Federal Register | Sugar Program; Feedstock Flexibility Program for Bioenergy Producers. Effective date: July 2. Barbara Fecso; telephone (2. Persons with disabilities who require alternative means for communications (Braille, large print, audio tape, etc.) should contact the USDA Target Center at (2. TDD). Under the Sugar Program, domestic sugar beet or sugarcane processors may borrow from CCC, pledging their sugar production as collateral for any such loan, and then satisfy their loans either by repaying the loan on or before loan maturity or by transferring the title for the collateral to CCC immediately following loan maturity, also known as “forfeiture” of collateral (as specified in 7 CFR 1. The Farm Service Agency (FSA) administers the Sugar Program for CCC.
The regulations for sugar loans in 7 CFR 1. A and B are not changing. CCC is required to operate the Sugar Program, to the maximum extent practicable at no cost to the Federal government, by avoiding forfeitures to CCC. If domestic sugar market conditions are such that market rates are less than forfeiture level, current law requires CCC to use FFP to purchase sugar and sell such sugar to bioenergy producers to avoid forfeitures.
Introducing the Feedstock Flexibility Program for Bioenergy Producers. Feedstock Flexibility Program for Bioenergy Producers will encourage the domestic production of. The Biomass Crop Assistance Program (BCAP) provides financial assistance to owners and operators of agricultural and non-industrial private forest land who wish to. Surplus sugar is one step closer to entering the U.S. biofuels industry as feedstock. The USDA Farm Service Agency recently published a notice soliciting bids under.
BIOMASS FEEDSTOCK PROCUREMENT PLAN Prepared for: Calaveras Healthy Impacts Products Solutions, Inc. Wilseyville, California Prepared by: TSS Consultants. RYE COVER CROP AS A SOURCE OF BIOMASS FEEDSTOCK: AN ECONOMIC PERSPECTIVE. Leah M. Duzy*, Francisco Arriaga, Kipling S. Balkcom. USDA-ARS, National Soil Dynamics. BIOMASS CROP ASSISTANCE PROGRAM BCAP Steve Peterson, Chief Program Specialist. Biomass Feedstock Availability Analysis for the Mariposa Biomass Project 2 Feedstock considered in this analysis includes forest-sourced material from both private and.
This final rule amends the Sugar Program regulations to implement FFP and to establish appropriate methods for the disposition of sugar inventory that CCC has acquired other than through FFP. CCC may acquire sugar through forfeiture of CCC sugar loans or through sugar purchases to reduce the cost of the Sugar Program under the cost reduction options provided by section 1. Food Security Act of 1. U. S. C. 1. 30. 8a, 9. Implementation of FFP is required by the amendment by section 9. Farm Bill (Pub. L. Farm Bill (7 U. S.
C. 8. 11. 0, Pub. L. 1. 07- 1. 71), and as further amended by section 7. American Taxpayer Relief Act of 2. Pub. L. 1. 12- 2. Regulations implementing FFP are in 7 CFR part 1.
Sugar Program,” in new subpart G, “Feedstock Flexibility Program.” Regulations implementing sugar disposition methods are in 7 CFR part 1. E, “Disposition of CCC Inventory.”FFP addresses sugar surpluses sooner than the current Sugar Program by permanently removing such sugar from the market for human consumption. The current Sugar Program removes surplus sugar from the market near the end of the crop year as sugarcane and sugar beet processors forfeit sugar loan collateral to CCC. The acquired inventory can be stored for resale to the market upon improvement in market prices. Under FFP, CCC may remove surplus sugar from the market earlier in the year, as FFP requires CCC to avoid sugar loan forfeitures. FFP also requires the surplus sugar to be used to produce bioenergy, which precludes CCC's resale of inventory into the market for human consumption. Current law provides USDA authority for these programs through the 2.
October 1, 2. 01. September 3. 0, 2. Recent indications in the sugar market suggest that forfeitures may occur in crop year 2. However, if sugar prices remain below the forfeiture level, CCC may be required to use FFP to purchase sugar before August 1, 2. CCC. The last year in which sugar loan forfeitures occurred was 2. The methods specified in this rule for both purchases under FFP and disposition of CCC sugar inventory are not expected to be used in most years.
CCC published a proposed rule in the Federal Register on October 1. FR 6. 48. 39- 6. 48. FFP and restrict CCC sugar inventory disposition outlets to non- food use under non- emergency shortage conditions.
CCC received six comments on the proposed rule. The comments and responses are discussed later in this document. As explained below, no major changes are being made in response to comments, because CCC has determined, based on the evenly balanced opposing and supporting comments for specific changes, that the proposed rule equitably balances the conflicting interests of sugar producers and sugar users. CCC has made other changes from the proposed rule in this final rule clarifying the types of sugar eligible for FFP and eliminating the eligibility requirement that the eligible bioenergy producers' facility be located in the United States. Administration of the current Sugar Program requires CCC to balance domestic supply with demand so that U. S. sugar prices are no less than levels specified in the 2. Farm Bill and to maintain an adequate domestic sugar supply.
This rule does not change CCC's management of sugar loans, sugar marketing allotments, or import tariff- rate quotas (TRQs). Specifically, this rule introduces purchases and sales of sugar for bioenergy production under FFP as a proactive means for CCC to avoid forfeitures. FFP is expected to be unnecessary in most years, as USDA's long term projections indicate a generally strong domestic sugar market in the future. This rule adds a new subpart E, “General Disposition of CCC Inventory,” to 7 CFR part 1. Farm Bill requirements and the 2. Farm Bill. Subpart E applies to sugar in inventory that CCC owns, such as sugar obtained from forfeited loan collateral. CCC does not expect to regularly use these methods, as it is legislatively required to operate FFP to avoid forfeitures.
As specified in Subpart E, CCC will dispose of sugar held in CCC inventory in ways that do not increase the domestic supply of sugar for human consumption, except in conditions of emergency sugar shortages. CCC may, under non- emergency conditions, dispose of sugar held in inventory through sales under FFP (new subpart G), through the Processor Sugar Payment- in- Kind (PIK) Program (7 CFR part 1. F, which is not changing), through buybacks of Certificates of Quota Eligibility (CQEs), which are issued under 1.
CFR part 2. 01. 1 to TRQ holding countries and authorize sugar to enter the United States under the TRQs, or through other applicable CCC disposition authority in such a way as not to increase the domestic supply of sugar for human consumption. Under the PIK disposal option, CCC would swap sugar inventory for retired sugarcane or sugar beet acreage. CCC disposed of 4. PIK Program in fiscal year (FY) 2. FY 2. 00. 2. Under the CQE option, CCC would allow traders to swap CQEs for sugar inventory. CCC disposed of 1.
CQE swaps in FY 2. FY 2. 00. 3. Both methods reduce sugar in the domestic supply for human consumption. The announcements of the use of such methods to dispose of sugar held in inventory will be placed on the FSA Commodity Operations Web site at http: //www. FSA/webapp? area=home& amp; subject=coop& amp; topic=landing.
If there is an emergency shortage of sugar for human consumption in the domestic market, the Secretary may use applicable CCC authority to dispose of sugar inventory, including sales for human consumption. As amended by the 2. Farm Bill, section 9. Farm Bill specifies that an emergency shortage of sugar for human consumption in the United States market is one “caused by a war, flood, hurricane, other natural disaster, or other similar event.” CCC did not propose to define “emergency shortage” in the proposed rule, and noted that the “similar event” clause provides flexibility to respond to shortages caused by manmade events. In the background section of the proposed rule, CCC requested comments on whether CCC should define “emergency shortage” in the rule, either by listing the specific types of events that cause a shortage or by specifying a formula based on price or stock levels that constitute a shortage.
As discussed in more detail later in this document, the comments received were not in agreement on whether there should be a specific definition or what that definition should be. Therefore, CCC has retained the language of section 9. CCC therefore retains flexibility to make a determination whether particular circumstances constitute an “other similar event” that has caused an emergency shortage, and whether a particular price or stock level constitutes a shortage. There were no comments received on any other sugar disposition provisions specified in the proposed rule. Consequently, CCC did not make any substantive changes to those provisions. New subpart G specifies how CCC will operate FFP. Through FFP, CCC will buy sugar as needed to avoid forfeitures of sugar loan collateral and sell that sugar to bioenergy producers.
Bioenergy, as defined in section 9. Farm Bill, amending section 9. Farm Bill, means fuel grade ethanol and other biofuel. As amended by the 2. Farm Bill, section 9.
Farm Bill requires the Secretary to estimate, by September 1 of each year, the likelihood of sugar forfeitures for the following crop year, and announce the quantity of sugar to be made available for purchase and sale for bioenergy production. In addition, CCC will make quarterly announcements of revised estimates of such quantity. CCC's purchase and sale plans will be affected by the large degree of uncertainty in USDA's sugar market projections made early in the year. As specified in this rule, CCC will update the estimated quantity of sugar to be made available for purchase and sale under FFP not later than January 1, April 1, and July 1 of each year. Any FFP purchases expected in calendar year 2. FY 2. 01. 3. The 2.
Farm Bill amendments specify that the only commodities eligible to be made available for purchase under FFP are “raw or refined, or in- process sugar” that would otherwise have been marketed for human consumption in the United States or could otherwise have been used for the extraction of sugar marketed for human consumption. Applicable law requires that the entity selling sugar to CCC be located in the United States. The 2. 00. 8 Farm Bill amendments do not require that the sugar buyer's bioenergy facilities be located in the United States. CCC nevertheless initially proposed to limit eligible buyers to those bioenergy producers who would use the purchased sugar to produce bioenergy in their facilities in the United States.