[Federal Register Volume 59, Number 95 (Wednesday, May 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12007]


[[Page Unknown]]

[Federal Register: May 18, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 1421

RIN 0560-AD34 and 0560-AD17

 

Grain and Similarly Handled Commodities; 1993 Wheat and Feed 
Grains Farmer-Owned Reserve Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends the regulations with respect to the 
farmer-owned reserve (FOR) program which is conducted by the Commodity 
Credit Corporation (CCC) in accordance with section 110 of the 
Agricultural Act of 1949 (the 1949 Act), as amended. The rule codifies 
determinations made by the Secretary of Agriculture (the Secretary) 
that the 1993 crops of wheat and feed grains may not be pledged as 
collateral for FOR loans.

EFFECTIVE DATE: May 18, 1994.

FOR FURTHER INFORMATION CONTACT: Philip Sronce, Director, Grains 
Analysis Division (GAD), Agricultural Stabilization and Conservation 
Service (ASCS), United States Department of Agriculture (USDA), room 
3742-S, P.O. Box 2415, Washington, DC 20013-2415 or call 202-720-4418.

SUPPLEMENTARY INFORMATION:

Final Regulatory Impact Analysis

    A Final Regulatory Impact Analysis has been prepared and is 
available from Craig Jagger, Agricultural Economist, GAD, ASCS, USDA, 
room 3740-S, P.O. Box 2415, Washington, DC 20013-2415 or call 202-720-
4418.

Executive Order 12866

    This final rule is issued in conformance with Executive Order 
12866. Based on information compiled by the USDA this rule has been 
determined to be ``economically significant'' because if FOR entry were 
permitted for wheat or feed grains, it would have an annual effect of 
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. If FOR entry were allowed for the 
1993 crops of wheat or feed grains, budget outlays for storage payments 
are expected to range from about $100 million to $500 million. This 
final 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 or legal policy issues arising out of legal 
mandates, the President's priorities, or principles set forth in 
Executive Order 12866.

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 Grain Reserve Program--10.067.

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 matter of this rule.

Executive Order 12778

    This final rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this rule do not preempt State laws, are 
not retroactive, and do not require the exhaustion of any 
administrative appeal remedies.

Environmental Assessment or Impact Statement

    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.

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 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 the Paperwork 
Reduction Act of 1990 (44 U.S.C. Chapter 35).

Statutory Background

    Section 110 of the 1949 Act sets forth the statutory authority for 
the FOR program for wheat and feed grains. It provides that the 
determination of whether or not there will be entry of a crop into the 
FOR will be announced by December 15 of the year in which the crop of 
wheat was harvested and, in the case of feed grains, March 15 of the 
year following the year in which the crop of corn was harvested.
    Entry into the FOR is triggered based upon prices and stocks-to-use 
(S/U) ratios. Section 110 of the 1949 Act, paragraphs (2) and (3), 
provides the following:
    (2) DISCRETIONARY ENTRY--The Secretary may make extended loans 
available to producers of wheat or feed grains if either of the 
following conditions is met:
    (A) Price Condition: The Secretary determines that the average 
market price for wheat or corn, respectively, for the 90-day period 
prior to the announcement is less than 120 percent of the current loan 
rate for wheat or corn, respectively; or
    (B) S/U Condition: As of the announcement date, the Secretary 
estimates that the S/U ratio on the last day of the current marketing 
year will be:
    (i) in the case of wheat, more than 37.5 percent; and
    (ii) in the case of corn, more than 22.5 percent.
    (3) MANDATORY ENTRY--The Secretary shall make extended loans 
available to producers of wheat or feed grains if both of the 
conditions specified in subparagraphs (A) and (B) of paragraph (2) are 
met for wheat and feed grains, respectively.
    If neither the price nor the S/U condition is met, the Secretary 
has no authority to make extended loans available to producers of wheat 
or feed grains.
    On December 15, 1993, the Secretary announced that the estimated 
wheat S/U ratio at the end of the 1993/94 marketing year was 29.0 
percent, the 90-day average market price of wheat was $3.19 per bushel, 
and 120 percent of the 1993 price support rate for wheat was $2.94 per 
bushel. Because neither entry conditions were met (the S/U ratio was 
less than 37.5 percent and the 90-day average market price of wheat was 
greater than 120 percent of the 1993 price support rate for wheat), the 
Secretary had no authority to allow entry of the 1993 crop of wheat 
into the FOR.
    On March 11, 1994, the Secretary announced that the estimated corn 
S/U ratio at the end of the 1993/94 marketing year was 10.1 percent, 
the 90-day average market price of corn was $2.71 per bushel, and 120 
percent of the 1993 price support rate for corn was $2.06 per bushel. 
Because neither entry conditions were met (the S/U ratio was less than 
22.5 percent and the 90-day average market price of corn was greater 
than 120 percent of the 1993 price support rate for corn), the 
Secretary had no authority to allow entry of the 1993 crop of feed 
grains into the FOR.
    This final rule amends 7 CFR part 1421 to set forth these 
determinations.

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. In Sec. 1421.217, paragraph (d) is added to read as follows:


Sec. 1421.217  Reserve entry.

* * * * *
    (d) No quantity of 1993-crop wheat or 1993-crop feed grains may be 
stored under the provisions of section 110 of the Agricultural Act of 
1949, as amended.

    Signed at Washington, DC, on May 12, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-12007 Filed 5-17-94; 8:45 am]
BILLING CODE 3410-05-P