[Federal Register Volume 62, Number 63 (Wednesday, April 2, 1997)]
[Proposed Rules]
[Pages 15622-15624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8413]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / 
Proposed Rules  

[[Page 15622]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1435

RIN 0560-AE94


Sugar Loan Program Crop Year Definition and Loan Availability 
Period

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would redefine the crop year for the sugar 
loan program from the current period, July 1 through June 30, to the 
Federal fiscal year, October 1 through September 30. The proposed rule 
also would extend the loan availability period to the whole fiscal year 
instead of ending the availability period on June 30. The restriction 
that the Commodity Credit Corporation (CCC) could only make loans in 
July, August, and September on sugar processed from sugarcane or sugar 
beets that are normally harvested in those months would be removed. The 
proposed rule would also eliminate obsolete provisions governing the 
1995 crop year price support program and producer protections and 
revise the information collection requirements to reflect the 
simplified monthly data-reporting forms and the transfer of reporting 
items to new annual reporting forms.

DATES: Comments on this rule must be received on or before June 2, 1997 
to be assured of consideration.

FOR FURTHER INFORMATION CONTACT: Daniel Colacicco, Farm Service Agency, 
United States Department of Agriculture (USDA) STOP 0516, 1400 
Independence Avenue, SW, Washington, DC 20250-0516, telephone 202-690-
0734.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be not significant and therefore 
was not reviewed by OMB under Executive Order 12866.

Federal Assistance Program

    The title and number of the Federal assistance program, as found in 
the Catalogue of Federal Domestic Assistance, to which this proposed 
rule applies are Commodity Loans and Purchases--10.051.

Regulatory Flexibility Act

    It has been determined that the Regulatory Flexibility Act is not 
applicable because 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 this rule.

Environmental Evaluation

    An Environmental Evaluation with respect to the proposed rule has 
been completed. It has been determined that this action will not have 
significant adverse effects on environmental factors such as wildlife 
habitat, water quality, air quality, land use, and appearance. 
Therefore, neither an Environmental Assessment nor an Environmental 
Impact Statement is needed.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115 (June 24, 1983).

Paperwork Reduction Act

    Title: 7 CFR Part 1435, Sugar Program.
    OMB Number: 0560-0138.
    Date of Approval Expiration: July 31, 1998.
    Type of Request: Revision of previously approved information 
collection.
    Abstract: The Federal Agriculture Improvement and Reform Act of 
1996 (1996 Act) requires the Department of Agriculture to collect and 
publish, on a monthly basis, information as the Secretary may require 
to administer sugar programs, including sales of sugarcane, sugar 
beets, and sugar, and production, importation, distribution, and stock 
levels of sugar. The Farm Service Agency uses these data to estimate 
supply and use for the monthly World Agricultural Supply and Demand 
Estimates report; establish regional sugar loan rates; estimate the 
impact of alternative sugar policy options on the sugar market; and 
publish the monthly Sweetener Market Data report.
    Estimate of Respondent Burden: Public reporting burden for the 
revised collection of information is estimated to average 56 minutes 
per response.
    Respondents: Domestic sugarcane processors, sugar beet processors, 
and cane sugar refiners.
    Estimated Number of Respondents: 49.
    Estimated Number of Responses per Respondent: 19 responses per 
year.
    Estimated Total Annual Burden Hours on Respondents: 864 hours.
    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (c) ways to enhance the quality, 
utility, and clarity of the information from those who are to respond, 
including the use of appropriate automated, electronic, mechanical, or 
other technological collection techniques or other forms of information 
technology. Comments may be sent to the Desk Officer for Agriculture, 
Office of Information and Regulatory Affairs, OMB, Washington, D.C. 
20503, and to Dan Colacicco, Economic and Policy Analysis Staff, FSA, 
USDA, STOP 0516, 1400 Independence Avenue, SW, Washington, DC 20250-
0516, (202)690-0734.
    Copies of the information collection package may be obtained from 
Fran Hentz, Economic Policy Analysis Staff, FSA, USDA, STOP 0516, 1400 
Independence Avenue, SW, Washington, DC 20250-0516, (202)720-7794.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to OMB is best assured of having its full effect 
if OMB receives it within 30 days of publication. This does not affect 
the deadline for the public to comment to the Department of Agriculture 
on the proposed regulation.
    All responses to this notice will be summarized and included in the 
request

[[Page 15623]]

for OMB approval. All comments will also become a matter of public 
record.

Executive Order 12998

    This proposed rule has been reviewed in accordance with Executive 
Order 12998. The provisions of this proposed rule preempt State laws to 
the extent such laws are inconsistent with the provisions of this 
proposed rule; are not retroactive; and are not subject to 
administrative appeal remedies.

Background

    Paragraph 1435.1(a), which governs the price support loan program 
and producer protections for the 1995 crop year, is eliminated. The 
1995 crop year ended on June 30, 1996, and all 1995 crop year loans 
were repaid to CCC before October 1, 1996.

Sugar Crop Year Definition

    The current CCC regulations at Sec. 1435.2 define the sugar crop 
year as ``the period from July 1 through June 30, inclusive''. The 
current July-June crop year is a carry-over from the implementation of 
the Agriculture and Food Act of 1981, which mandated a purchase program 
and a subsequent price support loan program.
    Redefining the crop year to the period October 1 through September 
30 would: (1) be consistent with the fiscal year, thus providing a 
better fit for the analysis and administration of the sugar program, 
(2) reduce the reporting burden placed on the industry, and (3) better 
reflect the beginning of the harvest, which is the basis for other 
commodities' crop years.
    USDA already uses the fiscal year for the sugar World Agricultural 
Supply and Demand Estimates and baseline budget estimates. The tariff-
rate import quota (TRQ) and marketing assessment rates are specified in 
terms of fiscal years, and the final loan maturity date is September 
30, the end of the fiscal year.
    Changing the crop year definition is expected to reduce the 
industry's reporting burden and costs because they will no longer have 
to provide separate crop year and fiscal year data to USDA.
    The 1996 Act authorizes a sugar program through the 2002 crop year. 
Under the current crop year definition, the program would apply only to 
sugar processed through June 30, 2003. Changing the crop year 
definition to the fiscal year that ends on September 30 cannot change 
the end of loan program authority. Thus, the revised rule would 
reaffirm that the loan program expires on June 30, 2003.

Loan Availability Period and Supplemental Loans

    Under current regulations, the loan availability period ends June 
30, which is consistent with the end of the current July-June crop year 
and similar to the other commodities in terms of the number of months 
loans are available after the beginning of harvest. However, loans are 
made available during the July-September period on sugar from sugar 
beets and sugarcane ``normally harvested'' during the July-September 
period. Sugar pledged as collateral for a loan during this period may 
be repledged as collateral for a supplemental loan during the following 
fiscal year for up to 9 months minus the number of months the initial 
loan was in effect.
    The Agricultural Act of 1949 (1949 Act), as amended by the Food, 
Agriculture, Conservation, Trade Act of 1990, specified that the 
Secretary shall make available to eligible processors price support 
loans with respect to sugar processed from sugar beets and sugarcane 
harvested in the last 3 months of a fiscal year, with supplemental 
loans available the following fiscal year for up to 9 months minus the 
length of the initial loan. However, the 1996 Act, which supersedes the 
1949 Act, provides only that in the case of a loan made during the last 
3 months of a fiscal year, the collateral may be repledged for a 
supplemental loan during the following fiscal year for up to 9 months 
minus the length of the initial loan. Thus, the 1996 Act eliminates the 
restriction that only sugar from sugar beets or sugarcane harvested in 
the July-September period is eligible for a loan during that period.
    Extending the loan availability period through the entire fiscal 
year and providing supplemental loans to all sugar originally pledged 
for loans during the July-September period would: (1) Simplify program 
regulations and administration (e.g., by eliminating continuous harvest 
loan applications), (2) increase industry flexibility by providing 
loans year-round, thus increasing its ability to store sugar in 
anticipation of better prices, (3) be more consistent with other sugar 
program provisions, and (4) recognize the impact of desugarization 
technology.
    All loans would be made at the loan rates in effect at the time the 
loans are made. Sugar repledged for loans during the July-September 
period would continue to be ineligible for supplemental loans.

List of Subjects in 7 CFR Part 1435

    Loan programs--agriculture, Price-support programs, Reporting and 
record keeping requirements, Sugar.

    Accordingly, 7 CFR part 1435 is proposed to be amended as follows:

PART 1435--SUGAR

    1. The authority citation for 7 CFR part 1435 continues to read as 
follows:

    Authority: 7 U.S.C. 7272 and 15 U.S.C. 714b and 714c.

    2. Section 1435.1 is amended by removing paragraph (a) and removing 
the designation for paragraph (b).
    3. In Sec. 1435.2, the definition for Crop Year is revised to read 
as follows:


Sec. 1435.2  Definitions.

* * * * *
    Crop year for the 1996 crop means the period from July 1, 1996 
through September 30, 1997. Crop year for the 1997-2001 crops means the 
period from October 1 through September 30, inclusive, and is 
identified by the year in which the crop year begins. For example, the 
1997 crop year begins on October 1, 1997. The 1997 crop of sugar beets, 
sugarcane, or sugar means domestically-produced sugar beets, 
domestically-produced sugarcane, or sugar processed from domestically-
produced sugar beets or sugarcane during the 1997 crop year. Crop year 
for the 2002 crop means the period from October 1, 2002 through June 
30, 2003. Sugar from desugaring molasses is considered to be from the 
crop year the desugaring took place.
* * * * *
    4. In Sec. 1435.105 paragraphs (a)(1) and (g) are revised to read 
as follows:


Sec. 1435.105  Availability, disbursement, and maturity of loans.

    (a) * * *
    (1) File a loan request, as CCC prescribes, no earlier than July 1 
and no later than September 30 for the 1996 crop year, no earlier than 
October 1 and no later than September 30 for the 1997-2001 crop years, 
and no earlier than October 1 and no later than June 30 for the 2002 
crop year, with the State committee of the State where such processor 
is headquartered, or with a county committee designated by the State 
committee;
* * * * *
    (g)(1) Notwithstanding any other provision of this subpart, 
processors receiving loans in July, August, or September:
    (i) Must settle the loan by September 30 following disbursement; 
and
    (ii) May repledge the sugar as collateral for a supplemental loan.

[[Page 15624]]

    (2) Such supplemental loan shall:
    (i) Be requested by the processor during the following October;
    (ii) Be recourse or nonrecourse depending on which type of loan is 
in effect according to Sec. 1435.102;
    (iii) Be made at the loan rate in effect at the time the 
supplemental loan is made; and
    (iv) Mature in 9 months minus the number of whole months that the 
initial loan was in effect.
    (3) No loans will be made after June 30, 2003.

    Signed in Washington, DC, on March 26, 1997.
Bruce R. Weber,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. 97-8413 Filed 4-1-97; 8:45 am]
BILLING CODE 3410-05-P