[Federal Register Volume 63, Number 227 (Wednesday, November 25, 1998)]
[Proposed Rules]
[Pages 65133-65134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31563]
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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. 63, No. 227 / Wednesday, November 25, 1998 /
Proposed Rules
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 729
RIN 0560-AF48
1999-Crop Peanut National Poundage Quota for Quota Peanuts
AGENCY: Farm Service Agency, USDA.
ACTION: Proposed rule.
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SUMMARY: The Agricultural Adjustment Act of 1938, (the 1938 Act) as
amended, requires that the national peanut poundage quota for the 1999
crop be announced by December 15, 1998. This proposed rule suggests a
national poundage quota figure in the range between 1,175,000 short
tons (st) and 1,225,000 st.
DATES: Comments must be received by December 8, 1998, in order to be
assured of consideration.
ADDRESSES: Comments must be submitted to the Director, Tobacco and
Peanuts Division, Farm Service Agency (FSA), United States Department
of Agriculture, STOP 0514, 1400 Independence Avenue, S.W., Washington,
DC 20250-0514. All written submissions will be made available for
public inspection from 8:15 a.m. to 4:45 p.m., Monday through Friday,
except holidays, in Room 5750-South Building, 1400 Independence Avenue,
S.W., Washington, DC 20250-0514.
FOR FURTHER INFORMATION CONTACT: Kenneth M. Robison, Tobacco and
Peanuts Division, FSA, USDA, STOP 0514, 1400 Independence Avenue, S.W.,
Washington, DC 20250-0514, telephone 202-720-9255. Copies of the cost-
benefit assessment prepared for the rule can be obtained from Mr.
Robison.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule has been determined to be significant for
purposes of Executive Order 12866 and, therefore, has been reviewed by
OMB.
Federal Assistance Program
The title and number of the Federal Assistance Program, as found in
the Catalog of Federal Domestic Assistance, to which this rule applies
are: Commodity Loans and Purchases--10.051.
Executive Order 12998
This proposed rule has been reviewed in accordance with Executive
Order 12998. The provisions of this proposed rule do not preempt State
laws, are not retroactive, and do not involve administrative appeals.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this proposed rule since neither the Farm Service Agency
(FSA) nor Commodity Credit Corporation (CCC) are required by 5 U.S.C.
553 or any other provision of law to publish a notice of proposed
rulemaking with respect to the subject of these determinations.
Paperwork Reduction Act
This proposed amendment does not contain information collections
that require clearance by the Office of Management and Budget under the
provisions of 44 U.S.C. chapter 35.
Unfunded Federal Mandates
This proposed rule contains no Federal mandates under the
regulatory provisions of Title II of the Unfunded Mandate Reform Act
(UMRA), for State, local, and tribal governments or the private sector.
Thus, this rule is not subject to the requirements of sections 202 and
205 of the UMRA.
Discussion
This proposed rule would amend 7 CFR part 729 to set forth the
1999-crop peanut national poundage quota.
Determination of the Quota
Peanut producers voting in a mail referendum December 1 through 4,
1997, approved poundage quotas for the 1998 through 2002 marketing
years (MY) by an affirmative vote of 94.8 percent. Therefore, as
provided for in the 1938 Act, the Secretary is required to administer a
peanut program in which marketings are governed through the use of
federally-granted quota and in which price support is offered.
Section 358-1(a)(1) of the 1938 Act, as amended by the Federal
Agricultural Improvement and Reform Act of 1996 (the 1996 Act),
requires that the national poundage quota for peanuts for each of the
1996 through 2002 MYs be established by the Secretary at a level that
is equal to the quantity of peanuts (in tons) that the Secretary
estimates will be devoted in each MY to domestic edible use (excluding
seed use) and related uses. Under the 1996 amendments to the 1938 Act,
seed use remains a quota use but, unlike in the past, the seed aspect
of the quota is accounted for through the grant of a temporary seed
quota to all producers--hence, seed is no longer part of the basic
quota calculation which will be codified through this determination.
The MY for 1999-crop peanuts runs from August 1, 1999, through July 31,
2000.
The national poundage quota for MY 1998 was set at 1,167,000 st.
This rule proposes that the national poundage quota for MY 1999 be set
between 1,175,000 st and 1,225,000 st based on the following data:
Estimated Domestic Edible, Excluding Seed, and Related Uses for 1999-
Crop Peanuts With Marketing Levels of 98.4 Percent and 94.4 Percent
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Farmer Stock Equivalent
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(Short tons)
Item -------------------------
98.4% of 94.4% of
Quota Quota
Marketed Marketed
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Regular domestic food use..................... 984,000 984,000
Related uses:
Crushing residual........................... 128,500 128,500
Shrinkage and other losses.................. 44,000 44,000
Unused quota.................................. 18,500 68,500
Totals.................................... 1,175,000 1,225,000
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The estimate of 1999 domestic food use was developed in two steps.
First, normal commercial use was estimated based upon figures from the
USDA Interagency Commodity Estimates Committee (ICEC) adjusted to take
out peanut imports, peanut butter imports, and peanut butter exports
(which are normally comprised of additional peanuts only). Then, farm
sales and other direct marketings to consumers
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were added based upon differences between production data and Federal-
State Inspection Service inspection data. Insofar as related uses are
concerned, an added allowance is made for the normal crushing residual
that cannot effectively be used for food use and that amount has
traditionally been expected to be about 12 percent, on a farmer stock
basis, of the total of MY domestic production. An allowance for
shrinkage and other losses is made to account for reduced kernel and
other kernel losses during storage, using the customary factor of 4
percent of domestic food use. In addition, disaster transfers of poor
quality peanuts are included as part of other losses. Finally the
unused quota allowance goes to those instances where the farmer cannot
fulfill a quota either because of under-planting or because the farmer
is unable to produce enough Segregation 1 peanuts to fulfill the full
quota. Because of the program changes in the 1996 Act, which have been
outlined in previous notices, there is now a greater incentive than in
the past to fully market the quota and it is expected that, after
discounting for quality problems, somewhere between 94.4 percent and
98.4 percent of the quota will be marketed.
In MY 1996 about 97.3 percent was marketed, in MY 1997 about 99.7
percent of quota was marketed and for MY 1998 between 94 and 98 percent
of the quota is anticipated to be marketed. Also, it is anticipated
that between 94.4 and 98.4 percent of the MY 1999 quota will be
marketed.
The proposed 1999 quota range, as set forth above, reflects
expected growth in domestic consumption of peanut products through
government purchases, new uses and a small increase in demand resulting
from lower peanut support prices in recent years. Overall demand,
including imports, is projected to increase about 2 percent. However,
government support purchases in MY 1997 have increased about 15 percent
from 28,516 st in MY 1996 to 32,799 st in MY 1997.
List of Subjects in 7 CFR Part 729
Peanuts, Penalties, Poundage quotas, Reporting and recordkeeping
requirements.
Accordingly, it is proposed that 7 CFR parts 729 be amended as
follows:
PART 729--PEANUTS
1. The authority citation for 7 CFR part 729 shall continue to read
as follows:
Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375, and
7271.
2. Section 729.216 paragraph (c) is revised to read as follows:
Sec. 729.216 National poundage quota.
* * * * *
(c) Quota determination for individual marketing years:
(1) The national poundage quota (excluding seed) for quota peanuts
for marketing year 1996 is 1,100,000 short tons.
(2) The national poundage quota (excluding seed) for quota peanuts
for marketing year 1997 is 1,133,000 short tons.
(3) The national poundage quota (excluding seed) for quota peanuts
for marketing year 1998 is 1,167,000 short tons.
(4) The national poundage quota (excluding seed) for quota peanuts
for marketing year 1999 will be set between 1,175,000 and 1,225,000
short tons.
Signed at Washington, DC, on November 20, 1998.
Parks Shackelford,
Acting Administrator, Farm Service Agency.
[FR Doc. 98-31563 Filed 11-20-98; 4:37 pm]
BILLING CODE 3410-05-P
