[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: 7CFR729.311]

[Page 206-207]
 
                          TITLE 7--AGRICULTURE
 
                            CHAPTER VII--FARM
                SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
 
PART 729--PEANUTS--Table of Contents
 
   Subpart C--Marketing Cards, Marketings, Penalties, and Assessments
 
Sec. 729.311  Peanuts on which penalties are not to be assessed.

    Notwithstanding other provisions in this subpart:
    (a) Error in weight. A penalty shall not be collected if such 
penalty results from an error in net weight of a lot of peanuts 
marketed, as reported on Form FSA-1007, Inspection Certificate and Sales 
Memorandum, and the error does not exceed one-tenth of one percent of 
the correct net weight of such lot of peanuts. However, notwithstanding 
the preceding sentence, in the case of fraud or conspiracy, a penalty 
shall be due for any error in the net weight, regardless of the size or 
amount of the error.
    (b) Peanuts grown on State prison farms. A penalty shall not be 
collected on peanuts grown on State prison farms for consumption within 
such State prison system, and so consumed.
    (c) Peanuts grown for experimental or research purposes. (1) A 
penalty shall not be collected on the marketing of any peanuts that are:
    (i) Grown only for experimental or research purposes, which shall 
include seed determined by the Deputy Administrator to be breeder or 
foundation seed;
    (ii) Grown on land owned or leased by a publicly-owned agricultural 
experiment station, which shall include a State-operated seed 
organization;
    (iii) Produced at public expense by employees of entities described 
in paragraph (c)(1)(ii) of this section, or are produced by farmers for 
seed determined by the Deputy Administrator to be breeder or foundation 
seed peanuts for experimental or research purposes pursuant to an 
agreement with a publicly-owned agricultural experiment station, which 
shall include such State-operated seed organizations.
    (2) The exemption from penalty, as provided in paragraph (c)(1) of 
this section shall not apply unless:

[[Page 207]]

    (i) Such peanuts are used for purposes other than for:
    (A) Food or feed, or
    (B) Seed to produce peanuts for food.
    (ii) The director of the applicable publicly-owned agricultural 
experiment station, including State-operated seed organizations, 
furnishes to the State FSA Executive Director:
    (A) A list, by county, showing for each farm on which such peanuts 
are grown for experimental or research purposes, the name and address of 
the entity that supplies information; the name of the owner, and 
operator, if different from the owner, of the farm on which such peanuts 
are grown; and the acreage of peanuts grown for such experimental or 
research purposes;
    (B) A signed statement that such acreage of peanuts will be grown 
for experimental and research purposes including breeder and foundation 
seed; such production of peanuts is necessary for the State-operated 
program conducted for such purposes by the entity; and such peanuts will 
be produced under the direction of representatives of such entity; and
    (C) Such additional reports, if any, as the Deputy Administrator may 
require.
    (d) Unique strains used to plant green peanut acreage. Seed peanuts 
used to plant peanuts for use as green peanuts shall not be subject to 
penalty if the county committee determines that such seed peanuts:
    (1) Are unique strains of peanuts used for green peanuts.
    (2) Are not commercially available, and,
    (3) Are used exclusively to plant peanuts for harvest as green 
peanuts.