[Federal Register: September 29, 2004 (Volume 69, Number 188)]
[Notices]
[Page 58121-58122]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se04-31]
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DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Domestic Sugar Program--2003 Crop Cane Sugar and Sugar Beet
Marketing Allotments and Company Allocations
AGENCY: Commodity Credit Corporation, USDA.
ACTION: Notice.
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SUMMARY: The Commodity Credit Corporation (CCC) is issuing this notice
which sets forth the establishment and adjustments to the sugar overall
allotment quantity for the 2003 crop year (FY 2004), which runs from
October 1, 2003 through September 30, 2004. Although CCC already has
announced all of the information in this notice, CCC is statutorily
required to publish in the Federal Register determinations establishing
or adjusting sugar marketing allotments. CCC set the 2003 crop overall
allotment quantity (OAQ) of domestic sugar to 8.550 million short tons
raw value (STRV) on August 13, 2003. On September 30, 2003, CCC
allocated only 96.5% of this amount, resulting in a beet sugar sector
allotment of 4.484 million STRV and a cane sugar sector allotment of
3.766 million STRV. At that time, CCC also announced the allotments to
cane-producing States and allocations to cane and beet sugar processors
and set the proportionate share requirement on Louisiana cane sugar
producers for the 2003 crop at 84.2 percent. On April 9, 2004, CCC
officially reduced the OAQ to 8.250 million STRV and revised State cane
sugar allotments and cane sugar processor allocations to reflect
updated FY 2004 raw cane production forecasts. On July 22, 2004, CCC
revised State cane sugar allotments to reflect further updated raw cane
production forecasts.
ADDRESSES: Barbara Fecso, Dairy and Sweeteners Analysis Group, Economic
Policy and Analysis Staff, Farm Service Agency, USDA, 1400 Independence
Avenue, SW., STOP 0516, Washington, DC 20250-0516; telephone (202) 720-
4146; FAX (202) 690-1480; e-mail: barbara.fecso@usda.gov.
FOR FURTHER INFORMATION CONTACT: Barbara Fecso at (202) 720-4146.
SUPPLEMENTARY INFORMATION: Section 359b(b)(1) of the Agricultural
Adjustment Act of 1938, as amended (7 U.S.C. 1359bb(a)(1)), requires
the Secretary to establish, by the beginning of each crop year, an
appropriate allotment for the marketing by processors of sugar
processed from sugar beets and from domestically produced cane sugar at
a level the Secretary estimates will result in no
[[Page 58122]]
forfeitures of sugar to the CCC under the loan program. When CCC
announced a 8.550 million ton OAQ in August 2003, it noted the
existence of sugar market uncertainties and that the OAQ could be
adjusted if warranted. The September 11, 2003, USDA World Agricultural
Supply and Demand Estimates forecast substantially decreased total use
in FY 2003 and FY 2004. Consequently, the FY 2004 free ending stocks-
to-use ratio increased to 17.4 percent, up from 15.1 percent when the
OAQ was established. Free ending stocks refer to the portion of stocks
that are permitted to be sold under the sugar marketing allotment
program. In response, CCC allocated 96.5 percent of the OAQ in
September 2003 to reduce the free ending stocks-to-use ratio closer to
levels associated with a more balanced market. In April 2004, CCC
reevaluated estimates of sugar consumption, stocks, production, and
imports and determined that 3.5 percent of the OAQ, or 300,000 tons,
that was not allocated in September would not be needed for a balanced
market in FY 2004. Thus, the official OAQ was reduced by 300,000 tons.
In July 2004, CCC again revised State cane sugar allotments to reflect
updated production estimates.
To establish cane state allotments, weights of 25 percent, 25
percent, and 50 percent, respectively, are assigned to the three-factor
criteria: Past marketings; processing capacity; and ability to market.
Because Puerto Rice forecast zero production for the 2003 crop, its FY
2004 allotment was reassigned to all other cane processors based on
their respective three-factor proportionate shares.
Proportionate shares relative to the acreage of cane sugar that may
be harvested in Louisiana for sugar or seed is set at 84.2 percent of
each farm's cane sugar acreage base. These actions apply to all
domestic sugar marketed for human consumption in the United States from
October 1, 2003, through September 30, 2004.
The established 2003 crop beet and cane sugar marketing allotments
are listed in the following table, along with the adjustments that have
occurred since:
FY 2004 Overall Beet/Cane Allotments--Establishment and Adjustments
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August 13, 2003 September 30,
announcement 2003 announcement April 9, 2004 July 22, 2004
establishing FY04 revising FY04 announcement announcmeent
allotments at allotments to adjusting FY04 adjusting FY04
8,550,000 STRV 8,250,000 STRV allotments allotments
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Beet sugar.......................... 4,646,925 4,483,875 ................. .................
Cane sugar.......................... 3,903,075 3,766,124 ................. .................
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Total OAQ....................... 8,550,000 8,250,000 ................. .................
State cane sugar alltoments:
Florida............................. ................. 1,877,086 1,910,863 1,949,112
Louisiana........................... ................. 1,411,954 1,376,626 1,403,800
Texas............................... ................. 157,617 159,230 157,256
Hawaii.............................. ................. 319,468 319,406 255,956
Puerto Rico......................... ................. 0 0 0
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Signed in Washington, DC on September 3, 2004.
James R. Little,
Executive Vice President, Commodity Credit Corporation.
[FR Doc. 04-21771 Filed 9-28-04; 8:45 am]
BILLING CODE 3410-05-P