80_FR_50089 80 FR 49930 - Walnuts Grown in California; Increased Assessment Rate

80 FR 49930 - Walnuts Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 159 (August 18, 2015)

Page Range49930-49933
FR Document2015-20395

This proposed rule would implement a recommendation from the California Walnut Board (Board) to increase the assessment rate established for the 2015-16 and subsequent marketing years from $0.0189 to $0.0379 per kernelweight pound of assessable walnuts. The Board locally administers the marketing order and is comprised of growers and handlers of walnuts operating within the area of production. Assessments upon walnut handlers are used by the Board to fund reasonable and necessary expenses of the program. The marketing year begins September 1 and ends August 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 159 (Tuesday, August 18, 2015)
[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Proposed Rules]
[Pages 49930-49933]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20395]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Doc. No. AMS-FV-15-0026; FV15-984-1 PR]


Walnuts Grown in California; Increased Assessment Rate

AGENCY:  Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would implement a recommendation from the 
California Walnut Board (Board) to increase the assessment rate 
established for the 2015-16 and subsequent marketing years from $0.0189 
to $0.0379 per kernelweight pound of assessable walnuts. The Board 
locally administers the marketing order and is comprised of growers and 
handlers of walnuts operating within the area of production. 
Assessments upon walnut handlers are used by the Board to fund 
reasonable and necessary expenses of the program. The marketing year 
begins September 1 and ends August 31. The assessment rate would remain 
in effect indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by September 17, 2015.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, 
Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://

[[Page 49931]]

www.regulations.gov. All comments submitted in response to this 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the Internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior Marketing 
Specialist, or Martin Engeler, Regional Manager, California Marketing 
Field Office, Marketing Order and Agreement Division, Fruit and 
Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906, or Email: Terry.Vawter@ams.usda.gov or 
Martin.Engeler@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Jeffery.Smutny@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing 
Order No. 984, as amended (7 CFR part 984), regulating the handling of 
walnuts grown in California, hereinafter referred to as the ``order.'' 
The order is effective under the Agricultural Marketing Agreement Act 
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the 
``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, 
California walnut handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as proposed herein would be applicable to all 
assessable walnuts beginning on September 1, 2015, and continue until 
amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would increase the assessment rate established 
for the Board for the 2015-16 and subsequent marketing years from 
$0.0189 to $0.0379 per kernelweight pound of assessable walnuts.
    The California walnut marketing order provides authority for the 
Board, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Board are growers and handlers of 
California walnuts. They are familiar with the Board's needs and with 
the costs for goods and services in their local area and are thus in a 
position to formulate an appropriate budget and assessment rate. The 
assessment rate is formulated and discussed in a public meeting. Thus, 
all directly affected persons have an opportunity to participate and 
provide input.
    For the 2013-14 and subsequent marketing years, the Board 
recommended, and USDA approved, an assessment rate of $0.0189 per 
kernelweight pound of assessable walnuts that would continue in effect 
from year to year unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Board or other 
information available to USDA.
    The Board met on June 4, 2015, and unanimously recommended 2015-16 
expenditures of $22,668,980, and an assessment rate of $0.0379 per 
kernelweight pound of assessable walnuts. In comparison, last year's 
budgeted expenditures were $9,861,810. The assessment rate of $0.0379 
is $0.019 per pound higher than the rate currently in effect. The 
quantity of assessable walnuts for the 2015-16 marketing year is 
estimated at 518,000 tons inshell or 466,200,000 kernelweight pounds, 
which is the five-year average of walnut production. At the recommended 
higher assessment rate of $0.0379 per kernelweight pound, the Board 
should collect approximately $17,668,980 in assessment income. The 
Board also recommended using $5,000,000 from its monetary reserve to 
help fund the increase in proposed expenditures. Assessments and funds 
from the reserve would be adequate to cover its 2015-16 budgeted 
expenses of $22,668,980.
    The Board noted that sales of California walnuts in the domestic 
market have been declining in recent years, and believes that more 
market development and promotion would reverse the trend. Thus, they 
are committed to increasing expenditures on domestic marketing 
promotion projects and programs.
    The following table compares major budget expenditures recommended 
by the Board for the 2014-15 and 2015-16 marketing years:

------------------------------------------------------------------------
     Budget expense categories           2014-15            2015-16
------------------------------------------------------------------------
Employee Expenses.................         $1,711,000         $1,846,500
Travel/Board Expenses/Annual Audit            190,000            191,000
Office Expenses...................            241,000            254,000
Controlled Purchases..............             10,000             10,000
Crop Acreage Survey...............                  0            100,000
Crop Estimate.....................            126,000            130,000
Production Research Director......             94,500             94,500
Production Research...............          1,600,000          1,700,000
Sustainability Project............             75,000             75,000
Grades and Standards Research.....            600,000            600,000
Domestic Market Development.......          5,742,000         18,478,440
Reserve for Contingency...........            166,310             32,790
------------------------------------------------------------------------

    The assessment rate recommended by the Board was derived by 
dividing anticipated assessment revenue needed by estimated shipments 
of California walnuts certified as merchantable. The 518,000 ton 
(inshell) estimate for

[[Page 49932]]

merchantable shipments is an average of shipments during five prior 
years, and that volume has routinely been used in recent years to 
formulate the crop estimate. Pursuant to Sec.  984.51(b) of the order, 
this figure is converted to a merchantable kernelweight basis using a 
factor of 0.45 (518,000 tons x 2,000 pounds per ton x 0.45), which 
yields 466,200,000 kernelweight pounds. At $0.0379 per pound, the new 
assessment rate should generate $17,668,980 in assessment income. Along 
with $5,000,000 from the Board's reserve fund, this assessment rate 
would allow the Board to cover its expenses.
    Section 984.69 of the order authorizes the Board to carry over 
excess funds into subsequent marketing years as a reserve, provided 
that funds already in the reserve do not exceed approximately two 
years' budgeted expenses. By using $5,000,000 from their reserve, the 
Board is ensuring that the funds within the reserve remain within the 
requirements of the marketing order.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Board or other available information.
    Although this assessment rate would be effective for an indefinite 
period, the Board would continue to meet prior to or during each 
marketing year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Board meetings are available from the Board or USDA. Board 
meetings are open to the public and interested persons may express 
their views at these meetings. USDA would evaluate Board 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Board's 2015-16 budget and those for 
subsequent marketing years would be reviewed, and, as appropriate, 
approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 4,500 growers of California walnuts in the 
production area and approximately 90 handlers subject to regulation 
under the marketing order. The Small Business Administration (SBA) 
defines small businesses (13 CFR 121.201) as those having annual 
receipts of less than $750,000, and small agricultural service firms 
are defined as those having annual receipts of less than $7,000,000.
    According to USDA's National Agricultural Statistics Service's 
(NASS's) 2012 Census of Agriculture, approximately 89 percent of 
California's walnut farms were smaller than 100 acres. Further, NASS 
reports that the average yield for 2014 was 1.95 tons per acre, and the 
average price received for 2013 was $3,710 per ton. No average price 
for 2014 has been reported yet.
    A 100-acre farm with an average yield of 1.95 tons per acre would 
therefore have been expected to produce about 195 tons of walnuts 
during 2010-11. At $3,710 per ton, that farm's production would have 
had an approximate value of $723,450. Since Census of Agriculture 
information indicates that the majority of California's walnut farms 
are smaller than 100 acres, it could be concluded that the majority of 
the growers had receipts of less than $723,450 in 2014-15, well below 
the SBA threshold of $750,000. Thus, the majority of California's 
walnut growers would be considered small growers according to SBA's 
definition.
    According to information supplied by the Board, approximately two-
thirds of California's walnut handlers shipped merchantable walnuts 
valued under $7,000,000 during the 2014-15 marketing year; and would, 
therefore, be considered small handlers according to the SBA 
definition.
    This proposed rule would increase the assessment rate established 
for the Board and collected from handlers for the 2015-16 and 
subsequent marketing years from $0.0189 to $0.0379 per kernelweight 
pound of assessable walnuts. The Board unanimously recommended 2015-16 
expenditures of $22,668,980 and an assessment rate of $0.0379 per 
kernelweight pound of assessable walnuts. The proposed assessment rate 
of $0.0379 is $0.019 higher than the 2014-15 rate. The quantity of 
assessable walnuts for the 2015-16 marketing year is estimated at 
518,000 tons inshell weight, or 466,200,000 kernelweight pounds. Thus, 
the $0.0379 rate should provide $17,668,980 in assessment income.
    The Board also recommended using $5,000,000 from its monetary 
reserve to augment the assessment income. Thus, assessments plus the 
$5,000,000 would be adequate to meet this year's expenses. The 
increased assessment rate is primarily due to increased domestic 
marketing promotion and programs. The Board has become concerned with 
the declining sales of California walnuts in the domestic market, and 
believes that sagging sales can be improved through increased 
promotional activities. Thus, they recommended an increase in domestic 
market development from approximately $5.7 million during the 2014-15 
marketing year to approximately $18.4 million for the 2015-16 marketing 
year.
    The major expenses for the 2015-16 marketing year include: 
$1,846,500 for employee expenses; $191,000 for travel, board, and 
annual audit expenses; $254,000 for office expenses; $10,000 for 
controlled purchases; $100,000 for the crop acreage survey; $130,000 
for the crop estimate; $94,500 for the salary of the Production 
Research Director; $1,700,000 for production research; $75,000 for a 
sustainability project; $600,000 for grades and standards research; 
$18,478,440 for domestic market development projects; and $32,790 for 
the contingency reserve.
    In comparison, these expenditures for the 2014-15 marketing year 
were: $1,711,000 for employee expenses; $190,000 for travel, board, and 
annual audit expenses; $241,000 for office expenses; $10,000 for 
controlled purchases; $126,000 for the crop estimate; $94,500 for the 
salary of the Production Research Director; $1,600,000 for production 
research; $75,000 for the sustainability project; $600,000 for grades 
and standards research; $5,742,000 for domestic market development 
projects; and $166,310 for the contingency reserve. There was no 
acreage survey expense in the 2014-15 marketing year.
    The Board reviewed and unanimously recommended 2015-16 expenditures 
of $22,668,980. Prior to arriving at this budget, the Board considered 
alternative expenditure levels, such as spending an additional 
$5,000,000, or $10,000,000 for domestic market development projects, as 
well as alternate assessment rate levels. They ultimately decided that 
the recommended expenditure and assessment levels were reasonable and 
necessary to assist in improving domestic sales, as well as properly 
administering the order. The assessment rate of $0.0379 per 
kernelweight pound of assessable walnuts was derived by

[[Page 49933]]

dividing anticipated assessment revenue needed by expected shipments of 
California walnuts certified as merchantable. Merchantable shipments 
for the year are estimated at 466,200,000 pounds. It was determined 
that $17,668,980 in assessment income was needed, and assessment income 
combined with funds from the monetary reserve would allow the Board to 
cover its expenses of $22,668,980.
    The Board also considered information from various committees who 
deliberate and formulate their own budgets of expenses and make 
recommendations to the Board. The committees include the Market 
Development, Production Research, Budget and Personnel, and Grades and 
Standards committees.
    Unexpended funds may be retained in a financial reserve, provided 
that funds in the financial reserve do not exceed approximately two 
years' budgeted expenses.
    According to NASS, the season average grower prices for the years 
2012 and 2013 were $3,030 and $3,710 per ton, respectively. No prices 
have yet been reported for 2014. These prices provide a range within 
which the 2015-16 season average price could fall. Dividing these 
average grower prices by 2,000 pounds per ton provides an inshell price 
per pound range of $1.52 to $1.86. Dividing these inshell per pound 
prices by the 0.45 conversion factor (inshell to kernelweight) 
established in the order yields a 2015-16 price range estimate of $3.38 
to $4.13 per kernelweight pound of assessable walnuts.
    To calculate the percentage of grower revenue represented by the 
assessment rate, the assessment rate of $0.0379 per kernelweight pound 
is divided by the low and high estimates of the price range. The 
estimated assessment revenue for the 2015-16 marketing year as a 
percentage of total grower revenue will thus likely range between 0.92 
and 1.11 percent.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to growers. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Board's meeting was widely publicized 
throughout the California walnut industry, and all interested persons 
were invited to attend the meeting and encouraged to participate in 
Board deliberations on all issues. Like all Board meetings, the June 4, 
2015, meeting was a public meeting and all entities, both large and 
small, were free to express views on this issue. Finally, interested 
persons are invited to submit comments on this proposed rule, including 
the regulatory and informational impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178 (Walnuts Grown in California). No changes in 
those requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large California walnut 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/MarketingOrderSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Jeffrey Smutny at the previously 
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 2015-16 marketing year begins on September 1, 2015, 
and the marketing order requires that the rate of assessment for each 
marketing year apply to all assessable walnuts handled during the year; 
(2) the Board needs to have sufficient funds to pay its expenses, which 
are incurred on a continuous basis; and (3) handlers are aware of this 
action, which was unanimously recommended by the Board at a public 
meeting and is similar to other assessment rate actions issued in past 
years.

List of Subjects in 7 CFR Part 984

    Marketing agreements, Nuts, Reporting and recordkeeping 
requirements, Walnuts.

    For the reasons set forth in the preamble, 7 CFR part 984 is 
proposed to be amended as follows:

PART 984--WALNUTS GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 984 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Section 984.347 is revised to read as follows:


Sec.  984.347  Assessment rate.

    On and after September 1, 2015, an assessment rate of $0.0379 per 
kernelweight pound is established for California merchantable walnuts.

    Dated: August 13, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-20395 Filed 8-17-15; 8:45 am]
 BILLING CODE 3410-02--P



                                                      49930

                                                      Proposed Rules                                                                                                Federal Register
                                                                                                                                                                    Vol. 80, No. 159

                                                                                                                                                                    Tuesday, August 18, 2015



                                                      This section of the FEDERAL REGISTER                    0264; Telephone: (202) 720–8356;                        Authority: 7 U.S.C. 3001–3006.
                                                      contains notices to the public of the proposed          Email: Trista.Etzig@ams.usda.gov.                       Dated: August 13, 2015.
                                                      issuance of rules and regulations. The                  SUPPLEMENTARY INFORMATION: The FMPP                   Rex A. Barnes,
                                                      purpose of these notices is to give interested
                                                      persons an opportunity to participate in the
                                                                                                              grant program is authorized under the                 Associate Administrator, Agricultural
                                                      rule making prior to the adoption of the final          Farmer-to-Consumer Direct Marketing                   Marketing Service.
                                                      rules.                                                  Act of 1976 (7 U.S.C. 3001–3006) (1976                [FR Doc. 2015–20384 Filed 8–17–15; 8:45 am]
                                                                                                              Act) and the amendment to the 1976                    BILLING CODE 3410–02–P
                                                                                                              Act, the Farmers’ Market Promotion
                                                      DEPARTMENT OF AGRICULTURE                               Program (7 U.S.C. 3005).
                                                                                                                 This action withdraws a proposed                   DEPARTMENT OF AGRICULTURE
                                                      Agricultural Marketing Service                          rule published in the Federal Register
                                                                                                              on January 19, 2011 (76 FR 3046) to                   Agricultural Marketing Service
                                                      7 CFR Part 185                                          establish a regulation for AMS’s FMPP.
                                                      [Document No. AMS–TM–10–0088; TM–08–                    The FMPP is a competitive grant                       7 CFR Part 984
                                                      07]                                                     program that makes funds available to                 [Doc. No. AMS–FV–15–0026; FV15–984–1
                                                                                                              eligible entities for projects to establish,          PR]
                                                      RIN 0581–AC83
                                                                                                              expand, and promote farmers markets,
                                                      Farmers’ Market Promotion Program                       roadside stands, community-supported                  Walnuts Grown in California; Increased
                                                      Regulation; Withdrawal of a Proposed                    agriculture programs, agritourism                     Assessment Rate
                                                      Rule                                                    activities, and other direct producer-to-
                                                                                                              consumer marketing opportunities. The                 AGENCY:  Agricultural Marketing Service,
                                                      AGENCY:    Agricultural Marketing Service,              proposed rule would have established                  USDA.
                                                      USDA.                                                   eligibility and application requirements,             ACTION: Proposed rule.
                                                      ACTION:   Proposed rule; withdrawal.                    the review and approval process, and                  SUMMARY:   This proposed rule would
                                                                                                              grant administration procedures for the               implement a recommendation from the
                                                      SUMMARY:     This document withdraws a                  FMPP. Additionally, the proposed rule
                                                      proposed rule published in the Federal                                                                        California Walnut Board (Board) to
                                                                                                              announced AMS’s intent to request                     increase the assessment rate established
                                                      Register on January 19, 2011 to establish               approval from the OMB for a new
                                                      a regulation for the Agricultural                                                                             for the 2015–16 and subsequent
                                                                                                              information collection for the FMPP.                  marketing years from $0.0189 to $0.0379
                                                      Marketing Service’s (AMS) Farmers’                         During the comment period, January
                                                      Market Promotion Program (FMPP). The                                                                          per kernelweight pound of assessable
                                                                                                              19 through March 21, 2011, the U.S.                   walnuts. The Board locally administers
                                                      FMPP is a competitive grant program                     Department of Agriculture received 11
                                                      that makes funds available to eligible                                                                        the marketing order and is comprised of
                                                                                                              timely comments. These comments may                   growers and handlers of walnuts
                                                      entities for projects to establish, expand,             be viewed on the Internet at http://
                                                      and promote farmers markets, roadside                                                                         operating within the area of production.
                                                                                                              www.regulations.gov. One comment                      Assessments upon walnut handlers are
                                                      stands, community-supported                             generally opposed the proposed rule
                                                      agriculture programs, agritourism                                                                             used by the Board to fund reasonable
                                                                                                              and one duplicated a comment already                  and necessary expenses of the program.
                                                      activities, and other direct producer-to-               submitted. Of the remaining nine
                                                      consumer marketing opportunities. The                                                                         The marketing year begins September 1
                                                                                                              comments received, seven addressed                    and ends August 31. The assessment
                                                      proposed rule would have established                    multiple sections of the proposed rule
                                                      eligibility and application requirements,                                                                     rate would remain in effect indefinitely
                                                                                                              and the others provided                               unless modified, suspended, or
                                                      the review and approval process, and                    recommendations regarding how to
                                                      grant administration procedures for the                                                                       terminated.
                                                                                                              implement the FMPP program which
                                                      FMPP. Additionally, the proposed rule                   were outside the scope of the proposed                DATES: Comments must be received by
                                                      announced AMS’s intent to request                       rule.                                                 September 17, 2015.
                                                      approval from the Office of Management                     AMS is consolidating the procedures                ADDRESSES: Interested persons are
                                                      and Budget (OMB) for a new                              for all of its grant programs, including              invited to submit written comments
                                                      information collection for the FMPP.                    the FMPP, into one regulation. Thus, a                concerning this proposed rule.
                                                      AMS is consolidating the procedures for                 separate regulation for the FMPP is no                Comments must be sent to the Docket
                                                      all of its grant programs, including the                longer needed and the proposed rule                   Clerk, Marketing Order and Agreement
                                                      FMPP, into one regulation. Thus, a                      published in the Federal Register on                  Division, Fruit and Vegetable Program,
                                                      separate regulation for the FMPP is no                  January 19, 2011 (76 FR 3046), is hereby              AMS, USDA, 1400 Independence
                                                      longer needed and the 2011 proposed                     withdrawn.                                            Avenue SW., STOP 0237, Washington,
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      rule is withdrawn.                                                                                            DC 20250–0237; Fax: (202) 720–8938; or
                                                      DATES: Effective August 19, 2015, the                   List of Subjects in 7 CFR Part 185                    Internet: http://www.regulations.gov.
                                                      proposed rule published on January 19,                    Farmers’ Market Promotion Program,                  Comments should reference the
                                                      2011 (76 FR 3046) is withdrawn.                         FMPP, FMPP guidelines, FMPP                           document number and the date and
                                                      FOR FURTHER INFORMATION CONTACT:                        application requirements, FMPP                        page number of this issue of the Federal
                                                      Trista Etzig, Grants Division Director,                 voluntary narrative and budget forms,                 Register and will be available for public
                                                      AMS Transportation and Marketing                        Confidentiality, FMPP grant agreement,                inspection in the Office of the Docket
                                                      Program, 1400 Independence Avenue                       and FMPP awardee grant acceptance                     Clerk during regular business hours, or
                                                      SW., Stop 0264, Washington, DC 20250–                   terms and conditions.                                 can be viewed at: http://


                                                 VerDate Sep<11>2014   19:42 Aug 17, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\18AUP1.SGM   18AUP1


                                                                                     Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Proposed Rules                                                                           49931

                                                      www.regulations.gov. All comments                                         proposed herein would be applicable to                                       For the 2013–14 and subsequent
                                                      submitted in response to this proposed                                    all assessable walnuts beginning on                                       marketing years, the Board
                                                      rule will be included in the record and                                   September 1, 2015, and continue until                                     recommended, and USDA approved, an
                                                      will be made available to the public.                                     amended, suspended, or terminated.                                        assessment rate of $0.0189 per
                                                      Please be advised that the identity of the                                   The Act provides that administrative                                   kernelweight pound of assessable
                                                      individuals or entities submitting the                                    proceedings must be exhausted before                                      walnuts that would continue in effect
                                                      comments will be made public on the                                       parties may file suit in court. Under                                     from year to year unless modified,
                                                      Internet at the address provided above.                                   section 608c(15)(A) of the Act, any                                       suspended, or terminated by USDA
                                                      FOR FURTHER INFORMATION CONTACT:                                          handler subject to an order may file                                      upon recommendation and information
                                                      Terry Vawter, Senior Marketing                                            with USDA a petition stating that the                                     submitted by the Board or other
                                                      Specialist, or Martin Engeler, Regional                                   order, any provision of the order, or any                                 information available to USDA.
                                                      Manager, California Marketing Field                                       obligation imposed in connection with                                        The Board met on June 4, 2015, and
                                                      Office, Marketing Order and Agreement                                     the order is not in accordance with law                                   unanimously recommended 2015–16
                                                      Division, Fruit and Vegetable Program,                                    and request a modification of the order                                   expenditures of $22,668,980, and an
                                                      AMS, USDA; Telephone: (559) 487–                                          or to be exempted therefrom. Such                                         assessment rate of $0.0379 per
                                                      5901, Fax: (559) 487–5906, or Email:                                      handler is afforded the opportunity for                                   kernelweight pound of assessable
                                                      Terry.Vawter@ams.usda.gov or                                              a hearing on the petition. After the                                      walnuts. In comparison, last year’s
                                                      Martin.Engeler@ams.usda.gov.                                              hearing, USDA would rule on the                                           budgeted expenditures were $9,861,810.
                                                         Small businesses may request                                           petition. The Act provides that the                                       The assessment rate of $0.0379 is $0.019
                                                      information on complying with this                                        district court of the United States in any                                per pound higher than the rate currently
                                                      regulation by contacting Jeffrey Smutny,                                  district in which the handler is an                                       in effect. The quantity of assessable
                                                      Marketing Order and Agreement                                             inhabitant, or has his or her principal                                   walnuts for the 2015–16 marketing year
                                                      Division, Fruit and Vegetable Program,                                    place of business, has jurisdiction to                                    is estimated at 518,000 tons inshell or
                                                      AMS, USDA, 1400 Independence                                              review USDA’s ruling on the petition,                                     466,200,000 kernelweight pounds,
                                                      Avenue SW., STOP 0237, Washington,                                        provided an action is filed not later than                                which is the five-year average of walnut
                                                      DC 20250–0237; Telephone: (202) 720–                                      20 days after the date of the entry of the                                production. At the recommended higher
                                                      2491, Fax: (202) 720–8938, or Email:                                      ruling.                                                                   assessment rate of $0.0379 per
                                                      Jeffery.Smutny@ams.usda.gov.                                                 This proposed rule would increase                                      kernelweight pound, the Board should
                                                      SUPPLEMENTARY INFORMATION: This                                           the assessment rate established for the                                   collect approximately $17,668,980 in
                                                      proposed rule is issued under Marketing                                   Board for the 2015–16 and subsequent                                      assessment income. The Board also
                                                      Order No. 984, as amended (7 CFR part                                     marketing years from $0.0189 to $0.0379                                   recommended using $5,000,000 from its
                                                      984), regulating the handling of walnuts                                  per kernelweight pound of assessable                                      monetary reserve to help fund the
                                                      grown in California, hereinafter referred                                 walnuts.                                                                  increase in proposed expenditures.
                                                      to as the ‘‘order.’’ The order is effective                                  The California walnut marketing
                                                                                                                                                                                                          Assessments and funds from the reserve
                                                      under the Agricultural Marketing                                          order provides authority for the Board,
                                                                                                                                                                                                          would be adequate to cover its 2015–16
                                                      Agreement Act of 1937, as amended (7                                      with the approval of USDA, to formulate
                                                                                                                                                                                                          budgeted expenses of $22,668,980.
                                                      U.S.C. 601–674), hereinafter referred to                                  an annual budget of expenses and
                                                      as the ‘‘Act.’’                                                           collect assessments from handlers to                                         The Board noted that sales of
                                                         The Department of Agriculture                                          administer the program. The members                                       California walnuts in the domestic
                                                      (USDA) is issuing this proposed rule in                                   of the Board are growers and handlers                                     market have been declining in recent
                                                      conformance with Executive Orders                                         of California walnuts. They are familiar                                  years, and believes that more market
                                                      12866, 13563, and 13175.                                                  with the Board’s needs and with the                                       development and promotion would
                                                         This proposed rule has been reviewed                                   costs for goods and services in their                                     reverse the trend. Thus, they are
                                                      under Executive Order 12988, Civil                                        local area and are thus in a position to                                  committed to increasing expenditures
                                                      Justice Reform. Under the marketing                                       formulate an appropriate budget and                                       on domestic marketing promotion
                                                      order now in effect, California walnut                                    assessment rate. The assessment rate is                                   projects and programs.
                                                      handlers are subject to assessments.                                      formulated and discussed in a public                                         The following table compares major
                                                      Funds to administer the order are                                         meeting. Thus, all directly affected                                      budget expenditures recommended by
                                                      derived from such assessments. It is                                      persons have an opportunity to                                            the Board for the 2014–15 and 2015–16
                                                      intended that the assessment rate as                                      participate and provide input.                                            marketing years:

                                                                                                               Budget expense categories                                                                                 2014–15           2015–16

                                                      Employee Expenses ....................................................................................................................................                  $1,711,000     $1,846,500
                                                      Travel/Board Expenses/Annual Audit ..........................................................................................................                              190,000        191,000
                                                      Office Expenses ...........................................................................................................................................                241,000        254,000
                                                      Controlled Purchases ..................................................................................................................................                     10,000         10,000
                                                      Crop Acreage Survey ..................................................................................................................................                           0        100,000
                                                      Crop Estimate ..............................................................................................................................................               126,000        130,000
                                                      Production Research Director .....................................................................................................................                          94,500         94,500
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      Production Research ...................................................................................................................................                  1,600,000      1,700,000
                                                      Sustainability Project ...................................................................................................................................                  75,000         75,000
                                                      Grades and Standards Research ................................................................................................................                             600,000        600,000
                                                      Domestic Market Development ...................................................................................................................                          5,742,000     18,478,440
                                                      Reserve for Contingency .............................................................................................................................                      166,310         32,790



                                                        The assessment rate recommended by                                      anticipated assessment revenue needed                                     walnuts certified as merchantable. The
                                                      the Board was derived by dividing                                         by estimated shipments of California                                      518,000 ton (inshell) estimate for



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                                                      49932                  Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Proposed Rules

                                                      merchantable shipments is an average of                 Act, and the rules issued thereunder, are             Thus, the $0.0379 rate should provide
                                                      shipments during five prior years, and                  unique in that they are brought about                 $17,668,980 in assessment income.
                                                      that volume has routinely been used in                  through group action of essentially                      The Board also recommended using
                                                      recent years to formulate the crop                      small entities acting on their own                    $5,000,000 from its monetary reserve to
                                                      estimate. Pursuant to § 984.51(b) of the                behalf.                                               augment the assessment income. Thus,
                                                      order, this figure is converted to a                       There are approximately 4,500                      assessments plus the $5,000,000 would
                                                      merchantable kernelweight basis using a                 growers of California walnuts in the                  be adequate to meet this year’s
                                                      factor of 0.45 (518,000 tons × 2,000                    production area and approximately 90                  expenses. The increased assessment rate
                                                      pounds per ton × 0.45), which yields                    handlers subject to regulation under the              is primarily due to increased domestic
                                                      466,200,000 kernelweight pounds. At                     marketing order. The Small Business                   marketing promotion and programs. The
                                                      $0.0379 per pound, the new assessment                   Administration (SBA) defines small                    Board has become concerned with the
                                                      rate should generate $17,668,980 in                     businesses (13 CFR 121.201) as those                  declining sales of California walnuts in
                                                      assessment income. Along with                           having annual receipts of less than                   the domestic market, and believes that
                                                      $5,000,000 from the Board’s reserve                     $750,000, and small agricultural service              sagging sales can be improved through
                                                      fund, this assessment rate would allow                  firms are defined as those having annual              increased promotional activities. Thus,
                                                      the Board to cover its expenses.                        receipts of less than $7,000,000.                     they recommended an increase in
                                                         Section 984.69 of the order authorizes                  According to USDA’s National                       domestic market development from
                                                      the Board to carry over excess funds                    Agricultural Statistics Service’s                     approximately $5.7 million during the
                                                      into subsequent marketing years as a                    (NASS’s) 2012 Census of Agriculture,                  2014–15 marketing year to
                                                      reserve, provided that funds already in                 approximately 89 percent of California’s              approximately $18.4 million for the
                                                      the reserve do not exceed approximately                 walnut farms were smaller than 100                    2015–16 marketing year.
                                                      two years’ budgeted expenses. By using                  acres. Further, NASS reports that the                    The major expenses for the 2015–16
                                                      $5,000,000 from their reserve, the Board                average yield for 2014 was 1.95 tons per              marketing year include: $1,846,500 for
                                                      is ensuring that the funds within the                                                                         employee expenses; $191,000 for travel,
                                                                                                              acre, and the average price received for
                                                      reserve remain within the requirements                                                                        board, and annual audit expenses;
                                                                                                              2013 was $3,710 per ton. No average
                                                      of the marketing order.                                                                                       $254,000 for office expenses; $10,000
                                                                                                              price for 2014 has been reported yet.
                                                         The proposed assessment rate would                                                                         for controlled purchases; $100,000 for
                                                                                                                 A 100-acre farm with an average yield
                                                      continue in effect indefinitely unless                                                                        the crop acreage survey; $130,000 for
                                                                                                              of 1.95 tons per acre would therefore
                                                      modified, suspended, or terminated by                                                                         the crop estimate; $94,500 for the salary
                                                                                                              have been expected to produce about                   of the Production Research Director;
                                                      USDA upon recommendation and
                                                      information submitted by the Board or                   195 tons of walnuts during 2010–11. At                $1,700,000 for production research;
                                                      other available information.                            $3,710 per ton, that farm’s production                $75,000 for a sustainability project;
                                                         Although this assessment rate would                  would have had an approximate value                   $600,000 for grades and standards
                                                      be effective for an indefinite period, the              of $723,450. Since Census of                          research; $18,478,440 for domestic
                                                      Board would continue to meet prior to                   Agriculture information indicates that                market development projects; and
                                                      or during each marketing year to                        the majority of California’s walnut farms             $32,790 for the contingency reserve.
                                                      recommend a budget of expenses and                      are smaller than 100 acres, it could be                  In comparison, these expenditures for
                                                      consider recommendations for                            concluded that the majority of the                    the 2014–15 marketing year were:
                                                      modification of the assessment rate. The                growers had receipts of less than                     $1,711,000 for employee expenses;
                                                      dates and times of Board meetings are                   $723,450 in 2014–15, well below the                   $190,000 for travel, board, and annual
                                                      available from the Board or USDA.                       SBA threshold of $750,000. Thus, the                  audit expenses; $241,000 for office
                                                      Board meetings are open to the public                   majority of California’s walnut growers               expenses; $10,000 for controlled
                                                      and interested persons may express                      would be considered small growers                     purchases; $126,000 for the crop
                                                      their views at these meetings. USDA                     according to SBA’s definition.                        estimate; $94,500 for the salary of the
                                                      would evaluate Board recommendations                       According to information supplied by               Production Research Director;
                                                      and other available information to                      the Board, approximately two-thirds of                $1,600,000 for production research;
                                                      determine whether modification of the                   California’s walnut handlers shipped                  $75,000 for the sustainability project;
                                                      assessment rate is needed. Further                      merchantable walnuts valued under                     $600,000 for grades and standards
                                                      rulemaking would be undertaken as                       $7,000,000 during the 2014–15                         research; $5,742,000 for domestic
                                                      necessary. The Board’s 2015–16 budget                   marketing year; and would, therefore, be              market development projects; and
                                                      and those for subsequent marketing                      considered small handlers according to                $166,310 for the contingency reserve.
                                                      years would be reviewed, and, as                        the SBA definition.                                   There was no acreage survey expense in
                                                      appropriate, approved by USDA.                             This proposed rule would increase                  the 2014–15 marketing year.
                                                                                                              the assessment rate established for the                  The Board reviewed and unanimously
                                                      Initial Regulatory Flexibility Analysis                 Board and collected from handlers for                 recommended 2015–16 expenditures of
                                                        Pursuant to requirements set forth in                 the 2015–16 and subsequent marketing                  $22,668,980. Prior to arriving at this
                                                      the Regulatory Flexibility Act (RFA) (5                 years from $0.0189 to $0.0379 per                     budget, the Board considered alternative
                                                      U.S.C. 601–612), the Agricultural                       kernelweight pound of assessable                      expenditure levels, such as spending an
                                                      Marketing Service (AMS) has                             walnuts. The Board unanimously                        additional $5,000,000, or $10,000,000
                                                      considered the economic impact of this                  recommended 2015–16 expenditures of                   for domestic market development
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      proposed rule on small entities.                        $22,668,980 and an assessment rate of                 projects, as well as alternate assessment
                                                      Accordingly, AMS has prepared this                      $0.0379 per kernelweight pound of                     rate levels. They ultimately decided that
                                                      initial regulatory flexibility analysis.                assessable walnuts. The proposed                      the recommended expenditure and
                                                        The purpose of the RFA is to fit                      assessment rate of $0.0379 is $0.019                  assessment levels were reasonable and
                                                      regulatory actions to the scale of                      higher than the 2014–15 rate. The                     necessary to assist in improving
                                                      businesses subject to such actions in                   quantity of assessable walnuts for the                domestic sales, as well as properly
                                                      order that small businesses will not be                 2015–16 marketing year is estimated at                administering the order. The assessment
                                                      unduly or disproportionately burdened.                  518,000 tons inshell weight, or                       rate of $0.0379 per kernelweight pound
                                                      Marketing orders issued pursuant to the                 466,200,000 kernelweight pounds.                      of assessable walnuts was derived by


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                                                                             Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Proposed Rules                                                49933

                                                      dividing anticipated assessment revenue                 meeting was a public meeting and all                  List of Subjects in 7 CFR Part 984
                                                      needed by expected shipments of                         entities, both large and small, were free               Marketing agreements, Nuts,
                                                      California walnuts certified as                         to express views on this issue. Finally,              Reporting and recordkeeping
                                                      merchantable. Merchantable shipments                    interested persons are invited to submit              requirements, Walnuts.
                                                      for the year are estimated at 466,200,000               comments on this proposed rule,
                                                      pounds. It was determined that                          including the regulatory and                            For the reasons set forth in the
                                                      $17,668,980 in assessment income was                    informational impacts of this action on               preamble, 7 CFR part 984 is proposed to
                                                      needed, and assessment income                           small businesses.                                     be amended as follows:
                                                      combined with funds from the monetary                      In accordance with the Paperwork
                                                      reserve would allow the Board to cover                                                                        PART 984—WALNUTS GROWN IN
                                                                                                              Reduction Act of 1995, (44 U.S.C.                     CALIFORNIA
                                                      its expenses of $22,668,980.                            Chapter 35), the order’s information
                                                         The Board also considered                            collection requirements have been                     ■ 1. The authority citation for 7 CFR
                                                      information from various committees                     previously approved by the Office of                  part 984 continues to read as follows:
                                                      who deliberate and formulate their own                  Management and Budget (OMB) and
                                                      budgets of expenses and make                                                                                      Authority: 7 U.S.C. 601–674.
                                                                                                              assigned OMB No. 0581–0178 (Walnuts
                                                      recommendations to the Board. The                       Grown in California). No changes in                   ■ 2. Section 984.347 is revised to read
                                                      committees include the Market                           those requirements as a result of this                as follows:
                                                      Development, Production Research,                       action are necessary. Should any
                                                      Budget and Personnel, and Grades and                                                                          § 984.347    Assessment rate.
                                                                                                              changes become necessary, they would
                                                      Standards committees.                                                                                           On and after September 1, 2015, an
                                                                                                              be submitted to OMB for approval.
                                                         Unexpended funds may be retained in                                                                        assessment rate of $0.0379 per
                                                      a financial reserve, provided that funds                   This proposed rule would impose no                 kernelweight pound is established for
                                                      in the financial reserve do not exceed                  additional reporting or recordkeeping                 California merchantable walnuts.
                                                      approximately two years’ budgeted                       requirements on either small or large
                                                                                                              California walnut handlers. As with all                 Dated: August 13, 2015.
                                                      expenses.
                                                         According to NASS, the season                        Federal marketing order programs,                     Rex A. Barnes,
                                                      average grower prices for the years 2012                reports and forms are periodically                    Associate Administrator, Agricultural
                                                      and 2013 were $3,030 and $3,710 per                     reviewed to reduce information                        Marketing Service.
                                                      ton, respectively. No prices have yet                   requirements and duplication by                       [FR Doc. 2015–20395 Filed 8–17–15; 8:45 am]
                                                      been reported for 2014. These prices                    industry and public sector agencies.                  BILLING CODE 3410–02––P
                                                      provide a range within which the 2015–                     AMS is committed to complying with
                                                      16 season average price could fall.                     the E-Government Act, to promote the
                                                      Dividing these average grower prices by                 use of the Internet and other                         DEPARTMENT OF ENERGY
                                                      2,000 pounds per ton provides an                        information technologies to provide
                                                      inshell price per pound range of $1.52                  increased opportunities for citizen                   10 CFR Part 430
                                                      to $1.86. Dividing these inshell per                    access to Government information and
                                                      pound prices by the 0.45 conversion                     services, and for other purposes.                     [Docket No. EERE–2015–BT–STD–0006]
                                                      factor (inshell to kernelweight)                           USDA has not identified any relevant               RIN: 1904–AD51
                                                      established in the order yields a 2015–                 Federal rules that duplicate, overlap, or
                                                      16 price range estimate of $3.38 to $4.13               conflict with this action.                            Energy Efficiency Program for
                                                      per kernelweight pound of assessable                                                                          Consumer Products: Energy
                                                      walnuts.                                                   A small business guide on complying
                                                                                                              with fruit, vegetable, and specialty crop             Conservation Standards for
                                                         To calculate the percentage of grower                                                                      Fluorescent Lamp Ballasts
                                                      revenue represented by the assessment                   marketing agreements and orders may
                                                      rate, the assessment rate of $0.0379 per                be viewed at: http://www.ams.usda.gov/                AGENCY:  Office of Energy Efficiency and
                                                      kernelweight pound is divided by the                    MarketingOrderSmallBusinessGuide.                     Renewable Energy, Department of
                                                      low and high estimates of the price                     Any questions about the compliance                    Energy.
                                                      range. The estimated assessment                         guide should be sent to Jeffrey Smutny
                                                                                                                                                                    ACTION: Reopening of public comment
                                                      revenue for the 2015–16 marketing year                  at the previously mentioned address in
                                                                                                                                                                    period.
                                                      as a percentage of total grower revenue                 the FOR FURTHER INFORMATION CONTACT
                                                      will thus likely range between 0.92 and                 section.                                              SUMMARY:   On June 23, 2015, the U.S.
                                                      1.11 percent.                                              A 30-day comment period is provided                Department of Energy (DOE) published
                                                         This action would increase the                       to allow interested persons to respond                a notice of public meeting (NOPM) in
                                                      assessment obligation imposed on                        to this proposed rule. Thirty days is                 the Federal Register announcing the
                                                      handlers. While assessments impose                      deemed appropriate because: (1) The                   availability of the framework document
                                                      some additional costs on handlers, the                  2015–16 marketing year begins on                      regarding energy conservation standards
                                                      costs are minimal and uniform on all                    September 1, 2015, and the marketing                  for fluorescent lamp ballasts. DOE also
                                                      handlers. Some of the additional costs                  order requires that the rate of                       held a public meeting presenting the
                                                      may be passed on to growers. However,                   assessment for each marketing year                    framework document on July 17, 2015.
                                                      these costs would be offset by the                      apply to all assessable walnuts handled               The comment period was scheduled to
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS




                                                      benefits derived by the operation of the                during the year; (2) the Board needs to               end August 7, 2015. After receiving a
                                                      marketing order. In addition, the                       have sufficient funds to pay its                      request for an additional two weeks to
                                                      Board’s meeting was widely publicized                   expenses, which are incurred on a                     comment, DOE has decided to reopen
                                                      throughout the California walnut                        continuous basis; and (3) handlers are                the comment period for submitting
                                                      industry, and all interested persons                    aware of this action, which was                       comments and data in response to the
                                                      were invited to attend the meeting and                  unanimously recommended by the                        framework document regarding energy
                                                      encouraged to participate in Board                      Board at a public meeting and is similar              conservation standards for fluorescent
                                                      deliberations on all issues. Like all                   to other assessment rate actions issued               lamp ballasts. The comment period is
                                                      Board meetings, the June 4, 2015,                       in past years.                                        extended to September 2, 2015.


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Document Created: 2015-12-15 12:05:13
Document Modified: 2015-12-15 12:05:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by September 17, 2015.
ContactTerry Vawter, Senior Marketing Specialist, or Martin Engeler, Regional Manager, California Marketing Field Office, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation80 FR 49930 
CFR AssociatedMarketing Agreements; Nuts; Reporting and Recordkeeping Requirements and Walnuts

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