[Federal Register Volume 60, Number 105 (Thursday, June 1, 1995)]
[Rules and Regulations]
[Pages 28522-28524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13383]



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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: Final rule.

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SUMMARY: The National Wool Act of 1954, as amended (Wool Act), requires 
the Secretary of Agriculture, 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 1995 marketing year, the payments shall be 50 
percent of the amount otherwise determined in accordance with section 
704(a) of the Wool Act. On September 16, 1994, CCC issued a proposed 
rule (59 FR 47564) with respect to the support prices for shorn wool, 
wool on unshorn lambs, and mohair for the 1995 marketing year. The 1995 
payment rate formula for wool on unshorn lambs has been determined to 
be 80 percent of the difference between the 1995 support price for 
shorn wool and the 1995 national average market price for shorn wool, 
multiplied by 5 (the quantity of wool on an average 100-pound unshorn 
lamb). The mohair support level has been determined to be $4.657, which 
is [[Page 28523]] equal to 85 percent of the comparable percentage of 
parity at which shorn wool is supported for the 1995 marketing year. 
Payments to producers for the 1995 marketing year shall be 50 percent 
of the amount otherwise determined in accordance with section 704(a). 
These actions are required by sections 703 and 704 of the Wool Act.

EFFECTIVE DATE: June 1, 1995.

FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Consolidated Farm 
Service Agency, United States Department of Agriculture, room 3756-S, 
PO Box 2415, Washington, DC 20013-2415 or call 202-720-8841.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be significant and was reviewed by 
the Office of Management and Budget 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.
Background

    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 1995 marketing year. Shorn wool, unshorn 
lamb, and mohair payments to producers will be reduced by 50 percent of 
the amount otherwise determined under the Wool Act as required by 
section 704(a) of the Wool Act.
    A general description of the statutory basis for such 
determinations in this final rule was set forth in the proposed rule at 
59 FR 47564 (September 16, 1994). The proposed rule requested comments 
with respect to determinations for the support prices for wool on 
unshorn lambs and mohair. Comments were not requested concerning the 
support price for shorn wool because that price is determined in 
accordance with a formula mandated by section 703(b) of the Wool Act.
    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.

Comments

    A total of 24 comments were received during the 30-day public 
comment period that ended October 17, 1994. Respondents included 18 
wool and/or mohair producers, one producer organization, one State 
legislator, one peanut producer, and three others.
    Mohair. Eight respondents addressed the mohair support level. Two 
recommended that mohair be supported at the maximum allowed by law--115 
percent of the wool parity percentage or $6.300 per pound. Five 
recommended that mohair be supported at the 100-percent level or $5.478 
per pound, and one respondent recommended either the 100 or 115 percent 
level. The reasons cited for these recommendations were that such 
support levels would:
    (a) Somewhat offset the 50-percent reduction in 1995 payments 
required by the Wool Act and, as such, help ease the transition to the 
eventual elimination of the program.
    (b) Lessen the negative impact of the Wool Act phase-out on those 
rural economies which are based on sheep and/or goats with few 
available employment or land use alternatives;
    (c) Help maintain the infrastructure of the industry by slowing the 
sale of goats which has occurred in anticipation of loss of the support 
program. The U.S. mohair industry, which contributes to a positive U.S. 
trade balance, would be jeopardized if goat numbers fell below the 
critical mass necessary to remain viable.
    These comments were considered and rejected because the level of 
price support determined under this rule is consistent with the intent 
of recent legislation to phase out support for the wool and mohair 
programs.
    Wool on Unshorn Lambs. No comments specifically addressed the level 
of support for wool on unshorn lambs. The formula selected in this 
final rule provides a payment rate comparable to the shorn wool support 
price which helps to maintain normal marketing practices.
    Other. Although comments were not solicited on this issue, 12 wool/
mohair producers and one peanut producer offered comments relating to 
the Wool Act phase-out and the need for a program after 1995. Two other 
respondents wrote in support of the Wool Act phase-out and another 
expressed displeasure that the support program was still operating. It 
should be noted that the price support programs authorized by the Wool 
Act will end when the Wool Act expires on December 31, 1995.
    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 1995 marketing year.
    Payment Rate--Wool on Unshorn Lambs. In accordance with section 703 
of the Wool Act, the payment rate for wool on unshorn lambs shall 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 quantity of wool on an average 100-
pound unshorn lamb).
    Support Price--Mohair. In accordance with section 703 of the Wool 
Act, the support price for mohair for the 1995 marketing year shall be 
$4.657, which is [[Page 28524]] equal to 85 percent of the comparable 
percentage of parity at which shorn wool is supported for the 1995 
marketing year.

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 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.
    (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.
    (3) * * *
    (v) 1995--$4.657 per pound.
* * * * *
    Signed at Washington, DC, on May 24, 1995.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 95-13383 Filed 5-31-95; 8:45 am]
BILLING CODE 3410-05-P