[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