Walnuts Grown in California; Changes to Reporting Requirements
| Published date | 10 December 2020 |
| Citation | 85 FR 79383 |
| Record Number | 2020-26880 |
| Section | Rules and Regulations |
| Court | Agricultural Marketing Service |
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
79383
Vol. 85, No. 238
Thursday, December 10, 2020
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. AMS–SC–20–0053; SC20–984–
1 FR]
Walnuts Grown in California; Changes
to Reporting Requirements
AGENCY
: Agricultural Marketing Service,
USDA.
ACTION
: Final rule.
SUMMARY
: This rule revises the reporting
requirements prescribed under the
Federal marketing order regulating the
handling of walnuts grown in
California. This action requires
California walnut handlers to report
purchase commitments (walnuts sold
but not yet shipped) with domestic and
foreign buyers, monthly. This change
provides more accurate information
about supply and demand to the
industry, which also enhances
marketing efforts.
DATES
: Effective January 11, 2021.
FOR FURTHER INFORMATION CONTACT
:
Terry Vawter, Regional Director,
Marketing Order and Agreement
Division, California Marketing Field
Office, Specialty Crops Program, AMS,
USDA; Telephone: (559) 487–5905, Fax:
(559) 487–5906; or Email:
Terry.Vawter@usda.gov.
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:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION
: This final
rule, pursuant to 5 U.S.C. 553, amends
regulations issued to carry out a
marketing order as defined in 7 CFR
900.2(j). This final 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 California Walnut Board
(hereinafter referred to as 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 final 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 final 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 final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This final 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 final rule revises 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 enables
the industry to have more accurate and
timely data regarding the industry’s
monthly supply and demand, and
enhances 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
receipts from growers, handlers, or
others on a form and at 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 requirements
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. Pursuant to this
final rule, handlers would report
purchase commitments of walnuts, not
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Federal Register / Vol. 85, No. 238 / Thursday, December 10, 2020 / Rules and Regulations
yet shipped, made with domestic and
foreign buyers. The change and
information about each handler’s
shipments and receipts are expected to
provide more timely information about
supply and demand for walnuts, and
enhance marketing and promotion
efforts.
Section 984.472 is amended to add
new paragraph (c), which requires
handlers to submit reports on the
purchase commitments with buyers that
are not yet shipped. The title of Section
984.472 is also amended to read
‘‘Reports of merchantable walnuts
shipped, received, and committed.’’
Final 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
final 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 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 Census of
Agriculture, 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 Census of Agriculture 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 final rule revises the title of
section 984.472 and adds a new
paragraph (c) to include the requirement
for handlers to report monthly purchase
commitments made with domestic and
foreign buyers. This action provides
more accurate and timely information
regarding the industry’s monthly supply
and demand, and enhances 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 is
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 final rule requires
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 final 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 encouraged to express their views
on this issue.
A proposed rule concerning this
action was published in the Federal
Register on August 25, 2020, (85 FR
52278). Copies of the proposal were
provided by the Board to members and
handlers. Finally, the proposed rule was
made available through the internet by
USDA and the Office of the Federal
Register. A 30-day comment period
ending September 24, 2020, was
provided to allow interested persons to
respond to the proposal. Ten comments
were received.
Seven of the comments favored
adding the requirement for handlers to
report purchase commitments, two of
the commenters did not favor the
change, and one commenter neither
favored nor opposed the change.
Those favoring the change did so for
similar reasons: The value in having
accurate information about monthly
inventories; the value in collecting the
data and the importance of the data in
relationship to the Board’s marketing
efforts; and the ability of the
information to provide market trend
data and an overall better picture of the
market.
The two commenters who opposed
the change did so because they were
concerned about the reporting burden
imposed on walnut handlers. One
commenter also noted such
commitment data could be impacted by
cancelled orders or order adjustments.
The other commented that the value of
the information might not be offset by
the increased reporting burden on
walnut handlers.
The commenter who did not take a
position for or against the changes to the
Order discussed the potential for such
reported information to be skewed by
backorders, and urged AMS to consider
an additional inventory category with a
shipping time limit.
As to the two commenters who did
not favor the change, it should be noted
that some walnut handlers are also
members of the Board, and this change
to the reporting requirements was
discussed in two separate public
meetings a month apart. The vote on the
change by the MORC on April 2, 2019,
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Federal Register / Vol. 85, No. 238 / Thursday, December 10, 2020 / Rules and Regulations
1
Public Law 111–203, section 1471, 124 Stat.
1376, 2185–87 (2010), codified at TILA section
129H, 15 U.S.C. 1639h.
and by the full Board on May 7, 2019,
were unanimous. There were no
opposing votes, and no handlers
commented on the rule during the
comment period. The handlers serving
on the MORC and the Board did not feel
that the additional information required
by the change represented a significant
burden to the reporting requirements.
AMS believes that benefits of this
change to the marketing of walnuts
outweigh the concerns of the minimal
increase in the reporting burden. Also,
AMS finds the claim of commitment
data being impacted by cancelled orders
or order adjustments to be highly
speculative, with no firm evidence
presented to substantiate the assertion.
Thus, there are no changes made to the
final rule.
In addition, the comment about
changes to the data created by potential
backorders may not materialize, since
handlers are free to make interhandler
transfers of walnuts to meet their
purchase commitments; and the nature
of agricultural commodities, in general,
is not conducive to the development of
backorders. In agriculture, a crop is
produced and harvested, and more is
not coming until about a year later.
Accordingly, no changes will be made
to the rule as proposed.
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.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 984
Marketing agreements, Reporting and
recordkeeping requirements, Walnuts.
For the reasons set forth in the
preamble, 7 CFR part 984 is amended as
follows:
PART 984—WALNUTS GROWN IN
CALIFORNIA
■1. The authority citation for 7 CFR
part 984 continues to read as follows:
Authority: 7 U.S.C. 601–674.
■2. Amend § 984.472 by revising the
section heading and adding paragraph
(c) to read as follows:
§ 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 No. 6.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2020–26880 Filed 12–9–20; 8:45 am]
BILLING CODE P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 34
[Docket No. OCC–2020–0039]
RIN 1557–AF04
FEDERAL RESERVE SYSTEM
12 CFR Part 226
[Docket No. R–1729]
RIN 7100–AG00
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1026
Appraisals for Higher-Priced Mortgage
Loans Exemption Threshold
AGENCY
: Office of the Comptroller of the
Currency, Treasury (OCC), Board of
Governors of the Federal Reserve
System (Board); and Bureau of
Consumer Financial Protection
(Bureau).
ACTION
: Final rules, official
interpretations and commentary.
SUMMARY
: The OCC, the Board, and the
Bureau are finalizing amendments to the
official interpretations for their
regulations that implement section
129H of the Truth in Lending Act
(TILA). Section 129H of TILA
establishes special appraisal
requirements for ‘‘higher-risk
mortgages,’’ termed ‘‘higher-priced
mortgage loans’’ or ‘‘HPMLs’’ in the
agencies’ regulations. The OCC, the
Board, the Bureau, the Federal Deposit
Insurance Corporation (FDIC), the
National Credit Union Administration
(NCUA), and the Federal Housing
Finance Agency (FHFA) (collectively,
the Agencies) jointly issued final rules
implementing these requirements,
effective January 18, 2014. The
Agencies’ rules exempted, among other
loan types, transactions of $25,000 or
less, and required that this loan amount
be adjusted annually based on any
annual percentage increase in the
Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI–W).
If there is no annual percentage increase
in the CPI–W, the OCC, the Board, and
the Bureau will not adjust this
exemption threshold from the prior
year. However, in years following a year
in which the exemption threshold was
not adjusted, the threshold is calculated
by applying the annual percentage
increase in the CPI–W to the dollar
amount that would have resulted, after
rounding, if the decreases and any
subsequent increases in the CPI–W had
been taken into account. Based on the
CPI–W in effect as of June 1, 2020, the
exemption threshold will remain at
$27,200, effective January 1, 2021.
DATES
: This final rule is effective
January 1, 2021.
FOR FURTHER INFORMATION CONTACT
:
OCC: MaryAnn Nash, Counsel, Chief
Counsel’s Office, (202) 649–6287; for
persons who are deaf or hard of hearing
TTY, (202) 649–5597.
Board: Lorna M. Neill, Senior
Counsel, Division of Consumer and
Community Affairs, Board of Governors
of the Federal Reserve System, at (202)
452–3667; for users of
Telecommunications Device for the Deaf
(TDD) only, contact (202) 263–4869.
Bureau: Rachel Ross, Attorney-
Advisor, Office of Regulations, Bureau
of Consumer Financial Protection, at
(202) 435–7700. If you require this
document in an alternative electronic
format, please contact
CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION
:
I. Background
The Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010
(Dodd-Frank Act) amended the Truth in
Lending Act (TILA) to add special
appraisal requirements for ‘‘higher-risk
mortgages.’’
1
In January 2013, the
Agencies jointly issued a final rule
implementing these requirements and
adopted the term ‘‘higher-priced
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