[Federal Register: May 8, 2008 (Volume 73, Number 90)]
[Notices]               
[Page 26074-26075]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08my08-40]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

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

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

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

DATES: Effective Date: May 8, 2008.

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 20250-0553; 
telephone: (202) 690-4321; e-mail: 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) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: The Farm Security and Rural Investment Act 
of 2002 (Pub. L. 107-171) (2002 Farm Bill) authorizes the marketing 
assistance loan program for all commodities. In the past, CCC paid 
warehouse operators or reimbursed producers for in-handling charges on 
forfeited commodities that were pledged as collateral for warehouse-
stored marketing assistance loans or delivered to CCC in satisfaction 
of a farm-stored marketing assistance loan.
    Starting with the 2008-crop year, CCC will no longer pay warehouse 
operators or reimburse producers for in-handling charges that are 
applicable to either warehouse-stored commodities that are pledged as 
collateral for marketing assistance loans or farm-stored

[[Page 26075]]

commodities that are forfeited to CCC in satisfaction of a farm-stored 
marketing assistance loan.
    Beginning with 2008-crop marketing assistance loans, producers must 
pay or provide for the payment of in-handling charges on warehouse-
stored commodities before CCC will accept the commodity as collateral 
for a warehouse-stored marketing assistance loan.
    Beginning with the 2008-crop of wheat, feed grains, soybeans, rice, 
pulses, minor oilseeds, peanuts, honey, wool, and mohair, producers 
must provide documentation that all in-handling charges have been paid 
or provided for before a warehouse-stored 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 in-handling 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 warehouse-stored 
marketing assistance loan:

    Arrangements for the payment of in-handling 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 in-handling charges.

    Failure to present the required documentation that in-handling 
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 farm-stored 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. E8-10179 Filed 5-7-08; 8:45 am]

BILLING CODE 3410-05-P