[Code of Federal Regulations] [Title 7, Volume 7, Parts 700 to 899] [Revised as of January 1, 2001] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR723.304] [Page 142-144] TITLE 7--AGRICULTURE CHAPTER VII--FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE PART 723--TOBACCO--Table of Contents Subpart C--Tobacco Subject to Quota, Exemptions From Quotas, Marketing Cards, and General Penalty Provisions Sec. 723.304 Determination of discount varieties. (a) Definition. Discount variety means any of the flue-cured tobacco seed varieties designated as Coker 139, Coker 140, Coker 316, Reams 64, Reams 266, or Dixie Bright 244, or a mixture or strain of such seed varieties, or any breeding line of flue-cured tobacco seed varieties, including, but not limited to, 187-Golden Wilt (also designated by such names as No-Name, XYZ, Mortgage Lifter, Super XyZ), having the quality and chemical characteristics of the seed varieties designated as Coker 139, Coker 140, Coker 316, Reams 64, Reams 266, or Dixie Bright 244. However, where there is growing in a field offtype plants of not more than 2 percent, such offtype plants shall not be considered in certifying the flue-cured tobacco variety being produced. Flue-cured tobacco variety which is not certified to be discount variety shall be considered as ``acceptable variety.'' (b) Producer report. The operator, or any producer, on each farm producing flue-cured tobacco shall file with the county FSA office a report on MQ-32 showing whether or not discount variety tobacco was planted on the farm. (c) Failure to file report. If the operator of a farm on which flue- cured tobacco is being produced in the current year fails or refuses, within 7 days after a request of the county FSA committee on MQ-34-1, Notice of Action Required Regarding Determination of Seed Varieties of Flue-Cured Tobacco, to file a report on MQ-32, showing whether or not there was planted any of the discount varieties of flue-cured tobacco on such farm, all flue-cured tobacco produced on such farm shall be considered by the county FSA committee to be discount variety tobacco unless the county FSA committee finds that failure to comply with the request was due to circumstances beyond the control of the farm operator. (d) Notice to farm operator. The farm operator having discount variety tobacco shall be given written notice by certified mail on MQ- 34-2, Notice of [[Page 143]] Determination of Discount Variety of Flue-Cured Tobacco. This notice to the farm operator shall constitute notice to all persons who, as owner, operator, landlord, tenant, or sharecropper, are interested in the tobacco grown on the farm. (e) Producer's right to recertify. Any producer on a farm who received a Form MQ-34-2 notifying such producer that the farm has discount variety tobacco when in fact an acceptable variety is being produced may recertify on Form MQ-32. (f) Issuance of marketing cards. (1) If a farm is considered to have discount variety tobacco available for marketing and the farm is eligible for price support, the county FSA executive director shall issue MQ-76, bearing the notation ``Discount Variety-Limited Price Support.'' If the farm is considered to have discount variety tobacco but it is not eligible for price support, the county FSA executive director shall issue MQ-76, bearing the notation ``Discount Variety-No Price Support.'' (2)(i) Where an MQ-76, bearing the notation, ``Discount Variety- Limited Price Support'' is issued for a farm, the card may be exchanged at the county FSA office for an MQ-76, without the notation, or (ii) Where an MQ-76, bearing the notation ``Discount Variety-No Price Support'' is issued for a farm the card may be exchanged at the county FSA office for MQ-76 with the notation ``No Price Support.'' However, the farm operator shall establish to the satisfaction of the county FSA committee that there has been no commingling or substitution of discount variety tobacco produced on the farm or on any other farm operated by such operator, and that all discount variety tobacco has been marketed or satisfactorily disposed of, or accounted for. (3) MQ-76 issued to identify marketings of tobacco grown for experimental purposes by or for publicly owned experiment stations shall bear the notation ``Discount Variety-Limited Price Support'' if such tobacco is discount variety tobacco. (g) Identification of flue-cured leaf account tobacco as acceptable variety--(1) Whenever the Director determines there is a significant amount of discount variety tobacco available for marketing in any marketing year, the Director may cause to be initiated the provisions of this paragraph. In addition, the Director may terminate any action initiated hereunder when it is determined that no discount variety of flue-cured tobacco remains available for sale during the remainder of the current marketing season. Notification to warehouse operators of action required under this paragraph shall be by the State FSA executive director. (2)(i) Each warehouse operator who offers for auction sale any leaf account flue-cured tobacco on a warehouse floor other than such operator's own floor, and who requests the other warehouse operator to identify such tobacco as being ``acceptable variety'' shall execute MQ- 79-1 (Flue-Cured), Dealer's Certification-Resale Tobacco. (ii) Each warehouse operator who is participating in the Commodity Credit Corporation price support program, and who identifies resale tobacco indicating that such tobacco with a ``certified'' lot ticket indicating that such tobacco is covered by an executed MQ-79-1. (iii) Each executed MQ-79-1 (Flue-Cured) shall show the following information with respect to each lot of resale tobacco: (A) Crop year. (B) Name and address of warehouse where the tobacco is being offered for sale. (C) Tobacco sale bill number and date. (D) Date, signature of dealer and current address, and dealer identification number. (3)(i) Each dealer or any other person who offers for auction sale any resale flue-cured tobacco on a warehouse floor which is participating in the Commodity Credit Corporation price support program and on which floor eligible resale flue-cured tobacco is identified with a ``certified'' lot ticket, and who requests the warehouse operator to identify such operator's tobacco as being an ``acceptable variety,'' shall execute MQ-79-1 (Flue-Cured), Dealer's Certification-Resale Tobacco. (ii) Each executed MQ-79-1 (Flue-Cured) shall show the following information with respect to resale tobacco: [[Page 144]] (A) Crop year. (B) Name and address of warehouse where the tobacco is being offered for sale. (C) Date, signature of dealer and current address and dealer identification number. (D) Tobacco sale bill number and date. (iii) Each dealer or any person who acquires acceptable variety tobacco in a manner which would make it eligible for certification on MQ-79-1, or who has on hand both discount variety tobacco and acceptable variety tobacco, and desires to dispose of acceptable variety tobacco prior to disposing of the discount variety tobacco, may apply in writing to the State FSA executive director for a special authorization to have the acceptable variety tobacco certified when offered for auction sale. (h) Estimate of production. For any farm on which discount variety tobacco is being grown, a Form MQ-92, Estimate of Production, shall be obtained.