[Federal Register Volume 60, Number 26 (Wednesday, February 8, 1995)]
[Rules and Regulations]
[Pages 7429-7430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3043]



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DEPARTMENT OF AGRICULTURE
Consolidated Farm Service Agency

7 CFR Part 729

RIN 0560-AD66


1995-Crop Peanuts National Poundage Quota

AGENCY: Consolidated Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: On December 15, 1994, the Secretary of Agriculture (Secretary) 
announced that the national poundage quota for quota peanuts was 
established at 1,350,000 short tons (st). This final rule codifies the 
announced quota. The quota is established pursuant to statutory 
requirements contained in the Agricultural Adjustment Act of 1938, as 
amended (the 1938 Act).

EFFECTIVE DATE: December 15, 1994.

FOR FURTHER INFORMATION CONTACT: John A. Craven, Consolidated Farm 
Service Agency (CFSA), United States Department of Agriculture (USDA), 
room 3739, South Building, P.O. Box 2415, Washington, DC 20013-2415, 
telephone 202-690-0446.

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 Catalog of Federal Domestic Assistance, to which this rule applies, 
are [[Page 7430]] Commodity Loans and Purchases--10.051.

Executive Order 12778

    This final rule has been reviewed in accordance with Executive 
Order 12778. 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 because CFSA 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.

Paperwork Reduction Act

    The amendments to 7 CFR part 729 set forth in this final rule do 
not contain information collection requirements that require clearance 
through the Office of Management and Budget under the provisions of 44 
U.S.C. Chapter 35.

Announcement of the Quota

    Section 358-1(a)(1) of the 1938 Act requires that the national 
poundage quota for peanuts for each of the 1991 through 1997 marketing 
years (MY's) be established by the Secretary at a level that is equal 
to the quantity of peanuts (in tons) that the Secretary estimates will 
be devoted in each such MY to domestic edible, seed, and related uses. 
Section 358-1(a)(1) further provides that the national poundage quota 
for a MY shall not be less than 1,350,000 st. The MY for 1995-crop 
peanuts runs from August 1, 1995, through July 31, 1996. Poundage 
quotas for the 1991-95 crops of peanuts were approved by 98.2 percent 
of peanut growers voting in a referendum conducted December 10 through 
13, 1990.
    The national poundage quota for the MY for the 1995 crop was 
established at 1,350,000 pounds, the statutory minimum, based on 
comparison with the following data:

 Estimated Domestic Edible, Seed, and Related Uses for 1995-Crop Peanuts
------------------------------------------------------------------------
                                                                Farmer  
                                                                 stock  
                            Item                              equivalent
                                                                (short  
                                                                 tons)  
------------------------------------------------------------------------
Domestic edible:                                                        
  Domestic prod. for domestic food use......................     984,000
  On-farm and local sales...................................      19,600
Seed........................................................     100,000
Related uses:                                                           
  Crushing residual.........................................     130,100
  Shrinkage and other losses................................      39,400
  Segregation 2 and 3 loan transfers to quota loan..........      20,000
      Total.................................................   1,293,100
------------------------------------------------------------------------

    Estimates of domestic production for domestic food use peanuts are 
developed in two steps. First, the farmer stock equivalent of peanuts 
for edible food use is projected by USDA's Interagency Commodity 
Estimates Committee (ICEC). Second, the ICEC food use estimate is 
reduced by the amount of peanut butter exports, edible peanut imports, 
and peanut butter imports since the ICEC food use estimate is an 
aggregate which includes peanut product exports and is derived from 
total supply that includes imports of peanuts and peanut butter. Peanut 
product exports are in most instances made from, or otherwise credited 
under section 359a(e)(1) of the 1938 Act as being made from, additional 
peanuts.
    Farm use and local sales is estimated at 1 percent of ICEC's 
production estimate. This percentage reflects the average difference 
between USDA production estimates and Federal-State inspection data.
    Seed use is based on projected 1996-crop planted acreage and a 
farmer stock equivalent seeding rate of 125 pounds per acre.
    The crushing residual is the portion of farmer stock quota peanuts 
suitable only for the crushing market. The quota must be sufficient to 
provide for the shelling of both edible and crushing grades. Therefore, 
a crushing residual representing the farmer stock equivalent weight of 
crushing grade kernels shelled from quota peanuts is included under the 
``related uses'' category. The crushing residual is estimated under the 
assumption that crushing peanuts will be approximately 12 percent, on a 
farmer stock basis, of total domestic food and seed production.
    Shrinkage and other losses is an estimate of reduced kernel weight 
available for marketing as well as for kernel losses due to damage, 
fire, and spillage. These losses were estimated by multiplying a factor 
of 0.04 times domestic food use. The utilized factor is a CFSA estimate 
equal to the minimum allowable shrinkage used in calculating a 
handler's obligation to export or crush additional peanuts as set forth 
in section 359a(d)(2)(iv) of the 1938 Act. Excessive moisture and 
weight loss due to foreign material in delivered farmer stock peanuts 
were not considered since such factors are accounted for at buying 
points and do not impact upon quota marketing tonnage.
    Segregation 2 and 3 loan transfers to quota loan represent 
transfers of Segregation 2 and 3 peanuts from additional price support 
loan pools to quota loan pools. Such transfers occur when quota peanut 
producers have insufficient Segregation 1 peanuts to fill their quotas 
yet have Segregation 2 and 3 peanuts in additional loan pools which 
would have been eligible to be pledged as collateral for quota loans if 
it were not for quality problems. In such cases, for price support 
purposes only, these peanuts may be pledged as collateral for such 
loans. Regarding the disposition of such peanuts, the Commodity Credit 
Corporation will ensure that they are crushed for oil.

List of Subjects in 7 CFR Part 729

    Poundage quotas, Peanuts, Reporting and recordkeeping requirements.

    Accordingly, 7 CFR part 729 is amended as follows:

PART 729--PEANUTS

    1. The authority citation for 7 CFR part 729 continues to read as 
follows:

    Authority: 7 U.S.C. 1301, 1357 et seq., 1372, 1373, 1375; 7 
U.S.C. 1445c-3.

    2. Section 729.214 is amended by adding paragraph (e) to read as 
follows:


Sec. 729.214   National poundage quota.

* * * * *
    (e) The national poundage quota for peanuts for marketing year 1995 
is 1,350,000 short tons.

    Signed at Washington, DC, on February 2, 1995.
Bruce R. Weber,
Acting Administrator, Consolidated Farm Service Agency.
[FR Doc. 95-3043 Filed 2-7-95; 8:45 am]
BILLING CODE 3410-05-P