[Federal Register Volume 59, Number 83 (Monday, May 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10218]
[[Page Unknown]]
[Federal Register: May 2, 1994]
Commodity Credit Corporation
7 CFR Part 1468
RIN 0560-AD19
Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair
for the 1994 Marketing Year
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The National Wool Act of 1954, as amended (Wool Act), requires
the Secretary of Agriculture (Secretary), through the Commodity Credit
Corporation (CCC), to make loans and payments available to producers of
wool and mohair through December 31, 1995. The Wool Act further
provides that, in the case of the 1994 and 1995 marketing years, the
payments shall be 75 percent and 50 percent, respectively, of the
amount otherwise determined in accordance with section 704(a) of the
Wool Act. This proposed rule would amend the regulations to set forth
the support levels for shorn wool, wool on unshorn lambs, and mohair
for the 1994 marketing year.
DATES: Comments must be received on or before June 1, 1994, in order to
be assured of consideration.
ADDRESSES: Comments must be mailed to Director, Fibers and Rice
Analysis Division (FRAD), Agricultural Stabilization and Conservation
Service (ASCS), U.S. Department of Agriculture (USDA), room 3760-S, PO
Box 2415, Washington, DC 20013-2415.
FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, FRAD, ASCS, USDA,
room 3756-S, PO Box 2415, Washington, DC 20013-2415 or call 202-720-
6734.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule is issued in conformance with Executive Order
12866. Based on information compiled by USDA, it has been determined
that this proposed 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 materially 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 proposed 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 proposed rule has been reviewed in accordance with Executive
Order 12778. The provisions of the proposed 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 proposed 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.
Preliminary Regulatory Impact Analysis
The Preliminary Regulatory Impact Analysis describing the options
considered in developing this proposed rule and the impact of the
implementation of each option is available on request from the above-
named individual.
Comments
Comments are requested with respect to this proposed rule and such
comments shall be considered in developing the final rule.
Background
Section 703(a) of the Wool Act provides that the Secretary shall,
through the CCC, make loans and payments available to producers of wool
and mohair through December 31, 1995. Proposed regulations concerning a
recourse loan program will be issued in the near future.
Section 703(b) of the Wool Act provides that the support price for
shorn wool for each of the marketing years 1991 through 1995 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.
Based on current reported parity indices, the calculation for the
1994 shorn wool support price (grease basis) is as follows:
(1) Average parity index, calendar years 1990-1992:
1990-1267
1991-1298
1992-1317
________
-3882 divided by 3
1294.0
(2) Average parity index, 1958-1960
297.3
(3) Ratio of 1294.0 to 297.3
4.3525
(4) 4.3525 x 62 cents/lb. (1965 support price)
$2.6986
(5) 77.5% x $2.6986
$2.0914
(6) $2.0914 rounded to nearest cent
$2.09
Section 703(c) of the Wool Act provides that the support prices for
pulled wool and for mohair shall be established at such levels, in
relationship to the support price for shorn wool, which is determined
to maintain normal marketing practices for pulled wool, and which is
determined necessary to maintain approximately the same percentage of
parity for mohair as for shorn wool. Section 703(c) further provides
that the support price for mohair must be within a range of 15 per
centum above or below the comparable percentage of parity at which
shorn wool is supported.
Section 704(a) provides that payments shall be such as the
Secretary determines to be sufficient, when added to the national
average price received by producers, to give producers a national
average return for the commodity equal to the support price level, and
that, in the case of the 1994 and 1995 marketing years, the payments
shall be 75 and 50 percent, respectively, of the amount otherwise
determined in accordance with such section.
Section 703(e) of the Wool Act provides that, to the extent
practicable, support price levels for wool and mohair shall be
established and announced sufficiently in advance of each marketing
year, as will permit producers to plan their production for such
marketing year. Accordingly, the following methods for calculating the
support prices for wool on unshorn lambs and for mohair for the 1994
marketing year are being proposed.
A. Support Price--Wool on Unshorn Lambs. The support price for wool
on unshorn lambs for the 1994 marketing year cannot be determined until
the 1994 national average market price for shorn wool is calculated.
This will occur by April 1995. It is proposed that the method for
calculating the support price for wool on unshorn lambs shall be as
follows: Once the 1994 national average market price for shorn wool is
determined, the support price for wool on unshorn lambs will be
determined by taking 80 percent of the difference between the 1994
support price for shorn wool and the 1994 national average market price
for shorn wool, multiplied by 5 pounds (the average grease wool yield
per hundredweight of live, unshorn lambs marketed). Historically, this
formula has provided equitable support for wool on unshorn lambs
relative to shorn wool and has helped to maintain normal marketing
practices for pulled wool. In accordance with section 704(a) of the
Wool Act, the 1994 marketing year payment for wool on unshorn lambs
shall be 75 percent of the amount otherwise determined in accordance
with such formula.
B. Support Price--Mohair. It is proposed that the support price for
mohair for the 1994 marketing year shall be determined based on the
October 1993 parity prices for mohair and shorn wool. The following
percentages of parity at which shorn wool is supported are being
considered in the final computation of the mohair support price: 85,
100, and 115 percent.
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 proposed program support levels
announced in this rule may be recalculated to comply with this Act.
Accordingly, comments are requested with respect to the support
price calculation methods for wool on unshorn lambs and mohair. The
final determination will be set forth at 7 CFR part 1468.
List of Subjects in 7 CFR Part 1468
Assistance grant programs--agriculture, Livestock, Mohair,
Reporting and recordkeeping requirements, Wool
.Accordingly, it is proposed that 7 CFR part 1468 be 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 wool shall be as follows:
(A) 1991--$1.88 per pound.
(B) 1992--$1.97 per pound.
(C) 1993--$2.04 per pound.
(D) 1994--$2.09 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.
(vi) 1994--an amount equal to 80 percent of the difference between
the national average price received by producers for shorn wool for the
1994 marketing year and the 1994 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.
(iv) 1994--an amount 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.
* * * * *
3. Section 1468.8 is amended by revising paragraphs (a)(1) and (b)
to read as follows:
Sec. 1468.8 Computation of payment.
(a)(1) The amount of the shorn wool or shorn mohair support payment
shall be computed by applying the rate of payment to the net sales
proceeds for the wool or mohair marketed during the specified marketing
year, less the assessment due as specified in Sec. 1468.15. In the case
of the 1994 and 1995 marketing years, the payments shall be 75 percent
and 50 percent, respectively, of the amount otherwise determined in
accordance with this part. For shorn wool payments, if there is a
purchase by the producer of unshorn lambs, the resultant amount shall
be reduced by an amount resulting from multiplying the liveweight of
such lambs reported in the application for payment by the calculated
wool on shorn lambs support for such marketing year. If the amount of
the reduction exceeds the payment computed on the shorn wool marketed,
the liveweight of lambs which corresponds to the excess amount shall be
carried forward and used to reduce payments on unshorn lambs marketed
or slaughtered or shorn wool marketed in the current or subsequent
years.
* * * * *
(b) The amount of the wool support payment due to a producer for
wool on unshorn lambs shall be computed by applying the rate of payment
to the liveweight of the lambs sold or moved to slaughter during the
specified marketing year, reduced, on account of the purchase or
importation by the producer of unshorn lambs, by the liveweight of such
lambs reported in the application for payments, less the assessment due
as specified in Sec. 1468.15. In the case of the 1994 and 1995
marketing years, the payments shall be 75 percent and 50 percent,
respectively, of the amount otherwise determined in accordance with
this part. If the amount of the reduction exceeds the liveweight of the
unshorn lambs sold or moved to slaughter during said marketing year,
such excess liveweight shall be carried forward and used to reduce
payments on the wool on unshorn lambs marketed or slaughtered or shorn
wool marketed in the current or subsequent years.
* * * * *
Signed at Washington, DC, on April 22, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-10218 Filed 4-29-94; 8:45 am]
BILLING CODE 3410-05-P
