[Federal Register Volume 71, Number 218 (Monday, November 13, 2006)]
[Notices]
[Pages 66157-66160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19077]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Domestic Sugar Program--Final 2005-Crop and Initial 2006-Crop 
Cane Sugar and Sugar Beet Marketing Allotments and Company Allocations

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice.

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SUMMARY: This notice sets forth the final 2005-crop and initial 2006-
crop cane state allotments and company allocations to sugarcane and 
sugar beet processors. The 2005-crop year runs from October 1, 2005, 
through September 30, 2006 (fiscal year (FY) 2006). The 2006-crop (FY 
2007) cane state allotments and company allocations are based on an 
8.750 million short tons, raw value (STRV) overall allotment quantity 
(OAQ) of domestic sugar. These actions apply to all domestic sugar 
marketed for human consumption in the United States from October 1, 
2006, through September 30, 2007. Although CCC already has announced 
all of the information in this notice, CCC is statutorily required to 
publish in the Federal Register determinations establishing, adjusting, 
or suspending sugar marketing allotments.

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:

Final FY 2006 State Allotments and Company Allocations

    Section 359e(b) of the Agricultural Adjustment Act of 1938, as 
amended, (7 U.S.C. 1359ee(b) requires the Secretary to reassign 
allocation to imports if it is determined that processors will be 
unable to market their allocations and there is no CCC inventory. In a 
July 27, 2006 news release, CCC announced that the agency had 
determined that the domestic sugar supply would be unable to fill 
246,000 STRV of the OAQ and, in accordance with the statute, reassigned 
this deficit to imports. Hence, state allotments and company 
allocations were adjusted downward to reflect each company's and each 
state's ability to market its allocation and allotment.
    The final 2005-crop (FY 2006) beet and cane sugar marketing 
allotments

[[Page 66158]]

and allocations are listed in the following table:

                              FY 2006 Overall Beet/Cane Allotments and Allocations
----------------------------------------------------------------------------------------------------------------
                                                                      FY 2006
                                                                    Allotments/    Change due to   Final FY 2006
                          Distribution                            allocations as   reassignments    allotments/
                                                                    of 3/22/06                      allocations
----------------------------------------------------------------------------------------------------------------
Beet Sugar......................................................       4,839,725         -63,345       4,776,380
Cane Sugar......................................................       3,164,275        -182,655       2,981,620
WTO Raw Sugar Tariff Rate Quota (TRQ) \1\.......................         670,000          75,000         745,000
Mexico TRQ Raw or Refined.......................................         276,000               0         276,000
Refined TRQ (global first-come, first-served)...................         400,000         109,921         509,921
FY 2006 Non Program Imports.....................................               0          61,079          61,079
                                                                 -----------------------------------------------
    Total OAQ...................................................       9,350,000               0       9,350,000
Beet Processors' Marketing Allocations:
    Amalgamated Sugar Co........................................       1,158,015         -79,225       1,078,790
    American Crystal Sugar Co...................................       1,731,118           6,000       1,737,118
    Michigan Sugar Co...........................................         467,030           3,984         471,014
    Minn-Dak Farmers Co-op......................................         279,237           4,085         283,322
    So. Minn Beet Sugar Co-op...................................         677,756           2,486         680,242
    Western Sugar Co............................................         473,047             462         473,509
    Wyoming Sugar Co............................................          53,521          -1,136          52,385
                                                                 -----------------------------------------------
        Total Beet Sugar........................................       4,839,725         -63,345       4,776,380
State Cane Sugar Allotments:
    Florida.....................................................       1,445,792         -78,164       1,367,628
    Louisiana...................................................       1,273,054         -76,279       1,196,775
    Texas.......................................................         180,425          -4,095         176,330
    Hawaii......................................................         265,003         -24,116         240,887
    Puerto Rico.................................................               0               0               0
                                                                 -----------------------------------------------
        Total Cane Sugar........................................       3,164,275        -182,655       2,981,620
Cane Processors' Marketing Allocations:
Florida
    Florida Crystals............................................         507,121         -11,388         495,733
    Growers Co-op. of FL........................................         265,129          -3,913         261,216
    U.S. Sugar Corp.............................................         673,542         -62,863         610,679
----------------------------------------------------------------------------------------------------------------
        Total...................................................       1,445,792         -78,164       1,367,628
Louisiana
    Alma Plantation.............................................         131,302          -3,141         128,161
    Cajun Sugar Co-op...........................................         124,626         -10,892         113,734
    Cora-Texas Mfg. Co..........................................         153,001         -13,707         139,294
    Lafourche Sugars Corp.......................................          73,075          -1,527          71,548
    Louisiana Sugarcane Co-op...................................          94,036          -4,036          90,000
    Lula Westfield, LLC.........................................         168,219          -5,177         163,043
    M.A. Patout & Sons..........................................         345,197         -31,152         314,044
    St. Mary Sugar Co-op........................................         106,250          -2,100         104,150
    So. Louisiana Sugars Co-op..................................          77,347          -4,546          72,801
                                                                 -----------------------------------------------
        Total...................................................       1,273,054         -76,279       1,196,775
Texas
    Rio Grande Valley...........................................         180,425          -4,095         176,330
Hawaii
    Gay & Robinson, Inc.........................................          54,638              -2          54,636
    Hawaiian Commercial & Sugar Company.........................         210,366         -24,115         186,251
                                                                 -----------------------------------------------
        Total...................................................         265,003         -24,116         240,887
----------------------------------------------------------------------------------------------------------------
\1\ 7/27/06 is for early entry FY07 raw sugar TRQ.

Initial FY 2007 State Allotments and Company Allocations

    Section 359b(b)(1) of the Agricultural Adjustment Act of 1938, as 
amended, (7 U.S.C. 1359bb(b)(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 CCC under the loan program. 
When CCC announced the 8.750 million ton OAQ for FY 2007 in July 2006, 
it distributed 54.35 percent of the FY 2007 OAQ (4,755,625 STRV) to the 
beet sugar allotment. At that time, however, CCC determined that the 
cane sector would be unable to fill 375,000 STRV of its allotment and, 
hence, withheld this amount for reassignment to imports. Consequently, 
of the 45.65 percent of the OAQ statutorily allotted to the cane sector 
(3,994,375 STRV), only 3,619,375 STRV was allotted to cane states for 
allocation to sugarcane

[[Page 66159]]

processors. Cane state allotments and processor allocations were 
announced by CCC on September 28, 2006.
    To establish beet processor allocations, CCC applies the beet 
sector's allotment to fixed company allocation shares. Likewise, cane 
state and cane processor allocations are calculated by applying fixed 
shares to the cane sugar allotment. Allocation amounts will change only 
if CCC determines that a processor cannot fill its sugar allocation for 
the year and reassigns the unused allocation to other processors or if 
a sugarcane grower successfully transfers allocation commensurate with 
his production history to another processor. On September 28, 2006, CCC 
transferred a portion of Alma Plantation L.L.C.'s allocation to Cora 
Texas Manufacturing Company based on growers' petitions to transfer 
allocation when Alma closed its Cinclare factory.
    CCC is required to limit the amount of sugarcane acreage that may 
be harvested in Louisiana for sugar or seed 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. 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 is expected to be 
inadequate to fill Louisiana's FY 2007 allotment, CCC has determined 
that there will be no proportionate share restrictions for the 2006 
crop year.
    In FY 2004, CCC determined that Puerto Rico's processors 
permanently terminated operations because no sugar had been processed 
for two complete years. Consequently, the allocation of 6,356 STRV was 
permanently reassigned to the mainland cane-producing states. Hawaii 
received none of Puerto Rico's reassignment because it is not expected 
to use all of its current cane sugar allotment. A request for an 
allocation as a new entrant would be required for any mills in Puerto 
Rico to market cane sugar in the future.
    The established 2006-crop (FY 2007) beet and cane sugar marketing 
allotments are listed in the following table:

                              FY 2007 Overall Beet/Cane Allotments And Allocations
----------------------------------------------------------------------------------------------------------------
                                                                                                     Adjusted
                                                                    Initial FY                      initial FY
                          Distribution                                 2007       Changes due to       2007
                                                                    allotments/    reassignments    allotments/
                                                                    allocations                     allocations
----------------------------------------------------------------------------------------------------------------
Beet Sugar......................................................       4,755,625               0       4,755,625
Cane Sugar......................................................       3,994,375        -375,000       3,619,375
Reassignment to Imports.........................................               0         375,000         375,000
                                                                 -----------------------------------------------
    Total OAQ...................................................       8,750,000               0       8,750,000
Beet Processors' Marketing Allocations:
    Amalgamated Sugar Co........................................         990,810               0         990,810
    American Crystal Sugar Co...................................       1,828,960               0       1,828,960
    Michigan Sugar Co...........................................         477,920               0         477,920
    Minn-Dak Farmers Co-op......................................         296,690               0         296,690
    So. Minn Beet Sugar Co-op...................................         624,582               0         624,582
    Western Sugar Co............................................         473,221               0         473,221
    Wyoming Sugar Co............................................          63,441               0          63,441
                                                                 -----------------------------------------------
        Total Beet Sugar........................................       4,755,625               0       4,755,625
State Cane Sugar Allotments:
    Florida.....................................................       1,975,622        -213,359       1,762,263
    Louisiana...................................................       1,528,365        -143,141       1,385,224
    Texas.......................................................         171,744          28,680         200,424
    Hawaii......................................................         318,644         -47,179         271,465
                                                                 -----------------------------------------------
        Total Cane Sugar........................................       3,994,375        -375,000       3,619,375
Cane Processors' Marketing Allocations:
Florida
    Florida Crystals............................................         813,415        -128,606         684,809
    Growers Co-op. of FL........................................         355,385         -45,052         310,334
    U.S. Sugar Corp.............................................         806,821         -39,701         767,120
                                                                 -----------------------------------------------
        Total...................................................       1,975,622        -213,359       1,762,263
Louisiana
    Alma Plantation.............................................         127,988          -7,199         120,789
    Cajun Sugar Co-op...........................................         154,543         -28,052         126,491
    Cora-Texas Mfg. Co..........................................         159,455          14,258         173,712
    Lafourche Sugars Corp.......................................          83,245             115          83,359
    Louisiana Sugarcane Co-op...................................         117,521         -13,867         103,654
    Lula Westfield, LLC.........................................         180,483          10,756         191,239
    M.A. Patout & Sons..........................................         429,373         -15,647         413,726
    St. Mary Sugar Co-op........................................         155,667         -43,313         112,354
    So. Louisiana Sugars Co-op..................................         120,091         -60,191          59,900
                                                                 -----------------------------------------------
        Total...................................................       1,528,365        -143,141       1,385,224
Texas
    Rio Grande Valley...........................................         171,744          28,680         200,424
Hawaii
    Gay & Robinson, Inc.........................................          73,145         -25,618          47,527
    Hawaiian Commercial & Sugar Company.........................         245,499         -21,561         223,938
                                                                 -----------------------------------------------

[[Page 66160]]

 
        Total...................................................         318,644         -47,179         271,465
----------------------------------------------------------------------------------------------------------------


    Signed in Washington, DC, on November 2, 2006.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
 [FR Doc. E6-19077 Filed 11-9-06; 8:45 am]
BILLING CODE 3410-05-P