83_FR_50726 83 FR 50531 - Pecans Grown in the States of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; Revision of Reporting Requirements

83 FR 50531 - Pecans Grown in the States of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; Revision of Reporting Requirements

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 195 (October 9, 2018)

Page Range50531-50533
FR Document2018-21841

This proposed rule invites comments on a proposal to revise the reporting requirements under the Federal marketing order for pecans. The revised reporting requirements would enable the American Pecan Council (Council) to collect information from handlers on the average handler price paid and the average shelled pecan yield. The Council would use this information to provide important statistical reports to the industry and meet requirements under the marketing order.

Federal Register, Volume 83 Issue 195 (Tuesday, October 9, 2018)
[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Proposed Rules]
[Pages 50531-50533]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21841]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 986

[Doc. No. AMS-SC-18-0019; SC18-986-1 PR]


Pecans Grown in the States of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; 
Revision of Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule invites comments on a proposal to revise 
the reporting requirements under the Federal marketing order for 
pecans. The revised reporting requirements would enable the American 
Pecan Council (Council) to collect information from handlers on the 
average handler price paid and the average shelled pecan yield. The 
Council would use this information to provide important statistical 
reports to the industry and meet requirements under the marketing 
order.

DATES: Comments must be received by November 8, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.regulations.gov. All 
comments submitted in response to this proposal will be included in the 
record and will be made available to the public. Please be advised that 
the identity of the individuals or entities submitting the comments 
will be made public on the internet at the address provided above.

FOR FURTHER INFORMATION CONTACT: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or email: Jennie.Varela@ams.usda.gov or 
Christian.Nissen@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202)720-8938, or email: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This proposed rule, pursuant to 5 U.S.C. 
553, would amend regulations issued to carry out a marketing order as 
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing 
Agreement and Order No. 986, (7 CFR part 986), regulating the handling 
of pecans grown in the states of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas. Part 
986 (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 Council locally administers 
the Order and is comprised of growers and handlers of pecans operating 
within the production area, and one accumulator and one public member.
    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) has exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017 titled `Reducing Regulation and Controlling Regulatory 
Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would revise the reporting requirements under 
the Order. If approved, this action would require all pecan handlers to 
report to the Council the average handler price paid and average 
shelled pecan yield as part of its existing year-end report. This 
information would be used by the Council to provide statistical reports 
to the industry and meet requirements under the Order. This proposal 
was unanimously recommended by the Council at its January 24, 2018, 
meeting and affirmed at its April 17, 2018 meeting.
    Section 986.76 provides the authority to collect reports on the 
quantity of pecans handled and other pertinent information as specified 
by the Council. Section 986.78 provides, with the

[[Page 50532]]

approval of the Secretary, authority for the Council to collect other 
reports and information from handlers needed to perform its duties. 
Section 986.175 specifies that handlers shall submit a year-end report 
to the Council that includes the amount of shelled and inshell pecans 
in inventory, total inventory calculated on an inshell basis, total 
weight and type of domestic pecans handled for the fiscal year, and 
information on assessments owed, paid, or due.
    This proposed rule would revise Sec.  986.175 to require that 
additional information be included in the year-end report. These 
revisions would require handlers to report the average price paid by 
handler and average yield of shelled pecans as part of the existing 
year-end report.
    At its January 24, 2018, and April 17, 2018, meetings, the Council 
reviewed the reporting requirements under the Order and determined 
there were additional data that would be beneficial to collect and 
summarize for the industry on an annual basis. Specifically, the 
Council recommended adding two additional items to be reported as part 
of the annual year-end reporting requirement, average price paid by 
handlers and shelled pecan yield.
    While the National Agricultural Statistics Service (NASS) reports 
average grower prices, this proposed reporting change would provide 
information regarding a handler's overall cost of acquiring pecans. 
Some handlers buy directly from growers, but many buy from other 
handlers or import pecans. Understanding the cost of pecans being 
handled is key information in determining the value of the overall crop 
and subsequent impacts on the market for pecans the following season. 
During the meetings, members noted that collecting the average price 
paid would also be necessary to complete the marketing policy report 
required under the Order. The marketing policy, as required by Sec.  
986.65, must include projected prices for the upcoming fiscal year, 
which would be influenced by handler costs. Further, the Council 
believes providing this information would improve the information 
available to the pecan industry. In particular the Council feels this 
information may give growers better information that can be used in 
making business decisions. The Council recommended adding this 
reporting requirement as there is currently no comprehensive source for 
handler cost information.
    The Council also discussed asking handlers to provide information 
regarding the weight of shelled pecans handled. During the formal 
rulemaking hearing to promulgate the Order, a witness testified 
regarding a conversion rate of multiplying the shelled weight by two to 
calculate inshell weight. That conversion rate was incorporated into 
the Order. Using this conversion, the weight of shelled pecans is 
approximately 50 percent of the inshell weight. This proportion is 
referred to as the ``shell-out'' or shelled pecan yield. However, there 
are natural variations in pecans and yield can vary depending on the 
thickness of the shells of different varieties and can also vary from 
year to year. These fluctuations make it challenging to accurately 
convert the total inshell volume harvested into shelled pounds, or 
shelled pounds into their inshell equivalent to provide an accurate 
estimate of overall supply.
    As with the handler price paid, there is currently no central 
industry source for information on the shelled pecan yield. The Council 
believes collecting this data would allow them to provide the industry 
with an updated annual average of this yield, which could be an 
indicator of quality, and over time provide a series of data on shelled 
pecan yield that would allow them to determine if changes to the 
current conversion rate are needed.
    Following the recommendation of the proposed changes made at the 
January 24, 2018 meeting, some members had questions about the specific 
data that would be collected. Based on these questions, the Council 
made some adjustments to the proposed form to clarify that handlers 
would report the average price paid for all inshell pecans purchased 
during the fiscal year, regardless of how the pecans are handled, 
including pecans from outside the production area. For the purposes of 
this form, the terms crop year and fiscal year are synonymous. The 
Council reviewed the revised reporting form at its April 17, 2018, 
meeting and affirmed that the new language met their original intent.
    The Council believes these revised reporting requirements are 
necessary to provide accurate reports to the industry regarding average 
price paid, yield for shelled pecans, and to meet requirements under 
the Order. The industry would use this information to complement the 
information provided by NASS in the development of its marketing policy 
and to collect accurate data to determine if the definition of weight 
in Sec.  986.43 needs to be amended.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 2,500 growers of pecans in the production 
area and approximately 250 handlers subject to regulation under the 
Order. Small agricultural growers are defined by the Small Business 
Administration as those having annual receipts less than $750,000, and 
small agricultural service firms are defined as those whose annual 
receipts are less than $7,500,000 (13 CFR 121.201).
    According to information from NASS, the average grower price for 
pecans during the 2016-2017 season was $2.59 per pound and 269 million 
pounds were utilized. The value for pecans that year totaled $697 
million ($2.59 per pound multiplied by 269 million pounds). Taking the 
total value of production for pecans and dividing it by the total 
number of pecan growers provides an average return per grower of 
$278,684. Using the average price and utilization information, and 
assuming a normal distribution among growers, the majority of growers 
receive less than $750,000 annually.
    Evidence presented at the formal rulemaking hearing indicates an 
average handler margin of $0.58 per pound. Adding this margin to the 
average grower price of $2.59 per pound of inshell pecans results in an 
estimated handler price of $3.17 per pound. With a total 2017 
production of 269 million pounds, the total value of production in 2017 
was $853 million ($3.17 per pound multiplied by 269 million pounds). 
Taking the total value of production for pecans and dividing it by the 
total number of pecan handlers provides an average return per handler 
of $3.4 million. Using this estimated price, the utilization volume, 
number of handlers, and assuming a normal distribution among handlers, 
the majority of handlers have annual receipts of less than $7,500,000. 
Thus, the majority of growers and handlers regulated under the Order 
may be classified as small entities.

[[Page 50533]]

    This proposed rule would revise the reporting requirements in Sec.  
986.175. This action would require all pecan handlers to report to the 
Council the average handler price paid and average shelled pecan yield 
as part of its existing year-end report. This information would be used 
by the Council to provide statistical reports to the industry and meet 
requirements under the Order. The authority for this proposal is 
provided in Sec. Sec.  986.76 and 986.78.
    It is not anticipated that this proposed rule would impose 
additional costs on handlers or growers, regardless of size. Council 
members, including those representing small businesses, indicated the 
average handler price paid and the average shelled pecan yield 
information is already recorded and maintained by handlers as a part of 
their daily business and the information should be readily accessible. 
Consequently, any additional costs associated with this change would be 
minimal and apply equally to all handlers.
    This action should also help the industry by providing additional 
data on pecans handled. This information would help with marketing and 
planning for the industry, as well as provide important information in 
preparing the annual marketing policy required by the Order. This 
change would also assist with the development of a dataset to determine 
if the conversion rate for shelled to inshell pecans needs to be 
revised. The benefits of this rule are expected to be equally available 
to all pecan growers and handlers, regardless of their size.
    The Council discussed other alternatives to this proposed action, 
including making no changes to the current reporting requirements. 
However, having the information on handler price paid and shelled pecan 
yield would provide important information for the industry.
    Another alternative considered was to create a new report for the 
collection of this information. However, the industry recently 
implemented a series of monthly reports that increased the reporting 
burden on handlers. Rather than add to the burden by creating a new 
report, the Council believed it would be more efficient to ask handlers 
for this information as part of the existing year-end reporting 
requirement. Therefore, the alternatives were rejected.
    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. 0581-0291 ``Federal 
Marketing Order for Pecans.'' This proposed rule would require changes 
to the Council's existing APC Form 7. However, the changes are minor 
and the currently approved burden for the form should not be altered by 
the proposed changes to the form. The revised form has been submitted 
to OMB for approval.
    As with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    Further, the Council's meetings were widely publicized throughout 
the pecan industry and all interested persons were invited to attend 
the meetings and participate in Council deliberations on all issues. 
Additionally, the Council's Committee meetings held on January 24, 
2018, and April 17, 2018, were also public meetings and all entities, 
both large and small, were able to express views on this issue. 
Finally, interested persons are invited to submit comments on this 
proposed rule, including the regulatory and information collection 
impacts of this proposed action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

List of Subjects in 7 CFR Part 986

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

    For the reasons set forth in the preamble, 7 CFR part 986 is 
proposed to be amended as follows:

PART 986--PECANS GROWN IN THE STATES OF ALABAMA, ARKANSAS, ARIZONA, 
CALIFORNIA, FLORIDA, GEORGIA, KANSAS, LOUISIANA, MISSOURI, 
MISSISSIPPI, NORTH CAROLINA, NEW MEXICO, OKLAHOMA, SOUTH CAROLINA, 
AND TEXAS

0
1. The authority citation for 7 CFR part 986 continues to read as 
follows:

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

0
2. Section 986.175 is amended by revising paragraphs (a) introductory 
text, (a)(7) and (8), and adding paragraphs (a)(9) and (10) to read as 
follows:


Sec.  986.175   Handler inventory.

    (a) Handlers shall submit to the Council a year end inventory 
report following August 31 each fiscal year. Handlers shall file such 
reports by September 10. Should September 10 fall on a weekend, reports 
are due by the first business day following September 10. Such reports 
shall be reported to the Council on APC Form 7. For the purposes of 
this form, ``crop year'' is the same as the ``fiscal year.'' The report 
shall include:
* * * * *
    (7) Total weight and type of domestic pecans handled for the fiscal 
year;
    (8) Total assessments owed, assessments paid to date, and remaining 
assessments due to be paid by the due date of the year-end inventory 
report for the fiscal year;
    (9) The average price paid for all inshell pecans purchased during 
the fiscal year regardless of how the pecans are handled, including 
pecans from outside the production area; and
    (10) The average yield of shelled pecans per pound of inshell 
pecans shelled during the fiscal year.

    Dated: October 3, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-21841 Filed 10-5-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                       Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules                                         50531

                                                before a final determination is made on                 statistical reports to the industry and               Council locally administers the Order
                                                this matter.                                            meet requirements under the marketing                 and is comprised of growers and
                                                                                                        order.                                                handlers of pecans operating within the
                                                List of Subjects in 7 CFR Part 985
                                                                                                        DATES: Comments must be received by                   production area, and one accumulator
                                                  Marketing agreements, Oils and fats,                  November 8, 2018.                                     and one public member.
                                                Reporting and recordkeeping                             ADDRESSES: Interested persons are                        The Department of Agriculture
                                                requirements, Spearmint oil.                            invited to submit written comments                    (USDA) is issuing this proposed rule in
                                                  For the reasons set forth in the                      concerning this proposal. Comments                    conformance with Executive Orders
                                                preamble, 7 CFR part 985 is proposed to                 must be sent to the Docket Clerk,                     13563 and 13175. This action falls
                                                be amended as follows:                                  Marketing Order and Agreement                         within a category of regulatory actions
                                                                                                        Division, Specialty Crops Program,                    that the Office of Management and
                                                PART 985—MARKETING ORDER                                AMS, USDA, 1400 Independence                          Budget (OMB) has exempted from
                                                REGULATING THE HANDLING OF                              Avenue SW, STOP 0237, Washington,                     Executive Order 12866 review.
                                                SPEARMINT OIL PRODUCED IN THE                           DC 20250–0237; Fax: (202) 720–8938; or                Additionally, because this rule does not
                                                FAR WEST                                                internet: http://www.regulations.gov. All             meet the definition of a significant
                                                                                                        comments should reference the                         regulatory action it does not trigger the
                                                ■ 1. The authority citation for part 985                document number and the date and                      requirements contained in Executive
                                                continues to read as follows:                           page number of this issue of the Federal              Order 13771. See OMB’s Memorandum
                                                    Authority: 7 U.S.C. 601–674.                        Register and will be made available for               titled ‘‘Interim Guidance Implementing
                                                                                                        public inspection in the Office of the                Section 2 of the Executive Order of
                                                ■ 2. In § 985.233, revise the section                                                                         January 30, 2017 titled ‘Reducing
                                                heading and paragraph (b) to read as                    Docket Clerk during regular business
                                                                                                        hours, or can be viewed at: http://                   Regulation and Controlling Regulatory
                                                follows:                                                                                                      Costs’ ’’ (February 2, 2017).
                                                                                                        www.regulations.gov. All comments
                                                                                                        submitted in response to this proposal                   This proposed rule has been reviewed
                                                § 985.233 Salable quantities and allotment
                                                percentages—2018–2019 marketing year.                   will be included in the record and will               under Executive Order 12988, Civil
                                                                                                        be made available to the public. Please               Justice Reform. This proposed rule is
                                                *      *     *    *     *                                                                                     not intended to have retroactive effect.
                                                   (b) Class 3 (Native) oil—a salable                   be advised that the identity of the
                                                                                                                                                                 The Act provides that administrative
                                                quantity of 1,357,315 pounds and an                     individuals or entities submitting the
                                                                                                                                                              proceedings must be exhausted before
                                                allotment percentage of 55 percent.                     comments will be made public on the
                                                                                                                                                              parties may file suit in court. Under
                                                                                                        internet at the address provided above.               section 608c(15)(A) of the Act, any
                                                  Dated: October 3, 2018.
                                                                                                        FOR FURTHER INFORMATION CONTACT:                      handler subject to an order may file
                                                Bruce Summers,
                                                                                                        Jennie M. Varela, Marketing Specialist,               with USDA a petition stating that the
                                                Administrator, Agricultural Marketing
                                                Service.
                                                                                                        or Christian D. Nissen, Regional                      order, any provision of the order, or any
                                                                                                        Director, Southeast Marketing Field                   obligation imposed in connection with
                                                [FR Doc. 2018–21844 Filed 10–5–18; 8:45 am]
                                                                                                        Office, Marketing Order and Agreement                 the order is not in accordance with law
                                                BILLING CODE 3410–02–P
                                                                                                        Division, Specialty Crops Program,                    and request a modification of the order
                                                                                                        AMS, USDA; Telephone: (863) 324–                      or to be exempted therefrom. A handler
                                                                                                        3375, Fax: (863) 291–8614, or email:                  is afforded the opportunity for a hearing
                                                DEPARTMENT OF AGRICULTURE
                                                                                                        Jennie.Varela@ams.usda.gov or                         on the petition. After the hearing, USDA
                                                Agricultural Marketing Service                          Christian.Nissen@ams.usda.gov.                        would rule on the petition. The Act
                                                                                                           Small businesses may request                       provides that the district court of the
                                                7 CFR Part 986                                          information on complying with this                    United States in any district in which
                                                                                                        regulation by contacting Richard Lower,               the handler is an inhabitant, or has his
                                                [Doc. No. AMS–SC–18–0019; SC18–986–1                    Marketing Order and Agreement                         or her principal place of business, has
                                                PR]                                                     Division, Specialty Crops Program,                    jurisdiction to review USDA’s ruling on
                                                                                                        AMS, USDA, 1400 Independence                          the petition, provided an action is filed
                                                Pecans Grown in the States of                           Avenue SW, STOP 0237, Washington,
                                                Alabama, Arkansas, Arizona,                                                                                   not later than 20 days after the date of
                                                                                                        DC 20250–0237; Telephone: (202) 720–                  the entry of the ruling.
                                                California, Florida, Georgia, Kansas,                   2491, Fax: (202)720–8938, or email:
                                                Louisiana, Missouri, Mississippi, North                                                                          This proposed rule would revise the
                                                                                                        Richard.Lower@ams.usda.gov.                           reporting requirements under the Order.
                                                Carolina, New Mexico, Oklahoma,
                                                                                                        SUPPLEMENTARY INFORMATION: This                       If approved, this action would require
                                                South Carolina, and Texas; Revision of
                                                                                                        proposed rule, pursuant to 5 U.S.C. 553,              all pecan handlers to report to the
                                                Reporting Requirements
                                                                                                        would amend regulations issued to                     Council the average handler price paid
                                                AGENCY:  Agricultural Marketing Service,                carry out a marketing order as defined                and average shelled pecan yield as part
                                                USDA.                                                   in 7 CFR 900.2(j). This proposed rule is              of its existing year-end report. This
                                                ACTION: Proposed rule.                                  issued under Marketing Agreement and                  information would be used by the
                                                                                                        Order No. 986, (7 CFR part 986),                      Council to provide statistical reports to
                                                SUMMARY:   This proposed rule invites                   regulating the handling of pecans grown               the industry and meet requirements
                                                comments on a proposal to revise the                    in the states of Alabama, Arkansas,                   under the Order. This proposal was
                                                reporting requirements under the                        Arizona, California, Florida, Georgia,                unanimously recommended by the
amozie on DSK3GDR082PROD with PROPOSALS1




                                                Federal marketing order for pecans. The                 Kansas, Louisiana, Missouri,                          Council at its January 24, 2018, meeting
                                                revised reporting requirements would                    Mississippi, North Carolina, New                      and affirmed at its April 17, 2018
                                                enable the American Pecan Council                       Mexico, Oklahoma, South Carolina, and                 meeting.
                                                (Council) to collect information from                   Texas. Part 986 (referred to as the                      Section 986.76 provides the authority
                                                handlers on the average handler price                   ‘‘Order’’) is effective under the                     to collect reports on the quantity of
                                                paid and the average shelled pecan                      Agricultural Marketing Agreement Act                  pecans handled and other pertinent
                                                yield. The Council would use this                       of 1937, as amended (7 U.S.C. 601–674),               information as specified by the Council.
                                                information to provide important                        hereinafter referred to as the ‘‘Act.’’ The           Section 986.78 provides, with the


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                                                50532                  Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules

                                                approval of the Secretary, authority for                regarding the weight of shelled pecans                U.S.C. 601–612), the Agricultural
                                                the Council to collect other reports and                handled. During the formal rulemaking                 Marketing Service (AMS) has
                                                information from handlers needed to                     hearing to promulgate the Order, a                    considered the economic impact of this
                                                perform its duties. Section 986.175                     witness testified regarding a conversion              action on small entities. Accordingly,
                                                specifies that handlers shall submit a                  rate of multiplying the shelled weight                AMS has prepared this initial regulatory
                                                year-end report to the Council that                     by two to calculate inshell weight. That              flexibility analysis.
                                                includes the amount of shelled and                      conversion rate was incorporated into                    The purpose of the RFA is to fit
                                                inshell pecans in inventory, total                      the Order. Using this conversion, the                 regulatory actions to the scale of
                                                inventory calculated on an inshell basis,               weight of shelled pecans is                           businesses subject to such actions in
                                                total weight and type of domestic                       approximately 50 percent of the inshell               order that small businesses will not be
                                                pecans handled for the fiscal year, and                 weight. This proportion is referred to as             unduly or disproportionately burdened.
                                                information on assessments owed, paid,                  the ‘‘shell-out’’ or shelled pecan yield.             Marketing orders issued pursuant to the
                                                or due.                                                 However, there are natural variations in              Act, and rules issued thereunder, are
                                                  This proposed rule would revise                       pecans and yield can vary depending on                unique in that they are brought about
                                                § 986.175 to require that additional                    the thickness of the shells of different              through group action of essentially
                                                information be included in the year-end                 varieties and can also vary from year to              small entities acting on their own
                                                report. These revisions would require                   year. These fluctuations make it                      behalf.
                                                handlers to report the average price paid               challenging to accurately convert the                    There are approximately 2,500
                                                by handler and average yield of shelled                 total inshell volume harvested into                   growers of pecans in the production
                                                pecans as part of the existing year-end                 shelled pounds, or shelled pounds into                area and approximately 250 handlers
                                                report.                                                 their inshell equivalent to provide an                subject to regulation under the Order.
                                                  At its January 24, 2018, and April 17,                accurate estimate of overall supply.                  Small agricultural growers are defined
                                                2018, meetings, the Council reviewed                       As with the handler price paid, there              by the Small Business Administration as
                                                the reporting requirements under the                    is currently no central industry source               those having annual receipts less than
                                                Order and determined there were                         for information on the shelled pecan                  $750,000, and small agricultural service
                                                additional data that would be beneficial                yield. The Council believes collecting                firms are defined as those whose annual
                                                to collect and summarize for the                        this data would allow them to provide                 receipts are less than $7,500,000 (13
                                                industry on an annual basis.                            the industry with an updated annual                   CFR 121.201).
                                                Specifically, the Council recommended                   average of this yield, which could be an
                                                adding two additional items to be                                                                                According to information from NASS,
                                                                                                        indicator of quality, and over time
                                                reported as part of the annual year-end                                                                       the average grower price for pecans
                                                                                                        provide a series of data on shelled pecan
                                                reporting requirement, average price                                                                          during the 2016–2017 season was $2.59
                                                                                                        yield that would allow them to
                                                paid by handlers and shelled pecan                                                                            per pound and 269 million pounds were
                                                                                                        determine if changes to the current
                                                yield.                                                                                                        utilized. The value for pecans that year
                                                                                                        conversion rate are needed.
                                                  While the National Agricultural                          Following the recommendation of the                totaled $697 million ($2.59 per pound
                                                Statistics Service (NASS) reports                       proposed changes made at the January                  multiplied by 269 million pounds).
                                                average grower prices, this proposed                    24, 2018 meeting, some members had                    Taking the total value of production for
                                                reporting change would provide                          questions about the specific data that                pecans and dividing it by the total
                                                information regarding a handler’s                       would be collected. Based on these                    number of pecan growers provides an
                                                overall cost of acquiring pecans. Some                  questions, the Council made some                      average return per grower of $278,684.
                                                handlers buy directly from growers, but                 adjustments to the proposed form to                   Using the average price and utilization
                                                many buy from other handlers or import                  clarify that handlers would report the                information, and assuming a normal
                                                pecans. Understanding the cost of                       average price paid for all inshell pecans             distribution among growers, the
                                                pecans being handled is key information                 purchased during the fiscal year,                     majority of growers receive less than
                                                in determining the value of the overall                 regardless of how the pecans are                      $750,000 annually.
                                                crop and subsequent impacts on the                      handled, including pecans from outside                   Evidence presented at the formal
                                                market for pecans the following season.                 the production area. For the purposes of              rulemaking hearing indicates an average
                                                During the meetings, members noted                      this form, the terms crop year and fiscal             handler margin of $0.58 per pound.
                                                that collecting the average price paid                  year are synonymous. The Council                      Adding this margin to the average
                                                would also be necessary to complete the                 reviewed the revised reporting form at                grower price of $2.59 per pound of
                                                marketing policy report required under                  its April 17, 2018, meeting and affirmed              inshell pecans results in an estimated
                                                the Order. The marketing policy, as                     that the new language met their original              handler price of $3.17 per pound. With
                                                required by § 986.65, must include                      intent.                                               a total 2017 production of 269 million
                                                projected prices for the upcoming fiscal                   The Council believes these revised                 pounds, the total value of production in
                                                year, which would be influenced by                      reporting requirements are necessary to               2017 was $853 million ($3.17 per pound
                                                handler costs. Further, the Council                     provide accurate reports to the industry              multiplied by 269 million pounds).
                                                believes providing this information                     regarding average price paid, yield for               Taking the total value of production for
                                                would improve the information                           shelled pecans, and to meet                           pecans and dividing it by the total
                                                available to the pecan industry. In                     requirements under the Order. The                     number of pecan handlers provides an
                                                particular the Council feels this                       industry would use this information to                average return per handler of $3.4
                                                information may give growers better                     complement the information provided                   million. Using this estimated price, the
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                                                information that can be used in making                  by NASS in the development of its                     utilization volume, number of handlers,
                                                business decisions. The Council                         marketing policy and to collect accurate              and assuming a normal distribution
                                                recommended adding this reporting                       data to determine if the definition of                among handlers, the majority of
                                                requirement as there is currently no                    weight in § 986.43 needs to be amended.               handlers have annual receipts of less
                                                comprehensive source for handler cost                                                                         than $7,500,000. Thus, the majority of
                                                information.                                            Initial Regulatory Flexibility Analysis               growers and handlers regulated under
                                                  The Council also discussed asking                       Pursuant to requirements set forth in               the Order may be classified as small
                                                handlers to provide information                         the Regulatory Flexibility Act (RFA) (5               entities.


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                                                                       Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Proposed Rules                                                50533

                                                   This proposed rule would revise the                  Marketing Order for Pecans.’’ This                    PART 986—PECANS GROWN IN THE
                                                reporting requirements in § 986.175.                    proposed rule would require changes to                STATES OF ALABAMA, ARKANSAS,
                                                This action would require all pecan                     the Council’s existing APC Form 7.                    ARIZONA, CALIFORNIA, FLORIDA,
                                                handlers to report to the Council the                   However, the changes are minor and the                GEORGIA, KANSAS, LOUISIANA,
                                                average handler price paid and average                  currently approved burden for the form                MISSOURI, MISSISSIPPI, NORTH
                                                shelled pecan yield as part of its                      should not be altered by the proposed                 CAROLINA, NEW MEXICO,
                                                existing year-end report. This                          changes to the form. The revised form                 OKLAHOMA, SOUTH CAROLINA, AND
                                                information would be used by the                        has been submitted to OMB for                         TEXAS
                                                Council to provide statistical reports to               approval.
                                                the industry and meet requirements                                                                            ■ 1. The authority citation for 7 CFR
                                                under the Order. The authority for this                    As with all Federal marketing order                part 986 continues to read as follows:
                                                proposal is provided in §§ 986.76 and                   programs, reports and forms are
                                                                                                        periodically reviewed to reduce                           Authority: 7 U.S.C. 601–674.
                                                986.78.
                                                   It is not anticipated that this proposed             information requirements and                          ■ 2. Section 986.175 is amended by
                                                rule would impose additional costs on                   duplication by industry and public                    revising paragraphs (a) introductory
                                                handlers or growers, regardless of size.                sector agencies. USDA has not                         text, (a)(7) and (8), and adding
                                                Council members, including those                        identified any relevant Federal rules                 paragraphs (a)(9) and (10) to read as
                                                representing small businesses, indicated                that duplicate, overlap, or conflict with             follows:
                                                the average handler price paid and the                  this proposed rule.
                                                                                                                                                              § 986.175    Handler inventory.
                                                average shelled pecan yield information                    AMS is committed to complying with
                                                is already recorded and maintained by                                                                            (a) Handlers shall submit to the
                                                                                                        the E-Government Act, to promote the
                                                handlers as a part of their daily business                                                                    Council a year end inventory report
                                                                                                        use of the internet and other
                                                and the information should be readily                                                                         following August 31 each fiscal year.
                                                                                                        information technologies to provide                   Handlers shall file such reports by
                                                accessible. Consequently, any additional                increased opportunities for citizen
                                                costs associated with this change would                                                                       September 10. Should September 10 fall
                                                                                                        access to Government information and                  on a weekend, reports are due by the
                                                be minimal and apply equally to all                     services, and for other purposes.
                                                handlers.                                                                                                     first business day following September
                                                   This action should also help the                        Further, the Council’s meetings were               10. Such reports shall be reported to the
                                                industry by providing additional data                   widely publicized throughout the pecan                Council on APC Form 7. For the
                                                on pecans handled. This information                     industry and all interested persons were              purposes of this form, ‘‘crop year’’ is the
                                                would help with marketing and                           invited to attend the meetings and                    same as the ‘‘fiscal year.’’ The report
                                                planning for the industry, as well as                   participate in Council deliberations on               shall include:
                                                provide important information in                        all issues. Additionally, the Council’s               *      *     *    *     *
                                                preparing the annual marketing policy                   Committee meetings held on January 24,                   (7) Total weight and type of domestic
                                                required by the Order. This change                      2018, and April 17, 2018, were also                   pecans handled for the fiscal year;
                                                would also assist with the development                  public meetings and all entities, both                   (8) Total assessments owed,
                                                of a dataset to determine if the                        large and small, were able to express                 assessments paid to date, and remaining
                                                conversion rate for shelled to inshell                  views on this issue. Finally, interested              assessments due to be paid by the due
                                                pecans needs to be revised. The benefits                persons are invited to submit comments                date of the year-end inventory report for
                                                of this rule are expected to be equally                 on this proposed rule, including the                  the fiscal year;
                                                available to all pecan growers and                      regulatory and information collection                    (9) The average price paid for all
                                                handlers, regardless of their size.                     impacts of this proposed action on small              inshell pecans purchased during the
                                                   The Council discussed other                          businesses.                                           fiscal year regardless of how the pecans
                                                alternatives to this proposed action,                      A small business guide on complying                are handled, including pecans from
                                                including making no changes to the                      with fruit, vegetable, and specialty crop             outside the production area; and
                                                current reporting requirements.                         marketing agreements and orders may                      (10) The average yield of shelled
                                                However, having the information on                      be viewed at: http://www.ams.usda.gov/                pecans per pound of inshell pecans
                                                handler price paid and shelled pecan                    rules-regulations/moa/small-businesses.               shelled during the fiscal year.
                                                yield would provide important
                                                                                                        Any questions about the compliance                      Dated: October 3, 2018.
                                                information for the industry.
                                                                                                        guide should be sent to Richard Lower                 Bruce Summers,
                                                   Another alternative considered was to
                                                create a new report for the collection of               at the previously-mentioned address in                Administrator, Agricultural Marketing
                                                this information. However, the industry                 the FOR FURTHER INFORMATION CONTACT                   Service.
                                                recently implemented a series of                        section.                                              [FR Doc. 2018–21841 Filed 10–5–18; 8:45 am]
                                                monthly reports that increased the                         A 30-day comment period is provided                BILLING CODE 3410–02–P
                                                reporting burden on handlers. Rather                    to allow interested persons to respond
                                                than add to the burden by creating a                    to this proposal. All written comments
                                                new report, the Council believed it                     timely received will be considered                    NUCLEAR REGULATORY
                                                would be more efficient to ask handlers                 before a final determination is made on               COMMISSION
                                                for this information as part of the                     this matter.
                                                existing year-end reporting requirement.                                                                      10 CFR Part 2
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                                                                                                        List of Subjects in 7 CFR Part 986
                                                Therefore, the alternatives were
                                                                                                                                                              [Docket No. PRM–2–15; NRC–2015–0264]
                                                rejected.                                                 Marketing agreements, Nuts, Pecans,
                                                   In accordance with the Paperwork                     Reporting and recordkeeping                           Agency Procedures for Responding to
                                                Reduction Act of 1995 (44 U.S.C.                        requirements.                                         Adverse Court Decisions and
                                                Chapter 35), the Order’s information                                                                          Addressing Funding Shortfalls
                                                collection requirements have been                         For the reasons set forth in the
                                                previously approved by OMB and                          preamble, 7 CFR part 986 is proposed to               AGENCY:Nuclear Regulatory
                                                assigned OMB No. 0581–0291 ‘‘Federal                    be amended as follows:                                Commission.


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Document Created: 2018-10-06 00:58:47
Document Modified: 2018-10-06 00:58:47
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 November 8, 2018.
ContactJennie M. Varela, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or email: [email protected] or [email protected]
FR Citation83 FR 50531 
CFR AssociatedMarketing Agreements; Nuts; Pecans and Reporting and Recordkeeping Requirements

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