82_FR_49291 82 FR 49087 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

82 FR 49087 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 204 (October 24, 2017)

Page Range49087-49089
FR Document2017-22711

This rule implements a recommendation from the Administrative Committee for Pistachios (Committee) for a decrease in the assessment rate established for the 2017-18 and subsequent production years from $0.0010 to $0.0001 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, and a public member. Assessments upon pistachio handlers are used by the Committee to fund reasonable and necessary expenses of the program. The production year begins September 1 and ends August 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 204 (Tuesday, October 24, 2017)
[Federal Register Volume 82, Number 204 (Tuesday, October 24, 2017)]
[Rules and Regulations]
[Pages 49087-49089]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22711]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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


Federal Register / Vol. 82, No. 204 / Tuesday, October 24, 2017 / 
Rules and Regulations

[[Page 49087]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Docket No. AMS-SC-17-0048; SC17-983-2 IR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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

SUMMARY: This rule implements a recommendation from the Administrative 
Committee for Pistachios (Committee) for a decrease in the assessment 
rate established for the 2017-18 and subsequent production years from 
$0.0010 to $0.0001 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, and a public member. 
Assessments upon pistachio handlers are used by the Committee to fund 
reasonable and necessary expenses of the program. The production year 
begins September 1 and ends August 31. The assessment rate will remain 
in effect indefinitely unless modified, suspended, or terminated.

DATES: Effective October 24, 2017. Comments received by December 26, 
2017, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. 
Comments should reference the docket 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 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 comments will be 
made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Peter R. Sommers, Marketing 
Specialist, or Jeffrey Smutny, Regional Director, 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 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 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 13563 and 13175.
    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866 and is not 
subject to review by the Office of Management and Budget (OMB). 
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 OMB's 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the order now in effect, California, Arizona, and 
New Mexico pistachio handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as issued herein will be applicable to all 
assessable pistachios beginning September 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 rule decreases the assessment rate established for the 
Committee for the 2017-18 and subsequent production years from $0.0010 
to $0.0001 per pound of assessed weight pistachios.
    The order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members of the 
Committee are producers and handlers of California, Arizona, and New 
Mexico pistachios. The Committee also has a public member and an 
alternate public member who have no proprietary involvement with the 
industry. The producers and handlers are familiar with the Committee'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.

[[Page 49088]]

Thus, all directly affected persons have an opportunity to participate 
and provide input.
    For the 2016-17 and subsequent production years, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from production year to production year unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on July 10, 2017, and unanimously recommended 
2017-18 expenditures of $672,900, and met again on August 1, 2017, to 
deliberate and recommend the 2017-18 assessment rate. At that time, the 
Committee recommended an assessment rate of $0.0001 per pound of 
assessed weight pistachios by majority vote. In comparison, last year's 
budgeted expenditures were $922,500, and the assessment rate was 
$0.0010 per pound of pistachios. The assessment rate of $0.0001 is 
$0.0009 lower than the rate currently in effect.
    The major expenditures recommended by the Committee for the 2017-18 
production year include $351,000 for salaries and benefits, $125,000 
for research, and $80,400 for general and administrative expenses. 
Budgeted expenses for these items in the 2016-17 production year were 
$351,000, $375,000, and $80,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of California, 
Arizona, and New Mexico pistachios. Pistachio shipments for the 
production year are estimated at 550 million pounds which should 
provide $55,000 in assessment income. Income derived from handler 
assessments, along with interest income, California Pistachio Research 
Board (CPRB) management income, and funds from the Committee's 
authorized reserve, will be adequate to cover budgeted expenses. Funds 
in the reserve will be kept within the maximum limit permitted by the 
order, which is approximately two production years' budgeted expenses 
as stated in Sec.  983.74(a)(2).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate is effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
production year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2017-18 production year 
budget and those for subsequent production years will 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 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.
    There are 18 handlers subject to regulation under the order and 
approximately 1,236 producers of pistachios in the production area. The 
Small Business Administration defines small agricultural service firms 
as those whose annual receipts are less than $7,500,000 and small 
agricultural producers as those having annual receipts less than 
$750,000 (13 CFR 121.201).
    Based on Committee data, it is estimated that about 50 percent of 
the handlers annually ship less than $7,500,000 worth of pistachios. 
Nine of the 18 (50 percent) regulated handlers received enough 
pistachios at an average price of $2.50 per pound to be considered 
large handlers, leaving the percentage of small handlers at 50 percent.
    The National Agricultural Statistics Service (NASS) 2012 data on 
pistachio farm size indicates that there were 1,305 pistachio farms, of 
which 945, or 72 percent, were less than 100 acres. NASS 2016 annual 
production data indicates that the per-acre production of pistachios 
was 3,750 pounds. At an average value of $1.68 per pound, each acre of 
pistachios could return $6,300. In order for a producer to have 
$750,000 in annual receipts, the producer would have to have at least 
119 acres. Thus, the majority of handlers and producers in the 
production area may be classified as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2017-18 and subsequent 
production years from $0.0010 to $0.0001 per pound of pistachios 
handled. The Committee unanimously recommended 2017-18 expenditures of 
$672,900, and recommended an assessment rate of $0.0001 per pound of 
assessed weight pistachios, by majority vote. The new assessment rate 
is $0.0009 lower than the rate currently in effect. The quantity of 
assessable pistachios for the 2017-18 production year is estimated at 
550 million pounds. Thus, the $0.0001 rate should provide $55,000 in 
assessment income. Income derived from handler's assessments, along 
with interest income, CPRB management income, and funds from the 
Committee's authorized reserve, will be adequate to cover expenses for 
the 2017-18 production year.
    The major expenditures recommended by the Committee for the 2017-18 
production year include $351,000 for salaries and benefits, $125,000 
for research, and $80,400 for general and administrative expenses. 
Budgeted expenses for these items in the 2016-17 production year were 
$351,000, $375,000, and $80,000, respectively.
    The assessment rate decrease is necessary to ensure the Committee's 
financial reserve remains within the limit specified under the order.
    In addition, the Committee had funded research pertaining to 
Sterile Insect Technology (SIT) for Navel Orangeworm control during the 
2016-2017 production year. Beginning with the 2017-18 production year, 
the CPRB will fully fund the SIT research, removing that financial 
burden from the committee. For this reason, the Committee recommended 
decreasing the assessment rate from $0.0010 to $0.0001, by majority 
vote. The income generated from the lower assessment rate combined with 
interest income, CPRB management income, and funds from the financial 
reserve should provide sufficient income to cover anticipated 2017-18 
expenses and maintain the financial reserve within the limit specified 
under the order.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources. Alternative expenditure 
levels

[[Page 49089]]

were discussed, based upon the relative value of various activities to 
the pistachio industry. The Committee ultimately determined that the 
2017-18 production year expenses of $672,900 were prudent, and the 
assessment income provided by the reduced rate, interest income, CPRB 
management income, and funds from the financial reserve, would permit 
the Committee to meet its expenses, while not adding to the financial 
reserve.
    According to data from NASS, the season average producer price was 
$3.29 per pound of assessed weight pistachios in 2015 and $1.68 per 
pound in 2016. A review of historical and preliminary information 
pertaining to the upcoming production year indicates that the producer 
revenue for the 2017-18 production year could range between 
$924,000,000 and $1,809,500,000. Therefore, the estimated assessment 
revenue for the 2017-18 production year as a percentage of total 
producer revenue could range between 0.00003 and 0.00006 percent.
    This action decreases 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. Additionally, the Committee's meetings were widely 
publicized throughout the California, Arizona, and New Mexico pistachio 
industry, and all interested persons were invited to attend the 
meetings and encouraged to participate in Committee deliberations on 
all issues. Like all Committee meetings, the July 10, 2017, and August 
1, 2017, meetings were public meetings 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 interim 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. 0581-0215, ``Vegetable 
and Specialty Crop Marketing Orders.'' 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 California, Arizona, and New 
Mexico 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.
    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 rule.
    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.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because handlers are 
aware of this rule, which was recommended at a public meeting. This 
interim rule provides for a 60-day comment period, and all comments 
timely received will be considered prior to finalization of this rule. 
The decreased assessment rate is necessary to fund reasonable and 
necessary expenses of the program, while keeping the funds in the 
reserve within the maximum limit permitted by the order. Moreover, the 
decreased assessment rate reduces the economic burden on handlers.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 983 is 
amended as follows:

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

0
1. The authority citation for 7 CFR part 983 continues to read as 
follows:

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


Sec. Sec.  983.1 through 983.92   [Designated as Subpart A]

0
2. Designate Sec. Sec.  983.1 through 983.92 as subpart A and add a 
heading for subpart A to read as follows:

Subpart A--Order Regulating Handling

    [Subpart Redesignated as Subpart B and Amended]

0
3. Redesignate ``Subpart--Rules and Regulations'' as subpart B and 
revise the heading to read as follows:

Subpart B--Administrative Requirements

    [Subpart Redesignated as Subpart C]

0
4. Redesignate ``Subpart--Assessment Rate'' as subpart C.

0
5. Section 983.253 is revised to read as follows:


Sec.  983.253   Assessment rate.

    On and after September 1, 2017, an assessment rate of $0.0001 per 
pound is established for California, Arizona, and New Mexico 
pistachios.

    Dated: October 16, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-22711 Filed 10-23-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                             49087

                                             Rules and Regulations                                                                                         Federal Register
                                                                                                                                                           Vol. 82, No. 204

                                                                                                                                                           Tuesday, October 24, 2017



                                             This section of the FEDERAL REGISTER                    date and page number of this issue of                 ‘Reducing Regulation and Controlling
                                             contains regulatory documents having general            the Federal Register and will be                      Regulatory Costs’ ’’ (February 2, 2017).
                                             applicability and legal effect, most of which           available for public inspection in the                  This rule has been reviewed under
                                             are keyed to and codified in the Code of                Office of the Docket Clerk during regular             Executive Order 12988, Civil Justice
                                             Federal Regulations, which is published under           business hours, or can be viewed at:                  Reform. Under the order now in effect,
                                             50 titles pursuant to 44 U.S.C. 1510.
                                                                                                     http://www.regulations.gov. All                       California, Arizona, and New Mexico
                                             The Code of Federal Regulations is sold by              comments submitted in response to this                pistachio handlers are subject to
                                             the Superintendent of Documents.                        rule will be included in the record and               assessments. Funds to administer the
                                                                                                     will be made available to the public.                 order are derived from such
                                                                                                     Please be advised that the identity of the            assessments. It is intended that the
                                             DEPARTMENT OF AGRICULTURE                               individuals or entities submitting                    assessment rate as issued herein will be
                                                                                                     comments will be made public on the                   applicable to all assessable pistachios
                                             Agricultural Marketing Service                          internet at the address provided above.               beginning September 1, 2017, and
                                                                                                     FOR FURTHER INFORMATION CONTACT:                      continue until amended, suspended, or
                                             7 CFR Part 983                                                                                                terminated.
                                                                                                     Peter R. Sommers, Marketing Specialist,
                                             [Docket No. AMS–SC–17–0048; SC17–983–                   or Jeffrey Smutny, Regional Director,                   The Act provides that administrative
                                             2 IR]                                                                                                         proceedings must be exhausted before
                                                                                                     California Marketing Field Office,
                                                                                                     Marketing Order and Agreement                         parties may file suit in court. Under
                                             Pistachios Grown in California,                                                                               section 608c(15)(A) of the Act, any
                                             Arizona, and New Mexico; Decreased                      Division, Specialty Crops Program,
                                                                                                     AMS, USDA; Telephone: (559) 487–                      handler subject to an order may file
                                             Assessment Rate                                                                                               with USDA a petition stating that the
                                                                                                     5901, Fax: (559) 487–5906, or Email:
                                             AGENCY:  Agricultural Marketing Service,                PeterR.Sommers@ams.usda.gov or                        order, any provision of the order, or any
                                             USDA.                                                   Jeffrey.Smutny@ams.usda.gov.                          obligation imposed in connection with
                                             ACTION: Interim rule with request for                      Small businesses may request                       the order is not in accordance with law
                                             comments.                                               information on complying with this                    and request a modification of the order
                                                                                                     regulation by contacting Richard Lower,               or to be exempted therefrom. Such
                                             SUMMARY:   This rule implements a                                                                             handler is afforded the opportunity for
                                             recommendation from the                                 Marketing Order and Agreement
                                                                                                     Division, Specialty Crops Program,                    a hearing on the petition. After the
                                             Administrative Committee for                                                                                  hearing, USDA would rule on the
                                             Pistachios (Committee) for a decrease in                AMS, USDA, 1400 Independence
                                                                                                     Avenue SW., STOP 0237, Washington,                    petition. The Act provides that the
                                             the assessment rate established for the                                                                       district court of the United States in any
                                             2017–18 and subsequent production                       DC 20250–0237; Telephone: (202) 720–
                                                                                                     2491, Fax: (202) 720–8938, or Email:                  district in which the handler is an
                                             years from $0.0010 to $0.0001 per                                                                             inhabitant, or has his or her principal
                                             pound of assessed weight pistachios                     Richard.Lower@ams.usda.gov.
                                                                                                                                                           place of business, has jurisdiction to
                                             handled under the marketing order                       SUPPLEMENTARY INFORMATION: This rule                  review USDA’s ruling on the petition,
                                             (order). The Committee locally                          is issued under Marketing Agreement                   provided an action is filed not later than
                                             administers the order and is comprised                  and Order No. 983, both as amended (7                 20 days after the date of the entry of the
                                             of producers and handlers of pistachios                 CFR part 983), regulating the handling                ruling.
                                             operating within the area of production,                of pistachios grown in California,                      This rule decreases the assessment
                                             and a public member. Assessments                        Arizona, and New Mexico, hereinafter                  rate established for the Committee for
                                             upon pistachio handlers are used by the                 referred to as the ‘‘order.’’ The order is            the 2017–18 and subsequent production
                                             Committee to fund reasonable and                        effective under the Agricultural                      years from $0.0010 to $0.0001 per
                                             necessary expenses of the program. The                  Marketing Agreement Act of 1937, as                   pound of assessed weight pistachios.
                                             production year begins September 1 and                  amended (7 U.S.C. 601–674), hereinafter                 The order provides authority for the
                                             ends August 31. The assessment rate                     referred to as the ‘‘Act.’’                           Committee, with the approval of USDA,
                                             will remain in effect indefinitely unless                  The Department of Agriculture                      to formulate an annual budget of
                                             modified, suspended, or terminated.                     (USDA) is issuing this rule in                        expenses and collect assessments from
                                             DATES: Effective October 24, 2017.                      conformance with Executive Orders                     handlers to administer the program. The
                                             Comments received by December 26,                       13563 and 13175.                                      members of the Committee are
                                             2017, will be considered prior to                          This rule does not meet the definition             producers and handlers of California,
                                             issuance of a final rule.                               of a significant regulatory action                    Arizona, and New Mexico pistachios.
                                             ADDRESSES: Interested persons are                       contained in section 3(f) of Executive                The Committee also has a public
                                             invited to submit written comments                      Order 12866 and is not subject to review              member and an alternate public member
                                             concerning this rule. Comments must be                  by the Office of Management and                       who have no proprietary involvement
                                             sent to the Docket Clerk, Marketing                     Budget (OMB). Additionally, because                   with the industry. The producers and
pmangrum on DSK3GDR082PROD with RULES




                                             Order and Agreement Division,                           this rule does not meet the definition of             handlers are familiar with the
                                             Specialty Crops Program, AMS, USDA,                     a significant regulatory action, it does              Committee’s needs and with the costs
                                             1400 Independence Avenue SW., STOP                      not trigger the requirements contained                for goods and services in their local area
                                             0237, Washington, DC 20250–0237; Fax:                   in Executive Order 13771. See OMB’s                   and are thus in a position to formulate
                                             (202) 720–8938; or internet: http://                    Memorandum titled ‘‘Interim Guidance                  an appropriate budget and assessment
                                             www.regulations.gov. Comments should                    Implementing Section 2 of the Executive               rate. The assessment rate is formulated
                                             reference the docket number and the                     Order of January 30, 2017, titled                     and discussed in a public meeting.


                                        VerDate Sep<11>2014   15:12 Oct 23, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\24OCR1.SGM   24OCR1


                                             49088            Federal Register / Vol. 82, No. 204 / Tuesday, October 24, 2017 / Rules and Regulations

                                             Thus, all directly affected persons have                recommend a budget of expenses and                    acre of pistachios could return $6,300.
                                             an opportunity to participate and                       consider recommendations for                          In order for a producer to have $750,000
                                             provide input.                                          modification of the assessment rate. The              in annual receipts, the producer would
                                                For the 2016–17 and subsequent                       dates and times of Committee meetings                 have to have at least 119 acres. Thus,
                                             production years, the Committee                         are available from the Committee or                   the majority of handlers and producers
                                             recommended, and USDA approved, an                      USDA. Committee meetings are open to                  in the production area may be classified
                                             assessment rate that would continue in                  the public and interested persons may                 as small entities.
                                             effect from production year to                          express their views at these meetings.                   This rule decreases the assessment
                                             production year unless modified,                        USDA will evaluate Committee                          rate established for the Committee and
                                             suspended, or terminated by USDA                        recommendations and other available                   collected from handlers for the 2017–18
                                             upon recommendation and information                     information to determine whether                      and subsequent production years from
                                             submitted by the Committee or other                     modification of the assessment rate is                $0.0010 to $0.0001 per pound of
                                             information available to USDA.                          needed. Further rulemaking will be                    pistachios handled. The Committee
                                                The Committee met on July 10, 2017,                  undertaken as necessary. The                          unanimously recommended 2017–18
                                             and unanimously recommended 2017–                       Committee’s 2017–18 production year                   expenditures of $672,900, and
                                             18 expenditures of $672,900, and met                    budget and those for subsequent                       recommended an assessment rate of
                                             again on August 1, 2017, to deliberate                  production years will be reviewed and,                $0.0001 per pound of assessed weight
                                             and recommend the 2017–18                               as appropriate, approved by USDA.                     pistachios, by majority vote. The new
                                             assessment rate. At that time, the                                                                            assessment rate is $0.0009 lower than
                                             Committee recommended an assessment                     Initial Regulatory Flexibility Analysis               the rate currently in effect. The quantity
                                             rate of $0.0001 per pound of assessed                      Pursuant to requirements set forth in              of assessable pistachios for the 2017–18
                                             weight pistachios by majority vote. In                  the Regulatory Flexibility Act (RFA) (5               production year is estimated at 550
                                             comparison, last year’s budgeted                        U.S.C. 601–612), the Agricultural                     million pounds. Thus, the $0.0001 rate
                                             expenditures were $922,500, and the                     Marketing Service (AMS) has                           should provide $55,000 in assessment
                                             assessment rate was $0.0010 per pound                   considered the economic impact of this                income. Income derived from handler’s
                                             of pistachios. The assessment rate of                   rule on small entities. Accordingly,                  assessments, along with interest income,
                                             $0.0001 is $0.0009 lower than the rate                  AMS has prepared this initial regulatory              CPRB management income, and funds
                                             currently in effect.                                    flexibility analysis.                                 from the Committee’s authorized
                                                The major expenditures                                  The purpose of the RFA is to fit                   reserve, will be adequate to cover
                                             recommended by the Committee for the                    regulatory actions to the scale of                    expenses for the 2017–18 production
                                             2017–18 production year include                         businesses subject to such actions in                 year.
                                             $351,000 for salaries and benefits,                     order that small businesses will not be                  The major expenditures
                                             $125,000 for research, and $80,400 for                  unduly or disproportionately burdened.                recommended by the Committee for the
                                             general and administrative expenses.                    Marketing orders issued pursuant to the               2017–18 production year include
                                             Budgeted expenses for these items in                    Act, and the rules issued thereunder, are             $351,000 for salaries and benefits,
                                             the 2016–17 production year were                        unique in that they are brought about                 $125,000 for research, and $80,400 for
                                             $351,000, $375,000, and $80,000,                        through group action of essentially                   general and administrative expenses.
                                             respectively.                                           small entities acting on their own                    Budgeted expenses for these items in
                                                The assessment rate recommended by                   behalf.                                               the 2016–17 production year were
                                             the Committee was derived by dividing                      There are 18 handlers subject to                   $351,000, $375,000, and $80,000,
                                             anticipated expenses by expected                        regulation under the order and                        respectively.
                                             shipments of California, Arizona, and                   approximately 1,236 producers of                         The assessment rate decrease is
                                             New Mexico pistachios. Pistachio                        pistachios in the production area. The                necessary to ensure the Committee’s
                                             shipments for the production year are                   Small Business Administration defines                 financial reserve remains within the
                                             estimated at 550 million pounds which                   small agricultural service firms as those             limit specified under the order.
                                             should provide $55,000 in assessment                    whose annual receipts are less than                      In addition, the Committee had
                                             income. Income derived from handler                     $7,500,000 and small agricultural                     funded research pertaining to Sterile
                                             assessments, along with interest income,                producers as those having annual                      Insect Technology (SIT) for Navel
                                             California Pistachio Research Board                     receipts less than $750,000 (13 CFR                   Orangeworm control during the 2016–
                                             (CPRB) management income, and funds                     121.201).                                             2017 production year. Beginning with
                                             from the Committee’s authorized                            Based on Committee data, it is                     the 2017–18 production year, the CPRB
                                             reserve, will be adequate to cover                      estimated that about 50 percent of the                will fully fund the SIT research,
                                             budgeted expenses. Funds in the reserve                 handlers annually ship less than                      removing that financial burden from the
                                             will be kept within the maximum limit                   $7,500,000 worth of pistachios. Nine of               committee. For this reason, the
                                             permitted by the order, which is                        the 18 (50 percent) regulated handlers                Committee recommended decreasing
                                             approximately two production years’                     received enough pistachios at an                      the assessment rate from $0.0010 to
                                             budgeted expenses as stated in                          average price of $2.50 per pound to be                $0.0001, by majority vote. The income
                                             § 983.74(a)(2).                                         considered large handlers, leaving the                generated from the lower assessment
                                                The assessment rate established in                   percentage of small handlers at 50                    rate combined with interest income,
                                             this rule will continue in effect                       percent.                                              CPRB management income, and funds
                                             indefinitely unless modified,                              The National Agricultural Statistics               from the financial reserve should
                                             suspended, or terminated by USDA                        Service (NASS) 2012 data on pistachio                 provide sufficient income to cover
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                                             upon recommendation and information                     farm size indicates that there were 1,305             anticipated 2017–18 expenses and
                                             submitted by the Committee or other                     pistachio farms, of which 945, or 72                  maintain the financial reserve within
                                             available information.                                  percent, were less than 100 acres. NASS               the limit specified under the order.
                                                Although this assessment rate is                     2016 annual production data indicates                    Prior to arriving at this budget and
                                             effective for an indefinite period, the                 that the per-acre production of                       assessment rate, the Committee
                                             Committee will continue to meet prior                   pistachios was 3,750 pounds. At an                    considered information from various
                                             to or during each production year to                    average value of $1.68 per pound, each                sources. Alternative expenditure levels


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                                                              Federal Register / Vol. 82, No. 204 / Tuesday, October 24, 2017 / Rules and Regulations                                             49089

                                             were discussed, based upon the relative                 periodically reviewed to reduce                       §§ 983.1 through 983.92     [Designated as
                                             value of various activities to the                      information requirements and                          Subpart A]
                                             pistachio industry. The Committee                       duplication by industry and public                    ■ 2. Designate §§ 983.1 through 983.92
                                             ultimately determined that the 2017–18                  sector agencies.                                      as subpart A and add a heading for
                                             production year expenses of $672,900                       AMS is committed to complying with                 subpart A to read as follows:
                                             were prudent, and the assessment                        the E-Government Act, to promote the
                                             income provided by the reduced rate,                    use of the internet and other                         Subpart A—Order Regulating Handling
                                             interest income, CPRB management                        information technologies to provide                     [Subpart Redesignated as Subpart B
                                             income, and funds from the financial                    increased opportunities for citizen                   and Amended]
                                             reserve, would permit the Committee to                  access to Government information and
                                             meet its expenses, while not adding to                                                                        ■ 3. Redesignate ‘‘Subpart—Rules and
                                                                                                     services, and for other purposes.                     Regulations’’ as subpart B and revise the
                                             the financial reserve.                                     USDA has not identified any relevant
                                                According to data from NASS, the                                                                           heading to read as follows:
                                                                                                     Federal rules that duplicate, overlap, or
                                             season average producer price was $3.29
                                                                                                     conflict with this rule.                              Subpart B—Administrative
                                             per pound of assessed weight pistachios
                                             in 2015 and $1.68 per pound in 2016.                       A small business guide on complying                Requirements
                                             A review of historical and preliminary                  with fruit, vegetable, and specialty crop
                                                                                                                                                             [Subpart Redesignated as Subpart C]
                                             information pertaining to the upcoming                  marketing agreements and orders may
                                                                                                     be viewed at: http://www.ams.usda.gov/                ■ 4. Redesignate ‘‘Subpart—Assessment
                                             production year indicates that the                                                                            Rate’’ as subpart C.
                                             producer revenue for the 2017–18                        rules-regulations/moa/small-businesses.
                                                                                                     Any questions about the compliance                    ■ 5. Section 983.253 is revised to read
                                             production year could range between                                                                           as follows:
                                             $924,000,000 and $1,809,500,000.                        guide should be sent to Richard Lower
                                             Therefore, the estimated assessment                     at the previously mentioned address in                § 983.253   Assessment rate.
                                             revenue for the 2017–18 production                      the FOR FURTHER INFORMATION CONTACT
                                                                                                                                                             On and after September 1, 2017, an
                                             year as a percentage of total producer                  section.
                                                                                                                                                           assessment rate of $0.0001 per pound is
                                             revenue could range between 0.00003                        After consideration of all relevant                established for California, Arizona, and
                                             and 0.00006 percent.                                    material presented, including the                     New Mexico pistachios.
                                                This action decreases the assessment                 information and recommendation
                                             obligation imposed on handlers.                         submitted by the Committee and other                    Dated: October 16, 2017.
                                             Assessments are applied uniformly on                    available information, it is hereby found             Bruce Summers,
                                             all handlers, and some of the costs may                 that this rule, as hereinafter set forth,             Acting Administrator, Agricultural Marketing
                                             be passed on to producers. However,                     will tend to effectuate the declared                  Service.
                                             decreasing the assessment rate reduces                  policy of the Act.                                    [FR Doc. 2017–22711 Filed 10–23–17; 8:45 am]
                                             the burden on handlers, and may reduce                     Pursuant to 5 U.S.C. 553, it is also               BILLING CODE 3410–02–P
                                             the burden on producers. Additionally,                  found and determined that good cause
                                             the Committee’s meetings were widely                    exists for not postponing the effective
                                             publicized throughout the California,                   date of this rule until 30 days after                 DEPARTMENT OF THE TREASURY
                                             Arizona, and New Mexico pistachio                       publication in the Federal Register
                                             industry, and all interested persons                    because handlers are aware of this rule,              Office of the Comptroller of the
                                             were invited to attend the meetings and                 which was recommended at a public                     Currency
                                             encouraged to participate in Committee                  meeting. This interim rule provides for
                                             deliberations on all issues. Like all                   a 60-day comment period, and all                      12 CFR Part 34
                                             Committee meetings, the July 10, 2017,                  comments timely received will be                      [Docket No. OCC–2017–0024]
                                             and August 1, 2017, meetings were                       considered prior to finalization of this
                                             public meetings and all entities, both                  rule. The decreased assessment rate is                FEDERAL RESERVE SYSTEM
                                             large and small, were able to express                   necessary to fund reasonable and
                                             views on this issue. Finally, interested                necessary expenses of the program,                    12 CFR Part 225
                                             persons are invited to submit comments                  while keeping the funds in the reserve
                                             on this interim rule, including the                                                                           [Docket No. OP–1577]
                                                                                                     within the maximum limit permitted by
                                             regulatory and informational impacts of                 the order. Moreover, the decreased                    FEDERAL DEPOSIT INSURANCE
                                             this action on small businesses.                        assessment rate reduces the economic
                                                In accordance with the Paperwork                                                                           CORPORATION
                                                                                                     burden on handlers.
                                             Reduction Act of 1995 (44 U.S.C.
                                             Chapter 35), the order’s information                    List of Subjects in 7 CFR Part 983                    12 CFR Part 323
                                             collection requirements have been
                                                                                                       Marketing agreements, Pistachios,                   NATIONAL CREDIT UNION
                                             previously approved by OMB and
                                                                                                     Reporting and recordkeeping                           ADMINISTRATION
                                             assigned OMB No. 0581–0215,
                                                                                                     requirements.
                                             ‘‘Vegetable and Specialty Crop
                                             Marketing Orders.’’ No changes in those                   For the reasons set forth in the                    12 CFR Part 722
                                             requirements as a result of this action                 preamble, 7 CFR part 983 is amended as
                                                                                                                                                           Temporary Exceptions to the Financial
                                             are necessary. Should any changes                       follows:
                                                                                                                                                           Institutions Reform, Recovery, and
                                             become necessary, they would be
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                                                                                                     PART 983—PISTACHIOS GROWN IN                          Enforcement Act of 1989 (FIRREA)
                                             submitted to OMB for approval.                                                                                Appraisal Requirements in Areas
                                                This action imposes no additional                    CALIFORNIA, ARIZONA, AND NEW
                                                                                                     MEXICO                                                Affected by Severe Storms and
                                             reporting or recordkeeping requirements
                                                                                                                                                           Flooding Related to Hurricanes
                                             on either small or large California,
                                                                                                     ■ 1. The authority citation for 7 CFR                 Harvey, Irma, and Maria
                                             Arizona, and New Mexico pistachio
                                             handlers. As with all Federal marketing                 part 983 continues to read as follows:                AGENCY: Office of the Comptroller of the
                                             order programs, reports and forms are                       Authority: 7 U.S.C. 601–674.                      Currency, Treasury (OCC); Board of


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Document Created: 2018-10-25 10:11:12
Document Modified: 2018-10-25 10:11:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim rule with request for comments.
DatesEffective October 24, 2017. Comments received by December 26, 2017, will be considered prior to issuance of a final rule.
ContactPeter R. Sommers, Marketing Specialist, or Jeffrey Smutny, Regional Director, 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 Citation82 FR 49087 
CFR AssociatedMarketing Agreements; Pistachios and Reporting and Recordkeeping Requirements

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