[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: 7CFR1435.310]

[Page 573-574]
 
                          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.  1435.310  Sharing processors' allocations with producers.

    (a) Every sugar beet and sugarcane processor must provide CCC a 
certification that:
    (1) The processor intends to share its allocation among its 
producers fairly and equitably, and in a manner adequately reflecting 
each producer's production history, and
    (2) The processor has, in the previous allotment year, shared its 
allocation among producers fairly and equitably, reflecting each 
producer's production history. If a processor is unable to provide such 
certification, CCC may reduce or eliminate its marketing allocation.
    (b) CCC will determine that a processor in a proportionate share 
state has met the conditions of paragraph (a) of this section if the 
processor establishes a grower payment plan that incorporates the 
following provisions:
    (1) Pays growers for sugar from their delivered sugarcane in the 
following priority:
    (i) Sugar production from proportionate share acreage; as 
established under Sec.  1435.311, for producers determined by CCC, who;
    (A) Delivered to the mill in at least one of the crop years 1999, 
2000, or 2001,
    (B) Obtained an allocation transfer from a predecessor mill, or

[[Page 574]]

    (C) Have been designated by the mill to supply sugarcane replacing 
sugarcane lost to the mill since the 2001 crop year,
    (ii) Sugar production from base acreage, as established under Sec.  
1435.312, but exclusive of the acreage described in paragraph (b)(1)(i) 
of this section, for producers who meet the requirements of paragraph 
(b)(1)(i) of this section, then
    (iii) All other sugar production.
    (2) If a mill cancels a producer's contract, the mill must permit 
the producer to move an allocation commensurate with the producer's 
production history to a mill of the producer's choice.
    (3) In determining the payment priority, a processor may aggregate 
the acreage of an operator (producer making the crop production 
decisions) across all the operator's farms delivering cane to the 
processor.
    (c) CCC will determine that a processor not in a proportionate share 
state, which is cooperatively owned by producers, has met the conditions 
of paragraph (a) of this section if the processor shares its allocation 
with its producers according to its cooperative membership agreement.
    (d) CCC will disclose farm base and reported acres data in a 
proportionate share state to processors upon their request for growers 
delivering to their mill. In the case of multiple producers on a farm or 
growers delivering to more than one mill, subject mills will be 
responsible for coordinating proportionate share data.
    (e) Any producer or processor may request arbitration of a dispute 
regarding the sharing of the processor's allocation among the producers. 
Arbitration will be available on behalf of CCC at the State FSA office 
for the State in which the processor is located. Subsequent review of 
the arbitration decision is available at the discretion of the Executive 
Vice President, CCC. Any arbitration is subject to appeal to the Office 
of the Administrative Law Judge, USDA.

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