[Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19020]
[[Page Unknown]]
[Federal Register: August 4, 1994]
VOL. 59, NO. 149
Thursday, August 4, 1994
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1413
RIN 0560-AD37
1995 Feed Grain Acreage Reduction Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would amend the regulations: to set forth
the acreage reduction percentage for each of the 1995 feed grain crops;
to require that producers of malting barley comply with acreage
reduction requirements to maintain eligibility for feed grain loans,
purchases, and payments; and to provide that a paid land diversion
(PLD) program will not be in effect. Producers who participate in the
Feed Grain Acreage Reduction Program (ARP) would be eligible for
benefits such as price support loans and deficiency payments. This
action is required by section 105B of the Agricultural Act of 1949, as
amended (the 1949 Act).
DATES: Comments must be received on or before September 14, 1994, in
order to be assured of consideration.
ADDRESSES: Comments must be mailed to Director, Grains Analysis
Division, Agricultural Stabilization and Conservation Service (ASCS),
U.S. Department of Agriculture (USDA), P.O. Box 2415, room 3742-S,
Washington, DC 20013-2415.
FOR FURTHER INFORMATION CONTACT: Philip W. Sronce, Director, Grains
Analysis Division, ASCS, USDA, room 3742-S, P.O. Box 2415, Washington,
DC 20013-2415 or call 202-720-4418.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This rule is issued in accordance with Executive Order 12866. Based
on information compiled by the USDA, this proposed rule has been
determined to be ``economically significant'' because it would have an
annual effect on the economy of more than $100 million and would
materially alter the budgetary impact of entitlement, or loan programs
or rights and obligations of recipients thereof. Budget outlays for
deficiency payments are expected to range from $1.5 to $3.5 billion
annually. This proposed rule 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; would not create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency; and 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
applicable to this proposed rule since the Commodity Credit Corporation
(CCC) is required by section 105B(o) of the 1949 Act to request
comments with respect to the subject matter of this rule. An Initial
Regulatory Flexibility Analysis was prepared, which determined that
this regulation will have no significant impact on a substantial number
of small entities because the particular acreage reduction percentages
considered will not affect the paperwork, reporting, or compliance
burdens of the small entities in the program. CCC thus certifies that
the rule will have no significant economic impact on a substantial
number of small entities.
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.
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: Feed Grain Production Stabilization--10.055.
Executive Order 12778
This proposed rule has been reviewed in accordance with Executive
Order 12778. The provisions of this proposed rule do not preempt State
laws, are not retroactive, and do not require the exhaustion of any
administrative appeal remedies.
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 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 1413 set forth in this proposed 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.
Public Comments
Comments are requested with respect to this proposed rule and such
comments shall be considered in developing the final rule.
Statutory Background
In accordance with section 105B of the 1949 Act, an ARP is required
to be implemented for the 1995 crops of corn, grain sorghum, or barley
if it is determined that the total supply of each respective feed grain
would otherwise be excessive.
Land diversion payments also may be made to producers if needed to
adjust the total national acreage of feed grains to desirable goals. A
PLD program is not being considered because, given the allowed ARP
percentages, it is not needed.
If an ARP is announced, the reduction shall be achieved by applying
a uniform percentage reduction to the respective feed grain acreage
base for the farm. In making such a determination, the number of acres
placed into the agricultural resources conservation program established
under subtitle D of title XII of the Food Security Act of 1985, as
amended, must be taken into consideration.
Producers who knowingly produce feed grains in excess of the
respective permitted acreage for the farm plus any respective feed
grain acreage planted in accordance with the flexibility provisions are
ineligible for loans and purchases and all payments with respect to
that crop on the farm. If an ARP program for the 1995 crop is in
effect, the program must be announced no later than September 30, 1994.
Adjustments in the announced program may be made if it is determined
that there has been a significant change in the total supply of feed
grains since the program was first announced. These adjustments must be
made no later than November 15, 1994.
In accordance with section 105B of the 1949 Act, not less than 60
days before the program is announced for a crop of feed grains,
proposals for public comment on various program options for the crop of
feed grains are required to be set forth. Each option must be
accompanied by an analysis that includes the estimated planted acreage,
production, domestic and export use, ending stocks, season average
producer price, program participation rate, and cost to the Federal
Government that would likely result from each option.
In determining the 1995 corn ARP, the Secretary will choose a
specific ARP reduction percentage from within a range established by
the estimated ending stocks-to-use (S/U) ratio for the 1994/95 corn
marketing year. If it is estimated that the 1994/95 ending S/U ratio in
percentage terms will be:
(1) More than 25 percent, the ARP shall not be less than 10 percent
or more than 20 percent; or
(2) Equal to or less than 25 percent, the ARP may not be more than
12.5 percent.
The S/U for the 1994/95 marketing year is estimated to be 15.1
percent. Based on this estimate, the 1995 ARP may be not more than 12.5
percent. In the case of grain sorghum and barley, the Secretary may
choose a 1995 ARP percentage in the range from 0 to 20 percent. For
oats, the 1995 ARP is statutorily mandated not to exceed 0 percent.
Section 1104 of the Agricultural Reconciliation Act of 1990
provides that the acreage reduction factor for the 1995 crops of corn,
grain sorghum, and barley may not be less than 7.5 percent unless the
estimated corn S/U for the 1994/95 marketing year is less than 20
percent.
Currently the S/U of corn for the 1993/94 corn marketing year is
less than 20 percent. Thus, the minimum 7.5-percent-ARP provision is
not currently applicable. The final ARP decision process could consider
higher ARP percentages up to 20 percent if the S/U exceeds 25 percent.
The ARP options included in this analysis are the most likely
possibilities, based on May 1994 data. If ending stocks increase, due
to weaker demand or higher than expected yields, and raise the S/U
ratio to 25 percent or higher, ARP levels between 12.5 and 20 percent
may be considered before a final decision is made. The 1995 ARP options
considered are shown in table 1.
Table 1.--Proposed 1995 Feed Grain ARP Options
------------------------------------------------------------------------
Option
Item -----------------------------
1 2 3
------------------------------------------------------------------------
Percent
-----------------------------
Corn..................................... 0 5 12.5
Grain Sorghum............................. 0 0 5
Barley.................................... 0 0 5
Oats...................................... 0 0 0
------------------------------------------------------------------------
For grain sorghum and barley, ARP percentages higher than 5 percent
are not considered because expected sorghum and barley S/U's are low
compared with historical levels. The 1994/95 grain sorghum S/U is
forecast at 20.1, which with the exceptions of 1991/92 and 1993/94, the
lowest level since 1976/77 (17.3 percent). The 1994/95 barley S/U is
forecast at 29.1, a level reached only one other time since 1974/75.
ARP levels above 5 percent would limit supplies of barley and grain
sorghum to the point of not allowing export and domestic needs to be
met. However, ARP levels above 5 percent will be considered when making
the final ARP decision if feed grain supply and demand changes are
large enough to warrant their consideration.
The estimated impacts of the ARP options are shown in tables 2
through 4.
Table 2.--Corn Supply and Demand Estimates
------------------------------------------------------------------------
1995 ARP options
Item -----------------------------
1 2 3
------------------------------------------------------------------------
Percent
-----------------------------
ARP....................................... 0 5 12.5
Participation............................. 79 76 68
-----------------------------
Million acres
-----------------------------
Planted acreage........................... 80.0 78.5 75.0
-----------------------------
Million bushels
-----------------------------
Production................................ 8,970 8,805 8,385
Domestic use.............................. 7,280 7,250 7,140
Exports................................... 1,475 1,450 1,400
Ending stocks, 8/31....................... 1,477 1,367 1,107
-----------------------------
Dollars per bushel
-----------------------------
Season average producer price............. 2.20 2.25 2.40
-----------------------------
Million dollars
-----------------------------
Deficiency payments....................... 3,008 2,474 1,406
------------------------------------------------------------------------
Table 3.--Grain Sorghum Supply and Demand Estimates
------------------------------------------------------------------------
1995 ARP options
Item -----------------------------
1 2 3
------------------------------------------------------------------------
Percent
-----------------------------
ARP....................................... 0 0 5
Participation............................. 79 78 72
-----------------------------
Million acres
-----------------------------
Planted acreage........................... 10.2 10.0 9.7
-----------------------------
Million bushels
-----------------------------
Production................................ 605 600 580
Domestic use.............................. 393 388 403
Exports................................... 200 200 190
Ending stocks, 8/31....................... 124 124 95
-----------------------------
Dollars per bushel
-----------------------------
Season average producer price............. 2.00 2.05 2.25
-----------------------------
Million dollars
-----------------------------
Deficiency payments....................... 297 269 151
------------------------------------------------------------------------
Table 4.--Barley Supply and Demand Estimates
------------------------------------------------------------------------
1995 ARP options
Item -----------------------------
1 2 3
------------------------------------------------------------------------
Percent
-----------------------------
ARP....................................... 0 0 5
Participation............................. 78 78 75
-----------------------------
Million acres
-----------------------------
Planted acreage........................... 7.8 7.8 7.5
-----------------------------
Million bushels
-----------------------------
Production................................ 425 425 405
Domestic use.............................. 390 390 400
Exports................................... 60 60 60
Ending stocks, 5/31....................... 146 146 121
-----------------------------
Dollars per bushel
-----------------------------
Season average producer price............. 2.05 2.10 2.25
-----------------------------
Million dollars
-----------------------------
Deficiency payments....................... 157 143 100
------------------------------------------------------------------------
Accordingly, comments are requested as to whether the 1995 acreage
reduction percentage for: (1) Corn should be 0, 5, or 12.5 percent or
any percentage less than 12.5 percent; (2) Grain sorghum should be 0 or
5 percent or any percentage in the range of 0 to 20 percent; and (3)
Barley should be 0 or 5 percent or any percentage in the range of 0 to
20 percent. The final determination of these percentages will be set
forth at 7 CFR part 1413.
In accordance with section 105B(e)(2)(G) of the 1949 Act, with
respect to feed grains, the Secretary may exempt producers of malting
barley, as a condition of eligibility for feed grain loans, purchases,
and payments, from complying with the acreage reduction requirements.
It is proposed that malting barley not be exempted from the feed grain
acreage reduction requirements for the 1995 crop.
List of Subjects in 7 CFR Part 1413
Acreage allotments, Cotton, Disaster assistance, Feed grains, Price
support programs, Reporting and recordkeeping requirements, Rice, Soil
conservation, Wheat.
Accordingly, it is proposed that 7 CFR part 1413 be amended as
follows:
PART 1413--FEED GRAIN, RICE, UPLAND AND EXTRA LONG STAPLE COTTON,
WHEAT AND RELATED PROGRAMS
1. The authority citation for 7 CFR part 1413 continues to read as
follows:
Authority: 7 U.S.C. 1308, 1308a, 1309, 1441-2, 1444-2, 1444f,
1445b-3a, 1461-1469; 15 U.S.C. 714b and 714c.
2. Section 1413.54 is amended by adding a new paragraph (a)(2)(v);
adding a new paragraph (d)(5); and revising paragraph (e) to read as
follows:
Sec. 1413.54 Acreage reduction program provisions.
(a) * * *
(2) * * *
(v) For the 1995 crop:
(A) Corn, grain sorghum, and barley shall be no more than 12.5
percent, as determined and announced by CCC; and
(B) Oats shall be 0 percent.
* * * * *
(d) * * *
(5) For the 1995 crop:
(i) [Reserved]
(ii) Shall not be made available to producers of feed grains, as
determined and announced by CCC.
(e) With respect to the 1991, 1992, 1993, 1994, and 1995 crop
years, in order to receive feed grain loans, purchases, and payments in
accordance with this part and part 1421 of this title, producers of
malting barley must comply with the acreage reduction requirements of
this part.
Signed this 27th day of July 1994 in Washington, DC.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-19020 Filed 8-1-94; 3:33 pm]
BILLING CODE 3410-05-P
