[Federal Register Volume 63, Number 93 (Thursday, May 14, 1998)]
[Rules and Regulations]
[Pages 26713-26714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12860]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 93 / Thursday, May 14, 1998 / Rules 
and Regulations  

[[Page 26713]]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560-AF14


Special Combinations for Tobacco Allotments and Quotas

AGENCY: Farm Service Agency, USDA.

ACTION: Interim Rule and Technical Correction.

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SUMMARY: This notice corrects a reference contained in a final rule, 
published on February 24, 1998, (63 FR 9126) which amended the tobacco 
regulations. Also, to provide greater flexibility to tobacco farmers, 
this notice further amends the regulations to: allow for special farm 
combinations even where neither of the farms to be combined has a 
production flexibility contract (PFC) and to modify the consent 
requirements for the special combinations allowed under that section. 
In addition other corrections have been made to the regulation for 
purposes of clarity.

DATES: Effective: May 14, 1998. Comments must be received by July 13, 
1998, to be assured of consideration.

ADDRESSES: Submit comments on the interim rule to: Director, Tobacco 
and Peanuts Division, USDA, FSA, STOP 0514, 1400 Independence Avenue, 
SW, Washington, DC 20013-0514. Comments may be faxed to (202) 690-2298. 
All written submissions made pursuant to this rule will be made 
available for public inspection in Room 5750 of the South Building, 
USDA, between the hours of 8:15 a.m. and 4:45 p.m., during regular 
Federal workdays.

FOR FURTHER INFORMATION CONTACT: Joe Lewis, Jr., Agricultural Program 
Specialist, 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 interim 
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

    This interim rule has been reviewed in accordance with Executive 
Order 12988. The provisions of this interim rule are not retroactive 
and preempt State laws to the extent that such laws are inconsistent 
with the provisions of this interim 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 parts 780 
and 711, as applicable, must be exhausted.

Paperwork Reduction Act

    This interim 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). A FR notice with a 60-
day comment period for the information collections required in 7 CFR 
part 723 was published on September 25, 1997 (62 FR 50286). No comments 
were received. A request for revision and reinstatement has been 
submitted for approval.

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 might apply, that this rule 
should be effective immediately because the planting season for all 
kinds of tobacco began in early April and tobacco producers must make 
their final rotation and planting decisions. The nature of this interim 
rule and notice is to: (1) Correct a reference contained in a previous 
rule; (2) add greater flexibility for producers in combining farms for 
tobacco purposes only. As the rule simply provides for such flexibility 
and should not adversely affect anyone, it would be contrary to the 
public interest to delay the implementation date of the new 
regulations.

Background and Discussion

    The final rule published on February 24, 1998, (63 FR 9126), 
adopted and modified the interim rule published on April 2, 1997 (62 FR 
15599) which allowed, under Sec. 723.209, for special combinations of 
flue-cured tobacco allotments and quotas on participating and 
nonparticipating farms with PFCs. Though the regulations, as modified 
through the February 24 rule were correct, the preamble to the February 
24 publication incorrectly indicated that the special combinations 
allowed by that rule were limited to cases where the two farms being 
combined were owned by the same person. That was not the intention of 
the rule nor was such a limitation actually contained in the adopted 
regulations themselves. That erroneous reference in the February 24, 
1998, preamble is hereby corrected. In addition, this rule adopts 
clarifying language for Sec. 723.209 and further amends Sec. 723.209 so 
as to explicitly

[[Page 26714]]

allow special combinations even if no PFC farm is involved. This will 
permit variances from normal combination rules that would otherwise 
apply under 7 CFR part 718. Such variances will allow for greater 
flexibility to farmers with special needs as might arise for tobacco-
only combinations. There is a special need for farm combinations with 
respect to the tobacco program because it is one of the few programs 
with an existing farm-oriented poundage or quota system and because of 
limitations that exist with respect to the leasing of allotments and 
quotas. These special combinations allow for better farming practices, 
including crop rotation and mirror long-term practices in tobacco. The 
amendments to Sec. 723.209 would, in addition, provide explicitly that 
for all special combinations allowed under Sec. 723.209, the Deputy 
Administrator may waive consent requirements that would normally apply 
for combinations under the rules in 7 CFR part 718. Under the 7 CFR 
part 718 regulations, normally all of the owners and operators of both 
farms to be combined must consent to the combination. However, 
Sec. 723.209 deals with limited and temporary, perhaps frequent, 
combinations that can involve tobacco farms that have many owners as 
the farms have been passed down among several generations. Locating, 
and obtaining a verifiable consent from all of the owners of tobacco 
farms for each such transaction can be very difficult and is not 
purposeful given that the farm will be continuing its basic operation 
in a manner similar to the way it has operated in the past.

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, 7 CFR part 723 is 
amended as follows:

PART 723--[AMENDED]

    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. The heading for Sec. 723.209 is revised and paragraph (c) is 
revised to read as follows:


Sec. 723.209  Determination of acreage allotments, marketing quotas, 
yields for combined farms; and special tobacco combinations.

* * * * *
    (c) Special tobacco combinations. Notwithstanding other provision 
of this title, the Deputy Administrator may, upon proper application 
and to the extent deemed consistent with other obligations, permit 
farms, with respect to tobacco allotments and tobacco quotas, to be 
considered combined for purposes of this part and part 1464 of this 
title only without being combined for other purposes. This allowance 
shall apply for tobacco of all kinds and types and with respect to all 
farms even if one or more of the farms to be combined is the subject of 
a production flexibility contract (PFC) executed in connection with the 
program operated under the provisions of 7 CFR part 1412. Such special, 
limited combinations must otherwise meet the requirements of 7 CFR part 
718 for combinations, except the signature (consent) requirements of 
Sec. 718.201(a)(2) of that part. The Deputy Administrator may set such 
consent requirements for special farm combinations under this section 
as the Deputy Administrator believes necessary or appropriate. Further, 
in any case in which one of the farms is a PFC farm, none of the land 
on any PFC farm that would have been used for the production of tobacco 
can be used for the production of a ``PFC commodity'' as defined in 
this section. Such permission shall be conditioned upon the agreement 
of all interested parties that land on the PFC allotment or quota farm 
that would have been used for the production of tobacco shall not be 
used for the production of any PFC commodity. In the event that such 
production nonetheless occurs, the special tobacco combination may be 
made void, retroactive to the date of original approval. Such curative 
action will likely result in a finding of excess tobacco plantings and 
sanctions and remedies, which would likely include liability for 
penalties and other sanctions for excess marketings of tobacco. The 
Deputy Administrator may set such other conditions on the combinations 
as needed or deemed appropriate to serve the goals of the tobacco 
program and the goals of the PFC. The term PFC commodity for purposes 
of this section means wheat, corn, grain sorghum, barley, oats, upland 
cotton, and rice.
* * * * *
    Signed at Washington, DC, on May 8, 1998.
Bruce R. Weber,
Acting Administrator,
Farm Service Agency.
[FR Doc. 98-12860 Filed 5-13-98; 8:45 am]
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