[Federal Register Volume 67, Number 119 (Thursday, June 20, 2002)]
[Rules and Regulations]
[Pages 41816-41817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15509]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 981

[Docket No. FV01-981-610 REVIEW]


California Almond Marketing Order; Section 610 Review

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Confirmation of regulations.

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SUMMARY: This action summarizes the results of an Agricultural 
Marketing Service (AMS) review of Marketing Order 981, which regulates 
the handling of almonds grown in California, under the criteria 
contained in section 610 of the Regulatory Flexibility Act (RFA). Based 
upon its review, AMS has

[[Page 41817]]

determined that the marketing order should be continued without change.

ADDRESSES: Interested persons may obtain a copy of the review. Requests 
for copies should be sent to the Docket Clerk, Fruit and Vegetable 
Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, 
Washington, DC 20250-0237; Fax: (202) 720-8938; or E-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Martin Engeler, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 2202 Monterey Street, Suite 102B, 
Fresno, California 93721; telephone (209) 487-5901; Fax: (202) 487-
5906; E-mail: [email protected]; or George Kelhart, Technical 
Advisor, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, 
Washington, DC 20250-0237, telephone: (202) 720-2491; Fax: (202) 720-
8938; E-mail: [email protected].

SUPPLEMENTARY INFORMATION: Marketing Order No. 981, as amended (7 CFR 
Part 981), regulates the handling of almonds grown in California. The 
marketing order is authorized under the Agricultural Marketing 
Agreement Act of 1937 (Act), as amended (7 U.S.C. 601-674).
    Marketing Order 981, originally established in 1950, authorizes 
research and promotion activities, quality control, volume control, 
mandatory inspection, and reporting requirements. The marketing order 
establishes the Almond Board of California (Board), consisting of five 
producers and five handlers and their respective alternates. Currently, 
four of the members represent cooperative marketing associations and 
six represent independents (those not affiliated with a cooperative). 
Eight of the members and alternates serve staggered, three-year terms 
of office. Two members (one grower and one handler) serve one-year 
terms. These two positions are represented by the group (cooperative or 
independent) that accounted for over fifty percent of the production in 
the preceding year. Independent producer members are nominated by 
independent producers, and independent handlers members are nominated 
by independent handlers through a mail balloting process. Cooperative 
representatives are nominated by the cooperative marketing 
organizations. The California almond industry currently consists of 
approximately 7,000 producers and 110 handlers.
    AMS published in the Federal Register (63 FR 8014; February 18, 
1999), its plan to review certain regulations, including Marketing 
Order No. 981, under criteria contained in section 610 of the 
Regulatory Flexibility Act (RFA; 5 U.S.C. 601-612). An updated plan was 
published in the Federal Register on January 4, 2002 (67 FR 525). AMS 
published a notice of review and request for written comments on the 
California almond marketing order in the June 13, 2001, issue of the 
Federal Register (66 FR 31850). During the comment period, two written 
comments in support of the marketing order were received. The comments 
were received from the Board and an almond handler.
    The AMS review was undertaken to determine whether the California 
almond marketing order should be continued without change, amended, or 
rescinded to minimize the impacts on small entities. In conducting this 
review, AMS considered the following factors: (1) The continued need 
for the marketing order; (2) the nature of complaints or comments 
received from the public concerning the marketing order; (3) the 
complexity of the marketing order; (4) the extent to which the 
marketing order overlaps, duplicates, or conflicts with other Federal 
rules, and, to the extent feasible, with State and local governmental 
rules; and (5) the length of time since the marketing order has been 
evaluated or the degree to which technology, economic conditions, or 
other factors have changed in the area affected by the marketing order.
    In its written comment, the Board addresses the various activities 
and programs administered under the order, describes benefits of the 
activities, and expresses support for the programs. It also summarizes 
the evolution of the order from its inception in 1950 to the present 
day.
    The handler comment also expresses support for the order. It notes 
that the order provides a valuable product to consumers, increases the 
consumption of almonds, and facilitates the orderly marketing of 
almonds in the marketplace. The comment also notes that the order 
accomplishes these things without duplicating the efforts of individual 
handlers or engaging in activities that affect the competitive 
advantage of handlers in the marketplace.
    The marketing order was established to help the California almond 
industry work with AMS to solve marketing problems that were 
characterized by abundant supplies and relatively low producer returns. 
These problems continue today and the industry needs the marketing 
tools available under the marketing order in overcoming these problems. 
The industry has undergone dramatic growth in production since the 
marketing order's inception. Production has increased almost 1,000 
percent since the order's inception and nearly 500 percent since 1972. 
The marketing order has been used effectively in expanding markets and 
in finding new uses for almonds to absorb the increasing production.
    Based on its review, AMS has determined that the marketing order 
should be continued without change.
    Neither AMS nor the Board has received any complaints regarding 
Marketing Order 981 or the rules and regulations issued thereunder. In 
1998, USDA conducted a continuance referendum and the marketing order 
was supported by nearly 90 percent of the producers who voted in the 
referendum. The marketing order is not unduly complex, and AMS has not 
identified any relevant Federal rules, or State and local regulations 
that duplicate, overlap, or conflict with the California almond 
marketing order.
    AMS provides Federal oversight of the order and, along with the 
Board, monitors marketing operations on a continuing basis. AMS works 
with the Board to ensure that the regulations issued and production and 
market activities undertaken address current market and industry 
conditions, and that the regulations and administrative procedures 
implemented are appropriate for current practices within the industry. 
The producers and handlers of California almonds support the activities 
that help ensure the marketing of a high quality product in expanding 
markets, and believe that this order has been effectively used for 
these purposes.
    AMS will continue to work with the California almond industry in 
maintaining an effective marketing order program.

    Dated: June 14, 2002.
Kenneth C. Clayton,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 02-15509 Filed 6-19-02; 8:45 am]
BILLING CODE 3410-02-P