[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: 7CFR1435.309]

[Page 572-573]
 
                          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.  1435.309  Reassignment of deficits.

    (a) CCC will determine, from time to time, whether sugar beet or 
sugarcane

[[Page 573]]

processors will be unable to market their allocations.
    (b) Sugar beet and sugar cane processors will report to CCC current 
inventories, estimated production, expected marketings, and any other 
pertinent factors CCC deems appropriate to determine a processor's 
ability to market their allocation.
    (c) If CCC determines a sugarcane processor will be unable to market 
its full allocation for the crop year in which an allotment is in 
effect, the deficit will be reassigned as follows:
    (1) First, to allocations of other sugarcane processors within that 
State based on each processor's initial allocation share of the State's 
allotment, but no processor may receive reassigned allocation such that 
its allocation exceeds its estimated total sugar supply.
    (2) If the deficit cannot be eliminated after reassignment within 
the same State, be reassigned to the other cane States based on each 
State's initial share of the cane sugar allotment, but no State may 
receive reassigned State allotment such that its allocation exceeds its 
estimated total sugar supply, with the reassigned quantity to each State 
being allocated according to paragraph (c)(1) of this section.
    (3) If the deficit cannot be eliminated by paragraphs (c)(1) and 
(c)(2) of this section, be reassigned to CCC. CCC shall sell such 
quantity from inventory unless CCC determines such sales would have a 
significant effect on the sugar price.
    (4) If any portion of the deficit remains after paragraphs (c)(1), 
(c)(2), and (c)(3) of this section have been implemented, be reassigned 
to imports.
    (d) The initial estimate of the sugarcane deficit will be reassigned 
by June 1. CCC will conduct later reassignments if CCC determines, after 
June 1, that a sugarcane processor will be unable to market its full 
allocation.
    (e) If CCC determines that a sugar beet processor is unable to 
market its full allocation for the crop year in which an allotment is in 
effect, the deficit will:
    (1) First, be reassigned proportionately to allocations of other 
sugar beet processors, depending on the capacity of other processors to 
fill the portion of the deficit to be reassigned to them, accounting for 
the interests of associated producers.
    (2) If the deficit cannot be eliminated by paragraph (e)(1) of this 
section, be reassigned to CCC. CCC shall sell such quantity from 
inventory unless CCC determines such sales would have a significant 
effect on the sugar price.
    (3) If any portion of the deficit remains after paragraphs (e)(1) 
and (e)(2) of this section have been implemented, be reassigned to 
imports.
    (f) The crop year allocation of each sugar beet or sugarcane 
processor who receives a reassignment will be increased accordingly for 
that year.

[67 FR 54928, Aug. 26, 2002, as amended at 69 FR 55063, Sept. 13, 2004; 
69 FR 58037, Sept. 29, 2004; 70 FR 28181, May 17, 2005]