[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12888]


[[Page Unknown]]

[Federal Register: May 26, 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-AD23 and 0560-AD28

 

1994 Marketing Quotas and Price Support Levels for Fire-Cured 
(Type 21), Fire-Cured (Types 22-23), Dark Air-Cured (Types 35-36), 
Virginia Sun-Cured (Type 37), Cigar-Filler and Binder (Types 42-44 and 
53-55), and Cigar-Filler (Type 46) Tobaccos

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 the national 
marketing quotas and price support levels for the 1994 crops for 
several kinds of tobacco announced by press release on March 1, 1994.
    In accordance with the Agricultural Adjustment Act of 1938 (the 
1938 Act), as amended, the Secretary determined the 1994 marketing 
quotas to be as follows: Fire-cured (type 21), 2.150 million pounds; 
fire-cured (types 22-23), 40.4 million pounds; dark air-cured (types 
35-36), 10.6 million pounds; Virginia sun-cured (type 37), 131,000 
pounds; cigar-filler and binder (types 42-44 and 53-55), 9.3 million 
pounds; and cigar-filler (type 46), zero pounds.
    This rule is necessary to adjust the production levels of these 
kinds of tobacco to more fully reflect supply and demand conditions.
    In accordance with the Agricultural Act of 1949 (the 1949 Act), as 
amended, the Secretary determined the 1994 levels of support to be as 
follows (in cents per pound): Fire-cured (type 21), 140.7; fire-cured 
(types 22-23), 148.3; dark air-cured (types 35-36), 127.3; Virginia 
sun-cured (type 37), 124.5; cigar-filler and binder (types 42-44 and 
53-55), 108.4; and cigar-filler (type 46), 84.4.

    This is required by section 106 of the 1949 Act.

EFFECTIVE DATE: March 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, 202-720-8839.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and therefore has not been reviewed by OMB.

Executive Order 12778

    The 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 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 part 723 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. 35.

Statutory Background

    This final rule is issued pursuant to the provisions of the 1938 
Act and the 1949 Act.

    On March 1, 1994, the Secretary determined and announced the 
national marketing quotas and price support levels for the 1994 crops 
of fire-cured (type 21), fire-cured (types 22-23), dark air-cured 
(types 35-36), Virginia sun-cured (type 37), cigar-filler and binder 
(types 42-44 and 53-55), and cigar-filler (type 46) tobaccos. A number 
of related determinations were made at the same time, which this final 
rule affirms. On the same date, the Secretary also announced that 
referenda would be conducted by mail with respect to fire-cured (types 
21-23) and dark air-cured (types 35-36) tobaccos.

    During March 28-31, 1994, eligible fire-cured (types 21-23) and 
dark air-cured (types 35-36) tobacco producers voted in separate 
referenda to determine whether such producers disapprove marketing 
quotas for the 1994, 1995, and 1996 marketing years (MYs) for these 
tobaccos. Of the producers voting, 89.8 percent favored marketing 
quotas for fire-cured tobacco and 90.0 percent favored marketing quotas 
for dark air-cured tobacco. Accordingly, quotas and price supports for 
both kinds are in effect for the 1994 MY.
    In accordance with section 312(a) of the 1938 Act, the Secretary of 
Agriculture is required to proclaim not later than March 1 of any MY 
with respect to any kind of tobacco, other than burley and flue-cured 
tobacco, a national marketing quota for any such kind of tobacco for 
each of the next three MYs if such MY is the last year of three 
consecutive years for which marketing quotas previously proclaimed will 
be in effect. With respect to both fire-cured (type 21-23) and dark 
air-cured (types 35-36) tobaccos, the 1993 MY is the last year of three 
such consecutive years. Accordingly, marketing quotas for fire-cured 
(types 21-23) and dark air-cured (types 35-36) tobaccos have been 
proclaimed for each of the three MYs beginning October 1, 1994; October 
1, 1995; and October 1, 1996.
    Sections 312 and 313 of the 1938 Act also provide that the 
Secretary shall announce not later than March 1 of any MY the reserve 
supply level and the total supply of fire-cured (type 21), fire-cured 
(types 22-23), dark air-cured (types 35-36), Virginia sun-cured (type 
37), cigar-filler and binder (types 42-44 and 53-55), and cigar-filler 
(type 46) tobaccos for the MY beginning October 1, 1993, and the 
amounts of the national marketing quotas, national acreage allotments, 
national acreage factors for apportioning the national acreage 
allotments (less reserves) to old farms, and the amounts of the 
national reserves and parts thereof available for (1) new farms and (2) 
making corrections and adjusting inequities in old farm allotments for 
fire-cured (type 21), fire-cured (types 22-23), dark air-cured (types 
35-36), Virginia sun-cured (type 37), cigar-filler and binder (types 
42-44 and 53-55), and cigar-filler (type 46) tobacco for the MY 
beginning October 1994.
    Price support is required to be made available for each crop of a 
kind of tobacco for which marketing quotas are in effect or for which 
marketing quotas have not been disapproved by producers. With respect 
to the 1994 crop of the six kinds of tobacco which are the subject of 
this rule, the respective maximum level of support is determined in 
accordance with section 106 of the 1949 Act.
    The announcement of the price support levels for the 1994 crops of 
the six kinds of tobacco must be made insofar as practicable before the 
beginning of the planting season.

Marketing Quotas

    Section 312(b) of the 1938 Act provides, in part, that the amount 
of the national marketing quota for a kind of tobacco is the total 
quantity of that kind of tobacco which may be marketed that will make 
available during such MY a supply of such tobacco equal to the reserve 
supply level.
    Section 313(g) of the 1938 Act provides that the Secretary may 
convert the national marketing quota into a national acreage allotment 
for apportionment to individual farms.
    Since producers of these kinds of tobacco generally produce less 
than their respective national acreage allotments would allow, it has 
been determined that a larger quota would be necessary to make 
available production equal to the reserve supply level. The amount of 
the national marketing quota so announced may, not later than the 
following March 1, be increased by not more than 20 percent if the 
Secretary determines that such increase is necessary in order to meet 
market demands or to avoid undue restriction of marketings in adjusting 
the total supply to the reserve supply level.
    Section 301(b)(14)(B) of the 1938 Act defines ``reserve supply 
level'' as the normal supply, plus 5 percent thereof, to ensure a 
supply adequate to meet domestic consumption and export needs in years 
of drought, flood, or other adverse conditions, as well as in years of 
plenty. The ``normal supply'' is defined in section 301(b)(10)(B) of 
the 1938 Act as a normal year's domestic consumption and exports, plus 
175 percent of a normal year's domestic use and 65 percent of a normal 
year's exports as an allowance for a normal year's carryover. A 
``normal'' year's domestic consumption is defined in section 
301(b)(11)(B) of the Act as the average quantity produced and consumed 
in the United States during the 10 MYs immediately preceding the MY in 
which such consumption is determined, adjusted for current trends in 
such consumption.
    A normal year's exports is defined in section 301(b)(12) of the 
1938 Act as the average quantity produced in and exported from the 
United States during the 10 MYs immediately preceding the MY in which 
such exports are determined, adjusted for current trends in such 
exports.
    In accordance with section 313(g) 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 acreage allotment 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 the 
national reserve, noted herein, for the 1994 crop of each of these 
kinds of tobacco is adequate for these purposes.
    On December 21, 1993, a proposed rule was published (58 FR 67376) 
in which interested persons were requested to comment with respect to 
these issues.

Discussion of Comments

    Thirty-one written responses were received during the comment 
period which ended February 4, 1994. Some respondents discussed more 
than one kind of tobacco. A summary of these comments by kind of 
tobacco follows:
    (1) Fire-cured (type 21) tobacco. Eight comments were received. 
Four comments recommended that quotas be increased by 5 percent. Two 
others recommended that the marketing quotas be increased by 10 percent 
from the 1993 MY while two more requested an unspecified increase.
    (2) Fire-cured (types 22-23) tobacco. Four comments were received, 
all recommending a five percent increase from the 1993 marketing quota.
    (3) Dark air-cured (types 35-36) tobacco. Five comments were 
received. Recommendations ranged from a 5-percent decrease to a 10-
percent decrease in the quota.
    (4) Virginia sun-cured (type 37) tobacco. Eight comments were 
received. Recommendations ranged from a 5-percent to a 20-percent 
increase in quota.
    (5) Cigar-filler and binder (types 42-44 and 53-55) tobacco. Six 
comments were received. These comments ranged from no change in quota 
to a 35-percent decrease in quota.
    (6) Cigar-filler (type 46) tobacco. No comments were received.
    Based upon a review of these comments and the latest available 
statistics of the Federal Government, which appear to be the most 
reliable data available, the following determinations have been made.

(1) Fire-Cured (Type 21) Tobacco

    The yearly average quantity of fire-cured (type 21) tobacco 
produced in the United States which is estimated to have been consumed 
in the United States during the 10 MYs preceding the 1993-94 MY is 
approximately 1.5 million pounds. The average annual quantity of fire-
cured (type 21) tobacco produced in the United States and exported from 
the United States during the 10 MYs preceding the 1993-94 MY was 2.7 
million pounds (farm sales weight basis). Both domestic use and exports 
have trended sharply downward. For that reason, a normal year's 
domestic consumption has been determined to be 0.5 million pounds and a 
normal year's exports have been determined to be 2.1 million pounds. 
Application of the formula prescribed by section 301(b)(14)(B) of the 
1938 Act results in a reserve supply level of 5.61 million pounds.
    Manufacturers and dealers reported stocks of fire-cured (type 21) 
tobacco held on October 1, 1993, of 4.4 million pounds. The 1993 fire-
cured (type 21) tobacco crop is estimated to be 1.9 million pounds. 
Therefore, the total supply of fire-cured (type 21) tobacco for the 
1993 MY is 6.3 million pounds. During the 1993 MY, it is estimated that 
disappearance will total approximately 2.5 million pounds. By deducting 
this disappearance from the total supply, a carryover of 3.8 million 
pounds at the beginning of the 1994 MY is obtained.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1994, is 1.81 million pounds. This represents 
the quantity of fire-cured (type 21) tobacco which may be marketed that 
will make available during such MY a supply equal to the reserve supply 
level. Less than 85 percent of the announced national marketing quota 
is expected to be produced. Accordingly, it has been determined that a 
national marketing quota of 2.15 million pounds is necessary to make 
available production of 1.81 million pounds. Accordingly, the national 
marketing quota for the 1994 MY is 2.15 million pounds. In accordance 
with section 313(g) of the 1938 Act, dividing the 1994 national 
marketing quota of 2.15 million pounds by the 1989-93, 5-year national 
average yield of 1,388 pounds per acre results in a 1994 national 
acreage allotment of 1,548.99 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 1.05 is determined by dividing the national 
acreage allotment for the 1994 MY, less a national reserve of 5.0 
acres, by the total of 1994 preliminary farm acreage allotments 
(previous year's allotments). The preliminary farm acreage allotments 
reflect the factors specified in section 313(g) of the 1938 Act for 
apportioning the national acreage allotment, less the national reserve, 
to old farms.

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

    The yearly average quantity of fire-cured (types 22-23) tobacco 
produced in the United States which is estimated to have been consumed 
in the United States during the 10 years preceding the 1993 MY was 
approximately 17.8 million pounds. The average annual quantity of fire-
cured (types 22-23) tobacco produced in the United States and exported 
during the 10 MYs preceding the 1993 MY was 16.9 million pounds (farm 
sales weight basis). Both domestic use and exports have trended upward 
recently. A normal year's domestic consumption has for that reason been 
determined to be 21.8 million pounds and a normal year's exports have 
been determined to be 20.7 million pounds. Application of the formula 
prescribed by section 301(b)(14)(B) of the 1938 Act results in a 
reserve supply level of 98.8 million pounds.
    Manufacturers and dealers reported stocks of fire-cured (types 22-
23) tobacco held on October 1, 1993, of 64.0 million pounds. The 1993 
fire-cured (types 22-23) crop is estimated to be 36.8 million pounds. 
Therefore, the total supply of fire-cured (types 22-23) tobacco for the 
MY beginning October 1, 1993, is 100.8 million pounds. During the 1993 
MY, it is estimated that disappearance will total approximately 34.0 
million pounds. By deducting this disappearance from the total supply, 
a carryover of 66.8 million pounds at the beginning of the 1994 MY is 
obtained.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1994, is 32.0 million pounds. This represents 
the quantity of fire-cured (types 22-23) tobacco which may be marketed 
that will make available during the 1994 MY a supply equal to the 
reserve supply level. About 95 percent of the announced national 
marketing quota is expected to be produced.
    Accordingly, it has been determined that a national marketing quota 
for the 1994 MY of 33.7 million pounds is necessary to make available 
production of 32.0 million pounds. In accordance with section 312(b) of 
the 1938 Act, it has been further determined that the 1994 national 
marketing quota must be increased by 20 percent in order to avoid undue 
restriction of marketings. This results in a national marketing quota 
for the 1994 MY of 40.4 million pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
1994 national marketing quota of 40.4 million pounds by the 1989-93, 5-
year national average yield of 2,275 pounds per acre results in a 1994 
national acreage allotment of 17,758.24 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 1.05 is determined by dividing the national 
acreage allotment for the 1994 MY, less a national reserve of 40 acres, 
by the total of 1994 preliminary farm acreage allotments. The 
preliminary farm acreage allotments reflect the factors specified in 
section 313(g) of the 1938 Act for apportioning the national acreage 
allotment, less the national reserve, to old farms.

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

    The yearly average quantity of dark air-cured (types 35-36) tobacco 
produced in the United States, which is estimated to have been consumed 
in the United States, during the 10 MYs preceding the 1993-94 MY was 
approximately 10.6 million pounds. The average annual quantity of dark 
air-cured (types 35-36) tobacco produced in the United States and 
exported from the United States during the 10 MYs preceding the 1993 MY 
was 1.9 million pounds (farm sales weight basis). Both domestic use and 
exports have trended downward. Accordingly, a normal year's domestic 
consumption has been determined to be 10.0 million pounds and a normal 
year's exports have been determined to be 1.6 million pounds. 
Application of the formula prescribed by section 301(b)(14)(B) of the 
1938 Act results in a reserve supply level of 31.6 million pounds.
    Manufacturers and dealers reported stocks of dark air-cured (types 
35-36) tobacco held on October 1, 1993, of 24.2 million pounds. The 
1993 dark air-cured (types 35-36) tobacco crop is estimated to be 9.9 
million pounds. Therefore, the total supply of dark air-cured (types 
35-36) tobacco for the 1993 MY is 34.1 million pounds. During the 1993 
MY, it is estimated that disappearance will total approximately 10.0 
million pounds. By deducting this disappearance from the total supply, 
a carryover of 24.1 million pounds at the beginning of the 1994 MY is 
obtained.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1994, is 7.5 million pounds. This represents 
the quantity of dark air-cured (types 35-36) tobacco which may be 
marketed which will make available during such MY a supply equal to the 
reserve supply level.
    More than 80 percent of the announced national marketing quota is 
expected to be produced. Accordingly, it has been determined that a 
national marketing quota of 8.8 million pounds is necessary to make 
available production of 7.5 million pounds. In accordance with section 
312(b) of the 1938 Act, it has been further determined that the 1994 
national marketing quota must be increased by 20 percent in order to 
avoid undue restriction of marketings. This results in a national 
marketing quota for the 1994 MY of 10.6 million pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
1994 national marketing quota of 10.6 million pounds by the 1989-93, 5-
year average yield of 2,105 pounds per acre results in a 1994 national 
acreage allotment of 5,035.63 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 0.95 is determined by dividing the national 
acreage allotment for the 1994 MY, less a national reserve of 28.0 
acres, by the total of 1994 preliminary farm acreage allotments. The 
preliminary farm acreage allotments reflect the factors specified in 
section 313(g) of the 1938 Act for apportioning the national acreage 
allotment, less the national reserve, to old farms.

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

    The yearly average quantity of Virginia sun-cured (type 37) tobacco 
produced in the United States which is estimated to have been consumed 
in the United States during the 10 MYs preceding the 1993-94 MY was 
approximately 220,000 pounds. The average annual quantity produced in 
the United States and exported during the same period was approximately 
120,000 pounds (farm sales weight basis). Domestic use has shown a 
sharp downward trend, and exports have shown a moderate downward trend. 
Accordingly, a quantity of 92,000 pounds has been determined to be a 
normal year's domestic consumption and a quantity of 20,000 pounds has 
been determined to be a normal year's exports. Application of the 
formula prescribed by section 301(b)(14)(B) of the 1938 Act results in 
a reserve supply level of 300,000 pounds.
    Manufacturers and dealers reported stocks of Virginia sun-cured 
(type 37) tobacco held on October 1, 1993, of 200,000 pounds. The 1993 
Virginia sun-cured (type 37) tobacco crop is estimated to be 100,000 
pounds. Therefore, the total supply of Virginia sun-cured (type 37) 
tobacco for the 1993 MY is 300,000 pounds. During the 1993 MY, it is 
estimated that disappearance will total approximately 120,000 pounds. 
By deducting this disappearance from the total supply, a carryover of 
180,000 pounds at the beginning of the 1994 MY is obtained.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1994, is 120,000 pounds. This represents the 
quantity of Virginia sun-cured (type 37) tobacco which may be marketed 
that will make available during such MY a supply equal to the reserve 
supply level. Around 90 percent of the announced national marketing 
quota is expected to be produced. Accordingly, it has been determined 
that a national marketing quota of 131,000 pounds is necessary to make 
available production of 120,000 pounds. Accordingly, the national 
marketing quota for the 1994 MY is 131,000 pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
1994 national marketing quota of 131,000 pounds by the 1989-93, 5-year 
national yield of 1,286 pounds per acre results in a 1994 national 
acreage allotment of 101.87 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 1.05 is determined by dividing the national 
acreage allotment for the 1994 MY, less a national reserve of 0.08 
acre, by the total of the 1994 preliminary farm acreage allotments. The 
preliminary farm acreage allotments reflect the factors specified in 
section 313(g) of the 1938 Act for apportioning the national acreage 
allotment, less the national reserve, to old farms.

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

    The yearly average quantity of cigar-filler and binder (types 42-44 
and 53-55) tobacco produced in the United States which is estimated to 
have been consumed in the United States during the 10 years preceding 
the 1993 MY was approximately 16.0 million pounds. The average annual 
quantity of cigar-filler and binder (types 42-44 and 53-55) tobacco 
produced in the United States and exported from the United States 
during the 10 MYs preceding the 1993 MY was less than 100,000 pounds. 
Domestic use has trended downward and exports are almost nonexistent. 
Accordingly, a normal year's domestic consumption has been established 
at 12.0 million pounds while a normal year's export has been 
established at 60,000 pounds. Application of the formula prescribed by 
section 301(b)(14)(B) of the 1938 Act results in a reserve supply level 
of 34.8 million pounds.
    Manufacturers and dealers report stocks of cigar-filler and binder 
(types 42-44 and 53-55) tobacco held on October 1, 1993, of 30.8 
million pounds. The 1993 cigar-filler and binder crop is estimated to 
be 7.7 million pounds. Therefore, the total supply of cigar-filler and 
binder (types 42-44 and 53-55) tobacco for the 1993 MY is 38.5 million 
pounds. During the 1993 MY, it is estimated that disappearance will 
total about 9.0 million pounds. By deducting this disappearance from 
the total supply, a carryover of 29.5 million pounds at the beginning 
of the 1994 MY is obtained.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1994, is 5.3 million pounds. This represents 
the quantity of cigar-filler and binder tobacco which may be marketed 
that will make available during such MY a supply equal to the reserve 
supply level. Slightly less than 70 percent of the announced national 
marketing quota may be produced. Accordingly, it has been determined 
that a 1994 national marketing quota of 7.75 million pounds is 
necessary to make available production of 5.3 million pounds. In 
accordance with section 312(b) of the 1938 Act, it has been further 
determined that the 1994 national marketing quota must be increased by 
20 percent in order to avoid undue restriction of marketings. This 
results in a national marketing quota for the 1994 MY of 9.3 million 
pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
1994 national marketing quota of 9.3 million pounds by the 1989-93, 5-
year national average yield of 1,879 pounds per acre results in a 1994 
national acreage allotment of 4,949.44 acres.
    Pursuant to the provisions of section 313(g), of the 1938 Act, a 
national factor of 0.70 is determined by dividing the national acreage 
allotment for the 1994 MY, less a national reserve of 4 acres, by the 
total of the 1994 preliminary farm acreage allotments. The preliminary 
farm acreage allotments reflect the factors specified in section 313(g) 
of the 1938 Act for apportioning the national acreage allotment, less 
the national reserve, to old farms.

(6) Cigar-Filler (Type 46) Tobacco

    There is no demand for cigar-filler (type 46) tobacco. Accordingly, 
the reserve supply level is zero. The estimated carryover at the start 
of MY 1994 is 0.6 million pounds.
    Because the estimated carryover exceeds the reserve supply level, 
the quantity of tobacco which may be marketed during MY 1994 and the 
1994 acreage allotment are both zero.

(7) Referendum Results for Fire-Cured (Types 21-23) and Dark Air-Cured 
(Types 35-36) Tobaccos

    Marketing quotas shall be in effect for the 1994 MY for fire-cured 
(types 21-23) and dark air-cured (types 35-36) tobaccos. In referenda 
held March 28-31, 1994, 89.8 percent of producers of fire-cured (types 
21-23) tobacco and 90.0 percent of producers of dark air-cured (types 
35-36) tobacco voted in favor of marketing quotas.
    The following is a summary of the results of the separate 
referenda:

----------------------------------------------------------------------------------------------------------------
                                                                                                     Percent yes
                            State                             Total votes   Yes votes     No votes      votes   
----------------------------------------------------------------------------------------------------------------
                                               Fire-Cured Tobacco                                               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Virginia....................................................          720          671           49         93.2
Kentucky....................................................        2,695        2,414          281         89.6
Tennessee...................................................        2,052        1,826          226         89.0
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                             Dark Air-Cured Tobacco                                             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Indiana.....................................................           11           11            0        100.0
Kentucky....................................................        4,597        4,105          492         89.3
Tennessee...................................................        1,034          959           75        92.7 
----------------------------------------------------------------------------------------------------------------

Price Support

    Section 106(f)(6)(A) of the 1949 Act provides that the level of 
support for the 1994 crop of a kind of tobacco (other than flue-cured 
and burley) shall be the level in cents per pound at which the 1993 
crop of such kind of tobacco was supported, plus or minus, 
respectively, the amount by which (i) the support level for the 1994 
crop, as determined under section 106(b) of the 1949 Act, is greater or 
less than (ii) the support level for the 1993 crop, as determined under 
section 106(d) of the 1949 Act if the support level under clause (i) is 
greater than the support level under clause (ii).
    Accordingly, the support level for the 1994 crop of such kind of 
tobacco will be the 1993 level, adjusted by the difference (plus or 
minus) between the 1993 ``basic support level'' and the 1994 ``basic 
support level.''
    In addition, section 106(f)(6)(B) of the 1949 Act provides that to 
the extent requested by the board of directors of an association, 
through which price support is made available to producers (producer 
association), the Secretary may reduce the support level determined 
under section 106(f)(6)(A) of the 1949 Act for the respective kind of 
tobacco to more accurately reflect the market value and improve the 
marketability of such tobacco. Accordingly, the price support level for 
a kind of tobacco set forth in this rule could be reduced if such a 
request is made.

Determinations

    The following levels of price support for the 1993 crops of various 
kinds of tobacco were determined in accordance with section 
106(f)(6)(A) of the 1949 Act: 

------------------------------------------------------------------------
                                                                 Support
                                                                  level 
                         Kind and type                           (cents 
                                                                   per  
                                                                 pound) 
------------------------------------------------------------------------
Virginia fire-cured (type 21).................................     139.5
KY-TN fire-cured (types 22-23)................................     146.4
Dark air-cured (types 35-36)..................................     125.5
Virginia sun-cured (type 37)..................................     123.3
Cigar-filler and binder (type 42-44 and 53-55)................     107.4
Cigar-filler (type 46)........................................     83.4 
------------------------------------------------------------------------

    Section 106(b) of the 1949 Act provides that the ``basic support 
level'' for any year is determined by multiplying the support level for 
the 1959 crop of such kind of tobacco by the ratio of the average of 
the index of prices paid by farmers, including wage rates, interest, 
and taxes (referred to as the ``parity index'') for the three previous 
calendar years to the average index of such prices paid by farmers, 
including wage rates, interest, and taxes for the 1959 calendar year. 
For the 1994 crop year:
    (1) Average parity indexes for calendar years 1990-1993 are as 
follows. 

------------------------------------------------------------------------
           Year              Index              Year              Index 
------------------------------------------------------------------------
1990......................    1,265  1991......................    1,285
1991......................    1,298  1992......................    1,303
1992......................    1,298  1993......................    1,340
Average...................    1,287  Average...................   1,309 
------------------------------------------------------------------------

    (2) Average parity index, calendar year 1959=298.
    (3) 1993 ratio of 1,287 to 298=4.32; 1994 ratio of 1,287 to 
298=4.39.
    (4) Ratios times 1959 support levels and 1994 increase in basic 
support levels are as follows:

----------------------------------------------------------------------------------------------------------------
                                                     1959      Basic support level\1\     Increase from 1993 to 
                                                   support   --------------------------           1994          
                 Kind and type                      level                              -------------------------
                                                ------------- 1993 (cent/  1994 (cent/  100% (cent/   65% (cent/
                                                  (cent/lb.)      lb.)         lb.)         lb.)         lb.)   
----------------------------------------------------------------------------------------------------------------
VA 21..........................................         38.8        168.4        170.3          1.9          1.2
KY-Tenn 22-23..................................         38.8        168.4        170.3          1.9          1.2
KY-Tenn 35-36..................................         34.5        149.7        151.5          1.8          1.2
VA 37..........................................         34.5        149.7        151.5          1.8          1.2
Cigar-filler and binder 42-44, 54-55...........         28.6        124.1        125.6          1.5          1.0
Cigar-filler 46................................         29.7        128.9        130.4          1.5         1.0 
----------------------------------------------------------------------------------------------------------------
\1\1993 ratio is 4.32, 1994 ratio is 4.39.                                                                      

    Section 106(d) of the 1949 Act provides that the Secretary of 
Agriculture may reduce the level of support which would otherwise be 
established for any grade of such kind of tobacco which the Secretary 
determines will likely be in excess supply. In addition, the weighted 
average of the level of support for all eligible grades of such tobacco 
must, after such reduction, reflect not less than 65 percent of the 
increase in the support level for such kind of tobacco which would 
otherwise be established under section 106 of the Act if the support 
level is higher than the support level for the preceding crop. Before 
any such reduction is made, the Secretary must consult with the 
associations handling price support loans and consideration must be 
given to the supply and anticipated demand of such tobacco, including 
the effect of such reduction on other kinds of quota tobacco. In 
determining whether the supply of any grade of any kind of tobacco of a 
crop will be excessive, the Secretary shall take into consideration the 
domestic supply, including domestic inventories, the amount of such 
tobacco pledged as security for price support loans, anticipated 
domestic and export demand, based on the maturity, uniformity, and 
stalk position of such tobacco.
    For MY 1994, the flue-cured support level was increased by 65 
percent of the formula increase to within about 9 percent of 1993's 
average market price. For the kinds of tobacco that are the subject of 
this rule, MY 1993 prices were further above the support level, and 
overall loan receipts remained low. Only loan placements for cigar-
filler and binder (types 42-44 and 53-55) were as much as 10 percent of 
production for MY 1993. Although fire-cured (type 21) and Virginia sun-
cured (type 37) supply-use ratios suggest slightly short supplies, 
their respective loan associations prefer lower price support levels. 
Therefore, for fire-cured tobacco (type 21), Virginia sun-cured tobacco 
(type 37), and cigar-filler and binder tobacco (types 42-44 and 53-55), 
the MY 1994 support levels consist of the 1993 support levels increased 
by 65 percent of the difference between the 1994 ``basic support 
level'' and the 1993 ``basic support level.'' The supply-use ratios for 
Kentucky-Tennessee fire-cured (types 22-23) and dark air-cured (types 
35-36) suggest adequate supplies. Accordingly, for these tobaccos, the 
MY 1994 support level consists of the MY 1993 level of support 
increased by the difference between the MY 1994 ``basic support level'' 
and the MY 1993 ``basic support level.'' Also, chewing tobacco, smoking 
tobacco, and snuff manufacturing formulas limit the substitutability of 
one of these kinds of tobacco for another. Cigarettes, the principal 
outlet for flue-cured and burley tobaccos, do not require any of these 
six kinds of tobacco in their blends.
    Accordingly, the following determinations announced by the 
Secretary of Agriculture on March 1, 1994, in accordance with section 
106(f)(8)(A) of the 1949 Act are established for MY 1994 for fire-cured 
(type 21), fire-cured (types 22-23), dark air-cured (types 35-36), 
Virginia sun-cured (type 37), cigar-filler and binder (types 42-44 and 
53-55), and cigar-filler (type 46) tobaccos.

------------------------------------------------------------------------
                                                                 Support
                                                                  level 
                        Kind and type                            (cents 
                                                                   per  
                                                                 pound) 
------------------------------------------------------------------------
Virginia fire-cured (type 21).................................     140.7
Kentucky-Tennessee fire-cured (types 22-23)...................     148.3
Dark air-cured (types 35-36)..................................     127.3
Virginia sun-cured (type 37)..................................     124.5
Cigar-filler and binder (types 42-44 and 53-55)...............     108.4
Cigar-filler (type 46)........................................      84.4
------------------------------------------------------------------------

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 723.113 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


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

* * * * *
    (b) The 1994-crop national marketing quota is 2.15 million pounds.
    3. Section 723.114 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


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

* * * * *
    (b) The 1994-crop national marketing quota is 40.4 million pounds.
    4. Section 723.115 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


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

* * * * *
    (b) The 1994-crop national marketing quota is 10.6 million pounds.
    5. Section 723.116 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


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

* * * * *
    (b) The 1994-crop national marketing quota is 131,000 pounds.
    6. Section 723.117 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


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

* * * * *
    (b) The 1994-crop national marketing quota is 9.3 million pounds.
    7. Section 723.118 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 723.118  Cigar-filler (type 46) tobacco.

* * * * *
    (b) The 1994-crop national marketing quota is zero pounds.

PART 1464--TOBACCO

    8. 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.

    9. Section 1464.13 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.13  Fire-cured (type 21) tobacco.

* * * * *
    (b) The 1994-crop national price support level is 140.7 cents per 
pound.
    10. Section 1464.14 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.14  Fire-cured (types 22-23) tobacco.

* * * * *
    (b) The 1994-crop national price support level is 148.3 cents per 
pound.
    11. Section 1464.15 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.15  Dark air-cured (types 35-36) tobacco.

* * * * *
    (b) The 1994-crop national price support level is 127.3 cents per 
pound.
    12. Section 1464.16 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.16  Virginia sun-cured (type 37) tobacco.

* * * * *
    (b) The 1994-crop national price support is 124.5 cents per pound.
    13. Section 1464.17 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.17  Cigar-filler and binder (types 42-44 and 55-53) tobacco.

* * * * *
    (b) The 1994-crop national price support level is 108.4 cents per 
pound.
    14. Section 1464.18 is amended by:
    A. Redesignating existing text as paragraph (a), and
    B. Adding paragraph (b) to read as follows:


Sec. 1464.18  Cigar-filler (type 46) tobacco.

* * * * *
    (b) The 1994-crop national price support level is 84.4 cents per 
pound.

    Signed at Washington, DC, on May 20, 1994.
Bruce R. Weber,
Acting Administrator, Agricultural Stabilization and Conservation 
Service and Executive Vice President, Commodity Credit Corporation.
[FR Doc. 94-12888 Filed 5-25-94; 8:45 am]
BILLING CODE 3410-05-P