[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1435.307]

[Page 570-571]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1435_SUGAR PROGRAM--Table of Contents
 
            Subpart D_Flexible Marketing Allotments For Sugar
 
Sec.  1435.307  Allocation of marketing allotments to processors.

    (a) Each sugar beet processor's allocation of the beet allotment 
will be calculated as the beet processor's share times the beet sector 
allotment:
    (1) A beet processor's share is calculated as the beet processor's 
adjusted weighted average sugar production divided by the sum of all 
beet processors' adjusted weighted average sugar production.
    (2) A beet processor's weighted average sugar production equals 0.25 
times its 1998-crop sugar production plus 0.35 times its 1999-crop sugar 
production

[[Page 571]]

plus 0.40 times its 2000-crop sugar production, with the 2000 sugar PIK 
payments added to its 2000-crop sugar production.
    (3) A beet processor's weighted average sugar production shall be 
adjusted by the following, as CCC determines:
    (i) Increased 1.25 percent of the sum of all beet processors' 
weighted average sugar production for opening a sugar beet processing 
factory during the 1996 through 2000 crop years;
    (ii) Decreased 1.25 percent of the sum of beet processors' weighted 
average sugar production for closing a sugar beet processing factory 
during the 1998 through 2000 crop years:
    (iii) Increased 0.25 percent of the sum of all beet processors' 
weighted average sugar production for opening a molasses desugarization 
facility during the 1998 through 2000 crop years; and
    (iv) Increased 1.25 percent of the sum of all beet processors' 
weighted average sugar production for suffering a substantial quality 
loss on stored beets, as CCC determines, during the 1998 through 2000 
crop years.
    (b) Each sugarcane processors' 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, other than a new entrant, 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, other than a new entrants, 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.
    (3) CCC will calculate an allocation for the Talisman processing 
facility, based on paragraph (b)(2) of this section and distribute the 
allocation among Florida processors according to the agreements between 
cane processors and the Secretary of the Interior dated March 25, and 
March 26, 1999.
    (c) An informal hearing will be held in August of each year, if 
requested by affected sugarcane processors and growers by July 15th, to 
afford all interested persons the opportunity to comment on the next 
crop year's marketing allotments and allocations. After consideration of 
comments obtained at the hearing, a final determination on cane State 
allotments and processor allocations will be announced.
    (d) During any crop year in which marketing allotments are in effect 
and allocated to processors, the quantity of sugar and sugar products 
that a processor markets shall not exceed the quantity of the 
processor's allocation.
    (e) Paragraph (d) of this section shall not apply to:
    (1) Any sugar marketings to facilitate the export of sugar or sugar-
containing products;
    (2) Any sugar marketings for nonhuman consumption; and
    (3) Any processor marketings of sugar to another processor made to 
enable the purchasing processor to fulfill its allocation if such sales;
    (i) Are made before May 1, and
    (ii) Reported to CCC within 51 days of the date of sale.
    (f) Paragraph (d) of this section also shall not apply to marketings 
of purchased sugar marketed in the crop year of the purchase, but does 
apply to marketings of sugar purchased as part of a transaction pursuant 
to paragraph (e)(3) of this section.
    (g) CCC may charge liquidated damages, as specified in a surplus 
allocation survey and agreement, on surplus allocation after the end of 
a crop year if the processor had surplus allocation because the 
processor provided incomplete or erroneous information to CCC.

[67 FR 54926, Aug. 26, 2002, as amended at 69 FR 39813, July 1, 2004]