83_FR_21933 83 FR 21841 - Walnuts Grown in California; Order Amending Marketing Order 984

83 FR 21841 - Walnuts Grown in California; Order Amending Marketing Order 984

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 92 (May 11, 2018)

Page Range21841-21843
FR Document2018-10106

This final rule amends Marketing Order No. 984, which regulates the handling of walnuts grown in California. The amendment, which was proposed by the California Walnut Board (Board), was approved by growers in the referendum. This action authorizes the Board to borrow from a commercial lending institution to fund operations and marketing/research expenses for the program.

Federal Register, Volume 83 Issue 92 (Friday, May 11, 2018)
[Federal Register Volume 83, Number 92 (Friday, May 11, 2018)]
[Rules and Regulations]
[Pages 21841-21843]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-10106]



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

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

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

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


Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and 
Regulations

[[Page 21841]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Doc. No. AMS-SC-16-0053; SC16-984-1 FR]


Walnuts Grown in California; Order Amending Marketing Order 984

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This final rule amends Marketing Order No. 984, which 
regulates the handling of walnuts grown in California. The amendment, 
which was proposed by the California Walnut Board (Board), was approved 
by growers in the referendum. This action authorizes the Board to 
borrow from a commercial lending institution to fund operations and 
marketing/research expenses for the program.

DATES: This rule is effective June 11, 2018.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Julie Santoboni, Rulemaking Branch Chief, 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: 
Geronimo.Quinones@ams.usda.gov or Julie.Santoboni@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, 
finalizes an amendment to a marketing order as defined in 7 CFR 
900.2(j). This rule is issued under Marketing Order No. 984, as amended 
(7 CFR part 984), regulating the handling of walnuts grown in 
California. Part 984 hereinafter (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, which is responsible for the local administration of the Order, 
is comprised of walnut growers and handlers operating within the 
production area. The applicable rules of practice and procedure 
governing the formulation of Marketing Agreements and Orders (7 CFR 
part 900) authorize amendment of the Order through this informal 
rulemaking action.
    The Department of Agriculture (USDA) is issuing this 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 rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule shall not be deemed to preclude, preempt, or supersede any 
State program covering walnuts grown in California.
    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.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 18c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307). The amendment of section 18c(17) of 
the Act and additional supplemental rules of practice authorize the use 
of informal rulemaking (5 U.S.C. 553) to amend Federal fruit, 
vegetable, and nut marketing agreements and orders. USDA may use 
informal rulemaking to amend marketing orders based on the nature and 
complexity of the proposed amendments, the potential regulatory and 
economic impacts on affected entities, and any other relevant matters.
    The Agricultural Marketing Service (AMS) considered the nature and 
complexity of the proposed amendment, the potential regulatory and 
economic impacts on affected entities, and other relevant matters, and 
determined that amending the Order as proposed by the Board could 
appropriately be accomplished through informal rulemaking.
    The proposed amendment was unanimously recommended by the Board 
following deliberations at a public meeting held on February 19, 2016.
    A proposed rule soliciting comments on the amendment was issued on 
September 12, 2016, and published in the Federal Register on September 
16, 2016 (81 FR 63721). Two comments were received, both in support of 
the amendment. A proposed rule and referendum order was issued on May 
19, 2017, and published in the Federal Register on May 26, 2017 (82 FR 
24255). This document also directed that a referendum among walnut 
growers be conducted August 7, 2017 through August 18, 2017 to 
determine whether they favored the proposal. To become effective, the 
amendment had to be approved by either two-thirds of the growers voting 
in the referendum or by those representing at least two-thirds of the 
volume of walnuts produced by those voting in the referendum. The 
amendment was favored by 61 percent

[[Page 21842]]

of the growers voting and by 68 percent of the volume represented, the 
second of which exceeds the two-thirds volume requirement.
    The amendment in this final rule authorizes the Board to borrow 
from a commercial lending institution during times of cash shortages to 
help ensure continuity of operations.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this action on small entities. Accordingly, AMS has prepared this final 
regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business 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 5,700 growers of California walnuts in the 
production area and approximately 90 handlers subject to regulation 
under the Order. The Small Business Administration (SBA) defines small 
agricultural growers as those having annual receipts of less than 
$750,000 and defines small agricultural service firms as those whose 
annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to USDA's National Agricultural Statistics Service's 
(NASS's) 2012 Census of Agriculture, approximately 86 percent of 
California's walnut farms were smaller than 100 acres. Further, NASS 
reports that the average yield for 2014 was 1.97 tons per acre, and the 
average price received for 2014 was $3,230 per ton. A 100-acre farm 
with an average yield of 1.97 tons per acre would therefore have been 
expected to produce about 197 tons of walnuts during 2014-15 marketing 
year. At $3,230 per ton, that farm's production would have had an 
approximate value of $636,310. Since Census of Agriculture information 
indicates that the majority of California's walnut farms are smaller 
than 100 acres, it could be concluded that the majority of the growers 
had receipts of less than $636,310 in 2014-15, which is below the SBA 
threshold of $750,000. Thus, the majority of California's walnut 
growers would be considered small growers according to SBA's 
definition. According to information supplied by the Board, 
approximately two-thirds of California's walnut handlers shipped 
merchantable walnuts valued under $7,500,000 during the 2014-15 
marketing year and would, therefore, be considered small handlers 
according to the SBA definition.
    The Board's proposed amendment authorizing the Board to borrow from 
commercial lending institutions was unanimously recommended at a public 
meeting on February 19, 2016. This amendment will help to ensure 
continuity in operations.
    The Board reviewed and identified the most costly portion of its 
domestic advertising program. That portion of the program operates 
during the first six months of the Board's marketing year and costs 
must be paid by mid-year. Since assessment revenues are collected 
throughout the marketing year, not enough is on hand when these large 
payments are due. In the past, the Board has used reserve funds to help 
pay for marketing and advertising expenses. However, due to the 
increased size of the advertising program, the Board cannot rely on 
reserve funds to cover the costs. Based on this fact, the Board 
believes the program could become unsustainable in the long term.
    While this action could result in a temporary increase in handler 
assessment costs, these increases would be small and uniform on all 
handlers and proportional to the size of their businesses. These costs 
are expected to be offset by the benefits derived from a sustained 
marketing and advertising program. Additionally, these costs would help 
to ensure that the Board has sufficient funds to meet its financial 
obligations. Such stability is expected to allow the Board to conduct a 
program that would benefit all entities, regardless of size. California 
walnut growers should see an improved business environment and a more 
sustainable business model because of the improved business efficiency.
    Alternatives were considered to this proposal, including making no 
change at this time. However, the Board believes it would be beneficial 
to have the means and funds necessary to effectively administer the 
program.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178, ``Vegetable 
and Specialty Crops.'' No changes in those requirements as a result of 
this action are necessary. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This amendment will not impose any additional reporting or 
recordkeeping requirements on either small or large California walnut 
handlers.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    The Board's meeting was widely publicized throughout the California 
walnut production area. All interested persons were invited to attend 
and participate in Board deliberations on all issues. The February 19, 
2016, meeting was public, and all entities, both large and small, were 
encouraged to express their views on the proposal.
    A proposed rule concerning this action was published in the Federal 
Register on September 16, 2016 (81 FR 63721). Copies of the proposed 
rule were mailed or sent via facsimile to all Board members and walnut 
growers. Finally, the rule was made available through the internet by 
USDA and the Office of the Federal Register. A 60-day comment period 
ending November 15, 2016, was provided to allow interested persons to 
respond to the proposal. Two comments were received, both in support of 
the amendment. No changes were made to the proposed amendments as a 
result of the comments received.
    A proposed rule and referendum order was then issued on May 19, 
2017, and published in the Federal Register on May 26, 2017 (82 FR 
24255). This document directed that a referendum among walnut growers 
be conducted during the period of August 7, 2017 through August 18, 
2017 to determine whether they favored the proposed amendment to the 
Order. To become effective, the amendment had to be approved by at 
least two-thirds of the growers voting, or two-thirds of the volume of 
walnuts represented by voters in the referendum. The amendment was 
favored by 61 percent of the growers voting and by 68 percent of the 
volume represented, the latter of which exceeds the two-thirds volume 
requirement.
    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/MarketingOrdersSmallBusinessGuide.

[[Page 21843]]

Any questions about the compliance guide should be sent to Richard 
Lower at the previously mentioned address in the FOR FURTHER 
INFORMATION CONTACT section.

Order Amending the Order Regulating the Handling of Walnuts Grown in 
California

    (a) Findings and Determinations Upon the Basis of the Rulemaking 
Record.
    The findings are supplementary to the findings and determinations 
which were previously made in connection with the issuance of the 
Order; and all said previous findings and determinations are hereby 
ratified and affirmed, except insofar as such findings and 
determinations may be in conflict with the findings and determinations 
set forth herein.
    1. The Order, as amended, and as hereby further amended, and all of 
the terms and conditions thereof, will tend to effectuate the declared 
policy of the Act;
    2. The Order, as amended, and as hereby further amended, regulates 
the handling of walnuts grown in California in the same manner as, and 
is applicable only to, persons in the respective classes of commercial 
and industrial activity specified in the Order;
    3. The Order, as amended, and as hereby further amended, is limited 
in application to the smallest regional production area which is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several orders applicable to subdivisions of 
the production area would not effectively carry out the declared policy 
of the Act;
    4. The Order, as amended, and as hereby further amended, 
prescribes, insofar as practicable, such different terms applicable to 
different parts of the production area as are necessary to give due 
recognition to the differences in the production and marketing of 
walnuts produced or packed in the production area; and
    5. All handling of walnuts produced in the production area as 
defined in the Order is in the current of interstate or foreign 
commerce or directly burdens, obstructs, or affects such commerce.
    (b) Determinations. It is hereby determined that:
    1. Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distributing, or shipping of walnuts 
covered under the Order) who during the period September 1, 2015, 
through August 31, 2016, handled not less than 50 percent of the volume 
of such walnuts covered by said Order, as hereby amended, have not 
signed an amended marketing agreement; and
    2. The issuance of this amendatory Order, amending the aforesaid 
Order, is favored or approved by producers representing at least two-
thirds of the volume of walnuts produced by those voting in a 
referendum on the question of approval and who, during the period of 
September 1, 2015, through August 31, 2016, have been engaged within 
the production area in the production of such walnuts.
    3. The issuance of this amendatory Order advances the interests of 
growers of walnuts in the production area pursuant to the declared 
policy of the Act.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of walnuts grown in California shall be in 
conformity to, and in compliance with, the terms and conditions of the 
said Order as hereby amended as follows:
    The provisions of the proposed Marketing Order amending the Order 
contained in the proposed rule issued by the Associate Administrator on 
September 12, 2016, and published in the Federal Register on September 
16, 2016 (81 FR 63721), shall be and are the terms and provisions of 
this order amending the Order and are set forth in full herein.

List of Subjects in 7 CFR Part 984

    Walnuts, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 984 is 
amended as follows:

PART 984--WALNUTS GROWN IN CALIFORNIA

0
1. The authority citation for part 984 continues to read as follows:

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

0
2. Amend 984.69 by redesignating paragraph (d) as paragraph (e) and 
adding a new paragraph (d) to read as follows:


Sec.  984.69  Assessments.

* * * * *
    (d) Advanced assessments and commercial loans. To provide funds for 
the administration of the provisions of this part during the part of a 
fiscal period when neither sufficient operating reserve funds nor 
sufficient revenue from assessments on the current season's 
certifications are available, the Board may accept payment of 
assessments in advance or may borrow money from a commercial lending 
institution for such purposes.
* * * * *

    Dated: May 8, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-10106 Filed 5-10-18; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                             21841

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 83, No. 92

                                                                                                                                                            Friday, May 11, 2018



                                              This section of the FEDERAL REGISTER                    finalizes an amendment to a marketing                 the handler is an inhabitant, or has his
                                              contains regulatory documents having general            order as defined in 7 CFR 900.2(j). This              or her principal place of business, has
                                              applicability and legal effect, most of which           rule is issued under Marketing Order                  jurisdiction to review USDA’s ruling on
                                              are keyed to and codified in the Code of                No. 984, as amended (7 CFR part 984),                 the petition, provided an action is filed
                                              Federal Regulations, which is published under           regulating the handling of walnuts                    not later than 20 days after the date of
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                      grown in California. Part 984 hereinafter             the entry of the ruling.
                                              The Code of Federal Regulations is sold by              (referred to as the ‘‘Order’’) is effective              Section 1504 of the Food,
                                              the Superintendent of Documents.                        under the Agricultural Marketing                      Conservation, and Energy Act of 2008
                                                                                                      Agreement Act of 1937, as amended (7                  (2008 Farm Bill) (Pub. L. 110–246)
                                                                                                      U.S.C. 601–674), hereinafter referred to              amended section 18c(17) of the Act,
                                              DEPARTMENT OF AGRICULTURE                               as the ‘‘Act.’’ The Board, which is                   which in turn required the addition of
                                                                                                      responsible for the local administration              supplemental rules of practice to 7 CFR
                                              Agricultural Marketing Service                          of the Order, is comprised of walnut                  part 900 (73 FR 49307). The amendment
                                                                                                      growers and handlers operating within                 of section 18c(17) of the Act and
                                              7 CFR Part 984                                          the production area. The applicable                   additional supplemental rules of
                                              [Doc. No. AMS–SC–16–0053; SC16–984–1                    rules of practice and procedure                       practice authorize the use of informal
                                              FR]                                                     governing the formulation of Marketing                rulemaking (5 U.S.C. 553) to amend
                                                                                                      Agreements and Orders (7 CFR part 900)                Federal fruit, vegetable, and nut
                                              Walnuts Grown in California; Order                      authorize amendment of the Order                      marketing agreements and orders. USDA
                                              Amending Marketing Order 984                            through this informal rulemaking                      may use informal rulemaking to amend
                                              AGENCY:  Agricultural Marketing Service,                action.                                               marketing orders based on the nature
                                              USDA.                                                      The Department of Agriculture                      and complexity of the proposed
                                                                                                      (USDA) is issuing this rule in                        amendments, the potential regulatory
                                              ACTION: Final rule.
                                                                                                      conformance with Executive Orders                     and economic impacts on affected
                                              SUMMARY:   This final rule amends                       13563 and 13175. This action falls                    entities, and any other relevant matters.
                                              Marketing Order No. 984, which                          within a category of regulatory actions                  The Agricultural Marketing Service
                                              regulates the handling of walnuts grown                 that the Office of Management and                     (AMS) considered the nature and
                                              in California. The amendment, which                     Budget (OMB) exempted from Executive                  complexity of the proposed amendment,
                                              was proposed by the California Walnut                   Order 12866 review. Additionally,                     the potential regulatory and economic
                                              Board (Board), was approved by growers                  because this rule does not meet the                   impacts on affected entities, and other
                                              in the referendum. This action                          definition of a significant regulatory                relevant matters, and determined that
                                              authorizes the Board to borrow from a                   action, it does not trigger the                       amending the Order as proposed by the
                                              commercial lending institution to fund                  requirements contained in Executive                   Board could appropriately be
                                              operations and marketing/research                       Order 13771. See OMB’s Memorandum                     accomplished through informal
                                              expenses for the program.                               titled ‘‘Interim Guidance Implementing                rulemaking.
                                              DATES: This rule is effective June 11,
                                                                                                      Section 2 of the Executive Order of                      The proposed amendment was
                                              2018.                                                   January 30, 2017, titled ‘Reducing                    unanimously recommended by the
                                                                                                      Regulation and Controlling Regulatory                 Board following deliberations at a
                                              FOR FURTHER INFORMATION CONTACT:                        Costs’ ’’ (February 2, 2017).                         public meeting held on February 19,
                                              Geronimo Quinones, Marketing                               This rule has been reviewed under                  2016.
                                              Specialist, or Julie Santoboni,                         Executive Order 12988, Civil Justice                     A proposed rule soliciting comments
                                              Rulemaking Branch Chief, Marketing                      Reform. This rule is not intended to                  on the amendment was issued on
                                              Order and Agreement Division,                           have retroactive effect. This rule shall              September 12, 2016, and published in
                                              Specialty Crops Program, AMS, USDA,                     not be deemed to preclude, preempt, or                the Federal Register on September 16,
                                              1400 Independence Avenue SW, Stop                       supersede any State program covering                  2016 (81 FR 63721). Two comments
                                              0237, Washington, DC 20250–0237;                        walnuts grown in California.                          were received, both in support of the
                                              Telephone: (202) 720–2491, Fax: (202)                      The Act provides that administrative               amendment. A proposed rule and
                                              720–8938, or Email:                                     proceedings must be exhausted before                  referendum order was issued on May
                                              Geronimo.Quinones@ams.usda.gov or                       parties may file suit in court. Under                 19, 2017, and published in the Federal
                                              Julie.Santoboni@ams.usda.gov.                           section 608c(15)(A) of the Act, any                   Register on May 26, 2017 (82 FR 24255).
                                                Small businesses may request                          handler subject to an order may file                  This document also directed that a
                                              information on complying with this                      with USDA a petition stating that the                 referendum among walnut growers be
                                              regulation by contacting Richard Lower,                 order, any provision of the order, or any             conducted August 7, 2017 through
                                              Marketing Order and Agreement                           obligation imposed in connection with                 August 18, 2017 to determine whether
                                              Division, Specialty Crops Program,                      the order is not in accordance with law               they favored the proposal. To become
sradovich on DSK3GMQ082PROD with RULES




                                              AMS, USDA, 1400 Independence                            and request a modification of the order               effective, the amendment had to be
                                              Avenue SW, STOP 0237, Washington,                       or to be exempted therefrom. A handler                approved by either two-thirds of the
                                              DC 20250–0237; Telephone: (202) 720–                    is afforded the opportunity for a hearing             growers voting in the referendum or by
                                              2491, Fax: (202) 720–8938, or Email:                    on the petition. After the hearing, USDA              those representing at least two-thirds of
                                              Richard.Lower@ams.usda.gov.                             would rule on the petition. The Act                   the volume of walnuts produced by
                                              SUPPLEMENTARY INFORMATION: This                         provides that the district court of the               those voting in the referendum. The
                                              action, pursuant to 5 U.S.C. 553,                       United States in any district in which                amendment was favored by 61 percent


                                         VerDate Sep<11>2014   22:27 May 10, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                              21842                 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations

                                              of the growers voting and by 68 percent                 walnut handlers shipped merchantable                     This amendment will not impose any
                                              of the volume represented, the second of                walnuts valued under $7,500,000 during                additional reporting or recordkeeping
                                              which exceeds the two-thirds volume                     the 2014–15 marketing year and would,                 requirements on either small or large
                                              requirement.                                            therefore, be considered small handlers               California walnut handlers.
                                                The amendment in this final rule                      according to the SBA definition.                         As with all Federal marketing order
                                              authorizes the Board to borrow from a                      The Board’s proposed amendment                     programs, reports and forms are
                                              commercial lending institution during                   authorizing the Board to borrow from                  periodically reviewed to reduce
                                              times of cash shortages to help ensure                  commercial lending institutions was                   information requirements and
                                              continuity of operations.                               unanimously recommended at a public                   duplication by industry and public
                                                                                                      meeting on February 19, 2016. This                    sector agencies. In addition, USDA has
                                              Final Regulatory Flexibility Analysis
                                                                                                      amendment will help to ensure                         not identified any relevant Federal rules
                                                 Pursuant to requirements set forth in                continuity in operations.                             that duplicate, overlap, or conflict with
                                              the Regulatory Flexibility Act (RFA) (5                    The Board reviewed and identified                  this rule.
                                              U.S.C. 601–612), AMS has considered                     the most costly portion of its domestic                  AMS is committed to complying with
                                              the economic impact of this action on                   advertising program. That portion of the              the E-Government Act, to promote the
                                              small entities. Accordingly, AMS has                    program operates during the first six                 use of the internet and other
                                              prepared this final regulatory flexibility              months of the Board’s marketing year                  information technologies to provide
                                              analysis.                                               and costs must be paid by mid-year.                   increased opportunities for citizen
                                                 The purpose of the RFA is to fit                     Since assessment revenues are collected               access to Government information and
                                              regulatory actions to the scale of                      throughout the marketing year, not                    services, and for other purposes.
                                              business subject to such actions in order               enough is on hand when these large                       The Board’s meeting was widely
                                              that small businesses will not be unduly                payments are due. In the past, the Board              publicized throughout the California
                                              or disproportionately burdened.                         has used reserve funds to help pay for                walnut production area. All interested
                                              Marketing orders issued pursuant to the                 marketing and advertising expenses.                   persons were invited to attend and
                                              Act, and rules issued thereunder, are                   However, due to the increased size of                 participate in Board deliberations on all
                                              unique in that they are brought about                   the advertising program, the Board                    issues. The February 19, 2016, meeting
                                              through group action of essentially                     cannot rely on reserve funds to cover                 was public, and all entities, both large
                                              small entities acting on their own                      the costs. Based on this fact, the Board              and small, were encouraged to express
                                              behalf.                                                 believes the program could become                     their views on the proposal.
                                                 There are approximately 5,700                        unsustainable in the long term.                          A proposed rule concerning this
                                              growers of California walnuts in the                       While this action could result in a                action was published in the Federal
                                              production area and approximately 90                    temporary increase in handler                         Register on September 16, 2016 (81 FR
                                              handlers subject to regulation under the                assessment costs, these increases would               63721). Copies of the proposed rule
                                              Order. The Small Business                               be small and uniform on all handlers                  were mailed or sent via facsimile to all
                                              Administration (SBA) defines small                      and proportional to the size of their                 Board members and walnut growers.
                                              agricultural growers as those having                    businesses. These costs are expected to               Finally, the rule was made available
                                              annual receipts of less than $750,000                   be offset by the benefits derived from a              through the internet by USDA and the
                                              and defines small agricultural service                  sustained marketing and advertising                   Office of the Federal Register. A 60-day
                                              firms as those whose annual receipts are                program. Additionally, these costs                    comment period ending November 15,
                                              less than $7,500,000 (13 CFR 121.201).                  would help to ensure that the Board has               2016, was provided to allow interested
                                                 According to USDA’s National                         sufficient funds to meet its financial                persons to respond to the proposal. Two
                                              Agricultural Statistics Service’s                       obligations. Such stability is expected to            comments were received, both in
                                              (NASS’s) 2012 Census of Agriculture,                    allow the Board to conduct a program                  support of the amendment. No changes
                                              approximately 86 percent of California’s                that would benefit all entities,                      were made to the proposed amendments
                                              walnut farms were smaller than 100                      regardless of size. California walnut                 as a result of the comments received.
                                              acres. Further, NASS reports that the                   growers should see an improved                           A proposed rule and referendum
                                              average yield for 2014 was 1.97 tons per                business environment and a more                       order was then issued on May 19, 2017,
                                              acre, and the average price received for                sustainable business model because of                 and published in the Federal Register
                                              2014 was $3,230 per ton. A 100-acre                     the improved business efficiency.                     on May 26, 2017 (82 FR 24255). This
                                              farm with an average yield of 1.97 tons                    Alternatives were considered to this               document directed that a referendum
                                              per acre would therefore have been                      proposal, including making no change                  among walnut growers be conducted
                                              expected to produce about 197 tons of                   at this time. However, the Board                      during the period of August 7, 2017
                                              walnuts during 2014–15 marketing year.                  believes it would be beneficial to have               through August 18, 2017 to determine
                                              At $3,230 per ton, that farm’s                          the means and funds necessary to                      whether they favored the proposed
                                              production would have had an                            effectively administer the program.                   amendment to the Order. To become
                                              approximate value of $636,310. Since                                                                          effective, the amendment had to be
                                              Census of Agriculture information                       Paperwork Reduction Act                               approved by at least two-thirds of the
                                              indicates that the majority of                             In accordance with the Paperwork                   growers voting, or two-thirds of the
                                              California’s walnut farms are smaller                   Reduction Act of 1995 (44 U.S.C.                      volume of walnuts represented by voters
                                              than 100 acres, it could be concluded                   Chapter 35), the Order’s information                  in the referendum. The amendment was
                                              that the majority of the growers had                    collection requirements have been                     favored by 61 percent of the growers
                                              receipts of less than $636,310 in 2014–                 previously approved by OMB and                        voting and by 68 percent of the volume
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                                              15, which is below the SBA threshold                    assigned OMB No. 0581–0178,                           represented, the latter of which exceeds
                                              of $750,000. Thus, the majority of                      ‘‘Vegetable and Specialty Crops.’’ No                 the two-thirds volume requirement.
                                              California’s walnut growers would be                    changes in those requirements as a                       A small business guide on complying
                                              considered small growers according to                   result of this action are necessary.                  with fruit, vegetable, and specialty crop
                                              SBA’s definition. According to                          Should any changes become necessary,                  marketing agreements and orders may
                                              information supplied by the Board,                      they would be submitted to OMB for                    be viewed at: http://www.ams.usda.gov/
                                              approximately two-thirds of California’s                approval.                                             MarketingOrdersSmallBusinessGuide.


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                                                                    Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Rules and Regulations                                               21843

                                              Any questions about the compliance         not signed an amended marketing                                    money from a commercial lending
                                              guide should be sent to Richard Lower      agreement; and                                                     institution for such purposes.
                                              at the previously mentioned address in        2. The issuance of this amendatory                              *     *     *     *    *
                                              the FOR FURTHER INFORMATION CONTACT        Order, amending the aforesaid Order, is
                                                                                                                                                              Dated: May 8, 2018.
                                              section.                                   favored or approved by producers
                                                                                         representing at least two-thirds of the                            Bruce Summers,
                                              Order Amending the Order Regulating        volume of walnuts produced by those                                Acting Administrator, Agricultural Marketing
                                              the Handling of Walnuts Grown in           voting in a referendum on the question                             Service.
                                              California                                 of approval and who, during the period                             [FR Doc. 2018–10106 Filed 5–10–18; 8:45 am]
                                                 (a) Findings and Determinations Upon of September 1, 2015, through August                                  BILLING CODE 3410–02–P
                                              the Basis of the Rulemaking Record.        31, 2016, have been engaged within the
                                                 The findings are supplementary to the production area in the production of
                                              findings and determinations which were such walnuts.                                                          DEPARTMENT OF AGRICULTURE
                                              previously made in connection with the        3. The issuance of this amendatory
                                                                                         Order advances the interests of growers                            Agricultural Marketing Service
                                              issuance of the Order; and all said
                                              previous findings and determinations       of walnuts in the production area
                                                                                         pursuant to the declared policy of the                             7 CFR Part 1006
                                              are hereby ratified and affirmed, except
                                              insofar as such findings and               Act.                                                               [AMS–DA–17–0068; AO–18–0008]
                                              determinations may be in conflict with     Order Relative to Handling
                                              the findings and determinations set                                                                           Milk in the Florida Marketing Area;
                                              forth herein.                                 It is therefore ordered, that on and                            Order Amending the Order
                                                 1. The Order, as amended, and as        after  the effective date hereof, all
                                                                                         handling of walnuts grown in California                            AGENCY:  Agricultural Marketing Service,
                                              hereby further amended, and all of the                                                                        USDA.
                                              terms and conditions thereof, will tend    shall be in conformity to, and in
                                                                                         compliance with, the terms and                                     ACTION: Final rule.
                                              to effectuate the declared policy of the
                                              Act;                                       conditions of the said Order as hereby
                                                                                                                                                            SUMMARY:  This final rule amends the
                                                 2. The Order, as amended, and as        amended as follows:
                                                                                            The provisions of the proposed                                  Florida Federal milk marketing order
                                              hereby further amended, regulates the                                                                         (FMMO) to adopt a temporary
                                                                                         Marketing Order amending the Order
                                              handling of walnuts grown in California                                                                       assessment on Class I milk. Assessment
                                                                                         contained in the proposed rule issued
                                              in the same manner as, and is applicable                                                                      revenue will be disbursed to handlers
                                                                                         by the Associate Administrator on
                                              only to, persons in the respective classes                                                                    and producers who incurred
                                                                                         September 12, 2016, and published in
                                              of commercial and industrial activity                                                                         extraordinary marketing losses and
                                                                                         the Federal Register on September 16,
                                              specified in the Order;                                                                                       expenses due to Hurricane Irma in
                                                                                         2016 (81 FR 63721), shall be and are the
                                                 3. The Order, as amended, and as                                                                           September 2017. More than the required
                                                                                         terms and provisions of this order
                                              hereby further amended, is limited in                                                                         number of producers for the Florida
                                                                                         amending the Order and are set forth in
                                              application to the smallest regional                                                                          marketing area have approved the
                                                                                         full herein.
                                              production area which is practicable,                                                                         issuance of the final order as amended.
                                              consistent with carrying out the           List of Subjects in 7 CFR Part 984                                 DATES: This rule is effective July 1,
                                              declared policy of the Act, and the           Walnuts, Marketing agreements,                                  2018.
                                              issuance of several orders applicable to   Reporting and recordkeeping
                                              subdivisions of the production area                                                                           FOR FURTHER INFORMATION CONTACT:  Erin
                                                                                         requirements.                                                      C. Taylor, Order Formulation and
                                              would not effectively carry out the           For the reasons set forth in the
                                              declared policy of the Act;                                                                                   Enforcement Division, USDA/AMS/
                                                                                         preamble, 7 CFR part 984 is amended as                             Dairy Program, STOP 0231-Room 2963,
                                                 4. The Order, as amended, and as        follows:
                                              hereby further amended, prescribes,                                                                           1400 Independence Ave SW,
                                              insofar as practicable, such different                                                                        Washington, DC 20250–0231, (202) 720–
                                                                                         PART 984—WALNUTS GROWN IN
                                              terms applicable to different parts of the CALIFORNIA                                                         7183, email address: erin.taylor@
                                              production area as are necessary to give                                                                      ams.usda.gov.
                                              due recognition to the differences in the ■ 1. The authority citation for part 984                            SUPPLEMENTARY INFORMATION:        This rule,
                                              production and marketing of walnuts        continues to read as follows:                                      in accordance with 7 CFR 900.14(c), is
                                              produced or packed in the production          Authority: 7 U.S.C. 601–674.                                    the Secretary’s final rule in this
                                              area; and                                  ■ 2. Amend 984.69 by redesignating                                 proceeding and issues a marketing order
                                                 5. All handling of walnuts produced     paragraph (d) as paragraph (e) and                                 as defined in 7 CFR 900.2(j).
                                              in the production area as defined in the   adding a new paragraph (d) to read as                                Accordingly, this final rule adopts
                                              Order is in the current of interstate or   follows:                                                           proposed amendments detailed in the
                                              foreign commerce or directly burdens,                                                                         proposed rule (83 FR 13691).
                                              obstructs, or affects such commerce.       § 984.69 Assessments.                                                This administrative action is governed
                                                 (b) Determinations. It is hereby        *       *     *    *     *                                         by the provisions of Sections 556 and
                                              determined that:                              (d) Advanced assessments and                                    557 of Title 5 of the United States Code
                                                 1. Handlers (excluding cooperative      commercial loans. To provide funds for                             and is therefore excluded from the
                                              associations of producers who are not      the administration of the provisions of                            requirements of Executive Order 12866.
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                                              engaged in processing, distributing, or    this part during the part of a fiscal                                This final rule is not considered an
                                              shipping of walnuts covered under the      period when neither sufficient operating                           Executive Order 13771 regulatory action
                                              Order) who during the period               reserve funds nor sufficient revenue                               because it does not meet the definition
                                              September 1, 2015, through August 31,      from assessments on the current                                    of a ‘‘regulation’’ or ‘‘rule’’ under
                                              2016, handled not less than 50 percent     season’s certifications are available, the                         Executive Order 12866.
                                              of the volume of such walnuts covered      Board may accept payment of                                          The proposed amendments adopted
                                              by said Order, as hereby amended, have assessments in advance or may borrow                                   in this final rule have been reviewed


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Document Created: 2018-11-02 09:49:16
Document Modified: 2018-11-02 09:49:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective June 11, 2018.
ContactGeronimo Quinones, Marketing Specialist, or Julie Santoboni, Rulemaking Branch Chief, 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] or [email protected]
FR Citation83 FR 21841 
CFR AssociatedWalnuts; Marketing Agreements and Reporting and Recordkeeping Requirements

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