[Federal Register Volume 59, Number 184 (Friday, September 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23610]


[[Page Unknown]]

[Federal Register: September 23, 1994]


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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation

7 CFR Part 1468

RIN 0560-AD19

 

Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair 
for the 1994 Marketing Year

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final 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. The Wool Act further 
provides that, in the case of the 1994 and 1995 marketing years, the 
payments shall be 75 percent and 50 percent, respectively, of the 
amount otherwise determined in accordance with section 704(a) of the 
Wool Act. On May 2, 1994, the Commodity Credit Corporation (CCC) issued 
a proposed rule (59 FR 22546) with respect to the support prices for 
shorn wool, wool on unshorn lambs, and mohair for the 1994 marketing 
year. The support level for wool on unshorn lambs has been determined 
by multiplying 80 percent of the difference between the 1994 support 
price for shorn wool and the 1994 national average market price for 
shorn wool by 5 (the quantity of wool on an average 100-pound unshorn 
lamb). The mohair support level has been determined to be $4.739, which 
is equal to 85 percent of the comparable percentage of parity at which 
shorn wool is supported for the 1994 marketing year. Payments to 
producers for the 1994 and 1995 marketing years shall be 75 and 50 
percent, respectively, of the amount otherwise determined in accordance 
with section 704(a). These actions are required by sections 703 and 704 
of the National Wool Act of 1954, as amended (Wool Act).

EFFECTIVE DATE: September 23, 1994.

FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Fibers and Rice 
Analysis Division, Agricultural Stabilization and Conservation Service, 
United States Department of Agriculture (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 final 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 final rule has been reviewed in accordance with Executive 
Order 12778. The provisions of this final 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 final 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.

Final Regulatory Impact Analysis

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

Comments

    A total of forty-four comments were received during the 30-day 
public comment period that ended June 1, 1994. Respondents included 27 
producers, 5 warehouses, 4 producer organizations, 2 State legislators, 
2 banks, 2 ASCS offices (1 State and 1 county), and 2 others.
    Mohair. Thirty-one respondents specifically addressed the mohair 
support level. Eleven recommended that mohair be supported at the 
maximum allowed by law--115 percent of the wool parity percentage or 
$6.411 per pound. Nineteen recommended that mohair be supported at the 
100-percent level or $5.575 per pound, and one respondent recommended 
either the 100 or 115 percent level. The reasons cited for these 
recommendations were that such levels would:
    (a) Help offset the reduction in the support level due to the 
legislative requirement that 1994 payments be reduced by 25 percent;
    (b) Lessen the negative impact of the Wool Act phase-out on those 
rural economies which are based on sheep/goats with few available 
employment or land use alternatives;
    (c) Be appropriate due to low mohair prices, drought requiring 
increased use of supplemental feed, the high cost of supplies, leases, 
feed, and overhead, and predator problems; and
    (d) Give producers a fair return.
    Wool on Unshorn Lambs. One respondent commented that the pulled 
wool (unshorn lamb) support rate should remain at the current level. 
Another indicated that unshorn lamb payments should be eliminated. One 
respondent commented on a technical point relating to the unshorn lamb 
payment rate.
    Other. Additional comments were submitted on issues for which 
public input was not solicited. Ten respondents commented generally on 
the Wool Act phase-out, either opposing it or requesting that the 
decision to eliminate the programs be reviewed and reconsidered. One 
respondent commented that the shorn wool support rate was too high.
    After considering these comments, the following determinations have 
been made with respect to the support prices for wool on unshorn lambs 
and mohair for the 1994 marketing year. Shorn wool, wool on unshorn 
lamb and mohair payments for the 1994 marketing year shall be 75 
percent of the amount otherwise determined in accordance with section 
704(a) of the Wool Act.
    Support Price--Wool on Unshorn Lambs. In accordance with section 
703 of the Wool Act, the support price for wool on unshorn lambs shall 
be determined by multiplying 80 percent of the difference between the 
1994 support price for shorn wool and the 1994 national average market 
price for shorn wool by 5 pounds (the quantity of wool on an average 
100-pound unshorn lamb). Experience has shown that this formula 
provides a payment rate comparable to the shorn wool support price and 
that it helps maintain normal marketing practices.
    Support Price--Mohair. In accordance with section 703 of the Wool 
Act, the support price for mohair for the 1994 marketing year shall be 
$4.739, which is equal to 85 percent of the comparable percentage of 
parity at which shorn wool is supported for the 1994 marketing year. 
This level of support is consistent with the intent of recent 
legislation to phase out support for wool and mohair.

Statutory Basis 
    This final rule amends 7 CFR part 1468 to set forth determinations 
with respect to the support prices for shorn wool, wool on unshorn 
lambs, and mohair for the 1994 marketing year. A general description of 
the statutory basis for such determinations in this final rule was set 
forth at 59 FR 22546 (May 2, 1994).
    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 support levels announced in this 
rule may be recalculated to comply with this Act. 
List of Subjects in 7 CFR Part 1468

    Assistance grant programs--agriculture, Livestock, Mohair, 
Reporting and recordkeeping requirements, Wool.
    Accordingly, 7 CFR part 1468 is 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:
    A. Revising paragraph (b)(2)(iii), and
    B. Adding paragraphs (b)(1)(ii)(D), (b)(2)(iv), and (b)(3)(iv) to 
read as follows: 
Sec. 1468.4  Eligibility for payments.

* * * * *
    (b)(1) * * *
    (ii) * * *
    (D) 1994--$2.09 per pound.
    (b)(2) * * *
    (iii) 1993--$6.12 per hundredweight.
    (iv) 1994--an amount equal to 80 percent of the difference between 
the national average price received by producers for shorn wool for the 
1994 marketing year and the 1994 shorn wool support price, multiplied 
by 5.
    (b)(3) * * *
    (iv) 1994--$4.739 per pound.
* * * * *
    3. Section 1468.8 is amended by revising paragraphs (a)(1) and (b) 
to read as follows:


Sec. 1468.8  Computation of payment.

    (a)(1) The amount of the shorn wool or shorn mohair support payment 
shall be computed by applying the rate of payment to the net sales 
proceeds for the wool or mohair marketed during the specified marketing 
year, less the assessment due as specified in Sec. 1468.15. In the case 
of the 1994 and 1995 marketing years, the payments shall be 75 percent 
and 50 percent, respectively, of the amount otherwise determined in 
accordance with this part. For shorn wool payments, if there is a 
purchase by the producer of unshorn lambs, the resultant amount shall 
be reduced by an amount resulting from multiplying the liveweight of 
such lambs reported in the application for payment by the calculated 
wool on shorn lambs support for such marketing year. If the amount of 
the reduction exceeds the payment computed on the shorn wool marketed, 
the liveweight of lambs which corresponds to the excess amount shall be 
carried forward and used to reduce payments on unshorn lambs marketed 
or slaughtered or shorn wool marketed in the current or subsequent 
years.
* * * * *
    (b) The amount of the wool support payment due to a producer for 
wool on unshorn lambs shall be computed by applying the rate of payment 
to the liveweight of the lambs sold or moved to slaughter during the 
specified marketing year, reduced, on account of the purchase or 
importation by the producer of unshorn lambs, by the liveweight of such 
lambs reported in the application for payments, less the assessment due 
as specified in Sec. 1468.15. In the case of the 1994 and 1995 
marketing years, the payments shall be 75 percent and 50 percent, 
respectively, of the amount otherwise determined in accordance with 
this part. If the amount of the reduction exceeds the liveweight of the 
unshorn lambs sold or moved to slaughter during said marketing year, 
such excess liveweight shall be carried forward and used to reduce 
payments on the wool on unshorn lambs marketed or slaughtered or shorn 
wool marketed in the current or subsequent years.
* * * * *
    Signed at Washington, DC, on September 19, 1994.
Bruce R. Weber,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-23610 Filed 9-22-94; 8:45 am]
BILLING CODE 3410-05-P