[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4329]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Stabilization and Conservation Service
7 CFR Part 729
RIN 0560-AD20
1994-Crop Peanuts National Poundage Quota
AGENCY: Agricultural Stabilization and Conservation Service, USDA.
ACTION: Final rule.
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SUMMARY: On December 15, 1993, the Secretary of Agriculture (Secretary)
announced by press release that the national poundage quota for quota
peanuts was established at 1,350,000 short tons (st), 146,000 st less
than last year's quota. This final rule codifies the announced quota.
The quota is established pursuant to statutory requirements contained
in the Agricultural Adjustment Act of 1938 (the 1938 Act), as amended.
EFFECTIVE DATE: December 15, 1993.
FOR FURTHER INFORMATION CONTACT: Robert Miller, Director, Tobacco and
Peanuts Analysis Division, Agricultural Stabilization and Conservation
Service (ASCS), United States Department of Agriculture (USDA), room
3739, South Building, P.O. Box 2415, Washington, DC 20013-2415,
telephone 202-720-7477.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order
12866. Based on information compiled by USDA, it has been determined
that this final rule:
(1) Would have an annual effect on the economy of less than $100
million;
(2) Would not adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities;
(3) Would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency;
(4) Would not alter the budgetary impact of entitlements, grants,
user fees, or loan programs or rights and obligations of recipients
thereof; and
(5) Would not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or principles set forth in
Executive Order 12866.
One commentor in response to the proposed quota previously
published in the Federal Register disagreed with conclusions (1), (2),
and (3) noting the 1990-crop and the drought that affected that crop.
These determinations remain unchanged as the quota level adopted by
this notice is required by statute and involves an on-going Federal
program.
Final Regulatory Impact Analysis
A final regulatory impact analysis discussing the impact of the
established quota is available from the above-named person.
Executive Order 12778
This final rule has been reviewed in accordance with Executive
Order 12778, Civil Justice Reform. The provisions of this rule do not
preempt State laws, are not retroactive, and do not involve
administrative appeals.
Federal Assistance Program
The title and number of the Federal Assistance Program, as found in
the Catalog of Federal Domestic Assistance, to which this final rule
applies are Commodity Loans and Purchases--10.051.
Executive Order 12372
This program/activity is not subject to the provisions of Executive
Order 12372 relating to 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).
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this final rule because ASCS is not 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 matter of this rule.
Paperwork Reduction Act Requirements
The amendments to 7 CFR part 729 set forth in this final rule do
not contain information collection requirements that require clearance
through the Office of Management and Budget under the provisions of 44
U.S.C. chapter 35.
Announcement of the Quota
Section 358-1(a)(1) of the 1938 Act requires that the national
poundage quota for peanuts for each of the 1991 through 1995 marketing
years (MY's) 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 such MY to domestic edible, seed, and related uses.
Section 358-1(a)(1) further provides that the national poundage quota
for a MY shall not be less than 1,350,000 st. The MY for 1994-crop
peanuts runs from August 1, 1994, through July 31, 1995. Poundage
quotas for the 1991-95 crops of peanuts were approved by 98.2 percent
of peanut growers voting in a referendum conducted December 10 through
13, 1990. A proposed rule on the quota determination, with a public
comment period, was published in the Federal Register (58 FR 63106) on
November 30, 1993. The proposed rule of 1,350,000 st set out, for
purposes of the proposed quota calculation, individual estimates for:
(1) Domestic food use; (2) farm sales and local sales of peanuts; (3)
seed use; (4) crushing residual; (5) shrinkage and other losses; and
(6) Segregation 2 and 3 loan transfers. The sum of the individual
estimates was 1,298,000 st., less than the allowed statutory minimum of
1,350,000 st.
Following a review of the comments and more recent estimates made
by the USDA Interagency Commodity Estimates Committee (ICEC) for
Oilseeds, Oils, and Meals, the estimates for domestic edible, seed, and
related uses totals 1,333,000 st., which is likewise below the allowed
minimum. Updated data resulted in adjustments to the estimates of
domestic food use and seed. The adjustments in those two factors also
produced a slight revision in the estimate for crushing residual. The
differences between the estimates on which the proposed quota was based
versus the estimates on which the final quota was established are set
out in the following table:
Estimated Domestic Edible, Seed, and Related Uses
------------------------------------------------------------------------
Quota (short tons)
-------------------------
Item Proposed\1\
Final\2\
------------------------------------------------------------------------
Domestic edible:
Domestic food............................... 986,000 1,019,000
On farm and local sales..................... 22,000 22,000
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Subtotal................................ 1,008,000 1,041,000
Seed.......................................... 97,000 98,500
Related Uses:
Crushing residual........................... 133,000 133,500
Shrinkage and other losses.................. 40,000 40,000
Segregation 2 and 3 loan transfers to quota
loan....................................... 20,000 20,000
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Subtotal................................ 193,000 193,500
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Total................................... \3\1,298,00
0 \3\1,333,00
0
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\1\Contained in November 30, 1993, Federal Register (58 FR 63106).
\2\ Final quota determination.
\3\By statute, the quota level cannot be less than 1,350,000 st.
Discussion of the Comments on Proposed Quota
A total of 7 comments were received during the public comment
period that ended on December 6, 1993. Comments were submitted by 2
manufacturer/processor associations, 2 manufacturers, 1 sheller
association, and 2 grower associations.
The comments made regarding the 1994-crop national quota are
discussed below by subject matter.
A. Overall Quota Level
A number of comments were directed to the overall quota level
rather than to individual elements of the calculation. The
manufacturer/processor associations and manufacturers supported larger
quotas, between 1,403,000 st and 1,645,600 st. The sheller association
and two grower associations supported the proposed 1994 quota of
1,350,000 st. One commentor justified a high recommendation by citing
the 1990-crop year drought when yields were reduced and supplies were
very tight, but did not cite any figure for needed carryover, if any.
The current quota formula has applied since 1986 and growers have
produced on average 128 percent of the national poundage quota
(counting the production of non-quota, ``additional'' peanuts which
can, if needed, be used for quota-peanut purposes if certain special
procedures are followed and certain conditions are met).
B. Domestic Edible Use
The final estimate of 1994 domestic food use was 3 percent above
the proposed estimate. It was developed in two steps. First, total
domestic edible utilization of 1,137,500 st was estimated by the USDA
ICEC. Second, to account for peanut butter imports and exports, the
estimate of domestic edible disappearance was reduced by 118,500 st.
Manufacturer/processor associations and manufacturers requested a
higher domestic edible food use to enable growth in excess of projected
levels. A grower association supported the proposed domestic food use
estimate. Based on the best data available, it was determined that the
final quota made the most realistic estimates of growth and imports
possible.
Accordingly, the revised estimate of domestic edible use was
accepted.
C. Farm Use and Local Sales
No comments were received. The proposed estimate of 20,000 st was
accepted without change.
D. Seed Use
The proposed seed estimate of 97,000 st was based on the farmer
stock tonnage equivalent of the amount of seed required to plant the
expected 1995 crop. A manufacturer believed that processing losses for
seed peanuts requires a 150,000 st estimate. It was determined that the
ICEC estimate for the amount of seed required to plant the 1995 crop
was the most realistic estimate available and a revised ICEC seed
estimate of 98,500 st was accepted in the final rule.
E. Crushing Residual
The crushing residual represents the farmer stock equivalent weight
of crushing grade kernels shelled from quota peanuts. In any given load
of quota farmer stock peanuts, a portion of such peanuts is only
suitable for the crushing market. The portion of such peanuts only
suitable for the crushing market was proposed to be estimated at 12
percent, unchanged from the level used for setting the 1992 and 1993
quotas. One manufacturer asserted that recent edible kernel yields
would require using a higher crushing residual, but this higher yield
is not considered representative for the industry. It was determined
accordingly, that the proposed crushing residual factor of 12 percent
was the most accurate estimate available. That level is within the
range a sheller association proposed for the 1993 crop. The proposed
factor of 12 percent was retained.
F. Shrinkage and Other Losses
No comments were provided and the estimate was accepted as
proposed.
G. Segregation 2 and 3 Transfers
No comments were provided and the estimate was accepted as
proposed. This estimate represents peanuts that would otherwise be
eligible for use as quota peanuts but which will not qualify for such
use due to quality problems. Such transfers to quota peanut price
support loan pools occur when quota peanut producers, due to no fault
of their own, would otherwise have insufficient Segregation 1 peanuts
to fulfill their quota. In such instances, Segregation 2 and 3 peanuts
placed under an additional peanut price support loan may be transferred
to the quota price support loan. The Commodity Credit Corporation will
then ensure that such peanuts are crushed for oil.
Proposed Quota Adjustment for Undermarketings and Carryover
The foregoing components of the national poundage quota have not
been adjusted for either the application of prior undermarketings to
the 1994 quota or abnormal carryover stocks at the beginning of MY
1994. As peanut usage has grown, carryover stocks have also grown. But,
since 1980, carryover stocks have varied more from year to year than
earlier. Also, current law allows a farm's quota to be increased by the
amount by which marketings for prior years back to 1989 were less than
the farm's quota. The total of all such increases nationally may not
exceed 10 percent of the national poundage quota. Unapplied
undermarketings from 1993 suggest that the 1994 quotas at the farm
level will also be increased by the 10-percent maximum. In response to
this issue an association of manufacturers favored a 50,000 st quota
increase to adjust for low carryover stocks from the 1993-94 marketing
year. Two comments did not favor any MY 1994 quota adjustment for
undermarketings and carryover.
Without prejudice to possible adjustments to the 1995-crop and
subsequent quota determinations, it was determined that the 1994-crop
quota would not be adjusted to reflect the impact of undermarketings
and end of year carryover of 1993-crop peanuts into MY 1994 as it was
determined that a 1,350,000 st quota would be sufficient to meet full
demand for peanuts in the coming year.
After consideration of the comments received, the proposed change
to 7 CFR 729.214 is adopted as presented in the proposed rule.
List of Subjects in 7 CFR Part 729
Poundage quotas, Peanuts, Reporting and recordkeeping requirements.
Accordingly, 7 CFR part 729 is amended as follows:
PART 729--PEANUTS
1. The authority citation for 7 CFR part 729 continues to read as
follows:
Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375; 7
U.S.C. 1445c-3.
2. Section 729.214 is amended by adding paragraph (d) to read as
follows:
Sec. 729.214 National poundage quota.
* * * * *
(d) The national poundage quota for peanuts for marketing year 1994
is 1,350,000 short tons.
Signed at Washington, DC, on February 18, 1994.
Bruce R. Weber,
Acting Administrator, Agricultural Stabilization and Conservation
Service.
[FR Doc. 94-4329 Filed 2-24-94; 8:45 am]
BILLING CODE 3410-05-P
