[Federal Register Volume 69, Number 233 (Monday, December 6, 2004)]
[Rules and Regulations]
[Pages 70367-70368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-26828]


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DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560-AH13


Tobacco Loan Program--Removal of Requirement That Producers of 
Burley and Flue Cured Tobacco Designate Sales Locations

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Final rule.

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SUMMARY: This rule amends the regulations governing the tobacco price 
support program to remove the requirement that flue-cured tobacco 
farmers designate the auction warehouses where they will sell their 
tobacco and that burley tobacco farmers designate all locations where 
they will sell their tobacco. Currently price support is available only 
at designated auction warehouses on eligible tobacco.

DATES: Effective Date: December 3, 2004.

FOR FURTHER INFORMATION CONTACT: Ann Wortham, (202) 720-2715 or [email protected]. Tobacco Division (TD), Farm Service Agency, 
United States Department of Agriculture (USDA), STOP 0514, Room 5750-S, 
1400 Independence Avenue, SW., Washington, DC 20250-0514.

SUPPLEMENTARY INFORMATION:

Background

    The Farm Service Agency (FSA) published in the Federal Register, on 
June 22, 2004, (69 FR 34615) a proposed rule to rescind the price 
support eligibility provision that requires flue-cured and burley 
tobacco farmers to designate the locations where they will sell their 
tobacco. The proposed rule requested public comments, and the comment 
period ended on July 22, 2004. To the extent practicable, some comments 
that were received after that date were also considered.

Summary of Comments

    FSA received 368 comments on the proposed rule. Two respondents 
asked that no change be made in the current designation requirement. 
This request was considered, however, weighing the requests to maintain 
the existing program against the prevalence of comments requesting 
elimination of the program, as was proposed, weigh heavily in favor of 
changing the current requirements.
    Eighteen respondents asked that the designation program be 
eliminated entirely. Although FSA proposed rescinding the designation 
program in June when the Agency requested input from the public, the 
majority of the comments on the proposed rule did not favor total 
elimination of the program. In deference to the majority of the 
comments on the proposed rule, FSA will not entirely eliminate the 
designation program. Thus, the final rule still contains a limited 
designation requirement.
    Three hundred and forty three comments suggested adjustments to the 
timing of the designation requirements. Of these, 101 respondents asked 
only that the waiting period for re-designation be reduced to five days 
or less, 13 respondents asked that the designation program proceed as 
it is currently outlined, 209 respondents asked that both designation 
and subsequent re-designation requirements be made more simple. Two 
hundred and twenty two of these same commentors requested that 
designations be made immediately effective, and that designations be 
suspended and not necessary after the first week of tobacco sales. 
These comments and suggestions are addressed below.
    Twenty-five comments expressed concerns about the burley tobacco 
designation program. These respondents

[[Page 70368]]

asked that designations end on August 1 of the market year, followed by 
two re-designation periods at the beginning of October and November, 
and then immediately effective re-designations beginning on November 
25. These comments requested no other changes to the current 
requirements. These comments were not adopted for the reasons discussed 
below.
    The existing technology that the Agency uses for this program does 
not allow FSA to make designations immediately effective. Therefore, 
this suggestion will not be adopted.
    On October 22, 2004, the Fair and Equitable Tobacco Reform Act of 
2004 repealed the tobacco marketing quota and acreage allotment and 
price support programs effective for the 2005 and subsequent crop 
years. The designation program, part of these programs, will end with 
the close of the 2004 marketing year. Accordingly, this rule deletes 
the price support eligibility requirement that flue-cured and burley 
tobacco farmers designate the locations where they will sell their 
tobacco. The majority of the commentors wanted the designation program 
to remain unchanged through the first week of tobacco sales, a time 
period which has ended for both flue-cured and burley tobaccos. 
Rescinding the designation requirements effective December 3, 2004, 
will have the effect of complying with the majority of commentors' 
requests that designation and subsequent re-designation requirements 
not be necessary after the first week of sales. Tobacco producers will 
be able to sell their tobacco where they wish, without waiting for a 
designation to become effective through this final crop year of the 
tobacco quota and price support programs.

Executive Order 12372

    This final rule is not subject to the provisions of Executive Order 
12372, which require 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 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and therefore was not reviewed by the 
Office of Management and Budget.

Regulatory Flexibility Act

    The Regulatory Flexibility Act is not applicable to this proposed 
rule because USDA is not 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.

Unfunded Mandates

    This rule contains no Federal mandates under Title II of the 
Unfunded Mandates Reform Act of 1995 (UMRA) for State, local and tribal 
governments or the private sector. Therefore, this rule is not subject 
to sections 202 and 205 of the UMRA.

Federal Assistance Programs

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

Environmental Evaluation

    The environmental impacts of this rule have been considered under 
the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et 
seq., the regulations of the Council on Environmental Quality (40 CFR 
parts 1500-1508), and regulations of the Farm Service Agency (FSA) of 
the Department of Agriculture (USDA) for compliance with NEPA, 7 CFR 
part 799. An environmental evaluation was completed and the action has 
been determined not to have the potential to significantly impact the 
quality of the human environment and no environmental assessment or 
environmental impact statement is necessary. A copy of the 
environmental evaluation is available for inspection and review upon 
request.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
5501 et seq.), the information collection or recordkeeping requirements 
of 7 CFR part 1464 are approved by the Office of Management and Budget 
(OMB) under OMB control numbers 0560-0058 and 0560-0217. Also, section 
642(b) of FETRA provides these regulations be promulgated without 
regard to the Paperwork Reduction Act, nor be subject to the normal 
requirement for a 60-day public comment period. Nonetheless, this 
action will reduce the information collected and the Agency's currently 
approved burden, thus, a new burden estimate will be submitted to OMB 
for approval.

List of Subjects in 7 CFR Part 1464

    Price support programs, Tobacco, Warehouses.

0
Accordingly, 7 CFR part 1464 is amended as follows:

PART 1464--TOBACCO

0
1. The authority citation for 7 CFR part 1464 continues to read as 
follows:

    Authority: 7 U.S.C. 1421, 1423, 1441, 1445, 1445-1 and 1445-2; 
15 U.S.C. 714b, 714c; Pub. L. 106-78, 113 Stat. 1135; Pub. L. 106-
113, 113 Stat. 1501; Pub. L. 1087, 117 Stat. 11.

Subpart A--Tobacco Loan Program

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2. Amend 7 CFR 1464.2 by removing paragraph (b)(2) and redesignating 
paragraphs (b)(3), (b)(4) and (b)(5) as (b)(2), (b)(3), and (b)(4), 
respectively.

    Signed at Washington, DC, on November 19, 2004.
James R. Little,
Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 04-26828 Filed 12-2-04; 2:26 pm]
BILLING CODE 3410-05-P