[Federal Register Volume 63, Number 93 (Thursday, May 14, 1998)]
[Rules and Regulations]
[Pages 26713-26714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12860]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 63, No. 93 / Thursday, May 14, 1998 / Rules
and Regulations
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DEPARTMENT OF AGRICULTURE
Farm Service Agency
7 CFR Part 723
RIN 0560-AF14
Special Combinations for Tobacco Allotments and Quotas
AGENCY: Farm Service Agency, USDA.
ACTION: Interim Rule and Technical Correction.
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SUMMARY: This notice corrects a reference contained in a final rule,
published on February 24, 1998, (63 FR 9126) which amended the tobacco
regulations. Also, to provide greater flexibility to tobacco farmers,
this notice further amends the regulations to: allow for special farm
combinations even where neither of the farms to be combined has a
production flexibility contract (PFC) and to modify the consent
requirements for the special combinations allowed under that section.
In addition other corrections have been made to the regulation for
purposes of clarity.
DATES: Effective: May 14, 1998. Comments must be received by July 13,
1998, to be assured of consideration.
ADDRESSES: Submit comments on the interim rule to: Director, Tobacco
and Peanuts Division, USDA, FSA, STOP 0514, 1400 Independence Avenue,
SW, Washington, DC 20013-0514. Comments may be faxed to (202) 690-2298.
All written submissions made pursuant to this rule will be made
available for public inspection in Room 5750 of the South Building,
USDA, between the hours of 8:15 a.m. and 4:45 p.m., during regular
Federal workdays.
FOR FURTHER INFORMATION CONTACT: Joe Lewis, Jr., Agricultural Program
Specialist, 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 interim
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
This interim rule has been reviewed in accordance with Executive
Order 12988. The provisions of this interim rule are not retroactive
and 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
723, the administrative appeal provisions set forth at 7 CFR parts 780
and 711, as applicable, must be exhausted.
Paperwork Reduction Act
This interim 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). A FR notice with a 60-
day comment period for the information collections required in 7 CFR
part 723 was published on September 25, 1997 (62 FR 50286). No comments
were received. A request for revision and reinstatement has been
submitted for approval.
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 might apply, that this rule
should be effective immediately because the planting season for all
kinds of tobacco began in early April and tobacco producers must make
their final rotation and planting decisions. The nature of this interim
rule and notice is to: (1) Correct a reference contained in a previous
rule; (2) add greater flexibility for producers in combining farms for
tobacco purposes only. As the rule simply provides for such flexibility
and should not adversely affect anyone, it would be contrary to the
public interest to delay the implementation date of the new
regulations.
Background and Discussion
The final rule published on February 24, 1998, (63 FR 9126),
adopted and modified the interim rule published on April 2, 1997 (62 FR
15599) which allowed, under Sec. 723.209, for special combinations of
flue-cured tobacco allotments and quotas on participating and
nonparticipating farms with PFCs. Though the regulations, as modified
through the February 24 rule were correct, the preamble to the February
24 publication incorrectly indicated that the special combinations
allowed by that rule were limited to cases where the two farms being
combined were owned by the same person. That was not the intention of
the rule nor was such a limitation actually contained in the adopted
regulations themselves. That erroneous reference in the February 24,
1998, preamble is hereby corrected. In addition, this rule adopts
clarifying language for Sec. 723.209 and further amends Sec. 723.209 so
as to explicitly
[[Page 26714]]
allow special combinations even if no PFC farm is involved. This will
permit variances from normal combination rules that would otherwise
apply under 7 CFR part 718. Such variances will allow for greater
flexibility to farmers with special needs as might arise for tobacco-
only combinations. There is a special need for farm combinations with
respect to the tobacco program because it is one of the few programs
with an existing farm-oriented poundage or quota system and because of
limitations that exist with respect to the leasing of allotments and
quotas. These special combinations allow for better farming practices,
including crop rotation and mirror long-term practices in tobacco. The
amendments to Sec. 723.209 would, in addition, provide explicitly that
for all special combinations allowed under Sec. 723.209, the Deputy
Administrator may waive consent requirements that would normally apply
for combinations under the rules in 7 CFR part 718. Under the 7 CFR
part 718 regulations, normally all of the owners and operators of both
farms to be combined must consent to the combination. However,
Sec. 723.209 deals with limited and temporary, perhaps frequent,
combinations that can involve tobacco farms that have many owners as
the farms have been passed down among several generations. Locating,
and obtaining a verifiable consent from all of the owners of tobacco
farms for each such transaction can be very difficult and is not
purposeful given that the farm will be continuing its basic operation
in a manner similar to the way it has operated in the past.
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, 7 CFR part 723 is
amended as follows:
PART 723--[AMENDED]
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. The heading for Sec. 723.209 is revised and paragraph (c) is
revised to read as follows:
Sec. 723.209 Determination of acreage allotments, marketing quotas,
yields for combined farms; and special tobacco combinations.
* * * * *
(c) Special tobacco combinations. Notwithstanding other provision
of this title, the Deputy Administrator may, upon proper application
and to the extent deemed consistent with other obligations, permit
farms, with respect to tobacco allotments and tobacco quotas, to be
considered combined for purposes of this part and part 1464 of this
title only without being combined for other purposes. This allowance
shall apply for tobacco of all kinds and types and with respect to all
farms even if one or more of the farms to be combined is the subject of
a production flexibility contract (PFC) executed in connection with the
program operated under the provisions of 7 CFR part 1412. Such special,
limited combinations must otherwise meet the requirements of 7 CFR part
718 for combinations, except the signature (consent) requirements of
Sec. 718.201(a)(2) of that part. The Deputy Administrator may set such
consent requirements for special farm combinations under this section
as the Deputy Administrator believes necessary or appropriate. Further,
in any case in which one of the farms is a PFC farm, none of the land
on any PFC farm that would have been used for the production of tobacco
can be used for the production of a ``PFC commodity'' as defined in
this section. Such permission shall be conditioned upon the agreement
of all interested parties that land on the PFC allotment or quota farm
that would have been used for the production of tobacco shall not be
used for the production of any PFC commodity. In the event that such
production nonetheless occurs, the special tobacco combination may be
made void, retroactive to the date of original approval. Such curative
action will likely result in a finding of excess tobacco plantings and
sanctions and remedies, which would likely include liability for
penalties and other sanctions for excess marketings of tobacco. The
Deputy Administrator may set such other conditions on the combinations
as needed or deemed appropriate to serve the goals of the tobacco
program and the goals of the PFC. The term PFC commodity for purposes
of this section means wheat, corn, grain sorghum, barley, oats, upland
cotton, and rice.
* * * * *
Signed at Washington, DC, on May 8, 1998.
Bruce R. Weber,
Acting Administrator,
Farm Service Agency.
[FR Doc. 98-12860 Filed 5-13-98; 8:45 am]
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