[Federal Register Volume 60, Number 119 (Wednesday, June 21, 1995)]
[Rules and Regulations]
[Pages 32262-32264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15107]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 981
[Docket No. FV95-981-1IFR]
Almonds Grown in California; Expenses and Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule authorizes expenditures and
establishes an assessment rate under Marketing Order No. 981 for the
1995-96 crop year. Authorization of this budget enables the Almond
Board of California (Board) to incur expenses that are reasonable and
necessary to administer the program. Funds to administer this program
are derived from assessments on handlers.
DATES: Effective beginning July 1, 1995, through June 30, 1996.
Comments received by July 21, 1995, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, DC 20090-6456, FAX # (202) 720-5698. Comments
should reference the docket 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.
FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing Assistant,
California Marketing Field Office, Fruit and Vegetable Division, AMS,
USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721,
telephone (209) 487-5901, or FAX # (209) 487-5906; 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.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Agreement and Order No. 981 (7 CFR part 981), both as
amended, hereinafter referred to as the ``order,'' regulating the
handling of almonds grown in California. 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 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. Under the provisions of the marketing
order now in effect, California almonds are subject to assessments. It
is intended that the assessment rate as issued herein will be
applicable to all assessable almonds handled during the 1995-96 crop
year, which begins July 1, 1995, and ends June 30, 1996. This interim
final 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), 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 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 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 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
[[Page 32263]] California almond producers and handlers may be
classified as small entities.
The budget of expenses for the 1995-96 crop year was prepared by
the Board, the agency responsible for local administration of the
marketing order, and submitted to the Department for approval. 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 budget was formulated and
discussed in a public meeting. Thus, all directly affected persons have
had an opportunity to participate and provide input.
The assessment rate recommended by the Board was derived by
dividing anticipated expenses by expected receipts of California
almonds. Because that rate will be applied to handlers' actual
receipts, a rate must be established that will provide sufficient
income to pay the Board's budgeted expenses.
The Board met on May 12, 1995, and unanimously recommended a 1995-
96 budget of $4,952,591, as compared to the $5,235,262 ultimately
budgeted for the previous year. For the 1994-95 year, the Board
initially recommended, and the Department approved, expenditures
totalling $9,435,262. Of that total amount, $6.575 million was budgeted
for promotional activities and $300,000 was intended to be added to the
Board's monetary reserve. The assessment rate for the 1994-95 crop year
was initially set at 2.25 cents per kernel pound of almonds. However,
because of uncertainty created by legal decisions regarding the Board's
former advertising and promotion program, the Board ultimately
postponed certain advertising activities and recommended reducing its
assessment rate on handlers to .25 cents per pound. As approved by the
Department, budgeted expenditures for promotional activities were
reduced to $2.675 million and the Board curtailed its plans to add
$300,000 to its reserve.
For the 1995-96 year, the Board has budgeted $2.358 million for a
line item entitled information and research, with the bulk of these
funds targeted for public relations, food service and industrial
promotional programs, and research. In addition, the Board has budgeted
$150,000 for China and Indonesia Consumer Education, thus maintaining a
presence in foreign markets. Unlike the 1994-95 crop year, the Board
will not be receiving any funds through the marketing promotion program
conducted by the Department's Foreign Agricultural Service for the
1995-96 crop year.
Items which have decreased compared to those budgeted for 1994-95
(in parentheses) are: Salaries, $598,251 ($795,318), employee benefits,
$37,391 (50,000), retirement benefits, $44,869 ($64,000), payroll
taxes, $45,766 ($55,400), travel, $75,000 ($100,000), meetings, $13,000
($35,000), office rent, $70,000 ($90,000), storage rent, $4,000
($5,000), equipment rent, $3,000 ($5,000), security, $1,000 ($2,500),
utilities, $12,000 ($13,500), alliances with other organizations to
provide information on almonds to consumers, $11,000 ($20,000),
econometric model and statistical analysis, $10,000 ($40,000), program
accountability analyses to assess the effectiveness of the advertising
and market development programs, $100,000 ($150,000), furniture and
fixtures, $0 ($10,000), and computers and software, $20,000 ($25,000).
Budget items for 1995-96 which have increased compared to those
budgeted for 1994-95 (in parentheses) are: Research conference, $30,000
($25,000), contract labor and consultants, $55,000 ($30,000),
compliance audits and analysis, $95,000 ($75,000), data processing,
$10,000 ($6,000), postage and delivery, $40,000 ($32,000), office
supplies, $17,500 ($15,000), printing, $17,500 ($12,000), repairs and
maintenance, $15,500 ($12,500), publications, $15,500 ($3,500), dues,
subscriptions, and registration fees, $12,000 ($7,500), newsletters and
releases, $45,000 ($25,000), production research, $512,650 ($489,134),
crop estimate, $90,736 ($85,600), acreage survey, $37,429 ($35,310),
nutrition and issues research, $175,000 ($50,000), vehicles, $20,000
($15,000), office equipment, $20,000 ($15,000), and the addition of
$25,000 for aflatoxin monitoring.
The Board also unanimously recommended an assessment rate of .75
cents per kernel pound, .50 cents higher than last year. Revenues for
the 1995-96 crop year are expected to be $3,096,000 from administrative
assessments (based on an estimate of 412.8 million pounds of marketable
almonds), $100,000 from interest, and $16,000 from the almond industry
conference, for a total of $3,212,000. The Board plans on using money
from its reserve to meet the estimated expenses of $4,952,591 for the
year. In addition, any unexpended funds from 1995-96 may be carried
over to cover expenses during the first four months of the 1996-97 crop
year.
This action will impose an obligation on handlers to pay
assessments. The assessments are uniform for all handlers. The
assessment cost will be offset by the benefits derived by the operation
of the marketing order.
Therefore, the Administrator of the AMS has determined that this
action will not have a significant economic impact on a substantial
number of small entities.
After consideration of all relevant matter 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 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 Board needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; (2) the crop year
begins on July 1, 1995, 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 budget actions issued in past years;
and (4) this interim final rule provides a 30-day comment period, and
all comments timely received will be considered prior to finalization
of this rule.
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 CFR part 981 is
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.
Note: This section will not appear in the Code of Federal
Regulations.
2. A new Sec. 981.342 is added to read as follows:
Sec. 981.342 Expenses and assessment rate.
Expenses of $4,952,591 by the Almond Board of California are
authorized for the crop year ending June 30, 1996. An assessment rate
for the crop year payable by each handler in [[Page 32264]] accordance
with Sec. 981.81 is fixed at .75 cents per kernel pound of almonds.
Dated: June 15, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-15107 Filed 6-20-95; 8:45 am]
BILLING CODE 3410-02-P
