[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Rules and Regulations]
[Pages 42776-42777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20354]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 981
[Docket No. FV95-981-1FIR]
Almonds Grown in California; Expenses and 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
authorizing expenditures and establishing 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.
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 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 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 of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This 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 began
July 1, 1995, and ends June 30, 1996. 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), 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
California almond producers and handlers may be classified as small
entities.
The budget of expenses and rate of assessment 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. The Board also considered carryin and reserve funds from the
prior year as well as desired carryout funds at the end of the 1995-96
crop year. 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
[[Page 42777]]
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. Based on an
initial May estimate of 412.8 million pounds of marketable almonds,
revenue for the 1995-96 crop year from administrative assessments was
expected to be $3,096,000. However, the estimate for marketable almonds
for the 1995-96 crop has decreased to 297.6 million pounds. Thus,
estimated revenue from administrative assessments has decreased to
$2.232 million. Other anticipated revenue includes $100,000 from
interest and $16,000 from the almond industry conference, which brings
the estimate for total revenue for the 1995-96 almond season to
$2,348,000. 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.
An interim final rule regarding this action was published in the
June 21, 1995, issue of the Federal Register (60 FR 32262). That rule
provided for a 30-day comment period. No comments were received.
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 that good
cause exists for not postponing the effective date of this rule 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 1995 crop year began on July 1,
1995, and the marketing order requires that the rate of assessment
apply to all assessable almonds during the crop year; and (3) an
interim final rule was published on this action and provided for a 30-
day comment period; no comments were received.
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
Accordingly, the interim final rule amending 7 CFR part 981,
authorizing expenditures and establishing an assessment rate under
Marketing Order 981 for the 1995-96 crop year, which was published at
60 FR 32262 on June 21, 1995, is adopted as a final rule without
change.
Dated: August 11, 1995.
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-20354 Filed 8-16-95; 8:45 am]
BILLING CODE 3410-02-P
