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

43917

Vol. 62, No. 159

Monday, August 18, 1997

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560–AF03

1997 Marketing Quotas and Price

Support Levels for Fire-Cured (type

21), Fire-Cured (types 22–23), Dark AirCured (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 final rule

is to codify the national marketing

quotas and price support levels for the

1997 crops for several kinds of tobacco

announced by press release on February

27, 1997.

In accordance with the Agricultural

Adjustment Act of 1938, as amended

(the 1938 Act), the Secretary determined

the 1997 marketing quotas to be as

follows: fire-cured (type 21), 2.395

million pounds; fire-cured (types 22–

23), 43.4 million pounds; dark air-cured

(types 35–36), 9.88 million pounds;

Virginia sun-cured (type 37), 156,400

pounds; and cigar-filler and binder

(types 42–44 and 53–55), 8.4 million

pounds.

Quotas are necessary to adjust the

production levels of certain tobaccos to

more fully reflect supply and demand

conditions, as provided by statute.

In addition, in accordance with the

Agricultural Act of 1949 as amended

(the 1949 Act), the Secretary determined

the 1997 levels of price support to be as

follows (in cents per pound): fire-cured

(type 21), 149.8; fire-cured (types 22–

23), 162.3; dark air-cured (types 35–36),

139.8; Virginia sun-cured (type 37),

132.6; and cigar-filler and binder (types

42–44 and 53–55), 116.9. Price supports

are generally necessary to maintain

grower income.

EFFECTIVE DATE: February 27, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert L. Tarczy, STOP 0514, 1400

Independence Avenue, SW,

Washington, DC 20250–0514, Phone

202–720–5346.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final 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 12988

This final rule has been reviewed in

accordance with Executive Order 12988,

Civil Justice Reform. 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 because Farm Service

Agency (FSA) 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

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 through 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.

Background

This final rule is issued pursuant to

the provisions of the 1938 Act and the

1949 Act.

On February 27, 1997, the Secretary

determined and announced the national

marketing quotas and price support

levels for the 1997 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 referenda would be

conducted by mail with respect to firecured (types 21–23) and dark air-cured

(types 35–36) tobaccos.

During March 24–27, 1997, eligible

producers of fire-cured (types 21–23)

and dark air-cured (types 35–36)

tobacco voted in separate referenda to

determine whether such producers favor

marketing quotas for the 1997, 1998 and

1999 marketing years (MYs) for these

tobaccos. Of the producers voting, 90.6

percent favored marketing quotas for

fire-cured (types 21–23) tobacco while

89.6 percent favored marketing quotas

for dark air-cured (types 35–36) tobacco.

Accordingly, quotas and price supports

for fire-cured (types 21–23) and dark aircured (types 35–36) tobacco are in effect

for the 1997 MY.

In accordance with section 312(a) of

the 1938 Act, the Secretary of

Agriculture was required to proclaim

not later than March 1 of any MY with

respect to any kind of tobacco, other

than burley and flue-cured tobacco, a

national marketing quota for any such

kind of tobacco for each of the next 3

MYs if such MY was the last year of 3

consecutive years for which marketing

quotas previously proclaimed will be in

effect. With respect to fire-cured (types

21–23) and dark air-cured (types 35–36)

tobaccos, the 1996 MY is the last year

of 3 such consecutive years.

Accordingly, subject to producer

approval, marketing quotas for these

tobaccos have been proclaimed for each

of the 3 MYs beginning October 1, 1997;

October 1, 1998; and October 1, 1999.

Quotas for the other tobaccos covered by

this notice were approved in referenda

which are still effective.

Because of producer approval of

quotas, sections 312 and 313 of the 1938

Act required that the Secretary
43918 Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Rules and Regulations

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, 1997.

The Secretary also announces 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 1997 crop of the five kinds of

tobacco that are the subject of this

notice, the respective maximum level of

price support for these kinds 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 1997 crops, the

price support announcements were

made on February 27, 1997, 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.

Quotas and Related Determinations

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 so 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

effective 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 1997 crop

of each of these kinds of tobacco is

adequate for these purposes.

The Proposed Rule

On January 27, 1997, a proposed rule

was published in the Federal Register

(62 FR 3830) in which interested

persons were requested to comment

with respect to setting quotas for the

tobacco kinds addressed in this notice.

Discussion of Comments

Twenty-five written responses were

received during the comment period

which ended February 12, 1997. A

summary of these comments by kind of

tobacco follows:

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

Eleven comments were received. One

recommended no change from the 1996

quota, while 10 others recommended a

15 percent increase in 1997 quotas.

(2) Fire-cured (types 22–23) tobacco.

Five comments were received. They

ranged from recommending no change

to recommending a 10 percent increase

in 1997 quotas.

(3) Dark air-cured (types 35–36)

tobacco. Six comments were received.

All recommended a 10 percent increase

in the quota.

(4) Virginia sun-cured (type 37)

tobacco. Three comments were

received. They recommended a quota

increase of between 15 and 20 percent.

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

44 and 53–55) tobacco. No comments

were received.

Quota and Related Determinations

Based on a review of these comments

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 1996

MY was approximately 0.7 million

pounds. The average annual quantity

produced in the United States and

exported from the United States during

the 10 MYs preceding the 1996 MY was

2.2 million pounds (farm sales weight

basis). Both domestic use and exports

have trended sharply 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 3.78 million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1996, of 2.8

million pounds. The 1996 crop is

estimated to be 1.7 million pounds.

Therefore, total supply for the 1996 MY

is 4.5 million pounds. During the 1996

MY, it is estimated that disappearance

will total approximately 2.4 million

pounds. Deducting this disappearance

from total supply results in a 1997 MY

beginning stock estimate of 2.1 million

pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1997, is 1.68

million pounds. This represents the
Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Rules and Regulations 43919

quantity that may be marketed that will

make available during the 1997 MY a

supply equal to the reserve supply level.

More than 80 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1997 national

marketing quota of 1.996 million

pounds is necessary to make available

production of 1.68 million pounds. As

permitted by section 312(b) of the 1938

Act, it was further determined that the

1997 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 1997 crop is 2.395 million pounds.

In accordance with section 313(g) of

the 1938 Act, dividing the 1997 national

marketing quota of 2.395 million

pounds by the 1992–96, 5-year national

average yield of 1,590 pounds per acre

results in a 1997 national acreage

allotment of 1,506.29 acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.125 is determined by

dividing the national acreage allotment

for the 1997 MY, less a national reserve

of 14.38 acres, by the total of the 1997

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 years preceding the

1996 MY was approximately 18.7

million pounds. The average annual

quantity produced in the United States

and exported during the 10 MYs

preceding the 1996 MY was 16.2 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 30.0 million pounds,

and a normal year’s exports have been

determined to be 18.2 million pounds.

Application of the formula prescribed

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

results in a reserve supply level of 118.1

million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1996, of 80.2

million pounds. The 1996 crop is

estimated to be 42.3 million pounds.

Therefore, total supply for the 1996 MY

is 122.5 million pounds. During the

1996 MY, it is estimated that

disappearance will total approximately

39.0 million pounds. Deducting this

disappearance from total supply results

in a 1997 MY beginning stock estimate

of 83.5 million pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1997, is 34.6

million pounds. This represents the

quantity that may be marketed that will

make available during the 1997 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 1997 national

marketing quota of 36.2 million pounds

is necessary to make available

production of 34.6 million pounds.

Utilizing section 312(b) of the 1938

Act, it was further determined, for the

same reasons as with type 21 tobacco,

that the 1997 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 1997 crop is 43.4 million pounds.

In accordance with section 313(g) of

the 1938 Act, dividing the 1997 national

marketing quota of 43.4 million pounds

by the 1992–96, 5-year average yield of

2,551 pounds per acre results in a 1997

national acreage allotment of 17,012.94

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.025 is determined by

dividing the national acreage allotment

for the 1997 MY, less a national reserve

of 136.93 acres, by the total of the 1997

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 1996 MY was

approximately 9.6 million pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1996 MY was 1.7 million

pounds (farm sales weight basis).

Domestic use has been erratic while

exports have trended downward.

Because of these considerations, a

normal year’s domestic consumption

has been determined to be 9.9 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 31.2 million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1996, of 25.1

million pounds. The 1996 crop is

estimated to be 9.1 million pounds.

Therefore, total supply for the 1996 MY

is 34.2 million pounds. During the 1996

MY, it is estimated that disappearance

will total approximately 10.5 million

pounds. Deducting this disappearance

from total supply results in a 1997 MY

beginning stock estimate of 23.7 million

pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1997, is 7.5

million pounds. This represents the

quantity that may be marketed that will

make available during the 1997 MY a

supply equal to the reserve supply level.

About 90 percent of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a national marketing

quota of 8.23 million pounds is

necessary to make available production

of 7.5 million pounds. Utilizing section

312(b) of the 1938 Act, it was further

determined that the 1997 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 type 21 and

industry preferences. This results in a

national marketing quota for the 1997

MY of 9.88 million pounds. Otherwise,

the quota would be well below the level

for the 1996 crop.

In accordance with section 313(g) of

the 1938 Act, dividing the 1997 national

marketing quota of 9.88 million pounds

by the 1992–96, 5-year average yield of

2,312 pounds per acre results in a 1997

national acreage allotment of 4,273.36

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.05 is determined by

dividing the national acreage allotment

for the 1997 MY, less a national reserve

of 39.83 acres, by the total of the 1997

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.
43920 Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Rules and Regulations

(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 1996 MY was

approximately 110,000 pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1996 MY was

approximately 90,000 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 40,000 pounds, and a

normal year’s exports have been

determined to be 24,000 pounds.

Application of the formula prescribed

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

results in a reserve supply level of

150,000 pounds.

Manufacturers and dealers reported

stocks held on October 1, 1996, of

50,000 pounds. The 1996 crop is

estimated to be 120,000 pounds.

Therefore, total supply for the 1996 MY

is 170,000 pounds. During the 1996 MY,

it is estimated that disappearance will

total approximately 120,000 pounds.

Deducting this disappearance from total

supply results in a 1997 MY beginning

stock estimate of 50,000 pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1996, is 100,000

pounds. This represents the quantity

that may be marketed that will make

available during the 1997 MY a supply

equal to the reserve supply level. Less

than two-thirds of the announced

national marketing quota is expected to

be produced. Accordingly, it has been

determined that a 1997 national

marketing quota of 156,400 pounds is

necessary to make available production

of 100,000 pounds. Thus, the national

marketing quota for the 1997 crop is

156,400 pounds which is greater than

the preceding quota by about 6 percent

and should not unduly restrict

marketings.

In accordance with section 313(g) of

the 1938 Act, dividing the 1997 national

marketing quota of 156,400 pounds by

the 1992–96, 5-year average yield of

1,375 pounds per acre results in a 1997

national acreage allotment of 113.75

acres.

Pursuant to the provisions of section

313(g) of the 1938 Act, a national

acreage factor of 1.15 is determined by

dividing the national acreage allotment

for the 1997 MY, less a national reserve

of 1.09 acres, by the total of the 1997

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 1996 MY was

approximately 13.8 million pounds. The

average annual quantity produced in the

United States and exported from the

United States during the 10 MYs

preceding the 1996 MY was less than

100,000 pounds (farm sales weight).

Domestic use has trended downward

and exports are very small. Based on

these considerations, a normal year’s

domestic consumption has been

determined to be 7.8 million pounds,

and a normal year’s exports has 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 22.6

million pounds.

Manufacturers and dealers reported

stocks held on October 1, 1996, of 21.8

million pounds. The 1996 crop is

estimated to be 4.6 million pounds.

Therefore, total supply for the 1996 MY

is 26.4 million pounds. During the 1996

MY, it is estimated that disappearance

will total about 8.8 million pounds.

Deducting this disappearance from total

supply results in a 1997 MY beginning

stock estimate of 17.6 million pounds.

The difference between the reserve

supply level and the estimated

carryover on October 1, 1997, is 5.0

million pounds. This represents the

quantity that may be marketed that will

make available during the 1997 MY a

supply equal to the reserve supply level.

Slightly more than 70 percent of the

announced national marketing quota is

expected to be produced. Accordingly,

it has been determined that a 1997

national marketing quota of 7.0 million

pounds is necessary to make available

production of 5.0 million pounds. As

permitted by section 312(b) of the 1938

Act, it was further determined that the

1997 national marketing quota should

be increased by 20 percent over the

normal formula amount in order to

avoid undue restriction of marketings.

This results in a 1997-crop national

marketing quota of 8.4 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 new quota will be less

than the 1996 crop quota.

In accordance with section 313(g) of

the 1938 Act, dividing the 1997 national

marketing quota of 8.4 million pounds

by the 1992–96, 5-year average yield of

1,876 pounds per acre results in a 1997

national acreage allotment of 4,477.61

acres.

Pursuant to the provisions of section

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

of 1.0 is determined by dividing the

national acreage allotment for the 1997

MY, less a national reserve of 9.21 acres,

by the total of the 1997 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 Fire-Cured

(Types 21–23) and Dark Air-Cured

(Types 35–36) Tobaccos

Because of the results of producer

referenda, marketing quotas shall be in

effect for the 1997 MY for fire-cured

(types 21–23) and dark air-cured (types

35–36) tobacco. In referenda held March

24–27, 1997, 90.6 percent of producers

of fire-cured (types 21–23) and 89.6

percent of producers of dark air-cured

(types 35–36) tobaccos voted in favor of

marketing quotas.

REFERENDA DATA

Kind of tobacco Total votes Yes votes No votes Percent yes

votes

Fire-cured (types 21–23) .................................................................................................. 4,405 3,992 413 90.6

Dark air-cured (types 35–36) ........................................................................................... 4,350 3,898 452 89.6
Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Rules and Regulations 43921

Price Support

Statutory Provisions

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

provides that the level of support for the

1997 crop of a kind of tobacco (other

than flue-cured and burley) shall be the

level in cents per pound at which the

1996 crop of such kind of tobacco was

supported, plus or minus, as

appropriate, the amount by which (i) the

basic support level for the 1997 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

1996 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 will be 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 1996 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)

Virginia fire-cured (type 21) ..................................................................................................................................................................... 145.5

KY-TN fire-cured (types 22–23) ............................................................................................................................................................... 155.7

Dark air-cured (types 35–36) ................................................................................................................................................................... 133.9

Virginia sun-cured (type 37) .................................................................................................................................................................... 128.8

Cigar-filler and binder (types 42–44 and 53–55) ..................................................................................................................................... 112.0

For the 1997 crop year:

(1) Average parity indexes for calendar year periods 1993–1995 and 1994–1996 are as follows:

Year Index Year Index

1993 ................................................................................... 1,355 1994 ................................................................................. 1,399

1994 ................................................................................... 1,399 1995 ................................................................................. 1,443

1995 ................................................................................... 1,443 1996 ................................................................................. 1,504

Average ............................................................................. 1,399 Average ............................................................................ 1,449

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

(3) 1996 ratio of 1,399 to 298 = 4.69; 1997 ratio of 1,449 to 298 = 4.86.

(4) Ratios times 1959 support levels and 1997 increase in basic support levels are as follows:

Kind and type

1959 support levelBasic support level 1 Increase from 1995 to

1996

(¢/lb.) 1996 (¢/lb.) 1997 (¢/lb.) 100% (¢/lb.) 65% (¢/lb.)

VA 21 ........................................................................................................ 38.8 182.0 188.6 6.6 4.3

KY–TN 22–23 ........................................................................................... 38.8 182.0 188.6 6.6 4.3

KY–TN 35–36 ........................................................................................... 34.5 161.8 167.7 5.9 3.8

VA 37 ........................................................................................................ 34.5 161.8 167.7 5.9 3.8

Cigar-filler and binder 42–44, 54–55 ........................................................ 28.6 134.1 139.0 4.9 3.2

1 1996 ratio is 4.69, 1997 ratio is 4.86.

With respect to 106(d) adjustments,

for MY 1997, (that is for the 1997-crop)

the flue-cured and burley support levels

were increased by 65 percent of the

formula increase to within about 13

percent of 1996’s average market prices.

For the kinds of tobacco subject of this

notice, MY 1996 market prices were

further above the support level, and

overall loan receipts remained low.

In addition, the supply-use ratios for

these five kinds suggest adequate

supplies. However, all five kinds are

eligible for the full increase. In addition,

the loan associations for Virginia fire-
43922 Federal Register / Vol. 62, No. 159 / Monday, August 18, 1997 / Rules and Regulations

cured (type 21) and Virginia sun-cured

(type 37) 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 1997-crop support

levels were set so as to only add, over

1996-crop levels, 65 percent of the

difference between the 1997-crop ‘‘basic

support level’’ and the 1996-crop ‘‘basic

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

air-cured (types 35–36) and cigar filler

and binder (types 42–44; 53–55)

tobaccos were set to use of the MY 1996

level of support increased by the

difference between the MY 1997 ‘‘basic

support level’’ and the MY 1996 ‘‘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 February 27, 1997 for the 1997 crops

of the tobaccos which are the subject of

this notice:

Kind and type

Support

level

(cents

per

pound)

Virginia fire-cured (type 21) .......... 149.8

Kentucky-Tennessee fire-cured

(types 22–23) ............................ 162.3

Dark air-cured (types 35–36) ........ 139.8

Virginia sun-cured (type 37) ......... 132.6

Cigar-filler and binder (types 42–

44 and 53–55) ........................... 116.9

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, 1377–1379, 1421, 1445–1,

and 1445–2.

2. Section 723.113 is amended by

adding paragraph (e) to read as follows:

§ 723.113 Fire-cured (type 21) tobacco.

* * * * *

(e) The 1997-crop national marketing

quota is 2.395 million pounds.

3. Section 723.114 is amended by

adding paragraph (e) to read as follows:

§ 723.114 Fire-cured (types 22–23)

tobacco.

* * * * *

(e) The 1997-crop national marketing

quota is 43.4 million pounds.

4. Section 723.115 is amended by

adding paragraph (e) to read as follows:

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

tobacco.

* * * * *

(e) The 1997-crop national marketing

quota is 9.88 million pounds.

5. Section 723.116 is amended by

adding paragraph (e) to read as follows:

§ 723.116 Sun-cured (type 37) tobacco.

* * * * *

(e) The 1997-crop national marketing

quota is 156,400 pounds.

6. Section 723.117 is amended by

adding paragraph (e) to read as follows:

§ 723.117 Cigar-filler and binder (types 42–

44 and 53–55) tobacco.

* * * * *

(e) The 1997-crop national marketing

quota is 8.4 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 (e) to read as follows:

§ 1464.13 Fire-cured (type 21) tobacco.

* * * * *

(e) The 1997-crop national price

support level is 149.8 cents per pound.

9. Section 1464.14 is amended by

adding paragraph (e) to read as follows:

§ 1464.14 Fire-cured (types 22–23)

tobacco.

* * * * *

(e) The 1997-crop national price

support level is 162.3 cents per pound.

10. Section 1464.15 is amended by

adding paragraph (e) to read as follows:

§ 1464.15 Dark air-cured (types 22–23)

tobacco.

* * * * *

(e) The 1997-crop national price

support level is 139.8 cents per pound.

11. Section 1464.16 is amended by

adding paragraph (e) to read as follows:

§ 1464.16 Virginia sun-cured (type 37)

tobacco.

* * * * *

(e) The 1997-crop national price

support level is 132.6 cents per pound.

12. Section 1464.17 is amended by

adding paragraph (e) to read as follows:

§ 1464.17 Cigar-filler and binder (types 42–

44 and 53–55) tobacco.

* * * * *

(e) The 1997-crop national price

support level is 116.9 cents per pound.

Signed at Washington, DC, on August 10,

1997.

Bruce R. Weber,

Acting Administrator, Farm Service Agency

and Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 97–21796 Filed 8–15–97; 8:45 am]

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 918

[Docket No. FV–97–918–1 FR]

Fresh Peaches Grown in Georgia;

Termination of Marketing Order No.

918

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule; Termination of

Order.

SUMMARY: This rule terminates the

Federal marketing order regulating the

handling of fresh peaches grown in

Georgia (order) and the rules and

regulations issued thereunder. The

Georgia peach industry has not operated

under the order since its provisions

were suspended March 1, 1993. The

order does not reflect current industry

structure and operating procedures and

there is no industry support for

reactivating the order. Therefore, there

is no need to continue this order.

EFFECTIVE DATE: September 17, 1997.

FOR FURTHER INFORMATION CONTACT:

William G. Pimental, Southeast

Marketing Field Office, AMS, USDA,

P.O. Box 2276, Winter Haven, Florida

33883–2276; telephone: (941) 299–4770,

Fax: (941) 299–5169; or Kathleen Finn,

Marketing Order Administration

Branch, F&V, AMS, USDA, room 2530–

S, P.O. Box 96456, Washington, DC

20090–6456; telephone: (202) 720–2491,

Fax: (202) 720–5698. Small businesses

may request information on compliance

with this regulation by contacting: Jay

Guerber, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.