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Wednesday, March 28, 1956
Sec.
472.717
472.718
472.719
472.720
472.721
472.722
472.723
472.724

Records and Inspection thereof.
Death, incom petency, or other dis ability.
Set-off.
Assignments.
Instructions and interpretations.
Forms.
Violation o f program.
Definitions.

Subpart B 1956 Payment Program for Unshorn Lambs Pulled Wool
472.751 Adm inistration.
472.752 Rate of paym ent.
472.753 Eligibility for paym ents on lambs.
472.754 Sales in good faith.
472.755 Computation of payment.
472.756 Filing application for payment.
472.757 Form of application and supporting docum ents.
472.758 Report of purchases o f unshorn lambs.
472.759 Contents of sales docum ents.
472.760 Signature of applicant.
472.761 Payment.
472.762 Deductions for promotion.
472.763 Appeals.
472.764 Records and inspection thereof.
472.765 Death, incom petency, or other dis ability.
472.766 Set-off.
472.767 Assignments.
472.768 Instructions and interpretations.
472.769 Other forms.
472.770 Violation of program.
472.771 Definitions.
Authority : 472.701 to 472.771 issued under sec. 4, 62 Stat. 1070, as amended; 15
U. S. C. 714b. Interpret or apply sec. 5, 62
Stat. 1072, secs. 702-709, 68 Stat. 910-912; 15
U. S. C. 714C, 7 U. S. C. 1781-1787, 1446.
SUBPART A 1956 INCENTIVE PAYMENT
PROGRAM FOR SHORN W OOL

472.701 Administration. The pro gram will be carried out by CSS under the general supervision and direction of the Executive Vice President of CCC. In the field, the program will be adminis tered through the Agricultural Stabiliza tion and Conservation referred to in this subpart as ASC state and county offices. ASC state and county offices do not have authority to modify any of the provisions of this subpart or any of the amendments or supplements thereto.
Neither are they authorized to waive any such provisions unless the power to waive is expressly included in the per tinent provision.
472.702 Incentive level and pay ments. For the 1956 marketing year beginning April X, 1956, and ending March 31, 1957, both dates inclusive, 472.724, the price level which has been determined to meet the requirements of the National Wool Act of 1954 is 62 cents per pound of shorn wool, grease basis.
Announcement of this price level was made by the Department of Agriculture on September 12, 1955, in accordance with section 703 of th e National Wool Act of 1954, which states th at the Secre tary shall, to the extent practicable, announce the support price levels for wool sufficiently in advance of each m ar keting year as will permit producers to plan their production for such market ing year. For the 1956 marketing year, price support on shorn wool will be fur nished by means of payments to the producer on the shorn wool he markets.
472.703 Eligibility for incentive pay ments. Before payments under this
FEDERAL REGISTER

program can be approved pursuant to any application for payment covering any lot or lots of wool, the following requirements must be satisfied:
a Except as provided in 472.718, the applicant must be the producer and in the case of a joint application, each applicant must be a producer as defined in 472.724 of the shorn wool.
b The wool must have been shorn in the continental United States, its terri tories, or possessions on or after January 1, 1955, and must have been marketed within the 1956 marketing year as de fined in 472.724. For the purpose of this program, shorn wool is deemed to include murrain and other wool re moved from dead sheep, and other off wools, such as black wool, tags and crutchings.
c The wool as well as the sheep or lambs from which it was shorn, must have been owned by the producer at the time of shearing, and the sheep or lambs must, have been owned by him for not less than 30 days a t any time prior to his signing the application for payment 472.708, with the following excep tion: The ownership specified in the pre ceding sentence is not required of an applicant for payment who has an agree ment with the owner of the animals pursuant to which the applicant, in re turn for furnishing labor in connection with caretaking, lamb production, or feeding, is entitled either to a share in the ownership of the wool shorn from such animals or a share of the sales pro ceeds of the wool: Provided, That the owner of the animals who joins in the application meets the ownership require ments. Ownership of wool or animals as used in this paragraph does not in clude the ownership which in some states is held by a person having a security interest, such as a mortgage or other lien.
d Beneficial interest In the wool must always have been in the producer from the time the wool was shorn up to the time of its sale. A producer has beneficial interest in wool 1 when he owns it without any other person being entitled to the wool or its proceeds and without his having authorized any other person to sell or otherwise dispose of the wool; 2 when the producer has author ized another person to sell or otherwise dispose of the wool, even transferring legal title to such other person, but the producer continues to be entitled to the proceeds from such sale or other disposal of the wool; or 3 when the producer is entitled to a share of the wool or of the proceeds thereof pursuant to an agreement described under paragraph c of this section though he does not own the animals from which the wool was shorn. If the producer has such beneficial interest, the fact th at the wool may be mortgaged or subject to another lien does not change his position as hav ing a beneficial interest.
e The producer must either report, in accordance with 472.712, th at the wool sold includes wool obtained by a first shearing of lambs he purchased on or after April 1, 1956, or certify th at the wool sold does not include any wool so obtained.

1879
472.704 Marketing within the 1956
marketing year, a The National Wool Act of 1954 provides th at price support under th at act shall be limited to wool and mohair marketed during the period beginning April 1, 1955, and ending March 31,1959. Since this program cov ers only the 1956 marketing year, pay ments under this program will be limited to wool marketed during the period be ginning April 1, 1956, and ending March 31, 1957.
b Marketing shall be deemed to have taken place in the 1956 marketing year if, pursuant to a sale or a contract to sell, the last of the following three events in the process of marketing was completed in the 1956 marketing year:
1 Title passed to the buyer; 2 the wool was delivered to the buyer physi cally or through documents which trans fer control to the buyer; and 3 the last of the factors price per pound, weight, etc. needed to determine the total purchase price payable by the buyer became available. Any one of the three events may be the last event completed.
The factors referred to under subpara graph 3 of this paragraph are con sidered available when they are known to the applicants marketing agency if he markets through a marketing agency, or they are known to the applicant if he markets directly.
c Delivery of wool on consignment to a marketing agency defined in 472.724 to be sold for the producers account does not constitute a marketing.
This is so even though the consignee may guarantee the producer a minimum sales price or may give him an advance against the prospective sales price or may do both. Wool delivered on consignment shall not be deemed marketed by the producer until it has been marketed by the marketing agency. When a pro ducer transfers title to. his wool to a marketing agency and provides th at such agency shall market the wool and th at the producer shall be entitled to the pro ceeds of such marketing, the producer shall be deemed to have consigneed the wool.
d The exchange of. wool for mer chandise or services for instance, shear ing will be considered a sale, provided a definite price is established for the wool.
472.705 Sales in good faith. Pay ments provided for under this program shall be made on the basis of sales ex ecuted in good faith, and no payment shall be made on th at part of any sale which has been cancelled or on the basis of sales at prices increased in bad faith for the purpose of obtaining higher pay ments under this program. Examples of sales in bad faith are those wherein the purchaser obtains a rebate or any benefit in form of money, property, or otherwise. Application for payment on the basis of a sale in bad faith may also subject the parties involved to civil and criminal liability.
472.706 Rate of incentive payment.
Upon expiration of the 1956 marketing year and after the Department of Agri culture has determined the national average price for wool received by pro ducers in th a t marketing year, the De partm ent will announce the rate of the