[Federal Register: October 20, 2005 (Volume 70, Number 202)]
[Notices]
[Page 61113-61115]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20oc05-27]
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Notices
Federal Register
________________________________________________________________________
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
appearing in this section.
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[[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: barbara.fecso@wdc.usda.gov.
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.
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[GRAPHIC] [TIFF OMITTED] TN20OC05.007
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[FR Doc. 05-20960 Filed 10-19-05; 8:45 am]
BILLING CODE 3410-05-P