Peanut Promotion, Research, and Information Order; Amendment to Primary Peanut-Producing States and Adjustment of Membership

 
CONTENT
Federal Register, Volume 84 Issue 231 (Monday, December 2, 2019)
[Federal Register Volume 84, Number 231 (Monday, December 2, 2019)]
[Proposed Rules]
[Pages 65929-65931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25936]
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Proposed Rules
                                                Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 84, No. 231 / Monday, December 2, 2019 /
Proposed Rules
[[Page 65929]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1216
[Document Number AMS-SC-19-0073]
Peanut Promotion, Research, and Information Order; Amendment to
Primary Peanut-Producing States and Adjustment of Membership
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposal invites comments on adding the State of Missouri
as a primary peanut-producing State under the Peanut Promotion,
Research, and Information Order (Order). The Order is administered by
the National Peanut Board (Board) with oversight by the U.S. Department
of Agriculture (USDA). This proposal would also add a producer member
and alternate member to the Board to represent the State of Missouri.
The Board recommended this action to ensure that the Board's
representation reflects changes in the geographical distribution of the
production of peanuts.
DATES: Comments must be received by January 2, 2020.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be submitted on the internet
at: http://www.regulations.gov or to the Docket Clerk, Promotion and
Economics Division, Specialty Crops Program, Agricultural Marketing
Service (AMS), USDA, 1400 Independence Avenue SW, Room 1406-S, Stop
0244, Washington, DC 20250-0244; facsimile: (202) 205-2800. Comments
should reference the document 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, or can be viewed at: http://www.regulations.gov. All
comments submitted in response to this proposal will be included in the
record and will be made available to the public. Please be advised that
the identity of the individuals or entities submitting the comments
will be made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist,
Promotion and Economics Division, Specialty Crop Program, AMS, USDA,
Stop 0244, 1400 Independence Avenue SW, Room 1406-S, Washington, DC
20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; or
electronic mail: [email protected].
SUPPLEMENTARY INFORMATION: This proposal affecting the Order (7 CFR
part 1216) is authorized under the Commodity Promotion, Research, and
Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).
Executive Orders 12866, 13563, and 13771
    Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules and promoting flexibility.
This action falls within a category of regulatory actions that the
Office of Management and Budget (OMB) exempted from Executive Order
12866 review. Additionally, because this proposed rule does not meet
the definition of a significant regulatory action it does not trigger
the requirements contained in Executive Order 13771. See OMB's
Memorandum titled ``Interim Guidance Implementing Section 2 of the
Executive Order of January 30, 2017, titled `Reducing Regulation and
Controlling Regulatory Costs' '' (February 2, 2017).
Executive Order 13175
    This action has been reviewed in accordance with the requirements
of Executive Order 13175, Consultation and Coordination with Indian
Tribal Governments. The review reveals that this proposed regulation
would not have substantial and direct effects on Tribal governments and
would not have significant Tribal implications.
Executive Order 12988
    This proposal has been reviewed under Executive Order 12988, Civil
Justice Reform. It is not intended to have retroactive effect. Section
524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect
or preempt any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject
to an order may file a written petition with USDA stating that an
order, any provision of an order, or any obligation imposed in
connection with an order, is not established in accordance with the
law, and request a modification of an order or an exemption from an
order. Any petition filed challenging an order, any provision of an
order, or any obligation imposed in connection with an order, shall be
filed within two years after the effective date of an order, provision,
or obligation subject to challenge in the petition. The petitioner will
have the opportunity for a hearing on the petition. Thereafter, USDA
will issue a ruling on the petition. The 1996 Act provides that the
district court of the United States for any district in which the
petitioner resides or conducts business shall have the jurisdiction to
review a final ruling on the petition, if the petitioner files a
complaint for that purpose not later than 20 days after the date of the
entry of USDA's final ruling.
Background
    This proposed rule invites comments on adding the State of Missouri
as a primary peanut-producing State under the Order. The Order is
administered by the Board with oversight by USDA. This proposal would
also add a producer member and alternate member to the Board to
represent the State of Missouri. Under the Order, primary peanut-
producing states must maintain a 3-year average production of at least
10,000 tons of peanuts to maintain this classification. Missouri's
peanut production meets this requirement. Primary peanut-producing
states also have a seat on the Board. The members
[[Page 65930]]
and alternates are nominated by producers or producer groups. This
action would ensure that the Board's representation reflects changes in
the geographical distribution of the production of peanuts covered by
the Order.
    The Order became effective on July 30, 1999. Under the Order, the
Board administers a nationally-coordinated program of promotion,
research and information designed to strengthen the position of peanuts
in the market place and to develop, maintain and expand the demand for
peanuts in the United States. Under the program, assessments are levied
on all farmers stock peanuts sold at a rate of $3.55 per ton for
Segregation 1 peanuts and $1.25 per ton for Segregation 2 peanuts and 3
peanuts, as those terms are defined in Sec. Sec.  996.13(b)-(d) of
title 7. The assessments are remitted to the Board by handlers and, for
peanuts under loan, by the Commodity Credit Corporation.
    The Order distinguishes between the terms ``minor peanut-producing
states'' and ``primary peanut-producing states'' for purposes of Board
representation and voting at meetings. Section 1216.21 currently
defines primary peanut-producing states as Alabama, Arkansas, Florida,
Georgia, Mississippi, New Mexico, North Carolina, Oklahoma, South
Carolina, Texas and Virginia. These States must maintain a 3-year
average production of at least 10,000 tons of peanuts. All other
peanut-producing States are defined as minor peanut-producing States in
Sec.  1217.15.
    Pursuant to Sec.  1216.40(b), at least once in each five-year
period, the Board must review the geographical distribution of peanuts
in the United States and make a recommendation to the Secretary of
Agriculture (Secretary) to continue the program without change or
recommend that changes should be made in the number of representatives
on the Board to reflect changes in the geographical distribution of the
production of peanuts.
Board Recommendation
    As required by the Order, the Board met and reviewed the
geographical distribution of peanuts. According to data from the USDA's
Federal State Inspection Service, for the years 2016, 2017 and 2018,
9,552, 13,059 and 12,597 tons of peanuts were inspected in Missouri,
respectively. Based on this data, the 3-year average annual peanut
production for Missouri totals 11,736 tons per year which exceeds the
requirement in the Order of maintaining a 3-year average of 10,000 tons
per year to be considered a primary peanut-producing State.
    Based on Federal State Inspection Service data, the Board voted
unanimously on August 28, 2019, to add Missouri as a primary peanut-
producing State under the Order. Therefore, one producer member and one
alternate member will be added to the Board to represent the State of
Missouri.
    These changes would help ensure that the Board's representation
reflect changes in the geographical distribution of the production of
peanuts. Accordingly, this proposed rule would amend Sec. Sec.  1216.15
and 1216.21 to add the State of Missouri as a primary peanut-producing
State. This proposal would also revise Sec.  1216.40(a) to specify that
the Board would be composed of no more than 13 peanut producer members
and their alternates rather than 12. Further, Sec.  1216.40(a)(1) would
be revised to reflect the new number of primary peanut-producing
states, by changing 11 to 12.
Initial Regulatory Flexibility Act Analysis
    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), AMS is required to examine the impact of the proposed rule on
small entities. Accordingly, 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
businesses subject to such actions so that small businesses will not be
disproportionately burdened. The Small Business Administration (SBA)
defines, in 13 CFR part 121, small agricultural producers as those
having annual receipts of no more than $1 million and small
agricultural service firms (handlers) as those having annual receipts
of no more than $30 million.
    According to the Board, there were approximately 8,126 producers
and 34 handlers of peanuts who were subject to the program in 2018.
    Most producers would be classified as small agricultural production
businesses under the criteria established by the SBA (no more than $1
million in annual sales). USDA's NASS reports that the crop values of
the peanuts produced in the top 11 peanut-producing states in the years
2016 through 2018 were $1.09 billion, $1.63 billion and $1.16 billion,
respectively. The 3-year crop average was $1.29 billion. With a 2018
crop value of $1.16 billion and a total of 8,126 producers, average
peanut sales per producer were approximately $142,000. With a 2015-2018
average crop value of $1.29 billion, average sales per producer were
approximately $159,000. Both figures are well below the $1 million
threshold for a small producer, providing strong evidence that most
peanut producers are small businesses.
    With 34 handlers, the average annual peanut crop value per handler
from 2016 to 2018 ranged from $32 million to $48 million, with a 3-year
average of $38 million. With average sales figures moderately higher
than the small business threshold size of $30 million, it appears that
a number of handlers are small businesses and there are also a number
that are large businesses--no definitive statement can be made.
    The pounds of U.S. peanut production from the 11 primary peanut-
producing states for 2016 through 2018 are 5.58 billion, 7.12 billion
and 5.46 billion, respectively. The 3-year average was 6.05 billion
pounds. Computations based on NASS data show that Georgia was the
largest producer, with 50.8 percent of the 3-year average quantity,
followed by Alabama (10.3 percent), Texas (9.6 percent), Florida (9.3
percent), North Carolina (6.7 percent), South Carolina (6.0 percent),
Mississippi (2.3 percent), Arkansas (2.1 percent), Virginia (1.6
percent), with Oklahoma and New Mexico both under one percent.
    This proposal would amend Sec. Sec.  1216.15, 1216.21 and 1216.40
to add the State of Missouri as a primary peanut-producing State and to
add a member and alternate to the Board to represent Missouri. The
Order is administered by the Board with oversight by USDA. Under the
Order, primary peanut-producing States must maintain a 3-year average
production of at least 10,000 tons of peanuts. Missouri's peanut
production meets this requirement. This action would ensure that the
Board's representation reflects changes in the geographical
distribution of the production of peanuts covered under the Order. This
action is authorized under Sec.  1216.40(b) and Section 515(b)(3) of
the 1996 Act.
    Regarding the economic impact of this proposed rule on affected
entities, this action would impose no costs on producers or handlers.
The changes would define the State of Missouri as a primary peanut-
producing State based on recent production data and add a seat on the
Board for the State of Missouri.
    With regard to alternatives, the Board reviewed the peanut
distribution for all the minor peanut-producing States and determined
that Missouri was the only State so designated that met the Order's
requirement for a 3-year average peanut production of at least 10,000
tons in order to qualify to become a primary peanut-producing State.
[[Page 65931]]
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the background form (AD-755), which represents the
information collection and recordkeeping requirements that may be
imposed by this proposed rule, was previously approved under OMB
control number 0581-0093.
    Adding a producer member and alternate member representing the
State of Missouri to the Board would require four additional producers
to submit background forms (AD-755) to USDA, once every three years, in
order to be considered for appointment to the Board. The Secretary
requires two names to be submitted for each open seat on the Board. The
public reporting burden is estimated to increase the total burden hours
by less than one hour. This additional burden would be included in the
existing information collection approved for use under OMB control
number 0581-0093. In addition, serving on the Board is optional, and
the burden of submitting the background form would be offset by the
benefits of additional representation on the Board.
    As with all Federal promotion programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this proposed rule.
    AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
    Regarding outreach efforts, the Board discussed Missouri's peanut
production level at its December 4-5, 2018 meeting. All the Board's
meetings are open to the public and interested persons are invited to
participate and express their views. The Board notified the primary
peanut-producing States (Georgia, Alabama, Texas, Florida, North
Carolina, South Carolina, Mississippi, Arkansas, Virginia, Oklahoma and
New Mexico) of Missouri's production numbers by disseminating
information through the Board's weekly newsletter, which is titled News
in a Nutshell. The Board voted on August 28, 2019 to recommend adding
the State of Missouri as a primary peanut-producing state.
    We have performed this initial RFA regarding the impact of this
proposed action on small entities and we invite comments concerning
potential effects of this action on small businesses.
    While this proposed rule as set forth below has not yet received
the approval of USDA, it has been determined that it is consistent with
and would effectuate the purposes of the 1996 Act.
    A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments received in response to
this proposed rule will be considered prior to finalizing this action.
List of Subjects in 7 CFR Part 1216
    Administrative practice and procedure, Advertising, Consumer
information, Marketing agreements, Reporting and recordkeeping
requirements, Peanut promotion.
    For the reasons set forth in the preamble, 7 CFR part 1216 is
proposed to be amended as follows:
PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER
0
1. The authority citation for 7 CFR part 1216 continues to read as
follows:
    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.
0
2. Section 1216.15 is revised to read as follows:
Sec.  1216.15   Minor peanut-producing states.
    Minor peanut-producing states means all peanut-producing states
with the exception of Alabama, Arkansas, Florida, Georgia, Mississippi,
Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Texas
and Virginia.
0
3. Section 1216.21 is revised to read as follows:
Sec.  1216.21   Primary peanut-producing states.
    Primary peanut-producing states means Alabama, Arkansas, Florida,
Georgia, Mississippi, Missouri, New Mexico, North Carolina, Oklahoma,
South Carolina, Texas and Virginia, Provided, these states maintain a
3-year average production of at least 10,000 tons of peanuts.
0
4. Amend Sec.  1216.40 by revising paragraph (a) introductory text and
paragraph(a)(1) to read as follows:
Sec.  1216.40   Establishment and membership.
    (a) Establishment of a National Peanut Board. There is hereby
established a National Peanut Board, hereinafter called the Board,
composed of no more than 13 peanut producers and alternates, appointed
by the Secretary from nominations as follows:
    (1) Twelve members and alternates. One member and one alternate
shall be appointed from each primary peanut-producing state, who are
producers and whose nominations have been submitted by certified peanut
producer organizations within a primary peanut-producing state.
* * * * *
    Dated: November 25, 2019.
Bruce Summers,
Administrator.
[FR Doc. 2019-25936 Filed 11-29-19; 8:45 am]
BILLING CODE 3410-02-P