Almonds Grown in California; Assessment Rate

DEPARTMENT OF AGRICULTURE

7 CFR Part 981

[Docket No. FV96-981-2 FIR]

Almonds Grown in California; Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of an interim final rule

that established an assessment rate for the Almond Board of California

(Board) under Marketing Order No. 981 for the 1996-97 and subsequent

crop years. The Board is responsible for local administration of the

marketing order which regulates the handling of almonds grown in

California. Authorization to assess almond handlers enables the Board

to incur expenses that are reasonable and necessary to administer the

program.

EFFECTIVE DATE: July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Tershirra Yeager, Marketing Assistant,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room 2522-S, Washington, DC 20090-6456,

telephone (209) 720-5127, or FAX # (202) 720-5698; or Kathleen M. Finn,

Marketing Specialist, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O. Box 96456, room 2522-S, Washington,

DC 20090-6456, telephone (202) 720-1509 or FAX # (202) 720-5698. Small

businesses may request information on compliance with this regulation

by contacting: Jay Guerber, Marketing Order Administration Branch,

Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S,

Washington, D.C. 20090-6456; telephone: (202) 720-2491, Fax# (202) 720-

5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement and Order No. 981 (7 CFR part 981), regulating the handling

of almonds grown in California. The marketing agreement and order are

effective under the Agricultural Marketing Agreement Act of 1937, as

amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''

The Department is issuing this rule in conformance with Executive

Order 12866.

This rule has been reviewed under Executive Order 12988, Civil

Justice Reform. Under the marketing order now in effect, California

almonds are subject to assessments. Funds to administer the order are

derived from such assessments. It is intended that the assessment rate

as issued herein will be applicable to all assessable almonds beginning

July 1, 1996, and continuing until amended, suspended or terminated.

This rule will not preempt any State or local laws, regulations, or

policies, unless they present an irreconcilable conflict with this

rule.

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 the Secretary 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 the Secretary 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 the

Secretary's ruling on the petition, provided an action is filed not

later than 20 days after the date of the entry of the ruling.

Pursuant to the requirements set forth in the Regulatory

Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has

considered the economic impact of this rule on small entities.

The purpose of the RFA is to fit regulatory actions to the scale of

business 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

[[Page 49955]]

behalf. Thus, both statutes have small entity orientation and

compatibility.

There are approximately 7,000 producers of California almonds under

this marketing order, and approximately 115 handlers. Small

agricultural producers have been defined by the Small Business

Administration (13 CFR 121.601) as those having annual receipts of less

than $500,000, and small agricultural service firms are defined as

those whose annual receipts are less than $5,000,000. The majority of

California almond producers and handlers may be classified as small

entities.

The California almond marketing order provides authority for the

Board, with the approval of the Department, to formulate an annual

budget of expenses and collect assessments from handlers to administer

the program. The members of the Board are producers and handlers of

California almonds. They are familiar with the Board's needs and with

the costs of goods and services in their local area and are thus in a

position to formulate an appropriate budget. The assessment rate is

formulated and discussed in a public meeting. Thus, all directly

affected persons have had an opportunity to participate and provide

input.

The Board met on May 10, 1996, and unanimously recommended 1996-97

crop year expenditures of $6,426,500 and an assessment rate of $0.01

per pound of almonds. In comparison, last year's budgeted expenditures

were $4,952,591 with the assessment rate of $0.75 per pound. Major

expenditures recommended by the Board for the 1996-97 crop year include

$3,333,500 for information and research, $731,534 for salaries,

$660,500 for international programs, $558,131 for production research,

$97,470 for travel, and $91,160 for crop estimate. Budgeted expenses

for these items in 1995-96 were $2,358,000, $598,251, $150,000,

$512,650, $75,000, and $90,736, respectively.

The assessment rate recommended by the Board was derived by

dividing anticipated expenses by expected receipts of California

almonds. Almond shipments for the year are estimated at 504.4 million

pounds which should provide $5.044 million in assessment income. Income

derived from handler assessments, interest, a production research

conference, and the Market Access Program, along with funds derived

from the Board's authorized reserve, will be adequate to cover budgeted

expenses. Any unexpended funds from the 1996-97 crop year may be

carried over to cover expenses during the first four months of the

1997-98 crop year.

An interim final rule regarding this action was published in the

July 31, 1996, issue of the Federal Register (61 FR 39841). That rule

provided for a 30-day comment period. No comments were received.

While this rule may impose some additional costs on handlers, the

costs are in the form of uniform assessments on all handlers. Some of

the additional costs may be passed on to producers. However, these

costs will be offset by the benefits derived by the operation of the

marketing order. Therefore, the AMS has determined that this rule will

not have a significant economic impact on a substantial number of small

entities.

The assessment rate established in this rule will continue in

effect indefinitely unless modified, suspended, or terminated by the

Secretary upon recommendation and information submitted by the Board or

other available information.

Although this assessment rate is effective for an indefinite

period, the Board will continue to meet prior to or during each fiscal

period to recommend a budget of expenses and consider recommendations

for modification of the assessment rate. The dates and times of Board

meetings are available from the Board or the Department. Board meetings

are open to the public and interested persons may express their views

at these meetings. The Department will evaluate Board recommendations

and other available information to determine whether modification of

the assessment rate is needed. Further rulemaking will be undertaken as

necessary. The Board's 1996-97 budget and those for subsequent fiscal

periods will be reviewed and, as appropriate, approved by the

Department.

After consideration of all relevant material presented, including

the information and recommendations submitted by the Board and other

available information, it is hereby found that this rule, as

hereinafter set forth, will tend to effectuate the declared policy of

the Act.

Pursuant to 5 U.S.C. 553, it is also found and determined that good

cause exists for not postponing the effective date of this action until

30 days after publication in the Federal Register because: (1) The

Board needs to have sufficient funds to pay its expenses which are

incurred on a continuous basis; (2) the crop year began on July 1,

1996, and the marketing order requires that the rate of assessment for

the crop year apply to all assessable California almonds handled during

the crop year; (3) handlers are aware of this action which was

unanimously recommended by the Board at a public meeting and is similar

to other assessment rate actions issued in past years; and (4) an

interim final rule was published on this action, providing a 30-day

comment period, and no comments were received.

List of Subjects in 7 CFR Part 981

Almonds, Marketing agreements, Nuts, Reporting and recordkeeping

requirements.

PART 981--ALMONDS GROWN IN CALIFORNIA

Accordingly, the interim final rule amending 7 CFR Part 981 which

was published at 61 FR 39841 on July 31, 1996, is adopted as a final

rule without change.

Dated: September 16, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-24455 Filed 9-23-96; 8:45 am]

BILLING CODE 3410-02-P