1994 Extra Long Staple Cotton Program

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1413 and 1427

RIN 0560-AD22

1994 Extra Long Staple Cotton Program

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: On October 13, 1993, the Commodity Credit Corporation (CCC)

issued a proposed rule (58 FR 52928) with respect to the 1994

Production Adjustment Program for Extra Long Staple (ELS) Cotton, which

is conducted by the CCC in accordance with the Agricultural Act of 1949

(1949 Act), as amended. The 1994 ELS Cotton Acreage Reduction Program

(ARP) percentage has been determined to be 15 percent. This final rule

amends the regulations to set forth the ARP, the established (target)

price, and the price support rate. No paid land diversion (PLD) program

will be implemented for the 1994 crop of ELS cotton.

EFFECTIVE DATE: May 2, 1994.

FOR FURTHER INFORMATION CONTACT: Kathryn A. Broussard, Fibers and Rice

Analysis Division, Agricultural Stabilization and Conservation Service,

United States Department of Agriculture, room 3758-S, P.O. Box 2415,

Washington, DC 20013-2415 or call 202-720-9222.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final rule is issued in conformance with Executive Order

12866. Based on information compiled by the USDA, it has been

determined that this final rule:

(1) Would have an annual effect on the economy of less than $100

million;

(2) Would not adversely affect in a material way the economy, a

sector of the economy, productivity, competition, jobs, the

environment, public health or safety, or State, local, or tribal

governments or communities;

(3) Would not create a serious inconsistency or otherwise interfere

with an action taken or planned by another agency;

(4) Would not materially alter the budgetary impact of

entitlements, grants, user fees, or loan programs, or rights and

obligations of recipients thereof; and

(5) Would not raise novel, legal, or policy issues arising out of

legal mandates, the President's priorities, or principles set forth in

Executive Order 128866.

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 final

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: Cotton Production Stabilization--10.052.

Executive Order 12778

This final rule has been reviewed in accordance with Executive

Order 12778. The provisions of the 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 parts 1413 and 1427 set forth in this final

rule do not contain information collections that require clearance by

the Office of Management and Budget under the provisions of 44 U.S.C.

35.

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 the selected option is available on request from the

above-named individual.

Background

This final rule amends 7 CFR part 1413 to set forth determinations

on the 1994 Production Adjustment Program and the PLD Program and 7 CFR

part 1427 to set forth the determinations on the 1994 price support

level. General descriptions of the statutory basis for the 1994 ELS ARP

percentage determination in this final rule were set forth in the

proposed rule at 58 FR 52928 (October 13, 1993).

One comment was received during the comment period. The respondent

recommended that a 15-percent ARP level would be sufficient to maintain

a stable level of supplies. Concerns were expressed that an ARP higher

than 15 percent would result in an unnecessary negative impact on many

Pima growers and the Pima cotton industry.

In accordance with statutory requirements, the Secretary of

Agriculture (Secretary) announced the 1994 price support level and

target price, 85.03 and 102.0 cents per pound, respectively, on

December 1, 1993. After considering the comment, the Secretary

announced a 15-percent ARP level on January 5, 1994. The Secretary

determined that a 15-percent ARP would maintain U.S. competitiveness in

world markets while balancing the risks of excessive supplies and

possible shortages. A 15-percent ARP reflects the current supply

situation while signaling to domestic and foreign customers that the

U.S. will be a reliable supplier.

Acreage Reduction

In accordance with section 103(h)(5) of the 1949 Act, an ARP has

been established for the 1994 crop of ELS cotton at 15 percent.

Accordingly, producers will be required to reduce their 1994 acreage of

ELS cotton for harvest from the crop acreage base established for ELS

cotton by at least this established percentage in order to be eligible

for price support loans, purchase, and payments.

Paid Land Diversion

In accordance with section 103(h)(5)(B) of the 1949 Act, a PLD

Program will not be implemented for the 1994 crop of ELS cotton.

Price Support Rate

In accordance with section 193(h)(2) of the 1949 Act, the price

support rate has been established with respect to the 1994 crop of ELS

cotton at 85.03 cents per pound.

Established (Target) Price

In accordance with section 103(h)(3)(B) of the 1949 Act, the

established (target) price has been established with respect to the

1994 crop of ELS cotton at 102.00 cents per pound.

List of Subjects

7 CFR Part 1413

Acreage allotments, Cotton, Disaster assistance, Feed grains, Price

support programs, Reporting and recordkeeping requirements, Rice, Soil

conservation, Wheat.

7 CFR Part 1427

Cotton, Loan programs/agriculture, Packaging and containers, Price

support programs, Reporting and recordkeeping requirements, Surety

bonds, Warehouses.

Accordingly, 7 CFR parts 1413 and 1427 are amended as follows:

PART 1413--FEED GRAIN, RICE, UPLAND AND EXTRA LONG STAPLE COTTON,

WHEAT AND RELATED PROGRAMS

1. The authority citation for 7 CFR part 1413 continues to read as

follows:

Authority: 7 U.S.C. 1308, 1308a, 1309, 1441-2, 1444-2, 1444f,

1445b-3a, 1461-1469; 15 U.S.C. 714b and 714c.

2. Section 1413.54 is amended by:

A. Revising paragraphs (a)(5)(ii) and (a)(5)(iii), and

B. Adding paragraphs (a)(5)(iv) and (d)(4) to read as follows:

Sec. 1413.54 Acreage reduction program provisions.

(a) * * *

(5) * * *

(ii) 1992 ELS cotton, 5 percent;

(iii) 1993 ELS cotton, 20 percent; and

(iv) 1994 ELS cotton, 15 percent.

* * * * *

(d) * * *

(4) For the 1994 crop:

(i)-(iii) [Reserved]

(iv) Shall not be made available to producers of ELS cotton.

* * * * *

3. Section 1413.104 is amended by revising paragraphs (a)(8)(ii)

and (a)(8)(iii), adding paragraph (a)(8)(iv) and revising paragraph (b)

to read as follows:

Sec. 1413.104 Established (target) prices.

(a) * * *

(8) * * *

(ii) 1992 ELS cotton--$1.058/lb;

(iii) 1993 ELS cotton--$1.057/lb; and

(iv) 1994 ELS cotton--$1.02/lb.

(b) ELS cotton target price for the 1995 crop will be established

as 120 percent of the loan rate for ELS cotton.

PART 1427--COTTON

4. The authority citation for 7 CFR part 1427 continues to read as

follows:

Authority: 7 U.S.C. 1421, 1423, 1425, 1444, and 1444-2; 15

U.S.C. 714b and 714c.

5. Section 1427.8 is amended by:

A. Revising paragraphs (a)(2)(ii) and (a)(2)(iii), and

B. Adding paragraph (a)(2)(iv) to read as follows:

Sec. 1427.8 Amount of loan.

(a) * * *

(2) * * *

(ii) 1992 ELS cotton, 88.15 cents per pound;

(iii) 1993 ELS cotton, 88.12 cents per pound; and

(iv) 1994 ELS cotton, 85.03 cents per pound.

* * * * *

Signed at Washington, DC on April 22, 1994.

Bruce R. Weber,

Acting Executive Vice President, Commodity Credit Corporation.

[FR Doc. 94-10216 Filed 4-29-94; 8:45 am]

BILLING CODE 3410-05-P