[Federal Register Volume 69, Number 188 (Wednesday, September 29, 2004)]
[Notices]
[Pages 58121-58122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21771]


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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: <a href="/cdn-cgi/l/email-protection#cdafacbfafacbface3aba8aebea28db8bea9ace3aaa2bb"><span class="__cf_email__" data-cfemail="6a080b18080b180b440c0f0919052a1f190e0b440d051c">[email protected]</span></a>.

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  .................  .................
                                     --------------------
    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


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