Walnuts Grown in California; Increased Assessment Rate and Changes to Regulations Governing Reporting and Recordkeeping, 44300-44304 [E9-20770]
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Proposed Rules
Federal Register
Vol. 74, No. 166
Friday, August 28, 2009
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Doc. No. AMS–FV–09–0020; FV09–984–3
PR]
Walnuts Grown in California; Increased
Assessment Rate and Changes to
Regulations Governing Reporting and
Recordkeeping
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
jlentini on DSKJ8SOYB1PROD with PROPOSALS
SUMMARY: This rule would increase the
assessment rate established for the
California Walnut Board (Board) for the
2009–10 and subsequent marketing
years from $0.0131 to $0.0177 per
kernelweight pound of assessable
walnuts. This rule would also change
reporting and recordkeeping regulations
in conformance with amendments made
on March 3, 2008, to the marketing
order that regulates the handling of
walnuts grown in California. The Board
locally administers the marketing order.
Assessments upon walnut handlers are
used by the Board to fund reasonable
and necessary expenses of the program.
The marketing year begins September 1
and ends August 31. The assessment
rate would remain in effect indefinitely
unless modified, suspended, or
terminated.
DATES: Comments must be received by
September 28, 2009.
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; or Internet: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register and will be
available for public inspection in the
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Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Debbie Wray, Marketing Specialist, or
Kurt J. 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:
Debbie.Wray@ams.usda.gov or
Kurt.Kimmel@ams.usda.gov.
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@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Order No.
984, 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 proposed herein
would be applicable to all assessable
walnuts beginning on September 1,
2009, 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
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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 would increase the
assessment rate established for the
Board for the 2009–10 and subsequent
marketing years from $0.0131 to $0.0177
per kernelweight pound of assessable
walnuts. It would also make conforming
changes to reporting and recordkeeping
regulations, which are needed to reflect
recent marketing order amendments.
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 growers and handlers
of California walnuts. They are familiar
with the Board’s needs and with 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 in a public
meeting. Thus, all directly affected
persons have an opportunity to
participate and provide input.
For the 2008–09 and subsequent
marketing years, the Board
recommended, and USDA approved, an
assessment rate of $0.0131 per
kernelweight pound 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 May 18, 2009, and
unanimously recommended 2009–10
expenditures of $5,894,100 and an
assessment rate of $0.0177 per
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kernelweight pound of assessable
walnuts. In comparison, last year’s
budgeted expenditures were $3,809,000.
The assessment rate of $0.0177 is
$0.0046 per pound higher than the rate
currently in effect. The increased
assessment rate is necessary to cover
increased expenses for domestic market
promotion, research activities, and
administrative expenses. The higher
assessment rate should generate
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sufficient income to cover anticipated
2009–10 expenses.
The following table compares major
budget expenditures recommended by
the Board for the 2008–09 and 2009–10
marketing years:
Budget expense categories
2008–09
Employee Expenses ................................................................................................................................................
Travel/Board Expenses ...........................................................................................................................................
Office Costs/Annual Audit ........................................................................................................................................
Program Expenses Including Research:
Controlled Purchases .......................................................................................................................................
Crop Estimate ...................................................................................................................................................
Production Research * ......................................................................................................................................
Contingency-Research Issues ..........................................................................................................................
Domestic Market Development ........................................................................................................................
Reserve for Contingency ..................................................................................................................................
2009–10
$410,500
100,000
142,500
$535,000
120,000
164,750
5,000
110,000
805,000
30,000
2,135,000
71,000
5,000
120,000
805,000
100,000
4,030,500
13,850
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* Includes Research Director’s compensation.
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
333,000,000 kernelweight pounds,
which should provide $5,894,100 in
assessment income and allow the Board
to cover its expenses. Unexpended
funds may be retained in a financial
reserve, provided that funds in the
financial reserve do not exceed
approximately two years’ budgeted
expenses. If not retained in a financial
reserve, 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 of the order.
The estimate for merchantable
shipments is based on historical data,
which is an average of the three prior
years’ production of 370,000 tons
(inshell). Pursuant to § 984.51(b) of the
order, this figure was converted to a
merchantable kernelweight basis using a
factor of .45 (370,000 tons × 2,000
pounds per ton × .45).
The proposed assessment rate would
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 would
be in effect for an indefinite period, the
Board would 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.
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Board meetings are open to the public
and interested persons may express
their views at these meetings. USDA
would evaluate Board recommendations
and other available information to
determine whether modification of the
assessment rate is needed. Further
rulemaking would be undertaken as
necessary. The Board’s 2009–10 budget
and those for subsequent marketing
years would be reviewed and, as
appropriate, approved by USDA.
Recent amendments to the order (73
FR 11328, March 3, 2008) changed the
Board’s name to ‘‘California Walnut
Board’’ (CWB), changed the Board’s
marketing year from August 1 through
July 31 to September 1 through August
31, and replaced the term ‘‘handler
carryover’’ with the term ‘‘handler
inventory.’’ To reflect these changes, the
Board unanimously recommended
conforming changes to the order’s
reporting and recordkeeping regulations
at a meeting on February 27, 2009.
Section 984.456(a) would be revised
to specify that beginning on September
1 of any marketing year, a handler may
become an agent of the Board to dispose
of reserve walnuts in that marketing
year. Section 984.471 would be revised
by changing the term ‘‘carryover’’ to
‘‘inventory’’, by requiring handlers to
report September 1 inventory
information by September 15, and by
changing the names of the related
inventory forms to ‘‘CWB Form No. 4’’
and ‘‘CWB Form No. 5.’’ Section
984.476 would be revised to require that
handlers file reports of walnut import
receipts with the Board by December 5
for receipts between September 1 and
November 30, by March 5 for receipts
between December 1 and the end of
February, by June 5 for receipts between
March 1 and May 31, and by September
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5 for receipts between June 1 and
August 31; and to change the name of
the reporting form to ‘‘CWB Form No.
7.’’ Section 984.480(d) would be revised
to specify that inventories of all walnut
quantities held on September 1 must be
reported to the Board. The acronym
‘‘WMB’’ would be replaced with ‘‘CWB’’
in form names described in the
following sections not previously listed
above: §§ 984.456(b), 984.464(c),
984.472(a), and 984.472(b). Finally, in
order to update the regulations, genderspecific language would be changed in
§§ 984.456(b) and 984.472(a) to replace
‘‘he’’ and ‘‘his’’ with ‘‘he/she’’ and ‘‘his/
her.’’
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA)
(5 U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
action on small entities. Accordingly,
AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
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.
There are currently 58 handlers of
California walnuts subject to regulation
under the marketing order, and there are
approximately 4,500 growers in the
production area. Small agricultural
service firms are defined by the Small
Business Administration (SBA) (13 CFR
121.201) as those having annual receipts
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of less than $7,000,000, and small
agricultural growers are defined as those
having annual receipts of less than
$750,000.
USDA’s National Agricultural
Statistics Service (NASS) reports that
California walnuts were harvested from
a total of 218,000 bearing acres during
2007–08. The average yield for the
2007–08 crop was 1.50 tons per acre,
which is slightly lower than the 1.53
tons per acre average for the previous
five years. NASS reported the value of
the 2007–08 crop at $2,290 per ton,
which is considerably higher than the
previous five-year average of $1,384 per
ton.
At the time of the 2007 Census of
Agriculture, which is the most recent
information available, approximately 89
percent of California’s walnut farms
were smaller than 100 acres. Fifty-four
percent were between 1 and 15 acres. A
100-acre farm with an average yield of
1.50 tons per acre would have been
expected to produce about 150 tons of
walnuts during 2007–08. At $2,290 per
ton, that farm’s production would have
had an approximate value of $344,000.
Assuming that the majority of
California’s walnut farms are still
smaller than 100 acres, it could be
concluded that the majority of the
growers had receipts of less than
$344,000 in 2007–08. This is well below
the SBA threshold of $750,000; thus, the
majority of California’s walnut growers
would be considered small growers
according to SBA’s definition.
According to information supplied by
the industry, approximately two-thirds
of California’s walnut handlers shipped
merchantable walnuts valued under
$7,000,000 during the 2007–08
marketing year and would therefore be
considered small handlers according to
the SBA definition.
This rule would increase the
assessment rate established for the
Board and collected from handlers for
the 2009–10 and subsequent marketing
years from $0.0131 to $0.0177 per
kernelweight pound of assessable
walnuts. The Board unanimously
recommended 2009–10 expenditures of
$5,894,100 and an assessment rate of
$0.0177 per kernelweight pound. The
proposed assessment rate of $0.0177 is
$0.0046 higher than the 2008–09 rate.
The quantity of assessable walnuts for
the 2009–10 marketing year is estimated
at 370,000 tons. Thus, the $0.0177 rate
should provide $5,894,100 in
assessment income and 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 2008–09 and 2009–10
marketing years:
Budget expense categories
2008–09
Employee Expenses ................................................................................................................................................
Travel/Board Expenses ...........................................................................................................................................
Office Costs/Annual Audit ........................................................................................................................................
Program Expenses Including Research:
Controlled Purchases .......................................................................................................................................
Crop Estimate ...................................................................................................................................................
Production Research * ......................................................................................................................................
Contingency-Research Issues ..........................................................................................................................
Domestic Market Development ........................................................................................................................
Reserve for Contingency ..................................................................................................................................
2009–10
$410,500
100,000
142,500
$535,000
120,000
164,750
5,000
110,000
805,000
30,000
2,135,000
71,000
5,000
120,000
805,000
100,000
4,030,500
13,850
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* Includes Research Director’s compensation.
The Board reviewed and unanimously
recommended 2009–10 expenditures of
$5,894,100. Prior to arriving at this
budget, the Board considered alternative
expenditure levels but ultimately
decided that the recommended levels
were reasonable to properly administer
the order. The assessment rate
recommended by the Board was derived
by dividing anticipated expenses by
expected shipments of California
walnuts certified as merchantable.
Merchantable shipments for the year are
estimated at 333,000,000 kernelweight
pounds, which should provide
$5,894,100 in assessment income and
allow the Board to cover its expenses.
Unexpended funds may be retained in
a financial reserve, provided that funds
in the financial reserve do not exceed
approximately two years’ budgeted
expenses. If not retained in a financial
reserve, 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
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the end of the year, according to
§ 984.69 of the order.
According to NASS, the season
average grower prices for the years 2006
and 2007 were $1,630 and $2,290 per
ton, respectively. Although no official
NASS data is yet available regarding the
2008 average grower price, the 2006 and
2007 prices provide a range within
which the 2008–09 season average price
could fall. Dividing these average
grower prices by 2,000 pounds per ton
provides an inshell price per pound
range of $0.815 to $1.15. Dividing these
inshell prices per pound by the 0.45
conversion factor (inshell to
kernelweight) established in the order
yields a 2008–09 price range estimate of
$1.81 to $2.56 per kernelweight pound
of assessable walnuts.
To calculate the percentage of grower
revenue represented by the assessment
rate, the assessment rate of $0.0177 per
kernelweight pound is divided by the
low and high estimates of the price
range. The estimated assessment
revenue for the 2009–10 marketing year
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as a percentage of total grower revenue
would thus likely range between 0.691
and 0.978 percent.
As a result of amendments to the
order on March 3, 2008 (73 FR 11328),
the Board unanimously recommended
conforming changes to the order’s
reporting and recordkeeping regulations
at its meeting on February 27, 2009.
These conforming changes reflect
amendments to the marketing year,
terminology, and Board name. The
conforming changes include the date
when a handler may become an agent of
the Board to dispose of reserve walnuts.
Conforming changes would also change
the term ‘‘carryover’’ to ‘‘inventory’’ and
modify the first of three dates in a
marketing year when handlers are
required to report their inventory to the
Board. Further conforming changes
include the dates that handlers must
report to the Board their receipts of
walnuts from outside of the United
States and for what periods. Another
conforming change would modify the
first of three dates in a marketing year
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wherein handlers must indicate in their
books and records the quantity of
walnuts they held. Finally, there would
be conforming changes to replace the
Board name acronym ‘‘WMB’’ with
‘‘CWB’’ in form numbers. In addition to
these conforming changes, genderspecific language would also be changed
from ‘‘he’’ and ‘‘his’’ to ‘‘he/she’’ and
‘‘his/her’’. There are no viable
alternatives to these proposed
conforming changes.
This action would increase 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 growers. However,
these costs would be offset by the
benefits derived by the operation of the
marketing order. In addition, the
Board’s meetings were widely
publicized throughout the California
walnut industry, and all interested
persons were invited to attend the
meetings and participate in Board
deliberations on all issues. Like all
Board meetings, the May 18, 2009, and
February 27, 2009, meetings were public
meetings, and all entities, both large and
small, were able to express views on
this issue. Finally, interested persons
are invited to submit comments on this
proposed rule, including the regulatory
and informational impacts of this action
on small businesses.
This proposed rule would require
minor conforming changes to several
Board forms currently approved by the
Office of Management and Budget
(OMB), under OMB No. 0581–0178,
Vegetable and Specialty Crops. These
changes will not affect the burden
currently approved under that
collection. The revised forms are being
submitted to OMB through a change of
worksheet. This action would impose
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.
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
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marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
AMSv1.0/ams.fetchTemplateData.do?
template=TemplateN&
page=MarketingOrdersSmallBusiness
Guide. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2009–10 marketing year begins on
September 1, 2009, and the marketing
order requires that the rate of
assessment for each marketing year
apply to all assessable walnuts handled
during the year; (2) the Board needs to
have sufficient funds to pay its
expenses, which are incurred on a
continuous basis; (3) handlers are aware
of this action, which was unanimously
recommended by the Board at a public
meeting and is similar to other
assessment rate actions issued in past
years; and (4) conforming changes made
to the reporting and recordkeeping
regulations should be implemented as
quickly as possible to assure program
continuity.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts,
Reporting and recordkeeping
requirements, Walnuts.
For the reasons set forth in the
preamble, 7 CFR part 984 is proposed to
be amended as follows:
PART 984—WALNUTS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 984 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 984.347 is revised to read
as follows:
§ 984.347
Assessment rate.
On and after September 1, 2009, an
assessment rate of $0.0177 per
kernelweight pound is established for
California merchantable walnuts.
3. Amend § 984.456 by revising
paragraphs (a) and (b) to read as follows:
§ 984.456 Disposition of reserve walnuts
and walnuts used for reserve disposition
credit.
(a) Beginning September 1 of any
marketing year, a handler may become
an agent of the Board to dispose of
reserve walnuts of such marketing year.
The agency shall be established upon
execution of an ‘‘Agency Agreement for
Reserve Walnuts’’ setting forth the terms
and conditions specified by the Board
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44303
for the sale of reserve walnuts in
authorized outlets.
(b) Any handler who desires to
transfer disposition credit in excess of
his/her reserve obligation to another
handler shall submit a request to the
Board for such transfer on CWB Form
No. 17 signed by both handlers and the
Board shall credit such transfer.
*
*
*
*
*
4. Amend § 984.464 by revising
paragraph (c) to read as follows:
§ 984.464
walnuts.
Disposition of substandard
*
*
*
*
*
(c) Each handler who disposes of
substandard walnuts to an approved
crusher, livestock feed manufacturer or
livestock feeder shall upon shipment
report to the Board on CWB Form No.
20, the quantities disposed of or
shipped.
5. Section 984.471 is revised to read
as follows:
§ 984.471
Reports of handler inventory.
Reports of handler inventory as of
September 1, January 1, and April 1 of
each marketing year shall be submitted
to the Board on CWB Form No. 4 for
inshell walnuts and on CWB Form No.
5 for shelled walnuts, on or before
September 15, January 15, and April 15
respectively, of that marketing year.
6. Section 984.472 is revised to read
as follows:
§ 984.472 Reports of merchantable
walnuts shipped.
(a) Reports of merchantable walnuts
shipped during a month shall be
submitted to the Board on CWB Form
No. 6 not later than the 5th day of the
following month. Such reports shall
include all shipments during the
preceding month and shall show for
inshell and shelled walnuts the quantity
shipped, whether they were shipped
into domestic or export channels, and
for exports, the quantity by country of
destination. If a handler makes no
shipments during any month he/she
shall submit a report marked ‘‘None.’’ If
a handler has completed his/her
shipments for the season, he/she shall
mark the report ‘‘Completed,’’ and he/
she shall not be required to submit any
additional CWB Form No. 6 reports
during the remainder of that marketing
year.
(b) Reports of walnuts purchased
directly from growers by handlers who
are manufacturers or retailers shall be
submitted to the Board on CWB Form
No. 6, not later than the 5th day of the
month following the month in which
the walnuts were purchased. Such
reports shall show the quantity of
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walnuts purchased and the quantity
inspected and certified as merchantable
walnuts.
7. Section 984.476 is revised to read
as follows:
§ 984.476 Report of walnut receipts from
outside of the United States.
Each handler who receives walnuts
from outside of the United States shall
file with the Board, on CWB Form No.
7, a report of the receipt of such
walnuts. The report shall be filed as
follows: On or before December 5 for
such walnuts received during the period
September 1 to November 30; on or
before March 5 for such walnuts
received during the period December 1
to February 28 (February 29 in a leap
year); on or before June 5 for such
walnuts received during the period
March 1 to May 31; and on or before
September 5 for such walnuts received
during the period June 1 to August 31.
The report shall include the quantity of
such walnuts received, the country of
origin for such walnuts, and whether
such walnuts are inshell or shelled.
With each report, the handler shall
submit a copy of a product tag issued by
a DFA of California inspector for each
receipt of such walnuts that includes
the name of the person from whom such
walnuts were received, the date such
walnuts were received by the handler,
the number of containers and the U.S.
Custom’s Service entry number,
whether such walnuts are inshell or
shelled, the quantity of such walnuts
received, the country of origin for such
walnuts, the name of the DFA of
California inspector who issued the
product tag, and the date such tag was
issued.
8. Amend § 984.480 by revising
paragraph (d) to read as follows:
§ 984.480
Books and other records.
*
*
*
*
(d) The quantities held on September
1, January 1, and April 1 of each
marketing year.
jlentini on DSKJ8SOYB1PROD with PROPOSALS
*
Dated: August 24, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing
Service.
[FR Doc. E9–20770 Filed 8–27–09; 8:45 am]
BILLING CODE 3410–02–P
VerDate Nov<24>2008
17:19 Aug 27, 2009
Jkt 217001
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Docket No. AMS–FV–09–0045; FV09–987–
2 PR]
Domestic Dates Produced or Packed in
Riverside County, CA; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
SUMMARY: This rule would increase the
assessment rate established for the
California Date Administrative
Committee (Committee) for the 2009–10
and subsequent crop years from $0.60 to
$0.75 per hundredweight of dates
handled. The Committee locally
administers the marketing order which
regulates the handling of dates grown or
packed in Riverside County, California.
Assessments upon date handlers are
used by the Committee to fund
reasonable and necessary expenses of
the program. The crop year begins
October 1 and ends September 30. The
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
September 28, 2009.
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; 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
available for public inspection in the
Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Terry Vawter, Senior Marketing
Specialist, or Kurt J. 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:
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
Terry.Vawter@ams.usda.gov or
Kurt.Kimmel@ams.usda.gov.
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@ams.usda.gov.
This rule
is issued under Marketing Order No.
987, as amended (7 CFR part 987),
regulating the handling of dates grown
or packed in Riverside County,
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 date handlers are
subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as proposed herein
would be applicable to all assessable
dates beginning October 1, 2009, 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 would increase the
assessment rate established for the
Committee for the 2009–10 and
SUPPLEMENTARY INFORMATION:
E:\FR\FM\28AUP1.SGM
28AUP1
]]>Agencies
[Federal Register Volume 74, Number 166 (Friday, August 28, 2009)]
[Proposed Rules]
[Pages 44300-44304]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-20770]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 74, No. 166 / Friday, August 28, 2009 /
Proposed Rules
[[Page 44300]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Doc. No. AMS-FV-09-0020; FV09-984-3 PR]
Walnuts Grown in California; Increased Assessment Rate and
Changes to Regulations Governing Reporting and Recordkeeping
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the California Walnut Board (Board) for the 2009-10 and subsequent
marketing years from $0.0131 to $0.0177 per kernelweight pound of
assessable walnuts. This rule would also change reporting and
recordkeeping regulations in conformance with amendments made on March
3, 2008, to the marketing order that regulates the handling of walnuts
grown in California. The Board locally administers the marketing order.
Assessments upon walnut handlers are used by the Board to fund
reasonable and necessary expenses of the program. The marketing year
begins September 1 and ends August 31. The assessment rate would remain
in effect indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by September 28, 2009.
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; or Internet: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Debbie Wray, Marketing Specialist, or
Kurt J. 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:
Debbie.Wray@ams.usda.gov or Kurt.Kimmel@ams.usda.gov.
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@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 984, 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 proposed herein would be applicable to all
assessable walnuts beginning on September 1, 2009, 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 would increase the assessment rate established for the
Board for the 2009-10 and subsequent marketing years from $0.0131 to
$0.0177 per kernelweight pound of assessable walnuts. It would also
make conforming changes to reporting and recordkeeping regulations,
which are needed to reflect recent marketing order amendments.
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 growers and handlers of
California walnuts. They are familiar with the Board's needs and with
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 in a public meeting. Thus,
all directly affected persons have an opportunity to participate and
provide input.
For the 2008-09 and subsequent marketing years, the Board
recommended, and USDA approved, an assessment rate of $0.0131 per
kernelweight pound 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 May 18, 2009, and unanimously recommended 2009-10
expenditures of $5,894,100 and an assessment rate of $0.0177 per
[[Page 44301]]
kernelweight pound of assessable walnuts. In comparison, last year's
budgeted expenditures were $3,809,000. The assessment rate of $0.0177
is $0.0046 per pound higher than the rate currently in effect. The
increased assessment rate is necessary to cover increased expenses for
domestic market promotion, research activities, and administrative
expenses. The higher assessment rate should generate sufficient income
to cover anticipated 2009-10 expenses.
The following table compares major budget expenditures recommended
by the Board for the 2008-09 and 2009-10 marketing years:
------------------------------------------------------------------------
Budget expense categories 2008-09 2009-10
------------------------------------------------------------------------
Employee Expenses....................... $410,500 $535,000
Travel/Board Expenses................... 100,000 120,000
Office Costs/Annual Audit............... 142,500 164,750
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Estimate....................... 110,000 120,000
Production Research *............... 805,000 805,000
Contingency-Research Issues......... 30,000 100,000
Domestic Market Development......... 2,135,000 4,030,500
Reserve for Contingency............. 71,000 13,850
------------------------------------------------------------------------
* Includes Research Director's compensation.
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 333,000,000 kernelweight pounds, which should provide
$5,894,100 in assessment income and allow the Board to cover its
expenses. Unexpended funds may be retained in a financial reserve,
provided that funds in the financial reserve do not exceed
approximately two years' budgeted expenses. If not retained in a
financial reserve, 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 of the order.
The estimate for merchantable shipments is based on historical
data, which is an average of the three prior years' production of
370,000 tons (inshell). Pursuant to Sec. 984.51(b) of the order, this
figure was converted to a merchantable kernelweight basis using a
factor of .45 (370,000 tons x 2,000 pounds per ton x .45).
The proposed assessment rate would 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 would be in effect for an indefinite
period, the Board would continue to meet prior to or during each
marketing year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Board meetings are available from the Board or USDA. Board
meetings are open to the public and interested persons may express
their views at these meetings. USDA would evaluate Board
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Board's 2009-10 budget and those for
subsequent marketing years would be reviewed and, as appropriate,
approved by USDA.
Recent amendments to the order (73 FR 11328, March 3, 2008) changed
the Board's name to ``California Walnut Board'' (CWB), changed the
Board's marketing year from August 1 through July 31 to September 1
through August 31, and replaced the term ``handler carryover'' with the
term ``handler inventory.'' To reflect these changes, the Board
unanimously recommended conforming changes to the order's reporting and
recordkeeping regulations at a meeting on February 27, 2009.
Section 984.456(a) would be revised to specify that beginning on
September 1 of any marketing year, a handler may become an agent of the
Board to dispose of reserve walnuts in that marketing year. Section
984.471 would be revised by changing the term ``carryover'' to
``inventory'', by requiring handlers to report September 1 inventory
information by September 15, and by changing the names of the related
inventory forms to ``CWB Form No. 4'' and ``CWB Form No. 5.'' Section
984.476 would be revised to require that handlers file reports of
walnut import receipts with the Board by December 5 for receipts
between September 1 and November 30, by March 5 for receipts between
December 1 and the end of February, by June 5 for receipts between
March 1 and May 31, and by September 5 for receipts between June 1 and
August 31; and to change the name of the reporting form to ``CWB Form
No. 7.'' Section 984.480(d) would be revised to specify that
inventories of all walnut quantities held on September 1 must be
reported to the Board. The acronym ``WMB'' would be replaced with
``CWB'' in form names described in the following sections not
previously listed above: Sec. Sec. 984.456(b), 984.464(c), 984.472(a),
and 984.472(b). Finally, in order to update the regulations, gender-
specific language would be changed in Sec. Sec. 984.456(b) and
984.472(a) to replace ``he'' and ``his'' with ``he/she'' and ``his/
her.''
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
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.
There are currently 58 handlers of California walnuts subject to
regulation under the marketing order, and there are approximately 4,500
growers in the production area. Small agricultural service firms are
defined by the Small Business Administration (SBA) (13 CFR 121.201) as
those having annual receipts
[[Page 44302]]
of less than $7,000,000, and small agricultural growers are defined as
those having annual receipts of less than $750,000.
USDA's National Agricultural Statistics Service (NASS) reports that
California walnuts were harvested from a total of 218,000 bearing acres
during 2007-08. The average yield for the 2007-08 crop was 1.50 tons
per acre, which is slightly lower than the 1.53 tons per acre average
for the previous five years. NASS reported the value of the 2007-08
crop at $2,290 per ton, which is considerably higher than the previous
five-year average of $1,384 per ton.
At the time of the 2007 Census of Agriculture, which is the most
recent information available, approximately 89 percent of California's
walnut farms were smaller than 100 acres. Fifty-four percent were
between 1 and 15 acres. A 100-acre farm with an average yield of 1.50
tons per acre would have been expected to produce about 150 tons of
walnuts during 2007-08. At $2,290 per ton, that farm's production would
have had an approximate value of $344,000. Assuming that the majority
of California's walnut farms are still smaller than 100 acres, it could
be concluded that the majority of the growers had receipts of less than
$344,000 in 2007-08. This is well below the SBA threshold of $750,000;
thus, the majority of California's walnut growers would be considered
small growers according to SBA's definition.
According to information supplied by the industry, approximately
two-thirds of California's walnut handlers shipped merchantable walnuts
valued under $7,000,000 during the 2007-08 marketing year and would
therefore be considered small handlers according to the SBA definition.
This rule would increase the assessment rate established for the
Board and collected from handlers for the 2009-10 and subsequent
marketing years from $0.0131 to $0.0177 per kernelweight pound of
assessable walnuts. The Board unanimously recommended 2009-10
expenditures of $5,894,100 and an assessment rate of $0.0177 per
kernelweight pound. The proposed assessment rate of $0.0177 is $0.0046
higher than the 2008-09 rate. The quantity of assessable walnuts for
the 2009-10 marketing year is estimated at 370,000 tons. Thus, the
$0.0177 rate should provide $5,894,100 in assessment income and 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 2008-09 and 2009-10 marketing years:
------------------------------------------------------------------------
Budget expense categories 2008-09 2009-10
------------------------------------------------------------------------
Employee Expenses....................... $410,500 $535,000
Travel/Board Expenses................... 100,000 120,000
Office Costs/Annual Audit............... 142,500 164,750
Program Expenses Including Research:
Controlled Purchases................ 5,000 5,000
Crop Estimate....................... 110,000 120,000
Production Research *............... 805,000 805,000
Contingency-Research Issues......... 30,000 100,000
Domestic Market Development......... 2,135,000 4,030,500
Reserve for Contingency............. 71,000 13,850
------------------------------------------------------------------------
* Includes Research Director's compensation.
The Board reviewed and unanimously recommended 2009-10 expenditures
of $5,894,100. Prior to arriving at this budget, the Board considered
alternative expenditure levels but ultimately decided that the
recommended levels were reasonable to properly administer the order.
The assessment rate recommended by the Board was derived by dividing
anticipated expenses by expected shipments of California walnuts
certified as merchantable. Merchantable shipments for the year are
estimated at 333,000,000 kernelweight pounds, which should provide
$5,894,100 in assessment income and allow the Board to cover its
expenses. Unexpended funds may be retained in a financial reserve,
provided that funds in the financial reserve do not exceed
approximately two years' budgeted expenses. If not retained in a
financial reserve, 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 of the order.
According to NASS, the season average grower prices for the years
2006 and 2007 were $1,630 and $2,290 per ton, respectively. Although no
official NASS data is yet available regarding the 2008 average grower
price, the 2006 and 2007 prices provide a range within which the 2008-
09 season average price could fall. Dividing these average grower
prices by 2,000 pounds per ton provides an inshell price per pound
range of $0.815 to $1.15. Dividing these inshell prices per pound by
the 0.45 conversion factor (inshell to kernelweight) established in the
order yields a 2008-09 price range estimate of $1.81 to $2.56 per
kernelweight pound of assessable walnuts.
To calculate the percentage of grower revenue represented by the
assessment rate, the assessment rate of $0.0177 per kernelweight pound
is divided by the low and high estimates of the price range. The
estimated assessment revenue for the 2009-10 marketing year as a
percentage of total grower revenue would thus likely range between
0.691 and 0.978 percent.
As a result of amendments to the order on March 3, 2008 (73 FR
11328), the Board unanimously recommended conforming changes to the
order's reporting and recordkeeping regulations at its meeting on
February 27, 2009. These conforming changes reflect amendments to the
marketing year, terminology, and Board name. The conforming changes
include the date when a handler may become an agent of the Board to
dispose of reserve walnuts. Conforming changes would also change the
term ``carryover'' to ``inventory'' and modify the first of three dates
in a marketing year when handlers are required to report their
inventory to the Board. Further conforming changes include the dates
that handlers must report to the Board their receipts of walnuts from
outside of the United States and for what periods. Another conforming
change would modify the first of three dates in a marketing year
[[Page 44303]]
wherein handlers must indicate in their books and records the quantity
of walnuts they held. Finally, there would be conforming changes to
replace the Board name acronym ``WMB'' with ``CWB'' in form numbers. In
addition to these conforming changes, gender-specific language would
also be changed from ``he'' and ``his'' to ``he/she'' and ``his/her''.
There are no viable alternatives to these proposed conforming changes.
This action would increase 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 growers. However, these costs
would be offset by the benefits derived by the operation of the
marketing order. In addition, the Board's meetings were widely
publicized throughout the California walnut industry, and all
interested persons were invited to attend the meetings and participate
in Board deliberations on all issues. Like all Board meetings, the May
18, 2009, and February 27, 2009, meetings were public meetings, and all
entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit comments on
this proposed rule, including the regulatory and informational impacts
of this action on small businesses.
This proposed rule would require minor conforming changes to
several Board forms currently approved by the Office of Management and
Budget (OMB), under OMB No. 0581-0178, Vegetable and Specialty Crops.
These changes will not affect the burden currently approved under that
collection. The revised forms are being submitted to OMB through a
change of worksheet. This action would impose 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.
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[sol]AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. Any questions about the compliance guide should be sent to
Jay Guerber at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2009-10 marketing year begins on September 1, 2009,
and the marketing order requires that the rate of assessment for each
marketing year apply to all assessable walnuts handled during the year;
(2) the Board needs to have sufficient funds to pay its expenses, which
are incurred on a continuous basis; (3) handlers are aware of this
action, which was unanimously recommended by the Board at a public
meeting and is similar to other assessment rate actions issued in past
years; and (4) conforming changes made to the reporting and
recordkeeping regulations should be implemented as quickly as possible
to assure program continuity.
List of Subjects in 7 CFR Part 984
Marketing agreements, Nuts, Reporting and recordkeeping
requirements, Walnuts.
For the reasons set forth in the preamble, 7 CFR part 984 is
proposed to be amended as follows:
PART 984--WALNUTS GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 984 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 984.347 is revised to read as follows:
Sec. 984.347 Assessment rate.
On and after September 1, 2009, an assessment rate of $0.0177 per
kernelweight pound is established for California merchantable walnuts.
3. Amend Sec. 984.456 by revising paragraphs (a) and (b) to read
as follows:
Sec. 984.456 Disposition of reserve walnuts and walnuts used for
reserve disposition credit.
(a) Beginning September 1 of any marketing year, a handler may
become an agent of the Board to dispose of reserve walnuts of such
marketing year. The agency shall be established upon execution of an
``Agency Agreement for Reserve Walnuts'' setting forth the terms and
conditions specified by the Board for the sale of reserve walnuts in
authorized outlets.
(b) Any handler who desires to transfer disposition credit in
excess of his/her reserve obligation to another handler shall submit a
request to the Board for such transfer on CWB Form No. 17 signed by
both handlers and the Board shall credit such transfer.
* * * * *
4. Amend Sec. 984.464 by revising paragraph (c) to read as
follows:
Sec. 984.464 Disposition of substandard walnuts.
* * * * *
(c) Each handler who disposes of substandard walnuts to an approved
crusher, livestock feed manufacturer or livestock feeder shall upon
shipment report to the Board on CWB Form No. 20, the quantities
disposed of or shipped.
5. Section 984.471 is revised to read as follows:
Sec. 984.471 Reports of handler inventory.
Reports of handler inventory as of September 1, January 1, and
April 1 of each marketing year shall be submitted to the Board on CWB
Form No. 4 for inshell walnuts and on CWB Form No. 5 for shelled
walnuts, on or before September 15, January 15, and April 15
respectively, of that marketing year.
6. Section 984.472 is revised to read as follows:
Sec. 984.472 Reports of merchantable walnuts shipped.
(a) Reports of merchantable walnuts shipped during a month shall be
submitted to the Board on CWB Form No. 6 not later than the 5th day of
the following month. Such reports shall include all shipments during
the preceding month and shall show for inshell and shelled walnuts the
quantity shipped, whether they were shipped into domestic or export
channels, and for exports, the quantity by country of destination. If a
handler makes no shipments during any month he/she shall submit a
report marked ``None.'' If a handler has completed his/her shipments
for the season, he/she shall mark the report ``Completed,'' and he/she
shall not be required to submit any additional CWB Form No. 6 reports
during the remainder of that marketing year.
(b) Reports of walnuts purchased directly from growers by handlers
who are manufacturers or retailers shall be submitted to the Board on
CWB Form No. 6, not later than the 5th day of the month following the
month in which the walnuts were purchased. Such reports shall show the
quantity of
[[Page 44304]]
walnuts purchased and the quantity inspected and certified as
merchantable walnuts.
7. Section 984.476 is revised to read as follows:
Sec. 984.476 Report of walnut receipts from outside of the United
States.
Each handler who receives walnuts from outside of the United States
shall file with the Board, on CWB Form No. 7, a report of the receipt
of such walnuts. The report shall be filed as follows: On or before
December 5 for such walnuts received during the period September 1 to
November 30; on or before March 5 for such walnuts received during the
period December 1 to February 28 (February 29 in a leap year); on or
before June 5 for such walnuts received during the period March 1 to
May 31; and on or before September 5 for such walnuts received during
the period June 1 to August 31. The report shall include the quantity
of such walnuts received, the country of origin for such walnuts, and
whether such walnuts are inshell or shelled. With each report, the
handler shall submit a copy of a product tag issued by a DFA of
California inspector for each receipt of such walnuts that includes the
name of the person from whom such walnuts were received, the date such
walnuts were received by the handler, the number of containers and the
U.S. Custom's Service entry number, whether such walnuts are inshell or
shelled, the quantity of such walnuts received, the country of origin
for such walnuts, the name of the DFA of California inspector who
issued the product tag, and the date such tag was issued.
8. Amend Sec. 984.480 by revising paragraph (d) to read as
follows:
Sec. 984.480 Books and other records.
* * * * *
(d) The quantities held on September 1, January 1, and April 1 of
each marketing year.
Dated: August 24, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-20770 Filed 8-27-09; 8:45 am]
BILLING CODE 3410-02-P
