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)

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, 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]


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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.

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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]
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