Almonds Grown in California; Revision of Reporting Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV99-981-1 PR]

Almonds Grown in California; Revision of Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on a revision to the

administrative rules and regulations of the California almond marketing

order (order) pertaining to reporting requirements. This rule also

announces the Agricultural Marketing Service's (AMS) intention to

request a revision to the currently approved information collection

requirements issued under the order. The almond marketing order

regulates the handling of almonds grown in California and is

administered locally by the Almond Board of California (Board). Under

the terms of the order, almond handlers are required to report to the

Board, on ABC Form 1, the total adjusted kernel weight of almonds

received by them for their own account within seven prescribed

reporting periods per year. This rule would change the reporting

procedures to require handlers to report this information to the Board

monthly, or 12 times per year. Additional, more accurate and timely

information would thus be available to the Board and industry,

facilitating improved decision making and program administration.

DATES: Comments must be received by March 8, 1999.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent to the Docket Clerk,

Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456,

Washington, DC 20090-6456; Fax: (202) 205-6632; or E-mail:

[email protected]. All comments should reference the docket

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.

FOR FURTHER INFORMATION CONTACT: Martin Engeler, Assistant Regional

Manager, California Marketing Field Office, Marketing Order

Administration Branch, F&V, AMS, USDA, 2202 Monterey Street, suite

102B, Fresno, California 93721; telephone: (209) 487-5901, Fax: (209)

487-5906; or George Kelhart, Technical Advisor, Marketing Order

Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room

2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)

690-3919, Fax: (202) 205-6632. Small businesses may request information

on complying with this regulation, or obtain a guide on complying with

fruit, vegetable, and specialty crop marketing agreements and orders by

contacting Jay Guerber, Marketing Order Administration Branch, Fruit

and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 2525-S,

Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 205-

6632, or E-mail: Jay__N__G[email protected]. You may view the marketing

agreement and order small business compliance guide at the following

web site: http://www.ams.usda.gov/fv/moab.html.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing

Order No. 981, as amended (7 CFR part 981), regulating the handling of

almonds grown in California, hereinafter referred to as the ``order.''

The marketing 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 Department of Agriculture (Department) is issuing this rule in

conformance with Executive Order 12866.

This proposal has been reviewed under Executive Order 12988, Civil

Justice Reform. This rule is not intended to have retroactive effect.

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. A 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 date of the entry of the ruling.

This proposal invites comments on a revision to the administrative

rules and regulations pertaining to reporting requirements under the

California almond order. This rule would change the reporting

procedures to require handlers to report their receipts of almonds from

growers on a monthly basis rather than seven times per year as

currently prescribed. This proposal was unanimously recommended by the

Board at a meeting on September 16, 1998.

Section 981.72 of the order provides authority for the Board to

require handlers to report to the Board their receipts of almonds from

growers. Section 981.472 of the order's administrative rules and

regulations currently requires that each handler report to the Board,

on ABC Form 1, the total adjusted kernel weight of almonds, by variety,

received by it for its own account within seven prescribed reporting

periods per year. The report must be submitted to the Board by the 5th

calendar day after the close of the following applicable periods--

August 1 to August 31; September 1 to September 30; October 1 to

October 31; November 1 to November 30; December 1 to December 31;

January 1 to March 31; and April 1 to July 31.

The crop year under the almond order runs from August 1 through

July 31 of the following year. Most almonds are harvested by growers

and received by handlers during the fall months. Thus, handlers have

been required to report their almond receipts to the Board on a monthly

basis from August through December, and then just twice for the

remainder of the crop year.

[[Page 431]]

California almond production has increased significantly in recent

years. Between 1983 and 1992, the average size of the almond crop was

about 465 million pounds. Since 1992, the average size of the almond

crop has grown to about 570 million pounds. With the increase in crop

size, more almonds than anticipated are being received by handlers from

January through July. Information collected from handlers on the amount

of almonds received reflects crop size which provides a basis for the

industry's marketing decisions. Thus, the Board recommended that

handlers be required to report the amount of almonds received on a

monthly basis, or 12 times per year. This reporting change would

provide the Board with additional, more accurate and timely information

which would facilitate improved decision making and program

administration. Appropriate changes would be made to Sec. 981.472 of

the order's administrative rules and regulations.

Pursuant to requirements set forth in the Regulatory Flexibility

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

economic impact of this action 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

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 rules issued thereunder, are unique in that

they are brought about through group action of essentially small

entities acting on their own behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 115 handlers of California almonds who are

subject to regulation under the order and approximately 7,000 almond

producers in the regulated area. Small agricultural service firms have

been defined by the Small Business Administration (13 CAR 121.601) as

those having annual receipts of less than $5,000,000, and small

agricultural producers are defined as those having annual receipts of

less than $500,000.

Currently, about 58 percent of the handlers ship under $5,000,000

worth of almonds and 42 percent ship over $5,000,000 worth on an annual

basis. In addition, based on acreage, production, and grower prices

reported by the National Agricultural Statistics Service, and the total

number of almond growers, the average annual grower revenue is

approximately $156,000. In view of the foregoing, it can be concluded

that the majority of handlers and producers of California almonds may

be classified as small entities.

This rule would revise Sec. 981.472 of the order's administrative

rules and regulations to specify that handlers must submit reports

concerning receipts of almonds, on ABC Form 1, on a monthly basis, as

opposed to seven times per year. Additional, more accurate and timely

information would thus be available to the Board and industry,

facilitating improved decision making and program administration.

Requiring handlers to submit this information monthly would impose

an additional reporting burden on both small and large handlers. It is

estimated that it takes a handler 15 minutes to complete a receipt

report, or ABC Form 1. Currently, handlers must submit seven such

reports annually creating an estimated total burden per handler of 1.75

hours per year, or a total industry burden of approximately 201.25

hours per year. Requiring handlers to submit five additional reports

per year would create an additional burden per handler of 1.25 hours

per year, or an additional total industry burden of approximately

143.75 hours per year. Although this action would create an additional

burden on California almond handlers, the benefits of collecting

additional, more accurate and timely information far outweigh the

estimated increased reporting burden. The Board would be able to

utilize this information to make improved marketing decisions. This

rule would not place any additional burden on almond growers. Finally,

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.

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), the information collection requirements that are contained

in this rule are being submitted to the Office of Management and Budget

(OMB) for approval. This rule would not become effective until this

additional information collection is approved by the OMB. In addition,

the Department has not identified any relevant Federal rules that

duplicate, overlap or conflict with this proposed rule.

Other alternatives to this proposed action include not changing the

reporting requirement concerning almond receipts. However, this

alternative would leave the Board with less timely information. Another

alternative would be to revert back to the reporting requirement prior

to 1993 when handlers were required to report almond receipts twice a

month during harvest (July through November), once during December, and

then twice for the remainder of the crop year. However, the Board

believes that requiring handlers to submit the receipt report monthly

would best meet the industry's informational needs at this time.

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

September 16, 1998, meeting was a public meeting and all entities, both

large and small, were able to express their views on this issue. The

Board itself is composed of ten members, of which five are producers

and five are handlers.

Also, the Board has a number of appointed committees to review

certain issues and make recommendations to the Board. The Board's

Administrative and Finance Committee met on September 16, 1998, prior

to the Board meeting, and discussed this issue. That committee 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 information on the regulatory and informational

impacts of this action on small businesses.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), the AMS announces its intention to request a revision to a

currently approved information collection for almonds grown in

California.

Title: Almonds Grown in California, Marketing Order 981.

OMB Number: 0581-0071.

Expiration Date of Approval: August 31, 1999.

Type of Request: Revision of a currently approved information

collection.

Abstract: The information collection requirements in this request

are essential to carry out the intent of the Act, to provide the

respondents the type of service they request, and to administer the

California almond marketing order program, which has been operating

since 1950.

On September 16, 1998, the Board unanimously recommended to

increase the reporting frequency for ABC Form 1, Report of Receipts

(Secs. 981.72 and 981.472 (a)). Under the current terms of the order,

almond handlers are required to report to the Board, on ABC Form 1, the

total adjusted kernel weight of almonds received by them for their own

account within seven prescribed reporting periods per year. This change

[[Page 432]]

in reporting procedures would require handlers to report information to

the Board monthly, or 12 times per year. Additional, more accurate and

timely information would thus be available to the Board and industry,

facilitating improved decision making and program administration. This

form will be completed by 115 handlers regulated under the marketing

order. The time required to complete this form is estimated to average

15 minutes per response. Using this form increases the estimated total

annual burden on handlers by 144 hours, from 201 to 345 hours. Also,

the number of total annual responses supplied by handlers for the

entire almond information collection under the order increases from

6,022 to 6,597.

These forms require the minimum information necessary to

effectively carry out the requirements of the order, and their use is

necessary to fulfill the intent of the Act as expressed in the order.

The information collected is used only by authorized

representatives of the USDA, including AMS, Fruit and Vegetable

Programs' regional and headquarter's staff, and authorized employees of

the Board. Authorized Board employees and the industry are the primary

users of the information and AMS is the secondary user.

This proposed revision to the currently approved information

requirements issued under the order is as follows:

Estimate of Burden: Public reporting burden for this collection of

information is estimated to average 0.401 hours per response.

Respondents: California almond growers, handlers, and accepted

users of inedible almonds.

Estimated Number of Respondents: 7,658.

Estimated Number of Responses per Respondent: .86.

Estimated Total Annual Burden on Respondents: 2,656 hours.

Comments are invited on: (1) Whether the proposed collection of

information is necessary for the proper performance of the functions of

the agency, including whether the information will have practical

utility; (2) the accuracy of the agency's estimate of the burden of the

proposed collection of information, including the validity of the

methodology and assumptions used; (3) ways to enhance the quality,

utility, and clarity of the information to be collected; and (4) ways

to minimize the burden of the collection of information on those who

are to respond, including through the use of appropriate automated,

electronic, mechanical, or other technological collection techniques or

other forms of information technology.

Comments should reference OMB No. 0581-0071 and the California

Almond Marketing Order No. 981, and be sent to USDA in care of the

docket clerk at the address referenced above. All comments received

will be available for public inspection during regular business hours

at the same address.

All responses to this proposal will be summarized and included in

the request for OMB approval. All comments will also become a matter of

public record.

A 60-day comment period is provided to allow interested persons to

respond to this proposal.

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 CAR 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 Sec. 981.472, paragraph (a) is revised to read as follows:

Sec. 981.472 Report of almonds received.

(a) Each handler shall report to the Board, on or before the 5th

calendar day of each month, on ABC Form 1, the total adjusted kernel

weight of almonds, by variety, received by it for its own account for

the preceding month.

* * * * *

Dated: December 28, 1998.

Robert C. Keeney,

Deputy Administrator, Fruit and Vegetable Programs.

[FR Doc. 99-34 Filed 1-4-99; 8:45 am]

BILLING CODE 3410-02-P