Almonds Grown in California; Modification of Regulations; Withdrawal, 51270-51271 [2022-17992]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Proposed Rules]
[Pages 51270-51271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17992]


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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.

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Federal Register / Vol. 87, No. 161 / Monday, August 22, 2022 / 
Proposed Rules

[[Page 51270]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Doc. No. AMS-SC-21-0076; SC21-981-1]


Almonds Grown in California; Modification of Regulations; 
Withdrawal

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Withdrawal of proposed rule.

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SUMMARY: The Agricultural Marketing Service (AMS) withdraws a proposed 
rule recommended by the Almond Board of California (Board) that would 
have amended administrative requirements in the California Almond 
Marketing Order's (Order) roadside stand exemption, credit for market 
promotion activities, quality control, exempt dispositions, and 
interest and late charges provisions. In addition, the rule proposed to 
stay two sections of the administrative requirements that define almond 
butter and stipulate disposition in reserve outlets by handlers 
established under the Order. After reviewing and considering the 
comments received, the proposed rule is being withdrawn.

DATES: As of August 22, 2022, the proposed rule published on February 
22, 2022, at 87 FR 6455, is withdrawn.

FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist, 
or Gary Olson, Regional Director, Western Region Field Office, Market 
Development Division, Specialty Crops Program, AMS, USDA; Telephone: 
(559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] 
or [email protected].

SUPPLEMENTARY INFORMATION: This withdrawal 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 of almonds operating within the production area.
    This action withdraws a proposed rule published in the Federal 
Register on February 22, 2022 (87 FR 6455), to revise several sections 
of the Order's administrative requirements. The proposed rule comment 
period was reopened to provide for an additional 15 days of public 
comment in a notice published in the Federal Register on June 22, 2022 
(87 FR 37240). The proposed rule would have amended requirements in the 
Order's roadside stand exemption, credit for market promotion 
activities, quality control, exempt dispositions, and interest and late 
charges provisions. In addition, it proposed to stay two sections of 
the administrative requirements that define almond butter and stipulate 
disposition in reserve outlets by handlers. The proposed changes were 
intended to modify the Order's requirements to reflect updates in 
industry practices and to facilitate the orderly administration of the 
Order.
    During the proposed rule's initial 60-day comment period, four 
comments were received. All the comments may be viewed on the internet 
at https://www.regulations.gov. Of the comments received, two comments 
favored the proposed rule, one comment was neutral, and one was 
opposed. The comment opposed to the action was submitted by a large 
cooperative marketing association which also contained embedded 
comments from four individual growers. The opposing comments 
specifically objected to the proposed revision of Sec.  981.441, credit 
for market promotion activities, including paid advertising. Further, 
the opposing comments questioned the Board's administrative process in 
recommending the proposed changes to AMS.
    As a result of the comments received during the initial 60-day 
comment period, AMS decided to reopen the comment period for 15 days to 
allow for additional comments on the proposed amendments to the 
regulations. In the reopening announcement, AMS indicated that it is 
specifically looking for comments on provisions related to credit-back 
administrative requirements and further comment on perceived issues 
related to the formulation of the recommendations for that provision.
    During the proposed rule's reopened 15-day comment period, AMS 
received 1,155 comments, after subtracting 19 duplicate comment 
submissions. All comments may be viewed on the internet at https://www.regulations.gov. Of the 1,155 comments received, roughly 98 percent 
(1,133) were opposed, 0.17 percent (2) were in support, and 1.9 percent 
(22) were either non-specific or non-substantive with regards to the 
merits of the proposal.
    During the reopened comment period, commenters identified adverse 
effects anticipated to both consumers and producers if the proposal 
were effectuated. Approximately 93 percent of all comments cited the 
proposed rule's negative impact on the ability of consumers to buy raw 
almonds through e-commerce. They claimed the proposed rule, if 
effectuated, would prevent them from purchasing raw almonds online, 
directly from the almond producer. These commenters represent consumers 
of raw almonds located in California and across the United States in 
approximately 46 states, and Bermuda. Over half of all commenters 
reference the proposed changes to the Roadside stand exemption (Sec.  
981.413) and Handler Definition (Sec.  981.13). These comments stated 
that the proposed changes in each section will likely prevent consumers 
from being able to access raw almonds from producers through direct e-
commerce sales transactions. Almost 64 percent described the 
disproportionate economic impact that the proposed rule would have on 
small growers. Some commenters expressed that they lacked notice of the 
rulemaking action altogether or described general dissatisfaction with 
the rulemaking process.
    The two comments expressing support for the proposed rule were 
general. One commenter expressed support for excluding e-commerce under 
the roadside stand exemption. The second comment supported the proposed 
change and expressed concern that potentially unsafe products are being 
sold online in the open market.
    After reviewing and considering all comments received during both 
public comment periods, AMS has determined that the proposed rule to 
modify

[[Page 51271]]

administrative requirements for almonds grown in California should be 
withdrawn. AMS intends to conduct outreach with California almond 
industry stakeholders on the concerns expressed during the public 
comment periods. Accordingly, the proposed rule to modify the 
administrative rules and regulations in the Order that published in the 
Federal Register on February 22, 2022, (87 FR 6455) is hereby 
withdrawn.

List of Subjects in 7 CFR Part 981

    Marketing agreements, Nuts, Reporting and recordkeeping 
requirements.

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

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-17992 Filed 8-19-22; 8:45 am]
BILLING CODE P