[Federal Register Volume 60, Number 102 (Friday, May 26, 1995)]
[Rules and Regulations]
[Pages 27868-27870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13000]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1421
RIN 0560-AD67
1995-Crop Peanuts; National Average Support Levels for Quota and
Additional Peanuts; and Minimum Commodity Credit Corporation Export
Edible Sale Price for Additional Peanuts
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The purpose of this final rule is to codify determinations
made by the Secretary of Agriculture (Secretary) with respect to the
1995 peanut crop: the national average support level for quota peanuts
of $678.36 per short ton (st); the national average support level for
additional peanuts of $132 per st; and the minimum Commodity Credit
Corporation (CCC) export edible sale price for additional peanuts of
$400 per st. The determinations of the national average support levels
for quota and additional peanuts were made pursuant to the statutory
requirements of the Agricultural Act of 1949 (the 1949 Act), as
amended. The determination and announcement of the minimum CCC export
edible sale price for additional peanuts is a discretionary action made
to facilitate the negotiation of private contracts for export edible
peanuts.
EFFECTIVE DATE: February 15, 1995.
FOR FURTHER INFORMATION CONTACT: John A. Craven, Consolidated Farm
Service Agency (CFSA), Room 3744, South Building, United States
Department of Agriculture, PO. Box 2415, Washington, DC 20013-2415,
Telephone 202-690-0446. [[Page 27869]]
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be significant and was
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 rule
applies, are Commodity Loans and Purchases--10.051.
Executive Order 12778
This rule has been reviewed in accordance with Executive Order
12778. The provisions of this rule do preempt State law, are not
retroactive, and do not involve administrative appeals.
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 of these determinations.
Paperwork Reduction Act
The amendments to 7 CFR part 1421 set forth in this final rule do
not contain information collections that require clearance by the
Office of Management and Budget under the provisions of 44 U.S.C. 35.
Determinations
This rule is issued pursuant to the provisions of the 1949 Act.
On February 15, 1995, the Secretary announced the national average
support levels for 1995-crop quota and additional peanuts and the
minimum CCC export edible sales price for 1995-crop additional peanuts.
Section 1017 of the Food Security Act of 1985, as amended, provides
that the Secretary shall determine the rate of loans, payments, and
purchases for the 1991 through 1995 crops of commodities without regard
to the requirements for notice and public participation in rulemaking
as prescribed in 5 U.S.C. 553 or any directive of the Secretary.
A. Quota Peanuts Support Level
In accordance with section 108B(a)(2) of the 1949 Act, the national
average price support level for 1995 crop quota peanuts must be the
corresponding 1994-crop price support level adjusted to reflect any
increases in the national average cost of peanut production (excluding
any changes in the cost of land) during the calendar year immediately
preceding marketing year (MY) 1995, except that the MY 1995 price
support level cannot exceed the MY 1994 support level by more than 5
percent. In the event of a reduction in these costs of production, the
MY 1995 price support level for quota peanuts would be required, under
the terms of Section 108B, to be unchanged from MY 1994. The MY 1994
quota peanut price support level is $678.36 per short ton (st). The MY
1995 support level for quota peanuts was determined based on the
following estimates:
Peanut Production Cost Calculations
------------------------------------------------------------------------
Variable/component 1993 1994
------------------------------------------------------------------------
Production costs....... $492.91/acre........... $489.07/acre.
Trend yields........... 2,500 lbs./acre........ 2,500 lbs./acre.
Production costs....... $394.33/st............. $391.26/st.
------------------------------------------------------------------------
1995 Quota Calculations
[Dollars per short ton]
Change during 1994 in the average cost of producing peanuts... -$3.07
1995 Quota Support Level (1994 Support + any cost increase)... 678.36
As indicated, relevant peanut production costs decreased from
calendar year 1993 to 1994. The MY 1995 quota peanut price support
level is accordingly established at $678.36 per st, unchanged from MY
1994.
B. Additional Peanut Support Level
Section 108B(b)(1) of the 1949 Act provides that price support
shall be made available for additional peanuts at such level as the
Secretary determines will ensure no losses to CCC from the sale or
disposal of such peanuts, taking into consideration the demand for
peanut oil and peanut meal, expected prices of other vegetable oils and
protein meals, and the demand for peanuts in foreign markets.
The MY 1995 price support level for additional peanuts is
established at $132 per st to ensure no losses to CCC from the sale or
disposal of such peanuts, unchanged from MY 1994. Peanuts are pledged
as collateral for price support loans. The peanuts are then sold out of
inventory in order to recoup the loan principal, interest and related
costs. The statutory factors have been analyzed as set out below. Based
on those factors, it is anticipated that while the current oil market
is unusually strong, there is enough uncertainty in the market to
suggest caution in setting the floor price for inventory peanuts sold
for crushing. For that reason, it has been determined that the support
rate should remain unchanged from the level for additional peanuts that
was in place for the 1994 crop, that being $132.00 per st.
In making this determination, the following information was
considered:
1. The domestic use of peanut oil during MY 1995 is forecast to be
115,000 st, up 2 percent from MY 1994 projected domestic use. MY 1995
peanut oil beginning stocks are expected to be 19,000 st, up 50 percent
from MY 1994. The MY 1995 average peanut oil price is expected to be
$0.40 per pound, down $0.06 per pound from MY 1994.
2. The domestic use of peanut meal during MY 1995 is forecast to be
180,000 st, down 2,000 st from MY 1994 projected domestic use. MY 1995
peanut meal beginning stocks are expected to be 5,000 st, down 2,000 st
from MY 1994. The MY 1995 average peanut meal price is expected to be
$155 per st, up $20 per st from MY 1994.
3. The domestic disappearance of soybean oil during MY 1995 is
forecast to be 6,650,000 st, up 2.3 percent from projected MY 1994
domestic disappearance. MY 1995 soybean oil beginning stocks are
expected to be 640,000 st, up 16 percent from MY 1994. The MY 1995
average soybean oil price is expected to be $0.27 per pound, unchanged
from MY 1994.
4. The domestic disappearance of cottonseed oil during MY 1995 is
forecast to be 510,000 st, up slightly from projected MY 1994 domestic
disappearance. MY 1995 cottonseed oil beginning stocks are expected to
be 40,000 st, down 25 percent from MY 1994. The MY 1995 average
cottonseed oil price is expected to be $0.27 per pound, up $0.02 from
MY 1994.
5. The domestic disappearance of soybean meal during MY 1995 is
forecast to be 26,500,000 st, up 1.0 percent from projected MY 1994
domestic disappearance. MY 1995 soybean meal beginning stocks are
expected to be 300,000 st, up 50 percent from MY 1994. The MY 1995
average soybean meal price is expected to be $160 per st, up $5 per st
from MY 1994.
6. The domestic disappearance of cottonseed meal during MY 1995 is
forecast to be 1,725,000 st, up 3 percent from projected MY 1994
domestic disappearance. MY 1995 cottonseed meal beginning stocks are
expected to be 65,000 st, up 23 percent from MY 1994. The average
cottonseed meal price for MY 1995 is expected to be $125 per st, up $5
per st from MY 1994. [[Page 27870]]
7. The world use of peanuts for MY 1994 is expected to be 24.42
million metric tons, up 1.3 percent from MY 1993. World peanut
production for MY 1994 is forecast to be 24.47 million metric tons, up
2 percent from MY 1993. Ending stocks for MY 1994 are forecast at 0.70
million metric tons, up 8 percent from MY 1993.
C. Minimum CCC Export Edible Sales Price for Additional Peanuts
The minimum price at which additional peanuts owned or controlled
by CCC may be sold for use as edible peanuts in export markets is a
discretionary action that, by practice, is announced at the same time
as quota and additional peanut support levels to facilitate the
negotiation of additional peanut contracts by producers and handlers.
A proposed rule setting forth the MY 1995 minimum CCC export edible
sales price of $400 per st was published on January 4, 1995 (60 FR
381). Six comments were received in response to the notice during the
public comment period that ended on January 17, 1995. The six
respondents addressing this issue were five shellers or sheller/
processors and one peanut product manufacturer. Five comments supported
a CCC export edible sales price of $400 per st or above; most of these
felt that the $400 minimum had served the industry well since 1986. One
sheller respondent felt that CCC should discontinue the policy of
announcing a minimum export edible sales price and make all additional
peanuts available to export markets at market determined prices. The
$400 price has been adopted in this final rule for the reasons set out
in the January 4 notice.
List of Subjects in 7 CFR Part 1421
Grains, Loan programs-agriculture, Oilseeds, Peanuts, Price support
programs, Reporting and recordkeeping requirements, Soybeans, Surety
bonds, Warehouses.
Accordingly, 7 CFR part 1421 is amended as follows:
PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES
1. The authority citation for 7 CFR part 1421 continues to read as
follows:
Authority: 7 U.S.C. 1421, 1423, 1425, 1441z, 1444f-1, 1445b-3a,
1445c-3, 1445e, and 1446f; 15 U.S.C. 714b and 714c.
2. Section 1421.7(b)(8)(iv) is revised and paragraph (b)(8)(v) is
added to read as follows:
Sec. 1421.7 Adjustment of basic support rates.
* * * * *
(b) * * *
(8) * * *
(iv) 1994 Peanuts, Quota--$678.36 per short ton; Additional--
$132.00 per short ton;
(v) 1995 Peanuts, Quota--$678.36 per short ton; Additional--$132.00
per short ton;
* * * * *
3. Sections 1421.27(a)(2)(iv) is revised and paragraph (a)(2)(v) is
added to read as follows:
Sec. 1421.27 Producer-handler purchases of additional peanuts pledged
as collateral for a loan.
(a) * * *
(2) * * *
(iv) The 1994 minimum CCC sales price for additional peanuts sold
for export edible use is $400 per short ton;
(v) The 1995 minimum CCC sales price for additional peanuts sold
for export edible use is $400 per short ton.
* * * * *
Signed at Washington, DC, on May 21, 1995.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 95-13000 Filed 5-25-95; 8:45 am]
BILLING CODE 3410-05-P
