Special Combinations for Tobacco Allotments and Quotas

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]

BILLING CODE 3410-05-P