[Federal Register Volume 65, Number 34 (Friday, February 18, 2000)]
[Rules and Regulations]
[Pages 8245-8247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3687]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 34 / Friday, February 18, 2000 / 
Rules and Regulations  

[[Page 8245]]



DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Parts 718 and 729

Commodity Credit Corporation

7 CFR Part 1446

RIN 0560-AF61


Amendments to Regulations Governing the Peanut Poundage Quota and 
Price Support Programs

AGENCIES: Farm Service Agency and Commodity Credit Corporation, USDA.

ACTION: Interim rule with request for comments.

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

SUMMARY: This rule amends regulations with respect to the following 
issues: Clarifying the definition of ``considered produced credit''; 
clarifying that the Director, Tobacco and Peanuts Division maintains 
and allocates a national peanut quota reserve rather than a State-by-
State reserve; adjusting the tolerance for certifying farm peanut 
acreage; clarifying that a farm which is ineligible to receive a quota 
allocation is also ineligible to receive an allocation of any increased 
quota and that any tenant on the farm is also ineligible to receive a 
tenant share of any increased quota; changing the provisions concerning 
the witnessing of signatures required for peanut quota transfers; 
clarifying that owner-to-owner permanent transfers are not restricted 
by the provision which otherwise prohibits an owner from permanently 
transferring quota from the farm if the quota was permanently 
transferred to the farm by sale of quota from another farm; allowing 
producers to receive separate marketing cards for contracts for 
Segregation 2 and Segregation 3 additional peanuts for crushing; and 
changing miscellaneous definitions and references to reflect U.S. 
Department of Agriculture and regulatory reorganization. The rule also 
makes a technical amendment to 7 CFR part 718 to reinstate compliance 
regulations that are applicable to tolerance for peanut acreage 
reported to be planted.
    This action is necessary to improve the administration of the 
peanut quota and price support programs.

DATES: Effective February 18, 2000. Comments received on or before 
March 20, 2000, are assured of consideration.

ADDRESSES: Submit comments on the interim rule to: Director, Tobacco 
and Peanuts Division, Farm Service Agency, U.S. Department of 
Agriculture, STOP 0514, 1400 Independence Avenue, SW, Washington, DC, 
20250-0514. The Director, Tobacco and Peanuts Division (TPD), will make 
all written submissions available for public inspection in Room 5750 
South Building, USDA, between the hours of 8:15 a.m. and 4:45 p.m., 
during regular Federal workdays.

FOR FURTHER INFORMATION CONTACT: David Kincannon, (202) 720-7914.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    For purposes of Executive Order 12866, this rule was determined to 
be not significant and was not reviewed by the Office of Management and 
Budget (OMB) under Executive Order 12866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this interim 
rule because neither the Farm Service Agency (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 matter of this rule.

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.

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.

Federal Assistance Program

    The title and number of the Federal Assistance Program, as found in 
the Catalog of Federal Domestic Assistance, to which this interim rule 
applies are: Commodity Loans and Purchases--10.051.

Executive Order 12372

    This program 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 rule has been reviewed in accordance with Executive Order 
12988. The provisions of this rule do not preempt State laws except to 
the extent that such laws are inconsistent with the provisions of this 
rule. Before any legal action may be brought regarding determinations 
of this rule, the administrative appeal provisions set forth at 7 CFR 
part 780 must be exhausted.

National Appeals Division Rules of Procedure

    The procedures set out in 7 CFR parts 11 and 780 apply to appeals 
of adverse decisions made under the regulations adopted in this notice.

Paperwork Reduction Act

    The information reporting requirements contained in the regulations 
at 7 CFR parts 729 and 1446 include OMB Control Numbers 0560-0006 and 
0560-0014 assigned by OMB. The 0560-0006 collection requirements have 
been approved by OMB and the 0560-0014 collection requirements have 
been forwarded for approval. The provisions of this rule do not impose 
new reporting requirements or changes in existing information 
collection requirements.

Background

1. Part 718

    This rule amends regulations at 7 CFR part 718 to reinstate a 
tolerance rule for peanuts that was erroneously omitted when this part 
was revised in 1996 to implement the provisions of the Federal

[[Page 8246]]

Agriculture Improvement and Reform Act of 1996.

2. Part 729

    This rule addresses amendments to the peanut poundage quota 
regulations at 7 CFR part 729 regarding the following issues:
    Clarifying the definition of considered produced credit. This rule 
clarifies in Sec. 729.103 the definition of ``considered produced 
credit.'' The current regulatory language could be interpreted to infer 
that if considered produced credit was granted for one criterion, no 
other criterion would apply. The change corrects this potential 
misinterpretation.
    National quota reserve. In Secs. 729.202 and 729.208(b), this rule 
clarifies that the Director, Tobacco and Peanuts Division, will hold 
and allocate the national quota reserve. Historically, each State held 
a quota reserve which the State FSA office could allocate to correct 
errors. The current regulations require that FSA hold a national quota 
reserve but do not specify who will be responsible for holding the 
reserve and for allocating the reserve when deemed appropriate. Also, 
the reference to ``State reserve'' in Sec. 729.208, which provides for 
allocating quota for experimental and research purposes, is eliminated 
so that this reserve may be better monitored and allocated for greater 
flexibility and consistency.
    Adjusting the tolerance for certification of peanut acreage for 
calculating temporary seed quota (TSQ) allocation. This rule changes 
the reporting tolerance in Sec. 729.204(e) for certification of acres 
planted to peanuts. The reported acreage is used in Sec. 729.204(e) to 
determine the amount of TSQ allocated to the farm. This change provides 
a less restrictive reporting tolerance. Under the current regulations, 
if the certified acreage on which the temporary seed quota allocation 
is made is greater than the acreage FSA determines was planted to 
peanuts by more than the smaller of 2 percent of the certified acreage 
or 5 acres, the producer is subject to a penalty assessment. The new 
tolerance would be the larger of 1.0 acre or 5 percent of the certified 
acreage, but not to exceed 10 acres. The new tolerance will provide a 
fairer line of demarcation between those certification errors which are 
inadvertent and those that are not. Intentional mis-certifications can 
be actionable even if committed within the tolerance but those errors 
within the tolerance will be presumed inadvertent. Adjustments were 
also made to Sec. 729.305 so that the penalties for false certification 
could be addressed more clearly.
    Tenants sharing in an increased quota. Under the provisions of the 
regulations, a farm owned by a municipality or a person who is not a 
peanut producer and is not a resident of the State in which the quota 
is allocated is ineligible to receive a quota allocation. This rule, by 
amendment to Sec. 729.207, clarifies where a farm is ineligible to 
receive a quota allocation, that the farm is ineligible to receive 
increased quota allocation and any tenants on the farm are also 
ineligible to receive increased quota allocation.
    Witnessing of signatures required to transfer quota. This rule 
amends Sec. 729.214(b)(4) to specify that FSA county office personnel 
must witness both signatures for transfers requiring the signature of 
both the operator and owner on the transferring farm.
    Transfer of quota by sale, lease, owner, or operator. This rule 
changes restrictions on owner transfers in Sec. 729.214(f)(3) that 
prevent a permanent transfer of peanut quota from a farm if the quota 
was transferred to the farm during the 3 years preceding the current 
year. Under the amended provision, the FSA county committee may approve 
permanent transfer of quota from a farm that includes quota that was 
transferred to the farm by an owner-to-owner permanent transfer even 
during the 3-year base period. The provision in Sec. 729.214(f)(3) is 
designed to discourage brokerage which is not implicated in owner-to-
owner transfers.
    References to other CFR parts. In Sec. 729.103, the reference to 
part 704 in paragraph (v) of the definition of ``Considered produced 
credit'' is amended to reflect that provisions formerly in 7 CFR part 
704 for the Conservation Reserve Program are now found in 7 CFR part 
1410.
3. Part 1446
    Definitions and references. In the definitions in Sec. 1446.103, 
other references to CFR parts that have been deleted or incorporated 
into other CFR parts are deleted or corrected to reflect the proper 
references. Also, to reflect Departmental reorganization, the title of 
the Deputy Administrator responsible for the administration of the 
regulations at 7 CFR part 1446 was changed in the same section from 
``Deputy Administrator, State and County Operations'' (DASCO) to 
``Deputy Administrator for Farm Programs'' (DAFP).
    Also, the term ``ASCS'' is changed to read ``FSA'' in each place it 
appears in part 1446 to reflect the reorganization of the Department. 
Likewise, in Sec. 1446.801, the acronym ``ASC'' is removed and the 
acronym ``FSA'' is added in its place. That change in acronyms also 
reflects the reorganization of the Agriculture Stabilization and 
Conservation Service into the Farm Service Agency.
    Immediate buyback restriction. The provisions of Sec. 1446.309 
provide that a producer may not market peanuts through the ``buyback'' 
provisions of the regulations until all peanuts of the same type 
contracted for export or crushing are delivered under the terms of the 
contract. Under the buyback provisions, ``additional'' peanuts can be 
purchased out of the loan inventory at quota peanut prices to be used 
like quota peanuts. This rule modifies the buyback provision to 
prohibit a buyback of additional peanuts only if the producer has a 
contract for export or crushing of the same type and segregation. This 
action gives producers and handlers greater marketing flexibility and 
reflects that different segregations can have distinct contracts and 
markets.
    Because these amendments are technical in nature and provide 
greater flexibility to producers and handlers without harm to third 
parties and because of the approach of the next marketing year, we have 
determined that this rule should be issued as an interim as a delay in 
implementation would be, for the reasons given, impracticable and 
contrary to the public interest.

List of Subjects

7 CFR Part 718

    Acreage allotments, Loan programs--agriculture, Marketing quotas, 
Price support programs, Reporting and recordkeeping requirements.

7 CFR Part 729

    Peanuts, Penalties, Poundage quotas, Reporting and Recordkeeping 
Requirements.

7 CFR Part 1446

    Loan programs--agriculture, Peanuts, Price support programs. 
Reporting and recordkeeping requirements, Warehouses.

    Accordingly, for the reasons set forth in the preamble, 7 CFR parts 
718, 729 and 1446 are amended as set forth below.

PART 718--PROVISIONS APPLICABLE TO MULTIPLE PROGRAMS

    1. The authority citation for part 718 continues to read as 
follows:

    Authority: 7 U.S.C. 1373, 1374, 7201 et seq.; 15 U.S.C. 714b and 
714c; and 21 U.S.C. 889.

    2. Section 718.105 is amended by revising the section heading, 
adding a

[[Page 8247]]

new sentence at the beginning of paragraph (a), and adding paragraph 
(e) to read as follows:


Sec. 718.105  Tolerances, variances, and adjustments for tobacco and 
peanuts.

    (a) Tolerance or variance for tobacco and peanuts is the amount by 
which the determined acreage may differ from the reported acreage or 
allotment and still be considered in compliance with program 
requirements. * * *
* * * * *
    (e) Tolerance for peanuts is the larger of 1.0 acre or 5 percent of 
the reported acreage, not to exceed 10.0 acres.

PART 729--PEANUTS

    3. The authority citation for part 729 is revised to read as 
follows:

    Authority:  7 U.S.C. 1301,1357 et. seq., 1372, 1373, 1375; 7 
U.S.C. 7271; and 15 U.S.C. 714b and 714c.

    4. The definition of ``Considered produced credit'' in Sec. 729.103 
is amended by:
    (a) Adding the phrase ``one or more of the following as may apply'' 
after the phrase ``the amount of'' and before the colon in the 
introductory sentence.
    (b) Removing ``704'' and adding ``1410'' in its place and removing 
the word ``chapter'' and adding the word ``title'' in its place in 
paragraph (v).

    5. Section 729.202 is revised to read as follows:


Sec. 729.202  Reserve for corrections.

    The Director, TPD, will hold a national reserve for purposes of 
correcting errors that are made in determining farm quotas. The 
Director will determine the reserve annually by multiplying the 
national quota announced by the Secretary by 0.0025. To the extent 
determined appropriate, the Director may authorize a State committee to 
correct any error in a farm's quota.

    6. Paragraph (e) of Sec. 729.204 is amended by revising the first 
sentence to read as follows:


Sec. 729.204  Temporary seed quota allocation.

* * * * *
    (e) Penalty for erroneous certification. If the certified acreage 
on which the temporary seed quota allocation is made is greater than 
the determined acreage, by more than the larger of 1 acre or 5 percent 
of the certified acreage not to exceed 10 acres, and the producer 
marketed the production for the acreage based upon an allocation of 
temporary seed quota on certified acres not determined, a penalty will 
be determined by multiplying the difference between the certified and 
determined acreage times the applicable per acre seeding rate times 140 
percent of the per pound quota support rate for the applicable crop 
year. * * *

    7. Paragraph (a) of Sec. 729.207 is amended by adding a new 
sentence at the end of the paragraph to read as follows:


Sec. 729.207  Tenants sharing in increased quota.

    (a) General. * * * Farms ineligible for quota allocation under 
Sec. 729.205 do not receive a quota increase; therefore, the provisions 
of this section with respect to tenant share are not applicable to such 
farms.
* * * * *


Sec. 729.208  [Amended]

    8. Paragraph (b) of Sec. 729.208 is amended by removing the phrase 
``State reserve'' and adding the phrase ``national reserve'' in its 
place.


Sec. 729.214  [Amended]

    9. Section 729.214 is amended:
    (a) In paragraph (b)(4) by removing the comma after the first 
occurrence of the word ``witness'' and adding with a period and 
removing the remainder of the first sentence.
    (b) In paragraph (f)(3)(i) by adding the phrase ``by sale'' to 
follow the word ``quota'' in the heading and by removing the phrase 
``or otherwise'' and adding in its place the word ``and'' in the text.

    10. Paragraph(b) of Sec. 729.305 is amended by adding a new 
sentence at the end of the paragraph to read as follows:


Sec. 729.305  Peanuts on which penalties are due and refund of excess 
penalty collected.

* * * * *
    (b) * * * In addition, in the case of a false certification, the 
sanctions provided for in Sec. 729.204(e) shall apply except to the 
extent that it may be determined by the Deputy Administrator that a 
second assessment would be unduly redundant.
* * * * *

PART 1446--PEANUTS

    11. The authority citation continues to read as follows:

    Authority: 7 U.S.C. 7271; 15 U.S.C. 714b and 714c.

    12. 7 CFR part 1446 is amended by removing the term ``ASCS'' in 
each occurrence in the regulations and adding the term ``FSA'' in its 
place.

    13. Section 1446.103 is amended by:
    (a) Adding ``1400'' in its proper numerical order, removing 
``1498'', and moving the first occurrence of ``and'' to its proper 
grammatical place in the series of numbers in the first sentence of the 
introductory paragraph.
    (b) Removing the definition of ``DASCO'' and adding in its proper 
alphabetical order the definition
* * * * *
    DAFP. The Deputy Administrator for Farm Programs, FSA.
* * * * *
    (c) Removing ``1498'' and adding ``1400''in its place in paragraph 
(3)(iii) of the definition of ``Eligible producer.''

    14. Paragraph (a)(7) of Sec. 1446.309 is amended by removing the 
word ``type'' in each occurrence and adding the term ``type or 
Segregation'' in its place.

    15. Paragraph (b)(2) of Sec. 1446.801 is amended by removing the 
acronym ``ASC'' in the second sentence of the introductory paragraph 
and adding the acronym ``FSA'' in its place.

    Signed at Washington, D.C., on February 10, 2000.
Parks Shackelford,
Acting Administrator, Farm Service Agency and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 00-3687 Filed 2-17-00; 8:45 am]
BILLING CODE 3410-05-P