PURPOSE: This rule describes the program cost, fee payment schedule and penalties for nonpayment of fees in the boll weevil eradication program.

1. (1) Upon passage of the grower referendum conducted under the provisions of section 263.527, RSMo Supp. 1998, all cotton growers in the affected regions as set out in 2 CSR 70-13.015, as defined by the Certified Cotton Growers Organization, shall be required to participate in the boll weevil eradication program as follows:

   1. (A) Upon implementation of a boll weevil eradication program, all growers shall file a cotton acreage reporting form with their local United States Department of Agriculture, Farm Service Agency (FSA) office by August 15, showing actual certified cotton acreage. At this time, a fee not to exceed fifteen dollars ($15) per acre, shall be assessed and paid based on certified acreage;
   2. (B) Each year the boll weevil eradication program is in operation, the Certified Cotton Growers Organization shall set an assessment fee by January 1 of each year, which shall not exceed fifteen dollars ($15) per acre; and
   3. (C) All fees paid by growers shall be submitted to the local FSA office and made payable to the Missouri Department of Agriculture.

2. (2) Growers underreporting by more than ten percent (10%) of the actual planted acreage, as determined by FSA certified or measured acreage, will be assessed a penalty of five dollars ($5) per acre on that acreage, in addition to the annual assessment fee. Growers underreporting acreage by more than ten percent (10%) due to emergency or hardship, may apply for a waiver. Any grower applying for a waiver shall make application in writing, to the director stating the conditions under which they request the waiver. The decision of whether or not to waive all or part of these requirements shall be made by the director and notification given to the grower within two (2) weeks after receipt of such application. The director shall base the decision upon the following:

   1. (A) Meteorological conditions;
   2. (B) Economic hardship; and
   3. (C) Any other uncontrollable destructive forces.
3. (3) Failure to pay all assessments due on or before August 15 deadline of the current growing season will result in a penalty fee of five dollars ($5) per acre. A grower who fails to pay all assessments, including penalties, within thirty (30) days of notice is subject to all provisions of section 263.534, RSMo Supp. 1998.
4. (4) A grower may apply for a waiver requesting delayed payment under conditions of financial hardship or bankruptcy. Any grower applying for a waiver shall make application in writing to the director on a form prescribed by the director. This request must be accompanied by a financial statement from a bank or lending agency supporting such request. No waiver for financial hardship shall be granted to any cotton grower whose taxable net income for the previous year exceeds fifteen thousand dollars ($15,000). All growers granted waiver requests for financial hardship or bankruptcy will be charged interest payable at a rate equal to one percent (1%) above prime per annum. The decision whether or not to waive all or part of these requirements shall be made by the director with the approval of the Board of Directors of the Certified Cotton Growers Organization and notification given to the grower by the director within two (2) weeks after receipt of such application. Failure to pay all fees or file a completed waiver request for delayed payment on or before August 15 of the current growing season will result in a penalty fee of five dollars ($5) per acre.

5. (5) At such times as are beneficial to the boll weevil eradication program, the Certified Cotton Growers Organization may authorize credits for early cotton stalk destruction. Such credits shall be applied to the subsequent year’s assessment as determined by the Certified Cotton Growers Organization. In order to claim such credits—

   1. (A) The grower must complete a stalk destruction verification form. Such forms must be completed at the local FSA office;
   2. (B) The stalk destruction must be verified by an authorized representative of the Certified Cotton Growers Organization; and
   3. (C) The stalk destruction verification form must be received at the department no later than December 1 of the current growing season.

AUTHORITY: sections 263.505, 263.517, and 263.527, RSMo Supp. 1998.* Original rule filed June 29, 1999, effective Dec. 30, 1999. *Original authority: 263.505, RSMo 1995; 263.517, RSMo 1995; and 263.527, RSMo 1995, amended 1998.