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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

NOTICE: NOTICES

DOCUMENT ACTION: Notice.

SUBJECT CATEGORY: In-Handling Charges for Commodities Pledged as Collateral for Marketing Assistance Loan

DATES: Effective Date: May 8, 2008.

DOCUMENT SUMMARY: The Commodity Credit Corporation (CCC) will discontinue reimbursing producers or warehouse operators for inhandling charges. This begins with the 2008crop for all commodities except cotton. Producers must pay or provide for all inhandling charges on warehouse stored commodities before CCC will accept commodities as collateral for a warehousestored marketing assistance loan. Also, producers must pay or provide for the payment of inhandling charges for farmstored commodities that are delivered to a warehouse in settlement of a farm stored marketing assistance loan.

SUMMARY: In-Handling Charges for Commodities Pledged As Collateral for Marketing Assistance Loan,

SUPPLEMENTAL INFORMATION

The Farm Security and Rural Investment Act of 2002 (Pub. L. 107171) (2002 Farm Bill) authorizes the marketing assistance loan program for all commodities. In the past, CCC paid warehouse operators or reimbursed producers for inhandling charges on forfeited commodities that were pledged as collateral for warehouse stored marketing assistance loans or delivered to CCC in satisfaction of a farmstored marketing assistance loan.

Starting with the 2008crop year, CCC will no longer pay warehouse operators or reimburse producers for inhandling charges that are applicable to either warehousestored commodities that are pledged as collateral for marketing assistance loans or farmstored
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commodities that are forfeited to CCC in satisfaction of a farmstored marketing assistance loan.

Beginning with 2008crop marketing assistance loans, producers must pay or provide for the payment of inhandling charges on warehouse stored commodities before CCC will accept the commodity as collateral for a warehousestored marketing assistance loan.

Beginning with the 2008crop of wheat, feed grains, soybeans, rice, pulses, minor oilseeds, peanuts, honey, wool, and mohair, producers must provide documentation that all inhandling charges have been paid or provided for before a warehousestored marketing assistance loan will be disbursed for the commodity. Acceptable documentation will include specific information recorded directly on the warehouse receipt pledged as collateral for a marketing assistance loan. If the information is not recorded directly on the warehouse receipt that is pledged as loan collateral, separate documentation that is signed by the warehouse operator that includes the following language will be accepted as evidence that inhandling charges have been paid or provided for if the document is presented in conjunction with a warehouse receipt that is pledged as collateral for a warehousestored marketing assistance loan:

Arrangements for the payment of inhandling charges have been made by the depositor of the commodity covered by receipt number (Insert Receipt Number). No lien will be asserted by the warehouse operator against the Commodity Credit Corporation or any subsequent holder of the warehouse receipt for inhandling charges.

Failure to present the required documentation that inhandling charges have been paid or provided for will result in the commodity represented by the warehouse receipt being determined ineligible as collateral for the marketing assistance loan until the documentation is submitted to the applicable Farm Service Agency county office.

For commodities pledged as collateral for farmstored marketing assistance loans that are forfeited to CCC in satisfaction of an outstanding loan, the producer or warehouse operator that is accepting delivery of the forfeited commodity must provide documentation that in handling charges have been paid or provided for before the loan settlement will be recorded. If the evidence is not provided as part of the delivery documentation, CCC will reduce the producer's settlement value for the forfeited commodity to reflect the amount of unpaid in handling charges, at the rate provided in the warehouse's public tariff rates. In the event that a deduction from settlement proceeds is made, CCC will forward the withheld amount to the storing warehouse operator on behalf of the producer and will report the amount paid to the Internal Revenue Service (IRS).

Signed at Washington, DC, on May 1, 2008.
Glen L. Keppy,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. E810179 Filed 5708; 8:45 am]
BILLING CODE 341005P

FOR FURTHER INFORMATION CONTACT Helen Linden, Assistant to the Director, Warehouse and Inventory Division, Farm Service Agency, USDA, STOP 0553, 1400 Independence Avenue, SW., Washington, DC 202500553; telephone: (202) 6904321; email: helen.linden@wdc.usda.gov. Persons with disabilities who require alternative means for communication (Braille, large print, audiotape, etc.) should contact the USDA Target Center at (202) 7202600 (voice and TDD).