Special Combinations for Tobacco Allotments and Quotas

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AE13

Special Combinations for Tobacco Allotments and Quotas

agency: Farm Service Agency, USDA.

[[Page 9127]]

action: Final rule.

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summary: This final rule adopts with a modification the interim rule

published in the Federal Register (62 FR 15599) on April 2, 1997. The

interim rule provided for special combinations of flue-cured tobacco

allotments and quotas on participating and nonparticipating farms with

``production flexibility contracts'' (PFC) under the Agricultural

Market Transition Act of 1996 (AMTA) and for, burley tobacco, an

exemption to dropping the quota on divided farms with less than 1,000

pounds if the farm meets the requirements for a farm combination. After

further review of the rule and the comments, the regulations adopted in

the interim rule have been modified to allow for other transfers of

tobacco quota, for all tobacco types, between farms with the same owner

in cases where a farm combination could otherwise be used to produce

the desired result but is not available, as a practical matter, because

of restrictions under the PFC program administered by the Department.

The amended provisions permit such transfers to be approved without

regard to restrictions for purchased quota that apply to transfers by

lease or sale. Also, the interim rule has been modified to permit the

agency to modify non-statutory deadlines for transfers and other

requirements when special circumstances warrant such action.

effective date: February 24, 1998.

for further information contact: Joe Lewis Jr., 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 final 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

The final rule has been reviewed in accordance with Executive Order

12988. The provisions of this final rule are not retroactive and

preempt State laws to the extent that such laws are inconsistent with

the provisions of this final 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 part 780 and 7 CFR

part 711, as applicable, must be exhausted.

Paperwork Reduction Act

This final 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.). The information

collections required in 7 CFR part 723 have previously been cleared

under OMB control number 0560-0058.

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 this rule should be effective

immediately. The interim rule (at 62 FR 15599, April 2, 1997) set forth

the reasons that the rule should be effective immediately. The nature

of the interim rule was to provide relief to flue-cured tobacco

producers who were adversely affected by restriction on the combination

of farms. Additional relief is provided in this final rule by allowing

for other transfers of tobacco quota, for all tobacco types, between

farms with the same owner in cases where a farm combination could

otherwise be used to produce the desired result but is not available,

as a practical matter, because of restrictions under the PFC program of

the Department. As the rule simply provides additional flexibility to

producers and should not have any material adverse effect on anyone, it

has been determined that the full rule, including the modification,

should be made effective immediately.

Discussion of Comments

The interim rule (at 62 FR 15599, April 2, 1997) requested comments

from interested parties. A total of three comments were received from

the public; two from State level farm organizations, and one from a

county level farm organization. All comments were supportive of the

provisions relating to the special combinations of flue-cured tobacco

allotments and quotas. These special combinations would avoid undue

hardships on many flue-cured tobacco producers. It should be noted that

the adopted rule allows for effective combinations of farms in cases

where the combination could otherwise occur but for restrictions that

may arise under the PFC program of the Department, as was indicated in

the preamble of the interim rule. The adopted regulations do not

override basic limitations on transfers. Thus, for example, the rule

does not provide new authority for the transfer or effective movement

of quota across county lines that otherwise would not be possible

through a farm combination as the existing restrictions on such

movements of quota are statutory. However, on further review it has

been determined to otherwise expand the rule to provide authority to

allow for effective combinations in all instances for tobaccos, as the

need may arise, where the result sought would be obtained, otherwise,

by a farm combination were it not for restrictions arising under the

PFC program. This would, for example, allow for effective transfers of

quota to be made between two burley farms with the same owner in

instances in which the transfer would otherwise be prohibited under the

rules because of there being a transfer to and from the transferring

farm within the same three year period. Essentially, the modified rule

would simply allow the farms to be considered to be the same farm for

tobacco purposes just as they could have been in the past through a

farm combination without having to treat those farms as being combined

for PFC purposes as well. Protection for the PFC program will be

provided in the manner specified in the interim rule through

restrictions on using the land freed up by the transfer of quota.

Specifically, that land will not be usable for the production of ``PFC

commodities''--that is, commodities for which there is a potential

eligibility for loans under the PFC program. To make this and other

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clarifying changes, 7 CFR 723.209(c) as published in the interim rule

is amended. In addition, with respect to restrictions relating to

transfers in general, 7 CFR 723.103 is amended so that non-statutory

deadlines and other requirements may be modified where circumstances

warrant, such as in the case this year with the final deadline for

marketing burley tobacco where that deadline has proven inopportune

given weather and crop conditions this year. This additional

flexibility should not have an adverse effect on anyone and should

provide a greater opportunity to allow for relief in meritorious cases.

Consequently, delaying implementation of that provision appears to be

contrary to the public interest.

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, the interim rule for 7

CFR part 723 published on April 2, 1997 (62 FR 15599) is hereby adopted

as a final rule with the following changes:

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, 11377-1379, 1421, 1445-1 and 1445-2.

2. The heading for Sec. 723.209 is revised as set forth below.

3. Paragraph (c) of 723.209 is amended as follows:

(i) In the first sentence, ``quotas for flue-cured tobacco,'' is

revised to read ``quotas'';

(ii) In the third sentence, ``PFC flue-cured quota farm'' is

revised to read ``PFC farm'';

(iii) The fifth sentence is revised to read as follows:

Sec. 723.209 Determination of acreage allotments, marketing quotas,

and yields for combined farms; special combinations for farms with

production flexibility contracts.

* * * * *

(c) * * * Such action could result in a farm being found to have

had excess acreage devoted to tobacco or excess marketings of tobacco,

in which case certain penalties, along with other sanctions as may be

applicable, would apply. * * *

4. Section 723.103(d) is amended by adding at the end a new

sentence to read as follows:

Sec. 723.103 Administration

* * * * *

(d) * * * Further, the Administrator or the Administrator's

designee may modify any deadline or other provisions of this part to

the extent that doing so is determined by such person to be appropriate

and not inconsistent with the purposes of the program administered

under this part.

Signed at Washington, DC, on February 18, 1998.

Keith Kelly,

Administrator, Farm Service Agency.

[FR Doc. 98-4560 Filed 2-23-98; 8:45 am]

BILLING CODE 3410-05-M