[Federal Register Volume 59, Number 186 (Tuesday, September 27, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23796]


[[Page Unknown]]

[Federal Register: September 27, 1994]


  
  
  
                                                   VOL. 59, NO. 186

                                        Tuesday, September 27, 1994

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1413

RIN 0560-AD39

 

1995 Upland Cotton Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Act of 1949 (1949 Act), as amended, requires 
the Secretary of Agriculture to implement an Acreage Reduction Program 
(ARP) for the 1995 crop of upland cotton which will result in a ratio 
of carry-over to total disappearance of 29.5 percent. This proposed 
rule would amend the regulations to set forth the acreage reduction 
percentage for the 1995 crop of upland cotton.

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, Agricultural Stabilization and Conservation Service 
(ASCS), U.S. Department of Agriculture (USDA), room 3754-S, P.O. Box 
2415, Washington, DC 20013-2415.

FOR FURTHER INFORMATION CONTACT: Wayne E. Bjorlie, Fibers and Rice 
Analysis Division, ASCS, USDA, room 3754-S, P.O. Box 2415, Washington, 
DC 20013-2415 or call 202-720-7954.

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.

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.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable to this proposed rule since the Commodity Credit Corporation 
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: Cotton Production Stabilization--10.052.

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 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 103B of the 1949 Act, an ARP is required 
to be implemented for the 1995 crop of upland cotton if it is 
determined that the total supply of upland cotton, in the absence of an 
ARP, will be excessive, taking into account the need for an adequate 
carry-over to maintain reasonable and stable supplies and prices and to 
meet a national emergency.
    Land diversion payments also may be made to producers of upland 
cotton, whether or not an ARP for upland cotton is in effect, if needed 
to assist in adjusting the total national acreage of upland cotton to 
desirable goals. If, at the time of final announcement of the ARP, the 
projected carry-over of upland cotton for the crop year is equal to or 
greater than 8 million bales, a paid land diversion shall be offered to 
upland cotton producers. A paid land diversion has not been considered 
because, given the existing supply/use situation, it is not needed.
    If an ARP is announced, the reduction shall be achieved by applying 
a uniform percentage reduction (from 0 to 25 percent) to the upland 
cotton crop acreage base for the crop for each upland cotton-producing 
farm. In making such a determination, the number of acres placed into 
the program established under subtitle D of title XII of the Food 
Security Act of 1985, as amended, must be taken into consideration.
    A number of acres on the farm shall be devoted to conservation 
uses, in accordance with regulations issued by the Secretary. The acres 
required to be devoted to conservation uses may be reduced, at the 
request of the producer, if the producer's total estimated deficiency 
payments which would be received under the feed grain, rice, wheat, 
upland and ELS cotton programs are estimated to be reduced in order to 
comply with the payment limitations set forth in section 1001 of the 
Food Security Act of 1985. The amount of the reduction in the acres 
required to be devoted to conservation uses is proportional to the 
estimated reduction in payments, in accordance with 7 CFR 1413.53.
    Producers who knowingly produce upland cotton in excess of the 
permitted upland cotton acreage for the farm plus any upland cotton 
acreage planted in accordance with the flexibility provisions are 
ineligible for upland cotton loans and payments with respect to that 
farm.
    If it is determined that an ARP for the 1995 crop of upland cotton 
is needed, a preliminary announcement of the ARP uniform percentage 
requirement (from 0 to 25 percent) must be made not later than November 
1 of the calendar year preceding the year in which the crop is 
harvested. Not later than January 1 of the calendar year in which the 
crop is harvested, a final announcement of the ARP uniform percentage 
requirement must be made. Producers in early planting areas may elect 
to participate in the program on the terms of the ARP first announced 
for the crop, or as subsequently revised, if the Secretary determines 
that the producers may be unfairly disadvantaged by the revision. The 
ARP for the 1995 crop of upland cotton must be set at a level that will 
result in a ratio of carry-over to total disappearance of 29.5 percent, 
based on the most recent projection of carry-over and total 
disappearance at the time of announcement of the ARP. For the purposes 
of this provision, the term ``total disappearance'' means all upland 
cotton utilization, including total domestic, total export, and total 
residual disappearance.
    Based on August 1994 supply/use estimates, ending stocks for the 
1995 marketing year under a 5-percent ARP, a 10-percent ARP, and a 15-
percent ARP are 5.35 million bales, 5.10 million bales, and 4.75 
million bales, respectively. Such ARP levels would result in ratios of 
carry-over to total disappearance of 30.6, 29.7, and 28.1 percent, 
respectively. For the purposes of this proposed rule, these three ARP 
options will be considered. However, because of changes in the supply/
use situation that may develop between now and November 1, the actual 
announced preliminary ARP may be different from the options discussed 
in this rule.
    The estimated impacts of the ARP options are shown in the following 
table. 

                  Upland Cotton Supply/Demand Estimates                 
------------------------------------------------------------------------
                                            Option 1  Option 2          
                   Item                                         Option 3
------------------------------------------------------------------------
                                                       Percent          
                                                                        
                                           -----------------------------
ARP.......................................         5        10        15
Participation.............................        90        88        85
                                                                        
                                           -----------------------------
                                                      Thousand          
                                                                        
                                           -----------------------------
Planted...................................    14,150    13,650    13,050
                                                                        
                                                   Thousand bales       
                                                                        
                                           -----------------------------
Production................................    18,400    17,850    17,200
Domestic Use..............................    10,900    10,800    10,700
Exports...................................     6,600     6,400     6,200
Ending Stocks.............................     5,350     5,100     4,750
                                                                        
                                           -----------------------------
                                                       Percent          
                                                                        
                                           -----------------------------
Stocks to Use.............................      30.6      29.7      28.1
                                                                        
                                           -----------------------------
                                                   Million dollars      
                                                                        
                                           -----------------------------
Deficiency Payments.......................       833       725       612
------------------------------------------------------------------------

    Accordingly, comments are requested as to the 1995 acreage 
reduction percentage for upland cotton. The final determination of this 
percentage will be set forth at 7 CFR part 1413.

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:
    A. Revising paragraphs (a)(3)(iii) and (a)(3)(iv),
    B. Adding paragraph (a)(3)(v),
    C. Adding paragraph (d)(5) and adding and reserving paragraphs 
(d)(5)(i) and (d)(5)(ii), and
    D. Adding paragraph (d)(5)(iii) to read as follows:


Sec. 1413.54  Acreage reduction program provisions.

    (a) * * *
    (3) * * *
    (iii) 1993 upland cotton, 7.5 percent;
    (iv) 1994 upland cotton, 11.0 percent; and
    (v) 1995 upland cotton shall be within the range of 0 to 25 
percent, as determined and announced by CCC.
* * * * *
    (d) * * *
    (5) For the 1995 crop:
    (i)-(ii) [Reserved]
    (iii) Shall not be made available to producers of the 1995 crop 
upland cotton.
* * * * *
    Signed at Washington, DC, on September 20, 1994.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-23796 Filed 9-26-94; 8:45 am]
BILLING CODE 3410-05-P