[Federal Register Volume 59, Number 179 (Friday, September 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22920]


[[Page Unknown]]

[Federal Register: September 16, 1994]


                                                   VOL. 59, NO. 179

                                         Friday, September 16, 1994

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1468

RIN 0560-AD40

 

Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair 
for the 1995 Marketing Year

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The National Wool Act of 1954, as amended (Wool Act), requires 
the Secretary of Agriculture (Secretary), through the Commodity Credit 
Corporation (CCC), to make loans and payments available to producers of 
wool and mohair through December 31, 1995. This proposed rule would 
amend the regulations to set forth the support levels for shorn wool, 
wool on unshorn lambs, and mohair for the 1995 marketing year.

DATES: Comments must be received on or before October 17, 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), room 3760-S, PO 
Box 2415, Washington, DC 20013-2415.

FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, FRAD, ASCS, USDA, 
room 3756-S, PO Box 2415, Washington, DC 20013-2415 or call 202-720-
6734.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be significant and was reviewed by 
OMB under Executive Order 12866.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this proposed rule since the 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 these 
determinations.

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: National Wool Act Payments--10.059.

Executive Order 12778

    This proposed rule has been reviewed in accordance with Executive 
Order 12778. The provisions of the proposed rule do not preempt State 
laws, are not retroactive, and do not involve administrative appeals.

Executive Order 12372

    This program/activity 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 1468 set forth in this proposed rule 
will not result in any change in the public reporting burden. 
Therefore, the information collection requirements of the Paperwork 
Reduction Act are not applicable to this amendment.

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.

Comments

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

Background

    Section 703(a) of the Wool Act provides that the Secretary shall, 
through the CCC, make loans and payments available to producers of wool 
and mohair through December 31, 1995.
    Section 703(b) of the Wool Act provides that the support price for 
shorn wool for each of the marketing years 1991 through 1995 shall be 
77.5 percent of an amount which is determined by multiplying 62 cents 
(the support price in 1965) by the ratio of: (i) The average of the 
parity index (the index of prices paid by farmers, including 
commodities and services, interest, taxes, and farm wage rates) for the 
three calendar years immediately preceding the calendar year in which 
such support price is being determined and announced to (ii) the 
average parity index for the three calendar years 1958, 1959, and 1960, 
rounding the result to the nearest full cent.
    Based on current reported parity indices, the calculation for the 
1995 shorn wool support price (grease basis) is as follows: 

(1) Average parity index, calendar years 1991-1993:                     
    1991-1285                                                           
    1992-1303                                                           
    1993-1340                                                           
--------------------------------------------------------------          
    3928 divided by 3........................................     1309.3
(2) Average parity index, 1958-1960..........................      297.3
(3) Ratio of 1309.3 to 297.3.................................     4.4040
(4) 4.4040 x 62 cents/lb. (1965 support price)...............    $2.7305
(5) 77.5% x $2.7305..........................................    $2.1161
(6) $2.1161 rounded to nearest cent..........................     $2.12 
                                                                        

    Section 703(c) of the Wool Act provides that the support prices for 
pulled wool and for mohair shall be established at such levels, in 
relationship to the support price for shorn wool, which is determined 
to maintain normal marketing practices for pulled wool, and which is 
determined necessary to maintain approximately the same percentage of 
parity for mohair as for shorn wool. Section 703(c) further provides 
that the support price for mohair must be within a range of 15 per 
centum above or below the comparable percentage of parity at which 
shorn wool is supported.
    Section 704(a) provides that payments shall be such as the 
Secretary determines to be sufficient, when added to the national 
average price received by producers, to give producers a national 
average return for the commodity equal to the support price level, and 
that, in the case of the 1995 marketing year, the payments shall be 50 
percent of the amount otherwise determined in accordance with such 
section.
    Section 703(e) of the Wool Act provides that, to the extent 
practicable, support price levels for wool and mohair shall be 
established and announced sufficiently in advance of each marketing 
year, as will permit producers to plan their production for such 
marketing year. Accordingly, the following methods for calculating the 
support prices for wool on unshorn lambs and for mohair for the 1995 
marketing year are being proposed.

A. Support Price--Wool on Unshorn Lambs

    The support price for wool on unshorn lambs for the 1995 marketing 
year cannot be determined until the 1995 national average market price 
for shorn wool is calculated. This will occur by April 1996. It is 
proposed that the method for calculating the support price for wool on 
unshorn lambs shall be as follows: Once the 1995 national average 
market price for shorn wool is determined, the support price for wool 
on unshorn lambs will be determined by multiplying 80 percent of the 
difference between the 1995 support price for shorn wool and the 1995 
national average market price for shorn wool by 5 pounds (the average 
quantity of wool on an average 100-pound unshorn lamb). Historically, 
this formula has provided equitable support for wool on unshorn lambs 
relative to shorn wool and has helped to maintain normal marketing 
practices for pulled wool. In accordance with section 704(a) of the 
Wool Act, the 1995 marketing year payment for wool on unshorn lambs 
shall be 50 percent of the amount otherwise determined in accordance 
with such formula.

B. Support Price--Mohair

    It is proposed that the support price for mohair for the 1995 
marketing year shall be determined based on the October 1994 parity 
prices for mohair and shorn wool. The following percentages of parity 
at which shorn wool is supported are being considered in the final 
computation of the mohair support price: 85, 100, and 115 percent.
    The support programs conducted pursuant to the Wool Act are subject 
to the provisions of the Balanced Budget and Deficit Reduction Act of 
1985, as amended. As a result, the proposed program support levels 
announced in this rule may be recalculated to comply with this Act.
    Accordingly, comments are requested with respect to the support 
price calculation methods for wool on unshorn lambs and mohair. The 
final determination will be set forth at 7 CFR part 1468. 
List of Subjects in 7 CFR Part 1468 
    Assistance grant programs--agriculture, Livestock, Mohair, 
Reporting and recordkeeping requirements, Wool.
    Accordingly, it is proposed that 7 CFR part 1468 be amended as 
follows: 
PART 1468--WOOL AND MOHAIR 
    1. The authority citation for 7 CFR part 1468 continues to read as 
follows:

    Authority: 7 U.S.C. 1781-1787; 15 U.S.C. 714b and 714c.

    2. Section 1468.4 is amended by adding paragraphs (b)(1)(ii)(E), 
(b)(2)(v), and (b)(3)(v) to read as follows: 
Sec. 1468.4  Eligibility for payments.

* * * * *
    (b) (1) * * *
    (ii) * * *
    (E) 1995--$2.12 per pound.
    (b) (2) * * *
    (v) 1995--an amount equal to 80 percent of the difference between 
the national average price received by producers for shorn wool for the 
1995 marketing year and the 1995 shorn wool support price, multiplied 
by 5.
    (b) (3) * * *
    (v) 1995--an amount within a range of 15 per centum above or below 
the comparable percentage of parity at which shorn wool is supported, 
as determined and announced by CCC.
* * * * *
    Signed at Washington, DC, on September 8, 1994. 
Bruce R. Weber, 
Acting Executive Vice President, Commodity Credit Corporation. 
[FR Doc. 94-22920 Filed 9-15-94; 8:45 am] 
BILLING CODE 3410-05-P