[Federal Register Volume 70, Number 202 (Thursday, October 20, 2005)]
[Notices]
[Pages 61113-61115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20960]


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 Notices
                                                 Federal Register
 ________________________________________________________________________
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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
 and investigations, committee meetings, agency decisions and rulings, 
 delegations of authority, filing of petitions and applications and agency 
 statements of organization and functions are examples of documents 
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  Federal Register / Vol. 70, No. 202 / Thursday, October 20, 2005 / 
Notices  

[[Page 61113]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Domestic Sugar Program--2004-Crop Cane Sugar and Sugar Beet 
Marketing Allotments and Company Allocations

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: The Commodity Credit Corporation (CCC) is issuing this notice 
which sets forth the establishment and adjustments to the sugar overall 
allotment quantity for the 2004 crop year (FY 2005) which runs from 
October 1, 2004, through September 30, 2005. Although CCC already 
announced all of the information in this notice, CCC is statutorily 
required to publish in the Federal Register determinations establishing 
or adjusting sugar marketing allotments. CCC set the 2004-crop overall 
allotment quantity (OAQ) of domestic sugar to 8.100 million short tons 
raw value (STRV) on July 16, 2004. On September 28, 2004, CCC allocated 
the allotments to cane-producing States and allocations to cane and 
beet sugar processors. On April 29, 2005, CCC revised State cane sugar 
allotments and cane sugar processor allocations to reflect updated FY 
2005 raw cane production forecasts. On June 30, 2005, CCC further 
revised State cane sugar allotments and cane sugar processor 
allocations to reflect updated raw cane production forecasts. On August 
19, August 30 and September 9, 2005, CCC increased the 2004-crop OAQ by 
250,000, 225,000 and 105,000 STRV, respectively, to release blocked 
refined beet sugar stocks into the tight summer market. Because the 
cane sector was unable to fulfill its share of the allotment increases 
on each occasion, the cane shortfall was reassigned first to the CCC 
inventory and then to imports, as required by the Agricultural 
Adjustment Act of 1938.

ADDRESSES: Barbara Fecso, Dairy and Sweeteners Analysis Group, Economic 
Policy and Analysis Staff, Farm Service Agency, USDA, 1400 Independence 
Avenue, SW., STOP 0516, Washington, DC 20250-0516; telephone (202) 720-
4146; FAX (202) 690-1480; e-mail: [email protected].

FOR FURTHER INFORMATION CONTACT: Barbara Fecso at (202) 720-4146.

SUPPLEMENTARY INFORMATION: Section 359b(b)(1) of the Agricultural 
Adjustment Act of 1938, as amended, (7 U.S.C. 1359bb(a)(1) requires the 
Secretary to establish, by the beginning of each crop year, an 
appropriate allotment for the marketing by processors of sugar 
processed from sugar beets and from domestically produced cane sugar at 
a level the Secretary estimates will result in no forfeitures of sugar 
to the CCC under the loan program.
    Because Puerto Rico forecast zero production for the 2004 crop, its 
FY 2005 allotment was reassigned to all other cane processors based on 
their respective shares of the cane sugar allotment. However, Hawaii 
did not receive a share of Puerto Rico's reassignment because it was 
not expected to use all of its own allotment.
    When CCC announced an 8.100 million ton OAQ in July 2004, it noted 
the existence of sugar market uncertainties and that the OAQ could be 
adjusted as warranted. In April and June, based on updated production, 
imports, marketing and stocks forecasts in the World Agriculture Supply 
and Demand Estimates April and June reports (WASDE), CCC merely 
transferred perceived excess state allotments from Louisiana and Hawaii 
to Florida and Texas. However, as the severe shortage of sugar became 
more evident with each summer WASDE report, CCC incrementally released 
more sugar into the domestic market via OAQ and import increases.
    On August 12, 2005, when anomalies in the market indicated a much 
tighter supply than earlier anticipated, CCC increased the FY 2005 OAQ 
by 250,000 STRV. On August 19, 2005, the OAQ increase was allotted to 
cane states and allocated to cane and beet processors and the cane 
sugar sector supply shortfall was estimated at 141,567 STRV. Of this, 
17,120 STRV was reassigned to the CCC inventory (FY 2004 forfeited 
sugar sold in FY 2005), 40,000 STRV to NAFTA tier 2 imports, and 84,447 
STRV to the FY 2005 raw Tariff Rate Quota (TRQ).
    Because the domestic sugar shortage continued to persist due to 
Hurricane Katrina, CCC increased the FY 2005 OAQ another 225,000 tons 
on August 30, 2005. Since the CCC inventory had been sold, the cane 
sector shortfall of 102,713 tons was reassigned to imports; another 
70,000 tons to tier 2 imports, 22,000 tons for early release of the FY 
2006 refined sugar minimum TRQ, and 10,713 tons for later reassignment 
to the FY 2006 refined TRQ.
    Still, as threats continued from domestic sugar users of factory 
closings due to refined sugar shortages, CCC increased the FY 2005 OAQ 
another 105,000 tons on September 9 to release all deliverable refined 
beet sugar stocks into the market. At the same time, CCC increased, for 
early entry, the FY 2006 refined TRQ another 75,000 tons, of which 
47,933 tons counted against the cane sector's FY 2005 production 
shortfall.
    Whenever marketing allotments are in effect and the quantity of 
sugarcane estimated to be produced in Louisiana, plus a reasonable 
carryover, exceeds the marketing allotment allocation for Louisiana, 
CCC is required to limit the amount of sugarcane acreage that may be 
harvested in Louisiana for sugar or seed. This limitation is referred 
to as a ``proportionate share'' and is applied to each farm's sugarcane 
acreage base to determine the quantity of sugarcane that may be 
harvested on that farm. Because production was expected to be excessive 
in Louisiana, CCC determined that the proportionate share of a 
sugarcane acreage base that could be harvested in Louisiana for sugar 
or seed for the 2004 crop year to be 83.4 percent of each farm's 
sugarcane acreage base. However, when CCC increased the OAQ on August 
12, 2005, CCC determined that Louisiana and the whole cane sector could 
not fill its FY 2004 crops and Louisiana's proportionate shares were 
suspended for the 2004 crop.
    These actions apply to all domestic sugar marketed for human 
consumption in the United States from October l, 2004, through 
September 30, 2005. The established 2004-crop beet and cane sugar 
marketing allotments are listed in the following table, along with the 
adjustments that have occurred since:

    Signed in Washington, DC on October 6, 2005.
Michael W. Yost,
Executive Vice President, Commodity Credit Corporation.

[[Page 61114]]

[GRAPHIC] [TIFF OMITTED] TN20OC05.007


[[Page 61115]]


[FR Doc. 05-20960 Filed 10-19-05; 8:45 am]
BILLING CODE 3410-05-P