81 FR 96342 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 251 (December 30, 2016)

Page Range		96342-96344
FR Document		2016-31532

The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim rule that implemented a recommendation from the Administrative Committee for Pistachios (Committee) to decrease the assessment rate established for pistachios grown in California, Arizona, and New Mexico for the 2016-2017 and subsequent production years from $0.0035 to $0.0010 per pound of assessed weight pistachios handled under the marketing order (order). The Committee locally administers the order and is comprised of producers and handlers of pistachios operating within the area of production. The interim rule was necessary to allow the Committee to reduce its financial reserve while still providing adequate funding to meet program expenses.

Federal Register, Volume 81 Issue 251 (Friday, December 30, 2016)

[Federal Register Volume 81, Number 251 (Friday, December 30, 2016)]
[Rules and Regulations]
[Pages 96342-96344]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31532]


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

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Doc. No. AMS-SC-16-0076; SC16-983-2 FIR]


Pistachios Grown in California, Arizona, and New Mexico; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that implemented a recommendation 
from the Administrative Committee for Pistachios (Committee) to 
decrease the assessment rate established for pistachios grown in 
California, Arizona, and New Mexico for the 2016-2017 and subsequent 
production years from

[[Page 96343]]

$0.0035 to $0.0010 per pound of assessed weight pistachios handled 
under the marketing order (order). The Committee locally administers 
the order and is comprised of producers and handlers of pistachios 
operating within the area of production. The interim rule was necessary 
to allow the Committee to reduce its financial reserve while still 
providing adequate funding to meet program expenses.

DATES: Effective December 31, 2016.

FOR FURTHER INFORMATION CONTACT: Peter Sommers or Jeffrey Smutny, 
California Marketing Field Office, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-
5901, Fax: (559) 487-5906, or Email: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/rules-regulations/moa/small-businesses; or by contacting Richard Lower, 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 rule is issued under Marketing 
Agreement and Order No. 983, both as amended (7 CFR part 983), 
regulating the handling of pistachios grown in California, Arizona, and 
New Mexico, 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.
    Under the order, pistachio handlers in California, Arizona, and New 
Mexico are subject to assessments, which provide funds to administer 
the order. Assessment rates issued under the order are intended to be 
applicable to all assessable pistachios grown in the production area 
for the entire production year, and continue indefinitely until 
amended, suspended, or terminated. The Committee's production year 
begins on September 1, and ends on August 31.
    In an interim rule published in the Federal Register on September 
16, 2016, and effective on September 19, 2016, (81 FR 63679, Doc. No. 
AMS-SC-16-0076, SC16-983-2 IR), Sec.  983.253 was amended by decreasing 
the assessment rate established for pistachios grown in the production 
area for the 2016-2017 and subsequent production years from $0.0035 to 
$0.0010 per pound. The decrease in the per pound assessment rate allows 
the Committee to maintain its financial reserve while still providing 
adequate funding to meet program expenses.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 1,152 producers of pistachios in the 
production area and 19 handlers subject to regulation under the 
marketing order. The Small Business Administration defines small 
agricultural producers as those having annual receipts less than 
$750,000, and small agricultural service firms as those whose annual 
receipts are less than $7,500,000. (13 CFR 121.201)
    The National Agricultural Statistics Service (NASS) 2012 data on 
pistachio farm size indicates that there were 1,305 pistachio farms, of 
which 1,125 were less than 250 acres. That is, 87 percent were too 
small to have annual receipts of $750,000. NASS 2015 annual production 
data indicates that the per-acre production of pistachios was 1,160 
pounds. At an average value of $2.54 per pound, each acre of pistachios 
could return $2,948.40. In order for a producer to have $750,000 in 
annual receipts, the producer would have to have at least 255.3 acres. 
Thus, the majority of handlers and producers in the production area may 
be classified as small entities.
    Based on Committee data, it is estimated that about 53 percent of 
the handlers annually ship less than $7,500,000 worth of pistachios. 
Nine of the 19 regulated handlers (47 percent) received enough 
pistachios at an average price of $3.00 pound to be considered large 
handlers, leaving the percentage of small handlers at 53 percent.
    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2016-17 and subsequent production years from $0.0035 
to $0.0010 per pound of pistachios handled. The Committee unanimously 
recommended 2016-17 expenditures of $922,500 and an assessment rate of 
$0.0010 per pound of pistachios, which is $0.0025 lower than the 2015-
16 rate. The quantity of assessable pistachios for the 2016-17 
production year is estimated at 750 million pounds. Thus, the $0.0010 
rate should provide $750,000 in assessment income. Income derived from 
handler's assessments, along with interest and funds from the 
Committee's authorized reserve, should be adequate to cover expenses 
for the 2016-17 production year.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate reduces the burden 
on handlers, and may reduce the burden on producers.
    In addition, the Committee's meeting was widely publicized 
throughout the pistachio area of production and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the July 12, 
2016, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    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. 0581-0278. 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 action imposes no additional reporting or recordkeeping 
requirements on either small or large pistachio 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before November 15, 2016. No comments were received. Therefore, for 
reasons given in

[[Page 96344]]

the interim rule, we are adopting the interim rule as a final rule, 
without change.
    To view the interim rule, go to: https://www.regulations.gov/docket?D=AMS-SC-16-0076.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (81 FR 63679, September 16, 2016) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO

0
Accordingly, the interim rule amending 7 CFR part 983, which was 
published at 81 FR 63679 on September 16, 2016, is adopted as a final 
rule, without change.

    Dated: December 23, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-31532 Filed 12-29-16; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 81, No. 251 / Friday, December 30, 2016 / Rules and Regulations 96343

$0.0035 to $0.0010 per pound of amended by decreasing the assessment This rule continues in effect the
assessed weight pistachios handled rate established for pistachios grown in action that decreased the assessment
under the marketing order (order). The the production area for the 2016–2017 rate established for the Committee and
Committee locally administers the order and subsequent production years from collected from handlers for the 2016–17
and is comprised of producers and $0.0035 to $0.0010 per pound. The and subsequent production years from
handlers of pistachios operating within decrease in the per pound assessment $0.0035 to $0.0010 per pound of
the area of production. The interim rule rate allows the Committee to maintain pistachios handled. The Committee
was necessary to allow the Committee to its financial reserve while still unanimously recommended 2016–17
reduce its financial reserve while still providing adequate funding to meet expenditures of $922,500 and an
providing adequate funding to meet program expenses. assessment rate of $0.0010 per pound of
program expenses. pistachios, which is $0.0025 lower than
Final Regulatory Flexibility Analysis
DATES: Effective December 31, 2016. the 2015–16 rate. The quantity of
Pursuant to requirements set forth in assessable pistachios for the 2016–17
FOR FURTHER INFORMATION CONTACT:
the Regulatory Flexibility Act (RFA) (5 production year is estimated at 750
Peter Sommers or Jeffrey Smutny,
U.S.C. 601–612), the Agricultural million pounds. Thus, the $0.0010 rate
California Marketing Field Office,
Marketing Service (AMS) has should provide $750,000 in assessment
Marketing Order and Agreement
considered the economic impact of this income. Income derived from handler’s
Division, Specialty Crops Program,
rule on small entities. Accordingly, assessments, along with interest and
AMS, USDA; Telephone: (559) 487– AMS has prepared this final regulatory
5901, Fax: (559) 487–5906, or Email: funds from the Committee’s authorized
flexibility analysis. reserve, should be adequate to cover
PeterR.Sommers@ams.usda.gov or The purpose of the RFA is to fit
Jeffrey.Smutny@ams.usda.gov. expenses for the 2016–17 production
regulatory actions to the scale of year.
Small businesses may obtain businesses subject to such actions in
information on complying with this and This rule continues in effect the
order that small businesses will not be action that decreased the assessment
other marketing order regulations by unduly or disproportionately burdened.
viewing a guide at the following Web obligation imposed on handlers.
Marketing orders issued pursuant to the Assessments are applied uniformly on
site: http://www.ams.usda.gov/rules- Act, and the rules issued thereunder, are all handlers, and some of the costs may
regulations/moa/small-businesses; or by unique in that they are brought about be passed on to producers. However,
contacting Richard Lower, Marketing through group action of essentially decreasing the assessment rate reduces
Order and Agreement Division, small entities acting on their own the burden on handlers, and may reduce
Specialty Crops Program, AMS, USDA, behalf. the burden on producers.
1400 Independence Avenue SW., STOP There are approximately 1,152 In addition, the Committee’s meeting
0237, Washington, DC 20250–0237; producers of pistachios in the was widely publicized throughout the
Telephone: (202) 720–2491, Fax: (202) production area and 19 handlers subject pistachio area of production and all
720–8938, or Email: Richard.Lower@ to regulation under the marketing order. interested persons were invited to
ams.usda.gov. The Small Business Administration attend the meeting and participate in
SUPPLEMENTARY INFORMATION: This rule defines small agricultural producers as Committee deliberations on all issues.
is issued under Marketing Agreement those having annual receipts less than Like all Committee meetings, the July
and Order No. 983, both as amended (7 $750,000, and small agricultural service 12, 2016, meeting was a public meeting
CFR part 983), regulating the handling firms as those whose annual receipts are and all entities, both large and small,
of pistachios grown in California, less than $7,500,000. (13 CFR 121.201) were able to express views on this issue.
Arizona, and New Mexico, hereinafter The National Agricultural Statistics In accordance with the Paperwork
referred to as the ‘‘order.’’ The order is Service (NASS) 2012 data on pistachio Reduction Act of 1995 (44 U.S.C.
effective under the Agricultural farm size indicates that there were 1,305 Chapter 35), the order’s information
Marketing Agreement Act of 1937, as pistachio farms, of which 1,125 were collection requirements have been
amended (7 U.S.C. 601–674), hereinafter less than 250 acres. That is, 87 percent previously approved by the Office of
referred to as the ‘‘Act.’’ were too small to have annual receipts Management and Budget (OMB) and
The Department of Agriculture of $750,000. NASS 2015 annual assigned OMB No. 0581–0278. No
(USDA) is issuing this rule in production data indicates that the per- changes in those requirements as a
conformance with Executive Orders acre production of pistachios was 1,160 result of this action are necessary.
12866, 13563, and 13175. pounds. At an average value of $2.54 Should any changes become necessary,
Under the order, pistachio handlers in per pound, each acre of pistachios could they would be submitted to OMB for
California, Arizona, and New Mexico return $2,948.40. In order for a producer approval.
are subject to assessments, which to have $750,000 in annual receipts, the This action imposes no additional
provide funds to administer the order. producer would have to have at least reporting or recordkeeping requirements
Assessment rates issued under the order 255.3 acres. Thus, the majority of on either small or large pistachio
are intended to be applicable to all handlers and producers in the handlers. As with all Federal marketing
assessable pistachios grown in the production area may be classified as order programs, reports and forms are
production area for the entire small entities. periodically reviewed to reduce
production year, and continue Based on Committee data, it is information requirements and
indefinitely until amended, suspended, estimated that about 53 percent of the duplication by industry and public
or terminated. The Committee’s handlers annually ship less than sector agencies.
srobinson on DSK5SPTVN1PROD with RULES

production year begins on September 1, $7,500,000 worth of pistachios. Nine of USDA has not identified any relevant
and ends on August 31. the 19 regulated handlers (47 percent) Federal rules that duplicate, overlap or
In an interim rule published in the received enough pistachios at an conflict with this rule.
Federal Register on September 16, 2016, average price of $3.00 pound to be Comments on the interim rule were
and effective on September 19, 2016, (81 considered large handlers, leaving the required to be received on or before
FR 63679, Doc. No. AMS–SC–16–0076, percentage of small handlers at 53 November 15, 2016. No comments were
SC16–983–2 IR), § 983.253 was percent. received. Therefore, for reasons given in

VerDate Sep<11>2014 18:11 Dec 29, 2016 Jkt 241001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\30DER1.SGM 30DER1

Document Created: 2016-12-30 05:16:18
Document Modified: 2016-12-30 05:16:18

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		Rules and Regulations
Action		Affirmation of interim rule as final rule.
Dates		Effective December 31, 2016.
Contact		Peter Sommers or Jeffrey Smutny, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487- 5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation		81 FR 96342
CFR Associated		Marketing Agreements; Pistachios and Reporting and Recordkeeping Requirements

81 FR 96342 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 81, Issue 251 (December 30, 2016)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service