83_FR_17583 83 FR 17506 - Almonds Grown in California; Adjusted Kernel Weight Computation

83 FR 17506 - Almonds Grown in California; Adjusted Kernel Weight Computation

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 77 (April 20, 2018)

Page Range17506-17509
FR Document2018-08249

This proposed rule would implement a recommendation from the Almond Board of California (Board) to revise the adjusted kernel weight computation currently prescribed under the Marketing Order for almonds grown in California. In addition, this action would allow adjustments to the calculated percentages for foreign material, excess moisture, or inedible kernels so that the sum of the percentages for the specified measurements would equal 100 percent.

Federal Register, Volume 83 Issue 77 (Friday, April 20, 2018)
[Federal Register Volume 83, Number 77 (Friday, April 20, 2018)]
[Proposed Rules]
[Pages 17506-17509]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08249]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Doc. No. AMS-SC-17-0084; SC18-981-1 PR]


Almonds Grown in California; Adjusted Kernel Weight Computation

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Almond Board of California (Board) to

[[Page 17507]]

revise the adjusted kernel weight computation currently prescribed 
under the Marketing Order for almonds grown in California. In addition, 
this action would allow adjustments to the calculated percentages for 
foreign material, excess moisture, or inedible kernels so that the sum 
of the percentages for the specified measurements would equal 100 
percent.

DATES: Comments must be received by May 21, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. 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. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made 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 proposal will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Andrea Ricci, 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: 
Andrea.Ricci@ams.usda.gov or Jeffrey.Smutny@ams.usda.gov.
    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: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Order No. 981, as amended (7 CFR part 981), regulating the 
handling of almonds grown in California. Part 981 (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 Board locally administers the Order and is comprised of 
growers and handlers operating within California.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed 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).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect.
    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. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule invites comments on revisions to the adjusted 
kernel weight computation currently prescribed for almonds under the 
Order. This proposal would change the way adjusted kernel weight is 
expressed by requiring calculation of percentages for specified 
measurements to round the decimal to the nearest thousandth rather than 
the current hundredth. In addition, this proposed rule would allow 
adjustments to the calculated percentages for foreign material, excess 
moisture, or inedible kernels so that the sum of the percentages for 
the specified measurements would equal 100 percent. The Board 
unanimously recommended these changes at its December 4, 2017, meeting.
    Section 981.42 provides authority for quality control regulations. 
Paragraph (a) of that section requires that each handler shall have the 
inspection agency determine the percentage of inedible kernels received 
by that handler and report such determination to the Board.
    Section 981.442(a)(1) prescribes that each handler shall have a 
representative sample drawn from each lot of any variety of incoming 
almonds that the handler receives. Section 981.442(a)(3) prescribes 
that each such sample shall be analyzed by or under surveillance of the 
Federal-State Inspection Service (or, when specifically designated, the 
Federal Inspection Service) to determine the kernel content and the 
portion of inedible kernels in the sample. The inspection agency 
prepares a report showing, among other things, the total adjusted 
kernel weight. This report is submitted by the inspection agency to the 
Board and the handler.
    Section 981.401(a) defines adjusted kernel weight. Section 
981.401(b) provides examples of the computation that is used to 
determine adjusted kernel weight. This computation includes a 
calculation of percentages for specified measurements of edible 
kernels, inedible kernels, foreign material, and excess moisture. The 
table of examples contained in Sec.  981.401(b) shows percentages 
rounded to the nearest tenth and the nearest hundredth decimal place. 
However, in practice, the calculated percentages are currently being 
rounded to the nearest hundredth decimal place.
    Currently, the inspection agency utilizes a computer-based database 
program that computes and totals the percentages for the specified 
measurements. As part of the program's computation process, it 
automatically makes adjustments, when needed, so that the total of the 
percentages equals 100 percent. This program has been used for several 
years, and the industry is accustomed to receiving reports from the 
inspection agency that show the 100-percent summed total.
    In early 2017, the USDA inspection service began testing a new web-
based program that will replace the computer-based program described 
above. During this testing, USDA discovered that, due to the rounding 
method used by the new program, the sum of the percentages occasionally 
did not equal 100 percent. It was further determined during testing 
that having the new program round the decimal to the nearest 
thousandth, rather than the nearest hundredth as currently provided in 
the Order, would produce more accurate results.

[[Page 17508]]

    The new program could also make automatic minor adjustments to the 
percentage computations for foreign material, excess moisture, or 
inedible kernels so that the sum of the percentages would always equal 
100 percent. This allowance for automatic adjustments of these 
specified measurements aligns with industry practice that has existed 
for many years.
    As a result of these test results, the Board determined that 
rounding the decimal to the nearest thousandth rather than the current 
hundredth would provide a more accurate computed percentage. In 
addition, allowing the program to make adjustments to the calculated 
percentages for foreign material, excess moisture, or inedible kernels 
would align the requirements under the Order with current industry 
practices, ensuring the continuance of longstanding reporting practices 
and transparency in the program.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and 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 6,800 almond growers in the production area 
and approximately 100 almond handlers subject to regulation under the 
Order. Small agricultural service firms are defined by the Small 
Business Administration (SBA) 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).
    The National Agricultural Statistics Service (NASS) reported in its 
most recent (2012) Agricultural Census that there were 6,841 almond 
farms in the production area (California), of which 6,204 had bearing 
acres. The following computation provides an estimate of the proportion 
of agricultural producers (farms) and agricultural service firms 
(handlers) that would be considered small under the SBA definitions.
    The NASS Census data indicates that out of the 6,204 California 
farms with bearing acres of almonds, 4,471 (72 percent) have fewer than 
100 bearing acres.
    For the almond industry's most recently reported crop year (2016), 
NASS reported an average yield of 2,280 pounds per acre and a season 
average grower price of $2.44 per pound. A 100-acre farm with an 
average yield of 2,280 pounds per acre would produce about 228,000 
pounds of almonds. At $2.44 per pound, that farm's production would be 
valued at $556,320. The Census of Agriculture indicates that the 
majority of California's almond farms are smaller than 100 acres; 
therefore, it could be concluded that the majority of growers had 
annual receipts from the sale of almonds in 2016-17 of less than 
$556,320, which is below the SBA threshold of $750,000. Thus, over 70 
percent of California's almond growers would be classified as small 
growers according to SBA's definition.
    To estimate the proportion of almond handlers that would be 
considered small businesses, it was assumed that the unit value per 
shelled pound of almonds exported in a particular year could serve as a 
representative almond price at the handler level. A unit value for a 
commodity is the value of exports divided by the quantity. Data from 
the Global Agricultural Trade System database of USDA's Foreign 
Agricultural Service showed that the value of almond exports from 
August 2016 to July 2017 (combining shelled and inshell almonds) was 
$4.072 billion. The quantity of almond exports over that time period 
was 1.406 billion pounds, combining shelled exports and the shelled 
equivalent of inshell exports. Dividing the export value by the 
quantity yields a unit value of $2.90 per pound. Subtracting this 
figure from the NASS 2016 estimate of season average grower price per 
pound ($2.44) yields $0.46 per pound as a representative grower-handler 
margin. Applying the $2.90 representative handler price per pound to 
2016-17 handler shipment quantities provided by the Board showed that 
approximately 40 percent of California's almond handlers shipped 
almonds valued under $7,500,000 during the 2016-17 crop year and would 
therefore be considered small handlers according to the SBA definition.
    This proposed rule would revise the adjusted kernel weight 
computation in Sec.  981.401 by requiring calculation of the 
percentages for specified measurements to round the decimal to the 
nearest thousandth rather than the current hundredth. In addition, this 
action would allow adjustments to the calculated percentages for 
foreign material, excess moisture, or inedible kernels so that the sum 
of the percentages for the specified measurements would equal 100 
percent. Requiring rounding of the decimal to the nearest thousandth 
would provide for a more accurate computed percentage. In addition, 
allowing adjustments to the foreign material, excess moisture, or 
inedible kernel measurements would align the Order with current 
industry practices, ensuring the continuance of longstanding reporting 
practices and transparency in the program. Authority for this action is 
provided in Sec.  981.42(a) of the Order. The Board recommended this 
action at a meeting on December 4, 2017.
    It is not anticipated that this action would impose additional 
costs on handlers or growers, regardless of size. The proposed changes 
are intended to align provisions of the Order with current industry 
practices. This proposed rule is not expected to change handler 
inspection costs, as handlers are currently required to have all lots 
inspected to determine kernel content.
    The Board considered alternatives to this action, including not 
changing the current computation procedures. Prior to this 
recommendation, the Board's Almond Quality, Food Safety and Services 
Committee (Committee) reviewed the program, surveyed handlers, and 
determined that not changing the computation procedures to align with 
current industry practices would cause disruption in the industry. 
Therefore, the Committee unanimously recommended this action to the 
Board at a meeting on November 16, 2017.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178 (Vegetable 
and Specialty Crops). No changes are necessary in those requirements as 
a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large almond 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

[[Page 17509]]

access to Government information and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this proposed rule.
    Further, the Board's meeting was widely publicized throughout the 
almond industry, and all interested persons were invited to attend the 
meeting and participate in Board deliberations. Like all Board 
meetings, the December 4, 2017, meeting was a public meeting, and all 
entities, both large and small, were able to express their views on 
this issue.
    Also, the Board has a number of appointed committees to review 
certain issues and make recommendations to the Board. The Committee met 
on November 16, 2017, and discussed this issue in detail. That meeting 
was also a public meeting, and both large and small entities were able 
to participate and express their views.
    Finally, interested persons are invited to submit comments on this 
proposed rule, including the regulatory and information collection 
impacts of this action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 981

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

    For the reasons set forth in the preamble, 7 CFR part 981 is 
proposed to be amended as follows:

PART 981--ALMONDS GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 981 continues to read as 
follows:

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

0
2. In Sec.  981.401, revise the table in paragraph (b) and add 
paragraph (c) to read as follows:


Sec.  981.401  Adjusted kernel weight.

* * * * *
    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                                         Computation No. 1               Computation No. 2
                                                 ---------------------------------------------------------------
                                                   Deliveries with less than 95    Deliveries with 95 percent or
                                                          percent kernels                  more kernels
                                                 ---------------------------------------------------------------
                                                    Percent of        Weight        Percent of        Weight
                                                      sample         (pounds)         sample         (pounds)
----------------------------------------------------------------------------------------------------------------
1. Actual gross weight of delivery..............  ..............          10,000  ..............          10,000
2. Percent of edible kernel weight..............          53.000  ..............          84.000  ..............
3. Less weight loss in processing \1\...........           1.000  ..............           0.000  ..............
4. Less excess moisture of edible kernels                  1.060  ..............           1.680  ..............
 (excess moisture x line 2).....................
5. Net percent shell out (line 2 - lines 3 and            50.940  ..............          82.320  ..............
 4).............................................
6. Net edible kernels (line 5 x line 1).........  ..............           5,094  ..............           8,232
7. Percent of inedible kernels (from sample)....          12.000  ..............          12.000  ..............
8. Less excess moisture of inedible kernels                0.240  ..............           0.240  ..............
 (excess moisture from sample x line 7).........
9. Net percent inedible kernels (line 7 - line            11.760  ..............          11.760  ..............
 8).............................................
10. Total inedible kernels (line 9 x line 1)....  ..............           1,176  ..............           1,176
11. Adjusted kernel weight (line 6 + line 10)...  ..............           6,270  ..............           9,408
----------------------------------------------------------------------------------------------------------------
\1\ Only applies to deliveries with less than 95 percent kernels.

    (c) Computation Adjustments. If applicable, adjustments shall be 
made by rounding such that the sample computation percentages total 
equals 100 percent. Rounding adjustments shall be made as follows: 
First adjust the foreign material percentage; if there is no foreign 
material in the sample, then adjust the excess moisture percentage; or 
if there is no foreign material or excess moisture in the sample, 
adjust the inedible kernels percentage.

    Dated: April 16, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-08249 Filed 4-19-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                  17506                     Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules

                                                  the location and hours of the reading                      (2) The production site where the fruit             bait spray agreed upon by APHIS and
                                                  room are provided under the heading                     is grown must be registered with the                   the NPPO of Ecuador must be initiated
                                                  ADDRESSES at the beginning of this                      NPPO of Ecuador.                                       in the detection area. Treatment must
                                                  proposed rule.) Copies can also be                         (3) Harvested fresh cape gooseberry                 continue for at least 2 months. Sites
                                                  obtained from Ms. Kimberly Hardy,                       fruit must be placed in field cartons or               whose exports have been canceled
                                                  APHIS’ Information Collection                           containers that are marked to show the                 under this paragraph will be eligible to
                                                  Coordinator, at (301) 851–2483. APHIS                   official identification of the production              export fruit to the United States only if
                                                  will respond to any ICR-related                         site.                                                  the fruit is treated in accordance with
                                                  comments in the final rule. All                            (4) All openings to the outside of the              paragraph (e) of this section. Exports
                                                  comments will also become a matter of                   packinghouse where the fruit is packed                 may resume from the detection area in
                                                  public record.                                          must be covered by screening or by                     accordance with this paragraph (d)
                                                                                                          some other barrier that prevents pests                 when APHIS and the NPPO of Ecuador
                                                  E-Government Act Compliance                             from entering. The packinghouse must                   agree the risk has been mitigated.
                                                     The Animal and Plant Health                          have double doors at the entrance to the                  (3) Phytosanitary inspection. After
                                                  Inspection Service is committed to                      facility and at the interior entrance to               packing, the NPPO of Ecuador must
                                                  compliance with the EGovernment Act                     the area where the fresh cape gooseberry               visually inspect the fresh cape
                                                  to promote the use of the internet and                  fruit is packed.                                       gooseberry fruit at a rate jointly
                                                  other information technologies, to                         (5) Each consignment of fresh cape                  approved by APHIS and the NPPO of
                                                  provide increased opportunities for                     gooseberry fruit must be accompanied                   Ecuador. Any fruit displaying evidence
                                                  citizen access to Government                            by a phytosanitary certificate issued by               of pest presence must be cut open for
                                                  information and services, and for other                 the NPPO of Ecuador that contains an                   further examination. Only in the case
                                                  purposes. For information pertinent to                  additional declaration stating that the                where at least one single live C. capitata
                                                  E-Government Act compliance related                     fruit in the consignment was produced                  is found, the consignment will not pass
                                                  to this proposed rule, please contact Ms.               in accordance with § 319.56–83.                        inspection. Any consignment that does
                                                  Kimberly Hardy, APHIS’ Information                         (b) Commercial consignments. The                    not pass inspection may still be
                                                  Collection Coordinator, at (301) 851–                   fresh cape gooseberry fruit may be                     imported into the continental United
                                                  2483.                                                   imported in commercial consignments                    States subject to treatment as provided
                                                                                                          only.                                                  in paragraph (e) of this section.
                                                  List of Subjects in 7 CFR Part 319                         (c) To be eligible for importation, the                (e) Treatment. The fresh cape
                                                    Coffee, Cotton, Fruits, Imports, Logs,                fresh cape gooseberry fruit must either                gooseberry fruit may be imported into
                                                  Nursery stock, Plant diseases and pests,                be produced and shipped under the                      the continental United States without
                                                  Quarantine, Reporting and                               systems approach described in                          meeting the conditions of paragraph (d)
                                                  recordkeeping requirements, Rice,                       paragraph (d) of this section or treated               of this section if the fruit is subject to
                                                  Vegetables.                                             in accordance with paragraph (e) of this               cold treatment or irradiation treatment
                                                                                                          section.                                               in accordance with part 305 of this
                                                    Accordingly, we propose to amend 7                       (d) Systems approach. The fresh cape
                                                  CFR part 319 as follows:                                                                                       chapter. If the irradiation treatment is
                                                                                                          gooseberry fruit may be imported                       completed in Ecuador, each
                                                                                                          without treatment if it is subject to a                consignment of fresh cape gooseberry
                                                  PART 319—FOREIGN QUARANTINE
                                                                                                          systems approach consisting of the                     fruit must be accompanied by
                                                  NOTICES
                                                                                                          following:                                             documentation to validate foreign site
                                                                                                             (1) Low-prevalence production site
                                                  ■ 1. The authority citation for part 319                                                                       preclearance inspection of the
                                                                                                          certification. The fruit must originate
                                                  continues to read as follows:                                                                                  consignment.
                                                                                                          from a registered production site within
                                                    Authority: 7 U.S.C. 450, 7701–7772, and               a low prevalence area for C. capitata                    Done in Washington, DC, this 16th day of
                                                  7781–7786; 21 U.S.C. 136 and 136a; 7 CFR                that has been certified as such by the                 April 2018.
                                                  2.22, 2.80, and 371.3.                                                                                         Kevin Shea,
                                                                                                          NPPO of Ecuador.
                                                  ■   2. Add § 319.56–83 to read as follows:                 (2) Fruit fly trapping. (i) Trapping for            Administrator, Animal and Plant Health
                                                                                                          C. capitata must be conducted in the                   Inspection Service.
                                                  § 319.56–83      Fresh cape gooseberry from             places of production in accordance with                [FR Doc. 2018–08251 Filed 4–19–18; 8:45 am]
                                                  Ecuador.                                                the operational workplan to                            BILLING CODE 3410–34–P
                                                    Fresh cape gooseberry (Physalis                       demonstrate that those places are free of
                                                  peruviana) fruit may be imported into                   C. capitata. Specific trapping
                                                  the continental United States only                      requirements must be included in the                   DEPARTMENT OF AGRICULTURE
                                                  under the conditions described in this                  operational workplan. The NPPO of
                                                  section. These conditions are designed                  Ecuador must keep records of fruit fly                 Agricultural Marketing Service
                                                  to prevent the introduction of Ceratitis                detections for each trap and make the
                                                  capitata.                                                                                                      7 CFR Part 981
                                                                                                          records available to APHIS upon
                                                    (a) General requirements. (1) The                     request.                                               [Doc. No. AMS–SC–17–0084; SC18–981–1
                                                  national plant protection organization                     (ii) All fruit flies trapped must be                PR]
                                                  (NPPO) of Ecuador must provide an                       reported to APHIS immediately. Capture
                                                  operational workplan to APHIS that                      of C. capitata will result in immediate                Almonds Grown in California; Adjusted
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  details the activities that the NPPO of                 cancellation of exports from farms                     Kernel Weight Computation
                                                  Ecuador will, subject to APHIS’                         within 5 kilometer radius of the                       AGENCY:  Agricultural Marketing Service,
                                                  approval of the workplan, carry out to                  detection site. An additional 50 traps                 USDA.
                                                  meet the requirements of this section.                  must be placed in the 5 square kilometer               ACTION: Proposed rule.
                                                  APHIS will be directly involved with                    area surrounding the detection site. If a
                                                  the NPPO of Ecuador in monitoring and                   second detection is made within the                    SUMMARY:This proposed rule would
                                                  auditing implementation of the systems                  detection areas within 30 days of a                    implement a recommendation from the
                                                  approach.                                               previous capture, eradication using a                  Almond Board of California (Board) to


                                             VerDate Sep<11>2014   16:41 Apr 19, 2018   Jkt 244001   PO 00000   Frm 00006   Fmt 4702   Sfmt 4702   E:\FR\FM\20APP1.SGM   20APP1


                                                                            Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules                                          17507

                                                  revise the adjusted kernel weight                       of 1937, as amended (7 U.S.C. 601–674),                   Section 981.42 provides authority for
                                                  computation currently prescribed under                  hereinafter referred to as the ‘‘Act.’’ The            quality control regulations. Paragraph
                                                  the Marketing Order for almonds grown                   Board locally administers the Order and                (a) of that section requires that each
                                                  in California. In addition, this action                 is comprised of growers and handlers                   handler shall have the inspection
                                                  would allow adjustments to the                          operating within California.                           agency determine the percentage of
                                                  calculated percentages for foreign                         The Department of Agriculture                       inedible kernels received by that
                                                  material, excess moisture, or inedible                  (USDA) is issuing this proposed rule in                handler and report such determination
                                                  kernels so that the sum of the                          conformance with Executive Orders                      to the Board.
                                                  percentages for the specified                           13563 and 13175. This action falls                        Section 981.442(a)(1) prescribes that
                                                  measurements would equal 100 percent.                   within a category of regulatory actions                each handler shall have a representative
                                                  DATES: Comments must be received by                     that the Office of Management and                      sample drawn from each lot of any
                                                  May 21, 2018.                                           Budget (OMB) exempted from Executive                   variety of incoming almonds that the
                                                  ADDRESSES: Interested persons are                       Order 12866 review. Additionally,                      handler receives. Section 981.442(a)(3)
                                                  invited to submit written comments                      because this proposed rule does not                    prescribes that each such sample shall
                                                  concerning this proposal. Comments                      meet the definition of a significant                   be analyzed by or under surveillance of
                                                  must be sent to the Docket Clerk,                       regulatory action, it does not trigger the             the Federal-State Inspection Service (or,
                                                  Marketing Order and Agreement                           requirements contained in Executive                    when specifically designated, the
                                                  Division, Specialty Crops Program,                      Order 13771. See OMB’s Memorandum                      Federal Inspection Service) to determine
                                                  AMS, USDA, 1400 Independence                            titled ‘‘Interim Guidance Implementing                 the kernel content and the portion of
                                                  Avenue SW, STOP 0237, Washington,                       Section 2 of the Executive Order of                    inedible kernels in the sample. The
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  January 30, 2017, titled ‘Reducing                     inspection agency prepares a report
                                                  internet: http://www.regulations.gov. All               Regulation and Controlling Regulatory                  showing, among other things, the total
                                                  comments should reference the                           Costs’ ’’ (February 2, 2017).                          adjusted kernel weight. This report is
                                                  document number and the date and                           This proposed rule has been reviewed                submitted by the inspection agency to
                                                  page number of this issue of the Federal                under Executive Order 12988, Civil                     the Board and the handler.
                                                  Register and will be made available for                 Justice Reform. This proposed rule is                     Section 981.401(a) defines adjusted
                                                  public inspection in the Office of the                  not intended to have retroactive effect.               kernel weight. Section 981.401(b)
                                                  Docket Clerk during regular business                       The Act provides that administrative                provides examples of the computation
                                                  hours, or can be viewed at: http://                     proceedings must be exhausted before                   that is used to determine adjusted
                                                  www.regulations.gov. All comments                       parties may file suit in court. Under                  kernel weight. This computation
                                                  submitted in response to this proposal                  section 608c(15)(A) of the Act, any                    includes a calculation of percentages for
                                                  will be included in the record and will                 handler subject to an order may file                   specified measurements of edible
                                                  be made available to the public. Please                 with USDA a petition stating that the                  kernels, inedible kernels, foreign
                                                  be advised that the identity of the                     order, any provision of the order, or any              material, and excess moisture. The table
                                                  individuals or entities submitting the                  obligation imposed in connection with                  of examples contained in § 981.401(b)
                                                  comments will be made public on the                     the order is not in accordance with law                shows percentages rounded to the
                                                  internet at the address provided above.                 and request a modification of the order                nearest tenth and the nearest hundredth
                                                  FOR FURTHER INFORMATION CONTACT:                        or to be exempted therefrom. A handler                 decimal place. However, in practice, the
                                                  Andrea Ricci, Marketing Specialist, or                  is afforded the opportunity for a hearing              calculated percentages are currently
                                                  Jeffrey Smutny, Regional Director,                      on the petition. After the hearing, USDA               being rounded to the nearest hundredth
                                                  California Marketing Field Office,                      would rule on the petition. The Act                    decimal place.
                                                  Marketing Order and Agreement                           provides that the district court of the                   Currently, the inspection agency
                                                  Division, Specialty Crops Program,                      United States in any district in which                 utilizes a computer-based database
                                                  AMS, USDA; Telephone: (559) 487–                        the handler is an inhabitant, or has his               program that computes and totals the
                                                  5901, Fax: (559) 487–5906, or Email:                    or her principal place of business, has                percentages for the specified
                                                  Andrea.Ricci@ams.usda.gov or                            jurisdiction to review USDA’s ruling on                measurements. As part of the program’s
                                                  Jeffrey.Smutny@ams.usda.gov.                            the petition, provided an action is filed              computation process, it automatically
                                                     Small businesses may request                         not later than 20 days after the date of               makes adjustments, when needed, so
                                                  information on complying with this                      the entry of the ruling.                               that the total of the percentages equals
                                                  regulation by contacting Richard Lower,                    This proposed rule invites comments                 100 percent. This program has been
                                                  Marketing Order and Agreement                           on revisions to the adjusted kernel                    used for several years, and the industry
                                                  Division, Specialty Crops Program,                      weight computation currently                           is accustomed to receiving reports from
                                                  AMS, USDA, 1400 Independence                            prescribed for almonds under the Order.                the inspection agency that show the
                                                  Avenue SW, STOP 0237, Washington,                       This proposal would change the way                     100-percent summed total.
                                                  DC 20250–0237; Telephone: (202) 720–                    adjusted kernel weight is expressed by                    In early 2017, the USDA inspection
                                                  2491, Fax: (202) 720–8938, or Email:                    requiring calculation of percentages for               service began testing a new web-based
                                                  Richard.Lower@ams.usda.gov.                             specified measurements to round the                    program that will replace the computer-
                                                  SUPPLEMENTARY INFORMATION: This                         decimal to the nearest thousandth rather               based program described above. During
                                                  action, pursuant to 5 U.S.C. 553,                       than the current hundredth. In addition,               this testing, USDA discovered that, due
                                                  proposes an amendment to regulations                    this proposed rule would allow                         to the rounding method used by the new
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                                                  issued to carry out a marketing order as                adjustments to the calculated                          program, the sum of the percentages
                                                  defined in 7 CFR 900.2(j). This proposed                percentages for foreign material, excess               occasionally did not equal 100 percent.
                                                  rule is issued under Marketing Order                    moisture, or inedible kernels so that the              It was further determined during testing
                                                  No. 981, as amended (7 CFR part 981),                   sum of the percentages for the specified               that having the new program round the
                                                  regulating the handling of almonds                      measurements would equal 100 percent.                  decimal to the nearest thousandth,
                                                  grown in California. Part 981 (referred to              The Board unanimously recommended                      rather than the nearest hundredth as
                                                  as the ‘‘Order’’) is effective under the                these changes at its December 4, 2017,                 currently provided in the Order, would
                                                  Agricultural Marketing Agreement Act                    meeting.                                               produce more accurate results.


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                                                  17508                     Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules

                                                     The new program could also make                      bearing acres of almonds, 4,471 (72                    material, excess moisture, or inedible
                                                  automatic minor adjustments to the                      percent) have fewer than 100 bearing                   kernels so that the sum of the
                                                  percentage computations for foreign                     acres.                                                 percentages for the specified
                                                  material, excess moisture, or inedible                    For the almond industry’s most                       measurements would equal 100 percent.
                                                  kernels so that the sum of the                          recently reported crop year (2016),                    Requiring rounding of the decimal to
                                                  percentages would always equal 100                      NASS reported an average yield of 2,280                the nearest thousandth would provide
                                                  percent. This allowance for automatic                   pounds per acre and a season average                   for a more accurate computed
                                                  adjustments of these specified                          grower price of $2.44 per pound. A 100-                percentage. In addition, allowing
                                                  measurements aligns with industry                       acre farm with an average yield of 2,280               adjustments to the foreign material,
                                                  practice that has existed for many years.               pounds per acre would produce about                    excess moisture, or inedible kernel
                                                     As a result of these test results, the               228,000 pounds of almonds. At $2.44                    measurements would align the Order
                                                  Board determined that rounding the                      per pound, that farm’s production                      with current industry practices,
                                                  decimal to the nearest thousandth rather                would be valued at $556,320. The                       ensuring the continuance of
                                                  than the current hundredth would                        Census of Agriculture indicates that the               longstanding reporting practices and
                                                  provide a more accurate computed                        majority of California’s almond farms                  transparency in the program. Authority
                                                  percentage. In addition, allowing the                   are smaller than 100 acres; therefore, it              for this action is provided in § 981.42(a)
                                                  program to make adjustments to the                      could be concluded that the majority of                of the Order. The Board recommended
                                                  calculated percentages for foreign                      growers had annual receipts from the                   this action at a meeting on December 4,
                                                  material, excess moisture, or inedible                  sale of almonds in 2016–17 of less than                2017.
                                                  kernels would align the requirements                    $556,320, which is below the SBA                          It is not anticipated that this action
                                                  under the Order with current industry                   threshold of $750,000. Thus, over 70                   would impose additional costs on
                                                  practices, ensuring the continuance of                  percent of California’s almond growers                 handlers or growers, regardless of size.
                                                  longstanding reporting practices and                    would be classified as small growers                   The proposed changes are intended to
                                                  transparency in the program.                            according to SBA’s definition.                         align provisions of the Order with
                                                                                                            To estimate the proportion of almond                 current industry practices. This
                                                  Initial Regulatory Flexibility Analysis                 handlers that would be considered                      proposed rule is not expected to change
                                                     Pursuant to requirements set forth in                small businesses, it was assumed that                  handler inspection costs, as handlers are
                                                  the Regulatory Flexibility Act (RFA) (5                 the unit value per shelled pound of                    currently required to have all lots
                                                  U.S.C. 601–612), the Agricultural                       almonds exported in a particular year                  inspected to determine kernel content.
                                                  Marketing Service (AMS) has                             could serve as a representative almond                    The Board considered alternatives to
                                                  considered the economic impact of this                  price at the handler level. A unit value               this action, including not changing the
                                                  proposed rule on small entities.                        for a commodity is the value of exports                current computation procedures. Prior
                                                  Accordingly, AMS has prepared this                      divided by the quantity. Data from the                 to this recommendation, the Board’s
                                                  initial regulatory flexibility analysis.                Global Agricultural Trade System                       Almond Quality, Food Safety and
                                                     The purpose of the RFA is to fit                     database of USDA’s Foreign Agricultural                Services Committee (Committee)
                                                  regulatory actions to the scale of                      Service showed that the value of                       reviewed the program, surveyed
                                                  businesses subject to such actions in                   almond exports from August 2016 to                     handlers, and determined that not
                                                  order that small businesses will not be                 July 2017 (combining shelled and                       changing the computation procedures to
                                                  unduly or disproportionately burdened.                  inshell almonds) was $4.072 billion.                   align with current industry practices
                                                  Marketing orders issued pursuant to the                 The quantity of almond exports over                    would cause disruption in the industry.
                                                  Act, and rules issued thereunder, are                   that time period was 1.406 billion                     Therefore, the Committee unanimously
                                                  unique in that they are brought about                   pounds, combining shelled exports and                  recommended this action to the Board at
                                                  through group action of essentially                     the shelled equivalent of inshell                      a meeting on November 16, 2017.
                                                  small entities acting on their own                      exports. Dividing the export value by                     In accordance with the Paperwork
                                                  behalf.                                                 the quantity yields a unit value of $2.90              Reduction Act of 1995 (44 U.S.C.
                                                     There are approximately 6,800                        per pound. Subtracting this figure from                Chapter 35), the Order’s information
                                                  almond growers in the production area                   the NASS 2016 estimate of season                       collection requirements have been
                                                  and approximately 100 almond handlers                   average grower price per pound ($2.44)                 previously approved by OMB and
                                                  subject to regulation under the Order.                  yields $0.46 per pound as a                            assigned OMB No. 0581–0178
                                                  Small agricultural service firms are                    representative grower-handler margin.                  (Vegetable and Specialty Crops). No
                                                  defined by the Small Business                           Applying the $2.90 representative                      changes are necessary in those
                                                  Administration (SBA) as those having                    handler price per pound to 2016–17                     requirements as a result of this action.
                                                  annual receipts of less than $7,500,000,                handler shipment quantities provided                   Should any changes become necessary,
                                                  and small agricultural producers are                    by the Board showed that approximately                 they would be submitted to OMB for
                                                  defined as those having annual receipts                 40 percent of California’s almond                      approval.
                                                  of less than $750,000 (13 CFR 121.201).                 handlers shipped almonds valued under                     This proposed rule would not impose
                                                     The National Agricultural Statistics                 $7,500,000 during the 2016–17 crop                     any additional reporting or
                                                  Service (NASS) reported in its most                     year and would therefore be considered                 recordkeeping requirements on either
                                                  recent (2012) Agricultural Census that                  small handlers according to the SBA                    small or large almond handlers. As with
                                                  there were 6,841 almond farms in the                    definition.                                            all Federal marketing order programs,
                                                  production area (California), of which                    This proposed rule would revise the                  reports and forms are periodically
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                                                  6,204 had bearing acres. The following                  adjusted kernel weight computation in                  reviewed to reduce information
                                                  computation provides an estimate of the                 § 981.401 by requiring calculation of the              requirements and duplication by
                                                  proportion of agricultural producers                    percentages for specified measurements                 industry and public sector agencies.
                                                  (farms) and agricultural service firms                  to round the decimal to the nearest                       AMS is committed to complying with
                                                  (handlers) that would be considered                     thousandth rather than the current                     the E-Government Act, to promote the
                                                  small under the SBA definitions.                        hundredth. In addition, this action                    use of the internet and other
                                                     The NASS Census data indicates that                  would allow adjustments to the                         information technologies to provide
                                                  out of the 6,204 California farms with                  calculated percentages for foreign                     increased opportunities for citizen


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                                                                                      Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules                                                                                                   17509

                                                  access to Government information and                                       small entities were able to participate                                     List of Subjects in 7 CFR Part 981
                                                  services, and for other purposes.                                          and express their views.
                                                                                                                                Finally, interested persons are invited                                    Almonds, Marketing agreements,
                                                     USDA has not identified any relevant                                                                                                                Nuts, Reporting and recordkeeping
                                                  Federal rules that duplicate, overlap or                                   to submit comments on this proposed
                                                                                                                             rule, including the regulatory and                                          requirements.
                                                  conflict with this proposed rule.
                                                                                                                             information collection impacts of this                                        For the reasons set forth in the
                                                     Further, the Board’s meeting was                                        action on small businesses.                                                 preamble, 7 CFR part 981 is proposed to
                                                  widely publicized throughout the                                              A small business guide on complying                                      be amended as follows:
                                                  almond industry, and all interested                                        with fruit, vegetable, and specialty crop
                                                  persons were invited to attend the                                         marketing agreements and orders may                                         PART 981—ALMONDS GROWN IN
                                                  meeting and participate in Board                                           be viewed at: http://www.ams.usda.gov/                                      CALIFORNIA
                                                  deliberations. Like all Board meetings,                                    rules-regulations/moa/small-businesses.
                                                  the December 4, 2017, meeting was a                                        Any questions about the compliance                                          ■ 1. The authority citation for 7 CFR
                                                  public meeting, and all entities, both                                     guide should be sent to Richard Lower                                       part 981 continues to read as follows:
                                                  large and small, were able to express                                      at the previously mentioned address in
                                                  their views on this issue.                                                                                                                                 Authority: 7 U.S.C. 601–674.
                                                                                                                             the FOR FURTHER INFORMATION CONTACT
                                                     Also, the Board has a number of                                         section.                                                                    ■ 2. In § 981.401, revise the table in
                                                  appointed committees to review certain                                        A 30-day comment period is provided                                      paragraph (b) and add paragraph (c) to
                                                  issues and make recommendations to                                         to allow interested persons to respond                                      read as follows:
                                                  the Board. The Committee met on                                            to this proposal. All written comments
                                                  November 16, 2017, and discussed this                                      timely received will be considered                                          § 981.401          Adjusted kernel weight.
                                                  issue in detail. That meeting was also a                                   before a final determination is made on                                     *       *    *                *         *
                                                  public meeting, and both large and                                         this matter.                                                                    (b) * * *

                                                                                                                                                                                    Computation No. 1                                      Computation No. 2

                                                                                                                                                                                Deliveries with less than                        Deliveries with 95 percent or
                                                                                                                                                                                  95 percent kernels                                     more kernels

                                                                                                                                                                               Percent                    Weight                     Percent                    Weight
                                                                                                                                                                              of sample                  (pounds)                   of sample                  (pounds)

                                                  1. Actual gross weight of delivery ....................................................................                 ........................                10,000        ........................                10,000
                                                  2. Percent of edible kernel weight ...................................................................                               53.000        ........................                84.000        ........................
                                                  3. Less weight loss in processing 1 .................................................................                                  1.000       ........................                  0.000       ........................
                                                  4. Less excess moisture of edible kernels (excess moisture × line 2) ...........                                                       1.060       ........................                  1.680       ........................
                                                  5. Net percent shell out (line 2 ¥ lines 3 and 4) ............................................                                       50.940        ........................                82.320        ........................
                                                  6. Net edible kernels (line 5 × line 1) ..............................................................                  ........................                  5,094       ........................                  8,232
                                                  7. Percent of inedible kernels (from sample) ..................................................                                      12.000        ........................                12.000        ........................
                                                  8. Less excess moisture of inedible kernels (excess moisture from sample ×
                                                    line 7) ...........................................................................................................                  0.240       ........................                  0.240       ........................
                                                  9. Net percent inedible kernels (line 7 ¥ line 8) .............................................                                      11.760        ........................                11.760        ........................
                                                  10. Total inedible kernels (line 9 × line 1) .......................................................                    ........................                  1,176       ........................                  1,176
                                                  11. Adjusted kernel weight (line 6 + line 10) ...................................................                       ........................                  6,270       ........................                  9,408
                                                       1 Only   applies to deliveries with less than 95 percent kernels.


                                                    (c) Computation Adjustments. If                                          FEDERAL ELECTION COMMISSION                                                 errors in the ADDRESSES and
                                                  applicable, adjustments shall be made                                                                                                                  SUPPLEMENTARY INFORMATION      captions.
                                                  by rounding such that the sample                                           11 CFR Chapter 113                                                          FOR FURTHER INFORMATION CONTACT: Mr.
                                                  computation percentages total equals                                                                                                                   Robert M. Knop, Assistant General
                                                                                                                             [Notice 2018–07]
                                                  100 percent. Rounding adjustments                                                                                                                      Counsel, 1050 First Street NE,
                                                  shall be made as follows: First adjust the                                 Rulemaking Petition: Former                                                 Washington, DC 20463, (202) 694–1650
                                                  foreign material percentage; if there is                                   Candidates’ Personal Use; Correction                                        or (800) 424–9530.
                                                  no foreign material in the sample, then                                                                                                                CORRECTION: In the Federal Register of
                                                  adjust the excess moisture percentage;                                     AGENCY:  Federal Election Commission.
                                                                                                                                                                                                         March 21, 2018, 83 FR 12283, in the
                                                  or if there is no foreign material or                                      ACTION: Rulemaking Petition;                                                ADDRESSES caption, in the first column,
                                                  excess moisture in the sample, adjust                                      Notification of Availability; Correction.                                   correct the first paragraph to read:
                                                  the inedible kernels percentage.
                                                                                                                             SUMMARY:   The Federal Election                                             ADDRESSES: All comments must be in
                                                    Dated: April 16, 2018.                                                   Commission published a Notification of                                      writing. Commenters are encouraged to
                                                  Bruce Summers,                                                             Availability in the Federal Register on                                     submit comments electronically via the
                                                                                                                             March 21, 2018 regarding a Petition for                                     Commission’s website at http://
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                                                  Acting Administrator, Agricultural Marketing
                                                  Service.                                                                   Rulemaking it received on February 5,                                       sers.fec.gov/fosers/rulemaking.htm?pid=
                                                  [FR Doc. 2018–08249 Filed 4–19–18; 8:45 am]                                2018. The petition asked the                                                2883684, which references REG 2018–
                                                  BILLING CODE 3410–02–P
                                                                                                                             Commission to revise and amend the                                          01. Alternatively, commenters may
                                                                                                                             existing rules concerning the personal                                      submit comments in paper form,
                                                                                                                             use of campaign funds, specifically to                                      addressed to the Federal Election
                                                                                                                             clarify the application of those rules to                                   Commission, Attn.: Robert M. Knop,
                                                                                                                             former candidates and officeholders.                                        Assistant General Counsel, 1050 First
                                                                                                                             The published document contained                                            Street NE, Washington, DC 20463.


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Document Created: 2018-04-20 00:03:37
Document Modified: 2018-04-20 00:03:37
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by May 21, 2018.
ContactAndrea Ricci, 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 Citation83 FR 17506 
CFR AssociatedAlmonds; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements

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