83_FR_31603 83 FR 31473 - Handling of Almonds Grown in California

83 FR 31473 - Handling of Almonds Grown in California

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 130 (July 6, 2018)

Page Range31473-31477
FR Document2018-14512

This proposed rule invites comments on proposed amendments to Marketing Order No. 981, which regulates the handling of almonds grown in California. The proposed amendments would change the dates associated with the process to nominate members to the Almond Board of California (Board) as well as the start of the term of office of members of the Board. The proposed amendments would also add authority to allow future revisions of the nomination methods and term of office start date through the development of regulations using informal rulemaking.

Federal Register, Volume 83 Issue 130 (Friday, July 6, 2018)
[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Proposed Rules]
[Pages 31473-31477]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14512]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[AMS-SC-18-0018; SC18-981-3]


Handling of Almonds Grown in California

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule invites comments on proposed amendments to 
Marketing Order No. 981, which regulates the handling of almonds grown 
in California. The proposed amendments would change the dates 
associated with the process to nominate members to the Almond Board of 
California (Board) as well as the start of the term of office of 
members of the Board. The proposed amendments would also add authority 
to allow future revisions of the nomination methods and term of office 
start date through the development of regulations using informal 
rulemaking.

DATES: Comments must be received by September 4, 2018.

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

[[Page 31474]]

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 
proposed rule will be included in the record and will be made available 
to the public. Please be advised that the identity of the individuals 
or entities submitting the comments will be made public on the internet 
at the address provided above.

FOR FURTHER INFORMATION CONTACT: Debbie Wray, Senior 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].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes amendments 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 
almond growers and handlers operating within California.
    Section 608c(17) of the Act and the applicable rules of practice 
and procedure governing the formulation of marketing agreements and 
orders (7 CFR part 900) authorizes amendment of the Order through this 
informal rulemaking action. The Agricultural Marketing Service (AMS) 
will consider comments received in response to this proposed rule and, 
based on all the information available, will determine if the Order 
amendments are warranted. If AMS determines amendment of the Order is 
warranted, a subsequent proposed rule and notice of referendum would be 
issued, and growers would be allowed to vote for or against the 
proposed Order amendments. AMS would then issue a final rule 
effectuating any amendments approved by growers in the referendum.
    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'[thinsp]'' (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. This proposed rule shall not be deemed to preclude, 
preempt, or supersede any State program covering almonds 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 no later than 20 days after the date of 
entry of the ruling.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The amendment of 
section 8c(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 its 
consideration of the nature and complexity of the proposed amendments, 
the potential regulatory and economic impacts on affected entities, and 
any other relevant matters.
    AMS has considered these factors and has determined that the 
amendments proposed are not unduly complex, and the nature of the 
proposed amendments is appropriate for utilizing the informal 
rulemaking process to amend the Order. A discussion of the potential 
regulatory and economic impacts on affected entities is discussed later 
in the ``Initial Regulatory Flexibility Analysis'' section of this 
proposed rule.
    The proposed amendments were unanimously recommended by the Board 
following deliberations at a public meeting held on December 4, 2017. 
The proposed rule would amend the Order by: (1) Changing the nomination 
deadline for Board nominees from January 20 to April 1, the deadline 
for presenting nominees to USDA for selection from February 20 to June 
1, and the start of the term of office from March 1 to August 1; (2) 
adding the ability to propose future revisions to Board nomination 
methods by developing regulations through informal rulemaking; and (3) 
adding the ability to propose future revisions to the start date of the 
Board's term of office by developing regulations through informal 
rulemaking.
    In addition to these proposals, AMS proposes to make any additional 
changes to the Order as may be necessary to conform to any amendment 
that may result from this rulemaking action.

Proposal 1--Nomination and Term of Office Dates

    Section 981.32 provides that, each year, nominees for open Board 
member and alternate member positions shall be chosen by ballot 
delivered to the Board. In support of this nomination process, Sec.  
981.32 further provides that on or before January 20 of each year, the 
Board shall mail to all handlers and growers, other than the 
cooperative(s) of record, the required ballots with all necessary 
voting information; and that nominees chosen by the Board in this 
manner shall be submitted by the Board to the USDA Secretary of 
Agriculture (Secretary) on or before February 20 of each year. If a 
nomination for any Board member or alternate is not received by the 
Secretary on or before February 20, the Secretary may select, without 
nomination, such member or alternate from persons belonging to the 
group to be represented.
    Section 981.33 provides that the term of office of Board members 
and alternate members selected by the Secretary pursuant to Sec.  
981.32 shall begin on March 1.

[[Page 31475]]

    This proposal would amend Sec.  981.32 by changing the nomination 
deadline for Board nominees from January 20 to April 1 and the deadline 
for presenting nominees for selection to the Secretary from February 20 
to June 1. It would also amend Sec.  981.33 by changing the start of 
the term of office from March 1 to August 1. A clarifying change would 
also be made to Sec.  981.33 to remove language related to a previous 
amendment to the Order that is no longer needed.
    Changing the two nomination process dates from January 20 and 
February 20 to April 1 and June 1, respectively, could provide several 
benefits. First, preparing ballots to mail in January is very 
challenging for the Board because it prepares for and hosts major 
industry activities in December, including a Board meeting and a large, 
multi-day almond conference that is held at an off-site location. The 
Board office is also closed the last week of December every year. 
Because of these year-end activities, it is difficult for the Board to 
prepare for a nomination mailing in January. Changing the nomination 
dates would allow the Board sufficient time to prepare nominations for 
mailing.
    In addition, the Board believes that more industry members might 
participate in the nomination process if it occurred later in the 
calendar year. This is because many industry members are busy with or 
returning from winter holiday season activities in December and January 
and, therefore, may be less likely to participate in nomination 
proceedings that are occurring at that time.
    In addition to the challenges the Board faces in meeting the 
January nomination deadline, there is currently only one month between 
the deadline for mailing ballots (January 20) and the date that the 
Board must process returned ballots and prepare a nomination package to 
submit to USDA (February 20). In addition to this short timeframe, 
there are only 9 or 10 days between the February 20 deadline by which 
the Board must submit nominations to USDA and the March 1 term of 
office start date. This short timeframe does not provide adequate time 
for the nominations to be processed and new member selections to be 
made prior to the new term of office. The proposed changes would 
provide 60 days between the April 1 and June 1 nomination process 
deadline dates, compared to the existing 30 days between the current 
dates of January 20 and February 20. The proposed changes would also 
provide 60 days between the June 1 deadline for the Board to submit the 
nominations to USDA and the new August 1 term of office start date, 
compared to the existing 10 days between the current dates of February 
20 and March 1. Extending the times between these dates would improve 
the overall preparation and processing of nominations.
    The proposal to change the term of office start date would improve 
Board cohesiveness because the Board would then operate on the same 
timeline as the crop year and the Board's committees. The Order's crop 
year is defined in Sec.  981.19 as August 1 through July 31. The Board 
is responsible for all program planning and budgeting for each crop 
year. However, with the current term of office beginning on March 1, 
Board members responsible for annual program planning and budget 
recommendations leave office prior to the end of the crop year; 
conversely, new Board members also begin serving in the middle of a 
crop year. Starting the term of office on August 1 would allow Board 
members to administer activities for an entire crop year as well as 
provide valuable insight related to the next crop year's activities. In 
addition, changing the start of the term of office to August 1 would 
align with the appointment of individuals to various committees that 
operate under the Board, which occurs at the beginning of each crop 
year.
    Changing the term of office start date from March 1 to August 1 
would require current members and alternates to serve a few additional 
months, beyond the original March 1 start date, until their respective 
successors were selected and qualified pursuant to Sec.  981.33(a).
    These changes to the nomination and term of office dates that 
appear in two sections of the Order (Sec. Sec.  981.32 and 981.33) are 
being proposed as a single amendment because of the relation of the 
nomination process to the start date of the term of office; that is, if 
the nomination process dates are changed to occur later in the calendar 
year (on April 1 and June 1, respectively, as described above), then 
the start date of the term of office would also need to change from 
March 1 to a date that would follow the new nomination process dates. 
As noted above, the Board recommended the term of office start date be 
changed to August 1.

Proposal 2--Regulation Authority for Nomination Methods

    Section 981.32 provides the methods by which nominations for open 
Board member and alternate member positions shall be chosen, including 
the dates by which (1) ballots and voting information shall be mailed 
by the Board to all handlers and growers, other than cooperative(s) of 
record, and (2) nominations shall be submitted by the Board to the 
Secretary. Changes to these dates are included in Proposal 1 above (to 
change from January 20 to April 1 and from February 20 to June 1, 
respectively).
    This proposal would change Sec.  981.32 by adding authority to 
modify the nomination methods described in paragraph (a) through the 
future development of regulations using the informal rulemaking 
process. Currently, changes to the nomination methods require formal 
rulemaking. The Board would still be required to discuss future 
proposed changes at its meetings and to vote on whether to recommend 
changes to USDA. If amended, future changes would still require notice 
be given to the public with an opportunity for the public to comment on 
the proposed changes. However, it is anticipated that this proposed 
amendment would streamline future changes to the Order by allowing such 
changes to be proposed and finalized through the use of informal 
rulemaking.

Proposal 3--Regulation Authority for Term of Office Start Date

    Section 981.33 provides that the term of office of Board members 
and alternate members selected by the Secretary pursuant to Sec.  
981.32 shall begin on March 1. A change to this term of office start 
date is included in Proposal 1 above (to change from March 1 to August 
1).
    This proposal would change Sec.  981.33 by adding authority to 
modify the term of office start date through the future development of 
regulations using the informal rulemaking process. Currently, changes 
to the term of office start date require formal rulemaking. The Board 
would still be required to discuss a future proposed change at its 
meetings and to vote on whether to recommend a change to USDA. If 
amended, a future change to the term of office start date would still 
require notice be given to the public with an opportunity for the 
public to comment on the proposed change. However, it is anticipated 
that this proposed amendment would streamline future changes to the 
Order by allowing such changes to be proposed and finalized through the 
use of informal rulemaking.

Initial Regulatory Flexibility Analysis

    Pursuant to the 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 initial regulatory flexibility analysis.

[[Page 31476]]

    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 
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 
entities 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 entities according to the SBA definition.
    The proposed amendments would change the dates associated with the 
process to nominate Board members and alternates as well as the start 
of the term of office of Board members. The proposed amendments would 
also add authority to allow future revisions of the nomination methods 
and term of office dates through the development of regulations using 
informal rulemaking. These amendments would improve the nomination 
process, align the term of office with the crop year and appointment of 
Board committees, and streamline the process for making similar changes 
in the future.
    The Board's proposed amendments were unanimously recommended at a 
public meeting of the Board on December 4, 2017. The proposed 
amendments are administrative in nature; therefore, if any or all of 
the proposals are approved in referendum, there should be no economic 
impact on growers or handlers. Changing the nomination dates could 
encourage greater industry participation on the Board because the 
timing of the current nominations occurs immediately after the winter 
holiday season, when many industry members are just returning to their 
operations and may be less inclined to participate. The changes to the 
nomination process dates and the term of office start date are expected 
to streamline and improve operations of the Board. Adding authority to 
allow the development of regulations through informal rulemaking for 
making future changes to the nomination methods and term of office 
start date could reduce the time it takes to implement the changes, 
thereby allowing the Board to function more effectively.
    Alternatives to the proposals, including recommending no changes, 
were considered. However, the Board believes that changing the 
nomination process dates and term of office start date, as well as 
adding authority to make similar changes in the future by creating 
regulations through informal rulemaking, will be beneficial to the 
industry by enhancing Board operations and effectiveness.

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 are necessary as 
a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large California 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 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 action.
    The Board's meeting was widely publicized throughout the almond 
industry. All interested persons were invited to attend the meeting and 
encouraged to participate in Board deliberations on all issues. Like 
all Board meetings, the December 4, 2017, meeting was public, and all 
entities, both large and small, were encouraged to express their views 
on these proposals.
    Finally, interested persons are invited to submit comments on the 
proposed amendments to the Order, including comments on the regulatory 
and information collection impacts of this action on small businesses.
    Following analysis of any comments received on the amendments 
proposed in this proposed rule, AMS will evaluate all available 
information and determine whether to proceed. If appropriate, a 
proposed rule and notice

[[Page 31477]]

of referendum would be issued, and growers would be provided the 
opportunity to vote for or against the proposed amendments. Information 
about the referendum, including dates and voter eligibility 
requirements, would be published in a future issue of the Federal 
Register. A final rule would then be issued to effectuate any 
amendments favored by growers participating in the referendum.
    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.

General Findings

    The findings hereinafter set forth are supplementary to the 
findings and determinations which were previously made in connection 
with the issuance of Marketing Order 981; 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. Marketing Order 981 as hereby proposed to be amended and all of 
the terms and conditions thereof, would tend to effectuate the declared 
policy of the Act;
    2. Marketing Order 981 as hereby proposed to be amended regulates 
the handling of almonds grown in California and is applicable only to 
persons in the respective classes of commercial and industrial activity 
specified in the Marketing Order;
    3. Marketing Order 981 as hereby proposed to be 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 marketing orders applicable to 
subdivisions of the production area would not effectively carry out the 
declared policy of the Act;
    4. Marketing Order 981 as hereby proposed to be 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 almonds produced 
or packed in the production area; and
    5. All handling of almonds produced or packed in the production 
area as defined in Marketing Order 981 is in the current of interstate 
or foreign commerce or directly burdens, obstructs, or affects such 
commerce.
    A 60-day comment period is provided to allow interested persons to 
respond to these proposals. Any comments received on the amendments 
proposed in this proposed rule will be analyzed, and if AMS determines 
to proceed based on all the information presented, a grower referendum 
would be conducted to determine grower support for the proposed 
amendments. If appropriate, a final rule would then be issued to 
effectuate the amendments favored by growers participating in the 
referendum.

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. Amend Sec.  981.32 by revising paragraph (a)(1) and adding paragraph 
(a)(3) to read as follows:


Sec.  981.32  Nominations.

    (a) Method. (1) Each year the terms of office of three of the 
members elected pursuant to Sec.  981.31(a) and (b) shall expire, 
except every third year when the term of office for two of those 
members shall expire. Nominees for each respective member and alternate 
member shall be chosen by ballot delivered to the Board. Nominees 
chosen by the Board in this manner shall be submitted by the Board to 
the Secretary on or before June 1 of each year together with such 
information as the Secretary may require. If a nomination for any Board 
member or alternate is not received by the Secretary on or before June 
1, the Secretary may select such member or alternate from persons 
belonging to the group to be represented without nomination. The Board 
shall mail to all handlers and growers, other than the cooperative(s) 
of record, the required ballots with all necessary voting information 
including the names of incumbents willing to accept renomination, and, 
to such growers, the name of any person proposed for nomination in a 
petition signed by at least 15 such growers and filed with the Board on 
or before April 1. Distribution of ballots shall be announced by press 
release, furnishing pertinent information on balloting, issued by the 
Board through newspapers and other publications having general 
circulation in the almond producing areas.
* * * * *
    (3) The Board may recommend, subject to the approval of the 
Secretary, a change to the nomination method, should the Board 
determine that a revision is necessary.
* * * * *
0
3. Amend Sec.  981.33 by revising the first sentence of paragraphs (a) 
and (b), revising the last sentence of paragraph (c), and adding 
paragraph (d) to read as follows:


Sec.  981.33  Selection and term of office.

    (a) Members and their respective alternates for positions open on 
the Board shall be selected by the Secretary from persons nominated 
pursuant to Sec.  981.32, or, at the discretion of the Secretary, from 
other qualified persons, for a term of office beginning August 1. * * *
    (b) The term of office of members of the Board shall be for a 
period of three years beginning on August 1 of the years selected 
except where otherwise provided. * * *
    (c) * * * This limitation on tenure shall not apply to alternate 
members.
    (d) The Board may recommend, subject to approval of the Secretary, 
revisions to the start date for the term of office of members of the 
Board.

    Dated: July 2, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-14512 Filed 7-5-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                             Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Proposed Rules                                                31473

                                                 Committee meetings, the June 8, 2017,                    container may be used to pack any poly                22.813 x 14.688 x 7.0 up to 7.936
                                                 meeting was a public meeting, and all                    or mesh bags authorized in this section,              inches;
                                                 entities, both large and small, were able                or bulk fruit;                                          (xvii) Fiberboard one piece display
                                                 to express their views on this issue.                       (v) Rectangular or octagonal 2⁄3                   container with approximate inside
                                                 Finally, interested persons are invited to               fiberboard crib with approximate                      dimensions of 23 inches x 15 inches x
                                                 submit comments on this proposed rule,                   dimensions of 46 to 471⁄2 inches in                   91⁄2 up to 101⁄2 inches in depth;
                                                 including the regulatory and                             length, 37 to 38 inches in width, and 24                (xviii) Such types and sizes of
                                                 information collection impacts of this                   inches in height: Provided, That the crib             containers as may be approved by the
                                                 action on small businesses.                              has a Mullen or Cady test of at least                 committee for testing in connection
                                                    A small business guide on complying                   1,300 pounds, and that it is used only                with a research project conducted by or
                                                 with fruit, vegetable, and specialty crop                once for the shipment of citrus fruit:                in cooperation with the committee:
                                                 marketing agreements and orders may                      And Provided further, That the                        Provided, That the handling of each lot
                                                 be viewed at: http://www.ams.usda.gov/                   container may be used to pack any poly                of fruit in such test containers shall be
                                                 rules-regulations/moa/small-businesses.                  or mesh bags authorized in this section,              subject to prior approval and under the
                                                 Any questions about the compliance                       or bulk fruit;                                        supervision of the committee.
                                                 guide should be sent to Richard Lower                       (vi) Octagonal fiberboard crib with                *     *      *     *    *
                                                 at the previously mentioned address in                   approximate dimensions of 46 to 471⁄2                   Dated: July 2, 2018.
                                                 the FOR FURTHER INFORMATION CONTACT                      inches in width, 37 to 38 inches in                   Bruce Summers,
                                                 section.                                                 depth, and 26 to 261⁄2 inches in height:
                                                    A 30-day comment period is provided                                                                         Administrator, Agricultural Marketing
                                                                                                          Provided, That the crib has a Mullen or               Service.
                                                 to allow interested persons to respond                   Cady test of at least 1,300 pounds, and
                                                 to this proposal. All written comments                                                                         [FR Doc. 2018–14511 Filed 7–5–18; 8:45 am]
                                                                                                          that it is used only once for the
                                                 timely received will be considered                       shipment of citrus fruit: And Provided                BILLING CODE 3410–02–P
                                                 before a final determination is made on                  further, That the crib may be used to
                                                 this matter.                                             pack any poly or mesh bags authorized
                                                                                                                                                                DEPARTMENT OF AGRICULTURE
                                                 List of Subjects in 7 CFR Part 906                       in this section, or bulk fruit;
                                                                                                             (vii) Fiberboard box holding two                   Agricultural Marketing Service
                                                   Grapefruit, Marketing agreements,                      layers of fruit, with approximate
                                                 Oranges, Reporting and recordkeeping                     dimensions of 23 inches in length, 151⁄2
                                                 requirements.                                                                                                  7 CFR Part 981
                                                                                                          inches in width, and 7 inches in depth;
                                                   For the reasons set forth in the                          (viii) Reusable collapsible plastic                [AMS–SC–18–0018; SC18–981–3]
                                                 preamble, 7 CFR part 906 is proposed to                  container with approximate dimensions
                                                 be amended as follows:                                                                                         Handling of Almonds Grown in
                                                                                                          of 23 inches in length, 15 inches in
                                                                                                                                                                California
                                                                                                          width, and 7 to 11 inches in depth;
                                                 PART 906—ORANGES AND
                                                                                                             (ix) Reusable collapsible plastic bin              AGENCY:  Agricultural Marketing Service,
                                                 GRAPEFRUIT GROWN IN LOWER RIO
                                                                                                          with approximate dimensions of 363⁄4 x                USDA.
                                                 GRANDE VALLEY IN TEXAS
                                                                                                          443⁄4 x 27 inches;                                    ACTION: Proposed rule.
                                                 ■ 1. The authority citation for 7 CFR                       (x) Octagonal bulk triple wall
                                                 part 906 continues to read as follows:                   fiberboard crib with approximate                      SUMMARY:   This proposed rule invites
                                                                                                          dimensions of 373⁄4 inches in length, 25              comments on proposed amendments to
                                                     Authority: 7 U.S.C. 601–674.                                                                               Marketing Order No. 981, which
                                                                                                          inches in width, and 25 inches in
                                                 ■ 2. Revise § 906.340(a)(1) to read as                   height: Provided, That the container has              regulates the handling of almonds
                                                 follows:                                                 a Mullen or Cady test of at least 1,100               grown in California. The proposed
                                                                                                          pounds: And Provided further, That the                amendments would change the dates
                                                 § 906.340 Container, pack, and container                                                                       associated with the process to nominate
                                                 marking regulations.                                     container may be used to pack any poly
                                                                                                          or mesh bags authorized in this section,              members to the Almond Board of
                                                    (a) * * *                                                                                                   California (Board) as well as the start of
                                                    (1) Containers. (i) Closed fiberboard                 or bulk fruit;
                                                                                                             (xi) Bag having the capacity of 15                 the term of office of members of the
                                                 carton with approximate inside
                                                                                                          pounds of fruit, either in a combination              Board. The proposed amendments
                                                 dimensions of 131⁄4 x 101⁄2 x 71⁄4 inches:
                                                                                                          1⁄2 poly and 1⁄2 mesh bag or mesh bag;                would also add authority to allow future
                                                 Provided, That the container has a
                                                                                                             (xii) Reusable collapsible plastic mini            revisions of the nomination methods
                                                 Mullen or Cady test of at least 200
                                                                                                          bin with approximate dimensions of                    and term of office start date through the
                                                 pounds;
                                                                                                          391⁄2 inches in length, 24 inches in                  development of regulations using
                                                    (ii) Closed fully telescopic fiberboard
                                                                                                          width, and 301⁄2 inches in height:                    informal rulemaking.
                                                 carton with approximate inside
                                                 dimensions of 161⁄2 x 103⁄4 x 91⁄2 inches                Provided, That the container may be                   DATES: Comments must be received by
                                                 (Standard carton);                                       used to pack any poly or mesh bags                    September 4, 2018.
                                                    (iii) Poly or mesh bags having a                      authorized in this section, or bulk fruit;            ADDRESSES: Interested persons are
                                                 capacity of 4, 5, 8, 10, or 18 pounds of                    (xiii) Bag having the capacity of three            invited to submit written comments
                                                 fruit;                                                   pounds of fruit;                                      concerning this proposed rule.
                                                    (iv) Rectangular or octagonal bulk                       (xiv) Standard carton with                         Comments must be sent to the Docket
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                                                 fiberboard crib with approximate                         approximate inside dimensions of                      Clerk, Marketing Order and Agreement
                                                 dimensions of 46 to 471⁄2 inches in                      16.375 x 10.6875 x 10.25 inches;                      Division, Specialty Crops Program,
                                                 length, 37 to 38 inches in width, and 36                    (xv) 8⁄5 Body master carton with                   AMS, USDA, 1400 Independence
                                                 inches in height: Provided, That the                     approximate inside dimensions of                      Avenue SW, STOP 0237, Washington,
                                                 container has a Mullen or Cady test of                   19.5385 x 13.125 x 11.625 inches, one                 DC 20250–0237; Fax: (202) 720–8938; or
                                                 at least 1,300 pounds, and that it is used               piece;                                                internet: http://www.regulations.gov. All
                                                 only once for the shipment of citrus                        (xvi) Euro 8⁄5 (5 Down) with                       comments should reference the
                                                 fruit: And Provided further, That the                    approximate inside dimensions of                      document number and the date and


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                                                 31474                       Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Proposed Rules

                                                 page number of this issue of the Federal                 amendments. AMS would then issue a                    and economic impacts on affected
                                                 Register and will be made available for                  final rule effectuating any amendments                entities, and any other relevant matters.
                                                 public inspection in the Office of the                   approved by growers in the referendum.                   AMS has considered these factors and
                                                 Docket Clerk during regular business                        The Department of Agriculture                      has determined that the amendments
                                                 hours, or can be viewed at: http://                      (USDA) is issuing this proposed rule in               proposed are not unduly complex, and
                                                 www.regulations.gov. All comments                        conformance with Executive Orders                     the nature of the proposed amendments
                                                 submitted in response to this proposed                   13563 and 13175. This action falls                    is appropriate for utilizing the informal
                                                 rule will be included in the record and                  within a category of regulatory actions               rulemaking process to amend the Order.
                                                 will be made available to the public.                    that the Office of Management and                     A discussion of the potential regulatory
                                                 Please be advised that the identity of the               Budget (OMB) exempted from Executive                  and economic impacts on affected
                                                 individuals or entities submitting the                   Order 12866 review. Additionally,                     entities is discussed later in the ‘‘Initial
                                                 comments will be made public on the                      because this proposed rule does not                   Regulatory Flexibility Analysis’’ section
                                                 internet at the address provided above.                  meet the definition of a significant                  of this proposed rule.
                                                 FOR FURTHER INFORMATION CONTACT:                         regulatory action, it does not trigger the               The proposed amendments were
                                                 Debbie Wray, Senior Marketing                            requirements contained in Executive                   unanimously recommended by the
                                                 Specialist, or Julie Santoboni,                          Order 13771. See OMB’s Memorandum                     Board following deliberations at a
                                                                                                          titled ‘‘Interim Guidance Implementing                public meeting held on December 4,
                                                 Rulemaking Branch Chief, Marketing
                                                                                                          Section 2 of the Executive Order of                   2017. The proposed rule would amend
                                                 Order and Agreement Division,
                                                                                                          January 30, 2017, titled ‘Reducing                    the Order by: (1) Changing the
                                                 Specialty Crops Program, AMS, USDA,
                                                                                                          Regulation and Controlling Regulatory                 nomination deadline for Board
                                                 1400 Independence Avenue SW, Stop
                                                                                                          Costs’ ’’ (February 2, 2017).                         nominees from January 20 to April 1,
                                                 0237, Washington, DC 20250–0237;
                                                                                                             This proposed rule has been reviewed               the deadline for presenting nominees to
                                                 Telephone: (202) 720–2491, Fax: (202)
                                                                                                          under Executive Order 12988, Civil                    USDA for selection from February 20 to
                                                 720–8938, or Email: Debbie.Wray@
                                                                                                          Justice Reform. This proposed rule is                 June 1, and the start of the term of office
                                                 ams.usda.gov or Julie.Santoboni@
                                                                                                          not intended to have retroactive effect.              from March 1 to August 1; (2) adding
                                                 ams.usda.gov.
                                                                                                          This proposed rule shall not be deemed                the ability to propose future revisions to
                                                    Small businesses may request
                                                                                                          to preclude, preempt, or supersede any                Board nomination methods by
                                                 information on complying with this
                                                                                                          State program covering almonds grown                  developing regulations through informal
                                                 regulation by contacting Richard Lower,
                                                                                                          in California.                                        rulemaking; and (3) adding the ability to
                                                 Marketing Order and Agreement                               The Act provides that administrative               propose future revisions to the start date
                                                 Division, Specialty Crops Program,                       proceedings must be exhausted before                  of the Board’s term of office by
                                                 AMS, USDA, 1400 Independence                             parties may file suit in court. Under                 developing regulations through informal
                                                 Avenue SW, STOP 0237, Washington,                        section 608c(15)(A) of the Act, any                   rulemaking.
                                                 DC 20250–0237; Telephone: (202) 720–                     handler subject to an order may file                     In addition to these proposals, AMS
                                                 2491, Fax: (202) 720–8938, or Email:                     with USDA a petition stating that the                 proposes to make any additional
                                                 Richard.Lower@ams.usda.gov.                              order, any provision of the order, or any             changes to the Order as may be
                                                 SUPPLEMENTARY INFORMATION: This                          obligation imposed in connection with                 necessary to conform to any amendment
                                                 action, pursuant to 5 U.S.C. 553,                        the order is not in accordance with law               that may result from this rulemaking
                                                 proposes amendments to regulations                       and request a modification of the order               action.
                                                 issued to carry out a marketing order as                 or to be exempted therefrom. A handler
                                                 defined in 7 CFR 900.2(j). This proposed                 is afforded the opportunity for a hearing             Proposal 1—Nomination and Term of
                                                 rule is issued under Marketing Order                     on the petition. After the hearing, USDA              Office Dates
                                                 No. 981, as amended (7 CFR part 981),                    would rule on the petition. The Act                      Section 981.32 provides that, each
                                                 regulating the handling of almonds                       provides that the district court of the               year, nominees for open Board member
                                                 grown in California. Part 981 (referred to               United States in any district in which                and alternate member positions shall be
                                                 as the ‘‘Order’’) is effective under the                 the handler is an inhabitant, or has his              chosen by ballot delivered to the Board.
                                                 Agricultural Marketing Agreement Act                     or her principal place of business, has               In support of this nomination process,
                                                 of 1937, as amended (7 U.S.C. 601–674),                  jurisdiction to review USDA’s ruling on               § 981.32 further provides that on or
                                                 hereinafter referred to as the ‘‘Act.’’ The              the petition, provided an action is filed             before January 20 of each year, the
                                                 Board locally administers the Order and                  no later than 20 days after the date of               Board shall mail to all handlers and
                                                 is comprised of almond growers and                       entry of the ruling.                                  growers, other than the cooperative(s) of
                                                 handlers operating within California.                       Section 1504 of the Food,                          record, the required ballots with all
                                                    Section 608c(17) of the Act and the                   Conservation, and Energy Act of 2008                  necessary voting information; and that
                                                 applicable rules of practice and                         (2008 Farm Bill) (Pub. L. 110–246)                    nominees chosen by the Board in this
                                                 procedure governing the formulation of                   amended section 8c(17) of the Act,                    manner shall be submitted by the Board
                                                 marketing agreements and orders (7 CFR                   which in turn required the addition of                to the USDA Secretary of Agriculture
                                                 part 900) authorizes amendment of the                    supplemental rules of practice to 7 CFR               (Secretary) on or before February 20 of
                                                 Order through this informal rulemaking                   part 900 (73 FR 49307; August 21,                     each year. If a nomination for any Board
                                                 action. The Agricultural Marketing                       2008). The amendment of section 8c(17)                member or alternate is not received by
                                                 Service (AMS) will consider comments                     of the Act and additional supplemental                the Secretary on or before February 20,
                                                 received in response to this proposed                    rules of practice authorize the use of                the Secretary may select, without
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                                                 rule and, based on all the information                   informal rulemaking (5 U.S.C. 553) to                 nomination, such member or alternate
                                                 available, will determine if the Order                   amend Federal fruit, vegetable, and nut               from persons belonging to the group to
                                                 amendments are warranted. If AMS                         marketing agreements and orders. USDA                 be represented.
                                                 determines amendment of the Order is                     may use informal rulemaking to amend                     Section 981.33 provides that the term
                                                 warranted, a subsequent proposed rule                    marketing orders based on its                         of office of Board members and alternate
                                                 and notice of referendum would be                        consideration of the nature and                       members selected by the Secretary
                                                 issued, and growers would be allowed                     complexity of the proposed                            pursuant to § 981.32 shall begin on
                                                 to vote for or against the proposed Order                amendments, the potential regulatory                  March 1.


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                                                                             Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Proposed Rules                                          31475

                                                    This proposal would amend § 981.32                    August 1 term of office start date,                   cooperative(s) of record, and (2)
                                                 by changing the nomination deadline                      compared to the existing 10 days                      nominations shall be submitted by the
                                                 for Board nominees from January 20 to                    between the current dates of February                 Board to the Secretary. Changes to these
                                                 April 1 and the deadline for presenting                  20 and March 1. Extending the times                   dates are included in Proposal 1 above
                                                 nominees for selection to the Secretary                  between these dates would improve the                 (to change from January 20 to April 1
                                                 from February 20 to June 1. It would                     overall preparation and processing of                 and from February 20 to June 1,
                                                 also amend § 981.33 by changing the                      nominations.                                          respectively).
                                                 start of the term of office from March 1                    The proposal to change the term of                    This proposal would change § 981.32
                                                 to August 1. A clarifying change would                   office start date would improve Board                 by adding authority to modify the
                                                 also be made to § 981.33 to remove                       cohesiveness because the Board would                  nomination methods described in
                                                 language related to a previous                           then operate on the same timeline as the              paragraph (a) through the future
                                                 amendment to the Order that is no                        crop year and the Board’s committees.                 development of regulations using the
                                                 longer needed.                                           The Order’s crop year is defined in                   informal rulemaking process. Currently,
                                                    Changing the two nomination process                   § 981.19 as August 1 through July 31.                 changes to the nomination methods
                                                 dates from January 20 and February 20                    The Board is responsible for all program              require formal rulemaking. The Board
                                                 to April 1 and June 1, respectively,                     planning and budgeting for each crop                  would still be required to discuss future
                                                 could provide several benefits. First,                   year. However, with the current term of               proposed changes at its meetings and to
                                                 preparing ballots to mail in January is                  office beginning on March 1, Board                    vote on whether to recommend changes
                                                 very challenging for the Board because                   members responsible for annual                        to USDA. If amended, future changes
                                                 it prepares for and hosts major industry                 program planning and budget                           would still require notice be given to the
                                                 activities in December, including a                      recommendations leave office prior to                 public with an opportunity for the
                                                 Board meeting and a large, multi-day                     the end of the crop year; conversely,                 public to comment on the proposed
                                                 almond conference that is held at an off-                new Board members also begin serving                  changes. However, it is anticipated that
                                                 site location. The Board office is also                  in the middle of a crop year. Starting the            this proposed amendment would
                                                 closed the last week of December every                   term of office on August 1 would allow                streamline future changes to the Order
                                                 year. Because of these year-end                          Board members to administer activities                by allowing such changes to be
                                                 activities, it is difficult for the Board to             for an entire crop year as well as                    proposed and finalized through the use
                                                 prepare for a nomination mailing in                      provide valuable insight related to the               of informal rulemaking.
                                                 January. Changing the nomination dates                   next crop year’s activities. In addition,
                                                                                                                                                                Proposal 3—Regulation Authority for
                                                 would allow the Board sufficient time to                 changing the start of the term of office
                                                                                                                                                                Term of Office Start Date
                                                 prepare nominations for mailing.                         to August 1 would align with the
                                                    In addition, the Board believes that                  appointment of individuals to various                    Section 981.33 provides that the term
                                                 more industry members might                              committees that operate under the                     of office of Board members and alternate
                                                 participate in the nomination process if                 Board, which occurs at the beginning of               members selected by the Secretary
                                                 it occurred later in the calendar year.                  each crop year.                                       pursuant to § 981.32 shall begin on
                                                 This is because many industry members                       Changing the term of office start date             March 1. A change to this term of office
                                                 are busy with or returning from winter                   from March 1 to August 1 would require                start date is included in Proposal 1
                                                 holiday season activities in December                    current members and alternates to serve               above (to change from March 1 to
                                                 and January and, therefore, may be less                  a few additional months, beyond the                   August 1).
                                                 likely to participate in nomination                      original March 1 start date, until their                 This proposal would change § 981.33
                                                 proceedings that are occurring at that                   respective successors were selected and               by adding authority to modify the term
                                                 time.                                                    qualified pursuant to § 981.33(a).                    of office start date through the future
                                                    In addition to the challenges the                        These changes to the nomination and                development of regulations using the
                                                 Board faces in meeting the January                       term of office dates that appear in two               informal rulemaking process. Currently,
                                                 nomination deadline, there is currently                  sections of the Order (§§ 981.32 and                  changes to the term of office start date
                                                 only one month between the deadline                      981.33) are being proposed as a single                require formal rulemaking. The Board
                                                 for mailing ballots (January 20) and the                 amendment because of the relation of                  would still be required to discuss a
                                                 date that the Board must process                         the nomination process to the start date              future proposed change at its meetings
                                                 returned ballots and prepare a                           of the term of office; that is, if the                and to vote on whether to recommend
                                                 nomination package to submit to USDA                     nomination process dates are changed to               a change to USDA. If amended, a future
                                                 (February 20). In addition to this short                 occur later in the calendar year (on                  change to the term of office start date
                                                 timeframe, there are only 9 or 10 days                   April 1 and June 1, respectively, as                  would still require notice be given to the
                                                 between the February 20 deadline by                      described above), then the start date of              public with an opportunity for the
                                                 which the Board must submit                              the term of office would also need to                 public to comment on the proposed
                                                 nominations to USDA and the March 1                      change from March 1 to a date that                    change. However, it is anticipated that
                                                 term of office start date. This short                    would follow the new nomination                       this proposed amendment would
                                                 timeframe does not provide adequate                      process dates. As noted above, the                    streamline future changes to the Order
                                                 time for the nominations to be                           Board recommended the term of office                  by allowing such changes to be
                                                 processed and new member selections                      start date be changed to August 1.                    proposed and finalized through the use
                                                 to be made prior to the new term of                                                                            of informal rulemaking.
                                                 office. The proposed changes would                       Proposal 2—Regulation Authority for
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                                                 provide 60 days between the April 1                      Nomination Methods                                    Initial Regulatory Flexibility Analysis
                                                 and June 1 nomination process deadline                     Section 981.32 provides the methods                    Pursuant to the requirements set forth
                                                 dates, compared to the existing 30 days                  by which nominations for open Board                   in the Regulatory Flexibility Act (RFA)
                                                 between the current dates of January 20                  member and alternate member positions                 (5 U.S.C. 601–612), AMS has considered
                                                 and February 20. The proposed changes                    shall be chosen, including the dates by               the economic impact of this action on
                                                 would also provide 60 days between the                   which (1) ballots and voting information              small entities. Accordingly, AMS has
                                                 June 1 deadline for the Board to submit                  shall be mailed by the Board to all                   prepared this initial regulatory
                                                 the nominations to USDA and the new                      handlers and growers, other than                      flexibility analysis.


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                                                 31476                       Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Proposed Rules

                                                    The purpose of the RFA is to fit                      database of USDA’s Foreign Agricultural               thereby allowing the Board to function
                                                 regulatory actions to the scale of                       Service showed that the value of                      more effectively.
                                                 businesses subject to such actions in                    almond exports from August 2016 to                      Alternatives to the proposals,
                                                 order that small businesses will not be                  July 2017 (combining shelled and                      including recommending no changes,
                                                 unduly or disproportionately burdened.                   inshell almonds) was $4.072 billion.                  were considered. However, the Board
                                                 Marketing orders issued pursuant to the                  The quantity of almond exports over                   believes that changing the nomination
                                                 Act, and rules issued thereunder, are                    that time period was 1.406 billion                    process dates and term of office start
                                                 unique in that they are brought about                    pounds, combining shelled exports and                 date, as well as adding authority to
                                                 through group action of essentially                      the shelled equivalent of inshell                     make similar changes in the future by
                                                 small entities acting on their own                       exports. Dividing the export value by                 creating regulations through informal
                                                 behalf.                                                  the quantity yields a unit value of $2.90             rulemaking, will be beneficial to the
                                                    There are approximately 6,800                         per pound. Subtracting this figure from               industry by enhancing Board operations
                                                 almond growers in the production area                    the NASS 2016 estimate of season                      and effectiveness.
                                                 and approximately 100 almond handlers                    average grower price per pound ($2.44)
                                                 subject to regulation under the Order.                                                                         Paperwork Reduction Act
                                                                                                          yields $0.46 per pound as a
                                                 Small agricultural service firms are                     representative grower-handler margin.                   In accordance with the Paperwork
                                                 defined by the Small Business                            Applying the $2.90 representative                     Reduction Act of 1995 (44 U.S.C.
                                                 Administration (SBA) as those having                     handler price per pound to 2016–17                    Chapter 35), the Order’s information
                                                 annual receipts of less than $7,500,000,                 handler shipment quantities provided                  collection requirements have been
                                                 and small agricultural producers are                     by the Board showed that approximately                previously approved by OMB and
                                                 defined as those having annual receipts                  40 percent of California’s almond                     assigned OMB No. 0581–0178
                                                 of less than $750,000 (13 CFR 121.201).                  handlers shipped almonds valued under                 (Vegetable and Specialty Crops). No
                                                    The National Agricultural Statistics                  $7,500,000 during the 2016–17 crop                    changes in those requirements are
                                                 Service (NASS) reported in its 2012                      year and would therefore be considered                necessary as a result of this action.
                                                 Agricultural Census that there were                      small entities according to the SBA                   Should any changes become necessary,
                                                 6,841 almond farms in the production                     definition.                                           they would be submitted to OMB for
                                                 area (California), of which 6,204 had                                                                          approval.
                                                                                                             The proposed amendments would
                                                 bearing acres. The following                                                                                     This proposed rule would impose no
                                                                                                          change the dates associated with the
                                                 computation provides an estimate of the                                                                        additional reporting or recordkeeping
                                                                                                          process to nominate Board members and
                                                 proportion of agricultural producers                                                                           requirements on either small or large
                                                                                                          alternates as well as the start of the term
                                                 (farms) and agricultural service firms                                                                         California almond handlers. As with all
                                                                                                          of office of Board members. The
                                                 (handlers) that would be considered                                                                            Federal marketing order programs,
                                                 small under the SBA definitions.                         proposed amendments would also add
                                                                                                                                                                reports and forms are periodically
                                                    The NASS Census data indicates that                   authority to allow future revisions of the
                                                                                                                                                                reviewed to reduce information
                                                 out of the 6,204 California farms with                   nomination methods and term of office
                                                                                                                                                                requirements and duplication by
                                                 bearing acres of almonds, 4,471 (72                      dates through the development of
                                                                                                                                                                industry and public sector agencies.
                                                 percent) have fewer than 100 bearing                     regulations using informal rulemaking.                  AMS is committed to complying with
                                                 acres.                                                   These amendments would improve the                    the E-Government Act, to promote the
                                                    For the almond industry’s most                        nomination process, align the term of                 use of the internet and other
                                                 recently reported crop year (2016),                      office with the crop year and                         information technologies to provide
                                                 NASS reported an average yield of 2,280                  appointment of Board committees, and                  increased opportunities for citizen
                                                 pounds per acre and a season average                     streamline the process for making                     access to Government information and
                                                 grower price of $2.44 per pound. A 100-                  similar changes in the future.                        services, and for other purposes.
                                                 acre farm with an average yield of 2,280                    The Board’s proposed amendments                      USDA has not identified any relevant
                                                 pounds per acre would produce about                      were unanimously recommended at a                     Federal rules that duplicate, overlap, or
                                                 228,000 pounds of almonds. At $2.44                      public meeting of the Board on                        conflict with this action.
                                                 per pound, that farm’s production                        December 4, 2017. The proposed                          The Board’s meeting was widely
                                                 would be valued at $556,320. The                         amendments are administrative in                      publicized throughout the almond
                                                 Census of Agriculture indicates that the                 nature; therefore, if any or all of the               industry. All interested persons were
                                                 majority of California’s almond farms                    proposals are approved in referendum,                 invited to attend the meeting and
                                                 are smaller than 100 acres; therefore, it                there should be no economic impact on                 encouraged to participate in Board
                                                 could be concluded that the majority of                  growers or handlers. Changing the                     deliberations on all issues. Like all
                                                 growers had annual receipts from the                     nomination dates could encourage                      Board meetings, the December 4, 2017,
                                                 sale of almonds in 2016–17 of less than                  greater industry participation on the                 meeting was public, and all entities,
                                                 $556,320, which is below the SBA                         Board because the timing of the current               both large and small, were encouraged
                                                 threshold of $750,000. Thus, over 70                     nominations occurs immediately after                  to express their views on these
                                                 percent of California’s almond growers                   the winter holiday season, when many                  proposals.
                                                 would be classified as small entities                    industry members are just returning to                  Finally, interested persons are invited
                                                 according to SBA’s definition.                           their operations and may be less                      to submit comments on the proposed
                                                    To estimate the proportion of almond                  inclined to participate. The changes to               amendments to the Order, including
                                                 handlers that would be considered                        the nomination process dates and the                  comments on the regulatory and
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                                                 small businesses, it was assumed that                    term of office start date are expected to             information collection impacts of this
                                                 the unit value per shelled pound of                      streamline and improve operations of                  action on small businesses.
                                                 almonds exported in a particular year                    the Board. Adding authority to allow the                Following analysis of any comments
                                                 could serve as a representative almond                   development of regulations through                    received on the amendments proposed
                                                 price at the handler level. A unit value                 informal rulemaking for making future                 in this proposed rule, AMS will
                                                 for a commodity is the value of exports                  changes to the nomination methods and                 evaluate all available information and
                                                 divided by the quantity. Data from the                   term of office start date could reduce the            determine whether to proceed. If
                                                 Global Agricultural Trade System                         time it takes to implement the changes,               appropriate, a proposed rule and notice


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                                                                             Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Proposed Rules                                                 31477

                                                 of referendum would be issued, and                       commerce or directly burdens,                          issued by the Board through newspapers
                                                 growers would be provided the                            obstructs, or affects such commerce.                   and other publications having general
                                                 opportunity to vote for or against the                      A 60-day comment period is provided                 circulation in the almond producing
                                                 proposed amendments. Information                         to allow interested persons to respond                 areas.
                                                 about the referendum, including dates                    to these proposals. Any comments                       *      *    *     *    *
                                                 and voter eligibility requirements,                      received on the amendments proposed                       (3) The Board may recommend,
                                                 would be published in a future issue of                  in this proposed rule will be analyzed,                subject to the approval of the Secretary,
                                                 the Federal Register. A final rule would                 and if AMS determines to proceed based                 a change to the nomination method,
                                                 then be issued to effectuate any                         on all the information presented, a                    should the Board determine that a
                                                 amendments favored by growers                            grower referendum would be conducted                   revision is necessary.
                                                 participating in the referendum.                         to determine grower support for the
                                                    A small business guide on complying                                                                          *      *    *     *    *
                                                                                                          proposed amendments. If appropriate, a                 ■ 3. Amend § 981.33 by revising the first
                                                 with fruit, vegetable, and specialty crop                final rule would then be issued to
                                                 marketing agreements and orders may                                                                             sentence of paragraphs (a) and (b),
                                                                                                          effectuate the amendments favored by                   revising the last sentence of paragraph
                                                 be viewed at: http://www.ams.usda.gov/                   growers participating in the referendum.
                                                 rules-regulations/moa/small-businesses.                                                                         (c), and adding paragraph (d) to read as
                                                 Any questions about the compliance                       List of Subjects in 7 CFR Part 981                     follows:
                                                 guide should be sent to Richard Lower                      Almonds, Marketing agreements,                       § 981.33    Selection and term of office.
                                                 at the previously mentioned address in                   Nuts, Reporting and recordkeeping                         (a) Members and their respective
                                                 the FOR FURTHER INFORMATION CONTACT                      requirements.                                          alternates for positions open on the
                                                 section.                                                   For the reasons set forth in the                     Board shall be selected by the Secretary
                                                 General Findings                                         preamble, 7 CFR part 981 is proposed to                from persons nominated pursuant to
                                                                                                          be amended as follows:                                 § 981.32, or, at the discretion of the
                                                    The findings hereinafter set forth are
                                                 supplementary to the findings and                                                                               Secretary, from other qualified persons,
                                                                                                          PART 981—ALMONDS GROWN IN                              for a term of office beginning August 1.
                                                 determinations which were previously                     CALIFORNIA
                                                 made in connection with the issuance of                                                                         * * *
                                                 Marketing Order 981; and all said                                                                                  (b) The term of office of members of
                                                                                                          ■ 1. The authority citation for 7 CFR
                                                 previous findings and determinations                                                                            the Board shall be for a period of three
                                                                                                          part 981 continues to read as follows:
                                                 are hereby ratified and affirmed, except                                                                        years beginning on August 1 of the years
                                                                                                               Authority: 7 U.S.C. 601–674.                      selected except where otherwise
                                                 insofar as such findings and
                                                 determinations may be in conflict with                   ■ 2. Amend § 981.32 by revising                        provided. * * *
                                                 the findings and determinations set                      paragraph (a)(1) and adding paragraph                     (c) * * * This limitation on tenure
                                                 forth herein.                                            (a)(3) to read as follows:                             shall not apply to alternate members.
                                                    1. Marketing Order 981 as hereby                                                                                (d) The Board may recommend,
                                                                                                          § 981.32    Nominations.                               subject to approval of the Secretary,
                                                 proposed to be amended and all of the
                                                 terms and conditions thereof, would                         (a) Method. (1) Each year the terms of              revisions to the start date for the term
                                                 tend to effectuate the declared policy of                office of three of the members elected                 of office of members of the Board.
                                                 the Act;                                                 pursuant to § 981.31(a) and (b) shall                    Dated: July 2, 2018.
                                                    2. Marketing Order 981 as hereby                      expire, except every third year when the               Bruce Summers,
                                                 proposed to be amended regulates the                     term of office for two of those members
                                                                                                                                                                 Administrator, Agricultural Marketing
                                                 handling of almonds grown in                             shall expire. Nominees for each                        Service.
                                                 California and is applicable only to                     respective member and alternate
                                                                                                                                                                 [FR Doc. 2018–14512 Filed 7–5–18; 8:45 am]
                                                 persons in the respective classes of                     member shall be chosen by ballot
                                                                                                                                                                 BILLING CODE 3410–02–P
                                                 commercial and industrial activity                       delivered to the Board. Nominees
                                                 specified in the Marketing Order;                        chosen by the Board in this manner
                                                    3. Marketing Order 981 as hereby                      shall be submitted by the Board to the                 DEPARTMENT OF AGRICULTURE
                                                 proposed to be amended is limited in                     Secretary on or before June 1 of each
                                                 application to the smallest regional                     year together with such information as                 Agricultural Marketing Service
                                                 production area which is practicable,                    the Secretary may require. If a
                                                 consistent with carrying out the                         nomination for any Board member or                     7 CFR Part 1220
                                                 declared policy of the Act, and the                      alternate is not received by the Secretary
                                                                                                          on or before June 1, the Secretary may                 [Doc. No. AMS–LPS–18–0015]
                                                 issuance of several marketing orders
                                                 applicable to subdivisions of the                        select such member or alternate from
                                                                                                                                                                 Soybean Promotion and Research:
                                                 production area would not effectively                    persons belonging to the group to be
                                                                                                                                                                 Amend the Order To Adjust
                                                 carry out the declared policy of the Act;                represented without nomination. The
                                                                                                                                                                 Representation on the United Soybean
                                                    4. Marketing Order 981 as hereby                      Board shall mail to all handlers and
                                                                                                                                                                 Board
                                                 proposed to be amended prescribes,                       growers, other than the cooperative(s) of
                                                 insofar as practicable, such different                   record, the required ballots with all                  AGENCY:  Agricultural Marketing Service,
                                                 terms applicable to different parts of the               necessary voting information including                 USDA.
                                                 production area as are necessary to give                 the names of incumbents willing to                     ACTION: Proposed rule.
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 due recognition to the differences in the                accept renomination, and, to such
                                                 production and marketing of almonds                      growers, the name of any person                        SUMMARY:   This proposed rule would
                                                 produced or packed in the production                     proposed for nomination in a petition                  adjust the number of members on the
                                                 area; and                                                signed by at least 15 such growers and                 United Soybean Board (Board) to reflect
                                                    5. All handling of almonds produced                   filed with the Board on or before April                changes in production levels that have
                                                 or packed in the production area as                      1. Distribution of ballots shall be                    occurred since the Board was last
                                                 defined in Marketing Order 981 is in the                 announced by press release, furnishing                 reapportioned in 2015. As required by
                                                 current of interstate or foreign                         pertinent information on balloting,                    the Soybean Promotion, Research, and


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Document Created: 2018-07-06 00:46:50
Document Modified: 2018-07-06 00:46:50
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 September 4, 2018.
ContactDebbie Wray, Senior 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 31473 
CFR AssociatedAlmonds; Marketing Agreements; Nuts and Reporting and Recordkeeping Requirements

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