Pecans Grown in the States of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; Establishment of Reporting Requirements and New Information Collection, 57166-57172 [2017-25738]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Proposed Rules]
[Pages 57166-57172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25738]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 986

[Doc. No. AMS-SC-17-0039; SC17-986-3 PR]


Pecans Grown in the States of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; 
Establishment of Reporting Requirements and New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule invites comments on the establishment of 
reporting requirements under the Federal marketing order for pecans 
(Order). These reporting requirements would enable collection of 
information from handlers on: Pecans received; pecans purchased outside 
the United States; shipments and inventory of pecans; pecans exported 
by country of destination; and pecans exported for shelling and 
returned to the United States. This information would be used to 
provide important statistical reports to the industry, meet 
requirements under the Order, and to help guide future marketing 
efforts. This proposal also announces the Agricultural Marketing 
Service's intention to request approval from the Office of Management 
and Budget of a new information collection.

DATES: Comments must be received by February 2, 2018. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by February 2, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. All 
comments should reference the

[[Page 57167]]

document number and the date and page number of this issue of the 
Federal Register and will be made available for public inspection in 
the Office of the Docket Clerk during regular business hours, or can be 
viewed at: https://www.regulations.gov. All comments submitted in 
response to this proposal 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: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: Jennie.Varela@ams.usda.gov or 
Christian.Nissen@ams.usda.gov.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202)720-8938, or Email: Richard.Lower@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j).This proposal is issued under 
Marketing Agreement and Order No. 986, (7 CFR part 986), regulating the 
handling of pecans grown in the states of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas, 
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 American Pecan 
Council (Council) locally administers the Order and is comprised of 
growers and handlers of pecans operating within the production area and 
one public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) has exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017 titled `Reducing Regulation and Controlling Regulatory 
Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This proposed rule is not intended to have 
retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an Order may file with USDA a petition 
stating that the Order, any provision of the Order, or any obligation 
imposed in connection with the Order is not in accordance with law and 
request a modification of the Order or to be exempted therefrom. A 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would establish reporting requirements under the 
Order. This proposed action would require all pecan handlers to submit 
to the Council reports on pecans received, shipped, held in inventory, 
exported for sale or shelling, and purchased from outside the United 
States. This information would be used by the Council to provide 
statistical reports to the industry, meet requirements under the Order, 
and help guide future marketing efforts. This proposal was unanimously 
recommended by the Council at its April 17, 2017, meeting.
    Section 2(4) of the Act specifies that one of its stated policies 
is to establish and maintain orderly marketing conditions for certain 
agricultural commodities that will provide, in the interests of 
producers and consumers, an orderly flow of the supply of such 
commodities to market to avoid unreasonable fluctuations in supply and 
prices. Section 8(d)(1) of the Act specifies that the Secretary may 
require all handlers subject to a marketing order to provide USDA with 
such information as is necessary for it to ascertain and determine the 
degree to which the agreement has been carried out or effectuated the 
declared policy of the Act.
    Sections 986.75, 986.76, and 986.77 of the Order provide authority 
to the Council to require handlers to submit reports of inventory, 
merchantable pecans handled, and pecans received by handlers, 
respectively, on such dates as the Council may prescribe. Section 
986.78 further provides, with the approval of the Secretary, authority 
for the Council to collect other reports and information from handlers 
needed to perform its duties. This proposed rule would use these 
authorities to establish new Sec. Sec.  986.177 and 986.178 under the 
administrative provisions of the Order. These new sections would 
require handlers of pecans to report to the Council on a monthly basis: 
Pecans received, shipped, held in inventory, exported for sale or 
shelling, and purchased from outside the United States, using five 
specific Council forms.
    At its November 16, 2016, meeting, the first meeting following the 
promulgation of the Order, the Council discussed its initial budget, 
assessment rates, and necessary reporting requirements to establish a 
program that is efficient and responsive to industry needs. During 
these discussions, the Council appointed a Statistics and Reporting 
Committee (Committee) to develop reporting requirements.
    Members of the Committee discussed the reporting needs of the 
industry, reviewed examples of reporting forms from other marketing 
orders, and met and worked with the staff of another marketing order in 
developing the proposed reporting requirements. The Committee also 
worked with USDA to ensure the recommended information collection would 
provide the information necessary to facilitate the administration of 
the Order.
    At its February 23, 2017, meeting, the Council reviewed drafts of 
seven reporting forms as developed and recommended by the Committee. 
The Council expressed its interest in having as much electronic 
reporting as possible, but recognized that many handlers may prefer a 
paper submission. The Council also considered the timing of when forms 
would be due and submission dates that would work for all parts of the 
industry. After a thorough review and some modifications, seven forms 
were approved by the Council.
    At a meeting on April 17, 2017, the Council revisited the 
recommended reporting requirements and the accompanying forms. 
Acknowledging that the industry was more than halfway through the 
fiscal year at that time, the Council recommended dividing the 
reporting requirements into the five forms needed beginning with the 
2017-

[[Page 57168]]

2018 fiscal year and the two forms needed beginning with the 2016-2017 
fiscal year. The two forms required for the 2016-2017 fiscal year are 
being considered in a separate rulemaking action.
    This proposed rule would add five new reporting requirements and 
five new forms to the administrative provisions under the Order by 
adding Sec. Sec.  986.177 and 986.178. Detailed information on the 
reporting burden that would be created by these new forms is discussed 
later in this document.
    During the formal rulemaking hearing to promulgate the Order, it 
was stated that the data collection component was one of the most 
important aspects of the Order. Concerns were also expressed regarding 
the accuracy and availability of industry data, and the impact those 
have on making good business decisions.
    Currently, most available reports on domestic pecan production are 
issued annually and often long after the marketing year has been 
completed. Additionally, the reporting of this information is currently 
voluntary, so not all handlers are reporting, which impacts the 
accuracy of the available information. Some aggregate import and export 
data are available, but this information too is usually available on an 
annual basis, or reported several months after the shipments have been 
made. Additionally, some domestic production is shipped outside of the 
country for shelling and then returned to the United States for sale or 
further processing. There is concern this volume is not being properly 
accounted for, and is negatively impacting the accuracy of the industry 
information currently available.
    The Council agreed these reporting requirements would be necessary 
to develop accurate reports for the industry regarding pecans being 
produced and handled in the United States, and recognized the value to 
the industry of such reports. Having accurate and timely information on 
the total supply of pecans moving into and out of the country would 
also assist the industry in managing available supply and in making 
marketing decisions. Further, collecting this information monthly would 
allow the Council to provide key data regarding total supply and 
inventory to the industry in a more timely fashion throughout the 
season.
    The Council also recognized that Sec.  986.65 of the Order requires 
the Council to provide a report and recommendation to the Secretary on 
the Council's proposed marketing policy for the next fiscal year. The 
report is required to include, in part, an estimate of production; 
improved, native, and substandard pecans; handler inventory; and trade 
supply, taking into consideration imported pecans. In addition to 
providing important information for industry reports, the reporting 
requirements covered in this proposed action would provide the 
information needed to develop the marketing policy.
    Two specific monthly reporting requirements would be added to the 
administrative provisions under the Order in a new Sec.  986.177, a 
summary report of domestic pecans received, and a report of pecans 
purchased outside the United States. The summary report of domestic 
pecans received would include information on the handler submitting the 
form, the month covered by the report, the total weight and type of 
inshell pecans received, and the weight by variety of improved pecans 
received. In addition, the form would also include information 
regarding total assessments owed and total pounds reported to date.
    The information on this form would provide the Council with the 
volume of pecans received by handlers each month throughout the season. 
This information would be used to track the available supply of pecans 
each month, and the overall crop as it is delivered to handlers. The 
Council would then be able to use the information to develop its own 
reports that would provide the industry with an overview of market 
information for the predominant varieties, including volume by variety, 
which could assist in the development of marketing strategies.
    The Council also intends to use this form to facilitate the 
collection of assessments on a monthly basis throughout the season. 
Using the form, handlers would be able to calculate their assessments 
due based on the pecans received as listed on the report. Handlers 
would be required to pay to the Council the assessments owed on the 
pecans received by the due date of the summary report.
    In its discussion of the report of pecans purchased outside the 
United States, the Council agreed it would be important to have 
information regarding the volume of pecans being imported by production 
area handlers. The monthly report of pecans purchased outside the 
United States would include the name of the handler importing pecans, 
the month covered by the report, the date imported, country of origin, 
volume, and variety of pecans imported.
    As production of pecans abroad has increased, there has been an 
increase in pecans imported into the United States. One Council member 
stated that the domestic industry is currently shelling and processing 
as much as 70 to 75 percent of Mexican-grown pecans, and that Mexican 
pecans now account for nearly 50 percent of sales in the United States. 
Consequently, having information regarding the volume of imported 
pecans is essential when calculating available supply. Collecting this 
information would greatly improve the accuracy of reports to the 
industry as it would include information regarding both domestic and 
imported pecans.
    One of the Council's main goals in developing these reporting 
requirements is to deliver to the industry accurate reports regarding 
the marketplace and supply of pecans to assist the industry in making 
its marketing decisions throughout the year. The Council believes 
having accurate information regarding imported pecans is an essential 
part of reaching this goal. Further, collecting this information would 
provide the industry with valuable data regarding the timing and volume 
of pecans imported into the United States. Members also agreed having 
this information would assist the Council in developing its marketing 
policy as required under the Order.
    Three additional reporting requirements would be added to the 
administrative provisions in a new Sec.  986.178: Reports of shipments 
and inventory, exports by country of destination, and inshell pecans 
exported to Mexico for shelling. The report of shipments and inventory 
would include information on the handler submitting the form, the month 
covered by the report, shipments of shelled and inshell pecans, current 
inventory, and pecans in inventory already committed for shipment.
    The Council believes this form would provide beneficial information 
regarding shipments completed and volume in inventory. While there is 
currently some limited information available regarding pecans in cold 
storage, this information does not delineate between available 
inventory and inventory that is already committed for shipment. By 
collecting this information from handlers, this report, in conjunction 
with the data regarding pecans received, would allow the Council to 
provide the industry with inventory reports that are more accurate, and 
that provide a clearer picture of available supply. This data on the 
available volume of pecans would provide the industry with the 
information needed to make better marketing decisions.
    When discussing a reporting requirement for exported pecans, the

[[Page 57169]]

Council expressed the industry's need for more information concerning 
international trade markets and export trends. The report of exports by 
country of destination would include information on the handler 
submitting the report, the month of the report, and the weight of all 
shipments of pecans, inshell or shelled, by classification, and by 
country of destination.
    The Council estimated that prior to 2005, around 10 percent of 
domestic production was being exported. Since then, exports have grown 
considerably and now account for between 40 and 50 percent of 
production. The recommended form would be used to generate reports 
throughout the season providing industry members with information on 
where product is being sold and in what volume. Further, the Council 
could use this information to determine the effectiveness of any 
international promotional efforts and to consider opportunities for 
promotion and market expansion.
    Some of the pecans shipped outside the United States are exported 
just for shelling and then returned to the United States for further 
use. The Council recommended an additional reporting form to capture 
this information. Specifically, the Council recommended collecting 
information on pecans exported to Mexico for shelling and then returned 
to the United States. The Council decided to limit the reporting to 
Mexico since the vast majority of pecans exported for this purpose are 
being sent to Mexico because of its proximity and cost efficiencies. 
The report of inshell pecans exported to Mexico for shelling would 
include information on the handler submitting the report, the month 
covered by the report, dates of shipments, the total weight of inshell 
pecans shipped for shelling, and the weight of shelled pecans returned 
to the United States.
    In discussing this reporting requirement, the Council recognized 
that in addition to shelling some pecans from the production area, 
Mexico also exports pecans to the United States. This makes it 
difficult to determine how much of the import volume reported from 
Mexico is represented by domestic product after shelling. It was 
expressed that without this report, the accuracy of data regarding both 
reported exported and imported product could be compromised. Pecans 
exported for shelling could be counted as exports, and then counted 
again as imports when returned to the United States. This reporting 
requirement would help reduce the possibility of double counting of 
these pecans, and would help improve the accuracy of the overall 
information on supply.
    The Council selected the tenth day of the month following the month 
of the activity as the due date for all five reports. Should the tenth 
day of the month fall on a weekend or holiday, reports would be due by 
the first business day following the tenth day of the month. The five 
monthly reports would be used during the 2017-2018 and subsequent 
seasons.
    This proposed action would require pecan handlers to provide the 
Council with monthly reports on pecans received, shipped, held in 
inventory, exported for sale or shelling, and purchased from outside 
the United States. By establishing these reporting requirements, the 
Council would be able to gather and disseminate this information in 
accurate market reports. Further, this information would be used to 
create a marketing policy each year as required under the Order.

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 proposed 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 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and 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 approximately 2,500 growers of pecans in the production 
area and approximately 250 handlers subject to regulation under the 
pecan marketing Order. Small agricultural growers are defined by the 
Small Business Administration as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to information from the National Agricultural Statistics 
Service (NASS), the average grower price for pecans during the 2015-
2016 season was $2.20 per pound and 254 million pounds were utilized. 
The value for pecans that year totaled $558.8 million ($2.20 per pound 
multiplied by 254 million pounds). Taking the total value of production 
for pecans and dividing it by the total number of pecan growers 
provides an average return per grower of $223,520. Using the average 
price and utilization information, and assuming a normal bell-curve 
distribution of receipts among growers, the majority of growers receive 
less than $750,000 annually.
    Evidence presented at the formal rulemaking hearing indicates an 
average handler margin of $0.58 per pound. Adding this margin to the 
average grower price of $2.20 per pound of inshell pecans results in an 
estimated handler price of $2.78 per pound. With a total 2015 
production of 254 million pounds, ($2.78 per pound multiplied by 254 
million pounds) the total value of production in 2015 was $706.12 
million. Taking the total value of production for pecans and dividing 
it by the total number of pecan handlers provides an average return per 
handler of $2,824,480. Using this estimated price, the utilization 
volume, number of handlers, and assuming a normal bell-curve 
distribution of receipts among handlers, the majority of handlers have 
annual receipts of less than $7,500,000. Thus, the majority (a 
substantial number) of growers and handlers of pecans grown in the 
states of Alabama, Arkansas, Arizona, California, Florida, Georgia, 
Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, 
Oklahoma, South Carolina, and Texas may be classified as small 
entities.
    This proposed rule would establish reporting requirements under the 
Order. This proposed action would require pecan handlers to provide the 
Council with reports of pecans received, shipped, held in inventory, 
exported for sale or shelling, and purchased from outside the United 
States. The Council would use this information to provide important 
statistical reports to the industry, to meet requirements under the 
Order, and to help guide future marketing efforts. This rule would 
establish new Sec. Sec.  986.177 and 986.178 under the administrative 
provisions of the Order. The authority for this proposed action is 
provided for in Section 8(d)(1) of the Act and Sec. Sec.  986.75, 
986.76, 986.77, and 986.78 of the Order.
    Requiring monthly reports of pecans received, shipped, held in 
inventory, exported for sale or shelling, and purchased from outside 
the United States would impose an increase in the reporting burden on 
all pecan handlers. However, this data is already recorded and 
maintained by handlers as a part of their daily business. Handlers, 
regardless of size, should be able to readily access this information. 
Consequently, any additional costs associated with this change would be

[[Page 57170]]

minimal (not significant) and apply equally to all handlers.
    This proposed action should also help the entire industry by 
providing comprehensive data on pecans received, shipped, held in 
inventory, exported for sale or shelling, and purchased from outside 
the United States. Collection of this data was one of the industry's 
goals in promulgating the Order as there is no other source for this 
type of data. This information would provide accurate information 
regarding available inventory, help with marketing and planning for the 
industry, provide important information for the collection of 
assessments, and assist with preparing the annual marketing policy 
required by the Order. The benefits of this proposed rule are expected 
to be equally available to all pecan growers and handlers, regardless 
of their size.
    The Council discussed other alternatives to this proposed action. 
The Council considered listing additional varieties on the summary 
report of pecans received. However, after discussion the Council 
determined a simpler version with the major commercial varieties and 
room for handlers to enter additional varieties as needed would be less 
burdensome. The Council also considered different due dates for these 
monthly reports, including a due date of the first, the third and the 
fifth day after the month of the activity. However, after some 
discussion, it was determined some handlers may have difficulty meeting 
these time frames. The 15th day of the month was also suggested, but 
Council members thought this would delay the issuance of reports, and 
negatively impact their value. Consequently, the Council agreed to set 
the due date for all five forms at the tenth of the month. The Council 
also considered the value and importance of each of the forms, and if 
all should be approved. However, the Council agreed each of the forms 
recommended provide important information for the industry and for 
administering the Order. Therefore, the alternatives were rejected.
    This proposal would establish five new reporting requirements and 
five new Council forms. Therefore, this proposed rule would impose an 
increase in the reporting burden for all handlers, which is discussed 
in the Paperwork Reduction Act section of this document.
    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. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this proposed 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.
    Further, the Council's meetings were widely publicized throughout 
the pecan industry and all interested persons were invited to attend 
the meetings and participate in Council deliberations on all issues. 
Additionally, the Council's Committee meetings held February 23, 2017, 
and April 17, 2017, were also 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 information collection impacts of 
this proposed action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 60-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments timely received will be 
considered before a final determination is made on this matter.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
chapter 35), this notice announces AMS's intent to request approval 
from OMB for a new information collection under OMB No. 0581-NEW. It 
will be merged with the forms currently approved under OMB No. 0581-
0291 ``Federal Marketing Order for Pecans.''
    Title: Pecans Grown in the States of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas; 
Marketing Order No. 986.
    OMB Number: 0581-NEW.
    Type of Request: New Collection.
    Abstract: The information requirements in this request are 
essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
pecan marketing order program.
    On April 17, 2017, the Council unanimously recommended that all 
pecan handlers subject to the Order provide the Council with a monthly 
record of pecans received. This form, titled ``Summary Report U.S. 
Pecans Received for Your Own Account,'' would be submitted directly to 
the Council by handlers by the tenth day of the month following the 
month the pecans were received. This information collection would 
gather data on the total pounds received each month by variety and on 
the related assessments due.
    The Council also recommended that all handlers subject to the Order 
submit a monthly report of product shipped, transferred, or committed. 
This form, titled ``Report of Shipments and Inventory on Hand,'' would 
be submitted directly to the Council by handlers by the tenth day of 
the month following the activity. This information collection would 
provide the Council with a monthly record of how much of the current 
crop has been shipped, is committed to be shipped or is being held in 
inventory. It would provide the volume of available inventory, which 
would be needed to make marketing decisions.
    The Council also recommended that handlers provide the Council with 
a record of exports by type and destination. This form, titled 
``Exports by Country of Destination,'' would be submitted directly to 
the Council by handlers by the tenth day of the month following the 
shipment(s). This information collection would provide the Council with 
up-to-date information on where exported pecans are being sold. This 
information would improve data collection by accounting for pecans 
moving outside the United States and is necessary for developing the 
Council's marketing policy as required by the Order.
    The Council also recommended that handlers submit a report of 
pecans exported to Mexico for the purpose of shelling and then returned 
to the United States. This form, titled ``Inshell Pecans Exported to 
Mexico for Shelling and Returned to the United States as Shelled 
Meats,'' would be submitted directly to the Council by handlers by the 
tenth day of the month following the shipment(s) out of and into the 
United States. This reporting requirement would help reduce the 
possibility of double counting of these pecans as both exported and 
imported product, and would help improve the accuracy of the overall 
information on supply.
    The Council also recommended that all handlers subject to the Order 
submit a monthly report that would capture information on the volume of 
imported

[[Page 57171]]

pecans. This form, titled ``Pecans Purchased Outside the United 
States,'' would be submitted directly to the Council by handlers by the 
tenth day of the month following the receipt of such pecans. This 
information collection would assist in quantifying the volume of 
imported pecans on the market, provide the industry with a more 
accurate estimate of total supply, and assist with the development of 
the marketing policy required under the Order.
    The information collected would only be used by authorized 
representatives of the USDA, including the AMS Specialty Crops Program 
regional and headquarters staff, and authorized employees of the 
Council. Authorized Council employees would be the primary users of the 
information, and the AMS would be the secondary users. The Council's 
staff would compile the information and utilize it to account for 
pecans received, shipped, held in inventory, exported for sale or 
shelling, and purchased from outside the United States. All proprietary 
information would be kept confidential in accordance with the Act and 
the Order.
    The proposed request for new information collection under the Order 
is as follows:

Summary Report--U.S. Pecans Received for Your Own Account

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.33 hours per response.
    Respondents: Handlers of pecans in Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas.
    Estimated Number of Respondents: 250.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 990 hours.

Pecans Purchased Outside the United States

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.33 hours per response.
    Respondents: Handlers of pecans in Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas.
    Estimated Number of Respondents: 15.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 59.4 hours.

Report of Shipments and Inventory on Hand

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.33 hours per response.
    Respondents: Handlers of pecans in Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas.
    Estimated Number of Respondents: 250.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 990 hours.

Exports by Country of Destination

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.25 hours per response.
    Respondents: Handlers of pecans in Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas.
    Estimated Number of Respondents: 35.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 105 hours.

Inshell Pecans Exported to Mexico for Shelling and Returned to the 
United States as Shelled Meats

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to be an average of 0.5 hours per response.
    Respondents: Handlers of pecans in Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas.
    Estimated Number of Respondents: 15.
    Estimated Number of Responses per Respondent: 12.
    Estimated Total Annual Burden on Respondents: 90 hours.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology.
    Comments should reference OMB No. 0581-NEW and the Marketing Order 
for Pecans Grown in the states of Alabama, Arkansas, Arizona, 
California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, 
North Carolina, New Mexico, Oklahoma, South Carolina, and Texas, and 
should be sent to the USDA in care of the Docket Clerk at the 
previously-mentioned address or at https://www.regulations.gov.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments received will become a matter of 
public record and will be available for public inspection during 
regular business hours at the address of the Docket Clerk or at https://www.regulations.gov.
    If this proposed rule is finalized, this information collection 
will be merged with the forms currently approved under OMB No. 0581-
0291 ``Federal Marketing Order for Pecans.''

List of Subjects in 7 CFR Part 986

    Marketing agreements, Nuts, Pecans, Reporting and recordkeeping 
requirements.
    For the reasons set forth in the preamble, 7 CFR part 986 is 
proposed to be amended as follows:

PART 986--PECANS GROWN IN THE STATES OF ALABAMA, ARKANSAS, ARIZONA, 
CALIFORNIA, FLORIDA, GEORGIA, KANSAS, LOUISIANA, MISSOURI, 
MISSISSIPPI, NORTH CAROLINA, NEW MEXICO, OKLAHOMA, SOUTH CAROLINA, 
AND TEXAS

0
1. The authority citation for 7 CFR part 986 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Add Sec.  986.177 to Subpart B--Administrative Provisions to read as 
follows:


Sec.  986.177  Reports of pecans received by handlers

    (a) Summary report U.S. pecans received for your own account. 
Handlers shall submit to the Council, by the tenth day of the month, a 
summary report of inshell domestic pecans received during the preceding 
month. Should the tenth day of the month fall on a weekend or holiday, 
reports are due by the first business day following the tenth day of

[[Page 57172]]

the month. The report shall be submitted to the Council on APC Form 1 
and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight and type of inshell pecans received, and the 
weight by variety for improved pecans received during the reporting 
period;
    (4) The total weight and type of inshell pecans received, and the 
weight by variety for improved pecans received year to date; and,
    (5) Assessments due on pecans received during the reporting period 
to be paid by the due date of the report.
    (b) Pecans purchased outside the United States. Handlers shall 
submit to the Council, by the tenth day of the month, a summary report 
of shelled and inshell pecans imported during the preceding month. 
Should the tenth day of the month fall on a weekend or holiday, reports 
are due by the first business day following the tenth day of the month. 
The report shall be submitted to the Council on APC Form 6 and contain 
the following information:
    (1) The name and address of the handler;
    (1) The month covered by the report;
    (3) The date the pecans were imported;
    (4) The country of origin; and,
    (5) The total weight of shelled and inshell pecans received, and 
the weight by variety for improved pecans received.
0
3. Add Sec.  986.178 to Subpart B--Administrative Provisions to read as 
follows:


Sec.  986.178  Other reports

    (a) Report of shipments and inventory on hand. Handlers shall 
submit to the Council, by the tenth day of the month following the 
month of activity, a report of all shipments, inventory, and committed 
inventory for pecans. Should the tenth day of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the tenth day of the month. The report shall be submitted to the 
Council on APC Form 2 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received during the reporting 
period;
    (4) The weight of all shipments of pecans, inshell and shelled, and 
inter-handler transfers shipped and received in the previous month and 
year to date;
    (5) Total inventory held by handler;
    (6) All the inventory committed (pecans not shipped, but sold or 
otherwise obligated) whether for domestic sale or export; and,
    (7) The weight of all shelled or inshell pecans under contract for 
purchase from other handlers.
    (b) Exports by country of destination. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of exports. Should the tenth day of the month fall on a 
weekend or holiday, reports are due by the first business day following 
the tenth day of the month. The report shall be reported to the Council 
on APC Form 3 and contain the following information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the reporting period;
    (4) The total weight of pecans shipped for export, whether inshell, 
shelled, or substandard during the previous period and year to date; 
and,
    (5) The destination(s) of such exports.
    (c) Inshell pecans exported to Mexico for shelling and returned to 
the United States as shelled meats. Handlers shall submit to the 
Council, by the tenth day of the month following the month of shipment, 
a report of all inshell pecans exported to Mexico for shelling and 
returned to the United States as shelled pecans. Should the tenth day 
of the month fall on a weekend or holiday, reports are due by the first 
business day following the tenth day of the month. The report shall be 
submitted to the Council on APC Form 5 and contain the following 
information:
    (1) The name and address of the handler;
    (2) The month covered by the report;
    (3) The date of inshell shipment(s);
    (4) The weight of pecans exported for shelling;
    (5) The date shelled pecans returned to the United States after 
shelling;
    (6) The weight of shelled pecans returned to the United States 
after shelling; and
    (7) The total weight of inshell pecans exported to Mexico for 
shelling, and shelled pecans returned from Mexico, year to date.

    Dated: November 22, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-25738 Filed 12-1-17; 8:45 am]
 BILLING CODE 3410-02-P