Walnuts Grown in California; Changes to Reporting Requirements
| Published date | 25 August 2020 |
| Record Number | 2020-17125 |
| Section | Proposed rules |
| Court | Agricultural Marketing Service |
Federal Register, Volume 85 Issue 165 (Tuesday, August 25, 2020)
[Federal Register Volume 85, Number 165 (Tuesday, August 25, 2020)]
[Proposed Rules]
[Pages 52278-52280]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17125]
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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. 85, No. 165 / Tuesday, August 25, 2020 /
Proposed Rules
[[Page 52278]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. AMS-SC-20-0053; SC20-984-1 PR]
Walnuts Grown in California; Changes to Reporting Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
California Walnut Board (Board) to change the reporting requirements
prescribed under the Federal marketing order regulating the handling of
walnuts grown in California. This action would require California
walnut handlers to report purchase commitments (walnuts sold but not
yet shipped) with domestic and foreign buyers on a monthly basis. This
action should provide more accurate information about supply and demand
to industry, which would also enhance marketing efforts.
DATES: Comments must be received by September 24, 2020.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or internet: https://www.regulations.gov.
All 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: https://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: Pushpinder Kumar, Marketing
Specialist, or Terry Vawter, Regional Director, Marketing Order and
Agreement Division, California Marketing Field Office, Specialty Crops
Program, AMS, USDA; Telephone: (559) 487-5903, Fax: (559) 487-5906; or
Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposed rule is issued under
Marketing Order No. 984, as amended (7 CFR part 984), regulating the
handling of walnuts grown in California. Part 984 (referred to as 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 Board locally administers the Order and is comprised of growers
and handlers of walnuts operating within California, and a public
member.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. 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).
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This proposed rule is not intended to have
retroactive effect.
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 USDA 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 USDA 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 to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This proposed rule would revise reporting requirements under the
Order by authorizing the Board to collect reports from handlers about
monthly purchase commitments with domestic and foreign buyers. The
Board believes that the collection of this information will enable the
industry to have more accurate and timely data regarding the industry's
monthly supply and demand. Such information is expected to enhance
overall marketing efforts.
The Marketing Order Revision Committee (MORC) met to discuss the
proposal in a public meeting via teleconference on April 2, 2020. The
MORC recommended the change in reporting requirements to enable the
industry to have more complete information on purchase commitments. The
Board unanimously recommended this action at a public meeting held on
May 7, 2020, where stakeholders were encouraged to express their views
and provide input.
Section 984.71 authorizes the Board to require handlers to report
inventory of inshell and shelled walnuts as specified by the Board.
Section 984.72 authorizes the Board to require that handlers who
handle merchantable walnuts, inshell or shelled, at any time during the
marketing year shall submit reports showing the quantity handled and
other pertinent information, as specified by the Board.
Section 984.73 authorizes the Board, with the approval of the
Secretary, to require handlers to report walnut
[[Page 52279]]
receipts from growers, handlers or others in a form and on designated
times.
Section 984.76 authorizes the Board, with the approval of the
Secretary, to request handlers to furnish other reports and information
as needed to enable the Board to perform its duties under the Order.
Sections 984.471, 984.472, and 984.473 provide the rules and
regulations related to reports of inventory, merchantable walnuts
shipped, and walnuts received from growers, respectively.
Currently, reports of shipments and receipts are filed by handlers
on CWB Form No. 6 no later than the 5th day of month following such
shipments or receipts. This report also includes the quantity shipped
to domestic and foreign buyers for shelled and inshell walnuts,
including information about the quantity of walnuts exported by country
of destination. Under this proposed rule, handlers would report
purchase commitments of walnuts, not yet shipped, made with domestic
and foreign buyers. The proposed change and information about each
handler's shipments and receipts, is expected to provide more timely
information about supply and demand for walnuts, and enhance marketing
and promotion efforts.
The Board proposes to add a new paragraph (c) to section 984.472,
which would require handlers to submit reports on the purchase
commitments with buyers that are not yet shipped. The title of Section
984.472 would also be amended to read ``Reports of merchantable walnuts
shipped, received, and committed.''
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses 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.
There are approximately 90 handlers subject to regulation under the
Order and approximately 4,400 walnut growers in the production area.
The Small Business Administration (SBA) defines small agricultural
service firms as those having annual receipts of less than $30,000,000,
and small agricultural producers as those having annual receipts of
less than $1,000,000 (13 CFR 121.201).
According to the California Walnut Board, there are approximately
4,400 producers and 90 handlers in the production area. The Board also
reported that approximately 82 percent of California's walnut handlers
shipped merchantable walnuts valued under $30 million during the 2018-
2019 marketing year and would therefore be considered small handlers
according to the SBA definition.
Data from the 2017 Agricultural Census, published by USDA's
National Agricultural Statistics Service (NASS), show that 86 percent
of California farms growing walnuts had walnut sales of less than $1
million. In an alternative computation using NASS data, the 3-year
average crop value (2016/17 to 2018/19) was $1.24 billion. Average
bearing acres over that same 3-year period were 333,000. Dividing crop
value by acres yields a revenue per acre estimate of $3,733. Using
these numbers, it would take approximately 268 acres ($1,000,000 /
$3,733) to yield $1 million in annual walnut sales. The 2017
Agricultural Census data show that 80 percent of walnut farms in 2017
were below 260 acres. By either measure, the NASS data demonstrate that
well over three-fourths of California walnut farms would be considered
small businesses according to the SBA definition.
This proposed rule would revise the title of section 984.472 and
add a new paragraph (c) to include the requirement for handlers to
report monthly purchase commitments made with domestic and foreign
buyers. This action is expected to positively impact the industry by
providing more accurate and timely information regarding the industry's
monthly supply and demand. Such information is expected to enhance
overall marketing efforts.
During the MORC meeting on April 2, 2020, alternatives were
discussed including not collecting information about purchase
commitments. However, the industry believes that information about
walnut supply and demand would prove critical in supporting overall
marketing efforts. Timely and accurate information gives the handlers
and the Board valuable data, permitting them to focus on their sales
efforts. At the May 7, 2020 meeting, the Board discussed the MORC's
recommendation and its reasoning. There was agreement about the value
of having the commitment information, along with information on
shipments and receipts.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) under
OMB No. 0581-0178, Vegetable and Specialty Crops. This proposed rule
would require changes to the Board's existing CWB Form No. 6 by
changing the title and adding the provision to collect information on
purchase commitments with domestic and foreign buyers. The revised form
has been submitted to OMB for approval.
As with all Federal marketing order 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.
The Board's meetings were widely publicized throughout the walnut
industry and all interested persons were invited to attend the meetings
and encouraged to participate in the deliberations on all issues. The
MORC's meeting on April 2, 2020, and the Board's meeting on May 7,
2020, were public meetings held via teleconference and all entities,
both large and small, were able to express views on this issue.
Finally, interested persons are invited to submit comments on this
proposed rule, including the regulatory and informational impacts of
this action on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided to allow interested persons to
respond to this proposal. All written comments timely received will be
considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 984
Marketing agreements, Reporting and recordkeeping requirements, and
Walnuts.
[[Page 52280]]
For the reasons set forth in the preamble, 7 CFR part 984 is
proposed to be amended as follows:
PART 984--WALNUTS GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 984 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 984.472 by revising the heading and adding paragraph (c)
to read as follows:
Sec. 984.472 Reports of merchantable walnuts received, shipped, and
committed.
* * * * *
(c) Reports of merchantable walnuts on which handlers have made
purchase commitments with buyers during the month, but which have not
yet been shipped, shall be submitted to the Board on CWB Form No. 6,
not later than the 5th day of the month following the month in which
the walnuts were committed. Such reports shall show the quantity of
walnuts committed in either inshell or shelled pounds. If the handler
made no commitments during any month, he/she shall mark ``None'' in the
``Purchase Commitments'' section of CWB Form 6.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2020-17125 Filed 8-24-20; 8:45 am]
BILLING CODE 3410-02-P
