82_FR_39528 82 FR 39369 - Hazelnuts Grown in Oregon and Washington; Increased Assessment Rate

82 FR 39369 - Hazelnuts Grown in Oregon and Washington; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 159 (August 18, 2017)

Page Range39369-39371
FR Document2017-17488

This proposed rule would implement a recommendation from the Hazelnut Marketing Board (Board) to increase the assessment rate established for the 2017-2018 and subsequent marketing years from $0.005 to $0.006 per pound of hazelnuts handled under the marketing order (order). The Board locally administers the order and is comprised of growers and handlers of hazelnuts operating within the area of production. The Board's membership also includes one public member. Assessments upon hazelnut handlers are used by the Board to fund reasonable and necessary expenses of the program. The marketing year begins July 1 and ends June 30. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 159 (Friday, August 18, 2017)
[Federal Register Volume 82, Number 159 (Friday, August 18, 2017)]
[Proposed Rules]
[Pages 39369-39371]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-17488]


========================================================================
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. 82, No. 159 / Friday, August 18, 2017 / 
Proposed Rules

[[Page 39369]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Doc. No. AMS-SC-17-0036; SC17-982-1 PR]


Hazelnuts Grown in Oregon and Washington; Increased Assessment 
Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Hazelnut Marketing Board (Board) to increase the assessment rate 
established for the 2017-2018 and subsequent marketing years from 
$0.005 to $0.006 per pound of hazelnuts handled under the marketing 
order (order). The Board locally administers the order and is comprised 
of growers and handlers of hazelnuts operating within the area of 
production. The Board's membership also includes one public member. 
Assessments upon hazelnut handlers are used by the Board to fund 
reasonable and necessary expenses of the program. The marketing year 
begins July 1 and ends June 30. The assessment rate would remain in 
effect indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by September 18, 2017.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, 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 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the Internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: 
[email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation 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 proposed rule is issued under Marketing 
Agreement No. 115 and Order No. 982, both as amended (7 CFR part 982), 
regulating the handling of hazelnuts grown in Oregon and Washington, 
hereinafter referred to as the ``order.'' The order is effective under 
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 
601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See the Office of Management and 
Budget's (OMB) Memorandum titled, ``Interim Guidance Implementing 
Section 2 of the Executive Order of January 30, 2017, titled `Reducing 
Regulation and Controlling Regulatory Costs'[thinsp]'' (February 2, 
2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, Oregon 
and Washington hazelnut handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as proposed herein would be applicable to all 
assessable hazelnuts beginning on July 1, 2017, and continue until 
amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would increase the assessment rate for the 2017-
2018 and subsequent marketing years from $0.005 to $0.006 per pound of 
hazelnuts.
    The order provides authority for the Hazelnut Marketing Board 
(Board), with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members and alternate members of the Board are growers and 
handlers of Oregon and Washington hazelnuts. The Board's membership 
also includes one public member and an alternate public member, neither 
of whom are involved in the production or handling of hazelnuts. The 
Board members are familiar with the program's needs and with the costs 
for goods and services in their local area and are thus in a position 
to formulate an appropriate budget and assessment rate. The assessment 
rate is formulated and discussed in a public meeting. Thus, all 
directly affected persons have an opportunity to participate and 
provide input.
    For the 2000-2001 and subsequent marketing years, the Board 
recommended, and USDA approved, an assessment rate that would continue 
in

[[Page 39370]]

effect from marketing year to marketing year unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Board or other information available to USDA.
    The Board met on May 17, 2017, and unanimously recommended 2017-
2018 marketing year expenditures of $878,627 and an assessment rate of 
$0.006 per pound of hazelnuts handled. In comparison, last year's 
budgeted expenditures were $765,598. The assessment rate of $0.006 per 
pound is $0.001 per pound higher than the rate currently in effect.
    The major expenditures recommended by the Board for the 2017-2018 
marketing year include $210,590 for administrative expenses, $111,000 
for a crop survey, $342,037 for promotional activities, $35,000 for 
consulting, and $180,000 for undesignated emergency/miscellaneous 
expenses. Budgeted expenses for these items in the 2016-2017 marketing 
year were $138,088, $96,000, $234,510, $35,000, and $262,000, 
respectively. The increase in administrative expenses reflects the 
addition of an administrative staff member. The budget increase for 
marketing and promotion expenditures reflects the Board's desire to 
improve domestic hazelnut's share of the edible nut market and to 
increase consumer awareness of Oregon and Washington hazelnut products.
    The assessment rate recommended by the Board was derived at an 
annual meeting of the Board where budgetary matters for the forthcoming 
marketing year were discussed. After an open discussion with growers, 
handlers, and industry personnel, the Board established a crop estimate 
for the 2017-2018 marketing year. The Board considered the crop 
estimate, the recommended 2017-2018 marketing year expenses, and the 
Board's financial reserve when it recommended the assessment rate 
increase.
    Shipments for the year are estimated to be 80,000,000 pounds, which 
should provide $480,000 in assessment income at the $0.006 per pound 
assessment rate. Income derived from handler assessments, along with 
funds from the Board's authorized reserve and other income, would be 
adequate to cover budgeted expenses. Section 982.62(a) of the order 
specifies that the financial reserve is not to exceed approximately one 
marketing year's operational expenses. The Board expects its financial 
reserve to be $316,881 at the beginning of the 2017-2018 marketing year 
and $117,348 at the end of the year, which would be within the reserve 
limit authorized under the order.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Board or other available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Board would continue to meet prior to or during each 
marketing year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Board meetings are available from the Board or USDA. Board 
meetings are open to the public and interested persons may express 
their views at these meetings. USDA would evaluate Board 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Board's 2017-2018 marketing year 
budget, and those for subsequent marketing years, would be reviewed 
and, as appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    According to the Board, there are approximately 800 growers of 
hazelnuts in the production area and approximately 17 handlers subject 
to regulation under the marketing order. Small agricultural producers 
(growers) are defined by the Small Business Administration (SBA) as 
those having annual receipts less than $750,000, and small agricultural 
service firms (handlers) are defined as those whose annual receipts are 
less than $7,500,000 (13 CFR 121.201).
    According to the latest National Agricultural Statistic Service 
(NASS) data, 2015 grower prices averaged $1.40 per pound. With a total 
production of 62,000,000 pounds in the same year, the farm gate value 
for hazelnuts in 2015 totaled $86.8 million ($1.40 per pound multiplied 
by 62,000,000 pounds). Taking the total 2015 value of production for 
hazelnuts and dividing it by the approximate number of hazelnut growers 
provides an average return per grower of $108,500. It is estimated by 
the Board that approximately 98 percent of hazelnut growers under the 
marketing order have annual receipts less than $750,000. Therefore, a 
majority of hazelnut growers are considered small entities under the 
SBA standards.
    According to the Board, four of the approximately 17 hazelnut 
handlers process and ship 80 percent of the total crop. An estimation 
of handler receipts can be calculated using the same 2015 farm gate 
value of $86.8 million from NASS, described above. Multiplying $86.8 
million by 80 percent ($86.8 million x 80 percent = $69.4 million) and 
dividing by four indicates that the largest hazelnut handlers received 
an estimated $17.4 million each. Dividing the remaining 20 percent 
($17.4 million) by the remaining 13 handlers yields average annual 
receipts of $1.3 million per handler. Therefore, under SBA's definition 
of a small business, about 24 percent of handlers could be considered 
large businesses and about 76 percent could be considered small 
businesses. Thus, the majority of hazelnut handlers in Oregon and 
Washington may be classified as small entities.
    This proposal would increase the assessment rate established for 
the Board and collected from handlers for the 2017-2018 and subsequent 
marketing years from $0.005 to $0.006 per pound of hazelnuts handled. 
The Board unanimously recommended 2017-2018 expenditures of $878,627 
and an assessment rate of $0.006 per pound. The proposed assessment 
rate of $0.006 per pound is $0.001 per pound higher than the 2016-2017 
rate. The quantity of assessable hazelnuts for the 2017-2018 marketing 
year is estimated at 80,000,000 pounds. Thus, the $0.006 per pound rate 
should provide $480,000 in assessment income. This amount, along with 
the Board's reserve funds and other income, should be adequate to cover 
budgeted expenses.
    The major expenditures recommended by the Board for the 2017-2018 
marketing year include $210,590 for administrative expenses, $111,000 
for a crop survey, $342,037 for promotional activities, $35,000 for 
consulting, and $180,000 for undesignated emergency/miscellaneous 
expenses. Budgeted expenses for these items in the 2016-2017 marketing 
year were $138,088, $96,000, $234,510, $35,000, and $262,000, 
respectively.
    The Board believes there is a need to expand its promotion and 
outreach

[[Page 39371]]

activities to increase consumers' awareness of, and desire for, Oregon 
and Washington hazelnuts in the edible tree nut market. The Oregon and 
Washington hazelnut industry has experienced a large amount of growth 
in new orchard plantings in recent years. The supply of hazelnuts grown 
in the production area is expected to increase greatly as newly planted 
trees come into nut bearing age (approximately 3 to 7 years after 
planting, depending on the variety of hazelnut tree). The proposed 
increase to the assessment rate is necessary to fund expanded 
promotional activities intended to assist marketing of the anticipated 
increased supply of hazelnuts in the forthcoming years.
    Prior to arriving at this budget and assessment rate, the Board 
considered information from various sources, such as the Board's Budget 
and Personnel Committee, representatives from private research firms, 
and input from industry personnel. Alternative expenditure levels were 
discussed by these groups, based upon the relative value of various 
activities to the hazelnut industry. Many growers at the May 17, 2017, 
meeting were in favor of even greater spending by the Board on 
promotional activities for hazelnuts, while handlers were more 
conservative.
    The Board ultimately determined that 2017-2018 marketing year 
expenditures of $878,627 were appropriate, and the recommended 
assessment rate, when combined with reserve funds and other income, 
would generate sufficient revenue to meet its budgeted expenses. 
Further, the Board will maintain a $180,000 emergency fund throughout 
the 2017-2018 marketing year in order to cover any unforeseen or 
emergency operational expenses. If the 2017-2018 emergency funds are 
not expended, the resulting operating reserve would not exceed the 
limit authorized under the order.
    A review of historical information and preliminary information 
pertaining to the upcoming marketing year indicates that the grower 
price for the 2017-2018 marketing year could range between $0.81 and 
$1.80 per pound (NASS, 2017). Therefore, the estimated assessment 
revenue for the 2017-2018 marketing year as a percentage of total 
grower revenue could range between 0.74 and 0.33 percent, respectively.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to growers. However, these costs 
would be offset by the benefits derived by the operation of the 
marketing order. In addition, the Board's meeting was widely publicized 
throughout the Oregon and Washington hazelnut industry, and all 
interested persons were invited to attend the meeting and participate 
in Board deliberations on all issues. Like all Board meetings, the May 
17, 2017, meeting was a public meeting, and all entities, both large 
and small, were able to express views on this issue. Finally, 
interested persons are invited to submit comments on this proposed 
rule, including the regulatory and informational impacts of this action 
on small businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by 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 Oregon and 
Washington hazelnut handlers. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed 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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rule. Thirty days is deemed appropriate 
because: (1) The 2017-2018 marketing year begins on July 1, 2017, and 
the marketing order requires that the rate of assessment for each 
marketing year apply to all assessable hazelnuts handled during such 
marketing year; (2) the Board needs to have sufficient funds to pay its 
expenses, which are incurred on a continuous basis; and (3) handlers 
are aware of this action, which was unanimously recommended by the 
Board at a public meeting and is similar to other assessment rate 
actions issued in the past.

List of Subjects in 7 CFR Part 982

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

    For the reasons set forth in the preamble, 7 CFR part 982 is 
proposed to be amended as follows:

PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 982 continues to read as 
follows:

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

0
2. Section 982.340 is revised to read as follows:


Sec.  982.340  Assessment rate.

    On and after July 1, 2017, an assessment rate of $0.006 per pound 
is established for Oregon and Washington hazelnuts.

    Dated: August 15, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-17488 Filed 8-17-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                    39369

                                                    Proposed Rules                                                                                                Federal Register
                                                                                                                                                                  Vol. 82, No. 159

                                                                                                                                                                  Friday, August 18, 2017



                                                    This section of the FEDERAL REGISTER                    Clerk during regular business hours, or               administer the order are derived from
                                                    contains notices to the public of the proposed          can be viewed at: http://                             such assessments. It is intended that the
                                                    issuance of rules and regulations. The                  www.regulations.gov. All comments                     assessment rate as proposed herein
                                                    purpose of these notices is to give interested          submitted in response to this proposed                would be applicable to all assessable
                                                    persons an opportunity to participate in the            rule will be included in the record and               hazelnuts beginning on July 1, 2017,
                                                    rule making prior to the adoption of the final
                                                    rules.
                                                                                                            will be made available to the public.                 and continue until amended,
                                                                                                            Please be advised that the identity of the            suspended, or terminated.
                                                                                                            individuals or entities submitting the                   The Act provides that administrative
                                                    DEPARTMENT OF AGRICULTURE                               comments will be made public on the                   proceedings must be exhausted before
                                                                                                            Internet at the address provided above.               parties may file suit in court. Under
                                                    Agricultural Marketing Service                          FOR FURTHER INFORMATION CONTACT: Dale                 section 608c(15)(A) of the Act, any
                                                                                                            Novotny, Marketing Specialist, or Gary                handler subject to an order may file
                                                    7 CFR Part 982                                          D. Olson, Regional Director, Northwest                with USDA a petition stating that the
                                                    [Doc. No. AMS–SC–17–0036; SC17–982–1                    Marketing Field Office, Marketing Order               order, any provision of the order, or any
                                                    PR]                                                     and Agreement Division, Specialty                     obligation imposed in connection with
                                                                                                            Crops Program, AMS, USDA;                             the order is not in accordance with law
                                                    Hazelnuts Grown in Oregon and                           Telephone: (503) 326–2724, Fax: (503)                 and request a modification of the order
                                                    Washington; Increased Assessment                        326–7440, or Email: DaleJ.Novotny@                    or to be exempted therefrom. Such
                                                    Rate                                                    ams.usda.gov or GaryD.Olson@                          handler is afforded the opportunity for
                                                                                                            ams.usda.gov.                                         a hearing on the petition. After the
                                                    AGENCY:  Agricultural Marketing Service,                  Small businesses may request                        hearing, USDA would rule on the
                                                    USDA.                                                   information on complying with this                    petition. The Act provides that the
                                                    ACTION: Proposed rule.                                  regulation by contacting Richard Lower,               district court of the United States in any
                                                                                                            Marketing Order and Agreement                         district in which the handler is an
                                                    SUMMARY:   This proposed rule would
                                                                                                            Division, Specialty Crops Program,                    inhabitant, or has his or her principal
                                                    implement a recommendation from the
                                                                                                            AMS, USDA, 1400 Independence                          place of business, has jurisdiction to
                                                    Hazelnut Marketing Board (Board) to
                                                                                                            Avenue SW., STOP 0237, Washington,                    review USDA’s ruling on the petition,
                                                    increase the assessment rate established
                                                                                                            DC 20250–0237; Telephone: (202) 720–                  provided an action is filed not later than
                                                    for the 2017–2018 and subsequent
                                                                                                            2491, Fax: (202)720–8938, or Email:                   20 days after the date of the entry of the
                                                    marketing years from $0.005 to $0.006
                                                                                                            Richard.Lower@ams.usda.gov.                           ruling.
                                                    per pound of hazelnuts handled under
                                                                                                            SUPPLEMENTARY INFORMATION: This                          This proposed rule would increase
                                                    the marketing order (order). The Board
                                                                                                            proposed rule is issued under Marketing               the assessment rate for the 2017–2018
                                                    locally administers the order and is
                                                                                                            Agreement No. 115 and Order No. 982,                  and subsequent marketing years from
                                                    comprised of growers and handlers of
                                                                                                            both as amended (7 CFR part 982),                     $0.005 to $0.006 per pound of
                                                    hazelnuts operating within the area of
                                                                                                            regulating the handling of hazelnuts                  hazelnuts.
                                                    production. The Board’s membership
                                                                                                            grown in Oregon and Washington,                          The order provides authority for the
                                                    also includes one public member.
                                                                                                            hereinafter referred to as the ‘‘order.’’             Hazelnut Marketing Board (Board), with
                                                    Assessments upon hazelnut handlers
                                                                                                            The order is effective under the                      the approval of USDA, to formulate an
                                                    are used by the Board to fund
                                                                                                            Agricultural Marketing Agreement Act                  annual budget of expenses and collect
                                                    reasonable and necessary expenses of
                                                                                                            of 1937, as amended (7 U.S.C. 601–674),               assessments from handlers to administer
                                                    the program. The marketing year begins
                                                                                                            hereinafter referred to as the ‘‘Act.’’               the program. The members and alternate
                                                    July 1 and ends June 30. The assessment
                                                                                                              The Department of Agriculture                       members of the Board are growers and
                                                    rate would remain in effect indefinitely
                                                                                                            (USDA) is issuing this proposed rule in               handlers of Oregon and Washington
                                                    unless modified, suspended, or
                                                                                                            conformance with Executive Orders                     hazelnuts. The Board’s membership also
                                                    terminated.
                                                                                                            12866, 13563, and 13175. Additionally,                includes one public member and an
                                                    DATES: Comments must be received by                     because this rule does not meet the                   alternate public member, neither of
                                                    September 18, 2017.                                     definition of a significant regulatory                whom are involved in the production or
                                                    ADDRESSES: Interested persons are                       action, it does not trigger the                       handling of hazelnuts. The Board
                                                    invited to submit written comments                      requirements contained in Executive                   members are familiar with the program’s
                                                    concerning this proposed rule.                          Order 13771. See the Office of                        needs and with the costs for goods and
                                                    Comments must be sent to the Docket                     Management and Budget’s (OMB)                         services in their local area and are thus
                                                    Clerk, Marketing Order and Agreement                    Memorandum titled, ‘‘Interim Guidance                 in a position to formulate an appropriate
                                                    Division, Specialty Crops Program,                      Implementing Section 2 of the Executive               budget and assessment rate. The
                                                    AMS, USDA, 1400 Independence                            Order of January 30, 2017, titled                     assessment rate is formulated and
mstockstill on DSK30JT082PROD with PROPOSALS




                                                    Avenue SW., STOP 0237, Washington,                      ‘Reducing Regulation and Controlling                  discussed in a public meeting. Thus, all
                                                    DC 20250–0237; Fax: (202) 720–8938; or                  Regulatory Costs’ ’’ (February 2, 2017).              directly affected persons have an
                                                    Internet: http://www.regulations.gov.                     This proposed rule has been reviewed                opportunity to participate and provide
                                                    Comments should reference the                           under Executive Order 12988, Civil                    input.
                                                    document number and the date and                        Justice Reform. Under the marketing                      For the 2000–2001 and subsequent
                                                    page number of this issue of the Federal                order now in effect, Oregon and                       marketing years, the Board
                                                    Register and will be available for public               Washington hazelnut handlers are                      recommended, and USDA approved, an
                                                    inspection in the Office of the Docket                  subject to assessments. Funds to                      assessment rate that would continue in


                                               VerDate Sep<11>2014   16:16 Aug 17, 2017   Jkt 241001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\18AUP1.SGM   18AUP1


                                                    39370                   Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Proposed Rules

                                                    effect from marketing year to marketing                   The proposed assessment rate would                  multiplied by 62,000,000 pounds).
                                                    year unless modified, suspended, or                     continue in effect indefinitely unless                Taking the total 2015 value of
                                                    terminated by USDA upon                                 modified, suspended, or terminated by                 production for hazelnuts and dividing it
                                                    recommendation and information                          USDA upon recommendation and                          by the approximate number of hazelnut
                                                    submitted by the Board or other                         information submitted by the Board or                 growers provides an average return per
                                                    information available to USDA.                          other available information.                          grower of $108,500. It is estimated by
                                                       The Board met on May 17, 2017, and                     Although this assessment rate would                 the Board that approximately 98 percent
                                                    unanimously recommended 2017–2018                       be in effect for an indefinite period, the            of hazelnut growers under the marketing
                                                    marketing year expenditures of                          Board would continue to meet prior to                 order have annual receipts less than
                                                    $878,627 and an assessment rate of                      or during each marketing year to                      $750,000. Therefore, a majority of
                                                    $0.006 per pound of hazelnuts handled.                  recommend a budget of expenses and                    hazelnut growers are considered small
                                                    In comparison, last year’s budgeted                     consider recommendations for                          entities under the SBA standards.
                                                    expenditures were $765,598. The                         modification of the assessment rate. The                 According to the Board, four of the
                                                    assessment rate of $0.006 per pound is                  dates and times of Board meetings are                 approximately 17 hazelnut handlers
                                                    $0.001 per pound higher than the rate                   available from the Board or USDA.                     process and ship 80 percent of the total
                                                    currently in effect.                                    Board meetings are open to the public                 crop. An estimation of handler receipts
                                                       The major expenditures                               and interested persons may express                    can be calculated using the same 2015
                                                    recommended by the Board for the                        their views at these meetings. USDA                   farm gate value of $86.8 million from
                                                    2017–2018 marketing year include                        would evaluate Board recommendations                  NASS, described above. Multiplying
                                                    $210,590 for administrative expenses,                   and other available information to                    $86.8 million by 80 percent ($86.8
                                                    $111,000 for a crop survey, $342,037 for                determine whether modification of the                 million × 80 percent = $69.4 million)
                                                    promotional activities, $35,000 for                     assessment rate is needed. Further                    and dividing by four indicates that the
                                                    consulting, and $180,000 for                            rulemaking would be undertaken as                     largest hazelnut handlers received an
                                                    undesignated emergency/miscellaneous                    necessary. The Board’s 2017–2018                      estimated $17.4 million each. Dividing
                                                    expenses. Budgeted expenses for these                   marketing year budget, and those for                  the remaining 20 percent ($17.4 million)
                                                    items in the 2016–2017 marketing year                   subsequent marketing years, would be                  by the remaining 13 handlers yields
                                                    were $138,088, $96,000, $234,510,                       reviewed and, as appropriate, approved                average annual receipts of $1.3 million
                                                    $35,000, and $262,000, respectively.                    by USDA.                                              per handler. Therefore, under SBA’s
                                                    The increase in administrative expenses                                                                       definition of a small business, about 24
                                                    reflects the addition of an                             Initial Regulatory Flexibility Analysis
                                                                                                                                                                  percent of handlers could be considered
                                                    administrative staff member. The budget                   Pursuant to requirements set forth in               large businesses and about 76 percent
                                                    increase for marketing and promotion                    the Regulatory Flexibility Act (RFA) (5               could be considered small businesses.
                                                    expenditures reflects the Board’s desire                U.S.C. 601–612), the Agricultural                     Thus, the majority of hazelnut handlers
                                                    to improve domestic hazelnut’s share of                 Marketing Service (AMS) has                           in Oregon and Washington may be
                                                    the edible nut market and to increase                   considered the economic impact of this                classified as small entities.
                                                    consumer awareness of Oregon and                        proposed rule on small entities.                         This proposal would increase the
                                                    Washington hazelnut products.                           Accordingly, AMS has prepared this                    assessment rate established for the
                                                       The assessment rate recommended by                   initial regulatory flexibility analysis.              Board and collected from handlers for
                                                    the Board was derived at an annual                        The purpose of the RFA is to fit                    the 2017–2018 and subsequent
                                                    meeting of the Board where budgetary                    regulatory actions to the scale of                    marketing years from $0.005 to $0.006
                                                    matters for the forthcoming marketing                   businesses subject to such actions in                 per pound of hazelnuts handled. The
                                                    year were discussed. After an open                      order that small businesses will not be               Board unanimously recommended
                                                    discussion with growers, handlers, and                  unduly or disproportionately burdened.                2017–2018 expenditures of $878,627
                                                    industry personnel, the Board                           Marketing orders issued pursuant to the               and an assessment rate of $0.006 per
                                                    established a crop estimate for the                     Act, and the rules issued thereunder, are             pound. The proposed assessment rate of
                                                    2017–2018 marketing year. The Board                     unique in that they are brought about                 $0.006 per pound is $0.001 per pound
                                                    considered the crop estimate, the                       through group action of essentially                   higher than the 2016–2017 rate. The
                                                    recommended 2017–2018 marketing                         small entities acting on their own                    quantity of assessable hazelnuts for the
                                                    year expenses, and the Board’s financial                behalf.                                               2017–2018 marketing year is estimated
                                                    reserve when it recommended the                           According to the Board, there are                   at 80,000,000 pounds. Thus, the $0.006
                                                    assessment rate increase.                               approximately 800 growers of hazelnuts                per pound rate should provide $480,000
                                                       Shipments for the year are estimated                 in the production area and                            in assessment income. This amount,
                                                    to be 80,000,000 pounds, which should                   approximately 17 handlers subject to                  along with the Board’s reserve funds
                                                    provide $480,000 in assessment income                   regulation under the marketing order.                 and other income, should be adequate to
                                                    at the $0.006 per pound assessment rate.                Small agricultural producers (growers)                cover budgeted expenses.
                                                    Income derived from handler                             are defined by the Small Business                        The major expenditures
                                                    assessments, along with funds from the                  Administration (SBA) as those having                  recommended by the Board for the
                                                    Board’s authorized reserve and other                    annual receipts less than $750,000, and               2017–2018 marketing year include
                                                    income, would be adequate to cover                      small agricultural service firms                      $210,590 for administrative expenses,
                                                    budgeted expenses. Section 982.62(a) of                 (handlers) are defined as those whose                 $111,000 for a crop survey, $342,037 for
                                                    the order specifies that the financial                  annual receipts are less than $7,500,000              promotional activities, $35,000 for
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                                                    reserve is not to exceed approximately                  (13 CFR 121.201).                                     consulting, and $180,000 for
                                                    one marketing year’s operational                          According to the latest National                    undesignated emergency/miscellaneous
                                                    expenses. The Board expects its                         Agricultural Statistic Service (NASS)                 expenses. Budgeted expenses for these
                                                    financial reserve to be $316,881 at the                 data, 2015 grower prices averaged $1.40               items in the 2016–2017 marketing year
                                                    beginning of the 2017–2018 marketing                    per pound. With a total production of                 were $138,088, $96,000, $234,510,
                                                    year and $117,348 at the end of the year,               62,000,000 pounds in the same year, the               $35,000, and $262,000, respectively.
                                                    which would be within the reserve limit                 farm gate value for hazelnuts in 2015                    The Board believes there is a need to
                                                    authorized under the order.                             totaled $86.8 million ($1.40 per pound                expand its promotion and outreach


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                                                                            Federal Register / Vol. 82, No. 159 / Friday, August 18, 2017 / Proposed Rules                                                39371

                                                    activities to increase consumers’                       benefits derived by the operation of the              needs to have sufficient funds to pay its
                                                    awareness of, and desire for, Oregon and                marketing order. In addition, the                     expenses, which are incurred on a
                                                    Washington hazelnuts in the edible tree                 Board’s meeting was widely publicized                 continuous basis; and (3) handlers are
                                                    nut market. The Oregon and                              throughout the Oregon and Washington                  aware of this action, which was
                                                    Washington hazelnut industry has                        hazelnut industry, and all interested                 unanimously recommended by the
                                                    experienced a large amount of growth in                 persons were invited to attend the                    Board at a public meeting and is similar
                                                    new orchard plantings in recent years.                  meeting and participate in Board                      to other assessment rate actions issued
                                                    The supply of hazelnuts grown in the                    deliberations on all issues. Like all                 in the past.
                                                    production area is expected to increase                 Board meetings, the May 17, 2017,
                                                    greatly as newly planted trees come into                meeting was a public meeting, and all                 List of Subjects in 7 CFR Part 982
                                                    nut bearing age (approximately 3 to 7                   entities, both large and small, were able               Hazelnuts, Marketing agreements,
                                                    years after planting, depending on the                  to express views on this issue. Finally,              Nuts, Reporting and recordkeeping
                                                    variety of hazelnut tree). The proposed                 interested persons are invited to submit              requirements.
                                                    increase to the assessment rate is                      comments on this proposed rule,                         For the reasons set forth in the
                                                    necessary to fund expanded                              including the regulatory and                          preamble, 7 CFR part 982 is proposed to
                                                    promotional activities intended to assist               informational impacts of this action on               be amended as follows:
                                                    marketing of the anticipated increased                  small businesses.
                                                    supply of hazelnuts in the forthcoming                     In accordance with the Paperwork                   PART 982—HAZELNUTS GROWN IN
                                                    years.                                                  Reduction Act of 1995 (44 U.S.C.                      OREGON AND WASHINGTON
                                                      Prior to arriving at this budget and                  Chapter 35), the order’s information
                                                    assessment rate, the Board considered                   collection requirements have been                     ■ 1. The authority citation for 7 CFR
                                                    information from various sources, such                  previously approved by OMB and                        part 982 continues to read as follows:
                                                    as the Board’s Budget and Personnel                     assigned OMB No. 0581–0178,                               Authority: 7 U.S.C. 601–674.
                                                    Committee, representatives from private                 Vegetable and Specialty Crops. No
                                                    research firms, and input from industry                 changes in those requirements as a                    ■ 2. Section 982.340 is revised to read
                                                    personnel. Alternative expenditure                      result of this action are necessary.                  as follows:
                                                    levels were discussed by these groups,                  Should any changes become necessary,                  § 982.340    Assessment rate.
                                                    based upon the relative value of various                they would be submitted to OMB for
                                                    activities to the hazelnut industry. Many               approval.                                               On and after July 1, 2017, an
                                                    growers at the May 17, 2017, meeting                       This proposed rule would impose no                 assessment rate of $0.006 per pound is
                                                    were in favor of even greater spending                  additional reporting or recordkeeping                 established for Oregon and Washington
                                                    by the Board on promotional activities                  requirements on either small or large                 hazelnuts.
                                                    for hazelnuts, while handlers were more                 Oregon and Washington hazelnut                          Dated: August 15, 2017.
                                                    conservative.                                           handlers. As with all Federal marketing               Bruce Summers,
                                                      The Board ultimately determined that                  order programs, reports and forms are                 Acting Administrator, Agricultural Marketing
                                                    2017–2018 marketing year expenditures                   periodically reviewed to reduce                       Service.
                                                    of $878,627 were appropriate, and the                   information requirements and                          [FR Doc. 2017–17488 Filed 8–17–17; 8:45 am]
                                                    recommended assessment rate, when                       duplication by industry and public                    BILLING CODE 3410–02–P
                                                    combined with reserve funds and other                   sector agencies.
                                                    income, would generate sufficient                          AMS is committed to complying with
                                                    revenue to meet its budgeted expenses.                  the E-Government Act, to promote the
                                                                                                            use of the Internet and other                         DEPARTMENT OF LABOR
                                                    Further, the Board will maintain a
                                                    $180,000 emergency fund throughout                      information technologies to provide                   Veterans’ Employment and Training
                                                    the 2017–2018 marketing year in order                   increased opportunities for citizen                   Service
                                                    to cover any unforeseen or emergency                    access to Government information and
                                                    operational expenses. If the 2017–2018                  services, and for other purposes.                     20 CFR Part 1011
                                                    emergency funds are not expended, the                      USDA has not identified any relevant
                                                    resulting operating reserve would not                   Federal rules that duplicate, overlap, or             [Docket No. VETS–2017–0001]
                                                    exceed the limit authorized under the                   conflict with this proposed action.
                                                                                                                                                                  RIN 1293–AA21
                                                    order.                                                     A small business guide on complying
                                                      A review of historical information and                with fruit, vegetable, and specialty crop             HIRE Vets Medallion Program
                                                    preliminary information pertaining to                   marketing agreements and orders may
                                                    the upcoming marketing year indicates                   be viewed at: http://www.ams.usda.gov/                AGENCY: Veterans’ Employment and
                                                    that the grower price for the 2017–2018                 rules-regulations/moa/small-businesses.               Training Service (VETS), Labor.
                                                    marketing year could range between                      Any questions about the compliance                    ACTION: Notice of proposed rulemaking.
                                                    $0.81 and $1.80 per pound (NASS,                        guide should be sent to Richard Lower
                                                    2017). Therefore, the estimated                         at the previously-mentioned address in                SUMMARY:   VETS is publishing this
                                                    assessment revenue for the 2017–2018                    the FOR FURTHER INFORMATION CONTACT                   Notice of Proposed Rulemaking (NPRM)
                                                    marketing year as a percentage of total                 section.                                              to propose regulations implementing the
                                                    grower revenue could range between                         A 30-day comment period is provided                Honoring Investments in Recruiting and
                                                    0.74 and 0.33 percent, respectively.                    to allow interested persons to respond                Employing (HIRE) American Military
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                                                      This action would increase the                        to this proposed rule. Thirty days is                 Veterans Act of 2017 (HIRE Vets Act of
                                                    assessment obligation imposed on                        deemed appropriate because: (1) The                   2017 or Act). The HIRE Vets Act
                                                    handlers. While assessments impose                      2017–2018 marketing year begins on                    requires the Department of Labor (DOL,
                                                    some additional costs on handlers, the                  July 1, 2017, and the marketing order                 Department) to annually solicit and
                                                    costs are minimal and uniform on all                    requires that the rate of assessment for              accept voluntary information from
                                                    handlers. Some of the additional costs                  each marketing year apply to all                      employers for consideration of
                                                    may be passed on to growers. However,                   assessable hazelnuts handled during                   employers to receive a HIRE Vets
                                                    these costs would be offset by the                      such marketing year; (2) the Board                    Medallion Award. VETS will review


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Document Created: 2017-08-18 07:40:29
Document Modified: 2017-08-18 07:40:29
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by September 18, 2017.
ContactDale Novotny, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation82 FR 39369 
CFR AssociatedHazelnuts; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements

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