[Federal Register Volume 59, Number 136 (Monday, July 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17241]


[[Page Unknown]]

[Federal Register: July 18, 1994]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 998

[Docket No. FV94-998-2IFR]

 

Clarification of Requirements Established Under Marketing 
Agreement No. 146 Regulating the Quality of Domestically Produced 
Peanuts for 1994 and Subsequent Crop Peanuts

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule clarifies that peanut handlers signatory to Peanut 
Marketing Agreement No. 146 (agreement) may store and shell certain 
Segregation 2 seed peanut lots with Segregation 1 seed peanut lots when 
such lots are produced under the auspices of a State agency, which 
regulates or controls their production. The Peanut Administrative 
Committee (Committee) believes that the current requirements authorize 
such commingling of lots but recommended the clarification to remove 
any chance of confusion. This rule also provides that the unchanged 
portions of the incoming, outgoing, and indemnification regulations 
currently in effect under the agreement for 1993 crop peanuts be 
established for 1994 and subsequent crop peanuts. The clarification of 
requirements was unanimously recommended by the Committee.

DATES: Effective July 18, 1994. Comments received by August 17, 1994 
will be considered prior to issuance of any final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this interim final rule. Comments must be sent in triplicate 
to the Docket Clerk, Marketing Order Administrative Branch, F&V, AMS, 
USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-6456; FAX: 
(202) 720-5698. Comments should reference this docket number, the date, 
and page number of this issue of the Federal Register. Comments 
received will be made available for public inspection in the Office of 
the Docket Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 33883-2276; 
telephone: (813) 299-4770, or FAX: (813) 299-5169; or Jim Wendland, 
Marketing Specialist, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, 
DC 20090-6456; telephone: (202) 720-2170, or FAX: (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 146 [7 CFR part 998] regulating the quality of 
domestically produced peanuts, hereinafter referred to as the 
agreement. This agreement is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended [7 U.S.C. 601-674], hereinafter 
referred to as the ``Act.''
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule. There are no administrative procedures which must be exhausted 
prior to any judicial challenge to the provisions of this rule.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
Service (AMS) has considered the economic impact of this action on 
small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened.
    There are about 75 handlers of peanuts subject to regulation under 
the agreement, and about 47,000 peanut producers in the 16 States 
covered under the program. Small agricultural service firms are defined 
by the Small Business Administration [13 CFR 121.601] as those having 
annual receipts of less than $5,000,000, and small agricultural 
producers have been defined as those having annual receipts of less 
than $500,000. Some of the handlers signatory to the agreement are 
small entities, and a majority of the producers may be classified as 
small entities.
    In 1993, the reported U.S. production, mostly covered under the 
agreement, was approximately 3.33 billion pounds of peanuts, a 22 
percent decrease from 1992 and the lowest level since 1983. The 
preliminary 1993 peanut crop value is $991.65 million, 77 percent of 
the 1992 crop value.
    The objective of the agreement, in place since 1965, is to ensure 
that only wholesome peanuts enter edible market channels. About 70 
percent of U.S. shellers (handlers), handling approximately 95 percent 
of the crop, have voluntarily signed the agreement. Under the 
agreement, farmers' stock peanuts with visible Aspergillus flavus mold 
(the principal source of aflatoxin) are required to be diverted to non-
edible uses. Each lot of milled peanuts must be sampled and the samples 
chemically analyzed for aflatoxin contamination. Signatory handlers who 
comply with these requirements may be eligible for indemnification of 
losses for individual lots of their peanuts which test positive to 
aflatoxin. Indemnification and administrative costs are paid by 
assessments levied on handlers signatory to the agreement.
    The Committee, which is composed of growers and handlers of 
peanuts, meets to review the rules and regulations effective on a 
continuous basis for peanuts regulated under the agreement. Committee 
meetings are open to the public, and interested persons may express 
their views at these meetings. The Department reviews Committee 
recommendations and information, as well as information from other 
sources, and determines whether modification, suspension, or 
termination of the rules and regulations would tend to effectuate the 
declared policy of the Act.
    The Committee met on March 15 and 16, 1994, and unanimously 
recommended clarifying changes to Sec. 998.100 Incoming quality 
regulation.
    Section 998.34 of the agreement provides authority for the 
modification of the incoming quality regulation by the Secretary of 
Agriculture, if the Secretary finds that such modification would tend 
to effectuate the objectives of the agreement.
    After considerable discussion, the Committee unanimously 
recommended amending paragraph (e) Seed peanuts of Sec. 998.100 to 
clarify that Segregation 2 seed peanuts meeting certain quality 
requirements may be stored and shelled with Segregation 1 seed peanut 
lots. Currently, paragraph (e) specifies that Segregation 3 seed peanut 
lots with visible Aspergillus flavus mold must be stored and shelled 
separate and apart from other peanuts. The regulation does not 
specifically state that Segregation 2 seed peanuts containing up to 
three percent damaged kernels and no visible Aspergillus flavus mold 
can be stored and shelled with Segregation 1 seed lots if the seed 
peanuts were produced under the auspices of a State agency. The 
Committee believes that the current provisions authorize such 
commingling but believe that the authority should be expressly stated 
to avoid confusion.
    The Committee noted that requiring Segregation 2 seed peanuts to be 
stored separately from Segregration 1 seed peanuts would increase the 
number of storage bins handlers needed to maintain separation. This 
would increase handler costs. It also noted that requiring the 
Segregation 2 seed peanuts to be shelled separate and apart from 
Segregation 1 seed peanuts would increase handler shelling costs with 
no apparent benefits.
    Therefore, the Committee recommended adding a sentence to paragraph 
(e) clarifying that seed peanut lots may be stored and shelled with 
Segregation 1 lots if: (1) The seed peanuts do not exceed 3 percent 
total damage and have no visible Aspergillus flavus mold; and (2) both 
the Segregation 2 seed peanut lot and the Segregation 1 seed peanut lot 
are produced under the auspices of a State agency which regulates or 
controls the production of seed peanuts.
    This rule also provides that the unchanged portions of the 
incoming, outgoing, and indemnification regulations currently in effect 
under the agreement for 1993 crop peanuts be established for 1994 and 
subsequent crop peanuts.
    Based on the above, the Administrator of the AMS has determined 
that this interim final rule will not have a significant economic 
impact on a substantial number of small entities.
    Written comments, timely received, in response to this action, will 
be considered before finalization of this rule.
    After consideration of all relevant matter presented, the 
information and recommendations submitted by the Committee, and other 
information, it is found that the revision set forth below will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined, upon 
good cause, that it is impracticable, unnecessary and contrary to the 
public interest to give preliminary notice prior to putting this rule 
into effect, and that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register because: (1) This action clarifies requirements 
currently in effect for peanut handlers who are signatory to the 
agreement; (2) this action should be in effect as soon as possible, 
because the 1994 crop year begins July 1, 1994, and handlers need to 
know regulations applicable to handling 1994 crop peanuts; and (3) this 
action provides a 30-day comment period, and any comments received will 
be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 998

    Marketing agreements, Peanuts, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 998 is 
amended as follows:

PART 998--MARKETING AGREEMENT REGULATING THE QUALITY OF 
DOMESTICALLY PRODUCED PEANUTS

    1. The authority citation for 7 CFR part 998 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. Section 998.100 is amended by revising the section heading and 
adding a new sentence at the end of paragraph (e)(2) to read as 
follows:


Sec. 998.100   Incoming quality regulation--1994 and subsequent crop 
peanuts.

* * * * *
    (e) * * *
    (2) * * * Seed peanuts, produced under the auspices of the State 
agency, which contain up to 3 percent damaged kernels and are free from 
visible Aspergillus flavus, may be stored and shelled with Segregation 
I seed peanuts which are also produced under the auspices of the State 
agency.
* * * * *
    3. Section 998.200 is amended by revising the section heading to 
read as follows:


Sec. 998.200   Outgoing quality regulation--1994 and subsequent crop 
peanuts.

    4. Section 998.300 is amended by revising the section heading to 
read as follows:


Sec. 998.300   Terms and conditions of indemnification--1994 and 
subsequent crop peanuts.

    Dated: July 11, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-17241 Filed 7-15-94; 8:45 am]
BILLING CODE 3410-02-P