[Federal Register Volume 59, Number 176 (Tuesday, September 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22494]
[[Page Unknown]]
[Federal Register: September 13, 1994]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1413 and 1421
RIN 0560-AD38
1995 Rice Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would amend the regulations to set forth
the acreage reduction percentage, if any, and the national average
price support rate for the 1995 crop of rice. This action is required
by section 101B of the Agricultural Act of 1949 (1949 Act), as amended.
This proposed rule outlines a range of acreage reduction percentage
options proposed for the 1995 crop of rice and requests comments
regarding price support rate adjustments for different types and grades
of rice.
DATES: Comments must be received on or before October 24, 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), P.O. Box 2415,
room 3090-S, Washington, DC 20013-2415.
FOR FURTHER INFORMATION CONTACT: Gene S. Rosera, Agricultural
Economist, FRAD, ASCS, USDA, room 3758-S, P.O. Box 2415, Washington, DC
20013-2415 or call 202-720-6734.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be economically
significant and was reviewed by the Office of Management and Budget
(OMB) under 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. A Preliminary
Regulatory Impact Analysis was prepared that 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 impact on a substantial number of
small entities. 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 have no 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 proposed rule
applies, are: Rice Production Stabilization--10.065.
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 the 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 OMB
under the provisions of 44 U.S.C. 35.
Request for Public Comment
Comments are requested with respect to this proposed rule and such
comments shall be considered in developing the final rule.
Background
In accordance with section 101B of the 1949 Act, an acreage
reduction program (ARP) may be implemented for the 1995 rice crop if it
is determined that the total supply of rice, in the absence of such a
program, would be excessive taking into account the need for an
adequate carryover to maintain reasonable and stable supplies and
prices, and to meet a national emergency.
Land diversion payments also may be made to producers if needed to
adjust the total national acreage of rice to desirable goals. A paid
land diversion program is not considered because, given the considered
program options, it is not needed to achieve the statutory stocks-to-
use levels of rice.
If an ARP is announced, the reduction shall be achieved by applying
a uniform percentage reduction (from 0 to 35 percent) to the rice crop
acreage base for the crop for each rice producing 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 rice in excess of the permitted
acreage for the farm plus any rice 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.
The Secretary is required to carry out an acreage limitation
program in a manner that will result in carry-over stocks equal to 16.5
to 20.0 percent of the simple average of the total disappearance
(including domestic, export, and residual disappearance) of rice for
each of the 3 marketing years preceding the year for which the
announcement is made. The 1995-crop options considered are:
Option 1. 0-percent ARP.
Option 2. 2.5-percent ARP.
Option 3. 5.0-percent ARP.
The estimated impacts of these options are shown in this table.
Estimated Impacts of 1995 ARP Options
----------------------------------------------------------------------------------------------------------------
Option 1 Option 2 Option 3
----------------------------------------------------------------------------------------------------------------
ARP (%).................................................................. 0.0 2.5 5.0
Participation (%)........................................................ 97 97 97
Planted Acres (1,000 Acres).............................................. 3,180 3,100 3,020
Production (Million Hundredweight)....................................... 176.0 171.8 167.6
Domestic/Residual Use (Million Hundredweight)............................ 103.8 103.6 103.4
Exports (Million Hundredweight) 83.0 81.0 79.0
Ending Stocks (Million Hundredweight).................................... 32.8 30.7 28.7
Ratio of Ending Stocks to Prior 3 Years' Use (%)......................... 18.3 17.2 16.0
Season Average Price ($ per hundredweight)............................... 6.04 6.16 6.30
Net Outlays (Million $).................................................. 897.9 872.7 847.5
----------------------------------------------------------------------------------------------------------------
Accordingly, comments are requested whether to establish an ARP for
the 1995 rice crop, and if so, at what reduction percentage.
The final determination of this percentage will be set forth at 7
CFR 1413.54(a)(4)(iv) and (v).
In accordance with section 403 of the 1949 Act, appropriate
adjustments may be made in the support price for any commodity for
differences in grade, type, staple, quality, location, and other
factors.
A difference of $1.00 per hundredweight between the support rates
for milled whole kernels of long and medium/short grain has been
effective since the 1987 crop year. Comments are requested regarding an
appropriate difference between price support rates for milled whole
kernels of long grain and medium/short grain for the 1995 crop of rice.
Discounts for price support rates for lower grades of rice have
been established for prior crop years at levels reflecting the lower
market value of such rice. Rice price support loan rates are currently
subject to discounts that have been effective since 1983. These
discounts are $0.30 per hundredweight for U.S. Grade #3, $0.60 per
hundredweight for U.S. Grade #4, $1.00 per hundredweight for U.S. Grade
#5, and $2.00 per hundredweight for U.S. Grade #6. Accordingly,
comments are requested as to the level of premiums and discounts that
would be appropriate for any grade of 1995-crop rice.
List of Subjects
7 CFR part 1413
Acreage allotments, Cotton, Disaster assistance, Feed grains, Price
support programs, Reporting and recordkeeping requirements, Rice, Soil
conservation, Wheat.
7 CFR 1421
Grains, Loan programs--agriculture, Oilseeds, Peanuts, Price
support programs, Reporting and recordkeeping requirements, Soybeans,
Surety bonds, Warehouses.
Accordingly, it is proposed that 7 CFR parts 1413 and 1421 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 as follows by:
A. Revising paragraph (a)(4)(iv),
B. Adding paragraph (a)(4)(v),
C. Adding paragraph (d)(5), reserving paragraphs (d)(5)(i) through
(d)(5)(iv) and adding paragraph (d)(5)(v).
Sec. 1413.54 Acreage reduction program provisions.
(a) * * *
(4) * * *
(iv) 1994 rice, 0 percent;
(v) 1995 rice, within the range of 0 to 35 percent, if supplies are
excessive, as determined and announced by CCC.
* * * * *
(d)* * *
(5) For the 1995 crop:
(i) - (iv) [Reserved]
(v) Shall not be made available to producers of rice.
* * * * *
PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES
3. 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.
4. In Sec. 1421.7, paragraph (b)(7)(v) is added to read as follows:
Sec. 1421.7 Adjustment of basic support rates.
* * * * *
(b) * * *
(7) * * *
(v) 1995 Rice--$6.50 per hundredweight;
* * * * *
Signed at Washington, DC, on September 2, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-22494 Filed 9-12-94; 8:45 am]
BILLING CODE 3410-05-P
