Walnuts Grown in California; Increased Assessment Rate, 66645-66648 [06-9251]
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Federal Register / Vol. 71, No. 221 / Thursday, November 16, 2006 / Rules and Regulations
assessment revenue for the 2006–07
production year as a percentage of total
grower revenue could range between
.040 and .042 percent.
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, decreasing the assessment rate
will reduce the burden on handlers, and
may reduce the burden on producers. In
addition, the committee’s meeting was
widely publicized throughout the
California pistachio industry and all
interested persons were invited to
attend the meeting and encouraged to
participate in committee deliberations
on all issues. Like all committee
meetings, the May 23, 2006, 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 and recordkeeping on either
small or large pistachio handlers. As
with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. In addition, USDA has
not identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
A proposed rule concerning this
action was published in the Federal
Register on August 25, 2006 (71 FR
50374). Copies of the proposed rule
were also mailed or sent via facsimile to
all pistachio handlers. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending September 25, 2006, 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 committee and other
available information, it is hereby found
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Jkt 211001
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 is 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 the 2006–07 production year
began on September 1, 2006, and
pistachio handlers are already receiving
2006–07 crop pistachios from growers.
The decreased assessment rate applies
to all pistachios received during the
2006–07 year and subsequent seasons.
Further, handlers are aware of this rule
which was unanimously recommended
at a public meeting. Also, a 30-day
comment period was provided for in the
proposed rule, and no comments were
received.
List of Subjects in 7 CFR Part 983
Marketing agreements, Pistachios,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 983 is amended as
follows:
I
PART 983—PISTACHIOS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 983 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. Section 983.253 is amended by
revising paragraph (a) to read as follows:
I
§ 983.253
Assessment rate.
(a) On and after September 1, 2006, a
continuing assessment rate of $0.0007
per pound of assessed-weight pistachios
is established for California pistachios.
The assessment obligation of each
handler shall be computed by applying
the assessment rate to the assessed
weight computed pursuant to § 983.6.
*
*
*
*
*
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–9252 Filed 11–14–06; 1:09 pm]
BILLING CODE 3410–02–P
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66645
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. FV06–984–2 IFR]
Walnuts Grown in California; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: This rule increases the
assessment rate established for the
Walnut Marketing Board (Board) for the
2006–07 and subsequent marketing
years from $0.0096 to $0.0101 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 begins
August 1 and ends July 31. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: November 17, 2006. Comments
received by January 16, 2007 will be
considered prior to issuance of a final
rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938, E-mail:
moab.docketclerk@usda.gov, or Internet:
https://www.regulations.gov. Comments
should reference the docket number and
the date and page number of this issue
of the Federal Register and will be
made available for public inspection in
the Office of the Docket Clerk during
regular business hours, or can be viewed
at: https://www.ams.usda.gov/fv/
moab.html.
FOR FURTHER INFORMATION CONTACT:
Shereen Marino, Marketing Specialist,
or Kurt Kimmel, Regional Manager,
California Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906, or E-mail:
Shereen.Marino@usda.gov or
Kurt.Kimmel@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
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66646
Federal Register / Vol. 71, No. 221 / Thursday, November 16, 2006 / Rules and Regulations
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
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, 2006, 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
2006–07 and subsequent marketing
years from $0.0096 to $0.0101 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 2005–06 and subsequent
marketing years, the Board
recommended, and USDA approved, an
assessment rate of $0.0096 per
kernelweight of assessable walnuts that
would continue 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 8, 2006,
and unanimously recommended 2006–
07 expenditures of $3,222,860 and an
assessment rate of $0.0101 per
kernelweight pound of assessable
walnuts. In comparison, last year’s
budgeted expenditures were $2,937,600.
The assessment rate of $0.0101 per
kernelweight pound of assessable
walnuts is $0.0005 per pound higher
than the rate currently in effect. The
higher assessment rate is necessary to
cover increased expenses including
increased salaries, operating expenses
and research for the 2006–07 marketing
year.
The following table compares major
budget expenditures recommended by
the Board for the 2005–06 and 2006–07
marketing years:
Budget expense categories
2005–06
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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
318,600,000 kernelweight pounds
which should provide $3,217,860 in
assessment income. Assessment income
combined with interest income should
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
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whom collected within 5 months after
the end of the year, according to
§ 984.69.
The estimate for merchantable
shipments is based on the California
Agricultural Statistics Service’s crop
estimate for the crop year of 354,000
tons (inshell). Pursuant to § 981.51(b) of
the order, this figure was converted to
a merchantable kernelweight basis using
a factor of .45 (354,000 tons × 2,000
pounds/ton × .45).
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
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2006–07
$360,000
80,000
132,500
$415,000
75,000
142,500
5,000
85,000
95,000
75,000
500,000
1,550,000
55,100
5,000
........................
100,000
75,000
650,000
1,750,000
10,360
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
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Federal Register / Vol. 71, No. 221 / Thursday, November 16, 2006 / Rules and Regulations
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 2006–07 budget
and those for subsequent marketing
years will be reviewed and, as
appropriate, approved by USDA.
Initial 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 initial 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.
There are currently 44 handlers of
California walnuts subject to regulation
under the marketing order and
approximately 5,150 growers in the
production area. Small agricultural
service firms are defined by the Small
Business Administration (SBA) (13 CFR
121.201) as those whose annual receipts
are less than $6,500,000, and small
agricultural producers are defined as
those whose annual receipts are less
than $750,000.
Current industry information suggests
that 16 of the 44 handlers (36 percent)
shipped over $6,500,000 of
merchantable walnuts and could be
considered large handlers by the SBA.
Twenty-eight of the 44 walnut handlers
(64 percent) shipped under $6,500,000
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 2003–05 is 1.567 tons.
A grower with 353 acres with average
yields would produce approximately
553 tons. The average of grower prices
for 2003–05 (published by NASS) is
$1,357 per ton. At that average price, the
553 tons produced on 353 acres would
yield approximately $750,000 in annual
revenue. The 2002 Agricultural Census
indicated 56 walnut farms (just under
one percent of the 7,025 walnut farmers
in 2002) were 500 acres or larger. The
500 acre threshold in the census data is
somewhat larger than the 353 acres that
would produce $750,000 in revenue
with average yields and average prices.
Thus, it can be concluded that the
number of large walnut farms in 2006 is
still likely to be not much above 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 2006–07
and subsequent marketing years from
$0.0096 to $0.0101 per kernelweight
pound of assessable walnuts. The Board
unanimously recommended 2006–07
expenditures of $3,222,860 and an
assessment rate of $0.0101 per
kernelweight pound of assessable
walnuts. The assessment rate of $0.0101
is $0.0005 higher than the 2005–06 rate.
The quantity of assessable walnuts for
the 2006–07 marketing year is estimated
at 318,600,000 merchantable
kernelweight pounds. Thus, the $0.0101
rate should provide $3,217,860 in
assessment income. Assessment income
combined with interest income should
be adequate to meet this year’s
expenses. The increased assessment rate
is primarily due to increased budget
expenditures.
The following table compares major
budget expenditures recommended by
the Board for the 2005–06 and 2006–07
marketing years:
Budget expense categories
2005–06
rmajette on PROD1PC67 with RULES1
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 ..................................................................................................................................
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. 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.
According to NASS, the season
average grower prices for years 2004 and
2005 were $1,390 and $1,520 per ton,
respectively. Dividing these average
grower prices by 2,000 pounds per ton
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Jkt 211001
provides an inshell price per pound
range of between $.70 and $.76.
Adjusting by a few cents above and
below those prices ($0.67 to $0.79 per
inshell pound) provides a reasonable
price range within which the 2006–07
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 2006–07 price
range estimate of $1.49 and $1.76 per
kernelweight pound of assessable
walnuts.
To calculate the percentage of grower
revenue represented by the assessment
rate, the assessment rate of $0.0101 (per
kernelweight pound) is divided by the
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66647
2006–07
$360,000
80,000
132,500
$415,000
75,000
142,500
5,000
85,000
95,000
75,000
500,000
1,550,000
55,100
5,000
100,000
75,000
650,000
1,750,000
10,360
low and high estimates of the price
range and then multiplied by 100. The
estimated assessment revenue for the
2006–07 marketing year as a percentage
of total grower revenue would likely
range between .7 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
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66648
Federal Register / Vol. 71, No. 221 / Thursday, November 16, 2006 / Rules and Regulations
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 8,
2006, meeting was a public meeting and
all entities, both large and small, were
able to express views on this issue.
Finally, interested persons are invited to
submit information on the regulatory
and informational impacts of this action
on small businesses.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large California
walnut handlers. As with all Federal
marketing order programs, reports and
forms are periodically reviewed to
reduce information requirements and
duplication by industry and public
sector agencies.
The AMS is committed to complying
with the E-Government Act, to promote
the use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
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 upon good cause that it
is impracticable, unnecessary, and
contrary to the public interest to give
preliminary notice prior to putting this
rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because handlers have begun shipping
walnuts for the 2006–07 marketing year.
The marketing year began on August 1,
2006, and the assessment rate applies to
all walnuts shipped during the 2006–07
and subsequent seasons. With the
assessment rate in effect prior to
publication of this rule, the Board
would not generate sufficient revenue to
meet its budgeted expenses for the
2006–07 marketing year. The Board
needs to have sufficient funds to pay its
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expenses which are incurred on a
continuous basis. Further, handlers are
aware of this rule which was
unanimously recommended at a public
meeting and is similar to other
assessment rate actions issued in prior
years. This interim final rule provides a
60-day comment period, and any
comments received will be considered
prior to finalization of this rule.
List of Subjects in 7 CFR Part 984
Marketing agreements, Walnuts, Nuts,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 984 is amended as
follows:
I
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, 2006, an
assessment rate of $0.0101 per
kernelweight pound is established for
California merchantable walnuts.
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–9251 Filed 11–14–06; 1:09 pm]
BILLING CODE 3410–02–P
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 50
RIN 3150–AH95
Criticality Control of Fuel Within Dry
Storage Casks or Transportation
Packages in a Spent Fuel Pool
Nuclear Regulatory
Commission.
ACTION: Direct final rule.
AGENCY:
SUMMARY: The Nuclear Regulatory
Commission (NRC) is amending its
regulations that govern domestic
licensing of production and utilization
facilities so that the requirements
governing criticality control for spent
fuel pool storage racks do not apply to
the fuel within a spent fuel
transportation package or storage cask
when a package or cask is in a spent fuel
pool. These packages and casks are
subject to separate criticality control
requirements. This action is necessary
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Sfmt 4700
to avoid applying two different sets of
criticality control requirements to fuel
within a package or cask in a spent fuel
pool.
DATES: Effective Date: The final rule will
become effective January 30, 2007,
unless significant adverse comments are
received by December 18, 2006. A
significant adverse comment is a
comment where the commenter
explains why the rule would be
inappropriate, including challenges to
the rule’s underlying premise or
approach, or would be ineffective or
unacceptable without a change (refer to
‘‘Procedural Background’’ in the
Supplementary Information section of
this document for further details). If the
rule is withdrawn, timely notice will be
published in the Federal Register.
Comments received after December 18,
2006 will be considered if it is practical
to do so, but the NRC is able to ensure
only that comments received on or
before this date will be considered.
ADDRESSES: You may submit comments
by any one of the following methods.
Please include the following number
RIN 3150–AH95 in the subject line of
your comments. Comments on
rulemakings submitted in writing or in
electronic form will be made available
for public inspection. Because your
comments will not be edited to remove
any identifying or contact information,
the NRC cautions you against including
personal information such as social
security numbers and birth dates in
your submission.
Mail comments to: Secretary, U.S.
Nuclear Regulatory Commission,
Washington, DC 20555–0001, ATTN:
Rulemakings and Adjudications Staff.
E-mail comments to: SECY@nrc.gov. If
you do not receive a reply e-mail
confirming that we have received your
comments, contact us directly at (301)
415–1966. You may also submit
comments via the NRC’s rulemaking
Web site at https://ruleforum.llnl.gov.
Address questions about our rulemaking
website to Carol Gallagher at (301) 415–
5905; e-mail cag@nrc.gov. Comments
can also be submitted via the Federal
eRulemaking Portal https://
www.regulations.gov.
Hand deliver comments to: 11555
Rockville Pike, Rockville, Maryland
20852, between 7:30 a.m. and 4:15 p.m.
Federal workdays [telephone (301) 415–
1966].
Fax comments to: Secretary, U.S.
Nuclear Regulatory Commission at (301)
415–1101.
Publicly available documents related
to this rulemaking may be viewed
electronically on the public computers
located at the NRC’s Public Document
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]]>Agencies
[Federal Register Volume 71, Number 221 (Thursday, November 16, 2006)]
[Rules and Regulations]
[Pages 66645-66648]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9251]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. FV06-984-2 IFR]
Walnuts Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule increases the assessment rate established for the
Walnut Marketing Board (Board) for the 2006-07 and subsequent marketing
years from $0.0096 to $0.0101 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 begins August 1 and ends
July 31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: November 17, 2006. Comments received by January 16, 2007 will be
considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938, E-mail: moab.docketclerk@usda.gov, or
Internet: https://www.regulations.gov. Comments should reference the
docket number and the date and page number of this issue of the Federal
Register and will be made available for public inspection in the Office
of the Docket Clerk during regular business hours, or can be viewed at:
https://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Shereen Marino, Marketing Specialist,
or Kurt Kimmel, Regional Manager, California Marketing Field Office,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or E-mail:
Shereen.Marino@usda.gov or Kurt.Kimmel@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber,
[[Page 66646]]
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 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, 2006, 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 2006-07 and subsequent marketing years from $0.0096 to $0.0101
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 2005-06 and subsequent marketing years, the Board
recommended, and USDA approved, an assessment rate of $0.0096 per
kernelweight of assessable walnuts that would continue 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 8, 2006, and unanimously recommended
2006-07 expenditures of $3,222,860 and an assessment rate of $0.0101
per kernelweight pound of assessable walnuts. In comparison, last
year's budgeted expenditures were $2,937,600. The assessment rate of
$0.0101 per kernelweight pound of assessable walnuts is $0.0005 per
pound higher than the rate currently in effect. The higher assessment
rate is necessary to cover increased expenses including increased
salaries, operating expenses and research for the 2006-07 marketing
year.
The following table compares major budget expenditures recommended
by the Board for the 2005-06 and 2006-07 marketing years:
------------------------------------------------------------------------
Budget expense categories 2005-06 2006-07
------------------------------------------------------------------------
Administrative Staff/Field Salaries & $360,000 $415,000
Benefits...............................
Travel/Board Expenses................... 80,000 75,000
Office Costs/Annual Audit............... 132,500 142,500
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Acreage Survey................. 85,000 ..............
Crop Estimate....................... 95,000 100,000
Production Research Director........ 75,000 75,000
Production Research................. 500,000 650,000
Domestic Market Development......... 1,550,000 1,750,000
Reserve for Contingency............. 55,100 10,360
------------------------------------------------------------------------
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 318,600,000 kernelweight pounds which should provide
$3,217,860 in assessment income. Assessment income combined with
interest income should 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 estimate for merchantable shipments is based on the California
Agricultural Statistics Service's crop estimate for the crop year of
354,000 tons (inshell). Pursuant to Sec. 981.51(b) of the order, this
figure was converted to a merchantable kernelweight basis using a
factor of .45 (354,000 tons x 2,000 pounds/ton x .45).
The assessment rate established in this rule 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
[[Page 66647]]
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 2006-07 budget and those for subsequent
marketing years will be reviewed and, as appropriate, approved by USDA.
Initial 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 initial 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.
There are currently 44 handlers of California walnuts subject to
regulation under the marketing order and approximately 5,150 growers in
the production area. Small agricultural service firms are defined by
the Small Business Administration (SBA) (13 CFR 121.201) as those whose
annual receipts are less than $6,500,000, and small agricultural
producers are defined as those whose annual receipts are less than
$750,000.
Current industry information suggests that 16 of the 44 handlers
(36 percent) shipped over $6,500,000 of merchantable walnuts and could
be considered large handlers by the SBA. Twenty-eight of the 44 walnut
handlers (64 percent) shipped under $6,500,000 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
2003-05 is 1.567 tons. A grower with 353 acres with average yields
would produce approximately 553 tons. The average of grower prices for
2003-05 (published by NASS) is $1,357 per ton. At that average price,
the 553 tons produced on 353 acres would yield approximately $750,000
in annual revenue. The 2002 Agricultural Census indicated 56 walnut
farms (just under one percent of the 7,025 walnut farmers in 2002) were
500 acres or larger. The 500 acre threshold in the census data is
somewhat larger than the 353 acres that would produce $750,000 in
revenue with average yields and average prices. Thus, it can be
concluded that the number of large walnut farms in 2006 is still likely
to be not much above 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 2006-07 and subsequent marketing
years from $0.0096 to $0.0101 per kernelweight pound of assessable
walnuts. The Board unanimously recommended 2006-07 expenditures of
$3,222,860 and an assessment rate of $0.0101 per kernelweight pound of
assessable walnuts. The assessment rate of $0.0101 is $0.0005 higher
than the 2005-06 rate. The quantity of assessable walnuts for the 2006-
07 marketing year is estimated at 318,600,000 merchantable kernelweight
pounds. Thus, the $0.0101 rate should provide $3,217,860 in assessment
income. Assessment income combined with interest income should be
adequate to meet this year's expenses. The increased assessment rate is
primarily due to increased budget expenditures.
The following table compares major budget expenditures recommended
by the Board for the 2005-06 and 2006-07 marketing years:
------------------------------------------------------------------------
Budget expense categories 2005-06 2006-07
------------------------------------------------------------------------
Administrative Staff/Field Salaries & $360,000 $415,000
Benefits...............................
Travel/Board Expenses................... 80,000 75,000
Office Costs/Annual Audit............... 132,500 142,500
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Acreage Survey................. 85,000
Crop Estimate....................... 95,000 100,000
Production Research Director........ 75,000 75,000
Production Research................. 500,000 650,000
Domestic Market Development......... 1,550,000 1,750,000
Reserve for Contingency............. 55,100 10,360
------------------------------------------------------------------------
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. 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 2004
and 2005 were $1,390 and $1,520 per ton, respectively. Dividing these
average grower prices by 2,000 pounds per ton provides an inshell price
per pound range of between $.70 and $.76. Adjusting by a few cents
above and below those prices ($0.67 to $0.79 per inshell pound)
provides a reasonable price range within which the 2006-07 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
2006-07 price range estimate of $1.49 and $1.76 per kernelweight pound
of assessable walnuts.
To calculate the percentage of grower revenue represented by the
assessment rate, the assessment rate of $0.0101 (per kernelweight
pound) is divided by the low and high estimates of the price range and
then multiplied by 100. The estimated assessment revenue for the 2006-
07 marketing year as a percentage of total grower revenue would likely
range between .7 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
[[Page 66648]]
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 8, 2006, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue. Finally, interested persons are invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
This action imposes no additional reporting or recordkeeping
requirements on either small or large California walnut handlers. As
with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
The AMS is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
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 upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because handlers have begun shipping walnuts for the 2006-07
marketing year. The marketing year began on August 1, 2006, and the
assessment rate applies to all walnuts shipped during the 2006-07 and
subsequent seasons. With the assessment rate in effect prior to
publication of this rule, the Board would not generate sufficient
revenue to meet its budgeted expenses for the 2006-07 marketing year.
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 unanimously recommended at a public meeting and is
similar to other assessment rate actions issued in prior years. This
interim final rule provides a 60-day comment period, and any comments
received will be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 984
Marketing agreements, Walnuts, Nuts, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 984 is 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, 2006, an assessment rate of $0.0101 per
kernelweight pound is established for California merchantable walnuts.
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-9251 Filed 11-14-06; 1:09 pm]
BILLING CODE 3410-02-P
