(Cite as: 56 FR 29224)
NOTICES
DEPARTMENT OF COMMERCE
[C-122-404]
Live Swine From Canada; Preliminary Results of Countervailing Duty
Administrative Review
Wednesday, June 26, 1991
AGENCY: International Trade Administration/Import Administration, Department of Commerce.
ACTION: Notice of preliminary results of countervailing duty administrative review.
SUMMARY: The Department of Commerce has conducted an administrative review of
(Cite as: 56 FR 29224)
the countervailing duty order on live swine from Canada for the period April 1, 1989 through March 31,
1990. We preliminarily determine the net subsidy to be Can$0.0051/lb. for sows and boars, and Can$0.0937/lb. for all
other live swine. We invite interested parties to comment on these preliminary results.
EFFECTIVE DATE: June 25, 1991.
FOR FURTHER INFORMATION CONTACT:Britt Doughtie or Maria MacKay, Office of Countervailing Compliance,
International Trade Administration, U.S. Department of Commerce, Washington, DC 20230; telephone: (202)
377-2786.
SUPPLEMENTARY INFORMATION:
Background
On August 8, 1990, the Department of Commerce (the Department) published in the Federal Register a notice of "Opportunity
to Request Administrative Review" (55 FR 32280) of the countervailing duty order on live swine from Canada
(50 FR 32880; August 15, 1985). On August 17, 1990, the National Pork Producers Council requested an administrative
review of the order. We initiated the review, covering the period April 1, 1989 through March 31, 1990,
(Cite as: 56 FR 29224)
on September 24, 1990 (55 FR 39032). The Department has now conducted that administrative review in accordance with
section 751(a) of the Tariff Act of 1930, as amended (the Tariff Act).
Scope of Review
Imports covered by this review are shipments of live swine from Canada. Such merchandise is classifiable under the
Harmonized Tariff Schedule (HTS) item numbers 0103.91.00 and 0103.92.00. The HTS item numbers are provided for
convenience and Customs purposes. The written description remains dispositive.
The review covers the period April 1, 1989 through March 31, 1990 and 39 programs.
Analysis of Programs
I. Federal Programs
1. Feed Freight Assistance Program
The Feed Freight Assistance (FFA) Program is administered by the Livestock Feed Board of Canada (the Board) under the
Livestock Feed Assistance Act of
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1966 (LFA). The Board acts to ensure: (1) The availability of feed grain to meet the needs of livestock feeders; (2) the
availability of adequate *29225
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storage space in Eastern Canada to meet the needs of livestock feeders; (3) reasonable stability in the price of feed grain
in Eastern Canada to meet the needs of livestock feeders; and (4) equalization of feed grain prices to livestock feeders in
Eastern Canada, British Columbia, the Yukon Territory or the Northwest Territories. Although this program is clearly
designed to benefit livestock feeders, FFA payments are also made to feed mills that transform the feed grain into livestock
feed, when these feed mills are the first purchasers of this grain. The Board makes payments related to the cost of feed grain
storage in Eastern Canada, and payments related to the cost of feed grain transportation to, or for the benefit of,
livestock feeders in Eastern Canada, British Columbia, the Yukon Territory and the Northwest Territories, in accordance
with the regulations of the LFA.
Because this program benefits only a specific group of enterprises or industries, namely livestock feeders and grain millers, in
specific areas, namely Eastern Canada, British Columbia, the Yukon Territory and the Northwest Territories, we
preliminarily determine that the program is countervailable. During the review period, payments were made to feed grain
users for transportation assistance.
The Board calculated that 3.25 percent of the total transportation
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expenditures for feed grain users receiving assistance under this program in FY 1989/90 benefited live swine producers
in the designated areas of Canada. Therefore, we divided the amount of feed transportation expenditures attributable to
live swine producers by the total weight of live swine produced in Eastern Canada (including 2/3 of Ontario, all
of Quebec, and the Maritime Provinces), and British Columbia during the review period. We then weight- averaged the benefit
by these areas' share of total Canadian exports of live swine, including sows and boars, to the United States. On this basis,
we preliminarily determine the benefits from this program during the review period for both sows and boars, and other live
swine, to be significantly less than Can$0.0001/lb., which is effectively zero.
II. Federal/Provincial Programs
1. National Tripartite Stabilization Scheme for Hogs
On June 27, 1985, the House of Commons passed Bill C-25, which authorized an amendment to the Agricultural Stabilization
Act (ASA), namely section 10.1. This amendment provided for the introduction of cost-sharing tripartite or bipartite
stabilization schemes involving the producer, the federal government and the provinces. Pursuant to section 10.1 of the ASA,
federal and provincial
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ministers have signed agreements covering: (1) Apples; (2) beans (including kidney/cranberry, white pea, and other colored
beans); (3) beef (including cow-calf, feeder cattle, and slaughter cattle); (4) hogs; (5) sugar beets; (6) lambs (including ewe
flock and home-raised); (7) onions; and (8) honey. The onion and honey agreements were signed during this review period.
Signatories to the National Tripartite Stabilization Scheme for Hogs include the provinces of Alberta, British Columbia,
Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan.
The general terms of the Tripartite scheme for hogs are as follows: All hog producers in participating pronvinces receive the
same level of support per unit; the cost of the scheme is shared equally between the federal government, the province, and
the producers; producer participation in the scheme is voluntary; the provinces may not offer separate stabilization plans or
other ad hoc assistance for hogs (with the exception of Quebec); and the federal government may not offer compensation to
swine producers in a province not a party to an agreement. The scheme must operate at a level that limits losses but does not
stimulate over-production.
The Tripartite Agreements provide for a five year phase-in period to adjust for differences between the Tripartite scheme and
the provincial programs still in effect. Most existing provincial stabilization programs are to be completely phased out by
1991. During the review period, five provincial
(Cite as: 56 FR 29224, *29225)
stabilization programs remained in effect, with programs in effect in three provinces that exported live swine to the
United States during the review period (see Section III).
Hogs eligible for stabilization payments under the Tripartite scheme must index 80 or above. Sows and boars are not eligible
for benefits because they are not indexed. Stabilization payments are made when the market price falls below the support
price. The difference between the support price and the average market price is the amount of the stabilization payment.
Section 10.1 of the ASA does not act in law to limit the number of commodities that may be covered under agreements.
Therefore, it is necessary to consider whether there is de facto specificity. To determine whether a program is limited to a
specific enterprise or industry, or group of enterprises or industries, we consider: (1) Whether the law of the foreign
government acts to limit the availability of a program; (2) the number of industries or groups thereof that actually use a
program; (3) whether there are dominant users of a program, or whether certain industries or groups thereof receive
disproportionately large benefits under a program; and (4) the extent to which a government exercises discretion in
conferring benefits under a program (see e.g., Preliminary Results of Countervailing Duty Administrative Reviews;
Carbon Steel Wire Rod from Malaysia (56 FR 14927; April 12, 1991); see also "Countervailing Duties; Notice of
Proposed Rulemaking and Request for Public
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Comments", section 355.43(b)(2), (54 FR 23379; May 31, 1989).
The Tripartite program was limited to only eleven commodities in eight agreements during FY 1989/90. Hog producers were
the dominant users of the program, accounting for over 81 percent of the total payouts made in all agreements in FY
1989/90, and 72 percent of total payouts in all schemes since the inception of the Tripartite program. Furthermore, there
are no explicit or standard procedures or criteria for evaluating Tripartite Agreement requests. Tripartite Agreements were
rejected for asparagus, and producers of sour cherries and corn requested but did not obtain agreements (see Final
Affirmative Countervailing Duty Determination; Fresh, Chilled and Frozen Pork from Canada; 54 FR 30777; July
24, 1989). For the foregoing reasons, in accordance with section 771(5)(B), we preliminarily determine that the Tripartite
program is countervailable because it is limited to a specific group of enterprises or industries.
During the review period, payouts for hogs were made under the Tripartite Agreements in each of the nine signatory
provinces. Six of these provinces exported to the United States during the review period. To calculate the benefit, we first
divided two-thirds (representing the federal and provincial portions) of the payments made in FY 1989/90 to producers in
each province by the total weight of live swine (minus sows and boars) produced in that province in FY 1989/90, and
calculated a benefit per pound on a province-by-province
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basis. We then weight-averaged each exporting province's per-pound benefit by that province's share of total Candian
exports of live swine (minus sows and boars) to the United States to calculate the average benefit per pound. On this
basis, we *29226
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preliminarily determine the benefit to be zero for sows and boars, and Can$0.0874/lb. for all other live swine during the
review period.
III. Provincial Price Stabilization Programs
1. British Columbia Farm Income Insurance Act--Swine Producer's Farm Income Stabilization Program (FIP)
The FIP was established in 1979 in accordance with the Farm Income Insurance Act of 1973 (the Farm Act), in order to
assure income for farmers when commodity market prices fluctuate below basic costs of production. Under the Farm Act,
individual commodity programs have been established for the following commodities: (1) Beef; (2) tree fruits; (3) blueberries;
(4) hogs; (5) processing vegetables; (6) processing strawberries; (7) lambs; and (8) potatoes. Guidelines for the receipt of
benefits by each commodity program are delineated in Schedule B of the Farm Act. Schedule B4 contains the guidelines for
swine producers.
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The program is administered by the provincial Ministry of Agriculture and Food and the British Columbia Federation of
Agriculture, and is funded equally by producers and the provincial government. Premiums are paid in all quarters regardless
of market results.
FIP payments are calculated quarterly based on the difference between costs of production and market returns. Participating
producers receive FIP payments for calendar quarters during which costs of production exceed market returns. The basic
costs of production and market returns are calculated quarterly according to a cost-of-production model described in the
Farm Act. The same per unit cost-of-production model is used for all products receiving benefits. Sows and boars are not
eligible for payments.
Because FIP is only available to farmers producing commodities specified in the Schedule B guidelines, we preliminarily
determine that this program is countervailable because payments were limited to a specific group of enterprises or
industries.
To calculate the benefit, we divided half of the province's stabilization payments (representing the provincial government's
share) during FY 1989/90 by the total weight of live swine (minus sows and boars) produced in British Columbia. We
then weight-averaged the benefit by British Columbia's share of total Canadian exports of live swine (minus sows and
boars) to the United States. On this basis, we preliminarily determine the benefit to be zero for
(Cite as: 56 FR 29224, *29226)
sows and boars and significantly less than Can$0.0001/lb., which is effectively zero, for other live swine during the
review period.
2. Quebec Farm Income Stabilization Insurance Programs (FISI)
The FISI was established in 1976 under the "Loi sur l'assurance-stabilisation des revenus agricoles." The program is
administered by the Regie des Assurances Agricoles du Quebec (the Regie). The purpose of the program is to guarantee a
positive net annual income to participants whose income is lower than the stabilized net annual income. The stabilized net
annual income is calculated according to a cost-of-production model that includes an adjustment for the difference between
the average wage of farm workers and the average wage of all other workers in Quebec. When the annual average farm worker
income is lower than the stabilized net annual income, the Regie makes a payment to the participant at the end of the year.
Two-thirds of the funding for the program is provided by the provincial government and one-third by producer assessments.
Participation in a stabilization scheme is voluntary. However, once a producer enrolls in a program, he must make a five-year
commitment. The maximum number of feeder hogs eligible to be insured is 5,000 per farmer, and a maximum of 400 sows
per farmer may also be insured. Whenever the balance in the FISI account is
(Cite as: 56 FR 29224, *29226)
insufficient to make payments to participants, the provincial government lends the needed funds to the program at market
rates. The principal and interest on these loans are repaid by the Regie using the producer and provincial contributions.
Since Quebec joined the federal government's Tripartite Price Stabilization Scheme for hogs in February 1989, the FISI
scheme for hogs operates by covering only the difference between payments made under the Tripartite scheme and what
FISI payments would have been in absence of the Tripartite scheme. While some farmers have opted for single coverage
under the Tripartite scheme, all producers who have maintained enrollment with FISI are also enrolled in the Tripartite
scheme.
FISI benefits are provided through 11 schemes covering fifteen different producer groups, including: (1) Feeder calves; (2)
feeder cattle; (3) slaughter cattle; (4) grain-fed calves; (5) milk-fed calves; (6) piglets; (7) feeder hogs; (8) lambs; (9) potatoes;
(10) grain corn; (11) wheat; (12) barley; (13) oats and mixed grains; (14) sugar beets; and (15) soybeans. Soybean producers
enrolled in FISI during the review period. Several major agricultural commodities, such as eggs, dairy products, and poultry,
which make up a large portion of Quebec's total agricultural production, are not covered under this program. Since 1981,
soybeans are the only new commodity to be enrolled in FISI. Because this program has been
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consistently providing benefits to the same group of commodities (with the exception of the addition of soybeans during the
review period) over the last nine years, representing the majority of the program's life, we determine that it is limited to a
specific group of enterprises or industries and is therefore countervailable.
To calculate the benefit, we multiplied the total payments made under both the piglet and feeder hog programs during the
review period by two-thirds (representing the provincial portion). We divided this amount by the total weight of live
swine (including sows) produced in Quebec to get the average benefit per pound. However, because no sows were
exported to the U.S. during the review period, we then weight-averaged the benefit by Quebec's share of total Canadian
exports of live swine (minus sows and boars) to the United States. On this basis, we preliminarily determine the benefit
to be zero for boars and Can$0.0001/lb. for sows and other live swine during the review period.
3. Saskatchewan Hog Assured Returns Program (SHARP)
SHARP was established in 1976 pursuant to the Saskatchewan Agricultural Returns Stabilization Act. Under this act, the
provincial government may establish a stabilization plan for any agricultural commodity. However, only
(Cite as: 56 FR 29224, *29226)
hogs and cattle have such plans. SHARP provides stabilization payments to hog producers in Saskatchewan at times when
market prices fall below a designated "floor price." The program is administered by the Saskatchewan Pork Producers'
Marketing Board (the Board) on behalf of the provincial Department of Agriculture. Participation is voluntary and is open to
all hog producers in the province. Coverage is limited to 1,500 indexed hogs per producer each quarter.
In accordance with the Tripartite Agreement, SHARP was scheduled to have been terminated by March 31, 1991. No
producers have been allowed to join SHARP since December 31, 1985.
The program is funded by levies on the sale of hogs covered by the program. Levies from participating producers range from
1.5 to 4.5 percent of market *29227
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returns on the sale of hogs and are matched by the province. After the Tripartite Agreement was implemented on July 1,
1986, SHARP payments were reduced by the amount of Tripartite scheme payments. Whenever the balance in the SHARP
account is insufficient to make payments to participants, the provincial government lends the needed funds to the program at
terms consistent with commercial considerations. The principal and interest on these loans are repaid by the Board using the
producer and provincial contributions.
The floor price for this program is calculated quarterly, and stabilization payments are made when the market price is below
the floor price. Payments
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were made to indexed hog producers in each quarter of the review period. Sows and boars were not eligible for payments.
Because payments from this program were provided to indexed hogs and cattle only, we preliminarily determine that the
program is limited to a specific group of enterprises or industries and is therefore countervailable.
To calculate the benefit, we divided half of the province's stabilization payments (representing the provincial government's
portion of the payments) during FY 1989/90 by the total weight of live swine (minus sows and boars) produced in
Saskatchewan. We then weight-averaged the benefit by Saskatchewan's share of total Canadian exports of live swine
(minus sows and boars) to the United States. On this basis, we preliminarily determine the benefit to be zero for sows and
boars and Can$0.0005/lb. for other live swine during the review period.
IV. Other Provincial Programs
1. Alberta Crow Benefit Offset Program
The purpose of this program, which is administered by the Alberta Department of Agriculture, is to eliminate market
distortions in feed grain prices created by the federal government's policy on grain transportation. Assistance is
(Cite as: 56 FR 29224, *29227)
provided on feed grain produced in Alberta, feed grain produced outside Alberta but sold in Alberta, and feed grain produced
in Alberta to be fed to livestock on the same farm. The government provides certificates to registered feed grain users and
registered feed grain merchants, which can be used as partial payments for grains purchased from grain producers. Feed
grain producers who feed their own grain to their own livestock submit a claim directly to the government for payment.
Hog producers receive benefits in one of three ways. Hog producers who do not grow any of their own feed grain receive
certificates which are used to cover part of the cost of purchasing grain. Second, hog producers who grow all of their own
grain submit a claim to the government of Alberta for direct payment. Finally, hog producers who grow part of their own
grain but also purchase grain receive both certificates and direct payments.
Because this program is limited to feed grain users, we preliminarily determine that it is limited to a specific group of
enterprises or industries, and is therefore countervailable.
The payment from this program during the review period was Can$13 per ton through August 31, 1989, and Can$10 per ton
from September 1, 1989 through the end of the review period. To determine the benefit to swine producers from this
program, we first calculated a hog grain consumption-to-weight-gain ratio, using information from Economic Indicators of
the Farm Sector, Costs of
(Cite as: 56 FR 29224, *29227)
Production--Livestock and Dairy, 1989, a U.S. Department of Agriculture publication. From this document, we determined
that 3.483 pounds of grain are required to grow 1 pound of swine. Because sows and boars also benefit from this program, we
use the generally accepted weight of 225 pounds as the average weight of hogs, including both market hogs and sows and
boars. Weanlings weigh on average 40 pounds at the time they begin eating grains. Swine therefore increase in weight 185
pounds on average prior to sale for slaughter. We calculated that each hog consumes approximately 644 pounds of grain by
multiplying this 185 pound weight gain by the 3.483 ratio.
Using figures from the Alberta Supply and Disposition Tables, we estimated the total metric tons of grain consumed by
livestock in Alberta during the review period. For swine production figures, we used the Supply-Disposition Balance Sheets of
Statistics Canada. We multiplied this number by the average grain consumption per hog and divided the result by total
grain used to feed livestock animals. We thus calculated live swine's percentage of total livestock consumption of grain
in Alberta to be 14.88 percent. We then multiplied this percentage by the total value of certificates and payments received
during the review period to calculate the benefit to swine producers from this program. We then weight-averaged the benefit
by Alberta's share of total Canadian exports of live swine, including sows and boars, to the United States. On this basis,
we preliminarily determine the benefit to be Can
(Cite as: 56 FR 29224, *29227)
$0.0045/lb. for both sows and boars and other live swine during the review period.
2. Alberta Livestock and Beeyard Compensation Program (Livestock Predator Compensation Sub-program)
This program compensates Alberta livestock producers for loss of food- producing livestock, including cattle, sheep, hogs,
goats, rabbits and poultry, to predators. The Alberta Departemt of Agriculture administers this program, and provides
assistance in the form of grants. The amount of the grants represents a partial payment of up to 50 percent of the value of the
killed livestock.
Because this program provides payments that are limited to livestock producers, we preliminarily determine that the
program is limited to a specific group of enterprises or industries and is therefore countervailable. To calculate the benefit,
we divided the total payment to hog producers under this program by the total weight of live swine produced in Alberta
during the review period. We then weight-averaged the result by Alberta's share of Canadian exports of live swine to the
United States during the review period. On this basis, we preliminarily determine the benefits from this program during the
review period for both sows and boars, and other live swine, to be
(Cite as: 56 FR 29224, *29227)
significantly less than Can$0.0001/lb., which is effectively zero.
3. Alberta Farm Water Grant program.
This program, operated under the Department of Alberta Transportation and Utilities Act, Utilities Grants Regulation,
provides financial assistance, in the form of grants, to all Alberta farmers and ranchers planning to construct water
transmission facilities to overcome drought conditions. The program is available to all Alberta farmers and ranchers.
Because this program is not limited to a particular enterprise or industry, we preliminarily determine that this program is not
countervailable.
4. British Columbia (B.C.) Feed Grain Market Development Program
This program was initiated on August 1, 1987, and was terminated at the end of the 1988 crop year, with the last payments
being issued in February 1990. It was designed to address two issues: (1) The cash-flow problem for the grain producers in
the Peace River area of Northern British Columbia, and (2) the drain of livestock into Alberta for feeding and slaughter
(primarily for cattle) due to the Alberta Crow Benefit *29228
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Offset Program. The program provided Can$15/ton to the grain producers when the grain was sold in British
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Columbia. Livestock producers purchasing this grain were paid in Can$11/ton of feed grain purchased. The payments
provided an incentive for the grain users to purchase the more expensive (due to transportation costs) B.C. grain, and an
incentive for the B.C. grain producers to sell in B.C., rather than exporting the grain.
Because this program is limited to grain producers and grain users in B.C., we preliminarily determine that it is limited to a
specific group of enterprises or industries and is therefore countervailable.
To calculate the benefit, we divided the amount paid to swine producers by the total weight of live swine produced in
British Columbia during the review period. We then weight-averaged the result by British Columbia's share of total exports of
live swine, including sows and boars, to the United States during the review period. On this basis, we preliminarily
determine the benefits from this program during the review period for both sows and boars, and other live swine, to be
significantly less than Can$0.0001/lb., which is effectively zero.
5. Ontario Farm Tax Reduction Program
This program replaced the Ontario Farm Tax Reduction Program. Eligible farmers receive a rebate of up to 100 percent of
property taxes levied on farm
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properties for municipal and school purposes; levied for local improvements under the Local Improvement Act; levied
under the Provincial Land Tax Act or the Local Roads Boards Act; and imposed under the Local Services Boards Act, with
rebate reductions for off-farm income above set levels. Farm property includes farm lands and outbuildings. Eligible
properties include farms that produce food, fish, breeding horses and donkeys, pregnant mare's urine, fur- bearing animals,
tobacco, flowers, nursery stock, sod or ornamentals.
Any resident of Ontario may receive a rebate if he/she owns and pays taxes on eligible properties. Residents of Southern and
Western Ontario must produce farm products with a gross value of at least Can$8,000 and resident of Northern and Eastern
Ontario must produce products with a gross value of at least Can $5,000. Because the eligibility criteria vary depending on
the region of Ontario in which the farm is located, we preliminarily determine that this program is countervailable.
To calculate the benefit, we divided total rebates to swine producers in Eastern and Northern Ontario with sales within the
Can$5,000 to Can$8,000 range by the total weight of live swine produced in Ontario during the review period. We then
weight-averaged the result by Ontario's share of Canadian exports of live swine, including sows and boars, to the United
States during the review period. On this basis, we preliminarily determine the benefits from this program during the review
period for both sows and boars, and other live
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swine, to be significantly less than Can$0.001/lb., which is effectively zero.
6. Ontario Pork Industry Improvement Plan (OPIIP)
This five-year plan commenced on April 1, 1986, and was to be terminated on March 31, 1991. The plan provides grants to
Ontario swine producers to enable them to improve their productivity, profitability and competitive position by increasing
their efficiency. To be eligible for the plan, producers must be residents of Ontario, own or lease facilities in Ontario for swine
production and have at least 20 sow equivalents. One sow equivalent is equal to one sow or 15 market weight hogs marketed
annually. Ten types of grants are available to swine producers under this plan. These grants are for the following: Swine
production analysis, enterprise analysis, swine ventilation, productivity and quality improvement, artificial insemination,
rodent control, private veterinary herd health program, education, feed analysis, and herd health improvement. During the
review period, Ontario swine producers received grants under each of these programs.
Because the OPIIP provides grants only to swine producers, we preliminarily determine that it is limited to a specific
enterprise or industry and is therefore countervailable.
To calculate the benefit, we divided the total value of all grants provided to
(Cite as: 56 FR 29224, *29228)
swine producers during the review period by the total weight of live swine produced in Ontario during this period. We
then weight-averaged the result by Ontario's share of total Canadian exports of live swine, including sows and boars, to
the United States during the review period. On this basis, we preliminarily determine the benefits from this program to be
Can$0.002/lb. for both sows and boars and other live swine during the review period.
7. Ontario Dog Licensing and Livestock and Poultry Compensation Program
This program, administered by the Farm Assistance Branch of the Ontario Ministry of Agriculture and Food, provides
assistance in the form of grants to compensate livestock and poultry producers when a dog or wolf kills or injures livestock or
poultry. Swine producers apply for and receive compensation through the local municipal government office. The
municipality determines the value and cause of the damage and then compensates the livestock or poultry producer for the
damage. The Ontario Ministry of Agriculture and Food reimburses the municipality if the damage was caused by wolves.
Because this program provides payments that are limited to livestock and poultry producers, we preliminary determine that
it is limited to a specific group of enterprises or industries and is therefore countervailable. To calculate the benefit, we
divided the total payment to hog producers under
(Cite as: 56 FR 29224, *29228)
this program by the total weight of live swine produced in Ontario during the review period. We then weight-averaged
the result by Ontario's share of Canadian exports of live swine to the United States during the review period. On this
basis, we preliminarily determine the benefits from this program during the review period for both sows and boars, and other
live swine, to be significantly less than Can$0.0001/lb., which is effectively zero.
7. Ontario Rabies Indemnification Program
This program, administered by the Farm Assistance Branch of the Ontario Ministry of Agriculture and Food, provides
assistance in the form of grants to compensate livestock producers, including producers of cattle, horses, sheep, swine, and
goats, for damage caused by rabies. Producers apply for compensation through a federal inspector, who determines that the
animal is suffering from rabies and orders the animal to be destroyed. A maximum of Can $100 may be paid by the province
of Ontario per hog under this program, with the Ontario Ministry of Agriculture (OMAF) reimbursing the province for 40
percent of the total amount paid.
Because this program provides payments that are limited to producers of cattle, horses, sheep, swine, and goats, we
preliminarily determine that this program is limited to a specific group of enterprises or industries and is
(Cite as: 56 FR 29224, *29228)
therefore countervailable. To calculate the benefit, we divided the total payment to swine producers under this program by
the total weight of live swine produced in Ontario during the review period. On this basis, we preliminarily determine the
benefits *29229
(Cite as: 56 FR 29224, *29229)
from this program during the review period for both sows and boars, and other live swine, to be significantly less than
Can $0.0001/lb., which is effectively zero.
9. Ontario Soil Conservation and Environmental Protection Assistance Program (Manure Storage Subprogram)
This program, administered by the Soil and Water Management Branch of the Ontario Ministry of Agriculture and Food,
provides assistance in the form of grants to contribute to Ontario farmers' costs of soil conservation and environmental
protection facilities, as well as providing assistance to various Ontario conservation authorities and soil and crop
improvement associations. To meet eligibility requirements, an Ontario farmer must produce, in normal production years,
agricultural products having a gross value of at least Can $12,000. The manure storage subprogram falls under the category
of environmental protection projects, with other subprograms encompassing milkhouse/parlor washwater disposal and
pesticide-handling facilities.
Because the manure storage program provides payments that are limited to
(Cite as: 56 FR 29224, *29229)
livestock producers with a specified income level, we preliminarily determine that the program is limited to a specific group
of enterprises or industries and is therefore countervailable. To calculate the benefit, we divided the total payment to swine
producers under this program by the total weight of live swine produced in Ontario during the review period. We then
weight-averaged the result by Ontario's share of Canadian exports of live swine to the United States during the review
period. On this basis, we preliminarily determine the benefits from this program during the review period for both sows and
boars, and other live swine, to be significantly less than Can$0.0001/lb., which is effectively zero.
10. Quebec Productivity Improvement and Consolidation of Livestock Production Program
This program was established in April 1987 to provide financial assistance to livestock producers for the diversification and
consolidation of farm operations. The program is limited to producers with small farming operations and is divided into eight
subprograms. Swine producers are eligible only for the Farm Building Improvements Subprogram. This subprogram
provides grants for changes to existing piggeries in order to consolidate single-purpose operations into farrow-to-finish
operations. The grants cover up to 30 percent of the
(Cite as: 56 FR 29224, *29229)
actual cost of the conversion as well as the purchase and installation of special equipment.
To be eligible for assistance, applicants must be recognized farm producers according to the Farm Producers' Act and be
registered with the Bureau de Renseignements Agricoles. Producers operating farrowing facilities must maintain between 40
and 80 sows, and finishing farms must maintain between 500 and 1,000 hogs. The maximum assistance provided is Can$200
per sow and Can$25 per hog, with a amximum of Can$15,000 per farm operation for the duration of the program.
Because this program is limited to livestock producers, we preliminarily determine that it is limited to a specific group of
enterprises or industries and is therefore countervailable.
To calculate the benefit, we divided the total payment to swine producers by the total weight of live swine produced in
Quebec during the review period. We then weight-averaged the result by Quebec's share of total Canadian exports of swine,
including sows and boars to the United States during the review period. On this basis, we preliminarily determine the benefits
from this program during the review period for both sows and boars, and other live swine, to be significantly less than
Can$0.0001/lb., which is effectively zero.
11. Saskatchewan Livestock Investment Tax Credit
(Cite as: 56 FR 29224, *29229)
Saskatchewan's 1984 Livestock Tax Credit Act provides tax credits to individuals, partnerships, cooperatives and
corporations who owned and fed livestock marketed or slaughtered by December 31, 1989. Claimants must be residents of
Saskatchewan and pay Saskatchewan income taxes. Eligible claimants receive credits of Can$25 for each bull, steer or heifer,
Can$2 for each lamb and Can$3 for each hog, and the tax credits may be carried forward for up to seven years. The credit is
available to hogs indexing 80 or higher; sows and boars are not eligible for this program.
Because this program is limited to livestock producers, we preliminarily determine that it is limited to a specific group of
enterprises or industries and is therefore countervailable.
To calculate the benefit, we divided the total amount of hog credits used by the total weight of live swine (minus sows
and boars) produced in Saskatchewan. We then weight-averaged the result by Saskatchewan's share of total exports of live
swine (minus sows and boars) to the United States. On this basis, we preliminarily determine the benefit from this program
to be zero for sows and boars and Can$0.0005/lb. for all other live swine during the review period.
12. Saskatchewan Livestock Facilities Tax Credit Program
(Cite as: 56 FR 29224, *29229)
This program was implemented on January 1, 1986 and provides tax credits to livestock producers applying before
December 31, 1989, for investment in livestock production facilities. The credit may only be used to offset provincial taxes.
Applications for tax credits must be received by the Saskatchewan Ministry of Agriculture no later than six months after the
project is completed.
Livestock covered by this program can be raised for either breeding or slaughter. Eligible livestock include cattle, horses,
sheep, swine, goats, poultry, bees, fur-bearing animals raised in captivity, or any other designated animals. Investments
covered under the program include new buildings, improvements to existing livestock facilities, and any stationary
equipment related to livestock facilities.
The program pays 15 percent of 95 percent of project costs, or 14.25 percent of total costs, in order not to overlap with the
Business Investment Tax Credit Program, a federal program. Participants may carry forward any unused credit for up to
seven years. Because this program is limited to livestock producers, we preliminarily determine that it is limited to a specific
group of enterprises or industries and is therefore countervailable.
To calculate the benefit, we divided the tax credits used by hog producers during the review period by the total weight of
live swine produced in
(Cite as: 56 FR 29224, *29229)
Saskatchewan during the review period. We then weight-averaged the result by Saskatchewan's share of total exports of live
swine, including sows and boars, to the United States during the review period. On this basis, we preliminarily determine
the benefits from this program during the review period for both sows and boars, and other live swine, to be
Can$0.0002/lb.
Other Programs
We examined the following programs and preliminary determine that exporters of live swine from Canada to the
United States did not use them during the review period: (1) New Brunswick Livestock Incentives Program; (2) New
Brunswick Agricultural Development Act--Swine Assistance Program; (3) New Brunswick Hog Marketing Program; (4) New
*29230
(Cite as: 56 FR 29224, *29230)
Brunswick Swine Industry Financial Restructing Program; (5) Ontario Bear Damage to Livestock Compensation Program; (6)
Newfoundland Weanling Bonus Incentive Policy; (7) Newfoundland Hog Price Stabilization Program; (8) Nova Scotia Swine
Herd Health Policy; (9) Nova Scotia Improved Sire Policy; (10) Prince Edward Island Hog Price Stabilization Program; (11)
Prince Edward Island Swine Development Program; (12) Prince Edward Island Interest Payments on Assembly Yard Loan;
(13) Ontario Export Sales Aid; (14) Western Diversification Program; (15) Federal Atlantic Livestock Feed Initiative; (16)
Canada-Saskatchewan Agri-Food
(Cite as: 56 FR 29224, *29230)
Development Agreement; (17) Canada-Manito Agri-Food Development Agreement; (18) Agricultural Products Board
Program; (19) Canada-Ontario Canadian Western Agribition Livestock Transportation Assistance Program; (20) Prince
Edward Island Swine Incentive Policy; (21) New Brunswick Swine Assistance Policy on Boars; and (22) Agricultural
Stabilization Act.
Preliminary Results of Review
As a result of our review, we preliminarily determine the net subsidy for the period April 1, 1989 through March 31, 1990 to
be Can$0.0051/lb for sows and boars and Can$0.0937/lb. for all other live swine.
The Department intends to instruct the Customs Service to assess countervailing duties of Can$0.0051/lb. on
shipments of sows and boars and Can $0.0937/lb. on shipments of all other live swine exported on or after April 1, 1989
and on or before March 31, 1990.
As provided by section 751(a)(1) of the Tariff Act, the Department also intends to instruct the Customs Service to collect cash
deposits of estimated countervailing duties of Can$0.0051/lb. on shipments of sows and boars, and Can $0.0937/lb.
on shipments of all other live swine entered, or withdrawn from warehouse, for consumption on or after the date of
publication of the final results of this review.
(Cite as: 56 FR 29224, *29230)
Parties to the proceeding may request disclosure of the calculations methodology and interested parties may request a
hearing not later than 10 days after the date of publication of this notice. Interested parties may submit written arguments in
case briefs on these preliminary results within 30 days of the date of publication. Rebuttal briefs, limited to arguments raised
in case briefs, may be submitted seven days after the time limit for filing the case brief. Any hearing, if requested, will be held
seven days after the scheduled date for submission of rebuttal briefs. Copies of case briefs and rebuttal briefs must be served
on interested parties in accordance with 19 CFR 355.38(e).
Representatives of parties to the proceeding may request disclosure of proprietary information under administrative
protective order no later than 10 days after the representative's client or employer becomes a party to the proceeding, but in
no event later than the date the case briefs, under 19 CFR 355.38(c), are due.
The Department will publish the final results of this administrative review including the results of its analysis of issues raised
in any case or rebuttal briefs or at a hearing.
This administrative review and notice are in accordance with section 751(a)(1) of the Tariff Act (19 U.S.C. 1675(a)(1)) and 19
CFR 355.22.
Dated: June 17, 1991.
(Cite as: 56 FR 29224, *29230)
Eric I. Garfinkel,
Assistant Secretary for Import Administration.
[FR Doc. 91-15228 Filed 6-25-91; 8:45 am]
BILLING CODE 3510-DS-M