[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