Peanut Promotion, Research, and Information Order; Amendment to Primary Peanut-Producing States and Adjustment of Membership, 15636-15639 [2014-06181]
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Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations
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modifications to the currently approved
‘‘Handler’s Report for Producer Payroll’’
form have been submitted to the OMB.
If a handler’s contract milk exceeds
the handler’s eligible milk for any
month in which the specified contract
price(s) are below the order’s minimum
prices, the handler must designate
which producer milk shall not be
contract milk. Preparing this
notification is estimated to take 5
minutes or less. If the handler does not
designate the suppliers of the overcontracted milk, the market
administrator shall prorate the overcontracted milk to each producer and
cooperative association having a
forward contract with the handler.
The primary sources of data used to
complete these reports are routinely
used in most business transactions. The
additional reporting requirements
required by this rule typically only
require a minimal amount of data
processing time, and the information
collection and reporting burden is
relatively small. Requiring the same
reports for all handlers does not
significantly disadvantage any handler
that is smaller than the industry
average.
USDA does not expect the forward
contracting program to unduly burden
small entities or impair their ability to
compete in the marketplace. In its
simplest form, a forward contract
between a milk buyer and a milk
producer (or cooperative) is an
agreement to sell a stated quantity of
milk for a specified period at a stated
price. Producers and handlers are able
to ‘‘lock-in’’ prices, thereby minimizing
risks associated with price and income
volatility and enhancing their ability to
obtain new or continued financing. By
providing another tool to possibly
reduce price risk, the program may aid
small businesses in competing with
larger entities that currently utilize
futures and options markets, among
other means, to reduce price volatility.
Final Action
In accordance with the 2014 Farm
Bill, this final rule extends the Dairy
Forward Pricing Program applicable
under all Federal milk marketing orders.
New contracts under the Program may
be entered into until September 30,
2018. Any forward contract entered into
up to and until the September 30, 2018,
deadline is subject to a September 30,
2021, expiration date.
Subtitle F of Title I of the 2014 Farm
Bill provides that the promulgation of
these regulations shall be made without
regard to the Paperwork Reduction Act
(44 U.S.C. Chapter 35), the Statement of
Policy of the Secretary of Agriculture,
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effective July 24, 1971 (36 FR 13804),1
and the notice and comment provisions
of section 553 of Title 5, United States
Code.
These provisions are made final in
this action, and for the same reasons
good cause exists for making this rule
effective one day after publication in the
Federal Register. To do otherwise
would be impracticable, unnecessary,
and contrary to the public interest. (5
U.S.C. 553; 5 U.S.C. 808)
List of Subjects in 7 CFR Part 1145
Contract, Forward contract, Forward
pricing, Milk.
For the reasons set forth in the
preamble, Title 7, chapter X, Part 1145
is amended as follows:
PART 1145—DAIRY FORWARD
PRICING PROGRAM
1. The authority citation for 7 CFR
part 1145 continues to read as follows:
■
Authority: 7 U.S.C. 8772.
2. Amend § 1145.2 by revising
paragraph (b) to read as follows:
■
§ 1145.2
Program.
*
*
*
*
*
(b) No forward price contract may be
entered into under the program after
September 30, 2018, and no forward
contract entered into under the program
may extend beyond September 30, 2021.
*
*
*
*
*
Dated: February 19, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–06189 Filed 3–20–14; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1216
[Document Number AMS–FV–13–0042]
Peanut Promotion, Research, and
Information Order; Amendment to
Primary Peanut-Producing States and
Adjustment of Membership
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule adds the State of
Arkansas as a primary peanut-producing
State under the Peanut Promotion,
Research, and Information Order
SUMMARY:
1 A Revocation of the Statement of Policy was
published in the Federal Register on October 28,
2013 (78 FR 64194).
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(Order). The Order is administered by
the National Peanut Board (Board) with
oversight by the U.S. Department of
Agriculture (USDA). This rule also adds
a seat on the Board for the State of
Arkansas. Under the Order, primary
peanut-producing States must maintain
a 3-year average production of at least
10,000 tons of peanuts. Arkansas’s
peanut production meets this
requirement. Primary peanut-producing
States also have a seat on the Board.
This action was recommended by the
Board and ensures that the Board’s
representation reflects changes in the
geographical distribution of the
production of peanuts.
DATES:
Effective: March 24, 2014.
FOR FURTHER INFORMATION CONTACT:
Jeanette Palmer, Marketing Specialist,
Promotion and Economics Division,
Fruit and Vegetable Program, AMS,
USDA, Stop 0244, 1400 Independence
Avenue SW., Room 1406–S,
Washington, DC 20250–0244; telephone:
(202) 720–9915; facsimile: (202) 205–
2800; or electronic mail:
Jeanette.Palmer@ams.usda.gov.
This rule
is issued under the Order (7 CFR part
1216). The Order is authorized under
the Commodity Promotion, Research,
and Information Act of 1996 (1996 Act)
(7 U.S.C. 7411–7425).
SUPPLEMENTARY INFORMATION:
Executive Order 12866 and Executive
Order 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules and promoting
flexibility. This action has been
designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
(OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
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Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect. Section 524 of the
1996 Act provides that it shall not affect
or preempt any other Federal or State
law authorizing promotion or research
relating to an agricultural commodity.
Under section 519 of the 1996 Act, a
person subject to an order may file a
written petition with USDA stating that
an order, any provision of an order, or
any obligation imposed in connection
with an order, is not established in
accordance with the law, and request a
modification of an order or an
exemption from an order. Any petition
filed challenging an order, any
provision of an order, or any obligation
imposed in connection with an order,
shall be filed within two years after the
effective date of an order, provision, or
obligation subject to challenge in the
petition. The petitioner will have the
opportunity for a hearing on the
petition. Thereafter, USDA will issue a
ruling on the petition. The 1996 Act
provides that the district court of the
United States for any district in which
the petitioner resides or conducts
business shall have the jurisdiction to
review a final ruling on the petition, if
the petitioner files a complaint for that
purpose not later than 20 days after the
date of the entry of USDA’s final ruling.
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Background
This rule adds the State of Arkansas
as a primary peanut-producing State
under the Order. The Order is
administered by the Board with
oversight by USDA. This rule also adds
a seat on the Board for the State of
Arkansas. Under the Order, primary
peanut-producing States must maintain
a 3-year average production of at least
10,000 tons of peanuts. Arkansas’s
peanut production meets this
requirement. Primary peanut-producing
States also have a seat on the Board.
This action ensures that the Board’s
representation reflects changes in the
geographical distribution of the
production of peanuts covered under
the Order.
The Order became effective on July
30, 1999. Under the Order, the Board
administers a nationally-coordinated
program of promotion, research, and
information designed to strengthen the
position of peanuts in the market place
and to develop, maintain, and expand
the demand for peanuts in the United
States. Under the program, all peanut
producers pay an assessment of one
percent of the total value of all farmers’
stock peanuts. The assessments are
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remitted to the Board by handlers and,
for peanuts under loan, by the
Commodity Credit Corporation.
The Order distinguishes between the
terms ‘‘minor peanut-producing states’’
and ‘‘primary peanut-producing states’’
for purposes of Board representation
and voting at meetings. Section 1216.21
defines primary peanut-producing
States as Alabama, Florida, Georgia,
Mississippi, New Mexico, North
Carolina, Oklahoma, South Carolina,
Texas and Virginia. These States must
maintain a 3-year average production of
at least 10,000 tons of peanuts. All other
peanut-producing States are defined as
minor peanut-producing States,
pursuant to section 1217.15.
As specified in section 1216.40(a), the
Board is composed of 11 producer
members and their alternates: One
member and alternate from each
primary peanut-producing State, and
one at-large member and alternate
collectively from the minor peanutproducing States. The members and
alternates are nominated by producers
or producer groups.
Pursuant to section 1216.40(b) of the
Order, at least once in each five-year
period, the Board must review the
geographical distribution of peanuts in
the United States and make a
recommendation to the Secretary of
Agriculture (Secretary) to continue
without change or whether changes
should be made in the number of
representatives on the Board to reflect
changes in the geographical distribution
of the production of peanuts.
the Order. The member opposed
expressed concern that Arkansas did not
produce 10,000 tons per year for three
consecutive years, similar to when the
Order was amended to add Mississippi
as a primary peanut-producing State (73
FR 39214; July 9, 2008). However, the
Order does not require that a State
produce 10,000 tons per year for three
consecutive years to be a primary
peanut-producing State. The Order
provides that a primary peanutproducing State shall maintain a threeyear average production of at least
10,000 tons of peanuts (section 1216.21)
In addition, USDA’s Federal State
Inspection Service reports that 22,947
tons of peanuts were inspected in 2013.
This indicates that Arkansas peanut
production has maintained its
production levels above 10,000 tons.
This action also adds a producer
member and alternate on the Board from
the State of Arkansas. Pursuant to
section 1216.40(a), primary peanutproducing states have a seat on the
Board.
These changes will help ensure that
the Board’s representation reflect
changes in the geographical distribution
of the production of peanuts.
Accordingly, this rule amends sections
1216.15 and 1216.21 of the Order to
classify the State of Arkansas as a
primary peanut-producing State. This
rule also revises sections 1216.40(a) and
1216.40(a)(1) of the Order to specify that
the Board will be composed of 12
peanut producer members and their
alternates rather than 11.
Board Recommendation
As required by the Order, the Board
met on April 9–10, 2013, and reviewed
the geographical distribution of peanuts.
According to data from the USDA’s
Federal State Inspection Service, for the
years 2010, 2011, and 2012, 1,357,
6,092, and 38,866 tons of peanuts were
inspected in Arkansas, respectively.
Based on this data, the 3-year average
annual peanut production for Arkansas
totals 15,438 tons per year (46,315
divided by 3) which exceeds the
requirement set in the Order of
maintaining a 3-year rolling average of
10,000 tons per year to become a major
peanut-producing State. (Data from
USDA’s National Agricultural Statistics
Service (NASS) was not available at the
time of the Board’s review because
Arkansas had not produced enough
peanuts annually to be recorded. NASS
plans to record peanut production for
Arkansas in the near future.)
Based on Federal State Inspection
Service data, the Board voted, with one
member opposed, to add Arkansas as a
primary peanut-producing State under
Final Regulatory Flexibility Act
Analysis
In accordance with the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601–
612), AMS is required to examine the
impact of this rule on small entities.
Accordingly, AMS has considered the
economic impact of this action on small
entities.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened. The Small
Business Administration (SBA) defines
small agricultural producers as those
having annual receipts of no more than
$750,000 and small agricultural service
firms (handlers) as those having annual
receipts of no more than $7.0 million
(13 CFR § 121.201).
According to the Board, there were
approximately 9,208 producers and 29
handlers of peanuts who were subject to
the program in 2012.
Most producers would be classified as
small businesses under the criteria
established by the SBA. USDA’s NASS
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Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations
reports that the farm value of the
peanuts produced in the top 10 States
in the years 2010, 2011, and 2012 was
$939 million, $1.169 billion, and $2.309
billion, respectively; the 3-year average
crop value was $1.472 billion. With a
2012 crop value of $2.309 billion,
average peanut sales per producer were
approximately $251,000. With a 2010–
2012 average crop value of $1.472
billion, average peanut sales per
producer was approximately $160,000.
The average peanut crop value per
handler for 2010–2012 ranged from
about $32 million to $80 million. This
is many times larger than the $7 million
SBA threshold and is thus an indication
that most of the handlers would not be
classified as small businesses.
The quantity of U.S. peanut
production from the 10 major peanutproducing States for 2010, 2011, and
2012 was 4.157 billion pounds, 3.659
billion pounds, and 6.741 billion
pounds, respectively; the 3-year average
crop quantity was 4.852 billion pounds.
NASS reports that Georgia was the
largest producer (48 percent of the 3year average quantity), followed by
Alabama (13 percent), Florida (12
percent), Texas (9 percent), North
Carolina (7 percent), South Carolina (6
percent), Mississippi (2 percent),
Virginia (1 percent), Oklahoma (1
percent) and New Mexico (less than 1
percent). According to the 2007 Census
of Agriculture, small amounts of
peanuts were also grown in six other
States.
If the number of peanut producers
(9,208) is divided into the total U.S.
production for 2012 (6.741 billion), the
resulting average peanut production per
producer is approximately 732,000
pounds. If divided by the 3-year average
production for 2010–2012 (4.852
billion), the resulting average is
approximately 527,000 pounds per
producer.
This rule amends sections 1216.15
and 1216.21 of the Order to classify the
State of Arkansas as a primary peanutproducing State. The Order is
administered by the Board with
oversight by USDA. This rule also
amends section 1216.40(a)(1) to add a
seat on the Board for the State of
Arkansas. Under the Order, primary
peanut-producing States must maintain
a 3-year average production of at least
10,000 tons of peanuts. Arkansas’s
peanut production meets this
requirement. Primary peanut-producing
States also have a seat on the Board.
This action will ensure that the Board’s
representation reflects changes in the
geographical distribution of the
production of peanuts covered under
the Order. This action is authorized
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under section 1216.40(b) of the Order
and Section 515(b)(3) of the 1996 Act.
Regarding the economic impact of this
rule on affected entities, this action
imposes no costs on producers and
handlers. This rule includes the State of
Arkansas as a primary peanut-producing
State based on recent production data
and adds a seat on the Board for the
State of Arkansas.
With regard to alternatives, the Board
reviewed the peanut distribution for all
the minor peanut-producing States, and
determined that Arkansas was the only
current minor State that met the Order’s
requirement for a 3-year average peanut
production of at least 10,000 tons.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the background form,
which represents the information
collection and recordkeeping
requirements imposed by this rule, was
previously approved under OMB
control number 0505–0001.
Adding a producer member and
alternate member representing the State
of Arkansas for the Board means that
four additional producers will be
required to submit background forms to
USDA in order to be considered for
appointment to the Board. Four
producers will be affected because two
names must be submitted to the
Secretary for consideration for each
position on the Board (two members
and two alternates). The public
reporting burden is estimated to
increase by an average 0.5 hours per
response for each of the four producers.
This additional burden is included in
the existing information collections
approved for use under OMB control
number 0505–0001. The estimated
annual cost of providing the information
by the four producers is $66.00 or
$16.50 per producer. However, serving
on the Board is optional, and the burden
of submitting the background form will
be offset by the benefits of serving on
the Board.
As with all Federal promotion
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. Finally, 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.
In regards to outreach efforts, the
Board discussed the state of Arkansas
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peanut production level at its November
27–30, 2012, meeting. The Board
notified the major peanut-producing
States (Georgia, Alabama, Florida,
Texas, North Carolina, South Carolina,
Mississippi, Virginia, Oklahoma, and
New Mexico) of Arkansas’s production
numbers by disseminating information
through the Board’s weekly newsletter
which is titled News in a Nutshell. The
Board also sent out notification about
Arkansas’s increased production
numbers to the peanut industry through
its Peanut Quarterly newsletter. In
addition, Arkansas’s increased
production numbers in the year 2012 to
present date were widely published in
trade publications. The Board met in
April 2013 and recommended adding
the State of Arkansas as a primary
peanut-producing State. All of the
Board’s meetings where this issue was
discussed were open to the public and
interested persons were invited to
participate and express their views.
A proposed rule concerning this
action was published in the Federal
Register on December 23, 2013 (78 FR
77368). The Board issued a press release
about the proposed rule and sent it to
the trade media, all known state peanut
organizations, and all Board members
and alternates. The Board also included
notifications about the proposal in its
newsletters and on its Web site at
nationalpeanutboard.org. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending January 22, 2014, was
provided to allow interested persons to
submit comments.
Analysis of Comments
Fourteen comments were received in
response to the proposed rule. Thirteen
comments supported the proposal and
one expressed concern about the peanut
program and taxpayer dollars.
The comments supporting the
proposal concurred that Arkansas meets
the Order’s requirement of having
maintained a three-year average
production of at least 10,000 tons of
peanuts. Further, designating Arkansas
as a primary peanut-producing State
would ensure that the Board’s
representation reflect the geographical
distribution of the production of
peanuts.
One comment expressed concern
about the peanut program and the use
of taxpayer dollars. The national peanut
promotion program is authorized under
the 1996 Act and is funded through
assessments paid by peanut producers.
It does not receive taxpayer funds. The
comment went on to suggest that the
proposed rule did not appear on
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Federal Register / Vol. 79, No. 55 / Friday, March 21, 2014 / Rules and Regulations
regulations.gov. However, that is not the
case. The proposed rule was made
available on the Web site the day it was
published in the Federal Register. As
well, comments received on the
proposed rule were posted to the Web
site following posting of the rule.
Accordingly, no changes have been
made to the rule based on this comment.
After consideration of all relevant
matters 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, is
consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register (5
U.S.C. 553) because this action should
be in effect as soon as possible so that
the changes may be implemented for the
next nomination process which begins
in the spring of 2014. Additionally, a
30-day comment period was provided
for in the proposed rule, and the
majority of comments supported the
changes.
List of Subjects in 7 CFR Part 1216
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Peanut promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, 7 CFR Part 1216 is amended
as follows:
PART 1216—PEANUT PROMOTION,
RESEARCH, AND INFORMATION
ORDER
these states maintain a 3-year average
production of at least 10,000 tons of
peanuts.
■ 4. Section 1216.40, paragraph (a)
introductory text and (a)(1) are revised
to read as follows:
§ 1216.40
Establishment and membership.
(a) Establishment of a National
Peanut Board. There is hereby
established a National Peanut Board,
hereinafter called the Board, composed
of no more than 12 peanut producers
and alternates, appointed by the
Secretary from nominations as follows:
(1) Eleven members and alternates.
One member and one alternate shall be
appointed from each primary peanutproducing state, who are producers and
whose nominations have been
submitted by certified peanut producer
organizations within a primary peanutproducing state.
*
*
*
*
*
Dated: March 6, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014–06181 Filed 3–20–14; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Parts 4, 5, 7, 10, 11, 16, 19, 24,
34, and 40
[Docket ID OCC–2014–0005]
RIN 1557–AD76
■
1. The authority citation for 7 CFR
part 1216 continues to read as follows:
Technical Amendments: Removal of
Rules Transferred to the Consumer
Financial Protection Bureau; OCC
Address Change
Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401.
AGENCY:
2. Section 1216.15 is revised to read
as follows:
Office of the Comptroller of the
Currency, Treasury.
ACTION: Final rule.
§ 1216.15
SUMMARY:
■
Minor peanut-producing states.
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Minor peanut-producing states means
all peanut-producing states with the
exception of Alabama, Arkansas,
Florida, Georgia, Mississippi, New
Mexico, North Carolina, Oklahoma,
South Carolina, Texas, and Virginia.
■ 3. Section 1216.21 is revised to read
as follows:
§ 1216.21
states.
Primary peanut-producing
Primary peanut-producing states
means Alabama, Arkansas, Florida,
Georgia, Mississippi, New Mexico,
North Carolina, Oklahoma, South
Carolina, Texas, and Virginia, Provided,
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The Office of the Comptroller
of the Currency (OCC) is removing
regulations concerning registration of
mortgage loan originators, and
regulations relating to privacy of
consumer financial information.
Rulemaking authority for these rules
transferred to the Consumer Financial
Protection Bureau on July 21, 2011
pursuant to Title X of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act, and these OCC rules are
therefore no longer operative. The OCC
also is amending its regulations to
update its address to reflect its move to
a new headquarters building, to update
the address of its Freedom of
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15639
Information Act web portal, and to
update its Web site address.
DATES: Effective March 21, 2014.
FOR FURTHER INFORMATION CONTACT: For
additional information, contact Heidi
Thomas, Special Counsel, or Stuart
Feldstein, Director, Legislative and
Regulatory Activities Division, 202–
649–5490; Office of the Comptroller of
the Currency, Washington, DC 20219.
SUPPLEMENTARY INFORMATION:
I. Description of Rule
This final rule makes a number of
technical amendments to the OCC’s
rules, as described below.
Transfer of Rules to the Consumer
Financial Protection Bureau
The Dodd-Frank Wall Street Reform
and Consumer Protection Act 1 (DoddFrank Act) transferred to the Consumer
Financial Protection Bureau (CFPB)
Federal rulemaking authority for the
Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (SAFE
Act) 2 and the financial information
privacy provisions in Title V of the
Gramm-Leach-Bliley Act (GLBA).3 The
Office of the Comptroller of the
Currency previously issued rules
implementing these laws for national
banks, Federal branches and agencies of
foreign banks, and their operating
subsidiaries (collectively, national
banks) at 12 CFR part 34, subpart F
(rules for national banks governing the
registration of residential mortgage loan
originators) and 12 CFR part 40 (privacy
of customer financial information),
respectively. This transfer of rulemaking
authority to the CFPB occurred on July
21, 2011, and the CFPB has since
reissued these rules as CFPB rules.4
National banks now must comply with
these rules as reissued by the CFPB and
not as previously promulgated and
published by the OCC, rendering part
34, subpart F, and part 40 no longer
operative. Accordingly, the OCC is
removing these rules from the Code of
Federal Regulations.5
OCC Headquarters Address Change
In May 2013, the OCC completed its
move to a new headquarters building in
1 Public
Law 111–203, 124 Stat. 1376 (2010).
U.S.C. 5101 et seq. See Dodd-Frank Act,
sections 1002(12)(N) and 1022 (12 U.S.C.
5481(12)(N) and 5512).
3 In general, sections 502 through 509 of GLBA
(15 U.S.C. 6802 through 6809). See Dodd-Frank Act
sections 1002(12)(J) and 1022 (12 U.S.C. 5481(12)(J)
and 5512).
4 See 12 CFR parts 1007 and 1016.
5 We note that the Dodd-Frank Act also
transferred rulemaking authority for certain
provisions of the Fair Credit Reporting Act to the
CFPB. The OCC is addressing this transfer through
a separate rulemaking.
2 12
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]]>Agencies
[Federal Register Volume 79, Number 55 (Friday, March 21, 2014)]
[Rules and Regulations]
[Pages 15636-15639]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06181]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1216
[Document Number AMS-FV-13-0042]
Peanut Promotion, Research, and Information Order; Amendment to
Primary Peanut-Producing States and Adjustment of Membership
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule adds the State of Arkansas as a primary peanut-
producing State under the Peanut Promotion, Research, and Information
Order (Order). The Order is administered by the National Peanut Board
(Board) with oversight by the U.S. Department of Agriculture (USDA).
This rule also adds a seat on the Board for the State of Arkansas.
Under the Order, primary peanut-producing States must maintain a 3-year
average production of at least 10,000 tons of peanuts. Arkansas's
peanut production meets this requirement. Primary peanut-producing
States also have a seat on the Board. This action was recommended by
the Board and ensures that the Board's representation reflects changes
in the geographical distribution of the production of peanuts.
DATES: Effective: March 24, 2014.
FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist,
Promotion and Economics Division, Fruit and Vegetable Program, AMS,
USDA, Stop 0244, 1400 Independence Avenue SW., Room 1406-S, Washington,
DC 20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; or
electronic mail: Jeanette.Palmer@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under the Order (7 CFR
part 1216). The Order is authorized under the Commodity Promotion,
Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action has been designated as a ``non-significant regulatory
action'' under section 3(f) of Executive Order 12866. Accordingly, the
Office of Management and Budget (OMB) has waived the review process.
Executive Order 13175
This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this regulation will not
have substantial and direct effects on Tribal governments and will not
have significant Tribal implications.
[[Page 15637]]
Executive Order 12988
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the 1996 Act provides that it shall not affect or preempt any
other Federal or State law authorizing promotion or research relating
to an agricultural commodity.
Under section 519 of the 1996 Act, a person subject to an order may
file a written petition with USDA stating that an order, any provision
of an order, or any obligation imposed in connection with an order, is
not established in accordance with the law, and request a modification
of an order or an exemption from an order. Any petition filed
challenging an order, any provision of an order, or any obligation
imposed in connection with an order, shall be filed within two years
after the effective date of an order, provision, or obligation subject
to challenge in the petition. The petitioner will have the opportunity
for a hearing on the petition. Thereafter, USDA will issue a ruling on
the petition. The 1996 Act provides that the district court of the
United States for any district in which the petitioner resides or
conducts business shall have the jurisdiction to review a final ruling
on the petition, if the petitioner files a complaint for that purpose
not later than 20 days after the date of the entry of USDA's final
ruling.
Background
This rule adds the State of Arkansas as a primary peanut-producing
State under the Order. The Order is administered by the Board with
oversight by USDA. This rule also adds a seat on the Board for the
State of Arkansas. Under the Order, primary peanut-producing States
must maintain a 3-year average production of at least 10,000 tons of
peanuts. Arkansas's peanut production meets this requirement. Primary
peanut-producing States also have a seat on the Board. This action
ensures that the Board's representation reflects changes in the
geographical distribution of the production of peanuts covered under
the Order.
The Order became effective on July 30, 1999. Under the Order, the
Board administers a nationally-coordinated program of promotion,
research, and information designed to strengthen the position of
peanuts in the market place and to develop, maintain, and expand the
demand for peanuts in the United States. Under the program, all peanut
producers pay an assessment of one percent of the total value of all
farmers' stock peanuts. The assessments are remitted to the Board by
handlers and, for peanuts under loan, by the Commodity Credit
Corporation.
The Order distinguishes between the terms ``minor peanut-producing
states'' and ``primary peanut-producing states'' for purposes of Board
representation and voting at meetings. Section 1216.21 defines primary
peanut-producing States as Alabama, Florida, Georgia, Mississippi, New
Mexico, North Carolina, Oklahoma, South Carolina, Texas and Virginia.
These States must maintain a 3-year average production of at least
10,000 tons of peanuts. All other peanut-producing States are defined
as minor peanut-producing States, pursuant to section 1217.15.
As specified in section 1216.40(a), the Board is composed of 11
producer members and their alternates: One member and alternate from
each primary peanut-producing State, and one at-large member and
alternate collectively from the minor peanut-producing States. The
members and alternates are nominated by producers or producer groups.
Pursuant to section 1216.40(b) of the Order, at least once in each
five-year period, the Board must review the geographical distribution
of peanuts in the United States and make a recommendation to the
Secretary of Agriculture (Secretary) to continue without change or
whether changes should be made in the number of representatives on the
Board to reflect changes in the geographical distribution of the
production of peanuts.
Board Recommendation
As required by the Order, the Board met on April 9-10, 2013, and
reviewed the geographical distribution of peanuts. According to data
from the USDA's Federal State Inspection Service, for the years 2010,
2011, and 2012, 1,357, 6,092, and 38,866 tons of peanuts were inspected
in Arkansas, respectively. Based on this data, the 3-year average
annual peanut production for Arkansas totals 15,438 tons per year
(46,315 divided by 3) which exceeds the requirement set in the Order of
maintaining a 3-year rolling average of 10,000 tons per year to become
a major peanut-producing State. (Data from USDA's National Agricultural
Statistics Service (NASS) was not available at the time of the Board's
review because Arkansas had not produced enough peanuts annually to be
recorded. NASS plans to record peanut production for Arkansas in the
near future.)
Based on Federal State Inspection Service data, the Board voted,
with one member opposed, to add Arkansas as a primary peanut-producing
State under the Order. The member opposed expressed concern that
Arkansas did not produce 10,000 tons per year for three consecutive
years, similar to when the Order was amended to add Mississippi as a
primary peanut-producing State (73 FR 39214; July 9, 2008). However,
the Order does not require that a State produce 10,000 tons per year
for three consecutive years to be a primary peanut-producing State. The
Order provides that a primary peanut-producing State shall maintain a
three-year average production of at least 10,000 tons of peanuts
(section 1216.21)
In addition, USDA's Federal State Inspection Service reports that
22,947 tons of peanuts were inspected in 2013. This indicates that
Arkansas peanut production has maintained its production levels above
10,000 tons.
This action also adds a producer member and alternate on the Board
from the State of Arkansas. Pursuant to section 1216.40(a), primary
peanut-producing states have a seat on the Board.
These changes will help ensure that the Board's representation
reflect changes in the geographical distribution of the production of
peanuts. Accordingly, this rule amends sections 1216.15 and 1216.21 of
the Order to classify the State of Arkansas as a primary peanut-
producing State. This rule also revises sections 1216.40(a) and
1216.40(a)(1) of the Order to specify that the Board will be composed
of 12 peanut producer members and their alternates rather than 11.
Final Regulatory Flexibility Act Analysis
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of this rule on small
entities. Accordingly, AMS has considered the economic impact of this
action on small entities.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines small agricultural producers as those having annual receipts of
no more than $750,000 and small agricultural service firms (handlers)
as those having annual receipts of no more than $7.0 million (13 CFR
Sec. 121.201).
According to the Board, there were approximately 9,208 producers
and 29 handlers of peanuts who were subject to the program in 2012.
Most producers would be classified as small businesses under the
criteria established by the SBA. USDA's NASS
[[Page 15638]]
reports that the farm value of the peanuts produced in the top 10
States in the years 2010, 2011, and 2012 was $939 million, $1.169
billion, and $2.309 billion, respectively; the 3-year average crop
value was $1.472 billion. With a 2012 crop value of $2.309 billion,
average peanut sales per producer were approximately $251,000. With a
2010-2012 average crop value of $1.472 billion, average peanut sales
per producer was approximately $160,000.
The average peanut crop value per handler for 2010-2012 ranged from
about $32 million to $80 million. This is many times larger than the $7
million SBA threshold and is thus an indication that most of the
handlers would not be classified as small businesses.
The quantity of U.S. peanut production from the 10 major peanut-
producing States for 2010, 2011, and 2012 was 4.157 billion pounds,
3.659 billion pounds, and 6.741 billion pounds, respectively; the 3-
year average crop quantity was 4.852 billion pounds. NASS reports that
Georgia was the largest producer (48 percent of the 3-year average
quantity), followed by Alabama (13 percent), Florida (12 percent),
Texas (9 percent), North Carolina (7 percent), South Carolina (6
percent), Mississippi (2 percent), Virginia (1 percent), Oklahoma (1
percent) and New Mexico (less than 1 percent). According to the 2007
Census of Agriculture, small amounts of peanuts were also grown in six
other States.
If the number of peanut producers (9,208) is divided into the total
U.S. production for 2012 (6.741 billion), the resulting average peanut
production per producer is approximately 732,000 pounds. If divided by
the 3-year average production for 2010-2012 (4.852 billion), the
resulting average is approximately 527,000 pounds per producer.
This rule amends sections 1216.15 and 1216.21 of the Order to
classify the State of Arkansas as a primary peanut-producing State. The
Order is administered by the Board with oversight by USDA. This rule
also amends section 1216.40(a)(1) to add a seat on the Board for the
State of Arkansas. Under the Order, primary peanut-producing States
must maintain a 3-year average production of at least 10,000 tons of
peanuts. Arkansas's peanut production meets this requirement. Primary
peanut-producing States also have a seat on the Board. This action will
ensure that the Board's representation reflects changes in the
geographical distribution of the production of peanuts covered under
the Order. This action is authorized under section 1216.40(b) of the
Order and Section 515(b)(3) of the 1996 Act.
Regarding the economic impact of this rule on affected entities,
this action imposes no costs on producers and handlers. This rule
includes the State of Arkansas as a primary peanut-producing State
based on recent production data and adds a seat on the Board for the
State of Arkansas.
With regard to alternatives, the Board reviewed the peanut
distribution for all the minor peanut-producing States, and determined
that Arkansas was the only current minor State that met the Order's
requirement for a 3-year average peanut production of at least 10,000
tons.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the background form, which represents the information
collection and recordkeeping requirements imposed by this rule, was
previously approved under OMB control number 0505-0001.
Adding a producer member and alternate member representing the
State of Arkansas for the Board means that four additional producers
will be required to submit background forms to USDA in order to be
considered for appointment to the Board. Four producers will be
affected because two names must be submitted to the Secretary for
consideration for each position on the Board (two members and two
alternates). The public reporting burden is estimated to increase by an
average 0.5 hours per response for each of the four producers. This
additional burden is included in the existing information collections
approved for use under OMB control number 0505-0001. The estimated
annual cost of providing the information by the four producers is
$66.00 or $16.50 per producer. However, serving on the Board is
optional, and the burden of submitting the background form will be
offset by the benefits of serving on the Board.
As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. Finally, 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.
In regards to outreach efforts, the Board discussed the state of
Arkansas peanut production level at its November 27-30, 2012, meeting.
The Board notified the major peanut-producing States (Georgia, Alabama,
Florida, Texas, North Carolina, South Carolina, Mississippi, Virginia,
Oklahoma, and New Mexico) of Arkansas's production numbers by
disseminating information through the Board's weekly newsletter which
is titled News in a Nutshell. The Board also sent out notification
about Arkansas's increased production numbers to the peanut industry
through its Peanut Quarterly newsletter. In addition, Arkansas's
increased production numbers in the year 2012 to present date were
widely published in trade publications. The Board met in April 2013 and
recommended adding the State of Arkansas as a primary peanut-producing
State. All of the Board's meetings where this issue was discussed were
open to the public and interested persons were invited to participate
and express their views.
A proposed rule concerning this action was published in the Federal
Register on December 23, 2013 (78 FR 77368). The Board issued a press
release about the proposed rule and sent it to the trade media, all
known state peanut organizations, and all Board members and alternates.
The Board also included notifications about the proposal in its
newsletters and on its Web site at nationalpeanutboard.org. Finally,
the proposal was made available through the Internet by USDA and the
Office of the Federal Register. A 30-day comment period ending January
22, 2014, was provided to allow interested persons to submit comments.
Analysis of Comments
Fourteen comments were received in response to the proposed rule.
Thirteen comments supported the proposal and one expressed concern
about the peanut program and taxpayer dollars.
The comments supporting the proposal concurred that Arkansas meets
the Order's requirement of having maintained a three-year average
production of at least 10,000 tons of peanuts. Further, designating
Arkansas as a primary peanut-producing State would ensure that the
Board's representation reflect the geographical distribution of the
production of peanuts.
One comment expressed concern about the peanut program and the use
of taxpayer dollars. The national peanut promotion program is
authorized under the 1996 Act and is funded through assessments paid by
peanut producers. It does not receive taxpayer funds. The comment went
on to suggest that the proposed rule did not appear on
[[Page 15639]]
regulations.gov. However, that is not the case. The proposed rule was
made available on the Web site the day it was published in the Federal
Register. As well, comments received on the proposed rule were posted
to the Web site following posting of the rule. Accordingly, no changes
have been made to the rule based on this comment.
After consideration of all relevant matters 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, is consistent with and will effectuate the
purposes of the 1996 Act.
It is further found that good cause exists for not postponing the
effective date of this rule until 30 days after publication in the
Federal Register (5 U.S.C. 553) because this action should be in effect
as soon as possible so that the changes may be implemented for the next
nomination process which begins in the spring of 2014. Additionally, a
30-day comment period was provided for in the proposed rule, and the
majority of comments supported the changes.
List of Subjects in 7 CFR Part 1216
Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Peanut promotion, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR Part 1216 is
amended as follows:
PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1216 continues to read as
follows:
Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
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2. Section 1216.15 is revised to read as follows:
Sec. 1216.15 Minor peanut-producing states.
Minor peanut-producing states means all peanut-producing states
with the exception of Alabama, Arkansas, Florida, Georgia, Mississippi,
New Mexico, North Carolina, Oklahoma, South Carolina, Texas, and
Virginia.
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3. Section 1216.21 is revised to read as follows:
Sec. 1216.21 Primary peanut-producing states.
Primary peanut-producing states means Alabama, Arkansas, Florida,
Georgia, Mississippi, New Mexico, North Carolina, Oklahoma, South
Carolina, Texas, and Virginia, Provided, these states maintain a 3-year
average production of at least 10,000 tons of peanuts.
0
4. Section 1216.40, paragraph (a) introductory text and (a)(1) are
revised to read as follows:
Sec. 1216.40 Establishment and membership.
(a) Establishment of a National Peanut Board. There is hereby
established a National Peanut Board, hereinafter called the Board,
composed of no more than 12 peanut producers and alternates, appointed
by the Secretary from nominations as follows:
(1) Eleven members and alternates. One member and one alternate
shall be appointed from each primary peanut-producing state, who are
producers and whose nominations have been submitted by certified peanut
producer organizations within a primary peanut-producing state.
* * * * *
Dated: March 6, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014-06181 Filed 3-20-14; 8:45 am]
BILLING CODE 3410-02-P
