[Federal Register Volume 78, Number 145 (Monday, July 29, 2013)]
[Notices]
[Pages 45494-45495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18219]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Notice of Second Sugar Purchase and Exchange for Re-export 
Program Credits

AGENCY: Commodity Credit Corporation and Office of the Secretary, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commodity Credit Corporation (CCC) announces the intent to 
purchase raw cane sugar to be offered in exchange for Refined Sugar Re-
export Program credits as a follow-up to the notice of sugar purchase 
and exchange for Re-export Program credits published in the Federal 
Register on June 18, 2013 (78 FR 36508-36510). CCC will purchase the 
sugar from domestic sugarcane processors under the Cost Reduction 
Options of the Food Security Act of 1985, and concurrently exchange 
such sugar for credits under the Refined Sugar Re-export Program.

DATES: Effective date: July 29, 2013.

FOR FURTHER INFORMATION CONTACT: For current market conditions, 
eligibility, and criteria for evaluation information contact Daniel 
Colacicco; telephone (202) 690-0734. For sugar purchase and general 
exchange information contact Pamela McKenzie; telephone (202) 260-8906. 
For Refined Sugar Re-export Program information contact Ron Lord; 
telephone (202) 720-6939. Persons with disabilities who require 
alternative means for communications (Braille, large print, audio tape, 
etc.) should contact the USDA Target Center at (202) 720-2600 (voice 
and TDD).

SUPPLEMENTARY INFORMATION: Under the previous sugar purchase and 
exchange for Re-export Program credits announced in the Federal 
Register on June 18, 2013 (78 FR 36508-36510), and the inclusion of 
Certificates of Quota Eligibility (CQEs) issued pursuant to the United 
States-Colombia Trade Promotion Agreement and the United States-Panama 
Trade Promotion Agreement announced in the Federal Register on June 26, 
2013 (78 FR 38286), CCC purchased approximately 91,000 metric tons (MT) 
of sugar from the domestic market and exchanged the purchased sugar for 
300,000 MT of credits from Refined Sugar Re-export Program licenses and 
CQEs issued under the United States-Colombia Trade Promotion Agreement, 
at an aggregate

[[Page 45495]]

cost of $43.8 million. These purchase and exchange transactions are 
estimated to have saved CCC $66.9 million in Sugar Program costs by 
reducing the amount of sugar loan collateral forfeitures. However, a 
significant forfeiture threat still remains, which will be mitigated by 
this action.
    The sugar purchase will be administered similarly to the purchase 
and exchange announced on June 18, 2013. CCC will invite domestic 
sugarcane processors to offer raw cane sugar to CCC, as authorized by 
the Cost Reduction Options of the Food Security Act of 1985, as amended 
(7 U.S.C. 1308a(c)), which permits CCC to purchase sugar provided that 
the price paid is below the comparable regional or State costs of later 
acquiring the sugar through loan forfeiture under the Sugar Program. 
The purchase invitation will describe the information needed from sugar 
sellers, such as the quantity, storage location, and CCC warehouse 
code. The purchase invitation will also specify additional details, 
such as the opening and closing dates for offers and other terms of 
CCC's sugar purchase. CCC will then post a catalog listing the 
available sugar quantities. The purchase invitation and catalog will be 
placed on the Farm Service Agency (FSA) Commodity Operations Web site 
at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=landing. In order to allow for 
timely market pricing, CCC will permit sugarcane processors to provide 
price offers to the catalog to coincide with the timing of the exchange 
invitation's closing bid date.
    Subsequently, approximately 2 calendar days later, an exchange 
invitation will be made under which CCC will offer available sugar to 
Refined Sugar Re-export Program licensees in exchange for re-export 
credits. The exchange invitation will specify a minimum bid ratio of 
credits per metric ton of CCC sugar. The exchange invitation will be 
placed on the FSA Commodity Operations Web site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=landing.
    The sugar purchase will be different from the earlier purchase in 
that only sugarcane processors may offer to sell sugar to CCC. This 
purchase also differs from the earlier purchase in that any sugar 
offered to CCC must be pledged as collateral for CCC loan, as the 
purpose of this action is to reduce the forfeitures of loan collateral 
under the sugar loan program and this would most directly reduce 
forfeitures. The exchange invitation and evaluation process will be 
administered in the same way, except for the timing, as announced in 
the notice published on June 18, 2013.
    CCC may make future offers to purchase sugar and exchange it for 
re-export credits under this notice. Future offers to purchase and 
exchange will be made publicly available electronically on the FSA Web 
site at http://www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=pas, and also on the Federal 
Business Opportunities Web site at www.fbo.gov. All terms and 
conditions for any future sugar purchases and exchanges will be 
included in the purchase and exchange invitations.

    Signed on July 24, 2013.
Darci L. Vetter,
Deputy Under Secretary, Farm and Foreign Agricultural Services

Juan M. Garcia,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 2013-18219 Filed 7-26-13; 8:45 am]
BILLING CODE 3410-05-P