[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-943]
[[Page Unknown]]
[Federal Register: January 14, 1994]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1468
RIN 0560-AC65
Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair
for the 1993 Marketing Year
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: On July 14, 1993, the Commodity Credit Corporation (CCC)
issued a proposed rule (58 FR 37876) with respect to the support prices
for shorn wool, wool on unshorn lambs, and mohair for the 1993
marketing year. The support level for wool on unshorn lambs has been
determined by taking 80 percent of the difference between the 1993
support price for shorn wool and the 1993 national average market price
for shorn wool, multiplied by 5 pounds (the amount of wool on an
average 100-pound unshorn lamb). The mohair support level has been
determined to be $4.738, which is equal to 85 percent of the comparable
percentage of parity at which shorn wool is supported for the 1993
marketing year. These actions are required by section 703 of the
National Wool Act of 1954, as amended (Wool Act).
EFFECTIVE DATE: January 14, 1994.
FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Fibers and Rice
Analysis Division, Agricultural Stabilization and Conservation Service,
United States Department of Agriculture (USDA), room 3756-S, PO Box
2415, Washington, DC 20013-2415 or call 202-720-6734.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order 12866
and has been determined to be a ``significant regulatory action.''
Based on information compiled by USDA, it has been determined that this
final rule:
(1) Would have an annual effect on the economy of more than $100
million;
(2) Would not adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities;
(3) Would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency;
(4) Would not alter the budgetary impact of entitlements, grants,
user fees, or loan programs or rights and obligations of recipients
thereof; and
(5) Would not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or principles set forth in
Executive Order 12866.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this final rule since the CCC is not required by 5 U.S.C.
553 or any other provision of law to publish a notice of proposed
rulemaking with respect to the subject matter of these determinations.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will not have a significant impact on the quality of the human
environment. Therefore, neither an Environmental Assessment nor an
Environmental Impact Statement is needed.
Federal Assistance Program
The title and number of the Federal Assistance Program, as found in
the Catalog of Federal Domestic Assistance, to which this rule applies
are: National Wool Act Payments--10.059.
Executive Order 12778
This final rule has been reviewed in accordance with Executive
Order 12778. The provisions of this final rule do not preempt State
laws, are not retroactive, and do not involve administrative appeals.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372, which requires intergovernmental consultation with State
and local officials. See notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Paperwork Reduction Act
The amendments to 7 CFR part 1468 set forth in this final rule will
not result in any change in the public reporting burden. Therefore, the
information collection requirements of the Paperwork Reduction Act are
not applicable to this amendment.
Final Regulatory Impact Analysis
The Final Regulatory Impact Analysis describing the options
considered in developing this final rule and the impact of the
implementation of each option is available on request from the above-
named individual.
Background
This final rule amends 7 CFR part 1468 to set forth determinations
with respect to the support prices for shorn wool, wool on unshorn
lambs, and mohair for the 1993 marketing year. A general description of
the statutory basis for such determinations in this final rule was set
forth at 58 FR 37876 (July 14, 1993).
A total of seven comments were received during the 30-day public
comment period that ended August 13, 1993. Three respondents
recommended that no changes be made to current support rates. Three
respondents recommended that the price support programs be eliminated.
In response to these 6 comments, it should be noted that although the
proposed rule will be adopted without change, the wool and mohair
programs will cease to exist after December 31, 1995.
One respondent suggested that full payment for wool on unshorn
lambs should be made only on unshorn lambs up to 125 pounds,
liveweight, and that no payments should be made on any weight exceeding
125 pounds. The respondent cited a problem with the current payment
method which prorates payments based on the amount of weight gained
while the lamb is owned first by the producer and later, a lamb feeder.
The respondent noted that prorating payments encourages the production
of over-fat lambs--a product that is not wanted by the American
consumer--resulting in low lamb prices to the detriment of producers.
This comment has not been adopted because it would increase
recordkeeping requirements significantly for both ASCS and program
participants, and it would require ASCS to make major revisions to the
current procedure for calculating unshorn lamb payments. The potential
savings resulting from lower payments would not be sufficient to
justify such an increase in the administrative burden.
After considering these comments, the following determinations have
been made with respect to the wool and mohair price support programs
for the 1993 marketing year.
Support Price--Wool on Unshorn Lambs
In accordance with section 703 of the Wool Act, the support price
for wool on unshorn lambs shall be determined by taking 80 percent of
the difference between the 1993 support price for shorn wool and the
1993 national average market price for shorn wool, multiplied by 5
pounds (the amount of wool pulled from the pelt of an average 100-pound
unshorn lamb).
Support Price--Mohair
In accordance with section 703 of the Wool Act, the support price
for mohair for the 1993 marketing year shall be $4.738, which is equal
to 85 percent of the comparable percentage of parity at which shorn
wool is supported for the 1993 marketing year.
The support programs conducted pursuant to the Wool Act are subject
to the provisions of the Balanced Budget and Deficit Reduction Act of
1985, as amended. As a result, the price support levels announced in
this rule may be recalculated to comply with this Act.
List of Subjects in 7 CFR part 1468
Assistance grant programs--agriculture, Livestock, Mohair,
Reporting and recordkeeping requirements, Wool.
Accordingly, 7 CFR part 1468 is amended as follows:
PART 1468--WOOL AND MOHAIR
1. The authority citation for 7 CFR part 1468 continues to read as
follows:
Authority: 7 U.S.C. 1781-1787; 15 U.S.C. 714b and 714c.
2. Section 1468.4 is amended by revising paragraph (b) to read as
follows:
Sec. 1468.4 Eligibility for payments.
* * * * *
(b)(1) The shorn wool support price for the 1991 through 1995
marketing years shall be 77.5 percent of an amount which is determined
by multiplying 62 cents (the support price in 1965) by the ratio of:
(i) The average of the parity index (the index of prices paid by
farmers, including commodities and services, interest, taxes, and farm
wage rates) for the three calendar years immediately preceding the
calendar year in which such support price is being determined and
announced to:
(ii) The average parity index for the three calendar years 1958,
1959, and 1960, rounding the result to the nearest full cent. The shorn
wool support price shall be as follows:
(A) 1991--$1.88 per pound.
(B) 1992--$1.97 per pound.
(C) 1993--$2.04 per pound.
(2) The payment rate for wool on unshorn lambs for the 1991 through
1995 marketing years shall be 80 percent of the difference between the
national average price received by producers for shorn wool during a
specified marketing year and the shorn wool support price multiplied by
5 (the average grease wool yield per hundredweight of live, unshorn
lambs marketed). The payment rate for wool on unshorn lambs shall be as
follows:
(i) 1991--$5.32 per hundredweight.
(ii) 1992--$4.92 per hundredweight.
(iii) 1993--an amount equal to 80 percent of the difference between
the national average price received by producers for shorn wool for the
1993 marketing year and the 1993 shorn wool support price, multiplied
by 5.
(3) The mohair support price for the 1991 through 1995 marketing
years shall be established at such level, in relationship to the
support price for shorn wool, which is determined necessary to maintain
approximately the same percentage of parity for mohair as for shorn
wool. The mohair support price shall be set within a range of 15 per
centum above or below the comparable percentage of parity at which
shorn wool is supported, as determined and announced by CCC. The
support price for mohair shall be as follows:
(i) 1991--$4.448 per pound.
(ii) 1992--$4.613 per pound.
(iii) 1993--$4.738 per pound.
* * * * *
Signed at Washington, DC, on January 6, 1994.
Grant Buntrock,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-943 Filed 1-13-94; 8:45 am]
BILLING CODE 3410-05-P
