Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 /Rules and Regulations 41711

and discussed this issue. That meeting

was also a public meeting and both large

and small entities were able to

participate and express their views.

A proposed rule concerning this

action was published in the Federal

Register on June 17, 1998 (63 FR 33010).

Copies of the rule were mailed to all

Board members and almond handlers.

Finally, the rule was made available

through the Internet by the Office of the

Federal Register. A 30-day comment

period ending July 17, 1998, was

provided to allow interested persons to

respond to the proposal.

One comment was received in

response to the proposed rule. The

commenter, a marketing cooperative

representing California almond growers,

supported the proposal. The commenter

believes that denying or revoking

accepted user status is the principal

method that the Board has to ensure that

only users that dispose of inedible

almonds in proper channels are

approved by the Board.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Board, the comment

received, 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.

It is further found that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register (5

U.S.C. 553) because the beginning of the

1998–99 crop year is August 1, 1998,

and the rule needs to be in effect as soon

as possible so this action coincides with

the approval cycle for accepted user

applications. Further, handlers are

aware of this rule, which was

recommended at a public meeting. Also,

a 30-day comment period was provided

for in the proposed rule, and one

comment was received which supported

the change.

List of Subjects in 7 CFR Part 981

Almonds, Marketing agreements,

Nuts, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 981 is amended as

follows:

PART 981—ALMONDS GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 981 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 981.442 is amended by

adding a new paragraph (a)(7)(iv) to

read as follows:

§ 981.442 Quality Control.

(a) * * *

(7) * * *

(iv) The Board may deny or revoke

accepted user status at any time if the

applicant or accepted user fails to meet

the terms and conditions of § 981.442,

or if the applicant or accepted user fails

to meet the terms and conditions set

forth in the accepted user application

(ABC Form 34).

* * * * *

Dated: July 30, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable

Programs.

[FR Doc. 98–20913 Filed 8–4–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation

7 CFR Part 1446

RIN: 0560–AF56

Cleaning and Reinspection of Farmers

Stock Peanuts

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Interim rule with request for

comments.

SUMMARY: This rule amends regulations

for the peanut price support program to,

pending comment, ease conditions for

marketing Segregation 3 peanuts by

allowing the peanuts to be

reconditioned and regraded in certain

limited instances. Peanuts are graded as

‘‘Segregation 3’’ peanuts when they are

found by visual inspection to have

Aspergillus flavus (A. flavus) mold. This

rule would allow a farmer whose

peanuts were found at a buying point

inspection to have the mold to reclean

those peanuts at the buying point and

have them visually reinspected within

24 hours. The farmer could obtain such

a re-inspection only once for any given

lot. This rule follows litigation in which

all segments of the industry were

involved and buying point inspection

procedures were at issue. This rule is

issued as an interim rule to allow relief

with respect to the upcoming crop (the

1998 crop) which should come to

market shortly. However, comments on

all inspection options related to the

price support program for peanuts are

solicited and should be offered by all

interested parties.

DATES: Effective August 5, 1998.

Comments must be received on or

before September 4, 1998 to be assured

consideration. Comments regarding

information collection must be received

on or before October 5, 1998 to be

assured consideration.

ADDRESSES: Submit comments on the

interim rule to: Director, Tobacco and

Peanuts Division, Farm Service Agency,

U.S. Department of Agriculture, STOP

0514, 1400 Independence Avenue, SW,

Washington, D.C., 20250–0514. 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:

David Kincannon, (202) 720–7914.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

For purposes of Executive Order

12866, this rule has been determined to

be not significant and has not been

reviewed by the Office of Management

and Budget (OMB).

Regulatory Flexibility Act

The Regulatory Flexibility Act is not

applicable to this interim rule because

the Commodity Credit Corporation 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 matter of this rule.

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.

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.

Federal Assistance Program

The title and number of the Federal

Assistance Program, as found in the

Catalog of Federal Domestic Assistance,

to which this interim rule applies are:

Commodity Loans and Purchases—

10.051.

Executive Order 12372

This program 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
41712 Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 /Rules and Regulations

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 rule do

not preempt State laws to the extent that

such laws are consistent with the

provisions of this rule. Before any legal

action is brought regarding

determinations made under provisions

of 7 CFR part 1446, the administrative

appeal provisions set forth at 7 CFR

parts 11 and 780 must be exhausted.

National Appeals Division Rules of

Procedure

The procedures set out in 7 CFR parts

11 and 780 apply to appeals of adverse

decisions made under the regulations

adopted in this notice.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1995, CCC will

forward a regular submission of this

information collection request to OMB

for the approval of increased reporting

burden necessary for the administration

of the peanut program.

Title: Peanut Program.

OMB Control Number: 0560–0006.

Type of Request: Reinstatement and

Revision of a previously approved

information collection.

Abstract: The peanut price support

program is made available through the

authority granted the Secretary of

Agriculture under the Agricultural

Adjustment Act of 1938, as amended,

and the Agriculture Act of 1949, as

amended. The Federal Agriculture

Improvement and Reform Act of 1996

amended the peanut price support

program effective for the 1996 through

2002 crop years.

Under the provisions of the peanut

price support program FSA allocates

peanut quota to States based on the

peanut quota allocated to the State in

1995. Each farm eligible for peanut

quota allocation receives a quota based

on the increase or decrease in the States

quota. Provisions of the peanut program

requires FSA to administer the transfer

of peanut quota between farm, the

allocation of temporary seed quota, the

marketing, inspection and grading

peanuts of all peanuts, making

warehouse-and farm-stored loans, and

the contracting and disposition of

additional peanuts (peanuts grown in

excess of a farms quota allocation).

The public reporting burden imposed

by the peanut price support program

requires peanut producers to document

the acreage planted to peanuts, peanut

quota transferred to another farm and to

an out-of-county farm, production and

disposition of peanuts. Peanut handlers

are required to report the grade factors

for peanuts inspected at time of delivery

to buying points, purchase of noninspected peanuts, peanuts used for

breeder seed or foundation seed, and

peanuts used for experimental purposes.

This information collected allows

FSA, in accordance with statutory

provisions, to account for peanut

production for each farm, allocate

temporary seed quota to eligible

producers, and monitor the disposition

of additional peanuts to assure only

quota peanuts are used in the domestic

market. In addition, this information

collection allows the CCC to administer

the warehouse-and farm-stored peanut

loan program and to assure that quota

peanuts are supported at the mandated

price support rate.

Estimate of Burden: Public reporting

burden for this information collection is

estimated to average .68 hours per

response .

Respondents: Peanut Producers.

Estimated Number of Respondents:

51,250.

Estimated Number of Responses per

Respondent: 15.

Estimated Total Annual Burden on

Respondents: 306,690 hours.

Proposed topics for comment include:

( a) Whether the continued collection of

information is necessary for the proper

performance of the functions of the

agency, including whether the

information will have practical utility;

(b) the accuracy of the CCC’s estimate of

burden including the validity of the

methodology and assumptions used; (c)

enhancing the quality, utility, and

clarity of the information collected; or

(d) minimizing the burden of the

collection of the information on those

who are to respond, including the use

of appropriate automated, electronic,

mechanical, or other technological

collection techniques or other forms of

information technology. Comments

should be sent to the Desk Officer for

Agriculture, Office of Information and

Regulatory Affairs, Office of

Management and Budget, Washington,

D.C. 20250–0517. All comments will

become a matter of public record.

OMB is required to make a decision

concerning the collection of information

contained in these interim regulations

between 30 and 60 days after

publication of this document in the

Federal Register. Therefore, a comment

to OMB is best assured of having its full

effect if OMB receives it within 30 days

of publication.

Background

This rule addresses an amendment to

the peanut poundage quota regulations

at 7 CFR Part 1446 with regard to

determining Segregation 3 peanuts and

addresses a matter which has been at

issue in recent litigation under the name

of Ray T. Boyd et al. v. Glickman, USDC

M.D. Ala., Southern Div., Civil Action

No. 98–A–83 S. In order to provide

some relief with respect to the matter at

issue in that proceeding, this rule

modifies the definition of Segregation 3

peanuts found in § 1446.103 by

providing that peanuts found to have

visible Aspergillus flavus (A. flavus)

mold upon a visual inspection at a

buying point may be reconditioned and

regraded in certain limited instances.

For many years peanuts found to have

visible A. flavus mold were required to

be marketed as additional loan peanuts

or as quota peanuts returned to the farm

for seed. Although no recleaning was

allowed, the impact of the inspection on

farmers was mitigated by the availability

of ‘‘disaster transfers’’ which allowed a

transfer of additional loan peanuts to a

quota loan pool. Those transfers did not

change the ultimate use of the peanuts

but did allow the farmer to receive a

return close to that for quota peanuts if

the farmer otherwise would have

unused quota.

The Federal Agriculture Improvement

and Reform Act of 1996 (1996 Act)

substantially limited the quantity and

price on such transfers but did not

mandate the particular procedures by

which peanuts would be classified as

Segregation 3 peanuts. In order to

mitigate possible harm to individual

farmers with Segregation 3 peanuts,

farmers whose peanuts are found to

contain visible A. flavus mold would be

allowed by this interim rule, pending

comment, to have the peanuts

reconditioned by removing foreign

material and loose shelled kernels

(LSK’s) at the buying point and regraded

one time only in accordance with

directions to be issued by the Director

of the Tobacco and Peanuts Division of

the Farm Service Agency.

As defined by 7 CFR part 1446,

farmers stock peanuts are picked or

threshed peanuts produced in the

United States which have not been

changed (except for removal of foreign

material, loose shelled kernels (LSK’s),

and excess moisture) from the condition

in which picked or threshed peanuts are

customarily marketed by producers,

plus any LSK’s that are removed from

farmers stock peanuts before such

farmers stock peanuts are marketed.

Accordingly, the only permissible

reconditioning of farmers stock peanuts
Federal Register / Vol. 63, No. 150 /Wednesday, August 5, 1998 /Rules and Regulations 41713

is cleaning to remove foreign material

and LSK’s. Any LSK’s removed by

cleaning must be accounted for as will

be specified by the Director.

Comments on this interim rule are

requested and will be considered

including comments directed at the

impact of this rule on other farmers

because of possible losses that could

occur on peanuts that are regraded but

after being pledged as collateral for a

price support loan at the higher quota

level are not found attractive to buyers

of peanuts for quota peanut uses. It has

been determined for the present that the

retesting will not be made using

chemical testing because of the cost

involved, and the lack of standards for

chemical testing at that stage of the

marketing process. Insofar as questions

of wholesomeness are concerned

chemical testing is conducted at a later

stage of the marketing process for the

purposes of insuring such

wholesomeness. The inspection

addressed in this rule is for purposes of

making certain price support value

determinations in the context of

operating a program that supports

peanuts throughout the country.

However, comments concerning

chemical testing during the inspection

for incoming producer peanuts at

buying points will be carefully

considered in determining whether to

amend the interim rule prior to making

that rule final. Such comments should

address the efficacy of such testing,

standards for such testing and the

assignment of costs for such testing.

That is, all interested parties should

provide comments expressing their view

on whether the option contained in the

interim rule, or some other option,

should be selected. All options will be

considered.

List of Subjects in 7 CFR part 1446

Loan programs—agriculture,

Reporting and recordkeeping

requirements

For the reasons set out in the

preamble, 7 CFR part 1446 is amended

as follows:

PART 1446—PEANUTS

1. The authority citation is amended

to read as follows:

Authority: 7 U.S.C. 7271; 15 U.S.C. 714b

and 714c

2. In § 1446.103 a new definition of

‘‘Director’’ is added in its proper

alphabetical sequence and in the

definition of Segregations, paragraph (3)

is revised to read as follows:

§ 1446.103 Definitions

* * * * *

Director. The Director, or Acting

Director, Tobacco and Peanuts Division,

Farm Service Agency, U.S. Department

of Agriculture.

* * * * *

Segregations. * * *

(3) Segregation 3. Segregation 3

peanuts are farmers stock peanuts

which, upon visible inspection, are

found to contain Aspergillus flavus

mold: Provided, further, however, that,

in accordance with such written

instructions as the Director may issue,

the Director shall permit producers at

approved buying points as specified by

the Director to have a Segregation 3 lot

reconditioned, one time only, so long as

the reconditioning is performed at the

buying point where the peanuts were

initially delivered, and then reinspected

visually. Such reinspection may not

occur more than 24 hours from the

initial inspection except as permitted by

the Director and the second grade shall

be considered the final grade for the

farmers stock peanuts.

* * * * *

Signed at Washington, D.C., on July 30,

1998.

Keith Kelly,

Executive Vice President, Commodity Credit

Corporation.

[FR Doc. 98–20896 Filed 7–31–98; 2:59pm]

BILLING CODE 3410–05–P

DEPARTMENT OF AGRICULTURE

Rural Housing Service

Rural Business-Cooperative Service

Rural Utilities Service

Farm Service Agency

7 CFR Part 1951

RIN 0572–AB23

Servicing of Community and Insured

Business Programs Loans and Grants

AGENCIES: Rural Housing Service; RuralBusiness Cooperative Service; Rural

Utilities Service; and Farm Service

Agency, USDA.

ACTION: Final rule.

SUMMARY: The Rural Utilities Service

(RUS) hereby amends the regulations

utilized to service loans and grants. The

final rule will permit loan

reamortization with interest rate

adjustment for eligible delinquent

borrowers. The final rule will provide

debt relief to troubled borrowers and

encourage these organizations to remain

in operation and resume scheduled loan

payments. The final rule will also

provide RUS greater flexibility to

service problem loans and permit a

viable, cost effective alternative to debt

write-offs.

EFFECTIVE DATE: August 5, 1998.

FOR FURTHER INFORMATION CONTACT: John

Purcell, Rural Utilities Service, Stop

1570, 1400 Independence Ave. SW,

Washington, DC 20250, telephone (202)

720–9634.

SUPPLEMENTARY INFORMATION:

Classification

This rule has been determined to be

not significant for purposes of Executive

Order 12866 and, therefore, has not

been reviewed by the Office of

Management and Budget.

Regulatory Flexibility Act

Pursuant to § 605(b) of the Regulatory

Flexibility Act, 5 U.S.C. 605(b), the head

of the Agencies certify that this rule will

not have a significant economic impact

on a substantial number of small

entities.

Intergovernmental Review

This program is listed in the Catalog

of Federal Domestic Assistance under

number 10.760, Water and Waste

Disposal Systems for Rural

Communities, subject to the provisions

of Executive Order 12372 which

requires intergovernmental consultation

with State and local officials.

Environmental Impact Statement

This action has been reviewed in

accordance with 7 CFR part 1940,

subpart G, ‘‘Environmental Program.’’ It

has been determined that the action

does not constitute a major Federal

action significantly affecting the quality

of the human environment and in

accordance with the National

Environmental Policy Act of 1969, Pub.

L. 91–190, an Environmental Impact

Statement is not required.

Civil Justice Reform

This regulation has been reviewed

under Executive Order 12988, Civil

Justice Reform. When this regulation is

adopted: (1) unless otherwise

specifically provided all State and local

laws and regulations that are in conflict

with this rule will be preempted; (2) no

retroactive effect will be given to this

rule except as specifically prescribed in

the rule; and (3) administrative

proceedings of the National Appeals

Division (7 CFR part 11) must be

exhausted before bringing suit.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act (44 U.S.C. 3507), the

information collection requirements

included in this rule have been