[Federal Register Volume 63, Number 227 (Wednesday, November 25, 1998)]
[Proposed Rules]
[Pages 65133-65134]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31563]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 63, No. 227 / Wednesday, November 25, 1998 / 
Proposed Rules  

[[Page 65133]]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 729

RIN 0560-AF48


1999-Crop Peanut National Poundage Quota for Quota Peanuts

AGENCY: Farm Service Agency, USDA.

ACTION: Proposed rule.

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SUMMARY: The Agricultural Adjustment Act of 1938, (the 1938 Act) as 
amended, requires that the national peanut poundage quota for the 1999 
crop be announced by December 15, 1998. This proposed rule suggests a 
national poundage quota figure in the range between 1,175,000 short 
tons (st) and 1,225,000 st.

DATES: Comments must be received by December 8, 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: Kenneth M. Robison, Tobacco and 
Peanuts Division, FSA, USDA, STOP 0514, 1400 Independence Avenue, S.W., 
Washington, DC 20250-0514, telephone 202-720-9255. Copies of the cost-
benefit assessment prepared for the rule can be obtained from Mr. 
Robison.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This proposed rule has been determined to be significant for 
purposes of Executive Order 12866 and, therefore, has been reviewed by 
OMB.

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.

Executive Order 12998

    This proposed 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 the Farm Service Agency 
(FSA) nor Commodity Credit Corporation (CCC) are 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

    This proposed amendment does 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 proposed rule contains no Federal mandates under the 
regulatory provisions of Title II of the Unfunded Mandate Reform Act 
(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

    This proposed rule would amend 7 CFR part 729 to set forth the 
1999-crop peanut national poundage quota.

Determination of the Quota

    Peanut producers voting in a mail referendum December 1 through 4, 
1997, approved poundage quotas for the 1998 through 2002 marketing 
years (MY) by an affirmative vote of 94.8 percent. Therefore, as 
provided for in the 1938 Act, the Secretary is required to administer a 
peanut program in which marketings are governed through the use of 
federally-granted quota and in which price support is offered.
    Section 358-1(a)(1) of the 1938 Act, as amended by the Federal 
Agricultural Improvement and Reform Act of 1996 (the 1996 Act), 
requires that the national poundage quota for peanuts for each of the 
1996 through 2002 MYs be established by the Secretary at a level that 
is equal to the quantity of peanuts (in tons) that the Secretary 
estimates will be devoted in each MY to domestic edible use (excluding 
seed use) and related uses. Under the 1996 amendments to the 1938 Act, 
seed use remains a quota use but, unlike in the past, the seed aspect 
of the quota is accounted for through the grant of a temporary seed 
quota to all producers--hence, seed is no longer part of the basic 
quota calculation which will be codified through this determination. 
The MY for 1999-crop peanuts runs from August 1, 1999, through July 31, 
2000.
    The national poundage quota for MY 1998 was set at 1,167,000 st. 
This rule proposes that the national poundage quota for MY 1999 be set 
between 1,175,000 st and 1,225,000 st based on the following data:

  Estimated Domestic Edible, Excluding Seed, and Related Uses for 1999-
   Crop Peanuts With Marketing Levels of 98.4 Percent and 94.4 Percent
------------------------------------------------------------------------
                                                 Farmer Stock Equivalent
                                               -------------------------
                                                      (Short tons)
                     Item                      -------------------------
                                                  98.4% of     94.4% of
                                                   Quota        Quota
                                                  Marketed     Marketed
------------------------------------------------------------------------
Regular domestic food use.....................      984,000      984,000
Related uses:
  Crushing residual...........................      128,500      128,500
  Shrinkage and other losses..................       44,000       44,000
Unused quota..................................       18,500       68,500
    Totals....................................    1,175,000    1,225,000
------------------------------------------------------------------------

    The estimate of 1999 domestic food use was developed in two steps. 
First, normal commercial use was estimated based upon figures from the 
USDA Interagency Commodity Estimates Committee (ICEC) adjusted to take 
out peanut imports, peanut butter imports, and peanut butter exports 
(which are normally comprised of additional peanuts only). Then, farm 
sales and other direct marketings to consumers

[[Page 65134]]

were added based upon differences between production data and Federal-
State Inspection Service inspection data. Insofar as related uses are 
concerned, an added allowance is made for the normal crushing residual 
that cannot effectively be used for food use and that amount has 
traditionally been expected to be about 12 percent, on a farmer stock 
basis, of the total of MY domestic production. An allowance for 
shrinkage and other losses is made to account for reduced kernel and 
other kernel losses during storage, using the customary factor of 4 
percent of domestic food use. In addition, disaster transfers of poor 
quality peanuts are included as part of other losses. Finally the 
unused quota allowance goes to those instances where the farmer cannot 
fulfill a quota either because of under-planting or because the farmer 
is unable to produce enough Segregation 1 peanuts to fulfill the full 
quota. Because of the program changes in the 1996 Act, which have been 
outlined in previous notices, there is now a greater incentive than in 
the past to fully market the quota and it is expected that, after 
discounting for quality problems, somewhere between 94.4 percent and 
98.4 percent of the quota will be marketed.
    In MY 1996 about 97.3 percent was marketed, in MY 1997 about 99.7 
percent of quota was marketed and for MY 1998 between 94 and 98 percent 
of the quota is anticipated to be marketed. Also, it is anticipated 
that between 94.4 and 98.4 percent of the MY 1999 quota will be 
marketed.
    The proposed 1999 quota range, as set forth above, reflects 
expected growth in domestic consumption of peanut products through 
government purchases, new uses and a small increase in demand resulting 
from lower peanut support prices in recent years. Overall demand, 
including imports, is projected to increase about 2 percent. However, 
government support purchases in MY 1997 have increased about 15 percent 
from 28,516 st in MY 1996 to 32,799 st in MY 1997.

List of Subjects in 7 CFR Part 729

    Peanuts, Penalties, Poundage quotas, Reporting and recordkeeping 
requirements.
    Accordingly, it is proposed that 7 CFR parts 729 be amended as 
follows:

PART 729--PEANUTS

    1. The authority citation for 7 CFR part 729 shall continue to read 
as follows:

    Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375, and 
7271.

    2. Section 729.216 paragraph (c) is revised to read as follows:


Sec. 729.216  National poundage quota.

* * * * *
    (c) Quota determination for individual marketing years:
    (1) The national poundage quota (excluding seed) for quota peanuts 
for marketing year 1996 is 1,100,000 short tons.
    (2) The national poundage quota (excluding seed) for quota peanuts 
for marketing year 1997 is 1,133,000 short tons.
    (3) The national poundage quota (excluding seed) for quota peanuts 
for marketing year 1998 is 1,167,000 short tons.
    (4) The national poundage quota (excluding seed) for quota peanuts 
for marketing year 1999 will be set between 1,175,000 and 1,225,000 
short tons.

    Signed at Washington, DC, on November 20, 1998.
Parks Shackelford,
Acting Administrator, Farm Service Agency.
[FR Doc. 98-31563 Filed 11-20-98; 4:37 pm]
BILLING CODE 3410-05-P