[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: 94-22922]
[[Page Unknown]]
[Federal Register: September 16, 1994]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1421
RIN 0560-AD27
1994-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
1994 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
by the Food, Agriculture, Conservation, and Trade Act of 1990. The
determination of the minimum CCC export edible sale price for
additional peanuts is a discretionary determination made to facilitate
the marketing of additional peanut contract negotiations.
EFFECTIVE DATE: February 15, 1994.
FOR FURTHER INFORMATION CONTACT: Kenneth M. Robison, Tobacco and
Peanuts Analysis Division, Agricultural Stabilization and Conservation
Service (ASCS), Room 3732, South Building, United States Department of
Agriculture, P.O. Box 2415, Washington, DC 20013-2415, Telephone 202-
720-7477.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order 12866
and has been determined to be significant.
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 12372
This program/activity is not subject to the provisions of Executive
Order 12372 relating to 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).
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.
Information Collection Requirements
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.
This rule is issued pursuant to the provisions of the 1949 Act.
On February 15, 1994, the Secretary announced the national average
support levels for 1994-crop quota and additional peanuts and the
minimum CCC export edible sales price for 1994-crop additional peanuts.
Section 1017 of The Food Security Act of 1985 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 in any directive of the Secretary.
Determinations
A. Quota Peanuts Support Level
In accordance with section 108B(a)(2) of the 1949 Act, the national
average price support level for 1994-crop quota peanuts must be the
corresponding 1993-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) 1994, except that the MY 1994 price
support level cannot exceed the MY 1993 support level by more than 5
percent. In the event of a reduction in these costs of production, the
MY 1994 price support level for quota peanuts would be required, under
the terms of Section 108B, to be unchanged from MY 1993. The MY 1993
quota peanut price support level is $674.93 per st. The MY 1994 support
level for quota peanuts was determined based on the following
estimates:
Peanut Cost Escalator Calculations
------------------------------------------------------------------------
Variablecomponent 1993 1994
------------------------------------------------------------------------
Total cash expenses (less interest on real
estate), capital replacement, and unpaid
labor\1\....................................... $488.63/ac
re $492.91/ac
re
Trend yields.................................... 2,500 lbs./
acre 2,500 lbs./
acre
Adjusted costs per pound........................ $0.195452 $0.197164
------------------------------------------------------------------------
Adjusted Costs Per Short Ton
------------------------------------------------------------------------
Dollars per short ton
-------------------------------------------------------------------------
1992 1993
------------------------------------------------------------------------
$390.90.................................................... $394.33
------------------------------------------------------------------------
1994 Quota Calculations
[Dollars per short ton]
Change during 1993 in the average cost of producing peanuts.. $3.43
1994 Quota Support Level (1993 Support + escalator).......... $674.93+
$3.43=
$678.36
\1\Economic Research Service estimates.
Source: TPAD/ASCS/January 1994.
As indicated, relevant peanut production costs increased from
calendar year 1992 to 1993. The MY 1994 quota peanut price support
level is accordingly established at $678.36 per st, up $3.43 per st
from MY 1993.
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 1994 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, up $0.91 per st from MY 1992. 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 essentially unchanged from the level for
additional peanuts that was in place for the 1993 crop, that being
$131.09 per st. However, it was determined to increase the support
level to reflect a similar percentage increase as applied to the quota
support level, then rounded to the nearest whole dollar which should
continue, it has been determined, to be a level which will reasonably
assure no losses on the sale or disposal of additional peanuts for CCC.
In making this determination, the following information was considered.
1. The domestic use of peanut oil during MY 1994 is forecast to be
117,500 st, up 6.8 percent from MY 1993 projected domestic use. MY 1994
peanut oil beginning stocks are expected to be 25,000 st, down 50
percent from MY 1993. The MY 1994 average peanut oil price is expected
to be $0.35 per pound, down $0.06 per pound from MY 1993.
2. The domestic use of peanut meal during MY 1994 is forecast to be
205,000 st, up 44,000 st from MY 1993 projected domestic use. MY 1994
peanut meal beginning stocks are expected to be 5,000 st, down 1,000 st
from MY 1993. The MY 1994 average peanut meal price is expected to be
$155 per st, up $45 per st from MY 1993.
3. The domestic disappearance of soybean oil during MY 1994 is
forecast to be 6,525,000 st, up 1.2 percent from projected MY 1993
domestic disappearance. MY 1994 soybean oil beginning stocks are
expected to be 462,500 st, down 40.5 percent from MY 1993. The MY 1994
average soybean oil price is expected to be $0.275 per pound, unchanged
from MY 1993.
4. The domestic disappearance of cottonseed oil during MY 1994 is
forecast to be 530,000 st, unchanged from projected MY 1993 domestic
disappearance. MY 1994 cottonseed oil beginning stocks are expected to
be 42,500 st, up 4.9 percent from MY 1993. The MY 1994 average
cottonseed oil price is expected to be $0.29 per pound, down $0.005
from MY 1993.
5. The domestic disappearance of soybean meal during MY 1994 is
forecast to be 24,500,000 st, up 1.0 percent from projected MY 1993
domestic disappearance. MY 1994 soybean meal beginning stocks are
expected to be 300,000 st, up 47 percent from MY 1993. The MY 1994
average soybean meal price is expected to be $165 per st, down $35 per
st from MY 1993.
6. The domestic disappearance of cottonseed meal during MY 1994 is
forecast to be 1,600,000 st, up 3.9 percent from projected MY 1993
domestic disappearance. MY 1994 cottonseed meal beginning stocks are
expected to be 40,000 st, up 37.9 percent from MY 1993. The average
cottonseed meal price for MY 1994 is expected to be $130 per st, down
$35 per st from MY 1993.
7. The world use of peanuts for MY 1993 is expected to be 23.03
million metric tons, down 0.1 percent from MY 1992. World peanut
production for MY 1993 is forecast to be 22.74 million metric tons,
down 1.5 percent from MY 1992. Ending stocks for MY 1993 are forecast
at 0.59 million metric tons, down 30.0 percent from MY 1992.
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 1994 minimum CCC export edible
sales price of $400 per st as well as other determinations not related
to this notice, was published on November 30, 1993 (58 FR 63106). Eight
comments were received during the public comment period that ended on
December 2, 1993. Comments were submitted by four grower and sheller
organizations that supported the proposed $400 per st minimum CCC
export edible sales price. Two manufacturers and two manufacturer
organizations made no recommendations on this issue. For the reasons
given in the proposed rule, the minimum price at which 1994-crop
additional peanuts owned or controlled by CCC may be sold for use as
edible peanuts in export markets is established at $400 per st.
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)(iii) is amended by:
A. Removing the period at the end of paragraph (b)(8)(iii) and
inserting a semicolon in its place; and
B. Adding paragraph (b)(8)(iv) to read as follows:
Sec. 1421.7 Adjustment of basic support rates.
* * * * *
(6) * * *
(8) * * *
(iv) 1994 Peanuts, Quota--$678.36 per short ton; Additional--
$132.00 per short ton.
* * * * *
3. Section 1421.27 is amended by:
A. Removing the period at the end of paragraph (a)(2)(iii) and
inserting a semicolon in its place, and
B. Adding paragraph (a)(2)(iv) 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.
* * * * *
Signed at Washington, DC, on September 8, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-22922 Filed 9-15-94; 8:45 am]
BILLING CODE 3410-05-P
