[Federal Register Volume 71, Number 117 (Monday, June 19, 2006)]
[Rules and Regulations]
[Pages 35145-35146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9536]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1216

[Docket No. FV-05-701-FR]


Amendment to the Peanut Promotion, Research, and Information 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule to bring the sections of 
the Peanut Promotion, Research and Information Order (Order), into 
conformity with changes that have occurred since the implementation of 
the Order with regard to the collection of assessments. This order is 
issued under the authority of the Commodity Promotion, Research and 
Information Act of 1996. This rule continues in effect changes to the 
Order provisions on assessments and the deletion of a number of 
obsolete definitions.

DATES: Effective July 19, 2006.

FOR FURTHER INFORMATION CONTACT: Deborah S. Simmons, Research and 
Promotion Branch, Fruit and Vegetable Programs, AMS, USDA, Stop 0244, 
1400 Independence Avenue, SW., Room 2535 South Building, Washington, DC 
20250-0244; telephone (202) 720-9915 or fax (202) 205-2800.

SUPPLEMENTARY INFORMATION: This rule is issued under the Peanut 
Promotion, Research and Information Order (7 CFR part 1216) as amended, 
to bring the provisions of the Peanut Promotion, Research and 
Information Order, into conformity with changes that have occurred 
since the implementation of the Order with regard to the collection of 
assessments, and deletion of a number of obsolete definitions, 
hereinafter referred to as the ``Order.'' The Order is effective under 
the Commodity Promotion, Research, and Information Act of 1996 (Act) (7 
U.S.C. 7401-7425), hereinafter referred to as the ``Act.''

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
Section 524 of the Act provides that the Act shall not affect or 
preempt any State or local laws authorizing promotion or research 
relating to an agricultural commodity.
    Under section 519 of the Act, a person subject to the Order may 
file a petition with the Secretary of Agriculture (Secretary) stating 
that the Order, any provision of the Order, or any obligation imposed 
in connection with the Order, is not established in accordance with the 
law, and requesting a modification of the Order or an exemption from 
the Order. Any petition filed challenging the Order, any provision of 
the Order, or any obligation imposed in connection with the Order, 
shall be filed within two years after the effective date of the Order, 
provision, or obligation subject to challenge in the petition. The 
petitioner will have the opportunity for a hearing on the petition. 
Thereafter, the Secretary will issue a ruling on a petition. The Act 
provides that the district court of the United States for any district 
in which the petitioner resides or conducts business shall have the 
jurisdiction to review a final ruling on the petition, if the 
petitioner files a complaint for that purpose not later than 20 days 
after the date of the entry of the Secretary's final ruling.
    This rule continues in effect changes to the Order to bring the 
provisions of the Peanut Promotion, Research and Information Order, 
into conformity with changes that have occurred since the 
implementation of the Order with regard to the collection of 
assessments. This order is issued under the authority of the Commodity 
Promotion, Research and Information Act of 1996. This rule also 
continues in effect changes to the Order for the deletion of a number 
of obsolete definitions.

Executive Order 12866

    The Office of Management and Budget (OMB) has waived the review 
process required by Executive Order 12866 for this action.

Regulatory Flexibility Act and Paperwork Reduction Act

    In accordance with the Regulatory Flexibility Act (RFA) [5 U.S.C. 
601 et seq.], the Agency has examined the impact of this rule on small 
entities. The purpose of the RFA is to fit regulatory actions to the 
scale of businesses subject to such actions so that small businesses 
will not be disproportionately burdened.
    There are approximately 13,000 producers and 57 first handlers of 
peanuts subject to the program. Most of the producers would be 
classified as small businesses under the criteria established by the 
Small Business Administration (SBA) [13 CFR 121.201]. Most first 
handlers would not be classified as small businesses. The SBA defines 
small agricultural handlers as those whose annual receipts are less 
than $6 million, and small agricultural producers are defined as those 
having annual receipts of not more than $500,000 annually.
    A number of changes have occurred to Farm Service Agency loan 
programs for peanuts since the 2002 Farm Bill. In view of this, and 
taking into account alternatives, several provisions of the Order 
needed to be updated. This final rule modifies Section 1216.51 of the 
Order which deals with the collection process for assessments including 
peanuts placed under marketing assistance loans. For loan peanuts, the

[[Page 35146]]

Commodity Credit Corporation will deduct and remit to the Board 
assessments deducted from the proceeds of the loan. Producers are also 
required to pay assessments directly to the Board in certain 
circumstances.
    This rule, however, does not alter the amount of the assessment or 
the obligation of producers of peanuts to pay the assessment.
    Additional changes are made to amend definitions and delete 
definitions that are no longer needed. Accordingly, Sec.  1216.2 
concerning additional peanuts, Sec.  1216.3 concerning area marketing 
associations, Sec.  1216.6 concerning contract export additional 
peanuts, and Sec.  1216.24 concerning quota peanuts are deleted.
    There are no relevant Federal rules that duplicate, overlap, or 
conflict with this final rule.
    In accordance with the Office of Management and Budget (OMB) 
regulation [5 CFR part 1320] which implements the Paperwork Reduction 
Act of 1995 [44 U.S.C. Chapter 35], the information collection and 
recordkeeping requirements that are imposed by this Order were 
submitted to OMB for approval and were approved under OMB control 
number 0581-0093. This proposal will not cause any change in the 
information collection and recordkeeping requirement.
    Additional changes are made to amend definitions and delete 
definitions that are no longer needed. Accordingly, Sec.  1216.2 
concerning additional peanuts, Sec.  1216.3 concerning area marketing 
associations, Sec.  1216.6 concerning contract export additional 
peanuts, and Sec.  1216.24 concerning quota peanuts are deleted.

Background

    The Order became effective on July 29, 1999, after a national 
referendum among all peanut producers. Under the Order, peanut 
producers are assessed 1 percent of the total value of all farmers 
stock peanuts, which currently generates about $6 million in annual 
revenues. The program is administered by the Board under USDA 
supervision.
    The Board is composed of 10 members and 10 alternates, nominated by 
producers and appointed by the Secretary of Agriculture. There is one 
member and alternate for each of the nine primary peanut-producing 
states and one at-large member and alternate representing all other 
peanut-producing states.
    Currently, the nine major peanut-producing states are (in 
descending order) Georgia, Texas, Alabama, North Carolina, Florida, 
Virginia, Oklahoma, New Mexico, and South Carolina. The minor peanut-
producing states are Arizona, Arkansas, California, Kansas, Louisiana, 
Mississippi, Missouri, and Tennessee.
    There is an assessment rate of 1 percent of the price paid for all 
farmers stock peanuts sold. Peanut producers may sell their peanuts 
commercially or put them in the market assistance loan program. For 
peanuts sold commercially, the first handler will remit the assessment 
to the Board.
    Further Sec.  1216.51(d) currently provides that for peanuts placed 
under loan with the Department's Commodity Credit Corporation, each 
area marketing association shall remit to the Board the following: (1) 
One (1) percent of the initial price paid for either quota or 
additional peanuts no more than 60 days after the last day of the month 
in which the peanuts were placed under loan; and (2) One (1) percent of 
the profit from the sale of the peanuts within 60 days after the final 
day of the area marketing association's fiscal year.
    A number of changes have occurred to Farm Service Agency loan 
program for peanuts since the 2002 Farm Bill. In view of this, the 
Board submitted a request to amend the Order to update the collection 
of assessments for all peanuts, including loan peanuts. This rule does 
not alter the amount of the assessment or the obligation of producers 
of peanuts to pay the assessment.
    This rule does provide in Sec.  1216.51(d) that for peanuts placed 
under a marketing assistance loan with the Department's Commodity 
Credit Corporation, the Commodity Credit Corporation or any entity 
determined by the Commodity Credit Corporation shall deduct and remit 
to the Board, from the proceeds of the loan paid to the producer, one 
(1%) percent of the loan value of the peanuts as determined by the 
warehouse receipt accompanying such peanuts, no more than 60 days after 
the last day of the month in which the peanuts were placed under a 
marketing assistance loan.
    This rule also provides in Sec.  1216.51(e) that if a producer 
places peanuts under a marketing assistance loan and subsequently 
redeems and sells such peanuts at a price greater than the loan 
proceeds, the producer shall pay the difference between the sales price 
and the loan proceed value of the peanuts multiplied by one (1%) 
percent to the Board within sixty (60) days of the date of sale.
    An interim final rule concerning this action was published in the 
Federal Register on September 21, 2005 [70 FR 55225]. Copies of the 
rule were mailed by the Board's staff to all Board members and made 
available to all handlers. In addition, the rule was made available 
through the Internet by USDA and the Office of the Federal Register. 
That rule provided for a 30-day comment period which ended October 21, 
2005.
    One comment was received and it was favorable to the rule as 
published. The commenter however, did urge AMS to make sure that in the 
case of the producer who places peanuts under loan and later redeems 
and sells them for a price greater than the loan, the handler who is 
paying the higher price is responsible for collecting the additional 
assessment due from the producer. The commenter urges the 
implementation of the interim final rule as a final rule with this one 
change concerning collection of assessments.
    We disagree with that portion of the comment that requests the 
handler to collect the assessment from the producer. When the peanuts 
are redeemed from the loan, and sold at a price greater than the loan, 
it is the producer's responsibility to pay the additional assessment 
due. Because the producer sells the peanuts and receives the proceeds, 
the handler would not be the appropriate party to collect in this 
instance. Accordingly, no changes to the rule are made as a result of 
this comment.
    After consideration of all relevant material presented, including 
comments, the Board's recommendation, and other information, it is 
determined that finalizing the interim final rule, without change, as 
published in the Federal Register (70 FR 55225) on September 21, 2005, 
is consistent with and will effectuate the purpose of the Act.

List of Subjects in 7 CFR Part 1216

    Administrative practice and procedure, Advertising, Agricultural 
research, Peanuts, Reporting and recordkeeping requirements.

PART 1216--PEANUT PROMOTION, RESEARCH AND INFORMATION ORDER

0
Accordingly, the interim final rule amending 7 CFR part 1216 which was 
published at 70 FR 55225 on September 21, 2005, is adopted as a final 
rule without change.

    Dated: June 12, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E6-9536 Filed 6-16-06; 8:45 am]
BILLING CODE 3410-02-P