[Federal Register Volume 65, Number 210 (Monday, October 30, 2000)]
[Rules and Regulations]
[Pages 64589-64594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27716]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

Commodity Credit Corporation

7 CFR Part 1464

RIN 0560-AF86


2000 Marketing Quotas and Price Support Levels for 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) Tobacco

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

ACTION: Final rule.

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SUMMARY: The purpose of this rule is to codify the national marketing 
quotas and price support levels for the 2000 crops for several kinds of 
tobacco announced by press release on March 1, 2000.
    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.

EFFECTIVE DATE: March 1, 2000.

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 <a href="/cdn-cgi/l/email-protection#e6b28794859c9fa6918285c8809587c893958287"><span class="__cf_email__" data-cfemail="7d291c0f1e07043d0a191e531b0e1c53080e191c">[email protected]</span></a>. Copies of the cost-benefit assessment 
prepared for this rule can be obtained from Mr. Tarczy.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule 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.
    In accordance with section 312 of the 1938 Act, for tobaccos other 
than flue-cured tobacco and burley tobacco, the Secretary of 
Agriculture is required to proclaim not later than March 1 of any 
marketing year (MY) a national marketing quota for those tobaccos for 
which marketing quotas have been approved in the prior 3 years. A 
referendum on quotas for each kind is held every 3 years.
    On March 1, 2000, the Secretary determined and announced the 
national marketing quotas and price support levels for the 2000 crops 
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. A number of related 
determinations were made at the same time which this final rule 
affirms. And, because the 1999 MY was the last of 3 consecutive years 
of quota for fire-cured (types 22-23) and dark air-cured (types

[[Page 64590]]

35-36) tobacco, the Secretary also announced that referenda would be 
conducted by mail with respect to those tobaccos.
    During the period March 20-24, 2000, eligible producers of fire-
cured (types 21-23) and dark air-cured (types 35-36) tobaccos voted in 
separate referenda to determine whether such producers approved 
marketing quotas for the 2000, 2001, and 2002 MYs for these tobaccos. 
Of the producers voting, 92.0 percent favored marketing quotas for 
fire-cured (types 21-23) tobacco and 90.4 percent favored quotas for 
dark air-cured (types 35-36) tobaccos. Accordingly, quotas and price 
support for both fire-cured (types 21-23) and dark air-cured (types 35-
36) tobaccos are in effect for the 2000 though 2002 MYs.
    Quotas for the other tobaccos covered by this notice were approved 
in referenda and are still in effect.
    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 2000 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. 99-272, 
the price support level announcements do not require prior rulemaking. 
For the 2000 crops, the price support announcements were made on March 
1, 2000, at the same time the quota announcements were made. Quota and 
price support determinations for burley and flue-cured 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.

Press Release

    On February 14, 2000, a press release was issued in which 
interested persons were requested to comment with respect to setting 
quotas for the kinds of tobacco addressed in this rule.

Discussion of Comments Received From Press Release

    Fifteen written responses were received during the comment period 
which ended March 1, 2000. A summary of these comments by kinds of 
tobacco follows:
    (1) Fire-cured (type 21) tobacco. One comment was received, 
recommending a 15-percent reduction in 2000 quotas.
    (2) Fire-cured (types 22-23) tobacco. Five comments were received.
    Recommendations ranged from a 5-percent to a 7\1/2\-percent 
increase in MY 2000 quotas.
    (3) Dark air-cured (types 35-36) tobacco. Six comments were 
received. All recommended a 5-percent increase in the quota.
    (4) Virginia sun-cured (type 37) tobacco. One comment was received, 
recommending no change in quota.
    (5) Cigar-filler and binder (types 42-44 and 53-55) tobacco. Two 
comments were received. One recommended a 15-percent reduction in 
quotas, while the other recommended a 20-percent reduction.

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 are 
the most reliable data available, the following determinations were 
made for the five kinds of tobacco.

(1) Fire-Cured (Type 21) Tobacco

    The average annual quantity of fire-cured (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 1999 MY was 
approximately 1.0 million pounds (farm sales weight basis). The average 
annual quantity produced in the United States and exported from the 
United States during the 10 MYs preceding the 1999 MY was 1.7 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 1.62 million pounds. 
Application of the formula prescribed by section 301(b)(14)(B) of the 
1938 Act results in a reserve supply level of 4.8 million pounds (farm 
sales weight basis).
    Manufacturers and dealers reported stocks held on October 1, 1999, 
of 2.7 million pounds. The 1999 crop is estimated to be 2.5 million 
pounds.

[[Page 64591]]

Therefore, total supply for the 1999 MY is 5.2 million pounds. During 
the 1999 MY, it is estimated that disappearance will total 
approximately 2.1 million pounds. Deducting this disappearance from 
total supply results in a 2000 MY beginning stock estimate of 3.1 
million pounds.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 2000, is 1.7 million pounds. This represents 
the quantity that may be marketed which will make available during the 
2000 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 2000 national 
marketing quota of 1.782 million pounds is necessary to make available 
production of 1.7 million pounds. As permitted by section 312(b) of the 
1938 Act, it was further determined that the 2000 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 aging purposes for this tobacco, and the possibility 
of changes in demand over expected demand. Thus, the national marketing 
quota for the 2000 crop is 2.138 million pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
2000 national marketing quota of 2.138 million pounds by the 1995-99, 
5-year national average yield of 1,566 pounds per acre results in a 
2000 national acreage allotment of 1,365.26 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 0.85 is determined by dividing the national 
acreage allotment for the 2000 MY, less a national reserve of 5.58 
acres, by the total of the 2000 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 fire-cured (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 1999 MY was 
approximately 19.8 million pounds (farm sales weight basis). The 
average annual quantity produced in the United States and exported 
during the 10 MYs preceding the 1999 MY was 15.6 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 29.9 million pounds, and a normal 
year's exports have been determined to be 19.0 million pounds. 
Application of the formula prescribed by section 301(b)(14)(B) of the 
1938 Act results in a reserve supply level of 119.3 million pounds 
(farm sales weight basis).
    Manufacturers and dealers reported stocks held on October 1, 1999, 
of 86.8 million pounds. The 1999 crop is estimated to be 34.0 million 
pounds. Therefore, total supply for the 1999 MY is 120.8 million 
pounds. During the 1999 MY, it is estimated that disappearance will 
total approximately 40.0 million pounds. Deducting this disappearance 
from total supply results in a 2000 MY beginning stock estimate of 86.8 
million pounds.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 2000, is 32.5 million pounds. This represents 
the quantity that may be marketed that will make available during the 
2000 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 2000 national marketing 
quota of 35.75 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 2000 
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 2000 crop is 
42.9 million pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
2000 national marketing quota of 42.9 million pounds by the 1995-99, 5-
year average yield of 2,494 pounds per acre results in a 2000 national 
acreage allotment of 17,201.28 acres.
    Pursuant to the provisions of section 313(g) of the 1938 Act, a 
national acreage factor of 1.075 is determined by dividing the national 
acreage allotment for the 2000 MY, less a national reserve of 37.49 
acres, by the total of the 2000 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 1999 MY was 
approximately 9.1 million pounds. The average annual quantity produced 
in the United States and exported from the United States during the 10 
MYs preceding the 1999 MY was 1.2 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 11.3 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 35.3 million pounds.
    Manufacturers and dealers reported stocks held on October 1, 1999, 
of 24.0 million pounds. The 1999 crop is estimated to be 10.6 million 
pounds. Therefore, total supply for the 1999 MY is 34.6 million pounds. 
During the 1999 MY, it is estimated that disappearance will total 
approximately 9.2 million pounds. Deducting this disappearance from 
total supply results in a 2000 MY beginning stock estimate of 25.4 
million pounds.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 2000, is 9.9 million pounds. This represents 
the quantity that may be marketed that will make available during the 
2000 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 
10.625 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 2000 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 2000 MY of 12.75 million pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
2000 national marketing quota of 12.75 million pounds by the 1995-99, 
5-year average yield of 2,187 pounds per acre results in

[[Page 64592]]

a 2000 national acreage allotment of 5,829.90 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 1999 MY, less a national reserve of 28.61 
acres, by the total of the 2000 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.

(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 1999 MY was 
approximately 60,000 pounds. The average annual quantity produced in 
the United States and exported from the United States during the 10 MYs 
preceding the 1999 MY was approximately 100,000 pounds (farm sales 
weight basis). Both domestic use and exports are erratic. Because of 
these considerations, a normal year's domestic consumption has been 
determined to be 79,000 pounds, and a normal year's exports have been 
determined to be 17,850 pounds. Application of the formula prescribed 
by section 301(b)(14)(B) of the 1938 Act results in a reserve supply 
level of 259,000 pounds.
    Manufacturers and dealers reported stocks held on October 1, 1999, 
of 50,000 pounds. The 1999 crop is estimated to be 160,000 pounds. 
Therefore, total supply for the 1999 MY is 210,000 pounds. During the 
1999 MY, it is estimated that disappearance will total approximately 
80,000 pounds. Deducting this disappearance from total supply results 
in a 2000 MY beginning stock estimate of 130,000 pounds.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 1999, is 129,000 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 three-quarters of 
the announced national marketing quota is expected to be produced. 
Accordingly, it has been determined that a 2000 national marketing 
quota of 171,000 pounds is necessary to make available production of 
129,000 pounds. Thus, the national marketing quota for the 2000 crop is 
171,000 pounds.
    In accordance with section 313(g) of the 1938 Act, dividing the 
2000 national marketing quota of 171,000 pounds by the 1995-99, 5-year 
average yield of 1,407 pounds per acre results in a 2000 national 
acreage allotment of 121.54 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 2000 MY, less a national reserve of 0.58 
acres, by the total of the 2000 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 cigar-filler 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 
1999 MY was approximately 10.3 million pounds. The average annual 
quantity produced in the United States and exported from the United 
States during the 10 MYs preceding the 1999 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 5.2 million pounds, and a normal year's exports 
have been determined to be 70,000 pounds. Application of the formula 
prescribed by section 301(b)(14)(B) of the 1938 Act results in a 
reserve supply level of 15.1 million pounds.
    Manufacturers and dealers reported stocks held on October 1, 1999, 
of 14.3 million pounds. The 1999 crop is estimated to be 2.8 million 
pounds. Therefore, total supply for the 1999 MY is 17.1 million pounds. 
During the 1999 MY, it is estimated that disappearance will total about 
5.0 million pounds. Deducting this disappearance from total supply 
results in a 2000 MY beginning stock estimate of 12.1 million pounds.
    The difference between the reserve supply level and the estimated 
carryover on October 1, 2000, is 3.0 million pounds. This represents 
the quantity that may be marketed that will make available during the 
2000 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 2000 national marketing 
quota of 3.64 million pounds is necessary to make available production 
of 3.0 million pounds. This results in a 2000 national marketing quota 
of 3.64 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 2000 
quota will be less than the 1999 crop quota.
    In accordance with section 313(g) of the 1938 Act, dividing the 
2000 national marketing quota of 3.64 million pounds by the 1995-99, 5-
year average yield of 2,139 pounds per acre results in a 2000 national 
acreage allotment of 1,701.73 acres.
    Pursuant to the provisions of section 313(g), of the 1938 Act, a 
national factor of 0.825 is determined by dividing the national acreage 
allotment for the 2000 MY, less a national reserve of 6.57 acres, by 
the total of the 2000 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 the producer referendum, marketing quotas 
shall be in effect for the 2000 MY for both fire-cured (types 21-23) 
and dark air-cured (types 35-36) tobaccos. In separate referenda held 
March 20-24, 2000, 92.0 percent of fire-cured producers and 90.4 
percent of dark air-cured producers voted in favor of quotas.

                             Referendum Data
------------------------------------------------------------------------
                                    Total                          % Yes
         Kind of tobacco            votes    Yes votes   No votes  votes
------------------------------------------------------------------------
Fire-cured (types 21-23)........      5,229      4,809        420  92.0
Dark Air-cured (types 35-36)....      5,295      4,785        510  90.4
------------------------------------------------------------------------


[[Page 64593]]

Price Support

Statutory Provisions

    Section 106(f)(6)(A) of the 1949 Act provides that the level of 
support for the 2000 crop of a kind of tobacco (other than flue-cured 
and burley) shall be the level in cents per pound at which the 1999 
crop of such kind of tobacco was supported, plus or minus, as 
appropriate, the amount by which the basic support level for the 2000 
crop, as it would otherwise be determined under section 106(b) of the 
1949 Act, is greater or less than the support level for the 1999 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 1999 crops of various 
kinds of tobacco, which were determined in accordance with section 
106(f)(6)(A) of the 1949 Act, are as follows:

------------------------------------------------------------------------
                                                         Support level
                    Kind and type                      (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
------------------------------------------------------------------------

    For the 2000 crop year:
    (1) Average parity indexes for calendar year periods 1996-1998 and 
1997-1999 are as follows:

------------------------------------------------------------------------
             Year                 Index            Year           Index
------------------------------------------------------------------------
1996..........................    1,531   1997.................    1,574
1997..........................    1,574   1998.................    1,532
1998..........................    1,532   1999.................    1,537
Average.......................    1,546   Average..............    1,548
------------------------------------------------------------------------

    (2) Average parity index, calendar year 1959 = 298.
    (3) 1999 ratio of 1,546 to 298 = 5.19; 2000 ratio of 1,548 to 298 = 
5.19.
    (4) Ratios times 1959 support levels are as follows:

----------------------------------------------------------------------------------------------------------------
                                         1959 support           Basic support level \1\
                                            level       --------------------------------------   Increase from
      Kind and type of tobacco       -------------------                                          1999 to 2000
                                         ( cents/lb.)    1999 ( cents/lb.)  2000 ( cents/lb.)
----------------------------------------------------------------------------------------------------------------
Fire-cured (type 21)................               38.8              200.2              200.2                  0
Fire-cured (types 22-23)............               38.8              200.2              200.2                  0
Dark air-cured (types 35-36)........               34.5              178.0              178.0                  0
Virginia sun-cured (type 37)........               34.5              178.0              178.0                  0
Cigar-filler and binder (types 42-                 28.6              147.6              147.6                 0
 44, 53-55).........................
----------------------------------------------------------------------------------------------------------------
\1\ 1999 ratio is 5.19, 2000 ratio is 5.19.

    Accordingly, the following price support determinations were 
announced on March 1, 2000, for the 2000 crops of the tobaccos which 
are the subject of this notice:

------------------------------------------------------------------------
                                                         Support level
               Kind and type of tobacco                (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
------------------------------------------------------------------------

List of Subjects

7 CFR Part 723

    Acreage allotments, Marketing quotas, Penalties, Reporting and 
recordkeeping requirements, Cigarettes.

7 CFR Part 1464

    Price supports, Tobacco.

    Accordingly, 7 CFR parts 723 and 1464 are amended to read as 
follows:

[[Page 64594]]

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 (h) to read as 
follows:


Sec. 723.113  Fire-cured (type 21) tobacco.

* * * * *
    (h) The 2000-crop national marketing quota is 2.138 million pounds.
    3. Section 723.114 is amended by adding paragraph (h) to read as 
follows:


Sec. 723.114  Fire-cured (types 22-23) tobacco.

* * * * *
    (h) The 2000-crop national marketing quota is 42.9 million pounds.
    4. Section 723.115 is amended by adding paragraph (h) to read as 
follows:


Sec. 723.115  Dark air-cured (types 35-36) tobacco.

* * * * *
    (h) The 2000-crop national marketing quota is 12.75 million pounds.
    5. Section 723.116 is amended by adding paragraph (h) to read as 
follows:


Sec. 723.116  Sun-cured (type 37) tobacco.

* * * * *
    (h) The 2000-crop national marketing quota is 171,000 pounds.
    6. Section 723.117 is amended by adding paragraph (h) to read as 
follows:


Sec. 723.117  Cigar-filler and binder (types 42-44 and 53-55) tobacco.

* * * * *
    (h) The 2000-crop national marketing quota is 3.64 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 (h) to read as 
follows:


Sec. 1464.13  Fire-cured (type 21) tobacco.

* * * * *
    (h) The 2000-crop national price support level is 155.9 cents per 
pound.
    9. Section 1464.14 is amended by adding paragraph (h) to read as 
follows:


Sec. 1464.14  Fire-cured (types 22-23) tobacco.

* * * * *
    (h) The 2000-crop national price support level is 171.6 cents per 
pound.
    10. Section 1464.15 is amended by adding paragraph (h) to read as 
follows:


Sec. 1464.15  Dark air-cured (types 35-36) tobacco.

* * * * *
    (h) The 2000-crop national price support level is 148.1 cents per 
pound.
    11. Section 1464.16 is amended by adding paragraph (h) to read as 
follows:


Sec. 1464.16  Virginia sun-cured (type 37) tobacco.

* * * * *
    (h) The 2000-crop national price support level is 138.0 cents per 
pound.
    12. Section 1464.17 is amended by adding paragraph (h) to read as 
follows:


Sec. 1464.17  Cigar-filler and binder (types 42-44 and 53-55) tobacco.

* * * * *
    (h) The 2000-crop national price support level is 123.8 cents per 
pound.

    Signed at Washington, DC, on October 20, 2000.
Keith Kelly,
Administrator, Farm Service Agency and Executive Vice President, 
Commodity Credit Corporation.
[FR Doc. 00-27716 Filed 10-27-00; 8:45 am]
BILLING CODE 3410-05-P


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