Programs Submission Response: ARC/PLC

Correction to a CCC 861 or CCC 862 after the contract period is not allowed.

A CCC 861 was timely filed and timely approved for 2014. The contract had shares transposed between 2 producers resulting in the producers receiving the wrong payments. One of the producers contacted the office regarding the error when he received his payment. A request has to be submitted to the State Office for misaction/misinformation and then forward to DAFP for approval. The current process to make a correction is time consuming. There is no guarantee that this will be approved. Under the current process the producer may be penalized for being forth right about the error. (For example, if a farmer and landlord were on the contract with 60/40 shares and we entered 40/60, under the current correction process, if approved, each producer would get 40% of the payment. Had the producers not said anything, they could keep the whole payment.) Producers may appeal if misaction/misinformation is not approved which will cost the producer and the government time and money.

Can COC or SED be allowed to determine that there was no intentional misrepresentation by any of the producers and, provided there was a timely submitted CCC-861 or CCC-862, allow the producers to sign a corrected CCC-861 or CCC-862 after the contract period and have payments recomputed?

Producers are expected to review the forms prior to signing them, but with the combined 2014 & 2015 enrollment period many producers were reviewing a significant number of contracts. There may be an above average amount of honest mistakes and allowing an expedited relief process might be beneficial. 

Filing a contract after the end of the contract period (after the end of the enrollment period for 2014 and 2015) is not allowed. Any contract filed after the end of the appropriate period is subsequently not eligible for consideration to be approved. Once it is known that the contract is not correct, only DAFP has authority to act on the contract. 

Misaction and/or misinformation cannot be used as a request for relief in this case as the producer had a reason to know that the shares on the contract were not correct. The reason the producer had a reason to know is because the contract was signed with incorrect shares. The only relief that may be considered in these types of situations is programmatic relief as described in paragraph 252 of 1-ARCPLC.