[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Pages 28522-28524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13383]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1468
RIN 0560-AD40
Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair
for the 1995 Marketing Year
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The National Wool Act of 1954, as amended (Wool Act), requires
the Secretary of Agriculture, 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 1995 marketing year, the payments shall be 50
percent of the amount otherwise determined in accordance with section
704(a) of the Wool Act. On September 16, 1994, CCC issued a proposed
rule (59 FR 47564) with respect to the support prices for shorn wool,
wool on unshorn lambs, and mohair for the 1995 marketing year. The 1995
payment rate formula for wool on unshorn lambs has been determined to
be 80 percent of the difference between the 1995 support price for
shorn wool and the 1995 national average market price for shorn wool,
multiplied by 5 (the quantity of wool on an average 100-pound unshorn
lamb). The mohair support level has been determined to be $4.657, which
is [[Page 28523]] equal to 85 percent of the comparable percentage of
parity at which shorn wool is supported for the 1995 marketing year.
Payments to producers for the 1995 marketing year shall be 50 percent
of the amount otherwise determined in accordance with section 704(a).
These actions are required by sections 703 and 704 of the Wool Act.
EFFECTIVE DATE: June 1, 1995.
FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Consolidated Farm
Service Agency, United States Department of Agriculture, room 3756-S,
PO Box 2415, Washington, DC 20013-2415 or call 202-720-8841.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule has been determined to be significant and was reviewed by
the Office of Management and Budget under 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 1995 marketing year. Shorn wool, unshorn
lamb, and mohair payments to producers will be reduced by 50 percent of
the amount otherwise determined under the Wool Act as required by
section 704(a) of the Wool Act.
A general description of the statutory basis for such
determinations in this final rule was set forth in the proposed rule at
59 FR 47564 (September 16, 1994). The proposed rule requested comments
with respect to determinations for the support prices for wool on
unshorn lambs and mohair. Comments were not requested concerning the
support price for shorn wool because that price is determined in
accordance with a formula mandated by section 703(b) of the Wool Act.
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 support levels announced in this
rule may be recalculated to comply with this Act.
Comments
A total of 24 comments were received during the 30-day public
comment period that ended October 17, 1994. Respondents included 18
wool and/or mohair producers, one producer organization, one State
legislator, one peanut producer, and three others.
Mohair. Eight respondents addressed the mohair support level. Two
recommended that mohair be supported at the maximum allowed by law--115
percent of the wool parity percentage or $6.300 per pound. Five
recommended that mohair be supported at the 100-percent level or $5.478
per pound, and one respondent recommended either the 100 or 115 percent
level. The reasons cited for these recommendations were that such
support levels would:
(a) Somewhat offset the 50-percent reduction in 1995 payments
required by the Wool Act and, as such, help ease the transition to the
eventual elimination of the program.
(b) Lessen the negative impact of the Wool Act phase-out on those
rural economies which are based on sheep and/or goats with few
available employment or land use alternatives;
(c) Help maintain the infrastructure of the industry by slowing the
sale of goats which has occurred in anticipation of loss of the support
program. The U.S. mohair industry, which contributes to a positive U.S.
trade balance, would be jeopardized if goat numbers fell below the
critical mass necessary to remain viable.
These comments were considered and rejected because the level of
price support determined under this rule is consistent with the intent
of recent legislation to phase out support for the wool and mohair
programs.
Wool on Unshorn Lambs. No comments specifically addressed the level
of support for wool on unshorn lambs. The formula selected in this
final rule provides a payment rate comparable to the shorn wool support
price which helps to maintain normal marketing practices.
Other. Although comments were not solicited on this issue, 12 wool/
mohair producers and one peanut producer offered comments relating to
the Wool Act phase-out and the need for a program after 1995. Two other
respondents wrote in support of the Wool Act phase-out and another
expressed displeasure that the support program was still operating. It
should be noted that the price support programs authorized by the Wool
Act will end when the Wool Act expires on December 31, 1995.
After considering these comments, the following determinations have
been made with respect to the support prices for wool on unshorn lambs
and mohair for the 1995 marketing year.
Payment Rate--Wool on Unshorn Lambs. In accordance with section 703
of the Wool Act, the payment rate for wool on unshorn lambs shall be
determined by multiplying 80 percent of the difference between the 1995
support price for shorn wool and the 1995 national average market price
for shorn wool by 5 pounds (the quantity of wool on 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 1995 marketing year shall be
$4.657, which is [[Page 28524]] equal to 85 percent of the comparable
percentage of parity at which shorn wool is supported for the 1995
marketing year.
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 adding paragraphs (b)(1)(ii)(E),
(b)(2)(v), and (b)(3)(v) to read as follows:
Sec. 1468.4 Eligibility for payments.
* * * * *
(b)(1) * * *
(ii) * * *
(E) 1995--$2.12 per pound.
(2) * * *
(v) 1995--an amount equal to 80 percent of the difference between
the national average price received by producers for shorn wool for the
1995 marketing year and the 1995 shorn wool support price, multiplied
by 5.
(3) * * *
(v) 1995--$4.657 per pound.
* * * * *
Signed at Washington, DC, on May 24, 1995.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 95-13383 Filed 5-31-95; 8:45 am]
BILLING CODE 3410-05-P
