[Federal Register Volume 59, Number 173 (Thursday, September 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22041]
[[Page Unknown]]
[Federal Register: September 8, 1994]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 981
[Docket No. FV94-981-1FIR]
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
that authorized expenses and established an assessment rate that will
generate funds to pay those expenses. 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.
EFFECTIVE DATES: July 1, 1994, through June 30, 1995.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918; or Martin Engeler, California Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 2202 Monterey Street, suite 102B,
Fresno, California 93721, telephone 209-487-5901.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 981, both as amended (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 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 1994-95 crop year, which began
July 1, 1994, and ends June 30, 1995. This 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
requesting 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 for the 1994-95 crop year was prepared by
the Almond Board of California, 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 16, 1994, and unanimously recommended a 1994-
95 budget of $9,435,262, $1,631,808 more than the previous year. Budget
items for 1994-95 which have increased compared to those budgeted for
1993-94 (in parentheses) are: Research conference, $25,000 ($12,000),
office rent, $90,000 ($73,562), Board's financial audit, $12,500
($9,900), data processing, $6,000 ($5,000), telephone, $31,000
($30,000), utilities, $13,500 ($10,000), postage and delivery, $32,000
($30,000), repairs and maintenance, $12,500 ($9,000), miscellaneous
expenses, $10,000 ($5,000), dues, subscriptions, and registration fees
$7,500 ($5,000), alliances with other organizations to provide
information on almonds to consumers, $20,000 ($5,000), production
research, $489,134 ($485,854), promotional activities, $6,575,000
($5,400,000), crop estimate, $85,600 ($75,000), office equipment,
$15,000 ($7,000), and the addition of $35,310 for an acreage survey,
$300,000 for reserve replenishment, $150,000 for program accountability
analyses to assess the effectiveness of the advertising and market
development programs, and $50,000 for new product and issues research,
for which no funding was recommended last year. Items which have
decreased compared to those budgeted for 1993-94 (in parentheses) are:
Salaries, $795,318 ($796,378), travel, $100,000 ($126,500), Board
travel, $22,500 ($25,000), meetings, $35,000 ($40,000), equipment rent,
$5,000 ($8,000), Board insurance, $40,000 ($45,000), security, $2,500
($3,000), office supplies, $15,000 ($20,000), printing, $12,000
($18,000), publications, $3,500 ($3,750), newsletter and releases,
$25,000 ($35,000), econometric model and statistical analysis, $40,000
($75,000), vehicles, $15,000 ($29,500), computers and software, $25,000
($40,000), and furniture and fixtures, $10,000 ($46,500).
The Board also unanimously recommended an assessment rate of 2.25
cents per kernel pound, the same as last year. The Board further
recommended that handlers should be eligible to participate in credit-
back for their own market promotion activities for up to 1.00 cent of
the 2.25 cents assessment rate, the same as last year. Revenues are
expected to be $7,396,250 from administrative assessments (591,700,000
pounds @ 1.25 cents per pound), $1,065,060 from the portion of
assessments eligible for credit but received by the Board from handlers
who do not obtain credit for their own activities, $40,000 from
interest, and $16,000 from the almond industry conference, for a total
of $8,517,310.
These projections would result in a $917,952 shortfall in revenue
based on current estimates of the 1994 crop yield. In light of this
projected revenue shortfall, the Board recommended that any shortfall
of up to $150,000 be applied against reserve replenishment and that the
amount of money for this item be reduced accordingly. The Board also
recommended that any additional shortfall be applied against its
consumer TV activities and that the amount of money spent for these
activities be reduced accordingly. However, the Board decided not to
reduce the total amount for these two items by the amount of the
expected shortfall because it expects additional revenue to accrue if
the crop is larger than estimated. In the event a larger crop results
in revenue in excess of the $9,435,262 budgeted, the Board recommended
that consumer public relations activities be increased up to a total of
$840,000, from $650,000.
Unexpended funds from 1994-95 may be carried over to cover expenses
during the first four months of the 1995-96 crop year.
An interim final rule was published in the Federal Register on July
14, 1994 (59 FR 35847). That interim final rule added Sec. 981.341 to
authorize expenses and establish an assessment rate for the Board. That
rule provided that interested persons could file comments through
August 15, 1994. No comments were received.
This rule will impose an obligation to pay assessments on handlers.
The assessments are uniform for all handlers and are the same as those
imposed last year. 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 rule 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.
It is further found that good cause exists for not postponing the
effective date of this action until 30 days after publication in the
Federal Register (5 U.S.C. 553) because the Board needs to have
sufficient funds to pay its expenses which are incurred on a continuous
basis. The 1994-95 crop year began on July 1, 1994. The marketing order
requires that the rate of assessment for the crop year apply to all
assessable California almonds handled during the crop year. In
addition, handlers are aware of this action which was unanimously
recommended by the Board at a public meeting and published in the
Federal Register as an interim final 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
Accordingly, the interim final rule amending 7 CFR part 981 which
was published at 59 FR 35847 on July 14, 1994, is adopted as a final
rule without change.
Dated: September 1, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-22041 Filed 9-7-94; 8:45 am]
BILLING CODE 3410-02-P
