82 FR 56151 - Walnuts Grown in California; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 227 (November 28, 2017)

Page Range		56151-56152
FR Document		2017-25736

The Department of Agriculture (USDA) is adopting, as a final rule, without change, an interim rule that implemented a recommendation from the California Walnut Board (Board) to decrease the assessment rate established for the 2017-18 and subsequent marketing years from $0.0465 to $0.0400 per kernelweight pound of assessable walnuts. The Board is comprised of growers and handlers of walnuts and locally administers the Marketing Order that regulates the handling of walnuts grown in California. The Board also has a public member who has no financial interest in walnut production or handling.

Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)

[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]
[Rules and Regulations]
[Pages 56151-56152]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-25736]



========================================================================
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. 227 / Tuesday, November 28, 2017 / 
Rules and Regulations

[[Page 56151]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Doc. No. AMS-SC-17-0035; SC17-984-1 FIR]


Walnuts Grown in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that implemented a recommendation 
from the California Walnut Board (Board) to decrease the assessment 
rate established for the 2017-18 and subsequent marketing years from 
$0.0465 to $0.0400 per kernelweight pound of assessable walnuts. The 
Board is comprised of growers and handlers of walnuts and locally 
administers the Marketing Order that regulates the handling of walnuts 
grown in California. The Board also has a public member who has no 
financial interest in walnut production or handling.

DATES: Effective November 29, 2017.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior 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 obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/rules-regulations/moa/small-businesses; or by contacting Richard Lower, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 984, as amended (7 CFR part 984), regulating the handling of 
walnuts grown in California, 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 falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
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' '' (February 2, 2017).
    Under the Order, California walnut handlers are subject to 
assessments, which provide funds to administer the Order. Assessment 
rates issued under the Order are intended to be applicable to all 
assessable California walnuts for the entire marketing year and 
continue indefinitely until amended, suspended, or terminated. The 
Board's marketing year began on September 1 and ends on August 31.
    In an interim rule published in the Federal Register on July 21, 
2017, and effective July 24, 2017, (82 FR 33775), Sec.  984.347 was 
amended by decreasing the assessment rate established for California 
walnuts for the 2017-18 and subsequent marketing years from $0.0465 to 
$0.0400 per hundredweight pound of assessable walnuts. The decrease was 
recommended by the Board because the 2017-18 crop is expected to be 
615,000 tons, which is 62,000 tons larger than the 2016-17 crop. At 
that crop level, handler assessments, combined with funds from the 
financial reserve, should provide adequate funds to administer the 
program.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 4,700 growers of California walnuts in the 
production area and approximately 90 handlers subject to regulation 
under the Marketing Order. The Small Business Administration (SBA) 
defines small agricultural growers as those having annual receipts of 
less than $750,000 and small agricultural service firms as those whose 
annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to USDA's National Agricultural Statistics Service's 
(NASS) 2012 Census of Agriculture, approximately 86 percent of 
California's walnut farms were smaller than 100 acres. Further, NASS 
reports that the average yield for 2015 was 2.01 tons per acre, and the 
average price received for 2015 was $1,620 per ton. A 100-acre farm 
with an average yield of 2.01 tons per acre would, therefore, have been 
expected to produce about 201 tons of walnuts. At $1,620 per ton, that 
farm's production would have had an approximate value of $325,620. This 
is well below the SBA threshold of $750,000; thus, it can be concluded 
that the majority of California's walnut growers are considered small 
growers according to SBA's definition.
    According to information supplied by the industry, approximately 
two-thirds of California's walnut handlers shipped merchantable walnuts 
valued under $7,500,000 during the 2016-17 marketing year and would, 
therefore, be considered small handlers according to the SBA 
definition.

[[Page 56152]]

    This rule continues in effect the action that decreased the 
assessment rate collected from handlers for the 2017-18 and subsequent 
marketing years from $0.0465 to $0.0400 per kernelweight pound of 
assessable walnuts. The Board unanimously recommended 2017-18 
expenditures of $24,140,000 and an assessment rate of $0.0400 per 
kernelweight pound of assessable walnuts, which is $0.0065 lower than 
the assessment rate previously in effect. The quantity of assessable 
walnuts for the 2017-18 marketing year is estimated to be 615,000 tons, 
62,000 tons greater than the quantity estimated for the 2016-17 
marketing year. Therefore, even at the reduced assessment rate, the 
Board should collect approximately $22,140,000 in assessment income, 
which, when combined with $2,000,000 from its reserves, should be 
adequate to cover its budgeted expenses.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
growers. However, decreasing the assessment rate reduces the burden on 
handlers, and may reduce the burden on growers.
    In addition, the Board's meeting was widely publicized throughout 
the California walnut industry, and all interested persons were invited 
to attend the meeting and encouraged to participate in Board 
deliberations on all issues. Like all Board meetings, the May 31, 2017, 
meeting was a public meeting, and all entities, both large and small, 
were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously reviewed 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 action imposes no additional reporting or recordkeeping 
requirements on either small or large California walnut handlers. As 
with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before September 19, 2017. No comments were received.
    Therefore, for the reasons given in the interim rule, we are 
adopting the interim rule as a final rule, without change.
    To view the interim rule, go to: https://www.regulations.gov/docket?D=AMS-SC-17-0035.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, 13563, and 13771; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Government 
Act (44 U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (82 FR 33775, July 21, 2017) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 984

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

PART 984--WALNUTS GROWN IN CALIFORNIA

0
Accordingly, the interim rule amending 7 CFR part 984, which was 
published at 82 FR 33775 on July 21, 2017, is adopted as a final rule, 
without change.

    Dated: November 22, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-25736 Filed 11-27-17; 8:45 am]
 BILLING CODE 3410-02-P

56151

Rules and Regulations Federal Register
Vol. 82, No. 227

Tuesday, November 28, 2017

This section of the FEDERAL REGISTER Order and Agreement Division, adequate funds to administer the
contains regulatory documents having general Specialty Crops Program, AMS, USDA, program.
applicability and legal effect, most of which 1400 Independence Avenue SW., STOP
are keyed to and codified in the Code of Final Regulatory Flexibility Analysis
0237, Washington, DC 20250–0237;
Federal Regulations, which is published under Telephone: (202) 720–2491, Fax: (202) Pursuant to requirements set forth in
50 titles pursuant to 44 U.S.C. 1510.
720–8938, or Email: Richard.Lower@ the Regulatory Flexibility Act (RFA) (5
The Code of Federal Regulations is sold by ams.usda.gov. U.S.C. 601–612), the Agricultural
the Superintendent of Documents. Marketing Service (AMS) has
SUPPLEMENTARY INFORMATION: This rule considered the economic impact of this
is issued under Marketing Order No. action on small entities. Accordingly,
DEPARTMENT OF AGRICULTURE 984, as amended (7 CFR part 984), AMS has prepared this final regulatory
regulating the handling of walnuts flexibility analysis.
Agricultural Marketing Service grown in California, hereinafter referred The purpose of the RFA is to fit
to as the ‘‘Order.’’ The Order is effective regulatory actions to the scale of
7 CFR Part 984 under the Agricultural Marketing businesses subject to such actions in
Agreement Act of 1937, as amended (7 order that small businesses will not be
[Doc. No. AMS–SC–17–0035; SC17–984–1 U.S.C. 601–674), hereinafter referred to
FIR] unduly or disproportionately burdened.
as the ‘‘Act.’’ Marketing orders issued pursuant to the
Walnuts Grown in California; The Department of Agriculture Act, and the rules issued thereunder, are
Decreased Assessment Rate (USDA) is issuing this rule in unique in that they are brought about
conformance with Executive Orders through group action of essentially
AGENCY: Agricultural Marketing Service, 13563 and 13175. This rule falls within small entities acting on their own
USDA. a category of regulatory actions that the behalf.
ACTION: Affirmation of interim rule as Office of Management and Budget There are approximately 4,700
final rule. (OMB) exempted from Executive Order growers of California walnuts in the
12866 review. Additionally, because production area and approximately 90
SUMMARY: The Department of this rule does not meet the definition of
Agriculture (USDA) is adopting, as a handlers subject to regulation under the
a significant regulatory action, it does Marketing Order. The Small Business
final rule, without change, an interim not trigger the requirements contained
rule that implemented a Administration (SBA) defines small
in Executive Order 13771. See OMB’s agricultural growers as those having
recommendation from the California Memorandum titled ‘‘Interim Guidance
Walnut Board (Board) to decrease the annual receipts of less than $750,000
Implementing Section 2 of the Executive and small agricultural service firms as
assessment rate established for the Order of January 30, 2017, titled
2017–18 and subsequent marketing those whose annual receipts are less
‘Reducing Regulation and Controlling than $7,500,000 (13 CFR 121.201).
years from $0.0465 to $0.0400 per Regulatory Costs’ ’’ (February 2, 2017).
kernelweight pound of assessable According to USDA’s National
Under the Order, California walnut Agricultural Statistics Service’s (NASS)
walnuts. The Board is comprised of handlers are subject to assessments,
growers and handlers of walnuts and 2012 Census of Agriculture,
which provide funds to administer the approximately 86 percent of California’s
locally administers the Marketing Order Order. Assessment rates issued under
that regulates the handling of walnuts walnut farms were smaller than 100
the Order are intended to be applicable acres. Further, NASS reports that the
grown in California. The Board also has to all assessable California walnuts for
a public member who has no financial average yield for 2015 was 2.01 tons per
the entire marketing year and continue acre, and the average price received for
interest in walnut production or indefinitely until amended, suspended,
handling. 2015 was $1,620 per ton. A 100-acre
or terminated. The Board’s marketing farm with an average yield of 2.01 tons
DATES: Effective November 29, 2017. year began on September 1 and ends on per acre would, therefore, have been
FOR FURTHER INFORMATION CONTACT: August 31. expected to produce about 201 tons of
Terry Vawter, Senior Marketing In an interim rule published in the walnuts. At $1,620 per ton, that farm’s
Specialist, or Jeffrey Smutny, Regional Federal Register on July 21, 2017, and production would have had an
Director, California Marketing Field effective July 24, 2017, (82 FR 33775), approximate value of $325,620. This is
Office, Marketing Order and Agreement § 984.347 was amended by decreasing well below the SBA threshold of
Division, Specialty Crops Program, the assessment rate established for $750,000; thus, it can be concluded that
AMS, USDA; Telephone: (559) 487– California walnuts for the 2017–18 and the majority of California’s walnut
5901, Fax: (559) 487–5906, or Email: subsequent marketing years from growers are considered small growers
Terry.Vawter@ams.usda.gov or $0.0465 to $0.0400 per hundredweight according to SBA’s definition.
Jeffrey.Smutny@ams.usda.gov. pound of assessable walnuts. The According to information supplied by
jstallworth on DSKBBY8HB2PROD with RULES

Small businesses may obtain decrease was recommended by the the industry, approximately two-thirds
information on complying with this and Board because the 2017–18 crop is of California’s walnut handlers shipped
other marketing order regulations by expected to be 615,000 tons, which is merchantable walnuts valued under
viewing a guide at the following Web 62,000 tons larger than the 2016–17 $7,500,000 during the 2016–17
site: http://www.ams.usda.gov/rules- crop. At that crop level, handler marketing year and would, therefore, be
regulations/moa/small-businesses; or by assessments, combined with funds from considered small handlers according to
contacting Richard Lower, Marketing the financial reserve, should provide the SBA definition.

VerDate Sep<11>2014 15:23 Nov 27, 2017 Jkt 244001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\28NOR1.SGM 28NOR1

56152 Federal Register / Vol. 82, No. 227 / Tuesday, November 28, 2017 / Rules and Regulations

This rule continues in effect the September 19, 2017. No comments were Pecan Council (Council) to establish
action that decreased the assessment received. reporting requirements under the
rate collected from handlers for the Therefore, for the reasons given in the Federal marketing order for pecans
2017–18 and subsequent marketing interim rule, we are adopting the (Order). The Council locally administers
years from $0.0465 to $0.0400 per interim rule as a final rule, without the Order and is comprised of growers
kernelweight pound of assessable change. and handlers of pecans operating within
walnuts. The Board unanimously To view the interim rule, go to: the production area and one public
recommended 2017–18 expenditures of https://www.regulations.gov/ member. This action requires all pecan
$24,140,000 and an assessment rate of docket?D=AMS-SC-17-0035. handlers to submit two forms to the
$0.0400 per kernelweight pound of This action also affirms information Council: one for inter-handler transfers
assessable walnuts, which is $0.0065 contained in the interim rule concerning and another that includes year-end
lower than the assessment rate Executive Orders 12866, 12988, 13175, inventory and pecans handled
previously in effect. The quantity of 13563, and 13771; the Paperwork throughout the year. The Council will
assessable walnuts for the 2017–18 Reduction Act (44 U.S.C. Chapter 35); use this information to facilitate
marketing year is estimated to be and the E-Government Act (44 U.S.C. assessment collection and provide
615,000 tons, 62,000 tons greater than 101). valuable reports to the industry,
the quantity estimated for the 2016–17 After consideration of all relevant including the annual marketing policy
marketing year. Therefore, even at the material presented, it is found that required by the Order.
reduced assessment rate, the Board finalizing the interim rule, without DATES: Effective December 28, 2017.
should collect approximately change, as published in the Federal FOR FURTHER INFORMATION CONTACT:
$22,140,000 in assessment income, Register (82 FR 33775, July 21, 2017) Jennie M. Varela, Marketing Specialist,
which, when combined with $2,000,000 will tend to effectuate the declared or Christian D. Nissen, Regional
from its reserves, should be adequate to policy of the Act. Director, Southeast Marketing Field
cover its budgeted expenses.
List of Subjects in 7 CFR Part 984 Office, Marketing Order and Agreement
This rule continues in effect the
action that decreased the assessment Division, Specialty Crops Program,
Marketing agreements, Nuts,
obligation imposed on handlers. AMS, USDA; Telephone: (863) 324–
Reporting and recordkeeping
Assessments are applied uniformly on 3375, Fax: (863) 291–8614, or Email:
requirements, Walnuts.
all handlers, and some of the costs may Jennie.Varela@ams.usda.gov or
be passed on to growers. However, PART 984—WALNUTS GROWN IN Christian.Nissen@ams.usda.gov.
CALIFORNIA Small businesses may request
decreasing the assessment rate reduces
information on complying with this
the burden on handlers, and may reduce
■ Accordingly, the interim rule regulation by contacting Richard Lower,
the burden on growers.
In addition, the Board’s meeting was amending 7 CFR part 984, which was Marketing Order and Agreement
widely publicized throughout the published at 82 FR 33775 on July 21, Division, Specialty Crops Program,
California walnut industry, and all 2017, is adopted as a final rule, without AMS, USDA, 1400 Independence
interested persons were invited to change. Avenue SW., STOP 0237, Washington,
attend the meeting and encouraged to DC 20250–0237; Telephone: (202) 720–
Dated: November 22, 2017.
participate in Board deliberations on all 2491, Fax: (202) 720–8938, or Email:
Bruce Summers, Richard.Lower@ams.usda.gov.
issues. Like all Board meetings, the May Acting Administrator, Agricultural Marketing
31, 2017, meeting was a public meeting, SUPPLEMENTARY INFORMATION: This final
Service.
and all entities, both large and small, rule is issued under Marketing
[FR Doc. 2017–25736 Filed 11–27–17; 8:45 am]
were able to express views on this issue. Agreement and Order No. 986 (7 CFR
BILLING CODE 3410–02–P
In accordance with the Paperwork part 986) regulating the handling of
Reduction Act of 1995 (44 U.S.C. pecans grown in the states of Alabama,
Chapter 35), the Order’s information Arkansas, Arizona, California, Florida,
DEPARTMENT OF AGRICULTURE
collection requirements have been Georgia, Kansas, Louisiana, Missouri,
previously reviewed by OMB and Agricultural Marketing Service Mississippi, North Carolina, New
assigned OMB No: 0581–0178 Mexico, Oklahoma, South Carolina, and
‘‘Vegetable and Specialty Crops.’’ No 7 CFR Part 986 Texas, hereinafter referred to as the
changes in those requirements as a ‘‘Order.’’ The Order is effective under
[Doc. No. AMS–SC–17–0032, SC17–986–2 the Agricultural Marketing Agreement
result of this action are necessary.
FR] Act of 1937, as amended (7 U.S.C. 601–
Should any changes become necessary,
they would be submitted to OMB for 674), hereinafter referred to as the
Pecans Grown in the States of
approval. ‘‘Act.’’
Alabama, Arkansas, Arizona,
This action imposes no additional The Department of Agriculture
California, Florida, Georgia, Kansas,
reporting or recordkeeping requirements (USDA) is issuing this final rule in
Louisiana, Missouri, Mississippi, North
on either small or large California conformance with Executive Orders
Carolina, New Mexico, Oklahoma,
walnut handlers. As with all Federal 13563 and 13175. This action falls
South Carolina, and Texas;
marketing order programs, reports and within a category of regulatory actions
Establishment of Reporting
forms are periodically reviewed to that the Office of Management and
Requirements and New Information
reduce information requirements and Budget (OMB) exempted from Executive
Collection
jstallworth on DSKBBY8HB2PROD with RULES

duplication by industry and public Order 12866 review. Additionally,
sector agencies. AGENCY: Agricultural Marketing Service, because this rule does not meet the
USDA has not identified any relevant USDA. definition of a significant regulatory
Federal rules that duplicate, overlap, or ACTION: Final rule. action, it does not trigger the
conflict with this rule. requirements contained in Executive
Comments on the interim rule were SUMMARY:This rule implements a Order 13771. See OMB’s Memorandum
required to be received on or before recommendation made by the American titled ‘‘Interim Guidance Implementing

VerDate Sep<11>2014 15:23 Nov 27, 2017 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\28NOR1.SGM 28NOR1

Document Created: 2017-11-28 01:50:47
Document Modified: 2017-11-28 01:50:47

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Affirmation of interim rule as final rule.
Dates		Effective November 29, 2017.
Contact		Terry Vawter, Senior 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 Citation		82 FR 56151
CFR Associated		Marketing Agreements; Nuts; Reporting and Recordkeeping Requirements and Walnuts

82 FR 56151 - Walnuts Grown in California; Decreased Assessment Rate

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 82, Issue 227 (November 28, 2017)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service