Question
May 21, 2003
Mr. B. Michael Verne
Premerger Notification Office
Bureau of Competition
Federal Trade Commission
Room 303
600 Pennsylvania Ave., N.W.
Washington, DC 20580
Re:Section 802.2(g) Agricultural Property Exemption
Dear Mr. Verne:
I am writing this letter toconfirm my understanding of our telephone conversation today regarding theexemption under Section 802.2(g) of the exemption rules promulgated under theHarp Scott-Rodino Antitrust Improvements Act of 1976 and, in particular, the802.2(g) exemption as it relates to real property used for timber tractoperations.
During our conversation, we firstdiscussed whether or not the definition of agricultural property exempt under802.2(g) included real property used for timber tract operations. You indicatedthat timberland was not considered agricultural property subject to the802.2(g) exemption prior to the amendment to 802.2(g) removing the reference toSIC Major Groups 01 and 02. You indicated that, since the introduction of NAICSSector 11 to 802.2(g), however, timberland has been (and currently is) includedin the definition of exempt agricultural property.
We then discussed the 2002amendments to 802.2(g) removing "associated agricultural assets" fromthe agricultural properly exemption. You indicated to me that, as a result ofthose amendments, harvested crops (including cut trees no longer growing ontimberland) were considered to be inventory and, therefore, were not includedas exempt agricultural property under 802.2(g). You also indicated, however,that unharvested crops (including uncut trees growing on timberland) wereconsidered part of the agricultural property and, therefore, wereincluded as exempt agricultural property under 802.2(g).
If you believe that this letter doesnot accurately reflect our conversation or your conclusions, please give me acall at as soon as possible.
Thank you again for yourassistance in this matter.