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

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new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

15599

Vol. 62, No. 63

Wednesday, April 2, 1997

DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 723

RIN 0560–AF14

Special Combinations for Flue-Cured

Tobacco Allotments and Quotas

AGENCY: Farm Service Agency, USDA.

ACTION: Interim rule with request for

comments.

SUMMARY: This rule provides for special,

but highly limited, combinations of fluecured tobacco allotments and quotas of

farms having production flexibility

contracts under the Federal Agriculture

Improvement and Reform Act of 1996

(1996 Act) with farms without

production flexibility contracts; and, for

burley tobacco, an exemption to the loss

of quota on farms with less than 1,000

pounds of quota when the farm would

otherwise meet the requirements for a

farm combination but for the existence

of a production flexibility contract. Also

this rule corrects certain technical

references.

DATES: Effective April 2, 1997.

Comments must be received by May 2,

1997 to be assured of consideration.

ADDRESSES: Submit comments on the

interim rule to: Director, Tobacco and

Peanuts Division, USDA, FSA, STOP

0514, 1400 Independence Avenue SW,

Washington, DC 20250–0514.

Comments may be faxed to 202–690–

2298. All written submissions made

pursuant to this rule will be made

available for public inspection in Room

5750 South Building, USDA, between

the hours of 8:15 a.m. and 4:45 p.m.,

during regular Federal workdays.

FOR FURTHER INFORMATION CONTACT:

Michael D. Thompson, Tobacco Branch,

Tobacco and Peanuts Division, USDA,

FSA, STOP 0514, 1400 Independence

Avenue SW, Washington, DC 20250–

0514, telephone 202–720–4318.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

not significant and therefore was not

reviewed by OMB under Executive

Order 12866.

Regulatory Flexibility Act

The Regulatory Flexibility Act is not

applicable to this interim rule since the

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 rule making with respect to

the subject matter of this rule.

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.

Environmental Evaluation

It has been determined by an

environmental evaluation that this

action will have no significant impact

on the quality of the human

environment. Therefore, neither an

environmental assessment nor an

environmental impact statement is

needed.

Executive Order 12372

This activity is not subject to the

provisions of Executive Order 12372,

which requires intergovernmental

consultation with State and local

officials. See the notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115 (June 24, 1983).

Executive Order 12988

This interim rule has been reviewed

in accordance with Executive Order

12988. The provisions of this interim

rule are not retroactive and preempt

State laws to the extent that such laws

are inconsistent with the provisions of

this interim rule. Before any legal action

is brought regarding determinations

made under provisions of 7 CFR part

723, the administrative appeal

provisions set forth at 7 CFR part 780

and 7 CFR part 711, as applicable, must

be exhausted.

Paperwork Reduction Act

This interim rule does not contain

new or revised information collection

requirements that require approval by

OMB under the Paperwork Reduction

Act (44 U.S.C. 3507 et seq.). The

information collections required in 7

CFR part 723 have previously been

cleared under OMB control number

0560–0058.

Effective Date of Rule

It has been determined for purposes of

all limitations that might otherwise

apply, including any provisions of the

Small Business Regulatory Enforcement

Fairness Act of 1996, that this rule

should be effective immediately. The

nature of this rule is to provide relief to

flue-cured tobacco producers who were

adversely affected by a previous rule

that prohibited the combinations of

certain farms subject to a production

flexibility contract. The planting season

for flue-cured tobacco begins in April

and producers must make planting

decisions for their 1997 crop. Therefore,

it has been determined that delaying the

implementation of this rule would be

unnecessary, impractical, and contrary

to the public interest. Accordingly, the

rule is effective upon publication in the

Federal Register.

Background and Discussion

After enactment of the 1996 Act, the

Department of Agriculture promulgated

regulations which provided, in

conformance with the 1996 Act, for

‘‘production flexibility contracts’’ (PFC).

The 1996 Act provides that farm

reconstitutions, which are handled

under 7 CFR part 718, cannot increase

a PFC farm’s eligibility for marketing

loans under the 1996 Act.

To implement the latter requirement,

regulations were published in the

Federal Register (61 FR 37559, July 18,

1996) that amended § 718.201(a)(1) to

prohibit the combination of land under

a PFC with land not under a PFC.

Because of lease and transfer

restrictions that apply only to flue-cured

tobacco allotments and quotas, farm

combinations have been the accepted

means for producers to consolidate

allotments to provide sufficient planting

flexibility for crop rotations to avoid

disease problems and meet conservation

compliance requirements. Further,

because of an 11.5 percent increase in

the flue-cured tobacco national

marketing quota for 1997 and larger

than normal undermarketings from the

1996 crop, many producers will have

difficulty obtaining sufficient cropland

to produce the 1997 crop. Because the
15600 Federal Register / Vol. 62, No. 63 / Wednesday, April 2, 1997 / Rules and Regulations

planting season for flue-cured tobacco

begins in April, it is urgent that fluecured tobacco producers make their

planting decisions for the 1997 crop.

Therefore, this rule is effective

immediately upon publication in the

Federal Register. It does not appear that

Congress meant, by the production

flexibility contract provisions, to

adversely affect the ability of flue-cured

tobacco producers to conduct normal

operations to produce their crop, except

as such restrictions might be needed to

protect the production flexibility

program. Accordingly, this rule amends the

tobacco regulations in 7 CFR part 723 to

allow the Deputy Administrator to

permit special highly limited

combinations of flue-cured tobacco

allotments and quotas on PFC farms and

non-PFC farms which will be effective

for flue-cured tobacco purposes only.

Such permission will be conditioned

upon the agreement of interested parties

not to use the land on the PFC farm that

otherwise would have been planted to

tobacco to produce a PFC commodity.

The following commodities are PFC

commodities under the 1996 Act: wheat,

corn, grain sorghum, barley, oats,

upland cotton, and rice. Failure to

comply with that agreement will render

the special combination void and can

result in penalties for tobacco

marketings that are in excess of

allowable marketings. The Deputy

Administrator may set other conditions

as necessary to comply with all relevant

statutory schemes. In addition, a related change is made

for burley tobacco in 7 CFR part 723

concerning situations in which, due to

a farm reconstitution by division, a

resulting farm may have less than 1,000

pounds of burley quota. That restriction

is derived from section 379(c) of the

Agricultural Adjustment Act of 1938. In

order to avoid the loss of such quota on

these farms, the quota may be sold,

additional quota purchased, or the farm

combined with another farm owned by

the person so that at least 1,000 pounds

of quota is amassed on the resulting

farm. Here also, because of a PFC

participation, some farm combinations

which would otherwise be permitted,

may no longer be allowed. This rule

allows the Deputy Administrator to

grant an exception to this minimum

quota requirement if the farm could

otherwise be combined with another

farm so that the resulting farm would

meet the 1,000 pound minimum, but

such combination is prohibited because

of PFC participation. Regulations governing the

reconstitutions of farms that were

previously in 7 CFR part 719 are now

found in 7 CFR part 718, subpart C as

a result of a rule published in the

Federal Register on July 18, 1996 (61 FR

37544, July 18, 1996). This interim rule

corrects the references contained in part

723 accordingly.

List of Subjects in 7 CFR Part 723

Acreage allotments, Auction

warehouses, Dealers, Domestic

manufacturers, Marketing quotas,

Penalties, Reconstitutions, Tobacco.

Interim Rule

For the reasons set forth in the

preamble, 7 CFR part 723 is amended as

follows:

1. The authority citation for 7 CFR

part 723 continues to read as follows:

PART 723—[AMENDED]

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, 1377–79, 1421, 1445–1, and

1445–2.

2. Section 723.209 is amended by

adding paragraph (c) to read as follows:

§ 723.209 Determination of acreage

allotments, marketing quotas, and yields for

combined farms.

* * * * *

(c) Special combinations.

Notwithstanding other provisions of this

title, the Deputy Administrator may,

upon proper application and to the

extent deemed consistent with other

obligations, permit, with respect to

allotments and quotas for flue-cured

tobacco, two farms to be considered

combined for purposes of this part and

part 1464 of this title only, even though

one of the farms involved is subject to

a production flexibility contract (PFC)

entered into under the provisions of 7

CFR part 1412. Such farms must

otherwise meet the requirements for

farm combinations in part 718. Such

permission shall be conditioned upon

the agreement of all interested parties

that land on the PFC flue-cured quota

farm that would have been used for the

production of tobacco shall not be used

for the production of any PFC

commodity. A failure to comply with

this provision shall render this special

combination void, retroactive to the date

of original approval. Such action may

result in tobacco acreage in excess of the

allotment and in marketing quota

penalties on any excess marketings of

tobacco. The Deputy Administrator may

set such additional conditions on the

production of tobacco on such farms as

deemed necessary to serve the goals of

the tobacco program and the goals of the

production flexibility contract. The term

‘‘PFC commodity’’ for purposes of this

paragraph means wheat, corn, grain

sorghum, barley, oats, upland cotton,

and rice.

3. Section 723.208 is amended by

adding paragraph (b)(6)(v) to read as

follows:

§ 723.208 Determination of acreage

allotments, marketing quotas, and yields for

divided farms.

* * * * *

(b) * * *

(6) * * *

(v) when the individual tract or farm

with less than 1,000 pounds of quota

could be combined with another tract or

farm with sufficient quota to reach 1,000

pounds but for the existence of a

production flexibility contract on one of

the farms.

* * * * *

§§ 723–723.509 [Amended]

4. Sections 723.101 through 723.509

are amended by removing the numbers

‘‘719’’ each time they appear and adding

in their place ‘‘718’’.

Signed at Washington, DC, on March 25,

1997.

Bruce R. Weber,

Acting Administrator, Farm Service Agency.

[FR Doc. 97–8415 Filed 4–1–97; 8:45 am]

BILLING CODE 3410–05–P

FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Regulations H and K, Docket No. R–0921]

Government Securities Sales

Practices; Correction

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Joint final rule; correction.

SUMMARY: The Office of the Comptroller

of the Currency (OCC), Federal Reserve

System (Board), and the Federal Deposit

Insurance Corporation (FDIC) published

in the Federal Register of March 19,

1997, a document regarding sales

practices concerning government

securities by depository institutions

within their respective jurisdictions.

This document corrects two inadvertent

errors regarding the Board’s

interpretation entitled ‘‘Obligations

concerning institutional customers.’’

DATES: Effective on July 1, 1997.

FOR FURTHER INFORMATION CONTACT:

Lawranne Stewart, Senior Attorney

(202–452–3513), Legal Division, Board

of Governors of the Federal Reserve

System, 20th and C Streets, NW,

Washington, D.C. 20551. For the hearing

impaired only, Telecommunications

Device for the Deaf (TDD), Diane Jenkins

(202–452–3544).

SUPPLEMENTARY INFORMATION: The OCC,

Board and FDIC published their joint