[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8253]


[[Page Unknown]]

[Federal Register: April 6, 1994]


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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Part 1413

RIN O560-AD76

 

1995 Wheat Program, Acreage Reduction

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 the 1995 crop of wheat. This 
action is required by the Agricultural Act of 1949 (the 1949 Act), as 
amended.

DATES: Comments must be received on or before May 4, 1994, in order to 
be assured of consideration.

ADDRESSES: Comments may be FAXed to 202-690-1346 or mailed to Craig 
Jagger, Agricultural Economist, Grains Analysis Division, Agricultural 
Stabilization and Conservation Service (ASCS), U.S. Department of 
Agriculture (USDA), P.O. Box 2415, room 3740-S, Washington, DC 20013-
2415; telephone 202-720-4418. Comments received may be inspected 
between 9 a.m. and 4:30 p.m., Monday through Friday, except holidays, 
in room 3740, South Agriculture Building, USDA, 14th Street and 
Independence Avenue SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Craig Jagger, Agricultural Economist, 
Grains Analysis Division, USDA, ASCS, room 3740-S, P.O. Box 2415, 
Washington, DC 20013-2415 or call 202 720-4418.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule is issued in conformance with Executive Order 
12866. Based on information compiled by the USDA, it 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 $1.3 billion to $1.8 
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.

Preliminary Regulatory Impact Analysis

    A Preliminary Regulatory Impact Analysis describing the options 
considered in developing this proposed rule and the impacts of 
implementing each option is available from the above-named individual.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will not have 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: Wheat Production Stabilization--10.058.

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 107B(o) of the 1949 Act to request 
comments with respect to the subject matter of this rule. The 
Preliminary Regulatory Impact Analysis referred to above determined 
that the 1995 Wheat Acreage Reduction Program (ARP) will have no 
significant economic impact on small entities because the regulatory 
burden on the affected entities would remain the same regardless of the 
determinations made by this action. Thus, CCC certifies that this rule 
will have no significant economic impact on a substantial number of 
small entities.

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).

Executive Order 12778

    This proposed rule has been reviewed in accordance with Executive 
Order 12778. This rule does not involve the preemption of State law, is 
not retroactive, and does not involve any exhaustion of administrative 
remedy issues.

Paperwork Reduction Act

    The amendment to 7 CFR part 1413 set forth in this proposed rule 
does not contain information collections that require clearance by the 
Office of Management and Budget under the provisions of 44 U.S.C. 35.

Comments

    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 107B of the 1949 Act, an ARP is required 
to be implemented for the 1995 wheat crop if it is determined that the 
total supply of wheat would otherwise be excessive.
    Land diversion payments also may be made to producers if needed to 
adjust the total national acreage of wheat to desirable goals. A paid 
land diversion program is not 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 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 wheat in excess of the permitted 
acreage for the farm plus any wheat acreage planted in accordance with 
the flexibility provisions provided by section 504 of the 1949 Act are 
ineligible for loans and purchases and all payments with respect to 
that crop on the farm.
    If an ARP for the 1995 crop is in effect, the program must be 
announced no later than June 1, 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 wheat since the program was 
first announced. These adjustments must be made no later than July 31, 
1994.
    In accordance with section 107B of the 1949 Act, not less than 60 
days before the program is announced for a crop of wheat, proposals for 
public comment on various program options for the crop of wheat 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 Wheat ARP, the Secretary will choose a 
specific ARP percentage from within a range established by the 
estimated ending stocks-to-use (S/U) ratio for the 1994/95 wheat 
marketing year. If it is estimated that the 1994/95 S/U in percentage 
terms will be--
    (i) More than 40 percent, the ARP shall not be less than 10 percent 
nor more than 20 percent; or
    (ii) Equal to or less than 40 percent, the ARP may not be more than 
0 to 15 percent.
    The S/U for the 1994/95 marketing year at 24.0 percent is estimated 
to be well below 40 percent. Based on this estimate, the 1995 ARP may 
be not more than 15 percent.
    In addition, section 1104 of the Agricultural Reconciliation Act of 
1990 provides that the acreage reduction factor for the 1995 crop of 
wheat may not be less than 5 percent. This provision does not apply if 
the beginning stocks of soybeans for the 1991/92 marketing year are 
less than 325 million bushels or if the estimated S/U for the 1994 
wheat crop is less than 34 percent.
    The current estimate of soybean stocks on September 1, 1991, is 329 
million bushels. The estimated S/U for the 1994/95 wheat crop is 24.0 
percent. Thus, under current supply and use estimates for soybeans and 
wheat, the minimum 5-percent-ARP provision is not applicable.
    The 1995 ARP options considered are:

Option 1. 0-percent ARP
Option 2. 5-percent ARP
Option 3. 10-percent ARP

    The estimated impacts of the ARP options are shown in this table. 

                 Estimated Impacts of 1995 ARP Options                  
------------------------------------------------------------------------
                                                                Option 3
                   Item                     Option 1  Option 2          
------------------------------------------------------------------------
ARP (%)...................................         0         5        10
Participation (%).........................        86        85        83
Planted Acres (Million acres).............      72.6      70.8      68.6
Production (Million bushels)..............     2,437     2,378     2,303
Domestic Use (Million bushels)............     1,238     1,223     1,203
Exports (Million bushels).................     1,225     1,215     1,205
Ending stocks (Million bushels)...........       659       625       580
Season Average Producer Price ($ / bushel)      3.00      3.05      3.15
Deficiency Payments ($ million)...........     1,844     1,630    1,339 
------------------------------------------------------------------------

    Accordingly, comments are requested as to whether there should be a 
1995 acreage reduction percentage, and, if so, whether it should be 0 
percent, 5 percent, 10 percent, or some other percentage within the 
range of 0 to 15 percent. The final determination of this percentage 
will be set forth at 7 CFR part 1413.

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(a)(1) is revised to read as follows:


Sec. 1413.54  Acreage reduction program provisions.

    (a) * * *
    (1)(i) 1991 wheat, 15 percent;
    (ii) 1992 wheat, 5 percent;
    (iii) 1993 wheat, 0 percent;
    (iv) 1994 wheat, 0 percent;
    (v) 1995 wheat, if announced, shall be within the range of 0 to 15 
percent, as determined and announced by CCC.
* * * * *
    Signed at Washington, DC on April 1, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-8253 Filed 4-1-94; 3:41 pm]
BILLING CODE 3410-05-P