[Federal Register Volume 59, Number 176 (Tuesday, September 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22615]
[[Page Unknown]]
[Federal Register: September 13, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 998
[Docket No. FV94-998-2FIR]
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: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
that 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. 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 will be
established for 1994 and subsequent crop peanuts.
EFFECTIVE DATE: September 13, 1994.
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 final 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 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 will 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.
Therefore, the Administrator of the AMS has determined that this
action will not have a significant economic impact on a substantial
number of small entities.
After consideration of all relevant matter presented, the
information and recommendations submitted by the Committee, and other
information, it is found that finalizing the interim final rule,
without change, as published in the Federal Register on July 18, 1994,
[59 FR 36353] will tend to effectuate the declared policy of the Act.
That rule provided that interested persons could file comments through
August 17, 1994. No comments were received.
It is further found that good cause exists for not postponing the
effective date of this action until 30 days after publication in the
Federal Register (5 U.S.C. 553) because: (1) This action clarifies
requirements currently in effect for peanut handlers who are signatory
to the agreement; and (2) the interim final rule provided that
interested persons could file comments through August 17, 1994. No
comments were received and the Department is adopting a final rule,
without change, the provisions of the interim final 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
Accordingly, the interim final rule amending 7 CFR part 998 which
was published at 59 FR 36353 on July 18, 1994, is adopted as a final
rule without change.
Dated: September 8, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-22615 Filed 9-12-94; 8:45 am]
BILLING CODE 3410-02-P