Document KNNZj7Ld8ZvvBGmzxv77pNQx

Federal Register / Vol. 51. No. 119 / Friday,-.June 20, 1988 / Rules and Regulations 22487 production on the quota.farm was not application of the quota reduction That issue is germane to matters which possible due to conditions beyond the provisions of the 1986 amendments. will be addressed in subsequent producer's control. Comments suggesting that there regulations. The issue generated 292 comments. A number of suggestions were made. First, should be a blanket exemption for transfers, past and future, were rejected. Conclusion sonie suggested that in all cases leased Such a blanket exemption would be Having given careful consideration quotas should be considered produced. contrary to the statute. While it may be and review to all comments, it ha9 been Some argued that leasing is necessary to that in some instances a quota on a farm determined that the provisions of the combine quotas into marketable does not amount to the marketable proposed rule should be adopted except quantities. Some of these commenters, quantity, a farm with a small quota can for: however, would limit such protection to quotas transferred to farms with the same operator. Some argued that reductions for nonproduction should not be made for the 1986 crop since planting may have already occurred. Others suggested that it would be unfair to reduce quotas that were leased under circumstances which, for the 1983-85 crop years, did not produce a quota reduction. This suggestion was made in particular with respect to leases made, because of soil diseases or conditions affecting the crop on the quota farm. Other commenters argued that they had purchased quotas which, if the proposed rule were adopted, would be unfairly eliminated. In addition, other commenters argued that actual producers of peanuts would suffer unless they were given the opportunity to purchase quotas previously leased. This was suggested to be a particular problem in fringe areas where the small quantity of quota that would remain after reductions would not be large enough to leave enough quota available for purchase. The proposed rule, as regards this issue, has been modified. First, to avoid problems arising from the difficulty of predicting their 1986 quotas prior to planting, all 1986 quotas up to the farm's 1986 basic poundage quota will be considered produced for the 1986 crop. Second, in order to. avoid due hardship to actual producers of peanuts, be combined with other farms. In any event, the fad that a producer may not find it profitable to produce a particular quota on the quota farm is not a condition beyond the producer's control but a management decision. Pursuant to the "fair and equitable" provisions of the peanut quota reduction section of the 1938 Act, the final rule, will effectively eliminate quota reductions for nonproduction in many instances for the 1986 crop. While the modification of the rule regarding reductions will be adverse to some farmers--those who would have benefited from the reallocation, the adverse effect will be minimal given the size of the shares involved. By comparison, the effect on other producers, if no modification were made, would be profound. In addition, pursuant to Section 1314 of the 1985 Act, a special provision for considered produced credit is included in the rule for farms to which the Farmers Home Administration has or had control or title for the 1983 and subsequent crop years. 2. Other issues. Some commenters suggested thnt the ''fall" transfer restrictions were too restrictive. The proposed rule requires that the full quota be planted before a fall lease will be allowed. That requirement is provided for by statute. Two comments suggested that quotas temporarily released be reallocated to farms in the same county. The rule permits distributions on that basis. The actual method will be determined once (1) Minor clarifications; (2) The change in the quota reduction provisions of the regulations, as previously noted; and (3) The following changes: (a) The list of States contained in. $ 729.346 has been deleted. That section provided that transfers by sale or lease could be made from one county in the State to another county if the poundage quota allocated to a State for the preceding year was less than 10.000 tons. The State poundage quota for a State for the preceding year could change from one year to another. The change in 729.346 avoids unnecessary amendments to the regulations. (b) Section 729.348 has been amended to provide, for the 1986 crop only, that the final dale for "spring transfers" will be a date announced by the Deputy Administrator, rather than |une 15. This change is needed to allow additional time for spring transfers for the 1986 crop. list of Subjects In 7 CFR Port 729 Poundage quotas, Peanuts. Final Rule Accordingly, 7 CFR Part 729 is amended by adding a new subpart as follows: PART 729--PEANUTS Subpart-Poundage Quota and Marketing Regulations lor the 1986 Through 1990 . Crop ol Peanuts for the 1986 crop only, the farm .. ' the quantity to be allocated is known. poundage quota shall not be reduced on One comment opposed the provision General a farm if the quota Would be subject to in the proposed rule for reallocating to reduction solely because the quota was nonquota farms at least 25 percent of leased and produced'on another farm by ' those quotas reallocated due to a different operator during the base reductions for nonproduction or due to period. In addition, a farm to which a permanent releases. That minimum is 1986 quota has been transferred by sale set by statute. will be given considered produced credit Other commenters recommended that, Set 729.311 Basis and purpose. 729.312 Extent of calculations and rule of fractions. 729.313 Definitions. 729.314 Types of peanuts. 729.315 Supervisory authority of State committee and Deputy Administrator. for 1985 to the extent of the amount of due to the lateness of the final rule and 729.315-729.319 (Reserved], quota transferred. Also, provision is made in the rule to provide that if a farm which had a farm quota for 1985 is sojd such that, beginning with the 1986 crqp. 'there is a new quotaholder, the hew quotaholder will be given considered produced credit In the same, manner as if there had been a sale of the quota the fact that producers have made land preparation involving other commodities, the proposed changes not be implemented for 1938. Legislative provisions prohibit this. One comnienter suggested that the treatment of "foundation seed" for quota purposes be addressed in the rule. The State Poundage Quotas, Farm Poundage Quotas, Notice to Farm Operator and Appeals " 729.320 Instructions and forms. 729.321 Determination ot State poundage quota. 729.322 Reserves for corrections. 729.323 Determination of preliminary farm itself. This should provide an equitable proposed rule did not cover this subject. poundage quota. GLEASON-000752