81 FR 85164 - U.S. Standards for Grades of Shelled Walnuts and Walnuts in the Shell

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 227 (November 25, 2016)

Page Range		85164-85167
FR Document		2016-28253
The Agricultural Marketing Service (AMS) of the Department of Agriculture (USDA) proposes to revise the U.S. Standards for Grades of Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the Shell. AMS proposes to include red colored walnuts. In addition, AMS proposes to remove the ``Unclassified'' section. The changes will modernize the standards, and meet growing consumer demand by providing greater marketing flexibility.
Federal Register, Volume 81 Issue 227 (Friday, November 25, 2016)
[Federal Register Volume 81, Number 227 (Friday, November 25, 2016)]
[Proposed Rules]
[Pages 85164-85167]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28253]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / 
Proposed Rules

[[Page 85164]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Document Number AMS-SC-16-0005, SC-16-331]


U.S. Standards for Grades of Shelled Walnuts and Walnuts in the 
Shell

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: The Agricultural Marketing Service (AMS) of the Department of 
Agriculture (USDA) proposes to revise the U.S. Standards for Grades of 
Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the 
Shell. AMS proposes to include red colored walnuts. In addition, AMS 
proposes to remove the ``Unclassified'' section. The changes will 
modernize the standards, and meet growing consumer demand by providing 
greater marketing flexibility.

DATES: Comments must be submitted on or before January 24, 2017.

ADDRESSES: Interested persons are invited to submit comments to the 
Standardization Branch, Specialty Crops Inspection Division, Specialty 
Crops Program, Agricultural Marketing Service, U.S. Department of 
Agriculture, National Training and Development Center, 100 Riverside 
Parkway, Suite 101, Fredericksburg, Virginia 22406; fax: (540) 361-
1199, or on the Web at: www.regulations.gov. Comments should reference 
the dates and page number of this issue of the Federal Register and 
will be made available for public inspection in the above office during 
regular business hours. All comments submitted in response to this rule 
will be included in the public record and will be made available to the 
public and can be viewed as submitted, including any personal 
information that you provide, on the Internet via http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Contact David G. Horner at the address 
above, or at phone (540) 361-1120; fax (540) 361-1199; or, email 
[email protected]. Copies of the proposed U.S. Standards for 
Grades of Shelled Walnuts and Walnuts in the Shell are available on the 
Internet at http://www.regulations.gov. Copies of the current U.S. 
Standards for Grades of Shelled Walnuts and U.S. Standards for Walnuts 
in the Shell are available on the Specialty Crops Inspection Division 
Web site at https://www.ams.usda.gov/grades-standards/nuts.

SUPPLEMENTARY INFORMATION: 
    The proposed changes permit grade certification of the red variety. 
These revisions also affect the grade requirements under the marketing 
order, 7 CFR parts 984, issued under the Agricultural Marketing 
Agreement Act of 1937 (7 U.S.C. 601-674) and applicable imports.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined to be not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.

Executive Order 13175

    This action has been reviewed in accordance with the requirements 
of Executive Order 13175, Consultation and Coordination with Indian 
Tribal Governments. The review reveals that this regulation would not 
have substantial and direct effects on Tribal governments and would not 
have significant Tribal implications.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. There 
are no administrative procedures that must be exhausted prior to any 
judicial challenge to the provisions of this rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the 
economic impacts of the revisions to the U.S. Standards for Grades of 
Shelled Walnuts and the U.S. Standards for Grades of Walnuts in the 
Shell. The purpose of the RFA is to structure regulatory actions such 
that small businesses will not be unduly or disproportionately 
burdened. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The current U.S. walnut standards have four color classifications: 
Extra Light, Light, Light Amber, and Amber. Product that does not meet 
these color standards cannot be certified to a U.S. grade. AMS proposes 
to revise these standards to include certification of red color. In 
addition, AMS proposes eliminating the ``Unclassified'' section. The 
proposed revision modernizes the current grading standards by allowing 
the industry to meet the growing consumer demand for red colored 
walnuts and by promoting better market information and greater 
marketing flexibility within the industry.
    The process of grading improves the functioning of a commodity 
market. Assigning different prices to different product characteristics 
and levels of quality increases opportunities for profitable trade. 
Adding red color to the walnut grading standards will facilitate 
additional market opportunities for walnut producers and other 
participants in the supply chain. The proposed revision will result in 
a minor change to the current standards with the only modification 
being to the color requirements. AMS anticipates that there will be 
little or no additional cost to implement this revision. The proposed 
change applies uniformly to all market participants and will not result 
in disproportionate additional costs being borne by small walnut 
producers or other small businesses.
    To determine the proportion of walnut producers that would be 
considered small, AMS conducted the analysis that follows. Small 
agricultural producers are defined by the Small Business Administration 
(SBA) as those having annual receipts of less than $750,000 (13 CFR 
121.601.
    AMS used crop value per acre to determine the number of bearing 
acres

[[Page 85165]]

required to generate annual sales of $750,000 or more, and came to 136 
bearing acres. To reach this number, AMS divided the total crop value 
measured in dollars by the total utilized production measured in tons. 
Using annual National Agricultural Statistics Service (NASS) data for 
the years 2010 to 2014, the five-year average crop value was 
$1,507,478,000; utilized production was 504,800 tons; and grower price 
was $2,982 per ton. AMS multiplied the price by yield to find the crop 
value per acre of $5,670 on average over five years. Finally, AMS 
divided the SBA-defined annual sales threshold of $750,000 by value per 
acre, which resulted in 136 acres.
    The NASS Agricultural Census is conducted every five years and in 
2012 showed that 87 percent of walnut farming operations in the U.S. 
fell into its Census category of ``under 100 bearing acres'' of 
walnuts. AMS estimates that the proportion of walnut growers that 
qualify as small businesses under the SBA definition is likely to be 
close to 90 percent, given the probable exclusion in the ``under 100 
bearing acres'' Census category of walnut producers with bearing 
acreage between 100 and 136. These small growers will not be 
disproportionately affected by the proposed rule as all changes to the 
standards will be applied uniformly to all market participants.
    In August 2015, the Grades and Standards Committee of the 
California Walnut Board and Commission voted unanimously to revise the 
U.S. walnut standards to include non-amber cultivars such as red 
colored varieties. More than 99 percent of U.S. walnuts are produced in 
California. Addition of an expanded color certification grade will 
encourage greater revenue to flow into the industry due to greater 
marketing opportunities for red colored nuts. Revising the current 
grading standards to include red walnuts will come at a minimal cost to 
the industry. The benefits of modernized grading standards, which 
include better market information and greater marketing flexibility, 
exceed the minor costs to market participants of implementing this 
revision to the U.S. standards for walnuts.

Background

    The current U.S. walnut standards only permit the following four 
colors: Extra Light, Light, Light Amber, and Amber. However, consumer 
demand is growing for red walnuts in the U.S. In China, the Livermore 
variety (a red colored walnut) is very desirable. U.S. growers and 
companies expect sales to continue rising domestically and in China, 
especially once red walnuts are permitted grade certification.
    To address anticipated consumer needs, the Grades and Standards 
Committee of the California Walnut Board and Commission voted 
unanimously in August 2015 to revise the U.S. walnut standards to 
include non-amber cultivars, beginning with the Livermore variety. 
Later, the California Walnut Board and Commission sent an official 
letter to the AMS administrator formally requesting the addition of red 
colored varieties.
    Therefore, AMS proposes to make the following revisions in the U.S. 
Standards for Grades of Shelled Walnuts:
     Sec.  51.2276 Color chart: Removed and reserved. The 
information in this section regarding the U.S.D.A. Walnut Color Chart 
is obsolete.
     Sec.  51.2277 U.S. No. 1(a): Revised to include red 
walnuts.
     Sec.  51.2278 U.S. Commercial (a): Revised to include red 
walnuts.
     Sec.  51.2279 Unclassified: Removed and reserved. AMS is 
removing this section in all standards as they are revised, as it is no 
longer considered necessary.
     Sec.  51.2281 Color classifications: The section is 
reorganized into subparts (a) and (b) to include red walnuts.
     Sec.  51.2282 Table II: Revised to include red walnuts.
     Sec.  51.2283 Off color: Revised to include red walnuts.
    In addition, AMS proposes to make the following revisions in the 
U.S. Standards for Grades of Walnuts in the Shell:
     Sec.  51.2946 Color chart: Removed and reserved. This 
section is now redundant and no longer needed.
     Sec.  51.2948 U.S. No. 1 (a), Sec.  51.2949 U.S. No. 2 
(a), and Sec.  51.2950 U.S. No. 3 (a): Subpart (1) was added to subpart 
(a) in each section to accommodate red walnuts.
     Sec.  51.2951 Unclassified: Removed and reserved. AMS is 
removing this section in all standards as they are revised, as it is no 
longer considered necessary.
     Sec.  51.2954 Tolerances for grade defects: Revised to 
include red walnuts.
    The proposed rule provides a 60-day period during which interested 
parties may comment on the revisions to the standards.

List of Subjects in 7 CFR Part 51

    Food grades and standards, Food labeling, Frozen foods, Fruit 
juices, Fruits, Reporting and recordkeeping requirements, Vegetables.

    For reasons set forth in the preamble, 7 CFR part 51 is proposed to 
be amended as follows:

PART 51--[AMENDED]

0
1. The authority citation for part 51 continues to read as follows:

    Authority: 7 U.S.C. 1621-1627.


Sec.  51.2276  [Removed and Reserved]

0
2. In Sec.  51.2276 is removed and reserved:
0
3. In Sec.  51.2277, paragraph (a) is revised to read as follows:


Sec.  51.2277  U.S. No. 1.

* * * * *
    (a) Color shall be specified in connection with this grade in terms 
of ``extra light,'' ``light,'' ``light amber,'' or ``amber'' from the 
USDA Walnut Color Chart or in terms of ``red'' color. The color 
classifications in the USDA Walnut Color Chart shall not apply to 
``red'' color. Furthermore, ``red'' color shall not be mixed with 
``extra light,'' ``light,'' ``light amber,'' or ``amber'' colors. (See 
Sec.  51.2281 and Sec.  51.2282.)
* * * * *
0
4. In Sec.  51.2278, paragraph (a) is revised to read as follows:


Sec.  51.2278  U.S. Commercial.

* * * * *
    (a) Color of walnuts based on the USDA Walnut Color Chart shall be 
not darker than the ``amber'' classification. There are no color 
requirements for ``red'' walnuts. Color may be specified in connection 
with the grade in terms of one of the color classifications in the USDA 
Walnut Color Chart or ``red'' color. ``Red'' color shall not be mixed 
with ``extra light,'' ``light,'' ``light amber,'' or ``amber'' colors. 
(See Sec.  51.2281 and Sec.  51.2282.)
* * * * *


Sec.  51.2279  [Removed and Reserved]

0
5. In Sec.  51.2279 is removed and reserved:
0
6. Revise Sec.  51.2281 to read as follows:


Sec.  51.2281  Color classifications.

    The following classifications are provided to describe the color of 
any lot:
    (a) ``Extra light,'' ``light,'' ``light amber,'' and ``amber:'' The 
portions of kernels in the lot shall be not darker than the darkest 
color permitted in the specified classification as shown on the USDA 
Walnut Color Chart.
    (b) ``Red:'' There are no color requirements.
0
7. In Sec.  51.2282, Table II is amended by adding an entry for ``Red'' 
to read as follows:

[[Page 85166]]

Sec.  51.2282  Tolerances for color.

* * * * *

                                                    Table II
----------------------------------------------------------------------------------------------------------------
                                                    Darker than                     Darker than
              Color classification                  extra light     Darker than     light amber     Darker than
                                                        \1\          light \1\          \1\          amber \1\
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Red.............................................  ..............  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------
\1\ See illustration of this term on USDA Walnut Color Chart.

* * * * *
0
8. Revise Sec.  51.2283 to read as follows:


Sec.  51.2283  Off color.

    The term ``off color'' is not a color classification, but shall be 
applied to any lot which fails to meet the requirements of the 
``amber'' classification when applying the color classifications in the 
USDA Walnut Color Chart. Off color shall not be used for ``red'' color.


Sec.  51.2946  [Removed and reserved].

0
9. In Sec.  51.2946 is removed and reserved.
0
10. In Sec.  51.2948, paragraphs (a) is revised to read as follows:


Sec.  51.2948  U.S. No. 1.

* * * * *
    (a) Kernel color shall be specified in connection with this grade 
in terms of ``extra light,'' ``light,'' ``light amber,'' or ``amber'' 
from the USDA Walnut Color Chart or in terms of ``red'' color. The 
color classifications in the USDA Walnut Color Chart shall not apply to 
``red'' color. Furthermore, ``red'' color shall not be mixed with 
``extra light,'' ``light,'' ``light amber,'' or ``amber'' colors. When 
kernel color is based on the color classifications from the USDA Walnut 
Color Chart, at least 70 percent, by count, of the walnuts have kernels 
which are not darker than ``light amber,'' and which are free from 
grade defects: Provided, That at least four-sevenths of the above 
amount, or 40 percent of the walnuts have kernels which are not darker 
than ``light.'' Higher percentages of nuts with kernels not darker than 
``light amber'' which are free from grade defects and/or higher 
percentages with kernels not darker than ``light'' which are free from 
grade defects, may be specified in accordance with the facts. (See 
Sec.  51.2954 of this part)
0
11. In Sec.  51.2949, paragraphs (a) is revised to read as follows:


Sec.  51.2949  U.S. No. 2.

* * * * *
    (a) Kernel color shall be specified in connection with this grade 
either in terms of ``extra light,'' ``light,'' ``light amber,'' or 
``amber'' from the USDA Walnut Color Chart or in terms of ``red'' 
color. The color classifications in the USDA Walnut Color Chart shall 
not apply to ``red'' color. Furthermore, ``red'' color shall not be 
mixed with ``extra light,'' ``light,'' ``light amber,'' or ``amber'' 
colors. When kernel color is based on the color classifications from 
the USDA Walnut Color Chart, at least 60 percent, by count, of the 
walnuts have kernels which are not darker than ``light amber,'' and 
which are free from grade defects. Higher percentages of nuts with 
kernels not darker than ``light amber'' which are free from grade 
defects, and/or percentages with kernels not darker than ``light'' 
which are free from grade defects, may be specified in accordance with 
the facts. (See Sec.  51.2954 of this part)
0
12. In Sec.  2950, paragraphs (a) is revised to read as follows:


Sec.  51.2950  U.S. No. 3.

* * * * *
    (a) Kernel color may be specified in connection with this grade 
either in terms of ``light amber'' or ``light'' from the USDA Walnut 
Color Chart or in terms of ``red'' color. The color classifications in 
the USDA Walnut Color Chart shall not apply to ``red'' color. 
Furthermore, ``red'' color shall not be mixed with ``extra light,'' 
``light,'' ``light amber,'' or ``amber'' colors. When kernel color is 
based on the color classifications from the USDA Walnut Color Chart, 
there is no requirement in this grade for the percentage of walnuts 
having kernels which are ``light amber'' or ``light.'' However, the 
percentage, by count, of nuts with kernels not darker than ``light 
amber'' which are free from grade defects and/or the percentage with 
kernels not darker than ``light'' which are free from grade defects, 
may be specified in accordance with the facts. (See Sec.  51.2954 of 
this part)


Sec.  51.2951  [Removed and reserved].

0
13. In Sec.  51.2951 is removed and reserved.
0
14. In Sec.  51.2954 revise the table to read as follows:


Sec.  51.2954  Tolerances for Grade Defects.

* * * * *

                                          Tolerances for Grade Defects
----------------------------------------------------------------------------------------------------------------
                                                                             Kernel color based
            Grade                 External (shell)      Internal (kernel)   on USDA Walnut Color   Kernel color
                                      defects                defects                Chart          based on red
----------------------------------------------------------------------------------------------------------------
U.S. No. 1...................  10%, by count, for     10% total, by count,  No tolerance to       ..............
                                splits. 5%, by         including not more    reduce the required
                                count, for other       than 6% which are     70% of ``light
                                shell defects,         damaged by mold or    amber'' kernels or
                                including not more     insects or            the required 40% of
                                than 3% seriously      seriously damaged     ``light'' kernels
                                damaged.               by other means, of    or any larger
                                                       which not more than   percentage of
                                                       \5/6\ or 5% may be    ``light amber'' or
                                                       damaged by insects,   ``light'' kernels
                                                       but no part of any    specified.
                                                       tolerance shall be
                                                       allowed for walnuts
                                                       containing live
                                                       insects.

[[Page 85167]]

 
U.S. No. 2...................  10%, by count, for     15% total, by count,  No tolerance to       ..............
                                splits. 10%, by        including not more    reduce the required
                                count, for other       than 8% which are     60% or any
                                shell defects,         damaged by mold or    specified larger
                                including not more     insects or            percentage of
                                than 5%t serious       seriously damaged     ``light amber''
                                damage by adhering     by other means, of    kernels, or any
                                hulls.                 which not more than   specified
                                                       \5/8\ or 5% may be    percentage of
                                                       damaged by insects,   ``light'' kernels.
                                                       but no part of any
                                                       tolerance shall be
                                                       allowed for walnuts
                                                       containing live
                                                       insects.
U.S. No. 3...................  Same as above          Same as above         No tolerance to       ..............
                                tolerance for U.S.     tolerance for U.S.    reduce any
                                No. 2.                 No. 2.                percentage of
                                                                             ``light amber'' or
                                                                             ``light'' kernel
                                                                             specified.
----------------------------------------------------------------------------------------------------------------


    Dated: November 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28253 Filed 11-23-16; 8:45 am]
BILLING CODE 3410-02-P
85164

Proposed Rules Federal Register
Vol. 81, No. 227

Friday, November 25, 2016

This section of the FEDERAL REGISTER above, or at phone (540) 361–1120; fax Regulatory Flexibility Act and
contains notices to the public of the proposed (540) 361–1199; or, email Dave.Horner@ Paperwork Reduction Act
issuance of rules and regulations. The ams.usda.gov. Copies of the proposed
purpose of these notices is to give interested Pursuant to the requirements set forth
U.S. Standards for Grades of Shelled in the Regulatory Flexibility Act (RFA)
persons an opportunity to participate in the Walnuts and Walnuts in the Shell are
rule making prior to the adoption of the final (5 U.S.C. 601–612), AMS has considered
rules.
available on the Internet at http:// the economic impacts of the revisions to
www.regulations.gov. Copies of the the U.S. Standards for Grades of Shelled
current U.S. Standards for Grades of Walnuts and the U.S. Standards for
DEPARTMENT OF AGRICULTURE Shelled Walnuts and U.S. Standards for Grades of Walnuts in the Shell. The
Walnuts in the Shell are available on the purpose of the RFA is to structure
Agricultural Marketing Service Specialty Crops Inspection Division regulatory actions such that small
Web site at https://www.ams.usda.gov/ businesses will not be unduly or
7 CFR Part 51 grades-standards/nuts. disproportionately burdened.
[Document Number AMS–SC–16–0005, SC– SUPPLEMENTARY INFORMATION: Accordingly, AMS has prepared this
16–331] The proposed changes permit grade initial regulatory flexibility analysis.
certification of the red variety. These The current U.S. walnut standards
U.S. Standards for Grades of Shelled revisions also affect the grade have four color classifications: Extra
Walnuts and Walnuts in the Shell requirements under the marketing order, Light, Light, Light Amber, and Amber.
AGENCY: Agricultural Marketing Service, 7 CFR parts 984, issued under the Product that does not meet these color
USDA. Agricultural Marketing Agreement Act standards cannot be certified to a U.S.
of 1937 (7 U.S.C. 601–674) and grade. AMS proposes to revise these
ACTION: Proposed rule.
applicable imports. standards to include certification of red
SUMMARY: The Agricultural Marketing color. In addition, AMS proposes
Executive Orders 12866 and 13563
Service (AMS) of the Department of eliminating the ‘‘Unclassified’’ section.
Agriculture (USDA) proposes to revise Executive Orders 12866 and 13563 The proposed revision modernizes the
the U.S. Standards for Grades of Shelled direct agencies to assess all costs and current grading standards by allowing
Walnuts and the U.S. Standards for benefits of available regulatory the industry to meet the growing
Grades of Walnuts in the Shell. AMS alternatives and, if regulation is consumer demand for red colored
proposes to include red colored necessary, to select regulatory walnuts and by promoting better market
walnuts. In addition, AMS proposes to approaches that maximize net benefits information and greater marketing
remove the ‘‘Unclassified’’ section. The (including potential economic, flexibility within the industry.
changes will modernize the standards, environmental, public health and safety The process of grading improves the
and meet growing consumer demand by effects, distributive impacts and equity). functioning of a commodity market.
providing greater marketing flexibility. Executive Order 13563 emphasizes the Assigning different prices to different
DATES: Comments must be submitted on
importance of quantifying both costs product characteristics and levels of
or before January 24, 2017. and benefits, reducing costs, quality increases opportunities for
harmonizing rules, and promoting profitable trade. Adding red color to the
ADDRESSES: Interested persons are
flexibility. This rule has been walnut grading standards will facilitate
invited to submit comments to the
determined to be not significant for additional market opportunities for
Standardization Branch, Specialty Crops
purposes of Executive Order 12866 and, walnut producers and other participants
Inspection Division, Specialty Crops
therefore, has not been reviewed by the in the supply chain. The proposed
Program, Agricultural Marketing
Office of Management and Budget. revision will result in a minor change to
Service, U.S. Department of Agriculture,
the current standards with the only
National Training and Development Executive Order 13175
modification being to the color
Center, 100 Riverside Parkway, Suite This action has been reviewed in requirements. AMS anticipates that
101, Fredericksburg, Virginia 22406; fax: accordance with the requirements of there will be little or no additional cost
(540) 361–1199, or on the Web at: Executive Order 13175, Consultation to implement this revision. The
www.regulations.gov. Comments should and Coordination with Indian Tribal proposed change applies uniformly to
reference the dates and page number of Governments. The review reveals that all market participants and will not
this issue of the Federal Register and this regulation would not have result in disproportionate additional
will be made available for public substantial and direct effects on Tribal costs being borne by small walnut
inspection in the above office during governments and would not have producers or other small businesses.
regular business hours. All comments significant Tribal implications. To determine the proportion of
submitted in response to this rule will walnut producers that would be
be included in the public record and Executive Order 12988
ehiers on DSK5VPTVN1PROD with PROPOSALS

considered small, AMS conducted the
will be made available to the public and This rule has been reviewed under analysis that follows. Small agricultural
can be viewed as submitted, including Executive Order 12988, Civil Justice producers are defined by the Small
any personal information that you Reform. It is not intended to have Business Administration (SBA) as those
provide, on the Internet via http:// retroactive effect. There are no having annual receipts of less than
www.regulations.gov. administrative procedures that must be $750,000 (13 CFR 121.601.
FOR FURTHER INFORMATION CONTACT: exhausted prior to any judicial AMS used crop value per acre to
Contact David G. Horner at the address challenge to the provisions of this rule. determine the number of bearing acres

VerDate Sep<11>2014 14:01 Nov 23, 2016 Jkt 241001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\25NOP1.SGM 25NOP1
85166 Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Proposed Rules

§ 51.2282 Tolerances for color.
* * * * *

TABLE II
Darker than Darker than Darker than Darker than
Color classification extra light 1 light 1 light amber 1 amber 1

* * * * * * *
Red ................................................................................................................... ........................ ........................ ........................ ........................
1 See illustration of this term on USDA Walnut Color Chart.

* * * * * percent of the walnuts have kernels ■ 12. In § 2950, paragraphs (a) is revised
■ 8. Revise § 51.2283 to read as follows: which are not darker than ‘‘light.’’ to read as follows:
Higher percentages of nuts with kernels
§ 51.2283 Off color. not darker than ‘‘light amber’’ which are § 51.2950 U.S. No. 3.
The term ‘‘off color’’ is not a color free from grade defects and/or higher * * * * *
classification, but shall be applied to percentages with kernels not darker
any lot which fails to meet the (a) Kernel color may be specified in
than ‘‘light’’ which are free from grade connection with this grade either in
requirements of the ‘‘amber’’ defects, may be specified in accordance
classification when applying the color terms of ‘‘light amber’’ or ‘‘light’’ from
with the facts. (See § 51.2954 of this
classifications in the USDA Walnut the USDA Walnut Color Chart or in
part)
Color Chart. Off color shall not be used ■ 11. In § 51.2949, paragraphs (a) is
terms of ‘‘red’’ color. The color
for ‘‘red’’ color. revised to read as follows: classifications in the USDA Walnut
Color Chart shall not apply to ‘‘red’’
§ 51.2946 [Removed and reserved]. § 51.2949 U.S. No. 2. color. Furthermore, ‘‘red’’ color shall
■ 9. In § 51.2946 is removed and * * * * * not be mixed with ‘‘extra light,’’ ‘‘light,’’
reserved. (a) Kernel color shall be specified in ‘‘light amber,’’ or ‘‘amber’’ colors. When
■ 10. In § 51.2948, paragraphs (a) is connection with this grade either in kernel color is based on the color
revised to read as follows: terms of ‘‘extra light,’’ ‘‘light,’’ ‘‘light classifications from the USDA Walnut
amber,’’ or ‘‘amber’’ from the USDA Color Chart, there is no requirement in
§ 51.2948 U.S. No. 1. Walnut Color Chart or in terms of ‘‘red’’ this grade for the percentage of walnuts
* * * * * color. The color classifications in the having kernels which are ‘‘light amber’’
(a) Kernel color shall be specified in USDA Walnut Color Chart shall not or ‘‘light.’’ However, the percentage, by
connection with this grade in terms of apply to ‘‘red’’ color. Furthermore, count, of nuts with kernels not darker
‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or ‘‘red’’ color shall not be mixed with than ‘‘light amber’’ which are free from
‘‘amber’’ from the USDA Walnut Color ‘‘extra light,’’ ‘‘light,’’ ‘‘light amber,’’ or grade defects and/or the percentage with
Chart or in terms of ‘‘red’’ color. The ‘‘amber’’ colors. When kernel color is kernels not darker than ‘‘light’’ which
color classifications in the USDA based on the color classifications from are free from grade defects, may be
Walnut Color Chart shall not apply to the USDA Walnut Color Chart, at least specified in accordance with the facts.
‘‘red’’ color. Furthermore, ‘‘red’’ color 60 percent, by count, of the walnuts (See § 51.2954 of this part)
shall not be mixed with ‘‘extra light,’’ have kernels which are not darker than
‘‘light,’’ ‘‘light amber,’’ or ‘‘amber’’ ‘‘light amber,’’ and which are free from § 51.2951 [Removed and reserved].
colors. When kernel color is based on grade defects. Higher percentages of
the color classifications from the USDA nuts with kernels not darker than ‘‘light ■ 13. In § 51.2951 is removed and
Walnut Color Chart, at least 70 percent, amber’’ which are free from grade reserved.
by count, of the walnuts have kernels defects, and/or percentages with kernels ■ 14. In § 51.2954 revise the table to
which are not darker than ‘‘light not darker than ‘‘light’’ which are free read as follows:
amber,’’ and which are free from grade from grade defects, may be specified in
defects: Provided, That at least four- accordance with the facts. (See § 51.2954 Tolerances for Grade Defects.
sevenths of the above amount, or 40 § 51.2954 of this part) * * * * *

TOLERANCES FOR GRADE DEFECTS
Kernel color based on USDA Kernel color
Grade External (shell) defects Internal (kernel) defects Walnut Color Chart based on red

U.S. No. 1 ........... 10%, by count, for splits. 5%, by 10% total, by count, including not No tolerance to reduce the re- ........................
count, for other shell defects, more than 6% which are dam- quired 70% of ‘‘light amber’’
including not more than 3% se- aged by mold or insects or seri- kernels or the required 40% of
riously damaged. ously damaged by other ‘‘light’’ kernels or any larger
ehiers on DSK5VPTVN1PROD with PROPOSALS

means, of which not more than percentage of ‘‘light amber’’ or
5⁄6 or 5% may be damaged by ‘‘light’’ kernels specified.
insects, but no part of any tol-
erance shall be allowed for wal-
nuts containing live insects.

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Federal Register / Vol. 81, No. 227 / Friday, November 25, 2016 / Proposed Rules 85167

TOLERANCES FOR GRADE DEFECTS—Continued
Kernel color based on USDA Kernel color
Grade External (shell) defects Internal (kernel) defects Walnut Color Chart based on red

U.S. No. 2 ........... 10%, by count, for splits. 10%, by 15% total, by count, including not No tolerance to reduce the re- ........................
count, for other shell defects, more than 8% which are dam- quired 60% or any specified
including not more than 5%t aged by mold or insects or seri- larger percentage of ‘‘light
serious damage by adhering ously damaged by other amber’’ kernels, or any speci-
hulls. means, of which not more than fied percentage of ‘‘light’’ ker-
5⁄8 or 5% may be damaged by nels.
insects, but no part of any tol-
erance shall be allowed for wal-
nuts containing live insects.
U.S. No. 3 ........... Same as above tolerance for U.S. Same as above tolerance for U.S. No tolerance to reduce any per- ........................
No. 2. No. 2. centage of ‘‘light amber’’ or
‘‘light’’ kernel specified.

Dated: November 18, 2016. 1aaabcfe0d44b8af50dc165366358d74& consumers to determine whether
Elanor Starmer, mc=true&node=pt7.8.927&rgn=div5. continuing the order would tend to
Administrator, Agricultural Marketing FOR FURTHER INFORMATION CONTACT: effectuate the declared policy of the Act.
Service. Teresa Hutchinson or Gary D. Olson, In accordance with the Paperwork
[FR Doc. 2016–28253 Filed 11–23–16; 8:45 am] Northwest Marketing Field Office, Reduction Act of 1995 (44 U.S.C.
BILLING CODE 3410–02–P Marketing Order and Agreement Chapter 35), the ballot materials used in
Division, Specialty Crops Program, the referendum herein ordered have
AMS, USDA; Telephone: (503) 326– been submitted to and approved by the
DEPARTMENT OF AGRICULTURE 2724, Fax: (503) 326–7440, or Email: Office of Management and Budget
Teresa.Hutchinson@ams.usda.gov or (OMB) and have been assigned OMB
Agricultural Marketing Service GaryD.Olson@ams.usda.gov. No. 0581–0189, Generic Fruit Crops. It
7 CFR Part 927 SUPPLEMENTARY INFORMATION: Pursuant has been estimated that it will take an
to Marketing Order No. 927 (7 CFR part average of 20 minutes for each of the
[Doc. No. AMS–SC–16–0090; SC16–927–1 927), hereinafter referred to as the approximately 1600 Oregon-Washington
CR] ‘‘order,’’ and the applicable provisions pear growers to cast a ballot.
of the Agricultural Marketing Participation is voluntary. Ballots
Pears Grown in Oregon and
Agreement Act of 1937, as amended (7 postmarked after March 1, 2017, will
Washington; Continuance Referendum
U.S.C. 601–674), hereinafter referred to not be included in the vote tabulation.
AGENCY: Agricultural Marketing Service, as the ‘‘Act,’’ it is hereby directed that
USDA. a referendum be conducted to ascertain Teresa Hutchinson and Gary D. Olson
ACTION: Referendum order. whether continuance of the order is of the Northwest Marketing Field Office,
favored by growers. The referendum Specialty Crops Program, AMS, USDA,
SUMMARY: This document directs that a shall be conducted from February 15 are hereby designated as the referendum
referendum be conducted among through March 1, 2017, among eligible agents of the Secretary of Agriculture to
eligible Oregon and Washington pear Oregon and Washington pear growers. conduct this referendum. The procedure
growers to determine whether they favor Only current growers that were also applicable to the referendum shall be
continuance of the marketing order engaged in the production of pears in the ‘‘Procedure for the Conduct of
regulating the handling of pears grown Oregon or Washington during the period Referenda in Connection With
in Oregon and Washington. of July 1, 2015, through June 30, 2016, Marketing Orders for Fruits, Vegetables,
DATES: The referendum will be may participate in the continuance and Nuts Pursuant to the Agricultural
conducted from February 15 through referendum. Marketing Agreement Act of 1937, as
March 1, 2017. Only current growers of USDA has determined that Amended’’ (7 CFR 900.400–900.407).
pears within the designated production continuance referenda are an effective Ballots will be mailed to all growers
area in Oregon and Washington that means for determining whether growers of record and may also be obtained from
have grown pears during the period July favor the continuation of marketing the referendum agents or from their
1, 2015, through June 30, 2016, are order programs. USDA would consider appointees.
eligible to vote in this referendum. termination of the order if less than two-
ADDRESSES: Copies of the marketing thirds of the growers voting in the List of Subjects in 7 CFR Part 927
order may be obtained from the referendum and growers of less than
Northwest Marketing Field Office, two-thirds of the volume of Oregon and Marketing agreements, Pears,
Marketing Order and Agreement Washington pears represented in the Reporting and recordkeeping
Division, Specialty Crops Program, referendum favor continuance of their requirements.
AMS, USDA; Telephone: (503) 326– program. In evaluating the merits of
ehiers on DSK5VPTVN1PROD with PROPOSALS

Authority: 7 U.S.C. 601–674.
2724; the Office of the Docket Clerk, continuance versus termination, USDA Dated: November 18, 2016.
Marketing Order and Agreement will not exclusively consider the results
Division, Specialty Crops Program, of the continuance referendum. USDA Bruce Summers,
AMS, USDA, 1400 Independence will also consider all other relevant Associate Administrator, Agricultural
Avenue SW., STOP 0237, Washington, information regarding operation of the Marketing Service.
DC 20250–0237; or Internet: http:// order and relative benefits and [FR Doc. 2016–28256 Filed 11–23–16; 8:45 am]
www.ecfr.gov/cgi-bin/text-idx?SID= disadvantages to growers, handlers, and BILLING CODE 3410–02–P

VerDate Sep<11>2014 14:01 Nov 23, 2016 Jkt 241001 PO 00000 Frm 00004 Fmt 4702 Sfmt 9990 E:\FR\FM\25NOP1.SGM 25NOP1
Document Created: 2016-11-23 23:18:20
Document Modified: 2016-11-23 23:18:20
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Proposed rule.
Dates		Comments must be submitted on or before January 24, 2017.
FR Citation		81 FR 85164
CFR Associated		Food Grades and Standards; Food Labeling; Frozen Foods; Fruit Juices; Fruits; Reporting and Recordkeeping Requirements and Vegetables
81 FR 85164 - U.S. Standards for Grades of Shelled Walnuts and Walnuts in the Shell

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 81, Issue 227 (November 25, 2016)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
