[Federal Register Volume 61, Number 137 (Tuesday, July 16, 1996)]
[Rules and Regulations]
[Pages 36997-37001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17690]
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 729
RIN 0560-AE82
Amendments to the Peanut Poundage Quota Regulations
AGENCY: Farm Service Agency, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This interim rule sets forth regulations for Federal farm
peanut poundage quotas in order to implement provisions of the
Agricultural Market Transition Act of 1996 (the 1996 Act) for the 1996
through 2002 crops of peanuts. The amendments to the regulations
adopted in this interim rule involve: eliminating the national poundage
quota floor; eliminating the undermarketing carryover provisions;
establishing temporary seed quota allocations; establishing the
ineligibility of certain farms for quota allocation; authorizing the
inter-county transfer of farm poundage quota in all States, subject to
certain percentage limitations on certain transfers in certain States;
eliminating the special allocations of increased quotas for certain
Texas counties; and establishing new provisions for ``considered-
produced'' credit with respect to a farm whose quota has been
transferred.
DATES: Effective April 4, 1996.
Comments must be received on or before August 15, 1996, to be
assured consideration.
ADDRESSES: Submit comments on the interim rule to: Director, Tobacco
and Peanuts Division, Farm Service Agency, U.S. Department of
Agriculture, Room 5750-S, Ag Code 0514, P.O. Box 2415, Washington, DC
20013-2415. All written submissions made pursuant to this rule will be
made available for public inspection in Room 5750 South Building, USDA,
between the hours of 8:15 a.m. and 4:45 p.m., during regular Federal
workdays.
FOR FURTHER INFORMATION CONTACT: David Kincannon, (202) 720-7914.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This interim rule has been determined to be significant and was
reviewed by OMB under Executive Order 12866.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this interim rule because 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 rulemaking with respect to the subject
matter of this rule. 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.
Unfunded Federal Mandates
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the Unfunded Mandate Reform Act of 1995
(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.
Federal Assistance Program
The title and number of the Federal Assistance Program, as found in
the Catalog of Federal Domestic Assistance, to which this interim rule
applies are: Commodity Loans and Purchases--10.051.
Executive Order 12372
This program 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 12778
This interim rule has been reviewed in accordance with Executive
Order 12778. The provisions of this interim rule do not preempt State
laws to the extent that such laws are inconsistent with the provisions
of this interim rule. Before any legal action is brought regarding
determinations made under provisions of 7 CFR part 729, the
administrative appeal provisions set forth at 7 CFR parts 11 and 780
must be exhausted. This rule has been made retroactive to April 4,
1996, in order to affirm determinations for the current crop year that
had to be made in advance of this notice because of the time of the
passage of the 1996 Act and the onset of the planting season for
peanuts.
National Appeals Division Rules of Procedure
The procedures set out in 7 CFR parts 11 and 780 apply to appeals
of adverse decisions made under the regulations adopted in this notice.
[[Page 36998]]
Small Business Regulatory Enforcement Fairness Act of 1996
Section 161(d) of the 1996 Act provides the regulation necessary to
implement Title I of the 1996 Act must be issued within 90 days of
enactment and that such regulations shall be issued without regard to
the notice and comment provisions of section 553 of the United States
Code. These regulations affect the immediate planting and marketing
decisions of an extraordinarily large number of agricultural producers
and previous decisions of the agency. Accordingly, as authorized by
section 808 of the Small Business Regulatory Enforcement Fairness Act
of 1996, this rule is effective as of April 4, 1996, the date of
enactment of the 1996 Act.
Paperwork Reduction Act
As provided in section 161(d) of the 1996 Act, the Paperwork
Reduction Act is not applicable to these regulations. However, the
forms necessary to conduct these programs have been previously
submitted for clearance to the Office of Management and Budget under
the provisions of 44 U.S.C. chapter 35.
Background
This rule addresses peanut quota amendments for the 1996 through
2002 crops which were enacted in section 155 of the 1996 Act.
A. Certain Farms Ineligible to Hold Peanut Poundage Quota
Section 358-1(b)(1) of the 1938 Act, as amended by the 1996 Act,
provides that, effective beginning with the 1998 crop of peanuts,
quotas shall not be established for farms owned or controlled by
municipalities, airport authorities, schools, colleges, refuges, and
other public entities (not including universities for research
purposes), or by a person who is not a producer and resides outside the
State in which the quota is allocated. Section 729.205 has been added
to the regulations accordingly and provides, consistent with the 1996
Act, that if a farm is ineligible for peanut poundage quota as of
August 1, 1997, under the provisions of the 1996 Act, the quota held by
such ineligible farms must be sold by October 1, 1997, or it will be
allocated to other farms within the same State, beginning with the next
crop year. Under the interim rule, if an ineligible party acquires a
quota farm after that date, no quota will be established for the farm,
but the quota, for subsequent crop years, may be sold to a qualifying
farm, provided that the normal conditions for sale are met.
B. Elimination of Quota Floor, Establishment of the National Poundage
Quota, and Peanut Quota Referendum
The 1996 Act provides for referenda for peanut quotas and amends
section 358-1(a)(1) of the 1938 Act to eliminate the floor for the
national quota. In addition, the 1996 Act excludes seed peanuts from
the calculation of the basic national quota. This rule revises section
729.216 (as redesignated) of the regulations accordingly.
C. Temporary Seed Quota Allocation
The 1996 Act amendments to the 1938 Act also, however, provide for
adding to a farm's basic quota a temporary allocation of quota for the
amount of seed peanuts planted on a farm. This rule amends the
definition of ``effective quota'' in section 729.103 of the regulations
accordingly.
This rule adopts a national seeding rate for each type of peanut
and provides that the quantity of temporary seed quota allocated to a
farm shall equal the amount determined by multiplying the acres planted
to peanuts by the national per-acre planting rate by peanut type. The
seed planted will be converted to farmers stock basis by multiplying,
by a factor of 1.5, the amount of seed so calculated. Another option
considered was setting a rate as a maximum with producers required to
prove actual seed purchases and use, with the lower of the standardized
maximum or the proven seed use establishing the seed quota allocation.
Comments are requested on these and any other options, and on: (a) the
issues of increased producer workload involved with proving seed use,
(b) the use of a standardized national seeding rate vs. a standardized
State seeding rate, and (c) the seeding rate amounts.
For purposes of determining seed use, the national per-acre
planting rate by type shall, for this calculation, be equal to:
(i) 95 pounds for Runner-type peanuts;
(ii) 110 pounds for Virginia peanuts;
(iii) 80 pounds for Spanish peanuts; and
(iv) 80 pounds for Valencia peanuts.
The temporary seed allocation will be made after the producer files
a proper certification of planted acres.
D. Elimination of ``Undermarketings'' From Quotas
In accord with the 1996 Act, this rule also eliminates previous
undermarketings from quota calculation for peanuts.
E. Reallocations in Texas of Increased Quota
The 1996 Act removes the special quota allocation provisions that
formerly applied to Texas only, in cases where the national quota is
increased. This rule amends section 729.206(f)(former 729.204(f)) of
the regulations, as redesignated, accordingly.
F. Inter-county Transfers
The 1996 Act removes the previous prohibition of inter-county quota
transfers in large-quota States to allow, with limits, the transfer of
farm poundage quota by sale or lease to any county within each of those
States. Such transfers are limited to an aggregate of 40 percent of the
total poundage quota within a county as of January 1, 1996, and may not
exceed a crop year limit of 15, 25, 30, and 35 percent for the 1996
through 1999 crops respectively and 40 percent for the 2000 and
subsequent crops. Further, however, in any county with a quota
allocation less than 50 tons for the preceding year's crop, all or any
part of a farm poundage quota may be transferred by sale or lease or
otherwise from a farm in the county to a farm in the same State. These
prescriptions are set by the 1996 Act.
This rule has adopted selection by lottery to implement the out-of-
county sale and lease limitation provisions in counties where the
amount of farm poundage quota requested for such sale and lease was
greater than the limitation for the current year. This rule amends
section 729.214 (former 729.212) of the regulations, as redesignated by
this rule, to implement the limitation requirements. Other options
considered with respect to administering the transfer limitation
included a first-come, first-considered basis and a proration of the
limited amount among all applicants. Time constraints and the
practicality of transferring only portions of a farm's quota were the
major determinants in selecting the lottery method. Comments are
requested on these or any other options for controlling the transfer
limitation and on the issue of giving priority to quota sales over
quota leases.
Also, current regulations in part 729 have prohibited the approval
of any transfers filed after January 31 and before August 1 if the
approval of such transfer would result in a transfer both to and from
either the transferring or receiving farm during such period. Although
this rule does not revise the regulation, comments are requested on
whether to allow a farm to make a transfer both ways in the same period
so
[[Page 36999]]
long as the transfer from the farm is a temporary transfer.
In addition, section 729.214(f)(3)(i), as redesignated, is amended
to ease the prohibition against permanent transfers of quota from a
farm to which quota had been transferred during the base period (the 3
immediately preceding crop years). The revised paragraph will limit the
prohibition to the amount of quota permanently transferred to the farm
during the 3-year period.
G. Considered-Produced Credit
Section 358-1(b) (3) and (4) of the 1938 Act provides that to the
extent practicable and on such fair and equitable basis as the
Secretary may provide, a farm will, generally, lose any quota which is
not produced or considered produced on the farm in 2 out of 3
consecutive years. That section contains a specific provision allowing
considered-produced credit for in-county transfers, but only once every
3 years. The new act leasing provisions in the 1996 Act, as indicated,
revamp the spring lease provisions for quotas and provide that the
transfer of quota under that paragraph will not reduce the quota of the
transferring farm if the quota is produced or considered produced on
the receiving farm. Since no change was made to the in-county transfer
provisions of 358-1(b)(3) (for those transfers which do not involve the
same owner or operator), it appears that the 1996 Act did not intend
for a modification to be made with respect to within-county transfers
as allowed prior to the 1996 Act. Accordingly, the interim rule
maintains the same considered-produced provisions, as in the past, for
such in-county transfers (that is, considered-produced credit for
leased quota will be allowed only once every 3 years). For inter-county
transfers, however, the rule allows the transferring farm to receive
considered-produced credit for any year in which the receiving farm
produces, or is considered to have produced, the quota. This is the
same rule that has been applied to out-of-county transfers in past
years when such transfers were only allowed in States with a small
total quota.
H. Other Provisions
The interim rule makes several technical changes including: (i)
changes necessitated by a recent USDA reorganization, and (ii) changes
to reflect applicability of the regulations through the 2002 crops.
Other provisions of the 1996 Act regarding peanuts will be the
subject of subsequent notices.
List of Subjects in 7 CFR Part 729
Peanuts, Penalties, Poundage quotas, Reporting and recordkeeping
requirements.
Interim Rule
Accordingly, 7 CFR Part 729 is amended as follows:
PART 729--[AMENDED]
1. The authority citation is revised to read as follows:
Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375, and
7271.
2. Section 729.102 is amended by removing ``1991 through 1995'' and
adding ``1996 through 2002'' in its place, and by adding a sentence at
the end of the paragraph to read as follows:
Sec. 729.102 Applicability.
* * * The peanut marketing quota and disposition requirements for
peanuts for the 1991 through 1995 crops shall, as applicable, continue
to be governed by the regulations codified at 7 CFR Part 729, as of
April 1, 1996.
3. Section 729.103 is amended as follows:
a. The definition for ``FSA'' is moved to its proper place in
alphabetical order.
b. The definition of ``Considered-produced credit'' is amended by
revising paragraph (iii) to read as follows:
Sec. 729.103 Definitions.
* * * * *
(b) * * *
Considered-produced credit. * * *
(iii) A farm's basic quota that was not produced if the Farmers
Home Administration or the Farm Service Agency had control of, or title
to, such farm.
* * * * *
c. The definition of ``DASCO'' is removed, and the definition of
``Deputy Administrator'' is added in alphabetical order to read as
follows:
Deputy Administrator. The Deputy Administrator for Farm Programs,
Farm Service Agency.
d. The definition of ``Effective quota'' is amended by revising
paragraph (v) to read as follows:
Effective quota. * * *
(v) Temporary seed quota allocated to the farm.
e. The definition of ``First purchaser'' is added in alphabetical
order to read as follows:
First purchaser. Any person acquiring peanuts from a producer
except that in the case of peanuts forfeited by a producer to CCC or
bought from the price support loan inventory, the term means the person
acquiring the peanuts from CCC or the inventory.
f. The definition of ``Preliminary quota'' is revised to read as
follows:
Preliminary quota. For the current year and an eligible farm, the
basic quota established for the farm for the preceding year to the
extent that the farm is not subject to a reduction in quota.
g. The definition of ``Temporary seed quota'' is added in
alphabetial order to read as follows:
Temporary seed quota. Quota temporarily allocated for the current
crop year only and in an amount determined by FSA to account for the
amount of seed peanuts planted on the farm for production of peanuts,
excluding green peanuts and peanuts produced under the one-acre
exemption set forth in Sec. 729.306 of this part.
* * * * *
h. The definition of ``Undermarketings'' is removed.
4. Section 729.104(a) is revised to read as follows:
Sec. 729.104 Administration.
(a) The regulations in this part will be administered under the
general supervision of the Administrator, FSA, and shall be carried out
in the field by State and county FSA committees.
* * * * *
5. Section 729.104(c) is amended by removing the phrase ``committee
shall'' and adding ``committee'' in its place, and removing
``Instruct'' and adding ``Shall instruct'' in its place.
Sec. 729.108 [Amended]
6. Section 729.108 is amended by removing ``ASC'' and adding
``FSA'' in its place.
Sec. 729.201 [Amended]
7. Section 729.201 is amended by removing ``1991 through 1995''
wherever it appears and adding in its place ``1996 through 2002 and
removing ``1990'' wherever it appears and adding in its place``1995''.
Sec. 729.204-729.214 [Redesignated as Sec. 729.206-729.216]
8. Sections 729.204 through 729.214 are redesignated as sections
729.206 through 729.216 respectively, and new sections 729.204 and
729.205 are added to read as follows:
Sec. 729.204 Temporary seed quota allocation.
(a) Applicability. The temporary allocation of quota pounds, as
provided in this section shall be determined:
(1) For the marketing year only in which the crop is planted;
(2) For eligible producers for each of the 1996 through 2002
marketing years; and
[[Page 37000]]
(3) To exclude the production of green peanuts and peanuts produced
under the one-acre exemption provided for in 7 CFR 729.306.
(b) Quantity of allocation. The temporary quota allocated to a
producer shall be the farmers stock equivalent pounds of qualifying
seed peanuts considered planted on the farm as determined by FSA by
multiplying the acres determined planted to qualifying peanuts times
the per-acre planting rates of:
(1) 95 pounds for Runner-type peanuts;
(2) 110 pounds for Virginia peanuts;
(3) 80 pounds for Spanish peanuts; and
(4) 80 pounds for Valencia peanuts.
(c) Conversion factor. For the purpose of determining the farmers
stock basis for temporary seed quota allocations under this section,
the amount of seed planted as determined in accord with paragraph (b)
of this section shall be multiplied by a factor of 1.5.
(d) Time of notification. The notice of determination for temporary
seed quota allocations shall be made by the Deputy Administrator as
soon as practicable following the deadline for filing certifications of
planted acres.
Sec. 729.205 Farms ineligible for farm poundage quota.
(a) Ineligible farms. Except for quota allocated under the
provisions of Sec. 729.208 for experimental and research programs,
effective beginning with the 1998 crop year, farm poundage quotas shall
not be established for farms which are determined by FSA to be owned or
controlled by:
(1) Municipalities, airport authorities, schools, colleges,
refuges, and other public entities.
(2) A person:
(i) Who is not a peanut producer; and
(ii) Whose primary domicile, in the case of individual, or primary
place of business, in the case of an entity, as determined by FSA, is
located outside the State in which the quota is allocated.
(b) Determination of Residency and Related Rules. For purposes of
administering paragraph (a) of this section, with respect to farms
owned or controlled by a partnership or corporation or other entity,
the forfeiture in paragraph (a)(2) of this section shall not be deemed
to apply if a person or persons with at least a 20 percent interest in
any such entity are individuals whose primary residence is in the State
in which the quota is allocated; provided further, that paragraph
(a)(2) of this section shall not apply to any involuntary acquisition
of a farm by foreclosure, or otherwise, resulting directly from the
conduct of a public business in the State in which the quota is
allocated, or an acquisition resulting directly by reason of a death.
The exemption for involuntary farm acquisitions allowed under the
preceding sentence shall only apply to the establishment of quota in
the three crop years immediately following the date of the involuntary
acquisition of the quota farm. Further, for purposes of applying the
rules in paragraph (a) of this section as they regard production, the
determination of whether paragraph (a)(2) of this section applies shall
be made based on the crop last planted before the date on which the
determination is to be made.
(c) Allocating forfeited quota and sales of quotas subject to
paragraph (a). Any farm poundage quota held on or after August 1, 1997,
by an ineligible person as determined under paragraph (a) of this
section shall be allocated from the quota farm to other farms in the
same State in accordance with Sec. 729.206 of this part. In the event
that the ineligible party acquired the subject farm on or before August
1, 1997, such person shall have until October 1, 1997, to permanently
dispose of the quota by sale to another farm for subsequent crop years
in which case the transfer will be deemed to be effective as of August
1, 1997. If the farm in dispute was acquired after August 1, 1997, then
no quota shall be established for the farm until such time as the
ineligibility is removed provided further, however, that the quota may
be sold to another qualifying farm effective with the next crop year
following the sale or such later date as may be approved by FSA.
9. Redesignated Sec. 729.206 is amended:
a. In the heading of paragraph (f), by removing the phrase
``increased quota,'' and by removing the comma following the word
``nonproduction'';
b. In the first sentence of paragraph (f)(1), by removing the
phrase ``33 percent of any increase in the Texas peanut poundage quota
resulting from an increase in the national quota and'';
c. In paragraph (f)(3), by removing the phrase, ``, as determined
in accordance with paragraph (f)(2) of this section for the 1991
through 1995 crops'' and adding in its place ``granted under any
special rules for Texas under this section and its predecessor for the
1991 and subsequent crops''; and
d. In paragraph (f)(7), removing the phrase ``except for the 33
percent allocated to eligible Texas counties in accordance with
paragraph (f)(2) of this section,''.
10. Redesignated Sec. 729.207 is amended:
a. In paragraph (c), by removing ``Sec. 729.204(b)(2)'' and adding
``Sec. 729.206(b)(2)'' in its place;
b. In paragraph (d)(1)(ii)(B), by removing ``Sec. 729.212'' and
adding ``Sec. 729.214'' in its place; and
c. In paragraph (d)(2), by removing ``Sec. 729.204(e)'' and adding
``Sec. 729.206(e) in its place.
11. Redesignated Sec. 729.208 is amended by revising paragraph (d)
to read as follows:
Sec. 729.208 Allocation of quota for experimental and research
programs.
* * * * *
(d) Quota for 1996 through 2002 crops. For each institution with
continuing eligibility for which a 1995 basic quota was determined in
accordance with this section or its predecessor, a basic quota shall be
established for the 1996 through 2002 crops in the same manner as for
other farms within the State.
12. Redesignated Sec. 729.210 is amended by revising paragraph
(a)(1) to read as follows:
Sec. 729.210 Determining a farm's effective quota.
* * * * *
(a) Upward adjustment. * * *
(1) The temporary seed quota allocated to the farm;
* * * * *
13. Redesignated Sec. 729.213 is revised to read as follows:
Sec. 729.213 Erroneous notice of effective farm poundage quota.
If the official notice of effective quota issued for a farm
erroneously stated a quota larger than the correct effective quota, the
quota shown on the erroneous notice shall serve as the basis for
marketing penalty computations for the farm for the current marketing
year only if the county committee determines and the State Executive
Director concurs that:
(a) Extent of error. The error was not so substantial as to place
the operator on notice that such notice of quota was incorrect; and
(b) Response to notice. The operator, relying upon such notice and
acting in good faith:
(1) Has made plans, or is engaged in activities, to produce the
quota in the amount set forth on the erroneous notice (for example,
land preparation; purchase of seed, fertilizer, and other production
materials; or reducing the acreage of other crops); or
(2) Has planted the acreage of peanuts needed to produce the
erroneous farm poundage quota.
14. Redesignated Sec. 729.214 is revised:
[[Page 37001]]
a. In paragraph (a)(2) by removing ``with respect to the 1992 and
subsequent crops'';
b. By redesignating paragraphs (d) through (l) as (e) through (m);
and
c. By revising paragraph (c), adding a new paragraph (d), and
revising redesignated paragraphs (f)(1)(iii)(A), (f)(3)(i), and (l) to
read as follows:
Sec. 729.214 Transfer of quota by sale, lease, owner, or operator.
* * * * *
(c) Location of farms. In order to transfer poundage quota between
two farms, such farms must be located within the same State and, to the
extent required by paragraph (d) of this section, in the same county.
It is not necessary for the receiving farm to have had a basic quota in
the current or prior year, except as provided in paragraph (d)(4) of
this section.
(d) Limitations on transfer by sale or lease. Subject to the
provisions of paragraph (m) of this section:
(1) States with less than 10,000 tons of quota. With respect to
farms in any State for which the State's poundage quota for the year
preceding the current year was less than 10,000 tons, transfers of
peanut quota by sale or lease may be made to any other farm in any
county within the State.
(2) States with 10,000 tons or more of quota. For farms in States
with 10,000 tons or more of quota:
(i) Poundage quota may be transferred to any other farm within the
same county.
(ii) If the farm is in a county with less than a total of 50 tons
of quota, the poundage quota may be transferred to any other farm
within the same State without regard to the limitations set forth in
paragraph (d)(2)(iii) of this section.
(iii) If the farm is in a county with a total of 50 tons or more of
quota, poundage quota transferred out of county shall be limited to 40
percent of the quota in the transferring county as of January 1, 1996.
Further, the cumulative unexpired out-of-county transfers for a crop
year may not exceed the following percentages of the quota in the
transferring county as of January 1, 1996:
(A) 15 percent for the 1996 crop;
(B) 25 percent for the 1997 crop;
(C) 30 percent for the 1998 crop;
(D) 35 percent for the 1999 crop; and
(E) 40 percent for the 2000 and subsequent crops.
(iv) Selecting approved transfers. For purposes of administering
the limitations on the amount of transfers, the Director shall
establish a method for selecting, by lot, those applications which are
to be approved. The Director may give preference to permanent
transfers.
(3) Fall transfers. The limitations in paragraph (d)(2)(iii) of
this section do not apply to 1-year fall transfers, which may, in all
cases, be made to any farm in the same State, subject to such
restrictions as otherwise apply for fall transfers.
(4) Owner or operator transfer. Owner or operator transfers of
poundage quota are permitted to contiguous counties within the same
State without regard to the percentage limitations of paragraph
(d)(2)(iii) of this section; provided that, the receiving farm had a
basic quota established for the preceding year's crop and has the same
owner, in an owner transfer, or the same operator, in an operator
transfer.
* * * * *
(f) Other transfer provisions.--(1) Temporary transfer of quota
from a farm. * * *
(iii) Filed after July 31 and before February 1 (``Fall
transfers''). * * *
(A) The reported or determined acreage of peanuts plus prevented
planted credit for the transferring farm for the current year, when
multiplied by the larger of the farm yield or the highest actual yield
during the base period, is equal to or greater than 90 percent of the
farm's effective quota;
* * * * *
(3) Permanent transfer of quota from a farm. * * *
(i) Permanent transfer of quota to the farm. For the amount of
quota purchased or otherwise permanently transferred to the farm during
the base period, as adjusted for any increase or decrease in such quota
due to adjustment in the national quota during the base period.
* * * * *
(1) Adjustment of marketings. For the purpose of computing
production history for quota increase based on production, in the case
of temporary transfers by owner to the same owner or operator to the
same operator and all out-of-county transfers, if the current year's
produced or considered-produced credit from the receiving farm exceeds
such farm's basic quota, such produced or considered-produced credit on
the receiving farm shall be reduced by the amount of such excess, to
the extent of the quota temporarily transferred to such farm by owner
or operator, and such reduced amount shall be added to the current year
produced or considered-produced credit for the transferring farm.
* * * * *
Sec. 729.15 [Amended]
15. Redesignated Sec. 729.215 is amended in paragraph (f)(2) by
removing ``Sec. 729.204'' and adding ``Sec. 729.206'' in its place.
16. Redesignated Sec. 729.216 is revised to read as follows:
Sec. 729.216 National poundage quota.
(a) National poundage quota for 1996 and subsequent crop years. The
national poundage quota for the 1996 and subsequent crop years shall be
established by the Secretary at a level that is equal to the quantity
of peanuts that the Secretary estimates will be devoted in each
marketing year to domestic edible use (except seed), and related uses.
(b) Disapproval of quotas. No loan for quota peanuts may be made
available for any crop of peanuts with respect to which it is
determined by the Deputy Administrator that poundage quotas have been
disapproved by producers pursuant to a referendum conducted in
accordance with section 358-1(d) of the Agricultural Adjustment Act of
1938, as amended.
Signed at Washington, D.C., on July 5, 1996.
Bruce R. Weber,
Acting Administrator, Farm Service Agency.
[FR Doc. 96-17690 Filed 7-12-96; 2:18 pm]
BILLING CODE 3410-05-P
