reduced irrigation shall not apply for subsequent years. (k) To be eligible for failed acreage credit for a crop, the acreage must have failed by either of the following dates: (1) Before the ending planting date for the crop and the producer was prevented from replanting the crop before the ending planting date for the failed crop; or (2) After the ending planting date established in accordance with part 400 of this title. (l)(1) Producers must apply for failed acreage credit for a crop on form ASCS-574 if the crop has been or will be destroyed before: (i) The disposition date for small grains established in accordance with part 718 of this title, without the grain being harvested for barley, oats, rye or wheat; (ii) The final reporting date for corn and grain sorghum established in accordance with part 718 of this title, without being harvested for feed benefits; (iii) The final reporting date for cotton established in accordance with part 718 of this title, without lint being harvested from cotton; and (iv) The hard dough stage established in accordance with part 718 of this title for rice. (2) Form ASCS-574 must be filed for all crops affected by such disaster condition within 15 calendar days after the disaster occurred. (m) If the crop is destroyed after the dates prescribed in paragraph (o) of this section, such crop meets the definition of a planted crop as provided in Sec. 1413.10, and form ASCS-574 is not required to be approved by the producer to receive planted acreage credit for the crop. (n) Form ASCS-574 must be filed and approved by the county committee if the crop is destroyed after the dates prescribed in paragraph (l) of this section, but before the crop could have been harvested. (o) Form ASCS-574 must be approved by the county committee to be eligible for the failed acreage and prevented planting provisions in accordance with Secs. 1413.41 and 1413.42. (p) If such failed condition occurred before form ASCS-578 was filed for the crop, the producer shall file form ASCS-578 and form ASCS-574 within 15 calendar days after the date the abnormal condition occurred or was obvious, but before physical evidence of the crop is destroyed. (q) If such failed condition occurred after form ASCS-578 was filed for the crop, the producer shall: (1) Revise form ASCS-578 in accordance with part 718 of this chapter before the physical evidence of the crop is destroyed and the affected crop acreage is used for any purpose; and (2) File form ASCS-574 in accordance with paragraph (l) of this section within 15 days after the date the abnormal condition occurred or was obvious. (r) A request for failed acreage credit will not be approved if the county committee determines that the crop was not planted or cared for with an intention and realistic possibility of an economically feasible harvest. (s) If the county committee cannot approve the ASCS-574 without a representative's farm visit, a late-filed ASCS-574 can be approved only if: (1) The cost of the farm visit to verify the disaster and determine the acreage involved is paid by the operator in accordance with part 718 of this title; (2) The ASCS-574 contains sufficient information to determine that the prevented planting was because of a recognized disaster; and (3) Evidence of the disaster is still apparent on the affected acreage. (t) County committees shall limit approved failed acreages of a crop: (1) If the crop is enrolled in an ARP, failed acreages may be approved not to exceed the permitted acreage of the crop, plus other available flex acreage from other participating crops, in accordance with Sec. 1413.106; (2) If the acreage is on a farm enrolled in the ARP and the crop is not enrolled in an ARP, failed acreage of the crop that can be approved is unlimited; and (3) If the acreage is on a farm that is not enrolled in an ARP, the amount of failed acreage of the crop that can be approved is unlimited. (u) If form ASCS-574 is approved for a program crop as the first crop and it was not harvested because of prevented planted or failed conditions in paragraph (a) of this section, and the second crop is not an allotment or poundage quota crop, then the second crop shall not be considered planted for planted and considered planted credit, deficiency payments, or eligible for price support in accordance with parts 1421 and 1427 of this title. The producer may elect to receive planted acreage credit for the second crop, if the second crop is normally planted in a double cropping situation in the area after the first crop is harvested. The later crop acreage shall be considered planted to the second crop and is eligible for planted and considered planted credit, deficiency payments, and price support in accordance with parts 1421 and 1427 of this title. (v)(1) Except for established practices of doublecropping as provided in Sec. 1413.24, any later crop planted on such acreage shall not be considered to be planted for any purpose under the programs authorized by this part and parts 1421 and 1427 of this chapter regardless of the permitted acreage for such crop. (2) If the program crop that failed was planted to a second crop in a skip row pattern, the second crop may be planted in a solid pattern. (3) If skips in skip row cotton have been designated as conserving use for payment acreage in accordance with Sec. 1413.61, the second crop can be planted in a solid pattern. The conserving use for payment acreage must be redesignated as an equal acreage within the field or field subdivision that was reported as skip row cotton in accordance with part 718 of this title. Sec. 1413.122 Eligibility for regular prevented planting and reduced yield payments. (a) Prevented planting payments are authorized to be made to producers of wheat, feed grain, upland cotton, and rice only if such producers comply with the requirements of this part and if prevented planting crop insurance offered in accordance with the Federal Crop Insurance Act is not available with respect to the producer's acreage of such commodity. (b) Reduced yield payments are authorized to be made to producers of wheat, feed grain, upland cotton, and rice only if such producers comply with the requirements of this part and reduced yield crop insurance offered in accordance with the Federal Crop Insurance Act is not available with respect to the producer's acreage of such commodity. (c) Prevented planting payments and reduced yield payments are authorized to be made to producers of wheat, feed grains, upland cotton, and rice only if: (1) Such a producer has entered into a contract with CCC for the applicable crop of the commodity on a farm; (2) The operator and all producers have been determined to be in compliance with such contract; and (3) The operator of the farm submits a form ASCS-574 in accordance with Sec. 1413.121, and also submits a report of production and disposition in accordance with Sec. 1413.19. (d) In addition to the requirements of paragraph (c) of this section, the county committee must also determine that the operator and other producers were prevented from planting an eligible commodity or that the production of an eligible commodity on an acreage resulted in a reduced yield of such commodity because of a drought, flood, other natural disaster, or other condition beyond the control of the operator or other producer. (e) Prevented planting and failed acreage payments shall be computed in accordance with Sec. 1413.123. Sec. 1413.123 Regular disaster payment computations. (a)(1) The prevented planting payment rate is one-third of the established (target) price as provided for in Sec. 1413.103. (2) The acreage eligible for payment equals the smallest of the following: (i) The acreage of the crop intended for harvest, but which could not be planted to the crop or other nonconserving crops because of a drought, flood or other natural disaster, or other condition beyond the producer's control; (ii) The result obtained by subtracting the acreage of the crop planted in the current year from the acreage of the crop that was planted or prevented from being planted in the previous year; (iii) For crops for which an acreage reduction requirement is in effect or on farms participating in a land diversion, the amount by which the permitted acreage of the crop for the current year exceeds the acreage of the crop planted in the current year; or (iv) The acreage for which crop insurance under the Federal Crop Insurance Act is not available. (3) Prevented planting payments for each crop shall be the result of multiplying the acreage eligible for payment times 75 percent of the farm payment yield as provided in Sec. 1413.15 times the prevented planting payment rate. (b)(1) The reduced yield payment rate is one-third of the established (target) price for upland cotton and rice and one-half of the established (target) price for barley, corn, grain sorghum, oats, and wheat as provided in Sec. 1413.103. (2) Reduced yield payments shall be determined for each crop by multiplying the reduced yield payment rate times the acreage of the crop on the farm for which crop insurance under the Federal Crop Insurance Act was not available by 60 percent (75 percent for upland cotton and rice) of the farm program payment yield as provided in Sec. 1413.15, and subtracting the determined production for the eligible acreage therefrom. (3) The production from any acreage shall be determined as follows: (i) The production from acreage which is not harvested shall be appraised in accordance with Sec. 1413.15 and shall be added to the actual production for the purpose of determining eligibility for and the amount of reduced yield prevented planted and failed acreage payments; and (ii) The farm program payment yield shall be used with respect to any acreage for which the production cannot be determined. However, if the county committee determines that the acreage was affected by a natural disaster, the farm program payment yield with respect to such acreage shall be the larger of 60 percent (75 percent for upland cotton and rice) of the farm program payment yield as provided in Sec. 1413.15 or the actual average yield from the harvested acreage of the crop. 22. Part 1414 is revised to read as follows: PART 1414--INTEGRATED FARM MANAGEMENT PROGRAM OPTION Subpart A--General Provisions Sec. 1414.1 General description of the program. 1414.2 Applicability. 1414.3 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. 1414.4 Administration. 1414.5 Performance based upon advice or action of county or State committee. 1414.6 Appeals. 1414.7 Paperwork Reduction Act assigned numbers. 1414.8 Definitions. 1414.9 Acreage enrollment. Subpart B--Agreement and Enrollment Provisions 1414.10 Eligibility. 1414.11 Agreement. 1414.12 Integrated farm management plan. 1414.13 Displacement of tenants or lessees. 1414.14 Successors in interest. 1414.15 Misrepresentation and scheme or device. Subpart C--Bases and Yields 1414.21 Bases and yields. 1414.22 Reconstitution of farms. Subpart D--Resource-Conserving Crop Provisions 1414.27 Resource-conserving crops (RCC's) on acreage conservation reserve (ACR). 1414.28 Resource-conserving crops on payment acres. 1414.29 Resource-conserving crops on other acreage. 1414.30 Traditionally underplanted acreage and reduction of payment acres. Subpart E--Program Payments 1414.36 Payments. 1414.37 Offsets and assignments. Authority: 7 U.S.C. 5822. Subpart A--General Provisions Sec. 1414.1 General description of the program. The regulations in this part set forth the terms and conditions for the Integrated Farm Management Program Option (IFM). The objectives of the IFM are to: (a) Assist producers of agricultural commodities in adopting integrated, multiyear, site-specific farm management plans by reducing farm program barriers to resource stewardship practices and systems; (b) Help producers improve and conserve soil and water on farms by converting land to resource conserving crop (RCC) rotations according to an approved IFM plan; and (c) Not reduce farm program payments for producers participating in IFM as a result of planting a RCC as part of an RCC rotation on program crop payment acres. Sec. 1414.2 Applicability. The regulations in this part are applicable to the integrated Farm Management Program (IFM), for the 1994 and 1995 crops of wheat, feed grains, upland cotton and rice, and set forth the terms and conditions under which producers of these commodities may enter into agreements with the Commodity Credit Corporation (CCC) to qualify for program benefits under the IFM. Sec. 1414.3 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. The regulations set forth in part 12 of this title are applicable to this part. Sec. 1414.4 Administration. (a) The provisions of Sec. 1414.4 of this chapter shall be applicable to this part, except as otherwise provided in this section. (b) The Soil Conservation Service (SCS) shall provide technical assistance to the producer for planning and implementing the resource- conserving crop rotation, erosion control, water management, and water quality components of the plan, and shall provide such other technical assistance in the implementation of the IFM as determined necessary. (c) The Extension Service (ES) shall coordinate the related information and education program concerning implementation of the IFM. Sec. 1414.5 Performance based upon advice or action of county or State Committee. The provisions of part 790 of this title with respect to performance based upon action or advice of any authorized representative of the Secretary shall be applicable to this part. Sec. 1414.6 Appeals. The appeal regulations set forth in part 780 of this title are applicable to this part. Sec. 1414.7 Paperwork Reduction Act assigned numbers. The information collection requirements contained in this part have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35 and an OMB control number has been assigned. Sec. 1414.8 Definitions. The terms defined in part 1413 of this chapter and part 719 of this title shall be applicable to this part except as otherwise provided in this section. Alternative crops means experimental and industrial crops grown in arid and semiarid regions that conserve soil and water, as determined by ASCS. Certain alternative crops are approved for RCC use for 1994. Conservation plan means the document containing the decisions of producers with respect to the location, land use, tillage systems and conservation treatment measures and schedule of implementation. The conservation plan also includes plans which have been established on highly erodible cropland in order to control erosion on such land. ES means the Extension Service, an agency of the United States Department of Agriculture which is generally responsible for coordinating the information and educational programs of the Department. Farming operations and practices includes the integration of crops and crop-plant variety selection, rotation practices, tillage systems, soil conserving and soil building practices, nutrient management strategies, biological control and integrated pest management strategies, livestock production and management systems, animal waste management systems, water and energy conservation measures, and health and safety considerations. Grass means perennial grasses commonly used for haying or grazing. Highly erodible land means land that has an erodibility index of 8 or more. Integrated farm management plan (plan) means a comprehensive, multiyear, site-specific plan that meets the requirements of Sec. 1414.12. Legume means forage legumes (such as alfalfa or clover) or any legume grown for use as forage or green manure, but not including any bean crop from which the seeds are harvested. Resource conserving crop (RCC) means legumes, legume-grass mixtures, legume-small grain mixtures, legume-grass-small grain mixtures, and alternative crops, including such failed crop if the crop was planted in a timely, workmanlike manner and failed because of a natural disaster or other condition beyond the control of the producer. Resource-conserving crop rotation means a crop rotation that includes at least one resource-conserving crop that reduces erosion, maintains or improves soil fertility and tilth, interrupts pest cycles, or conserves water. SCS means the Soil Conservation Service, an agency within the United States Department of Agriculture which is generally responsible for providing technical assistance in matters of soil and water conservation and for administering certain conservation programs of the Department. Small grain shall not include malting barley or wheat, except for wheat interplanted with other small grain crops for nonhuman consumption. Sec. 1414.9 Acreage enrollment. (a) To the extent practicable, the total acreage enrolled in the program shall be limited to no less than 3,000,000 and no more than 5,000,000 acres of cropland during each of the calendar years 1991 through 1997. (b) Because of the limitation in paragraph (a) of this section, acreage will be allocated to States and will be available to participants on a first-come-first-served basis. Subpart B--Agreement and Enrollment Provisions Sec. 1414.10 Eligibility. To be eligible to participate in the IFM, a producer must: (a) Prepare a plan for approval by SCS; (b) Actively apply the terms and conditions of the plan; (c) Devote to a resource-conserving crop, on the average through the life of the agreement, not less than 20 percent of each crop acreage base (CAB) on a farm enrolled under such program; (d) Comply with the terms and conditions of any annual acreage limitation program in effect for each CAB on a farm enrolled in the integrated farm management program; (e) Keep such records as ASCS may require; and (f) Timely submit a report of acreage in accordance with part 718 of this title that lists all crops and land uses which are subject to the agreement for all cropland on the farm for the crop year. Sec. 1414.11 Agreements. (a) A producer shall enter into an agreement with CCC for a period of not less than 3 years nor more than 5 years, which may be renewed upon mutual agreement between CCC and the producer. (b) Eligible producers may offer to enter into an agreement for any or all CAB's on the farm with CCC by executing such agreement and submitting it to the county ASCS office where the records for the farm are maintained not later than a date specified in the announcement of the annual acreage reduction program. (c) The agreement shall provide that producers on the farm must agree to devote to a resource-conserving crop, on the average through the life of the agreement, not less than 20 percent of each CAB on a farm enrolled under such program. (d) The agreement shall provide that producers on the farm shall comply with the terms and conditions of any annual acreage reduction program in effect for each CAB on a farm contracted in IFM. (e) The agreement shall contain such other provisions as CCC determines appropriate to carry out the program established by this part. (f) The agreement shall provide for payment of liquidated damages and termination in the event that the operator or any other producers on the farm fail to comply with their obligations under the agreement. (g) Approved agreements expiring by the crop year 1995 may be renewed once, at the option of the producer, in the crop year that such agreement expires for a period of 3, 4, or 5 years. Such agreements expiring after the 1997-crop year are not renewable. (h) IFM agreements may be canceled by the producer before the end of the acreage reduction program signup period in the year the CCC-406 is signed. (i) If a producer enrolls into the conservation reserve program for the current program year, in accordance with part 1410 of this chapter: (1) The IFM agreement and the acreage reduction program agreement shall be canceled; (2) A new IFM agreement may be filed within 15 calendar days after the date of notification to the producer of the revised CAB's, and (3) Minimum required resource conservation crop acreage shall be recomputed using the effective CAB after the reduction of such CAB for participation in the conservation reserve program. Sec. 1414.12 Integrated farm management plan. (a) In implementing the provisions of this part, ASCS shall: (1) Provide the producer and SCS: (i) CAB information; and (ii) The minimum required resource-conserving crop acreage. (2) Provide the producer: (i) The annual acreage reduction program options relative to program planning decisions, and (ii) Assistance in evaluating acreage reduction program options in conjunction with the plan; (3) Provide SCS a copy of the producer's report of acreage; and (4) Provide SCS a copy of the farm's acreage reduction program agreement and IFM agreement approved by the county committee. (b) In implementing the provisions of this part, ES shall provide: (1) Assistance to the producer, as requested, in developing integrated pest management guidelines if they are part of the plan; (2) Assistance to the producer, as requested, in collecting and analyzing soil tests and in developing nutrient management guidelines if they are part of the plan; (3) Assistance to the producer, as requested, with farm management recordkeeping; and (4) Advice for maximizing the utilization of IFM to their farm operation. (c) In implementing the provisions of this part, SCS shall: (1) Develop the plan with the assistance of the producer; (2) Assemble the various components of the plan; and (3) Provide technical assistance to the producer for planning and implementing the conservation plan, erosion control, water management, and water quality components of the plan; (4) Spot check the plans to assure that the elements contained in the plan have been implemented and meet technical standards; and (5) Assist the producer in revising the plan to address changes in farm operations. (d) The plan will contain elements that address: (1) The specific acreage and CAB's enrolled; (2) Acreage and location of the resource-conserving crop for each year of the agreement; (3) Scheduling practices for the implementation, improvement, and maintenance of the resource-conserving crop rotation; (4) A description of the farming operations and practices to be implemented and the impact of those practices on: (i) Maintenance or enhancement of the overall productivity and profitability of the farm; (ii) Erosion, soil fertility, and soil physical properties; (iii) Water supplies; and (iv) Federal, State, and local requirements designed to protect soil, wetlands, wildlife habitat, groundwater, and surface water; and (5) The coordination of all soil and water resource plans applicable to the enrolled acreage; and (6) Other provisions as provided by this part. Sec. 1414.13 Displacement of tenants or lessees. (a) In addition to the regulations relating to tenants and sharecroppers as set forth in Sec. 1413.107 of this chapter, agreements and plans that will result in the involuntary displacement of farm tenants or lessees by landowners through the removal of substantial portions of the farm from production of a commodity shall not be approved. (b) In the case of any tenant or lessee who has rented or leased the farm (with or without a written option for annual renewal or periodic renewals) for a period of 2 or more of the immediately preceding years, the refusal by a landlord, without reasonable cause other than simply for the purpose of enrollment in the program, to renew such rental or lease shall be considered as an involuntary displacement in the absence of a written consent to such nonrenewal by the tenant or lessee. Sec. 1414.14 Successors in interest. (a) The successor in interest provisions of Sec. 1413.51 of this chapter are applicable to this part, except as otherwise provided in this section. (b) Successors not wanting to continue participation in IFM may terminate the IFM agreement without the assessment of liquidated damages, after the year in which the succession occurs. Sec. 1414.15 Misrepresentation and scheme or device. The misrepresentation and scheme and device provisions set forth in Sec. 1413.52 of this chapter are applicable to this part. Subpart C--Bases and Yields Sec. 1414.21 Bases and yields. CAB's or farm program payment yields shall not be reduced as a result of the planting of a RCC as part of an RCC rotation implemented under the IFM. Sec. 1414.22 Reconstitution of farms. The reconstitution regulations set forth in part 719 of this title are applicable to this part. Subpart D--Resource-Conserving Crop Provisions Sec. 1414.27 Resource-conserving crops (RCC's) on acreage conservation reserve (ACR). (a) Acreage devoted to RCC's as a part of an RCC rotation under this program may also be designated as ACR for the purpose of fulfilling any provisions under any acreage limitation program. The ACR must meet the minimum size and width requirements as set forth in Sec. 1413.61 of this chapter. (b) ACR acreage devoted to perennial cover, on which cost-share assistance for the establishment of the perennial cover has been provided, shall not be credited towards the producer's RCC requirement under an agreement. (c) 50 percent of the RCC acreage designated as ACR may be hayed and grazed any time during the entire year. The remaining acreage designated as ACR may be hayed and grazed, except during the 5-month period during which haying and grazing of ACR is not allowed. The remaining acreage designated as ACR that include a small grain (other than barley, oats, and wheat), may be hayed and grazed after the small grain is harvested. Haying includes silage, forage, haylage, and green chop. (d) Barley, oats, or wheat, as part of an RCC, on ACR may not be harvested in kernel form. (e) Other small grains that are part of an RCC and other RCC's on ACR acreage may be harvested in kernel form. Sec. 1414.28 Resource-conserving crops on payment acres. (a) Program payments with respect to acreage enrolled in the program shall not be paid to a producer if such producer hays or grazes such acreage (excluding acreage designated as ACR) during the 5-month period in which haying and grazing of conserving use acres is not allowed under the provisions of Sec. 1413.66 of this chapter, unless the crop planted on such acreage includes a small grain except barley, oats, and wheat, and the producer harvests the small grain crop in kernel form. (b) Acreage planted to an RCC, which is used to determine the producer's deficiency payment, may be harvested in kernel form. (c) CAB acreage devoted to RCC's as part of a RCC rotation shall be credited as planted and considered planted acreage to the program crop in the priority order as designated by the producer. (d) The COC shall not reduce crop program payment yields as a result of a producer planting an RCC on CAB acreage. Sec. 1413.29 Resource-conserving crops on other acreage. Acreage that is devoted to RCC's and not designated in accordance with Secs. 1414.27 and 1414.28 may be designated as conserving use acres if all eligibility requirements are met in accordance with Sec. 1413.10 of this title, and may be hayed and grazed throughout the crop year but shall not be harvested for grain or seed. Sec. 1414.30 Traditionally underplanted acreage and reduction of payment acres. (a) RCC's planted on program payment acreage shall be eligible for program payments if the planting of such RCC is part of an RCC rotation as specified in the plan. (b)(1)(i) Traditionally underplanted acreage (TUA) means the difference in a particular year between the producer's CAB and: (A) The total of the acreage planted to the program crop, (B) Approved as prevented planted, and, (C) For participating crops, the part of the CAB subject to the required ACR. If the producer is using the provisions set forth in Secs. 1413.41 or 1413.42, traditionally underplanted acreage means 8 or 15 percent, as applicable, of the producer's permitted acreage for such year. The acreage shall never be less than zero, and is used only to the extent that such number exceeds the number of acres resulting from the reduction in payment acres because of the provisions in Sec. 1413.43. RCC's for program payments and RCC's for ACR shall not be considered when calculating traditionally underplanted acreage for farms previously enrolled in the IFM program. RCC's for planted and considered planted credit are considered as traditionally underplanted acreage. (ii) Traditionally underplanted acreage shall be determined by using the average of the calculation in paragraph (b) of this section for the 3 years prior to enrollment in IFM. (2) If a rotation CAB has been established for a crop, and the rotation cycle includes zero acreage in the rotation, the previous three years with CAB's greater than zero shall be used. (c) Producers enrolled in an RCC rotation shall not be eligible to receive payment for the amount that the average number of traditionally underplanted acreage of a crop exceeds the normal flex acreage for such crop, in accordance with Sec. 1413.43 of this chapter. Subpart E--Payment Provisions Sec. 1414.36 Payments. Farm program payments of participants in IFM shall not be reduced as a result of planting a RCC as part of a RCC rotation on payment acres. Payments shall be made in accordance with part 1413 of this title. Sec. 1414.37 Offsets and assignments. The offset and assignment regulations set forth in parts 1403 and 1404 of this chapter are applicable to this part. 23. Part 1415 is added to read as follows: PART 1415--OPTIONS PILOT PROGRAM Subpart A--General Provisions Sec. 1415.1 General description of the program. 1415.2 Administration. 1415.3 Appeals. 1415.4 Performance based upon advice or action of county or State Committee. 1415.5 Compliance with part 12 of this title, highly erodible land and wetland provisions. 1415.6 Paperwork Reduction Act assigned numbers. Subpart B--Definitions Used in This Part 1415.9 Definitions. Subpart C--Agreement and Enrollment Provisions 1415.13 Eligibility. 1415.14 Participation choices. 1415.15 Agreements. Subpart D--Payments and Documentation 1415.20 Premium and incentive payments. 1415.21 Documentation. 1415.22 Brokerage accounts, fees and charges. 1415.23 Other production. 1415.24 Payment limitation. 1415.25 Disaster benefits on enrolled bushels. 1415.26 Successors in interest. 1415.27 Reconstitution of farms. 1415.28 Misrepresentation and scheme or device. 1415.29 Offsets and assignments. Authority: 7 U.S.C. 1421 Note; 15 U.S.C. 714b and 714c. Subpart A--General Provisions Sec. 1415.1 General description of the program. (a) The regulations in this part set forth the terms and conditions for the Options Program. The purpose of the Options Program was to conduct research necessary to: (1) Ascertain whether futures options trading would provide reasonable protection to producers from fluctuations in the value of the commodities they produce; (2) Ascertain whether producers will accept and fully utilize this method of price protection if information is provided to the producers concerning its proper use; and (3) Determine the effect widespread adoption of such futures options trading program would have on commodity prices. (b) The Options Program provides Federal support for commodities by helping producers purchase put options contracts for their crops. Producers participating in the Options Program receive a subsidy to cover the premium for the purchase of put options at strike prices equivalent to the target price or the loan rate for the commodity. (c) Producers who choose to participate in the target price put option agree to forego deficiency payments and loan benefits on the bushels participating in the target price put option program. Producers who choose to participate at the loan rate equivalent strike price agree to forego loan benefits on the bushels enrolled in the loan rate put option. Sec. 1415.2 Administration. (a) The provisions of 1413.4 of this chapter shall be applicable to this part, except as otherwise noted in this section. (b) The Extension Service (ES) shall provide an educational program for the Options Program that will explain: (1) Program parameters; (2) Fundamentals of options; (3) Executing put option purchases; (4) Cash pricing goals and marketing plan; (5) Executing the cash marketing plan; and (6) Offsetting options positions. (c) ES shall, assisted by representatives of county Agricultural Stabilization and Conservation Service (ASCS) offices: (1) Conduct educational meetings for all interested producers in a participating county; (2) Prepare an informational video for producers to view; and (3) Encourage producers to visit the local ES office to obtain information about the Options Program. Sec. 1415.3 Appeals. The appeal regulations set forth in part 780 of this title are applicable to this part. Sec. 1415.4 Performance based upon advice or action of county or State committee. The provisions of part 790 of this title, with respect to performance based upon action or advice of any authorized representative of the Secretary, shall be applicable to this part. Sec. 1415.5 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. The provisions of part 12 of this title, Highly Erodible Land and Wetland Conservation, are applicable to this agreement. Each person who violates such provisions shall refund any premium or incentive payment received for such crops on the farm participating in this program for which such person has an interest. Sec. 1415.6 Paperwork Reduction Act assigned numbers. The information collection requirements contained in this part have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35 and OMB number 0560-0092 has been assigned. Subpart B--Definitions Used in This Part Sec. 1415.9 Definitions. The terms defined in parts 719 of this title and 1413 of this chapter shall be applicable to this part, except as otherwise provided in this section. Agreement means form CCC-300, 1994 Options Program Agreement. CBOT means the Chicago Board of Trade. Exercise means the action taken by the holders of put options if they wish to sell the underlying futures contract. Expiration Date means the last date on which the option may be exercised. Although options expire on a specified date during the month before the specified month, an option on a December futures contract is referred to as a December option, because the exercise on this contract would lead to the creation of a December futures position. KCBOT means the Kansas City Board of Trade. MGE means the Minneapolis Grain Exchange. Premium means the price of an option contract determined by open outcry between buyers and sellers on the trading floor of a commodity exchange. The premium does not include related brokerage commission fees. The premium is the maximum amount of potential loss to which the option buyer may be subject. Premium payment means the reimbursement from Commodity Credit Corporation (CCC) to the producer for the purchase price paid by the producer for a put option, not including brokerage commission fees. Price support equivalent strike price means the strike price that would give producers an expected return on the options market equivalent to an amount they would have received by pledging the commodity for a CCC price support loan. Pricing means providing documentary evidence of the establishment of a monetary value for a commodity through contract or bill of sale. Producer means, as determined in accordance with part 1413 of this chapter, and as used in this agreement, both the ``operator'' and other producers of the crop on the farm. Program means the 1994 Options Pilot Program. Put Option means an option that gives the option buyer the right to sell the underlying futures contract at the strike price on or before the expiration date. Sale means the transfer of title. Strike Price means the price at which the holders of a put option may choose to exercise their right to sell the underlying futures contract. Target price equivalent strike price means the strike price that would give producers an expected return on the options market equivalent to an amount they would receive in deficiency payments and loan benefits. Subpart C--Agreement and Enrollment Provisions Sec. 1415.13 Eligibility. (a)(1) This program is available to producers of: (i) 1994 corn and soybeans in Champaign, Logan, and Shelby Counties in Illinois; (ii) 1994 corn in Carroll, Clinton, and Tippecanoe Counties in Indiana, and Boone, Grundy, and Hardin Counties in Iowa; and (iii) 1994 hard red winter wheat producers in the counties of Ford and Thomas in Kansas, and hard red spring wheat producers in Barnes and Grand Forks counties in North Dakota. (2) Participating farms must be administratively located in one of the selected counties. (b) In order to participate at the target price equivalent strike price level and receive payments, a producer must enroll and comply in the annual ARP for the crop. (c) Such producer shall be determined ``actively engaged'' in farming in accordance with 7 CFR part 1497. (d) In order to participate at the price support equivalent strike price level: (1) For corn and wheat, a producer must enroll and comply in the annual acreage reduction program for the crop; (2) For soybeans, the producer must accurately report and certify the soybean acreage planted in accordance with part 718 of this title. (e) The producer is not required to maintain beneficial interest, as determined in accordance with Sec. 1421.5(c) of this chapter, in the crop after it is priced to maintain the put option. Sec. 1415.14 Participation choices. (a) Producers may participate in the Options Program at levels that are alternatives to either: (1) Deficiency payments and loan program protection, or (2) Loan program protection. (b) Producers who choose the ``deficiency payments'' alternative will enroll production in the Options Program as ``target price bushels'' and agree to forego deficiency payments, price support benefits and loan deficiency payments on any enrolled bushels. (c) Producers who choose the ``loan program protection'' alternative will enroll production in the Options Program as ``price support bushels'' and agree to forego price support benefits and loan deficiency payments on any enrolled bushels. (d) Production can be enrolled at either the target price or price support level, but not both. However, a producer may enroll some production at each level. Sec. 1415.15 Agreements. (a) Eligible producers may enter into a agreement to participate with CCC by executing and submitting form CCC-300, Options Program Agreement, to the county ASCS office where the records for the farm are maintained, not later than a date specified in the announcement of the sign-up period for the Options Program, which will be held in conjunction with signup for the acreage reduction program (ARP). (b) The agreement shall provide that producers on a farm must agree to: (1) (i) Attend not less than one informational session developed by the Cooperative Extension Service of the United States Department of Agriculture (USDA); (ii) For the target price equivalent strike price level for corn, purchase at least one December 1994 CBOT put option on or before June 15, 1994; for wheat in Kansas, purchase at least one September 1994 KCBOT put option on or before May 15, 1994; and for wheat in North Dakota, purchase at least one September 1994 MGE put option on or before May 15, 1994; (iii) Forego deficiency payments and CCC price support loan and loan deficiency benefits with respect to the bushels enrolled in the program; and (iv) Forego participation at the price support equivalent strike price level with respect to such bushels. (2) (i) For price support participation, purchase at least one March 1995 CBOT put option at a strike price equivalent to the county price support price for corn; (ii) For soybeans, purchase at least one March 1995 CBOT put option contract at a strike price equivalent to the county soybean price support price, less a 2 percent loan origination fee; (iii) For wheat producers in Kansas, purchase at least one December 1994 KCBOT put option at a strike price equivalent to the county price support price for wheat; (iv) For wheat producers in North Dakota, purchase at least one December 1994 MGE put option at a strike price equivalent to the county price support for wheat; (v) For corn, soybeans, and wheat, purchase such option(s) any time during the period when the grain is eligible to be pledged for CCC price support loan; (vi) Forego CCC price support loan program and loan deficiency benefits, including the Farmer Owned Reserve, with respect to the bushels enrolled at the price support put option program; and (vii) Forego participation at the target price equivalent strike price level with respect to such bushels. (c) After all participant signatures have been obtained, county committees will approve all eligible CCC-300 agreements by the second Friday after the end of signup. A CCC-300 agreement may be approved, with the concurrence of a State committee representative, after the deadline subject to the following conditions: (1) The CCC-300 was erroneously not approved or was not timely approved by the county committee; (2) The producer signature requirements were met as provided in paragraph (d) of this section, and (3) The individual case and the reasons for late approval are documented in the minutes of the county committee. (d) (1) Participation is on a producer basis. When purchasing put options, producers enrolled in this program may use bushels derived from: (i) Their share of production from a farm; or (ii) Production from multiple farms. (2) However, multiple producers on the same farm may not combine production in order to participate. (e) A producer must have a corn or wheat, respectively, crop acreage base (CAB) in order to participate in the program at the target price strike price level for corn or wheat. However, a producer planting corn on a farm with a grain sorghum CAB, who reports that such acreage is corn for purposes of participating in the 1994 ARP for grain sorghum, may participate in the Options Program at the price support strike price level for corn. (f) With respect to each producer, the maximum quantity eligible for target price put options is limited to the quantity determined by multiplying the participant's 1994 production adjustment payment acreage times the crop payment yield. The quantity eligible for price support put options is limited to the actual production eligible to be pledged as collateral for a CCC price support loan less any amount enrolled at the target price strike price level. Additionally, the total quantity of corn enrolled in the pilot program per participant shall not exceed 10 option contracts (50,000 bushels), and the total quantity of wheat and soybeans enrolled shall not exceed 3 option contracts (15,000 bushels). (g) In order for producers of seed corn who enroll in the Options Program to receive the same benefits of the program as other enrolled producers, such producers shall have the actual quantity considered priced increased by the ratio of the farm payment yield established for the crop for the farm and the actual yield. (h) If a producer enrolled in the program is not in compliance with the provisions of the 1994 production adjustment program for wheat or corn, as applicable, the producer will be required to repay any premiums and incentive payments made, in addition to any interest determined in accordance with the provisions of such program agreement. Subpart D--Payments and Documentation Sec. 1415.20 Premium and incentive payments. (a) Producers participating in the Options Program will be reimbursed by CCC for the cost of the put option premium, subject to the total payment limitation specified in Sec. 1415.24. (b) Producers who comply with all terms and conditions of the CCC- 300 agreement will receive an incentive payment equal to $.05 cents per bushel (or $250 per option contract of 5000 bushels) for purchasing a target price or loan rate put option. (c) The incentive payments will be issued: (1) At the expiration of the options program contract for all eligible bushels; (2) After all participation requirements have been fulfilled, and: (i) The options position has been closed through either: (A) Selling the put option; (B) Exercising the put option; or (C) Allowing the put option to expire; and (ii) The commodity has been priced. (d)(1) Producers enrolled in the options program shall price their enrolled grain: (i) To a licensed, bonded grain dealer, grain merchant, or warehouse; or (ii) for short hedges, through a registered commodity broker. (2) Documentation must be provided that such a transaction took place. (e) Payments due eligible producers must be made within 30 calendar days after the payment due date specified in part 1413 of this chapter. If such payments are not issued within 30 calendar days after the due date, the producer will be also issued prompt payment interest. (f) CCC will collect the excess premium issued at the time the actual payment acreage is reported by the producer, and no incentive payment will be issued with respect to the overstated acreage if, for target price participation, the acreage enrolled in the 1994 production adjustment program which is used in determining deficiency payments is less than the intended payment acreage specified in the agreement. However, the producer will be allowed to keep the put option with respect to the additional bushels. (g) The producer will not be allowed to increase the quantity of the commodity enrolled in the program if, for target price participation, the acreage enrolled in the 1994 production adjustment program, which is used in determining deficiency payments, is more than the intended payment acreage specified in the agreement. (h) Producers enrolled in the program at the target price level who have received an advance deficiency payment on production enrolled in the program will have such amount deducted from the premium earned for the put options. Sec. 1415.21 Documentation. (a) To receive reimbursement for the cost of the premium of the put option, the producer shall provide to CCC documentary evidence of the purchase. (b) Such documentation shall include: (1) Broker's or brokerage firm's name and address; (2) Producer's account number; (3) The commodity for which the put option was purchased; (4) The date the put option was purchased; (5) The number of 5,000 bushel put option contracts purchased; and (6) The price that was paid for each put option contract. (c) Copies of such documentation shall be attached to the CCC-300 agreement and retained in the county ASCS office. (d) The final date for producers to submit evidence of purchasing a put option contract shall be the later of: (1) 2 weeks after the put option has been purchased; or (2) 2 weeks after the producer is notified of the deadline for submitting such documentation. (e) Late-filed evidence of purchasing a put option may be accepted under meritorious circumstances if approved by the county committee. (f) To receive the incentive payment, eligible producers must provide documentation, such as copies of contracts or bills of sale, to the county committee at least 2 weeks after pricing the grain that shows when the grain was priced. Such documentation must include: (1) Buyer's name and address; (2) Broker's or brokerage firm's name and address, if applicable; (3) Producer's name and address; (4) The commodity for which the put option was purchased; (5) The date the commodity was sold; (6) The number of bushels of the commodity that were priced; and (7) The price that was paid. Sec. 1415.22 Brokerage accounts, fees and charges. (a) Producers who elect to enroll in the Options Program shall be responsible for establishing a separate brokerage account for purchasing put options for this program. Subaccounts shall not be used by such producer. (b) Producers enrolled in the Options Program shall be responsible for all transaction costs related to purchasing a put option contract. Such costs shall include, but are not limited to: (1) Brokerage fees; (2) Transaction taxes; and (3) Other related costs. (c) Producers shall complete form CCC-302, Authorization for Release of Information Regarding Options Marketing Contracts, which authorizes individual brokers or brokerage entities to submit copies of statements concerning the producer's options contracts to the county office. Such information shall be reviewed by the county committee before issuance of any payments. Sec. 1415.23 Other production. Production not enrolled in either the target price or price support levels of the Options Program will be eligible for deficiency payments and to be pledged as collateral for CCC price support loans or tendered to CCC for purchase in accordance with parts 1413 and 1421 of this chapter, respectively. Sec. 1415.24 Payment limitations. (a) Participants shall agree that: (1) In the case of target price participation, the total of the premium subsidies received under the options program and the deficiency payments received under the annual acreage reduction programs will not exceed $50,000 per person; and (2) In the case of price support participation, the total of premium subsidies received under the option program and loan deficiency payments, marketing loan gains, and ``Findley'' deficiency payments received under such programs will not exceed $75,000 per person. (b) A ``person'' will be determined in the same manner as a ``person'' is determined for payment limitation purposes for such annual programs, as provided in part 1497 of this chapter. Sec. 1415.25 Disaster benefits on enrolled bushels. (a) Disaster and deficiency payments cannot be earned on the same quantity of bushels, and the quantity of bushels enrolled in the Options Program cannot exceed the eligible deficiency quantity. If such deficiency quantity is reduced by the disaster quantity, the number of bushels eligible for enrollment in the Options Program may be reduced according to paragraph (b) of this section. (b) If an enrolled producer elects to apply for disaster benefits and the enrolled options program quantity exceeds the eligible deficiency quantity after such quantity is adjusted for disaster, such producer shall refund, before receiving disaster benefits, any premium and incentive payments on the quantity of bushels that exceeds the remaining deficiency quantity. (c) The total of disaster, deficiency, and Options Program bushels shall not exceed the result of multiplying the permitted acreage for the crop times the yield. Options Program bushels that remain eligible for premium and incentive payments shall be calculated as the smaller of: (1) The result of multiplying the permitted acreage of the commodity, times the program payment yield established for such commodity, minus the disaster bushels; or (2) The bushels of the commodity that are enrolled in the options program. Sec. 1415.26 Successors in interest. The successor in interest provisions of Sec. 1413.51 of this chapter are applicable to this part. Sec. 1415.27 Reconstitution of farms. The reconstitution regulations set forth in part 719 of this title are applicable to this part. Sec. 1415.28 Misrepresentation and scheme or device. The misrepresentation and scheme and device regulations set forth in Sec. 1413.52 of this title are applicable to this part. Sec. 1415.29 Offsets and assignments. The offset and assignment regulations set forth in parts 1403 and 1404 of this title are applicable to this part. 24. Part 1416 is added to read as follows: PART 1416--VOLUNTARY PRODUCTION LIMITATION PROGRAM Subpart A--General Provisions Sec. 1416.1 Applicability. 1416.2 Administration. 1416.3 Performance based upon advice or action of county or State committee. 1416.4 Appeals. 1416.5 Paperwork Reduction Act assigned numbers. 1416.6 Controlled substance violations. 1416.7 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. 1416.8 Definitions. Subpart B--Program Provisions 1416.100 Eligible VPLP counties. 1416.101 Basic program provisions. 1416.102 Production limitation quantity (PLQ) and carryover quantities. 1416.103 Production evidence for actual yields. 1416.104 Commingling grain. 1416.105 Required production reports. 1416.106 Determining compliance with the PLQ. 1416.107 Penalties for inaccurate inventory and crop production reporting errors. 1416.108 Incorrect, false or unacceptable evidence and penalties. 1416.109 Planted and considered planted acreages. 1416.110 Misrepresentation and scheme or device. Subpart C--Agreement Procedures for VPLP 1416.300 Obtaining owner and producer signatures. 1416.301 Determining share leases or cash leases. 1416.302 Changes to form CCC-135. 1416.303 Revisions to form CCC-135 because of succession in interest. 1416.304 Effect of reconstitutions on approved CCC-135. Subpart D--Payments 1416.400 Program payments and price support loans and loan deficiency payments. 1416.401 Determining producer's share of crop. Authority: 7 U.S.C. 1444f, 1445b-3a, 15 U.S.C. 714b and 714c. Subpart A--General Provisions Sec. 1416.1 Applicability. The regulations in this part are applicable to the Voluntary Production Limitation Program (VPLP), for the 1994 and 1995 crops of wheat and feed grains and set forth the terms and conditions under which producers of these commodities may enter into agreements with the Commodity Credit Corporation (CCC) to qualify for program benefits under the VPLP. Sec. 1416.2 Administration. (a) The provisions of Sec. 1413.4 of this chapter shall be applicable to this part, except as otherwise noted in this section. (b) The VPLP will be administered under the general supervision of the Administrator, Agricultural Stabilization and Conservation Service (ASCS) and shall be carried out in the field by State and county Agricultural Stabilization and Conservation committees (herein called ``State and county committees''). (c) State and county committees, and representatives and employees thereof, do not have authority to modify or waive any of the provisions of the regulations of this part. (d) The State committee shall take any action required by these regulations 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 regulation of this part. (e) No provision or delegation herein to a State or county committee shall preclude the Administrator, ASCS, or designee, from determining any question arising under the VPLP or from reversing or modifying any determination made by a State or county committee. (f) The Deputy Administrator may authorize State and county committees to waive or modify deadlines and other program requirements in cases where lateness or failure to meet such other requirements does not adversely affect the operation of the program. (g) A representative of CCC may execute form CCC-135, Intention to Participate in the 1994 Voluntary Production Limitation Program, for wheat, barley, oats, corn, and grain sorghum only under the terms and conditions determined and announced by the Executive Vice President, CCC. Any form CCC-135 which is not executed in accordance with such terms and conditions, including any purported execution prior to the date authorized by the Executive Vice President, CCC, shall be null and void and shall not be considered to be an agreement between CCC and the operator and any other producer on the farm. Sec. 1416.3 Performance based upon advice or action of county or State committee. The provisions of part 791 of this title with respect to performance based upon action or advice of any authorized representative or the Secretary shall be applicable to this part. Sec. 1416.4 Appeals. (a) A producer, an assignee of a cash payment, or a holder of a commodity certificate issued in accordance with Sec. 1413.109 of this chapter may obtain reconsideration and review of any determination made under this part in accordance with the appeal regulations found at part 780 of this title. (b) With respect to farm program payment yields, determinations made before December 23, 1985, are not appealable. Sec. 1416.5 Paperwork Reduction Act assigned numbers. The information collection requirements contained in these regulations have been approved by the Office of Management and Budget (OMB) under the provisions of 44 U.S.C. 35, and assigned OMB Nos. 0560- 0004 and 0560-0092. Sec. 1416.6 Controlled substance violations. In accordance with the regulations in part 796 of this title, payments shall not be made for a period of 5 crop years to program participants who are convicted of planting, cultivating, growing, producing, harvesting, or storing a controlled substance such as marijuana. Sec. 1416.7 Compliance with part 12 of this title, highly erodible land and wetland conservation provisions. Whenever a producer, or a person affiliated with such producer, is determined to be ineligible in accordance with the provisions of part 12 of this title, such producer shall be ineligible for any payments under this part and shall refund any payments already received. Sec. 1416.8 Definitions. In determining the meanings of the provisions of this part, unless the context indicates otherwise, words imparting the singular include and apply to several persons or things, words imparting the plural include the singular, words imparting the masculine gender include the feminine, and words used in the present tense include the past and future as well as the present. The following terms shall give the following meanings. All regulations governing the reconstitution of farms in part 719 of this title and the regulations applicable to the production adjustment programs for wheat and feed grains set forth in part 1413 of this chapter shall be applicable to the VPLP. Agreement means form CCC-135, Intention to Participate in the 1994 Voluntary Production Limitation Program. Current year means current year as defined in accordance with 7 CFR 1413.9. Producer means producer as defined in accordance with 7 CFR 1413.9. Maximum payment acres means maximum payment acres as defined in accordance with 7 CFR 1413.9. Production limitation quantity (PLQ) means the amount of production from an enrolled program crop of wheat or feed grain that is eligible to be marketed in 1 year by a producer enrolled in the VPLP. Production limitation quantity yield means for a wheat or feed grain program crop either: (1) The farm payment historical weighted yield (HWY), or, (2) The proven yield. Subpart B--Program Provisions Sec. 1416.100 Eligible VPLP Counties. (a) The VPLP shall be effective for the 1994 crops of wheat and feed grains in: (1) Fremont, Harrison, Mills, Monona, and West Pottawattamie Counties in Iowa; (2) Adams, Furnas, Harlan, Kearney, and Phelps Counties in Nebraska; and (3) Bon Homme, Charles Mix, Douglas, Turner, and Yankton Counties in South Dakota. (b) Farms enrolled in the VPLP must be administratively located in one of the selected counties. Sec. 1416.101 Basic program provisions. (a) The enrollment period for this program will coincide with the period established for the Acreage Reduction Program (ARP) signup which will be March 1 to April 29, 1994. All producers sharing in the crop produced on the farm must complete form CCC-135 to enroll in this program. (b) A farm enrolled in the VPLP must have an established crop acreage base (CAB) for the enrolled crop in accordance with part 1413 of this chapter. (c) Producers on a farm shall be considered to have met the requirements of the current year ARP for barley, corn, grain sorghum, oats, and wheat, respectively, if requirements for the VPLP for such crop, as set forth in this section, are met. (d) Participating producers shall be determined eligible for program benefits in accordance with 7 CFR parts 1497 and 1498 of this chapter, respectively. (e) In order to participate, producers on a farm must enroll 1 or more wheat or feed grain crops into the program on a farm having a CAB for such a crop. (f) Eligible crops to be enrolled in the VPLP are as follows: (1) Wheat; (2) Corn; (3) Grain sorghum; (4) Barley; and (5) Oats. (g) Producers with farming interests on multiple farms are not required to enroll all farms into the VPLP. (h) Farm owners must treat operators, tenants, and sharecroppers fairly, in accordance with Sec. 1413.107 of this chapter. (i) Producers must not be in violation of controlled substance provisions in accordance with part 796 of this title. (j) Except for Bureau of Indian Affairs, Federal agencies are ineligible for VPLP payments. (k) Acreage conservation reserve, in accordance with Sec. 1413.61 of this chapter, is not required for crops enrolled in the VPLP. (l) The provisions of Sec. 1413.41 of this chapter do not apply to crops enrolled in VPLP. (m) The provisions of Sec. 1413.43 of this chapter do not apply to crops enrolled in VPLP. (n) The sum of the planted acreage for all enrolled wheat and/or feed grain program crops shall not exceed the sum of the enrolled wheat or feed program CAB's on the farm. (o) Producers who do not comply with the terms and conditions of the VPLP for a crop shall be required to refund all or a part, as determined appropriate by CCC, of the current year payments received by such producers for such crop. Sec. 1416.102 Production limitation quantity (PLQ) and carryover quantities. (a) Producers participating in the VPLP must agree not to market, barter, donate, or use on the farm, including use as livestock feed, a quantity greater than the sum of the PLQ for enrolled crops, calculated in paragraph (d) of this section and eligible carryover determined according to paragraph (b) of this section. (b) Carryover production will be defined as eligible and ineligible carryover as follows: If the crop was: (1) Enrolled in the VPLP the previous year and the current year, any carryover production from any previous crop is ineligible carryover, and if marketed, bartered, donated, or used during the current year shall be counted against the PLQ for the current year. However, so that no benefit will occur from the carryover, the producer may destroy the carryover under supervision of an employee of ASCS; or (2) Not enrolled in the VPLP in the previous year but is enrolled in the current year, the carryover production from a previous crop year is eligible carryover and may be marketed, bartered, donated, or used during the current year without being counted against the PLQ for the current crop year; or (3) Enrolled in VPLP in the previous year and is enrolled in ARP in the current year, the producer may devote an amount of acreage to conservation use acreage equal to the excess production divided by the PLQ yield for the crop and have the excess production considered eligible carryover. (c) Production harvested in excess of the PLQ may be stored up to but not more than 5 years. Any excess commodity stored longer than 5 years is subject to forfeiture to CCC. (d) The PLQ for a crop for a marketing year shall equal the product obtained by multiplying the acreage that would be permitted to be planted to such crop under the regular ARP conducted in accordance with part 1413 of this chapter by the PLQ yield. (e)(1) The PLQ yield shall be calculated as the higher of: (i) The farm program payment historic weighted yield for the crop determined in accordance with part 1413 of this chapter; or (ii) The average of the actual yields, as determined in accordance with Sec. 1416.104 of this part, for the crop for the farm for each of the 1989 through 1993 crop years, excluding the crop years with the highest and lowest yields. (2) Any crop year in which the commodity was not planted shall be excluded. (f) Farms which have either, corn or grain sorghum CAB's, or both, and participate in the VPLP, shall have the PLQ calculated as corn equivalents by multiplying the combined permitted acreage of corn and grain sorghum times the corn PLQ yield. (g)(1) If grain sorghum is harvested on the farm, grain sorghum production credited against the PLQ shall be determined by: (i) Dividing the corn yield by the grain sorghum yield; and (ii) Multiplying the factor determined in (g)(1)(i) of this section times the grain sorghum production (bushels) marketed, bartered, donated, or used on the farm. (2) The result is bushels of grain sorghum expressed in corn equivalents. Subtract this result from the PLQ for the combined permitted corn-grain sorghum PLQ to determine the quantity of corn eligible to be marketed. Sec. 1416.103 Production evidence for actual yields. The following provisions apply if producers elect to submit actual production for establishing actual yields for determining the PLQ in accordance with Sec. 1416.102: (a) Production evidence for the enrolled program crop(s) must be submitted to County ASCS Offices on form ASCS-658, Record of Production and Yield. Additional evidence will be required if a representative of the county ASCS office determines there is insufficient evidence to support the representation of production or acreage of the crop on the farm as certified to by the producer. (b) Producers with an interest in enrolled crops on more than 1 farm shall submit production evidence for all farms. The county committee shall determine whether evidence includes production from any other acreage for each year the evidence is provided. (c) Evidence for commercially stored production or production disposed of off the farm must show the: (1) Producer's name; (2) Commodity; (3) Buyer's or storer's name; and (4) Date of transaction. (d) Acceptable documents substantiating amounts of commercially stored or disposed of production include: (1) Commercial or warehouse receipts; (2) Sales or elevator receipts; (3) Warehouse ledger sheets or copies; (4) Warehouse load summaries or copies; (5) Settlement sheets; (6) CCC-warehouse stored loan documents; (7) Farm stored loan documents, if quantity has been determined by measurement; (8) Weight slips or scale tickets from harvested or appraised acreage; (9) Approved Federal Crop Insurance Corporation or multiperil crop insurance loss adjustment settlement; and (10) Scale tickets or weight slips for wheat and feed grains that are supported by other evidence showing disposition, such as sales documents. (e)(1) Documents showing the amount of production shall be reviewed to determine moisture content and dockage associated with the production. (2) If the document does not show that the production has been reduced to standard moisture levels and shows: (i) specific moisture that is greater than standard; (ii) dockage; or (iii) both excess moisture and dockage, the net amount will be adjusted on standard moisture levels and applicable dockage standards as determined by CCC. (3) If the evidence shows that the net amount has been adjusted to include a drying charge in pounds or bushels and there is no moisture or dockage factor, then the pounds or bushels deducted for the drying charge will be included in the net amount; and (4) If the evidence does not show a moisture or dockage factor, then the net amount, if the evidence provided is otherwise satisfactory, will be accepted. (f) Standard test weights shall be used to convert net weight to bushels, in accordance with part 1421 of this title. (g)(1) Farm-stored production will be measured at producer's request and expense. Scale tickets or weight slips may be accepted for production instead of the measured quantity, when the scale tickets or weight slips include all of the following: (i) Farm identification number; (ii) Commodity; (iii) Date weighed; and (iv) Weigher's signature or initials, and company name if available. (2) The county committee shall determine that the measurements indicating the weighed quantity in the bin is reasonable compared to the measured quantity. (h) Determined quantities may be changed for future years based on delivery amounts if a delivery amount indicates the quantity in the bin. (i) If delivered amounts are normally smaller than measured quantities, other evidence, such as sales receipts, may be required to adjust quantities. (j) Commingled production shall be apportioned between farms by measuring total harvested production and apportioning harvested production between farms based on the ratio of each farm's payment yield. (k) When a farm has multiple producers and the producers' share of the production and total bushels received are known, the farm yield may be computed from this data. (l) Production evidence for enrolled crops may be accepted no later than the 15 calendar days after the final signup date for VPLP. Sec. 1416.104 Commingling grain. (a) The producer will be allowed to store or commingle production for any and all crop years from acreage enrolled in the VPLP with any crop year production from acreage in compliance with the ARP. (b) However, VPLP production must be measured by a representative of the county ASCS office before it is commingled with any other production. Sec. 1416.105 Required production reports. (a) Producers enrolled in the VPLP must file reports for each enrolled crop which include: (1) The quantity of each enrolled crop on hand at the beginning of the current marketing year (June 1, for wheat, barley, and oats; September 1, for corn and grain sorghum); (2) The quantity of the enrolled crop harvested in the current year; and (3) The quantity of the enrolled crop's production on hand at the end of the current marketing year (May 31, for wheat, barley, and oats; August 31, for corn and grain sorghum). (b) Producers shall certify the required quantities on form CCC- 136, Production Certification for the VPLP. (c) Certification of the quantity on hand at the beginning of the marketing year for the current crop production year shall occur no later than June 1 for wheat, barley, and oats and September 1 for corn and grain sorghum. (d) A representative of the county ASCS office will conduct spot checks of all producer certifications. (e) The operator shall certify current year production of wheat and small grains harvested for enrolled program crops no later than the following dates: (1) Iowa--July 30; (2) Nebraska--July 15; and (3) South Dakota--August 1. (f) The operator shall certify current year production of corn and grain sorghum harvested for enrolled corn and grain sorghum crops no later than December 1. Sec. 1416.106 Determining compliance with PLQ. (a) The quantity of an enrolled crop marketed, bartered, donated, or used on the farm during the marketing year will be calculated, based on the quantities reported in accordance with Sec. 1416.105, by adding the amount of the enrolled crop reported on hand at the beginning of the marketing year and the production amount of the enrolled crop harvested and subtracting the quantity of the enrolled crop on hand at the end of the marketing year. (b) The production amount disposed of: (1) Is in compliance with program provisions if the result is less than or equal to the sum of the PLQ for the crop and eligible carryover as determined in Sec. 1416.102; (2) Is not in compliance if the result of paragraph (a) of this section is more than the sum of the PLQ and eligible carryover as determined in Sec. 1416.102. In this case, excess marketings have occurred and the producer will be subject to a penalty. (c) When the disposed bushels exceed the allowable quantities determined according to paragraph (a) of this section by: (1) 5 percent or less, the penalty is the larger of the price support rate established for the county for the commodity or the current market price, as determined by CCC, times the excess bushels; (2) 6 to 10 percent, the penalty is the larger of the price support rate established for the county for the commodity or 1.2 times the current market price, as determined by CCC, at the time the violation is discovered times the excess bushels; (3) Over 10 percent, the penalty is the larger of the target price or 1.5 times the current market price, as determined by CCC, at the time the violation is discovered times the excess bushels. Sec. 1416.107 Penalties for inaccurate inventory and crop production reporting errors. (a) A penalty shall be assessed for each crop enrolled in this program for discrepancies in reporting the bushel quantity in accordance with Sec. 1416.105. (b) For any discrepancies in quantities listed above, the penalty per bushel shall be the higher of: (1) The target price; or (2) 1.5 times the market price, as of the date the quantities are required to be reported. Sec. 1416.108 Incorrect, false, or unacceptable evidence and penalties. When production evidence submitted for providing yields in accordance with Sec. 1416.103 is found to be unacceptable, incorrect, or false, a proven yield will not be established. Sec. 1416.109 Planted and considered planted acreages. Regardless of planted acreages, planted and considered planted (P&CP) acreages for crops enrolled in the VPLP shall be equal the CAB. Sec. 1416.110 Misrepresentation and scheme or device. (a) A producer who is determined by the county committee or the State committee to have erroneously represented any fact affecting a program determination made in accordance with this part shall: (1) Not be entitled to payments under the crop program with respect to which the representation was made, (2) Refund to CCC all payments received by such producer with respect to such farm and such crop program, and (3) Be liable for liquidated damages in accordance with the terms of the CCC-477. (b) With respect to programs conducted in accordance with this part, a producer who is determined by the State committee, or the county committee with the approval of the State committee, to have knowingly: (1) Adopted any scheme or device which tends to defeat the purpose of the program, (2) Made any fraudulent representation, or (3) Misrepresented any fact affecting a program determination shall refund to CCC all payments received by such producer with respect to all farms and shall be liable for liquidated damages in accordance with the CCC-477. Such producer also shall be ineligible to receive program payments for the year in which the scheme or device was adopted. If such action also is determined by CCC to be a scheme or device, a fraudulent representation or a misrepresentation of fact affecting a determination made in accordance with part 1497 of this title, the producer shall also be ineligible for program payments. (b) A producer who is determined to have knowingly: (1) Adopted any scheme or device which tends to defeat the purpose of the program, (2) Made any fraudulent misrepresentation, or (3) Misrepresented any fact affecting a program determination shall refund to CCC all payments received by such producer with respect to such farm. Such producer shall be ineligible to receive program payments for the year in which the scheme or device was adopted, and also in the succeeding year. Subpart C--Agreement Procedure for VPLP Sec. 1416.300 Obtaining owner and producer signatures. (a) The agreement to participate in the 1994 VPLP, form CCC-135, shall be signed by: (1) The operator; and (2) All producers sharing in the enrolled crop or the proceeds of the enrolled crop. (b) Owners not sharing in the enrolled crop shall not be required to sign the agreement. However, either of the following must be provided for the current year to the County Office: (1) A written lease, rental arrangement, or other document signed by the owner, showing that the operator has operational control over the farm, or (2) A written statement by the operator certifying that the operator understands that any incorrect or misleading statement shall require a forfeiture of all program benefits for the farm for the years included in the certification, and certifying either of the following: (i) The land is rented for the current pilot VPLP year and the landowner receives no benefit from the crop; or (ii) Landowner's cropland is enrolled in conservation reserve program and receives no benefit from the crop. (c) County offices shall not approve form CCC-135 when any producer refuses to sign form CCC-135. (d) The County committee may accept a late-filed CCC-135 after the end of the signup period if the county committee determines that either: (1) Failure to timely file was beyond the control of the producer, or; (2) All of the following apply: (i) The farm operator demonstrated a good faith effort to timely file the required information; (ii) Failure to timely apply did not result from gross negligence on the part of the farm operator or any party to CCC-135; and (iii) Acceptance of CCC-135 would not create a situation that defeats the purpose of VPLP. Sec. 1416.301 Determining share leases or cash leases. Share leases and cash leases shall be determined in accordance with Sec. 1413.107 of this chapter. Sec. 1416.302 Changes to form CCC-135. (a) The operator may cancel or revise form CCC-135 before the end of the VPLP signup period. Any advance payments that were issued and cannot be earned must be refunded with interest unless CCC-184, CCC check, is returned unnegotiated. (b) The request by the farm operator to revise or cancel form CCC- 135 shall be in writing or attached to form CCC-135. (c) A new form CCC-135 shall be used as follows: (1) When form CCC-135 has been approved during the signup period because advance payments were requested and then the operator revises form CCC-135; (2) When an operator cancels a crop or reinstates a canceled crop; and (3) With all required signatures for the crops to be enrolled or canceled. (d) A canceled form CCC-135 may be reinstated before the end of the signup period. (e) When form CCC-135 is canceled, all crops will be considered nonparticipating in the VPLP for all purposes, including planted and considered planted acreages. Sec. 1416.303 Revisions to form CCC-135 because of succession in interest. (a) The provisions at Sec. 1413.51 relating to successors in interest are applicable to the VPLP. In addition: (1) All producers whose shares have changed from the original CCC- 135 must sign a revised CCC-135 by the earliest of the following: (i) Date the crop is actually harvested; (ii) December 31 of the current year; or (iii) 15 calendar days after the county committee was notified of the succession. (2) The successor shall be informed, before the successor's request to revise the CCC-135 is approved that: (i) Successor is fully responsible for the predecessor's payments; (ii) Successor shall refund any outstanding advance that is not earned on the farm; and (iii) The successor's payments will be reduced by the amount of any outstanding advance. (b)(1) When the predecessor does not agree to a revised CCC-135 the county committee shall determine if the predecessor has lost the authority to carry out the producer's responsibilities under CCC-135. In such cases the county committee shall: (i) With the concurrence of the ASCS District Director, determine the producers, including the predecessor, who should receive payments based on a fair division of the payment; and (ii) Offer the producers the opportunity to enter into a revised CCC-135. (2) If the successor does not agree to enter into a revised CCC- 135, the original CCC-135 will remain in effect and the original parties to CCC-135 remain liable if noncompliance occurs. (c) If a person who signed a CCC-135 is later determined to be dead, missing, or declared incompetent, payments will be made in accordance with part 1413 of this title. Sec. 1416.304 Effect of reconstitutions on approved form CCC-135. (a) If a farm reconstitution is effective for the current year and is approved after form CCC-135 is filed and approved, producers may file a new form CCC-135 for a resulting farm by the later of the following: (1) 15 calendar days after the date of form ASCS-476, Notice of Acreage Bases, Yields, Allotments, and/or Quotas, was determined for the resulting farm; or (2) The end of the signup period. (b) If the producer on the parent farm has not refunded the advance payment, then the producers on the resulting farm cannot receive an advance payment on the same acreage, and the final payments to the producers on the resulting farm shall be reduced by the advances paid for the parent farm. Subpart D--Payments Sec. 1416.400 Program payments and price support loans and loan deficiency payments. (a) The deficiency payment provisions of part 1413 of this chapter are applicable to this part, except as otherwise provided in this section. (b) Producers of enrolled crops shall be eligible to earn deficiency payments on the number of acres planted to such crop, not to exceed the maximum payment acreage for such crop. (c) The deficiency payment yield shall be the historic weighted yield for the crop. The actual proven yield shall be used only to calculate the PLQ for the crop. (d) Production from an enrolled crop is eligible for current program year price support benefits including the farmer owned reserve if the quantity is eligible for the farmer owned reserve. Sec. 1416.401 Determining producer shares of crop. (a) The producer's share of the crop shall be determined in accordance with the regulations in Sec. 1413.106. Signed at Washington, DC, on September 26, 1994. Bruce R. Weber, Administrator, Agricultural Stabilization and Conservation Service, Executive Vice President, Commodity Credit Corporation. [FR Doc. 94-27562 Filed 11-15-94; 8:45 am] BILLING CODE 3410-05-P