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office listed in the Farm Service Agency section of Appendix IV of the Catalog or on the WEB at http://www.fsa.usda.gov/edso/.

Headquarters Office:

Candace Thompson, 1400 Independence Avenue, SW, Stop 0517, Washington, District of Columbia 20250-0517 Email: candy.thompson@wdc.usda.gov Phone: (202) 720-7641 Fax: (202) 690-2130.

Website Address:

http://www.fsa.usda.gov.

RELATED PROGRAMS:

Not Applicable.

EXAMPLES OF FUNDED PROJECTS:

Not Applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not Applicable.

10.056 FARM STORAGE FACILITY LOANS

FEDERAL AGENCY:

Farm Service Agency, Department of Agriculture

AUTHORIZATION:

Food, Conservation, and Energy Act of 2008, Title 1, Part Subtitle 5, Section 1614.

OBJECTIVES:

To encourage the construction of on farm grain storage capacity and to help farmers adapt to identity preserved storage and handling requirements for genetically enhanced production.

TYPES OF ASSISTANCE:
DIRECT LOANS

USES AND USE RESTRICTIONS:

Loans are used to finance the purchase and construction of new storage structures, handling equipment and drying equipment, and to finance the remodeling of existing storage structures. The loan amount is limited to $500,000 per storage facility for each loan. The following are security requirements for farm storage facility loans: All loans must be secured by a promissory note and security agreement, as well as a UCC-1 describing the storage facility and accompanying equipment; and Severance agreements from all lien holders on the real estate where the facility will be located or from owners of real estate when the loan applicant is not the landowner, except when CCC holds the first lien on the real estate. Severance agreements will not be required if the borrower increases the down payment from 15 percent to 20 percent. For loans that exceed $50,000 or the borrower's aggregate outstanding loan balance exceeds $50,000, the borrower must be able to provide at least one of the following: A first lien on the real estate on which the facility is located; Real estate owned by the borrower other than where the facility is located, provided the real estate offered is sufficient to secure the loan; or An irrevocable letter of credit from a financial institution in an amount sufficient to protect CCC's interest for each year the loan has an outstanding balance. Facility Loan Terms. The following are the terms for farm storage facility loans: A 15 percent cash down payment is required; thus, CCC's loan is limited to 85 percent of the net cost of the eligible storage facility and permanent drying and handling equipment (subject to the applicant's storage needs test). The down payment cannot include any trade-in, discount, rebate, deferred payment, or post-dated check. Loan terms available are seven (7) years, ten (10) years or twelve (12) years depending on the amount of the loan. Interest rate is fixed for the loan term based on the rate in effect during the month the loan is initially approved. The interest rate is equivalent to the rate of interest charged on Treasury Securities of comparable term and maturity. Loans are to be repaid in equal amortized annual installments. Loan will not be disbursed until the facility has been erected and inspected with the exception of one (1) qualifying partial disbursement, once 50 percent of the facility has been completed. Cost of Obtaining a Loan. Each applicant will be charged a nonrefundable $100 application fee. CCC will pay all collateral lien searches and recording fees for filing Form UCC-1 and credit reports. Applicants pay all other fees, such as severance agreements, attorney fees, real estate lien search fees, and instrument filing fees. For loans over $50,000, applicants will be required to pay the cost

of obtaining a title search/opinion or title insurance. Persons Required to Sign the Note. The following persons are required to sign the loan agreement: For sole proprietorships and joint ventures, all individuals, including spouses, if applicable. For general partnerships, any member unless the Articles of Partnership are more restrictive. For corporations and limited partnerships, an individual with signature authority on file with FSA. Where to File the Application

Loan applications should be filed in the administrative FSA Office that maintains the farm's records. More Information: For more information about FSA programs, contact your local FSA office or USDA Service Center, or visit the World Wide Web at www.fsa.usda.gov. The Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of Discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer. Fact Sheets,

News Releases, Emergency Designation News Releases, Spotlights, Fence Post,
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Applicant Eligibility:

An eligible borrower is any person who, as landowner, landlord, operator,
producer, tenant, leaseholder, or sharecropper: (1) Has a satisfactory credit
history and demonstrates an ability to repay the debt arising under this program
using a financial statement acceptable to CCC prepared within 90 days of the
date of application; (2) has no delinquent Federal debt defined by the Debt
Collection Improvement Act of 1996 at the time of loan disbursement; (3) is a
producer of a facility loan commodity as defined by CCC; (4) demonstrates a
need for storage capacity as defined by CCC; (5) provides proof of crop
insurance offered under the Federal Crop Insurance Program for crops of
economic significance on all farms operated by the borrower in the county
where the storage facility is located; (6) is in compliance with USDA provisions
for highly erodible land and wetlands provisions according to 7 CFR Part 12;
(7) demonstrates compliance with any applicable local zoning, land use, and
building codes for the applicable farm storage facility structures; (8) provides
proof of flood insurance if CCC determines such insurance is necessary to
protect the interests of CCC, and proof of all peril structural insurance, to CCC
annually; (9) demonstrates compliance with the National Environmental Policy
Act regulations at 40 CFR, Parts 1500- 1508; and (10) has not been convicted
under Federal or State law of a controlled substance violation under 7 CFR Part
718.

Beneficiary Eligibility:

Applicants/borrowers are the direct beneficiaries when they meet all eligibility criteria. Landowners, landlords, operators, producers, tenants, leaseholders, or sharecroppers are the beneficiaries.

Credentials/Documentation:

Applicants must establish that they have a need for the storage capacity. The applicant must establish that he has the ability to repay the loan. This program is excluded from coverage under OMB Circular No. A-87. Preapplication Coordination:

Preapplication coordination is required. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedures:

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Application Form CCC-185 provided by the Farm Service Agency must be presented, with supporting information, to the FSA county office serving the applicant's county. FSA personnel assist applicants in completing their application forms.

Award Procedure:

FSA State and County Committees are authorized to approve these loans after applicants are determined eligible.

Deadlines:

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time:

The approval process may take from 2 to 6 weeks.

Appeals:

Applicants for loans may appeal adverse actions taken against them. The

applicant is given an opportunity to appeal the decision to the National Appeals Division.

Renewals:

The loan term is 7, 10, or 12 years. The term of the loan may not be extended. The loan is repaid in equal annual installments of principal and interest amortized over the loan term.

Formula and Matching Requirements:

This program has no statutory formula.

This program has no matching requirements.
This program does not have MOE requirements.

Length and Time Phasing of Assistance:

The estimated amount of the loan is determined before construction takes place. A 15 percent down payment is required. The loan is disbursed by direct deposit or check, if a direct deposit waiver is filed, as soon as the cost is determined, all loan documents have been prepared and all security documents have been filed. Method of awarding/releasing assistance: lump sum. Reports:

Not Applicable.

Audits:

Not Applicable.

Records:

Borrowers are required to annually submit proof of crop insurance, flood insurance (if applicable), hazard insurance, and property taxes. Account Identification:

12-4158-0-3-351; 12-3301-0-1-351.

Obligations:

(Direct Loans) FY 11 $250,000,000; FY 12 est $302,500,000; and FY 13 est $302,500,000

Range and Average of Financial Assistance:

No Data Available.

PROGRAM ACCOMPLISHMENTS:

Not Applicable.

REGULATIONS, GUIDELINES, AND LITERATURE:

(1) A fact sheet, press release, forms, and directives are available. Regulations at 7 CFR Part 1436 were published in the Federal Register under a final rule on August 18, 2009.

Regional or Local Office:

See Regional Agency Offices. Consult the appropriate FSA State office listed in Appendix IV of the Catalog.

Headquarters Office:

Toni D. Williams USDA-FSA-PSD, Stop 0512, 1400 Independence Ave., SW,
Washington, District of Columbia 20250-0512 Email:
toni.williams@wdc.usda.gov Phone: 2027202270 Fax: 2026903307
Website Address:

http://www.fsa.usda.gov/FSA/webapp?area=home&subject=prsu&topic=flp

RELATED PROGRAMS:

Not Applicable.

EXAMPLES OF FUNDED PROJECTS:

Not Applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not Applicable.

10.069 CONSERVATION RESERVE PROGRAM (CRP)

FEDERAL AGENCY:

Farm Service Agency, Department of Agriculture

AUTHORIZATION:

Food Security Act of 1985, as amended, Section 1231, 16 U.S.C 3831-3835a. OBJECTIVES:

To protect the Nation's long-term capability to produce food and fiber; to reduce soil erosion and sedimentation, improve water quality, and create or enhance habitat for wildlife.

TYPES OF ASSISTANCE:

DIRECT PAYMENTS FOR A SPECIFIED USE

USES AND USE RESTRICTIONS:

Eligible owners or operators may place highly erodible or other environmentally sensitive land into a 10-15 year contract. The participant, in return for annual payments, agrees to implement a conservation plan approved by the local conservation district for converting highly erodible cropland or other environmentally sensitive land to a long-term resource conserving cover i.e., eligible land must be planted with a vegetative cover, such as, perennial grasses, legumes, fobs, shrubs, or trees. Financial and technical assistance are available to participants to assist in the establishment of a long-term resource conserving cover.

Applicant Eligibility:

An individual, partnership, association, Indian Tribal ventures corporation, estate, trust, other business enterprises or other legal entities and, whenever applicable, a State, a political subdivision of a State, or any agency thereof may submit an offer to enroll acreage.

Beneficiary Eligibility:

If their offer is accepted for enrollment, an individual, partnership, association,
Indian Tribal ventures, corporation, estate, trust, other business enterprises or
other legal entities and, whenever applicable, a State, political subdivision of
State, or any agency thereof may earn benefits.
Credentials/Documentation:

The land must be owned or operated for not less than 12 months prior to the close of the signup period, unless the land was acquired by will or succession or FSA determines that ownership was not acquired for the purpose of placing the land in the CRP. This program is excluded from coverage under OMB Circular No. A-87.

Preapplication Coordination:

Preapplication coordination is required. An environmental impact statement is required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedures:

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. FSA has three methods for enrolling acreage in the CRP. One method is a continuous signup process where acreage suitable for certain environmental priority practices, including but not limited to grass waterways, riparian buffers or filterstrips, and acreage within wellhead protection areas may be offered and accepted without going through a competitive offer process. The second method is similar to continuous signup and is available only in distinct geographic areas. These areas are targeted by FSA and State governments under partnership agreements. The third method is to offer acreage during a general signup period where eligible offers to enroll highly erodible and other environmentally sensitive

acreage are submitted and ranked competitively based on an environmental benefits index. Regardless of the method of enrollment, the local FSA office that serves the area in which the farm or ranch is located will provide the maximum payment rate CCC will accept to enroll certain acreage in the program. Producers may submit a rental rate per acre offered that may be equal to or less than CCC's maximum payment rate.

Award Procedure:

FSA will notify persons whose offers are determined acceptable as soon as practicable after the close of the signup.

Deadlines:

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time:

From 7 to 120 days.

Appeals:

Producers may appeal any determination to county FSA committee, State committee, or National Appeals Division. Matters that are generally applicable to all producers are not appealable.

Renewals:

Not Applicable.

Formula and Matching Requirements:

This program has no statutory formula.

This program has no matching requirements.

This program does not have MOE requirements.

Length and Time Phasing of Assistance:

Annual rental payments will be made for 10-15 years. If cost-share assistance to establish the appropriate cover was requested, a payment will be made after the practice is successfully established according to applicable guidelines. FSA may provide certain incentives for restoring wetlands or other lands. See the following for information on how assistance is awarded/released: Annually and based on performance.

Reports:

Not Applicable.

Audits:

No audits are required for this program.

Records:

Maintained in county FSA office and Federal Record centers for a specified number of years.

Account Identification:

12-4336-0-1-302; 12-3319-0-1-302.

Obligations:

(Direct Payments with Unrestricted Use) FY 11 $1,938,872,000; FY 12 est $2,069,573,000; and FY 13 est $2,201,694,000

Range and Average of Financial Assistance:

No Data Available.

PROGRAM ACCOMPLISHMENTS:

Not Applicable.

REGULATIONS, GUIDELINES, AND LITERATURE:

Program is announced through news media and in letters to agricultural producers in the county. Regulations published in the Federal Register, 7 CFR Part 1410.

Regional or Local Office:

See Regional Agency Offices. Consult the local telephone directory for location of the county FSA office, under U.S. Government, Department of Agriculture. If no listing, contact the appropriate State FSA office listed in the FSA section of Appendix IV of the Catalog.

Headquarters Office:

Beverly Preston 1400 Independence Ave. SW, Washington, District of Columbia 20250 Email: Beverly.Preston@wdc.usda.gov Phone: 202-720-9563 Fax: 202-720-4619

Website Address:

http://www.fsa.usda.gov.

RELATED PROGRAMS:

10.054 Emergency Conservation Program; 10.072 Wetlands Reserve Program; 10.901 Resource Conservation and Development; 10.902 Soil and Water Conservation; 10.904 Watershed Protection and Flood Prevention EXAMPLES OF FUNDED PROJECTS:

Not Applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not Applicable.

10.072 WETLANDS RESERVE PROGRAM

(WRP)

FEDERAL AGENCY:

Natural Resources Conservation Service, Department of Agriculture
AUTHORIZATION:

Food Security Act of 1985, Title XII, Part Subtitle D, Section 1237, Public
Law 99-198, 99 Stat. 1504, 16 U.S.C 3831.

OBJECTIVES:

To assist landowners in restoring and protecting wetlands on eligible lands on which they agree to enter into a permanent or 30- yearlong-term easement (30year contract for Indian tribes), or a restoration cost-share agreement with the Secretary. The goal of WRP is to maximize wetland functions and values and wildlife benefits on every acre enrolled in the program. Total acreage enrollment limitation is 3.041,2002,275,000 acres.

TYPES OF ASSISTANCE:

DIRECT PAYMENTS FOR A SPECIFIED USE

USES AND USE RESTRICTIONS:

Eligible landowners may offer farmed wetlands, prior converted wetlands, wetlands farmed under natural condition, former or degraded wetlands on lands that have been used or are currently being used for the production of food and fiber, including cropland, rangeland and forest production land, lands substantially altered by flooding, certain riparian areas, along with certain adjacent areas. The goal of the WRP is to achieve the greatest wetlands functions and values, along with optimum wildlife habitat on every acre enrolled in the program. At least 70 percent of the wetland and upland areas will be restored to the natural condition to the extent practicable; the remaining 30 percent of the project area may be restored to other than natural conditions. Enrollment options include permanent easements, 30-year easements, restoration cost-share agreements, and, for acreage owned by Indian Tribes, 30-year contracts. To be eligible for participation, land must be restorable and be suitable for wildlife benefits. Participating landowners must comply with the terms and conditions of their easement, agreement or contract for the duration of the document. For easement projects, landowners shall ensure the easement is superior to the rights of all others and shall agree to implement a wetland restoration plan designed to restore and maintain the easement area. Landowners must agree to a permanent retirement of crop acreage bases, allotments, and quotas to the extent that the sum of the crop acreage bases and allotments will not exceed the remaining

cropland on the farm.

Participating landowners receive financial and technical assistance to install necessary restoration practices as follows.

Permanent easements: Easement duration is in perpetuity. Landowners receive an easement payment after the easement is filed. In addition NRCS shall share the cost of carrying out the establishment conservation measures and practices, and the protection of wetland functions and values including necessary maintenance activities to the extent that the Secretary determines that cost-sharing is appropriate and in the public interest.

30-year easements: Easement duration is 30 years. Landowners receive an easement payment after the easement is filed that is the equivalent of 75 percent of the value for a permanent easement and up to 75 percent of the eligible restoration costs.

Restoration cost-share agreements: Restoration cost-share agreements are made available to participating landowners as an alternative mechanism to

restore wetlands, without requiring the participant to sell an easement. Agreements are generally for a 10-year period, although longer agreement periods may be required for unique projects that are funded at a higher level. There is no easement payment; however, NRCS pays up to 75 percent of the eligible restoration costs.

30-year contracts: Acreage owned by Indian Tribes can be enrolled through the use of a 30-year contract which shall be equivalent in value to a 30-year easement.

For both permanent and 30-year easements, WRP pays for all the overhead costs associated with recording the easement in the local land records office including recording fees, charges for title abstracts, surveys, appraisal fees, records searches, and title insurance associated with acquiring an easement. These overhead costs are generally not paid to participants but are provided directly to the vendor performing the service. Therefore, payments appearing on USDAspending.gov will be reflective of payments to participants and payments to vendors for services associated with restoration and management activities and administrative costs associated with recording an easement.

Under Credentials/Documentation

Eligible applicants must be in compliance with the highly erodible land and wetland conservation provisions in 7 CFR part 12 and the Adjusted Gross Income provisions in 7 CRP part 1400. They must be the landowner of the eligible land being offered for participation. For easement applications, the applicant must have owned the land for the 7-year period prior to the time the land is determined eligible for enrollment unless it is determined that the land was acquired by will or succession as a result of death of the previous owner; the ownership change occurred due to foreclosure and the owner of the land immediately before foreclosure exercises a right of redemption from the mortgage holder; or the land was acquired under circumstances that give adequate assurances, as determined by NRCS that such land was not acquired for the purposes of placing it in the program. Applicant Eligibility:

An individual landowner, partnership, association, corporation, estate, trust, other business or other legal entities and, Indian tribe. Beneficiary Eligibility:

An individual landowner, partnership, association, corporation, estate, trust, other business enterprises or other legal entities and, Indian tribe.

Credentials/Documentation:

The landowner must have owned the land offered for at least the preceding 12 months prior to the end of the period in which the intent to participate in an easement is declared unless the land was acquired by will or succession as a result of the death of the previous owner; or the Department determines that the new owner did not acquire such land for the purpose of placing it in the WRP. The 12-month requirement is not applicable to restoration agreement. This program is excluded from coverage under OMB Circular No. A-87. Preapplication Coordination:

Preapplication coordination is required. An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedures:

OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. Submit an application to enroll to the local NRCS office that serves the area in which the farm or ranch is located during the designated sign-up period.

Award Procedure:

The States will provide a list of potential acceptable offers and request for allocation of funds. The Department will allocate funding in a manner designed to achieve cost effectiveness and maximum wetland restoration based wildlife benefits. The States will notify the landowners of the status of their application. This process will be completed as soon as practical after funding becomes available. For all tentatively accepted applications, a determination of easement compensation value will be made according to the current procedures as prescribed by the Secretary.

Deadlines:

Not Applicable.

Range of Approval/Disapproval Time:

From 60 to 180 days after the application is filed with the NRCS. Landowner application may remain on sign-up list for subsequent funding consideration. Appeals:

Landowner may appeal certain determinations to the National Appeals
Division.

Renewals:

The land offered may be re-offered in a future sign-up unless land or landowner is ineligible.

Formula and Matching Requirements:

This program has no statutory formula.

Matching Requirements: Lump sum payments or no less than 5 nor more than
30 annual payments of equal or unequal value are made for easements.
Cost-share payments of 100 percent of the cost of implementing the Wetland
Restoration Plan will be paid for a permanent easement with 75 percent of
permanent easement amounts being paid for 30-year easements, 30-year
contracts and restoration cost-share agreements.

MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance:

Cash easement payments will be made in a lump sum amount, or in annual installments beginning at closing. Cost share payments for implementation of easement practices will be made when a specific practice has been implemented by either the landowner or contractor. See the following for information on how assistance is awarded/released: Cash easement payments will be made in a lump sum amount, or in annual installments beginning at closing. Cost share payments for implementation of easement practices will be made when a specific practice has been implemented by either the landowner or contractor. Reports:

No reports are required. Audits:

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Recipients are subject to audit by the Office of Inspector General, USDA. Records:

Records will be maintained in the county NRCS office, State NRCS office and Federal Record Centers for the length of the agreement. The easement (deed restriction) and applicable documents will be filed in the local land records office for the duration of the easement. Agreements are filed with the Agency. Account Identification:

12-1080-0-1-302; 12-4336-0-1-302; 12-1004-0-1-302. Obligations:

(Salaries) FY 11 $45,686,318; FY 12 est $74,228,000; and FY 13 Estimate Not Available. (Project Grants (Discretionary)) FY 11 $523,034,288; FY 12 est $632,889,000; and FY 13 Estimate Not Available

Range and Average of Financial Assistance:

Not Applicable.

PROGRAM ACCOMPLISHMENTS:

Not Applicable.

REGULATIONS, GUIDELINES, AND LITERATURE:

The program is announced through news media and in letters to agricultural landowners in the county. Regulations published in the Federal Register and 7 CFR XIV.

Regional or Local Office:

See Regional Agency Offices. Consult the local telephone directory for location of the NRCS office. If no listing, contact the appropriate State NRCS office listed in the NRCS Section of Appendix IV of the Catalog.

Headquarters Office:

Steve Parkin 14th and Independence Ave., SW.

Room 6817-S

, Washington, District of Columbia 20250 Email: Steve.Parkin@wdc.usda.gov Phone: 202-720-1854

Website Address:

http://www.nrcs.usda.gov.

RELATED PROGRAMS:

10.069 Conservation Reserve Program; 10.904 Watershed Protection and Flood Prevention; 10.913 Farm and Ranch Lands Protection Program; 10.920 Grassland Reserve Program

EXAMPLES OF FUNDED PROJECTS:

Not Applicable.

CRITERIA FOR SELECTING PROPOSALS:

All offers are screened at both the local and State level to determine the acceptability of the application to ensure that offers will not be accepted in excess of the value as determined by the method prescribed by the Secretary. Offers will be evaluated based on the environmental benefits and government expenditures on restoration and easement purchase and the requirement that wildlife benefits be maximized.

10.080 MILK INCOME LOSS CONTRACT PROGRAM (MILC)

FEDERAL AGENCY:

Farm Service Agency, Department of Agriculture
AUTHORIZATION:

Food, Conservaton and Energy Act of 2008, Title 1, Part E, Section 1506,
Public Law 110-246, 7 U.S.C 7981-7982.

OBJECTIVES:

To maintain and expand existing markets for dairy which are vital to the welfare of milk producers in the United States. Payments under this program will be limited to dairy operations that produced milk in the United States and commercially marketed milk during the period of October 1, 2007 through September 30, 2012.

TYPES OF ASSISTANCE:

DIRECT PAYMENTS WITH UNRESTRICTED USE

USES AND USE RESTRICTIONS:

Each fiscal year, eligible dairy operations can receive a monthly payment based on monthly milk marketing, up to a maximum of 2.4 million pounds per dairy operation, for fiscal year October 1, 2007 through September 30, 2008. Maximum eligible pounds increase to 2.985 million pounds from October 1, 2008 through August 31, 2012, except that the cap reduces back to 2.4 million pounds during the month of September, 2012. Dairy operations who make changes to their producer status or who reconstitute their farm operations on or after October 1, 2007 for the sole purpose of receiving additional payments will not be eligible for the benefits under the program implemented by this rule. Applicant Eligibility:

To be eligible, dairy producers must: (1) have produced milk in the United States and commercially marketed the milk produced anytime during the period of October 1, 2007 through September 30, 2012; (2) enter into a MILC contract during the contract application period; (3) agree to all terms and conditions in the MILC contract and comply with instructions issued by the Commodity Credit Corporation; (4) provide proof of monthly milk production commercially marketed by all persons in the dairy operation during the contract period, to determine the total pounds of milk that will be converted to hundredweight (cwt.) used for payment; (5) submit timely production evidence according to Sec. 1430.209; (6) be actively engaged in the business of producing and marketing agricultural products at the time of signing the MIL contract; (7) certify compliance with highly erodible land and Wetland provisions; (8) be in compliance with average adjusted gross income limitations; and (9) comply with start month selection provisions.

Beneficiary Eligibility:

Eligible dairy producers are those who, beginning October 1, 2007 through

September 30, 2012: (1) commercially produce and market cow milk in the United States, or (2) produce milk in the United States and commercially market the milk outside the United States. In addition, dairy producers from a foreign country who are admitted to the United States and have a valid taxpayer identification number are eligible for MILC contract benefits. Credentials/Documentation:

Before MILC contract payments are issued, all persons involved in a single dairy operation must provide evidence of eligible marketing. Verifiable production evidence can include: (1) milk marketing payment stubs, (2) tank records, (3) milk handler records, (4) daily milk marketing, and (5) copies of any payments received as compensation from other sources. OMB Circular No. A-87 applies to this program.

Preapplication Coordination:

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedures:

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. To apply for the MILC program, dairy operation producers must submit form CCC-580, "Milk Income Loss Contract," to Farm Service Agency (FSA) county office where the dairy operation is located. The CCC-580 must show total pounds of all milk produced and marketed during each month for all persons receiving a share of the marketed milk. Monthly milk production may not be apportioned to circumvent the maximum payment quantity. All persons who share in the risk of a dairy operation's total production must certify information on the CCC-580. FSA will accept only one CCC-580 per operation. When applying for MILC, operators must also have on file: (1) form AD-1026, "Highly Erodible Land Conservation and Wetland Conservation Certification," used to certify understanding of the conservation compliance requirements under USDA programs; and (2) form SF-3881, "Direct Deposit Sign Up Form," used to sign up for the direct deposit of payments into the payee's account. Award Procedure:

The Price Support Division (PSD) in Washington DC is responsible for the implementation of the MILC program in county offices. They will manage the contracts and determine the eligibility of monthly payments for each contract. Deadlines:

Oct 01, 2007 to Sep 30, 2012 Please contact the program contact listed in the
Information Contacts section below.

Range of Approval/Disapproval Time:
From 1 to 60 days.

Appeals:

Any producer who is dissatisfied with a determination may request reconsideration or appeal of such determination under Part 11 or 780 of 7 CFR Part 1430.

Renewals:

Not Applicable.

Formula and Matching Requirements:

Statutory Formula: Title 7, Chapter CFR, Part 1430, Subpart B, Public Law 110-246. Payments under this program may be made to dairy operations when the Boston Class 1 milk price is below $16.94 per cwt., after adjustment for the cost of dairy feed rations. No payments will be made to dairy operations for marketing during the months that the Boston Class 1 milk price exceeds $16.94. Matching requirements are not applicable to this program.

MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance:

Except as provided in Sections 1430.205 and 1430.206, contracts entered into
by producers in a dairy operation shall cover eligible production marketed by
producers during the period beginning with the first day of the month producers
enter into contract and ending on September 30, 2012. If a dairy goes out of
business during the contracted period, the MILC program will be terminated
immediately, except as applicable to earned payments. Method of
awarding/releasing assistance: lump sum.

Reports:

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