[Federal Register: April 6, 2009 (Volume 74, Number 64)]
[Rules and Regulations]
[Page 15359-15367]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap09-1]
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Rules and Regulations
Federal Register
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[[Page 15359]]
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1435
RIN 0560-AH86
Sugar Program
AGENCY: Farm Service Agency and Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Commodity Credit Corporation (CCC) is amending regulations
as required by the Food, Conservation, and Energy Act of 2008 (the 2008
Farm Bill) to administer the sugar loan and sugar marketing allotment
program through 2012. The 2008 Farm Bill generally extends the existing
sugar program with some changes, including new loan rates for raw cane
sugar and beet sugar, new provisions to guarantee domestic suppliers an
85 percent market share, and revised procedures for granting new
allocations for new entrants.
DATES: Effective Date: April 6, 2009.
FOR FURTHER INFORMATION CONTACT: Barbara Fecso, Dairy and Sweeteners
Analysis Group, Economic Policy and Analysis Staff, USDA, FSA, Stop
0516, 1400 Independence Ave., SW., Washington, DC 20250-0516; phone:
(202) 720-4146; e-mail: barbara.fecso@wdc.usda.gov; or fax: (202) 690-
1480. 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:
Background
This rule implements all the changes to the sugar loan and sugar
marketing allotment programs mandated by Title I of the 2008 Farm Bill
(Pub. L. 110-246). The provisions of Title IX of the 2008 Farm Bill,
concerning the Feedstock Flexibility Program for Bioenergy, will be
implemented at a later date as a proposed rule. We are separating these
regulatory provisions into two rules because the 2008 Farm Bill
requires us to promulgate the regulations to implement the Title I
changes and exempts the regulations from notice and comment rulemaking,
while Title IX must be implemented subject to notice and comment
rulemaking. Also, we need to implement the Title I changes now in order
to provide sugar loans and marketing allotments for fiscal year (FY)
2009. In contrast, it is unlikely given current supply and demand
conditions that we will be required to implement provisions of the
Feedstock Flexibility Program in FY 2009. The Feedstock Flexibility
Program is triggered by the prospect of sugar forfeitures, which are
unlikely to occur in FY 2009. The U.S. Department of Agriculture's
(USDA) December 2008 World Agricultural Supply and Demand Estimate
(WASDE) report projected sugar ending stocks for FY 2009 of 60 percent
of the level USDA normally considers necessary to provide for a
balanced domestic sugar market, making forfeitures quite unlikely.
The sugar program is a collection of Federal programs designed to
support the return from raising sugarcane and sugar beets above a
threshold established by statute. The price of sugar, rather than the
price of sugar beets and sugarcane, is supported, because the growers'
return from the crop is proportional to the price of sugar and the
crops are not storable, which makes them unsuitable loan collateral for
CCC price support loans. The price level supported is determined by the
sugar loan program. Regulations for this program are in subpart B in 7
CFR part 1435. Sugar beet and sugarcane processors can receive loans
from CCC on their sugar production, which can be fully satisfied by
giving CCC title to their loan collateral, also known as a
``forfeiture'' of collateral. Thus, sugar processors always have the
opportunity to receive at least the loan proceeds from their crop,
which becomes a floor on the market price of domestic sugar.
The sugar program has had a mandate, since the Farm Security and
Rural Investment Act of 2002 (Pub. L. 107-171, commonly known as the
2002 Farm Bill), to avoid the federal costs associated with sugar loan
collateral forfeitures. The sugar program minimizes forfeiture
expenditures by limiting domestic supply, resulting in higher domestic
sugar prices than the floor created by the sugar loan program. Thus,
the cost of the program falls upon domestic purchasers of sugar, not
the federal government. USDA can control supply by limiting the
quantity of sugar that domestic sugar beet and sugarcane processors can
sell under the Sugar Marketing Allotment program, and by limiting the
quantity of foreign sugar on the domestic market via sugar tariff-rate
quotas (TRQ), subject to the minimum access levels established by
international treaties.
While some price support aspects of the sugar program may not be
needed in 2009 due to the predicted tight U.S. sugar market, other
aspects of the Sugar Loan and Marketing Allotments for Sugar program
will be implemented in FY 2009 and need this rule in order to operate.
All of the changes in this rule are required by the 2008 Farm Bill, for
which USDA has little or no discretion in when and how to implement.
This rule makes changes to subparts A, B, C, D, and E of 7 CFR part
1435, ``Sugar Program.'' The Payment in Kind Program in subpart E will
be moved to a new subpart F. A new subpart E on General Disposition of
CCC Inventory and subpart G will be added in the subsequent Title IX
rule and used to implement the Feedstock Flexibility Program.
Changes to General Provisions (Subpart A)
The extension of the domestic sugar program through the 2012 crop
year is reflected in the revised section 1435.1, ``Applicability.''
Also added to this section is the administration of a program to
dispose of surplus sugar to bioenergy fuels production.
Section 1435.2, ``Definitions,'' is updated and modified to reflect
changes required by the 2008 Farm Bill. The definition of beet sugar is
revised to implement the requirement in the 2008 Farm Bill that sales
of sugar processed from in-process beet sugar, such as thick juice,
whether imported or domestic, used for domestic human consumption is
subject to the processor's sugar marketing allocation. This change also
resulted in changes to the definitions of ``in-process beet sugar,''
``in-process
[[Page 15360]]
cane sugar,'' ``overall allotment quantity,'' ``sugar,'' and ``sugar
beet processor.'' A definition for ``human consumption'' is added,
using the definition in the 2008 Farm Bill. A definition for
``proportionate share State'' is added for clarification. The
definition of ``marketing'' is revised to reflect the 2008 Farm Bill
requirement that a sale of sugar to the Feedstock Flexibility Program
is a marketing subject to a processor's sugar marketing allocation. A
definition of ``cane sugar refiner'' is modified to be consistent with
Foreign Agricultural Service (FAS) regulations.
Section 1435.3, ``Maintenance and Inspection of Records,'' is
modified to reflect that CCC has no authority to inspect processor
records and has instituted a data audit process, in lieu of inspection,
to verify processor records. This audit process is explained in section
1435.200, ``Information Reporting.''
Changes to Sugar Loan Program (Subpart B)
The regulations governing the Sugar Loan Program are modified to
reflect the changes required by the 2008 Farm Bill.
Section 1435.101, ``Loan Rates,'' sets forth the increased loan
rates under the 2008 Farm Bill. The national average loan rate for raw
cane sugar produced from domestically-grown sugarcane is unchanged for
the 2008 crop year, at 18 cents per pound, but increases as follows for
the subsequent years:
18.25 cents per pound for the 2009 crop year;
18.50 cents per pound for the 2010 crop year;
18.75 cents per pound for the 2011 crop year; and
18.75 cents per pound for the 2012 crop year.
The national average loan rate for refined beet sugar produced from
domestically-grown sugar beets remains unchanged for the 2008 crop
year, but increases to 128.5 percent of the loan rate per pound of raw
cane sugar for each of the crop years 2009 through 2012.
The eligibility requirements in section 1435.102, ``Eligibility
Requirements,'' are modified to exclude sugar processed from imported
in-process sugars from eligibility for the loan program. The 2008 Farm
Bill now treats in-process beet sugar just like sugar beets; that is,
as an input into the production of sugar. Since sugar produced from
imported beets is not eligible for the loan program, neither is sugar
produced from imported in-process beet sugar. Section 1435.103,
``Availability, Disbursement, and Maturity of Loans,'' is revised to
reflect the change in loan rate for supplemental loans. Instead of
getting the loan rate in effect at the time the supplemental loan is
made, supplemental loans will receive the loan rate that was in effect
at the time the original loan was made. Section 1435.105, ``Loan
Settlement and Foreclosure,'' is updated to reflect that premiums or
discounts may result from any differences in the sugar characteristics
identified on the loan certification versus at the time of actual
loadout of forfeited sugar. Storage payment rates paid by CCC on
forfeited sugar loan collateral have also been added to section
1435.105. The minimum rate set by the 2008 Farm Bill is 15 cents per
hundredweight for refined sugar and 10 cents per hundredweight for raw
sugar, significantly above the rates administratively set by USDA of 10
cents per hundredweight for refined sugar and 8 cents per hundredweight
for raw sugar.
Changes to Information Reporting and Recordkeeping Requirements
(Subpart C)
Subpart C, ``Information Reporting and Recordkeeping
Requirements,'' is revised to reflect the 2008 Farm Bill's requirement
that USDA publish Mexican supply data and use estimates in its monthly
WASDE report. The 2008 Farm Bill also requires the WASDE report to
include publicly available data on Mexican high fructose corn syrup
production, consumption, and trade data. This rule also replaces the
requirement in the regulation that all processors, refiners and
importers must submit an annual audit to CCC. The new regulation allows
CCC to select some, but not necessarily all, for audit.
Changes to the Flexible Sugar Marketing Allotment Program (Subpart D)
The 2008 Farm Bill significantly modified the Flexible Sugar
Marketing Allotment Program. All of the changes to subpart D in this
rule described below are required to implement the 2008 Farm Bill. This
section discusses the overall changes in the program and the
implications of those changes first, then discusses the changes to
specific sections of the regulations.
The 2002 Farm Bill required USDA to set the overall allotment
quantity (OAQ) by a formula that permitted domestic producers to
receive a market share equal to the amount of domestic demand, less an
import share of 1.532 million tons. This allotment quantity had to be
reduced, if necessary, to avoid the cost of potential forfeitures of
sugar loan collateral. Allotments were to be suspended if the import
share exceeded the 1.532 million tons allotted to it. Suspending
allotments was expected to increase the likelihood of CCC expenditures
as forfeitures under the price support loan program were constrained by
the program--forfeitures are marketings credited against a processor's
allocation of the marketing allotment. Without an allotment program,
processors could forfeit their entire sugar supply, if they so chose.
The 2008 Farm Bill added another objective to the domestic
allotment program, reinforcing USDA's function to use the sugar program
to provide for a balanced domestic sugar market. USDA must now set the
domestic allotment quantity, subject to specific constraints, to ensure
that there is an adequate supply of raw and refined sugar for the
domestic market. This new objective in the domestic program complements
the existing authority in chapter 17 of the Harmonized Tariff Schedule
maintained by the United States International Trade Commission
permitting USDA to increase the sugar TRQs if supply is determined to
be ``inadequate to meet domestic demand at reasonable prices.'' Thus,
USDA must continue to use the sugar program authorities, to the extent
possible, to keep supply limited enough to avoid forfeitures, but large
enough to provide an adequate supply.
The Sugar Marketing Allotment program divides the domestic sugar
market between sugar importers and domestic sugar beet and sugarcane
processors. Importers are always expected to fill their share because
the U.S. price of sugar is usually considerably above the world sugar
price. If the domestic processors' supply is inadequate to fill their
allotment, then CCC must fill the deficit with its inventory; if it has
no inventory, then CCC must reassign the unfilled market share to
importers. The maximum market share reserved for imports under the 2002
Farm Bill, 1.532 million tons, was also the allotment program
suspension threshold and did not include imports needed to make up for
deficit domestic production.
Under the 2002 Farm Bill, all types of imported sugar were eligible
for reassignment of the deficit, including, but not limited to, TRQ raw
sugar, TRQ refined sugar, Mexican imports, Central America Free Trade
Agreement (CAFTA) imports, and other high-tier imports. At times, a
reassignment meant new access to the U.S. sugar market, for example an
increase in the TRQ. At other times, a reassignment meant acknowledging
an existing import category that resulted in no new access,
[[Page 15361]]
such as Mexican sugar. USDA reassigned the surplus allotment to an
import source consistent with the objective of balancing the domestic
market, avoiding forfeitures and providing adequate supply at
reasonable prices. If USDA determined that the market was not
adequately supplied, then USDA would increase access through a TRQ
increase. If USDA determined that the market would be adequately
supplied with the imports already expected, then USDA would reassign
the surplus allotment to those imports. The following is a table of the
sources of reassigned surplus allotment during administration of the
Sugar Marketing Allotment program under the 2002 Farm Bill.
Reassignment History
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FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
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(short tons, raw value)
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OAQ..................................................... 8,663,000 8,250,000 8,680,000 9,350,000 8,750,000 8,950,000
Beet Sugar.......................................... 4,534,340 4,483,875 4,717,580 4,776,380 4,755,625 4,864,325
Cane Sugar.......................................... 3,954,660 3,766,125 3,670,208 2,981,620 3,540,375 3,626,533
Reassignments:
Reassign Cane Shortfall to CCC...................... 174,000 0 17,120 0 0 0
Reassigned to Total Imports......................... 0 0 275,092 1,592,000 454,000 459,142
Raw World Trade Organization (WTO) TRQ.......... 0 0 84,447 745,000 250,000 ..............
Refined WTO TRQ................................. 0 0 69,933 509,921 58,581 70,000
Mexico TRQ...................................... 0 0 0 276,000 86,419 0
Mexico Non TRQ.................................. 0 0 120,713 0 0 389,142
Non Program Imports............................. 0 0 0 61,079 59,000 0
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The 2008 Farm Bill changes the market sharing arrangements embodied
in the Sugar Marketing Allotment program. The new objective that it
must ensure adequate sugar supply means that when USDA sets the overall
allotment quantity, it must be comfortable that the remaining share of
domestic demand, up to 15 percent, will be satisfied. USDA cannot
reassign surplus allotment to imports that would permit the non-
allotment market share (15 percent) to be unfulfilled. Thus, for the
new allotment program, USDA cannot reassign surplus allotment to
imports that would count against the 15-percent import market share.
The 2008 Farm Bill also specifically requires that surplus allotment be
reassigned to raw cane sugar imports only. Thus, the raw sugar TRQ, or
raw sugar portion of CAFTA or Mexican imports, are now eligible as a
source for reassignment. This still permits USDA significant
flexibility in balancing the domestic market as these categories are
expected to range between 1 to 2 million tons per year. Any imported
refined sugar must be credited against the 15-percent import market
share because it is not eligible for reassignment if domestic producers
cannot fill their allotment.
It should be noted that USDA's increases in access to the domestic
market do not necessarily mean domestic supplies will increase and
prices will fall. Sugar must be physically available to fill the
access. Likewise, USDA's ability to restrict supply and raise prices is
hampered by storage capacity. CCC sugar is stored in processor
warehouses and storage capacity limits will cause the processors to
reduce prices to avoid paying for expensive short term storage as the
new crop is processed. CCC purchased sugar for considerably less than
the forfeiture proceeds in 2000.
The USDA budget baseline projects substantial costs to the sugar
program because USDA's ability to limit supply was curtailed by NAFTA,
which deregulates sweetener trade across the U.S.-Mexican border. The
U.S. advantage in high fructose corn syrup (HFCS) production was
expected to result in an increased flow of U.S. HFCS into Mexico,
creating a Mexican surplus in sugar that would result in increased
Mexican sugar imports into the United States. The increased Mexican
imports were expected to result in prices below the federal support
level and forfeiture of sugar price support loan collateral. The 2008
Farm Bill addressed CCC's options to dispose of surplus sugar in the
new Feedstock Flexibility Program, located in Title IX of the 2008 Farm
Bill.
Section 1435.300, ``Applicability,'' now provides that marketings
of sugar made from in-process beet sugar will be counted against a
processor's sugar marketing allocation. Before this change, which is
required by the 2008 Farm Bill, CCC considered in-process beet sugar as
a sugar and counted marketings of in-process beet sugar against a
processor's allocation. This rule considers in-process beet sugar a
feedstock from which sugar can be made, just as sugar beets or
sugarcane are considered feedstocks for producing sugar. This change
required minor edits for consistency to many sections in this subpart,
as well as changes to the definitions section.
Section 1435.302 is modified to reflect not only the 85 percent
market share guarantee to domestic producers, but also CCC's policy of
requiring a processor to use its marketing allotment to participate in
USDA's sugar re-export, sugar containing products re-export, or
polyhydric alcohol programs, and to sell sugar to CCC under the new
Feedstock Flexibility Program.
Section 1435.303, ``Overall Allotment Quantity,'' is removed from
the regulations because it is now obsolete, and subsequent sections are
renumbered accordingly.
Section 1435.303, ``The Adjustment of the Overall Allotment
Quantity,'' (formerly section 1435.304) has been modified to reflect
the change in the 2008 Farm Bill which restricts CCC from reducing the
OAQ below 85 percent of human consumption. The 2002 Farm Bill, as
mentioned earlier, allowed CCC to reduce the domestic share in times of
a demand decrease, without a lower limit.
Sections 1435.306, ``Allocation of Marketing Allotments to
Processors,'' and 1435.307, ``Transfer of Allocation,'' have been
reorganized for clarification and to reflect changes from the 2008 Farm
Bill. The provisions in these sections were formerly in Sec. Sec.
1435.307 and 1435.308.
The updated Sec. 1435.306, ``Allocation of Marketing Allotments to
Processors,'' includes new provisions that exempt sugar made in FY 2009
from in-process beet sugar purchased in FY 2008. The marketing of
domestic in-process beet
[[Page 15362]]
sugar in FY 2008 was subject to a processor's FY 2008 allocation
because, under the 2002 Farm Bill, in-process sugar was considered
sugar subject to a processor's allotment. After September 30, 2008, the
marketings of in-process beet sugar are no longer considered sugar
subject to a processor's allotment due to a change made by the 2008
Farm Bill. Section 359b(c)(1) of the Agricultural Adjustment Act of
1938, as amended by the 2008 Farm Bill, includes the marketing of sugar
processed from in-process beet sugar in the section describing the
coverage of allotments. The new provision in Sec. 1435.306 is required
so that companies that purchased in-process sugar, sold under a FY 2008
allocation, are not caught in the transition to the new definition of
sugar subject to allotment. Some of these companies may not have been
beet processors with allotments. Without this new provision, these
companies would be prevented from marketing the sugar processed from
the in-process beet sugar. In the future, any company wishing to
process in-process beet sugar into refined sugar must be a beet
processor with an allocation of the beet sugar marketing allotment.
The updated Sec. 1435.307, ``Transfer of allocation,'' provides
that for proportionate share States, growers may now move allocation
between facilities as they change their sugarcane deliveries. Under the
previous regulation, growers needed permission from the processor they
were leaving to move allocation commensurate with their cane
deliveries. CCC is establishing the signup period for growers to
request CCC to move allocation as the month of May for the following
cane harvest season. During that signup month, CCC expects the grower
to reach agreement with its original facility as to the amount of
production history the grower is requesting and entitled to move. If
the petitioning grower does not supply CCC during the month of May with
its history for the crop years 1997 through 2003, certified by its
original facility, CCC will refuse the grower's petition to transfer
allocation. Since growers in proportionate share States do not need
permission from the facility they are leaving to move allocation
associated with their production, provisions for them are no longer
included in the ``Transfer of Allocation'' section regarding facility
closures.
In light of proceedings in a court case, Amalgamated Sugar, LLC v.
Vilsack, et al., the updated Sec. 1435.307 (formerly Sec. 1435.308)
is being amended to permit CCC wider discretion to determine that a
processor has permanently terminated operations. In a decision dated
February 11, 2009, the U.S. Court of Appeals for the Ninth Circuit
reversed a determination made by the Department transferring the sugar
marketing allocation from one sugar processor to another sugar
processor. The amendment permits CCC to make a determination that a
sugar processor has permanently terminated operations, and transfer the
allocation on the basis of a CCC determination, in addition to the
other specified circumstances.
This section also reflects an addition in the 2008 Farm Bill that
allows the buyer and seller of a facility, rather than CCC, to choose
the allocation amount to be transferred upon sale of the facility.
Finally, Sec. 1435.307 is modified to add a provision that was
effective in the 2002 Farm Bill, but not specified in the previous
regulation, that a buyer of facilities may fill a production shortfall
of its purchased facilities with beet sugar produced in other beet
facilities it owns, if necessary.
Section 1435.308, ``New Entrants,'' now specifies that in
subsequent years after being assigned its initial allocation, the new
entrant cane processor will be assigned an allocation that provides a
fair, efficient, and equitable distribution of allocations from the
allotment of the State within which the new entrant is located. In the
case of cane processors in proportionate share States, the new
entrant's allocation in subsequent years will include any allocation
acquired through the voluntary allocation transfer provisions of Sec.
1435.307, ``Transfer of Allocation.'' This ``New Entrants'' section
also implements a change from the 2008 Farm Bill that requires CCC to
assign to a new entrant constructing a new or reopening an existing
facility that has no allocation an allocation that enables it to
achieve a facility utilization rate similar to other sugar beet
processors. The 2002 Farm Bill specified a formula to determine the new
allocation that is removed in this rule. This section also now provides
that a new entrant acquiring a facility with production history and the
company holding its allocation must agree on the allocation to be
transferred; otherwise CCC will deny the new entrant an allocation.
Section 1435.309, ``Reassignment of Deficits,'' is changed in this
rule to restrict reassignment of production shortfall, after it has
been determined that CCC cannot fill the allocation, to imports of raw
cane sugar only.
Section 1435.313, ``Permanent Transfer of Acreage Base Histories
Under Proportionate Shares,'' now incorporates a new process to restore
sugarcane base acreage lost to nonagricultural uses before May 13, 2002
in proportionate share States. USDA will notify affected landowners
within 90 days of USDA becoming aware of the conversion that the
landowner has 90 days to transfer the base. It is not USDA's
responsibility to keep a vigilant watch for sugarcane base acreage
converting to a nonagricultural use. If the landowner does not exercise
his transfer rights, the grower of record will have 90 days after being
notified by USDA to transfer the base. If the landowner or grower does
not transfer the base, then the FSA county committee will take requests
for the base and randomly assign to sugarcane farms in the county that
are eligible and capable of accepting the acreage base. Any base
remaining will go to the State FSA committee for dispersal.
Section 1435.318, ``Penalties and Assessments,'' is also changed by
this rule to include a provision for liquidated damages that was
previously specified in section 1435.307.
Redesignation of Subpart E, ``Processor Sugar Payment-in-Kind (PIK)
Program''
The subpart on PIK is not changing with this rule. We will
implement minor changes to PIK with the subsequent rule implementing
Title IX to include provisions of the Feedstock Flexibility Program.
This rule merely moves the PIK subpart from E to F, and reserves part E
for a new subpart on ``General Disposition of CCC Inventory'' that will
be added with the Title IX rule. It makes sense to have the General
disposition subpart appear in the CFR before the PIK subpart, because
PIK is a specific kind of disposition program. This rule also reserves
subpart G for the Feedstock Flexibility program sections that will be
added with the Title IX rule.
Notice and Comment
These regulations are exempt from the notice and comment
requirements of the Administrative Procedures Act (5 U.S.C. 553), as
specified in section 1601(c) of the 2008 Farm Bill, which requires that
the regulations be promulgated and administered without regard to the
notice and comment provisions of section 553 of title 5 of the United
States Code or the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 FR 13804) relating to notices of proposed
rulemaking and public participation in rulemaking.
Executive Order 12866
The Office of Management and Budget (OMB) designated this rule as
economically significant under Executive Order 12866 and, therefore,
OMB reviewed this final rule. A cost-
[[Page 15363]]
benefit assessment of this rule is summarized below and is available
from the contact information above.
Summary of Economic Impacts
This rule implements two major changes in the sugar program
resulting from the 2008 Farm Bill: Higher loan rates and a guaranteed
market share. These are expected to have zero impact on federal costs
for FY 2009 and FY 2010. This is because baseline assumptions project
FY 2011 to be the first year of surplus sugar in the marketplace.
However, over the course of FY 2009 through FY 2018, federal net
expenditures are expected to be $1.055 billion more than if the 2002
Farm Bill provisions were still in place. This result is mostly driven
by the increase in loan rates that increases the NAFTA floor price.
While higher sugar prices in Mexico cause its manufacturers and
consumers to substitute high fructose corn syrup for sugar, they also
increase the grower incentive to plant more acreage to sugarcane. As a
result, Mexican sugar exports to the U.S. are likely to increase over
time, on average by 33 percent between 2009 and 2018. At the same time,
U.S. production is likely to increase in response to high support
levels. The loan rate increase is expected to increase sugar costs to
consumers and sugar users by $1.4 billion from 2009 to 2018. This cost
is the increase in the loan rate multiplied by sugar use; the demand
for sugar is assumed to be perfectly inelastic.
Regulatory Flexibility Act
This rule is not subject to the Regulatory Flexibility Act since
CCC is not required to publish a notice of proposed rulemaking for this
rule.
Environmental Review
FSA has determined that these changes would not constitute a major
Federal action that would significantly affect the quality of the human
environment. Therefore, in accordance with the provisions of the
National Environmental Policy Act (NEPA), 42 U.S.C. 4321-4347, the
regulations of the Council on Environmental Quality (40 CFR parts 1500-
1508), and FSA regulations for compliance with NEPA, specifically 7 CFR
part 799.10(b)(2)(vii), no environmental assessment or environmental
impact statement will be prepared.
Executive Order 12372
This program is not subject to Executive Order 12372, which
requires consultation with State and local officials. See the notice
related to 7 CFR part 3015, subpart V, published in the Federal
Register on June 24, 1983 (48 FR 29115).
Executive Order 12988
This rule has been reviewed under Executive Order 12988. This rule
is not retroactive and it does not preempt State or local laws,
regulations, or policies unless they present an irreconcilable conflict
with this rule. Before any judicial action may be brought regarding the
provisions of this rule the administrative appeal provisions of 7 CFR
parts 11 and 780 must be exhausted.
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on states, on the relationship between the national
government and the states, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
rule impose substantial direct compliance costs on state and local
governments. Therefore, consultation with the states is not required.
Unfunded Mandates
This rule contains no Federal mandates under the regulatory
provisions of Title II of the Unfunded Mandates Reform Act of 1995
(UMRA) for State, local, and tribal government or the private sector.
In addition, CCC was not required to publish a notice of proposed
rulemaking for this rule. Therefore, this rule is not subject to the
requirements of sections 202 and 205 of UMRA.
Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)
Section 1601(c)(3) of the 2008 Farm Bill requires that the
Secretary use the authority in section 808 of title 5, United States
Code, which allows an agency to forgo SBREFA's usual 60-day
Congressional Review delay of the effective date of a major regulation
if the agency finds that there is a good cause to do so. Accordingly,
this rule is effective upon publication in the Federal Register.
Paperwork Reduction Act
The regulations in this rule are exempt from the requirements of
the Paperwork Reduction Act (44 U.S.C. Chapter 35), as specified in
section 1601(c)(2) of the 2008 Farm Bill, which provides that these
regulations be promulgated and administered without regard to the
Paperwork Reduction Act.
E-Government Act Compliance
CCC is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
List of Subjects in 7 CFR Part 1435
Loan programs--agriculture, Penalties, Price support programs,
Reporting and recordkeeping requirements, Sugar.
0
For the reasons discussed above, this rule amends 7 CFR part 1435 as
follows:
PART 1435--SUGAR PROGRAM
0
1. Revise the authority for part 1435 to read as follows:
Authority: 7 U.S.C. 1359aa-1359jj and 7272; 15 U.S.C. 714b and
714c.
Subpart A--General Provisions
0
2. Amend Sec. 1435.1 as follows:
0
a. Amend the introductory text by removing the years ``2002-2007'' and
adding in their place the years ``2008 through 2012,'' and
0
b. Revise paragraph (d) to read as set forth below.
Sec. 1435.1 Applicability.
* * * * *
(d) Administer an inventory disposition program to sell CCC
inventory to bioenergy producers and exchange CCC inventory for
processor reductions in production or certificates of quota entry.
0
3. Amend Sec. 1435.2 as follows:
0
a. Add new definitions, in alphabetical order, for ``CCC,''
``facility,'' ``human consumption,'' ``in-process beet sugar,'' ``in-
process cane sugar,'' and ``proportionate share State,'' to read as set
forth below,
0
b. Remove the definition for ``in-process sugar,'' and
0
c. Revise the definitions of ``beet sugar,'' ``cane sugar refiner,''
``market or marketing,'' ``overall allotment quantity,'' ``sugar,'' and
``sugar beet processor'' to read as set forth below.
Sec. 1435.2 Definitions.
* * * * *
Beet sugar means sugar that is processed directly or indirectly
from sugar beets, sugar beet molasses, or in-process beet sugar,
whether produced domestically or imported.
* * * * *
Cane sugar refiner means any person in the U.S. Customs Territory
that refines raw cane sugar through affination or defecation,
clarification, and further purification by absorption or
crystallization.
* * * * *
[[Page 15364]]
CCC means the Commodity Credit Corporation.
* * * * *
Facility means a factory, mill, or plant.
* * * * *
Human consumption means sugar for use in human food, beverages, or
similar products.
* * * * *
In-process beet sugar means the intermediate sugar-containing
product, as CCC determines, produced from processing sugar beets. Like
sugar beets, it is considered an input into the production of sugar
regardless of whether it is produced domestically or imported.
In-process cane sugar means the intermediate sugar-containing
product, as CCC determines, produced from the processing of sugarcane.
It is not raw sugar, nor is it suitable for direct human consumption.
Market or marketing means the transfer of title associated with the
sale or other disposition of sugar for human consumption in United
States commerce. A marketing also includes a sale of sugar under the
Feedstock Flexibility Program, the forfeiture of sugar loan collateral
under the Sugar Loan Program, exportation of sugar from the United
States Customs Territory eligible to receive credits under reexport
programs for refined sugar or sugar-containing products administered by
the Foreign Agricultural Service, or the sale of sugar eligible to
receive credit for the production of polyhydric alcohol under the
Polyhydric Alcohol program (see part 1530 of this title) administered
by the Foreign Agricultural Service, and for any integrated processor
and refiner, the movement of raw cane sugar into the refining process.
* * * * *
Overall allotment quantity means, on a national basis, the total
quantity of domestically produced sugar, raw value, processed from
sugarcane, sugar beets or in-process beet sugar (whether the sugar
beets or in-process beet sugar are produced domestically or imported),
and the raw value equivalent of sugar in sugar products, that is
permitted to be marketed by processors, during a crop year or other
period in which marketing allotments are in effect.
* * * * *
Proportionate share State means a State with an established
allotment and more than 250 sugarcane producers in the State, other
than Puerto Rico.
* * * * *
Sugar means any grade or type of saccharine product derived,
directly or indirectly, from sugarcane, sugar beets, sugarcane
molasses, sugar beet molasses or in-process beet sugar whether
domestically produced or imported and consisting of, or containing,
sucrose or invert sugar, including raw sugar, refined crystalline
sugar, edible molasses, edible cane syrup, liquid sugar, and in-process
cane sugar.
Sugar beet processor means a person who commercially produces
sugar, directly or indirectly, from sugar beets, sugar beet molasses,
or in-process beet sugar.
* * * * *
Sec. 1435.3 [Amended]
0
4. Amend Sec. 1435.3 as follows:
0
a. In the heading, remove the words ``and inspection,''
0
b. Remove paragraph (a),
0
c. Redesignate paragraph (b) as paragraph (a),
0
d. In newly redesignated paragraph (a) introductory text, remove the
words ``the records shall'' and add the words ``records required by CCC
to operate the sugar program must'' in their place, and
0
d. Reserve paragraph (b).
Subpart B--Sugar Loan Program
0
5. Revise the heading of Subpart B to read as set forth above.
0
6. Amend Sec. 1435.101 by revising paragraphs (a) and (b) to read as
follows:
Sec. 1435.101 Loan rates.
(a) The national average loan rate for raw cane sugar produced from
domestically grown sugarcane is: 18 cents per pound for the 2008 crop
year; 18.25 cents per pound for the 2009 crop year; 18.50 cents per
pound for the 2010 crop year; 18.75 cents per pound for the 2011 crop
year; and 18.75 cents per pound for the 2012 crop year.
(b) The national average loan rate for refined beet sugar from
domestically grown sugar beets is: 22.90 cents per pound for the 2008
crop year; and a rate equal to 128.5 percent of the loan rate per pound
of raw cane sugar for each of the crop years 2009 through 2012.
* * * * *
Sec. 1435.102 [Amended]
0
7. Amend Sec. 1435.102 in paragraph (c)(3) by adding the words ``in-
process sugars,'' immediately after the word ``beets,''.
0
8. Amend Sec. 1435.103 by revising paragraph (f) to read as follows:
Sec. 1435.103 Availability, disbursement, and maturity of loans.
* * * * *
(f) Processors receiving loans in July, August, or September may
repledge the sugar as collateral for a supplemental loan. Such
supplemental loan must:
(1) Be requested by the processor during the following October;
(2) Be made at the loan rate in effect at the time the first loan
was made; and
(3) Mature in 9 months less the number of months that the first
loan was in effect.
Sec. 1435.104 [Amended]
0
9. Amend Sec. 1435.104 as follows:
0
a. Remove paragraph (c)(2) and
0
b. Redesignate paragraphs (c)(3) and (c)(4) as paragraphs (c)(2) and
(c)(3), respectively.
0
10. Amend Sec. 1435.105 as follows:
0
a. Revise paragraph (b) to read as set forth below,
0
b. In paragraph (c)(2), add the word ``before'' immediately before the
words ``the processor,''
0
c. In paragraph (f), add the word ``next business'' before the word
``day,'' and
0
d. Add paragraph (j) to read as set forth below.
Sec. 1435.105 Loan settlement and foreclosure.
* * * * *
(b) Forfeiture of sugar loan collateral will be accepted as payment
in full of the principal and interest due under a nonrecourse loan,
subject to applicable premiums and discounts based on the difference
between specifications reported on the sugar loan certification report
and actual loadout characteristics.
* * * * *
(j) The CCC rates for the storage of forfeited sugar to approved
warehouses for each crop year of 2008 through 2011 will be at least:
(1) For refined sugar, 15 cents per hundredweight of refined sugar
per month; and
(2) For raw cane sugar, 10 cents per hundredweight of raw cane
sugar per month.
(3) For 2012 and subsequent crop years, rates for the storage of
forfeited sugar will revert to those used before June 18, 2008.
(4) For sugar located in space not approved by CCC for storage, the
payment rate will be zero until such time as the processor delivers
such sugar to a CCC-approved warehouse.
Subpart C--Information Reporting and Recordkeeping Requirements
0
11. Amend Sec. 1435.200 as follows:
0
a. In paragraph (a), second sentence, remove the words ``made by'' and
add, in their place, the word ``due,''
0
b. Revise paragraph (e) to read as set forth below,
[[Page 15365]]
0
c. Redesignate paragraphs (f), (g), and (h) as (h), (i), and (j),
respectively,
0
d. Add paragraphs (f) and (g) to read as set forth below, and
0
e. Revise newly redesignated paragraph (i) to read as set forth below.
Sec. 1435.200 Information reporting.
* * * * *
(e) Importers of sugars, syrups, or molasses to be used for
domestic human consumption or to be used for the extraction of sugar
for domestic human consumption must report such information as CCC
requires, including the quantities of the products imported and the
sugar content or equivalent of the products.
(f) The Secretary will collect information on the production,
consumption, stocks and trade of sugar in Mexico and publish the data
in each edition of the World Agricultural Supply and Demand Estimates
report.
(g) The Secretary will collect publicly available information on
the production, consumption, and trade of high fructose corn syrup in
Mexico and publish the data in each edition of the World Agricultural
Supply and Demand Estimates report.
* * * * *
(i) By November 20 of each year, sugar beet processors, sugarcane
processors, sugarcane refiners, and importers of sugars, syrups, and
molasses, as selected by CCC, will submit to CCC a report, as specified
by CCC, from an independent Certified Public Accountant that reviews
its information submitted to CCC during the previous October 1 through
September 30 period.
* * * * *
Sec. 1435.201 [Amended]
0
12. Amend Sec. 1435.201 in paragraph (a) by removing the reference
``Sec. 1435.200'' and adding, in its place, the references ``Sec.
1435.200(a) through (e).''
Subpart D--Flexible Marketing Allotments for Sugar
0
13. Amend Sec. 1435.300 as follows:
0
a. Revise paragraphs (a)(1) and (b) to read as set forth below and
0
b. In paragraph (a)(2), remove the words ``domestically produced.''
Sec. 1435.300 Applicability.
(a) * * *
(1) Processor marketings of sugar domestically processed from sugar
beets or in-process beet sugar, whether such sugar beets or in-process
beet sugar were produced domestically or imported,
* * * * *
(b) This subpart does not apply to marketing imported raw or
refined sugar.
* * * * *
0
14. Amend Sec. 1435.301 as follows:
0
a. Revise paragraphs (a)(1) and (a)(4) to read as set forth below and
0
b. Amend paragraph (a)(3) by removing the words ``available for
consumption from'' and adding in their place the words ``used for human
consumption in the United States from.''
Sec. 1435.301 Annual estimates and quarterly re-estimates.
(a) * * *
(1) Quantity of sugar that will be subject to human consumption in
the United States during the crop year;
* * *
(4) Quantity of sugar that will be available from domestically
processed sugarcane, sugar beets, and in-process beet sugar; and
* * * * *
0
15. Revise Sec. 1435.302 and its heading to read as follows:
Sec. 1435.302 Establishment of allotments.
(a) By the beginning of the crop year, CCC will establish the
overall allotment quantity, beet sugar and cane sugar allotments, State
cane sugar allotments, and allocations for processors marketing sugar
domestically processed from sugarcane, sugar beets, or in-process beet
sugar, whether the sugar beets or in-process beet sugar is domestically
produced or imported at a level:
(1) That is sufficient to maintain raw and refined sugar prices
above minimum prices to avoid forfeiture of loans to the CCC, but
(2) Not less that 85 percent of estimated quantity of sugar for
domestic human consumption for the crop year.
(b) Determinations under this section to establish marketing
allotments will be published in the Federal Register and accompanied by
a statement of the reasons for the determination.
0
16. Remove Sec. 1435.303 and redesignate Sec. Sec. 1435.304 through
1435.308 as Sec. Sec. 1435.303 though 1435.307, respectively.
0
17. Amend newly redesignated Sec. 1435.303 by revising paragraphs (a)
and (b) to read as follows:
Sec. 1435.303 Adjustment of the Overall Allotment Quantity.
(a) The overall allotment quantity may be adjusted, as CCC
determines appropriate, but never to a quantity less than 85 percent of
the estimated quantity of sugar for domestic human consumption for the
crop year:
(1) To avoid forfeiture of sugar loan collateral to CCC,
(2) Ensure adequate supplies of raw and refined sugar in the
domestic market, and,
(3) To reflect changes in estimated sugar consumption, stocks,
production, or imports based on re-estimates under Sec. 1435.301.
(b) Determinations to adjust the overall allotment quantity will be
published in the Federal Register and accompanied by a statement of the
reasons for the determination.
* * * * *
Sec. 1435.305 [Amended]
0
18. Amend newly redesignated Sec. 1435.305, in paragraph (b), by
removing the reference ``Sec. 1435.308(f)'' and adding, in its place,
the reference ``Sec. 1435.308.''
0
19. Amend newly redesignated Sec. 1435.306 as follows:
0
a. In paragraph (a) introductory text, add the words ``, other than a
new entrant's,'' before the words ``of the beet allotment,''
0
b. Revise paragraphs (b), (e) introductory text, (e)(1), and (e)(2) to
read as set forth below,
0
c. Revise paragraph (g) to read as set forth below, and
0
d. Add paragraph (h) to read as set forth below.
Sec. 1435.306 Allocation of marketing allotments to processors.
* * * * *
(b) Each sugarcane processor's, other than a new entrant's,
allocation from a State cane sugar allotment will be calculated as the
cane processor's share times the State cane sector allotment.
(1) Each cane processor's share will be calculated as the
processor's production base divided by the sum of the State's processor
production bases.
(2) A processor's production base is the sum of 0.50 times its
ability to market plus 0.25 times its past processings plus 0.25 times
its past marketings. These weights may be adjusted as CCC deems
appropriate for the crop year.
* * * * *
(e) Paragraph (d) of this section will not apply to:
(1) Any sugar marketings to facilitate the export of sugar or
sugar-containing products as long as such exports are not eligible to
receive credits under reexport programs administered by the Foreign
Agricultural Service for refined sugar or sugar-containing products;
(2) Any sugar marketings for nonhuman consumption, except for the
sale of sugar for the production of ethanol or other bioenergy under
the
[[Page 15366]]
Feedstock Flexibility program or the sale of sugar for the production
of polyhydric alcohol under the Polyhydric Alcohol program administered
by the Foreign Agricultural Service; and
* * * * *
(g) Paragraph (d) of this section also will not apply to the
marketing of beet sugar processed from purchased in-process beet sugar
if the processor purchased the in-process beet sugar before October 1,
2008.
(h) A sugar beet processor allocated a share of the beet sugar
allotment may use only beet sugar to fill such allocation. A sugarcane
processor allocated a share of the cane sugar allotment may only use
cane sugar to fill such allocation.
0
20. Revise newly redesignated Sec. 1435.307 to read as follows:
Sec. 1435.307 Transfer of allocation.
(a) If a sugarcane processing facility is sold or transferred to
another owner or is closed as part of a corporate consolidation CCC
will transfer the allotment allocation to the purchaser or successor.
(b) In proportionate share States, allocations, based on the number
of acres of sugarcane base being transferred and the pro rata amount
reflecting the grower's contribution to allocation of the processor for
the sugarcane base being transferred, will be transferred between
facilities if the transfers are based on:
(1) Written consent of the crop-share owners, or their
representatives,
(2) Written certification from the processor that will accept the
additional sugarcane deliveries that its processing capacity will not
be exceeded,
(3) CCC will only consider requests for transfer of allocation
submitted during the month of May. The request must include the
grower's sugar production history for crop years 1997 through 2003. The
facility with the grower's history will be required to certify the
history when requested by the grower, and
(4) Allocation transfers will be effective for the next fiscal year
after the request is submitted to CCC, that is beginning October 1.
(c) If a sugar beet processing facility or a sugarcane processing
facility located in a non-proportionate share State is closed, and the
growers that delivered their crops to the closed facility elect to
deliver their crops to another processor, the growers may petition the
Executive Vice President, CCC, to transfer their share of the
allocation from the processor that closed the facility to their new
processor. If CCC approves transfer of the allocations, it will
distribute the closed facility's allocation based on the contribution
of the growers' production history to the closed facility's allocation.
CCC may grant the allocation transfer upon:
(1) Written request by a grower to transfer allocation,
(2) Written approval of the processor that will accept the
additional deliveries,
(3) Evidence satisfactory to CCC that the new processor has the
capacity to accommodate the production of petitioning growers, and
(4) Determinations by the CCC will be made within 60 days after the
filing of the petition.
(d) Subject to a transfer of allocation, if any, described in
paragraph (c) of this section being completed, CCC will consider a
processor to be permanently terminated and eliminate the processor's
remaining allocation and distribute it to all other processors on a
pro-rata basis when the processor:
(1) Has been dissolved,
(2) Has been liquidated in a bankruptcy proceeding,
(3) Has not processed sugarcane or sugar beets for 2 consecutive
crop years,
(4) Has notified CCC that the processor has permanently terminated
operations, or
(5) Has been determined by CCC to have permanently terminated
operations.
(e) If a processor of beet sugar purchases all the assets of
another processor, then CCC will immediately transfer allocation
commensurate with the purchased facilities' production history, unless
the allocation has already been transferred under paragraph (d) of this
section.
(f) If a processor of beet sugar purchases some, but not all, of
the assets of another processor, then CCC will assign a pro rata
portion of the allocation to the buyer to reflect the historical
contribution of the sold facilities, unless the buyer and seller have
agreed upon a different allocation amount.
(1) The assignment of the allocation will apply to the crop year in
which the sale occurs and for each subsequent year.
(2) The buyer of the facilities as specified in paragraph (e) of
this section may fill the assigned allocation with production from
other facilities it owns if the purchased facilities lack the
production to fill the assigned allocation.
0
21. Add Sec. 1435.308 to read as follows:
Sec. 1435.308 New entrants.
(a) The Secretary may assign a new entrant sugarcane processor an
allocation that provides a fair, efficient, and equitable distribution
of allocations:
(1) Applicants must demonstrate their ability to process, produce,
and market sugar for the applicable crop year,
(2) CCC will consider any adverse effects of the allocation upon
existing processors and producers,
(3) CCC will conduct a hearing on a new entrant application if an
interested processor or grower requests a hearing,
(4) A new entrant's allocation is limited to no more than 50,000
short tons, raw value, for the first crop year, and
(5) A new entrant will be provided, as determined by CCC:
(i) A share of its State's cane allotment if the processor is
located in Hawaii, Florida, Louisiana, or Texas or
(ii) A share of the overall mainland cane allotment if the
processor is located in any mainland State not listed in paragraph
(a)(5)(i) of this section.
(b) For proportionate share States, CCC will establish
proportionate shares for the sugarcane required to fill the allocation.
(c) If a new entrant beet processor constructs a new facility or
reopens a facility that currently has no allocation, but last produced
beet sugar from sugar beets and sugar beet molasses prior to the 1998
crop year, CCC will:
(1) Assign an allocation to the new entrant to enable it to achieve
a facility utilization rate comparable to other similarly-situated
sugar beet processors and
(2) Reduce all other beet processor allocations by a like amount on
a pro rata basis.
(d) If a new entrant acquires an existing facility with production
history that processed sugar beets for the 1998 or subsequent crop
year, CCC will:
(1) Assign the allocation to the buyer to reflect the historical
contribution of the sold facilities, unless the buyer and seller have
agreed upon a different allocation amount, or
(2) If the new entrant and the processor holding the allocation of
the existing facility cannot agree on an allocation amount, the new
entrant will be denied a beet sugar allocation.
Sec. 1435.309 [Amended]
0
22. Amend Sec. 1435.309, paragraphs (c)(4) and (e)(3), by adding the
words ``of raw cane sugar'' at the end of each paragraph.
0
23. Amend Sec. 1435.310 as follows:
0
a. In paragraph (b)(1)(i)(A), add the word ``or'' at the end,
0
b. In paragraph (b)(1)(i)(B), remove the word ``or'',
[[Page 15367]]
0
c. Remove paragraph (b)(1)(i)(C) and
0
d. Remove paragraph (b)(2) and redesignate paragraph (b)(3) as
paragraph (b)(2).
Sec. 1435.312 [Amended]
0
24. Amend Sec. 1435.312, paragraph (a), first sentence, by adding the
words ``(meaning only those varieties dedicated to the production of
sugarcane to produce sugar for human consumption)'' immediately after
the word ``seed.''
0
25. Amend Sec. 1435.313 as follows:
0
a. Redesignate paragraphs (b) and (c) as paragraphs (a)(1) and (a)(2),
respectively, and
0
b. Add paragraph (b) to read as set forth below:
Sec. 1435.313 Permanent transfer of acreage base histories under
proportionate shares.
* * * * *
(b) Sugarcane acreage base that has been converted to
nonagricultural use on or before May 13, 2002, may be transferred to
other land suitable for the production of sugarcane under the following
terms:
(1) CCC must notify 1 or more affected landowners within 90 days of
becoming aware of the conversion, of their rights to transfer the base
to 1 or more farms owned by the landowner;
(2) The landowner has 90 days from the date the landowner was
notified to transfer the base;
(3) If the landowner does not exercise this transfer right, the
grower of record will have 90 days after being notified by CCC to
transfer the base to 1 or more farms owned by the grower;
(4) If the transfers as specified under paragraphs (b)(2) or (3) of
this section are not accomplished during the specified periods, FSA
county committee will place the base into a pool for possible
reassignment to other farms;
(5) After providing notice to farm owners, operators and growers of
record in the county, the committee will accept requests from farm
owners, operators, and growers in the county;
(6) The county committee will assign the base to other sugarcane
farms in the county that are eligible and capable of accepting the
acreage base, based on a random drawing among requests received under
paragraph (b)(5) of this section;
(7) Any unassigned base will be made available to the State FSA
committee and be allocated to remaining FSA county committees in the
State representing counties with farms eligible for assignment of the
base, based on a random drawing; and
(8) After the acreage base has been reassigned, the acreage base
will remain on the farm and subject to the transfer provisions of
paragraph (a) of this section.
0
26. Amend Sec. 1435.318 as follows:
0
a. Revise paragraph (a) to read as set forth below,
0
b. Redesignate paragraphs (b) through (e) as paragraphs (c) through
(f), respectively, and
0
c. Add paragraph (b) to read as set forth below.
Sec. 1435.318 Penalties and assessments.
(a) Any sugar beet or sugarcane processor who knowingly markets
sugar or sugar products in excess of the processor's allocation will be
liable to CCC for a civil penalty in an amount equal to 3 times the
U.S. market value, at the time the violation was committed, of that
quantity of sugar involved in the violation.
(b) CCC may assess liquidated damages, as specified in a surplus
allocation survey and agreement, with respect to a surplus allocation
still existing after the end of a crop year if the processor had a
surplus allocation because the processor provided incomplete or
erroneous information to CCC.
Subpart E--[Redesignated and Reserved]
0
27. Redesignate subpart E, consisting of Sec. Sec. 1435.400 through
1435.405, as subpart F and reserve subpart E.
Subpart F--Processor Sugar Payment-In-Kind (PIK) Program
Sec. Sec. 1435.400 through 1435.405 [Amended]
0
28. In newly redesignated subpart F, redesignate Sec. Sec. 1435.400
through 1435.405 as Sec. Sec. 1435.500 through 1435.505, respectively.
Subpart G--[Added and Reserved]
0
29. Reserve subpart G.
Signed at Washington, DC, on March 31, 2009.
Dennis J. Taitano,
Acting Executive Vice President, Commodity Credit Corporation.
[FR Doc. E9-7633 Filed 4-3-09; 8:45 am]
BILLING CODE 3410-05-P