27868 Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Rules and Regulations

The total of the three marketing quota

components for the 1995–96 marketing

year is 566.0 million pounds. In

addition, USDA used the discretionary

authority to reduce the three-component

total by 3 percent because the Secretary

determined that the 1995/96 supply

would be more than ample.

Accordingly, the national marketing

quota for the marketing year beginning

October 1, 1995, for burley tobacco is

549.0 million pounds.

In accordance with section 319(c) of

the 1938 Act, the Secretary is authorized

to establish a national reserve from the

national quota in an amount equivalent

to not more than 1 percent of the

national quota for the purpose of

making corrections in farm quotas

adjusting for inequities, and for

establishing quotas for new farms. The

Secretary has determined that a national

reserve for the 1995 crop of burley

tobacco of 2,187,713 pounds is adequate

for these purposes.

Price Support

Price support is required to be made

available for each crop of a kind of

tobacco for which quotas are in effect,

or for which marketing quotas have not

been disapproved by producers, at a

level determined in accordance with a

formula prescribed in section 106 of the

1949 Act.

With respect to the 1995 crop of

burley tobacco, the level of support is

determined in accordance with sections

106 (d) and (f) of the 1949 Act. Section

106(f)(7)(A) of the 1949 Act provides

that the level of support for the 1995

crop of burley tobacco shall be:

(1) The level, in cents per pound, at

which the 1994 crop of burley tobacco

was supported, plus or minus,

respectively,

(2) An adjustment of not less than 65

percent nor more than 100 percent of

the total, as determined by the Secretary

after taking into consideration the

supply of the kind of tobacco involved

in relation to demand, of:

(A) 66.7 percent of the amount by

which:

(I) The average price received by

producers for burley tobacco on the

United States auction markets, as

determined by the Secretary, during the

5 marketing years immediately

preceding the marketing year for which

the determination is being made,

excluding the year in which the average

price was the highest and the year in

which the average price was the lowest

in such period, is greater or less than:

(II) The average price received by

producers for burley tobacco on the

United States auction markets, as

determined by the Secretary, during the

5 marketing years immediately

preceding the marketing year prior to

the marketing year for which the

determination is being made, excluding

the year in which the average price was

the highest and the year in which the

average price was the lowest in such

period; and

(B) 33.3 percent of the change,

expressed as a cost per pound of

tobacco, in the index of prices paid by

the tobacco producers from January 1 to

December 31 of the calendar year

immediately preceding the year in

which the determination is made.

The difference between the two 5-year

averages (i.e., the difference between (A)

(I) and (II)) is 2.1 cents per pound. The

difference in the cost index from

January 1 to December 31, 1994, is 0.9

cents per pound. Applying these

components to the price support

formula (2.1 cents per pound, two-thirds

weight; 0.9 cents per pound, one-third

weight) results in a weighted total of 1.7

cents per pound. As indicated, section

106 provides that the Secretary may, on

the basis of supply and demand

conditions, limit the change in the price

support level to no less than 65 percent

of that amount. In order to remain

competitive in foreign and domestic

markets, the Secretary used his

discretion to limit the increase to 65

percent of the maximum allowable

increase. Accordingly, the 1995 crop of

burley tobacco will be supported at

172.5 cents per pound, 1.1 cents higher

than in 1994.

List of Subjects

7 CFR Part 723

Acreage allotments, Marketing quotas,

Penalties, Reporting and recordkeeping

requirements, Tobacco.

7 CFR Part 1464

Loan programs—agriculture, Price

support programs, Tobacco, Reporting

and recordkeeping requirements,

Warehouses.

Accordingly, 7 CFR parts 723 and

1464 are amended 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, 1421, 1445–1, and 1445–2.

2. Section 723.112 is amended by

adding paragraph (c) to read as follows:

§ 723.112 Burley (type 31) tobacco.

* * * * *

(c) The 1995-crop national marketing

quota is 549.0 million pounds.

PART 1464—TOBACCO

3. The authority citation for 7 CFR

part 1464 continues to read as follows:

Authority: 7 U.S.C. 1421, 1423, 1441, 1445,

1445–1 and 1445–2; 15 U.S.C. 714b and 714c.

4. Section 1464.19 is amended by

adding paragraph (c) to read as follows:

§ 1464.19 Burley (type 31) tobacco.

* * * * *

(c) The 1995-crop national price

support level is 172.5 cents per pound.

Signed at Washington, DC, on May 21,

1995.

Bruce R. Weber.

Acting Administrator, Consolidated Farm

Service Agency and Acting Executive Vice

President, Commodity Credit Corporation.

[FR Doc. 95–13001 Filed 5–25–95; 8:45 am]

BILLING CODE 3410–05–P

Commodity Credit Corporation

7 CFR Part 1421

RIN 0560–AD67

1995-Crop Peanuts; National Average

Support Levels for Quota and

Additional Peanuts; and Minimum

Commodity Credit Corporation Export

Edible Sale Price for Additional

Peanuts

AGENCY: Commodity Credit Corporation,

USDA.

ACTION: Final rule.

SUMMARY: The purpose of this final rule

is to codify determinations made by the

Secretary of Agriculture (Secretary) with

respect to the 1995 peanut crop: the

national average support level for quota

peanuts of $678.36 per short ton (st); the

national average support level for

additional peanuts of $132 per st; and

the minimum Commodity Credit

Corporation (CCC) export edible sale

price for additional peanuts of $400 per

st. The determinations of the national

average support levels for quota and

additional peanuts were made pursuant

to the statutory requirements of the

Agricultural Act of 1949 (the 1949 Act),

as amended. The determination and

announcement of the minimum CCC

export edible sale price for additional

peanuts is a discretionary action made

to facilitate the negotiation of private

contracts for export edible peanuts.

EFFECTIVE DATE: February 15, 1995.

FOR FURTHER INFORMATION CONTACT: John

A. Craven, Consolidated Farm Service

Agency (CFSA), Room 3744, South

Building, United States Department of

Agriculture, PO. Box 2415, Washington,

DC 20013–2415, Telephone 202–690–

0446.
Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Rules and Regulations 27869

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This final 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

catalogue of Federal Domestic

Assistance, to which this rule applies,

are Commodity Loans and Purchases—

10.051.

Executive Order 12778

This rule has been reviewed in

accordance with Executive Order 12778.

The provisions of this rule do preempt

State law, 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 CCC 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 part 1421

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. 35.

Determinations

This rule is issued pursuant to the

provisions of the 1949 Act.

On February 15, 1995, the Secretary

announced the national average support

levels for 1995-crop quota and

additional peanuts and the minimum

CCC export edible sales price for 1995-

crop additional peanuts.

Section 1017 of the Food Security Act

of 1985, as amended, provides that the

Secretary shall determine the rate of

loans, payments, and purchases for the

1991 through 1995 crops of

commodities without regard to the

requirements for notice and public

participation in rulemaking as

prescribed in 5 U.S.C. 553 or any

directive of the Secretary.

A. Quota Peanuts Support Level

In accordance with section 108B(a)(2)

of the 1949 Act, the national average

price support level for 1995 crop quota

peanuts must be the corresponding

1994-crop price support level adjusted

to reflect any increases in the national

average cost of peanut production

(excluding any changes in the cost of

land) during the calendar year

immediately preceding marketing year

(MY) 1995, except that the MY 1995

price support level cannot exceed the

MY 1994 support level by more than 5

percent. In the event of a reduction in

these costs of production, the MY 1995

price support level for quota peanuts

would be required, under the terms of

Section 108B, to be unchanged from MY

1994. The MY 1994 quota peanut price

support level is $678.36 per short ton

(st). The MY 1995 support level for

quota peanuts was determined based on

the following estimates:

PEANUT PRODUCTION COST

CALCULATIONS

Variable/component 1993 1994

Production

costs.

$492.91/acre $489.07/acre.

Trend yields . 2,500 lbs./

acre.

2,500 lbs./

acre.

Production

costs.

$394.33/st .... $391.26/st.

1995 QUOTA CALCULATIONS

[Dollars per short ton]

Change during 1994 in the average

cost of producing peanuts .......... ¥$3.07

1995 Quota Support Level (1994

Support + any cost increase) ...... 678.36

As indicated, relevant peanut

production costs decreased from

calendar year 1993 to 1994. The MY

1995 quota peanut price support level is

accordingly established at $678.36 per

st, unchanged from MY 1994.

B. Additional Peanut Support Level

Section 108B(b)(1) of the 1949 Act

provides that price support shall be

made available for additional peanuts at

such level as the Secretary determines

will ensure no losses to CCC from the

sale or disposal of such peanuts, taking

into consideration the demand for

peanut oil and peanut meal, expected

prices of other vegetable oils and

protein meals, and the demand for

peanuts in foreign markets.

The MY 1995 price support level for

additional peanuts is established at

$132 per st to ensure no losses to CCC

from the sale or disposal of such

peanuts, unchanged from MY 1994.

Peanuts are pledged as collateral for

price support loans. The peanuts are

then sold out of inventory in order to

recoup the loan principal, interest and

related costs. The statutory factors have

been analyzed as set out below. Based

on those factors, it is anticipated that

while the current oil market is

unusually strong, there is enough

uncertainty in the market to suggest

caution in setting the floor price for

inventory peanuts sold for crushing. For

that reason, it has been determined that

the support rate should remain

unchanged from the level for additional

peanuts that was in place for the 1994

crop, that being $132.00 per st.

In making this determination, the

following information was considered:

1. The domestic use of peanut oil

during MY 1995 is forecast to be

115,000 st, up 2 percent from MY 1994

projected domestic use. MY 1995

peanut oil beginning stocks are expected

to be 19,000 st, up 50 percent from MY

1994. The MY 1995 average peanut oil

price is expected to be $0.40 per pound,

down $0.06 per pound from MY 1994.

2. The domestic use of peanut meal

during MY 1995 is forecast to be

180,000 st, down 2,000 st from MY 1994

projected domestic use. MY 1995

peanut meal beginning stocks are

expected to be 5,000 st, down 2,000 st

from MY 1994. The MY 1995 average

peanut meal price is expected to be

$155 per st, up $20 per st from MY

1994.

3. The domestic disappearance of

soybean oil during MY 1995 is forecast

to be 6,650,000 st, up 2.3 percent from

projected MY 1994 domestic

disappearance. MY 1995 soybean oil

beginning stocks are expected to be

640,000 st, up 16 percent from MY

1994. The MY 1995 average soybean oil

price is expected to be $0.27 per pound,

unchanged from MY 1994.

4. The domestic disappearance of

cottonseed oil during MY 1995 is

forecast to be 510,000 st, up slightly

from projected MY 1994 domestic

disappearance. MY 1995 cottonseed oil

beginning stocks are expected to be

40,000 st, down 25 percent from MY

1994. The MY 1995 average cottonseed

oil price is expected to be $0.27 per

pound, up $0.02 from MY 1994.

5. The domestic disappearance of

soybean meal during MY 1995 is

forecast to be 26,500,000 st, up 1.0

percent from projected MY 1994

domestic disappearance. MY 1995

soybean meal beginning stocks are

expected to be 300,000 st, up 50 percent

from MY 1994. The MY 1995 average

soybean meal price is expected to be

$160 per st, up $5 per st from MY 1994.

6. The domestic disappearance of

cottonseed meal during MY 1995 is

forecast to be 1,725,000 st, up 3 percent

from projected MY 1994 domestic

disappearance. MY 1995 cottonseed

meal beginning stocks are expected to

be 65,000 st, up 23 percent from MY

1994. The average cottonseed meal price

for MY 1995 is expected to be $125 per

st, up $5 per st from MY 1994.
27870 Federal Register / Vol. 60, No. 102 / Friday, May 26, 1995 / Rules and Regulations

7. The world use of peanuts for MY

1994 is expected to be 24.42 million

metric tons, up 1.3 percent from MY

1993. World peanut production for MY

1994 is forecast to be 24.47 million

metric tons, up 2 percent from MY 1993.

Ending stocks for MY 1994 are forecast

at 0.70 million metric tons, up 8 percent

from MY 1993.

C. Minimum CCC Export Edible Sales

Price for Additional Peanuts

The minimum price at which

additional peanuts owned or controlled

by CCC may be sold for use as edible

peanuts in export markets is a

discretionary action that, by practice, is

announced at the same time as quota

and additional peanut support levels to

facilitate the negotiation of additional

peanut contracts by producers and

handlers.

A proposed rule setting forth the MY

1995 minimum CCC export edible sales

price of $400 per st was published on

January 4, 1995 (60 FR 381). Six

comments were received in response to

the notice during the public comment

period that ended on January 17, 1995.

The six respondents addressing this

issue were five shellers or sheller/

processors and one peanut product

manufacturer. Five comments supported

a CCC export edible sales price of $400

per st or above; most of these felt that

the $400 minimum had served the

industry well since 1986. One sheller

respondent felt that CCC should

discontinue the policy of announcing a

minimum export edible sales price and

make all additional peanuts available to

export markets at market determined

prices. The $400 price has been adopted

in this final rule for the reasons set out

in the January 4 notice.

List of Subjects in 7 CFR Part 1421

Grains, Loan programs-agriculture,

Oilseeds, Peanuts, Price support

programs, Reporting and recordkeeping

requirements, Soybeans, Surety bonds,

Warehouses.

Accordingly, 7 CFR part 1421 is

amended as follows:

PART 1421—GRAINS AND SIMILARLY

HANDLED COMMODITIES

1. The authority citation for 7 CFR

part 1421 continues to read as follows:

Authority: 7 U.S.C. 1421, 1423, 1425,

1441z, 1444f–1, 1445b–3a, 1445c–3, 1445e,

and 1446f; 15 U.S.C. 714b and 714c.

2. Section 1421.7(b)(8)(iv) is revised

and paragraph (b)(8)(v) is added to read

as follows:

§ 1421.7 Adjustment of basic support

rates.

* * * * *

(b) * * *

(8) * * *

(iv) 1994 Peanuts, Quota—$678.36 per

short ton; Additional—$132.00 per short

ton;

(v) 1995 Peanuts, Quota—$678.36 per

short ton; Additional—$132.00 per short

ton;

* * * * *

3. Sections 1421.27(a)(2)(iv) is revised

and paragraph (a)(2)(v) is added to read

as follows:

§ 1421.27 Producer-handler purchases of

additional peanuts pledged as collateral for

a loan.

(a) * * *

(2) * * *

(iv) The 1994 minimum CCC sales

price for additional peanuts sold for

export edible use is $400 per short ton;

(v) The 1995 minimum CCC sales

price for additional peanuts sold for

export edible use is $400 per short ton.

* * * * *

Signed at Washington, DC, on May 21,

1995.

Bruce R. Weber,

Acting Executive Vice President, Commodity

Credit Corporation.

[FR Doc. 95–13000 Filed 5–25–95; 8:45 am]

BILLING CODE 3410–05–P

SMALL BUSINESS ADMINISTRATION

13 CFR Part 116

Policies of General Application

AGENCY: Small Business Administration

(SBA).

ACTION: Interim final rule with request

for comments.

SUMMARY: On October 22, 1994, the

President signed Public Law 103–403,

The Small Business Administration

Reauthorization and Amendments Act

of 1994. Section 612 of that Act requires

SBA to promulgate regulations by April

22, 1995 which require certification by

any recipient of financial assistance

under the Small Business Act that such

recipient is not delinquent on a court

order or other formal agreement

requiring payment of child support.

This interim final rule, published in

accordance with Public Law 103–403,

implements this requirement.

DATES: This rule becomes effective May

26, 1995. Comments by June 26, 1995.

ADDRESSES: Comments should be sent to

John R. Cox, Associate Administrator for

Financial Assistance, Small Business

Administration, 409 Third Street, SW.,

Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT:

John R. Cox, (202) 205–6490.

SUPPLEMENTARY INFORMATION: Public

Law 103–403 required SBA, among

other things, to promulgate regulations

which require certification by any

recipient of Agency financial assistance

under the Small Business Act that the

recipient is not delinquent on a court

order or other formal agreement

requiring payment of child support. In

that regard, Section 612 of Pub. L. 103–

403, October 22, 1994, states:

(f) Certification of Compliance with Child

Support Obligations.—

(1) In General. For financial assistance

approved after the promulgation of final

regulations to implement this section, each

recipient of financial assistance under this

Act, including a recipient of a direct loan or

a loan guarantee, shall certify that the

recipient is not more than 60 days delinquent

under the terms of any—

(A) administrative order;

(B) court order; or

(C) repayment agreement entered into

between the recipient and the custodial

parent or State agency providing child

support enforcement services, that requires

the recipient to pay child support, as such is

defined in section 462(b) of the Social

Security Act.

(2) Enforcement. Not later than 6 months

after the date of enactment of this subsection,

the Administration shall promulgate such

regulations as may be necessary to enforce

compliance with the requirements of this

subsection.

[Emphasis added.]

The Conference Report language on

this section is useful in providing

guidance for implementing this

requirement. (See Report 103–824 to

accompany S. 2060.) It provides:

Sec. 612. Certification of compliance with

child support obligations.

Both bills contained provisions requiring

SBA borrowers to certify that they are not in

violation of any court order or agreement

requiring the payment of child support. The

conference report contains the same

provision with a clarification with court

orders, administrative orders, or agreements,

specifically 60 days or more in arrears.

While intending to strengthen federal

policy in support of family support

obligations, the conferees recognize that

economic circumstances may from time to

time cause a parent to be late in such

payments. It is not the intent of the conferees

to subject minor lapses to the criminal and

civil penalties contained in both the Small

Business Act and the False Statements Act

for false representations made to the agency

in the course of a loan application or other

application for assistance. Hence, the

conference agreement provides for a

certification that the applicant is not more

than 60 days late in making any child

support payment required by court order or

agreement. Loan applicants should be

advised of this provision at the outset of the