[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