83 FR 11134 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 50 (March 14, 2018)

Page Range		11134-11135
FR Document		2018-05144

The Department of Agriculture adopts as final, without change, an interim rule that implemented a recommendation from the Administrative Committee for Pistachios (Committee) to decrease the assessment rate established for the 2017-18 and subsequent production years and administrative revisions to the subpart headings to bring the language into conformance with the Office of Federal Register requirements.

Federal Register, Volume 83 Issue 50 (Wednesday, March 14, 2018)

[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Rules and Regulations]
[Pages 11134-11135]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05144]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture adopts as final, without change, 
an interim rule that implemented a recommendation from the 
Administrative Committee for Pistachios (Committee) to decrease the 
assessment rate established for the 2017-18 and subsequent production 
years and administrative revisions to the subpart headings to bring the 
language into conformance with the Office of Federal Register 
requirements.

DATES: Effective March 15, 2018.

FOR FURTHER INFORMATION CONTACT: Peter 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 and 
other marketing order regulations by viewing a guide at the following 
website: 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 action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). 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. Part 983 
(referred to as 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 Committee locally 
administers the Order and is comprised of growers and handlers of 
pistachios operating within the area of production, and a public 
member.
    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'[thinsp]'' (February 2, 2017).
    Under the Order, pistachio handlers in California, Arizona, and New 
Mexico are subject to assessments, which provide funds to administer 
the Order. Assessment rates issued under the Order are intended to be 
applicable to all assessable pistachios for the entire production year, 
and continue indefinitely until amended, suspended, or terminated. The 
Committee's

[[Page 11135]]

production year begins on September 1 and ends on August 31.
    In an interim rule published in the Federal Register on October 24, 
2017, and effective on October 24, 2017, (82 FR 49087, Doc No. AMS-SC-
17-0048; SC17-983-2 IR), Sec.  983.253 was amended by decreasing the 
assessment rate established for pistachios grown in California, 
Arizona, and New Mexico for the 2017-18 and subsequent production years 
from $0.0010 to $0.0001 per pound of assessed weight pistachios 
handled. The decreased assessment rate allows the Committee to maintain 
their financial reserve at the limit specified under the Order while 
providing adequate funding to meet program expenses.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 18 handlers subject to regulation under the order and 
approximately 1,236 producers of pistachios in the production area. 
Small agricultural service firms are defined by the Small Business 
Administration as those having annual receipts of less than $7,500,000, 
and small agricultural producers are defined as those having annual 
receipts of 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, about half the handlers and a majority of the 
producers in the production area may be classified as small entities.
    This rule continues in effect the interim rule that decreased the 
assessment rate established 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 $0.0001 
assessment rate is $0.0009 lower than the rate previously 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, California Pistachio Research 
Board (CPRB) management income, and funds from the Committee's 
authorized reserve, will be adequate to cover expenses for the 2017-18 
production year, while not adding to the financial reserve.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate reduces the burden 
on handlers, and may reduce the burden on producers.
    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.
    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.
    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 December, 26, 2017. No comments were received. Therefore, for 
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/document?D=AMS-SC-17-0048.
    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-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (82 FR 49087 October 24, 2017) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

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

0
Accordingly, the interim rule amending 7 CFR part 983, which was 
published at 82 FR 49087 on October 24, 2017, is adopted as final, 
without change.

    Dated: March 9, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-05144 Filed 3-13-18; 8:45 am]
 BILLING CODE 3410-02-P

11134 Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Rules and Regulations

Insurance Act, or who fails to comply pertaining to flexible marketing Jeffrey Smutny, Regional Director,
with a requirement of the Federal Crop allotments for sugar under section California Marketing Field Office,
Insurance Corporation, codified at 7 359h(b) of the Agricultural Adjustment Marketing Order and Agreement
U.S.C. 1515(h)(3)(A), has a maximum of Act of 1938, codified at 7 U.S.C. Division, Specialty Crops Program,
the greater of: the amount of the 1359hh(b), has a maximum of $11,390 AMS, USDA; Telephone: (559) 487–
pecuniary gain obtained as a result of for each violation. 5901, Fax: (559) 487–5906, or Email:
the false or inaccurate information or (v) Civil penalty for knowing violation PeterR.Sommers@ams.usda.gov or
the noncompliance; or $11,984. of regulations promulgated by the Jeffrey.Smutny@ams.usda.gov.
(ii) [Reserved] Secretary pertaining to cotton insect Small businesses may request
(8) Rural Housing Service. (i) Civil eradication under section 104(d) of the information on complying with this and
penalty for a violation of section 536 of Agricultural Act of 1949, codified at 7 other marketing order regulations by
Title V of the Housing Act of 1949, U.S.C. 1444a(d), has a maximum of viewing a guide at the following
codified at 42 U.S.C. 1490p(e)(2), has a $14,031 for each offense. website: http://www.ams.usda.gov/
maximum of $196,387 in the case of an (11) Office of the Secretary. (i) Civil rules-regulations/moa/small-businesses;
individual, and a maximum of penalty for making, presenting, or by contacting Richard Lower,
$1,963,870 in the case of an applicant submitting or causing to be made, Marketing Order and Agreement
other than an individual. presented or submitted, a false, Division, Specialty Crops Program,
(ii) Civil penalty for equity skimming fictitious, or fraudulent claim as defined AMS, USDA, 1400 Independence
under section 543(a) of the Housing Act under the Program Fraud Civil Avenue SW, STOP 0237, Washington,
of 1949, codified at 42 U.S.C. Remedies Act of 1986, codified at 31 DC 20250–0237; Telephone: (202) 720–
1490s(a)(2), has a maximum of $35,440. U.S.C. 3802(a)(1), has a maximum of 2491, Fax: (202) 720–8938, or Email:
(iii) Civil penalty under section 543b $11,182. Richard.Lower@ams.usda.gov.
of the Housing Act of 1949 for a (ii) Civil penalty for making,
presenting, submitting or causing to be SUPPLEMENTARY INFORMATION: This
violation of regulations or agreements
made in accordance with Title V of the made, presented or submitted, a false, action, pursuant to 5 U.S.C. 553,
Housing Act of 1949, by submitting false fictitious, or fraudulent written amends regulations issued to carry out
information, submitting false statement as defined under the Program a marketing order as defined in 7 CFR
certifications, failing to timely submit Fraud Civil Remedies Act of 1986, 900.2(j). This rule is issued under
information, failing to maintain real codified at 31 U.S.C. 3802(a)(2), has a Marketing Agreement and Order No.
property in good repair and condition, maximum of $11,182. 983, both as amended (7 CFR part 983),
failing to provide acceptable regulating the handling of pistachios
Dated: March 6, 2018.
management for a project, or failing to grown in California, Arizona, and New
Stephen Censky, Mexico. Part 983 (referred to as the
comply with applicable civil rights Deputy Secretary, U.S. Department of
statutes and regulations, codified at 42 ‘‘Order’’) is effective under the
Agriculture. Agricultural Marketing Agreement Act
U.S.C. 1490s(b)(3)(A), has a maximum [FR Doc. 2018–04832 Filed 3–13–18; 8:45 am]
of the greater of: twice the damages the of 1937, as amended (7 U.S.C. 601–674),
Department, guaranteed lender, or
BILLING CODE 3410–90–P hereinafter referred to as the ‘‘Act.’’ The
project that is secured for a loan under Committee locally administers the
Title V, suffered or would have suffered Order and is comprised of growers and
DEPARTMENT OF AGRICULTURE handlers of pistachios operating within
as a result of the violation; or $70,881
per violation. Agricultural Marketing Service the area of production, and a public
(9) [Reserved] member.
(10) Commodity Credit Corporation. 7 CFR Part 983 The Department of Agriculture
(i) Civil penalty for willful failure or (USDA) is issuing this rule in
[Docket No. AMS–SC–17–0048; SC17–983– conformance with Executive Orders
refusal to furnish information, or willful
2 FIR] 13563 and 13175. This rule falls within
furnishing of false information under of
section 156 of the Federal Agricultural a category of regulatory actions that the
Pistachios Grown in California,
Improvement and Reform Act of 1996, Office of Management and Budget
Arizona, and New Mexico; Decreased
codified at 7 U.S.C. 7272(g)(5), has a (OMB) exempted from Executive Order
Assessment Rate
maximum of $15,582 for each violation. 12866 review. Additionally, because
(ii) Civil penalty for willful failure or AGENCY: Agricultural Marketing Service, this rule does not meet the definition of
refusal to furnish information or willful USDA. a significant regulatory action, it does
furnishing of false data by a processor, ACTION: Final rule. not trigger the requirements contained
refiner, or importer of sugar, syrup and in Executive Order 13771. See OMB’s
molasses under section 156 of the SUMMARY: The Department of Memorandum titled ‘‘Interim Guidance
Federal Agriculture Improvement and Agriculture adopts as final, without Implementing Section 2 of the Executive
Reform Act of 1996, codified at 7 U.S.C. change, an interim rule that Order of January 30, 2017, titled
7272(g)(5), has a maximum of $15,582 implemented a recommendation from ‘Reducing Regulation and Controlling
for each violation. the Administrative Committee for Regulatory Costs’ ’’ (February 2, 2017).
(iii) Civil penalty for filing a false Pistachios (Committee) to decrease the Under the Order, pistachio handlers
acreage report that exceeds tolerance assessment rate established for the in California, Arizona, and New Mexico
under section 156 of the Federal 2017–18 and subsequent production are subject to assessments, which
years and administrative revisions to the provide funds to administer the Order.
daltland on DSKBBV9HB2PROD with RULES

Agriculture Improvement and Reform
Act of 1996, codified at 7 U.S.C. subpart headings to bring the language Assessment rates issued under the
7272(g)(5), has a maximum of $15,582 into conformance with the Office of Order are intended to be applicable to
for each violation. Federal Register requirements. all assessable pistachios for the entire
(iv) Civil penalty for knowingly DATES: Effective March 15, 2018. production year, and continue
violating any regulation of the Secretary FOR FURTHER INFORMATION CONTACT: indefinitely until amended, suspended,
of the Commodity Credit Corporation Peter Sommers, Marketing Specialist, or or terminated. The Committee’s

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Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Rules and Regulations 11135

production year begins on September 1 average value of $1.68 per pound, each This action imposes no additional
and ends on August 31. acre of pistachios could return $6,300. reporting or recordkeeping requirements
In an interim rule published in the In order for a producer to have $750,000 on either small or large California,
Federal Register on October 24, 2017, in annual receipts, the producer would Arizona, and New Mexico pistachio
and effective on October 24, 2017, (82 have to have at least 119 acres. Thus, handlers. As with all Federal marketing
FR 49087, Doc No. AMS–SC–17–0048; about half the handlers and a majority order programs, reports and forms are
SC17–983–2 IR), § 983.253 was of the producers in the production area periodically reviewed to reduce
amended by decreasing the assessment may be classified as small entities. information requirements and
rate established for pistachios grown in This rule continues in effect the duplication by industry and public
California, Arizona, and New Mexico for interim rule that decreased the sector agencies.
the 2017–18 and subsequent production assessment rate established and
years from $0.0010 to $0.0001 per collected from handlers for the 2017–18 USDA has not identified any relevant
pound of assessed weight pistachios and subsequent production years from Federal rules that duplicate, overlap, or
handled. The decreased assessment rate $0.0010 to $0.0001 per pound of conflict with this rule.
allows the Committee to maintain their pistachios handled. The Committee Comments on the interim rule were
financial reserve at the limit specified unanimously recommended 2017–18 required to be received on or before
under the Order while providing expenditures of $672,900, and December, 26, 2017. No comments were
adequate funding to meet program recommended an assessment rate of received. Therefore, for reasons given in
expenses. $0.0001 per pound of assessed weight the interim rule, we are adopting the
Final Regulatory Flexibility Analysis pistachios, by majority vote. The interim rule as a final rule, without
$0.0001 assessment rate is $0.0009 change.
Pursuant to requirements set forth in
lower than the rate previously in effect.
the Regulatory Flexibility Act (RFA) (5 To view the interim rule, go to:
The quantity of assessable pistachios for
U.S.C. 601–612), the Agricultural https://www.regulations.gov/
the 2017–18 production year is
Marketing Service (AMS) has document?D=AMS-SC-17-0048.
estimated at 550 million pounds. Thus,
considered the economic impact of this
the $0.0001 rate should provide $55,000 This action also affirms information
rule on small entities. Accordingly,
in assessment income. Income derived contained in the interim rule concerning
AMS has prepared this final regulatory
from handler’s assessments, along with Executive Orders 12866, 12988, 13175,
flexibility analysis.
The purpose of the RFA is to fit interest income, California Pistachio 13563, and 13771; the Paperwork
regulatory actions to the scale of Research Board (CPRB) management Reduction Act (44 U.S.C. Chapter 35);
businesses subject to such actions in income, and funds from the and the E-Gov Act (44 U.S.C. 101).
order that small businesses will not be Committee’s authorized reserve, will be
After consideration of all relevant
unduly or disproportionately burdened. adequate to cover expenses for the
2017–18 production year, while not material presented, it is found that
Marketing orders issued pursuant to the finalizing the interim rule, without
Act, and the rules issued thereunder, are adding to the financial reserve.
This rule continues in effect the change, as published in the Federal
unique in that they are brought about Register (82 FR 49087 October 24, 2017)
through group action of essentially action that decreased the assessment
obligation imposed on handlers. will tend to effectuate the declared
small entities acting on their own policy of the Act.
behalf. Assessments are applied uniformly on
There are 18 handlers subject to all handlers, and some of the costs may List of Subjects in 7 CFR Part 983
regulation under the order and be passed on to producers. However,
approximately 1,236 producers of decreasing the assessment rate reduces Marketing agreements, Pistachios,
pistachios in the production area. Small the burden on handlers, and may reduce Reporting and recordkeeping
agricultural service firms are defined by the burden on producers. requirements.
the Small Business Administration as Additionally, the Committee’s
those having annual receipts of less than meetings were widely publicized PART 983—PISTACHIOS GROWN IN
$7,500,000, and small agricultural throughout the California, Arizona, and CALIFORNIA, ARIZONA, AND NEW
producers are defined as those having New Mexico pistachio industry, and all MEXICO
annual receipts of less than $750,000 interested persons were invited to
(13 CFR 121.201). attend the meetings and encouraged to ■ Accordingly, the interim rule
Based on Committee data, it is participate in Committee deliberations amending 7 CFR part 983, which was
estimated that about 50 percent of the on all issues. Like all Committee published at 82 FR 49087 on October
handlers annually ship less than meetings, the July 10, 2017, and August 24, 2017, is adopted as final, without
$7,500,000 worth of pistachios. Nine of 1, 2017, meetings were public meetings change.
the 18 (50 percent) regulated handlers and all entities, both large and small,
were able to express views on this issue. Dated: March 9, 2018.
received enough pistachios at an
average price of $2.50 per pound to be In accordance with the Paperwork Bruce Summers,
considered large handlers, leaving the Reduction Act of 1995 (44 U.S.C. Acting Administrator, Agricultural Marketing
percentage of small handlers at 50 Chapter 35), the Order’s information Service.
percent. collection requirements have been [FR Doc. 2018–05144 Filed 3–13–18; 8:45 am]
The National Agricultural Statistics previously approved by OMB and BILLING CODE 3410–02–P
Service (NASS) 2012 data on pistachio assigned OMB No. 0581–0215,
daltland on DSKBBV9HB2PROD with RULES

farm size indicates that there were 1,305 ‘‘Vegetable and Specialty Crop
pistachio farms, of which 945, or 72 Marketing Orders.’’ No changes in those
percent, were less than 100 acres. NASS requirements as a result of this action
2016 annual production data indicates are necessary. Should any changes
that the per-acre production of become necessary, they would be
pistachios was 3,750 pounds. At an submitted to OMB for approval.

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Document Created: 2018-03-14 01:06:27
Document Modified: 2018-03-14 01:06:27

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		Final rule.
Dates		Effective March 15, 2018.
Contact		Peter 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 Citation		83 FR 11134
CFR Associated		Marketing Agreements; Pistachios and Reporting and Recordkeeping Requirements

83 FR 11134 - Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate

DEPARTMENT OF AGRICULTUREAgricultural Marketing Service

Federal Register Volume 83, Issue 50 (March 14, 2018)

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service