[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Rules and Regulations]
[Pages 9126-9128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4560]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AE13


Special Combinations for Tobacco Allotments and Quotas

agency: Farm Service Agency, USDA.


[[Page 9127]]


action: Final rule.

-----------------------------------------------------------------------

summary: This final rule adopts with a modification the interim rule 
published in the Federal Register (62 FR 15599) on April 2, 1997. The 
interim rule provided for special combinations of flue-cured tobacco 
allotments and quotas on participating and nonparticipating farms with 
``production flexibility contracts'' (PFC) under the Agricultural 
Market Transition Act of 1996 (AMTA) and for, burley tobacco, an 
exemption to dropping the quota on divided farms with less than 1,000 
pounds if the farm meets the requirements for a farm combination. After 
further review of the rule and the comments, the regulations adopted in 
the interim rule have been modified to allow for other transfers of 
tobacco quota, for all tobacco types, between farms with the same owner 
in cases where a farm combination could otherwise be used to produce 
the desired result but is not available, as a practical matter, because 
of restrictions under the PFC program administered by the Department. 
The amended provisions permit such transfers to be approved without 
regard to restrictions for purchased quota that apply to transfers by 
lease or sale. Also, the interim rule has been modified to permit the 
agency to modify non-statutory deadlines for transfers and other 
requirements when special circumstances warrant such action.

effective date: February 24, 1998.

for further information contact: Joe Lewis Jr., Tobacco Branch, Tobacco 
and Peanuts Division, USDA, FSA, STOP 0514, 1400 Independence Avenue, 
SW., Washington, DC 20250-0514, telephone 202-720-0795.

supplementary information:

Executive Order 12866

    This rule has been determined to be not significant and therefore 
was not reviewed by OMB under Executive Order 12866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this final rule 
since the Farm Service Agency (FSA) is not required by 5 U.S.C. 553 or 
any other provision of law to publish a notice of proposed rule making 
with respect to the subject matter of this rule.

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.

Environmental Evaluation

    It has been determined by an environmental evaluation that this 
action will have no significant impact on the quality of the human 
environment. Therefore, neither an environmental assessment nor an 
environmental impact statement is needed.

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).

Executive Order 12988

    The final rule has been reviewed in accordance with Executive Order 
12988. The provisions of this final rule are not retroactive and 
preempt State laws to the extent that such laws are inconsistent with 
the provisions of this final rule. Before any legal action is brought 
regarding determinations made under provisions of 7 CFR part 723, the 
administrative appeal provisions set forth at 7 CFR part 780 and 7 CFR 
part 711, as applicable, must be exhausted.

Paperwork Reduction Act

    This final rule does not contain new or revised information 
collection requirements that require approval by OMB under the 
Paperwork Reduction Act (44 U.S.C. 3507 et seq.). The information 
collections required in 7 CFR part 723 have previously been cleared 
under OMB control number 0560-0058.

Effective Date of Rule

    It has been determined for purposes of all limitations that might 
apply, including any provisions of the Small Business Regulatory 
Enforcement Fairness Act of 1996, that this rule should be effective 
immediately. The interim rule (at 62 FR 15599, April 2, 1997) set forth 
the reasons that the rule should be effective immediately. The nature 
of the interim rule was to provide relief to flue-cured tobacco 
producers who were adversely affected by restriction on the combination 
of farms. Additional relief is provided in this final rule by allowing 
for other transfers of tobacco quota, for all tobacco types, between 
farms with the same owner in cases where a farm combination could 
otherwise be used to produce the desired result but is not available, 
as a practical matter, because of restrictions under the PFC program of 
the Department. As the rule simply provides additional flexibility to 
producers and should not have any material adverse effect on anyone, it 
has been determined that the full rule, including the modification, 
should be made effective immediately.

Discussion of Comments

    The interim rule (at 62 FR 15599, April 2, 1997) requested comments 
from interested parties. A total of three comments were received from 
the public; two from State level farm organizations, and one from a 
county level farm organization. All comments were supportive of the 
provisions relating to the special combinations of flue-cured tobacco 
allotments and quotas. These special combinations would avoid undue 
hardships on many flue-cured tobacco producers. It should be noted that 
the adopted rule allows for effective combinations of farms in cases 
where the combination could otherwise occur but for restrictions that 
may arise under the PFC program of the Department, as was indicated in 
the preamble of the interim rule. The adopted regulations do not 
override basic limitations on transfers. Thus, for example, the rule 
does not provide new authority for the transfer or effective movement 
of quota across county lines that otherwise would not be possible 
through a farm combination as the existing restrictions on such 
movements of quota are statutory. However, on further review it has 
been determined to otherwise expand the rule to provide authority to 
allow for effective combinations in all instances for tobaccos, as the 
need may arise, where the result sought would be obtained, otherwise, 
by a farm combination were it not for restrictions arising under the 
PFC program. This would, for example, allow for effective transfers of 
quota to be made between two burley farms with the same owner in 
instances in which the transfer would otherwise be prohibited under the 
rules because of there being a transfer to and from the transferring 
farm within the same three year period. Essentially, the modified rule 
would simply allow the farms to be considered to be the same farm for 
tobacco purposes just as they could have been in the past through a 
farm combination without having to treat those farms as being combined 
for PFC purposes as well. Protection for the PFC program will be 
provided in the manner specified in the interim rule through 
restrictions on using the land freed up by the transfer of quota. 
Specifically, that land will not be usable for the production of ``PFC 
commodities''--that is, commodities for which there is a potential 
eligibility for loans under the PFC program. To make this and other

[[Page 9128]]

clarifying changes, 7 CFR 723.209(c) as published in the interim rule 
is amended. In addition, with respect to restrictions relating to 
transfers in general, 7 CFR 723.103 is amended so that non-statutory 
deadlines and other requirements may be modified where circumstances 
warrant, such as in the case this year with the final deadline for 
marketing burley tobacco where that deadline has proven inopportune 
given weather and crop conditions this year. This additional 
flexibility should not have an adverse effect on anyone and should 
provide a greater opportunity to allow for relief in meritorious cases. 
Consequently, delaying implementation of that provision appears to be 
contrary to the public interest.

List of Subjects in 7 CFR Part 723

    Acreage allotments, Auction warehouses, Dealers, Domestic 
manufacturers, Marketing quotas, Penalties, Reconstitutions, Tobacco.

    For the reasons set forth in the preamble, the interim rule for 7 
CFR part 723 published on April 2, 1997 (62 FR 15599) is hereby adopted 
as a final rule with the following changes:

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, 11377-1379, 1421, 1445-1 and 1445-2.

    2. The heading for Sec. 723.209 is revised as set forth below.
    3. Paragraph (c) of 723.209 is amended as follows:
    (i) In the first sentence, ``quotas for flue-cured tobacco,'' is 
revised to read ``quotas'';
    (ii) In the third sentence, ``PFC flue-cured quota farm'' is 
revised to read ``PFC farm'';
    (iii) The fifth sentence is revised to read as follows:


Sec. 723.209  Determination of acreage allotments, marketing quotas, 
and yields for combined farms; special combinations for farms with 
production flexibility contracts.

* * * * *
    (c) * * * Such action could result in a farm being found to have 
had excess acreage devoted to tobacco or excess marketings of tobacco, 
in which case certain penalties, along with other sanctions as may be 
applicable, would apply. * * *
    4. Section 723.103(d) is amended by adding at the end a new 
sentence to read as follows:


Sec. 723.103  Administration

* * * * *
    (d) * * * Further, the Administrator or the Administrator's 
designee may modify any deadline or other provisions of this part to 
the extent that doing so is determined by such person to be appropriate 
and not inconsistent with the purposes of the program administered 
under this part.

    Signed at Washington, DC, on February 18, 1998.
Keith Kelly,
Administrator, Farm Service Agency.
[FR Doc. 98-4560 Filed 2-23-98; 8:45 am]
BILLING CODE 3410-05-M