[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Rules and Regulations]
[Pages 42776-42777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20354]



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DEPARTMENT OF AGRICULTURE
7 CFR Part 981

[Docket No. FV95-981-1FIR]


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 
authorizing expenditures and establishing an assessment rate under 
Marketing Order No. 981 for the 1995-96 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, 1995, through June 30, 1996.

FOR FURTHER INFORMATION CONTACT: Mary Kate Nelson, Marketing Assistant, 
California Marketing Field Office, Fruit and Vegetable Division, AMS, 
USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721, 
telephone (209) 487-5901 or FAX # (209) 487-5906; or Kathleen M. Finn, 
Marketing Specialist, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, room 2522-S, Washington, 
DC 20090-6456, telephone (202) 720-1509 or FAX # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement and Order No. 981 (7 CFR part 981), both as amended, 
hereinafter referred to as the ``order,'' 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 1995-96 crop year, which began 
July 1, 1995, and ends June 30, 1996. This 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 
request 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 and rate of assessment for the 1995-96 crop 
year was prepared by the Board, 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. The Board also considered carryin and reserve funds from the 
prior year as well as desired carryout funds at the end of the 1995-96 
crop year. 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 12, 1995, and unanimously recommended a 1995-
96 budget of $4,952,591, as compared to the $5,235,262 ultimately 
budgeted for the previous year. For the 1994-95 year, the Board 
initially recommended, and the Department approved, expenditures 
totalling $9,435,262. Of that total amount, $6.575 million was budgeted 
for promotional activities and $300,000 was intended to be added to the 
Board's monetary reserve. The assessment rate for the 1994-95 crop year 
was initially set at 2.25 cents per kernel pound of almonds. However, 
because of uncertainty created by legal decisions regarding the Board's 
former advertising and promotion program, the Board ultimately 
postponed certain advertising activities and recommended reducing its 
assessment rate on handlers to .25 cents per pound. As approved by the 
Department, budgeted expenditures for promotional activities were 
reduced to $2.675 million and the Board curtailed its plans to add 
$300,000 to its reserve.
    For the 1995-96 year, the Board has budgeted $2.358 million for a 
line item entitled information and research, with the bulk of these 
funds targeted for public relations, food service and industrial 
promotional programs, and research. In addition, the Board has budgeted 
$150,000 for China and 

[[Page 42777]]
Indonesia Consumer Education, thus maintaining a presence in foreign 
markets. Unlike the 1994-95 crop year, the Board will not be receiving 
any funds through the marketing promotion program conducted by the 
Department's Foreign Agricultural Service for the 1995-96 crop year.
    Items which have decreased compared to those budgeted for 1994-95 
(in parentheses) are: Salaries, $598,251 ($795,318), employee benefits, 
$37,391 (50,000), retirement benefits, $44,869 ($64,000), payroll 
taxes, $45,766 ($55,400), travel, $75,000 ($100,000), meetings, $13,000 
($35,000), office rent, $70,000 ($90,000), storage rent, $4,000 
($5,000), equipment rent, $3,000 ($5,000), security, $1,000 ($2,500), 
utilities, $12,000 ($13,500), alliances with other organizations to 
provide information on almonds to consumers, $11,000 ($20,000), 
econometric model and statistical analysis, $10,000 ($40,000), program 
accountability analyses to assess the effectiveness of the advertising 
and market development programs, $100,000 ($150,000), furniture and 
fixtures, $0 ($10,000), and computers and software, $20,000 ($25,000).
    Budget items for 1995-96 which have increased compared to those 
budgeted for 1994-95 (in parentheses) are: Research conference, $30,000 
($25,000), contract labor and consultants, $55,000 ($30,000), 
compliance audits and analysis, $95,000 ($75,000), data processing, 
$10,000 ($6,000), postage and delivery, $40,000 ($32,000), office 
supplies, $17,500 ($15,000), printing, $17,500 ($12,000), repairs and 
maintenance, $15,500 ($12,500), publications, $15,500 ($3,500), dues, 
subscriptions, and registration fees, $12,000 ($7,500), newsletters and 
releases, $45,000 ($25,000), production research, $512,650 ($489,134), 
crop estimate, $90,736 ($85,600), acreage survey, $37,429 ($35,310), 
nutrition and issues research, $175,000 ($50,000), vehicles, $20,000 
($15,000), office equipment, $20,000 ($15,000), and the addition of 
$25,000 for aflatoxin monitoring.
    The Board also unanimously recommended an assessment rate of .75 
cents per kernel pound, .50 cents higher than last year. Based on an 
initial May estimate of 412.8 million pounds of marketable almonds, 
revenue for the 1995-96 crop year from administrative assessments was 
expected to be $3,096,000. However, the estimate for marketable almonds 
for the 1995-96 crop has decreased to 297.6 million pounds. Thus, 
estimated revenue from administrative assessments has decreased to 
$2.232 million. Other anticipated revenue includes $100,000 from 
interest and $16,000 from the almond industry conference, which brings 
the estimate for total revenue for the 1995-96 almond season to 
$2,348,000. The Board plans on using money from its reserve to meet the 
estimated expenses of $4,952,591 for the year. In addition, any 
unexpended funds from 1995-96 may be carried over to cover expenses 
during the first four months of the 1996-97 crop year.
    An interim final rule regarding this action was published in the 
June 21, 1995, issue of the Federal Register (60 FR 32262). That rule 
provided for a 30-day comment period. No comments were received.
    This action will impose an obligation on handlers to pay 
assessments. The assessments are uniform for all handlers. 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 that good 
cause exists for not postponing the effective date of this rule 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 1995 crop year began on July 1, 
1995, and the marketing order requires that the rate of assessment 
apply to all assessable almonds during the crop year; and (3) an 
interim final rule was published on this action and provided for a 30-
day comment period; no comments were received.

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, 
authorizing expenditures and establishing an assessment rate under 
Marketing Order 981 for the 1995-96 crop year, which was published at 
60 FR 32262 on June 21, 1995, is adopted as a final rule without 
change.

    Dated: August 11, 1995.
Terry C. Long,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-20354 Filed 8-16-95; 8:45 am]
BILLING CODE 3410-02-P