[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-943]


[[Page Unknown]]

[Federal Register: January 14, 1994]


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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Part 1468

RIN 0560-AC65

 

Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair 
for the 1993 Marketing Year

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: On July 14, 1993, the Commodity Credit Corporation (CCC) 
issued a proposed rule (58 FR 37876) with respect to the support prices 
for shorn wool, wool on unshorn lambs, and mohair for the 1993 
marketing year. The support level for wool on unshorn lambs has been 
determined by taking 80 percent of the difference between the 1993 
support price for shorn wool and the 1993 national average market price 
for shorn wool, multiplied by 5 pounds (the amount of wool on an 
average 100-pound unshorn lamb). The mohair support level has been 
determined to be $4.738, which is equal to 85 percent of the comparable 
percentage of parity at which shorn wool is supported for the 1993 
marketing year. These actions are required by section 703 of the 
National Wool Act of 1954, as amended (Wool Act).

EFFECTIVE DATE: January 14, 1994.

FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Fibers and Rice 
Analysis Division, Agricultural Stabilization and Conservation Service, 
United States Department of Agriculture (USDA), room 3756-S, PO Box 
2415, Washington, DC 20013-2415 or call 202-720-6734.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This final rule is issued in conformance with Executive Order 12866 
and has been determined to be a ``significant regulatory action.'' 
Based on information compiled by USDA, it has been determined that this 
final rule:
    (1) Would have an annual effect on the economy of more than $100 
million;
    (2) 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;
    (3) Would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
    (4) Would not alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or rights and obligations of recipients 
thereof; and
    (5) 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 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 1993 marketing year. A general description of 
the statutory basis for such determinations in this final rule was set 
forth at 58 FR 37876 (July 14, 1993).
    A total of seven comments were received during the 30-day public 
comment period that ended August 13, 1993. Three respondents 
recommended that no changes be made to current support rates. Three 
respondents recommended that the price support programs be eliminated. 
In response to these 6 comments, it should be noted that although the 
proposed rule will be adopted without change, the wool and mohair 
programs will cease to exist after December 31, 1995.
    One respondent suggested that full payment for wool on unshorn 
lambs should be made only on unshorn lambs up to 125 pounds, 
liveweight, and that no payments should be made on any weight exceeding 
125 pounds. The respondent cited a problem with the current payment 
method which prorates payments based on the amount of weight gained 
while the lamb is owned first by the producer and later, a lamb feeder. 
The respondent noted that prorating payments encourages the production 
of over-fat lambs--a product that is not wanted by the American 
consumer--resulting in low lamb prices to the detriment of producers. 
This comment has not been adopted because it would increase 
recordkeeping requirements significantly for both ASCS and program 
participants, and it would require ASCS to make major revisions to the 
current procedure for calculating unshorn lamb payments. The potential 
savings resulting from lower payments would not be sufficient to 
justify such an increase in the administrative burden.
    After considering these comments, the following determinations have 
been made with respect to the wool and mohair price support programs 
for the 1993 marketing year.

Support Price--Wool on Unshorn Lambs

    In accordance with section 703 of the Wool Act, the support price 
for wool on unshorn lambs shall be determined by taking 80 percent of 
the difference between the 1993 support price for shorn wool and the 
1993 national average market price for shorn wool, multiplied by 5 
pounds (the amount of wool pulled from the pelt of 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 1993 marketing year shall be $4.738, which is equal 
to 85 percent of the comparable percentage of parity at which shorn 
wool is supported for the 1993 marketing year.
    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 price support levels announced in 
this rule may be recalculated to comply with this Act.

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 revising paragraph (b) to read as 
follows:


Sec. 1468.4  Eligibility for payments.

* * * * *
    (b)(1) The shorn wool support price for the 1991 through 1995 
marketing years 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. The shorn 
wool support price shall be as follows:
    (A) 1991--$1.88 per pound.
    (B) 1992--$1.97 per pound.
    (C) 1993--$2.04 per pound.
    (2) The payment rate for wool on unshorn lambs for the 1991 through 
1995 marketing years shall be 80 percent of the difference between the 
national average price received by producers for shorn wool during a 
specified marketing year and the shorn wool support price multiplied by 
5 (the average grease wool yield per hundredweight of live, unshorn 
lambs marketed). The payment rate for wool on unshorn lambs shall be as 
follows:
    (i) 1991--$5.32 per hundredweight.
    (ii) 1992--$4.92 per hundredweight.
    (iii) 1993--an amount equal to 80 percent of the difference between 
the national average price received by producers for shorn wool for the 
1993 marketing year and the 1993 shorn wool support price, multiplied 
by 5.
    (3) The mohair support price for the 1991 through 1995 marketing 
years shall be established at such level, in relationship to the 
support price for shorn wool, which is determined necessary to maintain 
approximately the same percentage of parity for mohair as for shorn 
wool. The mohair support price shall be set 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. The 
support price for mohair shall be as follows:
    (i) 1991--$4.448 per pound.
    (ii) 1992--$4.613 per pound.
    (iii) 1993--$4.738 per pound.
* * * * *
    Signed at Washington, DC, on January 6, 1994.
Grant Buntrock,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-943 Filed 1-13-94; 8:45 am]
BILLING CODE 3410-05-P