[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: 7CFR729.207]

[Page 192-193]
 
                          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. 729.207  Tenants sharing in increased quota.

    (a) General. If the poundage quota allocated to a State is greater 
than the poundage quota allocated to such State for the preceding year, 
an eligible tenant who leased a part or all of a farm in any county in 
such State for the

[[Page 193]]

production of peanuts shall share equally with the farm owner, in 
accordance with the provisions in this section, in that quantity of 
basic quota that is allocated, as a result of the tenants production of 
additional peanuts on the farm during the base period to such farm, from 
the State's increased poundage quota. Farms ineligible for quota 
allocation under Sec. 729.205 do not receive a quota increase; 
therefore, the provisions of this section with respect to tenant share 
are not applicable to such farms.
    (b) Eligible tenant. If a person leased part or all of a farm, and 
had a 100 percent producer interest in one or more fields of peanuts 
that were produced on such farm during the base period, and such farm's 
basic quota is increased as a result of an increase in a State's 
poundage quota, such person shall be considered as an eligible tenant on 
such farm and shall share in such increase in the farm's basic quota if 
such person:
    (1) Qwnership interest. Does not have any ownership interest in such 
farm;
    (2) Shared in previous year's production of peanuts. Shared in the 
production of any peanuts produced on the farm in the crop year 
immediately preceding the crop year for which such increase in basic 
quota is granted;
    (3) Application for share of increase. Files an application at the 
county FSA office of the county in which such farm is located for 
administrative purposes, by February 15 of the crop year for which such 
increase in basic quota is granted, for a share of such increase;
    (4) Supporting proof. Provides supporting proof, that is acceptable 
to the county committee, of the quantity of additional peanuts produced 
on such farm by such person during each year of the base period.
    (c) Tenant's share of increase. An eligible tenant's share of the 
increase in a farm's basic quota shall be one half of an amount 
determined by multiplying the quantity of additional peanuts produced by 
such tenant and for which acceptable proof was provided in accordance 
with paragraph (b)(4) of this section by the factor determined in 
accordance with Sec. 729.206(b)(2) of this part.
    (d) Disposition of tenant's share of increase-(1) By tenant. An 
eligible tenant may dispose of any basic quota determined for such 
tenant in accordance with paragraph (c) of this section. Such 
disposition must take place by:
    (i) Time for disposition. The later of April 1 of the current year 
or 30 days after the date of notification of the amount of such basic 
quota.
    (ii) Manner of disposition. Filing an application at the county FSA 
office to transfer such basic quota:
    (A) Farm owned by tenant. To a farm within the county that is owned 
by such tenant.
    (B) Sale of quota. By sale to the owner of any farm within the 
county in accordance with Sec. 729.214 of this part.
    (2) Allocation to other farms. Any basic quota determined for an 
eligible tenant in accordance with paragraph (c) of this section that is 
not disposed of by such eligible tenant in accordance with paragraph 
(d)(1) of this section shall, to the extent practicable, be reallocated 
to other farms within the State in accordance with Sec. 729.206(e) of 
this part.
    (e) Other provisions. Any increase in a farm's basic quota that 
results from a tenant's production of additional peanuts on such farm 
during the base period shall remain on such farm if the:
    (1) Tenant who otherwise might have qualified to receive a share of 
such increase in basic quota does not file an application for a share of 
such quota in accordance with paragraph (b) of this section; or
    (2) Additional peanuts were produced by a person who was a tenant on 
such farm only during the beginning year of the base period or the 
second year of the base period.

[56 FR 16211, Apr. 19, 1991. Redesignated and amended at 61 FR 36999, 
37000, July 16, 1996; 65 FR 8247, Feb. 18, 2000]