a party at any time. The Board may also raise the question of jurisdiction at any time on its own motion. The presiding officer shall prescribe any necessary proceedings including but not limited to written arguments, briefs or hearing on the issue of jurisdiction. The presiding officer shall issue a Ruling on the issue of jurisdiction unless the Chairman requires a full three member panel or consider the issue of jurisdiction in which event the designated panel shall issue the Ruling on the issue of jurisdiction.

(b) Failure to prosecute. Whenever a record discloses the failure of either party to file documents required by these rules, respond to notices or correspondence from the presiding officer, comply with orders of the presiding officer, or otherwise indicates an intention not to continue the prosection or defense of an appeal, the presiding officer may issue an order requiring the offending party to show cause why the appeal should not be either dismissed or granted, as appropriate. If the offending party shall fail to show such cause, the presiding officer may issue an Order of Dismissal for failure to prosecute or take such other action deemed reasonable and proper under the circumstances.

(c) Without prejudice. In certain cases, appeals docketed before the Board are required to be placed in a suspense status and the Board is unable to proceed with disposition thereof for reasons not within the control of the Board. In any such case where the suspension has continued, or it appears that it will continue, for an inordinate length of time, the presiding officer, exercising sound discretion, may dismiss such appeals without prejudice to restoration to the docket when the cause of suspension has been removed. Unless either party or the Board acts within 3 years to reinstate any appeal dismissed without prejudice, the dismissal shall be deemed with prejudice.

(d) Settlement or withdrawal. The parties may settle the issues at any state of the proceedings before issuance of a decision of the Board. The appellant may withdraw the appeal at any time. The presiding officer in the event of settlement or withdrawal shall issue an Order of Dismissal.

MISCELLANEOUS

Rule 26. Representation of Parties. Appellant may appear before the Board in person or be represented by an authorized representative or attorney subject to the limitations prescribed in 7 CFR 1.26 regarding representation before the Department. The Government shall be represented by the Government attorney.

§ 26.2 Determination of the prevailing world market price for upland cotton. The prevailing world market price for upland cotton shall be determined by the Secretary of Agriculture as follows:

(a) During the period when only one daily price quotation is available for each growth quoted for Middling one and three-thirty-second inch (M 12 inch) cotton C.I.F. (cost, insurance, and freight) northern Europe, the prevailing world market price for upland cotton shall be based upon the average of the quotations for the preceding Friday through Thursday for the five lowest-priced growths of the growths quoted for M 12 inch cotton C.I.F. northern Europe.

(b) During the period when both a price quotation for cotton for shipment no later than August/September of the current calendar year (hereinafter referred to as the "current shipment price") and a price quotation for cotton for shipment no earlier than October/November of the current calendar year (hereinafter referred to as the "forward shipment price") are available for the growths quoted for M 132 inch cotton C.I.F. northern Europe, the prevailing world market price for upland cotton shall be based upon the following:

Beginning with the first week covering the period Friday through Thursday which includes April 15 or, if both the average of the current shipment prices for the preceding Friday through Thursday for the five lowest-priced growths of the growths quoted for M 132 inch cotton C.I.F. northern Europe (hereinafter referred to as the "Northern Europe current price”) and the average of the forward shipment prices for the preceding Friday through Thursday for the five lowest-priced growths of the growths quoted for M 132 inch cotton C.I.F. northern Europe (hereinafter referred to as the "Northern Europe forward price") are not available during that period, beginning with the first week covering the period Friday through Thursday after the week which includes April 15 in which both the Northern Europe current price and the Northern Europe forward price are available, the prevailing world market price for upland cotton shall be based upon the result calculated by the following procedure:

=

Weeks 5 and 6: Northern Europe price (Northern Europe current price + 2 x Northern Europe forward price) /3.

Weeks 7 through July 31: Northern Europe price = Northern Europe forward price.

(c) The prevailing world market price for upland cotton as determined in accordance with § 26.2 (a) or (b) shall hereinafter be referred to as the "Northern Europe price."

(d) If quotes are not available for one or more days in the five-day period, the available quotes during the period will be used. If no quotes are available during the Friday through

Thursday period, the prevailing world market price shall be based upon the best available world price information, as determined by the Secretary.

[54 FR 5922, Feb. 7, 1989]

§ 26.3 Adjusted world price for upland cotton.

(a) The prevailing world market price for upland cotton, adjusted in accordance with paragraph (b) of this section (hereinafter referred to as the "adjusted world price"), shall be applicable to the programs of the Department of Agriculture for the 1986 through 1990 crops of upland cotton as provided in section 103A of the Act.

(b) The adjusted world price for upland cotton shall equal the Northern Europe price as determined in accordance with § 26.2, adjusted as follows:

(1) The Northern Europe price shall be adjusted to average designated U.S. spot market location by deducting the average difference in the immediately preceding 52-week period between:

(i)(A) The average of price quotations for the U.S. Memphis territory and the California/Arizona territory as quoted each Thursday for M 12 inch cotton C.I.F. northern Europe during the period when only one daily price quotation for such growths is available, or

(B) The average of the current shipment prices for U.S. Memphis territory and the California/Arizona territory as quoted each Thursday for M 132 inch cotton C.I.F. northern Europe during the period when both current shipment prices and forward shipment prices for such growths are available; and

(ii) The average price of M 12 inch (micronaire 3.5 through 4.9) cotton as quoted each Thursday in the designated U.S. spot markets.

(2) The price determined in accordance with paragraph (b)(1) of this section shall be adjusted to reflect the price of Strict Low Middling (SLM) 16 inch (micronaire 3.5 through 4.9) cotton (hereinafter referred to as the “U.S. base quality”) by deducting the difference, as announced by the Secretary of Agriculture, between the applicable loan rate for a crop of upland

cotton for M 12 inch (micronaire 3.5 through 4.9) cotton and the loan rate for a crop of upland cotton of the U.S. base quality.

(3) The price determined in accordance with paragraph (b)(2) of this section shall be adjusted to average U.S. location by deducting the difference between the average loan rate for a crop of upland cotton of the U.S. base quality in the designated U.S. spot markets and the corresponding crop year national average loan rate for a crop of upland cotton of the U.S. base quality, as announced by the Secretary of Agriculture.

(4)(i) If it is determined that the prevailing world market price, as adjusted in accordance with paragraph (b)(1) through (b)(3) of this section, is less than 115 percent of the current crop year loan level for Strict Low Middling (SLM) 16 inch (micronaire 3.5 through 4.9) cotton, and that the Friday through Thursday average price quotation for the lowest-priced U.S. growth as quoted for Middling (M) 132 inch cotton C.I.F. northern Europe is greater than the Northern Europe price, such price may be adjusted on the basis of some or all of the following data, as available:

(A) The U.S. share of world exports; (B) The current level of cotton export sales and/or cotton export shipments; and

(C) Other data determined by the Secretary, or a designee of the Secretary, to be relevant in establishing an accurate prevailing world market price determination adjusted to United States quality and location.

(ii) The adjustment may not exceed the difference between the Friday through Thursday average price for the lowest-priced U.S. growth as quoted for Middling 132 inch cotton C.I.F. northern Europe and the Northern Europe price.

(c) In determining the average difference in the 52-week period as provided in paragraph (b)(1) of this section:

(1) If the difference between the average price quotations for the U.S. Memphis territory and the California/ Arizona territory as quoted for M 132 inch cotton C.I.F. northern Europe and the average price of M 12 inch

(micronaire 3.5 through 4.9) cotton as quoted each Thursday in the designated U.S. spot markets for any week is:

(i) More than 115 percent of the estimated actual cost associated with transporting U.S. cotton to northern Europe, then 115 percent of such actual cost shall be substituted in lieu thereof for such week.

(ii) Less than 85 percent of the estimated actual cost associated with transporting U.S. cotton to northern Europe, then 85 percent of such actual cost shall be substituted in lieu thereof for such week.

(2) If Thursday price quotations are not available for either the northern Europe or the spot market quotations for any week, that week will not be taken into consideration.

(d) The adjusted world price for upland cotton, as determined in accordance with paragraph (b) of this section and the amount of the additional adjustment, as determined in accordance with paragraph (e) of this section, shall be determined weekly by the Secretary of Agriculture and shall be announced as soon as possible after 4:00 p.m. Eastern time each Thursday, beginning July 3, 1986, and continuing through the last Thursday of July 1991. In the event that Thursday is a nonworkday, the determination will be announced the next workday.

(e)(1) The adjusted world price, as determined in accordance with paragraph (b) of this section, shall be subject to further adjustments as provided in this paragraph with respect to any grade of upland cotton with a staple length of 12 inch or shorter and the following grades of upland cotton with a staple length of 116 inch or longer: White Grades-Strict Good Ordinary Plus, Strict Good Ordinary, Good Ordinary Plus and Good Ordinary; Light Spotted Grades-Low Middling and Strict Good Ordinary; Spotted Grades-Middling, Strict Low Middling, Low Middling and Strict Good Ordinary; Tinged Grades-Strict Middling, Middling, Strict Low Middling and Low Middling; Yellow Stained Grades-Strict Middling and Middling; Light Gray Grades-Strict Low Middling; Gray Grades-Middling and Strict Low Middling. Grade and staple length must be determined by

an official classification issued by USDA's Agricultural Marketing Service (AMS). If no such official classification is presented, the adjustment shall not be made.

(2) The adjustment for upland cotton provided for by paragraph (e)(1) of this section shall be determined by deducting from the adjusted world price:

(i) The difference between the Northern Europe price, and

(A) During the period when only one daily price quotation for each growth quoted for "coarse count" cotton C.I.F. northern Europe is available, the average of the quotations for the corresponding Friday through Thursday for the three lowest-priced growths of the growths quoted for "coarse count" cotton C.I.F. northern Europe.

(B) During the period when both current shipment prices and forward shipment prices are available for the growths quoted for "coarse count" cotton C.I.F. northern Europe, the result calculated by the following procedure:

Beginning with the first week covering the period Friday through Thursday which includes April 15 or, if both the average of the current shipment prices for the preceding Friday through Thursday for the three lowest-priced growths of the growths quoted for "coarse count" cotton C.I.F. northern Europe (hereinafter referred to as the "Northern Europe coarse count current price") and the average of the forward shipment prices for the preceding Friday through Thursday for the three lowestpriced growths of the growths quoted for "coarse count" cotton C.I.F. northern Europe (hereinafter referred to as the "Northern Europe coarse count forward price") are not available during that period, beginning with the first week covering the period Friday through Thursday after the week which includes April 15 in which both the Northern Europe coarse count current price and the Northern Europe coarse count forward price are available:

coarse count current price + 2 x Northern Europe coarse count forward price)/3.

(4) Week 7 through July 31: The Northern Europe coarse count forward price, minus

(ii) The difference between the applicable loan rate for a crop of upland cotton for M 12 inch (micronaire 3.5 through 4.9) cotton and the loan rate for a crop of upland cotton for SLM 132 inch (micronaire 3.5 through 4.9) cotton.

(iii) The result of the calculation as determined in accordance with § 26.3(e)(2) shall hereinafter be referred to as the "Northern Europe coarse count price."

(3) With respect to the determination of the Northern Europe coarse count price in accordance with paragraph (e)(2)(i) of this section:

(i) If no quotes are available for one or more days of the five-day period, the available quotes will be used;

(ii) If quotes for three growths are not available for any day in the fiveday period, that day will not be taken into consideration; and

(iii) If quotes for three growths are not available for at least three days in the five-day period, that week will not be taken into consideration, in which case the adjustment determined in accordance with paragraph (e)(2) of this section for the latest available week will continue to be applicable.

(f) The adjusted world price, determined in accordance with paragraph (b) of this section, shall be subject to further adjustments, as determined by the Executive Vice President, Commodity Credit Corporation, based upon the Schedule of Premiums and Discounts and the location differentials applicable to each warehouse location as announced in accordance with the upland cotton price support loan program for a crop of upland cotton.

(Northern Europe

[47 FR 56656, Dec. 28, 1982, as amended at 53 FR 31641, Aug. 19, 1988; 53 FR 47657, Nov. 25, 1988; 54 FR 5922, Feb. 7, 1989; 54 FR 41239, Oct. 6, 1989]

Subpart B-Determination of World Market Price for Rice

AUTHORITY: Secs. 601, 602, Pub. L. 99-198

(7 U.S.C. 1441, 1441-1).

SOURCE: 51 FR 28801, Aug. 12, 1986, unless otherwise noted.

§ 26.10 Applicability.

This subpart sets forth the procedures for determining the prevailing world market price for a class of rice (adjusted to United States quality and location) and the mechanism for periodically announcing such price as required by sections 101(i)(1)(B)(ii) and 101A(a)(5)(B) of the Agricultural Act of 1949, as amended.

§ 26.11 Determination of the prevailing world market price for a class of rice. (a) The prevailing world market price for a class of rice shall be determined by the Secretary of Agriculture based upon a review of prices at which rice is being sold in world markets and a weighting of such prices through the use of information such as changes in supply and demand of rice, tender offers, credit concessions, barter sales, government-to-government sales, special processing costs for coatings or premixes, and other relevant price indicators, and shall be expressed in U.S. equivalent values (free-on-board (FOB) vessel, U.S. port of export) per hundredweight as follows:

(1) U.S. grade No. 2, 4 percent broken kernels, long grain milled rice; (2) U.S. grade No. 2, 4 percent broken kernels, medium grain milled rice; and

(3) U.S. grade No. 2, 4 percent broken kernels, short grain milled rice. (b) Export transactions involving rice and all other related market information will be monitored on a continuous basis for the purpose of paragraph (a) of this section. Relevant information may be obtained for this purpose from U.S. Department of Agriculture field reports, international organizations, public or private research entities, international rice brokers, and any other source of reliable market information.

§ 26.12 Adjustment of world price to loan rate basis.

(a) The prevailing world market price for a class of rice adjusted to U.S. quality and location (hereinafter referred to as the "adjusted world price, loan rate basis"), which is deter

mined in accordance with paragraph (b) of this section, shall be applicable to the programs of the Department of Agriculture for the 1985 through 1990 crops of rice as provided in sections 101(i)(1)(B)(ii) and 101A(a)(5)(B) of the Agricultural Act of 1949, as amended.

(b) The adjusted world price, loan rate basis, for each class of rice shall equal the prevailing world market price for a class of rice (U.S. equivalent value) as determined in accordance with § 26.11 and adjusted to U.S. quality and location as follows:

(1) The prevailing world market price for a class of rice (U.S. equivalent value) determined in accordance with § 26.11 shall be adjusted to reflect an FOB mill position by deducting from such calculated price an amount which is equal to the estimated national average costs associated with

(i) The use of bags for the export of U.S. rice; and

(ii) The transfer of such rice from a mill location to FOB vessel (U.S. port of export) with such costs including, but not limited to, freight, unloading, wharfage, insurance, inspection, fumigation, stevedoring, interest, banking changes, storage, and administrative costs.

(2) The price determined in accordance with paragraph (b)(1) of this section shall be adjusted to reflect the market value of the total quantity of whole kernels contained in such milled rice by deducting the value of broken kernels contained therein, with such value of the broken kernels to be determined by multiplying the quantity of such broken kernels (4% per hundredweight) by the market value of such broken kernels. The market value of broken kernels shall be based upon the estimated domestic market values of all sizes of broken kernels.

(3) The price determined in accordance with paragraph (b)(2) of this section shall be adjusted to reflect the per pound market value of whole kernels by dividing the price by the quantity of whole milled kernels contained in the milled rice (96% per hundredweight).

(4) The price determined in accordance with paragraph (b)(3) of this sec