Pistachios Grown in California, Arizona, and New Mexico; Increased Assessment Rate, 62615-62617 [2020-21687]
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62615
Proposed Rules
Federal Register
Vol. 85, No. 193
Monday, October 5, 2020
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 983
[Doc. No. AMS–SC–20–0069; SC20–983–2
PR]
Pistachios Grown in California,
Arizona, and New Mexico; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Administrative Committee for
Pistachios (Committee) to increase the
assessment rate established for the
2020–21 and subsequent production
years. The proposed assessment rate
would remain in effect indefinitely
unless modified, suspended, or
terminated.
SUMMARY:
Comments must be received by
November 19, 2020.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
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.
Comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be available for public
inspection in the Office of the Docket
Clerk during regular business hours, or
can be viewed at: https://
www.regulations.gov. All comments
submitted in response to this rule will
be included in the record and will be
made available to the public. Please be
advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
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DATES:
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FOR FURTHER INFORMATION CONTACT:
Peter Sommers, Marketing Specialist, or
Terry Vawter, Regional Director,
California Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (559)538–1670
or Email: PeterR.Sommers@usda.gov or
Terry.Vawter@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@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to
carry out a marketing order as defined
in 7 CFR 900.2(j). This proposed rule is
issued under Marketing Agreement and
Order No. 983, 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 producers
and handlers of pistachios operating
within the production area, and a public
member.
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563 and 13175. This proposed 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 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. Under the Order now in
effect, pistachio handlers are subject to
assessments. Funds to administer the
Order are derived from such
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Sfmt 4702
assessments. It is intended that the
assessment rate would be applicable to
all assessable pistachios for the 2020–21
production year and continue until
amended, suspended, or terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed no later than
20 days after the date of the entry of the
ruling.
This proposed rule would increase
the assessment rate from $0.00010 per
pound of assessed weight pistachios, the
rate that was established for the 2017–
18 and subsequent production years, to
$0.00015 per pound of assessed weight
pistachios for the 2020–21 and
subsequent production years.
The Order authorizes the Committee,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
are familiar with the Committee’s needs
and with the costs of goods and services
in their local area and are in a position
to formulate an appropriate budget and
assessment rate. The assessment rate is
formulated and discussed in a public
meeting. Thus, all directly affected
persons have an opportunity to
participate and provide input.
For the 2017–18 and subsequent
production years, the Committee
recommended, and USDA approved, an
assessment rate of $0.00010 per pound
of assessed weight pistachios. That
assessment rate continues in effect from
production year to production year
unless modified, suspended, or
terminated by USDA upon
recommendation and information
submitted by the Committee or other
information available to USDA.
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Federal Register / Vol. 85, No. 193 / Monday, October 5, 2020 / Proposed Rules
The Committee met on July 14, 2020,
and unanimously recommended
expenditures of $679,800 and an
assessment rate of $0.00015 per pound
of assessed weight pistachios handled
for the 2020–21 and subsequent
production years. In comparison, last
year’s budgeted expenditures were
$677,100. The proposed assessment rate
of $0.00015 is $0.00005 higher than the
rate currently in effect. The Committee
recommended increasing the assessment
rate to provide adequate income, along
with California Pistachio Research
Board (CPRB) management income and
reserve funds, to cover all of the
Committee’s budgeted expenses for the
2020–21 production year. Funds in the
reserve are expected to be
approximately $197,585 at the end of
the 2020–21 production year, which is
within the Order’s requirement of carryover no more than approximately two
production years’ budgeted expenses.
The major expenditures
recommended by the Committee for the
2020–21 production year include
$74,800 for various administrative
expenses, $10,000 for compliance
expenses, $346,500 for salaries and
related employee expenses, $125,000 for
research, and $80,000 for a contingency
fund. Budgeted expenses for these items
for the 2019–20 production year were
$48,900 for various administrative
expenses, $10,000 for compliance
expenses, $336,500 for salaries and
related employee expenses, $125,000 for
research, and $80,000 for a contingency
fund.
The Committee derived the
recommended assessment rate by
considering anticipated expenses, an
estimated crop of 950 million pounds of
assessed weight pistachios, and the
amount of funds available in the
authorized reserve. Income derived from
handler assessments, calculated at
$142,500 (950,000,000 pounds assessed
weight pistachios multiplied by
$0.00015 assessment rate), along with
CPRB management income ($175,200),
and funds from the Committee’s
authorized reserve ($559,685), would be
adequate to cover budgeted expenses of
$679,800. Funds in the reserve are
estimated to be $197,585 at the end of
the 2020–21 production year ($142,500
plus $175,200 plus $559,685 minus
$679,800 equals $197,585).
The assessment rate proposed in this
rule would continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate would
be in effect for an indefinite period, the
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Jkt 253001
Committee will continue to meet prior
to or during each production year to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2020–21 production year
budget, and those for subsequent
production years, would be reviewed
and, as appropriate, approved by USDA.
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 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 approximately 21 handlers
subject to the regulation under the
Order, and approximately 1,501
producers of pistachios in the
production area. Small agricultural
producers are defined by the Small
Business Administration (SBA) as those
having annual receipts of less than
$1,000,000, and small agricultural
service firms have been defined as those
whose annual receipts are less than
$30,000,000 (13 CFR 121.201).
According to the National
Agricultural Statistics Service (NASS),
the national average producer price for
pistachios for the 2018 production year
was $2.65 per pound. Committee data
indicates 2018–19 pistachio total
production was 746,858,150 pounds.
The total 2018 value of the pistachio
crop was $1,979,174,098 (746,858,150
pounds times $2.65 per pound equals
$1,979,174,098). Dividing the crop value
by the estimated number of producers
(1,501) yields an estimated average
receipt per producer of $1,318,570
which is above the SBA threshold for
small producers.
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According to USDA Market News
data, the reported terminal price for
2018 for pistachios ranged between
$155.00 to $165.00 per 25-pound carton.
The average of this range is $160.00
($155.00 plus $165.00 divided by 2
equals $160.00). Dividing the average
value by the 25-pound carton yields an
estimated average price per pound of
$6.40 ($160.00 average value for 25pound carton divided by 25).
Multiplying the 2018–19 pistachio total
production of 746,858,150 pounds by
the estimated average price per pound
of $6.40 equals $4,779,892,160.
Dividing this figure by 21 regulated
handlers yields estimated average
annual handler receipts of
$227,613,912, which is above the SBA
threshold for small agricultural service
firms. Therefore, using the above data,
and assuming a normal distribution, the
majority of producers and handlers of
pistachios may be classified as large
entities.
The proposed assessment rate of
$0.00015 that the committee approved
complies with section 983.71(b) of the
Order which states that any proposed
assessment rate must not exceed onehalf of one percent of the average price
received by producers in the preceding
production year. The average price
received by producers in the preceding
production year was $2.65 per pound of
pistachios. Thus, $2.65 times 0.5
percent equals $0.01325, which is
greater than the assessment rate increase
of $0.00015.
This proposal would increase the
assessment rate collected from handlers
for the 2020–21 and subsequent
production years from $0.00010 to
$0.00015 per pound assessed weight
pistachios. The Committee unanimously
recommended 2020–21 expenditures of
$679,800 and an assessment rate of
$0.00015 per pound assessed weight
pistachios. The proposed assessment
rate of $0.00015 per pound assessed
weight pistachios is $0.00005 higher
than the current rate. The volume of
assessable pistachios for the 2020–21
production year is estimated to be 950
million pounds. Thus, the $0.00015 per
pound assessed weight pistachios
should provide $142,500 in assessment
income (950,000,000 multiplied by
$0.00015). Income derived from handler
assessments, along with CPRB
management income and funds from the
Committee’s authorized reserve, would
be adequate to cover budgeted expenses
for the 2020–21 production year.
The major expenditures
recommended by the Committee for the
2020–21 production year include
$74,800 for various administrative
expenses, $10,000 for compliance
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Federal Register / Vol. 85, No. 193 / Monday, October 5, 2020 / Proposed Rules
expenses, $346,500 for salaries and
related employee expenses, $125,000 for
research, and $80,000 for a contingency
fund. Budgeted expenses for these items
in the 2019–20 production year were
$48,900, $10,000, $336,500, $125,000,
and $80,000 respectively.
In recent years, the Committee has
utilized reserve funds to partially fund
its budgeted expenditures. The
Committee recommended increasing the
assessment rate to provide adequate
income to cover the Committee’s
budgeted expenses for the 2020–21
production year while maintaining its
financial reserve. This action would
maintain the Committee’s reserve
balance at a level that the Committee
believes is appropriate and meets the
requirements of the Order.
Prior to arriving at this budget and
assessment rate recommendation, the
Committee discussed various
alternatives, including maintaining the
current assessment rate of $0.00010 per
pound assessed weight pistachios, and
increasing the assessment rate by a
different amount. However, the
Committee determined that the
recommended assessment rate would
fully fund budgeted expenses and avoid
drawing down reserves at an
unsustainable rate.
This proposed rule would increase
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, these costs would
be offset by the benefits derived by the
operation of the Order.
The Committee’s meeting was widely
publicized throughout the pistachio
industry. All interested persons were
invited to attend the meeting and
encouraged to participate in Committee
deliberations on all issues. Like all
Committee meetings, the July 14, 2020,
meeting was a public meeting, and all
entities, both large and small, were able
to express views on this issue.
Interested persons are invited to submit
comments on this proposed rule,
including the regulatory and
information collection impacts of this
action on small businesses.
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 the OMB and
assigned OMB No. 0581–0215,
Pistachios Grown in California, Arizona,
and New Mexico. No changes in those
requirements would be necessary as a
result of this proposed rule. Should any
changes become necessary, they would
be submitted to OMB for approval.
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23:47 Oct 02, 2020
Jkt 253001
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large 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.
AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
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 45-day comment period is provided
to allow interested persons to respond
to this proposed rule. All written
comments timely received will be
considered before a final determination
is made on this matter.
List of Subjects in 7 CFR Part 983
Marketing agreements, Pistachios,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service proposes to amend 7 CFR part
983 as follows:
PART 983—PISTACHIOS GROWN IN
CALIFORNIA, ARIZONA, AND NEW
MEXICO
1. The authority citation for 7 CFR
part 983 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 983.253 is revised to read
as follows:
■
§ 983.253
Assessment rate.
On and after September 1, 2020, an
assessment rate of $0.00015 per pound
is established for California, Arizona,
and New Mexico pistachios.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2020–21687 Filed 10–2–20; 8:45 am]
BILLING CODE P
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62617
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1280
[Document No. AMS–LP–19–0093]
RIN 0581–AC06
Lamb Promotion, Research, and
Information Order; Activity Changes
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
AMS solicits comments on
proposed amendments to the Lamb
Promotion, Research, and Information
Order (Order). These amendments
would require market agencies (e.g.
commission merchant, auction market,
livestock market) in the business of
receiving lambs to collect and remit on
behalf of the producer, feeder, or
seedstock producer, the ‘‘live-weight’’
assessment on ovine animals sold and
the ‘‘price-per-head’’ assessment owed
by the first handler when lambs are sold
through these channels. Market agencies
would remit the full assessment to the
American Lamb Board (Board) when
ovine animals are sold. This proposed
rule would also make technical
amendments to the Order, correcting
references to assessment rates that were
inadvertently not updated during the
previous amendment to the Order.
DATES: Comments must be received by
December 4, 2020. Pursuant to the
Paperwork Reduction Act, comments on
the information collection burden must
be received by December 4, 2020.
ADDRESSES: Comments should be posted
online at www.regulations.gov.
Comments received will be posted
without change, including any personal
information provided. All comments
should reference the docket number
AMS–LP–19–0093, the date of
submission, and the page number of this
issue of the Federal Register. Comments
may also be sent to Jason Julian,
Agricultural Marketing Specialist;
Research and Promotion Division;
Livestock and Poultry Program, AMS,
USDA; Room 2610–S, STOP 0251, 1400
Independence Avenue SW, Washington,
DC 20250–0251; or via fax to (202) 720–
1125. Comments will be made available
for public inspection at the above
address during regular business hours or
via the internet at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Jason Julian, Agricultural Marketing
Specialist, Research and Promotion
Division, Livestock and Poultry
Program, AMS, USDA; telephone: (202)
SUMMARY:
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Agencies
[Federal Register Volume 85, Number 193 (Monday, October 5, 2020)]
[Proposed Rules]
[Pages 62615-62617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21687]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 85, No. 193 / Monday, October 5, 2020 /
Proposed Rules
[[Page 62615]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 983
[Doc. No. AMS-SC-20-0069; SC20-983-2 PR]
Pistachios Grown in California, Arizona, and New Mexico;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Administrative Committee for Pistachios (Committee) to increase the
assessment rate established for the 2020-21 and subsequent production
years. The proposed assessment rate would remain in effect indefinitely
unless modified, suspended, or terminated.
DATES: Comments must be received by November 19, 2020.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. 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. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist,
or Terry Vawter, Regional Director, California Marketing Field Office,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA; Telephone: (559)538-1670 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 to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Agreement and Order No. 983, 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 producers and handlers of
pistachios operating within the production area, and a public member.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This proposed
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 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. Under the Order now in effect, pistachio handlers
are subject to assessments. Funds to administer the Order are derived
from such assessments. It is intended that the assessment rate would be
applicable to all assessable pistachios for the 2020-21 production year
and continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed no later than 20 days after the date of the
entry of the ruling.
This proposed rule would increase the assessment rate from $0.00010
per pound of assessed weight pistachios, the rate that was established
for the 2017-18 and subsequent production years, to $0.00015 per pound
of assessed weight pistachios for the 2020-21 and subsequent production
years.
The Order authorizes the Committee, with the approval of USDA, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. The members are familiar with the
Committee's needs and with the costs of goods and services in their
local area and are in a position to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2017-18 and subsequent production years, the Committee
recommended, and USDA approved, an assessment rate of $0.00010 per
pound of assessed weight pistachios. That assessment rate continues in
effect from production year to production year unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
[[Page 62616]]
The Committee met on July 14, 2020, and unanimously recommended
expenditures of $679,800 and an assessment rate of $0.00015 per pound
of assessed weight pistachios handled for the 2020-21 and subsequent
production years. In comparison, last year's budgeted expenditures were
$677,100. The proposed assessment rate of $0.00015 is $0.00005 higher
than the rate currently in effect. The Committee recommended increasing
the assessment rate to provide adequate income, along with California
Pistachio Research Board (CPRB) management income and reserve funds, to
cover all of the Committee's budgeted expenses for the 2020-21
production year. Funds in the reserve are expected to be approximately
$197,585 at the end of the 2020-21 production year, which is within the
Order's requirement of carry-over no more than approximately two
production years' budgeted expenses.
The major expenditures recommended by the Committee for the 2020-21
production year include $74,800 for various administrative expenses,
$10,000 for compliance expenses, $346,500 for salaries and related
employee expenses, $125,000 for research, and $80,000 for a contingency
fund. Budgeted expenses for these items for the 2019-20 production year
were $48,900 for various administrative expenses, $10,000 for
compliance expenses, $336,500 for salaries and related employee
expenses, $125,000 for research, and $80,000 for a contingency fund.
The Committee derived the recommended assessment rate by
considering anticipated expenses, an estimated crop of 950 million
pounds of assessed weight pistachios, and the amount of funds available
in the authorized reserve. Income derived from handler assessments,
calculated at $142,500 (950,000,000 pounds assessed weight pistachios
multiplied by $0.00015 assessment rate), along with CPRB management
income ($175,200), and funds from the Committee's authorized reserve
($559,685), would be adequate to cover budgeted expenses of $679,800.
Funds in the reserve are estimated to be $197,585 at the end of the
2020-21 production year ($142,500 plus $175,200 plus $559,685 minus
$679,800 equals $197,585).
The assessment rate proposed in this rule would continue in effect
indefinitely unless modified, suspended, or terminated by USDA upon
recommendation and information submitted by the Committee or other
available information.
Although this assessment rate would be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
production year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2020-21 production year
budget, and those for subsequent production years, would be reviewed
and, as appropriate, approved by USDA.
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 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 approximately 21 handlers subject to the regulation under
the Order, and approximately 1,501 producers of pistachios in the
production area. Small agricultural producers are defined by the Small
Business Administration (SBA) as those having annual receipts of less
than $1,000,000, and small agricultural service firms have been defined
as those whose annual receipts are less than $30,000,000 (13 CFR
121.201).
According to the National Agricultural Statistics Service (NASS),
the national average producer price for pistachios for the 2018
production year was $2.65 per pound. Committee data indicates 2018-19
pistachio total production was 746,858,150 pounds. The total 2018 value
of the pistachio crop was $1,979,174,098 (746,858,150 pounds times
$2.65 per pound equals $1,979,174,098). Dividing the crop value by the
estimated number of producers (1,501) yields an estimated average
receipt per producer of $1,318,570 which is above the SBA threshold for
small producers.
According to USDA Market News data, the reported terminal price for
2018 for pistachios ranged between $155.00 to $165.00 per 25-pound
carton. The average of this range is $160.00 ($155.00 plus $165.00
divided by 2 equals $160.00). Dividing the average value by the 25-
pound carton yields an estimated average price per pound of $6.40
($160.00 average value for 25-pound carton divided by 25). Multiplying
the 2018-19 pistachio total production of 746,858,150 pounds by the
estimated average price per pound of $6.40 equals $4,779,892,160.
Dividing this figure by 21 regulated handlers yields estimated
average annual handler receipts of $227,613,912, which is above the SBA
threshold for small agricultural service firms. Therefore, using the
above data, and assuming a normal distribution, the majority of
producers and handlers of pistachios may be classified as large
entities.
The proposed assessment rate of $0.00015 that the committee
approved complies with section 983.71(b) of the Order which states that
any proposed assessment rate must not exceed one-half of one percent of
the average price received by producers in the preceding production
year. The average price received by producers in the preceding
production year was $2.65 per pound of pistachios. Thus, $2.65 times
0.5 percent equals $0.01325, which is greater than the assessment rate
increase of $0.00015.
This proposal would increase the assessment rate collected from
handlers for the 2020-21 and subsequent production years from $0.00010
to $0.00015 per pound assessed weight pistachios. The Committee
unanimously recommended 2020-21 expenditures of $679,800 and an
assessment rate of $0.00015 per pound assessed weight pistachios. The
proposed assessment rate of $0.00015 per pound assessed weight
pistachios is $0.00005 higher than the current rate. The volume of
assessable pistachios for the 2020-21 production year is estimated to
be 950 million pounds. Thus, the $0.00015 per pound assessed weight
pistachios should provide $142,500 in assessment income (950,000,000
multiplied by $0.00015). Income derived from handler assessments, along
with CPRB management income and funds from the Committee's authorized
reserve, would be adequate to cover budgeted expenses for the 2020-21
production year.
The major expenditures recommended by the Committee for the 2020-21
production year include $74,800 for various administrative expenses,
$10,000 for compliance
[[Page 62617]]
expenses, $346,500 for salaries and related employee expenses, $125,000
for research, and $80,000 for a contingency fund. Budgeted expenses for
these items in the 2019-20 production year were $48,900, $10,000,
$336,500, $125,000, and $80,000 respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to provide adequate income to cover the
Committee's budgeted expenses for the 2020-21 production year while
maintaining its financial reserve. This action would maintain the
Committee's reserve balance at a level that the Committee believes is
appropriate and meets the requirements of the Order.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
maintaining the current assessment rate of $0.00010 per pound assessed
weight pistachios, and increasing the assessment rate by a different
amount. However, the Committee determined that the recommended
assessment rate would fully fund budgeted expenses and avoid drawing
down reserves at an unsustainable rate.
This proposed rule would increase 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, these costs
would be offset by the benefits derived by the operation of the Order.
The Committee's meeting was widely publicized throughout the
pistachio industry. All interested persons were invited to attend the
meeting and encouraged to participate in Committee deliberations on all
issues. Like all Committee meetings, the July 14, 2020, meeting was a
public meeting, and all entities, both large and small, were able to
express views on this issue. Interested persons are invited to submit
comments on this proposed rule, including the regulatory and
information collection impacts of this action on small businesses.
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 the OMB and assigned OMB No. 0581-0215,
Pistachios Grown in California, Arizona, and New Mexico. No changes in
those requirements would be necessary as a result of this proposed
rule. 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 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.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
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 45-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 983
Marketing agreements, Pistachios, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 983 as follows:
PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO
0
1. The authority citation for 7 CFR part 983 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 983.253 is revised to read as follows:
Sec. 983.253 Assessment rate.
On and after September 1, 2020, an assessment rate of $0.00015 per
pound is established for California, Arizona, and New Mexico
pistachios.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2020-21687 Filed 10-2-20; 8:45 am]
BILLING CODE P