[Federal Register Volume 73, Number 246 (Monday, December 22, 2008)]
[Rules and Regulations]
[Pages 78151-78153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30309]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 984

[Docket No. AMS-FV-08-0010; FV08-984-610 Review]


Walnuts Grown in California; Section 610 Review

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Confirmation of regulations.

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SUMMARY: This action summarizes the results under the criteria 
contained in section 610 of the Regulatory Flexibility Act (RFA), of an 
Agricultural Marketing Service (AMS) review of Marketing Order No. 984, 
regulating the handling of walnuts grown in California (order). AMS has 
determined that the order should be continued.

ADDRESSES: Interested persons may obtain a copy of the review. Requests 
for copies should be sent to the Docket Clerk, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington,

[[Page 78152]]

DC 20250-0237; Fax: (202) 720-8938; or E-mail: 
[email protected]. A copy of the review may also be obtained 
via the Internet at: http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Kurt J. Kimmel or Martin Engeler, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 2202 Monterey Street, 102-B, Fresno, CA 93721; 
Telephone: (559) 487-5901; Fax: (559) 487-5906; or E-mail: 
[email protected] or [email protected].

SUPPLEMENTARY INFORMATION: Marketing Order No. 984, as amended (7 CFR 
part 984), regulates the handling of walnuts grown in California, 
hereinafter referred to as the ``order.'' 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 order establishes the California Walnut Board (Board) as the 
administrative body charged with overseeing program operations. Staff 
is hired to conduct the daily administration of the program. The Board 
consists of 10 members. Five of the members are growers of walnuts, 
four are handlers, and one member is a non-industry member. Each member 
has an alternate. Board members and alternates are nominated by the 
industry and selected by the Department of Agriculture (USDA).
    Currently, there are approximately 4,000 producers and 
approximately 58 handlers of California walnuts. The majority of 
growers and handlers may be classified as small entities. The 
regulations implemented under the order are applied uniformly and are 
designed to benefit all entities, regardless of size.
    AMS published in the Federal Register on February 18, 1999 (64 FR 
8014), a plan to review certain regulations, including Marketing Order 
No. 984, under criteria contained in section 610 of the RFA (5 U.S.C. 
601-612). Updated plans were published in the Federal Register on 
January 4, 2002 (67 FR 525), August 14, 2003 (68 FR 48574), and again 
on March 24, 2006 (71 FR 14827). Accordingly, AMS published a notice of 
review and request for written comments on the California walnut 
marketing order in the March 18, 2008, issue of the Federal Register 
(73 FR 14400). The deadline for comments ended May 19, 2008. No 
comments were received in response to the notice.
    The review was undertaken to determine whether the California 
walnut marketing order should be continued without being changed, 
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 order; (2) the nature of complaints or comments 
received from the public concerning the order; (3) the complexity of 
the order; (4) the extent to which the 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 order has been evaluated or the degree to which technology, 
economic conditions, or other factors have changed in the area affected 
by the order.
    The order authorizes quality regulations including minimum grades 
and sizes for shelled and inshell walnuts, with mandatory inspection to 
ensure these requirements are met. The order also authorizes production 
research and marketing research, and marketing promotion (including 
paid advertising) activities, as well as collection and dissemination 
of information. Finally, the order authorizes the use of volume control 
to manage excess supplies in years of oversupply, but this feature has 
not been used since the 1980s. The grade and size regulations and 
inspection requirements are also applied to imported walnuts under 
section 608e of the Act.
    The grade and size requirements have helped ensure that good 
quality product reaches the consumer, thus contributing to consumer 
confidence. The marketing promotion activities have helped to build 
consumer awareness of the product and to increase and maintain demand 
over the years. Production research projects have enabled the industry 
to address production-related issues, resulting in improved techniques 
and more efficient operations. The compilation and dissemination of 
aggregate industry statistical information is a valuable tool used by 
producers and handlers to assist them in their harvesting, marketing, 
and sales decisions. In the past, the volume control provisions of the 
order have helped the industry manage excess supplies, but their use 
has not been necessary in recent years as supply is more in line with 
demand. Funds to administer the order are obtained from handler 
assessments.
    Regarding complaints or comments received from the public 
concerning the order, AMS received no comments in response to the 
Notice of Review.
    Marketing order issues and programs are discussed at public 
meetings, and all interested persons are allowed to express their 
views. All comments are considered in the decision making process by 
the Committee and the AMS before any program changes are implemented.
    In considering the order's complexity, AMS has determined that the 
order is not unduly complex.
    During the review, the order was also checked for duplication and 
overlap with other regulations. AMS did not identify any relevant 
Federal rules, or State and local regulations that duplicate, overlap, 
or conflict with the marketing order for California walnuts. There is, 
however, a state program that provides related services to the 
California walnut industry. The California Walnut Commission 
(Commission) works cooperatively with the Federal order to ensure there 
is no duplication of effort. The Commission is primarily responsible 
for international promotion activities. This complements the activities 
of the Federal order pertaining to domestic promotion activities. The 
programs share staff and office space, and several of the Federal 
marketing order Board members are also members of the state Commission. 
This arrangement helps assure that the programs complement each other 
rather than conflict, duplicate, or overlap. Both programs operate in 
concert with each other to benefit the California walnut industry.
    The order was established in 1948 and was last amended in April, 
2008. During the 60 years the order has been in effect, AMS and the 
California walnut industry have continuously monitored marketing 
operations. Changes in regulations have been implemented to reflect 
current industry operating practices, and to solve marketing problems 
as they occur. The goal of periodic evaluations is to ensure that the 
order and the regulations implemented under it fit the needs of the 
industry and are consistent with the Act.
    The Board meets several times a year to discuss the order and the 
various regulations issued thereunder, and to determine if, or what, 
changes may be necessary to reflect current industry practices. As a 
result, regulatory changes have been made numerous times over the years 
to address industry operation changes and to improve program 
administration. In addition, the order has been amended seven times 
since its inception. Different authorities have been added to the 
order, and numerous changes to existing authorities under the order 
have been made to reflect the evolving needs of the industry.
    Based on the potential benefits of the order to producers, 
handlers, and

[[Page 78153]]

consumers, AMS has determined that the California walnut marketing 
order should be continued. The order was established to help the 
California walnut industry work with USDA to solve marketing problems. 
The order's regulations on grade and size, as well as research and 
promotion, and collection and dissemination of information continue to 
be beneficial to producers, handlers, and consumers.
    AMS will continue to work with the California walnut industry in 
maintaining an effective marketing order program.

    Dated: December 16, 2008.
James E. Link,
Administrator, Agricultural Marketing Service.
 [FR Doc. E8-30309 Filed 12-19-08; 8:45 am]
BILLING CODE 3410-02-P