81_FR_36971 81 FR 36861 - Notice of Funds Availability (NOFA); Cotton Ginning Cost-Share (CGCS) Program Payments to Cotton Producers

81 FR 36861 - Notice of Funds Availability (NOFA); Cotton Ginning Cost-Share (CGCS) Program Payments to Cotton Producers

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

Federal Register Volume 81, Issue 110 (June 8, 2016)

Page Range36861-36863
FR Document2016-13672

This NOFA announces the availability of cost-share funds to certain cotton producers of the United States, specifically for the 2015 cotton crop. Eligible CGCS participants will receive a one-time payment, calculated based on a cost-share not to exceed 40 percent of calculated ginning costs by region, the number of cotton acres that were planted, including failed acreage, for the 2015 crop year, and the percentage of share the participant had in the cotton. Similar to other Commodity Credit Corporation (CCC) programs, certain eligibility requirements apply, such as a $40,000 per individual or entity payment limit and a requirement that each participant's 3-year average adjusted gross income (AGI) be $900,000 or less. CGCS Program payments will be made to help the domestic cotton industry find new and improved ways to market cotton.

Federal Register, Volume 81 Issue 110 (Wednesday, June 8, 2016)
[Federal Register Volume 81, Number 110 (Wednesday, June 8, 2016)]
[Notices]
[Pages 36861-36863]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13672]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Notice of Funds Availability (NOFA); Cotton Ginning Cost-Share 
(CGCS) Program Payments to Cotton Producers

AGENCY: Commodity Credit Corporation and Farm Service Agency, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This NOFA announces the availability of cost-share funds to 
certain cotton producers of the United States, specifically for the 
2015 cotton crop. Eligible CGCS participants will receive a one-time 
payment, calculated based on a cost-share not to exceed 40 percent of 
calculated ginning costs by region, the number of cotton acres that 
were planted, including failed acreage, for the 2015 crop year, and the 
percentage of share the participant had in the cotton. Similar to other 
Commodity Credit Corporation (CCC) programs, certain eligibility 
requirements apply, such as a $40,000 per individual or entity payment 
limit and a requirement that each participant's 3-year average adjusted 
gross income (AGI) be $900,000 or less. CGCS Program payments will be 
made to help the domestic cotton industry find new and improved ways to 
market cotton.

DATES: Application period: June 20, 2016 through August 5, 2016.

FOR FURTHER INFORMATION CONTACT: Kelly Hereth, (202) 720-0448.

SUPPLEMENTARY INFORMATION: 

Background

    U.S. upland and extra-long staple (ELS) cotton producers are 
required to gin and bale cotton before either of the components of 
cotton (lint or seed) can be marketed, as there is no commerce in un-
ginned bales. Approximately 13 million bales were ginned for the 2015 
cotton crop year. There exists, however, 2014 cotton production 
carryover (ginned cotton inventory that has not yet been sold), as well 
as the 2015 cotton crop production some which has not been marketed. 
While the payments are based on ginning costs, the intended effect of 
the CGCS Program is to aid the broader marketing chain associated with 
cotton. For example, there is a direct cost to cotton producers 
associated with ginning for improved bale packing and storage to meet 
the ever increasing quality demands of the fiber industry, and there is 
a large domestic market for the cotton seed extracted during the 
ginning process.
    The state of the market has limited the ability of cotton producers 
to expand domestic markets, develop new and additional markets, 
maintain existing markets that would have otherwise shrunk and 
marketing facilities, and increase the uses for cotton. The Commodity 
Credit Corporation Charter Act (15 U.S.C. 714c(e)) includes authority 
for CCC to use its general powers to increase the domestic consumption 
of agricultural commodities (other than tobacco) by expanding or aiding 
in the expansion of domestic markets or by developing or aiding in the 
development of new and additional markets, marketing facilities, and 
uses for such commodities.
    The ginning of cotton is necessary prior to marketing the lint for 
fiber or the seed for oil or feed; therefore CCC is using its general 
authority to aid in the expansion and maintenance of domestic markets 
for cotton. Increased domestic consumption and uses for cotton as a 
result of the CGCS Program payments to cotton producers, based on 
cotton ginning costs, will aid more than just the farmers; as the 
cotton gins, cooperatives, marketers, cottonseed crushers, and other 
marketing facilities will indirectly benefit also.
    CGCS is being done as a NOFA, as opposed to a regulation, because 
it is a one-time payment to aid expansion and creation of new markets 
for cotton. Also, CGCS is based upon 2015 cotton crop acres which are 
already known to FSA through previously submitted acreage reports. 
Accordingly, there is no benefit for public comment on CGCS.
    The Farm Service Agency (FSA) will administer the CGCS Program on 
behalf of CCC, using CCC funds.

CGCS Description

    CGCS is a one-time payment to cotton producers. CGCS will be 
available to producers of upland and extra-long staple (ELS) cotton. 
CGCS payments will be available to those cotton producers who had a 
share in the 2015 cotton acres that were planted, including failed 
cotton acreage, and reported to FSA, including landowners who had a 
share interest and risk in the cotton crop and incurred ginning costs 
for the 2015 cotton crop.
    FSA will make approximately $300 million in CGCS payments to cotton 
producers. The maximum aggregate payment amount a person or legal 
entity is eligible for under CGCS is $40,000. The funds announced in 
this NOFA are not subject to sequestration.
    Most 2015 cotton crop producers have already submitted the required 
form FSA-578, ``Report of Acreage'', to FSA, as part of their 
participation in various FSA and CCC programs. The regulation in 7 CFR 
part 718 requires producers to report for various commodities, 
including the number of cotton acres that were planted, including 
failed acres, in the United States for their 2015 cotton crop and their 
percentage share of the reported 2015 cotton crop acreage. Accordingly, 
FSA has already acquired this information as previously reported to FSA 
on a FSA-578 or a crop acreage report to their crop insurance agent 
(both reports are referred to in this NOFA as the acreage report). If 
there were any errors in the previously submitted acreage report, the 
producer may go through the established FSA process to correct the 
reported information. Any such requests for correction are subject to 
review and require approval by FSA through the established process 
before they are accepted. Because FSA already possesses 2015 cotton 
acreage report data, we know who is potentially eligible to apply for 
the CGCS Program and will mail the application to such applicants. 
Applicants may also apply through an FSA county office.

Payment Limits, Eligible Persons, and Legal Entities

    CGCS payments are limited to $40,000 per person or legal entity.
    A person or legal entity is ineligible for payments if the person's 
or legal entity's AGI for the applicable compliance program year is 
more than $900,000. If a person with an indirect interest in a legal 
entity has AGI of more than $900,000, the CGCS payments subject to AGI 
compliance provisions to the legal entity will be reduced as calculated 
based on the percent interest of the person in the legal entity 
receiving the payment. The relevant years used to calculate AGI for 
CGCS are the 2011, 2012, and 2013 tax years. As with other FSA and CCC 
programs, AGI will be calculated based on the average income for the 3 
taxable years preceding the most immediately preceding complete taxable 
year for which benefits are requested.
    In addition to having a share in cotton planted in 2015, to be 
eligible for a CGCS Program payment, each applicant is required to be a 
person or legal entity

[[Page 36862]]

who was actively engaged in farming in 2015 and otherwise eligible for 
payment, as specified in 7 CFR part 1400, and who complies with 
requirements including, but not limited to, those pertaining to highly 
erodible land conservation and wetland conservation provisions 
(commonly referred to as the conservation compliance provisions) 
specified in 7 CFR part 12.
    Foreign persons are not eligible for payments. Federal, State, and 
local governments are not eligible for CGCS payments.
    Appeal regulations specified in 7 CFR parts 11 and 780 apply. FSA 
program requirements and determinations that are not in response to, or 
result from, an individual disputable set of facts in an individual 
participant's application for assistance are not matters that can be 
appealed.
    Payment eligibility, payment limits, and AGI limits are the same 
for CGCS Program payments as they have been for other FSA and CCC 
programs, for example the Cotton Transition Assistance Program (see 7 
CFR parts 1400 and 1412).

Payment Calculation

    The CGCS payment will be calculated as follows:
acres x share x CGCS payment rate

    Acres are the number of 2015 cotton crop acres (both upland and 
ELS) in which the applicant had an interest, as reported on their 
acreage report as planted (including failed acres, but not prevented 
planted acres).
    Share is the producer's or landowner's share of such acres.
    As shown in Table 1, the CGCS payment rate is 40 percent times the 
ginning cost. The ginning cost is the calculated average cost of 
ginning per acre in the production region. The applicable production 
region is the State in which the 2015 cotton crop (upland and ELS 
cotton) was planted (not where the farm operation is located).
    There are four production regions, consistent with the U.S. cotton 
industry's longstanding designation. The per-acre regional rates are 
defined in Table 1. Cotton acreage planted in 2015 in any state not 
listed in Table 1, will receive the regional rate based on where the 
2015 cotton acres are located, as determined by the Deputy 
Administrator.

                                       Table 1--Cotton Production Regions
----------------------------------------------------------------------------------------------------------------
                                                                                     Costs of
                Region                                   States                     ginning per    CGCS payment
                                                                                       acre          rate \1\
----------------------------------------------------------------------------------------------------------------
Southeast.............................  Alabama, Florida, Georgia, North                 $118.60          $47.44
                                         Carolina, South Carolina, Virginia.
Mid-South.............................  Arkansas, Illinois, Kentucky, Louisiana,          140.65           56.26
                                         Missouri, Mississippi, Tennessee.
Southwest.............................  Kansas, Oklahoma, Texas.................           92.43           36.97
West..................................  Arizona, California, New Mexico.........          243.53           97.41
----------------------------------------------------------------------------------------------------------------
\1\ The CGCS Payment Rate is 40 percent times the regional rate.

    To develop the costs in Table 1, FSA used the USDA Economic 
Research Service's calculation of cotton ginning costs, which is based 
on the Agricultural Resource Management Survey (ARMS). The data is 
based on a large survey of cotton producers in 2007 and was updated 
through 2014 using several indices that reflect annual changes in 
ginning costs. The per planted acre ginning costs were converted to 
regional averages weighted by each State's share of regional plantings 
during the most recent 5 years. In the ARMS data, no distinction is 
made between ginning costs for upland and ELS cotton, so the same rate 
will be applied to both varieties of cotton.
    For example, an applicant has 1,000 acres of upland cotton located 
in Texas and 500 acres of ELS cotton in New Mexico, and the applicant 
has 100 percent interest in all of the cotton reported for 2015 for the 
farm. Even though the farm operation is located in Texas, the 
applicable CGCS payment rate is based on where the cotton is planted. 
Therefore, for the acres located in Texas the CGCS payment rate is 
$36.97, and for the cotton acreage located in New Mexico, the CGCS 
payment rate is $97.41 (as shown in Table 1). Therefore, the result of 
the CGCS calculation would be $85,675 ((1,000 cotton acres in Texas x 
$36.97 per acre x 100 percent share) + (500 acres in New Mexico x 
$97.41 x 100 percent share)), but the CGCS payment to this applicant 
would be reduced to $40,000 because the CGCS payment limit is $40,000 
per person or legal entity.

Application and Eligible Applicants

    To apply for the CGCS Program, each applicant must submit a 
complete and valid CGCS application (CCC-882 form) to their recording 
FSA county office either in person, by mail, or by electronic means, 
including email and facsimile. The application period is from June 20, 
2016, through August 5, 2016. CGCS applications must be received by FSA 
by August 5, 2016. Applicants may revise their application and re-
submit it to FSA during the application period; the revised CGCS 
application must be received by FSA by August 5, 2016. Any application 
received by FSA after August 5, 2016, will not be considered and will 
be ineligible for any CGCS payment. The application must include, but 
is not limited to, the number of 2015 planted acres of cotton (upland 
and ELS cotton) on the farm, the farm serial number, and tract number 
of the farm where the cotton acreage was reported. The applicant will 
be required to submit evidence upon request, such as seed receipts, 
custom harvesting receipts, or bale gin lists, to substantiate either 
the claimed share interest in the cotton or the number of cotton acres 
reported for the 2015 crop year.
    In order to be eligible for CGCS, applicants are required to have 
reported their 2015 crop year planted cotton, including failed acreage, 
to FSA using the FSA-578 acreage report. Only the number of cotton 
acres reported on the FSA-578 acreage report, and the producer's share 
in the planted, including failed, cotton acreage for the 2015 crop year 
will be eligible for consideration for a CGCS payment. In the event 
that there are determined acres of planted, including failed, cotton 
(upland and ELS cotton) crop acreage for 2015, as verified by FSA in 
carrying out acreage reporting compliance activities, then determined 
acres will be used in place of the reported acres. (Standard FSA 
acreage report compliance activities include verifying the number of 
reported acres; the results are referred to as ``determined acres.'')
    The applicant's share interest in cotton acres on a CGCS 
application cannot be greater than the share interest in cotton acres 
as reported on the

[[Page 36863]]

acreage report. FSA will verify and confirm the applicant's share 
interest in cotton acres reported on the CGCS application by comparing 
it to the applicant's share interest in the cropland as reported on 
that farm's acreage report for the 2015 crop year. For example, if a 
farm has 50 acres of cotton and two producers report equal shares of 
the 50 acres of cotton, each must each have a 100 percent share 
interest in at least 25 cotton acres (or 50 percent share in the 50 
reported cotton acres) reported on the farm acreage report for the 2015 
crop year to support their reported share of cotton acres on that farm.
    If an eligible applicant has sold or leased a farm that produced 
cotton in 2015, the applicant may assign the CGCS payment by completing 
form CCC-36. However, under no circumstances will CCC pay both the 2015 
producer and the 2016 producer of such cotton.
    As noted above, if there are any corrections required for acreage 
reports, they may be made, however corrections related to upland or ELS 
cotton acres or shares must be received by FSA by August 5, 2016, the 
CGCS Program application deadline in order to be used to calculate the 
CGCS payment. Any correction to 2015 cotton crop acres made to the 
acreage report after August 5, 2016, is not eligible to be considered 
for CGCS.

Process for Evaluation of CGCS Applications and Approval of Payments

    FSA will review each CCC-882 application to determine eligibility 
by verifying that the application is complete and the number of cotton 
acres the applicant certified on the application for the 2015 crop year 
is the same as reported on the FSA-578 acreage report.
    When there are multiple eligible applicants for a farm, FSA will 
approve an application for the CGCS Program and approve the division of 
payment when all the following, as applicable, occur or have been 
determined to have occurred:
    (1) Each landlord, tenant, and sharecropper that apply sign their 
own CGCS Program application, and their combined payment shares 
recorded on the application when added together cannot exceed 100 
percent of the shares recorded on the acreage report for the 2015 
cotton crop for the farm, and neither the landlord, tenant, nor 
sharecropper can receive 100 percent of CGCS payment for the farm;
    (2) CCC determines that the interests of tenants and sharecroppers 
are being protected by confirming the shares are consistent with the 
acreage report;
    (3) The applicant, upon the FSA county office committee's request, 
if necessary, will provide a copy of the lease agreement; and
    (4) CCC determines that the payment shares do not circumvent either 
the provisions of this NOFA or the provisions of 7 CFR part 1400.
    The result of an approved application will be a one-time payment, 
consistent with the terms specified in this NOFA and the payment 
application. All applications are subject to the approval by FSA on 
behalf of CCC, and FSA will not approve ineligible applications.

Provisions Requiring Refund to FSA

    In the event that any application for a CGCS payment resulted from 
erroneous information or a miscalculation, the payment will be 
recalculated and the participant must refund any excess to FSA with 
interest to be calculated from the date of the disbursement to the 
participant. If for whatever reason FSA determines that the applicant 
misrepresented either the acreage or share of cotton acreage or both, 
or if the CGCS payment would exceed the participant's payment based 
upon correct acreage and share, the application will be disapproved and 
the full CGCS payment for that crop and participant will be required to 
be refunded to FSA with interest from date of disbursement. If any 
corrections to the 2015 cotton crop acres or shares are made to the 
acreage report after August 5, 2016, and would have resulted in a lower 
CGCS payment, the applicant will be required to refund the difference 
with interest from date of disbursement.
    The liability of anyone for any penalty or sanction resulting from 
a CGCS application, or for any refund to FSA or related charge is in 
addition to any other liability of such person under any civil or 
criminal fraud statute or any other provision of law including, but not 
limited to: 18 U.S.C. 286, 287, 371, 641, 651, 1001, and 1014; 15 
U.S.C. 714; and 31 U.S.C. 3729.

Paperwork Reduction Act Requirements

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), OMB approved an emergency information collection request 
on CGCS so FSA can begin the application period upon publication of 
this NOFA.

Environmental Review

    Because this is a one-time payment, there are no impacts to the 
human environment as defined by NEPA and, as such, no Environmental 
Assessment or Environmental Impact Statement will be prepared.

Val Dolcini,
Administrator, Farm Service Agency, and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 2016-13672 Filed 6-7-16; 8:45 am]
BILLING CODE 3410-05-P



                                                                                Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices                                             36861

                                                  for OMB approval. All comments will                     effect of the CGCS Program is to aid the                  FSA will make approximately $300
                                                  also become a matter of public record.                  broader marketing chain associated with                million in CGCS payments to cotton
                                                    Done in Washington, DC, this 2nd day of               cotton. For example, there is a direct                 producers. The maximum aggregate
                                                  June 2016.                                              cost to cotton producers associated with               payment amount a person or legal entity
                                                  Kevin Shea,                                             ginning for improved bale packing and                  is eligible for under CGCS is $40,000.
                                                  Administrator, Animal and Plant Health                  storage to meet the ever increasing                    The funds announced in this NOFA are
                                                  Inspection Service.                                     quality demands of the fiber industry,                 not subject to sequestration.
                                                                                                          and there is a large domestic market for                  Most 2015 cotton crop producers have
                                                  [FR Doc. 2016–13567 Filed 6–7–16; 8:45 am]
                                                                                                          the cotton seed extracted during the                   already submitted the required form
                                                  BILLING CODE 3410–34–P
                                                                                                          ginning process.                                       FSA–578, ‘‘Report of Acreage’’, to FSA,
                                                                                                             The state of the market has limited the             as part of their participation in various
                                                  DEPARTMENT OF AGRICULTURE                               ability of cotton producers to expand                  FSA and CCC programs. The regulation
                                                                                                          domestic markets, develop new and                      in 7 CFR part 718 requires producers to
                                                  Commodity Credit Corporation                            additional markets, maintain existing                  report for various commodities,
                                                                                                          markets that would have otherwise                      including the number of cotton acres
                                                  Notice of Funds Availability (NOFA);                    shrunk and marketing facilities, and                   that were planted, including failed
                                                  Cotton Ginning Cost-Share (CGCS)                        increase the uses for cotton. The                      acres, in the United States for their 2015
                                                  Program Payments to Cotton                              Commodity Credit Corporation Charter                   cotton crop and their percentage share
                                                  Producers                                               Act (15 U.S.C. 714c(e)) includes                       of the reported 2015 cotton crop
                                                                                                          authority for CCC to use its general                   acreage. Accordingly, FSA has already
                                                  AGENCY: Commodity Credit Corporation                                                                           acquired this information as previously
                                                  and Farm Service Agency, USDA.                          powers to increase the domestic
                                                                                                          consumption of agricultural                            reported to FSA on a FSA–578 or a crop
                                                  ACTION: Notice.                                                                                                acreage report to their crop insurance
                                                                                                          commodities (other than tobacco) by
                                                  SUMMARY:   This NOFA announces the                      expanding or aiding in the expansion of                agent (both reports are referred to in this
                                                  availability of cost-share funds to                     domestic markets or by developing or                   NOFA as the acreage report). If there
                                                  certain cotton producers of the United                  aiding in the development of new and                   were any errors in the previously
                                                  States, specifically for the 2015 cotton                additional markets, marketing facilities,              submitted acreage report, the producer
                                                  crop. Eligible CGCS participants will                   and uses for such commodities.                         may go through the established FSA
                                                  receive a one-time payment, calculated                                                                         process to correct the reported
                                                                                                             The ginning of cotton is necessary
                                                  based on a cost-share not to exceed 40                                                                         information. Any such requests for
                                                                                                          prior to marketing the lint for fiber or
                                                  percent of calculated ginning costs by                                                                         correction are subject to review and
                                                                                                          the seed for oil or feed; therefore CCC
                                                  region, the number of cotton acres that                                                                        require approval by FSA through the
                                                                                                          is using its general authority to aid in
                                                  were planted, including failed acreage,                                                                        established process before they are
                                                                                                          the expansion and maintenance of
                                                  for the 2015 crop year, and the                                                                                accepted. Because FSA already
                                                                                                          domestic markets for cotton. Increased
                                                                                                                                                                 possesses 2015 cotton acreage report
                                                  percentage of share the participant had                 domestic consumption and uses for
                                                                                                                                                                 data, we know who is potentially
                                                  in the cotton. Similar to other                         cotton as a result of the CGCS Program                 eligible to apply for the CGCS Program
                                                  Commodity Credit Corporation (CCC)                      payments to cotton producers, based on                 and will mail the application to such
                                                  programs, certain eligibility                           cotton ginning costs, will aid more than               applicants. Applicants may also apply
                                                  requirements apply, such as a $40,000                   just the farmers; as the cotton gins,                  through an FSA county office.
                                                  per individual or entity payment limit                  cooperatives, marketers, cottonseed
                                                  and a requirement that each                             crushers, and other marketing facilities               Payment Limits, Eligible Persons, and
                                                  participant’s 3-year average adjusted                   will indirectly benefit also.                          Legal Entities
                                                  gross income (AGI) be $900,000 or less.                    CGCS is being done as a NOFA, as                       CGCS payments are limited to
                                                  CGCS Program payments will be made                      opposed to a regulation, because it is a               $40,000 per person or legal entity.
                                                  to help the domestic cotton industry                    one-time payment to aid expansion and                     A person or legal entity is ineligible
                                                  find new and improved ways to market                    creation of new markets for cotton. Also,              for payments if the person’s or legal
                                                  cotton.                                                 CGCS is based upon 2015 cotton crop                    entity’s AGI for the applicable
                                                  DATES: Application period: June 20,                     acres which are already known to FSA                   compliance program year is more than
                                                  2016 through August 5, 2016.                            through previously submitted acreage                   $900,000. If a person with an indirect
                                                  FOR FURTHER INFORMATION CONTACT:                        reports. Accordingly, there is no benefit              interest in a legal entity has AGI of more
                                                  Kelly Hereth, (202) 720–0448.                           for public comment on CGCS.                            than $900,000, the CGCS payments
                                                  SUPPLEMENTARY INFORMATION:                                 The Farm Service Agency (FSA) will                  subject to AGI compliance provisions to
                                                                                                          administer the CGCS Program on behalf                  the legal entity will be reduced as
                                                  Background                                              of CCC, using CCC funds.                               calculated based on the percent interest
                                                     U.S. upland and extra-long staple                                                                           of the person in the legal entity
                                                                                                          CGCS Description
                                                  (ELS) cotton producers are required to                                                                         receiving the payment. The relevant
                                                  gin and bale cotton before either of the                  CGCS is a one-time payment to cotton                 years used to calculate AGI for CGCS are
                                                  components of cotton (lint or seed) can                 producers. CGCS will be available to                   the 2011, 2012, and 2013 tax years. As
                                                  be marketed, as there is no commerce in                 producers of upland and extra-long                     with other FSA and CCC programs, AGI
                                                  un-ginned bales. Approximately 13                       staple (ELS) cotton. CGCS payments                     will be calculated based on the average
                                                  million bales were ginned for the 2015                  will be available to those cotton                      income for the 3 taxable years preceding
mstockstill on DSK3G9T082PROD with NOTICES




                                                  cotton crop year. There exists, however,                producers who had a share in the 2015                  the most immediately preceding
                                                  2014 cotton production carryover                        cotton acres that were planted,                        complete taxable year for which benefits
                                                  (ginned cotton inventory that has not                   including failed cotton acreage, and                   are requested.
                                                  yet been sold), as well as the 2015                     reported to FSA, including landowners                     In addition to having a share in cotton
                                                  cotton crop production some which has                   who had a share interest and risk in the               planted in 2015, to be eligible for a
                                                  not been marketed. While the payments                   cotton crop and incurred ginning costs                 CGCS Program payment, each applicant
                                                  are based on ginning costs, the intended                for the 2015 cotton crop.                              is required to be a person or legal entity


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                                                  36862                                 Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices

                                                  who was actively engaged in farming in                              assistance are not matters that can be                                Share is the producer’s or
                                                  2015 and otherwise eligible for                                     appealed.                                                           landowner’s share of such acres.
                                                  payment, as specified in 7 CFR part                                   Payment eligibility, payment limits,                                As shown in Table 1, the CGCS
                                                  1400, and who complies with                                         and AGI limits are the same for CGCS                                payment rate is 40 percent times the
                                                  requirements including, but not limited                             Program payments as they have been for                              ginning cost. The ginning cost is the
                                                  to, those pertaining to highly erodible                             other FSA and CCC programs, for                                     calculated average cost of ginning per
                                                  land conservation and wetland                                       example the Cotton Transition                                       acre in the production region. The
                                                  conservation provisions (commonly                                   Assistance Program (see 7 CFR parts                                 applicable production region is the State
                                                  referred to as the conservation                                     1400 and 1412).                                                     in which the 2015 cotton crop (upland
                                                  compliance provisions) specified in 7                                                                                                   and ELS cotton) was planted (not where
                                                  CFR part 12.                                                        Payment Calculation                                                 the farm operation is located).
                                                    Foreign persons are not eligible for                                The CGCS payment will be calculated                                 There are four production regions,
                                                  payments. Federal, State, and local                                 as follows:                                                         consistent with the U.S. cotton
                                                  governments are not eligible for CGCS                                                                                                   industry’s longstanding designation.
                                                  payments.                                                           acres × share × CGCS payment rate                                   The per-acre regional rates are defined
                                                    Appeal regulations specified in 7 CFR                               Acres are the number of 2015 cotton                               in Table 1. Cotton acreage planted in
                                                  parts 11 and 780 apply. FSA program                                 crop acres (both upland and ELS) in                                 2015 in any state not listed in Table 1,
                                                  requirements and determinations that                                which the applicant had an interest, as                             will receive the regional rate based on
                                                  are not in response to, or result from, an                          reported on their acreage report as                                 where the 2015 cotton acres are located,
                                                  individual disputable set of facts in an                            planted (including failed acres, but not                            as determined by the Deputy
                                                  individual participant’s application for                            prevented planted acres).                                           Administrator.

                                                                                                                    TABLE 1—COTTON PRODUCTION REGIONS
                                                                                                                                                                                                              Costs of      CGCS
                                                                Region                                                                         States                                                         ginning      payment
                                                                                                                                                                                                              per acre      rate 1

                                                  Southeast ..........................      Alabama, Florida, Georgia, North Carolina, South Carolina, Virginia .....................                            $118.60       $47.44
                                                  Mid-South ..........................      Arkansas, Illinois, Kentucky, Louisiana, Missouri, Mississippi, Tennessee ............                                140.65        56.26
                                                  Southwest .........................       Kansas, Oklahoma, Texas .......................................................................................        92.43        36.97
                                                  West ..................................   Arizona, California, New Mexico ..............................................................................        243.53        97.41
                                                     1 The   CGCS Payment Rate is 40 percent times the regional rate.


                                                     To develop the costs in Table 1, FSA                             CGCS calculation would be $85,675                                   cotton acreage was reported. The
                                                  used the USDA Economic Research                                     ((1,000 cotton acres in Texas × $36.97                              applicant will be required to submit
                                                  Service’s calculation of cotton ginning                             per acre × 100 percent share) + (500                                evidence upon request, such as seed
                                                  costs, which is based on the                                        acres in New Mexico × $97.41 × 100                                  receipts, custom harvesting receipts, or
                                                  Agricultural Resource Management                                    percent share)), but the CGCS payment                               bale gin lists, to substantiate either the
                                                  Survey (ARMS). The data is based on a                               to this applicant would be reduced to                               claimed share interest in the cotton or
                                                  large survey of cotton producers in 2007                            $40,000 because the CGCS payment                                    the number of cotton acres reported for
                                                  and was updated through 2014 using                                  limit is $40,000 per person or legal                                the 2015 crop year.
                                                  several indices that reflect annual                                 entity.                                                               In order to be eligible for CGCS,
                                                  changes in ginning costs. The per                                                                                                       applicants are required to have reported
                                                                                                                      Application and Eligible Applicants
                                                  planted acre ginning costs were                                                                                                         their 2015 crop year planted cotton,
                                                  converted to regional averages weighted                                To apply for the CGCS Program, each                              including failed acreage, to FSA using
                                                  by each State’s share of regional                                   applicant must submit a complete and                                the FSA–578 acreage report. Only the
                                                  plantings during the most recent 5                                  valid CGCS application (CCC–882 form)                               number of cotton acres reported on the
                                                  years. In the ARMS data, no distinction                             to their recording FSA county office                                FSA–578 acreage report, and the
                                                  is made between ginning costs for                                   either in person, by mail, or by                                    producer’s share in the planted,
                                                  upland and ELS cotton, so the same rate                             electronic means, including email and                               including failed, cotton acreage for the
                                                  will be applied to both varieties of                                facsimile. The application period is                                2015 crop year will be eligible for
                                                  cotton.                                                             from June 20, 2016, through August 5,                               consideration for a CGCS payment. In
                                                     For example, an applicant has 1,000                              2016. CGCS applications must be                                     the event that there are determined
                                                  acres of upland cotton located in Texas                             received by FSA by August 5, 2016.                                  acres of planted, including failed, cotton
                                                  and 500 acres of ELS cotton in New                                  Applicants may revise their application                             (upland and ELS cotton) crop acreage
                                                  Mexico, and the applicant has 100                                   and re-submit it to FSA during the                                  for 2015, as verified by FSA in carrying
                                                  percent interest in all of the cotton                               application period; the revised CGCS                                out acreage reporting compliance
                                                  reported for 2015 for the farm. Even                                application must be received by FSA by                              activities, then determined acres will be
                                                  though the farm operation is located in                             August 5, 2016. Any application                                     used in place of the reported acres.
                                                  Texas, the applicable CGCS payment                                  received by FSA after August 5, 2016,                               (Standard FSA acreage report
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                                                  rate is based on where the cotton is                                will not be considered and will be                                  compliance activities include verifying
                                                  planted. Therefore, for the acres located                           ineligible for any CGCS payment. The                                the number of reported acres; the results
                                                  in Texas the CGCS payment rate is                                   application must include, but is not                                are referred to as ‘‘determined acres.’’)
                                                  $36.97, and for the cotton acreage                                  limited to, the number of 2015 planted                                The applicant’s share interest in
                                                  located in New Mexico, the CGCS                                     acres of cotton (upland and ELS cotton)                             cotton acres on a CGCS application
                                                  payment rate is $97.41 (as shown in                                 on the farm, the farm serial number, and                            cannot be greater than the share interest
                                                  Table 1). Therefore, the result of the                              tract number of the farm where the                                  in cotton acres as reported on the


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                                                                                Federal Register / Vol. 81, No. 110 / Wednesday, June 8, 2016 / Notices                                                  36863

                                                  acreage report. FSA will verify and                     protected by confirming the shares are                 as such, no Environmental Assessment
                                                  confirm the applicant’s share interest in               consistent with the acreage report;                    or Environmental Impact Statement will
                                                  cotton acres reported on the CGCS                         (3) The applicant, upon the FSA                      be prepared.
                                                  application by comparing it to the                      county office committee’s request, if
                                                                                                                                                                 Val Dolcini,
                                                  applicant’s share interest in the                       necessary, will provide a copy of the
                                                                                                          lease agreement; and                                   Administrator, Farm Service Agency, and
                                                  cropland as reported on that farm’s
                                                                                                                                                                 Executive Vice President, Commodity Credit
                                                  acreage report for the 2015 crop year.                    (4) CCC determines that the payment
                                                                                                                                                                 Corporation.
                                                  For example, if a farm has 50 acres of                  shares do not circumvent either the
                                                                                                                                                                 [FR Doc. 2016–13672 Filed 6–7–16; 8:45 am]
                                                  cotton and two producers report equal                   provisions of this NOFA or the
                                                                                                                                                                 BILLING CODE 3410–05–P
                                                  shares of the 50 acres of cotton, each                  provisions of 7 CFR part 1400.
                                                  must each have a 100 percent share                        The result of an approved application
                                                  interest in at least 25 cotton acres (or 50             will be a one-time payment, consistent
                                                                                                                                                                 DEPARTMENT OF AGRICULTURE
                                                  percent share in the 50 reported cotton                 with the terms specified in this NOFA
                                                  acres) reported on the farm acreage                     and the payment application. All                       Farm Service Agency
                                                  report for the 2015 crop year to support                applications are subject to the approval
                                                  their reported share of cotton acres on                 by FSA on behalf of CCC, and FSA will                  Submission for OMB Review;
                                                  that farm.                                              not approve ineligible applications.                   Comment Request
                                                     If an eligible applicant has sold or
                                                                                                          Provisions Requiring Refund to FSA                     June 2, 2016.
                                                  leased a farm that produced cotton in
                                                  2015, the applicant may assign the                         In the event that any application for                 The Department of Agriculture has
                                                  CGCS payment by completing form                         a CGCS payment resulted from                           submitted the following information
                                                  CCC–36. However, under no                               erroneous information or a                             collection requirement(s) to OMB for
                                                  circumstances will CCC pay both the                     miscalculation, the payment will be                    review and clearance under the
                                                  2015 producer and the 2016 producer of                  recalculated and the participant must                  Paperwork Reduction Act of 1995,
                                                  such cotton.                                            refund any excess to FSA with interest                 Public Law 104–13. Comments are
                                                     As noted above, if there are any                     to be calculated from the date of the                  required regarding (1) whether the
                                                  corrections required for acreage reports,               disbursement to the participant. If for                collection of information is necessary
                                                  they may be made, however corrections                   whatever reason FSA determines that                    for the proper performance of the
                                                  related to upland or ELS cotton acres or                the applicant misrepresented either the                functions of the agency, including
                                                  shares must be received by FSA by                       acreage or share of cotton acreage or                  whether the information will have
                                                  August 5, 2016, the CGCS Program                        both, or if the CGCS payment would                     practical utility; (2) the accuracy of the
                                                  application deadline in order to be used                exceed the participant’s payment based                 agency’s estimate of burden including
                                                  to calculate the CGCS payment. Any                      upon correct acreage and share, the                    the validity of the methodology and
                                                  correction to 2015 cotton crop acres                    application will be disapproved and the                assumptions used; (3) ways to enhance
                                                  made to the acreage report after August                 full CGCS payment for that crop and                    the quality, utility and clarity of the
                                                  5, 2016, is not eligible to be considered               participant will be required to be                     information to be collected; and (4)
                                                  for CGCS.                                               refunded to FSA with interest from date                ways to minimize the burden of the
                                                                                                          of disbursement. If any corrections to                 collection of information on those who
                                                  Process for Evaluation of CGCS                                                                                 are to respond, including through the
                                                                                                          the 2015 cotton crop acres or shares are
                                                  Applications and Approval of                                                                                   use of appropriate automated,
                                                                                                          made to the acreage report after August
                                                  Payments                                                                                                       electronic, mechanical, or other
                                                                                                          5, 2016, and would have resulted in a
                                                    FSA will review each CCC–882                          lower CGCS payment, the applicant will                 technological collection techniques or
                                                  application to determine eligibility by                 be required to refund the difference                   other forms of information technology.
                                                  verifying that the application is                       with interest from date of disbursement.                 Comments regarding this information
                                                  complete and the number of cotton                          The liability of anyone for any penalty             collection received by July 8, 2016 will
                                                  acres the applicant certified on the                    or sanction resulting from a CGCS                      be considered. Written comments
                                                  application for the 2015 crop year is the               application, or for any refund to FSA or               should be addressed to: Desk Officer for
                                                  same as reported on the FSA–578                         related charge is in addition to any other             Agriculture, Office of Information and
                                                  acreage report.                                         liability of such person under any civil               Regulatory Affairs, Office of
                                                    When there are multiple eligible                      or criminal fraud statute or any other                 Management and Budget (OMB), New
                                                  applicants for a farm, FSA will approve                 provision of law including, but not                    Executive Office Building, 725 17th
                                                  an application for the CGCS Program                     limited to: 18 U.S.C. 286, 287, 371, 641,              Street NW., Washington, DC 20502.
                                                  and approve the division of payment                     651, 1001, and 1014; 15 U.S.C. 714; and                Commenters are encouraged to submit
                                                  when all the following, as applicable,                  31 U.S.C. 3729.                                        their comments to OMB via email to:
                                                  occur or have been determined to have                                                                          OIRA_Submission@OMB.EOP.GOV or
                                                  occurred:                                               Paperwork Reduction Act                                fax (202) 395–5806 and to Departmental
                                                    (1) Each landlord, tenant, and                        Requirements                                           Clearance Office, USDA, OCIO, Mail
                                                  sharecropper that apply sign their own                    In accordance with the Paperwork                     Stop 7602, Washington, DC 20250–
                                                  CGCS Program application, and their                     Reduction Act of 1995 (44 U.S.C.                       7602. Copies of the submission(s) may
                                                  combined payment shares recorded on                     chapter 35), OMB approved an                           be obtained by calling (202) 720–8958.
                                                  the application when added together                     emergency information collection                         An agency may not conduct or
                                                  cannot exceed 100 percent of the shares                                                                        sponsor a collection of information
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                                                                                                          request on CGCS so FSA can begin the
                                                  recorded on the acreage report for the                  application period upon publication of                 unless the collection of information
                                                  2015 cotton crop for the farm, and                      this NOFA.                                             displays a currently valid OMB control
                                                  neither the landlord, tenant, nor                                                                              number and the agency informs
                                                  sharecropper can receive 100 percent of                 Environmental Review                                   potential persons who are to respond to
                                                  CGCS payment for the farm;                                Because this is a one-time payment,                  the collection of information that such
                                                    (2) CCC determines that the interests                 there are no impacts to the human                      persons are not required to respond to
                                                  of tenants and sharecroppers are being                  environment as defined by NEPA and,                    the collection of information unless it


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Document Created: 2016-06-08 03:10:39
Document Modified: 2016-06-08 03:10:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesApplication period: June 20, 2016 through August 5, 2016.
ContactKelly Hereth, (202) 720-0448.
FR Citation81 FR 36861 

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