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Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Rules and Regulations through the food chain system as determined by the Deputy Administrator.

Violating substance means one or more of the following, as defined in this section: Pesticide, chemicals or toxic substances, or nuclear radiation or fallout.

5. Revise 760.3 to read as follows:
760.3

Indemnity payments on milk.

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a The amount of an indemnity payment for milk, including, but not limited to organic milk, made to an affected farmer who is determined by the county committee to be in compliance with all the terms and conditions of this subpart will be in the amount of the fair market value of the farmers normal marketings for the application period, as determined in accordance with 760.4 and 760.5, less:
1 Any amount the affected farmer received for whole milk marketed during the application period; and 2 Any payment not subject to refund that the affected farmer received from a milk handler with respect to milk removed from the commercial market during the application period.
b The eligible period for Dairy Indemnity Payment Program DIPP
benefits for milk for the same loss is limited to 3 calendar months from when the first claim for milk benefits is approved. Upon written request from an affected farmer on the milk indemnity form authorized by the Deputy Administrator, the Deputy Administrator may authorize, at the Deputy Administrators discretion, additional months of benefits for the affected farmer for milk due to extenuating circumstances, which may include allowing additional time for public agency approval of a removal plan for cow indemnification and confirmation of site disposal for affected cows. Additionally, the Deputy Administrator has discretion to approve additional months based on issues that are beyond the control of the affected farmer who is seeking cow indemnification, as well as when the affected farmer is following a plan to reduce chemical residues in milk, cows, and heifers to marketable levels.
760.6

Amended
6. Amend 760.6 in paragraph i by removing the words and the results of any laboratory tests on the feed supply and adding the results of any laboratory tests on the feed supply, and the monthly milk testing results that

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detail the chemical residue levels in their place.
7. Revise 760.7 to read as follows:
760.7 Conditions required for milk or cow indemnity.

a An indemnity payment for milk or cows dairy cows including, but not limited to, bred and open heifers may be made under this subpart to an affected farmer under the conditions in this section.
b If the pesticide, chemical, or toxic substance, in the contaminated milk was used by the affected farmer, the affected farmer must establish that each of the conditions in this section are met:
1 That the pesticide, chemical, or toxic substance, when used, was registered if applicable and approved for use as provided in 760.2f;
2 That the contaminated milk was not the result of the affected farmers failure to use the pesticide, chemical, or toxic substance, according to the directions and limitations stated on the label; and 3 That the contaminated milk was not otherwise the affected farmers fault.
c If the violating substance in the contaminated milk was not used by the affected farmer, the affected farmer must establish that each of the conditions in this section are met:
1 The affected farmer did not know or have reason to believe that any purchased feed contained a violating substance;
2 None of the milk was produced by dairy cattle that the affected farmer knew, or had reason to know at the time they were acquired, had elevated levels of a violating substance; and 3 The contaminated milk was not otherwise the affected farmers fault.
d The affected farmer has adopted recommended practices and taken action to eliminate or reduce chemical residues of violating substances from the milk as soon as practicable following the initial discovery of the contaminated milk.
8. Amend 760.9 by revising the section heading and paragraph c and adding paragraphs d and e to read as follows:
760.9

Payments for the same loss.

c For any affected farmer that exceeded 3 months of milk indemnity payments before December 13, 2021 no further payments for milk indemnity will be made for the same loss except as provided in 760.3b and the affected farmer may apply for cow indemnity as specified in this subpart.
d An affected farmer that has an approved application for cow indemnity
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is no longer eligible for milk indemnity payments for the same loss.
e Cows purchased or bred after the initial discovery of the milk contamination are not eligible for DIPP
benefits due to the same loss.
9. Add 760.10 to read as follows:
760.10

Indemnity payments for cows.

a The Deputy Administrator for Farm Programs DAFP will determine eligibility for DIPP indemnification based on if the cows of the affected farmer are likely to be not marketable for 3 months or longer from the date the affected farmer submits an application for cow indemnification per 760.13.
The Deputy Administrator will review the following factors in making that determination:
1 Milk testing results;
2 Non marketability of affected cows through commercial marketing facilities;
3 Type and source of chemical residues impacting the milk and animal tissues; and 4 Projected duration for chemical residue reduction including the actions taken by the affected farmer to reduce the chemical residues to marketable levels since the affected cows were discovered.
b See 760.11 for indemnity payment eligibility for bred and open heifers.
c Affected farmers applying for indemnification of cows, including heifers, must develop a removal plan both to permanently remove the affected cows by depopulating the cows.
1 The removal plan for affected cows for which an affected farmer applies for indemnification under DIPP must be approved by the applicable public agency where the cows are located and must be in accordance with any applicable Environmental Protection Agency EPA and public agency depopulation and animal disposal requirements and guidelines, including contaminant disposal requirements, in the State where the affected cows are located.
2 The approved removal plan must be submitted with the application for indemnification.
d The amount of an indemnity payment for cows to an affected farmer who is determined by the Deputy Administrator to be eligible for indemnification and by the county committee to be in compliance with all the terms and conditions of this subpart will be based on the national average fair market value of the cows. DIPP cow indemnification will be based on the 100 percent value of the Livestock Indemnity Program LIP rates as applicable for the calendar year for milk
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