This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

41551

Vol. 65, No. 130

Thursday, July 6, 2000

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560–AF51

1999 Marketing Quotas and Price

Support Levels for Fire-Cured (Type

21), Fire-Cured (Types 22–23), Dark

Air-Cured (Types 35–36), Virginia SunCured (Type 37), and Cigar-Filler and

Binder (Types 42–44 and 53–55)

Tobaccos

AGENCIES: Farm Service Agency and

Commodity Credit Corporation, USDA.

ACTION: Final rule.

SUMMARY: The purpose of this notice is

to codify the national marketing quotas

and price support levels for the 1999

crops for several kinds of tobacco

announced by press release on March 1,

1999.

In accordance with the Agricultural

Adjustment Act of 1938, as amended

(the 1938 Act), the Secretary determined

the 1999 marketing quotas to be as

follows: fire-cured (type 21), 2.6 million

pounds; fire-cured (types 22–23), 41.4

million pounds; dark air-cured (types

35–36), 12.8 million pounds; Virginia

sun-cured (type 37), 171,000 pounds;

and cigar-filler and binder (types 42–44

and 53–55), 4.5 million pounds.

Quotas are necessary to adjust the

production levels of certain tobaccos to

more fully reflect supply and demand

conditions, as provided in the 1938 Act.

In accordance with the Agricultural

Act of 1949, as amended (the 1949 Act),

the Secretary determined the 1999

levels of price support to be as follows

(in cents per pound): fire-cured (type

21), 155.9; fire-cured (types 22–23),

171.6; dark air-cured (types 35–36),

148.1; Virginia sun-cured (type 37),

138.0; and cigar-filler and binder (types

42–44 and 53–55), 123.8.

EFFECTIVE DATE: March 1, 1999.

FOR FURTHER INFORMATION CONTACT:

Robert L. Tarczy, Tobacco and Peanuts

Division, FSA, USDA, STOP 0514, 1400

Independence Avenue, SW,

Washington, DC 20250–0514, telephone

202–720–5346, e-mail address Robert

Tarczy@wdc.fsa.usda. Copies of the

cost-benefit assessment prepared for this

rule can be obtained from Mr. Tarczy.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This notice has been determined to be

significant and was reviewed by OMB

under Executive Order 12866.

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 12988

This final rule has been reviewed in

accordance with Executive Order 12988.

The provisions of this 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 final rule since 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 of these determinations.

Paperwork Reduction Act

The amendments to 7 CFR parts 723

and 1464 set forth in this final rule do

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 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.

Statutory Background

This final rule is issued pursuant to

the provisions of the 1938 Act and the

1949 Act.

On March 1, 1999, the Secretary

determined and announced the national

marketing quotas and price support

levels for the 1999 crops of fire-cured

(type 21), fire-cured (types 22–23), dark

air-cured (types 35–36), Virginia suncured (type 37), and cigar-filler and

binder (types 42–44 and 53–55)

tobaccos. A number of related

determinations were made at the same

time which this final rule affirms. On

the same date, the Secretary also

announced that a referendum would be

conducted by mail with respect to cigarfiller and binder (types 42–44 and 53–

55) tobacco.

During March 15–19, 1999, eligible

producers of cigar-filler and binder

(types 42–44 and 53–55) tobacco voted

in a referendum to determine whether

such producers approved marketing

quotas for the 1999, 2000, and 2001

marketing years (MY) for this tobacco.

Of the producers voting, 77.7 percent

favored marketing quotas for cigar-filler

and binder (types 42–44 and 53–55)

tobacco. Accordingly, quotas and price

support for cigar-filler and binder (types

42–44 and 53–55) tobacco are in effect

for the 1999 through 2001 MYs.

In accordance with section 312 of the

1938 Act, for tobaccos other than fluecured tobacco and burley tobacco, the

Secretary of Agriculture is required to

proclaim not later than March 1 of any

MY a national marketing quota for those

tobaccos for which marketing quotas

have been approved in the prior three

years. There is a vote on quotas for each

kind in a 3-year cycle. For cigar-filler

and binder (types 42–44 and 53–55)

tobacco, the 1998 MY was the last year

of 3 consecutive years of quota.

Accordingly, marketing quotas for cigarfiller and binder (types 42–44 and 53–

55) were proclaimed for each of the 3

MYs beginning October 1, 1999; October

1, 2000, and October 1, 2001, but subject

to producer approval. As indicated,

cigar-filler and binder (types 42–44 and

53–55) producers approved quotas in

the referendum. Quotas for the other

tobaccos covered by this notice were

approved in referenda which are still

effective.

41552 Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Rules and Regulations

Because of producer approval of

quotas, sections 312 and 313 of the 1938

Act required that the Secretary also

announce the reserve supply level and

the total supply of fire-cured (type 21),

fire-cured (types 22–23), dark air-cured

(types 35–36), Virginia sun-cured (type

37), and cigar filler and binder (types

42–44 and 53–55) tobaccos for the MY

beginning October 1, 1998. The

Secretary also announced the amounts

of the national marketing quotas,

national acreage allotments, national

acreage factors for apportioning the

national acreage allotments (less

reserves) to old farms, and the amounts

of the national reserves and parts

thereof available for (1) new farms and

(2) making corrections and adjusting

inequities in old farm allotments.

Under the 1949 Act, price support is

required to be made available for each

crop of a kind of tobacco for which

marketing quotas are in effect or for

which marketing quotas have not been

disapproved by producers. With respect

to the 1999 crops of the kinds of tobacco

that are the subject of this notice, the

respective maximum levels of price

support for these kinds of tobacco is

determined in accordance with section

106 of the 1949 Act. Announcement of

the price support levels for these five

kinds of tobacco are normally made

before the planting seasons. Under the

provisions of Section 1108 (c), of Pub.

L. No. 99–272, the price support level

announcements do not require prior

rulemaking. For the 1999 crops, the

price support announcements were

made on March 1, 1999, at the same

time the quota announcements were

made. Quota and price support

determinations for burley and fluecured tobacco are made separately and

are the subject of separate notices.

Statutory Provisions

Section 312(b) of the 1938 Act

provides, in part, that the national

marketing quota for a kind of tobacco is

the total quantity of that kind of tobacco

that may be marketed such that a supply

of such tobacco equal to its reserve

supply level is made available during

the MY.

Section 313(g) of the 1938 Act

provides that the Secretary may convert

the national marketing quota into a

national acreage allotment for

apportionment to individual farms.

Since producers of these kinds of

tobacco generally produce considerably

less than their respective national

acreage allotments allow, a larger quota

is necessary to make available

production equal to the reserve supply

level. Further, under section 312 (b) of

the 1938 Act, the amount of the national

marketing quota may, not later than the

following March 1, be increased by not

more than 20 percent over the straight

formula amount if the Secretary

determines that such increase is

necessary in order to meet market

demands or to avoid undue restriction

of marketings in adjusting the total

supply to the reserve supply level.

Section 301(b)(14)(B) of the 1938 Act

defines ‘‘reserve supply level’’ as the

normal supply, plus 5 percent thereof,

to ensure a supply adequate to meet

domestic consumption and export needs

in years of drought, flood, or other

adverse conditions, as well as in years

of plenty. ‘‘Normal supply’’ is defined

in section 301(b)(10)(B) of the 1938 Act

as a normal year’s domestic

consumption and exports, plus 175

percent of a normal year’s domestic use

and 65 percent of a normal year’s

exports as an allowance for a normal

year’s carryover.

Normal year’s domestic consumption

is defined in section 301(b)(11)(B) of the

1938 Act as the average quantity

produced and consumed in the United

States during the 10 MYs immediately

preceding the MY in which such

consumption is determined, adjusted for

current trends in such consumption.

Normal year’s exports is defined in

section 301(b)(12) of the 1938 Act as the

average quantity produced in and

exported from the United States during

the 10 MYs immediately preceding the

MY in which such exports are

determined, adjusted for current trends

in such exports.

Also, under section 313(g) of the 1938

Act, the Secretary is authorized to

establish a national reserve from the

national acreage allotment in an amount

equivalent to not more than 1 percent of

the national acreage allotment for the

purpose of making corrections in farm

acreage allotments, adjusting for

inequities, and for establishing

allotments for new farms. The Secretary

has determined that the national

reserve, noted herein, for the 1999 crop

of each of these kinds of tobacco is

adequate for these purposes.

The Proposed Rule

On February 26, 1999, a proposed rule

was published in the Federal Register

(64 FR 9452) in which interested

persons were requested to comment

with respect to setting quotas for the

tobacco kinds addressed in this notice.

Discussion of Comments

Fourteen written responses were

received during the comment period

which ended March 1, 1999. A

summary of these comments by kind of

tobacco follows:

(1) Fire-cured (type 21) tobacco. Two

comments were received,

recommending no change in 1999

quotas.

(2) Fire-cured (types 22–23) tobacco.

Five comments were received. Four

recommended a five percent deduction

in 1999 quotas, while one other

recommended a 10 percent decrease.

(3) Dark air-cured (types 35–36)

tobacco. Five comments were received.

Four recommended a 10 percent

increase in the quota, while one favored

a five percent increase.

(4 ) Virginia sun-cured (type 37)

tobacco. Two comments were received,

recommending no change in quota.

(5) Cigar-filler and binder (types 42–

44 and 53–55) tobacco. No comments

were received.

Quota and Related Determinations

The tobacco program is, through

assessments, operated at no net cost to

taxpayers other than the costs common

to all price support operations.

Accordingly, producer comments are

given considerable weight in this

review. Based on a review of the

comments received and the latest

available statistics of the Federal

Government, which appear to be the

most reliable data available, the

following determinations were made for

the five subject tobacco kinds:

(1) Fire-Cured (Type 21) Tobacco

The average annual quantity of firecured (type 21) tobacco produced in the

United States that is estimated to have

been consumed in the United States

during the 10 MYs preceding the 1998

MY was approximately 19.3 million

pounds. The average annual quantity

produced in the United States and

exported from the United States during

the 10 MYs preceding the 1998 MY was

2.0 million pounds (farm sales weight

basis). Both domestic use and exports

have trended downward. Because of

these considerations, a normal year’s

domestic consumption has been

determined to be 0.7 million pounds,

and a normal year’s exports have been

determined to be 1.5 million pounds.

Application of the formula prescribed

by section 301(b)(14)(B) of the 1938 Act

results in a reserve supply level of 4.6

million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1998, of 2.4

million pounds. The 1998 crop is

estimated to be 2.4 million pounds.

Therefore, total supply for the 1998 MY

is 4.8 million pounds. During the 1998

MY, it is estimated that disappearance

will total approximately 2.3 million

pounds. Deducting this disappearance

from total supply results in a 1999 MY

Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Rules and Regulations 41553

beginning stock estimate of 2.8 million

pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1999, is 2.5

million pounds. This represents the

quantity that may be marketed that will

make available during the 1999 MY a

supply equal to the reserve supply level.

More than 95 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1999 national

marketing quota of 2.116 million

pounds is necessary to make available

production of 2.1 million pounds. As

permitted by section 312(b) of the 1938

Act, it was further determined that the

1999 national marketing quota should

be increased by 20 percent over the

normal formula amount in order to

avoid undue restriction of marketings.

This determination took into account

the size of last year’s quota, the

comments, the long storage time for this

tobacco and the possibility of changes in

demand over expected demand. Thus,

the national marketing quota for the

1999 crop is 2.6 million pounds.

In accordance with section 313(g) of

the 1938 Act, dividing the 1999 national

marketing quota of 2.6 million pounds

by the 1994–98, 5-year national average

yield of 1,600 pounds per acre results in

a 1999 national acreage allotment of

1,625.00 acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.0 is determined by

dividing the national acreage allotment

for the 1999 MY, less a national reserve

of 7.61 acres, by the total of the 1999

preliminary farm acreage allotments

(previous year’s allotments). The

preliminary farm acreage allotments

reflect the factors specified in section

313(g) of the 1938 Act for apportioning

the national acreage allotment, less the

national reserve, to old farms.

(2) Fire-Cured (Types 22–23) Tobacco

The average annual quantity of firecured (types 22–23) tobacco produced

in the United States that is estimated to

have been consumed in the United

States during the 10 MYs preceding the

1998 MY was approximately 19.3

million pounds. The average annual

quantity produced in the United States

and exported during the 10 MYs

preceding the 1998 MY was 15.5 million

pounds (farm sales weight basis).

Domestic use has trended upward while

exports have varied. Because of these

considerations, a normal year’s

domestic consumption has been

determined to be 29.7 million pounds,

and a normal year’s exports have been

determined to be 18.4 million pounds.

Application of the formula prescribed

by section 301(b)(14)(B) of the 1938 Act

results in a reserve supply level of 117.7

million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1998, of 84.8

million pounds. The 1998 crop is

estimated to be 40.4 million pounds.

Therefore, total supply for the 1998 MY

is 125.2 million pounds. During the

1998 MY, it is estimated that

disappearance will total approximately

40.0 million pounds. Deducting this

disappearance from total supply results

in a 1999 MY beginning stock estimate

of 85.2 million pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1999, is 32.5

million pounds. This represents the

quantity that may be marketed that will

make available during the 1999 MY a

supply equal to the reserve supply level.

About 95 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1999 national

marketing quota of 34.5 million pounds

is necessary to make available

production of 32.5 million pounds.

Utilizing section 312(b) of the 1938

Act, it was further determined for the

same reason as with fire-cured (type 21)

tobacco, that the 1999 national

marketing quota should be increased by

20 percent over the normal formula

amount in order to avoid undue

restriction of marketings. Thus, the

national marketing quota for the 1999

crop is 41.4 million pounds.

In accordance with section 313(g) of

the 1938 Act, dividing the 1999 national

marketing quota of 41.4 million pounds

by the 1994–98, 5-year average yield of

2,577 pounds per acre results in a 1999

national acreage allotment of 16,065.19

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 0.95 is determined by

dividing the national acreage allotment

for the 1999 MY, less a national reserve

of 53.30 acres, by the total of the 1999

preliminary farm acreage allotments

(previous year’s allotments). The

preliminary farm acreage allotments

reflect the factors specified in section

313(g) of the 1938 Act for apportioning

the national acreage allotment, less the

national reserve, to old farms.

(3) Dark Air-Cured (Types 35–36)

Tobacco

The average annual quantity of dark

air-cured (types 35–36) tobacco

produced in the United States that is

estimated to have been consumed in the

United States during the 10 MYs

preceding the 1998 MY was

approximately 9.0 million pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1998 MY was 1.4 million

pounds (farm sales weight basis). Both

domestic use and exports have been

erratic. Because of these considerations,

a normal year’s domestic consumption

has been determined to be 10.2 million

pounds, and a normal year’s exports

have been determined to be 1.4 million

pounds. Application of the formula

prescribed by section 301(b)(14)(B) of

the 1938 Act results in a reserve supply

level of 31.9 million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1998, of 22.4

million pounds. The 1998 crop is

estimated to be 10.1 million pounds.

Therefore, total supply for the 1998 MY

is 32.5 million pounds. During the 1998

MY, it is estimated that disappearance

will total approximately 10.5 million

pounds. Deducting this disappearance

from total supply results in a 1999 MY

beginning stock estimate of 22.0 million

pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1999, is 9.9

million pounds. This represents the

quantity that may be marketed that will

make available during the 1999 MY a

supply equal to the reserve supply level.

Over 90 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a national marketing

quota of 10.67 million pounds is

necessary to make available production

of 9.9 million pounds. In accordance

with section 312(b) of the 1938 Act, it

has been further determined that the

1999 national marketing quota should

be increased by 20 percent over the

normal formula amount in order to

avoid undue restriction of marketings.

This determination took into account

the same factors as with fire-cured (type

21) tobacco and industry preferences.

This results in a national marketing

quota for the 1999 MY of 12.8 million

pounds. Otherwise, the quota would be

below the level for the 1998 crop.

In accordance with section 313(g) of

the 1938 Act, dividing the 1999 national

marketing quota of 12.8 million pounds

by the 1994–98, 5-year average yield of

2,291 pounds per acre results in a 1999

national acreage allotment of 5,587.08

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.10 is determined by

dividing the national acreage allotment

for the 1999 MY, less a national reserve

of 45.60 acres, by the total of the 1999

preliminary farm acreage allotments

41554 Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Rules and Regulations

(previous year’s allotments). The

preliminary farm acreage allotments

reflect the factors specified in section

313(g) of the 1938 Act for apportioning

the national acreage allotment, less the

national reserve, to old farms.

(4) Virginia Sun-Cured (Type 37)

Tobacco

The average annual quantity of

Virginia sun-cured (type 37) tobacco

produced in the United States that is

estimated to have been consumed in the

United States during the 10 MYs

preceding the 1998 MY was

approximately 90,000 pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1998 MY was

approximately 100,000 pounds (farm

sales weight basis). Both domestic use

and exports have shown a sharp

downward trend. Because of these

considerations, a normal year’s

domestic consumption has been

determined to be 64,000 pounds, and a

normal year’s exports have been

determined to be 20,000 pounds.

Application of the formula prescribed

by section 301(b)(14)(B) of the 1938 Act

results in a reserve supply level of

219,000 pounds.

Manufacturers and dealers reported

stocks held on October 1, 1998, of

50,000 pounds. The 1998 crop is

estimated to be 140,000 pounds.

Therefore, total supply for the 1998 MY

is 190,000 pounds. During the 1998 MY,

it is estimated that disappearance will

total approximately 190,000 pounds.

Deducting this disappearance from total

supply results in a 1999 MY beginning

stock estimate of 90,000 pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1998, is 129,000

pounds. This represents the quantity

that may be marketed that will make

available during the 1998 MY a supply

equal to the reserve supply level. Less

than three-quarters of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1999 national

marketing quota of 171,000 pounds is

necessary to make available production

of 129,000 pounds. Thus, the national

marketing quota for the 1999 crop is

171,000 pounds which is greater than

the preceding quota by about 5 percent

and should not unduly restrict

marketings.

In accordance with section 313(g) of

the 1938 Act, dividing the 1999 national

marketing quota of 171,000 pounds by

the 1994–98, 5-year average yield of

1,466 pounds per acre results in a 1999

national acreage allotment of 116.64

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.0 is determined by

dividing the national acreage allotment

for the 1999 MY, less a national reserve

of 0.35 acres, by the total of the 1999

preliminary farm acreage allotments

(previous year’s allotments). The

preliminary farm acreage allotments

reflect the factors specified in section

313(g) of the 1938 Act for apportioning

the national acreage allotment, less the

national reserve, to old farms.

(5) Cigar-Filler and Binder (Types 42–44

and 53–55) Tobacco

The average annual quantity of cigarfiller and binder (types 42–44 and 53–

55) tobacco produced in the United

States that is estimated to have been

consumed in the United States during

the 10 MYs preceding the 1998 MY was

approximately 10.9 million pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1998 MY was less than

100,000 pounds (farm sales weight).

Domestic use has trended downward

and exports are very small. Thus, a

normal year’s domestic consumption

has been determined to be 5.9 million

pounds, and a normal year’s exports

have been determined to be zero

pounds. Application of the formula

prescribed by section 301(b)(14)(B) of

the 1938 Act results in a reserve supply

level of 17.0 million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1998, of 16.2

million pounds. The 1998 crop is

estimated to be 4.2 million pounds.

Therefore, total supply for the 1998 MY

is 20.4 million pounds. During the 1998

MY, it is estimated that disappearance

will total about 7.0 million pounds.

Deducting this disappearance from total

supply results in a 1999 MY beginning

stock estimate of 13.4 million pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1999, is 3.6

million pounds. This represents the

quantity that may be marketed that will

make available during the 1999 MY a

supply equal to the reserve supply level.

About 80 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1999 national

marketing quota of 4.5 million pounds

is necessary to make available

production of 3.6 million pounds. This

results in a 1999 national marketing

quota of 4.5 million pounds. This

determination reflects that there are

short reserve supplies and takes into

account possible changes in expected

demand and the fact that even with this

adjustment the 1999 quota will be less

than the 1998 crop quota.

In accordance with section 313(g) of

the 1938 Act, dividing the 1999 national

marketing quota of 4.5 million pounds

by the 1994–98, 5-year average yield of

2,054 pounds per acre results in a 1999

national acreage allotment of 2,190.84

acres.

Pursuant to the provisions of section

313(g), of the 1938 Act, a national factor

of 0.65 is determined by dividing the

national acreage allotment for the 1999

MY, less a national reserve of 2.31 acres,

by the total of the 1999 preliminary farm

acreage allotments (previous year’s

allotments). The preliminary farm

acreage allotments reflect the factors

specified in section 313(g) of the 1938

Act for apportioning the national

acreage allotment, less the national

reserve, to old farms.

(6) Referendum Results for Cigar-Filler

and Binder (Types 42–44 and 53–55)

Tobaccos

Because of the results of the producer

referendum, marketing quotas shall be

in effect for the 1999 MY for cigar-filler

and binder (types 42–44 and 53–55)

tobacco. In referenda held March 15–19,

1999, 77.7 percent of cigar filler and

binder producers voted in favor of

quotas.

REFERENDUM DATA

Kind of tobacco Total votes Yes votes No votes % yes votes

Cigar-filler and binder (types 42–44 and 54–55) ............................................. 909 706 203 77.7

Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Rules and Regulations 41555

Price Support

Statutory Provisions

Section 106(f)(6)(A) of the 1949 Act

provides that the level of support for the

1999 crop of a kind of tobacco (other

than flue-cured and burley) shall be the

level in cents per pound at which the

1998 crop of such kind of tobacco was

supported, plus or minus, as

appropriate, the amount by which (i) the

basic support level for the 1999 crop, as

it would otherwise be determined under

section 106(b) of the 1949 Act, is greater

or less than (ii) the support level for the

1998 crop, as it would otherwise be

determined under section 106(b). To the

extent that the price support level

would be increased as a result of that

comparison, section 106(f) provides that

the increase may be modified using the

provisions of 106(d). Under 106(d), the

Secretary may reduce the level of

support for grades the Secretary

determines will likely be in excess

supply so long as the weighted level of

support for all grades maintains at least

65 percent of the increase in the price

support (from the previous year). The

Secretary must consult with the

appropriate tobacco associations and

take into consideration the supply, and

anticipated demand for the tobacco,

including the effect of the action on

other kinds of quota tobacco. In

determining whether the supply of any

grade of any kind of tobacco of a crop

will be excessive, the Secretary is

required to consider the domestic

supply, including domestic inventories,

the amount of such tobacco pledged as

security for price support loans, and

anticipated domestic and export

demand, based on the maturity,

uniformity, and stalk position of such

tobacco.

Section 106(b) of the 1949 Act

provides that the ‘‘basic support level’’

for any year is determined by

multiplying the support level for the

1959 crop of such kind of tobacco by the

ratio of the average of the index of

prices paid by farmers, including wage

rates, interest and taxes (referred to as

the ‘‘parity index’’) for the 3 previous

calendar years to the average index of

such prices paid by farmers, including

wage rates, interest and taxes for the

1959 calendar year.

In addition, section 106(f)(6)(B) of the

1949 Act provides that to the extent

requested by the board of directors of an

association through which price support

is made available to producers

(producer association), the Secretary

may reduce the support level

determined under section 106(f)(6)(A) of

the 1949 Act for the respective kind of

tobacco to more accurately reflect the

market value and improve the

marketability of such tobacco.

Accordingly, the price support level for

a kind of tobacco set forth in this rule

could be reduced if such a request is

made.

Price Support Determinations

The following levels of price support

for the 1998 crops of various kinds of

tobacco, which were determined in

accordance with section 106(f)(6)(A) of

the 1949 Act, are as follows:

Kind and type

Support level

(cents per

pound)

Fire-cured (type 21) ........................................................................................................................................................................... 153.6

Fire-cured (types 22–23) ................................................................................................................................................................... 168.1

Dark air-cured (types 35–36) ............................................................................................................................................................. 145.0

Virginia sun-cured (type 37) .............................................................................................................................................................. 136.0

Cigar-filler and binder (types 42–44 and 53–55) .............................................................................................................................. 121.2

For the 1999 crop year:

(1) Average parity indexes for calendar year periods 1995–1997 and 1996–1998 are as follows:

Year Index Year Index

1995 .................................................................................. 1,452 1996 ................................................................................. 1,520

1996 .................................................................................. 1,520 1997 ................................................................................. 1,558

1997 .................................................................................. 1,558 1998 ................................................................................. 1,532

Average ............................................................................ 1,510 Average ............................................................................ 1,537

(2) Average parity index, calendar year 1959 = 298.

(3) 1998 ratio of 1,500 to 298 = 5.07; 1999 ratio of 1,537 to 298 = 5.16.

(4) Ratios times 1959 support levels and 1999 increase in basic support levels are as follows:

Kind and type of tobacco

1959 support levelBasic support

level 1

Increase from

1997 to 1998

(¢/lb.) 1998

(¢/lb.)

1999

(¢/lb.)

100%

(¢/lb.)

65%

(¢/lb.)

Fire-cured (type 21) ................................................................................. 38.8 196.7 200.2 3.5 2.3

Fire-cured (types 22–23) ......................................................................... 38.8 196.7 200.2 3.5 2.3

Dark air-cured (types 35–36) ................................................................... 34.5 174.9 178.0 3.1 2.0

Virginia sun-cured (type 37) .................................................................... 34.5 174.9 178.0 3.1 2.0

Cigar-filler and binder (types 42–44, 53–55) ........................................... 28.6 145.0 147.6 2.6 1.7

11998 ratio is 5.07, 1999 ratio is 5.16.

The loan associations for Virginia firecured (type 21) and Virginia sun-cured

(type 37) tobacco have accepted lower

price support levels so their tobacco

may remain competitive in world

markets. Therefore, for fire-cured (type

21) tobacco and Virginia sun-cured

(type 37) tobacco, the 1999-crop support

levels were set so as to only add, over

1998-crop levels, 65 percent of the

difference between the 1999 crop ‘‘basic

support level’’ and the 1998-crop ‘‘basic

41556 Federal Register / Vol. 65, No. 130 / Thursday, July 6, 2000 / Rules and Regulations

support level.’’ For the other tobaccos

covered in this notice there was no such

recommendation and the support levels

were set accordingly. Accordingly, the

price support levels for fire-cured (types

22–23), dark air-cured (types 35–36) and

cigar filler and binder (types 42–44 and

53–55) tobaccos were set to use the MY

1998 level of support increased by 100

percent of the difference between the

MY 1999 ‘‘basic support level’’ and the

MY 1998 ‘‘basic support level.’’

Chewing tobacco, smoking tobacco, and

snuff manufacturing formulas limit the

substitutability of one of these kinds of

tobacco for another. Cigarettes, the

principal outlet for flue-cured and

burley tobaccos, do not require any of

these five kinds of tobacco in their

blends.

Accordingly, the following price

support determinations were announced

on March 1, 1999, for the 1999 crops of

the tobaccos which are the subject of

this notice:

Kind and type of tobacco

Support level

(cents per

pound)

Fire-cured (type 21) ........................................................................................................................................................................... 155.9

Fire-cured (types 22–23) ................................................................................................................................................................... 171.6

Dark air-cured (types 35–36) ............................................................................................................................................................. 148.1

Virginia sun-cured (type 37) .............................................................................................................................................................. 138.0

Cigar-filler and binder (types 42–44 and 53–55) .............................................................................................................................. 123.8

Further Rulemaking

As indicated proviously, price

support determination referenced in this

notice are exempt from rulemaking. In

addition to those and the other

determinations addressed in this notice

many of which are driven by statutory

deadlines and affect the marketing of

current crops for which farmer must

plan, it was determined that to the

extent restrictions might otherwise

apply, a delay in the effectiveness of the

for determinations additional notice and

procedures would be contrary to the

public interest, impracticable, and

unnecessary. This conclusion is the

same as to prior crop years, and for all

purposes, including for purposes of the

Small Business Regulatory Enforcement

Act (Pub. L. No. 104–121).

List of Subjects

7 CFR Part 723

Acreage allotments, Marketing quotas,

Penalties, Reporting and recordkeeping

requirements, Tobacco.

7 CFR Part 1464

Price supports, Tobacco.

Accordingly, 7 CFR parts 723 and

1464 are amended to read as follows:

PART 723—TOBACCO

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. Section 723.113 is amended by

adding paragraph (g) to read as follows:

§ 723.113 Fire-cured (type 21) tobacco.

* * * * *

(g) The 1999-crop national marketing

quota is 2.6 million pounds.

3. Section 723.114 is amended by

adding paragraph (g) to read as follows:

§ 723.114 Fire-cured (types 22–23)

tobacco.

* * * * *

(g) The 1999-crop national marketing

quota is 41.4 million pounds.

4. Section 723.115 is amended by

adding paragraph (g) to read as follows:

§ 723.115 Dark air-cured (types 35–36)

tobacco.

* * * * *

(g) The 1999-crop national marketing

quota is 12.8 million pounds.

5. Section 723.116 is amended by

adding paragraph (g) to read as follows:

§ 723.116 Sun-cured (type 37) tobacco.

* * * * *

(g) The 1999-crop national marketing

quota is 171,000 pounds.

6. Section 723.117 is amended by

adding paragraph (g) to read as follows:

§ 723.117 Cigar-filler and binder (types 42–

44 and 53–55) tobacco.

* * * * *

(g) The 1999-crop national marketing

quota is 4.5 million pounds.

PART 1464—TOBACCO

7. The authority citation for 7 CFR

part 1464 continues to read as follows:

Authority: 7 U.S.C. 1421, 1423, 1441, 1445,

and 1445–1; 15 U.S.C. 714b and 714c.

8. Section 1464.13 is amended by

adding paragraph (g) to read as follows:

§ 1464.13 Fire-cured (type 21) tobacco.

* * * * *

(g) The 1999-crop national price

support level is 155.9 cents per pound.

9. Section 1464.14 is amended by

adding paragraph (g) to read as follows:

§ 1464.14 Fire-cured (types 22–23)

tobacco.

* * * * *

(g) The 1999-crop national price

support level is 171.6 cents per pound.

10. Section 1464.15 is amended by

adding paragraph (g) to read as follows:

§ 1464.15 Dark air-cured (types 35–36)

tobacco.

* * * * *

(g) The 1999-crop national price

support level is 148.1 cents per pound.

11. Section 1464.16 is amended by

adding paragraph (g) to read as follows:

§ 1464.16 Virginia sun-cured (type 37)

tobacco.

* * * * *

(g) The 1999-crop national price

support level is 138.0 cents per pound.

12. Section 1464.17 is amended by

adding paragraph (g) to read as follows:

§ 1464.17 Cigar-filler and binder (types 42–

44 and 53–55) tobacco.

* * * * *

(g) The 1999-crop national price

support level is 123.8 cents per pound.

Signed at Washington, DC, on June 28,

2000.

Keith Kelly,

Administrator, Farm Service Agency and

Executive Vice President, Commodity Credit

Corporation.

[FR Doc. 00–16989 Filed 7–5–00; 8:45 am]

BILLING CODE 3410–05–P