Notice2023-09945
Notice of Funding Availability (NOFA) for the Rice Production Program
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Published
May 10, 2023
Issuing agencies
Agriculture DepartmentFarm Service Agency
Abstract
The Farm Service Agency (FSA) is announcing the availability of funding for the Rice Production Program (RPP) to provide financial assistance to rice producers affected by higher production costs during the 2022 crop year. RPP will provide a one-time payment to assist rice producers with additional expenses associated with the 2022 crop year costs for rice. In this document, FSA is providing the eligibility requirements, application process, and payment calculation for RPP.
Full Text
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<title>Federal Register, Volume 88 Issue 90 (Wednesday, May 10, 2023)</title>
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[Federal Register Volume 88, Number 90 (Wednesday, May 10, 2023)]
[Notices]
[Pages 30070-30073]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-09945]
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Notices
Federal Register
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or proposed rules that are applicable to the public. Notices of hearings
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Federal Register / Vol. 88, No. 90 / Wednesday, May 10, 2023 /
Notices
[[Page 30070]]
DEPARTMENT OF AGRICULTURE
Farm Service Agency
[Docket ID FSA-2023-0007]
Notice of Funding Availability (NOFA) for the Rice Production
Program
AGENCY: Farm Service Agency, Department of Agriculture (USDA).
ACTION: Notification of funding availability.
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SUMMARY: The Farm Service Agency (FSA) is announcing the availability
of funding for the Rice Production Program (RPP) to provide financial
assistance to rice producers affected by higher production costs during
the 2022 crop year. RPP will provide a one-time payment to assist rice
producers with additional expenses associated with the 2022 crop year
costs for rice. In this document, FSA is providing the eligibility
requirements, application process, and payment calculation for RPP.
DATES:
Funding availability: Implementation will begin May 10, 2023.
Applications due date: We will accept applications for assistance
through July 10, 2023.
FOR FURTHER INFORMATION CONTACT: Alison Groenwoldt; telephone: (202)
720-4213; or by email: <a href="/cdn-cgi/l/email-protection#d6b7babfa5b9b8f8b1a4b9b3b8a1b9bab2a296a3a5b2b7f8b1b9a0"><span class="__cf_email__" data-cfemail="93f2fffae0fcfdbdf4e1fcf6fde4fcfff7e7d3e6e0f7f2bdf4fce5">[email protected]</span></a>. Individuals who
require alternative means for communication should contact the USDA
Target Center at (202) 720-2600 (voice and text telephone (TTY)) or
dial 711 for Telecommunications Relay service (both voice and text
telephone users can initiate this call from any telephone).
SUPPLEMENTARY INFORMATION:
Background
The Consolidated Appropriations Act, 2023 (Pub. L. 117-328) (the
CAA, 2023), appropriated $250 million of rescinded unobligated balances
from the Consolidated Appropriations Act, 2021 (Pub. L. 116-260), to
the Secretary to provide financial assistance to rice producers through
RPP. In accordance with section 602 of the CAA, 2023, RPP will provide
a one-time payment to assist eligible rice producers with additional
expenses associated with 2022 crop production costs for rice. The
payment will be issued in two parts that will constitute the 1-time
payment authorized in the CAA, 2023, in order to implement the
requirement that the funding be fully expended without exceeding
available funding.
The $250 million funding for RPP assistance will remain available
until expended and RPP payments will be subject to the availability of
funding.
Under the authority for RPP, the payment rate per pound is as
determined by the Secretary and shall be not less than 2 cents per
pound unless there is a need to adjust the payment rate such that the
amount of funding made available for RPP is fully expended. A payment
rate at or above 2 cents per pound is expected to exceed the available
funding. To ensure total payments do not exceed available funding, FSA
will make an initial payment to eligible applicants at a payment rate
of 1 cent per pound. Any remaining funding available at the conclusion
of the application period, will be issued in a second payment to
eligible applicants at a payment rate determined by the Secretary such
that the funding available for RPP is fully expended, taking into
account necessary reserves. Payments will be calculated based on
information certified on the FSA-174.
Administration
RPP will be administered under the general supervision of the FSA
Deputy Administrator for Farms Programs (Deputy Administrator). RPP
will be carried out by FSA State and county committees with
instructions issued by the Deputy Administrator.
FSA State committees, FSA county committees, representatives, and
their employees do not have authority to modify or waive any of the
provisions of RPP, except as discussed below.
The FSA State committee will take any required action not taken by
the FSA county committee. The FSA State committee will also:
<bullet> Correct or require correction of an action taken by an FSA
county committee that is not in compliance with this document; or
<bullet> Require an FSA county committee to not take an action or
implement a decision that is not in compliance with this document.
The Deputy Administrator or a designee may determine any question
arising under RPP or reverse or modify a determination made by an FSA
State committee or FSA county committee.
The Deputy Administrator may authorize FSA State committees and FSA
county committees to waive or modify non-statutory deadlines and other
program requirements in cases where lateness or failure to meet such
other requirements does not adversely affect the operation of RPP.
A representative of FSA may execute applications and related
documents only under the terms and conditions determined and announced
by FSA. Any document not executed under such terms and conditions,
including any purported execution before the date authorized by FSA,
will be null and void.
Definitions
The following definitions apply to RPP.
Application period means the period starting on May 10, 2023 and
ending on July 10, 2023 during which time applicants may apply for RPP
payments.
Actual Production History (APH) means the average actual production
history for the primary policyholder as calculated by the Risk
Management Agency (RMA). For RPP purposes, Substantial Beneficial
Interest holders will be assigned an average APH using the primary
policy holders APH and the APH from their individual policies, if
applicable.
Average Adjusted Gross Farm Income means the average of the portion
of the person or legal entity's adjusted gross income derived from
farming, ranching, or forestry operations for the 3 taxable years
preceding the most immediately preceding complete taxable year. The
relevant tax years are 2018, 2019, and 2020.
If the resulting average adjusted gross farm income derived from
items 1 through 12 of the definition of income derived from farming,
ranching and forestry operations is at least 66.66 percent of the
average adjusted gross
[[Page 30071]]
income of the person or legal entity, then the average adjusted gross
farm income may also take into consideration income or benefits derived
from the following:
(1) The sale of equipment to conduct farm, ranch, or forestry
operations; and
(2) The provision of production inputs and services to farmers,
ranchers, foresters, and farm operations.
Crop year means the 12-month period following a crop's normal
harvest period.
Deputy Administrator means Deputy Administrator for Farm Programs,
Farm Service Agency, U.S. Department of Agriculture, or their designee.
Deputy Administrator Established Yield means a national average
yield, as determined by the Deputy Administrator to be used when APH
data is not available The national average yield is a weighted average
yield using FSA eligible rice acres and state average APH data. The
Deputy Administrator established yield is 7,694 pounds.
Eligible rice means short, medium, and long grain rice, including
temperate japonica and sweet rice. Industrial rice and wild rice are
not eligible to receive a RPP payment.
Eligible rice acres means eligible rice reported by the acreage
reporting deadline as being planted or prevented from being planted for
the 2022 crop year.
Income derived from farming, ranching, and forestry operations
means income of an individual or entity derived from:
(1) Production of crops, specialty crops, and unfinished raw
forestry products;
(2) Production of livestock, aquaculture products used for food,
honeybees, and products derived from livestock;
(3) Production of farm-based renewable energy;
(4) Selling (including the sale of easements and development
rights) of farm, ranch, and forestry land, water or hunting rights, or
environmental benefits;
(5) Rental or lease of land or equipment used for farming,
ranching, or forestry operations, including water or hunting rights;
(6) Processing, packing, storing, and transportation of farm,
ranch, forestry commodities including renewable energy;
(7) Feeding, rearing, or finishing of livestock;
(8) Payments of benefits, including benefits from risk management
practices, crop insurance indemnities, and catastrophic risk protection
plans;
(9) Sale of land that has been used for agricultural purposes;
(10) Payments and benefits authorized under any program made
available and applicable to payment eligibility and payment limitation
rules;
(11) Income reported on Internal Revenue Service (IRS) Schedule F
or other schedule used by the person or legal entity to report income
from such operations to the IRS;
(12) Wages or dividends received from a closely held corporation,
and Interest Charge Domestic International Sales Corporation (IC-DISC)
or legal entity comprised entirely of family members when more than 50
percent of the legal entity's gross receipts for each tax year are
derived from farming, ranching, or forestry activities as defined in
this document; and
(13) Any other activity related to farming, ranching, and forestry,
as determined by the Deputy Administrator.
Producer means a person, partnership, association, corporation,
estate, trust, or other legal entity that produces rice as a landowner,
landlord, tenant, or sharecropper.
United States means all 50 states, the District of Columbia, the
Commonwealth of Puerto Rico, and any other territory or possession of
the United States.
Eligible Applicants
To be eligible for RPP, a producer must have reported to FSA a
share interest in eligible rice by the acreage reporting deadline.
Late-filed or modified rice acreage reports will not be eligible for
RPP. In addition, the applicant must meet one of the following:
<bullet> Be a citizen of the United States;
<bullet> Be a resident alien, which for purposes of this subpart
means ``lawful alien'' as defined in 7 CFR part 1400;
<bullet> Be a partnership organized under State law;
<bullet> Be a corporation, limited liability company, or other
organizational structure organized under State law; or
<bullet> Be an Indian Tribe or Tribal organization, as defined in
Section 4(b) of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5304).
Application Process
FSA will accept applications during the application period. FSA
will pre-populate the Rice Production Program (RPP) Application (form
FSA-174) using acreage data and ownership shares reported to the FSA
and APH data on file with RMA or, if APH data is not available, the
Deputy Administrator established yield. The pre-populated form will be
mailed to producers at the start of the application period.
To apply for RPP, applicants must return a completed FSA-174 to
their recording FSA county office by the close of the application
period. Applications may be submitted in person or by mail, email,
facsimile, or other methods announced by FSA.
Producers who reported eligible rice to FSA by the acreage
reporting deadline according to 7 CFR 718.102, Acreage Reports, but do
not receive a pre-populated form may still apply for RPP by visiting
their recording FSA county office by close of the application period
and completing an FSA-174.
Each applicant must submit the following forms in person or by
mail, email, or facsimile, or other methods announced by FSA, if not
already on file with FSA, within 60 days of the application deadline:
<bullet> Form AD-2047, Customer Data Worksheet, for existing
customers who need to update their customer profile;
<bullet> Form CCC-901, Member Information for Legal Entities, if
applicable;
<bullet> Form CCC-902, Farm Operating Plan for an individual or
legal entity as provided in 7 CFR part 1400;
<bullet> Form FSA-510, Request for an Exception to the $125,000
Payment Limitation for Certain Programs, accompanied by a certification
from a certified public accountant or attorney as to the person or
legal entity's certification, for a legal entity and all members of
that entity, for the 2022 program year, including the legal entity's
members, partners, or shareholders, as provided in 7 CFR part 1400, if
applicable; and
<bullet> Form AD-1026, Highly Erodible Land Conservation (HELC) and
Wetland Conservation (WC) Certification, for the RPP applicant and
applicable affiliates as provided in 7 CFR part 12.
Applicants may be required to provide additional documentation to
FSA if requested, to verify the accuracy of information provided on the
application. Additional documentation must be submitted within 30
calendar days from the requested date or the application will not be
processed. Additional information may include, but is not limited to:
<bullet> The producer's APH; and
<bullet> Evidence, such as seed receipts, custom harvesting
receipts, or sales receipts to substantiate the reported share interest
in the eligible rice.
Initial RPP payment will be issued after an application is reviewed
and eligibility requirements are met. At the
[[Page 30072]]
conclusion of the application period, a second payment will be issued
to eligible applicants using a payment rate determined by the Secretary
such that the funding available for RPP is fully expended, taking into
account necessary reserves.
Payment Rates and Calculations
Consistent with section 602(b) of CAA, 2023, the RPP payment will
be calculated as described in this section.
Producers will certify on the FSA-174 the producer's share of
eligible rice acres and APH, or if APH data is not available, the use
of the Deputy Administrator established yield.
FSA will determine an eligible producer's RPP payment by adding the
calculated payment for planted acres and the calculated payment for
prevented planted acres, which are each calculated as follows:
<bullet> For planted acres, the producer's share of planted
eligible rice acres multiplied by APH or, if APH data is not available,
the Deputy Administrator established yield, multiplied by the payment
rate; and
<bullet> For prevented planted acres, the producer's share of
prevented planted eligible rice acres multiplied by APH or, if APH data
is not available, the Deputy Administrator established yield,
multiplied by the payment rate, which is then multiplied by a prevented
planting factor of 60 percent.
For example, a producer reported 200 acres of planted rice and 100
acres of prevented planted rice for the 2022 crop year, and the
producer has an APH of 7,500 pounds per acre. For the initial payment,
FSA multiplies $0.01 x 7,500 x the sum of adding 200 planted acres plus
60 percent x 100 prevented planted acres, resulting in the total
initial payment of $19,500.
RPP payments are subject to availability of funds. To ensure total
payments do not exceed available funding, FSA will make an initial
payment to eligible applicants at a payment rate of 1 cent per pound.
Any remaining funding available at the conclusion of the application
period, will be issued in a second payment to eligible applicants at a
payment rate determined by the Secretary such that the funding
available for RPP is fully expended, taking into account necessary
reserves.
Sharing Payments Between Multiple Producers
Each producer reporting a share interest of eligible rice to the
FSA on a Report of Acreage (FSA-578) will be given the opportunity to
apply for RPP and the RPP payment will be calculated based on the
producer's reported ownership share. If a farm's acres of rice are
leased on a share basis, neither the landlord nor the tenant can
receive 100 percent of RPP payment for the producers with an ownership
share on the farm, as the RPP payment is to be distributed
proportionately to the producers according to the landlord's and
tenant's share of the eligible rice as reported to FSA on the FSA-578.
FSA will approve an application for shared RPP payments to
applicants when all the following, as applicable, have been determined
to have occurred:
(1) Landlords, tenants, and sharecroppers each sign their own RPP
application and agree to the eligible rice acres recorded on the
application, which when added together cannot exceed 100 percent of the
eligible rice acres recorded on the FSA-578 for the 2022 crop year;
(2) Upon request from the FSA county committee, if necessary,
provide a copy of the lease agreement; and
(3) FSA determines that the payment shares do not circumvent either
the provisions of this document or the provisions of 7 CFR part 1400.
Payment Limitation and Attribution
As required by the CAA, 2023, and consistent with 7 CFR
760.1507(b), the payment limitation for RPP is determined by the
producer's average adjusted gross farm income (income from activities
related to farming, ranching, or forestry). Specifically, if the
producer's average adjusted gross farm income is less than 75 percent
of the producer's average adjusted gross income (AGI) for the 3 taxable
years preceding the most immediately preceding complete tax year, a
producer, other than a joint venture or general partnership, cannot
receive, directly or indirectly, more than $125,000 in payments for
RPP.
If at least 75 percent of the producer's average AGI is derived
from farming, ranching, or forestry related activities and the producer
provides the required certification and documentation, as discussed
below, the producer, other than a joint venture or general partnership,
is eligible to receive, directly or indirectly, up to $250,000 in
payments for RPP.
The relevant tax years for establishing a producer's average AGI
and percentage derived from farming, ranching, or forestry related
activities are 2018, 2019, and 2020 for program year 2022.
To receive more than $125,000 in RPP payments, producers must
submit form FSA-510, accompanied by a certification from a certified
public accountant or attorney as to the percentage of that person or
legal entity's certified average AGI that was derived from farming,
ranching, or forestry operations. If a producer requesting the
increased payment limitation is a legal entity, all members of that
entity must also complete form FSA-510 and provide the required
certification according to the direct attribution provisions in 7 CFR
1400.105, Attribution of Payments. If a legal entity would be eligible
for the increased payment limitation based on the legal entity's
average AGI derived from farming, ranching, or forestry related
activities but a member of that legal entity either does not complete a
form FSA-510 and provide the required certification or is not eligible
for the increased payment limitation, the payment to the legal entity
will be reduced by the payment limitation applicable to the share of
the RPP payment attributed to that member.
If a producer files form FSA-510 and the accompanying certification
after their RPP payment is issued but before the application period,
FSA will process the form FSA-510 and issue an additional payment if
the producer's initial payment amount was limited by the $125,000
payment limitation.
A payment made to a legal entity will be attributed to those
members who have a direct or indirect ownership interest in the legal
entity, unless the payment of the legal entity has been reduced by the
proportionate ownership interest of the member due to that member's
ineligibility. Attribution of payments made to legal entities will be
tracked through four levels of ownership in legal entities as described
in Sec. 760.1906.
Like other programs administered by FSA, payments made to an Indian
Tribe or Tribal organization, as defined in section 4(b) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 5304), will
not be subject to payment limitation.
Provisions Requiring Refund to FSA
In the event any application for an RPP payment resulted from
erroneous information or miscalculation, the participant must refund
any excess payment 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 the information provided,
the application will be disapproved and the full RPP payment will be
required to be refunded to FSA with interest from the date of
disbursement.
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Miscellaneous Provisions
General requirements that apply to other FSA-administered commodity
programs also apply to RPP, including compliance with the provisions of
7 CFR part 12, ``Highly Erodible Land and Wetland Conservation,'' and
the provisions of 7 CFR 718.6, which address ineligibility for benefits
for offenses involving controlled substances. Appeal regulations in 7
CFR parts 11 and 780 and equitable relief and finality provisions in 7
CFR part 718, subpart D, apply to determinations under RPP.
Participants are required to retain documentation in support of
their application for 3 years after the date of approval. Participants
receiving an RPP payment must permit authorized representatives of USDA
or the Government Accountability Office, during regular business hours,
to enter the participant's business and to inspect, examine, and to
allow representatives to make copies of books, records, or other items
for the purpose of confirming the accuracy of the information provided
by the participant.
Applicants have a right to a decision in response to their
application. If an applicant files a late RPP application, the
application will be considered a request to waive the deadline.
The Deputy Administrator has the authority to waive or modify
application deadlines and other requirements or program provisions not
specified in law in cases where the Deputy Administrator determines it
is (1) equitable to do so and (2) where the lateness or failure to meet
such other requirements or program provisions do not adversely affect
the operation of RPP.
Applicants who request to waive or modify RPP provisions do not
have a right to a decision on the requests, and the Deputy
Administrator's refusal to exercise discretion on requests to waive or
modify RPP provisions will not be considered an adverse decision and
is, by itself, not appealable.
The regulations governing offsets in 7 CFR part 3 apply to RPP
payments.
In either applying for or participating in RPP, or both, the
applicant is subject to laws against perjury (including but not limited
to 18 U.S.C. 1621). If the applicant willfully makes and represents as
true any verbal or written declaration, certification, statement, or
verification that the applicant knows or believes not to be true,
during either applying for or participating in RPP, or both, then the
applicant may be found to be guilty of perjury. Except as otherwise
provided by law, if guilty of perjury the applicant may be fined,
imprisoned for not more than 5 years, or both, regardless of whether
the applicant makes such verbal or written declaration, certification,
statement, or verification within or outside the United States.
Paperwork Reduction Act Requirements
In compliance with the provisions of the Paperwork Reduction Act
(44 U.S.C. chapter 35), the information collection request has been
approved by OMB under the control number of 0503-0028. FSA will collect
the information from the rice producers to qualify for the payment to
cover the higher production costs. RPP is a one-time funding as
described in this NOFA.
Environmental Review
The environmental impacts have been considered in a manner
consistent with the provisions of the National Environmental Policy Act
(NEPA, 42 U.S.C. 4321-4347), the regulations of the Council on
Environmental Quality (40 CFR parts 1500-1508), and the FSA regulations
for compliance with NEPA (7 CFR part 799).
The purpose of RPP is to provide a one-time payment to assist rice
producers with the increased production costs for rice from the 2022
crop year. The limited discretionary aspects of RPP do not have the
potential to impact the human environment as they are administrative.
Accordingly, these discretionary aspects are covered by the Categorical
Exclusions in 7 CFR 799.31(b)(6)(iii) that applies to price support
programs.
No Extraordinary Circumstances (7 CFR 799.33) exist. FSA has
determined that this action does not constitute major Federal actions
that would significantly affect the quality of the human environment,
individually or cumulatively. Therefore, FSA will not prepare an
environmental assessment or environmental impact statement for this
regulatory action and this document serves as documentation of the
programmatic environmental compliance decision for this federal action.
Federal Assistance Programs
The title and number of the Federal assistance programs, as found
in the Assistance Listing,\1\ to which this document applies is 10.976,
Rice Production Program (RPP).
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\1\ See <a href="https://sam.gov/content/assistance-listings">https://sam.gov/content/assistance-listings</a>.
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USDA Non-Discrimination Policy
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family or parental status, income derived from a public
assistance program, political beliefs, or reprisal or retaliation for
prior civil rights activity, in any program or activity conducted or
funded by USDA (not all bases apply to all programs). Remedies and
complaint filing deadlines vary by program or incident.
Individuals who require alternative means of communication for
program information (for example, braille, large print, audiotape,
American Sign Language, etc.) should contact the responsible Agency or
USDA TARGET Center at (202) 720-2600 (voice and text telephone (TTY))
or dial 711 for Telecommunications Relay Service (both voice and text
telephone users can initiate this call from any telephone).
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at <a href="https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint">https://www.usda.gov/oascr/how-to-file-a-program-discrimination-complaint</a> and
at any USDA office or write a letter addressed to USDA and provide in
the letter all the information requested in the form. To request a copy
of the complaint form, call (866) 632-9992. Submit your completed form
or letter to USDA by mail to: U.S. Department of Agriculture, Office of
the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW,
Washington, DC 20250-9410 or email: <a href="/cdn-cgi/l/email-protection#a4ebe5e7e4d1d7c0c58ac3cbd2"><span class="__cf_email__" data-cfemail="b0fff1f3f0c5c3d4d19ed7dfc6">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Zach Ducheneaux,
Administrator, Farm Service Agency.
[FR Doc. 2023-09945 Filed 5-8-23; 8:45 am]
BILLING CODE 3411-E2-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.