Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair for the 1994 Marketing Year

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1468

RIN 0560-AD19

Support Prices for Shorn Wool, Wool on Unshorn Lambs, and Mohair

for the 1994 Marketing Year

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The National Wool Act of 1954, as amended (Wool Act), requires

the Secretary of Agriculture (Secretary), through the Commodity Credit

Corporation (CCC), to make loans and payments available to producers of

wool and mohair through December 31, 1995. The Wool Act further

provides that, in the case of the 1994 and 1995 marketing years, the

payments shall be 75 percent and 50 percent, respectively, of the

amount otherwise determined in accordance with section 704(a) of the

Wool Act. On May 2, 1994, the Commodity Credit Corporation (CCC) issued

a proposed rule (59 FR 22546) with respect to the support prices for

shorn wool, wool on unshorn lambs, and mohair for the 1994 marketing

year. The support level for wool on unshorn lambs has been determined

by multiplying 80 percent of the difference between the 1994 support

price for shorn wool and the 1994 national average market price for

shorn wool by 5 (the quantity of wool on an average 100-pound unshorn

lamb). The mohair support level has been determined to be $4.739, which

is equal to 85 percent of the comparable percentage of parity at which

shorn wool is supported for the 1994 marketing year. Payments to

producers for the 1994 and 1995 marketing years shall be 75 and 50

percent, respectively, of the amount otherwise determined in accordance

with section 704(a). These actions are required by sections 703 and 704

of the National Wool Act of 1954, as amended (Wool Act).

EFFECTIVE DATE: September 23, 1994.

FOR FURTHER INFORMATION CONTACT: Janise A. Zygmont, Fibers and Rice

Analysis Division, Agricultural Stabilization and Conservation Service,

United States Department of Agriculture (USDA), room 3756-S, PO Box

2415, Washington, DC 20013-2415 or call 202-720-6734.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be significant and was reviewed by

OMB under Executive Order 12866.

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 proposed

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: National Wool Act Payments--10.059.

Executive Order 12778

This final rule has been reviewed in accordance with Executive

Order 12778. The provisions of this 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 part 1468 set forth in this final rule will

not result in any change in the public reporting burden. Therefore, the

information collection requirements of the Paperwork Reduction Act are

not applicable to this amendment.

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 each option is available on request from the above-

named individual.

Comments

A total of forty-four comments were received during the 30-day

public comment period that ended June 1, 1994. Respondents included 27

producers, 5 warehouses, 4 producer organizations, 2 State legislators,

2 banks, 2 ASCS offices (1 State and 1 county), and 2 others.

Mohair. Thirty-one respondents specifically addressed the mohair

support level. Eleven recommended that mohair be supported at the

maximum allowed by law--115 percent of the wool parity percentage or

$6.411 per pound. Nineteen recommended that mohair be supported at the

100-percent level or $5.575 per pound, and one respondent recommended

either the 100 or 115 percent level. The reasons cited for these

recommendations were that such levels would:

(a) Help offset the reduction in the support level due to the

legislative requirement that 1994 payments be reduced by 25 percent;

(b) Lessen the negative impact of the Wool Act phase-out on those

rural economies which are based on sheep/goats with few available

employment or land use alternatives;

(c) Be appropriate due to low mohair prices, drought requiring

increased use of supplemental feed, the high cost of supplies, leases,

feed, and overhead, and predator problems; and

(d) Give producers a fair return.

Wool on Unshorn Lambs. One respondent commented that the pulled

wool (unshorn lamb) support rate should remain at the current level.

Another indicated that unshorn lamb payments should be eliminated. One

respondent commented on a technical point relating to the unshorn lamb

payment rate.

Other. Additional comments were submitted on issues for which

public input was not solicited. Ten respondents commented generally on

the Wool Act phase-out, either opposing it or requesting that the

decision to eliminate the programs be reviewed and reconsidered. One

respondent commented that the shorn wool support rate was too high.

After considering these comments, the following determinations have

been made with respect to the support prices for wool on unshorn lambs

and mohair for the 1994 marketing year. Shorn wool, wool on unshorn

lamb and mohair payments for the 1994 marketing year shall be 75

percent of the amount otherwise determined in accordance with section

704(a) of the Wool Act.

Support Price--Wool on Unshorn Lambs. In accordance with section

703 of the Wool Act, the support price for wool on unshorn lambs shall

be determined by multiplying 80 percent of the difference between the

1994 support price for shorn wool and the 1994 national average market

price for shorn wool by 5 pounds (the quantity of wool on an average

100-pound unshorn lamb). Experience has shown that this formula

provides a payment rate comparable to the shorn wool support price and

that it helps maintain normal marketing practices.

Support Price--Mohair. In accordance with section 703 of the Wool

Act, the support price for mohair for the 1994 marketing year shall be

$4.739, which is equal to 85 percent of the comparable percentage of

parity at which shorn wool is supported for the 1994 marketing year.

This level of support is consistent with the intent of recent

legislation to phase out support for wool and mohair.

Statutory Basis

This final rule amends 7 CFR part 1468 to set forth determinations

with respect to the support prices for shorn wool, wool on unshorn

lambs, and mohair for the 1994 marketing year. A general description of

the statutory basis for such determinations in this final rule was set

forth at 59 FR 22546 (May 2, 1994).

The support programs conducted pursuant to the Wool Act are subject

to the provisions of the Balanced Budget and Deficit Reduction Act of

1985, as amended. As a result, the support levels announced in this

rule may be recalculated to comply with this Act.

List of Subjects in 7 CFR Part 1468

Assistance grant programs--agriculture, Livestock, Mohair,

Reporting and recordkeeping requirements, Wool.

Accordingly, 7 CFR part 1468 is amended as follows:

PART 1468--WOOL AND MOHAIR

1. The authority citation for 7 CFR part 1468 continues to read as

follows:

Authority: 7 U.S.C. 1781-1787; 15 U.S.C. 714b and 714c.

2. Section 1468.4 is amended by:

A. Revising paragraph (b)(2)(iii), and

B. Adding paragraphs (b)(1)(ii)(D), (b)(2)(iv), and (b)(3)(iv) to

read as follows:

Sec. 1468.4 Eligibility for payments.

* * * * *

(b)(1) * * *

(ii) * * *

(D) 1994--$2.09 per pound.

(b)(2) * * *

(iii) 1993--$6.12 per hundredweight.

(iv) 1994--an amount equal to 80 percent of the difference between

the national average price received by producers for shorn wool for the

1994 marketing year and the 1994 shorn wool support price, multiplied

by 5.

(b)(3) * * *

(iv) 1994--$4.739 per pound.

* * * * *

3. Section 1468.8 is amended by revising paragraphs (a)(1) and (b)

to read as follows:

Sec. 1468.8 Computation of payment.

(a)(1) The amount of the shorn wool or shorn mohair support payment

shall be computed by applying the rate of payment to the net sales

proceeds for the wool or mohair marketed during the specified marketing

year, less the assessment due as specified in Sec. 1468.15. In the case

of the 1994 and 1995 marketing years, the payments shall be 75 percent

and 50 percent, respectively, of the amount otherwise determined in

accordance with this part. For shorn wool payments, if there is a

purchase by the producer of unshorn lambs, the resultant amount shall

be reduced by an amount resulting from multiplying the liveweight of

such lambs reported in the application for payment by the calculated

wool on shorn lambs support for such marketing year. If the amount of

the reduction exceeds the payment computed on the shorn wool marketed,

the liveweight of lambs which corresponds to the excess amount shall be

carried forward and used to reduce payments on unshorn lambs marketed

or slaughtered or shorn wool marketed in the current or subsequent

years.

* * * * *

(b) The amount of the wool support payment due to a producer for

wool on unshorn lambs shall be computed by applying the rate of payment

to the liveweight of the lambs sold or moved to slaughter during the

specified marketing year, reduced, on account of the purchase or

importation by the producer of unshorn lambs, by the liveweight of such

lambs reported in the application for payments, less the assessment due

as specified in Sec. 1468.15. In the case of the 1994 and 1995

marketing years, the payments shall be 75 percent and 50 percent,

respectively, of the amount otherwise determined in accordance with

this part. If the amount of the reduction exceeds the liveweight of the

unshorn lambs sold or moved to slaughter during said marketing year,

such excess liveweight shall be carried forward and used to reduce

payments on the wool on unshorn lambs marketed or slaughtered or shorn

wool marketed in the current or subsequent years.

* * * * *

Signed at Washington, DC, on September 19, 1994.

Bruce R. Weber,

Executive Vice President, Commodity Credit Corporation.

[FR Doc. 94-23610 Filed 9-22-94; 8:45 am]

BILLING CODE 3410-05-P