Special Combinations for Tobacco Allotments and Quotas

This final rule adopts with a modification the interim rule published in the Federal Register (62 FR 15599) on April 2, 1997. The interim rule provided for special combinations of flue-cured tobacco allotments and quotas on participating and nonparticipating farms with ``production flexibility contracts'' (PFC) under the Agricultural Market Transition Act of 1996 (AMTA) and for, burley tobacco, an exemption to dropping the quota on divided farms with less than 1,000 pounds if the farm meets the requirements for a farm combination. After further review of the rule and the comments, the regulations adopted in the interim rule have been modified to allow for other transfers of tobacco quota, for all tobacco types, between farms with the same owner in cases where a farm combination could otherwise be used to produce the desired result but is not available, as a practical matter, because of restrictions under the PFC program administered by the Department. The amended provisions permit such transfers to be approved without regard to restrictions for purchased quota that apply to transfers by lease or sale. Also, the interim rule has been modified to permit the agency to modify non-statutory deadlines for transfers and other requirements when special circumstances warrant such action.