[Federal Register Volume 62, Number 63 (Wednesday, April 2, 1997)]
[Proposed Rules]
[Pages 15622-15624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8413]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 /
Proposed Rules
[[Page 15622]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1435
RIN 0560-AE94
Sugar Loan Program Crop Year Definition and Loan Availability
Period
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would redefine the crop year for the sugar
loan program from the current period, July 1 through June 30, to the
Federal fiscal year, October 1 through September 30. The proposed rule
also would extend the loan availability period to the whole fiscal year
instead of ending the availability period on June 30. The restriction
that the Commodity Credit Corporation (CCC) could only make loans in
July, August, and September on sugar processed from sugarcane or sugar
beets that are normally harvested in those months would be removed. The
proposed rule would also eliminate obsolete provisions governing the
1995 crop year price support program and producer protections and
revise the information collection requirements to reflect the
simplified monthly data-reporting forms and the transfer of reporting
items to new annual reporting forms.
DATES: Comments on this rule must be received on or before June 2, 1997
to be assured of consideration.
FOR FURTHER INFORMATION CONTACT: Daniel Colacicco, Farm Service Agency,
United States Department of Agriculture (USDA) STOP 0516, 1400
Independence Avenue, SW, Washington, DC 20250-0516, telephone 202-690-
0734.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be not significant and therefore
was not reviewed by OMB under Executive Order 12866.
Federal Assistance Program
The title and number of the Federal assistance program, as found in
the Catalogue of Federal Domestic Assistance, to which this proposed
rule applies are Commodity Loans and Purchases--10.051.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable because 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 this rule.
Environmental Evaluation
An Environmental Evaluation with respect to the proposed rule has
been completed. It has been determined that this action will not have
significant adverse effects on environmental factors such as wildlife
habitat, water quality, air quality, land use, and appearance.
Therefore, neither an Environmental Assessment nor an Environmental
Impact Statement is needed.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which requires intergovernmental consultation with State and
local officials. See the Notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Paperwork Reduction Act
Title: 7 CFR Part 1435, Sugar Program.
OMB Number: 0560-0138.
Date of Approval Expiration: July 31, 1998.
Type of Request: Revision of previously approved information
collection.
Abstract: The Federal Agriculture Improvement and Reform Act of
1996 (1996 Act) requires the Department of Agriculture to collect and
publish, on a monthly basis, information as the Secretary may require
to administer sugar programs, including sales of sugarcane, sugar
beets, and sugar, and production, importation, distribution, and stock
levels of sugar. The Farm Service Agency uses these data to estimate
supply and use for the monthly World Agricultural Supply and Demand
Estimates report; establish regional sugar loan rates; estimate the
impact of alternative sugar policy options on the sugar market; and
publish the monthly Sweetener Market Data report.
Estimate of Respondent Burden: Public reporting burden for the
revised collection of information is estimated to average 56 minutes
per response.
Respondents: Domestic sugarcane processors, sugar beet processors,
and cane sugar refiners.
Estimated Number of Respondents: 49.
Estimated Number of Responses per Respondent: 19 responses per
year.
Estimated Total Annual Burden Hours on Respondents: 864 hours.
Comments are invited on: (a) Whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) ways to enhance the quality,
utility, and clarity of the information from those who are to respond,
including the use of appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology. Comments may be sent to the Desk Officer for Agriculture,
Office of Information and Regulatory Affairs, OMB, Washington, D.C.
20503, and to Dan Colacicco, Economic and Policy Analysis Staff, FSA,
USDA, STOP 0516, 1400 Independence Avenue, SW, Washington, DC 20250-
0516, (202)690-0734.
Copies of the information collection package may be obtained from
Fran Hentz, Economic Policy Analysis Staff, FSA, USDA, STOP 0516, 1400
Independence Avenue, SW, Washington, DC 20250-0516, (202)720-7794.
OMB is required to make a decision concerning the collection of
information contained in these proposed regulations between 30 and 60
days after publication of this document in the Federal Register.
Therefore, a comment to OMB is best assured of having its full effect
if OMB receives it within 30 days of publication. This does not affect
the deadline for the public to comment to the Department of Agriculture
on the proposed regulation.
All responses to this notice will be summarized and included in the
request
[[Page 15623]]
for OMB approval. All comments will also become a matter of public
record.
Executive Order 12998
This proposed rule has been reviewed in accordance with Executive
Order 12998. The provisions of this proposed rule preempt State laws to
the extent such laws are inconsistent with the provisions of this
proposed rule; are not retroactive; and are not subject to
administrative appeal remedies.
Background
Paragraph 1435.1(a), which governs the price support loan program
and producer protections for the 1995 crop year, is eliminated. The
1995 crop year ended on June 30, 1996, and all 1995 crop year loans
were repaid to CCC before October 1, 1996.
Sugar Crop Year Definition
The current CCC regulations at Sec. 1435.2 define the sugar crop
year as ``the period from July 1 through June 30, inclusive''. The
current July-June crop year is a carry-over from the implementation of
the Agriculture and Food Act of 1981, which mandated a purchase program
and a subsequent price support loan program.
Redefining the crop year to the period October 1 through September
30 would: (1) be consistent with the fiscal year, thus providing a
better fit for the analysis and administration of the sugar program,
(2) reduce the reporting burden placed on the industry, and (3) better
reflect the beginning of the harvest, which is the basis for other
commodities' crop years.
USDA already uses the fiscal year for the sugar World Agricultural
Supply and Demand Estimates and baseline budget estimates. The tariff-
rate import quota (TRQ) and marketing assessment rates are specified in
terms of fiscal years, and the final loan maturity date is September
30, the end of the fiscal year.
Changing the crop year definition is expected to reduce the
industry's reporting burden and costs because they will no longer have
to provide separate crop year and fiscal year data to USDA.
The 1996 Act authorizes a sugar program through the 2002 crop year.
Under the current crop year definition, the program would apply only to
sugar processed through June 30, 2003. Changing the crop year
definition to the fiscal year that ends on September 30 cannot change
the end of loan program authority. Thus, the revised rule would
reaffirm that the loan program expires on June 30, 2003.
Loan Availability Period and Supplemental Loans
Under current regulations, the loan availability period ends June
30, which is consistent with the end of the current July-June crop year
and similar to the other commodities in terms of the number of months
loans are available after the beginning of harvest. However, loans are
made available during the July-September period on sugar from sugar
beets and sugarcane ``normally harvested'' during the July-September
period. Sugar pledged as collateral for a loan during this period may
be repledged as collateral for a supplemental loan during the following
fiscal year for up to 9 months minus the number of months the initial
loan was in effect.
The Agricultural Act of 1949 (1949 Act), as amended by the Food,
Agriculture, Conservation, Trade Act of 1990, specified that the
Secretary shall make available to eligible processors price support
loans with respect to sugar processed from sugar beets and sugarcane
harvested in the last 3 months of a fiscal year, with supplemental
loans available the following fiscal year for up to 9 months minus the
length of the initial loan. However, the 1996 Act, which supersedes the
1949 Act, provides only that in the case of a loan made during the last
3 months of a fiscal year, the collateral may be repledged for a
supplemental loan during the following fiscal year for up to 9 months
minus the length of the initial loan. Thus, the 1996 Act eliminates the
restriction that only sugar from sugar beets or sugarcane harvested in
the July-September period is eligible for a loan during that period.
Extending the loan availability period through the entire fiscal
year and providing supplemental loans to all sugar originally pledged
for loans during the July-September period would: (1) Simplify program
regulations and administration (e.g., by eliminating continuous harvest
loan applications), (2) increase industry flexibility by providing
loans year-round, thus increasing its ability to store sugar in
anticipation of better prices, (3) be more consistent with other sugar
program provisions, and (4) recognize the impact of desugarization
technology.
All loans would be made at the loan rates in effect at the time the
loans are made. Sugar repledged for loans during the July-September
period would continue to be ineligible for supplemental loans.
List of Subjects in 7 CFR Part 1435
Loan programs--agriculture, Price-support programs, Reporting and
record keeping requirements, Sugar.
Accordingly, 7 CFR part 1435 is proposed to be amended as follows:
PART 1435--SUGAR
1. The authority citation for 7 CFR part 1435 continues to read as
follows:
Authority: 7 U.S.C. 7272 and 15 U.S.C. 714b and 714c.
2. Section 1435.1 is amended by removing paragraph (a) and removing
the designation for paragraph (b).
3. In Sec. 1435.2, the definition for Crop Year is revised to read
as follows:
Sec. 1435.2 Definitions.
* * * * *
Crop year for the 1996 crop means the period from July 1, 1996
through September 30, 1997. Crop year for the 1997-2001 crops means the
period from October 1 through September 30, inclusive, and is
identified by the year in which the crop year begins. For example, the
1997 crop year begins on October 1, 1997. The 1997 crop of sugar beets,
sugarcane, or sugar means domestically-produced sugar beets,
domestically-produced sugarcane, or sugar processed from domestically-
produced sugar beets or sugarcane during the 1997 crop year. Crop year
for the 2002 crop means the period from October 1, 2002 through June
30, 2003. Sugar from desugaring molasses is considered to be from the
crop year the desugaring took place.
* * * * *
4. In Sec. 1435.105 paragraphs (a)(1) and (g) are revised to read
as follows:
Sec. 1435.105 Availability, disbursement, and maturity of loans.
(a) * * *
(1) File a loan request, as CCC prescribes, no earlier than July 1
and no later than September 30 for the 1996 crop year, no earlier than
October 1 and no later than September 30 for the 1997-2001 crop years,
and no earlier than October 1 and no later than June 30 for the 2002
crop year, with the State committee of the State where such processor
is headquartered, or with a county committee designated by the State
committee;
* * * * *
(g)(1) Notwithstanding any other provision of this subpart,
processors receiving loans in July, August, or September:
(i) Must settle the loan by September 30 following disbursement;
and
(ii) May repledge the sugar as collateral for a supplemental loan.
[[Page 15624]]
(2) Such supplemental loan shall:
(i) Be requested by the processor during the following October;
(ii) Be recourse or nonrecourse depending on which type of loan is
in effect according to Sec. 1435.102;
(iii) Be made at the loan rate in effect at the time the
supplemental loan is made; and
(iv) Mature in 9 months minus the number of whole months that the
initial loan was in effect.
(3) No loans will be made after June 30, 2003.
Signed in Washington, DC, on March 26, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-8413 Filed 4-1-97; 8:45 am]
BILLING CODE 3410-05-P
