41182 Federal Register / Vol. 63, No. 148 / Monday, August 3, 1998 /Rules and Regulations

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 997 and 998

[Docket Nos. FV98–997–1 IFR and FV98–

998–1 IFR]

Domestically Produced Peanuts;

Decreased Assessment Rate

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This rule decreases the

administrative assessment rate

established for the Peanut

Administrative Committee (Committee)

under Marketing Agreement No. 146

(Agreement) for the 1998–99 and

subsequent crop years from $0.35 to

$0.33 per net ton of assessable peanuts.

The Committee is responsible for local

administration of the Agreement which

regulates the handling of peanuts grown

in 16 States. Authorization to assess

peanut handlers who have signed the

Agreement enables the Committee to

incur expenses that are reasonable and

necessary to administer the program.

The Agreement is effective under the

Agricultural Marketing Agreement Act

of 1937, as amended (Act). The Act also

requires the Department of Agriculture

(Department) to impose the same

administrative assessment rate on

assessable peanuts received or acquired

by handlers who have not signed the

Agreement. The 1998–1999 crop year

covers the period July 1 through June

30. The assessment rate will continue in

effect indefinitely unless modified,

suspended, or terminated.

DATES: Effective August 4, 1998.

Comments received by October 2, 1998,

will be considered prior to issuance of

a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent to the Docket Clerk, Marketing

Order Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; Fax (202) 205–6632.

Comments should reference the docket

numbers and the date and page number

of this issue of the Federal Register and

will be available for public inspection in

the Office of the Docket Clerk during

regular business hours.

FOR FURTHER INFORMATION CONTACT: Jim

Wendland, Marketing Specialist, DC

Marketing Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Programs, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; telephone: (202) 720–

2491, Fax: (202) 205–6632. Small

businesses may request information on

compliance with this regulation by

contacting Jay Guerber, also at the above

address, telephone, and fax number.

SUPPLEMENTARY INFORMATION: This rule

is issued pursuant to the requirements

of the Agricultural Marketing

Agreement Act of 1937, as amended (7

U.S.C. 601–674), hereafter referred to as

the ‘‘Act’’, under Marketing Agreement

No. 146 (7 CFR part 998), and under the

Peanut Non-Signer Program (7 CFR part

997). The marketing agreement and nonsigner program, and the regulations

issued thereunder regulate the quality of

domestically produced peanuts.

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. Farmers stock peanuts received

or acquired by non-signatory handlers

and farmers stock peanuts received or

acquired by handlers signatory to the

Agreement, other than from those

described in § 998.31(c) and (d), are

subject to the same assessment rate. It is

intended that the assessment rates

issued herein will be applicable to all

assessable peanuts beginning July 1,

1998, and continue in effect until

amended, suspended, or terminated.

This rule will not preempt any State or

local laws, regulations, or policies,

unless they present an irreconcilable

conflict with this rule. There are no

administrative procedures which must

be exhausted prior to any judicial

challenge to the provisions of this rule.

This rule decreases the assessment

rate established for the Committee and

non-signer handlers for the 1998–99 and

subsequent crop years from $0.35 to

$0.33 per net ton of assessable peanuts.

The Agreement provides authority for

the Committee, with the approval of the

Department, to formulate an annual

budget of expenses and collect

assessments from handlers to administer

the program. Funds to administer the

Agreement program are paid to the

Committee and are derived from

signatory handler assessments. The

Committee members include nine

handlers and nine producers of peanuts.

They are familiar with the Committee’s

needs and with the costs for goods and

services in their local areas and, thus,

are in a position to formulate an

appropriate budget and assessment rate.

The assessment rate is formulated and

discussed in public meetings. Thus, all

directly affected persons have an

opportunity to participate and provide

input. The handlers of peanuts who are

directly affected have voluntarily signed

the Agreement authorizing the expenses

that may be incurred and the imposition

of assessments.

For the 1996–97 and subsequent crop

years, the Committee recommended,

and the Department approved, an

assessment rate that would continue in

effect from crop year to crop year

indefinitely unless modified,

suspended, or terminated by the

Secretary, upon recommendation and

information submitted by the

Committee or other information

available to the Secretary.

The Committee met on May 27, 1998,

and unanimously recommended for

1998–99 a reduction in the

administrative assessment rate from

$0.35 to $0.33 per net ton of assessable

peanuts, and administrative

expenditures of $495,000. In

comparison, last year’s budgeted

administrative expenditures were

$525,000. The assessment rate of $0.33

is $0.02 less than the rate currently in

effect.

Major expenditures recommended by

the Committee for the 1998–99 crop

year compared with those budgeted for

1997–98 (in parentheses) include:

$58,000 for executive salaries ($55,000),

$43,500 for clerical salaries ($50,000),

$129,000 for compliance officers

salaries ($125,000), $19,000 for payroll

taxes ($18,000), $70,000 for employee

benefits, ($65,000), $40,000 for

committee members travel ($40,000),

$55,000 for compliance officers travel

($60,000), $13,000 for office rent

($19,000), and $10,400 for the audit fee

($10,400).

The Committee discussed alternatives

to this rule, including alternative

expenditure levels but decided that each

of the budgeted expenses was

reasonable and appropriate. It also

discussed the alternative of not

decreasing the assessment rate but

decided it needed to decrease the rate to

reduce handlers’ costs as much as

possible. The Committee also discussed

an even lower rate, but decided that an

assessment rate of less than $0.33 would

not generate the income necessary to

administer the program.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

receipts and acquisitions of farmers

stock peanuts. Farmers stock peanuts

received or acquired by handlers

signatory to the Agreement, other than

those peanuts described in § 998.31(c)

and (d), are subject to the assessments.

Assessments are due on the 15th of the

month following the month in which

the farmers stock peanuts are received

or acquired by signatory handlers.
Federal Register / Vol. 63, No. 148 / Monday, August 3, 1998 /Rules and Regulations 41183

Peanut receipts and acquisitions for the

year under the Agreement are estimated

at 1,500,000 tons, which should provide

$495,000 in assessment income.

Approximately 95 percent of the

domestically produced peanut crop is

handled by handlers who signed the

Agreement. The remaining 5 percent is

handled by non-signer handlers.

The Act provides for mandatory

assessment of farmers stock peanuts

acquired by non-signatory peanut

handlers. Section 608b of the Act

specifies that: (1) Any assessment

(except indemnification assessments)

imposed under the Agreement with

signatory handlers also shall apply to

non-signatory handlers, and (2) such

assessment shall be paid to the

Secretary. Thus, the assessment rate of

$0.33 per net ton of assessable peanuts

also applies to non-signatory handlers of

domestic peanuts.

The assessment rates established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other available

information.

Although these assessment rates are

effective for an indefinite period, the

Committee will continue to meet prior

to or during each crop year to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate for

signatory handlers. The dates and times

of Committee meetings are available

from the Committee or the Department.

Committee meetings are open to the

public and interested persons may

express their views at these meetings.

The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. Further rulemaking will

be undertaken as necessary. The

Committee’s 1998–99 budget and those

for subsequent crop years will be

reviewed and, as appropriate, approved

by the Department.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this rule on small entities. Accordingly,

AMS has prepared this initial regulatory

flexibility analysis.

The purpose of the RFA is to fit

regulatory actions to the scale of

business subject to such actions in order

that small businesses will not be unduly

or disproportionately burdened. There

are approximately 80 peanut handlers

who are subject to regulation under the

Agreement or the non-signer program

and approximately 25,000 commercial

peanut producers in the 16-State

production area. Small agricultural

service firms, which include handlers,

are defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$5,000,000, and small agricultural

producers are defined as those having

annual receipts of less than $500,000.

Approximately 25 percent of the

signatory handlers, virtually all of the

non-signer handlers, and most of the

producers may be classified as small

entities.

This rule decreases the assessment

rate established for the Committee and

to be collected from handlers for the

1998–99 and subsequent crop years

from $0.35 to $0.33 per net ton. The rate

is $0.02 less than the 1997–98 rate.

The Committee discussed alternatives

to this rule, including alternative

expenditure levels but decided that each

of the budgeted expenses was

reasonable and appropriate. It also

discussed the alternative of not

decreasing the assessment rate.

However, it decided against this course

of action. The peanut industry has been

in a state of economic decline since

1991, with the Committee attempting to

cut costs where possible. The

Committee’s budget for 1998–99 is

$495,000, $30,000 less than the amount

budgeted for 1997–98. Based on an

estimated 1,500,000 net tons of

assessable peanuts, income derived

from handler assessments during 1998–

99 will be adequate to cover budgeted

expenses.

Major expenditures recommended by

the Committee for the 1998–99 crop

year compared with those budgeted for

1997–98 (in parentheses) include:

$58,000 for executive salaries ($55,000),

$43,500 for clerical salaries($50,000),

$129,000 for compliance officers

salaries ($125,000), $19,000 for payroll

taxes ($18,000), $70,000 for employee

benefits, ($65,000), $40,000 for

committee members travel ($40,000),

$55,000 for compliance officers travel

($60,000), $13,000 for office rent

($19,000), and $10,400 for the audit fee

($10,400).

The Committee reviewed historical

information and preliminary

information pertaining to the 1998–99

crop year. The Department reported

1.463 million acres planted in peanuts

for the 1998 crop. The Committee

projected shipments for the 1998–99

crop year to be 1.5 million net tons.

Based on 1997–98 crop figures, the

approximately $560,000 in total

assessments collected by the Committee

as a percentage of the $932,000,000 total

peanut crop value was only 0.0006

percent. With a decreased assessment

rate, the relationship of total assessment

cost as a percentage of total crop value

is expected to be even smaller for the

1998–99 crop.

This action decreases the

administrative assessment obligation

imposed on all domestic peanut

handlers, whether signers or nonsigners. Assessments are applied

uniformly on all handlers, and some of

the costs may be passed on to

producers. However, decreasing the

assessment rate reduces the burden on

handlers, and may reduce the burden on

producers. In addition, the Committee’s

meeting was widely publicized

throughout the peanut industry and all

interested persons were invited to

attend the meeting and participate in

deliberations on all issues. Like all

Committee meetings, the May 27, 1998,

meeting was a public meeting and all

entities, both large and small, were able

to express views on this issue. Finally,

interested persons are invited to submit

information on the regulatory and

informational impacts of this action on

small businesses.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

peanut handlers. As with all Federal

marketing agreement and order

programs, reports and forms are

periodically reviewed to reduce

information requirements and

duplication by industry and public

sector agencies.

The Department has not identified

any relevant Federal rules that

duplicate, overlap, or conflict with this

rule.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined upon good cause

that it is impracticable, unnecessary,

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect and that good cause

exists for not postponing the effective

date of this action until 30 days after

publication in the Federal Register

because: (1) This action reduces the

1997–98 assessment rate for signer and

non-signer handlers; (2) the Committee

needs to have sufficient funds to pay its

expenses which are incurred on a

continuous basis; (3) the Act requires

the Department to impose an

administrative assessment on assessable

peanuts received or acquired for the
41184 Federal Register / Vol. 63, No. 148 / Monday, August 3, 1998 /Rules and Regulations

account of signatory and non-signatory

handlers; (4) the 1998–99 crop year

began on July 1, 1998, and the

Agreement and the Act require that the

rate of assessment for each crop year

apply to all assessable peanuts received

or acquired during such crop year; (5)

signatory handlers are aware of this

action which was unanimously

recommended by the Committee at a

public meeting and is similar to other

assessment rate actions issued in past

years; and (6) this interim final rule

provides a 60-day comment period, and

all written comments timely received

will be considered prior to finalization

of this rule.

List of Subjects

7 CFR Part 997

Food grades and standards, Peanuts,

Reporting and recordkeeping

requirements.

7 CFR Part 998

Marketing agreements, Peanuts,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR parts 997 and 998 are

amended as follows:

PART 997—PROVISIONS

REGULATING THE QUALITY OF

DOMESTICALLY PRODUCED

PEANUTS HANDLED BY PERSONS

NOT SUBJECT TO THE PEANUT

MARKETING AGREEMENT

1. The authority citation for 7 CFR

parts 997 and 998 continues to read as

follows:

Authority: 7 U.S.C. 601–674.

2. Section 997.101 is revised to read

as follows:

§ 997.101 Assessment rate.

On and after July 1, 1998, an

administrative assessment rate of $0.33

per net ton of assessable farmers stock

peanuts received or acquired by each

non-signatory first handler is

established for peanuts.

PART 998—MARKETING AGREEMENT

REGULATING THE QUALITY OF

DOMESTICALLY PRODUCED

PEANUTS

3. Section 998.409 is revised to read

as follows:

§ 998.409 Assessment rate.

On and after July 1, 1998, an

administrative assessment rate of $0.33

per net ton of farmers stock peanuts

received or acquired other than those

described in § 998.31(c) and (d) is

established for handlers signatory to the

Agreement. Assessments are due on the

15th of the month following the month

in which the farmers stock peanuts are

received or acquired.

Dated: July 28, 1998

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–20641 Filed 7–31–98; 8:45 am]

BILLING CODE 3410–02–P

FARM CREDIT ADMINISTRATION

12 CFR Part 607

RIN 3052–AB83

Assessment and Apportionment of

Administrative Expenses; Technical

Change; Effective Date

AGENCY: Farm Credit Administration.

ACTION: Notice of effective date.

SUMMARY: The Farm Credit

Administration (FCA or Agency),

through the FCA Board (Board), issued

a direct final rule with opportunity for

comment under part 607 on June 24,

1998 (63 FR 34267) that makes technical

amendments to its assessment

regulations in order to conform to the

recently adopted FCA Board policy

statement on its financial institution

rating system. The opportunity for

comment expired on July 24, 1998. The

FCA received no comments and

therefore, the final rule becomes

effective without change. In accordance

with 12 U.S.C. 2252, the effective date

of the final rule is 30 days from the date

of publication in the Federal Register

during which either or both Houses of

Congress are in session. Based on the

records of the sessions of Congress, the

effective date of the regulations is

August 3, 1998.

EFFECTIVE DATE: The regulation

amending 12 CFR part 607 published on

June 24, 1998 (63 FR 34267) is effective

August 3, 1998.

FOR FURTHER INFORMATION CONTACT:

Andrew D. Jacob, Senior Financial

Analyst, Office of Policy and

Analysis, Farm Credit Administration,

McLean, Virginia 22102–5090, (703)

883–4498, TDD (703) 883–4444,

or

Wendy R. Laguarda, Senior Attorney,

Office of General Counsel, Farm

Credit Administration, McLean,

Virginia 22102–5090, (703) 883–4020,

TDD (703) 883–4444.

(12 U.S.C. 2252(a)(9) and (10)).

Dated: July 29, 1998.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 98–20627 Filed 7–31–98; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–NM–210–AD; Amendment

39–10689; AD 98–16–13]

RIN 2120–AA64

Airworthiness Directives; Boeing

Model 747 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that is

applicable to certain Boeing Model 747

series airplanes. This action requires a

one-time inspection for missing

fasteners of the splice fitting of the

forward inner chord of the Body Station

(BS) 2598 bulkhead; and corrective

actions, if necessary. This amendment is

prompted by a report that fasteners were

missing from the splice fitting of the

forward inner chord. The actions

specified in this AD are intended to

prevent accelerated fatigue cracking of

the inner chords of the BS 2598

bulkhead, which could result in

inability of the structure to carry

horizontal stabilizer flight loads, and

consequent reduced controllability of

the airplane.

DATES: Effective August 18, 1998.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of August 18,

1998.

Comments for inclusion in the Rules

Docket must be received on or before

October 2, 1998.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–114,

Attention: Rules Docket No. 98–NM–

210–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

The service information referenced in

this AD may be obtained from Boeing

Commercial Airplane Group, P.O. Box

3707, Seattle, Washington 98124–2207.

This information may be examined at

the FAA, Transport Airplane

Directorate, 1601 Lind Avenue, SW.,

Renton, Washington; or at the Office of