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[Federal Register: November 01, 2004 (Volume 69, Number 210)]
[Notices]
[Page 63317-63318]
From the Federal Register Online via GPO Access
[wais.access.gpo.gov]
DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
7 CFR Part 1580
Trade Adjustment Assistance for Farmers
AGENCY: Foreign Agricultural Service, USDA
ACTION: Final rule; Technical amendments.
Summary: This final rule makes technical amendments to the regulation implementing the Trade Adjustment Assistance for Farmers (TAA) program.
DATES: Effective on November 1, 2004.
FOR FURTHER INFORMATION CONTACT: Jean-Louis Pajot, Import Policies and Programs Division, Foreign Agricultural Service, 1400 Independence Avenue, SW., STOP 1021, by e-mail at: trade.adjustment@fas.usda.gov, telephone 202-720-2916, or fax at 202-720-0876.
SUPPLEMENTARY INFORMATION: The regulation implementing the TAA program is codified at 7 CFR part 1580. The program is authorized by Chapter 6 of Title II of the Trade Act of 1974, as amended by Subtitle C of Title I of the Trade Act of 2002 (Pub. L. 107-210) (19 U.S.C. 2551, et seq.) (the Trade Act).
This regulation makes the following five
technical corrections to 7 CFR Part 1580:
The first correction specifies the documentation required to certify the net
farm income of agricultural
cooperatives, partnerships and corporations. These entities are eligible to
apply for TAA because Sec. 1580.102 defines a ``producer'' as a person who is
either an owner, operator, landlord, tenant, or sharecropper, who shares in the
risk of producing a crop and who is entitled to share in the crop available for
marketing from the farm, or a qualified fisherman, and the same section defines
a ``person'' to mean an individual, partnership, joint stock owner, corporation,
association, trust, estate, or another legal entity as defined in 7 CFR 1400.3.
The current regulation, however, only specifies documentation for certifying the
net farm income of self-employed farmers, i.e., those filing Internal Revenue
Service (IRS) Schedule F (Form 1040):
Profit or Loss From Farming, and Form 4835: Farm Rental Income and Expenses.
Therefore, to correct this deficiency, all references to IRS forms are removed
from Sec. 1580.102. The amended rule sets forth a complete list of acceptable
forms and schedules supporting net income certifications under Sec. 1580.502 of
the regulation, where record maintenance is addressed.
The second change corrects an inconsistency in identifying the relevant tax year
to be used when producers certify to lower net farm or fishing incomes.
Producers petition for TAA with respect to the most recent marketing year for
which national average prices are available. Section 1580.102 defines net farm
and fishing income as income earned during the tax year that most closely
corresponds with the marketing year being considered for TAA. To be eligible for
payments, producers must certify under Sec. 1580.301(e)(4) that their net farm
or fishing income for the most recent tax year was less than that during their
pre-adjustment year. Because national average prices take months to be gathered
and published by the Department, a producer's most recent tax year may follow
the tax year that most closely corresponds with the marketing year being
considered for TAA. Therefore, to correct this deficiency, Sec. 1580.301(e)(4)
is amended to delete reference to ``the most recent tax year''. Consequently
producers are required to certify that net farm or fishing income during the tax
year that most closely corresponds with the marketing year under consideration
was less than that during their pre-adjustment tax year, in order to receive
payments.
The third change authorizes the use of alternative procedures for producers to
certify to their adjusted gross income (AGI) authorized by section 296 (a)(2)(A)(ii)(II)
of the Trade Act. Section 1580.301(e)(6) describes the documentation that a
producer shall provide to support certification that their AGI, as determined in
accordance with 7 CFR 1400.601, for the 3 preceding tax years does not exceed
$2,500,000. Section 1580.301(e) is therefore amended to allow producers to
certify their AGI limitation by either providing specified documentation or by
providing other information prescribed by the Department. This amendment will
permit FAS to conform the TAA procedures to those adopted by the Farm
Service Agency (FSA) regarding
certification of AGI. Producers will still be obligated to provide specific
documents supporting their AGI, when requested by the Department.
The fourth correction concerns the deadline by which applicants must provide
certifications to qualify for adjustment assistance payments. Under Sec.
1580.301(c) producers must submit documentation to support the amount of their
production when submitting an application for TAA. The purpose of this
requirement is twofold. First, it assures that only verifiable producers of the
commodity are referred to the Extension Service
for free technical assistance and services; and second, it establishes a fiscal
obligation for each applicant, upon which the Department builds its estimate of
program expenditures and calculates prorated payments, when appropriated funds
are insufficient. Section 1580.303(a) requires applicants to satisfy by
September 30 all the conditions of Sec. 1580.301 to qualify for TAA payments.
This statement could be misinterpreted to mean that producers have until
September 30, to provide documentation supporting the amount of their
production. Therefore, Sec. 1580.303(a) is amended to clarify that the September
30 deadline applies only to the certifications under Sec. 1580.301(e).
The fifth correction concerns the appeals procedure under Sec. 1580.505. The
regulation designated the FSA administrative appeal procedure to resolve
disputes involving applications for program benefits. This has led to some
confusion that entities applying for TAA benefits could appeal denials to the
National Appeals Division (NAD) within USDA. This was not intended, and would
not be appropriate, because appeals from NAD go to the United States District
Courts, whereas the Trade Act (19 U.S.C. 2395) grants to the United States Court
of International Trade jurisdiction over of all claims arising under the TAA
program. Therefore, Sec. 1580.505 is amended to delete the utilization of FSA's
administrative appeals process, including oversight by the FSA Deputy
Administrator and State committees.
Corrections to the Final Rule
0 Accordingly, for the reasons set forth in the preamble, FAS amends 7 CFR part 1580 to read as follows:
PART 1580--[CORRECTED]
1. The authority citation for 7 CFR part 1580 continues to read as follows:
Authority: 19 U.S.C. 2401.
Sec. 1580.102 [Corrected]
2. In Sec. 1580.102, the definition of ``Deputy Administrator'' is deleted, and the definitions for ``net farm income'', ``net fishing income,'' and ``qualified fisherman'' are revised to read as follows:
Sec. 1580.102 Definitions.
* * * * * Net farm income means net farm profit
or loss, excluding payments under this part, reported to the Internal Revenue
Service for the tax year that most
closely corresponds with the marketing year under consideration.
Net fishing income means net profit or loss, excluding payments under this part,
reported to the Internal Revenue Service
for the tax year that most closely corresponds with the marketing year under
consideration.
* * * * *
Qualified fisherman means a person whose catch competes in the marketplace with
like or directly competitive aquaculture products and report net fishing income
to the Internal Revenue Service.
* * * * *
Sec. 1580.301 [Corrected] 0
3. Section 1580.301 is amdended by revising paragaraphs (e)(4)and (e)(6) and by adding paragraph (e)(7) to read as follows:
Sec. 1580.301 Application for trade adjustment assistance.
* * * * *
(e) * * *
(4) Certification that net farm or fishing income was less than that during the
producer's pre-adjustment year.
* * * * *
(6) To comply with certifications in paragraph (e)(4) of this section, an
applicant shall provide either--
* * * * *
(7) To comply with certifications in paragraph (e)(5) of this section, an
applicant shall provide either--
(i) Supporting documentation from a certified public accountant or attorney,
(ii) Relevant documentation and other supporting financial data, such as
financial statements, balance sheets, and reports prepared for or provided to
the Internal Revenue Service or
another U.S. Government agency, or
(iii) Information prescribed by the Department.
* * * * *
Sec. 1580.303 [Corrected]
0 4. Section 1580.303(a) is revised to read as follows:
Sec. 1580.303 Adjustment assistance payments.
(a) Applicants shall satisfy by September 30 all certifications of Sec. 1580.301(e) to qualify for adjustment assistance payments.
* * * * *
5. Section 1580.501 is revised as follows:
Sec. 1580.501 Administration.
(a) The application process shall be carried out in the field by FSA county
committees.
(b) FSA county committees and representatives do not have the authority to
modify or waive any of the provisions of this part.
(c) The Administrator, may, by timely and appropriate public notification,
modify non-statutory opening dates and deadlines for submitting petitions.
(d) The Administrator may authorize the FSA county committees to waive or modify
non-statutory application deadlines or other program requirements in cases where
lateness or failure to meet such other requirements by applicants does not
adversely affect the operation of the program.
Sec. 1580.502 [Corrected]
6. Section 1580.502 is amended by adding
paragraphs (a)(1) and (a)(2) and by revising paragraph (d) to read as follows:
Sec. 1580.502 Maintenance of records, audits and compliance.
(a) * * *
(1) Acceptable production documentation may include copies of receipts, ledgers,
income statements, deposit slips, register tapes, invoices for custom
harvesting, records to verify production costs, contemporaneous measurements,
truck scale tickets, fish tickets, landing reports, and contemporaneous diaries
that are determined acceptable by the county committee.
(2) Acceptable income documentation shall include, as appropriate, copies of
Internal Revenue Service Form 990-C,
Farmers' Cooperative Association Income Tax Return; Form 1040, U.S. Individual
Income Tax Return; Schedule C (Form 1040), Profit or Loss From Business;
Schedule F (Form 1040), Profit or Loss From Farming; Form 1065, U.S. Return of
Partnership Income; Form 1120, U.S. Corporation Income Tax Return; or Form 4835,
Farm Rental Income and Expenses.
* * * * *
(d) If requested in writing by the United States Department of Agriculture or
the Comptroller General of the United States, the producer shall provide all
information and documentation the reviewing authority determines necessary to
verify any information or certification provided under this subpart, including
all documents referred to in Sec. 1580.301(c), within 30 days. Documentation may
be submitted by facsimile, in person, or by mail. Failure to provide necessary
and accurate information to verify compliance, or failure to comply with the
subpart's requirements, will result in ineligibility for all program benefits
subject to this subpart for the year or years subject to the request.
7. Section 1580.505 is revised to read as follows:
Sec. 1580.505 Appeals
Any person aggrieved by a final determination made with respect to an application for program benefits under this part may appeal to the United States Court of International Trade for a review of such determination, in accordance with its rules and procedures.
Signed at Washington, DC, on October 14, 2004.
A. Ellen Terpstra,
Administrator, Foreign Agricultural Service
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