(a) If any installment or installments on any loan made available by CCC on farm-storage facilities or Mobile Drying Equipment are payable under the provisions of the note evidencing such loan, out of any amount due the producer under the program provided for in this subpart, the producer must designate CCC or the lending agency holding such note as payee of such amount to the extent of such installments, but not to exceed that portion of the amount remaining after deduction of service charges and amounts due prior lienholders.

(b) If the producer is indebted to CCC, or if the producer is indebted to any other agency of the United States, and such indebtedness is listed on the county debt record, amounts due the producer under the program provided for in this subpart, after deduction of amounts payable on farm-storage facilities or Mobile Drying Equipment and other amounts provided in paragraph (a) of this section, shall be applied, as provided in the Secretary's Set-off Regulations, 7 CFR Part 13 (23 F. R. 3757), to such indebtedness.

Payment to the producer for flaxseed purchased under this program shall be made by the ASCS county office by means of sight draft drawn on CCC, and on the basis of the purchase documents indicated in § 421.633, subject to the provisions relating to setoffs and service charges.

§ 421.642 Purchase prices, premiums and discounts.

(a) 1961 county purchase prices. Basic purchase prices per bushel of eligible flaxseed of the 1961 crop produced in the authorized counties listed below which is delivered to authorized dealers under this program for the account of CCC will be at the rate established for the county where the flaxseed is delivered. The basic purchase prices for flaxseed grading No. 1 and containing from 10.6 to 11.0 percent moisture are as follows:

(b) 1961 terminal market purchase prices. (1) The basic purchase price shall be $2.82 per bushel for No. 1 flaxseed containing 10.6 to 11.0 percent moisture delivered by rail in carload lots to authorized dealers at the Corpus Christi and Houston, Texas, terminal markets.

(2) The basic purchase price for flaxseed of such grade and quality delivered by truck to authorized dealers at the above terminal markets will be purchased by CCC under this program on the basis of the terminal rate minus 41⁄2 cents per bushel.

(c) Grade discount. The basic purchase price for No. 2 flaxseed shall in all instances be 6 cents per bushel less than the price indicated for No. 1 flaxseed.

(d) Premiums for low moisture content. The following premiums for low moisture content are applicable to eligible flaxseed:

Stabilization and Conservation Service, under the general direction and supervision of the Executive Vice President, Commodity Credit Corporation, and will be carried out in the field by the State and county Agricultural Stabilization and Conservation Committees (referred to in this subpart as State and county committees). State and county committees do not have authority to modify or waive any of the provisions of this subpart or any amendments or supplements thereto.

§ 421.902 Applicability of §§ 421.901 to 421.906.

Sections 421.901 to 421.906 state the eligibility requirements for price support for producers of 1961-crop corn, grain sorghums, barley, oats and rye with respect to participation in the 1961 Feed Grain Program and also state the maximum quantity of corn and grain sorghums on which price support may be received by eligible producers. The regulations in this subpart are in addition to other regulations to be issued by the Commodity Credit Corporation governing eligibility for price support.

As used in the regulations in this subpart and in all instructions, forms and documents in connection therewith, the words and phrases defined in this section shall have the meaning assigned to them herein unless the context or subject matter otherwise requires. The following words or phrases are defined in 7 CFR Part 719 (Reconstitution of Farms, Farm Allotments and Farm History and Soil Bank Base Acreages, 23 F.R. 6731), as amended, and shall have the meaning assigned to them by such regulations: "person," "operator," "State committee,' "State Administrative Officer," "county committee" and "farm." The following words or phrases are defined in Part 495 of this chapter (1961 Feed Grain Program Regulations, 26 F.R. 5356), and any amendments thereto, and shall have the meaning assigned to them by such regulations: "Producer," "corn acreage," "grain sorghum acreage," "maximum permitted acres," "permitted acreage," "intended diverted acreage," and "feed grain base."

§ 421.904

Compliance requirements.

(a) Eligibility requirements for price support on corn and grain sorghums. A producer shall not be eligible for price support on corn or grain sorghums unless the producer and the farm on which the commodity is produced are in compliance with the requirements for participation in the 1961 Feed Grain Program as specified in § 495.5 of this chapter (1961 Feed Grain Program Regulations, 26 F.R. 5356).

(b) Eligibility requirements for price support on barley, oats and rye. A producer shall not be eligible for price support on barley, oats and rye unless the producer and the farm on which the commodity is produced are in compliance with the requirements for participation in the 1961 Feed Grain Program as specified in § 495.5 of this chapter (1961 Feed Grain Program Regulations, 26 F.R. 5356), or unless there is no feed grain base and no corn and grain sorghums of the 1961 crop were planted on the farm on which the commodity was produced.

(c) Producer's responsibility to report interest in other farms. A producer who wishes to obtain price support on corn, grain sorghums, barley, oats or rye shall inform the county committee of any other farm in which he has an interest or will have an interest in the 1961 crop of corn and grain sorghums.

§ 421.905 Quantity of corn and grain sorghums eligible for price support and establishment of farm normal yield.

(a) Quantity eligible for price support. An eligible producer may receive price support on his share as producer of a quantity of corn and grain sorghums produced on a farm in 1961 which does not exceed the farm normal yield established for the commodity multiplied by the corn or grain sorghum acreage, as applicable, on the farm. If the 1961 crop of corn or grain sorghums was produced on both irrigated and non-irrigated land, the quantity of such commodity eligible for price support shall be the sum of the following:

(1) The irrigated farm normal yield multiplied by the irrigated corn or grain sorghum acreage, as applicable, or the irrigated portion of the feed grain base for the farm, whichever is the smaller, and

(2) The non-irrigated farm normal yield for the commodity multiplied by the amount, if any, that the corn or grain sorghum acreage exceeds the smaller of the irrigated corn or grain sorghum acreage, as applicable, or the irrigated portion of the feed grain base for the farm.

(b) Farm normal yield. The farm normal yield for corn or grain sorghums means the average adjusted yield per acre for the 1959 and 1960-crop acreage of the commodity established by the county committee for the commodity on the farm, on the basis of the productivity index determined for the farm in accordance with the 1961 Feed Grain Program Regulations and on the basis of the county average yield for the commodity as published in §§ 495.51 to 495.53 of this chapter (Supplement 1 to the 1961 Feed Grain Program Regulations, 26 F.R. 5603). If a request for reconsideration, an appeal or correction under the 1961 Feed Grain Program Regulations results in an adjustment in the payment rate established for the farm because of revision in the average adjusted yield per acre for the 1959 and 1960-crop acreage of the commodity on the farm, the farm normal yield shall be based on such revised adjusted yield per acre.

§ 421.906 Effect of unknowingly exceeding farm maximum permitted acreage; method of determination. The corn and/or grain sorghum acreage on a farm shall not be deemed to be in excess of the maximum permitted acreage for the purpose of price support unless the operator knowingly exceeded such acreage. If the maximum permitted acreage is in fact exceeded, such acreage shall be considered as having been knowingly exceeded unless the operator of the farm establishes to the satisfaction of the county committee in accordance with paragraph (a), (b) or (c) of this section that he has not knowingly exceeded his maximum permitted acreage and the determination of the county committee is approved on review by the State administrative officer.

(a) Erroneous notice of maximum permitted acreage. The maximum permitted acreage for the farm will not be considered to be knowingly exceeded in any case where through error in a county or State office, the farm operator was officially notified in writing on Form CSS-471 of the maximum permitted

acreage for the 1961 crop which was larger than the finally approved maximum permitted acreage and the farm operator or any producer on the farm acting solely on the information contained in the erroneous notice planted an acreage to corn and/or grain sorghums in excess of the finally approved maximum permitted acreage and where the other conditions of this paragraph are satisfied. The determination of eligibility for price support for the farm under the foregoing circumstances will be based on the maximum permitted acreage contained in the erroneous notice, and if the acreage planted to corn and/or grain sorghums on the farm is adjusted to the maximum permitted acreage contained in the erroneous notice within the time limits for disposal of excess acreages provided in 7 CFR Part 718 (Determination of Acreage and Performance, 22 F.R. 3747), and any amendments thereto, the farm will not be considered to be overplanted. Before the farm operator or any producer on the farm can be said to have relied upon the erroneous notice, the circumstances must have been such that he had no cause to believe that the maximum permitted acreage notice was in error. To determine this fact, the date of any corrected notice in relation to the time of planting, the size of the farm, the amount of corn and/or grain sorghums customarily planted, and all other pertinent facts shall be taken into consideration.

(b) Erroneous notice of measured acreage. The maximum permitted acreage for the farm will not be considered to be knowingly exceeded in any case where (1) the lack of compliance was caused by reliance in good faith by the farm operator on an erroneous notice of measured acreage issued in accordance with applicable regulations; (2) neither the farm operator nor any producer on the farm had actual knowledge of the error in time to adjust the excess acreage in accordance with applicable regulations; (3) the incorrect notice was the result of an error made by the performance reporter or by another employee of the county or State office in reporting, computing or recording the corn and/or grain sorghum acreage for the farm; (4) neither the farm operator nor any producer on the farm was in any way responsible for the error; and (5) the extent of the error in the erroneous notice was such that the farm operator would

not reasonably be expected to question the acreage of which he was erroneously notified.

(c) Failure to measure acreage or notify operator. The maximum permitted acreage for the farm will not be considered to be knowingly exceeded in any case where through no fault of the farm operator or any producer on the farm the corn and/or grain sorghum acreage was not measured or the farm operator was not notified of the measured acreage prior to the time the crop is harvested from the acreage; Provided, That the excess acreage was relatively small and the farm operator establishes that because of the relative smallness of the excess and the unavailability to him of any recent measurements of the field acreages on the farm, he had no reason to believe the corn and/or grain sorghum acreage was in excess of the maximum permitted acreage for the farm. Subpart-General Provisions 1962

Crop Price Support Programs for Grains and Related Commodities AUTHORITY: §§ 421.1101 to 421.1132 issued under sec. 4, 62 Stat. 1070, as amended; sec. 5, 62 Stat. 1072, secs. 101, 105, 301, 401, 405, 63 Stat. 1051, as amended; 15 U.S.C. 714 b and c; 7 U.S.C. 1441, 1447, 1421, 1425.

SOURCE: §§ 421.1101 to 421.1132 contained in 1962 CCC Grain Price Support Bulletin 1, 27 F.R. 4411, May 9, 1962, except as otherwise noted.

(a) The programs to which this subpart applies will be administered by ASCS under the general direction and supervision of the Executive Vice President, CCC, and in the field will be carried out by Agricultural Stabilization and Conservation State committees and Agricultural Stabilization and Conservation county committees (called State and county committees in this subpart) and ASCS commodity offices.

(b) Producers interested in participating in any program should contact their county office through which the price support documents will be distributed.

(c) All documents will be approved by the county office manager, or other employee of the county office designated by him to act in his behalf. Such designations shall be on file in the county office.

(d) Copies of all price support documents shall be retained in the county office.

The provisions of this subpart shall apply to 1962-crop price support programs for barley, corn, dry edible beans, flaxseed (except direct purchases), grain sorghums, oats, rice, rye, soybeans, wheat, and any other 1962-crop price support program for which a commodity supplement to this subpart is issued. Commodities produced in violation of restrictive leases on federally owned land shall not be eligible for price support. Commodities produced on land which is owned by the Federal Government and which is occupied without a lease, permit, or other right of possession shall not be eligible for price support.

§ 421.1103 Methods of price support.

Price support will be made available through farm-storage loans, warehousestorage loans, and purchase agreements. The particular methods to be used for each commodity will be specified in the applicable commodity supplement to this subpart.

(a) An eligible producer shall be an individual, partnership, association, corporation, estate, trust, or other legal entity, and whenever applicable, a State, political subdivision of a State, or any agency thereof producing the commodity in 1962 as landowner, landlord, tenant, or sharecropper and in the case of rice shall include an irrigation company, or other legal entity, furnishing water for a share of the rice crop.

(b) In the case of corn, grain sorghums, barley, rice and wheat, a producer shall not qualify as an eligible producer unless he is in compliance with the applicable requirements for eligibility for price support prescribed in §§ 421.1123 to 421.1130.

(c) Receivers of an insolvent debtor's estate, executors, and administrators of a deceased person's estate, guardians of an estate of a ward or an incompetent person, and trustees of a trust estate will be considered to represent the insolvent

debtor, the deceased person, the ward or incompetent, and the beneficiaries of a trust respectively, and the production of the receivers, executors and administrators, guardians, and trustees shall be considered to be the production of the persons they represent, provided the loan or purchase agreement documents executed by them are legally valid.

(d) A minor shall be eligible for price support only if he meets one of the following requirements: (1) The right of majority has been conferred on him by court proceedings, (2) a guardian has been appointed to manage his property and the applicable price support documents are signed by the guardian; (3) any note signed by the minor is cosigned by a financially responsible person; or (4) a bond is furnished under which a surety guarantees to protect CCC from any loss incurred for which the minor would be liable had he been an adult.

(e) Two or more eligible producers may obtain a joint loan on an eligible commodity produced by them if stored in the same farm-storage facility or, in the case of a warehouse-storage loan, if the warehouse receipt is issued jointly. Each producer who obtains a joint loan will be jointly and severally liable for the obligations under the loan documents and under this subpart.

(f) If the county office has experienced difficulties in settling farm-storage loans with a producer, the county committee shall determine that the producer is not eligible for farm-storage loans and such determination shall remain in effect unless the State committee, after a review of the facts, determines that CCC would be adequately protected from loss if the producer receives a farm-storage loan. If an otherwise eligible producer is denied a farm-storage loan, he shall be eligible to obtain a warehouse-storage loan or sign a purchase agreement.

(g) If a producer has made a fraudulent representation in connection with past warehouse-storage or farm-storage loans or purchase agreements, he shall be denied further price support unless he furnishes such evidence as establishes to the satisfaction of the county committee that both he and the commodity offered for price support meet all eligibility requirements.

(h) Warehouse-storage loans may be made to a warehouseman who tenders to CCC warehouse receipts issued by him on a commodity produced by him only in