[Federal Register Volume 59, Number 167 (Tuesday, August 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21351]
[[Page Unknown]]
[Federal Register: August 30, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 997
[Docket No. FV94-997-2IFR]
Clarifying and Updating Provisions Regulating the Quality of
Domestically Produced Peanuts Handled by Persons Not Subject to the
Peanut Marketing Agreement
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim rule clarifies that peanut handlers not signatory
to Peanut Marketing Agreement No. 146 (Agreement) may store and shell
certain Segregation 2 seed peanut lots with Segregation 1 seed peanut
lots when such lots are produced under the auspices of a State agency
which regulates or controls their production. This interim rule also
updates information on the laboratories qualified to perform aflatoxin
testing of shelled peanuts. Allowing peanut handlers to commingle
certain seed peanut lots reduces the space and costs needed to store
seed peanuts. Updating laboratory information should assist handlers in
moving peanuts to market. These changes are intended to bring the non-
signatory handling requirements into conformity with those specified in
the Agreement.
DATES: This interim final rule is effective August 30, 1994. Comments
received by September 29, 1994 will be considered prior to finalization
of the rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room
2523-S, Washington, D.C., 20090-6456, or Fax: (202) 720-5698. Comments
should reference the docket number 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: Richard Lower, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, Room 2523-S, Washington, D.C. 20090-6456, telephone (202)
720-2020, facsimile (202) 720-5698.
SUPPLEMENTARY INFORMATION: This interim rule is issued pursuant to
requirements of the Agricultural Marketing Agreement Act of 1937, as
amended [7 U.S.C. 601-674], hereinafter referred to as the ``Act.''
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This interim final rule will not preempt any State or
local laws, regulations, or policies, unless they present an
irreconcilable conflict with this rule. This action is not intended to
have retroactive effect. There are no administrative procedures which
must be exhausted prior to any judicial challenge to the provisions of
this rule.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Administrator of the Agricultural Marketing Service
(AMS) has considered the economic impact of this rule on small
entities. 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 45 handlers of peanuts who have not signed
the Agreement who are subject to the regulations contained herein.
Small agricultural service firms are defined by the Small Business
Administration [13 CFR 121.601] as those whose annual receipts are less
than $5,000,000. It is estimated that most of the handlers are small
entities. Most producers doing business with these handlers are also
small entities. Small agricultural producers have been defined as those
having annual receipts of less than $500,000.
In 1993, the reported U.S. production, mostly covered under the
Agreement, was approximately 3.33 billion pounds of peanuts, a 22
percent decrease from 1992 and the lowest level since 1983. The
preliminary 1993 peanut crop value is $991.65 million, 77 percent of
the 1992 crop value.
After aflatoxin was found in peanuts in the mid-1960's, the
domestic peanut industry has sought to minimize aflatoxin contamination
in peanuts and peanut products. Under authority of the Act, Peanut
Marketing Agreement No. 146 and the Peanut Administrative Committee
(Committee) were established by the Secretary in 1965. The Agreement
was signed by a majority of domestic peanut handlers.
Public Law 101-220, enacted December 12, 1989, amended section
608(b) of the Act to require that all peanuts handled by persons who
have not entered into the Agreement (non-signers) be subject to quality
and inspection requirements to the same extent and manner as are
required under the Agreement. It is estimated that 5 percent of the
domestic peanut crop is marketed by non-signatory handlers and the
remainder of the crop is handled by signatory handlers.
Under the non-signer provisions, no peanuts may be sold or
otherwise disposed of for human consumption if the peanuts fail to meet
the quality requirements of the Agreement. Regulations to implement
Pub. L. 101-220 were issued and made effective on December 4, 1990 [55
FR 49980] and amended several times thereafter, and are published in 7
CFR Part 997. All such amendments were made to ensure that the non-
signer handling requirements remain consistent with modifications to
the handling requirements applied to signatory handlers under the
Agreement. Violation of those regulations may result in a penalty in
the form of an assessment by the Secretary equal to 140 percent of the
support price for quota peanuts. The support price for quota peanuts is
determined under section 108B of the Agricultural Act of 1949 (7 U.S.C.
1445c-3) for the crop year during which the violation occurs.
The intent of P.L. 101-220 and the objective of the Agreement is to
insure that only wholesome peanuts of good quality enter edible market
channels. Under the non-signer and Agreement regulatory provisions,
farmers' stock peanuts with visible Aspergillus flavus mold (the
principal source of aflatoxin) are required to be diverted to non-
edible uses. Each lot of shelled peanuts and certain lots of inshell
peanuts, destined for edible channels, must be officially sampled and
chemically tested for aflatoxin by the Department or in other
laboratories listed in the regulations. Inspection and chemical
analysis programs are administered by the Department.
Under the non-signer provisions, the second sentence of paragraph
(e) Seed peanuts prohibits the commingling of Segregation 2 seed lots
with Segregation 1 peanut lots intended for human consumption. The
difference between Segregation 1 and Segregation 2 lots is that
Segregation 1 lots may contain no more than 2 percent damaged kernels
and no more than 1 percent concealed damaged kernels, while Segregation
2 lots may contain more than 2 percent damaged kernels and 1 percent
concealed damaged kernels. Both Segregation 1 lots and Segregation 2
lots must be free of visible Aspergillus flavus.
This interim rule clarifies the handling provisions in paragraph
(e) of Sec. 997.20 Incoming regulation to allow Segregation 2 seed
peanut lots containing up to 3 percent total damaged kernels to be
stored, shelled and commingled with Segregation 1 seed peanut lots if
both lots were produced under the auspices of a State peanut agency
which regulates or controls the production of the lots being
commingled.
The Committee meets in February or March each year and recommends
to the Secretary such rules and regulations as may be necessary to keep
the Agreement consistent with current industry practice. The Committee
met on March 16, 1994, and unanimously recommended clarification of
seed peanut handling regulations under the Agreement. Members of the
Committee noted the impracticality of having separate storage bins for
each of the various types and varieties of seed peanuts with up to 3
percent damage. It was noted that, if Segregation 2 seed lots with up
to 3 percent damaged must be stored separate from Segregation 1 seed
lots, ``foundation,'' ``registered,'' and ``certified'' seed lots would
have to be segregated into separate categories. This could increase the
number of separate bins and space needed to store seed peanut lots. The
current regulations for both signers and non-signers do not
specifically address commingling Segregation 1 seed lots with
Segregation 2 seed lots.
The Committee concluded that it is impracticable to require such
Segregation 2 seed peanuts be stored and shelled separate from
Segregation 1 seed peanuts. The Department has initiated rulemaking to
implement such a clarification in handling requirements applied on
signatory handlers.
This interim rule revises Sec. 997.20(e) for non-signer seed
peanuts and is intended to bring the non-signatory handling
requirements into conformity with those specified in the Agreement.
This rule clarifies handling requirements and will facilitate the
movement of peanuts to market.
This rule will have no affect on the outgoing quality regulation of
the non-signer provisions. The quality and handling requirements, as
specified in Sec. 997.30 Outgoing regulations applicable to non-
signatory 1993-94 crop peanuts, continues to be effective for 1994-95
crop peanuts.
This interim rule also updates addresses and facsimile numbers,
where applicable, of approved aflatoxin testing laboratories that
perform chemical analyses required by the non-signatory handling
regulations. This information is provided in paragraph (c)(5)(i) of
Sec. 997.30 Outgoing regulations. Non-signatory handlers may send
peanut samples to any laboratory on the list, per instructions
specified in paragraph (c) of the outgoing regulation. This rule also
updates information in paragraph (c)(5)(ii) identifying the contact
point of the USDA Science Division headquarter's office.
Based on available information, the Administrator of the AMS has
determined that the issuance of this interim final rule will not have a
significant economic impact on a substantial number of small entities.
After consideration of all available information, it is found that
this action 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 impractical, 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 merely clarifies restrictions
on peanut handlers not subject to the Agreement; (2) the new crop year
begins on July 1, 1994, and handlers need to know the regulations
applicable to handling the 1994 and subsequent crop year peanuts as
soon as possible; (3) this action brings the quality requirements under
Part 997 into conformity with those under the Agreement, as required by
the Act; and (4) this action provides a 30-day comment period, and any
comments received will be considered prior to finalization of this
rule.
List of Subjects in 7 CFR Part 997
Food grades and standards, Peanuts, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR Part 997 is
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 Part 997 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. In Sec. 997.20, paragraph (e) is amended by removing the second
sentence and adding in its place the words: ``Peanuts intended for seed
use, produced under the auspices of a State agency which regulates or
controls the production of seed peanuts, which do not meet Segregation
1 requirements shall be stored and shelled separate from peanuts
intended for human consumption. However, Segregation 2 seed peanuts,
produced under the auspices of the State agency, which contain up to 3
percent damaged kernels and are free from visible Aspergillus flavus
may be stored and shelled with Segregation 1 seed peanuts which are
also produced under the auspices of the State agency.''
3. In Sec. 997.30, paragraphs (c)(5) (i) and (ii) are revised to
read as follows:
Sec. 997.30 Outgoing regulation.
* * * * *
(c) * * *
(5) * * *
(i) Laboratories at the following locations are approved to perform
the chemical analyses required pursuant to this part. The sampling plan
and procedures may be obtained from the Division.
USDA, AMS, Science Division, 1211 Schley Avenue, Albany, Georgia 31707,
Tel: (912) 430-8490, Fax: (912) 430-8534
USDA, AMS, Science Division, c/o Golden Peanut Company, 200 W.
Washington Street (Mail: P.O. Box 488), Ashburn, Georgia 31714, Tel:
(912) 567-3703
USDA, AMS, Science Division, c/o Golden Peanut Company, 301 W. Pearl
Street (Mail: P.O. Box 279), Aulander, North Carolina 27805, Tel: (919)
345-1661, ext. 156
USDA, AMS, Science Division, 610 North Main Street, Blakely, Georgia
31723, Tel: (912) 723-4570, Fax: (912) 723-7294
USDA, AMS, Science Division, c/o Golden Peanut Company, 42 North Ellis
Street (Mail: P.O. Box 548), Camilla, Georgia 31730, Tel: (912) 336-
0785, ext. 236
USDA, AMS, Science Division, c/o Stevens Industries, Cargill, Inc., 715
North Main Street (Mail: P.O. Box 272), Dawson, Georgia 31742, Tel:
(912) 995-2111, ext. 257
USDA, AMS, Science Division, 107 S. Fourth Street, Madill, Oklahoma
73446, Tel: (405) 795-5615, Fax: (405) 795-3645
USDA, AMS, Science Division, 1411 Reeves Street (Mail: P.O. Box 1368),
Dothan, Alabama 36302, Tel: (205) 794-5070, Fax: (205) 792-5185
USDA, AMS, Science Division, 308 Culloden Street (Mail: P.O. Box 1130),
Suffolk, Virginia 23434, Tel: (804) 925-2286, Fax: (804) 925-2275
Pert Laboratories, P.O. Box 267, Peanut Drive, Edenton, North Carolina
27932, Tel: 919/482-4456
J. Leek Associates, P.O. Box 368, Colquitt, Georgia 27932, Tel: 912/
758-3722
ABC Research, 3437 SW 24th Avenue, Gainesville, Florida 32607-4502,
Tel: 904/372-0436
J. Leek Associates, 502 West Navarro Street, DeLeon, Texas 76444, Tel:
817/893-3640
Professional Service Ind., Inc., 3 Burwood Lane, San Antonio, Texas
78216, Tel: 210/349-5242
(ii) Handlers should contact the nearest laboratory from the list
in paragraph (c)(5)(i) of this section to arrange to have samples
chemically analyzed for aflatoxin content, or for further information
concerning the chemical analyses required pursuant to this part
handlers may contact: William J. Franks Jr., Director, Science
Division, Agricultural Marketing Service, USDA, P.O. Box 96456, Room
3507-So, Washington, DC, 20090-6456, telephone (202) 720-5231,
facsimile (202) 720-6496.
Dated: August 22, 1994.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 94-21351 Filed 8-29-94; 8:45 am]
BILLING CODE 3410-02-P