[Federal Register Volume 59, Number 176 (Tuesday, September 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22494]


[[Page Unknown]]

[Federal Register: September 13, 1994]


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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Parts 1413 and 1421

RIN 0560-AD38

 

1995 Rice Program

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, if any, and the national average 
price support rate for the 1995 crop of rice. This action is required 
by section 101B of the Agricultural Act of 1949 (1949 Act), as amended. 
This proposed rule outlines a range of acreage reduction percentage 
options proposed for the 1995 crop of rice and requests comments 
regarding price support rate adjustments for different types and grades 
of rice.

DATES: Comments must be received on or before October 24, 1994 in order 
to be assured of consideration.

ADDRESSES: Comments must be mailed to Director, Fibers and Rice 
Analysis Division (FRAD), Agricultural Stabilization and Conservation 
Service (ASCS), U.S. Department of Agriculture (USDA), P.O. Box 2415, 
room 3090-S, Washington, DC 20013-2415.

FOR FURTHER INFORMATION CONTACT: Gene S. Rosera, Agricultural 
Economist, FRAD, ASCS, USDA, room 3758-S, P.O. Box 2415, Washington, DC 
20013-2415 or call 202-720-6734.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be economically 
significant and was reviewed by the Office of Management and Budget 
(OMB) under 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. A Preliminary 
Regulatory Impact Analysis was prepared that 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 impact on a substantial number of 
small entities. 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 have no 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 proposed rule 
applies, are: Rice Production Stabilization--10.065.

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 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 1413 set forth in this proposed rule 
do not contain information collections that require clearance by OMB 
under the provisions of 44 U.S.C. 35.

Request for Public Comment

    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 101B of the 1949 Act, an acreage 
reduction program (ARP) may be implemented for the 1995 rice crop if it 
is determined that the total supply of rice, in the absence of such a 
program, would be excessive taking into account the need for an 
adequate carryover to maintain reasonable and stable supplies and 
prices, and to meet a national emergency.
    Land diversion payments also may be made to producers if needed to 
adjust the total national acreage of rice to desirable goals. A paid 
land diversion program is not considered because, given the considered 
program options, it is not needed to achieve the statutory stocks-to-
use levels of rice.
    If an ARP is announced, the reduction shall be achieved by applying 
a uniform percentage reduction (from 0 to 35 percent) to the rice crop 
acreage base for the crop for each rice producing 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 rice in excess of the permitted 
acreage for the farm plus any rice 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.
    The Secretary is required to carry out an acreage limitation 
program in a manner that will result in carry-over stocks equal to 16.5 
to 20.0 percent of the simple average of the total disappearance 
(including domestic, export, and residual disappearance) of rice for 
each of the 3 marketing years preceding the year for which the 
announcement is made. The 1995-crop options considered are:

Option 1. 0-percent ARP.
Option 2. 2.5-percent ARP.
Option 3. 5.0-percent ARP.

    The estimated impacts of these options are shown in this table.

                                     Estimated Impacts of 1995 ARP Options                                      
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                                                                             Option 1     Option 2     Option 3 
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ARP (%)..................................................................         0.0          2.5          5.0 
Participation (%)........................................................        97           97           97   
Planted Acres (1,000 Acres)..............................................     3,180        3,100        3,020   
Production (Million Hundredweight).......................................       176.0        171.8        167.6 
Domestic/Residual Use (Million Hundredweight)............................       103.8        103.6        103.4 
Exports (Million Hundredweight)                                                  83.0         81.0         79.0 
Ending Stocks (Million Hundredweight)....................................        32.8         30.7         28.7 
Ratio of Ending Stocks to Prior 3 Years' Use (%).........................        18.3         17.2         16.0 
Season Average Price ($ per hundredweight)...............................         6.04         6.16         6.30
Net Outlays (Million $)..................................................       897.9        872.7        847.5 
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    Accordingly, comments are requested whether to establish an ARP for 
the 1995 rice crop, and if so, at what reduction percentage.
    The final determination of this percentage will be set forth at 7 
CFR 1413.54(a)(4)(iv) and (v).
    In accordance with section 403 of the 1949 Act, appropriate 
adjustments may be made in the support price for any commodity for 
differences in grade, type, staple, quality, location, and other 
factors.
    A difference of $1.00 per hundredweight between the support rates 
for milled whole kernels of long and medium/short grain has been 
effective since the 1987 crop year. Comments are requested regarding an 
appropriate difference between price support rates for milled whole 
kernels of long grain and medium/short grain for the 1995 crop of rice.
    Discounts for price support rates for lower grades of rice have 
been established for prior crop years at levels reflecting the lower 
market value of such rice. Rice price support loan rates are currently 
subject to discounts that have been effective since 1983. These 
discounts are $0.30 per hundredweight for U.S. Grade #3, $0.60 per 
hundredweight for U.S. Grade #4, $1.00 per hundredweight for U.S. Grade 
#5, and $2.00 per hundredweight for U.S. Grade #6. Accordingly, 
comments are requested as to the level of premiums and discounts that 
would be appropriate for any grade of 1995-crop rice.

List of Subjects

7 CFR part 1413

    Acreage allotments, Cotton, Disaster assistance, Feed grains, Price 
support programs, Reporting and recordkeeping requirements, Rice, Soil 
conservation, Wheat.

7 CFR 1421

    Grains, Loan programs--agriculture, Oilseeds, Peanuts, Price 
support programs, Reporting and recordkeeping requirements, Soybeans, 
Surety bonds, Warehouses.

    Accordingly, it is proposed that 7 CFR parts 1413 and 1421 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 as follows by:

A. Revising paragraph (a)(4)(iv),
B. Adding paragraph (a)(4)(v),
C. Adding paragraph (d)(5), reserving paragraphs (d)(5)(i) through 
(d)(5)(iv) and adding paragraph (d)(5)(v).


Sec. 1413.54 Acreage reduction program provisions.

    (a) * * *
    (4) * * *
    (iv) 1994 rice, 0 percent;
    (v) 1995 rice, within the range of 0 to 35 percent, if supplies are 
excessive, as determined and announced by CCC.
* * * * *
    (d)* * *
    (5) For the 1995 crop:
    (i) - (iv) [Reserved]
    (v) Shall not be made available to producers of rice.
* * * * *

PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES

    3. 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.

    4. In Sec. 1421.7, paragraph (b)(7)(v) is added to read as follows:


Sec. 1421.7 Adjustment of basic support rates.

* * * * *
    (b) * * *
    (7) * * *
    (v) 1995 Rice--$6.50 per hundredweight;
* * * * *
    Signed at Washington, DC, on September 2, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-22494 Filed 9-12-94; 8:45 am]
BILLING CODE 3410-05-P