[Federal Register Volume 59, Number 216 (Wednesday, November 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27768]
[[Page Unknown]]
[Federal Register: November 9, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 997
[Docket No. FV94-997-2FIR]
Clarifying and Updating Provisions Regulating the Quality of
Domestically Produced Peanuts Handled by Persons Not Subject to the
Peanut Marketing Agreement
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim rule that
clarified that peanut handlers not signatory to Peanut Marketing
Agreement No. 146 (Agreement) may store and shell certain Segregation 2
seed peanut lots with Segregation 1 seed peanut lots when such lots are
produced under the auspices of a State agency which regulates or
controls their production. The interim rule also updated information on
the laboratories qualified to perform aflatoxin testing of shelled
peanuts, and certain cleaned inshell peanuts. Allowing peanut handlers
to commingle certain seed peanut lots reduces the space and costs
needed to store seed peanuts. Updating laboratory information should
assist handlers in moving peanuts to market. These changes are intended
to bring the non-signatory handling requirements into conformity with
those specified in the Agreement.
EFFECTIVE DATE: December 9, 1994.
FOR FURTHER INFORMATION CONTACT: Richard Lower, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone (202) 720-
2020, facsimile (202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued pursuant to requirements
of the Agricultural Marketing Agreement Act of 1937, as amended (7
U.S.C. 601-674), hereinafter referred to as the ``Act.''
The Department is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule. This action is not intended to have
retroactive effect. There are no administrative procedures which must
be exhausted prior to any judicial challenge to the provisions of this
rule.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this rule on small
entities. The purpose of the RFA is to fit regulatory actions to the
scale of business subject to such actions in order that small
businesses will not be unduly or disproportionately burdened.
There are approximately 45 handlers of peanuts who have not signed
the Agreement who are subject to the regulations contained herein.
Small agricultural service firms are defined by the Small Business
Administration (13 CFR 121.601) as those whose annual receipts are less
than $5,000,000. It is estimated that most of the handlers are small
entities. Most producers doing business with these handlers are also
small entities. Small agricultural producers have been defined as those
having annual receipts of less than $500,000.
In 1993, the reported U.S. production, mostly covered under the
Agreement, was approximately 3.33 billion pounds of peanuts, a 22
percent decrease from 1992 and the lowest level since 1983. The
preliminary 1993 peanut crop value is $991.65 million, 77 percent of
the 1992 crop value.
After aflatoxin was found in peanuts in the mid-1960's, the
domestic peanut industry has sought to minimize aflatoxin contamination
in peanuts and peanut products. Under authority of the Act, Peanut
Marketing Agreement No. 146 and the Peanut Administrative Committee
(Committee) were established by the Secretary in 1965. The Agreement
was signed by a majority of domestic peanut handlers.
Public Law 101-220, enacted December 12, 1989, amended section
608(b) of the Act to require that all peanuts handled by persons who
have not entered into the Agreement (non-signers) be subject to quality
and inspection requirements to the same extent and manner as are
required under the Agreement. It is estimated that 5 percent of the
domestic peanut crop is marketed by non-signatory handlers and the
remainder of the crop is handled by signatory handlers.
Under the non-signer provisions, no peanuts may be sold or
otherwise disposed of for human consumption if the peanuts fail to meet
the quality requirements of the Agreement. Regulations to implement
Public Law 101-220 were issued and made effective on December 4, 1990
(55 FR 49980) and amended several times thereafter, and are published
in 7 CFR part 997. All such amendments were made to ensure that the
non-signer handling requirements remain consistent with modifications
to the handling requirements applied to signatory handlers under the
Agreement. Violation of those regulations may result in a penalty in
the form of an assessment by the Secretary equal to 140 percent of the
support price for quota peanuts. The support price for quota peanuts is
determined under section 108B of the Agricultural Act of 1949 (7 U.S.C.
1445c-3) for the crop year during which the violation occurs.
The intent of P.L. 101-220 and the objective of the Agreement are
to insure that only wholesome peanuts of good quality enter edible
market channels. Under the non-signer and Agreement regulatory
provisions, farmers' stock peanuts with visible Aspergillus flavus mold
(the principal source of aflatoxin) are required to be diverted to non-
edible uses. Each lot of shelled peanuts and certain lots of inshell
peanuts, destined for edible channels, must be officially sampled and
chemically tested for aflatoxin by the Department or in other
laboratories listed in the regulations. Inspection and chemical
analysis programs are administered by the Department.
Under the non-signer provisions, the second sentence of paragraph
(e) Seed peanuts. prohibits the commingling of Segregation 2 seed lots
with Segregation 1 peanut lots intended for human consumption. The
difference between Segregation 1 and Segregation 2 lots is that
Segregation 1 lots may contain no more than 2 percent damaged kernels
and no more than 1 percent concealed damaged kernels, while Segregation
2 lots may contain more than 2 percent damaged kernels and 1 percent
concealed damaged kernels. Both Segregation 1 lots and Segregation 2
lots must be free of visible Aspergillus flavus.
This rule continues in effect the clarification of the handling
provisions in paragraph (e) of Sec. 997.20 Incoming regulation allowing
Segregation 2 seed peanut lots containing up to 3 percent total damaged
kernels to be stored, shelled and commingled with Segregation 1 seed
peanut lots if both lots were produced under the auspices of a State
peanut agency which regulates or controls the production of the lots
being commingled.
The Committee meets in February or March each year and recommends
to the Secretary such rules and regulations as may be necessary to keep
the Agreement consistent with current industry practice. The Committee
met on March 16, 1994, and unanimously recommended clarification of
seed peanut handling regulations under the Agreement. Members of the
Committee noted the impracticality of having separate storage bins for
each of the various types and varieties of seed peanuts with up to 3
percent damage. It was noted that, if Segregation 2 seed lots with up
to 3 percent damage must be stored separate from Segregation 1 seed
lots, ``foundation,'' ``registered,'' and ``certified'' seed lots would
have to be segregated into separate categories. This could increase the
number of separate bins and space needed to store seed peanut lots. The
current regulations for both signers and non-signers do not
specifically address commingling Segregation 1 seed lots with
Segregation 2 seed lots.
The Committee concluded that it is impracticable to require such
Segregation 2 seed peanuts be stored and shelled separate from
Segregation 1 seed peanuts. The Department has completed rulemaking
implementing such a clarification in handling requirements applied on
signatory handlers.
Continuation of the amendment to paragraph (e) of Sec. 997.20(e)
for non-signer seed peanuts will continue the continuity between the
non-signatory handling requirements and those specified in the
Agreement, and facilitate the movement of peanuts to market.
This rule will not affect the outgoing quality regulation of the
non-signer provisions. The quality and handling requirements, as
specified in Sec. 997.30 Outgoing regulations applicable to non-
signatory 1993-94 crop peanuts, continue to be effective for 1994-95
crop peanuts.
The interim rule also updated addresses and facsimile numbers,
where applicable, of approved aflatoxin testing laboratories that
perform chemical analyses required by the non-signatory handling
regulations. This information is provided in paragraph (c)(5)(i) of
Sec. 997.30 Outgoing regulations. Non-signatory handlers may send
peanut samples to any laboratory on the list, per instructions
specified in paragraph (c) of the outgoing regulation. The interim rule
also updated information in paragraph (c)(5)(ii) identifying the
contact point of the USDA Science Division headquarter's office. This
final rule continues the aforementioned changes.
The interim final rule was published in the Federal Register on
August 30, 1994 (59 FR 44610). That interim final rule provided that
interested persons could file comments through September 29, 1994. No
comments were received.
Based on available information, the Administrator of the AMS has
determined that the issuance of this rule will not have a significant
economic impact on a substantial number of small entities.
After consideration of all available information, it is found that
this rule, as hereinafter set forth, will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 997
Food grades and standards, Peanuts, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 997 is
amended as follows:
PART 997--PROVISIONS REGULATING THE QUALITY OF DOMESTICALLY
PRODUCED PEANUTS HANDLED BY PERSONS NOT SUBJECT TO THE PEANUT
MARKETING AGREEMENT
Accordingly, the interim final rule amending 7 CFR part 997 which
was published at 59 FR 44610, on August 30, 1994, is adopted as a final
rule without change.
Dated: November 3, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-27768 Filed 11-8-94; 8:45 am]
BILLING CODE 3410-02-P
