[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Rules and Regulations]
[Pages 9126-9128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4560]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 723
RIN 0560-AE13
Special Combinations for Tobacco Allotments and Quotas
agency: Farm Service Agency, USDA.
[[Page 9127]]
action: Final rule.
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summary: This final rule adopts with a modification the interim rule
published in the Federal Register (62 FR 15599) on April 2, 1997. The
interim rule provided for special combinations of flue-cured tobacco
allotments and quotas on participating and nonparticipating farms with
``production flexibility contracts'' (PFC) under the Agricultural
Market Transition Act of 1996 (AMTA) and for, burley tobacco, an
exemption to dropping the quota on divided farms with less than 1,000
pounds if the farm meets the requirements for a farm combination. After
further review of the rule and the comments, the regulations adopted in
the interim rule have been modified to allow for other transfers of
tobacco quota, for all tobacco types, between farms with the same owner
in cases where a farm combination could otherwise be used to produce
the desired result but is not available, as a practical matter, because
of restrictions under the PFC program administered by the Department.
The amended provisions permit such transfers to be approved without
regard to restrictions for purchased quota that apply to transfers by
lease or sale. Also, the interim rule has been modified to permit the
agency to modify non-statutory deadlines for transfers and other
requirements when special circumstances warrant such action.
effective date: February 24, 1998.
for further information contact: Joe Lewis Jr., Tobacco Branch, Tobacco
and Peanuts Division, USDA, FSA, STOP 0514, 1400 Independence Avenue,
SW., Washington, DC 20250-0514, telephone 202-720-0795.
supplementary information:
Executive Order 12866
This rule has been determined to be not significant and therefore
was not reviewed by OMB under Executive Order 12866.
Regulatory Flexibility Act
The Regulatory Flexibility Act is not applicable to this final rule
since the Farm Service Agency (FSA) is not required by 5 U.S.C. 553 or
any other provision of law to publish a notice of proposed rule making
with respect to the subject matter of this rule.
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.
Environmental Evaluation
It has been determined by an environmental evaluation that this
action will have no significant impact on the quality of the human
environment. Therefore, neither an environmental assessment nor an
environmental impact statement is needed.
Executive Order 12372
This activity is not subject to the provisions of Executive Order
12372, which requires intergovernmental consultation with State and
local officials. See the notice related to 7 CFR part 3015, subpart V,
published at 48 FR 29115 (June 24, 1983).
Executive Order 12988
The final rule has been reviewed in accordance with Executive Order
12988. The provisions of this final rule are not retroactive and
preempt State laws to the extent that such laws are inconsistent with
the provisions of this final rule. Before any legal action is brought
regarding determinations made under provisions of 7 CFR part 723, the
administrative appeal provisions set forth at 7 CFR part 780 and 7 CFR
part 711, as applicable, must be exhausted.
Paperwork Reduction Act
This final rule does not contain new or revised information
collection requirements that require approval by OMB under the
Paperwork Reduction Act (44 U.S.C. 3507 et seq.). The information
collections required in 7 CFR part 723 have previously been cleared
under OMB control number 0560-0058.
Effective Date of Rule
It has been determined for purposes of all limitations that might
apply, including any provisions of the Small Business Regulatory
Enforcement Fairness Act of 1996, that this rule should be effective
immediately. The interim rule (at 62 FR 15599, April 2, 1997) set forth
the reasons that the rule should be effective immediately. The nature
of the interim rule was to provide relief to flue-cured tobacco
producers who were adversely affected by restriction on the combination
of farms. Additional relief is provided in this final rule by allowing
for other transfers of tobacco quota, for all tobacco types, between
farms with the same owner in cases where a farm combination could
otherwise be used to produce the desired result but is not available,
as a practical matter, because of restrictions under the PFC program of
the Department. As the rule simply provides additional flexibility to
producers and should not have any material adverse effect on anyone, it
has been determined that the full rule, including the modification,
should be made effective immediately.
Discussion of Comments
The interim rule (at 62 FR 15599, April 2, 1997) requested comments
from interested parties. A total of three comments were received from
the public; two from State level farm organizations, and one from a
county level farm organization. All comments were supportive of the
provisions relating to the special combinations of flue-cured tobacco
allotments and quotas. These special combinations would avoid undue
hardships on many flue-cured tobacco producers. It should be noted that
the adopted rule allows for effective combinations of farms in cases
where the combination could otherwise occur but for restrictions that
may arise under the PFC program of the Department, as was indicated in
the preamble of the interim rule. The adopted regulations do not
override basic limitations on transfers. Thus, for example, the rule
does not provide new authority for the transfer or effective movement
of quota across county lines that otherwise would not be possible
through a farm combination as the existing restrictions on such
movements of quota are statutory. However, on further review it has
been determined to otherwise expand the rule to provide authority to
allow for effective combinations in all instances for tobaccos, as the
need may arise, where the result sought would be obtained, otherwise,
by a farm combination were it not for restrictions arising under the
PFC program. This would, for example, allow for effective transfers of
quota to be made between two burley farms with the same owner in
instances in which the transfer would otherwise be prohibited under the
rules because of there being a transfer to and from the transferring
farm within the same three year period. Essentially, the modified rule
would simply allow the farms to be considered to be the same farm for
tobacco purposes just as they could have been in the past through a
farm combination without having to treat those farms as being combined
for PFC purposes as well. Protection for the PFC program will be
provided in the manner specified in the interim rule through
restrictions on using the land freed up by the transfer of quota.
Specifically, that land will not be usable for the production of ``PFC
commodities''--that is, commodities for which there is a potential
eligibility for loans under the PFC program. To make this and other
[[Page 9128]]
clarifying changes, 7 CFR 723.209(c) as published in the interim rule
is amended. In addition, with respect to restrictions relating to
transfers in general, 7 CFR 723.103 is amended so that non-statutory
deadlines and other requirements may be modified where circumstances
warrant, such as in the case this year with the final deadline for
marketing burley tobacco where that deadline has proven inopportune
given weather and crop conditions this year. This additional
flexibility should not have an adverse effect on anyone and should
provide a greater opportunity to allow for relief in meritorious cases.
Consequently, delaying implementation of that provision appears to be
contrary to the public interest.
List of Subjects in 7 CFR Part 723
Acreage allotments, Auction warehouses, Dealers, Domestic
manufacturers, Marketing quotas, Penalties, Reconstitutions, Tobacco.
For the reasons set forth in the preamble, the interim rule for 7
CFR part 723 published on April 2, 1997 (62 FR 15599) is hereby adopted
as a final rule with the following changes:
PART 723--TOBACCO
1. The authority citation for 7 CFR part 723 continues to read as
follows:
Authority: 7 U.S.C. 1301, 1311-1314, 1314-1, 1314b, 1314b-1,
1314b-2, 1314c, 1314d, 1314e, 1314f, 1314i, 1315, 1316, 1362, 1363,
1372-75, 11377-1379, 1421, 1445-1 and 1445-2.
2. The heading for Sec. 723.209 is revised as set forth below.
3. Paragraph (c) of 723.209 is amended as follows:
(i) In the first sentence, ``quotas for flue-cured tobacco,'' is
revised to read ``quotas'';
(ii) In the third sentence, ``PFC flue-cured quota farm'' is
revised to read ``PFC farm'';
(iii) The fifth sentence is revised to read as follows:
Sec. 723.209 Determination of acreage allotments, marketing quotas,
and yields for combined farms; special combinations for farms with
production flexibility contracts.
* * * * *
(c) * * * Such action could result in a farm being found to have
had excess acreage devoted to tobacco or excess marketings of tobacco,
in which case certain penalties, along with other sanctions as may be
applicable, would apply. * * *
4. Section 723.103(d) is amended by adding at the end a new
sentence to read as follows:
Sec. 723.103 Administration
* * * * *
(d) * * * Further, the Administrator or the Administrator's
designee may modify any deadline or other provisions of this part to
the extent that doing so is determined by such person to be appropriate
and not inconsistent with the purposes of the program administered
under this part.
Signed at Washington, DC, on February 18, 1998.
Keith Kelly,
Administrator, Farm Service Agency.
[FR Doc. 98-4560 Filed 2-23-98; 8:45 am]
BILLING CODE 3410-05-M
