81_FR_63901 81 FR 63721 - Walnuts Grown in California; Proposed Amendment to Marketing Order

81 FR 63721 - Walnuts Grown in California; Proposed Amendment to Marketing Order

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 180 (September 16, 2016)

Page Range63721-63723
FR Document2016-22247

This proposed rule invites public comments on a proposed amendment to Marketing Order No. 984, which regulates the handling of walnuts grown in California. The California Walnut Board (Board), which is responsible for the local administration of the order and is comprised of walnut producers and handlers operating within the production area, recommended an amendment that would authorize the Board to borrow from a commercial lending institution to fund operations and marketing/research expenses. Allowing the Committee to utilize this customary business practice would provide flexibility for the Board while increasing its effectiveness.

Federal Register, Volume 81 Issue 180 (Friday, September 16, 2016)
[Federal Register Volume 81, Number 180 (Friday, September 16, 2016)]
[Proposed Rules]
[Pages 63721-63723]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22247]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Doc. No. AMS-SC-16-0053, SC-16-984-1 PR]


Walnuts Grown in California; Proposed Amendment to Marketing 
Order

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule invites public comments on a proposed 
amendment to Marketing Order No. 984, which regulates the handling of 
walnuts grown in California. The California Walnut Board (Board), which 
is responsible for the local administration of the order and is 
comprised of walnut producers and handlers operating within the 
production area, recommended an amendment that would authorize the 
Board to borrow from a commercial lending institution to fund 
operations and marketing/research expenses. Allowing the Committee to 
utilize this customary business practice would provide flexibility for 
the Board while increasing its effectiveness.

DATES: Comments must be received by November 15, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops 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://www.regulations.gov. All 
comments submitted in response to this proposal 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: Geronimo Quinones, Marketing 
Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, Marketing 
Order and Agreement Division, Specialty Crops Program, AMS, USDA; 1400 
Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This proposal 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 rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    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.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 18c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The additional 
supplemental rules of practice authorize the use of informal rulemaking 
(5 U.S.C. 553) to amend Federal fruit, vegetable, and nut marketing 
agreements and orders. USDA may use informal rulemaking to amend 
marketing orders based on the nature and complexity of the proposed 
amendments, the potential regulatory and economic impacts on affected 
entities, and any other relevant matters.
    AMS has considered these factors and has determined that the 
amendment proposal is not unduly complex and the nature of the proposed 
amendment is appropriate for utilizing the informal rulemaking process 
to amend the order. A discussion of the potential regulatory and 
economic impacts on affected entities is discussed later in the 
``Initial Regulatory Flexibility Analysis'' section of this rule.
    The proposed amendment was unanimously recommended by the Board 
following deliberations at a public meeting held on February 19,

[[Page 63722]]

2016. Currently, the order does not allow the Board to borrow funds 
from a commercial lending institution. Allowing the Board to utilize 
this customary business practice would help to improve administration 
of the order by providing it with the means for ensuring continuity of 
operations when its obligations are greater than available assessment 
revenue and reserve funds.

Proposal--Borrowing From a Commercial Lending Institution

    Section 984.69 of the order, Assessments, authorizes the Board to 
collect assessments from handlers to administer the program.
    This proposal would provide the Board with authority to borrow from 
a commercial lending institution during times of cash shortages. In the 
past, the Board has utilized reserve funds collected through handler 
assessments, to help finance the advertising/marketing program. 
However, due to the increased size of the domestic advertising program; 
relying on reserve funds as a means to meet obligations would make the 
program unsustainable in the long term. History shows, the most costly 
part of the program runs during the first six months of the marketing 
year and those expenditures must be paid by mid-year. Since the 
payments must be made before all assessment fees are invoiced and 
collected, a cash shortage may occur during the year. Authorizing the 
Board to borrow from a commercial lending institution would help manage 
and sustain the program during times of low income while also ensuring 
continuity of operations.
    Therefore, for the reasons stated above, it is proposed that Sec.  
984.69, Assessments, be amended by adding a new paragraph that would 
provide the Board with authority to borrow from a commercial lending 
institution when no other funding is available.

Initial Regulatory Flexibility Analysis

    Pursuant to the 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 action 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 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 5,700 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 agricultural producers 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 $7,500,000. (13 CFR 121.201)
    According to USDA's National Agricultural Statistics Service's 
(NASS's) 2012 Census of Agriculture, approximately 86 percent of 
California's walnut farms were smaller than 100 acres. Further, NASS 
reports that the average yield for 2014 was 1.97 tons per acre, and the 
average price received for 2014 was $3,230 per ton.
    A 100-acre farm with an average yield of 1.97 tons per acre would 
therefore have been expected to produce about 197 tons of walnuts 
during 2014-15 marketing year. At $3,230 per ton, that farm's 
production would have had an approximate value of $636,310. 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 
$636,310 in 2014-15, which is 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 $7,500,000 during the 2014-15 marketing year; and would, 
therefore, be considered small handlers according to the SBA 
definition.
    The proposed rule would authorize the Board to borrow from 
commercial lending institutions. This would help to ensure continuity 
in operations.
    The Board reviewed and identified the most costly portion of its 
domestic advertising program. That portion of the program operates 
during the first six months of the Board's marketing year and costs 
must be paid by mid-year. Since assessment revenues are collected 
throughout the marketing year, not enough is on hand when these large 
payments are due. In the past, the Board has used reserve funds to help 
pay for marketing and advertising expenses. However, due to the 
increased size of the advertising program, the Board cannot rely on 
reserve funds to cover the costs. Based on this fact, the Board 
believes the program could become unsustainable in the long term.
    While this action could result in a temporary increase in handler 
assessment costs, these increases would be small and uniform on all 
handlers and proportional to the size of their businesses. These costs 
are expected to be offset by the benefits derived from a sustained 
marketing and advertising program. Additionally, these costs would help 
to ensure that the Board has sufficient funds to meet its financial 
obligations. Such stability is expected to allow the Board to conduct a 
program that would benefit all entities, regardless of size. California 
walnut producers should see an improved business environment and a more 
sustainable business model because of the improved business efficiency.
    Alternatives were considered to this proposal, including making no 
change at this time. However, the Board believes it would be beneficial 
to have the means and funds necessary to effectively administer the 
program.

Paperwork Reduction Act

    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, ``Vegetable and Specialty Crops.'' 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.
    The Board's meeting was widely publicized throughout the California 
walnut production area. All interested persons were invited to attend 
the meeting and encouraged to participate in Board deliberations on 
this issue. Like all Board meetings, the February 19, 2016, meeting was 
public, and all entities, both large and small, were encouraged to 
express their views on the proposal.
    Finally, interested persons are invited to submit comments on the 
proposed amendment to the order, including comments on the regulatory 
and informational impacts of this action on small businesses.

[[Page 63723]]

    Following analysis of any comments received on the proposed 
amendment, AMS will evaluate all available information and determine 
whether to proceed. If appropriate, a proposed rule and referendum 
order would be issued, and producers would be provided the opportunity 
to vote for or against the proposed amendment. Information about the 
referendum, including dates and voter eligibility requirements, would 
be published in a future issue of the Federal Register. A final rule 
would then be issued to effectuate the amendment if favored by 
producers participating in the referendum.
    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/MarketingOrdersSmallBusinessGuide. Any questions about the compliance 
guide should be sent to Antoinette Carter at the previously mentioned 
address in the FOR FURTHER INFORMATION CONTACT section.

General Findings

    The findings hereinafter set forth are supplementary to the 
findings and determinations which were previously made in connection 
with the issuance of the marketing order; and all said previous 
findings and determinations are hereby ratified and affirmed, except 
insofar as such findings and determinations may be in conflict with the 
findings and determinations set forth herein.
    1. The marketing order as hereby proposed to be amended, and all of 
the terms and conditions thereof, would tend to effectuate the declared 
policy of the Act;
    2. The marketing order as hereby proposed to be amended regulates 
the handling of walnuts grown in California and is applicable only to 
persons in the respective classes of commercial and industrial activity 
specified in the marketing order;
    3. The marketing order as hereby proposed to be amended is limited 
in application to the smallest regional production area which is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several orders applicable to subdivisions of 
the production area would not effectively carry out the declared policy 
of the Act;
    4. The marketing order as hereby proposed to be amended prescribes, 
insofar as practicable, such different terms applicable to different 
parts of the production area as are necessary to give due recognition 
to the differences in the production and marketing of walnuts produced 
or packed in the production area; and
    5. All handling of walnuts produced or packed in the production 
area as defined in the marketing order is in the current of interstate 
or foreign commerce or directly burdens, obstructs, or affects such 
commerce.
    A 60-day comment period is provided to allow interested persons to 
respond to the proposal. Any comments received on the amendment 
proposed in this rule will be analyzed, and if AMS determines to 
proceed based on all the information presented, a producer referendum 
would be conducted to determine producer support for the proposed 
amendment. If appropriate, a final rule would then be issued to 
effectuate the amendment favored by producers participating in the 
referendum.

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. Amend Sec.  984.69 by redesignating paragraph (d) as (e) and adding 
a new paragraph (d) to read as follows:


Sec.  984.69  Assessments.

* * * * *
    (d) To provide funds for the administration of the provisions of 
this part during the part of a fiscal period when neither sufficient 
operating reserve funds nor sufficient revenue from assessments on the 
current season's certifications are available, the Board may accept 
payment of assessments in advance or may borrow money from a commercial 
lending institution for such purposes.
* * * * *

    Dated: September 12, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-22247 Filed 9-15-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                     Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Proposed Rules                                           63721

                                               at the previously mentioned address in                  grown in California. The California                   to as the ‘‘order.’’ The order is effective
                                               the FOR FURTHER INFORMATION CONTACT                     Walnut Board (Board), which is                        under the Agricultural Marketing
                                               section.                                                responsible for the local administration              Agreement Act of 1937, as amended (7
                                                  A 30-day comment period is provided                  of the order and is comprised of walnut               U.S.C. 601–674), hereinafter referred to
                                               to allow interested persons to respond                  producers and handlers operating                      as the ‘‘Act.’’
                                               to this proposed rule. Thirty days is                   within the production area,                             The Department of Agriculture
                                               deemed appropriate because: (1) The                     recommended an amendment that                         (USDA) is issuing this rule in
                                               2016–17 marketing year begins on                        would authorize the Board to borrow                   conformance with Executive Orders
                                               September 1, 2016, and the marketing                    from a commercial lending institution to              12866, 13563, and 13175.
                                               order requires that the rate of                         fund operations and marketing/research                  This proposal has been reviewed
                                               assessment for each marketing year                      expenses. Allowing the Committee to                   under Executive Order 12988, Civil
                                               apply to all assessable walnuts handled                 utilize this customary business practice              Justice Reform. This rule is not intended
                                               during the year; and (2) handlers are                   would provide flexibility for the Board               to have retroactive effect.
                                               aware of this action, which was                         while increasing its effectiveness.                     The Act provides that administrative
                                               unanimously recommended by the                          DATES: Comments must be received by                   proceedings must be exhausted before
                                               Board at a public meeting and is similar                November 15, 2016.                                    parties may file suit in court. Under
                                               to other assessment rate actions issued                                                                       section 608c(15)(A) of the Act, any
                                                                                                       ADDRESSES: Interested persons are
                                               in past years.                                                                                                handler subject to an order may file
                                                                                                       invited to submit written comments
                                                                                                                                                             with USDA a petition stating that the
                                               List of Subjects in 7 CFR Part 984                      concerning this rule. Comments must be
                                                                                                                                                             order, any provision of the order, or any
                                                                                                       sent to the Docket Clerk, Marketing
                                                 Marketing agreements, Nuts,                                                                                 obligation imposed in connection with
                                                                                                       Order and Agreement Division,
                                               Reporting and recordkeeping                                                                                   the order is not in accordance with law
                                                                                                       Specialty Crops Program, AMS, USDA,
                                               requirements, Walnuts.                                                                                        and request a modification of the order
                                                                                                       1400 Independence Avenue SW., STOP
                                                                                                                                                             or to be exempted therefrom. Such
                                                 For the reasons set forth in the                      0237, Washington, DC 20250–0237; Fax:
                                                                                                                                                             handler is afforded the opportunity for
                                               preamble, 7 CFR part 984 is proposed to                 (202) 720–8938; or Internet: http://
                                                                                                                                                             a hearing on the petition. After the
                                               be amended as follows:                                  www.regulations.gov. Comments should
                                                                                                                                                             hearing, USDA would rule on the
                                                                                                       reference the document number and the
                                               PART 984—WALNUTS GROWN IN                                                                                     petition. The Act provides that the
                                                                                                       date and page number of this issue of
                                               CALIFORNIA                                                                                                    district court of the United States in any
                                                                                                       the Federal Register and will be
                                                                                                                                                             district in which the handler is an
                                                                                                       available for public inspection in the                inhabitant, or has his or her principal
                                               ■ 1. The authority citation for 7 CFR                   Office of the Docket Clerk during regular
                                               part 984 continues to read as follows:                                                                        place of business, has jurisdiction to
                                                                                                       business hours, or can be viewed at:                  review USDA’s ruling on the petition,
                                                   Authority: 7 U.S.C. 601–674.                        http://www.regulations.gov. All                       provided an action is filed not later than
                                               ■ 2. Section 984.347 is revised to read                 comments submitted in response to this                20 days after the date of the entry of the
                                               as follows:                                             proposal will be included in the record               ruling.
                                                                                                       and will be made available to the                       Section 1504 of the Food,
                                               § 984.347    Assessment rate.                           public. Please be advised that the                    Conservation, and Energy Act of 2008
                                                 On and after September 1, 2016, an                    identity of the individuals or entities               (2008 Farm Bill) (Pub. L. 110–246)
                                               assessment rate of $0.0465 per kernel                   submitting the comments will be made                  amended section 18c(17) of the Act,
                                               weight pound is established for                         public on the internet at the address                 which in turn required the addition of
                                               California merchantable walnuts.                        provided above.                                       supplemental rules of practice to 7 CFR
                                                 Dated: September 12, 2016.                            FOR FURTHER INFORMATION CONTACT:                      part 900 (73 FR 49307; August 21,
                                               Elanor Starmer,
                                                                                                       Geronimo Quinones, Marketing                          2008). The additional supplemental
                                                                                                       Specialist, or Michelle P. Sharrow,                   rules of practice authorize the use of
                                               Administrator, Agricultural Marketing
                                               Service.
                                                                                                       Rulemaking Branch Chief, Marketing                    informal rulemaking (5 U.S.C. 553) to
                                                                                                       Order and Agreement Division,                         amend Federal fruit, vegetable, and nut
                                               [FR Doc. 2016–22249 Filed 9–15–16; 8:45 am]
                                                                                                       Specialty Crops Program, AMS, USDA;                   marketing agreements and orders. USDA
                                               BILLING CODE 3410–02–P
                                                                                                       1400 Independence Avenue SW., Stop                    may use informal rulemaking to amend
                                                                                                       0237, Washington, DC 20250–0237;                      marketing orders based on the nature
                                                                                                       Telephone: (202) 720–2491, Fax: (202)                 and complexity of the proposed
                                               DEPARTMENT OF AGRICULTURE
                                                                                                       720–8938, or Email:                                   amendments, the potential regulatory
                                               Agricultural Marketing Service                          Geronimo.Quinones@ams.usda.gov or                     and economic impacts on affected
                                                                                                       Michelle.Sharrow@ams.usda.gov.                        entities, and any other relevant matters.
                                               7 CFR Part 984                                            Small businesses may request                          AMS has considered these factors and
                                                                                                       information on complying with this                    has determined that the amendment
                                               [Doc. No. AMS–SC–16–0053, SC–16–984–1                   regulation by contacting Antoinette                   proposal is not unduly complex and the
                                               PR]                                                     Carter, Marketing Order and Agreement                 nature of the proposed amendment is
                                                                                                       Division, Specialty Crops Program,                    appropriate for utilizing the informal
                                               Walnuts Grown in California; Proposed                   AMS, USDA, 1400 Independence
                                               Amendment to Marketing Order                                                                                  rulemaking process to amend the order.
                                                                                                       Avenue SW., STOP 0237, Washington,                    A discussion of the potential regulatory
                                               AGENCY:  Agricultural Marketing Service,                DC 20250–0237; Telephone: (202) 720–                  and economic impacts on affected
Lhorne on DSK30JT082PROD with PROPOSALS




                                               USDA.                                                   2491, Fax: (202) 720–8938, or Email:                  entities is discussed later in the ‘‘Initial
                                               ACTION: Proposed rule.
                                                                                                       Antoinette.Carter@ams.usda.gov.                       Regulatory Flexibility Analysis’’ section
                                                                                                       SUPPLEMENTARY INFORMATION: This                       of this rule.
                                               SUMMARY:  This proposed rule invites                    proposal is issued under Marketing                      The proposed amendment was
                                               public comments on a proposed                           Order No. 984, as amended (7 CFR part                 unanimously recommended by the
                                               amendment to Marketing Order No. 984,                   984), regulating the handling of walnuts              Board following deliberations at a
                                               which regulates the handling of walnuts                 grown in California, hereinafter referred             public meeting held on February 19,


                                          VerDate Sep<11>2014   13:06 Sep 15, 2016   Jkt 238001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\16SEP1.SGM   16SEP1


                                               63722                 Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Proposed Rules

                                               2016. Currently, the order does not                     small entities acting on their own                    believes the program could become
                                               allow the Board to borrow funds from a                  behalf.                                               unsustainable in the long term.
                                               commercial lending institution.                           There are approximately 5,700                          While this action could result in a
                                               Allowing the Board to utilize this                      growers of California walnuts in the                  temporary increase in handler
                                               customary business practice would help                  production area and approximately 90                  assessment costs, these increases would
                                               to improve administration of the order                  handlers subject to regulation under the              be small and uniform on all handlers
                                               by providing it with the means for                      marketing order. The Small Business                   and proportional to the size of their
                                               ensuring continuity of operations when                  Administration (SBA) defines small                    businesses. These costs are expected to
                                               its obligations are greater than available              agricultural producers as those having                be offset by the benefits derived from a
                                               assessment revenue and reserve funds.                   annual receipts of less than $750,000,                sustained marketing and advertising
                                                                                                       and small agricultural service firms are              program. Additionally, these costs
                                               Proposal—Borrowing From a                               defined as those having annual receipts
                                               Commercial Lending Institution                                                                                would help to ensure that the Board has
                                                                                                       of less than $7,500,000. (13 CFR                      sufficient funds to meet its financial
                                                 Section 984.69 of the order,                          121.201)                                              obligations. Such stability is expected to
                                               Assessments, authorizes the Board to                      According to USDA’s National                        allow the Board to conduct a program
                                               collect assessments from handlers to                    Agricultural Statistics Service’s                     that would benefit all entities,
                                               administer the program.                                 (NASS’s) 2012 Census of Agriculture,                  regardless of size. California walnut
                                                 This proposal would provide the                       approximately 86 percent of California’s              producers should see an improved
                                               Board with authority to borrow from a                   walnut farms were smaller than 100                    business environment and a more
                                               commercial lending institution during                   acres. Further, NASS reports that the                 sustainable business model because of
                                               times of cash shortages. In the past, the               average yield for 2014 was 1.97 tons per              the improved business efficiency.
                                               Board has utilized reserve funds                        acre, and the average price received for                 Alternatives were considered to this
                                               collected through handler assessments,                  2014 was $3,230 per ton.
                                                                                                                                                             proposal, including making no change
                                               to help finance the advertising/                          A 100-acre farm with an average yield
                                                                                                                                                             at this time. However, the Board
                                               marketing program. However, due to the                  of 1.97 tons per acre would therefore
                                                                                                       have been expected to produce about                   believes it would be beneficial to have
                                               increased size of the domestic
                                                                                                       197 tons of walnuts during 2014–15                    the means and funds necessary to
                                               advertising program; relying on reserve
                                                                                                       marketing year. At $3,230 per ton, that               effectively administer the program.
                                               funds as a means to meet obligations
                                               would make the program unsustainable                    farm’s production would have had an                   Paperwork Reduction Act
                                               in the long term. History shows, the                    approximate value of $636,310. Since
                                                                                                       Census of Agriculture information                        In accordance with the Paperwork
                                               most costly part of the program runs
                                                                                                       indicates that the majority of                        Reduction Act of 1995 (44 U.S.C.
                                               during the first six months of the
                                                                                                       California’s walnut farms are smaller                 Chapter 35), the order’s information
                                               marketing year and those expenditures
                                                                                                       than 100 acres, it could be concluded                 collection requirements have been
                                               must be paid by mid-year. Since the
                                                                                                       that the majority of the growers had                  previously approved by the Office of
                                               payments must be made before all
                                                                                                       receipts of less than $636,310 in 2014–               Management and Budget (OMB) and
                                               assessment fees are invoiced and
                                                                                                       15, which is well below the SBA                       assigned OMB No. 0581–0178,
                                               collected, a cash shortage may occur
                                                                                                       threshold of $750,000. Thus, the                      ‘‘Vegetable and Specialty Crops.’’ No
                                               during the year. Authorizing the Board
                                                                                                       majority of California’s walnut growers               changes in those requirements as a
                                               to borrow from a commercial lending
                                                                                                       would be considered small growers                     result of this action are necessary.
                                               institution would help manage and
                                                                                                       according to SBA’s definition.                        Should any changes become necessary,
                                               sustain the program during times of low
                                                                                                         According to information supplied by                they would be submitted to OMB for
                                               income while also ensuring continuity
                                                                                                       the Board, approximately two-thirds of                approval.
                                               of operations.
                                                 Therefore, for the reasons stated                     California’s walnut handlers shipped                     This proposed rule would impose no
                                               above, it is proposed that § 984.69,                    merchantable walnuts valued under                     additional reporting or recordkeeping
                                               Assessments, be amended by adding a                     $7,500,000 during the 2014–15                         requirements on either small or large
                                               new paragraph that would provide the                    marketing year; and would, therefore, be              California walnut handlers. As with all
                                               Board with authority to borrow from a                   considered small handlers according to                Federal marketing order programs,
                                               commercial lending institution when no                  the SBA definition.                                   reports and forms are periodically
                                               other funding is available.                               The proposed rule would authorize                   reviewed to reduce information
                                                                                                       the Board to borrow from commercial                   requirements and duplication by
                                               Initial Regulatory Flexibility Analysis                 lending institutions. This would help to              industry and public sector agencies.
                                                  Pursuant to the requirements set forth               ensure continuity in operations.                         The Board’s meeting was widely
                                               in the Regulatory Flexibility Act (RFA)                   The Board reviewed and identified                   publicized throughout the California
                                               (5 U.S.C. 601–612), the Agricultural                    the most costly portion of its domestic               walnut production area. All interested
                                               Marketing Service (AMS) has                             advertising program. That portion of the              persons were invited to attend the
                                               considered the economic impact of this                  program operates during the first six                 meeting and encouraged to participate
                                               action on small entities. Accordingly,                  months of the Board’s marketing year                  in Board deliberations on this issue.
                                               AMS has prepared this initial regulatory                and costs must be paid by mid-year.                   Like all Board meetings, the February
                                               flexibility analysis.                                   Since assessment revenues are collected               19, 2016, meeting was public, and all
                                                  The purpose of the RFA is to fit                     throughout the marketing year, not                    entities, both large and small, were
                                               regulatory actions to the scale of                      enough is on hand when these large                    encouraged to express their views on
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                                               businesses subject to such actions in                   payments are due. In the past, the Board              the proposal.
                                               order that small businesses will not be                 has used reserve funds to help pay for                   Finally, interested persons are invited
                                               unduly or disproportionately burdened.                  marketing and advertising expenses.                   to submit comments on the proposed
                                               Marketing orders issued pursuant to the                 However, due to the increased size of                 amendment to the order, including
                                               Act, and rules issued thereunder, are                   the advertising program, the Board                    comments on the regulatory and
                                               unique in that they are brought about                   cannot rely on reserve funds to cover                 informational impacts of this action on
                                               through group action of essentially                     the costs. Based on this fact, the Board              small businesses.


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                                                                     Federal Register / Vol. 81, No. 180 / Friday, September 16, 2016 / Proposed Rules                                               63723

                                                  Following analysis of any comments                   would not effectively carry out the                     Dated: September 12, 2016.
                                               received on the proposed amendment,                     declared policy of the Act;                           Elanor Starmer,
                                               AMS will evaluate all available                            4. The marketing order as hereby                   Administrator, Agricultural Marketing
                                               information and determine whether to                    proposed to be amended prescribes,                    Service.
                                               proceed. If appropriate, a proposed rule                insofar as practicable, such different                [FR Doc. 2016–22247 Filed 9–15–16; 8:45 am]
                                               and referendum order would be issued,                   terms applicable to different parts of the            BILLING CODE 3410–02–P
                                               and producers would be provided the
                                                                                                       production area as are necessary to give
                                               opportunity to vote for or against the
                                                                                                       due recognition to the differences in the
                                               proposed amendment. Information                                                                               DEPARTMENT OF AGRICULTURE
                                                                                                       production and marketing of walnuts
                                               about the referendum, including dates
                                               and voter eligibility requirements,                     produced or packed in the production                  Agricultural Marketing Service
                                               would be published in a future issue of                 area; and
                                               the Federal Register. A final rule would                   5. All handling of walnuts produced                7 CFR Parts 989 and 999
                                               then be issued to effectuate the                        or packed in the production area as                   [Doc. No. AMS–SC–16–0065; SC16–989–2
                                               amendment if favored by producers                       defined in the marketing order is in the              PR]
                                               participating in the referendum.                        current of interstate or foreign
                                                  AMS is committed to complying with                   commerce or directly burdens,                         Raisins Produced From Grapes Grown
                                               the E-Government Act to promote the                     obstructs, or affects such commerce.                  in California and Imported Raisins;
                                               use of the internet and other                                                                                 Removal of Language
                                                                                                          A 60-day comment period is provided
                                               information technologies, to provide
                                                                                                       to allow interested persons to respond                AGENCY:  Agricultural Marketing Service,
                                               increased opportunities for citizen
                                               access to Government information and                    to the proposal. Any comments received                USDA.
                                               services, and for other purposes.                       on the amendment proposed in this rule                ACTION: Proposed rule.
                                                  USDA has not identified any relevant                 will be analyzed, and if AMS
                                                                                                       determines to proceed based on all the                SUMMARY:    This proposed rule invites
                                               Federal rules that duplicate, overlap, or                                                                     comments on a recommendation by the
                                               conflict with this action. A small                      information presented, a producer
                                                                                                       referendum would be conducted to                      Raisin Administrative Committee
                                               business guide on complying with fruit,                                                                       (Committee) to the remove the term
                                               vegetable, and specialty crop marketing                 determine producer support for the
                                                                                                       proposed amendment. If appropriate, a                 ‘‘midget’’ from the minimum grade
                                               agreements and orders may be viewed                                                                           standards of the California raisin
                                               at: http://www.ams.usda.gov/                            final rule would then be issued to
                                                                                                                                                             marketing order (order). The marketing
                                               MarketingOrdersSmallBusinessGuide.                      effectuate the amendment favored by
                                                                                                                                                             order regulates the handling of raisins
                                               Any questions about the compliance                      producers participating in the
                                                                                                                                                             produced from grapes grown in
                                               guide should be sent to Antoinette                      referendum.
                                                                                                                                                             California, and is administered locally
                                               Carter at the previously mentioned                      List of Subjects in 7 CFR Part 984                    by the Committee. Recently, the U.S.
                                               address in the FOR FURTHER INFORMATION                                                                        Standards for Grades of Processed
                                               CONTACT section.                                          Marketing agreements, Nuts,                         Raisins (standards) were amended to
                                               General Findings                                        Reporting and recordkeeping                           remove the word ‘‘midget.’’ The
                                                                                                       requirements, Walnuts.                                proposed change would make the
                                                  The findings hereinafter set forth are
                                                                                                         For the reasons set forth in the                    marketing order consistent with the
                                               supplementary to the findings and
                                                                                                       preamble, 7 CFR part 984 is proposed to               amended standards. Furthermore, this
                                               determinations which were previously
                                                                                                       be amended as follows:                                rule would make a corresponding
                                               made in connection with the issuance of
                                                                                                                                                             change to the raisin import regulation as
                                               the marketing order; and all said
                                                                                                       PART 984—WALNUTS GROWN IN                             required by the Agricultural Marketing
                                               previous findings and determinations
                                                                                                       CALIFORNIA                                            Agreement Act of 1937, as amended,
                                               are hereby ratified and affirmed, except
                                                                                                                                                             when changes are made to the size,
                                               insofar as such findings and
                                                                                                                                                             grade, maturity, or quality requirements
                                               determinations may be in conflict with                  ■ 1. The authority citation for 7 CFR
                                                                                                                                                             of the order.
                                               the findings and determinations set                     part 984 continues to read as follows:
                                               forth herein.                                                                                                 DATES: Comments must be received by
                                                                                                           Authority: 7 U.S.C. 601–674.                      October 17, 2016.
                                                  1. The marketing order as hereby
                                               proposed to be amended, and all of the                  ■ 2. Amend § 984.69 by redesignating                  ADDRESSES: Interested persons are
                                               terms and conditions thereof, would                     paragraph (d) as (e) and adding a new                 invited to submit written comments
                                               tend to effectuate the declared policy of               paragraph (d) to read as follows:                     concerning this proposal. Comments
                                               the Act;                                                                                                      must be sent to the Docket Clerk,
                                                  2. The marketing order as hereby                     § 984.69    Assessments.                              Marketing Order and Agreement
                                               proposed to be amended regulates the                    *      *    *     *    *                              Division, Specialty Crops Program,
                                               handling of walnuts grown in California                                                                       AMS, USDA, 1400 Independence
                                                                                                          (d) To provide funds for the                       Avenue SW., STOP 0237, Washington,
                                               and is applicable only to persons in the
                                               respective classes of commercial and                    administration of the provisions of this              DC 20250–0237; Fax: (202) 720–8938; or
                                               industrial activity specified in the                    part during the part of a fiscal period               Internet: http://www.regulations.gov. All
                                               marketing order;                                        when neither sufficient operating                     comments should reference the docket
                                                  3. The marketing order as hereby                     reserve funds nor sufficient revenue                  number and the date and page number
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                                               proposed to be amended is limited in                    from assessments on the current                       of this issue of the Federal Register and
                                               application to the smallest regional                    season’s certifications are available, the            will be made available for public
                                               production area which is practicable,                   Board may accept payment of                           inspection in the Office of the Docket
                                               consistent with carrying out the                        assessments in advance or may borrow                  Clerk during regular business hours, or
                                               declared policy of the Act, and the                     money from a commercial lending                       can be viewed on the Internet at: http://
                                               issuance of several orders applicable to                institution for such purposes.                        www.regulations.gov. All comments
                                               subdivisions of the production area                     *      *    *     *    *                              submitted in response to this proposal


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Document Created: 2016-09-16 00:25:13
Document Modified: 2016-09-16 00:25:13
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 November 15, 2016.
ContactGeronimo Quinones, Marketing Specialist, or Michelle P. Sharrow, Rulemaking Branch Chief, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; 1400 Independence Avenue SW., Stop 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: [email protected] or [email protected]
FR Citation81 FR 63721 
CFR AssociatedMarketing Agreements; Nuts; Reporting and Recordkeeping Requirements and Walnuts

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