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Federal Register / Vol. 86, No. 3 / Wednesday, January 6, 2021 / Rules and Regulations
grower ineligible for payments under this subpart.
e A person or legal entity is not eligible to receive assistance under this subpart if FSA determines that the person or legal entity:
1 Adopted any scheme or other device that tends to defeat the purpose of this subpart or any of the regulations applicable to this subpart;
2 Made any fraudulent representation; or 3 Misrepresented any fact affecting a program determination under any or all of the following: This subpart and parts 12, 400, 1400, and 1437 of this title.
f A person who is ineligible for crop insurance or NAP under 400.458 or 1437.16 of this title, respectively, for any year is ineligible for payments under this subpart for the same year.
g The provisions of 718.11 of this chapter, providing for ineligibility for payments for offenses involving controlled substances, apply.
h As a condition of eligibility to receive payments under this subpart, the participant must have been in compliance with the Highly Erodible Land Conservation and Wetland Conservation provisions of part 12 of this title for the applicable crop year for which the producer is applying for benefits under this subpart, and must not otherwise be precluded from receiving payments under part 12, 400, 1400, or 1437 of this title or any law.

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760.1804 Eligibility of affected production.

a To be eligible for the QLA
Program, an eligible crops affected production must have suffered a quality loss due to a qualifying disaster event and had at least a 5 percent quality loss due to all eligible disaster events.
Whether affected production of a crop had a 5 percent loss will be determined separately for crops with different crop types, intended uses, certified organic or conventional status, county, and crop year.
b Affected production of the following is not eligible for the QLA
Program:
1 Crops that were not grown commercially;
2 Crops that were intended for grazing or were grazed;
3 Crops not intended for harvest;
4 Volunteer crops;
5 Value loss crops;
6 Maple sap;
7 Honey;
8 By-products resulting from processing or harvesting a crop, such as, but not limited to, cotton seed, peanut shells, wheat or oat straw, or corn stalks or stovers;

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9 First-year seeding for forage production;
10 Immature fruit crops;
11 Crops for which FCIC coverage or NAP coverage is unavailable;
12 Multiple market crops for which the producer previously received a crop insurance indemnity or WHIP+ payment for a quality loss;
13 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 FCIC established price;
14 Crops that received a crop insurance indemnity, NAP payment, or WHIP+ payment based on the quantity of production that was considered unmarketable;
15 Crops for which the producer previously received a crop insurance indemnity, NAP payment, or WHIP+
payment for which production was reported as salvage value or secondary use;
16 Sugar beets for which a member of a cooperative processor received a payment through a cooperative agreement; and 17 Crops that were destroyed.
c Only affected production from initial crop acreage will be eligible for a QLA Program payment, unless the provisions for subsequent crops in this section are met. All plantings of an annual or biennial crop are considered the same as a planting of an initial crop in tropical regions as defined in part 1437, subpart F, of this title.
d In cases where there is double cropped acreage, affected production of each crop may be eligible only if the specific crops are approved by the FSA
State committee as eligible double cropping practices in accordance with procedures approved by the Deputy Administrator.
e Participants having affected production from multiple plantings may receive payments for each planting only if the planting meets the requirements of part 1437 of this title and all other provisions of this subpart are satisfied.
760.1805

Qualifying disaster events.

a A producer is eligible for payments under this subpart only if the producers affected production of an eligible crop suffered a crop quality loss due to a qualifying disaster event.
b A crop quality loss due to a qualifying disaster event must have occurred on acreage that was physically located in a county that received a:
1 Presidential Emergency Disaster Declaration authorizing public assistance for categories C through G or individual assistance due to a qualifying disaster event occurring in the 2018 or 2019 calendar years; or
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2 Secretarial Disaster Designation for a qualifying disaster event occurring in the 2018 or 2019 calendar years.
c A producer with a crop quality loss on acreage not physically located in a county that was eligible under paragraph b of this section will be eligible for the QLA Program for losses due to qualifying disaster events only if the producer provides supporting documentation from which the FSA
county committee determines that the crop quality loss on the unit was reasonably related to a qualifying disaster event as specified in this subpart. Supporting documentation may include furnishing climatological data from a reputable source or other information substantiating the claim of loss due to a qualifying disaster event.
760.1806

Ineligible losses.

a A loss is not eligible under this subpart if any of the following apply:
1 The cause of loss is determined by FSA to be the result of poor management decisions, poor farming practices, or drifting herbicides;
2 The loss could have been mitigated using good farming practices, including losses due to high moisture content that could be mitigated by following best practices for drying and storing the crop;
3 The qualifying disaster event occurred after the crop was harvested;
4 FSA or RMA have previously disapproved a notice of loss for the crop and disaster event, unless that notice of loss was disapproved solely because it was filed after the applicable deadline;
or 5 The cause of loss was due to:
i Conditions or events occurring outside of the applicable growing season for the crop;
ii Insect infestation;
iii Water contained or released by any governmental, public, or private dam or reservoir project if an easement exists on the acreage affected by the containment or release of the water;
iv Failure of a power supply or brownout; or v Failure to harvest or market the crop due to lack of a sufficient plan or resources.
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Miscellaneous provisions.

a All persons with a financial interest in a legal entity receiving payments under this subpart are jointly and severally liable for any refund, including related charges, that is determined to be due to FSA for any reason.
b In the event that any application under this subpart resulted from
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