National Marketing Quotas for Fire-Cured (Type 21), Fire-Cured (Types 22-23), Maryland (Type 32), Dark Air-Cured (Types 35-36), Virginia Sun-Cured (Type 37), Cigar Filler (Type 41), Cigar-Filler and Binder (Types 42-44 and 53-55), and Cigar-Binder (Types 51-52) Tobaccos

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AF20

National Marketing Quotas for Fire-Cured (Type 21), Fire-Cured

(Types 22-23), Maryland (Type 32), Dark Air-Cured (Types 35-36),

Virginia Sun-Cured (Type 37), Cigar Filler (Type 41), Cigar-Filler and

Binder (Types 42-44 and 53-55), and Cigar-Binder (Types 51-52) Tobaccos

AGENCY: Farm Service Agency, USDA.

[[Page 5286]]

ACTION: Proposed rule.

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SUMMARY: The Secretary of Agriculture (the Secretary) is required by

the Agricultural Adjustment Act of 1938, as amended, (the Act) to

proclaim by March 1, 1998, for referenda purposes, national marketing

quotas for Maryland (type 32), Virginia sun-cured (type 37), cigar

filler (type 41), and cigar-binder (types 51-52) tobacco for the 1998-

99, 1999-2000 and 2000-2001 marketing years (MYs) and to determine and

announce the amounts of the national marketing quotas for fire-cured

(type 21), fire-cured (types 22-23), Maryland (type 32), dark air-cured

(types 35-36), Virginia sun-cured (type 37), cigar-filler (type 41),

cigar-filler and binder (types 42-44 and 53-55), and cigar-binder

(types 51-52) kinds of tobacco for the 1998-99 MY. The public is

invited to submit written comments, views, and recommendations

concerning the determination of the national marketing quotas for such

kinds of tobacco, and other related matters which are discussed in this

proposed rule.

DATES: Comments must be received on or before February 13, 1998, in

order to be assured of consideration.

ADDRESSES: Comments must be submitted to the Director, Tobacco and

Peanuts Division, Farm Service Agency (FSA), United States Department

of Agriculture, STOP 0514, 1400 Independence Avenue, S.W., Washington,

DC 20250-0514. All written submissions will be made available for

public inspection from 8:15 a.m. to 4:45 p.m., Monday through Friday,

except holidays in Room 5750-South Building, 1400 Independence Avenue,

S.W., Washington, DC 20250-0514.

FOR FURTHER INFORMATION CONTACT: Robert L. Tarczy, Tobacco and Peanuts

Division, FSA, USDA, STOP 0514, 1400 Independence Avenue, S.W.,

Washington, DC 20250-0514, telephone 202-720-5346. Copies of the cost-

benefit assessment prepared for the rule can be obtained from Mr.

Tarczy.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This proposed rule has been determined to be significant and was

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 Loan and Purchases--10.051.

Executive Order 12988

This rule has been reviewed in accordance with Executive Order

12998. The provisions of this proposed rule do not preempt State laws,

are not retroactive, and do not involve administrative appeals.

Regulatory Flexibility Act

It has been determined that the Regulatory Flexibility Act is not

applicable to this proposed rule since neither FSA nor the Commodity

Credit Corporation (CCC) is 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 of these determinations.

Paperwork Reduction Act

These proposed amendments do not contain information collections

that require clearance by the Office of Management and Budget under the

provisions of 44 U.S.C. chapter 35.

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.

Discussion

The proposed rule would amend 7 CFR part 723 to set forth the 1998-

crop marketing quotas for these eight kinds of tobacco.

Section 312(b) of the Act, provides that the Secretary shall

determine and announce, not later than March 1, 1998, with respect to

the kinds of tobacco specified in this proposed rule, the amount of the

national marketing quota which will be in effect for MY 1998 in terms

of the total quantity of tobacco which may be marketed that will allow

a supply of each kind of tobacco equal to the reserve supply level.

Also, Section 312(c) of the Act requires for this year that, within

30 days after proclamation of national marketing quotas for Maryland

(type 32), Virginia sun-cured (type 37), Pennsylvania filler (type 41),

and cigar binder (types 51-52) the Secretary must conduct referenda of

farmers engaged in the 1997 production of each kind of tobacco to

determine whether they favor or oppose marketing quotas for MYs 1998,

1999 and 2000. These referenda are required because by kind, MY 1997 is

the last year of the three consecutive MYs for which marketing quotas

previously proclaimed will be in effect or because marketing quotas

previously proclaimed were disapproved by producers in referenda held

in 1995.

The Secretary will proclaim the results of the referenda. As

provided in the Act, if more than one-third of the farmers voting in a

referendum for a kind of tobacco oppose the quota, the national

marketing quota previously proclaimed will not become effective.

Section 313(g) of the Act authorizes the Secretary to convert the

national marketing quota into a national acreage allotment by dividing

the national marketing quota by the national average yield for the 5

years immediately preceding the year in which the national marketing

quota is proclaimed. In addition, the Secretary is authorized to

apportion, through county FSA committees, the national acreage

allotment to tobacco producing farms, less a reserve not to exceed 1

percent thereof for new farms, to make corrections and adjust

inequities in old farm allotments, through the national factor. The

national factor is determined by dividing the preliminary quota (the

sum of quotas for old farms) into the quota determined for the MY in

question (less the reserve). Procedures will continue unchanged for (1)

converting marketing quotas into acreage allotments; (2) apportioning

allotments among old farms; (3) apportioning reserves for use in (a)

establishing allotments for new farms, and (b) making corrections and

adjusting inequities in old farm allotments; and (4) holding referenda.

Producers of three kinds of tobacco--Maryland (type 32), cigar

filler (type 41), and cigar binder (types 51-52) are expected to reject

marketing quotas. Accordingly, for these kinds this announcement will

likely not be codified.

For the other five kinds--Virginia fire-cured (type 21), fire-cured

(types 22-23), dark air-cured (types 35-36), Virginia sun-cured (type

37), and cigar filler and binder (types 42-44; 53-55) tobaccos supply

and demand are in balance. Thus, changes in 1998 marketing quotas, if

any, will likely be small.

Request for Comments

This rule proposes to amend 7 CFR part 723, subpart A to include

1998-crop national marketing quotas for fire-cured (type 21), fire-

cured (types 22-23), Maryland (type 32), dark-air cured (types 35-36),

Virginia sun-cured (type 37), cigar-filler (type 41), cigar-filler and

binder (types 42-44 and 53-55) and cigar binder (types 51-52) tobaccos.

These eight kinds of tobacco account for about 5 percent of total U.S.

tobacco production.

[[Page 5287]]

Comments are requested concerning the proposed establishment of the

national marketing quotas for the subject tobaccos at the following

levels:

(1) Fire-Cured (Type 21) Tobacco. The 1998-crop national marketing

quota for fire-cured (type 21) tobacco will range from 2.4 to 3.0

million pounds. This range reflects the assumption that the national

acreage factor will range from 1.0 to 1.2.

(2) Fire-Cured (Types 22-23) Tobacco. The 1998-crop national

marketing quota for fire-cured (types 22-23) tobacco will range from

43.0 to 47.0 million pounds. This range reflects the assumption that

the national acreage factor will range from 1.0 to 1.1.

(3) Dark Air-Cured (Types 35-36) Tobacco. The 1998-crop national

marketing quota for dark air-cured (types 35-36) tobacco will range

from 10.0 to 11.0 million pounds. This range reflects the assumption

that the national acreage factor will range from 1.0 to 1.1.

(4) Virginia Sun-Cured (Type 37) Tobacco. The 1998-crop national

marketing quota for Virginia sun-cured (type 37) tobacco will range

from 150,000 to 165,000 pounds. This range reflects the assumption that

the national acreage factor will range from 1.0 to 1.1.

(5) Cigar-Filler and Binder (Types 42-44 and 53-55) Tobacco. The

1998-crop national marketing quota for cigar-filler and binder (types

42-44 and 53-55) tobaccos will range from 8.0 to 8.8 million pounds.

This range reflects the assumption that the national acreage factor

will range from 1.0 to 1.1.

(6) Maryland (Type 32) Tobacco. The national acreage factor for the

1998 MY will be 1.0 and the national marketing quota will be

approximately 6.0 million pounds.

(7) Pennsylvania Filler (Type 41) Tobacco. The national acreage

factor for the 1998 MY will be 1.0 and the national marketing quota

will be approximately 1.4 million pounds.

(8) Cigar-Binder (Types 51-52) Tobacco. The national acreage factor

for the 1998 MY will be 1.0 and the national marketing quota will be

approximately 700,000 pounds.

Accordingly, comments are requested with respect to the foregoing

issues.

List of Subjects in 7 CFR part 723

Acreage allotments, Marketing quotas, Penalties, Reporting and

recordkeeping requirements, Tobacco.

Accordingly, it is proposed that 7 CFR part 723 be amended as

folllows:

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 723.113 is amended by adding paragraph (f) to read as

follows:

Sec. 723.113 Fire-cured (type 21) tobacco.

* * * * *

(f) The 1998-crop national marketing quota will range from 2.4

million pounds to 3.0 million pounds.

3. Section 723.114 is amended by adding paragraph (f) to read as

follows:

Sec. 723.114 Fire-cured (types 22-23) tobacco.

* * * * *

(f) The 1998-crop national marketing quota will range from 43.0

million pounds to 47.0 million pounds.

4. Section 723.115 is amended by adding paragraph (f) to read as

follows:

Sec. 723.115 Dark air-cured (types 35-36) tobacco.

* * * * *

(f) The 1998-crop national marketing quota will range from 10.0

million pounds to 11.0 million pounds.

5. Section 723.116 is amended by adding paragraph (f) to read as

follows:

* * * * *

Sec. 723.116 Sun-cured (type 37) tobacco.

* * * * *

(f) The 1998-crop national marketing quota will range from 150,000

to 165,000 pounds.

6. Section 723.117 is amended by adding paragraph (f) to read as

follows:

Sec. 723.117 Cigar-filler and binder (types 42-44 and 53-55) tobacco.

* * * * *

(f) The 1998-crop national marketing quota will range from 8.0

million pounds to 8.8 million pounds.

7. Section 723.119 is added (a) to read as follows:

Sec. 723.119 Maryland (type 32) tobacco.

(a) The 1998-crop national marketing quota will range between 5.0

million pounds to 7.0 million pounds.

(b) [Reserved]

8. Section 723.120 is added (a) to read as follows:

Sec. 723.120 Pennsylvania filler (type 41) tobacco.

(a) The 1998-crop national marketing quota will range between 1.3

million pounds to 1.5 million pounds.

(b) [Reserved]

9. Section 723.121 is added (a) to read as follows:

Sec. 723.121 Cigar binder (type 51-52) tobacco.

(a) The 1998-crop national marketing quota will range from 600,000

pounds to 1.0 million pounds.

(b) [Reserved]

Signed at Washington, DC on January 28, 1998.

Keith Kelly,

Administrator, Farm Service Agency.

[FR Doc. 98-2578 Filed 1-29-98; 11:52 am]

BILLING CODE 3410-05-P