[Federal Register Volume 59, Number 149 (Thursday, August 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19020]


[[Page Unknown]]

[Federal Register: August 4, 1994]


                                                   VOL. 59, NO. 149

                                           Thursday, August 4, 1994

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1413

RIN 0560-AD37

 

1995 Feed Grain Acreage Reduction Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would amend the regulations: to set forth 
the acreage reduction percentage for each of the 1995 feed grain crops; 
to require that producers of malting barley comply with acreage 
reduction requirements to maintain eligibility for feed grain loans, 
purchases, and payments; and to provide that a paid land diversion 
(PLD) program will not be in effect. Producers who participate in the 
Feed Grain Acreage Reduction Program (ARP) would be eligible for 
benefits such as price support loans and deficiency payments. This 
action is required by section 105B of the Agricultural Act of 1949, as 
amended (the 1949 Act).

DATES: Comments must be received on or before September 14, 1994, in 
order to be assured of consideration.

ADDRESSES: Comments must be mailed to Director, Grains Analysis 
Division, Agricultural Stabilization and Conservation Service (ASCS), 
U.S. Department of Agriculture (USDA), P.O. Box 2415, room 3742-S, 
Washington, DC 20013-2415.

FOR FURTHER INFORMATION CONTACT: Philip W. Sronce, Director, Grains 
Analysis Division, ASCS, USDA, room 3742-S, P.O. Box 2415, Washington, 
DC 20013-2415 or call 202-720-4418.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule is issued in accordance with Executive Order 12866. Based 
on information compiled by the USDA, this proposed rule 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 $1.5 to $3.5 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.

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 105B(o) of the 1949 Act to request 
comments with respect to the subject matter of this rule. An Initial 
Regulatory Flexibility Analysis was prepared, which determined that 
this regulation will have no significant impact on a substantial number 
of small entities because the particular acreage reduction percentages 
considered will not affect the paperwork, reporting, or compliance 
burdens of the small entities in the program. CCC thus certifies that 
the rule will have no significant economic impact on a substantial 
number of small entities.

Preliminary Regulatory Impact Analysis

    The Preliminary Regulatory Impact Analysis describing the options 
considered in developing this proposed rule and the impact of the 
implementation of each option is available on request from the above-
named individual.

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: Feed Grain Production Stabilization--10.055.

Executive Order 12778

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

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 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 1413 set forth in this proposed 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.

Public Comments

    Comments are requested with respect to this proposed rule and such 
comments shall be considered in developing the final rule.

Statutory Background

    In accordance with section 105B of the 1949 Act, an ARP is required 
to be implemented for the 1995 crops of corn, grain sorghum, or barley 
if it is determined that the total supply of each respective feed grain 
would otherwise be excessive.
    Land diversion payments also may be made to producers if needed to 
adjust the total national acreage of feed grains to desirable goals. A 
PLD program is not being 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 respective feed grain 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 feed grains in excess of the 
respective permitted acreage for the farm plus any respective feed 
grain acreage planted in accordance with the flexibility provisions are 
ineligible for loans and purchases and all payments with respect to 
that crop on the farm. If an ARP program for the 1995 crop is in 
effect, the program must be announced no later than September 30, 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 feed 
grains since the program was first announced. These adjustments must be 
made no later than November 15, 1994.
    In accordance with section 105B of the 1949 Act, not less than 60 
days before the program is announced for a crop of feed grains, 
proposals for public comment on various program options for the crop of 
feed grains 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 corn ARP, the Secretary will choose a 
specific ARP reduction percentage from within a range established by 
the estimated ending stocks-to-use (S/U) ratio for the 1994/95 corn 
marketing year. If it is estimated that the 1994/95 ending S/U ratio in 
percentage terms will be:
    (1) More than 25 percent, the ARP shall not be less than 10 percent 
or more than 20 percent; or
    (2) Equal to or less than 25 percent, the ARP may not be more than 
12.5 percent.
    The S/U for the 1994/95 marketing year is estimated to be 15.1 
percent. Based on this estimate, the 1995 ARP may be not more than 12.5 
percent. In the case of grain sorghum and barley, the Secretary may 
choose a 1995 ARP percentage in the range from 0 to 20 percent. For 
oats, the 1995 ARP is statutorily mandated not to exceed 0 percent.
    Section 1104 of the Agricultural Reconciliation Act of 1990 
provides that the acreage reduction factor for the 1995 crops of corn, 
grain sorghum, and barley may not be less than 7.5 percent unless the 
estimated corn S/U for the 1994/95 marketing year is less than 20 
percent.
    Currently the S/U of corn for the 1993/94 corn marketing year is 
less than 20 percent. Thus, the minimum 7.5-percent-ARP provision is 
not currently applicable. The final ARP decision process could consider 
higher ARP percentages up to 20 percent if the S/U exceeds 25 percent. 
The ARP options included in this analysis are the most likely 
possibilities, based on May 1994 data. If ending stocks increase, due 
to weaker demand or higher than expected yields, and raise the S/U 
ratio to 25 percent or higher, ARP levels between 12.5 and 20 percent 
may be considered before a final decision is made. The 1995 ARP options 
considered are shown in table 1. 

             Table 1.--Proposed 1995 Feed Grain ARP Options             
------------------------------------------------------------------------
                                                       Option           
                   Item                    -----------------------------
                                               1         2         3    
------------------------------------------------------------------------
                                                                        
                                                      Percent           
                                                                        
                                           -----------------------------
 Corn.....................................         0         5      12.5
Grain Sorghum.............................         0         0         5
Barley....................................         0         0         5
Oats......................................         0         0         0
------------------------------------------------------------------------

    For grain sorghum and barley, ARP percentages higher than 5 percent 
are not considered because expected sorghum and barley S/U's are low 
compared with historical levels. The 1994/95 grain sorghum S/U is 
forecast at 20.1, which with the exceptions of 1991/92 and 1993/94, the 
lowest level since 1976/77 (17.3 percent). The 1994/95 barley S/U is 
forecast at 29.1, a level reached only one other time since 1974/75. 
ARP levels above 5 percent would limit supplies of barley and grain 
sorghum to the point of not allowing export and domestic needs to be 
met. However, ARP levels above 5 percent will be considered when making 
the final ARP decision if feed grain supply and demand changes are 
large enough to warrant their consideration.
    The estimated impacts of the ARP options are shown in tables 2 
through 4.

               Table 2.--Corn Supply and Demand Estimates               
------------------------------------------------------------------------
                                                  1995 ARP options      
                   Item                    -----------------------------
                                                1         2         3   
------------------------------------------------------------------------
                                                                        
                                                       Percent          
                                                                        
                                           -----------------------------
ARP.......................................         0         5      12.5
Participation.............................        79        76        68
                                                                        
                                           -----------------------------
                                                   Million acres        
                                                                        
                                           -----------------------------
Planted acreage...........................      80.0      78.5      75.0
                                                                        
                                           -----------------------------
                                                   Million bushels      
                                                                        
                                           -----------------------------
Production................................     8,970     8,805     8,385
Domestic use..............................     7,280     7,250     7,140
Exports...................................     1,475     1,450     1,400
Ending stocks, 8/31.......................     1,477     1,367     1,107
                                                                        
                                           -----------------------------
                                                 Dollars per bushel     
                                                                        
                                           -----------------------------
Season average producer price.............      2.20      2.25      2.40
                                                                        
                                           -----------------------------
                                                   Million dollars      
                                                                        
                                           -----------------------------
Deficiency payments.......................     3,008     2,474    1,406 
------------------------------------------------------------------------


          Table 3.--Grain Sorghum Supply and Demand Estimates           
------------------------------------------------------------------------
                                                  1995 ARP options      
                   Item                    -----------------------------
                                                1         2         3   
------------------------------------------------------------------------
                                                                        
                                                       Percent          
                                                                        
                                           -----------------------------
ARP.......................................         0         0         5
Participation.............................        79        78        72
                                                                        
                                           -----------------------------
                                                    Million acres       
                                                                        
                                           -----------------------------
Planted acreage...........................      10.2      10.0       9.7
                                                                        
                                           -----------------------------
                                                   Million bushels      
                                                                        
                                           -----------------------------
Production................................       605       600       580
Domestic use..............................       393       388       403
Exports...................................       200       200       190
Ending stocks, 8/31.......................       124       124        95
                                                                        
                                           -----------------------------
                                                 Dollars per bushel     
                                                                        
                                           -----------------------------
Season average producer price.............      2.00      2.05      2.25
                                                                        
                                           -----------------------------
                                                   Million dollars      
                                                                        
                                           -----------------------------
Deficiency payments.......................       297       269      151 
------------------------------------------------------------------------


              Table 4.--Barley Supply and Demand Estimates              
------------------------------------------------------------------------
                                                  1995 ARP options      
                   Item                    -----------------------------
                                                1         2         3   
------------------------------------------------------------------------
                                                                        
                                                       Percent          
                                                                        
                                           -----------------------------
ARP.......................................         0         0         5
Participation.............................        78        78        75
                                                                        
                                           -----------------------------
                                                    Million acres       
                                                                        
                                           -----------------------------
Planted acreage...........................       7.8       7.8       7.5
                                                                        
                                           -----------------------------
                                                   Million bushels      
                                                                        
                                           -----------------------------
Production................................       425       425       405
Domestic use..............................       390       390       400
Exports...................................        60        60        60
Ending stocks, 5/31.......................       146       146       121
                                                                        
                                           -----------------------------
                                                 Dollars per bushel     
                                                                        
                                           -----------------------------
Season average producer price.............      2.05      2.10      2.25
                                                                        
                                           -----------------------------
                                                   Million dollars      
                                                                        
                                           -----------------------------
Deficiency payments.......................       157       143       100
------------------------------------------------------------------------

    Accordingly, comments are requested as to whether the 1995 acreage 
reduction percentage for: (1) Corn should be 0, 5, or 12.5 percent or 
any percentage less than 12.5 percent; (2) Grain sorghum should be 0 or 
5 percent or any percentage in the range of 0 to 20 percent; and (3) 
Barley should be 0 or 5 percent or any percentage in the range of 0 to 
20 percent. The final determination of these percentages will be set 
forth at 7 CFR part 1413.
    In accordance with section 105B(e)(2)(G) of the 1949 Act, with 
respect to feed grains, the Secretary may exempt producers of malting 
barley, as a condition of eligibility for feed grain loans, purchases, 
and payments, from complying with the acreage reduction requirements. 
It is proposed that malting barley not be exempted from the feed grain 
acreage reduction requirements for the 1995 crop.

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 is amended by adding a new paragraph (a)(2)(v); 
adding a new paragraph (d)(5); and revising paragraph (e) to read as 
follows:


Sec. 1413.54   Acreage reduction program provisions.

    (a) * * *
    (2) * * *
    (v) For the 1995 crop:
    (A) Corn, grain sorghum, and barley shall be no more than 12.5 
percent, as determined and announced by CCC; and
    (B) Oats shall be 0 percent.
* * * * *
    (d) * * *
    (5) For the 1995 crop:
    (i) [Reserved]
    (ii) Shall not be made available to producers of feed grains, as 
determined and announced by CCC.
    (e) With respect to the 1991, 1992, 1993, 1994, and 1995 crop 
years, in order to receive feed grain loans, purchases, and payments in 
accordance with this part and part 1421 of this title, producers of 
malting barley must comply with the acreage reduction requirements of 
this part.

    Signed this 27th day of July 1994 in Washington, DC.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-19020 Filed 8-1-94; 3:33 pm]
BILLING CODE 3410-05-P