National Marketing Quotas for 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 and 53-55) Tobaccos

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AF51

National Marketing Quotas for 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 and 53-55) Tobaccos

AGENCY: Farm Service Agency, USDA.

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, 1999, for referendum purposes, national marketing

quotas for cigar filler and binder (types 42-44 and 53-55) tobacco for

the 1999-2000, 2000-2001 and 2001-2002 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), dark air-cured (types

35-36), Virginia sun-cured (type 37), and cigar-filler and binder

(types 42-44 and 53-55) kinds of tobacco for the 1999-2000 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 noon March 1, 1999, 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.

SUPPLEMENT 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

12988. 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 1999-

crop marketing quotas for these five kinds of tobacco.

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

determine and announce, not later than March 1, 1999, 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 1999 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 cigar

filler and binder (types 42-44 and 53-55) tobacco, the Secretary must

conduct a referendum of farmers engaged in the 1998 production of such

kind of tobacco to determine whether they favor or oppose marketing

quotas for MYs 1999, 2000 and 2001. This referendum is required because

MY 1998 is the last year of the 3 consecutive MYs for which marketing

quotas previously proclaimed will be in effect for this kind of

tobacco.

The Secretary will proclaim the results of the referendum. As

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

referendum for this 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

[[Page 9453]]

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.

For four of these five kinds of tobacco, supply and demand are in

balance. Thus, changes in 1999 marketing quotas for these four kinds

will likely be small.

Request for Comments

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

1999-crop national marketing quotas for 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 and 53-55) tobaccos.

These five kinds of tobacco account for about 4 percent of total U.S.

tobacco production.

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 1999-crop national marketing quota for fire-cured (type 21)

tobacco will range from 2.2 to 3.0 million pounds. This range reflects

the assumption that the national acreage factor will range from 0.9 to

1.1.

(2) Fire-Cured (Types 22-23) Tobacco

The 1999-crop national marketing quota for fire-cured (types 22-23)

tobacco will range from 32.0 to 40.0 million pounds. This range

reflects the assumption that the national acreage factor will range

from 0.8 to 1.0.

(3) Dark Air-Cured (Types 35-36) Tobacco

The 1999-crop national marketing quota for dark air-cured (types

35-36) tobacco will range from 9.0 to 11.0 million pounds. This range

reflects the assumption that the national acreage factor will range

from 0.8 to 1.0.

(4) Virginia Sun-Cured (Type 37) Tobacco

The 1999-crop national marketing quota for Virginia sun-cured (type

37) tobacco will range from 110,000 to 140,000 pounds. This range

reflects the assumption that the national acreage factor will range

from 0.9 to 1.1.

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

The 1999-crop national marketing quota for cigar-filler and binder

(types 42-44 and 53-55) tobaccos will range from 4.0 to 4.6 million

pounds. This range reflects the assumption that the national acreage

factor will range from 0.8 to 1.0. 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 (g) to read as

follows:

Sec. 723.113 Fire-cured (type 21) tobacco

* * * * *

(g) The 1999-crop national marketing quota will range from 2.2

million pounds to 3.0 million pounds.

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

follows:

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

* * * * *

(g) The 1999-crop national marketing quota will range from 32.0

million pounds to 40.0 million pounds.

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

follows:

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

* * * * *

(g) The 1999-crop national marketing quota will range from 9.0

million pounds to 11.0 million pounds.

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

follows:

* * * * *

Sec. 723.116 Sun-cured (type 37) tobacco

* * * * *

(g) The 1999-crop national marketing quota will range from 110,000

to 140,000 pounds.

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

follows:

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

* * * * *

(g) The 1999-crop national marketing quota will range from 4.8

million pounds to 6.0 million pounds.

Signed at Washington, DC on February 24, 1999.

Keith Kelly,

Administrator, Farm Service Agency.

[FR Doc. 99-5016 Filed 2-24-99; 4:13 pm]

BILLING CODE 3410-05-P