[Code of Federal Regulations] [Title 7, Volume 7] [Revised as of January 1, 2002] From the U.S. Government Printing Office via GPO Access [CITE: 7CFR723.305] [Page 144-147] 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. 723.305 Issuance of marketing cards. (a) General. Each marketing of tobacco from a farm in a quota area shall be identified by a valid marketing card unless prior to marketing an AMS certification is issued for such tobacco to indicate that such tobacco is a nonquota kind of tobacco. (1) A marketing card (MQ-76 or MQ-77) shall be issued for the current marketing year for each farm having quota tobacco available for marketing. Cards shall be issued in the name of the farm operator except that: (i) Cards issued for tobacco grown for experimental purposes only shall be issued in the name of the experiment station, (ii) Cards issued to a successor-in-interest shall be issued in the name of the successor-in-interest, (iii) For kinds of tobacco other than flue-cured and burley, if a part of a farm which includes the tobacco acreage on the farm is cash leased to such producer, cards shall be issued in the name of such producer. The face of the marketing card may show the name of other interested producers. A marketing card may be issued in the name of a producer who is not the farm operator if the county FSA committee determines pursuant to the procedure in paragraph (a)(2) of this section that such producer has been or likely will be deprived of the right to use the marketing card issued for the farm to market such producer's proportionate share of the crop. (2) If the county FSA committee has reason to believe that one or more producers on the farm have been or likely will be deprived of the right to use such marketing card to market such producer's proportionate share of the crop, a hearing shall be scheduled by the county FSA committee and the operator of the farm and the producer or producers involved shall be invited to be present, or to be represented, at which time they shall be given the opportunity to substantiate their claims concerning the use of the farm marketing card to market each such producer's proportionate share of the effective farm marketing quota for such crop. At least two members of the county FSA committee shall be present at the hearing. The hearing shall be held at the time and place named in the notice. A summary of the evidence presented at the hearing shall be prepared for use of the county FSA committee. If the farm operator or other producer(s) on the farm do not attend the hearing, or are not represented, the county FSA committee shall make its decision on the basis of information available to such committee. If the county FSA committee finds that any producer on the farm has been or likely will be deprived of the right to use the marketing card [[Page 145]] issued for the farm to market such producer's proportionate share of the crop, a separate marketing card shall be issued to such producer. With respect to burley and flue-cured tobacco, the marketing card issued for the farm shall be recalled and a separate marketing card, showing 103 percent of the producer's proportionate share of the effective farm marketing quota shall be issued to each such producer who it is determined has been or likely will be deprived of the opportunity to market such producer's proportionate share of the crop and another card (or other cards if considered preferable by the county FSA committee) shall be issued showing 103 percent of the effective farm marketing quota to enable the other producers on the farm to market their proportionate shares. The marketing cards issued pursuant to this subparagraph shall reflect the proportionate pounds, if any, already marketed by each producer. (3) The procedure in paragraph (a)(2) of this section shall not apply to a person who was a producer on the farm in a prior year but who is not a producer in the current crop year. (b) Person authorized to issue marketing cards. The county FSA executive director shall be responsible for the issuance of marketing cards. For kinds of tobacco other than burley and flue-cured tobacco, each marketing card shall bear the actual or facsimile signature of the county FSA executive director who issued the card. (c) Rights of producers and successors-in-interest. (1) Each producer having a share in tobacco available for marketing from a farm shall be entitled to the use of the marketing card for marketing such producer's proportionate share. (2) Any person who succeeds, other than a dealer, in whole or in part to the share of a producer in the tobacco available for marketing from a farm, shall, to the extent of such succession, have the same right to the use of the marketing card and bear the same liability for penalties as the original producer. (d) No price support-burley and flue-cured tobacco. For burley and flue-cured tobacco, the notation ``No Price Support'' shall be entered on each marketing card issued for the use of: (1) Farm. The farm if any producer on the farm is ineligible for price support under the provisions of part 1464 of this title. (2) Producer. The producer on a farm if the producer is ineligible for price support under the provisions of part 1464 of this title. (e) Farm quota data entered on marketing card and supplemental card for burley or flue-cured tobacco: (1) Any marketing card issued to market burley or flue-cured tobacco shall show when issued, in the space provided on the reverse side, the pounds computed by multiplying 103 percent times the effective farm marketing quota. (2) Notwithstanding paragraph (e)(1) of this section, if the tobacco available for marketing from the farm is determined by the county FSA committee or the county FSA executive director to be less than the effective farm marketing quota, for purposes of issuing a marketing card and showing thereon the farm's 103 percent of the effective quota, the effective farm marketing quota for the farm shall be considered to be the pounds determined to be available for marketing from the farm. If any producer on the farm satisfies the county FSA committee or county FSA executive director that the quantity of tobacco produced on the farm in the current year, plus any carryover tobacco from a prior year, is greater than the previously determined pounds of tobacco available for marketing from the farm, the pounds shown on the marketing card shall be increased accordingly, but not to exceed an amount which would cause the total pounds shown on the marketing card to equal 103 percent of the effective farm marketing quota. (3) Upon request by the farm operator, a supplemental marketing card bearing the same name and identification as shown on the original marketing card may be issued for a farm upon return to the county FSA office of an original marketing card or a supplemental marketing card. The pounds computed as the balance of 103 percent of quota from a prior marketing card [[Page 146]] shall be shown in the first space on the reverse side of the marketing card. (4) Upon written request of the farm operator two or more marketing cards may be issued for a farm if the farm operator specifies the number of pounds of quota to be assigned to each marketing card. In such case, the total pounds of quota specified in the entry, ``103 percent of quota,'' on all marketing cards issued for the farm may not exceed 103 percent of the effective farm marketing quota. (f) Farm quota data entered on marketing card and supplemental card for any kind of tobacco other than burley or flue-cured: (1) Within quota marketing card. A within quota marketing card, MQ-76, indicating the tobacco is eligible for price support shall be issued for use in identifying the kind of tobacco that is available for marketing from a farm when such tobacco: (i) Is eligible for price support according to the provisions of part 1464 of this title. (ii) Was grown for experimental purposes by a publicly owned agricultural experiment station. (2) Excess marketing card. An excess marketing card (MQ-77) shall be issued for a farm for marketing a kind of tobacco that is ineligible for price support. Before the MQ-77 is issued the county FSA executive director shall enter on such marketing card the rate of any penalty that is to be deducted from the proceeds from any marketing of tobacco identified by such marketing card. An MQ-77 shall be issued for each farm for each kind of tobacco for which: (i) There is excess tobacco available for marketing from the farm; or (ii) The producer is not an eligible producer or the tobacco is not eligible tobacco as determined in accordance with part 1464 of this title. (3) Full penalty rate. The full penalty rate shall be entered on each MQ-77 issued to identify tobacco produced on a farm for which: (i) An acreage allotment was not established; (ii) The farm operator or another producer on the farm prevents the county FSA committee from obtaining information necessary to determine the correct acreage of tobacco on the farm; (iii) The farm operator fails in accordance with part 718 of this chapter to provide a certification of acreage planted to tobacco, or (iv) The farm operator or another producer on the farm has not agreed to make contributions to the No Net Cost Fund or pay assessments to the No Net Cost Account, as applicable, in accordance with part 1464 of this title. (4) Converted penalty rate. Except as provided in paragraph (f)(3) of this section, a converted penalty rate shall be entered on each MQ-77 issued to identify tobacco produced on a farm from which there is excess tobacco available for marketing and the percentage of excess is less than 100 percent. For the purpose of determining the penalty due on each marketing by a producer of tobacco subject to penalty, the converted rate of penalty per pound shall be determined by multiplying the applicable rate of penalty for the current crop by the percent excess determined according to this paragraph. For a farm without carryover tobacco from a prior year, the percent excess shall be determined by dividing the excess acreage of tobacco by the harvested acreage of tobacco for the farm. For a farm having carryover tobacco from a prior year, the percent excess shall be determined as follows: (i) Determine the number of ``carryover'' acres by dividing the number of pounds of carryover tobacco from the prior year by the normal yield for the farm for that year. Reduce such ``carryover'' acres by the amount determined by subtracting the harvested acreage from the allotment in the current year. If the ``carryover'' acres are entirely offset by the underharvested acreage, the percent excess will be zero and a MQ-76 may be issued if the farm otherwise is eligible for price support and the remainder of this paragraph (f)(4) of this section are inapplicable. (ii) Determine the number of ``within quota carryover acres'' by multiplying the ``carryover acres'' by the ``percent within quota'' (i.e., 100 percent minus the percent excess) for the year in which the carryover tobacco was produced. (iii) Determine the ``total acres'' of tobacco by adding the ``carryover [[Page 147]] acres'' and the acreage of tobacco harvested in the current year. (iv) Determine the ``excess acres'' by subtracting from the ``total acres'' the sum of the current year's allotment and the ``within quota carryover acres.'' (v) Determine the percent excess by dividing the ``excess acres'' by the ``total acres.'' (5) Except as provided in paragraphs (f)(3) and (4) of this section, a zero penalty rate shall be entered on any MQ-77 issued in accordance with this section. (g) Other marketing card data. Other data specified in instructions issued by the Deputy Administrator shall be entered on the marketing card.