[Federal Register Volume 59, Number 84 (Tuesday, May 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10482]
[[Page Unknown]]
[Federal Register: May 3, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Stabilization and Conservation Service
7 CFR Part 723
Commodity Credit Corporation
7 CFR Part 1464
RIN 0560-AD25
1994 Marketing Quota and Price Support for Burley Tobacco
AGENCIES: Agricultural Stabilization and Conservation Service and
Commodity Credit Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The purpose of this final rule is to codify determinations
made by the Secretary of Agriculture (Secretary) with respect to the
1994 crop of burley tobacco. In accordance with the Agricultural
Adjustment Act of 1938 (1938 Act), as amended, the Secretary determined
the 1994 marketing quota for burley tobacco to be 542.7 million pounds.
In accordance with the Agricultural Act of 1949 (1949 Act), as amended,
the Secretary determined the 1994 price support level to be 171.4 cents
per pound.
EFFECTIVE DATE: February 1, 1994.
FOR FURTHER INFORMATION CONTACT: Robert L. Tarczy, Agricultural
Economist, Tobacco and Peanuts Analysis Division, Agricultural
Stabilization and Conservation Service (ASCS), United States Department
of Agriculture (USDA), room 3736, South Building, P.O. Box 2415,
Washington, DC 20013-2415, telephone 202-720-8839.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule is issued in conformance with Executive Order
12866. Based on information compiled by USDA, it has been determined
that this final rule:
(1) Would have an annual effect on the economy of less than $100
million;
(2) Would not adversely affect in a material way the economy, a
sector of the economy, productivity, competition, jobs, the
environment, public health or safety, or State, local, or tribal
governments or communities;
(3) Would not create a serious inconsistency or otherwise interfere
with an action taken or planned by another agency;
(4) Would not materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or rights and
obligations of recipients thereof; and
(5) Would not raise novel legal or policy issues arising out of
legal mandates, the President's priorities, or principles set forth in
Executive Order 12866.
Final Regulatory Impact Analysis
A final regulatory impact analysis describing the impact of the
established quota and support level is available on request from Robert
L. Tarczy.
Executive Order 12778
This final rule has been reviewed in accordance with Executive
Order 12778, Civil Justice Reform. The provisions of this rule do not
preempt State laws, are not retroactive, and do not involve
administrative appeals.
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.
Regulatory Flexibility Act
It has been determined that the Regulatory Flexibility Act is not
applicable to this final rule since neither ASCS nor the Commodity
Credit Corporation 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 matter of this rule.
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).
Paperwork Reduction Act
The amendments to 7 CFR parts 723 and 1464 set forth in this final
rule do not contain any new or revised information collection
requirements that require clearance through the Office of Management
and Budget under the provisions of 44 U.S.C. chapter 35.
Statutory Background
This rule is issued pursuant to the provisions of the 1938 Act and
the 1949 Act. Section 1108(c) of Public Law. 99-272 provides that the
determinations made in this rule are not subject to the provisions for
public participation in rulemaking contained in 5 U.S.C. 553 or in any
directive of the Secretary.
On February 1, 1994, the Secretary announced the national marketing
quota and price support level for the 1994 crop of burley tobacco.
Marketing Quota
Section 319(c)(3)(A)(B) of the 1938 Act provides, in part, that the
national marketing quota for a marketing year for burley tobacco is the
quantity of such tobacco that is not more than 103 percent nor less
than 97 percent of the total of: (1) The amount of burley tobacco that
domestic manufacturers of cigarettes estimate they intend to purchase
on U.S. auction markets or from producers, (2) the average quantity
exported annually from the U.S. during the three marketing years
immediately preceding the marketing year for which the determination is
being made, and (3) the quantity, if any, that the Secretary, in the
Secretary's discretion, determines necessary to adjust loan stocks to
the reserve stock level. However, any downward adjustment in such loan
inventories may not exceed the greater of 35 million pounds or 50
percent of the amount which the loan inventories exceed the reserve
stock level.
Section 319(c)(3)(C) further provides that, with respect to the
1990 through 1994 marketing years, any reduction in the national
marketing quota being determined shall not exceed 10 percent of the
previous year's national marketing quota. The reserve stock level is
defined in section 301(b)(14)(D) of the 1938 Act as the greater of 50
million pounds or 15 percent of the national marketing quota for burley
tobacco for the marketing year immediately preceding the marketing year
for which the level is being determined.
Section 320A of the 1938 Act provides that all domestic
manufacturers of cigarettes with more than 1 percent of U.S. cigarette
production and sales shall submit to the Secretary a statement of
purchase intentions for the 1994 crop of burley tobacco by January 15,
1994. Six such manufacturers were required to submit such a statement
for the 1994 crop and the total of their intended purchases for the
1994 crop is 324.0 million pounds. The three-year average of exports is
183.8 million pounds.
The national marketing quota for the 1993 crop year was 603.0
million pounds (58 FR 36857). Thus, in accordance with section
301(b)(14)(D), the reserve stock level for use in determining the 1994
marketing quota for burley tobacco is 90.5 million pounds.
On January 21, 1994, USDA projected that the loan coops would have
in their inventories 420.5 million pounds of burley tobacco (excluding
pre-1985 stocks committed to be purchased by manufacturers and covered
by deferred sales). Accordingly, the adjustment to maintain loan stocks
at the reserve supply level is a decrease of 165.0 million pounds.
The total of the three marketing quota components for the 1994-95
marketing year is 342.8 million pounds. However, the 1994 national
marketing quota cannot be less than 90 percent of 1993's quota.
Accordingly, the national marketing quota for the marketing year
beginning October 1, 1994, for burley tobacco is 542.7 million pounds.
In accordance with section 317(e) of the 1938 Act, the Secretary is
authorized to establish a national reserve from the national acreage
allotment in an amount equivalent to not more than 1 percent of the
national poundage quota for the purpose of making corrections in farm
acreage allotments, adjusting for inequities, and for establishing
allotments for new farms. The Secretary has determined that a national
reserve for the 1994 crop of burley tobacco of 1,862,367 pounds is
adequate for these purposes. In setting farm quotas for the 1994 burley
crop, it was also determined based on past practice that a factor of
0.90 would be used to adjust preliminary farm quotas to reach the
national poundage quota.
Price Support
Price support is required to be made available for each crop of a
kind of tobacco for which quotas are in effect, or for which marketing
quotas have not been disapproved by producers, at a level determined in
accordance with a formula prescribed in section 106 of the 1949 Act.
With respect to the 1994 crop of burley tobacco, the level of
support is determined in accordance with sections 106(d) and (f) of the
1949 Act. Section 106(f)(7)(A) of the 1949 Act provides that the level
of support for the 1994 crop of burley tobacco shall be:
(1) The level, in cents per pound, at which the 1993 crop of burley
tobacco was supported, plus or minus, respectively,
(2) An adjustment of not less than 65 percent nor more than 100
percent of the total, as determined by the Secretary after taking into
consideration the supply of the kind of tobacco involved in relation to
demand, of:
(A) 66.7 percent of the amount by which:
(I) The average price received by producers for burley tobacco on
the United States auction markets, as determined by the Secretary,
during the 5 marketing years immediately preceding the marketing year
for which the determination is being made, excluding the year in which
the average price was the highest and the year in which the average
price was the lowest in such period, is greater or less than:
(II) The average price received by producers for burley tobacco on
the United States auction markets, as determined by the Secretary,
during the 5 marketing years immediately preceding the marketing year
prior to the marketing year for which the determination is being made,
excluding the year in which the average price was the highest and the
year in which the average price was the lowest in such period; and
(B) 33.3 percent of the change, expressed as a cost per pound of
tobacco, in the index of prices paid by the tobacco producers from
January 1 to December 31 of the calendar year immediately preceding the
year in which the determination is made.
The difference between the two 5-year averages (i.e., the
difference between (A) (I) and (II)) is 4.7 cents per pound. The
difference in the cost index from January 1 to December 31, 1993, is
also 4.7 cents per pound. Applying these components to the price
support formula (4.7 cents per pound, two-thirds weight; 4.7 cents per
pound, one-third weight) results in a weighted total of 4.7 cents per
pound. As indicated, section 106 provides that the Secretary may, on
the basis of supply and demand conditions, limit the change in the
price support level to no less than 65 percent of that amount. In order
to remain competitive in foreign and domestic markets, the Secretary
used his discretion to limit the increase to 65 percent of the maximum
allowable increase. Accordingly, the 1994 crop of burley tobacco will
be supported at 171.4 cents per pound, 3.1 cents higher than in 1993.
List of Subjects
7 CFR Part 723
Acreage allotments, Marketing quotas, Penalties, Reporting and
recordkeeping requirements, Tobacco.
7 CFR Part 1464
Loan programs--agriculture, Price support programs, Reporting and
recordkeeping requirements, Tobacco, Warehouses.
Accordingly, 7 CFR parts 723 and 1464 are amended as follows:
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, 1314c, 1314d,
1314f, 1314h, 1315, 1316, 1363, 1372-75, 1377-1379, 1421, 1445-1,
and 1445-2.
2. Section 723.112 is amended by:
A. Redesignating existing text as paragraph (a), and
B. Adding paragraph (b) to read as follows:
Sec. 723.112 Burley (type 31) tobacco.
* * * * *
(b) The 1994-crop national marketing quota is 542.7 million pounds.
PART 1464--TOBACCO
3. The authority citation for 7 CFR part 1464 continues to read as
follows:
Authority: 7 U.S.C. 1421, 1423, 1441, 1445, 1445-1 and 1445-2;
15 U.S.C. 714b and 714c.
4. Section 1464.19 is amended by:
A. Redesignating existing text as paragraph (a), and
B. Adding paragraph (b) to read as follows:
Sec. 1464.19 Burley (type 31) tobacco.
* * * * *
(b) The 1994-crop national price support level is 171.4 cents per
pound.
Signed at Washington, DC, on April 22, 1994.
Bruce R. Weber,
Acting Administrator, Agricultural Stabilization and Conservation
Service and Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-10482 Filed 5-2-94; 8:45 am]
BILLING CODE 3410-05-P