[Federal Register Volume 59, Number 38 (Friday, February 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4234]
[[Page Unknown]]
[Federal Register: February 25, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 982
[Docket No. FV93-982-2IFR]
Filberts/Hazelnuts Grown in Oregon and Washington; Establishment
of Interim Final and Final Free and Restricted Percentages for the
1993-94 Marketing Year
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule establishes interim final and final free and
restricted percentages for domestic inshell filberts/hazelnuts for the
1993-94 marketing year under the Federal marketing order for filberts/
hazelnuts grown in Oregon and Washington. The percentages allocate the
amounts of domestically produced filberts/hazelnuts which may be
marketed in domestic, export and other outlets. The percentages are
intended to stabilize the supply of domestic inshell filberts/hazelnuts
in order to meet the limited domestic demand for such filberts/
hazelnuts and provide reasonable returns to producers. This rule was
recommended by the Filbert/Hazelnut Marketing Board (Board), which is
the agency responsible for local administration of the order.
DATES: Effective on February 25, 1994. Comments which are received by
March 28, 1994 will be considered prior to any finalization of the
interim final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule to: Docket Clerk, Fruit and Vegetable Division,
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456.
Three copies of all written material shall be submitted, and they will
be made available for public inspection at the office of the Docket
Clerk during regular business hours. All comments should reference the
docket number, date and page number of this issue of the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson, Marketing
Specialist, Northwest Marketing Field Office, Fruit and Vegetable
Division, AMS, USDA, 1220 SW Third Ave., room 369, Portland, OR 97204;
telephone (503) 326-2724 or Kathleen M. Finn, Marketing Specialist,
Marketing Order Administration Branch, Fruit and Vegetable Division,
AMS, USDA, room 2524-S, P.O. Box 96456, Washington, DC 20090-6456;
telephone: (202) 720-1509.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Agreement and Order No. 982 (7 CFR part 982), both as
amended, regulating the handling of filberts/hazelnuts grown in Oregon
and Washington. This 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 interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. It is intended that this action apply to
all merchantable filberts/hazelnuts handled during the 1993-94
marketing year. The marketing year covers the period July 1, 1993
through June 30, 1994. This rule will not preempt any state or local
laws, regulations, or policies, unless they present an irreconcilable
conflict with this action.
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 in equity to review the
Secretary's ruling on the petition, provided a bill in equity 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 Administrator of the Agricultural Marketing
Service (AMS) has considered the economic impact of this action 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 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 1,000 producers of filberts/hazelnuts in
the production area and approximately 25 handlers subject to regulation
under the marketing order. 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
$3,500,000. The majority of handlers and producers of filberts/
hazelnuts may be classified as small entities.
The Board's recommendation and this interim final rule are based on
requirements specified in the order. This rule will establish the
amount of inshell filberts/hazelnuts that can be marketed in domestic
markets. The domestic outlets for this commodity are characterized by
limited demand, and the establishment of interim final and final free
and restricted percentages will benefit the industry by promoting
stronger marketing conditions and stabilizing prices and supplies, thus
improving grower returns.
The Board is required to meet prior to September 20 of each
marketing year to compute an inshell trade demand and preliminary free
and restricted percentages, if the use of volume regulation is
recommended during the season. The order prescribes formulas for
computing the inshell trade demand, as well as preliminary, interim
final, and final percentages. The inshell trade demand establishes the
amount of inshell filberts/hazelnuts the market can utilize throughout
the season, and the percentages release the volume of filberts/
hazelnuts necessary to meet the inshell trade demand. The preliminary
percentages provide for the release of 80 percent of the inshell trade
demand. The interim final percentages release 100 percent of the
inshell trade demand. The inshell trade demand equals the average of
the preceding three ``normal'' years' trade acquisitions of inshell
filberts/hazelnuts, rounded to the nearest whole number. The Board may
increase such estimate by no more than 25 percent, if market conditions
warrant an increase. The final free and restricted percentages release
an additional 15 percent of the average of the preceding three years'
trade acquisitions of inshell filberts/hazelnuts for desirable
carryout.
The preliminary free and restricted percentages make available
portions of the filbert/hazelnut crop which may be marketed in domestic
inshell markets (free) and exported, shelled, or otherwise disposed of
(restricted) early in the 1993-94 season. The preliminary free
percentage is expressed as a percentage of the total supply subject to
regulation and is based on preliminary crop estimates. The majority of
domestic inshell filberts/hazelnuts are marketed in October, November,
and December. By November, the marketing season is well under way.
At its August 26, 1993, meeting, the Board announced preliminary
free and restricted percentages of 7 percent and 93 percent,
respectively, to release 80 percent of the inshell trade demand. The
purpose of releasing only 80 percent of the inshell trade demand under
the preliminary percentage is to guard against underestimates of crop
size. The preliminary restricted percentage is 100 percent minus the
free percentage.
On or before November 15, the Board must meet again to recommend
interim final percentages and final percentages. The Board uses current
crop estimates to calculate the interim final and final percentages.
The interim final percentages are calculated in the same way as the
preliminary percentages and release 100 percent of the inshell trade
demand previously computed by the Board for the marketing year. Final
free and restricted percentages release an additional 15 percent of the
average of the preceding three years' trade acquisitions to ensure an
adequate carryover into the following season. The final free and
restricted percentages must be effective at least 30 days prior to the
end of the marketing year (July 1 through June 30), or earlier, if
recommended by the Board and approved by the Secretary. In addition,
revisions in the marketing policy can be made until February 15 of each
marketing year.
In accordance with order provisions, the Board met on November 10,
1993, reviewed and approved an amended marketing policy and recommended
the establishment of interim final and final free and restricted
percentages. Interim final percentages were recommended at 12 percent
free and 88 percent restricted, and final free and restricted
percentages were recommended at 13 percent and 87 percent. The interim
final percentages make an additional 807 tons of product available for
the domestic inshell market. The interim final marketing percentages
are based on the industry's final production estimates and release
3,903 tons to the domestic inshell market from the 1993 crop. The final
marketing percentages release an additional 605 tons from the 1993 crop
for domestic use. Thus, a total of 4,508 tons of product will be
available from the 1993 crop for domestic use when the final
percentages are established. The Oregon Agricultural Statistics Service
provided an early estimate of 39,000 tons total production for the
Oregon and Washington area. However, a handler survey conducted by the
Board provided a more current estimate of 37,700 tons total production
for the area. Therefore, the Board voted to unanimously accept the more
current estimate of 37,700 tons.
Although the crop is large, the Board determined that the inshell
domestic market conditions will allow more product without depressing
the market and recommended immediate release of the additional 15
percent (the final percentages). The Board believes that the immediate
release of the final percentages will benefit the industry with
increased returns to growers and more product available for consumers.
The marketing policy of the marketing order states that the final
percentages must be effective at least 30 days prior to the end of the
marketing year, or earlier. The Board has recommended immediate release
of the final percentages, in accordance with the authority of the
marketing policy. The marketing policy also requires that procedurally,
the Board recommend interim final and final percentages. Therefore, the
interim final percentages have been established even though they will
not be utilized this marketing season.
The marketing percentages are based on the Board's production
estimates and the following supply and demand information for the 1993-
94 marketing year:
------------------------------------------------------------------------
Tons
------------------------------------------------------------------------
Inshell Supply
(1) Total production (Filbert/Hazelnut Marketing Board handler
survey estimate).............................................. 37,700
(2) Less substandard, farm use (disappearance)................. 2,700
(3) Merchantable production (the Board's adjusted crop
estimate)..................................................... 35,000
(4) Plus undeclared carryin as of July 1, 1993, subject to
regulation.................................................... 338
(5) Supply subject to regulation (Item 3 plus Item 4)..........
35,338
Inshell Trade Demand
(6) Average trade acquisitions of inshell filberts for three
prior years................................................... 4,033
(7) Increase to encourage increased sales (20 percent)......... 807
(8) Less declared carryin as of July 1, 1993, not subject to
regulation.................................................... 937
(9) Adjusted Inshell Trade Demand.............................. 3,903
(10) 15 percent of the average trade acquisitions of inshell
filberts for three prior years (Item 6)....................... 605
(11) Adjusted Inshell Trade Demand plus 15 percent (Item 9 plus
Item 10)...................................................... 4,508
------------------------------------------------------------------------
Percentages Free Restricted
(12) Interim final percentages (Item 9 divided by
Item 5) x 100................................... 11 89
(13) Final percentages (Item 11 divided by Item 5)
x 100............................................ 13 87
In addition to complying with the provisions of the marketing
order, the Board also considers the Department's 1982 ``Guidelines for
Fruit, Vegetable, and Specialty Crop Marketing Orders'' (Guidelines)
when making its computations in the marketing policy. This volume
control regulation provides a method to collectively limit the supply
of inshell filberts/hazelnuts available for sale in domestic markets.
The Guidelines provide that this primary market have available a
quantity equal to 110 percent of recent years' sales in those outlets
before secondary market allocations are approved. This provides for
plentiful supplies for consumers and for market expansion while
retaining the mechanism for dealing with oversupply situations. An
additional increase of 20 percent (807 tons) has been included in the
calculations used in determining the inshell trade demand. The
established final percentages, will make available 4,508 tons from the
1993 crop plus 937 tons of declared carryin which is 135 percent of
prior years' sales, thus exceeding the goal of the Guidelines.
Based on the above, the Administrator of the AMS has determined
that this interim final rule will not have a significant economic
impact on a substantial number of small entities. Written comments,
timely received in response to this action, will be considered before
finalization of this rule.
After consideration of all available information, it is found that
the establishment of interim final and final free and restricted
percentages, 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, upon
good cause, that it is impracticable, unnecessary, and contrary to the
public interest to give preliminary notice prior to putting this rule
into effect, and 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 1993-94 marketing year began July 1,
1993, and the percentages established herein apply to all merchantable
filberts/hazelnuts handled from the beginning of the crop year; (2)
handlers are aware of this action, which was recommended at an open
Board meeting, and need no additional time to comply with these
percentages which release more filberts/hazelnuts than the preliminary
percentages; and (3) interested persons are provided a 30-day comment
period in which to respond. All comments timely received will be
considered prior to finalization of this action.
List of Subjects in 7 CFR Part 982
Filberts, Hazelnuts, Marketing agreements, Nuts, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 982 is
amended as follows:
PART 982--FILBERTS/HAZELNUTS GROWN IN OREGON AND WASHINGTON
1. The authority citation for 7 CFR part 982 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 982.242 is added to read as follows:
(Note: The following section will not be published in the Code of
Federal Regulations.)
Section 982.242 Free and restricted percentages--1993-94 marketing
year.
(a) The interim final free and restricted percentages for
merchantable filberts/hazelnuts for the 1993-94 marketing year shall be
11 and 89 percent, respectively.
(b) The final free and restricted percentages for merchantable
filberts/hazelnuts for the 1993-94 marketing year shall be 13 and 87
percent, respectively.
Dated: February 18, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-4234 Filed 2-24-94; 8:45 am]
BILLING CODE 3410-02-P
