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 Department of Agriculture Commodity Credit Corporation
 AGENCY: Commodity Credit Corporation, USDA.
 ACTION: Notice.
 SUMMARY: The Commodity Credit Corporation (CCC) is issuing this notice to publish the modifications to the fiscal year 2010 (FY 2010) State sugar marketing allotments and company allocations to sugarcane and sugar beet processors. This applies to all domestic sugar marketed for human consumption in the United States from October 1, 2009, through September 30, 2010. CCC is also issuing this notice to publish the 
                        ( print page 60716)
                        FY 2011 State sugar marketing allotments and company allocations to sugarcane and sugar beet processors, which apply to all domestic sugar marketed for human consumption in the United States from October 1, 2010, through September 30, 2011. Although CCC already has announced most of the information in this notice through United States Department of Agriculture (USDA) news releases, CCC is required to publish the determinations establishing and adjusting sugar marketing allotments in the 
                        **Federal Register.**
 FOR FURTHER INFORMATION CONTACT: Barbara Fecso, Dairy and Sweeteners Analysis Group, Economic and Policy Analysis Staff, Farm Service Agency, USDA, 1400 Independence Avenue, SW., Mail Stop 0516, Washington, DC 20250-0516; telephone (202) 720-4146; FAX (202) 690-1480; e-mail: 
                        *barbara.fecso@wdc.usda.gov.*


SUPPLEMENTARY INFORMATION:  Initial FY 2010 State Allotments and Company Allocations On September 25, 2009, CCC established the initial FY 2010 allocation of the sugar overall allotment quantity (OAQ) at 9,235,250 short tons, raw value (tons). As required by the Agricultural Adjustment Act of 1938, as amended, the sugar beet sector was allotted 54.35 percent of the OAQ (5,019,358 tons), while the cane sugar sector was allotted 45.65 percent (4,215,892 tons). CCC distributed the sector allotments among domestic sugar beet and sugarcane processors according to the statute and the regulations in 7 CFR part 1435 and made several structural changes in the allocation to certain sugarcane processors. CCC combined the Louisiana cane sugar allocations of Alma Plantation, L.L.C, Cajun Sugar Cooperative, Inc., Cora-Texas Mfg. Co. Inc., Lafourche Sugars, L.L.C., Louisiana Sugar Cane Cooperative, Inc., Lula-Westfield, L.L.C. and St. Mary Sugar Cooperative, Inc. into one allocation under the name of Louisiana Sugar Cane Products, Inc. (LSCPI). CCC also modified the FY 2010 cane sugar allocations of mills in Louisiana to reflect grower petitions to transfer allocation commensurate with their cane deliveries to the new mill of their choice. CCC permanently transferred allocations between Louisiana mills for those growers whose petitions met all CCC requirements. However, for those growers whose petitions did not meet all CCC requirements, CCC temporarily increased the FY 2010 allocations of the recipient mills specified in the petitions. Surplus allocation from Hawaii was reassigned to these recipient mills (see below). The allocations of the mills which the growers asked to leave were not reduced. In FY 2004, CCC determined that Puerto Rican processors permanently terminated operations because no sugar had been processed for two complete years. The Puerto Rico allocation of 6,356 tons was reassigned to Hawaii in FY 2010, as required, and then further reassigned to the mainland sugarcane-producing States. This reassignment will also occur in FY 2011 as Hawaii is again not expected to use all of its cane sugar allotment. First Revision to the FY 2010 Sugar Marketing Allotment Program The May 7, 2010, announcement of sugar marketing allotment changes implemented CCC's reassignment of 200,000 tons of surplus cane sugar allotments to imports, announced on April 23, 2010. The May 7, 2010, revisions included a reassignment of projected surplus beet sugar marketing allocations under the FY 2010 Sugar Marketing Allotment Program from beet sugar processors with surplus allocation to those with deficit allocation. Further, CCC noted the addition of the allocation of Wyoming Sugar Company, LLC (WSC) to the allocation of Minn-Dak Farmers Cooperative (MDFC). This was done in accordance with section 359d(b)(2)(G) of the Agricultural Adjustment Act of 1938, as amended (7 U.S.C. 1359dd(b)(2)(G)) to reflect MDFC's purchase of WSC's Worland, WY, factory in December 2009. Second Revision to the FY 2010 Sugar Marketing Allotment Program USDA revised cane processor allocations, and cane State allotments, on August 19, 2010, to implement the July 6, 2010, reassignment of 300,000 tons of surplus domestic cane sugar allotment to a raw Tariff Rate Quota (TRQ) import increase. Since all cane processors were still expected to have more allocation than could be fulfilled by domestically-produced cane sugar in FY 2010, CCC reassigned an additional 200,000 tons of surplus cane allotment to raw cane sugar imports already expected from non-TRQ sources. With respect to the beet sector, CCC on August 19, 2010 reassigned surplus beet sector allotment from beet processors not expected to fill their allocation to beet processors still requiring allocation to market all their FY 2010 supply. CCC then determined that 170,000 tons of beet sugar allotment could not be filled by the beet sector and the surplus was reassigned to raw cane sugar imports already expected from non-TRQ sources. In total, CCC reassigned 670,000 tons of surplus beet and cane sugar allotments to raw cane sugar imports—300,000 tons to an increase in the raw sugar tariff-rate quota per the July 6, 2010, announcement and 370,000 tons to raw cane sugar imports already expected from non-TRQ sources on August 19th. Final FY 2010 beet and cane sector allotments were reduced to 4,849,358 and 3,515,892 tons, respectively. Initial FY 2011 Sugar Marketing Allotments and Processor Allocations On August 19, 2010, CCC further announced the initial FY 2011 OAQ of 9,235,250 tons, the same level as FY 2010, as well as sugar beet and sugarcane sector allotments and allocations. Establishing the OAQ at this level will supply over 85 percent of expected FY 2011 domestic sugar needs and permit domestic sugarcane and sugar beet processors to market all of their expected sugar production in FY 2011. Processors are expected to be able to market all of their expected production in FY 2011 because the market is expected to be firm—domestic demand is projected to be strong relative to available supplies and prices are expected to remain firm. Due to this expected firm market situation, CCC announced that it would not implement the Feedstock Flexibility Program (FFP) or the Louisiana Proportionate Share Program for FY 2011. CCC also established a beet allocation for a new beet processor who acquired an existing factory with production history. On August 19, 2010, CCC distributed the FY 2011 beet sugar allotment of 5,019,358 tons (54.35 percent of the OAQ) among the sugar beet processors and the cane sugar allotment of 4,215,892 tons (45.65 percent of the OAQ) among the sugarcane States and processors, as required by the Agricultural Adjustment Act of 1938, as amended. The accompanying table is identical to the August 19 allotments. The allotments recognize the sale by Minn-Dak Farmers Cooperative (MDFC) of its beet processing factory located in Worland, Wyoming to Wyoming Sugar Growers, LLC (WSG). As a result, 0.8373168 percent of the total beet sugar marketing allotment and the associated production history will be transferred from MDFC to WSG, effective October 1, 2010. In addition, the allotments reflect reassignment of Puerto Rico's allocation of 6,356 tons to Hawaii, and then further reassignment to the mainland sugarcane-producing States, because Hawaii is not expected to use all of its cane sugar allotment.
                    ( print page 60717) The summary of the FY 2010 beet and cane sugar marketing allotments and processor allocations are listed in the following table: FY 2010 Overall Beet/Cane Allotments And Allocations
Distribution
Initial FY 2010 allocation 
                             9/28/09
Revisions
                             5/7/10
Revisions
                             8/19/10
Final FY 10
                             allocationsShort tons, raw valueBeet Sugar
5,019,358
0
−170,000
4,849,358Cane Sugar
4,215,892
−200,000
−500,000
3,515,892Reassignment to Raw TRQ Imports
0
200,000
670,000
870,000Total OAQ
9,235,250
0
0
9,235,250Beet Processors' Marketing:Amalgamated Sugar Co
1,074,683
−17,362
14,327
1,071,647American Crystal Sugar Co
1,850,519
−51,420
−111,798
1,687,301Michigan Sugar Co
518,377
69,779
−9
588,146Minn-Dak Farmers Co-op
321,805
51,988
−41,244
332,549So. Minn Beet Sugar Co-op
677,454
−21,949
−36,773
618,731Western Sugar Co
507,709
37,777
5,498
550,984Wyoming Sugar Co
68,812
−68,812Total Beet Sugar
5,019,358
0
−170,000
4,849,358State Cane Sugar Allotments:Florida
2,094,682
−110,880
−309,097
1,674,705Louisiana
1,623,713
−42,407
−20,877
1,560,429Texas
182,094
−3,728
−62,650
115,716Hawaii
315,403
−42,986
−107,376
165,042Total Cane Sugar
4,215,892
−200,000
−500,000
3,515,892**Cane Processors' Marketing**Florida:Florida Crystals
862,435
−58,572
−163,122
640,742Growers Co-op of Florida
376,802
−15,331
−42,735
318,737U.S. Sugar Corp
855,444
−36,977
−103,241
−715,226Total Florida
2,094,682
−110,880
−309,097
1,674,705LouisianaLouisiana Sugar Cane Products, Inc.
1,128,210
−19,479
−16,579
1,092,152M.A. Patout & Sons
495,502
−22,928
−4,298
−468,276Total Louisiana
1,623,713
−42,407
−20,877
1,560,429TexasRio Grande Valley
182,094
−3,728
−62,650
115,716HawaiiGay & Robinson, Inc
72,401
−18,673
−50,592
3,136Hawaiian Commercial & Sugar Company
243,002
−24,313
−56,784
161,905Total Hawaii
315,403
−42,986
−107,376
165,042
 The initial FY 2011 sugar marketing State allotments and processor allocations are listed in the table located below: FY 2011 Overall Beet/Cane Allotments and Allocations
Distribution
Initial FY2011 allocationsShort tons, raw valueBeet Sugar
5,019,358Cane Sugar
4,215,892Total OAQ
9,235,250Beet Processors' Marketing Allocations:Amalgamated Sugar Co
1,074,683American Crystal Sugar Co
1,845,383( print page 60718)Michigan Sugar Co
518,377Minn-Dak Farmers Co-op
348,589So. Minn Beet Sugar Co-op
677,454Western Sugar Co
512,845Wyoming Sugar Growers, LLC
42,028Total Beet Sugar
5,019,358State Cane Sugar Allotments:Florida
2,094,682Louisiana
1,620,472Texas
182,094Hawaii
318,644Total Cane Sugar
4,215,892**Cane Processors' Marketing Allocations**Florida:Florida Crystals
862,435Growers Co-op. of FL
376,802U.S. Sugar Corp
855,444Total Florida
2,094,682Louisiana:Louisiana Sugar Cane Products, Inc
1,124,983M.A. Patout & Sons
495,489Total Louisiana
1,620,472Texas:Rio Grande Valley
182,094Hawaii:Gay & Robinson, Inc
73,145Hawaiian Commercial & Sugar Company
245,499Total Hawaii
318,644* The sums of individual entries may not match totals due to rounding.
 Signed in Washington, DC, on September 27, 2010. Jonathan W. Coppess, Executive Vice President, Commodity Credit Corporation.


[FR Doc. 2010-24663 Filed 9-30-10; 8:45 am] BILLING CODE 3410-05-P