80 FR 63889 - Defining Bona Fide Cotton Spot Markets for the World Cotton Futures Contract
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 80, Issue 204 (October 22, 2015)
Agricultural Marketing Service
Federal Register Volume 80, Issue 204 (October 22, 2015)
| Page Range | 63889-63890 | |
| FR Document | 2015-26953 |
[Federal Register Volume 80, Number 204 (Thursday, October 22, 2015)] [Rules and Regulations] [Pages 63889-63890] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-26953] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. Prices of new books are listed in the first FEDERAL REGISTER issue of each week. ======================================================================== Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Rules and Regulations [[Page 63889]] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 27 [Doc. #AMS-CN-14-0050] RIN 0581-AD38 Defining Bona Fide Cotton Spot Markets for the World Cotton Futures Contract AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Agricultural Marketing Service (AMS) is amending the regulatory language to designate which bona fide cotton spot markets will be used to determine actual commercial differences in value for various grades above or below the basis grade in the settlement of World cotton futures contracts on the Intercontinental Exchange (ICE). Designating bona fide cotton spot markets for the World cotton futures contract in the regulatory language will allow for AMS to collect spot market price data and publish spot quotes for the settlement of these specific contracts. DATES: Effective Date: November 23, 2015. FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator, Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Room 11, Memphis, TN 38133. Telephone (901) 384-3060, facsimile (901) 384-3021, or email [email protected]. SUPPLEMENTARY INFORMATION: Executive Order 12866 and Executive Order 13563 Executive Orders 12866 and 13563 direct agencies to access all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects, distributive impacts and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This action has been designated as a ``non-significant regulatory action'' under section 3(f) of Executive Order 12866 and therefore has not been reviewed by the Office of Management and Budget (OMB). Executive Order 13175 This action has been reviewed in accordance with the requirements of Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. The review reveals that this regulation would not have substantial and direct effects on Tribal governments and would not have significant Tribal implications. Executive Order 12988 This final rule has been reviewed under Executive Order 12988, Civil Justice Reform. It is not intended to have retroactive effect. There are no administrative procedures that must be exhausted prior to any judicial challenge to the provisions of this rule. Regulatory Flexibility Act Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of this action on small entities and has determined that its implementation will not have a significant economic impact on a substantial number of small businesses. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions so that small businesses will not be disproportionately burdened. There are approximately sixty cotton merchant organizations of various sizes active in trading U.S. cotton. Many of these cotton merchants are small businesses under the criteria established by the Small Business Administration (13 CFR 121.201). Small business entities that are merchants in the U.S. cotton industry are defined as having fewer than 100 employees. Amendments to the regulation concerning bona fide cotton spot market designations will not significantly affect small businesses as defined in the RFA because: (1) How spot prices are estimated are not expected to be impacted by this action; (2) Business practices of the U.S. cotton industry are not expected to change as a result of this action; (3) Costs associated with providing market news services will not be significantly changed by this action; (4) Market news services are paid for by appropriated funds, therefore users are not charged fees for the provision of the services. Paperwork Reduction Act In compliance with OMB regulations (5 CFR part 1320), which implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501), the information collection requirements contained in the provisions to be amended by this proposed rule have been previously approved by OMB and were assigned OMB control number 0581-0009, Cotton Classification and Market News Service. Background The Secretary of Agriculture is authorized under the United States Cotton Futures Act (7 U.S.C. 15b) to designate at least five bona fide cotton spot markets from which cotton price information can be collected. A spot market--also called the ``cash market'' or ``physical market''--is a market where commodities are sold on the spot for cash at current market prices and delivered immediately. Designation of these bona fide cotton spot markets and the determination of which counties and states compose each of these spot markets was most recently published in the Federal Register on April 30, 2013 (78 FR 25181). For each of these bona fide cotton spot markets, the Cotton and Tobacco Program of the Agricultural Marketing Service collects market price information under the United States Cotton Futures Act (7 U.S.C. 15b), the Cotton Statistics and Estimates Act (7 U.S.C. 473b) and the Agricultural Marketing Act of 1946 (7 U.S.C. 1622(g)). This price information is then used to calculate price differences for the settlement of cotton futures contracts. In order to better manage price risk in the global cotton market, the American Cotton Shippers Association (ACSA) and the International Cotton Association (ICA) requested that the Intercontinental Exchange (ICE) offer a World cotton futures contract. In response, ICE [[Page 63890]] announced its intention to begin offering World cotton contracts beginning in the fourth quarter of 2015. To determine actual commercial differences in value for various grades above or below the basis grade in the settlement of this new World cotton futures contract, AMS was asked by these same stakeholders to collect and publish cotton spot market price information relevant to the World cotton contract. Therefore, AMS is amending Sec. 27.94 to designate the same bona fide cotton spot markets for the World cotton futures contract as have been designated for the No. 2 cotton futures contract. Summary of Comments A proposed rule was published in the Federal Register on December 16, 2014, with a comment period of December 16, 2014 through January 16, 2015 (79 FR 74654). No comments were received by AMS. The U.S. cotton industry and ICE requested that AMS, Cotton and Tobacco Program to collect and publish cotton spot market price information relevant to the World cotton contract prior to the offering of this new futures contract, which is scheduled for the fourth quarter of 2015. List of Subjects in 7 CFR Part 27 Commodity futures, Cotton. For the reasons set forth in the preamble, 7 CFR part 27 is amended as follows: PART 27--[Amended] 0 1. The authority citation for 7 CFR part 27 continues to read as follows: Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7 U.S.C. 1622(g). 0 2. In Sec. 27.94, paragraph (a) is revised to read as follows: Sec. 27.94 Spot markets for contract settlement purposes. * * * * * (a) For cotton delivered in settlement of any Cotton No. 2 or World Cotton contract on the Intercontinental Exchange (ICE); the spot markets are Southeastern, North and South Delta, Eastern Texas and Oklahoma, West Texas, and Desert Southwest. * * * * * Dated: October 19, 2015. Rex A. Barnes, Associate Administrator, Agricultural Marketing Service. [FR Doc. 2015-26953 Filed 10-21-15; 8:45 am] BILLING CODE 3410-02-P
![63889
Rules and Regulations Federal Register
Vol. 80, No. 204
Thursday, October 22, 2015
This section of the FEDERAL REGISTER approaches that maximize net benefits (1) How spot prices are estimated are
contains regulatory documents having general (including potential economic, not expected to be impacted by this
applicability and legal effect, most of which environmental, public health, and safety action;
are keyed to and codified in the Code of effects, distributive impacts and equity). (2) Business practices of the U.S.
Federal Regulations, which is published under Executive Order 13563 emphasizes the cotton industry are not expected to
50 titles pursuant to 44 U.S.C. 1510. change as a result of this action;
importance of quantifying both costs
The Code of Federal Regulations is sold by and benefits, reducing costs, (3) Costs associated with providing
the Superintendent of Documents. Prices of harmonizing rules, and promoting market news services will not be
new books are listed in the first FEDERAL flexibility. This action has been significantly changed by this action;
REGISTER issue of each week. designated as a ‘‘non-significant (4) Market news services are paid for
regulatory action’’ under section 3(f) of by appropriated funds, therefore users
Executive Order 12866 and therefore are not charged fees for the provision of
DEPARTMENT OF AGRICULTURE has not been reviewed by the Office of the services.
Management and Budget (OMB). Paperwork Reduction Act
Agricultural Marketing Service
Executive Order 13175 In compliance with OMB regulations
7 CFR Part 27 This action has been reviewed in (5 CFR part 1320), which implement the
accordance with the requirements of Paperwork Reduction Act (PRA) (44
[Doc. #AMS–CN–14–0050] U.S.C. 3501), the information collection
Executive Order 13175, Consultation
RIN 0581–AD38 and Coordination with Indian Tribal requirements contained in the
Governments. The review reveals that provisions to be amended by this
Defining Bona Fide Cotton Spot this regulation would not have proposed rule have been previously
Markets for the World Cotton Futures substantial and direct effects on Tribal approved by OMB and were assigned
Contract governments and would not have OMB control number 0581–0009, Cotton
AGENCY: Agricultural Marketing Service, significant Tribal implications. Classification and Market News Service.
USDA. Executive Order 12988 Background
ACTION: Final rule. The Secretary of Agriculture is
This final rule has been reviewed
SUMMARY: The Agricultural Marketing under Executive Order 12988, Civil authorized under the United States
Service (AMS) is amending the Justice Reform. It is not intended to Cotton Futures Act (7 U.S.C. 15b) to
regulatory language to designate which have retroactive effect. There are no designate at least five bona fide cotton
bona fide cotton spot markets will be administrative procedures that must be spot markets from which cotton price
exhausted prior to any judicial information can be collected. A spot
used to determine actual commercial
challenge to the provisions of this rule. market—also called the ‘‘cash market’’
differences in value for various grades
or ‘‘physical market’’—is a market
above or below the basis grade in the Regulatory Flexibility Act where commodities are sold on the spot
settlement of World cotton futures
Pursuant to requirements set forth in for cash at current market prices and
contracts on the Intercontinental
the Regulatory Flexibility Act (RFA) (5 delivered immediately. Designation of
Exchange (ICE). Designating bona fide
U.S.C. 601–612), AMS has considered these bona fide cotton spot markets and
cotton spot markets for the World cotton
the economic impact of this action on the determination of which counties
futures contract in the regulatory
small entities and has determined that and states compose each of these spot
language will allow for AMS to collect
its implementation will not have a markets was most recently published in
spot market price data and publish spot
significant economic impact on a the Federal Register on April 30, 2013
quotes for the settlement of these
substantial number of small businesses. (78 FR 25181). For each of these bona
specific contracts. The purpose of the RFA is to fit fide cotton spot markets, the Cotton and
DATES: Effective Date: November 23, regulatory actions to the scale of Tobacco Program of the Agricultural
2015. businesses subject to such actions so Marketing Service collects market price
FOR FURTHER INFORMATION CONTACT: that small businesses will not be information under the United States
Darryl Earnest, Deputy Administrator, disproportionately burdened. There are Cotton Futures Act (7 U.S.C. 15b), the
Cotton & Tobacco Program, AMS, approximately sixty cotton merchant Cotton Statistics and Estimates Act (7
USDA, 3275 Appling Road, Room 11, organizations of various sizes active in U.S.C. 473b) and the Agricultural
Memphis, TN 38133. Telephone (901) trading U.S. cotton. Many of these Marketing Act of 1946 (7 U.S.C.
384–3060, facsimile (901) 384–3021, or cotton merchants are small businesses 1622(g)). This price information is then
email darryl.earnest@ams.usda.gov. under the criteria established by the used to calculate price differences for
SUPPLEMENTARY INFORMATION: Small Business Administration (13 CFR the settlement of cotton futures
asabaliauskas on DSK5VPTVN1PROD with RULES
121.201). Small business entities that contracts.
Executive Order 12866 and Executive are merchants in the U.S. cotton In order to better manage price risk in
Order 13563 industry are defined as having fewer the global cotton market, the American
Executive Orders 12866 and 13563 than 100 employees. Amendments to Cotton Shippers Association (ACSA)
direct agencies to access all costs and the regulation concerning bona fide and the International Cotton Association
benefits of available regulatory cotton spot market designations will not (ICA) requested that the Intercontinental
alternatives and, if regulation is significantly affect small businesses as Exchange (ICE) offer a World cotton
necessary, to select regulatory defined in the RFA because: futures contract. In response, ICE
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![63890 Federal Register / Vol. 80, No. 204 / Thursday, October 22, 2015 / Rules and Regulations
announced its intention to begin DEPARTMENT OF AGRICULTURE to prioritize or allocate items or services
offering World cotton contracts can be triggered by a determination by
beginning in the fourth quarter of 2015. Farm Service Agency the President or designated entities that
To determine actual commercial this action is necessary or appropriate to
differences in value for various grades 7 CFR Part 789 promote national defense including the
above or below the basis grade in the RIN 0560–AH68
imminent need for emergency
settlement of this new World cotton preparedness. Under DPA (50 U.S.C.
futures contract, AMS was asked by Agriculture Priorities and Allocations App. 2061 to 2170, 2171, and 2172), the
these same stakeholders to collect and System term ‘‘national defense’’ includes
publish cotton spot market price emergency preparedness, response, and
information relevant to the World cotton AGENCY: Farm Service Agency, USDA. critical infrastructure protection and
contract. Therefore, AMS is amending ACTION: Final rule. restoration. Authority for priorities and
§ 27.94 to designate the same bona fide allocations is specified in DPA and
cotton spot markets for the World cotton SUMMARY: The Farm Service Agency further defined in Executive Order
futures contract as have been designated (FSA) is establishing the regulation for 13603, ‘‘National Defense Resources
for the No. 2 cotton futures contract. the Agriculture Priorities and Preparedness,’’ dated March 16, 2012.
Allocations System (APAS). Food is a Executive Order 13603 replaced
Summary of Comments critical commodity essential to the Executive Order 12919 (referenced in
national defense (including civil the proposed rule) and further defined
A proposed rule was published in the
emergency preparedness and response). jurisdictional areas and national defense
Federal Register on December 16, 2014,
To avoid civilian hardship during preparedness roles and responsibilities
with a comment period of December 16,
national defense emergencies, it may be for specific Departments. Executive
2014 through January 16, 2015 (79 FR
necessary to regulate the production, Order 13603 did not change the intent
74654). No comments were received by
processing, storage, and wholesale of DPA as it applies to USDA’s
AMS.
distribution of food. Through the APAS functions in national defense, including
The U.S. cotton industry and ICE rule, the U.S. Department of Agriculture emergency preparedness; instead it gave
requested that AMS, Cotton and (USDA) will respond to requests to additional jurisdiction to USDA for
Tobacco Program to collect and publish place priority ratings on contracts or livestock, veterinary, and plant health
cotton spot market price information orders (establishing priority on which resources.
relevant to the World cotton contract contracts or orders are filled first) for For the final rule, only those sections
prior to the offering of this new futures agriculture commodities up through the in the ‘‘Supplementary Information’’
contract, which is scheduled for the wholesale levels, including agriculture part of the proposed rule preamble that
fourth quarter of 2015. production equipment, and allocate required modifications due to Executive
resources, as specified in the Defense Order 13603 or for other reasons are
List of Subjects in 7 CFR Part 27
Production Act (DPA) of 1950, as further discussed in the
Commodity futures, Cotton. amended, if the necessity arises. FSA is ‘‘Supplementary Information’’ section of
implementing this rule as a way to this final rule. A more thorough
For the reasons set forth in the redirect the agriculture commodities explanation along with examples of
preamble, 7 CFR part 27 is amended as and resources to areas of hardship or APAS applicability was provided in the
follows: potential hardship due to national proposed rule that was published on
emergencies. In most cases, there is May 19, 2011 (76 FR 29084–29106).
PART 27—[Amended] References in those examples to
likely to be no economic impact in
filling priority orders because it would Executive Order 12919 should be read
■ 1. The authority citation for 7 CFR generally just be changing the timing in to mean Executive Order 13603. Also
part 27 continues to read as follows: which orders are completed. contained in this summary are
Authority: 7 U.S.C. 15b, 7 U.S.C. 473b, 7 DATES: Effective December 21, 2015.
descriptions of comments received and
U.S.C. 1622(g). responses developed on the proposed
FOR FURTHER INFORMATION CONTACT:
rule. We are not reiterating the ‘‘Section
■ 2. In § 27.94, paragraph (a) is revised Robert Haughton, telephone (202) 702– by Section Discussion of Rule’’ section
to read as follows: 0135. Persons with disabilities who of the proposed rule preamble in this
require alternative means for document. Any changes to those
§ 27.94 Spot markets for contract communication (Braille, large print,
settlement purposes. sections are discussed in this document.
audiotape, etc.) should contact the
* * * * * USDA Target Center at (202) 720–2600 Jurisdiction
(a) For cotton delivered in settlement (voice and TDD). Title I of DPA and Executive Order
of any Cotton No. 2 or World Cotton SUPPLEMENTARY INFORMATION: 13603 authorize jurisdictional areas for
contract on the Intercontinental each Department that is involved in
Executive Summary
Exchange (ICE); the spot markets are national defense including emergency
Southeastern, North and South Delta, APAS is a USDA program that preparedness. USDA has jurisdiction for
Eastern Texas and Oklahoma, West supports not only national defense items that fall under the categories of:
Texas, and Desert Southwest. needs (such as food for combat rations), (1) Food resources (including potable water
asabaliauskas on DSK5VPTVN1PROD with RULES
* * * * * but also emergency preparedness packaged in commercially marketable
initiatives by addressing essential containers) and food resource facilities;
Dated: October 19, 2015. civilian needs (food and food resources) (2) Livestock resources, veterinary
Rex A. Barnes, through the placing of priorities on resources, and plant health resources; and
Associate Administrator, Agricultural contracts for items and services or (3) Domestic distribution of farm
Marketing Service. allocating resources, as necessary. equipment and commercial fertilizer.
[FR Doc. 2015–26953 Filed 10–21–15; 8:45 am] Although a specific Presidential disaster USDA cannot use its DPA authority
BILLING CODE 3410–02–P designation is not required, the ability for items or services not in its
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Document Created: 2015-12-14 15:34:26
Document Modified: 2015-12-14 15:34:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Contact | Darryl Earnest, Deputy Administrator, Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Room 11, Memphis, TN 38133. Telephone (901) 384-3060, facsimile (901) 384-3021, or email [email protected] | |
| FR Citation | 80 FR 63889 | |
| RIN Number | 0581-AD38 | |
| CFR Associated | Commodity Futures and Cotton |
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