[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22920]
[[Page Unknown]]
[Federal Register: September 16, 1994]
VOL. 59, NO. 179
Friday, September 16, 1994
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: 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. This proposed rule would
amend the regulations to set forth the support levels for shorn wool,
wool on unshorn lambs, and mohair for the 1995 marketing year.
DATES: Comments must be received on or before October 17, 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 rule has been determined to be significant and was reviewed by
OMB under 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.
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
1995 shorn wool support price (grease basis) is as follows:
(1) Average parity index, calendar years 1991-1993:
1991-1285
1992-1303
1993-1340
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3928 divided by 3........................................ 1309.3
(2) Average parity index, 1958-1960.......................... 297.3
(3) Ratio of 1309.3 to 297.3................................. 4.4040
(4) 4.4040 x 62 cents/lb. (1965 support price)............... $2.7305
(5) 77.5% x $2.7305.......................................... $2.1161
(6) $2.1161 rounded to nearest cent.......................... $2.12
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 1995 marketing year, the payments shall be 50
percent 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 1995
marketing year are being proposed.
A. Support Price--Wool on Unshorn Lambs
The support price for wool on unshorn lambs for the 1995 marketing
year cannot be determined until the 1995 national average market price
for shorn wool is calculated. This will occur by April 1996. It is
proposed that the method for calculating the support price for wool on
unshorn lambs shall be as follows: Once the 1995 national average
market price for shorn wool is determined, the support price for wool
on unshorn lambs will 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 average
quantity of wool on an average 100-pound unshorn lamb). 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 1995 marketing year payment for wool on unshorn lambs
shall be 50 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 1995
marketing year shall be determined based on the October 1994 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 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.
(b) (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.
(b) (3) * * *
(v) 1995--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.
* * * * *
Signed at Washington, DC, on September 8, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-22920 Filed 9-15-94; 8:45 am]
BILLING CODE 3410-05-P
