[Federal Register: June 22, 2006 (Volume 71, Number 120)]
[Notices]
[Page 35860]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn06-38]
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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 35860]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Warehouse Charges and Delivery Obligations for Peanuts Forfeited
to the Commodity Credit Corporation Through the Marketing Assistance
Loan Program
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: This notice advises warehouse operators operating under a
Commodity Credit Corporation (CCC) Peanut Storage Agreement of
provisions that may not be altered, even through changes made to the
public tariff of the warehouse. When CCC transfers title to CCC-owned
peanuts in store (i.e., to a third-party buyer), the storage and
handling rates applicable to CCC must remain applicable to the
transferee under the terms of the Peanut Storage Agreement. Also,
warehouse operators must load out, or transfer instore, the total loan
value of the peanuts represented on the warehouse receipt, calculated
by using USDA's Price Table File for the applicable crop year. This
value is not subject to a subsequent shrink factor. The delivery
obligation created by issuing the warehouse receipt may not be altered
for any reason or by any method, including public tariffs.
DATES: Effective Date: June 22, 2006.
FOR FURTHER INFORMATION CONTACT: Mark Overbo, Deputy Director,
Warehouse and Inventory Division, Farm Service Agency, USDA, STOP 0553,
1400 Independence Avenue, SW., Washington, DC 20250-0553. Telephone:
(202) 720-4647. E-mail: mark.overbo@usda.gov. Persons with disabilities
who require alternative means for communication (Braille, large print,
audiotape, etc.) should contact the USDA Target Center at (202) 720-
2600 (voice and TDD).
SUPPLEMENTARY INFORMATION: CCC incurred forfeitures on the 2004 crop of
peanuts. A portion of the CCC-owned peanuts were sold to third-party
buyers. During routine warehouse examinations, examiners received from
several warehouse operators questions relating to: Storage and handling
rates applicable to peanuts after title is transferred from CCC; and
the delivery obligation of the warehouse operator with respect to
issues of shrinkage.
The CCC Peanut Storage Agreement, Part 2, General Terms, Item D(2),
provides ``If CCC transfers title to CCC-owned peanuts in store, the
storage and handling rates contained in the Schedule of Rates will
apply to the peanuts until loaded out, provided the transferee, in
writing, orders the peanuts loaded out for immediate shipment within 30
days after the date title is transferred. If the transferee does not
request, in writing, load out within 30 days after the date title is
transferred, the storage and handling rates applicable to the
transferee for the peanuts shall not exceed CCC's Schedule of Rates in
effect at the time of title transfer until the earlier of: (a) 60 days,
or (b) title to the peanuts is transferred by the transferee to another
party, or (c) the transferee loads the peanuts out of the warehouse.''
Under this provision, it is permissible for warehouse operators to
charge rates in excess of the CCC rates after the end of this specified
date if the rates were included in the public tariff at the time the
warehouse receipt was issued.
Under the CCC marketing assistance loan program, in perfecting its
security interest in peanuts pledged as collateral for such a loan, CCC
will only accept warehouse receipts that meet the regulations set forth
in 7 CFR part 1421. Under these regulations and under the U.S.
Warehouse Act, the warehouse operator must specify on the receipt: Net
pounds; loose-shelled kernels (LSK) pounds; and the total value of the
peanuts based on a USDA price table file (loan rate data). The
warehouse operator must also indicate on the warehouse receipt that:
``The warehouse operator's obligation shall be to deliver this total
value upon demand'', and ``Return of peanuts will be both net pounds
and LSK pounds. Both have been reduced for a shrink factor.'' Warehouse
operators are advised that changes to the public tariff to include a
shrink factor for peanuts does not in any way alter their delivery
obligation created by issuing the warehouse receipt. In order for
warehouse operators to compensate for shrinkage, any shrink factors
must be applied before issuing the warehouse receipt.
Instructions for the issuance of negotiable warehouse receipts may
be found on the Commodity Operations Web site at http://www.fsa.usda.gov/daco/peanuts.htm.
Any questions about this notice may
be directed to Mark Overbo by calling (202) 720-4647 or e-mail
mark.overbo@usda.gov.
Signed at Washington, DC, June 9, 2006.
Glen L. Keppy,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. E6-9836 Filed 6-21-06; 8:45 am]
BILLING CODE 3410-05-P