Almonds Grown in California; Adjusted Kernel Weight Computation, 17506-17509 [2018-08249]
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Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules
the location and hours of the reading
room are provided under the heading
ADDRESSES at the beginning of this
proposed rule.) Copies can also be
obtained from Ms. Kimberly Hardy,
APHIS’ Information Collection
Coordinator, at (301) 851–2483. APHIS
will respond to any ICR-related
comments in the final rule. All
comments will also become a matter of
public record.
E-Government Act Compliance
The Animal and Plant Health
Inspection Service is committed to
compliance with the EGovernment 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. For information pertinent to
E-Government Act compliance related
to this proposed rule, please contact Ms.
Kimberly Hardy, APHIS’ Information
Collection Coordinator, at (301) 851–
2483.
List of Subjects in 7 CFR Part 319
Coffee, Cotton, Fruits, Imports, Logs,
Nursery stock, Plant diseases and pests,
Quarantine, Reporting and
recordkeeping requirements, Rice,
Vegetables.
Accordingly, we propose to amend 7
CFR part 319 as follows:
PART 319—FOREIGN QUARANTINE
NOTICES
1. The authority citation for part 319
continues to read as follows:
■
Authority: 7 U.S.C. 450, 7701–7772, and
7781–7786; 21 U.S.C. 136 and 136a; 7 CFR
2.22, 2.80, and 371.3.
■
2. Add § 319.56–83 to read as follows:
sradovich on DSK3GMQ082PROD with PROPOSALS
§ 319.56–83
Ecuador.
Fresh cape gooseberry from
Fresh cape gooseberry (Physalis
peruviana) fruit may be imported into
the continental United States only
under the conditions described in this
section. These conditions are designed
to prevent the introduction of Ceratitis
capitata.
(a) General requirements. (1) The
national plant protection organization
(NPPO) of Ecuador must provide an
operational workplan to APHIS that
details the activities that the NPPO of
Ecuador will, subject to APHIS’
approval of the workplan, carry out to
meet the requirements of this section.
APHIS will be directly involved with
the NPPO of Ecuador in monitoring and
auditing implementation of the systems
approach.
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(2) The production site where the fruit
is grown must be registered with the
NPPO of Ecuador.
(3) Harvested fresh cape gooseberry
fruit must be placed in field cartons or
containers that are marked to show the
official identification of the production
site.
(4) All openings to the outside of the
packinghouse where the fruit is packed
must be covered by screening or by
some other barrier that prevents pests
from entering. The packinghouse must
have double doors at the entrance to the
facility and at the interior entrance to
the area where the fresh cape gooseberry
fruit is packed.
(5) Each consignment of fresh cape
gooseberry fruit must be accompanied
by a phytosanitary certificate issued by
the NPPO of Ecuador that contains an
additional declaration stating that the
fruit in the consignment was produced
in accordance with § 319.56–83.
(b) Commercial consignments. The
fresh cape gooseberry fruit may be
imported in commercial consignments
only.
(c) To be eligible for importation, the
fresh cape gooseberry fruit must either
be produced and shipped under the
systems approach described in
paragraph (d) of this section or treated
in accordance with paragraph (e) of this
section.
(d) Systems approach. The fresh cape
gooseberry fruit may be imported
without treatment if it is subject to a
systems approach consisting of the
following:
(1) Low-prevalence production site
certification. The fruit must originate
from a registered production site within
a low prevalence area for C. capitata
that has been certified as such by the
NPPO of Ecuador.
(2) Fruit fly trapping. (i) Trapping for
C. capitata must be conducted in the
places of production in accordance with
the operational workplan to
demonstrate that those places are free of
C. capitata. Specific trapping
requirements must be included in the
operational workplan. The NPPO of
Ecuador must keep records of fruit fly
detections for each trap and make the
records available to APHIS upon
request.
(ii) All fruit flies trapped must be
reported to APHIS immediately. Capture
of C. capitata will result in immediate
cancellation of exports from farms
within 5 kilometer radius of the
detection site. An additional 50 traps
must be placed in the 5 square kilometer
area surrounding the detection site. If a
second detection is made within the
detection areas within 30 days of a
previous capture, eradication using a
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bait spray agreed upon by APHIS and
the NPPO of Ecuador must be initiated
in the detection area. Treatment must
continue for at least 2 months. Sites
whose exports have been canceled
under this paragraph will be eligible to
export fruit to the United States only if
the fruit is treated in accordance with
paragraph (e) of this section. Exports
may resume from the detection area in
accordance with this paragraph (d)
when APHIS and the NPPO of Ecuador
agree the risk has been mitigated.
(3) Phytosanitary inspection. After
packing, the NPPO of Ecuador must
visually inspect the fresh cape
gooseberry fruit at a rate jointly
approved by APHIS and the NPPO of
Ecuador. Any fruit displaying evidence
of pest presence must be cut open for
further examination. Only in the case
where at least one single live C. capitata
is found, the consignment will not pass
inspection. Any consignment that does
not pass inspection may still be
imported into the continental United
States subject to treatment as provided
in paragraph (e) of this section.
(e) Treatment. The fresh cape
gooseberry fruit may be imported into
the continental United States without
meeting the conditions of paragraph (d)
of this section if the fruit is subject to
cold treatment or irradiation treatment
in accordance with part 305 of this
chapter. If the irradiation treatment is
completed in Ecuador, each
consignment of fresh cape gooseberry
fruit must be accompanied by
documentation to validate foreign site
preclearance inspection of the
consignment.
Done in Washington, DC, this 16th day of
April 2018.
Kevin Shea,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 2018–08251 Filed 4–19–18; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 981
[Doc. No. AMS–SC–17–0084; SC18–981–1
PR]
Almonds Grown in California; Adjusted
Kernel Weight Computation
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Almond Board of California (Board) to
SUMMARY:
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Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules
revise the adjusted kernel weight
computation currently prescribed under
the Marketing Order for almonds grown
in California. In addition, this action
would allow adjustments to the
calculated percentages for foreign
material, excess moisture, or inedible
kernels so that the sum of the
percentages for the specified
measurements would equal 100 percent.
DATES: Comments must be received by
May 21, 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
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:
Andrea Ricci, 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:
Andrea.Ricci@ams.usda.gov or
Jeffrey.Smutny@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 proposed
rule is issued under Marketing Order
No. 981, as amended (7 CFR part 981),
regulating the handling of almonds
grown in California. Part 981 (referred to
as the ‘‘Order’’) is effective under the
Agricultural Marketing Agreement Act
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of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’ The
Board locally administers the Order and
is comprised of growers and handlers
operating within California.
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) 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’ ’’ (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 invites comments
on revisions to the adjusted kernel
weight computation currently
prescribed for almonds under the Order.
This proposal would change the way
adjusted kernel weight is expressed by
requiring calculation of percentages for
specified measurements to round the
decimal to the nearest thousandth rather
than the current hundredth. In addition,
this proposed rule would allow
adjustments to the calculated
percentages for foreign material, excess
moisture, or inedible kernels so that the
sum of the percentages for the specified
measurements would equal 100 percent.
The Board unanimously recommended
these changes at its December 4, 2017,
meeting.
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Section 981.42 provides authority for
quality control regulations. Paragraph
(a) of that section requires that each
handler shall have the inspection
agency determine the percentage of
inedible kernels received by that
handler and report such determination
to the Board.
Section 981.442(a)(1) prescribes that
each handler shall have a representative
sample drawn from each lot of any
variety of incoming almonds that the
handler receives. Section 981.442(a)(3)
prescribes that each such sample shall
be analyzed by or under surveillance of
the Federal-State Inspection Service (or,
when specifically designated, the
Federal Inspection Service) to determine
the kernel content and the portion of
inedible kernels in the sample. The
inspection agency prepares a report
showing, among other things, the total
adjusted kernel weight. This report is
submitted by the inspection agency to
the Board and the handler.
Section 981.401(a) defines adjusted
kernel weight. Section 981.401(b)
provides examples of the computation
that is used to determine adjusted
kernel weight. This computation
includes a calculation of percentages for
specified measurements of edible
kernels, inedible kernels, foreign
material, and excess moisture. The table
of examples contained in § 981.401(b)
shows percentages rounded to the
nearest tenth and the nearest hundredth
decimal place. However, in practice, the
calculated percentages are currently
being rounded to the nearest hundredth
decimal place.
Currently, the inspection agency
utilizes a computer-based database
program that computes and totals the
percentages for the specified
measurements. As part of the program’s
computation process, it automatically
makes adjustments, when needed, so
that the total of the percentages equals
100 percent. This program has been
used for several years, and the industry
is accustomed to receiving reports from
the inspection agency that show the
100-percent summed total.
In early 2017, the USDA inspection
service began testing a new web-based
program that will replace the computerbased program described above. During
this testing, USDA discovered that, due
to the rounding method used by the new
program, the sum of the percentages
occasionally did not equal 100 percent.
It was further determined during testing
that having the new program round the
decimal to the nearest thousandth,
rather than the nearest hundredth as
currently provided in the Order, would
produce more accurate results.
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Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules
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The new program could also make
automatic minor adjustments to the
percentage computations for foreign
material, excess moisture, or inedible
kernels so that the sum of the
percentages would always equal 100
percent. This allowance for automatic
adjustments of these specified
measurements aligns with industry
practice that has existed for many years.
As a result of these test results, the
Board determined that rounding the
decimal to the nearest thousandth rather
than the current hundredth would
provide a more accurate computed
percentage. In addition, allowing the
program to make adjustments to the
calculated percentages for foreign
material, excess moisture, or inedible
kernels would align the requirements
under the Order with current industry
practices, ensuring the continuance of
longstanding reporting practices and
transparency in the program.
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 rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
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 6,800
almond growers in the production area
and approximately 100 almond handlers
subject to regulation under the Order.
Small agricultural service firms are
defined by the Small Business
Administration (SBA) 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).
The National Agricultural Statistics
Service (NASS) reported in its most
recent (2012) Agricultural Census that
there were 6,841 almond farms in the
production area (California), of which
6,204 had bearing acres. The following
computation provides an estimate of the
proportion of agricultural producers
(farms) and agricultural service firms
(handlers) that would be considered
small under the SBA definitions.
The NASS Census data indicates that
out of the 6,204 California farms with
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bearing acres of almonds, 4,471 (72
percent) have fewer than 100 bearing
acres.
For the almond industry’s most
recently reported crop year (2016),
NASS reported an average yield of 2,280
pounds per acre and a season average
grower price of $2.44 per pound. A 100acre farm with an average yield of 2,280
pounds per acre would produce about
228,000 pounds of almonds. At $2.44
per pound, that farm’s production
would be valued at $556,320. The
Census of Agriculture indicates that the
majority of California’s almond farms
are smaller than 100 acres; therefore, it
could be concluded that the majority of
growers had annual receipts from the
sale of almonds in 2016–17 of less than
$556,320, which is below the SBA
threshold of $750,000. Thus, over 70
percent of California’s almond growers
would be classified as small growers
according to SBA’s definition.
To estimate the proportion of almond
handlers that would be considered
small businesses, it was assumed that
the unit value per shelled pound of
almonds exported in a particular year
could serve as a representative almond
price at the handler level. A unit value
for a commodity is the value of exports
divided by the quantity. Data from the
Global Agricultural Trade System
database of USDA’s Foreign Agricultural
Service showed that the value of
almond exports from August 2016 to
July 2017 (combining shelled and
inshell almonds) was $4.072 billion.
The quantity of almond exports over
that time period was 1.406 billion
pounds, combining shelled exports and
the shelled equivalent of inshell
exports. Dividing the export value by
the quantity yields a unit value of $2.90
per pound. Subtracting this figure from
the NASS 2016 estimate of season
average grower price per pound ($2.44)
yields $0.46 per pound as a
representative grower-handler margin.
Applying the $2.90 representative
handler price per pound to 2016–17
handler shipment quantities provided
by the Board showed that approximately
40 percent of California’s almond
handlers shipped almonds valued under
$7,500,000 during the 2016–17 crop
year and would therefore be considered
small handlers according to the SBA
definition.
This proposed rule would revise the
adjusted kernel weight computation in
§ 981.401 by requiring calculation of the
percentages for specified measurements
to round the decimal to the nearest
thousandth rather than the current
hundredth. In addition, this action
would allow adjustments to the
calculated percentages for foreign
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material, excess moisture, or inedible
kernels so that the sum of the
percentages for the specified
measurements would equal 100 percent.
Requiring rounding of the decimal to
the nearest thousandth would provide
for a more accurate computed
percentage. In addition, allowing
adjustments to the foreign material,
excess moisture, or inedible kernel
measurements would align the Order
with current industry practices,
ensuring the continuance of
longstanding reporting practices and
transparency in the program. Authority
for this action is provided in § 981.42(a)
of the Order. The Board recommended
this action at a meeting on December 4,
2017.
It is not anticipated that this action
would impose additional costs on
handlers or growers, regardless of size.
The proposed changes are intended to
align provisions of the Order with
current industry practices. This
proposed rule is not expected to change
handler inspection costs, as handlers are
currently required to have all lots
inspected to determine kernel content.
The Board considered alternatives to
this action, including not changing the
current computation procedures. Prior
to this recommendation, the Board’s
Almond Quality, Food Safety and
Services Committee (Committee)
reviewed the program, surveyed
handlers, and determined that not
changing the computation procedures to
align with current industry practices
would cause disruption in the industry.
Therefore, the Committee unanimously
recommended this action to the Board at
a meeting on November 16, 2017.
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. 0581–0178
(Vegetable and Specialty Crops). No
changes are necessary in those
requirements as a result of this action.
Should any changes become necessary,
they would be submitted to OMB for
approval.
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large almond handlers. As with
all Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
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Federal Register / Vol. 83, No. 77 / Friday, April 20, 2018 / Proposed Rules
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this proposed rule.
Further, the Board’s meeting was
widely publicized throughout the
almond industry, and all interested
persons were invited to attend the
meeting and participate in Board
deliberations. Like all Board meetings,
the December 4, 2017, meeting was a
public meeting, and all entities, both
large and small, were able to express
their views on this issue.
Also, the Board has a number of
appointed committees to review certain
issues and make recommendations to
the Board. The Committee met on
November 16, 2017, and discussed this
issue in detail. That meeting was also a
public meeting, and both large and
small entities were able to participate
and express their views.
Finally, interested persons are invited
to submit comments on this proposed
rule, including the regulatory and
information collection impacts of this
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 30-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.
List of Subjects in 7 CFR Part 981
Almonds, Marketing agreements,
Nuts, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 981 is proposed to
be amended as follows:
PART 981—ALMONDS GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 981 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 981.401, revise the table in
paragraph (b) and add paragraph (c) to
read as follows:
■
§ 981.401
*
Adjusted kernel weight.
*
*
(b) * * *
*
*
Computation No. 1
Computation No. 2
Deliveries with less than
95 percent kernels
Deliveries with 95 percent or
more kernels
Percent
of sample
1.
2.
3.
4.
5.
6.
7.
8.
Actual gross weight of delivery ....................................................................
Percent of edible kernel weight ...................................................................
Less weight loss in processing 1 .................................................................
Less excess moisture of edible kernels (excess moisture × line 2) ...........
Net percent shell out (line 2 ¥ lines 3 and 4) ............................................
Net edible kernels (line 5 × line 1) ..............................................................
Percent of inedible kernels (from sample) ..................................................
Less excess moisture of inedible kernels (excess moisture from sample ×
line 7) ...........................................................................................................
9. Net percent inedible kernels (line 7 ¥ line 8) .............................................
10. Total inedible kernels (line 9 × line 1) .......................................................
11. Adjusted kernel weight (line 6 + line 10) ...................................................
1 Only
Percent
of sample
Weight
(pounds)
........................
53.000
1.000
1.060
50.940
........................
12.000
10,000
........................
........................
........................
........................
5,094
........................
........................
84.000
0.000
1.680
82.320
........................
12.000
10,000
........................
........................
........................
........................
8,232
........................
0.240
11.760
........................
........................
........................
........................
1,176
6,270
0.240
11.760
........................
........................
........................
........................
1,176
9,408
applies to deliveries with less than 95 percent kernels.
(c) Computation Adjustments. If
applicable, adjustments shall be made
by rounding such that the sample
computation percentages total equals
100 percent. Rounding adjustments
shall be made as follows: First adjust the
foreign material percentage; if there is
no foreign material in the sample, then
adjust the excess moisture percentage;
or if there is no foreign material or
excess moisture in the sample, adjust
the inedible kernels percentage.
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Weight
(pounds)
Dated: April 16, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–08249 Filed 4–19–18; 8:45 am]
BILLING CODE 3410–02–P
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FEDERAL ELECTION COMMISSION
11 CFR Chapter 113
[Notice 2018–07]
Rulemaking Petition: Former
Candidates’ Personal Use; Correction
Federal Election Commission.
Rulemaking Petition;
Notification of Availability; Correction.
AGENCY:
ACTION:
The Federal Election
Commission published a Notification of
Availability in the Federal Register on
March 21, 2018 regarding a Petition for
Rulemaking it received on February 5,
2018. The petition asked the
Commission to revise and amend the
existing rules concerning the personal
use of campaign funds, specifically to
clarify the application of those rules to
former candidates and officeholders.
The published document contained
SUMMARY:
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errors in the ADDRESSES and
SUPPLEMENTARY INFORMATION
captions.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert M. Knop, Assistant General
Counsel, 1050 First Street NE,
Washington, DC 20463, (202) 694–1650
or (800) 424–9530.
CORRECTION: In the Federal Register of
March 21, 2018, 83 FR 12283, in the
ADDRESSES caption, in the first column,
correct the first paragraph to read:
ADDRESSES: All comments must be in
writing. Commenters are encouraged to
submit comments electronically via the
Commission’s website at https://
sers.fec.gov/fosers/rulemaking.htm?pid=
2883684, which references REG 2018–
01. Alternatively, commenters may
submit comments in paper form,
addressed to the Federal Election
Commission, Attn.: Robert M. Knop,
Assistant General Counsel, 1050 First
Street NE, Washington, DC 20463.
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]]>Agencies
[Federal Register Volume 83, Number 77 (Friday, April 20, 2018)]
[Proposed Rules]
[Pages 17506-17509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08249]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 981
[Doc. No. AMS-SC-17-0084; SC18-981-1 PR]
Almonds Grown in California; Adjusted Kernel Weight Computation
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Almond Board of California (Board) to
[[Page 17507]]
revise the adjusted kernel weight computation currently prescribed
under the Marketing Order for almonds grown in California. In addition,
this action would allow adjustments to the calculated percentages for
foreign material, excess moisture, or inedible kernels so that the sum
of the percentages for the specified measurements would equal 100
percent.
DATES: Comments must be received by May 21, 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 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: Andrea Ricci, 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
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: [email protected].
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 proposed rule is issued under
Marketing Order No. 981, as amended (7 CFR part 981), regulating the
handling of almonds grown in California. Part 981 (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 Board locally administers the Order and is comprised of
growers and handlers operating within California.
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) 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' '' (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 invites comments on revisions to the adjusted
kernel weight computation currently prescribed for almonds under the
Order. This proposal would change the way adjusted kernel weight is
expressed by requiring calculation of percentages for specified
measurements to round the decimal to the nearest thousandth rather than
the current hundredth. In addition, this proposed rule would allow
adjustments to the calculated percentages for foreign material, excess
moisture, or inedible kernels so that the sum of the percentages for
the specified measurements would equal 100 percent. The Board
unanimously recommended these changes at its December 4, 2017, meeting.
Section 981.42 provides authority for quality control regulations.
Paragraph (a) of that section requires that each handler shall have the
inspection agency determine the percentage of inedible kernels received
by that handler and report such determination to the Board.
Section 981.442(a)(1) prescribes that each handler shall have a
representative sample drawn from each lot of any variety of incoming
almonds that the handler receives. Section 981.442(a)(3) prescribes
that each such sample shall be analyzed by or under surveillance of the
Federal-State Inspection Service (or, when specifically designated, the
Federal Inspection Service) to determine the kernel content and the
portion of inedible kernels in the sample. The inspection agency
prepares a report showing, among other things, the total adjusted
kernel weight. This report is submitted by the inspection agency to the
Board and the handler.
Section 981.401(a) defines adjusted kernel weight. Section
981.401(b) provides examples of the computation that is used to
determine adjusted kernel weight. This computation includes a
calculation of percentages for specified measurements of edible
kernels, inedible kernels, foreign material, and excess moisture. The
table of examples contained in Sec. 981.401(b) shows percentages
rounded to the nearest tenth and the nearest hundredth decimal place.
However, in practice, the calculated percentages are currently being
rounded to the nearest hundredth decimal place.
Currently, the inspection agency utilizes a computer-based database
program that computes and totals the percentages for the specified
measurements. As part of the program's computation process, it
automatically makes adjustments, when needed, so that the total of the
percentages equals 100 percent. This program has been used for several
years, and the industry is accustomed to receiving reports from the
inspection agency that show the 100-percent summed total.
In early 2017, the USDA inspection service began testing a new web-
based program that will replace the computer-based program described
above. During this testing, USDA discovered that, due to the rounding
method used by the new program, the sum of the percentages occasionally
did not equal 100 percent. It was further determined during testing
that having the new program round the decimal to the nearest
thousandth, rather than the nearest hundredth as currently provided in
the Order, would produce more accurate results.
[[Page 17508]]
The new program could also make automatic minor adjustments to the
percentage computations for foreign material, excess moisture, or
inedible kernels so that the sum of the percentages would always equal
100 percent. This allowance for automatic adjustments of these
specified measurements aligns with industry practice that has existed
for many years.
As a result of these test results, the Board determined that
rounding the decimal to the nearest thousandth rather than the current
hundredth would provide a more accurate computed percentage. In
addition, allowing the program to make adjustments to the calculated
percentages for foreign material, excess moisture, or inedible kernels
would align the requirements under the Order with current industry
practices, ensuring the continuance of longstanding reporting practices
and transparency in the program.
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 rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
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 6,800 almond growers in the production area
and approximately 100 almond handlers subject to regulation under the
Order. Small agricultural service firms are defined by the Small
Business Administration (SBA) 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).
The National Agricultural Statistics Service (NASS) reported in its
most recent (2012) Agricultural Census that there were 6,841 almond
farms in the production area (California), of which 6,204 had bearing
acres. The following computation provides an estimate of the proportion
of agricultural producers (farms) and agricultural service firms
(handlers) that would be considered small under the SBA definitions.
The NASS Census data indicates that out of the 6,204 California
farms with bearing acres of almonds, 4,471 (72 percent) have fewer than
100 bearing acres.
For the almond industry's most recently reported crop year (2016),
NASS reported an average yield of 2,280 pounds per acre and a season
average grower price of $2.44 per pound. A 100-acre farm with an
average yield of 2,280 pounds per acre would produce about 228,000
pounds of almonds. At $2.44 per pound, that farm's production would be
valued at $556,320. The Census of Agriculture indicates that the
majority of California's almond farms are smaller than 100 acres;
therefore, it could be concluded that the majority of growers had
annual receipts from the sale of almonds in 2016-17 of less than
$556,320, which is below the SBA threshold of $750,000. Thus, over 70
percent of California's almond growers would be classified as small
growers according to SBA's definition.
To estimate the proportion of almond handlers that would be
considered small businesses, it was assumed that the unit value per
shelled pound of almonds exported in a particular year could serve as a
representative almond price at the handler level. A unit value for a
commodity is the value of exports divided by the quantity. Data from
the Global Agricultural Trade System database of USDA's Foreign
Agricultural Service showed that the value of almond exports from
August 2016 to July 2017 (combining shelled and inshell almonds) was
$4.072 billion. The quantity of almond exports over that time period
was 1.406 billion pounds, combining shelled exports and the shelled
equivalent of inshell exports. Dividing the export value by the
quantity yields a unit value of $2.90 per pound. Subtracting this
figure from the NASS 2016 estimate of season average grower price per
pound ($2.44) yields $0.46 per pound as a representative grower-handler
margin. Applying the $2.90 representative handler price per pound to
2016-17 handler shipment quantities provided by the Board showed that
approximately 40 percent of California's almond handlers shipped
almonds valued under $7,500,000 during the 2016-17 crop year and would
therefore be considered small handlers according to the SBA definition.
This proposed rule would revise the adjusted kernel weight
computation in Sec. 981.401 by requiring calculation of the
percentages for specified measurements to round the decimal to the
nearest thousandth rather than the current hundredth. In addition, this
action would allow adjustments to the calculated percentages for
foreign material, excess moisture, or inedible kernels so that the sum
of the percentages for the specified measurements would equal 100
percent. Requiring rounding of the decimal to the nearest thousandth
would provide for a more accurate computed percentage. In addition,
allowing adjustments to the foreign material, excess moisture, or
inedible kernel measurements would align the Order with current
industry practices, ensuring the continuance of longstanding reporting
practices and transparency in the program. Authority for this action is
provided in Sec. 981.42(a) of the Order. The Board recommended this
action at a meeting on December 4, 2017.
It is not anticipated that this action would impose additional
costs on handlers or growers, regardless of size. The proposed changes
are intended to align provisions of the Order with current industry
practices. This proposed rule is not expected to change handler
inspection costs, as handlers are currently required to have all lots
inspected to determine kernel content.
The Board considered alternatives to this action, including not
changing the current computation procedures. Prior to this
recommendation, the Board's Almond Quality, Food Safety and Services
Committee (Committee) reviewed the program, surveyed handlers, and
determined that not changing the computation procedures to align with
current industry practices would cause disruption in the industry.
Therefore, the Committee unanimously recommended this action to the
Board at a meeting on November 16, 2017.
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. 0581-0178 (Vegetable
and Specialty Crops). No changes are necessary in those requirements as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large almond handlers. As
with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen
[[Page 17509]]
access to Government information and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule.
Further, the Board's meeting was widely publicized throughout the
almond industry, and all interested persons were invited to attend the
meeting and participate in Board deliberations. Like all Board
meetings, the December 4, 2017, meeting was a public meeting, and all
entities, both large and small, were able to express their views on
this issue.
Also, the Board has a number of appointed committees to review
certain issues and make recommendations to the Board. The Committee met
on November 16, 2017, and discussed this issue in detail. That meeting
was also a public meeting, and both large and small entities were able
to participate and express their views.
Finally, interested persons are invited to submit comments on this
proposed rule, including the regulatory and information collection
impacts of this 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 30-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.
List of Subjects in 7 CFR Part 981
Almonds, Marketing agreements, Nuts, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 981 is
proposed to be amended as follows:
PART 981--ALMONDS GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 981 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 981.401, revise the table in paragraph (b) and add
paragraph (c) to read as follows:
Sec. 981.401 Adjusted kernel weight.
* * * * *
(b) * * *
----------------------------------------------------------------------------------------------------------------
Computation No. 1 Computation No. 2
---------------------------------------------------------------
Deliveries with less than 95 Deliveries with 95 percent or
percent kernels more kernels
---------------------------------------------------------------
Percent of Weight Percent of Weight
sample (pounds) sample (pounds)
----------------------------------------------------------------------------------------------------------------
1. Actual gross weight of delivery.............. .............. 10,000 .............. 10,000
2. Percent of edible kernel weight.............. 53.000 .............. 84.000 ..............
3. Less weight loss in processing \1\........... 1.000 .............. 0.000 ..............
4. Less excess moisture of edible kernels 1.060 .............. 1.680 ..............
(excess moisture x line 2).....................
5. Net percent shell out (line 2 - lines 3 and 50.940 .............. 82.320 ..............
4).............................................
6. Net edible kernels (line 5 x line 1)......... .............. 5,094 .............. 8,232
7. Percent of inedible kernels (from sample).... 12.000 .............. 12.000 ..............
8. Less excess moisture of inedible kernels 0.240 .............. 0.240 ..............
(excess moisture from sample x line 7).........
9. Net percent inedible kernels (line 7 - line 11.760 .............. 11.760 ..............
8).............................................
10. Total inedible kernels (line 9 x line 1).... .............. 1,176 .............. 1,176
11. Adjusted kernel weight (line 6 + line 10)... .............. 6,270 .............. 9,408
----------------------------------------------------------------------------------------------------------------
\1\ Only applies to deliveries with less than 95 percent kernels.
(c) Computation Adjustments. If applicable, adjustments shall be
made by rounding such that the sample computation percentages total
equals 100 percent. Rounding adjustments shall be made as follows:
First adjust the foreign material percentage; if there is no foreign
material in the sample, then adjust the excess moisture percentage; or
if there is no foreign material or excess moisture in the sample,
adjust the inedible kernels percentage.
Dated: April 16, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-08249 Filed 4-19-18; 8:45 am]
BILLING CODE 3410-02-P
