[Federal Register Volume 63, Number 21 (Monday, February 2, 1998)]
[Proposed Rules]
[Pages 5285-5287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2578]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AF20


National Marketing Quotas for Fire-Cured (Type 21), Fire-Cured 
(Types 22-23), Maryland (Type 32), Dark Air-Cured (Types 35-36), 
Virginia Sun-Cured (Type 37), Cigar Filler (Type 41), Cigar-Filler and 
Binder (Types 42-44 and 53-55), and Cigar-Binder (Types 51-52) Tobaccos

AGENCY: Farm Service Agency, USDA.


[[Page 5286]]


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, 1998, for referenda purposes, national marketing 
quotas for Maryland (type 32), Virginia sun-cured (type 37), cigar 
filler (type 41), and cigar-binder (types 51-52) tobacco for the 1998-
99, 1999-2000 and 2000-2001 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), Maryland (type 32), dark air-cured 
(types 35-36), Virginia sun-cured (type 37), cigar-filler (type 41), 
cigar-filler and binder (types 42-44 and 53-55), and cigar-binder 
(types 51-52) kinds of tobacco for the 1998-99 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 February 13, 1998, 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.

SUPPLEMENTARY 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 
12998. 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 1998-
crop marketing quotas for these eight kinds of tobacco.
    Section 312(b) of the Act, provides that the Secretary shall 
determine and announce, not later than March 1, 1998, 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 1998 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 Maryland 
(type 32), Virginia sun-cured (type 37), Pennsylvania filler (type 41), 
and cigar binder (types 51-52) the Secretary must conduct referenda of 
farmers engaged in the 1997 production of each kind of tobacco to 
determine whether they favor or oppose marketing quotas for MYs 1998, 
1999 and 2000. These referenda are required because by kind, MY 1997 is 
the last year of the three consecutive MYs for which marketing quotas 
previously proclaimed will be in effect or because marketing quotas 
previously proclaimed were disapproved by producers in referenda held 
in 1995.
    The Secretary will proclaim the results of the referenda. As 
provided in the Act, if more than one-third of the farmers voting in a 
referendum for a 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 
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.
    Producers of three kinds of tobacco--Maryland (type 32), cigar 
filler (type 41), and cigar binder (types 51-52) are expected to reject 
marketing quotas. Accordingly, for these kinds this announcement will 
likely not be codified.
    For the other five kinds--Virginia 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; 53-55) tobaccos supply 
and demand are in balance. Thus, changes in 1998 marketing quotas, if 
any, will likely be small.

Request for Comments

    This rule proposes to amend 7 CFR part 723, subpart A to include 
1998-crop national marketing quotas for fire-cured (type 21), fire-
cured (types 22-23), Maryland (type 32), dark-air cured (types 35-36), 
Virginia sun-cured (type 37), cigar-filler (type 41), cigar-filler and 
binder (types 42-44 and 53-55) and cigar binder (types 51-52) tobaccos. 
These eight kinds of tobacco account for about 5 percent of total U.S. 
tobacco production.

[[Page 5287]]

    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 1998-crop national marketing 
quota for fire-cured (type 21) tobacco will range from 2.4 to 3.0 
million pounds. This range reflects the assumption that the national 
acreage factor will range from 1.0 to 1.2.
    (2) Fire-Cured (Types 22-23) Tobacco. The 1998-crop national 
marketing quota for fire-cured (types 22-23) tobacco will range from 
43.0 to 47.0 million pounds. This range reflects the assumption that 
the national acreage factor will range from 1.0 to 1.1.
    (3) Dark Air-Cured (Types 35-36) Tobacco. The 1998-crop national 
marketing quota for dark air-cured (types 35-36) tobacco will range 
from 10.0 to 11.0 million pounds. This range reflects the assumption 
that the national acreage factor will range from 1.0 to 1.1.
    (4) Virginia Sun-Cured (Type 37) Tobacco. The 1998-crop national 
marketing quota for Virginia sun-cured (type 37) tobacco will range 
from 150,000 to 165,000 pounds. This range reflects the assumption that 
the national acreage factor will range from 1.0 to 1.1.
    (5) Cigar-Filler and Binder (Types 42-44 and 53-55) Tobacco. The 
1998-crop national marketing quota for cigar-filler and binder (types 
42-44 and 53-55) tobaccos will range from 8.0 to 8.8 million pounds. 
This range reflects the assumption that the national acreage factor 
will range from 1.0 to 1.1.
    (6) Maryland (Type 32) Tobacco. The national acreage factor for the 
1998 MY will be 1.0 and the national marketing quota will be 
approximately 6.0 million pounds.
    (7) Pennsylvania Filler (Type 41) Tobacco. The national acreage 
factor for the 1998 MY will be 1.0 and the national marketing quota 
will be approximately 1.4 million pounds.
    (8) Cigar-Binder (Types 51-52) Tobacco. The national acreage factor 
for the 1998 MY will be 1.0 and the national marketing quota will be 
approximately 700,000 pounds.
    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 (f) to read as 
follows:


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

* * * * *
    (f) The 1998-crop national marketing quota will range from 2.4 
million pounds to 3.0 million pounds.
    3. Section 723.114 is amended by adding paragraph (f) to read as 
follows:


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

* * * * *
    (f) The 1998-crop national marketing quota will range from 43.0 
million pounds to 47.0 million pounds.
    4. Section 723.115 is amended by adding paragraph (f) to read as 
follows:


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

* * * * *
    (f) The 1998-crop national marketing quota will range from 10.0 
million pounds to 11.0 million pounds.
    5. Section 723.116 is amended by adding paragraph (f) to read as 
follows:
* * * * *


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

* * * * *
    (f) The 1998-crop national marketing quota will range from 150,000 
to 165,000 pounds.
    6. Section 723.117 is amended by adding paragraph (f) to read as 
follows:


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

* * * * *
    (f) The 1998-crop national marketing quota will range from 8.0 
million pounds to 8.8 million pounds.
    7. Section 723.119 is added (a) to read as follows:


Sec. 723.119  Maryland (type 32) tobacco.

    (a) The 1998-crop national marketing quota will range between 5.0 
million pounds to 7.0 million pounds.
    (b) [Reserved]
    8. Section 723.120 is added (a) to read as follows:


Sec. 723.120  Pennsylvania filler (type 41) tobacco.

    (a) The 1998-crop national marketing quota will range between 1.3 
million pounds to 1.5 million pounds.
    (b) [Reserved]
    9. Section 723.121 is added (a) to read as follows:


Sec. 723.121  Cigar binder (type 51-52) tobacco.

    (a) The 1998-crop national marketing quota will range from 600,000 
pounds to 1.0 million pounds.
    (b) [Reserved]

    Signed at Washington, DC on January 28, 1998.
Keith Kelly,
Administrator, Farm Service Agency.
[FR Doc. 98-2578 Filed 1-29-98; 11:52 am]
BILLING CODE 3410-05-P