B-129167, JUNE 28, 1957, 36 COMP. GEN. 831

B-129167, JUNE 28, 1957, 36 COMP. GEN. 831

SOIL BANK ACT - REGULATIONS - PAYMENTS IN EXCESS OF REDUCED ALLOTMENTS - ERRONEOUS ADMINISTRATIVE INFORMATION THE AUTHORITY IN THE SOIL BANK ACT FOR PAYMENTS ONLY ON THE BASIS OF REDUCTIONS IN ACREAGE BELOW THE FARM ACREAGE ALLOTMENT, OR THE FARM BASE ACREAGE, PRECLUDES THE ISSUANCE OF REGULATIONS WHICH WOULD AUTHORIZE PAYMENTS BASED ON ACREAGES IN EXCESS OF THE ALLOTMENT OR BASE TO THOSE PRODUCERS WHO WERE FURNISHED ERRONEOUS INFORMATION CONCERNING THE ALLOTMENT OR BASE AND PARTICIPATED IN THE PROGRAM, IN GOOD FAITH, ON THE BASIS OF THE ERRONEOUS INFORMATION.

TO THE SECRETARY OF AGRICULTURE, JUNE 28, 1957:

LETTER OF JUNE 10, 1957, FROM THE ACTING SECRETARY OF AGRICULTURE, REQUESTS OUR DECISION WHETHER YOU LEGALLY MAY AMEND THE REGULATIONS GOVERNING THE 1956 ACREAGE RESERVE PART OF THE SOIL BANK PROGRAM AS STATED BELOW.

SECTION 485.114 OF THE REGULATIONS GOVERNING THE 1956 ACREAGE RESERVE PROGRAM (21 F.R. 4383) PROVIDES AS FOLLOWS:

SECTION 485.114 AMOUNT OF COMPENSATION. THE AMOUNT OF COMPENSATION FOR EACH COMMODITY SHALL BE DETERMINED BY MULTIPLYING THE RATE OF COMPENSATION PER ACRE FOR THE COMMODITY, DETERMINED IN ACCORDANCE WITH SECTION 485.115, BY THE SMALLEST OF (A) THE NUMBER OF ACRES IN THE ACREAGE RESERVE, (B) THE ACREAGE BY WHICH THE COMMODITY IS REDUCED BELOW THE ALLOTMENT, OR IN THE CASE OF CORN, THE SOIL BANK CORN BASE, OR (C) THE NUMBER OF ACRES WHICH THE PRODUCER AGREES TO PLACE IN THE ACREAGE RESERVE: PROVIDED, THAT NO COMPENSATION WILL BE PAID FOR THE PARTICULAR COMMODITY IF THE ACREAGE SO DETERMINED IS BELOW THE MINIMUM ACREAGE WHICH MAY BE PLACED IN THE ACREAGE RESERVE.

THE ACTING SECRETARY'S LETTER STATES THAT, IN NUMEROUS CASES, PRODUCERS WHO HAVE FULLY PERFORMED THEIR ACREAGE RESERVE AGREEMENTS REGARDING LAND DESIGNATED AS THE ACREAGE RESERVE HAVE RECEIVED GREATLY REDUCED, AND IN SOME INSTANCES NO, COMPENSATION AS A RESULT OF RELYING ON ERRONEOUS OR MISLEADING INFORMATION CONCERNING THEIR ALLOTMENTS OR ACREAGE MEASUREMENTS. THE FOLLOWING TWO EXAMPLES ARE SET OUT AS TYPICAL OF EXISTING CASES:

1. THE PRODUCER IS INFORMED THAT HE HAS A 50 ACRE WHEAT ALLOTMENT AND, ACTING IN GOOD FAITH ON THE BASIS OF SUCH INFORMATION, PLACES 10 ACRES OF WHEAT IN THE ACREAGE RESERVE AND HARVESTS 40 ACRES OF WHEAT. PERFORMING HIS ACREAGE RESERVE AGREEMENT THE PRODUCER DESTROYS A CROP, OTHER THAN WHEAT, ON THE 10 ACRES DESIGNATED AS THE ACREAGE RESERVE. THE PRODUCER IS NOT NOTIFIED OF HIS CORRECT 40 ACRE WHEAT ALLOTMENT IN TIME TO PERMIT HIM TO DESTROY THE EXCESS ACREAGE OF WHEAT. THE RESULT IS THAT THERE HAS BEEN NO REDUCTION IN WHEAT ACREAGE BELOW THE FINAL CORRECTED WHEAT ALLOTMENT, ALTHOUGH THE PRODUCER HAS DESTROYED A CROP ON THE 10 ACRES IN THE ACREAGE RESERVE IN ORDER TO COMPLY WITH THE TERMS OF THE AGREEMENT WHICH HE SIGNED.

2. THE PRODUCER HAS A CORN BASE ACREAGE OF 55 ACRES AND IS INFORMED THAT HIS MEASURED ACREAGE OF CORN IS 40 ACRES. ON THIS BASIS, IN GOOD FAITH, THE PRODUCER PLACES 15 ACRES OF CORN IN THE ACREAGE RESERVE AND DESIGNATES A 15 ACRE TRACT, ON WHICH HE DESTROYS A GROWING CROP, AS THE ACREAGE RESERVE. THE PRODUCER IS NOT NOTIFIED THAT THE CORRECT CORN MEASUREMENT IS 50 ACRES INSTEAD OF 40 ACRES IN TIME TO PERMIT HIM TO DESTROY THE EXCESS ACREAGE OF CORN. THE RESULT IS THAT THERE HAS BEEN A REDUCTION OF ONLY 5 ACRES BELOW THE CORN BASE ALTHOUGH THE PRODUCER HAS DESTROYED A CROP ON THE 15 ACRES IN THE ACREAGE RESERVE IN ORDER TO COMPLY WITH THE TERMS OF THE AGREEMENT WHICH HE SIGNED.

THE LETTER FURTHER STATES THAT UNDER THE EXISTING REGULATION THE PRODUCER IN THE FIRST EXAMPLE CAN BE PAID NO COMPENSATION, AND IN THE SECOND EXAMPLE HE CAN BE COMPENSATED ONLY FOR 5 ACRES EVEN THOUGH THE FAILURE IN EACH CASE TO REDUCE BELOW THE ALLOTMENT OR CORN BASE TO THE EXTENT OF THE ACREAGE PLACED IN THE RESERVE IS DUE TO NO FAULT OF THE PRODUCER, SINCE THE ESTABLISHMENT OF AN ALLOTMENT OR A CORN BASE, THE MEASUREMENT OF THE ACREAGE OF A CROP ON THE FARM, AND THE FURNISHING OF SUCH INFORMATION TO THE PRODUCER ARE ADMINISTRATIVE ACTS PERFORMED BY EMPLOYEES OF THE GOVERNMENT. THEREFORE, YOUR DEPARTMENT PROPOSES TO AMEND THE 1956 REGULATIONS TO PROVIDE THAT, IN ANY CASE WHERE A PRODUCER IS GIVEN ERRONEOUS INFORMATION AS TO HIS ACREAGE ALLOTMENT OR MEASURED ACREAGE OF THE COMMODITY AND, IN GOOD FAITH, ACTED IN RELIANCE ON SUCH INFORMATION, THE ACREAGE ALLOTMENT OR MEASURED ACREAGE OF WHICH THE PRODUCER WAS SO ADVISED SHALL BE THE OFFICIAL ALLOTMENT OR MEASURED ACREAGE FOR PURPOSES OF THE 1956 ACREAGE RESERVE PROGRAM.

SECTION 103 (A) OF THE SOIL BANK ACT, PUBLIC LAW 540, APPROVED MAY 28, 1956, 70 STAT. 188, 7 U.S.C. 1821 (A), AUTHORIZES AND DIRECTS THE SECRETARY OF AGRICULTURE TO FORMULATE AND CARRY OUT AN ACREAGE RESERVE "UNDER WHICH PRODUCERS SHALL BE COMPENSATED FOR REDUCING THEIR ACREAGES OF THE COMMODITY BELOW THEIR FARM ACREAGE ALLOTMENTS OR THEIR FARM BASE ACREAGES, WHICHEVER MAY BE APPLICABLE" AND PROVIDES FURTHER THAT TO BE ELIGIBLE FOR SUCH COMPENSATION "THE PRODUCER (1) SHALL REDUCE HIS ACREAGE OF THE COMMODITY BELOW HIS FARM ACREAGE ALLOTMENT OR FARM BASE ACREAGE, WHICHEVER MAY BE APPLICABLE, WITHIN SUCH LIMITS AS THE SECRETARY MAY PRESCRIBE.' THIS LANGUAGE CLEARLY AUTHORIZES THE COMPENSATION OF PRODUCERS SOLELY FOR THE REDUCTION OF THEIR ACREAGES OF THE COMMODITY BELOW THEIR FARM ACREAGE ALLOTMENTS OR THEIR FARM BASE ACREAGES AND ANY COMPENSATION BASED UPON ACREAGE IN EXCESS OF SUCH REDUCTION IN ACREAGE IS NOT AUTHORIZED BY THE SOIL BANK ACT.

YOUR PROPOSED AMENDMENT TO THE 1956 REGULATIONS WOULD AUTHORIZE THE COMPENSATION OF PRODUCERS FOR ACREAGES IN EXCESS OF THEIR ACTUAL FARM ACREAGE ALLOTMENTS OR FARM BASE ACREAGE, WHICHEVER IS APPLICABLE. SINCE THE COMPENSATION OF PRODUCERS ON THAT BASIS WOULD NOT BE AUTHORIZED BY THE SOIL BANK ACT, OUR OPINION IS THAT THE ISSUANCE OF THE PROPOSED AMENDMENT TO THE 1956 REGULATIONS LEGALLY WOULD NOT BE PROPER.