Federal Register - December 13, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Rules and Regulations who exceed AGI may use a commodity certificate to repay MALs and receive a market loan gain. An alternative repayment rate does not apply to ELS
cotton or sugar. All recourse loans must be repaid at principal plus interest and cannot be forfeited.
This rule makes conforming changes to payment limitation references throughout 7 CFR parts 1421, 1425, 1427, and 1434.
Summary of MAL and LDP
Discretionary and Clarifying Changes In addition to implementing the 2018
Farm Bill changes, FSA is making changes resulting from a retrospective review of the MAL and LDP regulations.
Most of the changes are clarifying changes to make the regulations clear and consistent. Information regarding commodity certificate exchanges is now included in 7 CFR 1421.110 and 1427.22. That information is a technical correction as commodity certificates were reintroduced to the MAL program in Section 740 of Title VII of Division A of the Consolidated Appropriations Act, 2016 Pub. L. 114113, which amended section 166 of the Federal Agriculture Improvement and Reform Act of 1996 7 U.S.C. 7286. Beginning with 2015 crop year MALs, the Secretary has the authority to provide commodity certificates in the same terms and conditions as were in effect for the 2008 crop year for loans.
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New and Revised MAL and LDP
Definitions This rule adds a definition for commodity certificate exchange in 1421.3 and 1427.3. A commodity certificate exchange is the exchange of commodities pledged as collateral for a marketing assistance loan at a rate determined by CCC in the form of a commodity certificate bearing a dollar denomination. A commodity certificate may not be transferred or exchanged for the inventory of CCC.
This rule also revises the definition for market loan gain in 7 CFR part 1421 and adds a definition for market loan gain for upland cotton in 7 CFR
part 1427 to be consistent across all rules involving marketing assistance loans. A market loan gain is the loan rate, minus the announced repayment rate on loans repaid at a rate that is less than the loan rate. A producers AGI
must be below the limit as specified in 7 CFR parts 1421 and 1427 in order to be eligible to receive a market loan gain.
The changes are being made to add clarity and consistency in the regulations.
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Commodity Certificate Exchange Use of commodity certificates was reintroduced and made effective with the 2015 crop year MALs as authorized under section 740 of the Title VII of Division A of the Consolidated Appropriations Act, 2016 Pub. L. 114
113, by amending section 166 of the Federal Agriculture Improvement and Report Act of 1996 7 U.S.C. 7286 using the same terms and conditions in effect for the 2008 crop year. This rule revises the regulations to clarify the availability of commodity certificates at loan redemption.
Cotton The 2018 Farm Bill reauthorizes and extends existing cotton MAL and LDP
provisions, which are in 7 CFR part 1427. It also extends the authorizations for the Economic Adjustment Assistance for Users of Upland Cotton Program and ELS Cotton Competitiveness Payment Program.
This rule amends 7 CFR part 1427 to remove outdated references, and to clarify definitions consistent with the changes being made to 7 CFR part 1421.
As specified in section 1203b of the 2018 Farm Bill, the Economic Adjustment Assistance to Users of Upland Cotton will be referred to as Economic Adjustment Assistance for Textile Mills.
As specified in section 1204b of the 2018 Farm Bill, the regulations for the ELS Cotton Competitiveness Payment Program are amended to reflect the statutory change of the payment trigger from 134 percent to 113 percent.
Honey Section 1703a2 of the 2018 Farm Bill reauthorizes and extends existing honey MAL and LDP provisions with some modified numbers and removed the words payment limitations in 7
CFR 1434.1.
Miscellaneous Changes This rule makes a discretionary change in 7 CFR 1421.9 to allow DAFP
additional flexibility to adjust premiums and discounts and whether they are accounted for at the time of disbursement.
Throughout 7 CFR part 1421
nonsubstantive housekeeping changes are being made to the regulations to fix typographical errors and add to the clarity, readability, and consistency in the regulations. These changes do not represent substantive policy or administrative changes. These changes are in 7 CFR 1421.5, 1421.104, 1421.112, and 1421.417.
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Oriental Fruit Fly This final rule establishes provisions in 7 CFR part 756, for providing assistance as authorized by section 778
of Subtitle B of Title VII of Division N
of the Consolidated Appropriations Act, 2019 Pub. L. 1166, which appropriated $9 million to FSA for the purpose of making payments to producers affected by an Oriental fruit fly Bactrocera dorsalis quarantine as referenced in House Report 115232.
Funds will remain available until expended. The quarantine, which lasted from August 28, 2015 through February 13, 2016, was necessary and successful in eradicating the Oriental fruit fly.
Because the Non-Insured Crop Assistance Program NAP does not apply in instances of a state or federally declared quarantine and RMA does not offer a quarantine endorsement in Florida, the affected producers need relief. The Oriental Fruit Fly OFF
Program will provide payments to producers affected by the quarantine.
This rule specifies the administrative provisions, eligibility requirements, application procedures, and payment procedures for the OFF Program.
Oriental fruit flies were first detected in Miami-Dade County, Florida, on August 26, 2015. The Oriental fruit fly is considered one of the most destructive of the worlds fruit fly pests and attacks more than 430 different fruits, vegetables, and nuts. Population growth can be massive since females can produce hundreds of eggs infesting fruit and rendering it unsuitable for human consumption. The female deposits eggs under the skin of host fruit and the larvae infests the fruit. The detection of multiple flies triggered the State of Florida and Animal Plant Health and Inspection Service APHIS
to implement a quarantine in the Redland area of Miami-Dade County on August 28, 2015. The quarantine area was established and covered 98.65
square miles authorized in Florida Statute 581.031 and defined in 5B66
Florida Administrative Code. As part of the effort to eradicate the Oriental fruit fly, producers in the quarantine area were required to sign a compliance agreement that outlines the procedures necessary for the harvesting, handling, and postharvest of crops in the quarantined area. On February 13, 2016, APHIS rescinded the quarantine after three lifecycles elapsed without any new Oriental fruit fly detections.
Therefore, the quarantine was necessary and successful in eradicating the Oriental fruit fly. Due to the timing of the State of Florida and APHIS
implemented quarantine, crops were
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