Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate, 11134-11135 [2018-05144]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Rules and Regulations]
[Pages 11134-11135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05144]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Docket No. AMS-SC-17-0048; SC17-983-2 FIR]


Pistachios Grown in California, Arizona, and New Mexico; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture adopts as final, without change, 
an interim rule that implemented a recommendation from the 
Administrative Committee for Pistachios (Committee) to decrease the 
assessment rate established for the 2017-18 and subsequent production 
years and administrative revisions to the subpart headings to bring the 
language into conformance with the Office of Federal Register 
requirements.

DATES: Effective March 15, 2018.

FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist, 
or Jeffrey Smutny, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this and 
other marketing order regulations by viewing a guide at the following 
website: https://www.ams.usda.gov/rules-regulations/moa/small-businesses; or 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: 
[email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order 
No. 983, both as amended (7 CFR part 983), regulating the handling of 
pistachios grown in California, Arizona, and New Mexico. Part 983 
(referred to as 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 Committee locally 
administers the Order and is comprised of growers and handlers of 
pistachios operating within the area of production, and a public 
member.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 13563 and 13175. This rule falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this 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).
    Under the Order, pistachio handlers in California, Arizona, and New 
Mexico are subject to assessments, which provide funds to administer 
the Order. Assessment rates issued under the Order are intended to be 
applicable to all assessable pistachios for the entire production year, 
and continue indefinitely until amended, suspended, or terminated. The 
Committee's

[[Page 11135]]

production year begins on September 1 and ends on August 31.
    In an interim rule published in the Federal Register on October 24, 
2017, and effective on October 24, 2017, (82 FR 49087, Doc No. AMS-SC-
17-0048; SC17-983-2 IR), Sec.  983.253 was amended by decreasing the 
assessment rate established for pistachios grown in California, 
Arizona, and New Mexico for the 2017-18 and subsequent production years 
from $0.0010 to $0.0001 per pound of assessed weight pistachios 
handled. The decreased assessment rate allows the Committee to maintain 
their financial reserve at the limit specified under the Order while 
providing adequate funding to meet program expenses.

Final 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 rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
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 the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 18 handlers subject to regulation under the order and 
approximately 1,236 producers of pistachios in the production area. 
Small agricultural service firms are defined by the Small Business 
Administration as those having annual receipts of less than $7,500,000, 
and small agricultural producers are defined as those having annual 
receipts of less than $750,000 (13 CFR 121.201).
    Based on Committee data, it is estimated that about 50 percent of 
the handlers annually ship less than $7,500,000 worth of pistachios. 
Nine of the 18 (50 percent) regulated handlers received enough 
pistachios at an average price of $2.50 per pound to be considered 
large handlers, leaving the percentage of small handlers at 50 percent.
    The National Agricultural Statistics Service (NASS) 2012 data on 
pistachio farm size indicates that there were 1,305 pistachio farms, of 
which 945, or 72 percent, were less than 100 acres. NASS 2016 annual 
production data indicates that the per-acre production of pistachios 
was 3,750 pounds. At an average value of $1.68 per pound, each acre of 
pistachios could return $6,300. In order for a producer to have 
$750,000 in annual receipts, the producer would have to have at least 
119 acres. Thus, about half the handlers and a majority of the 
producers in the production area may be classified as small entities.
    This rule continues in effect the interim rule that decreased the 
assessment rate established and collected from handlers for the 2017-18 
and subsequent production years from $0.0010 to $0.0001 per pound of 
pistachios handled. The Committee unanimously recommended 2017-18 
expenditures of $672,900, and recommended an assessment rate of $0.0001 
per pound of assessed weight pistachios, by majority vote. The $0.0001 
assessment rate is $0.0009 lower than the rate previously in effect. 
The quantity of assessable pistachios for the 2017-18 production year 
is estimated at 550 million pounds. Thus, the $0.0001 rate should 
provide $55,000 in assessment income. Income derived from handler's 
assessments, along with interest income, California Pistachio Research 
Board (CPRB) management income, and funds from the Committee's 
authorized reserve, will be adequate to cover expenses for the 2017-18 
production year, while not adding to the financial reserve.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate reduces the burden 
on handlers, and may reduce the burden on producers.
    Additionally, the Committee's meetings were widely publicized 
throughout the California, Arizona, and New Mexico pistachio industry, 
and all interested persons were invited to attend the meetings and 
encouraged to participate in Committee deliberations on all issues. 
Like all Committee meetings, the July 10, 2017, and August 1, 2017, 
meetings were public meetings and all entities, both large and small, 
were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0215, ``Vegetable 
and Specialty Crop Marketing Orders.'' No changes in those requirements 
as a result of this action are necessary. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large California, Arizona, and New 
Mexico pistachio handlers. As with all Federal marketing order 
programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before December, 26, 2017. No comments were received. Therefore, for 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: https://www.regulations.gov/document?D=AMS-SC-17-0048.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, 13563, and 13771; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (82 FR 49087 October 24, 2017) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO

0
Accordingly, the interim rule amending 7 CFR part 983, which was 
published at 82 FR 49087 on October 24, 2017, is adopted as final, 
without change.

    Dated: March 9, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-05144 Filed 3-13-18; 8:45 am]
 BILLING CODE 3410-02-P