95-13001. 1995 Marketing Quota and Price Support for Burley Tobacco  

  • [Federal Register Volume 60, Number 102 (Friday, May 26, 1995)]
    [Rules and Regulations]
    [Pages 27867-27868]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-13001]
    
    
    
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    Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Rules 
    and Regulations
    
    [[Page 27867]]
    
    DEPARTMENT OF AGRICULTURE
    
    Consolidated Farm Service Agency
    
    7 CFR Part 723
    
    Commodity Credit Corporation
    
    7 CFR Part 1464
    
    RIN 0560-AD63
    
    
    1995 Marketing Quota and Price Support for Burley Tobacco
    
    AGENCIES: Consolidated Farm Service Agency and Commodity Credit 
    Corporation, USDA.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The purpose of this final rule is to codify determinations 
    made by the Secretary of Agriculture (Secretary) with respect to the 
    1995 crop of burley tobacco. In accordance with the Agricultural 
    Adjustment Act of 1938, as amended (1938 Act), the Secretary determined 
    the 1995 marketing quota for burley tobacco to be 549.0 million pounds. 
    In accordance with the Agricultural Act of 1949, as amended (the 1949 
    Act), the Secretary determined the 1995 price support level to be 172.5 
    cents per pound.
    
    EFFECTIVE DATE: February 1, 1995.
    
    FOR FURTHER INFORMATION CONTACT: Robert Tarczy, CFSA, USDA, room 3739, 
    South Building, PO. Box 2415, Washington, DC 20013-2415, on 202 720-
    5346.
    
    SUPPLEMENTARY INFORMATION:
    
    Executive Order 12866
    
        This final rule has been determined to be significant for purposes 
    of Executive Order 12866 and, therefore, has been reviewed by OMB under 
    Executive Order 12866.
    
    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 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.
    
    Paperwork Reduction Act
    
        The amendments to 7 CFR parts 723 and 1464 set forth in this final 
    rule do not contain any new or revised information collection 
    requirements that require clearance through the Office of Management 
    and Budget under the provisions of 44 U.S.C. chapter 35.
    
    Regulatory Flexibility Act
    
        It has been determined that the Regulatory Flexibility Act is not 
    applicable to this final rule because CFSA 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.
    
    Proclamation
    
        On February 1, 1995, the Secretary proclaimed the national 
    marketing quota and announced price support level for the 1995 crop of 
    burley tobacco. The Secretary also announced that a referendum would be 
    conducted by mail ballot with respect to burley tobacco.
        During February 27-March 2, 1995, eligible burley tobacco producers 
    voted in a referendum to determine whether such producers disapprove 
    marketing quotas for the 1995, 1996, and 1997 marketing years (MY's) 
    for this kind of tobacco. Of the producers voting, 96.8 percent favored 
    marketing quotas for burley tobacco. Accordingly, quotas and price 
    support are in effect for the 1995 MY.
    
    Marketing Quota
    
        Section 319(c)(3)(A)(B) of the 1938 Act provides, in part, that the 
    national marketing quota for a marketing year for burley tobacco is the 
    quantity of such tobacco that is not more than 103 percent nor less 
    than 97 percent of the total of: (1) The amount of burley tobacco that 
    domestic manufacturers of cigarettes estimate they intend to purchase 
    on U.S. auction markets or from producers, (2) the average quantity 
    exported annually from the U.S. during the 3 marketing years 
    immediately preceding the marketing year for which the determination is 
    being made, and (3) the quantity, if any, that the Secretary, in the 
    Secretary's discretion, determines necessary to adjust loan stocks to 
    the reserve stock level.
        Section 319(c)(3)(C) further provides that, with respect to the 
    1995 and 1996 marketing years, any reduction in the national marketing 
    quota being determined shall not exceed 10 percent of the previous 
    year's national marketing quota. However, if actual loan stocks exceed 
    the prescribed reserve stock level by 50 percent, the Secretary may set 
    the quota according to the three-component formula (plus or minus 3 
    percent). The reserve stock level is defined in section 301(b)(14)(C) 
    of the 1938 Act as the greater of 50 million pounds or 15 percent of 
    the national marketing quota for burley tobacco for the marketing year 
    immediately preceding the marketing year for which the level is being 
    determined.
        Section 320A of the 1938 Act provides that all domestic 
    manufacturers of cigarettes with more than 1 percent of U.S. cigarette 
    production and sales shall submit to the Secretary a statement of 
    purchase intentions for the 1995 crop of burley tobacco by January 15, 
    1995. Five such manufacturers were required to submit such a statement 
    for the 1995 crop and the total of their intended purchases for the 
    1995 crop is 385.0 million pounds. The 3-year average of exports is 
    160.1 million pounds.
        The national marketing quota for the 1994 crop year was 542.7 
    million pounds (59 FR 33723). Thus, in accordance with section 301 
    (b)(14)(D), the reserve stock level for use in determining the 1995 
    marketing quota for burley tobacco is 81.4 million pounds.
        On December 1, 1994, the major cigarette manufacturers contracted 
    with Burley Tobacco Growers Cooperative Association, Inc. and Burley 
    Stabilization Corporation to buy all 1991-93 loan stocks. Loans from 
    the 1994 crop total 60.5 million pounds. Accordingly, the adjustment 
    necessary to maintain loan stocks at the reserve supply level is an 
    increase of 20.9 million pounds. [[Page 27868]] 
        The total of the three marketing quota components for the 1995-96 
    marketing year is 566.0 million pounds. In addition, USDA used the 
    discretionary authority to reduce the three-component total by 3 
    percent because the Secretary determined that the 1995/96 supply would 
    be more than ample. Accordingly, the national marketing quota for the 
    marketing year beginning October 1, 1995, for burley tobacco is 549.0 
    million pounds.
        In accordance with section 319(c) of the 1938 Act, the Secretary is 
    authorized to establish a national reserve from the national quota in 
    an amount equivalent to not more than 1 percent of the national quota 
    for the purpose of making corrections in farm quotas adjusting for 
    inequities, and for establishing quotas for new farms. The Secretary 
    has determined that a national reserve for the 1995 crop of burley 
    tobacco of 2,187,713 pounds is adequate for these purposes.
    
    Price Support
    
        Price support is required to be made available for each crop of a 
    kind of tobacco for which quotas are in effect, or for which marketing 
    quotas have not been disapproved by producers, at a level determined in 
    accordance with a formula prescribed in section 106 of the 1949 Act.
        With respect to the 1995 crop of burley tobacco, the level of 
    support is determined in accordance with sections 106 (d) and (f) of 
    the 1949 Act. Section 106(f)(7)(A) of the 1949 Act provides that the 
    level of support for the 1995 crop of burley tobacco shall be:
        (1) The level, in cents per pound, at which the 1994 crop of burley 
    tobacco was supported, plus or minus, respectively,
        (2) An adjustment of not less than 65 percent nor more than 100 
    percent of the total, as determined by the Secretary after taking into 
    consideration the supply of the kind of tobacco involved in relation to 
    demand, of:
        (A) 66.7 percent of the amount by which:
        (I) The average price received by producers for burley tobacco on 
    the United States auction markets, as determined by the Secretary, 
    during the 5 marketing years immediately preceding the marketing year 
    for which the determination is being made, excluding the year in which 
    the average price was the highest and the year in which the average 
    price was the lowest in such period, is greater or less than:
        (II) The average price received by producers for burley tobacco on 
    the United States auction markets, as determined by the Secretary, 
    during the 5 marketing years immediately preceding the marketing year 
    prior to the marketing year for which the determination is being made, 
    excluding the year in which the average price was the highest and the 
    year in which the average price was the lowest in such period; and
        (B) 33.3 percent of the change, expressed as a cost per pound of 
    tobacco, in the index of prices paid by the tobacco producers from 
    January 1 to December 31 of the calendar year immediately preceding the 
    year in which the determination is made.
        The difference between the two 5-year averages (i.e., the 
    difference between (A) (I) and (II)) is 2.1 cents per pound. The 
    difference in the cost index from January 1 to December 31, 1994, is 
    0.9 cents per pound. Applying these components to the price support 
    formula (2.1 cents per pound, two-thirds weight; 0.9 cents per pound, 
    one-third weight) results in a weighted total of 1.7 cents per pound. 
    As indicated, section 106 provides that the Secretary may, on the basis 
    of supply and demand conditions, limit the change in the price support 
    level to no less than 65 percent of that amount. In order to remain 
    competitive in foreign and domestic markets, the Secretary used his 
    discretion to limit the increase to 65 percent of the maximum allowable 
    increase. Accordingly, the 1995 crop of burley tobacco will be 
    supported at 172.5 cents per pound, 1.1 cents higher than in 1994.
    
    List of Subjects
    
    7 CFR Part 723
    
        Acreage allotments, Marketing quotas, Penalties, Reporting and 
    recordkeeping requirements, Tobacco.
    
    7 CFR Part 1464
    
        Loan programs--agriculture, Price support programs, Tobacco, 
    Reporting and recordkeeping requirements, Warehouses.
    
        Accordingly, 7 CFR parts 723 and 1464 are amended as follows:
    
    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, 1421, 1445-1, and 1445-2.
    
        2. Section 723.112 is amended by adding paragraph (c) to read as 
    follows:
    
    
    Sec. 723.112  Burley (type 31) tobacco.
    
    * * * * *
        (c) The 1995-crop national marketing quota is 549.0 million pounds.
    
    PART 1464--TOBACCO
    
        3. The authority citation for 7 CFR part 1464 continues to read as 
    follows:
    
        Authority: 7 U.S.C. 1421, 1423, 1441, 1445, 1445-1 and 1445-2; 
    15 U.S.C. 714b and 714c.
    
        4. Section 1464.19 is amended by adding paragraph (c) to read as 
    follows:
    
    
    Sec. 1464.19  Burley (type 31) tobacco.
    
    * * * * *
        (c) The 1995-crop national price support level is 172.5 cents per 
    pound.
    
        Signed at Washington, DC, on May 21, 1995.
    Bruce R. Weber.
    Acting Administrator, Consolidated Farm Service Agency and Acting 
    Executive Vice President, Commodity Credit Corporation.
    [FR Doc. 95-13001 Filed 5-25-95; 8:45 am]
    BILLING CODE 3410-05-P
    
    

Document Information

Effective Date:
2/1/1995
Published:
05/26/1995
Department:
Commodity Credit Corporation
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-13001
Dates:
February 1, 1995.
Pages:
27867-27868 (2 pages)
RINs:
0560-AD63
PDF File:
95-13001.pdf
CFR: (2)
7 CFR 723.112
7 CFR 1464.19