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Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Rules and Regulations
minimum loss as required by a crop in a disaster declared or designated county. Lists of counties with Presidential Emergency Disaster Declarations and Secretarial Disaster Designations for all qualifying disaster events for 2018 and 2019 are available at farmers.gov/quality-loss.
FSA recognizes that a crop may suffer quality losses due to multiple disaster events in a single crop year, and the portion of a crops quality loss that can be attributed to a specific disaster event may be difficult to determine. Therefore, while a qualifying disaster event must have caused at least a portion of the affected productions quality loss, FSA
will consider the total quality loss caused by all eligible disaster events for eligibility and payment calculation purposes. Eligible disaster events for the QLA Program include those listed for NAP in 7 CFR 1437.10, except that the QLA Program does not cover losses due to insect infestation.
The QLA Program does not cover losses due to disaster events occurring after a crop was harvested or due to crop deterioration while in storage. Quality losses that could have been mitigated using good farming practices are not eligible. For example, if a producers corn crop received a quality discount due to high moisture content, the producer could have mitigated that quality loss by using best practices for drying and storing the crop; therefore, that producers quality loss due to high moisture is not eligible. The QLA
Program does not provide assistance for losses that cannot be determined to have occurred or for losses for which a notice of loss was previously disapproved by FSA, RMA, or an approved insurance provider selling and servicing Federal crop insurance policies unless that notice of loss was disapproved solely because it was filed after the applicable deadline.
The QLA Program does not provide assistance for certain quality losses that were already compensated under a Federal crop insurance plan, NAP, or WHIP+. This includes losses to affected production of:
Multiple market crops already compensated under crop insurance or WHIP+;
Crops for which production used to calculate a crop insurance indemnity or WHIP+ payment was adjusted based on a comparison of the producers sale price to the FCIC established price;
Crops that received a crop insurance indemnity, NAP payment, or WHIP+ payment based on the quantity of production that was considered unmarketable; and
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Crops for which production was reported as salvage value or secondary use.
The QLA Program also excludes quality losses to sugar beets that were compensated through cooperative agreements with cooperative processors.
Affected production of a subsequent crop grown on double cropped acreage is only eligible if the crop has been approved as an eligible double cropping practice by the FSA State committee.
Application FSA will accept QLA Program applications from January 6, 2021, through March 5, 2021. To apply, producers must submit a completed QLA Program application either in person, by mail, email, or facsimile to an FSA county office. To be eligible, a producer must submit a complete application, which includes all of the following:
FSA898, Quality Loss Adjustment QLA Program Application;
FSA899, Historical Nutritional Value Weighted Average Worksheet only for forage crops with verifiable documentation of historical nutrient factors from the 3 preceding crop years;
FSA578, Report of Acreage;
FSA895, Crop Insurance and/or NAP Coverage Agreement; and Required documentation, as discussed below.
The FSA578, FSA895, and FSA
899 forms, and other required documentation must be submitted to the producers county office by March 19, 2021.
If not already on file with FSA, producers must also submit the following eligibility forms for each crop year within 60 days of the date the producer signs the application:
AD1026, Highly Erodible Land Conservation HELC and Wetland Conservation WC Certification;
CCC902, Farm Operating Plan for Payment Eligibility;
CCC941 Average Adjusted Gross Income AGI Certification and Consent to Disclosure of Tax Information; and CCC942 Certification of Income from Farming, Ranching and Forestry Operations, if applicable.
Payments will not be made until all necessary eligibility documentation is received. Failure of an applicant to submit documentation timely may result in FSA not issuing a payment or, in the case of legal entities, a reduced payment if the required documentation for one or more members of the entity is not submitted timely.
Required Documentation To support their applications, producers must submit documentation
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showing the quality loss and quantity of affected production by March 19, 2021.
Documentation of the quality loss total dollar value loss, grading factors, and nutrient factors, as applicable, must be verifiable. Verifiable documentation is documentation that can be verified by FSA through an independent source;
FSA may verify the submitted records with records on file at the warehouse, gin, laboratory, or other entity that received or tested the reported production. Examples of acceptable, verifiable documentation include warehouse grading sheets, settlement sheets, sales receipts, and laboratory test results. Except for grain crops that have been sold, the documentation must be from laboratory tests or analysis completed within 30 days of harvest to be considered acceptable, unless the FSA county committee determines that the record is representative of the condition of the affected production within 30 days of harvest. For grain crops that were sold, the verifiable documentation can be from any time from harvest through the time of sale, unless the FSA county committee determines the record is not representative of the condition within 30 days of harvest. Producers who do not have acceptable, verifiable documentation are ineligible for the QLA Program.
For forage crops, all producers must submit verifiable documentation showing the nutrient factors for the affected production of the crop.
Producers must also submit verifiable documentation of the historical nutrient factors for the 3 preceding crop years if available. The type of nutrient factors such as relative feed value or total digestible nutrients that must be documented for a particular crop will be determined by the FSA county committee based on the standard practice for the crop in that county. For all crops other than forage crops, producers must submit verifiable documentation of the total dollar value loss due to quality, if available, and verifiable documentation of grading factors due to quality.
Documentation to support the quantity of affected production included on the application must be verifiable for non-forage crops that receive a QLA
payment based on the producers total dollar value loss. For all other crops non-forage crops without a producers total dollar value loss and all forage crops, records to support the quantity of affected production must be reliable.
Reliable production records means evidence provided by the participant that is used to substantiate the amount of production reported when verifiable
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