Rule2025-09552
Tobacco Grading and Inspections Services-Rescission of Regulations Establishing Tobacco Price Support Provisions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 30, 2025
Effective
June 29, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This direct final rule amends regulations that govern tobacco price support services established under the Agricultural Act of 1949. The Fair and Equitable Tobacco Reform Act of 2004 eliminated the price support and quota system for tobacco produced in the United States. In alignment with Executive Order 14192, AMS is removing and, where appropriate, amending regulations that have expired authorizing statutes and govern non-operational programs.
Full Text
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<title>Federal Register, Volume 90 Issue 103 (Friday, May 30, 2025)</title>
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[Federal Register Volume 90, Number 103 (Friday, May 30, 2025)]
[Rules and Regulations]
[Pages 22843-22845]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-09552]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 103 / Friday, May 30, 2025 / Rules
and Regulations
[[Page 22843]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 29
[Doc. No. AMS-CN-25-0027]
RIN 0581-AE39
Tobacco Grading and Inspections Services--Rescission of
Regulations Establishing Tobacco Price Support Provisions
AGENCY: Agricultural Marketing Service (AMS), Department of Agriculture
(USDA).
ACTION: Direct final rule.
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SUMMARY: This direct final rule amends regulations that govern tobacco
price support services established under the Agricultural Act of 1949.
The Fair and Equitable Tobacco Reform Act of 2004 eliminated the price
support and quota system for tobacco produced in the United States. In
alignment with Executive Order 14192, AMS is removing and, where
appropriate, amending regulations that have expired authorizing
statutes and govern non-operational programs.
DATES: This direct final rule is effective June 30, 2025, without
further action or notice, unless a significant adverse comment is
received by June 30, 2025. If a significant adverse comment is
received, AMS will publish in the Federal Register a withdrawal of this
direct final rule prior to the effective date.
ADDRESSES: Comments can be submitted electronically at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by searching the docket number listed above.
Interested persons are invited to submit written comments concerning
this direct final rule. Comments may also be submitted by mail or hand
delivery to USDA AMS Cotton and Tobacco Program, 3275 Appling Road,
Memphis, TN 38133. All comments should reference the docket number and
the date and page number of this issue of the Federal Register. All
comments submitted in response to this direct final rule will be
included in the record and will be made available to the public at:
<a href="https://www.regulations.gov">https://www.regulations.gov</a>. Public comments are posted without change.
Any identifying information submitted with these comments will also be
publicly available.
FOR FURTHER INFORMATION CONTACT: Angie Snyder, Deputy Administrator,
USDA AMS Cotton and Tobacco Program, 3275 Appling Road, Memphis, TN
38133; Telephone: (901) 384-3000; Email: <a href="/cdn-cgi/l/email-protection#b8d9d6dfd1dd96cbd6c1dcddcaf8cdcbdcd996dfd7ce"><span class="__cf_email__" data-cfemail="177679707e723964796e737265576264737639707861">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Agricultural Act of 1949 (7 U.S.C. 1441,
1421, 1423) authorized the establishment of a price support system for
tobacco and other commodities. The Fair and Equitable Tobacco Reform
Act of 2004 (Pub. L. 108-357, title VI, Sec. 611(b), Oct. 22, 2004,
118 Stat. 1522) eliminated the price support and quota system for
tobacco produced in the United States as well as mandatory grading of
types of tobacco eligible for price support.
AMS's regulations governing tobacco inspection requirements as they
relate to the tobacco price support system are contained in 7 CFR part
29. Upon reviewing these regulations in light of the relevant statutory
changes and in alignment with Executive Order 14192, AMS has determined
that regulations in 7 CFR part 29 with expired authorizing statutes and
that govern non-operational programs should be removed and, where
appropriate, amended.
AMS is amending language in the subpart A heading and removing
obsolete and repetitive statutory authorities listed under this subpart
heading. References to price support services are removed from defined
terms listed under Sec. 29.1(e) and making a conforming amendment of
the definition of ``Hearing Clerk.'' References to obsolete price
support services are removed from the policy statement in Sec. 29.2 by
revising the introductory paragraph and paragraphs (a) and (b) and
removing paragraph (c). Furthermore, AMS is amending Sec. 29.3(a) by
removing references to obsolete price support services and updating
contact information for the Office of the Hearing Clerk.
The language in the heading of subpart G is being amended to remove
references to obsolete price support services, and obsolete and
repetitive statutory authorities listed under this subpart heading are
being removed. Lastly, Sec. Sec. 29.9402 and 29.9406 are amended,
removing references to obsolete price support services.
Given that AMS has not provided services related to tobacco price
support programs in twenty years, since 2005, there are no known costs
or benefits associated with removing regulations governing the tobacco
price support program that was eliminated by statute. Even prior to
passage of the Fair and Equitable Tobacco Reform Act of 2004, price
support services were incorporated into the reporting requirements
associated with mandatory tobacco inspection and grading services,
which are services paid for by the industry through fees. Fee rates for
tobacco inspection and grading services were set such that all costs
associated with these services were covered by revenues generated from
providing these services. To the extent there is any uncertainty about
the costs and benefits of these regulations, it is the policy of USDA
to err on the side of deregulation and focus resources on fairly and
rationally enforcing a discrete and manageable number of regulations.
Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5
U.S.C. 551 et seq.) authorizes agencies to dispense with prior notice
and comment for rules when the agency for ``good cause'' finds that
those procedures are ``impracticable, unnecessary, or contrary to the
public interest.'' Under this section, an agency, upon finding good
cause, may issue a final rule without first publishing a proposed rule.
Removing regulations pertaining to tobacco price support services and
making conforming amendments will provide transparency and may reduce
confusion for tobacco producers and other stakeholders. Further, AMS
views this action as noncontroversial and anticipates no adverse public
comment. This rule will become effective, as published in this
document, July 29, 2025 without further action, unless adverse comments
are received on or before June 30, 2025. Adverse comments are
considered to be those comments that suggest the rule should not be
adopted or suggest the rule should be changed.
If AMS receives adverse comments, we will publish a document in the
[[Page 22844]]
Federal Register, withdrawing this rule before the effective date. AMS
will then publish a proposed rule for public comment. Following the
close of that comment period, the comments will be considered, and a
final rule addressing the comments will be published.
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), AMS
certifies that this direct final rule will not, if issued, have a
significant economic impact on a substantial number of small entities.
AMS has not provided tobacco price support services in twenty years.
The amendments made by the direct final rule will merely conform the
CFR with AMS' current operating practices. This rule has been
determined to be not significant for the purposes of Executive Order
12866 and, therefore, has not been reviewed by OMB. There are no
current information collections associated with the regulations related
to the tobacco price support services.
USDA has determined that there is no reliance interest in obsolete
regulations. Moreover, regardless of the lawfulness, USDA has no
interest in maintaining regulations that have expired authorizing
statutes or govern non-operational programs. Maintaining regulations
pertaining to the obsolete tobacco price support program in 7 CFR part
29 are not a priority. Therefore, AMS is removing and, where
appropriate, amending regulations in 7 CFR part 29 pertaining to
obsolete price support services.
List of Subjects in 7 CFR Part 29
Administrative practice and procedure, Advisory committees,
Government publications, Imports, Pesticides and pests, Reporting and
recordkeeping requirements, Tobacco.
For the reasons set forth in the preamble, AMS amends 7 CFR part 29
as follows:
PART 29--TOBACCO INSPECTION
0
1. The authority citation for part 29 continues to read as follows:
Authority: 7 U.S.C. 511-511s.
Subpart A--Policy Statement and Provisions Governing the Extension
of Tobacco Inspection Services
0
2. Revise the heading to subpart A to read as set forth above.
0
3. Remove the authority citation to subpart A.
0
4. Amend Sec. 29.1 by revising paragraphs (e) and (i) to read as
follows:
Sec. 29.1 Definitions.
* * * * *
(e) Designated market means an auction market designated by the
Secretary under section 5 of the Tobacco Inspection Act including the
town or city which is the population center of the market whose name
the market bears and all of the geographical area within 5 road miles
of the boundaries of said city or town. And further provided, That this
geographical limitation may be waived by the Secretary after a hearing
held pursuant to Sec. Sec. 29.2 and 29.3.
* * * * *
(i) Hearing Clerk means the Office of the Hearing Clerk, U.S.
Department of Agriculture, Washington, DC 20250.
* * * * *
0
5. Amend Sec. 29.2 by revising the introductory paragraph and
paragraphs (a) and (b) and removing paragraph (c) to read as follows:
Sec. 29.2 Policy statement.
Inspection services currently provided in auction marketing areas
are adequate and the lack of these services is not a limiting factor to
accelerated marketings. Consequently, the extension of inspection
services, without limitation even though the cost of such service is
paid by the seller, would not contribute to the effectuation of the
purposes of either of these services. The additional cost incident to
the unlimited extension of these services would be unjustifiable and
excessive in relation to the total quantity of tobacco available for
market. Accordingly, inspection services shall be made available on new
markets, and additional sales for other than flue-cured tobacco only as
hereinafter provided.
(a) Reasonable inspection services. The extension of tobacco
inspection services to new markets and additional sales will be
conditioned upon the reasonableness of such services existing in the
marketing area of the proposed new market or additional sale.
Transactions in tobacco as conducted at auction markets customarily
involve the sale of tobacco at a bona fide auction sale. Determination
with respect to reasonableness, and consequently with respect to
granting or denying additional services, will be based on evidence:
(1) That the proposed new market or additional sale will function
as a bona fide auction sale; and
(2) That additional services are justifiable in relation to other
market data, including the volume of tobacco produced in the area
surrounding the proposed new market or additional sale; the roads and
road distances involved in moving tobacco to the proposed new market or
additional sale in relation to other tobacco marketing centers; the
relative availability or congestion of all facilities for redrying and
packing tobacco handled or to be handled in the proposed new market or
additional sale; the location of other auction markets on which tobacco
produced in the marketing area of the proposed new market or additional
sale may be marketed; the number of tobacco growers to be affected by
the proposed new market or additional sale; the volume of tobacco
likely to be sold in the proposed new market or additional sale; the
relationship of sales in the proposed new market or additional sale to
sales in other auction markets in the producing area for that kind of
tobacco; other economic factors affecting the marketing of tobacco, by
growers, in the marketing area of the proposed new market or additional
sale and in the producing area for that kind of tobacco, including
limitations on sales imposed by any marketing agreement and/or order,
or by any other means; and also, as to flue-cured tobacco, data with
regard to producer designations which shall include, but not be limited
to, the markets and warehouses currently available for the producers,
who would be eligible to designate the new market or, warehouse, who
desire to designate the new market.
(b) Order of priority. If the Secretary finds that there are
insufficient qualified tobacco inspectors available to service
adequately all applicants otherwise found to be qualified for
additional inspection service pursuant to this subpart for a kind of
tobacco, those applicants found to be eligible for additional services
on auction markets designated for mandatory inspection shall be given
priority over applicants for additional inspection service on other
auction markets. If it becomes necessary to determine which of several
qualified applicants having an equal order of priority under the
preceding sentence shall receive additional inspection services, those
auction sales or auction markets where the greatest number of growers
needing such service may be served with the qualified inspectors shall
have priority. If an application for an additional sale on a designated
market is denied for lack of qualified inspectors, the Secretary, on
application from such market, may temporarily suspend the requirement
of inspection and certification on such market pursuant to section 5 of
the Tobacco Inspection Act.
0
6. Amend Sec. 29.3 by revising paragraphs (a) and (c) to read as
follows:
[[Page 22845]]
Sec. 29.3 Procedures for filing, hearing, and determination of
applications.
(a) Time and place of filing. Applications for the extension of
tobacco inspection to new markets and to additional sales on designated
markets shall be filed with the Hearing Clerk not later than September
15 in the case of flue-cured tobacco, December 1 in the case of
Maryland tobacco, and July 15 in the case of burley and all other kinds
of tobacco. Applications should be addressed to the Office of the
Hearing Clerk, United States Department of Agriculture, 1400
Independence Ave. SW, Stop 9203, Room 1031, South Building, Washington,
DC 20250-9203. Applications which are not received by the Hearing Clerk
on or before the foregoing cutoff date for the kind of tobacco shall be
rejected as untimely filed. After denial of an application for
additional inspection services for a marketing season, no application
from the same auction market or proposed new market shall be considered
for the next consecutive marketing season, unless the application
contains a statement by the applicant setting forth new facts that
constitute evidence of such a substantial change in conditions since
the previous hearing as the review committee as specified in paragraph
(h) of this section deems would warrant such further hearing.
* * * * *
(c) Hearings on applications. Following the closing date for filing
applications for each kind of tobacco, a hearing or hearings shall be
held on the applications, if any, filed for additional inspection
services for the kind of tobacco in question. Such hearing or hearings
shall be scheduled to begin within 60 days following the closing date
for such applications. Notice of hearing shall be issued by the
Secretary, filed with the Hearing Clerk, and published in the Federal
Register, and a copy shall be mailed by the Hearing Clerk to each
applicant. Such publication and mailing shall be not less than 5 days
prior to the opening of the hearing.
* * * * *
Subpart G--Policy Statement and Provisions Governing the
Availability of Tobacco Inspection Services to Flue-Cured Tobacco
0
7. Revise the heading to subpart G to read as set forth above.
0
8. Remove the authority citation to subpart G.
Sec. 29.9402 [Amended]
0
9. Amend Sec. 29.9402 by removing the phrase ``or the extension of
price support to producers'' in the first sentence.
Sec. 29.9406 [Amended]
0
10. Amend Sec. 29.9406, in paragraph (b), by removing the phrase ``or
price support services'' in the first sentence.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-09552 Filed 5-29-25; 8:45 am]
BILLING CODE 3410-02-P
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