[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: 7CFR1435.308]

[Page 571-572]
 
                          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.  1435.308  Transfer of allocation, new entrants.

    (a) If a sugar beet or sugarcane processing facility 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 
mill's allocation based on the contribution of the growers' production 
history to the closed mill's allocation.

[[Page 572]]

CCC may grant the allocation transfer upon:
    (1) Written request by a grower to transfer allocation,
    (2) Written approval of the processing company that will accept the 
additional deliveries, and
    (3) Evidence satisfactory to CCC that the new processor has the 
capacity to accommodate the production of petitioning growers.
    (b) Subject to a transfer of allocation, if any, described in 
paragraph (a) of this section being completed, CCC will permanently 
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, or
    (3) Has permanently terminated operations by:
    (i) Not processing sugarcane or sugar beets for 2 consecutive years, 
or
    (ii) Notifying CCC that the processor has permanently terminated 
operations.
    (c) If a purchaser purchasing the assets of another processor is a 
new entrant or is a processor purchasing all the assets of the selling 
processor, then CCC shall immediately transfer allocation commensurate 
with the purchased factories' production history.
    (d) If a processor does not purchase all of the assets of another 
processor, then the purchased factories must operate for the remainder 
of the initial season and the following crop year for the purchasing 
processor to permanently obtain the allocation. If the purchased 
factories do not operate for this required time period, CCC shall 
reassign the allocation to the other processors on a pro rata basis.
    (e) Allocations, equal to the number of acres of proportionate 
shares being transferred times the State's per-acre yield goal, will be 
transferred between mills in proportionate share States, if the 
transfers are based on:
    (1) Written consent of the crop-share owners, or their 
representatives,
    (2) Written consent of the processing company holding the allocation 
for the subject proportionate shares,
    (3) Written consent of the processing company that will accept the 
additional sugarcane deliveries, and
    (4) Evidence, satisfactory to CCC, that the additional sugarcane 
deliveries will not exceed the processing capacity of the receiving 
company.
    (f) New entrants, not acquiring existing facilities with production 
history in the base period, may apply to the Executive Vice President, 
CCC, for an allocation.
    (1) Applicants must demonstrate their ability to process, produce, 
and market sugar for the applicable crop year.
    (2) CCC will consider adverse effects of the allocation upon 
existing processors and producers.
    (3) New entrant cane processors are limited to 50,000 short tons, 
raw value, the first crop year.
    (4) New entrant cane processors will be provided, as determined by 
CCC:
    (i) A share of their State's cane allotment if the processor is 
located in Hawaii, Puerto Rico, Florida, Louisiana, or Texas, or
    (ii) A share of the overall cane allotment if the processor is 
located in any state not listed in paragraph (f)(4)(i) of this section.
    (5) CCC will conduct a hearing on a new entrant application if an 
interested processor or grower requests a hearing.
    (6) If a new entrant acquires and reopens a factory that previously 
produced beet sugar from sugar beets and sugar beet molasses, but the 
factory last operated during the 1997 crop year, CCC will:
    (i) Assign an allocation to the new entrant not less than the 
greater of 1.67 percent of the adjusted weighted average quantities of 
beet sugar produced by all processors during the 1998 through 2000 crop 
years, as determined under Sec.  1435.307, or 1,500,000 hundredweight.
    (ii) Reduce all other beet processor allocations on a pro rata 
basis.

[69 FR 39813, July 1, 2004, as amended at 69 FR 48765, Aug. 11, 2004; 71 
FR 16201, Mar. 31, 2006]