Proposed Rule2023-06231
Redefining Bona Fide Cotton Spot Markets
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 27, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
The Agricultural Marketing Service (AMS) is proposing to amend the regulation that defines two of the seven spot designated spot markets and change the names of the affected markets. Specifically, cotton grown in Oklahoma and Kansas would be moved from the East Texas/ Oklahoma spot market to the West Texas spot market. It also changes the names of these two markets to describe the markets more accurately.
Full Text
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<title>Federal Register, Volume 88 Issue 58 (Monday, March 27, 2023)</title>
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[Federal Register Volume 88, Number 58 (Monday, March 27, 2023)]
[Proposed Rules]
[Pages 18076-18077]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-06231]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 88, No. 58 / Monday, March 27, 2023 /
Proposed Rules
[[Page 18076]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 27
[Doc. No. AMS-CN-22-0061]
RIN 0581-ZA33
Redefining Bona Fide Cotton Spot Markets
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service (AMS) is proposing to amend
the regulation that defines two of the seven spot designated spot
markets and change the names of the affected markets. Specifically,
cotton grown in Oklahoma and Kansas would be moved from the East Texas/
Oklahoma spot market to the West Texas spot market. It also changes the
names of these two markets to describe the markets more accurately.
DATES: Comments must be received by May 26, 2023.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments may be submitted to Darryl
Earnest electronically by Email: <a href="/cdn-cgi/l/email-protection#84e0e5f6f6fde8aae1e5f6eae1f7f0c4f1f7e0e5aae3ebf2"><span class="__cf_email__" data-cfemail="65010417171c094b0004170b00161125101601044b020a13">[email protected]</span></a>; by mail or
hand delivery to Cotton & Tobacco Program, AMS, USDA, 3275 Appling
Road, Room 11, Memphis, TN 38133; or via the internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register and can
be viewed at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. All comments submitted in
response to this proposed rule will be included in the record and will
be made available for public viewing at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Please be advised that the identity of the individuals or entities
submitting the comments will be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Program, AMS, USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone: (901) 384-3000, Fax: (901) 384-3033, or
Email: <a href="/cdn-cgi/l/email-protection#ec888d9e9e9580c2898d9e82899f98ac999f888dc28b839a"><span class="__cf_email__" data-cfemail="3054514242495c1e5551425e55434470454354511e575f46">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
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
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. Updated designations for these
bona fide spot markets and the determination of which counties and
states compose each of these spot markets were most recently published
in the Federal Register on April 30, 2013 (78 FR 25181). For each of
these bona fide spot markets, AMS's Cotton and Tobacco Program 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
cotton futures contracts.
The Cotton and Tobacco Program (Program) received a request from
the American Cotton Shippers Association (ACSA) and the National Cotton
Council of America (NCC), to evaluate the structure of the cotton spot
markets in East and West Texas, Oklahoma, and Kansas. The Program's
analysis of the East Texas/Oklahoma market determined that cotton grown
in Oklahoma and Kansas has similar quality characteristics and was
traded under the same terms and conditions as West Texas cotton.
Further, the analysis showed that there was not any significant
difference in the prices reported to Cotton and Tobacco Market News
when comparing Oklahoma and Kansas cotton to West Texas cotton. As a
result, ACSA and NCC requested that cotton grown in Oklahoma and Kansas
be moved from the East Texas/Oklahoma spot market to the West Texas
spot market. Revisions to the regulations concerning bona fide spot
market definitions are necessary to assure consistency with the revised
Cotton Research and Promotion Act and to allow for published spot
quotes to consider spot prices of cotton marketed in Kansas and
Oklahoma. Corresponding changes to the names of these two spot markets
would be made to describe the markets more accurately.
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 12866
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866; and, therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This proposed 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.
Initial Regulatory Flexibility Analysis
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 an estimated 25,000 cotton
growers in the U.S. who voluntarily use the AMS cotton classing
services annually, and the majority of these cotton growers are small
businesses under the criteria established by the Small Business
Administration (13 CFR 121.201).
Changes in cotton spot market definitions as stated will not
significantly affect small businesses as defined in the RFA because:
[[Page 18077]]
(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.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
List of Subjects in 7 CFR Part 27
Commodity futures, Cotton.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 27 as follows:
PART 27--COTTON CLASSIFICATION UNDER COTTON FUTURES LEGISLATION
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. 27.93, the definitions of the ``East Texas and Oklahoma,''
and ``West Texas'' markets are revised to read as follows:
Sec. 27.93 Bona fide spot markets.
* * * * *
East Texas and South Texas
Texas counties east of and including Montague, Wise, Parker, Erath,
Comanche, Mills, San Saba, Mason, Sutton, Edwards, Kinney, Maverick,
Webb, Zapata, Star and Hidalgo counties.
* * * * *
West Texas, Kansas, and Oklahoma
All counties in Kansas and Oklahoma, all Texas counties not
included in the East Texas, South Texas, and Desert Southwest Markets
and the New Mexico counties of Union, Quay, Curry, Roosevelt, and Lea.
* * * * *
0
3. 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 No. 2 contract on the
Intercontinental Exchange (ICE); Southeastern; North and South Delta;
East Texas and South Texas; West Texas, Kansas, and Oklahoma; and
Desert Southwest.
* * * * *
Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-06231 Filed 3-24-23; 8:45 am]
BILLING CODE P
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