[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: 7CFR729.205]

[Page 189-190]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 729--PEANUTS--Table of Contents
 
 Subpart B--Poundage Quotas, Notices of Quotas, Transfers, and Release 
                           and Reapportionment
 
Sec. 729.205  Farms ineligible for farm poundage quota.

    (a) Ineligible farms. Except for quota allocated under the 
provisions of Sec. 729.208 for experimental and research programs, 
effective beginning with the 1998 crop year, farm poundage quotas shall 
not be established for farms which are determined by FSA to be owned or 
controlled by:
    (1) Municipalities, airport authorities, schools, colleges, refuges, 
and other public entities (other than a university used for research 
purposes).
    (2) A person:
    (i) Who is not a peanut producer; and
    (ii) Whose primary domicile, as determined by FSA, in the case of 
any individual is in a State outside the State in which the quota is 
allocated or, in the case of an entity, does not qualify under this 
section to be considered to be a resident of the State in which the 
quota is allocated.
    (b) Determination of residency and related rules. (1) For purposes 
of administering paragraph (a) of this section, an entity may be 
considered a resident of the State in which the quota is located if:
    (i) It is determined that a person or persons with at least a 
cumulative 20-percent interest in any such entity are individuals whose 
primary residence is in the State in which the quota is allocated; or
    (ii) As determined appropriate by the Deputy Administrator, the 
corporation or other entity, but not a general partnership or an entity 
not recognized as a separate and distinct legal entity from its members, 
has been created under the laws of the State in which the quota is 
allocated.
    (2) For purposes of the provisions of (a)(2)(i) of this section, a 
person shall not be considered to be a producer of a crop of peanuts 
unless such person is at risk for at least 15 percent of the proceeds 
from the marketing of the production of the quota at issue.
    (c) Exemption for involuntary acquisition. Paragraph (a)(2) of this 
section shall not apply to any involuntary acquisition of a farm by 
foreclosure, or otherwise, resulting directly from the conduct of a 
public business in the State in which the quota is allocated, or an 
acquisition resulting directly by reason of a death. The exemption for 
involuntary farm acquisitions allowed under the preceding sentence shall 
only apply to the establishment of quota in the three crop years 
immediately following the date of the involuntary acquisition of the 
quota farm.
    (d) Applicable crop year. For purposes of applying the rules in 
paragraph (a)

[[Page 190]]

of this section as they regard production, the determination of whether 
paragraph (a)(2) of this section applies shall be made based on the crop 
last planted before the date on which the determination is to be made.
    (e) Allocating forfeited quota and sales of quotas subject to 
paragraph (a). Except for the exemption for involuntary acquisition in 
Sec. 729.205(c), beginning in 1997 any farm poundage quota held on or 
after August 1 of 1997 by an ineligible person as determined under 
paragraph (a) of this section shall be allocated from the quota farm to 
other farms in the same State in accordance with Sec. 729.206 of this 
part; provided, however, that if the ineligibility arises solely because 
of a purchase of a farm after August 1, 1997, or involves a quota which 
is acquired because of the expiration of a CRP contract after August 1, 
1997, the quota shall not be forfeited but may not be used to market 
peanuts until the ineligibility is determined by the county committee to 
have been removed or the quota is sold to an eligible farm. Such 
reallocations shall be made to the extent practicable but shall take 
into account those instances in which the regulations call for an 
ineligibility for quota allocation rather than forfeiture of the quota.

[61 FR 37000, July 16, 1996, as amended at 62 FR 25438, May 9, 1997]