83_FR_7392 83 FR 7357 - 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; Establishment of Reporting Requirements and New Information Collection

83 FR 7357 - 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; Establishment of Reporting Requirements and New Information Collection

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 35 (February 21, 2018)

Page Range7357-7361
FR Document2018-03500

This rule implements a recommendation made by the American Pecan Council (Council) to establish reporting requirements under the Federal marketing order for pecans (Order). These reporting requirements will enable collection of information from handlers on: Pecans received; pecans purchased outside the United States; shipments and inventory of pecans; pecans exported by country of destination; and pecans exported for shelling and returned to the United States. This information will be used to provide important statistical reports to the industry, meet requirements under the Order, and to help guide future marketing efforts.

Federal Register, Volume 83 Issue 35 (Wednesday, February 21, 2018)
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)]
[Rules and Regulations]
[Pages 7357-7361]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03500]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

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

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

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Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / 
Rules and Regulations

[[Page 7357]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 986

[Doc. No. AMS-SC-17-0039; SC17-986-3 FR]


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; 
Establishment of Reporting Requirements and New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation made by the American 
Pecan Council (Council) to establish reporting requirements under the 
Federal marketing order for pecans (Order). These reporting 
requirements will enable collection of information from handlers on: 
Pecans received; pecans purchased outside the United States; shipments 
and inventory of pecans; pecans exported by country of destination; and 
pecans exported for shelling and returned to the United States. This 
information will be used to provide important statistical reports to 
the industry, meet requirements under the Order, and to help guide 
future marketing efforts.

DATES: Effective March 23, 2018.

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 final rule, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This final 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 Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the Order now in effect, pecan handlers are 
subject to assessments. Funds to administer the Order are derived from 
these assessments. The reporting requirements established herein will 
be applicable to all assessable pecans beginning October 1, 2017.
    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 final rule establishes reporting requirements under the Order. 
This action will require all pecan handlers to submit to the Council 
reports on pecans received, shipped, held in inventory, exported for 
sale or shelling, and purchased from outside the United States. This 
information will be used by the Council to provide statistical reports 
to the industry, meet requirements under the Order, and help guide 
future marketing efforts. This action was unanimously recommended by 
the Council at its April 17, 2017, meeting.
    Section 2(4) of the Act specifies that one of its stated policies 
is to establish and maintain orderly marketing conditions for certain 
agricultural commodities that will provide, in the interests of 
producers and consumers, an orderly flow of the supply of such 
commodities to market to avoid unreasonable fluctuations in supply and 
prices. Section 8(d)(1) of the Act specifies that the Secretary may 
require all handlers subject to a marketing order to provide USDA with 
such information as is necessary for it to ascertain and determine the 
degree to which the agreement has been carried out or effectuated the 
declared policy of the Act.
    Sections 986.75, 986.76, and 986.77 of the Order provide authority 
to the Council to require handlers to submit reports of inventory, 
merchantable pecans handled, and pecans received by handlers, 
respectively, on such dates as the Council may prescribe. Section 
986.78 further provides, with the approval of the Secretary, authority 
for the Council to collect other reports and information from handlers 
needed to perform its duties. This rule uses these authorities to 
establish new Sec. Sec.  986.177 and 986.178 under the administrative 
provisions of the Order. These new

[[Page 7358]]

sections will require handlers of pecans to report to the Council on a 
monthly basis: Pecans received, shipped, held in inventory, exported 
for sale or shelling, and purchased from outside the United States, 
using five specific Council forms.
    At its November 16, 2016, meeting, the first meeting following the 
promulgation of the Order, the Council discussed its initial budget, 
assessment rates, and necessary reporting requirements to establish a 
program that is efficient and responsive to industry needs. During 
these discussions, the Council appointed a Statistics and Reporting 
Committee (Committee) to develop reporting requirements.
    Members of the Committee discussed the reporting needs of the 
industry, reviewed examples of reporting forms from other marketing 
orders, and met and worked with the staff of another marketing order in 
developing the proposed reporting requirements. The Committee also 
worked with USDA to ensure the recommended information collection would 
provide the information necessary to facilitate the administration of 
the Order.
    At its February 23, 2017, meeting, the Council reviewed drafts of 
seven reporting forms as developed and recommended by the Committee. 
The Council expressed its interest in having as much electronic 
reporting as possible, but recognized that many handlers may prefer a 
paper submission. The Council also considered the timing of when forms 
would be due and submission dates that would work for all parts of the 
industry. After a thorough review and some modifications, seven forms 
were approved by the Council.
    At a meeting on April 17, 2017, the Council revisited the 
recommended reporting requirements and the accompanying forms. 
Acknowledging that the industry was more than halfway through the 
fiscal year at that time, the Council recommended dividing the 
reporting requirements into the five forms needed beginning with the 
2017-2018 fiscal year and the two forms needed beginning with the 2016-
2017 fiscal year. The two forms required for the 2016-2017 fiscal year 
were established in a separate rulemaking action.
    This final rule adds five new reporting requirements and five new 
forms to the administrative provisions under the Order by adding 
Sec. Sec.  986.177 and 986.178. During the formal rulemaking hearing to 
promulgate the Order, it was stated that the data collection component 
was one of the most important aspects of the Order. Concerns were also 
expressed regarding the accuracy and availability of industry data, and 
the impact those have on making good business decisions.
    Currently, most available reports on domestic pecan production are 
issued annually and often long after the marketing year has been 
completed. The reporting of this information is currently voluntary, so 
not all handlers are reporting, which impacts the accuracy of the 
available information. Some aggregate import and export data are 
available, but this information is usually available on an annual 
basis, or reported several months after the shipments have been made. 
Additionally, some domestic production is shipped outside of the 
country for shelling and then returned to the United States for sale or 
further processing. There is concern this volume is not being properly 
accounted for, and is negatively impacting the accuracy of the industry 
information currently available.
    The Council agreed these reporting requirements would be necessary 
to develop accurate reports for the industry regarding pecans being 
produced and handled in the United States, and recognized the value to 
the industry of such reports. Having accurate and timely information on 
the total supply of pecans moving into and out of the country will also 
assist the industry in managing available supply and in making 
marketing decisions. Further, collecting this information monthly will 
allow the Council to provide key data regarding total supply and 
inventory to the industry in a more timely fashion throughout the 
season.
    The Council also recognized that Sec.  986.65 of the Order requires 
the Council to provide a report and recommendation to the Secretary on 
the Council's proposed marketing policy for the next fiscal year. The 
report is required to include, in part, an estimate of production; 
improved, native, and substandard pecans; handler inventory; and trade 
supply, taking into consideration imported pecans. In addition to 
providing important information for industry reports, the reporting 
requirements covered in this action would provide the information 
needed to develop the marketing policy.
    Two specific monthly reporting requirements will be added to the 
administrative provisions under the Order in a new Sec.  986.177, a 
summary report of domestic pecans received, and a report of pecans 
purchased outside the United States. The summary report of domestic 
pecans received includes information on the handler submitting the 
form, the month covered by the report, the total weight and type of 
inshell pecans received, and the weight by variety of improved pecans 
received. In addition, the form also includes information regarding 
total assessments owed and total pounds reported to date.
    The information on this form will provide the Council with the 
volume of pecans received by handlers each month throughout the season. 
This information will be used to track the available supply of pecans 
each month, and the overall crop as it is delivered to handlers. The 
Council will then be able to use the information to develop its own 
reports that would provide the industry with an overview of market 
information for the predominant varieties, including volume by variety, 
which will assist in the development of marketing strategies.
    The Council also intends to use this form to facilitate the 
collection of assessments on a monthly basis throughout the season. 
Using the form, handlers will be able to calculate their assessments 
due each month based on the pecans received as listed on the report. 
Handlers will be required to pay to the Council the assessments owed on 
the pecans received by the due date of the summary report.
    In its discussion of the report of pecans purchased outside the 
United States, the Council agreed it would be important to have 
information regarding the volume of pecans being imported by production 
area. The monthly report of pecans purchased outside the United States 
includes the name of the handler importing pecans, the month covered by 
the report, the date imported, country of origin, volume, and variety 
of pecans imported.
    As production of pecans abroad has increased, there has been an 
increase in pecans imported into the United States. One Council member 
stated that the domestic industry is currently shelling and processing 
as much as 70 to 75 percent of Mexican-grown pecans, and that Mexican 
pecans now account for nearly 50 percent of sales in the United States. 
Consequently, having information regarding the volume of imported 
pecans is essential when calculating available supply. Collecting this 
information will greatly improve the accuracy of reports to the 
industry as it includes information regarding both domestic and 
imported pecans.
    One of the Council's main goals in developing these reporting 
requirements is to deliver to the industry accurate reports regarding 
the marketplace and supply of pecans to assist the industry in making 
its marketing decisions throughout the year. The Council believes 
having accurate information regarding imported pecans is an essential 
part of reaching this goal.

[[Page 7359]]

Further, collecting this information will provide the industry with 
valuable data regarding the timing and volume of pecans imported into 
the United States. Members also agreed having this information will 
assist the Council in developing its marketing policy as required under 
the Order.
    Three additional reporting requirements will be added to the 
administrative provisions in a new Sec.  986.178: Reports of shipments 
and inventory, exports by country of destination, and inshell pecans 
exported to Mexico for shelling. The report of shipments and inventory 
will include information on the handler submitting the form, the month 
covered by the report, shipments of shelled and inshell pecans, current 
inventory, and pecans in inventory already committed for shipment.
    The Council believes this form will provide beneficial information 
regarding shipments completed and volume in inventory. While there is 
currently some limited information available regarding pecans in cold 
storage, this information does not delineate between available 
inventory and inventory that is already committed for shipment. By 
collecting this information from handlers, this report, in conjunction 
with the data regarding pecans received, will allow the Council to 
provide the industry with inventory reports that are more accurate, and 
that provide a clearer picture of available supply. This data on the 
available volume of pecans will provide the industry with the 
information needed to make better marketing decisions.
    When discussing a reporting requirement for exported pecans, the 
Council expressed the industry's need for more information concerning 
international trade markets and export trends. The report of exports by 
country of destination includes information on the handler submitting 
the report, the month of the report, and the weight of all shipments of 
pecans, inshell or shelled, by classification, and by country of 
destination.
    The Council estimated that prior to 2005, around 10 percent of 
domestic production was being exported. Since then, exports have grown 
considerably and now account for between 40 and 50 percent of 
production. The recommended form will be used to generate reports 
throughout the season providing industry members with information on 
where product is being sold and in what volume. Further, the Council 
could use this information to determine the effectiveness of any 
international promotional efforts and to consider opportunities for 
promotion and market expansion.
    Some of the pecans shipped outside the United States are exported 
just for shelling and then returned to the United States for further 
use. The Council recommended an additional reporting form to capture 
this information. Specifically, the Council recommended collecting 
information on pecans exported to Mexico for shelling and then returned 
to the United States. The Council decided to limit the reporting to 
Mexico since the vast majority of pecans exported for this purpose are 
being sent to Mexico because of its proximity and cost efficiencies. 
The report of inshell pecans exported to Mexico for shelling includes 
information on the handler submitting the report, the month covered by 
the report, dates of shipments, the total weight of inshell pecans 
shipped for shelling, and the weight of shelled pecans returned to the 
United States.
    In discussing this reporting requirement, the Council recognized 
that in addition to shelling some pecans from the production area, 
Mexico also exports pecans to the United States. This makes it 
difficult to determine how much of the import volume reported from 
Mexico is represented by domestic product after shelling. It was 
expressed that without this report, the accuracy of data regarding both 
reported exported and imported product could be compromised. Pecans 
exported for shelling could be counted as exports, and then counted 
again as imports when returned to the United States. This reporting 
requirement will help reduce the possibility of double counting of 
these pecans, and will help improve the accuracy of the overall 
information on supply.
    The Council selected the tenth day of the month following the month 
of the activity as the due date for all five reports. Should the tenth 
day of the month fall on a weekend or holiday, reports will be due by 
the first business day following the tenth day of the month. The five 
monthly reports will be used during the 2017-2018 and subsequent 
seasons.
    This action requires pecan handlers to provide the Council with 
monthly reports on pecans received, shipped, held in inventory, 
exported for sale or shelling, and purchased from outside the United 
States. By establishing these reporting requirements, the Council will 
be able to gather and disseminate this information in accurate market 
reports. Further, this information will be used to create a marketing 
policy each year as required under the Order.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
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 
pecan marketing 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 the National Agricultural Statistics 
Service (NASS), the average grower price for pecans during the 2015-
2016 season was $2.20 per pound and 254 million pounds were utilized. 
The value for pecans that year totaled $558.8 million ($2.20 per pound 
multiplied by 254 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 $223,520. Using the average 
price and utilization information, and assuming a normal bell-curve 
distribution of receipts 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 $2.20 per pound of inshell pecans results in an 
estimated handler price of $2.78 per pound. With a total 2015 
production of 254 million pounds, ($2.78 per pound multiplied by 254 
million pounds) the total value of production in 2015 was $706.12 
million. 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 $2,824,480. Using this estimated price, the utilization 
volume, number of handlers, and assuming a normal bell-

[[Page 7360]]

curve distribution of receipts among handlers, the majority of handlers 
have annual receipts of less than $7,500,000. Thus, the majority (a 
substantial number) of growers and handlers 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 may be classified as small 
entities.
    This final rule establishes reporting requirements under the Order. 
This action requires pecan handlers to provide the Council with reports 
of pecans received, shipped, held in inventory, exported for sale or 
shelling, and purchased from outside the United States. The Council 
will use this information to provide important statistical reports to 
the industry, to meet requirements under the Order, and to help guide 
future marketing efforts. This rule establishes new Sec. Sec.  986.177 
and 986.178 under the administrative provisions of the Order. The 
authority for this action is provided for in Section 8(d)(1) of the Act 
and Sec. Sec.  986.75, 986.76, 986.77, and 986.78 of the Order.
    Requiring monthly reports of pecans received, shipped, held in 
inventory, exported for sale or shelling, and purchased from outside 
the United States will impose an increase in the reporting burden on 
all pecan handlers. However, this data is already recorded and 
maintained by handlers as a part of their daily business. Handlers, 
regardless of size, should be able to readily access and submit this 
information. Consequently, any additional costs associated with this 
change would be minimal (not significant) and apply equally to all 
handlers.
    This action should also help the entire industry by providing 
comprehensive data on pecans received, shipped, held in inventory, 
exported for sale or shelling, and purchased from outside the United 
States. Collection of this data was one of the industry's goals in 
promulgating the Order as there is no other source for this type of 
data. This information should provide accurate information regarding 
available inventory, help with marketing and planning for the industry, 
provide important information for the collection of assessments, and 
assist with preparing the annual marketing policy required by the 
Order. The benefits of this action are expected to be equally available 
to all pecan growers and handlers, regardless of their size.
    The Council discussed other alternatives to this action. The 
Council considered listing additional varieties on the summary report 
of pecans received. However, after discussion the Council determined a 
simpler version with the major commercial varieties and room for 
handlers to enter additional varieties as needed would be less 
burdensome. The Council also considered different due dates for these 
monthly reports, including a due date of the first, the third and the 
fifth day after the month of the activity. However, after some 
discussion, it was determined some handlers may have difficulty meeting 
these time frames. The 15th day of the month was also suggested, but 
Council members thought this would delay the issuance of reports, and 
negatively impact their value. Consequently, the Council agreed to set 
the due date for all five forms at the tenth of the month. The Council 
also considered the value and importance of each of the forms, and if 
all should be recommended. However, the Council agreed each of the 
recommended forms provides important information for the industry and 
for administering the Order. Therefore, the alternatives were rejected.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this collection has been submitted to OMB with the 
reference number 0581--NEW. Upon approval, the collection will be 
merged with OMB No. 0581-0291, ``Federal Marketing Order for Pecans.'' 
This final rule establishes the use of five new Council forms, which 
impose a total annual burden increase of 2,234.4 hours. The forms, 
``Summary Report U.S. Pecans Received for Your Own Account,'' ``Pecans 
Purchased Outside the United States,'' ``Report of Shipments and 
Inventory on Hand,'' ``Exports by Country of Destination,'' and 
``Inshell Pecans Exported to Mexico for Shelling and Returned to the 
United States as Shelled Meats,'' require the minimum information 
necessary to effectively carry out the requirements of the Order. The 
information would enable the Council to provide statistical reports to 
the industry, meet requirements under the Order, and help guide future 
marketing efforts.
    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.
    As noted in the initial regulatory flexibility analysis, USDA has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule. Further, the public comments received 
concerning the proposal did not address the initial regulatory 
flexibility analysis.
    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 February 23, 2017, 
and April 17, 2017, were also public meetings and all entities, both 
large and small, were able to express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on December 4, 2017 (82 FR 57166). Copies of the rule were 
sent via email to Council members and known pecan handlers. Finally, 
the rule was made available through the internet by USDA and the Office 
of the Federal Register. A 60-day comment period ending February 2, 
2018, was provided to allow interested persons to respond to the 
proposal. Two comments were received in support of the proposed 
information collection. One commenter stated that, while he worried 
about the cost of pecans going up, he would consider the cost 
worthwhile if the information made the pecan industry more transparent. 
The other commenter stated she appreciates that the regulation could 
help improve the production and transportation of pecans.
    Accordingly, no changes will be made to the rule as proposed, based 
on the comments received.
    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.
    After consideration of all relevant matter presented, including the 
information and recommendation of the Council and other available 
information, it is hereby found that this rule, as hereinafter set 
forth, will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 986

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


[[Page 7361]]


    For the reasons set forth in the preamble, 7 CFR part 986 is 
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. Add Sec.  986.177 to subpart B to read as follows:


Sec.  986.177   Reports of pecans received by handlers.

    (a) Summary report U.S. pecans received for your own account. 
Handlers shall submit to the Council, by the tenth day of the month, a 
summary report of inshell domestic pecans received during the preceding 
month. Should the tenth day of the month fall on a weekend or holiday, 
reports are due by the first business day following the tenth day of 
the month. The report shall be submitted to the Council on APC Form 1 
and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight and type of inshell pecans received, and the 
weight by variety for improved pecans received during the reporting 
period;
    (4) The total weight and type of inshell pecans received, and the 
weight by variety for improved pecans received year to date; and,
    (5) Assessments due on pecans received during the reporting period 
to be paid by the due date of the report.
    (b) Pecans purchased outside the United States. Handlers shall 
submit to the Council, by the tenth day of the month, a summary report 
of shelled and inshell pecans imported during the preceding month. 
Should the tenth day of the month fall on a weekend or holiday, reports 
are due by the first business day following the tenth day of the month. 
The report shall be submitted to the Council on APC Form 6 and contain 
the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The date the pecans were imported;
    (4) The country of origin; and,
    (5) The total weight of shelled and inshell pecans received, and 
the weight by variety for improved pecans received.

0
3. Add Sec.  986.178 to subpart B to read as follows:


Sec.  986.178   Other reports.

    (a) Report of shipments and inventory on hand. Handlers shall 
submit to the Council, by the tenth day of the month following the 
month of activity, a report of all shipments, inventory, and committed 
inventory for pecans. Should the tenth day of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the tenth day of the month. The report shall be submitted to the 
Council on APC Form 2 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received during the reporting 
period;
    (4) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received in the previous month and 
year to date;
    (5) Total inventory held by handler;
    (6) All the inventory committed (pecans not shipped, but sold or 
otherwise obligated) whether for domestic sale or export; and,
    (7) The weight of all shelled or inshell pecans under contract for 
purchase from other handlers.
    (b) Exports by country of destination. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of exports. Should the tenth day of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the tenth day of the month. The report shall be reported to the Council 
on APC Form 3 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the reporting period;
    (4) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the previous period and year to date; 
and,
    (5) The destination(s) of such exports.
    (c) Inshell pecans exported to Mexico for shelling and returned to 
the United States as shelled meats. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of all inshell pecans exported to Mexico for shelling and 
returned to the United States as shelled pecans. Should the tenth day 
of the month fall on a weekend or holiday, reports are due by the first 
business day following the tenth day of the month. The report shall be 
submitted to the Council on APC Form 5 and contain the following 
information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The date of inshell shipment(s);
    (4) The weight of pecans exported for shelling;
    (5) The date shelled pecans returned to the United States after 
shelling;
    (6) The weight of shelled pecans returned to the United States 
after shelling; and
    (7) The total weight of inshell pecans exported to Mexico for 
shelling, and shelled pecans returned from Mexico, year to date.

    Dated: February 15, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-03500 Filed 2-20-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                              7357

                                             Rules and Regulations                                                                                         Federal Register
                                                                                                                                                           Vol. 83, No. 35

                                                                                                                                                           Wednesday, February 21, 2018



                                             This section of the FEDERAL REGISTER                    regulation by contacting Richard Lower,               with the Order is not in accordance with
                                             contains regulatory documents having general            Marketing Order and Agreement                         law and request a modification of the
                                             applicability and legal effect, most of which           Division, Specialty Crops Program,                    Order or to be exempted therefrom. A
                                             are keyed to and codified in the Code of                AMS, USDA, 1400 Independence                          handler is afforded the opportunity for
                                             Federal Regulations, which is published under           Avenue SW, STOP 0237, Washington,                     a hearing on the petition. After the
                                             50 titles pursuant to 44 U.S.C. 1510.
                                                                                                     DC 20250–0237; Telephone: (202) 720–                  hearing, USDA would rule on the
                                             The Code of Federal Regulations is sold by              2491, Fax: (202) 720–8938, or Email:                  petition. The Act provides that the
                                             the Superintendent of Documents.                        Richard.Lower@ams.usda.gov.                           district court of the United States in any
                                                                                                     SUPPLEMENTARY INFORMATION: This final                 district in which the handler is an
                                                                                                     rule, pursuant to 5 U.S.C. 553, amends                inhabitant, or has his or her principal
                                             DEPARTMENT OF AGRICULTURE                               regulations issued to carry out a                     place of business, has jurisdiction to
                                                                                                     marketing order as defined in 7 CFR                   review USDA’s ruling on the petition,
                                             Agricultural Marketing Service                                                                                provided an action is filed not later than
                                                                                                     900.2(j). This final rule is issued under
                                                                                                     Marketing Agreement and Order No.                     20 days after the date of the entry of the
                                             7 CFR Part 986                                                                                                ruling.
                                                                                                     986, (7 CFR part 986), regulating the
                                             [Doc. No. AMS–SC–17–0039; SC17–986–3                    handling of pecans grown in the states                   This final rule establishes reporting
                                             FR]                                                     of Alabama, Arkansas, Arizona,                        requirements under the Order. This
                                                                                                     California, Florida, Georgia, Kansas,                 action will require all pecan handlers to
                                             Pecans Grown in the States of                                                                                 submit to the Council reports on pecans
                                                                                                     Louisiana, Missouri, Mississippi, North
                                             Alabama, Arkansas, Arizona,                                                                                   received, shipped, held in inventory,
                                                                                                     Carolina, New Mexico, Oklahoma,
                                             California, Florida, Georgia, Kansas,                                                                         exported for sale or shelling, and
                                                                                                     South Carolina, and Texas. Part 986
                                             Louisiana, Missouri, Mississippi, North                                                                       purchased from outside the United
                                                                                                     (referred to as ‘‘the order’’) is effective
                                             Carolina, New Mexico, Oklahoma,                                                                               States. This information will be used by
                                                                                                     under the Agricultural Marketing
                                             South Carolina, and Texas;                                                                                    the Council to provide statistical reports
                                                                                                     Agreement Act of 1937, as amended (7
                                             Establishment of Reporting                                                                                    to the industry, meet requirements
                                             Requirements and New Information                        U.S.C. 601–674), hereinafter referred to
                                                                                                     as the ‘‘Act.’’                                       under the Order, and help guide future
                                             Collection                                                                                                    marketing efforts. This action was
                                                                                                        The Department of Agriculture
                                             AGENCY:  Agricultural Marketing Service,                (USDA) is issuing this rule in                        unanimously recommended by the
                                             USDA.                                                   conformance with Executive Orders                     Council at its April 17, 2017, meeting.
                                             ACTION: Final rule.                                     13563 and 13175. This action falls                       Section 2(4) of the Act specifies that
                                                                                                     within a category of regulatory actions               one of its stated policies is to establish
                                             SUMMARY:   This rule implements a                       that the Office of Management and                     and maintain orderly marketing
                                             recommendation made by the American                     Budget (OMB) has exempted from                        conditions for certain agricultural
                                             Pecan Council (Council) to establish                    Executive Order 12866 review.                         commodities that will provide, in the
                                             reporting requirements under the                        Additionally, because this rule does not              interests of producers and consumers,
                                             Federal marketing order for pecans                      meet the definition of a significant                  an orderly flow of the supply of such
                                             (Order). These reporting requirements                   regulatory action it does not trigger the             commodities to market to avoid
                                             will enable collection of information                   requirements contained in Executive                   unreasonable fluctuations in supply and
                                             from handlers on: Pecans received;                      Order 13771. See OMB’s Memorandum                     prices. Section 8(d)(1) of the Act
                                             pecans purchased outside the United                     titled ‘‘Interim Guidance Implementing                specifies that the Secretary may require
                                             States; shipments and inventory of                      Section 2 of the Executive Order of                   all handlers subject to a marketing order
                                             pecans; pecans exported by country of                   January 30, 2017 titled ‘Reducing                     to provide USDA with such information
                                             destination; and pecans exported for                    Regulation and Controlling Regulatory                 as is necessary for it to ascertain and
                                             shelling and returned to the United                     Costs’ ’’ (February 2, 2017).                         determine the degree to which the
                                             States. This information will be used to                   This rule has been reviewed under                  agreement has been carried out or
                                             provide important statistical reports to                Executive Order 12988, Civil Justice                  effectuated the declared policy of the
                                             the industry, meet requirements under                   Reform. Under the Order now in effect,                Act.
                                             the Order, and to help guide future                     pecan handlers are subject to                            Sections 986.75, 986.76, and 986.77 of
                                             marketing efforts.                                      assessments. Funds to administer the                  the Order provide authority to the
                                             DATES: Effective March 23, 2018.                        Order are derived from these                          Council to require handlers to submit
                                             FOR FURTHER INFORMATION CONTACT:                        assessments. The reporting                            reports of inventory, merchantable
                                             Jennie M. Varela, Marketing Specialist,                 requirements established herein will be               pecans handled, and pecans received by
                                             or Christian D. Nissen, Regional                        applicable to all assessable pecans                   handlers, respectively, on such dates as
                                             Director, Southeast Marketing Field                     beginning October 1, 2017.                            the Council may prescribe. Section
                                             Office, Marketing Order and Agreement                      The Act provides that administrative               986.78 further provides, with the
                                                                                                     proceedings must be exhausted before                  approval of the Secretary, authority for
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                                             Division, Specialty Crops Program,
                                             AMS, USDA; Telephone: (863) 324–                        parties may file suit in court. Under                 the Council to collect other reports and
                                             3375, Fax: (863) 291–8614, or Email:                    section 608c(15)(A) of the Act, any                   information from handlers needed to
                                             Jennie.Varela@ams.usda.gov or                           handler subject to an Order may file                  perform its duties. This rule uses these
                                             Christian.Nissen@ams.usda.gov.                          with USDA a petition stating that the                 authorities to establish new §§ 986.177
                                               Small businesses may request                          Order, any provision of the Order, or                 and 986.178 under the administrative
                                             information on complying with this                      any obligation imposed in connection                  provisions of the Order. These new


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                                             7358             Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations

                                             sections will require handlers of pecans                 the accuracy and availability of industry             by variety of improved pecans received.
                                             to report to the Council on a monthly                    data, and the impact those have on                    In addition, the form also includes
                                             basis: Pecans received, shipped, held in                 making good business decisions.                       information regarding total assessments
                                             inventory, exported for sale or shelling,                   Currently, most available reports on               owed and total pounds reported to date.
                                             and purchased from outside the United                    domestic pecan production are issued                     The information on this form will
                                             States, using five specific Council forms.               annually and often long after the                     provide the Council with the volume of
                                                At its November 16, 2016, meeting,                    marketing year has been completed. The                pecans received by handlers each month
                                             the first meeting following the                          reporting of this information is currently            throughout the season. This information
                                             promulgation of the Order, the Council                   voluntary, so not all handlers are                    will be used to track the available
                                             discussed its initial budget, assessment                 reporting, which impacts the accuracy                 supply of pecans each month, and the
                                             rates, and necessary reporting                           of the available information. Some                    overall crop as it is delivered to
                                             requirements to establish a program that                 aggregate import and export data are                  handlers. The Council will then be able
                                             is efficient and responsive to industry                  available, but this information is usually            to use the information to develop its
                                             needs. During these discussions, the                     available on an annual basis, or reported             own reports that would provide the
                                             Council appointed a Statistics and                       several months after the shipments have               industry with an overview of market
                                             Reporting Committee (Committee) to                       been made. Additionally, some                         information for the predominant
                                             develop reporting requirements.                          domestic production is shipped outside                varieties, including volume by variety,
                                                Members of the Committee discussed                    of the country for shelling and then                  which will assist in the development of
                                             the reporting needs of the industry,                     returned to the United States for sale or             marketing strategies.
                                             reviewed examples of reporting forms                     further processing. There is concern this                The Council also intends to use this
                                             from other marketing orders, and met                     volume is not being properly accounted                form to facilitate the collection of
                                             and worked with the staff of another                     for, and is negatively impacting the                  assessments on a monthly basis
                                             marketing order in developing the                        accuracy of the industry information                  throughout the season. Using the form,
                                             proposed reporting requirements. The                     currently available.                                  handlers will be able to calculate their
                                             Committee also worked with USDA to                          The Council agreed these reporting                 assessments due each month based on
                                             ensure the recommended information                       requirements would be necessary to                    the pecans received as listed on the
                                             collection would provide the                             develop accurate reports for the                      report. Handlers will be required to pay
                                             information necessary to facilitate the                  industry regarding pecans being                       to the Council the assessments owed on
                                             administration of the Order.                             produced and handled in the United                    the pecans received by the due date of
                                                At its February 23, 2017, meeting, the                States, and recognized the value to the               the summary report.
                                             Council reviewed drafts of seven                         industry of such reports. Having                         In its discussion of the report of
                                             reporting forms as developed and                         accurate and timely information on the                pecans purchased outside the United
                                             recommended by the Committee. The                        total supply of pecans moving into and                States, the Council agreed it would be
                                             Council expressed its interest in having                 out of the country will also assist the               important to have information regarding
                                             as much electronic reporting as                          industry in managing available supply                 the volume of pecans being imported by
                                             possible, but recognized that many                       and in making marketing decisions.                    production area. The monthly report of
                                             handlers may prefer a paper submission.                  Further, collecting this information                  pecans purchased outside the United
                                             The Council also considered the timing                   monthly will allow the Council to                     States includes the name of the handler
                                             of when forms would be due and                           provide key data regarding total supply               importing pecans, the month covered by
                                             submission dates that would work for                     and inventory to the industry in a more               the report, the date imported, country of
                                             all parts of the industry. After a                       timely fashion throughout the season.                 origin, volume, and variety of pecans
                                             thorough review and some                                    The Council also recognized that                   imported.
                                             modifications, seven forms were                          § 986.65 of the Order requires the                       As production of pecans abroad has
                                             approved by the Council.                                 Council to provide a report and                       increased, there has been an increase in
                                                At a meeting on April 17, 2017, the                   recommendation to the Secretary on the                pecans imported into the United States.
                                             Council revisited the recommended                        Council’s proposed marketing policy for               One Council member stated that the
                                             reporting requirements and the                           the next fiscal year. The report is                   domestic industry is currently shelling
                                             accompanying forms. Acknowledging                        required to include, in part, an estimate             and processing as much as 70 to 75
                                             that the industry was more than halfway                  of production; improved, native, and                  percent of Mexican-grown pecans, and
                                             through the fiscal year at that time, the                substandard pecans; handler inventory;                that Mexican pecans now account for
                                             Council recommended dividing the                         and trade supply, taking into                         nearly 50 percent of sales in the United
                                             reporting requirements into the five                     consideration imported pecans. In                     States. Consequently, having
                                             forms needed beginning with the 2017–                    addition to providing important                       information regarding the volume of
                                             2018 fiscal year and the two forms                       information for industry reports, the                 imported pecans is essential when
                                             needed beginning with the 2016–2017                      reporting requirements covered in this                calculating available supply. Collecting
                                             fiscal year. The two forms required for                  action would provide the information                  this information will greatly improve
                                             the 2016–2017 fiscal year were                           needed to develop the marketing policy.               the accuracy of reports to the industry
                                             established in a separate rulemaking                        Two specific monthly reporting                     as it includes information regarding
                                             action.                                                  requirements will be added to the                     both domestic and imported pecans.
                                                This final rule adds five new                         administrative provisions under the                      One of the Council’s main goals in
                                             reporting requirements and five new                      Order in a new § 986.177, a summary                   developing these reporting requirements
                                             forms to the administrative provisions                   report of domestic pecans received, and               is to deliver to the industry accurate
                                             under the Order by adding §§ 986.177                     a report of pecans purchased outside the              reports regarding the marketplace and
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                                             and 986.178. During the formal                           United States. The summary report of                  supply of pecans to assist the industry
                                             rulemaking hearing to promulgate the                     domestic pecans received includes                     in making its marketing decisions
                                             Order, it was stated that the data                       information on the handler submitting                 throughout the year. The Council
                                             collection component was one of the                      the form, the month covered by the                    believes having accurate information
                                             most important aspects of the Order.                     report, the total weight and type of                  regarding imported pecans is an
                                             Concerns were also expressed regarding                   inshell pecans received, and the weight               essential part of reaching this goal.


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                                                              Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations                                       7359

                                             Further, collecting this information will                consider opportunities for promotion                  Final Regulatory Flexibility Analysis
                                             provide the industry with valuable data                  and market expansion.                                    Pursuant to requirements set forth in
                                             regarding the timing and volume of                         Some of the pecans shipped outside                  the Regulatory Flexibility Act (RFA) (5
                                             pecans imported into the United States.                  the United States are exported just for               U.S.C. 601–612), the Agricultural
                                             Members also agreed having this                          shelling and then returned to the United              Marketing Service (AMS) has
                                             information will assist the Council in                   States for further use. The Council                   considered the economic impact of this
                                             developing its marketing policy as                       recommended an additional reporting                   action on small entities. Accordingly,
                                             required under the Order.                                form to capture this information.                     AMS has prepared this final regulatory
                                                Three additional reporting                            Specifically, the Council recommended                 flexibility analysis.
                                             requirements will be added to the                        collecting information on pecans                         The purpose of the RFA is to fit
                                             administrative provisions in a new                       exported to Mexico for shelling and                   regulatory actions to the scale of
                                             § 986.178: Reports of shipments and                      then returned to the United States. The               businesses subject to such actions in
                                             inventory, exports by country of                         Council decided to limit the reporting to             order that small businesses will not be
                                             destination, and inshell pecans exported                 Mexico since the vast majority of pecans              unduly or disproportionately burdened.
                                             to Mexico for shelling. The report of                    exported for this purpose are being sent              Marketing orders issued pursuant to the
                                             shipments and inventory will include                     to Mexico because of its proximity and                Act, and rules issued thereunder, are
                                             information on the handler submitting                    cost efficiencies. The report of inshell              unique in that they are brought about
                                             the form, the month covered by the                       pecans exported to Mexico for shelling                through group action of essentially
                                             report, shipments of shelled and inshell                 includes information on the handler                   small entities acting on their own
                                             pecans, current inventory, and pecans                    submitting the report, the month                      behalf.
                                             in inventory already committed for                       covered by the report, dates of                          There are approximately 2,500
                                             shipment.                                                shipments, the total weight of inshell                growers of pecans in the production
                                                The Council believes this form will                   pecans shipped for shelling, and the                  area and approximately 250 handlers
                                             provide beneficial information regarding                 weight of shelled pecans returned to the              subject to regulation under the pecan
                                             shipments completed and volume in                        United States.                                        marketing Order. Small agricultural
                                             inventory. While there is currently some                   In discussing this reporting                        growers are defined by the Small
                                             limited information available regarding                  requirement, the Council recognized                   Business Administration as those
                                             pecans in cold storage, this information                 that in addition to shelling some pecans              having annual receipts less than
                                             does not delineate between available                     from the production area, Mexico also                 $750,000, and small agricultural service
                                             inventory and inventory that is already                  exports pecans to the United States.                  firms are defined as those whose annual
                                             committed for shipment. By collecting                    This makes it difficult to determine how              receipts are less than $7,500,000 (13
                                             this information from handlers, this                     much of the import volume reported                    CFR 121.201).
                                             report, in conjunction with the data                     from Mexico is represented by domestic                   According to information from the
                                             regarding pecans received, will allow                    product after shelling. It was expressed              National Agricultural Statistics Service
                                             the Council to provide the industry with                 that without this report, the accuracy of             (NASS), the average grower price for
                                             inventory reports that are more accurate,                data regarding both reported exported                 pecans during the 2015–2016 season
                                             and that provide a clearer picture of                    and imported product could be                         was $2.20 per pound and 254 million
                                             available supply. This data on the                       compromised. Pecans exported for                      pounds were utilized. The value for
                                             available volume of pecans will provide                  shelling could be counted as exports,                 pecans that year totaled $558.8 million
                                             the industry with the information                        and then counted again as imports when                ($2.20 per pound multiplied by 254
                                             needed to make better marketing                          returned to the United States. This                   million pounds). Taking the total value
                                             decisions.                                               reporting requirement will help reduce                of production for pecans and dividing it
                                                When discussing a reporting                           the possibility of double counting of                 by the total number of pecan growers
                                             requirement for exported pecans, the                     these pecans, and will help improve the               provides an average return per grower of
                                             Council expressed the industry’s need                    accuracy of the overall information on                $223,520. Using the average price and
                                             for more information concerning                          supply.                                               utilization information, and assuming a
                                             international trade markets and export                     The Council selected the tenth day of               normal bell-curve distribution of
                                             trends. The report of exports by country                 the month following the month of the                  receipts among growers, the majority of
                                             of destination includes information on                   activity as the due date for all five                 growers receive less than $750,000
                                             the handler submitting the report, the                   reports. Should the tenth day of the                  annually.
                                             month of the report, and the weight of                   month fall on a weekend or holiday,                      Evidence presented at the formal
                                             all shipments of pecans, inshell or                      reports will be due by the first business             rulemaking hearing indicates an average
                                             shelled, by classification, and by                       day following the tenth day of the                    handler margin of $0.58 per pound.
                                             country of destination.                                  month. The five monthly reports will be               Adding this margin to the average
                                                The Council estimated that prior to                   used during the 2017–2018 and                         grower price of $2.20 per pound of
                                             2005, around 10 percent of domestic                      subsequent seasons.                                   inshell pecans results in an estimated
                                             production was being exported. Since                       This action requires pecan handlers to              handler price of $2.78 per pound. With
                                             then, exports have grown considerably                    provide the Council with monthly                      a total 2015 production of 254 million
                                             and now account for between 40 and 50                    reports on pecans received, shipped,                  pounds, ($2.78 per pound multiplied by
                                             percent of production. The                               held in inventory, exported for sale or               254 million pounds) the total value of
                                             recommended form will be used to                         shelling, and purchased from outside                  production in 2015 was $706.12
                                             generate reports throughout the season                   the United States. By establishing these              million. Taking the total value of
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                                             providing industry members with                          reporting requirements, the Council will              production for pecans and dividing it by
                                             information on where product is being                    be able to gather and disseminate this                the total number of pecan handlers
                                             sold and in what volume. Further, the                    information in accurate market reports.               provides an average return per handler
                                             Council could use this information to                    Further, this information will be used to             of $2,824,480. Using this estimated
                                             determine the effectiveness of any                       create a marketing policy each year as                price, the utilization volume, number of
                                             international promotional efforts and to                 required under the Order.                             handlers, and assuming a normal bell-


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                                             7360             Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations

                                             curve distribution of receipts among                     on the summary report of pecans                       not address the initial regulatory
                                             handlers, the majority of handlers have                  received. However, after discussion the               flexibility analysis.
                                             annual receipts of less than $7,500,000.                 Council determined a simpler version                     AMS is committed to complying with
                                             Thus, the majority (a substantial                        with the major commercial varieties and               the E-Government Act, to promote the
                                             number) of growers and handlers of                       room for handlers to enter additional                 use of the internet and other
                                             pecans grown in the states of Alabama,                   varieties as needed would be less                     information technologies to provide
                                             Arkansas, Arizona, California, Florida,                  burdensome. The Council also                          increased opportunities for citizen
                                             Georgia, Kansas, Louisiana, Missouri,                    considered different due dates for these              access to Government information and
                                             Mississippi, North Carolina, New                         monthly reports, including a due date of              services, and for other purposes.
                                             Mexico, Oklahoma, South Carolina, and                    the first, the third and the fifth day after             Further, the Council’s meetings were
                                             Texas may be classified as small                         the month of the activity. However, after             widely publicized throughout the pecan
                                             entities.                                                some discussion, it was determined                    industry and all interested persons were
                                                This final rule establishes reporting                 some handlers may have difficulty                     invited to attend the meetings and
                                             requirements under the Order. This                       meeting these time frames. The 15th day               participate in Council deliberations on
                                             action requires pecan handlers to                        of the month was also suggested, but                  all issues. Additionally, the Council’s
                                             provide the Council with reports of                      Council members thought this would                    Committee meetings held February 23,
                                             pecans received, shipped, held in                        delay the issuance of reports, and                    2017, and April 17, 2017, were also
                                             inventory, exported for sale or shelling,                negatively impact their value.                        public meetings and all entities, both
                                             and purchased from outside the United                    Consequently, the Council agreed to set               large and small, were able to express
                                             States. The Council will use this                        the due date for all five forms at the                views on this issue.
                                             information to provide important                         tenth of the month. The Council also                     A proposed rule concerning this
                                             statistical reports to the industry, to                  considered the value and importance of                action was published in the Federal
                                             meet requirements under the Order, and                   each of the forms, and if all should be               Register on December 4, 2017 (82 FR
                                             to help guide future marketing efforts.                  recommended. However, the Council                     57166). Copies of the rule were sent via
                                             This rule establishes new §§ 986.177                     agreed each of the recommended forms                  email to Council members and known
                                             and 986.178 under the administrative                     provides important information for the                pecan handlers. Finally, the rule was
                                             provisions of the Order. The authority                   industry and for administering the                    made available through the internet by
                                             for this action is provided for in Section               Order. Therefore, the alternatives were               USDA and the Office of the Federal
                                             8(d)(1) of the Act and §§ 986.75, 986.76,                rejected.                                             Register. A 60-day comment period
                                             986.77, and 986.78 of the Order.                            In accordance with the Paperwork
                                                Requiring monthly reports of pecans                                                                         ending February 2, 2018, was provided
                                                                                                      Reduction Act of 1995 (44 U.S.C.                      to allow interested persons to respond
                                             received, shipped, held in inventory,
                                                                                                      Chapter 35), this collection has been                 to the proposal. Two comments were
                                             exported for sale or shelling, and
                                                                                                      submitted to OMB with the reference                   received in support of the proposed
                                             purchased from outside the United
                                                                                                      number 0581—NEW. Upon approval,                       information collection. One commenter
                                             States will impose an increase in the
                                             reporting burden on all pecan handlers.                  the collection will be merged with OMB                stated that, while he worried about the
                                             However, this data is already recorded                   No. 0581–0291, ‘‘Federal Marketing                    cost of pecans going up, he would
                                             and maintained by handlers as a part of                  Order for Pecans.’’ This final rule                   consider the cost worthwhile if the
                                             their daily business. Handlers,                          establishes the use of five new Council               information made the pecan industry
                                             regardless of size, should be able to                    forms, which impose a total annual                    more transparent. The other commenter
                                             readily access and submit this                           burden increase of 2,234.4 hours. The                 stated she appreciates that the
                                             information. Consequently, any                           forms, ‘‘Summary Report U.S. Pecans                   regulation could help improve the
                                             additional costs associated with this                    Received for Your Own Account,’’                      production and transportation of
                                             change would be minimal (not                             ‘‘Pecans Purchased Outside the United                 pecans.
                                             significant) and apply equally to all                    States,’’ ‘‘Report of Shipments and                      Accordingly, no changes will be made
                                             handlers.                                                Inventory on Hand,’’ ‘‘Exports by                     to the rule as proposed, based on the
                                                This action should also help the                      Country of Destination,’’ and ‘‘Inshell               comments received.
                                             entire industry by providing                             Pecans Exported to Mexico for Shelling                   A small business guide on complying
                                             comprehensive data on pecans received,                   and Returned to the United States as                  with fruit, vegetable, and specialty crop
                                             shipped, held in inventory, exported for                 Shelled Meats,’’ require the minimum                  marketing agreements and orders may
                                             sale or shelling, and purchased from                     information necessary to effectively                  be viewed at: http://www.ams.usda.gov/
                                             outside the United States. Collection of                 carry out the requirements of the Order.              rules-regulations/moa/small-businesses.
                                             this data was one of the industry’s goals                The information would enable the                      Any questions about the compliance
                                             in promulgating the Order as there is no                 Council to provide statistical reports to             guide should be sent to Richard Lower
                                             other source for this type of data. This                 the industry, meet requirements under                 at the previously-mentioned address in
                                             information should provide accurate                      the Order, and help guide future                      the FOR FURTHER INFORMATION CONTACT
                                             information regarding available                          marketing efforts.                                    section.
                                             inventory, help with marketing and                          As with all Federal marketing order                   After consideration of all relevant
                                             planning for the industry, provide                       programs, reports and forms are                       matter presented, including the
                                             important information for the collection                 periodically reviewed to reduce                       information and recommendation of the
                                             of assessments, and assist with                          information requirements and                          Council and other available information,
                                             preparing the annual marketing policy                    duplication by industry and public                    it is hereby found that this rule, as
                                                                                                      sector agencies.
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                                             required by the Order. The benefits of                                                                         hereinafter set forth, will tend to
                                             this action are expected to be equally                      As noted in the initial regulatory                 effectuate the declared policy of the Act.
                                             available to all pecan growers and                       flexibility analysis, USDA has not
                                                                                                      identified any relevant Federal rules                 List of Subjects in 7 CFR Part 986
                                             handlers, regardless of their size.
                                                The Council discussed other                           that duplicate, overlap, or conflict with               Marketing agreements, Nuts, Pecans,
                                             alternatives to this action. The Council                 this rule. Further, the public comments               Reporting and recordkeeping
                                             considered listing additional varieties                  received concerning the proposal did                  requirements.


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                                                              Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations                                              7361

                                               For the reasons set forth in the                       ■ 3. Add § 986.178 to subpart B to read               reports are due by the first business day
                                             preamble, 7 CFR part 986 is amended as                   as follows:                                           following the tenth day of the month.
                                             follows:                                                                                                       The report shall be submitted to the
                                                                                                      § 986.178    Other reports.                           Council on APC Form 5 and contain the
                                             PART 986—PECANS GROWN IN THE                               (a) Report of shipments and inventory               following information:
                                             STATES OF ALABAMA, ARKANSAS,                             on hand. Handlers shall submit to the                   (1) The name and address of the
                                             ARIZONA, CALIFORNIA, FLORIDA,                            Council, by the tenth day of the month                handler;
                                             GEORGIA, KANSAS, LOUISIANA,                              following the month of activity, a report               (2) The month covered by the report;
                                             MISSOURI, MISSISSIPPI, NORTH                             of all shipments, inventory, and                        (3) The date of inshell shipment(s);
                                             CAROLINA, NEW MEXICO,                                    committed inventory for pecans. Should                  (4) The weight of pecans exported for
                                             OKLAHOMA, SOUTH CAROLINA, AND                            the tenth day of the month fall on a                  shelling;
                                             TEXAS                                                    weekend or holiday, reports are due by                  (5) The date shelled pecans returned
                                                                                                      the first business day following the                  to the United States after shelling;
                                             ■ 1. The authority citation for 7 CFR                    tenth day of the month. The report shall                (6) The weight of shelled pecans
                                             part 986 continues to read as follows:                   be submitted to the Council on APC                    returned to the United States after
                                                 Authority: 7 U.S.C. 601–674.                         Form 2 and contain the following                      shelling; and
                                                                                                      information:                                            (7) The total weight of inshell pecans
                                             ■ 2. Add § 986.177 to subpart B to read
                                                                                                        (1) The name and address of the                     exported to Mexico for shelling, and
                                             as follows:
                                                                                                      handler;                                              shelled pecans returned from Mexico,
                                             § 986.177 Reports of pecans received by                    (2) The month covered by the report;                year to date.
                                             handlers.                                                  (3) The weight of all shipments of                    Dated: February 15, 2018.
                                               (a) Summary report U.S. pecans                         pecans, inshell and shelled, and inter-
                                                                                                                                                            Bruce Summers,
                                             received for your own account. Handlers                  handler transfers shipped and received
                                                                                                                                                            Acting Administrator, Agricultural Marketing
                                             shall submit to the Council, by the tenth                during the reporting period;
                                                                                                                                                            Service.
                                             day of the month, a summary report of                      (4) The weight of all shipments of
                                                                                                                                                            [FR Doc. 2018–03500 Filed 2–20–18; 8:45 am]
                                             inshell domestic pecans received during                  pecans, inshell and shelled, and inter-
                                                                                                      handler transfers shipped and received                BILLING CODE 3410–02–P
                                             the preceding month. Should the tenth
                                             day of the month fall on a weekend or                    in the previous month and year to date;
                                             holiday, reports are due by the first                      (5) Total inventory held by handler;
                                             business day following the tenth day of                    (6) All the inventory committed                     SMALL BUSINESS ADMINISTRATION
                                             the month. The report shall be                           (pecans not shipped, but sold or
                                                                                                      otherwise obligated) whether for                      13 CFR Parts 107, 120, 142, and 146
                                             submitted to the Council on APC Form
                                             1 and contain the following information:                 domestic sale or export; and,                         RIN 3245–AG96
                                               (1) The name and address of the                          (7) The weight of all shelled or inshell
                                             handler;                                                 pecans under contract for purchase from               Civil Monetary Penalties Inflation
                                               (2) The month covered by the report;                   other handlers.                                       Adjustments
                                               (3) The total weight and type of                         (b) Exports by country of destination.
                                                                                                      Handlers shall submit to the Council, by              AGENCY:  U.S. Small Business
                                             inshell pecans received, and the weight                                                                        Administration.
                                             by variety for improved pecans received                  the tenth day of the month following the
                                                                                                      month of shipment, a report of exports.               ACTION: Final rule.
                                             during the reporting period;
                                               (4) The total weight and type of                       Should the tenth day of the month fall                SUMMARY:   The Small Business
                                             inshell pecans received, and the weight                  on a weekend or holiday, reports are                  Administration (SBA) is amending its
                                             by variety for improved pecans received                  due by the first business day following               regulations to adjust for inflation the
                                             year to date; and,                                       the tenth day of the month. The report                amount of certain civil monetary
                                               (5) Assessments due on pecans                          shall be reported to the Council on APC               penalties that are within the jurisdiction
                                             received during the reporting period to                  Form 3 and contain the following                      of the agency. These adjustments
                                             be paid by the due date of the report.                   information:                                          comply with the requirement in the
                                               (b) Pecans purchased outside the                         (1) The name and address of the
                                                                                                                                                            Federal Civil Penalties Inflation
                                             United States. Handlers shall submit to                  handler;
                                                                                                                                                            Adjustment Act of 1990, as amended by
                                             the Council, by the tenth day of the                       (2) The month covered by the report;
                                                                                                                                                            the Federal Civil Penalties Inflation
                                             month, a summary report of shelled and                     (3) The total weight of pecans shipped
                                                                                                                                                            Adjustment Act Improvements Act of
                                             inshell pecans imported during the                       for export, whether inshell, shelled, or
                                                                                                                                                            2015, to make annual adjustments to the
                                             preceding month. Should the tenth day                    substandard during the reporting
                                                                                                                                                            penalties.
                                             of the month fall on a weekend or                        period;
                                                                                                        (4) The total weight of pecans shipped              DATES: Effective Date: This rule is
                                             holiday, reports are due by the first
                                             business day following the tenth day of                  for export, whether inshell, shelled, or              effective February 21, 2018.
                                             the month. The report shall be                           substandard during the previous period                FOR FURTHER INFORMATION CONTACT:
                                             submitted to the Council on APC Form                     and year to date; and,                                Arlene Embrey, 202–205–6976, or at
                                             6 and contain the following information:                   (5) The destination(s) of such exports.             arlene.embrey@sba.gov.
                                               (1) The name and address of the                          (c) Inshell pecans exported to Mexico               SUPPLEMENTARY INFORMATION:
                                             handler;                                                 for shelling and returned to the United
                                                                                                      States as shelled meats. Handlers shall               I. Background
                                               (2) The month covered by the report;
                                                                                                      submit to the Council, by the tenth day                 On November 2, 2015, the Federal
daltland on DSKBBV9HB2PROD with RULES




                                               (3) The date the pecans were
                                             imported;                                                of the month following the month of                   Civil Penalties Inflation Adjustment Act
                                               (4) The country of origin; and,                        shipment, a report of all inshell pecans              Improvements Act of 2015 (the 2015
                                               (5) The total weight of shelled and                    exported to Mexico for shelling and                   Inflation Adjustment Improvements
                                             inshell pecans received, and the weight                  returned to the United States as shelled              Act), Public Law 114–74, 129 Stat. 584,
                                             by variety for improved pecans                           pecans. Should the tenth day of the                   was enacted. This act amended the
                                             received.                                                month fall on a weekend or holiday,                   Federal Civil Penalties Inflation


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Document Created: 2018-02-21 01:48:55
Document Modified: 2018-02-21 01:48:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective March 23, 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 7357 
CFR AssociatedMarketing Agreements; Nuts; Pecans and Reporting and Recordkeeping Requirements

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