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 2000, 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 cotton growers in an eradication area shall certify their actual cotton acreage with their local Farm Service Agency (FSA) office in accordance with the FSA final certification date. All cotton growers shall also file a cotton acreage reporting form with their local FSA office by May 15, indicating intended cotton acreage to be planted during the current growing season. Intended cotton acreage filing will be required starting with the second year of the eradication program;
   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 cotton growers shall be made payable and submitted to the Missouri Department of Agriculture by October 15 during each year that the eradication program is in operation.
2. (2) Any cotton grower underreporting by more than ten percent (10%) of the actual planted cotton 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. Any cotton grower underreporting cotton acreage by more than ten percent (10%) may apply for a waiver. Any cotton grower applying for a waiver shall make application in writing, to the director stating the conditions under which they request the waiver. The decision whether or not to waive all or part of these requirements shall be made by the director and notification given to the cotton grower within two (2) weeks after receipt of such application.
3. (3) Failure to pay all assessments due on or before October 15 of the current growing season will result in a penalty fee of five dollars ($5) per acre. A cotton grower who fails to pay all assessments, including penalties, is subject to all provisions of section 263.534, RSMo 2000.
4. (4) Any cotton grower may apply for a waiver requesting delayed payment under conditions of financial hardship or bankruptcy. Any cotton 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). Any cotton grower granted a waiver request for financial hardship or bankruptcy will be charged interest payable at a rate equal to one percent (1%) above prime per annum as listed in the Wall Street Journal on the date of the waiver application. 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 cotton grower by the director within thirty
5. (30) days after receipt of such application. Failure to file a completed waiver request for delayed payment on or before October 15 of the current growing season will result in a penalty fee of five dollars ($5) per acre.

6. (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 cotton 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, 263.512, 263.517, 263.527, and 263.534, RSMo 2000.* Original rule filed June 29, 1999, effective Dec. 30, 1999. Amended: Filed March 29, 2001, effective Oct. 30, 2001.

*Original authority: 263.505, RSMo 1995; 263.512, RSMo 1995; 263.517, RSMo 1995; and 263.527, RSMo 1995, amended 1998; 263.534, RSMo 1995.