82 FR 48788 - Notice of Funds Availability (NOFA); Dairy Assistance Program for Puerto Rico (DAP-PR) in Response to 2017 Hurricanes

DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

Federal Register Volume 82, Issue 202 (October 20, 2017)

This NOFA is in response to the devastation to dairy operations left by 2017 hurricanes in Puerto Rico. This NOFA announces the availability of an estimated $12 million to provide assistance to dairy operations in Puerto Rico for buying feed from feed dealers in Puerto Rico. Each dairy operation in Puerto Rico can apply to the Farm Service Agency (FSA) to receive a voucher to purchase a one-month supply of feed for 100 percent of the feed cost, as calculated by FSA. At the discretion of the Secretary of Agriculture, additional assistance may be provided for additional days of feed or for purchasing fuel if funds remain available, taking into consideration, among other things, the value of the feed vouchers. DAP-PR assistance will be provided to help the dairy industry in Puerto Rico with the production and marketing of dairy.

[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Notices]
[Pages 48788-48789]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22868]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Notice of Funds Availability (NOFA); Dairy Assistance Program for 
Puerto Rico (DAP-PR) in Response to 2017 Hurricanes

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

ACTION: Notice.

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SUMMARY: This NOFA is in response to the devastation to dairy 
operations left by 2017 hurricanes in Puerto Rico. This NOFA announces 
the availability of an estimated $12 million to provide assistance to 
dairy operations in Puerto Rico for buying feed from feed dealers in 
Puerto Rico. Each dairy operation in Puerto Rico can apply to the Farm 
Service Agency (FSA) to receive a voucher to purchase a one-month 
supply of feed for 100 percent of the feed cost, as calculated by FSA. 
At the discretion of the Secretary of Agriculture, additional 
assistance may be provided for additional days of feed or for 
purchasing fuel if funds remain available, taking into consideration, 
among other things, the value of the feed vouchers. DAP-PR assistance 
will be provided to help the dairy industry in Puerto Rico with the 
production and marketing of dairy.

DATES: Application period: October 20, 2017 through December 1, 2017.

FOR FURTHER INFORMATION CONTACT: Lisa Berry, (202) 720-7641.

SUPPLEMENTARY INFORMATION:

Background

    Certain 2017 hurricanes caused widespread destruction in Puerto 
Rico, including to dairy operations. Dairy operations in Puerto Rico 
suffered intense damage in late September, 2017. Puerto Rico and its 
residents continue to suffer severe hardships related to the 
availability of electricity, fuel, and water, among other things. As a 
result of the 2017 hurricanes, dairy operations in Puerto Rico face the 
possibility of financial and other, actual losses to their dairy 
operation due to amount of and availability of feed for their animals 
and lack of electricity to run their dairy operations until recovery 
operations are able to stabilize conditions on Puerto Rico. There are 
an estimated 94,000 dairy cows, heifers, and other livestock, such as 
bulls necessary for a dairy operation as part of Puerto Rico's 277 
dairy operations. Dairy feed and fuel are both available on Puerto 
Rico; however, there are various challenges to dairy operations, 
including actual feed surcharges and the potential for additional 
surcharges, increasing the cost of feed to the dairy operations, and 
the recent preference of vendors subsequent to the hurricanes to be 
paid only in cash or certified check instead of their usual policy, 
prior to the hurricanes, to allow dairy operations to pay for feed with 
credit.
    The Commodity Credit Corporation Charter (CCC) Act (15 U.S.C. 
714c(b)) includes authority for CCC to use its general powers to make 
available materials and facilities required in connection with the 
production and marketing of agricultural commodities (other than 
tobacco). The procurement of feed and fuel for the dairy sector in 
Puerto Rico is required in connection with the production and marketing 
of dairy in Puerto Rico.
    DAP-PR is being implemented as a NOFA, as opposed to a regulation, 
because it is one-time assistance to help Puerto Rico dairy operations 
purchase feed in connection with the production and marketing of dairy. 
FSA has designed DAP-PR as a simplified, stream-lined method to provide 
assistance as quickly as possible to dairy operations in Puerto Rico 
given the extent of the disaster and the resulting need for feed 
assistance.
    FSA will administer DAP-PR on behalf of the Commodity Credit 
Corporation (CCC), using CCC funds.

DAP-PR Description

    DAP-PR is anticipated to provide an estimated $12 million to 
provide vouchers to dairy operations in Puerto Rico for acquiring feed 
from feed dealers in Puerto Rico. Each licensed dairy operation can 
apply to receive a voucher to acquire one-month supply of feed for 100 
percent of the feed cost, as calculated by FSA. The value of the 
voucher does not guarantee a given quantity of feed. The feed may last 
less or more than 30 days, depending upon the feeding requirements of 
each dairy operation and how much feed is acquired.
    FSA will prepare one voucher for the value of the required feed 
needs for each eligible dairy operation on Puerto Rico, as determined 
by FSA. The operation may elect to use the whole value of the voucher 
at one time, or may elect to use a portion of the voucher, up to 4 
times, not to exceed the value of the voucher. The value of the voucher 
expires 45 days from the date approved by FSA. If any value remains on 
the voucher after it expires, that value may not be used by the dairy 
operation.
    FSA, on behalf of CCC, through the vouchers themselves, will enter 
into agreements with Puerto Rican feed dealers to accept the vouchers 
from dairy operations. FSA will reimburse the dealers for the feed 
acquired via the vouchers. The voucher can only be used to acquire feed 
from the vendors and for no other purpose, including paying down any 
existing debt owed by a dairy operation or individual or producer 
affiliated with that dairy operation to a vendor.

Application and Eligible Applicants

    Each dairy operation in Puerto Rico is licensed by the Department 
of Agriculture of Puerto Rico; as a result, FSA has received certain 
information from the Puerto Rican Department of Agriculture about each 
dairy, including, the name, address, contact information, and number of 
head of cattle. The information was compiled as of August 2017. An 
application, on a form determined by FSA, will include the number of 
dairy head as reported to FSA by the Puerto Rican Department of 
Agriculture, and should only reflect the number of live, eligible dairy 
cows at the time of application. If the number of cattle on the 
application is correct, the dairy operation will certify as such on

[[Page 48789]]

the application. If the number of head has changed due to animal deaths 
or sales, the dairy operation must correct the number and certify to 
the change on the application. The dairy operation may apply for the 
Livestock Indemnity Program (LIP) If any cattle have died due to a LIP 
eligible cause of loss and all other LIP eligibility conditions and LIP 
payment limitations are met. The application period begins October 20, 
2017. DAP-PR applications must be received by FSA by December 1, 2017.

Approval for Vouchers

    The result of an approved feed application will be a one-time 
maximum eligible amount for feed to be acquired by the eligible dairy 
operation, consistent with the terms specified in this NOFA. The 
acquisition of the total amount of feed determined under the DAP-PR for 
the 30 days can be spread among up to 4 feed acquisitions under the one 
voucher. As the dairy operation acquires feed from the vendor(s), FSA 
employees will deduct the value of the feed acquired, not to exceed the 
calculated eligible maximum. The vouchers can only be used to acquire 
feedstuff for the cattle on that dairy operation to consume, acquired 
from the feed vendor(s) and cannot be used for any other purpose. All 
applications are subject to the approval by FSA on behalf of CCC; FSA 
will not approve ineligible applications.

Voucher Calculation

    The maximum value of the voucher will be determined based on (1) 
$101 per adult cow, bull, and heifers over 2 years old times the number 
of head in each of those categories in the dairy operation and (2) $34 
per heifers under 2 years old and young bulls and calves times the 
number of head in each of those categories in the dairy operation. The 
total will be the value of the voucher for the dairy operation.

Additional Assistance

    If funds remain available under the DAP-PR, and if the Secretary of 
Agriculture determines that additional assistance can be provided, the 
acquisition of feed supply for days greater than a one-month supply may 
be made available under DAP-PR. In addition, at the sole discretion of 
the Secretary of Agriculture, DAP-PR may be made available for the 
purchase of fuel for generators.

Provisions Requiring Refund to FSA

    In the event that any application for a DAP-PR voucher resulted 
from erroneous information or a miscalculation, the amount 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 number of cows, or if the DAP-PR voucher 
would exceed the participant's voucher based upon the correct number of 
cows, the application will be disapproved and the full DAP-PR voucher 
for that dairy and participant will be required to be refunded to FSA 
with interest from date of disbursement.
    The liability of anyone for any penalty or sanction resulting from 
a DAP-PR 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 DAP-PR so FSA can begin the application period upon publication of 
this NOFA.

Environmental Review

    Because this is a one-time provision of commodities and the impacts 
of DAP-PR occur outside of any impacts resulting from the existing 
dairy operations (consistent with 7 CFR 799.31(b)(6)(iii)), there are 
no measureable individual or cumulative impacts to the human 
environment, as defined by the National Environmental Policy Act and, 
as such, no Environmental Assessment nor Environmental Impact Statement 
will be prepared. Consistent with the emergency nature of this action, 
this NOFA serves as documentation of the programmatic environmental 
compliance for this federal action.

Steven J. Peterson,
Acting Administrator, Farm Service Agency, and Executive Vice 
President, Commodity Credit Corporation.
[FR Doc. 2017-22868 Filed 10-19-17; 8:45 am]
BILLING CODE 3410-05-P