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Saturday yA u g u st 13,1949

5003

FEDERAL REGISTER

In analyzing prices payable under 1949
processors and producers have been de crop purchase contracts, the Departtermined to be fair and reasonable. The meht had for the first time actual data 1940 and 1941 price determinations es covering the returns, costs and profits of tablished specific prices per ton of sugar a representative number of producers beets at various levels of net returns and and all processors for the entire beet percentages of sugar in the beets; eli sugar area. These data, although ap minated the clause contained in some plicable to the 1947 crop in the case of contracts under which provison was producers and to the 1945, 1946, and made for an accelerating rate of reduc 1947 crops in the case of processors, have tion in payments to producers when net been projected to the 1948 and 1949 crops proceeds from sugar fell below $3.25 per by restating such data in the light of one hundred pounds; and eliminated the practice of calculating average net re known or expected conditions for the turns for purposes of settlement with 1948 and 1919 crops in accordance with growers on the basis of net proceeds generally acceptable methods. These realized from the sale o f sugar by other projections were made for processors and processors.
producers in nine regions of the beet During the crop years 1943 to 1947, the sugar area groups of contiguous settle price scales in the 1942 purchase con ment areas.
tracts were used as the basis for the On the basis of these projections, support price under the Commodity prices payable under 1949 crop purchase Credit Corporation price support pro contracts were analyzed first, for the nine grams. The result of these support pro regions, and second, for company-wide grams was to increase the producers operations of companies using scale type returns over what they would have been contracts and having factories located in had the actual net proceeds determined two or more regions. The analysis con their returns.
sisted of a comparison of returns, costs, The 1948 price determination approved margins, and returns on investment of as fair and reasonable the prices pay processors and producers at average able in purchase contracts between proc levels of sucrose and probable net return, essors and producers. However, this and a comparison of such factors at the approval did not constitute an evaluation sucrose and net return levels specified in of those provisions of the contracts ap the purchase contracts. Returns were plicable to sugar prices materially lower computed on the basis of sugar proceeds than the price prevailing on the date of only, and then by including primary by issuance of such determination. The. products wet pulp and molasses as a purchase contracts used in 1948 con component of milling income, and beet tained a number of significant changes tops and Sugar Act payments as com in the price scales. In scale type con ponents of farm income. Although it tracts, prices to producers in 1948 gen was recognized that there are many dif erally were more favorable at net re ficulties and uncertainties involved in turns of six cents or more per pound for establishing comparable investment sugar than were such prices in previous charges, returns on investment were ex years, except during the war years when amined under each of the conditions.
price support programs were in effect.
In the analysis, it was also recognized Conversely, prices for sugar beets gen that certain other factors such as com erally were less favorable than in previous petitive influences from other crops and contracts at net returns below six cents.
within the beet sugar industry, custom In most of the percentage sharing con ary production patterns, and relative tracts used in the Great Lakes area, pro risks and hazards borne by each of the ducers received an additional 15 percent parties have an important effect upon of the sugar proceeds from net returns prices for sugar beets. While these fac between 6.7 and 9 cents per pound.
tors are difficult to evaluate, certain gen d 1949 price determination. The eral indications of value have been 1949 price determination provides that observed.
processors shall be deemed to have com The analysis indicates that prices pay plied with section 301 c 2 of the Act able for sugar beets in 1949 crop pur if they pay, or contract to pay, for sugar chase contracts are fair and reasonable beets purchased from other producers at the present level of sugar prices 7.85
prices not less than those provided for cents per pound, seaboard basis for re in the 1949 crop purchase contracts.
fined cane sugar and at levels of sugar The prices payable for 1949 crop sugar prices reasonably above and below the beets under percentage sharing contracts present level. In this determination no used in the Great Lakes area and under attempt has been made to evaluate prices payable for sugar beets at mate scale type contracts used in California rially higher or lower sugar prices than are the same as for 1948. In most of the now exist as it is impossible fully to an other settlement areas, such prices were, ticipate the effects that substantial with certain exceptions, increased at changes in general economic conditions levels of net returns less than six cents might have on relative costs and other and at levels of net returns higher than pertinent factors. Although the pur 7.50 cents per pound. In a few settle chase contracts provide prices for sugar ment areas where adjustments were not beets at all levels of sugar prices, primary made in 1948 crop purchase contracts, consideration is given to prices within a prices payable for sugar beets were lower reasonable range of expectancy. Ac at net return levels of six cents or less.
cordingly, there would appear to be little Generally, at other levels of net returns purpose in undertaking an evaluation of prices payable under 1949 crop purchase those provisions of the purchase con contracts remain approximately the tracts at the extreme ranges of sugar prices.
same as for the 1948 crop.

Accordingly, I hereby find and conclude that the foregoing price determination will effectuate the price provisions of the Sugar Act.
Secs. 301,403, 61 Stat. 929, 932; 7 U. S. C.
Sup. 1131, 1153
Issued this 8th day of August 1949.
A. J. L o v e l a n d , Acting Secretary of Agriculture.

seal
F. R. Doc. 49-6606; Filed, Aug. 12, 1949;
8:47 a. m.

Chapter IX Production and Mar keting Administration Marketing Agreements and Orders, Depart ment of Agriculture Orange Reg. 288
P art
966 O rang es G r o w n and
in
C a l if o r n ia
A r izo n a
LIMITATION OF SHIPMENTS

966.434 Orange Regulation 288 a Findings. 1 Pursuant to the provi-N
sions of Order No. 66 7 CFR, Cum. Supp., 966.1 et seq. regulating the handling of oranges grown in the State of California or in the State of Arizona, effective under the applicable provisions of the Agricul tural Marketing Agreement Act of 1937, as amended, and upon the basis of the recommendation and information sub mitted by the Orange Administrative Committee, established under the said order, and upon other available informa tion, it is hereby found that the limita tion of the quantity of such oranges which may be handled, as hereinafter provided, will tend to effectuate the de clared policy of the act.
2 It is hereby further found that it is impracticable and contrary to the pub lic interest to give preliminary notice, engage in public rule-making procedure, and postpone the effective date of this section until 30 days after publication thereof in the F ederal R e g iste r 69 Stat.
237; 5 U. S. C. 1001 et seq. because the time intervening between the date when information upon which this section is based became available and the time when this section must become effective in order to effectuate the declared policy of the Agricultural Marketing Agree ment Act of 1937, as amended, is insuffi cient, and a reasonable time is permitted, under the circumstances, for preparation for such effective date.
b Order. 1 The q u a n t i t y of oranges grown in the State of California or in the State of Arizona which may be handled during the period beginning at 12:01 a. m., P. s. t., August 14, 1949, and ending at 12:01 a. m., P. s. t., August 21, 1949, is hereby fixed as follows;
i Valencia oranges, a Prorate District No. 1: No movement;
b Prorate District No. 2: 1,100 car loads;
c Prorate District No. 3: No move ment.
ii Oranges other than Valencia oranges, a Prorate District No. 1: No movement;
b Prorate District No. 2: No move ment;