[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17109]


  Federal Register / Vol. 59, No. 134 / Thursday, July 14, 1994 /
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[[Page Unknown]]

[Federal Register: July 14, 1994]


                                                   VOL. 59, NO. 134

                                            Thursday, July 14, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV94-981-1IFR]

 

Almonds Grown in California; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 981 for the 
1994-95 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, 1994, through June 30, 1995. 
Comments received by August 15, 1994, will be considered prior to 
issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, 
Room 2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments 
should reference the docket number and the date and page number of this 
issue of the Federal Register and will be available for public 
inspection in the Office of the Docket Clerk during regular business 
hours.

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 interim final 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 begins July 1, 1994, and ends June 30, 1995. This interim 
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 ($73,672), 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 $9,435,261.77 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.
    This action 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 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 upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this action 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 crop year 
begins on July 1, 1994, and the marketing order requires that the rate 
of assessment for the crop year apply to all assessable California 
almonds handled during the crop year; (3) handlers are aware of this 
action which was unanimously recommended by the Board at a public 
meeting and is similar to other budget actions issued in past years; 
and (4) this interim final rule provides a 30-day comment period, and 
all comments timely received will be considered prior to finalization 
of this action.

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

    1. The authority citation for 7 CFR part 981 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    2. A new Sec. 981.341 is added to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 981.341  Expenses and assessment rate.

    Expenses of $9,435,262 by the Almond Board of California are 
authorized for the crop year ending June 30, 1995. An assessment rate 
for the crop year payable by each handler in accordance with 
Sec. 981.81 is fixed at 2.25 cents per kernel pound of almonds. Of the 
2.25 cents assessment rate, 1.00 cent per kernel pound of almonds is 
available for handler credit-back pursuant to Sec. 981.441.

    Dated: July 8, 1994.
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-17109 Filed 7-13-94; 8:45 am]
BILLING CODE 3410-02-P5