Walnuts Grown in California; Increased Assessment Rate, 72892-72895 [05-23818]
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Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations
Country/locality
Common name
Prunus domestica spp.
domestica.
Pomegranate .....................
Punica granatum ................
Quince ...............................
Cydonia oblonga ................
Fruit. (Treatment for Anastrepha spp. fruit flies and
Medfly not required if fruit is grown in a fruit fly-free
area (see § 319.56–2(j)).
Fruit. (Treatment for Anastrepha spp. fruit flies and
Medfly not required if fruit is grown in a fruit fly-free
area (see § 319.56–2(j)).
Fruit. (Treatment for Anastrepha spp. fruit flies and
Medfly not required if fruit is grown in a fruit fly-free
area (see § 319.56–2(j)).
Fruit. (Treatment for Anastrepha spp. fruit flies and
Medfly not required if fruit is grown in a fruit fly-free
area (see § 319.56–2(j)).
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Apple ..................................
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Malus domestica ................
Avocado .............................
Persea americana ..............
Cherry ................................
Prunus avium, P. cerasus
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Pear ...................................
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Colombia ............................
Pyrus communis ................
Plum ...................................
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Plant part(s)
Pear ...................................
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Chile ...................................
Botanical name
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Pyrus communis ................
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Fruit. (Treatment for Mediterranean fruit fly (Medfly) not
required if fruit is grown in a Medfly-free area (see
§ 319.56–2(j)).
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Blueberry ............................
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Vaccinium spp. ..................
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Fruit.
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Tuna ...................................
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*
Fruit. (Treatment for
required if fruit is
§ 319.56–2(j)).
Fruit. (Treatment for
required if fruit is
§ 319.56–2(j)).
Fruit. (Treatment for
required if fruit is
§ 319.56–2(j)).
*
*
Mediterranean fruit fly (Medfly) not
grown in a Medfly-free area (see
Mediterranean fruit fly (Medfly) not
grown in a Medfly-free area (see
Mediterranean fruit fly (Medfly) not
grown in a Medfly-free area (see
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Israel
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§ 319.56–2gg
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Opuntia spp. ......................
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[Amended]
19. In § 319.56–2gg, paragraph (d) is
amended by removing the word
‘‘Deputy’’.
I
Done in Washington, DC, this 2nd day of
December 2005.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 05–23790 Filed 12–7–05; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
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Fruit.
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SUMMARY: This rule increases the
assessment rate established for the
Walnut Marketing Board (Board) for the
2005–06 and subsequent marketing
years from $0.0094 to $0.0096 per
kernelweight pound of assessable
walnuts. The Board locally administers
the marketing order which regulates the
handling of walnuts grown in
California. Assessments upon walnut
handlers are used by the Board to fund
reasonable and necessary expenses of
the program. The marketing year began
August 1 and ends July 31. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
Agricultural Marketing Service
DATES:
7 CFR Part 984
FOR FURTHER INFORMATION CONTACT:
[Docket No. FV05–984–2 FR]
Walnuts Grown in California; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
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15:29 Dec 07, 2005
Jkt 208001
Effective Date: December 9, 2005.
Shereen Marino, Marketing Specialist,
California Marketing Field Office, Fruit
and Vegetable Programs, AMS, USDA;
Telephone: (559) 487–5901, Fax: (559)
487–5906; or George Kelhart, Technical
Advisor, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
0237, Washington, DC 20250–0237;
Telephone: (202) 720–2491, Fax: (202)
720–8938. Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
This rule
is issued under Marketing Agreement
and Order No. 984, both as amended (7
CFR part 984), regulating the handling
of walnuts grown in California,
hereinafter referred to as the ‘‘order.’’
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 Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations
Reform. Under the marketing order now
in effect, California walnut handlers are
subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable walnuts
beginning on August 1, 2005, and
continue until amended, suspended, or
terminated. This rule will not preempt
any State or local laws, regulations, or
policies, unless they present an
irreconcilable conflict with this rule.
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. Such
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 rule increases the assessment
rate established for the Board for the
2005–06 and subsequent marketing
years from $0.0094 to $0.0096 per
kernelweight pound of assessable
walnuts.
The California walnut marketing
order provides authority for the Board,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
of the Board are producers and handlers
of California walnuts. They are familiar
with the Board’s needs and the costs for
goods and services in their local area
and are thus in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed at a public meeting.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2004–05 and subsequent
marketing years, the Board
recommended, and USDA approved, an
assessment rate of $0.0094 per
kernelweight of assessable walnuts that
continued in effect from year to year
unless modified, suspended, or
terminated by USDA upon
recommendation and information
submitted by the Board or other
information available to USDA.
The Board met on September 9, 2005,
and unanimously recommended 2005–
06 expenditures of $2,937,600 and an
assessment rate of $0.0096 per
kernelweight pound of assessable
walnuts. In comparison, last year’s
budgeted expenditures were $2,749,500.
The assessment rate of $0.0096 per
kernelweight pound of assessable
walnuts is $0.0002 per pound higher
than the rate currently in effect. The
increased assessment rate is necessary
because this year’s crop is estimated by
the California Agricultural Statistics
Service (CASS) to be 340,000 tons
(306,000,000 kernelweight pounds
merchantable), and the budget is about
6.4 percent more than last year’s budget.
The crop is smaller than expected due
to sunburn caused by warmer than
normal temperatures during the growing
season. The higher assessment rate
should generate sufficient income to
cover anticipated 2005–06 expenses.
The following table compares major
budget expenditures recommended by
the Board for the 2004–05 and 2005–06
marketing years:
Budget expense categories
2004–05
Administrative Staff/Field Salaries & Benefits .........................................................................................................
Travel/Board Expenses ...........................................................................................................................................
Office Costs/Annual Audit ........................................................................................................................................
Program Expenses Including Research:
Controlled Purchases .......................................................................................................................................
Crop Acreage Survey .......................................................................................................................................
Crop Estimate ...................................................................................................................................................
Production Research Director ..........................................................................................................................
Production Research ........................................................................................................................................
Domestic Market Development ........................................................................................................................
Reserve for Contingency ..................................................................................................................................
The assessment rate recommended by
the Board was derived by dividing
anticipated expenses by expected
shipments of California walnuts
certified as merchantable. Merchantable
shipments for the year are estimated at
306,000,000 kernelweight pounds
which should provide $2,937,600 in
assessment income and allow the Board
to cover its expenses. Unexpended
funds may be used temporarily to defray
expenses of the subsequent marketing
year, but must be made available to the
handlers from whom collected within 5
months after the end of the year,
according to § 984.69.
The assessment rate will continue in
effect indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
VerDate Aug<31>2005
15:29 Dec 07, 2005
Jkt 208001
submitted by the Board or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Board will continue to meet prior to or
during each marketing year to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Board meetings are
available from the Board or USDA.
Board meetings are open to the public
and interested persons may express
their views at these meetings. USDA
will evaluate Board recommendations
and other available information to
determine whether modification of the
assessment rate is needed. Further
rulemaking will be undertaken as
necessary. The Board’s 2005–06 budget
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72893
2005–06
$332,000
69,000
124,000
$360,000
80,000
132,500
5,000
........................
94,000
76,500
548,500
1,393,500
107,000
5,000
85,000
95,000
75,000
500,000
1,550,000
55,100
and those for subsequent marketing
years would be reviewed and, as
appropriate, approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
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Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 50 handlers
of California walnuts subject to
regulation under the marketing order
and approximately 5,500 growers in the
production area. Small agricultural
service firms are defined by the Small
Business Administration (13 CFR
121.201) as those whose annual receipts
are less than $6,000,000, and small
agricultural producers are defined as
those whose annual receipts are less
than $750,000.
Current industry information shows
that 15 of the 50 handlers (30 percent)
shipped over $6,000,000 of
merchantable walnuts and could be
considered large handlers by the Small
Business Administration. Thirty-five of
the 50 walnut handlers (70 percent)
shipped under $6,000,000 of
merchantable walnuts and could be
considered small handlers.
The number of large walnut growers
(annual walnut revenue greater than
$750,000) can be estimated as follows.
According to the National Agricultural
Statistics Service (NASS), the average
yield per acre for 2002–04 is 1.457 tons.
A grower with 420 acres would produce
approximately 612 tons. The average of
grower prices for 2002–04 (published by
NASS) is $1,227 per ton. At that average
price, the 612 tons produced on 420
acres would yield approximately
$750,000 in annual revenue. The 2002
Agricultural Census indicated 56
percent of walnut farms were 500 acres
or larger, which is close to the 420 acres
required to produce $750,000 in
revenue. Thus, it can be concluded that
the number of large walnut farms in
2005 is still likely to be under one
percent. Based on the foregoing, it can
be concluded that the majority of
California walnut handlers and
producers may be classified as small
entities.
This rule increases the assessment
rate established for the Board and
collected from handlers for the 2005–06
and subsequent marketing years from
$0.0094 per kernelweight pound of
assessable walnuts to $0.0096 per
kernelweight pound of assessable
walnuts. The Board unanimously
recommended 2005–06 expenditures of
$2,937,600 and an assessment rate of
$0.0096 per kernelweight pound of
assessable walnuts. The assessment rate
of $0.0096 is $0.0002 higher than the
rate currently in effect. The quantity of
assessable walnuts for the 2005–06
marketing year is estimated at 340,000
tons (306,000,000 merchantable
kernelweight pounds. Thus, the $0.0096
rate should provide $2,937,600 in
assessment income and be adequate to
meet this year’s expenses. The increased
assessment rate is primarily due to
increased budget expenditures and
based on an estimated crop of 340,000
tons for the year (306,000,000
kernelweight pounds estimated
merchantable).
The following table compares major
budget expenditures recommended by
the Board for the 2004–05 and 2005–06
fiscal years:
Budget expense categories
2004–05
Administrative Staff/Field Salaries & Benefits .........................................................................................................
Travel/Board Expenses ...........................................................................................................................................
Office Costs/Annual Audit ........................................................................................................................................
Program Expenses Including Research:
Controlled Purchases .......................................................................................................................................
Crop Acreage Survey .......................................................................................................................................
Crop Estimate ...................................................................................................................................................
Production Research Director ..........................................................................................................................
Production Research ........................................................................................................................................
Domestic Market Development ........................................................................................................................
Reserve for Contingency ..................................................................................................................................
The Board reviewed and unanimously
recommended 2005–06 expenditures of
$2,937,600, which included increases in
several expense categories. Prior to
arriving at this budget, the Board
considered alternative expenditure
levels, but ultimately decided that the
recommended levels were reasonable to
properly administer the order. The
assessment rate recommended by the
Board was derived by dividing
anticipated expenses by expected
shipments of California walnuts
certified as merchantable. Merchantable
shipments for the year are estimated at
306,000,000 kernelweight pounds
which should provide $2,937,600 in
assessment income and allow the Board
to cover its expenses. Unexpended
funds may be used temporarily to defray
expenses of the subsequent marketing
year, but must be made available to the
handlers from whom collected within 5
months after the end of the year,
according to § 984.69.
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Jkt 208001
According to NASS, the season
average grower prices for years 2003 and
2004 were $1,160 and $1,350 per ton
respectively. Dividing these average
grower prices by 2,000 pounds per ton
provides an inshell price per pound
range of between $.58 and $.68.
Adjusting by a few cents above and
below those prices ($0.55 to $0.70 per
inshell pound) provides a reasonable
price range within which the 2005–06
season average price is likely to fall.
Dividing these inshell prices per pound
by the 0.45 conversion factor designated
in the order yields a 2005–06 price
range estimate of $1.22 and $1.56 per
kernelweight pound of assessable
walnuts.
To calculate the percentage of grower
revenue represented by the assessment
rate, the assessment rate of $0.0096 (per
kernelweight pound) is divided into the
low and high estimates of the price
range. The estimated assessment
revenue for the 2005–06 marketing year
as a percentage of total grower revenue
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2005–06
$332,000
69,000
124,000
$360,000
80,000
132,500
5,000
........................
94,000
76,500
548,500
1,393,500
107,000
5,000
85,000
95,000
75,000
500,000
1,550,000
55,100
would likely range between .8 and .6
percent.
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to producers. However, these costs
would be offset by the benefits derived
by the operation of the marketing order.
In addition, the Board’s meeting was
widely publicized throughout the
California walnut industry and all
interested persons were invited to
attend the meeting and participate in
Board deliberations on all issues. Like
all Board meetings, the September 9,
2005, meeting was a public meeting and
all entities, both large and small, were
able to express views on this issue.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large California
walnut handlers. As with all Federal
marketing order programs, reports and
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Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Rules and Regulations
forms are periodically reviewed to
reduce information requirements and
duplication by industry and public
sector agencies.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A proposed rule concerning this
action was published in the Federal
Register on November 4, 2005 (70 FR
67096). Copies of the proposed rule
were also mailed or sent via facsimile to
all walnut handlers. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 10-day comment
period ending on November 14, 2005,
was provided for interested persons to
respond to the proposal. No comments
were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Board 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.
Pursuant to 5 U.S.C 553, it also found
and determined that good cause exists
for not postponing the effective date of
this rule until 30 days after publication
in the Federal Register because
handlers are already receiving the 2005
walnut crop from growers. The
marketing year began on August 1, 2005,
and the assessment rate applies to all
walnuts received during the 2005–06
and subsequent seasons. The Board
needs to have sufficient funds to pay its
expenses which are incurred on a
continuous basis. Further, handlers are
aware of this rule which was
recommended at a public meeting. Also
a 10-day comment period was provided
in the proposed rule and no comments
were received.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts,
Reporting and recordkeeping
requirements, Walnuts.
For the reasons set forth in the
preamble, 7 CFR part 984 is to be
amended as follows:
I
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Jkt 208001
PART 984—WALNUTS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 984 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. Section 984.347 is revised to read
as follows:
I
§ 984.347
Assessment rate.
On and after August 1, 2005, an
assessment rate of $0.0096 per
kernelweight pound is established for
California merchantable walnuts.
Dated: December 5, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 05–23818 Filed 12–5–05; 4:29 pm]
BILLING CODE 3410–02–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 707
RIN 3133–AC57
Truth in Savings
National Credit Union
Administration (NCUA).
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: As required by the Truth in
Savings Act, the NCUA is amending its
rule and official staff interpretation to
address the uniformity and adequacy of
information provided to members when
they overdraw their share accounts. The
amendments address services referred to
as ‘‘bounced-check protection’’ or
‘‘courtesy overdraft protection’’ that pay
members’ checks and allow other
overdrafts when there are insufficient
funds in the account. The interim final
rule creates a new section in the
regulation and requires credit unions
that promote the payment of overdrafts
in advertisements to disclose fees and
other information in advertisements of
overdraft services.
DATES: This rule is effective December 8,
2005. To allow time for any necessary
operational changes, however, the
mandatory compliance date for the
interim final rule is July 1, 2006.
Comments must be received on or
before February 6, 2006.
ADDRESSES: You may submit comments
by any of the following methods (Please
send comments by one method only):
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• NCUA Web site: https://
www.ncua.gov/
PO 00000
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RegulationsOpinionsLaws/
proposed_regs/proposed_regs.html.
Follow the instructions for submitting
comments.
• E-mail: Address to
regcomments@ncua.gov. Include ‘‘[Your
name] Comments on Part 707 Truth in
Savings’’ in the e-mail subject line.
• Fax: (703) 518–6319. Use the
subject line described above for e-mail.
• Mail: Address to Mary Rupp,
Secretary of the Board, National Credit
Union Administration, 1775 Duke
Street, Alexandria, Virginia 22314–
3428.
• Hand Delivery/Courier: Same as
mail address.
Public Inspection: All public
comments are available on the agency’s
Web site at https://www.ncua.gov/
RegulationsOpinionsLaws/comments as
submitted, except as may not be
possible for technical reasons. Public
comments will not be edited to remove
any identifying or contact information.
Paper copies of comments may be
inspected in NCUA’s law library at 1775
Duke Street, Alexandria, Virginia 22314,
by appointment weekdays between 9
a.m. and 3 p.m. To make an
appointment, call (703) 518–6540 or
send an e-mail to OGCMail@ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Moisette I. Green or Frank S. Kressman,
Staff Attorneys, at the address above or
telephone: (703) 518–6540.
SUPPLEMENTARY INFORMATION:
I. Background
In November 2002, the Board of
Governors of the Federal Reserve
System (Federal Reserve) solicited
comment about financial institutions’
current overdraft services to determine
the need for guidance to depository
institutions under 12 CFR part 226
(Regulation Z) and other laws. 67 FR
72618 (December 6, 2002). Based on
comments it received, the Federal
Reserve amended 12 CFR part 230
(Regulation DD), and its staff
commentary in May 2005. 70 FR 29582
(May 24, 2005). Regulation DD, the
Federal Reserve’s implementation of the
Truth in Savings Act (TISA), now
requires banks to disclose rates and fees
charged as a part of ‘‘bounced-check
protection’’ or ‘‘courtesy overdraft
protection’’ programs offered as an
alternative to traditional overdraft lines
of credit. The Federal Reserve’s final
rule also requires financial institutions
that promote the payment of overdrafts
in an advertisement to: (1) Disclose the
total fees imposed for paying overdrafts
and returning unpaid items on periodic
statements for both the statement period
and the calendar year to date and (2)
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]]>Agencies
[Federal Register Volume 70, Number 235 (Thursday, December 8, 2005)]
[Rules and Regulations]
[Pages 72892-72895]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23818]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. FV05-984-2 FR]
Walnuts Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule increases the assessment rate established for the
Walnut Marketing Board (Board) for the 2005-06 and subsequent marketing
years from $0.0094 to $0.0096 per kernelweight pound of assessable
walnuts. The Board locally administers the marketing order which
regulates the handling of walnuts grown in California. Assessments upon
walnut handlers are used by the Board to fund reasonable and necessary
expenses of the program. The marketing year began August 1 and ends
July 31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective Date: December 9, 2005.
FOR FURTHER INFORMATION CONTACT: Shereen Marino, Marketing Specialist,
California Marketing Field Office, Fruit and Vegetable Programs, AMS,
USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906; or George
Kelhart, Technical Advisor, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW.,
STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax:
(202) 720-8938. Small businesses may request information on complying
with this regulation by contacting Jay Guerber, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 984, both as amended (7 CFR part 984),
regulating the handling of walnuts grown in California, hereinafter
referred to as the ``order.'' 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 Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice
[[Page 72893]]
Reform. Under the marketing order now in effect, California walnut
handlers are subject to assessments. Funds to administer the order are
derived from such assessments. It is intended that the assessment rate
as issued herein will be applicable to all assessable walnuts beginning
on August 1, 2005, and continue until amended, suspended, or
terminated. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
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. Such
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 rule increases the assessment rate established for the Board
for the 2005-06 and subsequent marketing years from $0.0094 to $0.0096
per kernelweight pound of assessable walnuts.
The California walnut marketing order provides authority for the
Board, with the approval of USDA, to formulate an annual budget of
expenses and collect assessments from handlers to administer the
program. The members of the Board are producers and handlers of
California walnuts. They are familiar with the Board's needs and the
costs for goods and services in their local area and are thus in a
position to formulate an appropriate budget and assessment rate. The
assessment rate is formulated and discussed at a public meeting. Thus,
all directly affected persons have an opportunity to participate and
provide input.
For the 2004-05 and subsequent marketing years, the Board
recommended, and USDA approved, an assessment rate of $0.0094 per
kernelweight of assessable walnuts that continued in effect from year
to year unless modified, suspended, or terminated by USDA upon
recommendation and information submitted by the Board or other
information available to USDA.
The Board met on September 9, 2005, and unanimously recommended
2005-06 expenditures of $2,937,600 and an assessment rate of $0.0096
per kernelweight pound of assessable walnuts. In comparison, last
year's budgeted expenditures were $2,749,500. The assessment rate of
$0.0096 per kernelweight pound of assessable walnuts is $0.0002 per
pound higher than the rate currently in effect. The increased
assessment rate is necessary because this year's crop is estimated by
the California Agricultural Statistics Service (CASS) to be 340,000
tons (306,000,000 kernelweight pounds merchantable), and the budget is
about 6.4 percent more than last year's budget. The crop is smaller
than expected due to sunburn caused by warmer than normal temperatures
during the growing season. The higher assessment rate should generate
sufficient income to cover anticipated 2005-06 expenses.
The following table compares major budget expenditures recommended
by the Board for the 2004-05 and 2005-06 marketing years:
------------------------------------------------------------------------
Budget expense categories 2004-05 2005-06
------------------------------------------------------------------------
Administrative Staff/Field Salaries & $332,000 $360,000
Benefits...............................
Travel/Board Expenses................... 69,000 80,000
Office Costs/Annual Audit............... 124,000 132,500
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Acreage Survey................. .............. 85,000
Crop Estimate....................... 94,000 95,000
Production Research Director........ 76,500 75,000
Production Research................. 548,500 500,000
Domestic Market Development......... 1,393,500 1,550,000
Reserve for Contingency............. 107,000 55,100
------------------------------------------------------------------------
The assessment rate recommended by the Board was derived by
dividing anticipated expenses by expected shipments of California
walnuts certified as merchantable. Merchantable shipments for the year
are estimated at 306,000,000 kernelweight pounds which should provide
$2,937,600 in assessment income and allow the Board to cover its
expenses. Unexpended funds may be used temporarily to defray expenses
of the subsequent marketing year, but must be made available to the
handlers from whom collected within 5 months after the end of the year,
according to Sec. 984.69.
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by USDA upon recommendation and
information submitted by the Board or other available information.
Although this assessment rate will be in effect for an indefinite
period, the Board will continue to meet prior to or during each
marketing year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Board meetings are available from the Board or USDA. Board
meetings are open to the public and interested persons may express
their views at these meetings. USDA will evaluate Board recommendations
and other available information to determine whether modification of
the assessment rate is needed. Further rulemaking will be undertaken as
necessary. The Board's 2005-06 budget and those for subsequent
marketing years would be reviewed and, as appropriate, approved by
USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this rule on small entities. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially
[[Page 72894]]
small entities acting on their own behalf. Thus, both statutes have
small entity orientation and compatibility.
There are approximately 50 handlers of California walnuts subject
to regulation under the marketing order and approximately 5,500 growers
in the production area. Small agricultural service firms are defined by
the Small Business Administration (13 CFR 121.201) as those whose
annual receipts are less than $6,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$750,000.
Current industry information shows that 15 of the 50 handlers (30
percent) shipped over $6,000,000 of merchantable walnuts and could be
considered large handlers by the Small Business Administration. Thirty-
five of the 50 walnut handlers (70 percent) shipped under $6,000,000 of
merchantable walnuts and could be considered small handlers.
The number of large walnut growers (annual walnut revenue greater
than $750,000) can be estimated as follows. According to the National
Agricultural Statistics Service (NASS), the average yield per acre for
2002-04 is 1.457 tons. A grower with 420 acres would produce
approximately 612 tons. The average of grower prices for 2002-04
(published by NASS) is $1,227 per ton. At that average price, the 612
tons produced on 420 acres would yield approximately $750,000 in annual
revenue. The 2002 Agricultural Census indicated 56 percent of walnut
farms were 500 acres or larger, which is close to the 420 acres
required to produce $750,000 in revenue. Thus, it can be concluded that
the number of large walnut farms in 2005 is still likely to be under
one percent. Based on the foregoing, it can be concluded that the
majority of California walnut handlers and producers may be classified
as small entities.
This rule increases the assessment rate established for the Board
and collected from handlers for the 2005-06 and subsequent marketing
years from $0.0094 per kernelweight pound of assessable walnuts to
$0.0096 per kernelweight pound of assessable walnuts. The Board
unanimously recommended 2005-06 expenditures of $2,937,600 and an
assessment rate of $0.0096 per kernelweight pound of assessable
walnuts. The assessment rate of $0.0096 is $0.0002 higher than the rate
currently in effect. The quantity of assessable walnuts for the 2005-06
marketing year is estimated at 340,000 tons (306,000,000 merchantable
kernelweight pounds. Thus, the $0.0096 rate should provide $2,937,600
in assessment income and be adequate to meet this year's expenses. The
increased assessment rate is primarily due to increased budget
expenditures and based on an estimated crop of 340,000 tons for the
year (306,000,000 kernelweight pounds estimated merchantable).
The following table compares major budget expenditures recommended
by the Board for the 2004-05 and 2005-06 fiscal years:
------------------------------------------------------------------------
Budget expense categories 2004-05 2005-06
------------------------------------------------------------------------
Administrative Staff/Field Salaries & $332,000 $360,000
Benefits...............................
Travel/Board Expenses................... 69,000 80,000
Office Costs/Annual Audit............... 124,000 132,500
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Acreage Survey................. .............. 85,000
Crop Estimate....................... 94,000 95,000
Production Research Director........ 76,500 75,000
Production Research................. 548,500 500,000
Domestic Market Development......... 1,393,500 1,550,000
Reserve for Contingency............. 107,000 55,100
------------------------------------------------------------------------
The Board reviewed and unanimously recommended 2005-06 expenditures
of $2,937,600, which included increases in several expense categories.
Prior to arriving at this budget, the Board considered alternative
expenditure levels, but ultimately decided that the recommended levels
were reasonable to properly administer the order. The assessment rate
recommended by the Board was derived by dividing anticipated expenses
by expected shipments of California walnuts certified as merchantable.
Merchantable shipments for the year are estimated at 306,000,000
kernelweight pounds which should provide $2,937,600 in assessment
income and allow the Board to cover its expenses. Unexpended funds may
be used temporarily to defray expenses of the subsequent marketing
year, but must be made available to the handlers from whom collected
within 5 months after the end of the year, according to Sec. 984.69.
According to NASS, the season average grower prices for years 2003
and 2004 were $1,160 and $1,350 per ton respectively. Dividing these
average grower prices by 2,000 pounds per ton provides an inshell price
per pound range of between $.58 and $.68. Adjusting by a few cents
above and below those prices ($0.55 to $0.70 per inshell pound)
provides a reasonable price range within which the 2005-06 season
average price is likely to fall. Dividing these inshell prices per
pound by the 0.45 conversion factor designated in the order yields a
2005-06 price range estimate of $1.22 and $1.56 per kernelweight pound
of assessable walnuts.
To calculate the percentage of grower revenue represented by the
assessment rate, the assessment rate of $0.0096 (per kernelweight
pound) is divided into the low and high estimates of the price range.
The estimated assessment revenue for the 2005-06 marketing year as a
percentage of total grower revenue would likely range between .8 and .6
percent.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the
marketing order. In addition, the Board's meeting was widely publicized
throughout the California walnut industry and all interested persons
were invited to attend the meeting and participate in Board
deliberations on all issues. Like all Board meetings, the September 9,
2005, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large California walnut handlers. As
with all Federal marketing order programs, reports and
[[Page 72895]]
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on November 4, 2005 (70 FR 67096). Copies of the proposed rule
were also mailed or sent via facsimile to all walnut handlers. Finally,
the proposal was made available through the Internet by USDA and the
Office of the Federal Register. A 10-day comment period ending on
November 14, 2005, was provided for interested persons to respond to
the proposal. No comments were 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/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Board 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.
Pursuant to 5 U.S.C 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because handlers are
already receiving the 2005 walnut crop from growers. The marketing year
began on August 1, 2005, and the assessment rate applies to all walnuts
received during the 2005-06 and subsequent seasons. The Board needs to
have sufficient funds to pay its expenses which are incurred on a
continuous basis. Further, handlers are aware of this rule which was
recommended at a public meeting. Also a 10-day comment period was
provided in the proposed rule and no comments were received.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts, Reporting and recordkeeping
requirements, Walnuts.
0
For the reasons set forth in the preamble, 7 CFR part 984 is to be
amended as follows:
PART 984--WALNUTS GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 984 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 984.347 is revised to read as follows:
Sec. 984.347 Assessment rate.
On and after August 1, 2005, an assessment rate of $0.0096 per
kernelweight pound is established for California merchantable walnuts.
Dated: December 5, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-23818 Filed 12-5-05; 4:29 pm]
BILLING CODE 3410-02-P
