[Federal Register: October 13, 2006 (Volume 71, Number 198)]
[Rules and Regulations]               
[Page 60413]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc06-1]                         


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Rules and Regulations
                                                Federal Register
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[[Page 60413]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Parts 1421 and 1427

RIN 0560-AH38 and RIN 0560-AH48

 
Grains and Similarly Handled Commodities-Marketing Assistance 
Loans and Loan Deficiency Payments for the 2006 Through 2007 Crop 
Years; Cotton Storage, Handling, and Ginning Requirements for Cotton 
Marketing Assistance Loan Collateral

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule; correction.

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SUMMARY: This document corrects changes made by final rules published 
on June 6, 2006, and August 30, 2006, amending the regulations for the 
Marketing Assistance Loan (MAL) and Loan Deficiency Payment (LDP) 
Program of the Commodity Credit Corporation (CCC). A correction is 
needed because the final rule of June 6 erroneously deleted provisions 
required by Cotton Marketing Cooperative Associations and an amendatory 
instruction in the August 30, 2006 rule, intended to correct that 
error, inadvertently amended the wrong sections of the regulations.

DATES: Effective Date: June 6, 2006.

FOR FURTHER INFORMATION CONTACT: Phillip Elder, Regulatory Review 
Group, Economic and Policy Analysis Staff, Farm Service Agency (FSA), 
United States Department of Agriculture (USDA), Stop 0572, 1400 
Independence Ave., SW., Washington, DC 20250-0572. Telephone: (202) 
690-8104; e-mail: Phillip.Elder@wdc.usda.gov. Persons with disabilities 
who require alternative means for communication (Braille, large print, 
audio tape, etc.) should contact the USDA Target Center at (202) 720-
2600 (voice and TDD).

SUPPLEMENTARY INFORMATION:

Background

    This rule corrects the final rule published in the Federal Register 
on June 6, 2006 (71 FR 32415) that amended the regulations governing 
the Marketing Assistance Loan (MAL) and Loan Deficiency Payment (LDP) 
Program of the Commodity Credit Corporation (CCC). The final rule, 
among other things, revised section 1427.5 of 7 CFR part 1427 and, in 
doing so, removed the provisions formerly contained in section 
1427.5(e)(3) regarding beneficial interest in cotton used as collateral 
for a marketing assistance loan as it relates to loans made available 
to cotton producers through Cooperative Marketing Associations. An 
attempt was made to correct this error in the CCC final rule published 
on August 30, 2006 by adding provisions dealing with beneficial 
interest into 7 CFR part 1421 as section 1421.6(j). However, the 
correction was supposed to have been made in part 1427, which governs 
marketing assistance loans for cotton, since part 1421 applies only to 
grains and similar commodities, not cotton. Further, the new section 
1421.6(j) is redundant and simply repeats, verbatim, section 1421.6(f). 
This document corrects the regulatory text that was amended erroneously 
and makes the correct revision.

List of Subjects in 7 CFR

Part 1421

    Agricultural commodities, Feed grains, Grains, Loan programs--
agriculture, Oilseeds, Price support programs, Reporting and 
recordkeeping requirements.

Part 1427

    Agricultural commodities, Cotton, Loan programs--agriculture, Price 
support programs, Reporting and recordkeeping requirements.

0
For this reason, 7 CFR part 1421 is amended as follows:

PART 1421--GRAINS AND SIMILARLY HANDLED COMMODITIES--MARKETING 
ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR THE 2002 THROUGH 
2007 CROP YEARS

0
1. The authority citation for part 1421 continues to read as follows:

    Authority: 7 U.S.C. 7231-7237 and 7931 et seq.; 15 U.S.C. 714b 
and 714c.

Subpart A--General


Sec.  1421.6  [Amended]

0
2. Amend Sec.  1421.6 by removing paragraph (j).

PART 1427--COTTON

0
3. The authority citation for part 1427 continues to read as follows:

    Authority: 7 U.S.C. 7231-7237 and 7931-7939; and 15 U.S.C. 714b 
and 714c.

Subpart A--Nonrecourse Cotton Loan and Loan Deficiency Payments

0
4. Amend section 1427.5 by adding paragraph (o) to read as follows:
* * * * *
    (o) If marketing assistance loans or loan deficiency payments are 
made available to producers through a CMA under part 1425 of this 
chapter, the beneficial interest in the cotton must always have been 
held by the producer-member who delivered the cotton to the CMA or its 
member, except as otherwise provided in this section. Cotton delivered 
to such a CMA shall not be eligible to receive a marketing assistance 
loan or a loan deficiency payment if the producer-member who delivered 
the cotton does not retain the right to share in the proceeds from the 
marketing of the cotton as provided in part 1425 of this chapter.

    Signed in Washington, DC, on October 6, 2006.
Teresa C. Lasseter,
Executive Vice President, Commodity Credit Corporation.
 [FR Doc. E6-16944 Filed 10-12-06; 8:45 am]

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