Hazelnuts Grown in Oregon and Washington; Establishment of Final Free and Restricted Percentages for the 2005-2006 Marketing Year, 18164-18168 [06-3417]
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paragraph (b)(11)(ii) of this section may
be credited toward the 640-hour
minimum for students pursuing degrees
under paragraphs (b)(1)(i)(D) through (F)
of this section;
(B) Completed a course of academic
study from an accredited school
conferring a diploma, certificate, or
degree, within the 120-day period
preceding the appointment;
(C) Received a favorable
recommendation regarding such an
appointment by an official of the agency
or agencies in which the job-related
work experience was acquired; and
(D) Met the qualification standards for
the position to which the student will
be appointed.
(ii) To be creditable under paragraph
(b)(11)(i)(A) of this section, work
experience must be in a field or
functional area that is related to the
student’s target position/career field and
must be acquired either under a Student
Educational Employment Program
appointment, any previous Federal
appointment (e.g. fellowships and
similar programs in accordance with 5
CFR 213.3102(r)), or while the student:
(A) Worked in, but not for, a Federal
agency, pursuant to a formal work-study
agreement comparable to the SCEP
agreements under 213.3202(b)(12)
between the agency and an accredited
academic institution; to include those
student volunteers as defined by 5 CFR
part 308;
(B) Worked in, but not for, a Federal
agency, pursuant to a written contract
comparable to the SCEP agreements
under 213.3202(b)(12) between the
agency and an organization officially
established to provide internship
experiences to students; or
(C) Served as an active duty member
of the armed forces of the United States
(including the National Guard and
Reserves), as defined in 5 U.S.C. 2101,
and has been discharged or released
from active duty in the armed forces
under honorable conditions.
(iii) Agencies may waive up to onehalf (i.e., 320 hours) of the 640-hour
minimum service requirement in
paragraph (b)(11)(i)(A) of this section if
a student enrolled in an accredited
college or university completes 320
hours of career-related work experience
under a Student Educational
Employment Program appointment and
has demonstrated high potential, as
evidenced by outstanding academic
achievement and exceptional job
performance.
(A) Outstanding academic
achievement must be demonstrated by
an overall grade point average of 3.5 or
better, on a 4.0 scale; standing in the top
10 percent of the student’s graduating
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class; and/or induction into a
nationally-recognized scholastic honor
society. Notwithstanding these
differences, agencies may still refer to
‘‘superior academic achievement’’ in
OPM’s Qualifications Standards for
General Schedule Positions available on
the OPM Web site at https://
www.opm.gov to obtain specific
guidance on GPA, class standing, and
nationally recognized honor societies.
(B) Exceptional job performance must
be demonstrated by a formal evaluation
conducted by the student’s work-study
supervisor(s), in a manner consistent
with the applicable performance
appraisal program established under an
approved performance appraisal system.
(iv) Service credited under paragraphs
(b)(ii)(A) and (B) of this section is not
creditable for any other purpose of this
chapter. Student volunteer service
under part 308 of this chapter and
fellows appointed under 5 CFR
213.3102(r) may be evaluated,
considered, and credited under this
section when that experience is
determined to be comparable in scope to
experience gained in the Student Career
Experience Program.
(v) Noncompetitive conversion may
be to a position within the same agency
or any other agency within the Federal
Government but must be to an
occupation related to the student’s
academic training and work-study
experience.
(vi) Agencies that noncompetitively
convert a Student Career Experience
Program graduate to a term appointment
may also noncompetitively convert that
individual to a career or careerconditional appointment before the term
appointment expires.
*
*
*
*
*
[FR Doc. 06–3391 Filed 4–10–06; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 982
[Docket No. FV06–982–1 FIR]
Hazelnuts Grown in Oregon and
Washington; Establishment of Final
Free and Restricted Percentages for
the 2005–2006 Marketing Year
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: The Department of
Agriculture (USDA) is adopting, as a
final rule, without change, an interim
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final rule establishing final free and
restricted percentages for domestic
inshell hazelnuts for the 2005–2006
marketing year under the Federal
marketing order for hazelnuts grown in
Oregon and Washington. This rule
continues in effect the final free and
restricted percentages of 11.4388 and
88.5612 percent, respectively. The
percentages allocate the quantity of
domestically produced hazelnuts which
may be marketed in the domestic inshell
market (free) and the quantity of
domestically produced hazelnuts that
must be disposed of in other approved
outlets (restricted). Volume regulation is
intended to stabilize the supply of
domestic inshell hazelnuts to meet the
limited domestic demand for such
hazelnuts with the goal of providing
producers with reasonable returns. This
rule was recommended unanimously by
the Hazelnut Marketing Board (Board),
which is the agency responsible for
local administration of the marketing
order.
DATES: Effective Date: May 11, 2006.
This rule applies to all 2005–2006
marketing year restricted hazelnuts until
they are properly disposed of in
accordance with applicable marketing
order requirements.
FOR FURTHER INFORMATION CONTACT:
Barry Broadbent, Northwest Marketing
Field Office, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220
SW., Third Avenue, Suite 385, Portland,
OR 97204; Telephone: (503) 326–2724,
Fax: (503) 326–7440; or George J.
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
No. 115 and Marketing Order No. 982,
both as amended (7 CFR part 982),
regulating the handling of hazelnuts
grown in Oregon and Washington,
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.’’
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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
Reform. It is intended that this action
apply to all merchantable hazelnuts
handled during the 2005–2006
marketing year (July 1, 2005, through
June 30, 2006). 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. 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 rule continues in effect free and
restricted percentages which allocate
the quantity of domestically produced
hazelnuts which may be marketed in
domestic inshell markets (free) and
hazelnuts which must be exported,
shelled, or otherwise disposed of by
handlers (restricted). The Board met
and, after determining that volume
regulation would tend to effectuate the
declared policy of the Act, developed a
marketing policy to be employed for the
duration of the 2005–2006 marketing
year. Using statistical compilations and
a well defined procedure, the Board
estimated inshell trade demand and
total available supply for the coming
marketing year and subsequently used
those estimates as the basis for
computing and announcing the free and
restricted marketing percentages for the
year.
The Board determined that, for the
2005–2006 marketing year, projected
inshell trade demand is 3,095 tons and
projected total available new supply is
27,057 tons. Using those estimates, the
Board voted unanimously at their
November 15, 2005, meeting to
recommend to USDA that the final free
and restricted percentages for the 2005–
2006 marketing year be established at
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11.4388 and 88.5612 percent,
respectively.
The Board’s authority to recommend
volume regulation and use
computations to determine the
allocation of hazelnuts to individual
markets is specified in § 982.40 of the
order. Under the order’s provisions, free
and restricted market allocations of
hazelnuts are expressed as percentages
of the total supply subject to regulation
and are derived by dividing the
computed inshell trade demand by the
Board’s estimate of the total
domestically produced supply of
hazelnuts that will be available over the
course of the marketing year.
Inshell trade demand, the key
component of the marketing policy, is
the quantity of inshell hazelnuts
necessary to adequately supply the
needs of the domestic market for the
duration of the marketing year. The
Board determines the inshell trade
demand for each year and uses that
estimate as the basis for setting the
percentage of the available hazelnuts
that handlers may ship to the domestic
inshell market throughout the marketing
season. The order specifies that the
inshell trade demand be computed by
averaging the preceding three years’
trade acquisitions of inshell hazelnuts,
allowing adjustments for abnormal crop
or marketing conditions. The Board may
increase the computed inshell trade
demand by up to 25 percent, if market
conditions warrant an increase.
Prior to September 20 of each
marketing year, the Board follows a
procedure, specified by the order, to
compute and announce preliminary free
and restricted percentages. The
preliminary free percentage releases 80
percent of the adjusted inshell trade
demand to the domestic market. The
purpose of releasing only 80 percent of
the inshell trade demand under the
preliminary percentage is to guard
against any potential underestimate of
crop size. The preliminary free
percentage is expressed as a percentage
of the total supply subject to regulation
where total supply is the sum of the
estimated crop production less the
three-year average disappearance plus
the undeclared carry-in from the
previous marketing year.
On or before November 15 of each
marketing year, the Board must meet
again to recommend interim final and
final free and restricted percentages and
to authorize permitted outlets for
restricted percentages. Interim final
percentages release 100 percent of the
inshell trade demand (effectively
releasing the 20 percent held back
during the preliminary stage). Final
percentages may release an additional
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15 percent for desirable carryout and are
effective 30 days prior to the end of the
marketing year, or earlier as
recommended by the Board.
On August 23, 2005, the National
Agricultural Statistics Service (NASS)
released an estimate of 2005 hazelnut
production for the Oregon and
Washington area at 28,000 dry orchardrun tons. NASS uses an objective yield
survey method to estimate hazelnut
production which has historically been
very accurate.
On August 25, 2005, the Board met
and estimated total available supply for
the 2005 crop year at 27,057 tons. The
Board arrived at this estimate by using
the crop estimate compiled by NASS
(28,000 tons) and then adjusting that
estimate to account for disappearance
and carry-in. The order requires the
Board to reduce the estimate by the
average disappearance over the
preceding three years (1,075 tons) and to
increase it by the amount of undeclared
carry-in from previous years’ production
(132 tons).
Disappearance is the difference
between the estimated orchard-run
production and the actual supply of
merchantable product available for sale
by handlers. Disappearance can consist
of (1) unharvested hazelnuts; (2) culled
product (nuts that are delivered to
handlers but later discarded); (3)
product used on the farm, sold locally,
or otherwise disposed of by producers;
and (4) statistical error in the orchardrun production estimate.
Undeclared carry-in consists of
hazelnuts that were produced in a
previous marketing year but were not
subject to regulation because they were
not shipped during that marketing year.
Undeclared carry-in is subject to
regulation during the current marketing
year and is accounted for as such by the
Board.
As provided by the order, the Board
computed inshell trade demand to be
3,095 tons by taking the average of the
past three years’ sales (2,775 tons),
increasing the three year average by 15
percent to encourage increased sales
(416 tons), and then reducing that
quantity by the declared carry-in from
last year’s crop (96 tons). Declared
carry-in is product regulated under the
order during a preceding marketing year
but not shipped during that year. This
inventory must be accounted for when
estimating the quantity of product to
make available to adequately supply the
market.
The Board computed and announced
preliminary free and restricted
percentages of 9.1511 percent and
90.8489 percent, respectively, at its
August 25, 2005, meeting. The Board
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computed the preliminary free
percentage by multiplying the adjusted
trade demand by 80 percent and
dividing the result by the total available
supply subject to regulation (3,095 tons
× 80 percent/27,057 tons = 9.1511
percent). The preliminary free
percentage initially released 2,476 tons
of hazelnuts from the 2005–2006 supply
for domestic inshell use, and the
preliminary restricted percentage
withheld 24,581 tons for the export and
kernel markets.
Under the order, the Board must meet
again on or before November 15 to
recommend interim final and final
percentages. The Board uses current
crop estimates to calculate interim final
and final percentages. The interim final
percentages are calculated in the same
way as the preliminary percentages and
release the remaining 20 percent (to
qtotal 100 percent of the inshell trade
demand) previously computed by the
Board. Final free and restricted
percentages may release up to an
additional 15 percent of the average of
the preceding three years’ trade
acquisitions to provide an adequate
carryover into the following season (i.e.,
desirable carryout). The order requires
that the final free and restricted
percentages shall be effective 30 days
prior to the end of the marketing year,
or earlier, if recommended by the Board
and approved by USDA. Revisions in
the marketing policy can be made until
February 15 of each marketing year, but
the inshell trade demand can only be
revised upward, consistent with
§ 982.40(e).
The Board met on November 15, 2005,
and reviewed and approved an
amended marketing policy and
recommended the establishment of final
free and restricted percentages. The
Board decided that market conditions
were such that it would not be
necessary to release additional domestic
inshell hazelnuts to ensure adequate
carryout. Accordingly, no interim final
free and restricted percentages were
recommended. The Board
recommended final free and restricted
percentages of 11.4388 and 88.5612
percent, respectively, and that those
percentages be effective immediately.
The final free percentage releases
approximately 3,095 tons of inshell
hazelnuts from the 2005–2006 supply
for domestic use.
The final marketing percentages are
based on the Board’s final production
estimate and the following supply and
demand information for the 2005–2006
marketing year:
Tons
Total Available Supply:
(1) Production forecast (crop estimate) ........................................................................................................................................
(2) Less disappearance (three year average; 3.84 percent of Item 1) ........................................................................................
(3) Merchantable production (Item 1 minus Item 2) ....................................................................................................................
(4) Plus undeclared carry-in as of July 1, 2005 (subject to regulation) .......................................................................................
(5) Available supply subject to regulation (Item 3 plus Item 4) ...................................................................................................
Inshell Trade Demand:
(6) Average trade acquisitions of inshell hazelnuts (three prior years domestic sales) ..............................................................
(7) Add: Increase to encourage increased sales (15% of average trade acquisitions) ..............................................................
(8) Less: Declared carry-in as of July 1, 2005 (not subject to 2005–2006 regulation) ...............................................................
(9) Adjusted inshell trade demand (Item 6 plus Item 7 minus Item 8) ........................................................................................
28,000
1,075
26,925
132
27,057
2,775
416
96
3,095
Free
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Percentages:
(10) Final percentages (Item 9 divided by Item 5) × 100 ................................................................................
(11) Final free tonnage (Item 9) .......................................................................................................................
(12) Final restricted tonnage (Item 5 minus Item 11) ......................................................................................
In addition to complying with the
provisions of the order, the Board also
considered USDA’s 1982 ‘‘Guidelines
for Fruit, Vegetable, and Specialty Crop
Marketing Orders’’ (Guidelines) when
making its computations in the
marketing policy. This volume control
regulation provides a method to
collectively limit the supply of inshell
hazelnuts available for sale in domestic
markets. The Guidelines provide that
the domestic inshell market has
available a quantity equal to 110 percent
of prior years’ shipments before
allocating supplies for the export
inshell, export kernel, and domestic
kernel markets. This provides for
plentiful supplies for consumers and for
market expansion, while retaining the
mechanism for dealing with oversupply
situations. The established final
percentages make available
approximately 416 additional tons to
encourage increased sales. The total free
supply for the 2005–2006 marketing
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year is estimated to be 3,095 tons of
hazelnuts. That amount is 112 percent
of prior years’ sales and exceeds the goal
of the Guidelines.
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 action on small entities.
Accordingly, AMS has prepared this
final regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
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Restricted
11.4388
3,095
........................
88.5612
........................
23,962
Small agricultural producers are
defined by the Small Business
Administration (13 CFR 121.201) as
those having annual receipts of less than
$750,000, and small agricultural service
firms are defined as those having annual
receipts of less than $6,500,000. There
are approximately 700 producers of
hazelnuts in the production area and
approximately 18 handlers subject to
regulation under the order. Average
annual hazelnut revenue per producer is
approximately $64,000. This is
computed by dividing NASS figures for
the average value of production for 2003
and 2004 ($44,863,000) by the number
of producers. The level of sales of other
crops by hazelnut producers is not
known. In addition, based on Board
records, about 83 percent of the
handlers ship under $6,500,000 worth
of hazelnuts on an annual basis. In view
of the foregoing, it can be concluded
that the majority of hazelnut producers
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and handlers may be classified as small
entities.
Board meetings are widely publicized
in advance of the meetings and are held
in a location central to the production
area. The meetings are open to all
industry members and other interested
persons who are encouraged to
participate in the deliberations and
voice their opinions on topics under
discussion. Thus, Board
recommendations can be considered to
represent the interests of small business
entities in the industry.
Currently, U.S. hazelnut production is
allocated among three main market
outlets: Domestic inshell, export inshell,
and kernel markets. Handlers and
producers receive the highest return for
sales in the domestic inshell market.
They receive less for product going to
export inshell, and the least for kernels.
Based on Board records of average
shipments for 1995–2004, the
percentage going to each of these
markets was 11 percent (domestic
inshell), 49 percent (export inshell), and
38 percent (kernels). Other minor
market outlets make up the remaining 2
percent.
The inshell hazelnut market can be
characterized as having limited and
inelastic demand with a very short
primary marketing period. On average,
76 percent of domestic inshell hazelnut
shipments occur between October 1 and
November 30, primarily to supply
holiday nut demand. The inshell market
is, therefore, prone to oversupply and
correspondingly low producer prices in
the absence of supply restrictions. This
volume control regulation provides a
method for the U.S. hazelnut industry to
limit the supply of domestic inshell
hazelnuts available for sale in the
continental U.S. and thereby mitigate
market oversupply conditions.
Many years of marketing experience
led to the development of the current
volume control procedures. These
procedures have helped the industry
solve its marketing problems by keeping
inshell supplies in balance with
domestic needs. Volume controls ensure
that the domestic inshell market is fully
supplied while protecting the market
from the negative effects of oversupply.
Although the domestic inshell market
is a relatively small portion of total
hazelnut sales (11 percent of total
shipments), it remains a profitable
market segment. The volume control
provisions of the marketing order are
designed to avoid oversupplying this
particular market segment, because that
would likely lead to substantially lower
producer prices. The other market
segments, export inshell and kernels,
are expected to continue to provide
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good outlets for U.S. hazelnut
production. Adverse weather conditions
have negatively impacted production in
the other hazelnut producing regions of
the world, creating lower than normal
world supplies. As a result, it is
expected that the demand and producer
price for U.S. hazelnuts will remain
above average for some time.
In Oregon and Washington, low
hazelnut production years typically
follow high production years (a
historically consistent pattern), and
such was the case in 2005. The 2004
crop of 37,500 tons was 15 percent
above the 10-year average (1995–2004)
for hazelnut production. The 2005 crop
is estimated to be 14 percent below the
average. It is predicted that the 2006
crop will follow this pattern and will be
larger than the current crop year. This
cyclical trait also leads to inversely
corresponding cyclical price patterns for
hazelnuts. The intrinsic cyclical nature
of the hazelnut industry lends
credibility to the volume control
measures enacted by the Board under
the order.
Recent production and price data
reflect the stabilizing effect of volume
control regulations. Industry statistics
show that total hazelnut production has
varied widely over the 10-year period
between 1995 and 2004, from a low of
16,500 tons in 1998 to a high of 49,500
tons in 2001. Production in the smallest
crop year and the largest crop year were
47 percent and 151 percent,
respectively, of the 10-year average of
32,685 tons. Producer price, however,
has not fluctuated to the extent of
production. Prices in the lowest price
year and the highest price year were 90
percent and 150 percent, respectively, of
the 10-year average price of $959 per
ton. The coefficient of variation (a
standard statistical measure of
variability; ‘‘CV’’) for hazelnut
production over the 10-year period is
0.36. In contrast, the coefficient of
variation for hazelnut producer prices is
0.19, about half of the CV for
production. The lower level of
variability of price versus the variability
of production provides an illustration of
the order’s price-stabilizing impact.
Comparing revenue to cost at the
producer level is useful in highlighting
the impact on producers of recent
product and price levels. A recent
hazelnut production cost study from
Oregon State University estimated costof-production per acre to be
approximately $1,340 for a typical 100acre hazelnut enterprise. Average
producer revenue per bearing acre
(based on NASS acreage and value of
production data) equaled or exceeded
that typical cost level only three times
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from 1995 to 2004. Average producer
revenue was below typical costs in the
other years. Without the stabilizing
influence of the order, producers may
have lost more money. While crop size
has fluctuated, volume regulations
contribute to orderly marketing and
market stability by moderating the
variation in returns for all producers
and handlers, both large and small.
While the level of benefits of this
rulemaking is difficult to quantify, the
stabilizing effects of the volume
regulations impact both small and large
handlers positively by helping them
maintain and expand markets even
though hazelnut supplies fluctuate
widely from season to season. This
regulation provides equitable allotment
of the most profitable market, the
domestic inshell market. That market is
available to all handlers, regardless of
size.
As an alternative to this regulation,
the Board discussed not regulating the
2005–2006 hazelnut crop. However,
without any regulations in effect, the
Board believes that the industry would
tend to oversupply the inshell domestic
market. Even though the 2005–2006
hazelnut crop is much smaller than last
year’s crop and 16 percent below the
ten-year average, the unregulated release
of 27,057 tons on the domestic inshell
market would oversupply that small,
but lucrative market. The Board believes
that any oversupply would completely
disrupt the market, causing producer
returns to decrease dramatically.
Section 982.40 of the order establishes
a procedure and computations for the
Board to follow in recommending to
USDA establishment of preliminary,
interim final, and final percentages of
hazelnuts to be released to the free and
restricted markets each marketing year.
The program results in plentiful
supplies for consumers and for market
expansion while retaining the
mechanism for dealing with oversupply
situations.
Hazelnuts produced under the order
comprise virtually all of the hazelnuts
produced in the U.S. This production
represents, on average, less than 3
percent of total U.S. production of all
tree nuts, and less than 6 percent of the
world’s hazelnut production.
Last season, 68 percent of the
domestically produced hazelnut kernels
were marketed in the domestic market
and 32 percent were exported.
Domestically produced kernels
generally command a higher price in the
domestic market than imported kernels.
The industry is continuing its efforts to
develop and expand other markets with
emphasis on the domestic kernel
market. Small business entities, both
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producers and handlers, benefit from
the expansion efforts resulting from this
program.
Inshell hazelnuts produced under the
order compete well in export markets
because of quality. Based on Board
statistics, Europe has historically been
the primary export market for U.S.
produced inshell hazelnuts. Recent
years, though, have seen a significant
shift in export destinations. Last season,
inshell shipments to Europe totaled
4,304 tons, representing just 22 percent
of exports, with the largest share going
to Germany. Inshell shipments to
Southwest Pacific countries, and Hong
Kong in particular, have increased
dramatically in the past few years, rising
to 68 percent of total exports of 19,881
tons in 2004. The industry continues to
pursue export opportunities.
There are some reporting,
recordkeeping, and other compliance
requirements under the order. The
reporting and recordkeeping burdens
are necessary for compliance purposes
and for developing statistical data for
maintenance of the program. The
information collection requirements
have been previously approved by the
Office of Management and Budget under
OMB No. 0581–0178. The forms require
information which is readily available
from handler records and which can be
provided without data processing
equipment or trained statistical staff. 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. This rule does not
change those requirements. In addition,
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
AMS is committed to compliance
with the Government Paperwork
Elimination Act (GPEA), which requires
Government agencies in general to
provide the public the option of
submitting information or transacting
business electronically to the maximum
extent possible.
Further, the Board’s meetings were
widely publicized throughout the
hazelnut industry and all interested
persons were invited to attend the
meetings and participate in Board
deliberations. Like all Board meetings,
those held on August 25, and November
15, 2005, were public meetings and all
entities, both large and small, were able
to express their views on this issue.
An interim final rule concerning this
action was published in the Federal
Register on January 12, 2006. Copies of
this rule were mailed by the Board’s
staff to all Board members. In addition,
VerDate Aug<31>2005
16:30 Apr 10, 2006
Jkt 208001
the rule was made available through the
Internet by the Office of the Federal
Register. A 60-day comment period
ending March 13, 2006, was provided to
allow interested parties to respond to
the rule. 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 finalizing the interim final rule,
without change, as published in the
Federal Register (71 FR 1921, January
12, 2006) will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 982
Filberts, Hazelnuts, Marketing
agreements, Nuts, Reporting and
recordkeeping requirements.
PART 982—HAZELNUTS GROWN IN
OREGON AND WASHINGTON
Accordingly, the interim final rule
amending 7 CFR part 982 which was
published at 71 FR 1921 on January 12,
2006, is adopted as a final rule without
change.
I
Dated: April 5, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–3417 Filed 4–10–06; 8:45 am]
BILLING CODE 3410–02–P
FARM CREDIT ADMINISTRATION
12 CFR Parts 611, 612, 614, 615, 618,
619, 620, and 630
RIN 3052–AC19
Organization; Standards of Conduct
and Referral of Known or Suspected
Criminal Violations; Loan Policies and
Operations; Funding and Fiscal
Affairs, Loan Policies and Operations,
and Funding Operations; General
Provisions; Definitions; Disclosure to
Shareholders; Disclosure to Investors
in System-Wide and Consolidated
Bank Debt Obligations of the Farm
Credit System; Effective Date
Farm Credit Administration.
Final rule; Announcement of
effective date.
AGENCY:
ACTION:
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
SUMMARY: The Farm Credit
Administration (FCA) published a final
rule under parts 611, 612, 614, 615, 618,
619, 620, and 630 on February 2, 2006
(71 FR 5740). This final rule amends our
regulations affecting the governance of
the Farm Credit System (System). The
final rule enhances impartiality and
disclosure in the election of directors;
requires that Farm Credit banks and
associations establish policies
identifying desirable director
qualifications; requires boards to have a
director or an advisor who is a financial
expert; requires System institutions to
establish director training procedures;
and ensures that boards conduct annual
self-evaluations. The final rule
addresses the term of service and
removal of outside directors, while
requiring all Farm Credit banks and
associations with assets over $500
million to have at least two outside
directors. The rule also provides
associations with small boards an
exemption from having at least two
outside directors. The rule further
requires that Farm Credit banks and
associations have nominating
committees and that all System
institutions have audit and
compensation committees. The final
rule clarifies the current rule on
disclosure of conflicts of interest and
compensation. The final rule does not
apply to the Federal Agricultural
Mortgage Corporation (FAMC). In
accordance with 12 U.S.C. 2252, the
effective date of the final rule is 30 days
from the date of publication in the
Federal Register during which either or
both Houses of Congress are in session.
Based on the records of the sessions of
Congress, the effective date of the
regulation is April 5, 2006.
DATES: Effective Date: The regulation
amending 12 CFR parts 611, 612, 614,
615, 618, 619, 620, and 630 published
on February 2, 2006 (71 FR 5740) is
effective April 5, 2006, except for the
amendments to §§ 611.210(a)(2),
611.220(a)(2)(i) and (ii), 611.325, and
620.21(d)(2) which will be effective
April 5, 2007. A reminder of the
effective date for these sections will be
published at a later date.
Compliance Date: Compliance with
board composition requirements
(§§ 611.210(a)(2) and 611.220(a)(2)(i)
and (ii)) and establishment of bank
nominating committees (§§ 611.325 and
620.21(d)(2)) must be achieved 1 year
from the effective date of this rule. All
other provisions require compliance on
the effective date of this rule.
FOR FURTHER INFORMATION CONTACT: Gary
Van Meter, Deputy Director, Office of
Regulatory Policy, Farm Credit
E:\FR\FM\11APR1.SGM
11APR1
]]>Agencies
[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Rules and Regulations]
[Pages 18164-18168]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3417]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 982
[Docket No. FV06-982-1 FIR]
Hazelnuts Grown in Oregon and Washington; Establishment of Final
Free and Restricted Percentages for the 2005-2006 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule establishing final free and
restricted percentages for domestic inshell hazelnuts for the 2005-2006
marketing year under the Federal marketing order for hazelnuts grown in
Oregon and Washington. This rule continues in effect the final free and
restricted percentages of 11.4388 and 88.5612 percent, respectively.
The percentages allocate the quantity of domestically produced
hazelnuts which may be marketed in the domestic inshell market (free)
and the quantity of domestically produced hazelnuts that must be
disposed of in other approved outlets (restricted). Volume regulation
is intended to stabilize the supply of domestic inshell hazelnuts to
meet the limited domestic demand for such hazelnuts with the goal of
providing producers with reasonable returns. This rule was recommended
unanimously by the Hazelnut Marketing Board (Board), which is the
agency responsible for local administration of the marketing order.
DATES: Effective Date: May 11, 2006. This rule applies to all 2005-2006
marketing year restricted hazelnuts until they are properly disposed of
in accordance with applicable marketing order requirements.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW., Third Avenue, Suite 385,
Portland, OR 97204; Telephone: (503) 326-2724, Fax: (503) 326-7440; or
George J. 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 No. 115 and Marketing Order No. 982, both as amended (7 CFR
part 982), regulating the handling of hazelnuts grown in Oregon and
Washington, 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.''
[[Page 18165]]
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 Reform. It is intended that this action apply to all
merchantable hazelnuts handled during the 2005-2006 marketing year
(July 1, 2005, through June 30, 2006). 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. 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 rule continues in effect free and restricted percentages which
allocate the quantity of domestically produced hazelnuts which may be
marketed in domestic inshell markets (free) and hazelnuts which must be
exported, shelled, or otherwise disposed of by handlers (restricted).
The Board met and, after determining that volume regulation would tend
to effectuate the declared policy of the Act, developed a marketing
policy to be employed for the duration of the 2005-2006 marketing year.
Using statistical compilations and a well defined procedure, the Board
estimated inshell trade demand and total available supply for the
coming marketing year and subsequently used those estimates as the
basis for computing and announcing the free and restricted marketing
percentages for the year.
The Board determined that, for the 2005-2006 marketing year,
projected inshell trade demand is 3,095 tons and projected total
available new supply is 27,057 tons. Using those estimates, the Board
voted unanimously at their November 15, 2005, meeting to recommend to
USDA that the final free and restricted percentages for the 2005-2006
marketing year be established at 11.4388 and 88.5612 percent,
respectively.
The Board's authority to recommend volume regulation and use
computations to determine the allocation of hazelnuts to individual
markets is specified in Sec. 982.40 of the order. Under the order's
provisions, free and restricted market allocations of hazelnuts are
expressed as percentages of the total supply subject to regulation and
are derived by dividing the computed inshell trade demand by the
Board's estimate of the total domestically produced supply of hazelnuts
that will be available over the course of the marketing year.
Inshell trade demand, the key component of the marketing policy, is
the quantity of inshell hazelnuts necessary to adequately supply the
needs of the domestic market for the duration of the marketing year.
The Board determines the inshell trade demand for each year and uses
that estimate as the basis for setting the percentage of the available
hazelnuts that handlers may ship to the domestic inshell market
throughout the marketing season. The order specifies that the inshell
trade demand be computed by averaging the preceding three years' trade
acquisitions of inshell hazelnuts, allowing adjustments for abnormal
crop or marketing conditions. The Board may increase the computed
inshell trade demand by up to 25 percent, if market conditions warrant
an increase.
Prior to September 20 of each marketing year, the Board follows a
procedure, specified by the order, to compute and announce preliminary
free and restricted percentages. The preliminary free percentage
releases 80 percent of the adjusted inshell trade demand to the
domestic market. The purpose of releasing only 80 percent of the
inshell trade demand under the preliminary percentage is to guard
against any potential underestimate of crop size. The preliminary free
percentage is expressed as a percentage of the total supply subject to
regulation where total supply is the sum of the estimated crop
production less the three-year average disappearance plus the
undeclared carry-in from the previous marketing year.
On or before November 15 of each marketing year, the Board must
meet again to recommend interim final and final free and restricted
percentages and to authorize permitted outlets for restricted
percentages. Interim final percentages release 100 percent of the
inshell trade demand (effectively releasing the 20 percent held back
during the preliminary stage). Final percentages may release an
additional 15 percent for desirable carryout and are effective 30 days
prior to the end of the marketing year, or earlier as recommended by
the Board.
On August 23, 2005, the National Agricultural Statistics Service
(NASS) released an estimate of 2005 hazelnut production for the Oregon
and Washington area at 28,000 dry orchard-run tons. NASS uses an
objective yield survey method to estimate hazelnut production which has
historically been very accurate.
On August 25, 2005, the Board met and estimated total available
supply for the 2005 crop year at 27,057 tons. The Board arrived at this
estimate by using the crop estimate compiled by NASS (28,000 tons) and
then adjusting that estimate to account for disappearance and carry-in.
The order requires the Board to reduce the estimate by the average
disappearance over the preceding three years (1,075 tons) and to
increase it by the amount of undeclared carry-in from previous years'
production (132 tons).
Disappearance is the difference between the estimated orchard-run
production and the actual supply of merchantable product available for
sale by handlers. Disappearance can consist of (1) unharvested
hazelnuts; (2) culled product (nuts that are delivered to handlers but
later discarded); (3) product used on the farm, sold locally, or
otherwise disposed of by producers; and (4) statistical error in the
orchard-run production estimate.
Undeclared carry-in consists of hazelnuts that were produced in a
previous marketing year but were not subject to regulation because they
were not shipped during that marketing year. Undeclared carry-in is
subject to regulation during the current marketing year and is
accounted for as such by the Board.
As provided by the order, the Board computed inshell trade demand
to be 3,095 tons by taking the average of the past three years' sales
(2,775 tons), increasing the three year average by 15 percent to
encourage increased sales (416 tons), and then reducing that quantity
by the declared carry-in from last year's crop (96 tons). Declared
carry-in is product regulated under the order during a preceding
marketing year but not shipped during that year. This inventory must be
accounted for when estimating the quantity of product to make available
to adequately supply the market.
The Board computed and announced preliminary free and restricted
percentages of 9.1511 percent and 90.8489 percent, respectively, at its
August 25, 2005, meeting. The Board
[[Page 18166]]
computed the preliminary free percentage by multiplying the adjusted
trade demand by 80 percent and dividing the result by the total
available supply subject to regulation (3,095 tons x 80 percent/27,057
tons = 9.1511 percent). The preliminary free percentage initially
released 2,476 tons of hazelnuts from the 2005-2006 supply for domestic
inshell use, and the preliminary restricted percentage withheld 24,581
tons for the export and kernel markets.
Under the order, the Board must meet again on or before November 15
to recommend interim final and final percentages. The Board uses
current crop estimates to calculate interim final and final
percentages. The interim final percentages are calculated in the same
way as the preliminary percentages and release the remaining 20 percent
(to qtotal 100 percent of the inshell trade demand) previously computed
by the Board. Final free and restricted percentages may release up to
an additional 15 percent of the average of the preceding three years'
trade acquisitions to provide an adequate carryover into the following
season (i.e., desirable carryout). The order requires that the final
free and restricted percentages shall be effective 30 days prior to the
end of the marketing year, or earlier, if recommended by the Board and
approved by USDA. Revisions in the marketing policy can be made until
February 15 of each marketing year, but the inshell trade demand can
only be revised upward, consistent with Sec. 982.40(e).
The Board met on November 15, 2005, and reviewed and approved an
amended marketing policy and recommended the establishment of final
free and restricted percentages. The Board decided that market
conditions were such that it would not be necessary to release
additional domestic inshell hazelnuts to ensure adequate carryout.
Accordingly, no interim final free and restricted percentages were
recommended. The Board recommended final free and restricted
percentages of 11.4388 and 88.5612 percent, respectively, and that
those percentages be effective immediately. The final free percentage
releases approximately 3,095 tons of inshell hazelnuts from the 2005-
2006 supply for domestic use.
The final marketing percentages are based on the Board's final
production estimate and the following supply and demand information for
the 2005-2006 marketing year:
------------------------------------------------------------------------
Tons
------------------------------------------------------------------------
Total Available Supply:
(1) Production forecast (crop estimate)............. 28,000
(2) Less disappearance (three year average; 3.84 1,075
percent of Item 1).................................
(3) Merchantable production (Item 1 minus Item 2)... 26,925
(4) Plus undeclared carry-in as of July 1, 2005 132
(subject to regulation)............................
(5) Available supply subject to regulation (Item 3 27,057
plus Item 4).......................................
Inshell Trade Demand:
(6) Average trade acquisitions of inshell hazelnuts 2,775
(three prior years domestic sales).................
(7) Add: Increase to encourage increased sales (15% 416
of average trade acquisitions).....................
(8) Less: Declared carry-in as of July 1, 2005 (not 96
subject to 2005-2006 regulation)...................
(9) Adjusted inshell trade demand (Item 6 plus Item 3,095
7 minus Item 8)....................................
------------------------------------------------------------------------
Free Restricted
------------------------------------------------------------------------
Percentages:
(10) Final percentages (Item 9 11.4388 88.5612
divided by Item 5) x 100...........
(11) Final free tonnage (Item 9).... 3,095 ..............
(12) Final restricted tonnage (Item .............. 23,962
5 minus Item 11)...................
------------------------------------------------------------------------
In addition to complying with the provisions of the order, the
Board also considered USDA's 1982 ``Guidelines for Fruit, Vegetable,
and Specialty Crop Marketing Orders'' (Guidelines) when making its
computations in the marketing policy. This volume control regulation
provides a method to collectively limit the supply of inshell hazelnuts
available for sale in domestic markets. The Guidelines provide that the
domestic inshell market has available a quantity equal to 110 percent
of prior years' shipments before allocating supplies for the export
inshell, export kernel, and domestic kernel markets. This provides for
plentiful supplies for consumers and for market expansion, while
retaining the mechanism for dealing with oversupply situations. The
established final percentages make available approximately 416
additional tons to encourage increased sales. The total free supply for
the 2005-2006 marketing year is estimated to be 3,095 tons of
hazelnuts. That amount is 112 percent of prior years' sales and exceeds
the goal of the Guidelines.
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 action on small entities. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
Small agricultural producers are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts of less
than $750,000, and small agricultural service firms are defined as
those having annual receipts of less than $6,500,000. There are
approximately 700 producers of hazelnuts in the production area and
approximately 18 handlers subject to regulation under the order.
Average annual hazelnut revenue per producer is approximately $64,000.
This is computed by dividing NASS figures for the average value of
production for 2003 and 2004 ($44,863,000) by the number of producers.
The level of sales of other crops by hazelnut producers is not known.
In addition, based on Board records, about 83 percent of the handlers
ship under $6,500,000 worth of hazelnuts on an annual basis. In view of
the foregoing, it can be concluded that the majority of hazelnut
producers
[[Page 18167]]
and handlers may be classified as small entities.
Board meetings are widely publicized in advance of the meetings and
are held in a location central to the production area. The meetings are
open to all industry members and other interested persons who are
encouraged to participate in the deliberations and voice their opinions
on topics under discussion. Thus, Board recommendations can be
considered to represent the interests of small business entities in the
industry.
Currently, U.S. hazelnut production is allocated among three main
market outlets: Domestic inshell, export inshell, and kernel markets.
Handlers and producers receive the highest return for sales in the
domestic inshell market. They receive less for product going to export
inshell, and the least for kernels. Based on Board records of average
shipments for 1995-2004, the percentage going to each of these markets
was 11 percent (domestic inshell), 49 percent (export inshell), and 38
percent (kernels). Other minor market outlets make up the remaining 2
percent.
The inshell hazelnut market can be characterized as having limited
and inelastic demand with a very short primary marketing period. On
average, 76 percent of domestic inshell hazelnut shipments occur
between October 1 and November 30, primarily to supply holiday nut
demand. The inshell market is, therefore, prone to oversupply and
correspondingly low producer prices in the absence of supply
restrictions. This volume control regulation provides a method for the
U.S. hazelnut industry to limit the supply of domestic inshell
hazelnuts available for sale in the continental U.S. and thereby
mitigate market oversupply conditions.
Many years of marketing experience led to the development of the
current volume control procedures. These procedures have helped the
industry solve its marketing problems by keeping inshell supplies in
balance with domestic needs. Volume controls ensure that the domestic
inshell market is fully supplied while protecting the market from the
negative effects of oversupply.
Although the domestic inshell market is a relatively small portion
of total hazelnut sales (11 percent of total shipments), it remains a
profitable market segment. The volume control provisions of the
marketing order are designed to avoid oversupplying this particular
market segment, because that would likely lead to substantially lower
producer prices. The other market segments, export inshell and kernels,
are expected to continue to provide good outlets for U.S. hazelnut
production. Adverse weather conditions have negatively impacted
production in the other hazelnut producing regions of the world,
creating lower than normal world supplies. As a result, it is expected
that the demand and producer price for U.S. hazelnuts will remain above
average for some time.
In Oregon and Washington, low hazelnut production years typically
follow high production years (a historically consistent pattern), and
such was the case in 2005. The 2004 crop of 37,500 tons was 15 percent
above the 10-year average (1995-2004) for hazelnut production. The 2005
crop is estimated to be 14 percent below the average. It is predicted
that the 2006 crop will follow this pattern and will be larger than the
current crop year. This cyclical trait also leads to inversely
corresponding cyclical price patterns for hazelnuts. The intrinsic
cyclical nature of the hazelnut industry lends credibility to the
volume control measures enacted by the Board under the order.
Recent production and price data reflect the stabilizing effect of
volume control regulations. Industry statistics show that total
hazelnut production has varied widely over the 10-year period between
1995 and 2004, from a low of 16,500 tons in 1998 to a high of 49,500
tons in 2001. Production in the smallest crop year and the largest crop
year were 47 percent and 151 percent, respectively, of the 10-year
average of 32,685 tons. Producer price, however, has not fluctuated to
the extent of production. Prices in the lowest price year and the
highest price year were 90 percent and 150 percent, respectively, of
the 10-year average price of $959 per ton. The coefficient of variation
(a standard statistical measure of variability; ``CV'') for hazelnut
production over the 10-year period is 0.36. In contrast, the
coefficient of variation for hazelnut producer prices is 0.19, about
half of the CV for production. The lower level of variability of price
versus the variability of production provides an illustration of the
order's price-stabilizing impact.
Comparing revenue to cost at the producer level is useful in
highlighting the impact on producers of recent product and price
levels. A recent hazelnut production cost study from Oregon State
University estimated cost-of-production per acre to be approximately
$1,340 for a typical 100-acre hazelnut enterprise. Average producer
revenue per bearing acre (based on NASS acreage and value of production
data) equaled or exceeded that typical cost level only three times from
1995 to 2004. Average producer revenue was below typical costs in the
other years. Without the stabilizing influence of the order, producers
may have lost more money. While crop size has fluctuated, volume
regulations contribute to orderly marketing and market stability by
moderating the variation in returns for all producers and handlers,
both large and small.
While the level of benefits of this rulemaking is difficult to
quantify, the stabilizing effects of the volume regulations impact both
small and large handlers positively by helping them maintain and expand
markets even though hazelnut supplies fluctuate widely from season to
season. This regulation provides equitable allotment of the most
profitable market, the domestic inshell market. That market is
available to all handlers, regardless of size.
As an alternative to this regulation, the Board discussed not
regulating the 2005-2006 hazelnut crop. However, without any
regulations in effect, the Board believes that the industry would tend
to oversupply the inshell domestic market. Even though the 2005-2006
hazelnut crop is much smaller than last year's crop and 16 percent
below the ten-year average, the unregulated release of 27,057 tons on
the domestic inshell market would oversupply that small, but lucrative
market. The Board believes that any oversupply would completely disrupt
the market, causing producer returns to decrease dramatically.
Section 982.40 of the order establishes a procedure and
computations for the Board to follow in recommending to USDA
establishment of preliminary, interim final, and final percentages of
hazelnuts to be released to the free and restricted markets each
marketing year. The program results in plentiful supplies for consumers
and for market expansion while retaining the mechanism for dealing with
oversupply situations.
Hazelnuts produced under the order comprise virtually all of the
hazelnuts produced in the U.S. This production represents, on average,
less than 3 percent of total U.S. production of all tree nuts, and less
than 6 percent of the world's hazelnut production.
Last season, 68 percent of the domestically produced hazelnut
kernels were marketed in the domestic market and 32 percent were
exported. Domestically produced kernels generally command a higher
price in the domestic market than imported kernels. The industry is
continuing its efforts to develop and expand other markets with
emphasis on the domestic kernel market. Small business entities, both
[[Page 18168]]
producers and handlers, benefit from the expansion efforts resulting
from this program.
Inshell hazelnuts produced under the order compete well in export
markets because of quality. Based on Board statistics, Europe has
historically been the primary export market for U.S. produced inshell
hazelnuts. Recent years, though, have seen a significant shift in
export destinations. Last season, inshell shipments to Europe totaled
4,304 tons, representing just 22 percent of exports, with the largest
share going to Germany. Inshell shipments to Southwest Pacific
countries, and Hong Kong in particular, have increased dramatically in
the past few years, rising to 68 percent of total exports of 19,881
tons in 2004. The industry continues to pursue export opportunities.
There are some reporting, recordkeeping, and other compliance
requirements under the order. The reporting and recordkeeping burdens
are necessary for compliance purposes and for developing statistical
data for maintenance of the program. The information collection
requirements have been previously approved by the Office of Management
and Budget under OMB No. 0581-0178. The forms require information which
is readily available from handler records and which can be provided
without data processing equipment or trained statistical staff. 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. This rule does not
change those requirements. In addition, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
rule.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
Further, the Board's meetings were widely publicized throughout the
hazelnut industry and all interested persons were invited to attend the
meetings and participate in Board deliberations. Like all Board
meetings, those held on August 25, and November 15, 2005, were public
meetings and all entities, both large and small, were able to express
their views on this issue.
An interim final rule concerning this action was published in the
Federal Register on January 12, 2006. Copies of this rule were mailed
by the Board's staff to all Board members. In addition, the rule was
made available through the Internet by the Office of the Federal
Register. A 60-day comment period ending March 13, 2006, was provided
to allow interested parties to respond to the rule. 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 finalizing the interim
final rule, without change, as published in the Federal Register (71 FR
1921, January 12, 2006) will tend to effectuate the declared policy of
the Act.
List of Subjects in 7 CFR Part 982
Filberts, Hazelnuts, Marketing agreements, Nuts, Reporting and
recordkeeping requirements.
PART 982--HAZELNUTS GROWN IN OREGON AND WASHINGTON
0
Accordingly, the interim final rule amending 7 CFR part 982 which was
published at 71 FR 1921 on January 12, 2006, is adopted as a final rule
without change.
Dated: April 5, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-3417 Filed 4-10-06; 8:45 am]
BILLING CODE 3410-02-P
